Compiling a tour budget

• A tour budget is a document that specifies all

the costs of the tour
• The costs include everything related to each
tour component
• A tour budget will serve as a basis for the final
costing of the tour
 Factors influencing the development
of a budget
• Type of tour booked
– Tours booked in advance and group tours are
often cheaper
– Escorted tours have the added cost of the guide
– An independent tour is flexible to meet the needs
the tourist, so is more expensive
• The tour group
– The needs of the different tourists in the group
will vary and add to the cost
– Additional costs like food restrictions can add to
the cost (e.g. halaal, vegetarian)
– Extra services like interpreters for foreign tourists,
chaperones or extra assistance add to the cost of
the tour
– The size of the tour will also have an impact, larger
groups are often cheaper
• Transport
• This is one of the more costlier parts of the
budget
– Road: the more economical choice. More people
in a bus or coach will reduce the price per person
– Air: except for low budget airlines, this is the most
expensive form of transport
– Rail: the Blue Train and Rovos Rail are more suited
to up market tourists as they are expensive
– Water: cruise packages are sold as an inclusive
tour, making it a more affordable option
• Accommodation
– It is important to establish how much a tourist is
willing to pay for accommodation
– Also what quality and standard they are expecting
– Families might prefer self catering, while wealthier
tourist prefer 4 or 5 star accommodation
– The choice will depend on availability, vacancies
and duration of stay
• Sundry expenses
• Sundry expenses are a variety of small costs,
examples include:
– Airport tax
– Entrance fees to attractions, shows, theme parks
etc.
– Equipment for specialized activities (scuba diving)
– Travel insurance
– Transfer costs (between the airport and the hotel)