Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
Calculations for the tourism
industries
Miles and kilometres
A kilometre is shorter than a mile and it is
important not to confuse the two units when
calculating distances
To express kilometre in miles, multiply by 0.62
•Example: Express 400 km in miles
Method : 400 x 0.62 = 248 miles
To express miles in kilometres, divide by 0.62
Example: Express 155 miles in km
Method : 155 ÷ 0.62 = 250 km
Speed, Time and Distance
To do this, we must work on an average speed –
either miles per hour (mph) or kilometres per
hour (kph).
Method :
Formula to learn : Distance ÷ Speed = Time
NB : If the distance is in miles and the
speed is in mph then the time will be
in hours.
If the distance is in kilometres and the
speed is in kph then the time will be in
hours.
Maps and plans
It is sometimes necessary to measure the
distance between points on a map (this is
best done by using an opisometer) and
then converting this measurement
(probably in inches or cm) to miles or
kilometres.
The map is said to be “drawn to scale”.
Example : a line of length 1 cm may
represent 1 km.
Discount
It is a method of reducing the price in
order to sell items or to get payment
quicker.
Usually shown as a percentage.
Examples : If the original price of a holiday
was £350 and 5% was “slashed”off that
figure, then the new price would be found
as follow:
Discount (continue)
•Original price £350
•1%
= £3.50
•5%
= £17.50
•Therefore new price is £350 - £17.50
= £332.50
Another use of the term discount:
•”Our terms are 2% cash discount if
payment is made within one month”.
In other words you may deduct 2% off the bill if
you pay within one month. It is an
encouragement to pay the bill promptly.
Gross profit (g.p)
Widely used in industries such as the
hotel and catering industry and and
denotes the difference between the buying
and selling price of an items.
Examples : The selling price of a meal is
£9.00 but the food cost in providing the
meal is £3.00. Find the Gross Profit.
Gross profit (g.p) (continue)
Method : Selling Price
£9.00
Cost Price
£3.00
Gross Profit
£6.00
Usually expressed as a percentage of the
selling price.
Example : 6 ÷ 9 x 100 ÷ 1 = 66.66%
The Gross Profit is 66.66% of the selling
price
Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
Calculations for the tourism
industries (continue)
Net Profit
Net Profit is the difference between the price at
which goods and services are sold and the total
cost.
Can be found by first finding the Gross Profit
and then subtracting the Labor and Overheads.
Labour Costs include wages, national insurance,
staff turnover, etc
Overheads include gas, electricity, telephone,
etc
Deposits and cancellations
Deposits :A sum of money is requested as
a show of good faith that the booking will
be taken up.
An insurance against cancellation can
usually be taken out for a fee at the time of
booking a holiday. This will reimburse any
costs for which a holidaymaker may be
responsible providing there is a genuine
reason.
Commission
That is, they sell a product or service on
behalf of someone else and they are paid
a sum of money for so doing.
Usually in percentage
Currency conversion
Usually
is affected by differing
interest rates, and imports
and exports (including
tourism).
Selling a price
Formula to learn :
Costs + Profit =
Selling Price (100%)

Time Zones
The times change by 1 hour for every 15°
longitude difference between places.
You will find that various countries add or
subtract hours certain period of the year to
make better use of daylight hours
(Daylight Saving Times - DST).
READING A TIMETABLE AND
FARE TABLE
Timetables and fare tables are a mass
information. A lot of effort has gone into
their design in an attempt to present
information as simply and clearly as
possible.
VALUE ADDED TAX (VAT)
• Is a customer tax.
• Business are registered for VAT purpose
so that they can charge for and reclaim
this tax.
HIRING A CAR
• Travel agencies are able to arrange car
hire in almost every country in the world.
• To encourage and reward the travel
agents for providing this service they are
paid a percentage commission by the car
hire companies.
ORGANIZING YOUR
OWN TOUR
“Tours are not created from a cookie cutter
mould. They can, and should, be as
unique as you and your clients are.”
THE BIG STEP – BRANCHING OUT
ON YOUR OWN
• The most important question you need to
ask yourself is, “What area of the world do
I find impossible to resist?”
• Once you have your answer you are ready
to move on to the second step of
designing a winning tour.
THE THEME – WHY YOUR TOUR
WILL BE DIFFERENT
• “Why do you want to take people there at
the first place?”
As you do research, think about how you
can enhance the theme of your trip
throughout the time you are traveling.
WE’RE HERE! NOW WHAT?
• REMEMBER: Most people take a
tour because they want to see it
all!
TIMING
• Is extremely important and deceptively
complex.
• REMEMBER: Holiday and special events
tend to drive the price of everything up.
Make sure you calculate these increases
when pricing your tours.
Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
YOUR GUESTS
As a tour director, part of your
challenge is to make your guests feel
as much as home as possible!
SHELTERING YOUR GUESTS
• REMEMBER:
Not all parts of the world enjoy the same
standard of living. Make your group aware
of the differences they can expect at your
destination.
NOURISHING YOUR GUESTS
• Ask yourself questions
concerning “grand cuisine” that
would be expected by your
guests.
MISCELLANEOUS CONCERNS
• Medical
• Security
• Insurance
COSTING OUT YOUR TRIP
• MAKE SURE your clients
understand exactly what extra
values and services you are
providing if you plan to charge
more than your competitors.
COSTING OUT YOUR TRIP
•
•
•
•
Getting there
Food
Accommodations
Attractions
REMEMBER:
• Always ask about senior
discounts and clarify what age
qualities as a senior.
REMEMBER:
• Nothing beats first hand
experience. Always check a
destination out in person before
you take a tour group there.
RUNNING YOUR OWN TOUR
WHAT’S INSIDE
WORKING AS AN OUTSIDE AGENT
• You need to consider how you will
let travelers know that your tour is
available and how you will sell it
to interested clients.
WORKING AS AN OUTSIDE AGENT
(continue)
• If you make a connection with a travel
agency, you also have a great source of
revenue.
• By working with a travel agency, you are
fitting into the established system for
selling services and paying invoices.
CHOOSING A TRAVEL AGENCY TO
WORK WITH
• Selecting the agency you will work
with is one of the crucial choices you
must make.
• WHY?
CHOOSING A TRAVEL AGENCY TO
WORK WITH
• Small versus large agencies
LARGE FIRMS  some real advantages
such as they have more reduced rate trips
for their staff.
IATA/ARC and non-IATA/ARC
agencies
• There are two governing bodies in the
airline industry. ARC operates in the
United States and IATA sets the standards
in the rest of the world.
CHOOSE AN AGENCY THAT CAN
SELL TRAVEL INSURANCE
• Not only is insurance very
profitable because of its high rate
of commission, but it will also help
you avoid trouble.
CHOOSE AN AGENCY THAT CAN
SELL TRAVEL INSURANCE
• Travel insurance not only provides a very
necessary safety net for you and your
group but it also generates income.
• Push insurance hard.
USING MULTIPLE AGENCIES
• Using several different
agencies at the same time IS
NOT RECOMMENDED
because it spreads your clients
out.
Matakuliah
Tahun
: G0404/Tour Guiding
: 2006/2007
HOW TO FIND AN AGENCY TO
WORK WITH
HOW TO FIND AN AGENCY TO
WORK WITH
• By checking employment ads
• By calling agencies in your area
• By asking your friends
COMPENSATION – TRIPS AND
CASH
• Free tips and tour director seats
 If you are going to a popular destination
at peak season and have only a small
group, you might still be able to get a free
trip, but not with tour director seats.
GETTING PAID CASH
• Another way to travel “free” is
to earn enough cash from your
venture to pay for the trip.
OTHER WAYS TO GET PAID
• You will need the help of the manager at
your travel agency the first couple of times
you negotiate prices directly with the
airlines and other travel suppliers.
GETTING MORE COMMISSION
• If you conduct tours several times a year,
the higher volume of sales you are
bringing in should enable you to negotiate
a better rate of commission with the travel
agency.