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Unit 13 tour operators P4 costing a holiday

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fixed costs, variable costs, load factors, profit margin,

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Costing a holiday
The scenario I am doing is ‘Mr & Mrs Hamilton is a couple in their 30’s and they
wish to visit North America. They have 3 weeks and wish to visit as much of the
country as possible without the tour being over tiring. It is their 1 st wedding
anniversary so some luxuries would be good! The trip will take place in July.’

Currency exchange

£1 = $1.28


Fixed costs
A fixed cost is something that does not depend on an output, no matter what the
sales are these costs will stay the same.

Flights

Flight one – London Heathrow airport to Honolulu, Hawaii - £1900 per couple +
£380 for the 80% load factor and therefore £2,280

Flight two – Las Vegas to New York - £194 per couple

Flight three – New York to London Heathrow - £520 per couple

Total flights: £2,994

Cruise

4-night cruise from Hawaii to Los Angeles (Carnival cruises) - £1500 per couple
which includes accommodation

Total cruise: £1,500

Accommodation

Aulani Disney resort Hawaii including breakfast - £500 for two nights

Mondrian Los Angeles hotel - £819 for three nights

LINQ hotel and casino - £525 for three nights

Courtyard New York Manhattan hotel - £380 for four nights

Total accommodation: £2,224(With a 100% load factor applied)

Excursions

Hawaii

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Number of pages
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