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Costing In GoTour


1. Introduction

GoTour makes it easy for you to calculate a suggested price for each tour. GoTour takes into account the number of days as well as what activities, hotels, restaurants, etc you have added. Also taken into account is any profit margin you would like to achieve and any break even point you need to meet.

2. Setting up Costing items

Once you have the basis of a tour started you need to start thinking about costing. Keep in mind that you can only use the price computing function if there are no reservations connected to your tour. Therefore make sure you have completely taken care of all costing needs before you begin to book customers on the tour. With that said, you can begin to add options to your tour to customize it.

First, you can set the cost options on the main tour screen. These are the Profit Percentage and the Break Even Number.

Main Tour Screen

Figure 1. Main Tour Screen

As you can see these are listed on the main screen. Also note the Compute Price butten. This disappears once you add a reservation to the tour as stated earlier. The Break Even Number corresponds to the number of reservations that you need to make in order to turn a profit on the tour. This number is used when calculating the cost of the bus for the passengers. In this example the break even point is set to 30. This means that 30 reservations are needed in order to cover the cost of the vehicle before a profit can be made from it. For example, if your vehicle costs a total of $3,300.00 for the tour and you want to divide this cost onto every passenger, GoTour will factor in the break even number. Since this break even number is 30 the cost of the vehicle per passenger would be $110.00. This is obtained by dividing the cost of the vehicle by the break even number.

The profit percentage is a number you can set to determine exactly what you want to make on the tour. For example, say you set a profit percentage of 25% on a tour that costs $75 per single passenger. In order to accomplish this you will need to charge $100 per single passenger. This will give you a profit percentage of 25%.

Now that you have set the costing options on the main tour screen you can begin to add events to your tour that will effect the cost. Use the Work On Day button to add hotels, restaurants, attractions and other components to your tour. Then use the drop down menu to pick what you would like to add. First we will add a vehicle to your tour. Once you are at your chosen vehicle's screen you can adjust the cost to fit your needs.

Vehicle Costing

Figure 2. Vehicle Costing

As you can see this is the screen for adding a vehicle. You can set the base price as well as the margin and tax rates. You also have the option to add rates for children if you wish to. These base prices will be used in computing the child rate but not the adult tour rate. So, if you set a margin cost and/or tax rates it will change the base cost. If you do not, the adult rate will be equal to the base price. In this example we have set a maring of .10. This means that the base price will be increased by 10%. Hence making the rate $3,300.00. Also you'll notice that this cost is applied PerTour. This means that the computed rate is split across the entire tour. If you remember from the main screen we had set the break even point at 30. This comes into play now to configure the cost of the vehicle. In order to determine the final cost per passenger for hte vehicle, GoTour divides the rate by the break event point, $3,300.00/30. This means that each passenger will be charged $110.00 for the vehicle. Now if you add multiple vehicles to your tour the cost per passenger does not change. So, if you have 2 vehicles at the same rate on one tour a passenger would not be charged $220.00 for use of the tour vehicle. Make sure that after you fill in all your costing options you remember to use the Update button to commit the changes.

If your tour is a multi day you will most likely want to add a hotel. This will also be figured into your costing. So, once you've picked your hotel and added it to your tour you can apply the rates you want to use.

Simple Hotel Costing

Figure 3. Simple Hotel Costing

As you can see this is a very simple hotel costing example. You have the ability to set a margin rate as well as tax rates for a hotel too. The same process of the base cost and rates apply that was used to price the vehicle. In this example no additional rates have been set so the rate is the same as the base. We will go through a hotel that is a bit more complicated later. Also you will notice that the hotel price is applied PerRoom. Hence the costing for a single room would use the single hotel rate. However a double room would be divided in half when GoTour computes the double rate for each passenger. The same works for triple and quadruple as well. If you want you can apply the cost per passenger. This would not affect the overall cost of a single tour pice, but would change for the other rates.

Additional Hotel Costing

Figure 4. Additional Hotel Costing

As you can see this costing is a bit more involved. Both the margin and the tax areas are filled in. Also there is a baggage handling charge. So, in order to figure out the total cost of the hotel GoTour uses all this information. Using the cost of a double room we can we can go through the algorithim that GoTour uses to arrive at the double rate. First you need to start with the base rate of $200.00 and add in the baggage handling charge. Since this is a double room you need to double the baggage charge. So now the cost is up to $208.00. Then GoTour factors in the margin and the tax. First the margin is taken into account. So 10% of the cost is added and this brings the double rate up to $228.80. Next tax is applied which increases the total up to $244.82. The same algorithm is used to compute single, triple and quadruple rates as well.

For some tours you may want to add more than one hotel for a night. This can be done as well and GoTour will take this into account when computing the overall cost of the tour. So, if you were to add a second hotel GoTour would use the cost of the first hotel and ignore the second. This is because you do not want to make your customers pay for both hotel rooms when they are only going to use one. Another feature of GoTour when computing hotel costs deals with multiple day tours. If you add a hotel to the first night and not to any of the consecutive nights, GoTour assumes that the tour is staying at the first hotel for the duration of the tour. Therefore the cost of hotel for the first night is also added to any consecutive nights on the tour. So, in our original example, the single cost for the hotel on the first night was $100.00. This cost would then be added in again to cover the cost of the second night. However, this would only take effect if there wasn't another hotel scheduled in it's place.

You can also add restaurants and attractions to your tour. These will affect the cost as well. In this example we have added both restaurants and attractions to the tour days.

Restaurant costing

Figure 5. Restaurant costing

This is the costing screen from the first restaurant on the sample tour. As you can see a margin and a tax rate has also been applied to the base rate. The final cost is computed by GoTour in the same manner as before and the cost of the restaurant will be factored into the overall tour cost.

Attractions are computed in the same manner as restaurants. You can add a margin cost as well as tax rates to attractions as well. GoTour takes these into account in computing the final rate. Keep in mind that both restaurants and attractions can be applied per passenger, per tour or included. In this tour example both are applied per passenger. This means that each tour customer is responsible for the full rate of the restaurant or attraction.

3. Computing Total Tour Cost

Once you have added all the components to your tour you can use GoTour to compute the total cost.

Main Tour Screen

Figure 6. Main Tour Screen

As you can see this is the main page of the tour. Listed is all the components that have been added to this sample tour. You'll notice the compute price button is still available, this is becasue there are no reservations as of yet on this tour. Also, you'll notice in the image that all the tour components are listed. In this example, the compute price button as already been used, which explains why there are tour prices already listed. So, if we go through the cost of each item we can see how GoTour arrives at its final cost. Keep in mind that most of the cost components do not have margin or tax rates applied to them. This keeps the math easier to understand. The tour components that have costs are the vehicle, hotels, attractions, and restaurants.

  • Vehicle - $110.00 per passenger

  • Admiral Inn Hotel - $120.00 for a single room and $100.00 for a double room per passenger.

  • Bar Harbor Holiday Inn - $120.00 for a single room and $120.00 for a double room per passenger. However, since there are mutiple hotels on one day the second hotel is not used in computing the total tour cost. Therefore these room rates will not be used.

  • Anthony Thomas Candy Factory Attraction - $10.00 per passenger.

  • Alex and Ika Restaurant - $35.64 per passenger.

  • Cracker Barrel Restaurant - $15.00 per passenger.

  • Amerihost Inn - $60.00 for a single room and $30.00 for a double room per passenger.

  • Abbey Road Festival Attraction - $15.00 per passenger.

Now that we have all the costs needed we can add them together to arrive at a final cost. Notice that the costs for triple and quadruple are not taken into account. Since the algorithm to arrive at those costs follows that of a single and double, you should be able to arrive at the final cost yourself. Also keep in mind when looking at the pricing of hotels that the double rate is per room and therefore needs to be split in half to get a per passenger price. This also applies to the larger room rates as well. However, if you are applying the hotel cost by some other means other than per room dividing by the number of occupants would not give you the correct amount.

So, if you were to add all the cost components together for a single rate you would arrive at the cost of $365.64. As you can see this is the price that GoTour gave you. The same goes for a double room. Everything added up gives you a double price of $315.64. You'll notice that the prices that GoTour gives you are even integers. This is because the system rounds the cost to the nearest dollar therefore giving you a single price of $366.00 and a double price of $316.00.

When doing the costing there are a few things to keep in mind.

  • The cost of the vehicle should be the same for every reservation regardless if it is a single, double, triple, etc with an exception for child rates.

  • The margin is always applied before any tax rates are added in.Also tax1 is added in before tax2.

  • If there are multiple hotels on one tour date, GoTour only takes into account the costing for the first one.

  • If you have a multiday tour with a hotel added to the first night but not to any subsequent nights, GoTour will automatically assume you need a hotel for those following nights and factor the rate in.

  • You can apply costs over individual passengers or the entire tour.