Practice lesson topic 13.

Pricing
lecturer: Phd Karyna Tymoshenko
  Price is the result of functional interaction of a set of pricing factors.
The essence of the price is expressed in its functions:

 1. Distributive, which is associated with the possibility of price

deviation from the value under the influence of many market factors.
1. Methods of Prices are a tool for the distribution and redistribution of national
income between sectors of the economy, its sectors, various forms of
compiling ownership, regions, funds of accumulation and consumption, various
social groups. This price function also involves accounting for the price
prices for of excise duty on certain groups of goods, value added tax and other
forms of income that enters the budgets of different levels. Thanks to
tourist this price function, the social problems of society are also solved.
 2. Incentive, ie prices stimulate the use of new products and improve
services. product quality.
 3. Accounting. That is, being a monetary expression of value, prices
show how much it costs society to meet a specific need for a product
or service. Price measures how much labor, raw materials, materials
that make up the product, spent on the manufacture of goods,
characterizes the efficiency with which labor is used.
  4. Measuring. The price serves the circulation of goods and ensures the
realization of economic interests of all relatively independent participants in
the trade: producer, intermediary, consumer. In this capacity, it acts as the
amount of money (goods and services) paid and received per unit of goods or
services. Thanks to the price, you can measure, determine the amount of
money that the buyer must pay, and the seller - to receive for the goods sold.
Knowing the prices of various goods, services and the number of goods sold
The essence of and bought, you can determine the amount of cash payment for goods and
services.
the price is
expressed in  5. Information, ie the price provides the seller and consumer with the
necessary information.
its functions:
 6. Functions of balancing supply and demand. Prices are the link between
production and consumption, supply and demand. Excessively high or low
prices indicate disparities in production and circulation. With the emergence
of imbalances in the economy, equilibrium can be achieved by changing
production or changing prices. Demand expresses the need for goods by the
buyer if he has the opportunity to buy goods. This is practically expressed in
the establishment of an inverse relationship between the market price and the
number of goods purchased.
  In the system of management in the field of tourism, as in other
industries, many types of prices are used, which differ in certain
Аccording to the classification features..
classification of
 Centralized-fixed prices are set by the state for resources that affect
the level of the general level and dynamics of prices, for services that have
important social significance and are financed from the state budget.
establishment
and regulation,  Contract prices are formed on the basis of an agreement between the
enterprise that produces and sells the tourist product (services) and
centrally fixed the consumer and relates to a specific service or a certain number of
services.
and regulated,
contractual and  Free prices are prices that are determined by the company itself.
free prices are
used  Depending on the peculiarities of sales and the economy, there are
world, wholesale, purchase and retail prices, as well as tariffs for
transportation of goods, passengers, providing various paid services.
 Pricing in the tourism industry is a comprehensive measure, due to
the diversity of the product, the high level of competition and the
difficulty of determining an accurate estimate of future demand.

 Pricing policy in the tourism sector is determined by various factors,

so the pricing methods can be used in different ways. Here are some
of them:

 The calculation of the price by the method of "average costs plus

profit" is the most widely used in tourism. According to him, the price
(P) is determined by the formula:

 P = AC + PR,
 where: AC - average costs (selfcost);

 PR - the amount of profit in the price set by the company.

The calculation of the
price on the basis of a
fixed profit is that the  The price is set using the formula:
price is set in strict
dependence on the  P = Cv+ (Cf + Pt) / VS)
total amount of profit
that the company  where: Cv - variable costs per unit of product (service);
expects to receive  Cf - fixed costs for the entire tourist product for a certain period;
from the sale of a  Pt - the total amount of profit that can be obtained from the sale
certain number of for the same time;
services.  VS - the volume of sales of products (services) in kind.
  The price of a typical tour at the planning stage includes most
components, including the following main components:
 1. "Net" price, including:
 1.1. The cost of certain types of services (transportation,
accommodation of tourists, food, excursions, insurance, visa, etc.),
which has developed in specific service providers.
2. Determining  1.2. Indirect taxes on certain types of services (universal and specific
excises, local fees).
the price of a  2. Income (margin) of a tourist enterprise, which is divided into:
package of  2.1. Current costs of the travel company (tour operator) for the
development of tourist routes, excursion programs, tourist service
tourist services programs in the process of tour implementation.
 2.2.Profit of the tour operator taking into account income tax
payments.
 2.3. Commission fee in favor of the travel agent and other
intermediaries involved in the tour.
 2.4. Seasonal and other commercial discounts for individual tourists
and tourist groups.
 The price of the tour package must
include the profit of the tour operator,
which is set as a percentage of the cost
and depends on the level of
profitability of the planned tour. The
The price of the norm of mentality varies widely (from
5% to 100% and more).
tour should cover
the costs of its
organization and  The "net" price of a group tour
often includes the following
implementation components of the production
and bring the cost of the tour:
company a certain  1.1. The cost of a transport ticket.
profit, which would  1.2. The cost of living in a hotel
and other accommodation.
allow for  1.3. The cost of food.
development.  1.4.Transfer.
 1.5. The cost of excursion service.
 1.6. Insurance payments.
 1.7. The cost of visas.
The "gross" price includes the cost of
services of travel agencies for the
formation and implementation of the
tour, taking into account costs,
profits, tax payments, as well as the
amount of commercial discounts for
certain categories of tourists.
 Thus, when setting the selling
price of a package of tourist
services and the price of the
tour, two price options are
used:
 "Net" price, which
characterizes the "limited cost"
of the tourism product.
 Gross price, ie the price of the
offer of a tourist product on
the market.
 To determine the full cost of the tour to the price of "net" are
added the costs of travel agencies associated with the
organization of their activities. The list of these costs includes:
staff salaries, depreciation of equipment (computers, furniture,
etc.), maintenance of premises (cleaning, security, repairs,
utilities, electricity costs, communications, etc.), advertising costs,
marketing, business trips, entertainment, production training and
other administrative and general expenses.

 The "gross" price includes the full cost of the tour, the tour
operator's profit, all types of his tax payments, the commission of
the travel agent and other intermediaries, seasonal and other
commercial discounts for individual tourists 1 tourist group, the
amount of VAT. Commissions, as a rule, are: travel agent 5-10%;
tour operator - 15-25%.
For group tourism,
the tourist product  The price of a tour package per tourist in this case is determined
by the formula:
is mainly a package
 P = ((С + Ti + Pt - D) / Tn) * Icf) * Ivat
of services
 where: P- the price of the tour package per tourist, UAH;
designed for a
group of people,  C - the cost of services included in the package drawn up by the
tour operator;
which includes both  Ti- indirect taxes on certain types of services, UAH;
tourists and their  D - discounts that can be provided:
accompanying  Pt - profit of the tour operator, UAH;
persons, if so  Icf - commission fee index;
provided by the
 Ivat - VAT index;
tourist agreement.  Tn - the number of tourists in the group and accompanying
persons.
 The average price of one tour-day is determined as a share of the
division of the total income from the sale of tours by the number
of tours provided.

 Ptd = R / TD

 where: Ptd - the price of one tour-day;

 R - revenue from the sale of tours;
 TD - the total number of tour-days provided.

P = ((С + Ti + P - D) / Tn) * Icf) *
Ivat
where: P- the price of the tour
package per tourist, UAH;
C - the cost of services included
in the package drawn up by the
tour operator;
Ti- indirect taxes on certain
types of services, UAH;
D - discounts that can be
provided:
P - profit of the tour operator,
UAH;
Icf - commission fee index;
Ivat -VAT index;
Tn - the number of tourists in
the group and accompanying
persons.
 A group of 15 students together with the head goes to Bulgaria for 3 days. Travel services
for one child seat - 20 USD and one adult - 45 USD in one direction. The price of
accommodation in a hotel together with food for one tourist is 40 USD. The cost of
excursions is 50 USD. for one day. The amount of taxes and administrative costs is 18%,
and the tour operator's profit is 22% of the cost of the service package. At the same time,
students are given a discount on travel of 30% and accommodation and meals - 20%
according to their cost. The level of commission of the tour operator is 20%.
 Determine the price of a package of services per tourist.
 P = ((С + Ti + P - D) / Tn) * Icf) * Ivat
 P= ((4700+846+1034-504)\15)x 0,2)x1,2=97,2$
 T=560+90=650
 A= 14x3x40= 1680 + 120= 1800
 E = 50x3x15= 2250
 C= 4700
 Ti= 4700 x 0,18%= 846$
 P= 4700x 0.22=1034
 D=168+336=
 Task 2.
Ptd = R / TD
 Determine the average price of one tourist stay of tourists in
where: Ptd - the complex A for two years.
price of one tour-  Ptd (2018)= 52070\254= 205 UAH
day;  Ptd (2019) = 66144\321=212 UAH
R - revenue from Indicators Time period
2018 2019
the sale of tours;  Ptd
Revenue from the sale of tours, thousand 52070 66144
TD - the total UAH
number of tour- The total number of provided tourist 254 312
days, days
days provided.