STI College Pasay-EDSA

Tourism Management

Tour Planning, Packaging and Pricing

04 Laboratory Exercise 1

Submitted by:
Gipit, Andrea Kaye H.
Pinlac, Deanne Jasmine E.
BSTM 401

Submitted to:
Ms. Janice Mallanta
 2 Days/1 Night Tour Package

Guide
Number of Passengers’ Brackets FOC
Component Item Unit Cost Costs
1 2-3 4-9 10-14 15-18 19-24
Car 26,000 26,000 13,000
Transportation (36
Van 31,000 7,750
hours)
Mini Bus 40,000 4,000 2,667 2,105
Lunch at Escapade 550 550 550 550 550 550 550 550
550
Restaurant
Hotel Set Dinner 700 700 700 700 700 700 700 700 700
Twin room with private facilities
such as: two (2) bed, or two (2) 5,075 2,537 2,537 2,537 2,537 2,537
single beds or one single bed plus
RON Okada Manila a double bed (TWB)
Single room with private facilities
regardless of the number of beds 4,800 4,800 4,800
in the room (SWB)
Hotel Buffet Breakfast 400 400 400 400 400 400 400 400 400
Lakbay Museo Entrance
599 599 599 599 599 599 599
Fee
Lunch at Dallas
600 600 600 600 600 600 600 600 600
Roadhouse
Hotel Set Dinner 700 700 700 700 700 700 700 700 700
Tour Guide Fees (Full Dayx2 + RON = PHP8,000) 8,000 8,000 4,000 2,000 800 533 421
Sub-Total 42,349 23,086 15,836 10,886 9,286 8,612 7,750 2,950
Prorate Tour Guide 7,750 3,875 1,938 775 517 408
Costs
Prorate FOC Costs 156
Total Cost 50,099 26,961 17,774 11,661 9,803 9,176
ADD 20% Mark-up 10,020 5,392 3,555 2,332 1,961 1,835
Net to Tour Operator 60,119 32,353 21,329 13,993 11,764 11,011
ADD 12% VAT 8,198 4,412 2,909 1,908 1,605 1,502
Total amount due 68,317 36,765 24,238 15,901 13,369 12,513
Selling 68,320 36,765 24,240 15,905 13,370 12,515
Explanation for the rate sheet
1. Number of passenger brackets varies from a TO to another. Normally, brackets are limited to the maximum
capacity of the equipment being used;
2. Transportation costs vary from a transportation service provider to another. However, these are prorated (divided
by the lowest number in the passenger bracket); PHP40,000 for a mini bus unit with atleast 19 passengers (bracket
19-24); to get the amount per pax, the unit cost must be divided by the lowest number of passengers on each
passenger bracket; PHP40,000 (mini bus unit cost) ÷ 19 (bracket 19-24) = PHP 2,105 (mini bus unit cost per pax)
3. For bracket 10-14 and up (bracket 15-24) a mini-size bus is used for costing;
4. Hotel accommodations are based on the Okada Manila and would vary depending on seasonality and timeline;
5. The tour guide fees already include the tour guide/s’ RON and assumed at PHP1,125 per day;
6. Prorate tour guide costs would be the sum of the total guide costs (transportation costs, meals costs, and
accommodation costs and the rest of the figures under the Guide Costs’ column); 𝑃𝐻𝑃550 + 𝑃𝐻𝑃700 +
𝑃𝐻𝑃4,800 + 𝑃𝐻𝑃400 + 𝑃𝐻𝑃600 + 𝑃𝐻𝑃700 = 𝑃𝐻𝑃7,750 (𝑡𝑜𝑡𝑎𝑙 𝑔ui𝑑𝑒 𝑐𝑜𝑠𝑡𝑠); ℎi𝑐ℎ 𝑠ℎ𝑜𝑢𝑙𝑑 𝑏𝑒 divi𝑑𝑒𝑑 𝑏𝑦 𝑡ℎ𝑒 𝑙𝑜𝑤𝑒𝑠𝑡
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜f 𝑝𝑎𝑟𝑡ici𝑝𝑎𝑛𝑡𝑠 𝑝𝑒𝑟 𝑝𝑎𝑠𝑠𝑒𝑛𝑔𝑒𝑟𝑠’ 𝑏𝑟acket 2 (𝑏𝑟𝑎𝑐𝑘𝑒𝑡 2-4) = 𝑃𝐻𝑃3,875
7. FOC cost is the sum of all meals involved;
8. The prorate FOC costs consist of all meals and are divided by the last lowest bracket number; 𝑃𝐻𝑃2,950 (𝐹𝑂𝐶
𝐶𝑜𝑠𝑡) ÷ 19 (𝑏𝑟𝑎𝑐𝑘𝑒𝑡 19-24) = 𝑃𝐻𝑃156 (𝐹𝑂𝐶 𝑐𝑜𝑠𝑡)
9. To calculate for the Sub-Total per passengers’ bracket, add all the components (excluding Prorate tour guide costs
and prorate FOC costs) under the same column depending on the lowest number of participants for each
passengers’ bracket; 𝐵𝑟𝑎𝑐𝑘𝑒𝑡 1: 𝑃𝐻𝑃26,000 + 𝑃𝐻𝑃550 + 𝑃𝐻𝑃700 + 𝑃𝐻𝑃4,800 + 𝑃𝐻𝑃400 + 𝑃𝐻𝑃599 + 𝑃𝐻𝑃600 +
𝑃𝐻𝑃700 + 𝑃𝐻𝑃8,000 = 𝑃𝐻𝑃42,349 (𝑠𝑢𝑏 − 𝑡𝑜𝑡𝑎𝑙);
10. To calculate for the Total Cost per passengers’ bracket, add the sub-total cost and the sum of prorate tour guide
costs and prorate FOC costs, 𝐵𝑟𝑎𝑐𝑘𝑒𝑡 1: 𝑃𝐻𝑃42,349 (𝑠𝑢𝑏 − 𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡) + 𝑃𝐻𝑃7,750 (𝑝𝑟𝑜𝑟𝑎𝑡𝑒 𝑡𝑜𝑢𝑟 𝑔𝑢i𝑑𝑒 𝑐𝑜𝑠𝑡) +
𝑃𝐻𝑃0 (𝑛𝑜 𝑝𝑟𝑜𝑟𝑎𝑡𝑒 𝐹𝑂𝐶 𝑐𝑜𝑠𝑡) = 𝑃𝐻𝑃50,099 (𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡)
11. The 20% mark-up varies from a TO to another, depending on the company’s overheads and desired profits;
12. The 12% VAT is mandatory and is calculated by dividing the net to TO by .88 then subtract the difference to the net
to TO to get the 12% VAT of net to TO (1.00 - .12 = .88); 𝑃𝐻𝑃60,119 ÷ .88 = 𝑃𝐻𝑃68,317 – 𝑃𝐻𝑃60,119 = 𝑃𝐻𝑃8,198
(12%𝑉𝐴𝑇 𝑜f 𝑛𝑒𝑡 𝑡𝑜 𝑇𝑂);
13. Selling is the rounded-off figure, for the retailer to add a mark-up. For instance, in the case of bracket 1 with total
amount due = PHP68,317, the TO opted to round-off the figure to PHP68,320. This would depend on the TO’s
discretion on how to price the tour package that may be more pleasing to the market.