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. Tour details
    You will need to provide information about your tours such as the different tour types you offer and the number of passengers.
  2. Daily tour costs (fixed costs)
    You need to determine the costs associated with operating your tour, such as fuel, labour etc...
  3. Daily tour costs (variable costs)
    You need to determine the costs associated with taking passengers on tour, such as meals, third party activities etc...
  4. Annual business costs (fixed costs)
    You need to calculate the total costs associated with operating your business. These costs occur whether you have tours operating 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.
  5. Average capacity
    If you have been trading for a number of years you should know your average capacity. If you are new to the industry you will have to estimate your future capacity based on factors such as visitation to the region, competitor analysis and customer feedback. Just remember that it takes time to build awareness of your product in the marketplace, chances are that you will not achieve a reasonable capacity for at least 2 years.