Step by step guide to pricing your...

Tourism Business

 

What you need to get started...

To successfully complete this tool you need to have the following information readily available:-

  1. Venue details
    You will need to provide information about your venue such as the number of rooms and various room types.
  2. Daily room costs (variable costs)
    You need to determine the costs associated with letting out each room type, such as linen cleaning/hire, room servicing and amenities etc...
  3. Annual business costs (fixed costs)
    You need to calculate the total costs associated with operating your business. These costs occur whether you have rooms let out or not, this is why they are called fixed. For example costs that are fixed include insurance, marketing, lease payments, bank fees, accounting fees, salaries etc... If you have a profit/loss statement you can use that information, or if you haven’t calculated the annual business costs use the SBDC ‘Operating Expenses’ forecast to help you arrive at an accurate figure
  4. Average occupancy rate
    If you have been trading for a number of years you should know your average occupancy rate. If you are new to the industry it can be difficult to estimate your predicted occupancy. Use the Tourism WA ‘Quarterly Tourism Snapshots’ to get the average occupancy rates for your region. Just remember that it takes time to build awareness of your product in the marketplace, chances are that you will not achieve this level of occupancy for at least 2 years.