COSTING A CONFIDENTIAL TARIFF

TARIFF/CONFIDENTIAL TARIFF OR RATE SHEET

A list of services and products, with corresponding prices, of a tour operator. This is distributed to travel agents and foreign tour operators When costing a tariff, the golden rule is to negotiate for the best available contracted rate from the suppliers.

By best available we mean the lowest possible rate without sacrificing the quality of the suppliers product.

TARIFF/CONFIDENTIAL TARIFF OR RATE SHEET

Validity of contracted rate is important. The longer the validity, the better. The validity of the rate regardless of the season is also advantageous A confidential tariff or rate sheet is normally divided into 4 categories of services and products namely: Transfer service, Sightseeing tours, Hotel/resort accommodations and meals, and tour packages. A basic rule to remember when costing a tariff is the lower the cost, the higher the margin

TRANSFER SERVICE
NUMBER OF PASSENGER BRACKETS COMPONENT Transportation (1.5 hours) VEHICLE Car L-300 Mini Bus Porterage Fee Tour Guide (optional) Airport representative TOTAL COST Add Mark-up Price Round-off Transfer Service 25% one bag COST 500.00 700.00 1,800.00 2,900.00 35.00 350.00 100.00 35 175 50 510 127 637 640 35 70 20 265 66 331 330 35 35 10 260 65 325 330 35 23 6 185 46 231 230 2-4 250 140 180 120 120 35 14 4 174 43 218 220 96 35 11 3 146 36 183 185 72 35 8 2 118 29 148 150 5-9 10-14 15-23+1 24-29+1 30-39+2 40+49+3

NOTES:
1. Number of passenger brackets vary from tour operator to tour operator. Normally, brackets follow the configuration of the equipment being used. 2. The + sign after each passenger figure represents the free of charge FOC concession granted to clients. 3. Transportation costs are prorated ie. Divided by the number in passenger bracket

TRANSFER SERVICE
NUMBER OF PASSENGER BRACKETS COMPONENT Transportation (1.5 hours) VEHICLE Car L-300 Mini Bus Porterage Fee Tour Guide (optional) Airport representative TOTAL COST Add Mark-up Price Round-off Transfer Service 25% one bag COST 500.00 700.00 1,800.00 2,900.00 35.00 350.00 100.00 35 175 50 510 127 637 640 35 70 20 265 66 331 330 35 35 10 260 65 325 330 35 23 6 185 46 231 230 2-4 250 140 180 120 120 35 14 4 174 43 218 220 96 35 11 3 146 36 183 185 72 35 8 2 118 29 148 150 5-9 10-14 15-23+1 24-29+1 30-39+2 40+49+2

NOTES:

4. The porterage fee is fixed regardless of the number of passengers.

5.Mark-up percentages vary from tour operator to tour operator depending on the companys overheads and desired profits. However, the bottom line price must be competitive.