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Tour Costing and Pricing Guide

The document discusses the components that make up the total cost of a package tour. It lists the various cost elements like travel, accommodation, food, activities, and marketing. Before setting the price of a tour, a budget should be prepared to review competitor costs and provide guidelines for cost control. Research and development costs for a new tour include expenses related to planning, staff, and familiarization tours which can be allocated over the long or short term.

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Jaggu Dada
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333 views1 page

Tour Costing and Pricing Guide

The document discusses the components that make up the total cost of a package tour. It lists the various cost elements like travel, accommodation, food, activities, and marketing. Before setting the price of a tour, a budget should be prepared to review competitor costs and provide guidelines for cost control. Research and development costs for a new tour include expenses related to planning, staff, and familiarization tours which can be allocated over the long or short term.

Uploaded by

Jaggu Dada
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd

TOUR COSTING AND PRICING COST means the sum total of all expenses.

Cost is a measurement, in monetary terms, of the amount of resources used for some purposes TOUR COST means the sum total of costs incurred to create or formulate a tour package. The cost components of a package tour include: 1. Research and Development Cost (First time) 2. Travel Cost Air, Road, Rail or Sea. 3. Accommodation Costs. 4. Transfer Costs. 5. Food and Beverage Costs. 6. Sightseeing and Activity Costs. 7. Marketing Costs. 8. Administrative Costs. 9. Miscellaneous Costs. Before the costing and pricing of a tour is done ideally one should prepare the tour budget, which helps the tour planner in reviewing the cost structure of the competitor and also provide a framework and guideline for cost control. Various Components: 1) Research and Development Cost (First time):includes the cost of Tour planner, manager, and staff of the company FAM tour and any other costs This cost is allocated on 2 methods: Long term: tour planning and research, firstly project this cost. Short term: initial tour development, divide the tour in mini 10 to 12 tours

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