28 Questions
What is the break-even load factor for transportation costs to tourist attractions?
50-60%
What is the main advantage of 'hop-on, hop-off' sightseeing tours over scheduled transportation services?
Ability to stop at desired sites
How do sightseeing tours by scheduled transportation service differ from 'hop-on, hop-off' tours?
They exclude the services of a tour guide
What is a key factor in prorating transportation costs within a destination?
Number of participants
Why do most major urban cities introduce 'hop-on, hop-off' sightseeing tours?
To allow clients more flexibility in touring
What services are included in an arrival/departure transfer?
Transportation and tour guide services
In addition to transportation, what do sightseeing tours typically include?
Tour guide services and pertinent commentaries
What type of travelers would directly book with hotels according to the text?
Free and independent travelers (FIT)
What is the essential rule when costing a rate sheet?
Negotiate for the best available contracted rate
Which scenario might involve an accommodation establishment and a restaurant?
Evening tour with dinner
What do tour packages consist of according to the text?
Two or more travel components
What is the rule regarding entrance fees for tours?
Entrance fees are always fixed with no free concessions.
How is the cost of transportation and accommodation calculated when operating outside the tour guide’s residence?
Prorated by a predetermined number of participants.
What must be considered when calculating the cost of a tour guide for a group?
Having one tour guide per vehicle.
Which of the following best describes the cost of entertainment activities mentioned in the text?
Entertainment costs can be fixed or may vary.
What is included in meals and snacks if they are considered as inclusions in a tour?
Always fixed and includes FOC and the tour guide.
What must a tour operator determine for Seat-in-Coach (SIC) Sightseeing Tours to make a profit?
The minimum number of passengers required to make a profit.
What type of services would GITs opt for, based on the text?
Ad hoc services
What is the primary difference between FIT and GIT in terms of services, as mentioned in the text?
FITs opt for pre-packaged tours, while GITs prefer ad hoc services.
Why are the rate sheets based on FIT rather than GIT according to the text?
GITs prefer ad hoc services which are not included in the rate sheets
What is the purpose of confidential tariffs mentioned in the text?
To provide wholesale prices of hotel rooms exclusively for tour operators
What type of accommodation establishments might offer a lower room rate but with fewer room amenities?
Those featured in confidential tariffs
What is the formula to calculate the Total Cost per passengers’ bracket?
Sub-total cost + Prorate tour guide costs + Prorate FOC costs
What is the purpose of the 20% mark-up mentioned in the text?
To cover company overheads and desired profits
How is the 12% VAT calculated based on the net to TO?
Dividing the net to TO by.88
What happens to the Total Cost per passengers’ bracket if prorate tour guide costs increase?
It increases
What is the purpose of rounding off the selling figure?
To simplify calculations for the retailer
Why does the 12% VAT calculation involve dividing by.88?
To convert to a percentage
Test your knowledge on transportation costs and sightseeing tours, including concepts like break-even load factor and hop-on-hop-off services. Explore the proration of costs based on predetermined number of participants and the limitations of scheduled sightseeing tours.
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