Transportation Costs and Sightseeing Tours Quiz
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Questions and Answers

What is the break-even load factor for transportation costs to tourist attractions?

  • 70-80%
  • 50-60% (correct)
  • 40-50%
  • 60-70%

What is the main advantage of 'hop-on, hop-off' sightseeing tours over scheduled transportation services?

  • Lower cost
  • Dedicated tour guide
  • Ability to stop at desired sites (correct)
  • Faster transportation

How do sightseeing tours by scheduled transportation service differ from 'hop-on, hop-off' tours?

  • They are shorter in duration
  • They exclude the services of a tour guide (correct)
  • They include shopping stops
  • They allow clients to stop at desired sites

What is a key factor in prorating transportation costs within a destination?

<p>Number of participants (C)</p> Signup and view all the answers

Why do most major urban cities introduce 'hop-on, hop-off' sightseeing tours?

<p>To allow clients more flexibility in touring (D)</p> Signup and view all the answers

What services are included in an arrival/departure transfer?

<p>Transportation and tour guide services (B)</p> Signup and view all the answers

In addition to transportation, what do sightseeing tours typically include?

<p>Tour guide services and pertinent commentaries (B)</p> Signup and view all the answers

What type of travelers would directly book with hotels according to the text?

<p>Free and independent travelers (FIT) (C)</p> Signup and view all the answers

What is the essential rule when costing a rate sheet?

<p>Negotiate for the best available contracted rate (B)</p> Signup and view all the answers

Which scenario might involve an accommodation establishment and a restaurant?

<p>Evening tour with dinner (D)</p> Signup and view all the answers

What do tour packages consist of according to the text?

<p>Two or more travel components (D)</p> Signup and view all the answers

What is the rule regarding entrance fees for tours?

<p>Entrance fees are always fixed with no free concessions. (D)</p> Signup and view all the answers

How is the cost of transportation and accommodation calculated when operating outside the tour guide’s residence?

<p>Prorated by a predetermined number of participants. (D)</p> Signup and view all the answers

What must be considered when calculating the cost of a tour guide for a group?

<p>Having one tour guide per vehicle. (A)</p> Signup and view all the answers

Which of the following best describes the cost of entertainment activities mentioned in the text?

<p>Entertainment costs can be fixed or may vary. (D)</p> Signup and view all the answers

What is included in meals and snacks if they are considered as inclusions in a tour?

<p>Always fixed and includes FOC and the tour guide. (D)</p> Signup and view all the answers

What must a tour operator determine for Seat-in-Coach (SIC) Sightseeing Tours to make a profit?

<p>The minimum number of passengers required to make a profit. (B)</p> Signup and view all the answers

What type of services would GITs opt for, based on the text?

<p>Ad hoc services (C)</p> Signup and view all the answers

What is the primary difference between FIT and GIT in terms of services, as mentioned in the text?

<p>FITs opt for pre-packaged tours, while GITs prefer ad hoc services. (A)</p> Signup and view all the answers

Why are the rate sheets based on FIT rather than GIT according to the text?

<p>GITs prefer ad hoc services which are not included in the rate sheets (D)</p> Signup and view all the answers

What is the purpose of confidential tariffs mentioned in the text?

<p>To provide wholesale prices of hotel rooms exclusively for tour operators (D)</p> Signup and view all the answers

What type of accommodation establishments might offer a lower room rate but with fewer room amenities?

<p>Those featured in confidential tariffs (B)</p> Signup and view all the answers

What is the formula to calculate the Total Cost per passengers’ bracket?

<p>Sub-total cost + Prorate tour guide costs + Prorate FOC costs (C)</p> Signup and view all the answers

What is the purpose of the 20% mark-up mentioned in the text?

<p>To cover company overheads and desired profits (A)</p> Signup and view all the answers

How is the 12% VAT calculated based on the net to TO?

<p>Dividing the net to TO by.88 (B)</p> Signup and view all the answers

What happens to the Total Cost per passengers’ bracket if prorate tour guide costs increase?

<p>It increases (C)</p> Signup and view all the answers

What is the purpose of rounding off the selling figure?

<p>To simplify calculations for the retailer (C)</p> Signup and view all the answers

Why does the 12% VAT calculation involve dividing by.88?

<p>To convert to a percentage (A)</p> Signup and view all the answers

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