Deviations and dispersment of funds PDF

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Summary

This lecture covers the deviations and the dispersement of funds while booking a trip in the tourism industry. This is lecture number 10 and it will be included on the final exam. ...

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Tourism financial concepts Deviations (back to back) and the dispersing of funds • •

A back to back is an ITC (all put together) An ITC is typically a week

What is a deviation? A calculation out of the ordinary out of the one week. Example. Costing a back to back What is a back to back? Describing tours that are operated on a consistent and continual basis, usually without time in between An open jaw flight is when you fly out of one airport but fly back into another airport within the same country. Calculating deviations • • • •

Deviations are calculated by the tour operator. They sell ITC’s and sell them to the travel agents and then to the general public ITCs are usually for 7-14 days. Some packages can be sold for 3-week vacations Airlines try and eliminate lost revenue due to dead seats. Charter airlines will try and sell ABCs to compensate. To calculate back to backs, you must know the costs

Costs to identify 1. 2. 3. 4.

The package poste for a vacation The price you pay for a certain time for food Taxes will always be different Ground transfers will be different

Calculating a back to back Step 1 figure out the published rate for your duration Step 2 add the base rates together Step 3 figure out the cost of the air segments Step 4 subtract the unnecessary flights from the base Step 5 Calculate the airport transfers and subtract the unnecessary transfers from the base Step 6 add the tax! (only once)...