1. Matakuliah : G1184 Travel Management Tahun : 2005 Pertemuan ke-: 23-24 Chapter 8 (Power Point 23.1) Pokok Bahasan : Financial Matters Materi:  Costing a Holiday

2. Learning Outcomes Chapter 8 (Power Point 23.2) Pada akhir pertemuan ke-24, diharapkan mahasiswa akan mampu : menjelaskan komponen-kompenen yang menentukan harga suatu perjalanan (TIK 44)

3. (Power Point 23.3) Tour operators need to cost their holidays in such a way that they will be cometitive with the prices charged by their rivals but will still enable them to make a profit

4. (Power Point 23.4) Tour operators have to forecast costs and sales for their program and then check these against actual costs and income as bookings start to come in. The forecast has to be done up to 18 months in advance of departures, while the checking on a monthly basis.

5. (Power Point 23.5) Anticipated revenue from the sale of holidays must be set against the cost of salaries, air conditioning, lighting, communications, advertisements, entertaining, contract payment and etc.

6. (Power Point 23.6) Tour operators have to add a mark-up to cover other costs, the commission to the travel agency and a profit. The highest mark-ups will be loaded onto peak period departures (Easter, July/August, Christmas/New Year, school holidays, bank holidays, factory closing times).

7. (Power Point 23.7) It is better to sell a seat at break-even cost than to let the plane take off with it empty.

8. (Power Point 23.8) When making forecasts, economists need to consider: whether the market is expanding or contracting the size of program they want to produce the size and cost of competitors’ program whether demand is likely to exceed the supply of holidays whether prices should rise, stay much as they were in the previous season or be reduced whether enough aircraft will be available whether enough accommodation will be available whether it will be possible to consolidate bookings if sales don’t go well, or whether a ‘no consolidation guarantee’ will have to be offered

9. (Power Point 24.1) When deciding whether prices should rise, they need to take into account: the inflation rate the mortgage rate net disposable incomes of the travelling public the inflation rate in destination countries fuel costs whether exchange rates are stable or not

10. (Power Point 24.2) Once the forecasters have done their stuff, a price grid without actual prices can be produced, which will show: the name of the hotel the meal arrangements planned the departure airports the holiday durations the departure day the departure time the first and last departures for 7 and 14 night holidays the holiday reference number the sequence of departure dates

11. (Power Point 24.3) TM 17 E R M (1) 1.What is ERM? (group assignment, to be submitted on the25 th session)

12. (Power Point 24.4) TM 17 E R M (2) 2. What is the aim of ERM II? (group assignment, to be submitted on the25 th session)

13. (Power Point 24.5) TM 17 E R M (3) 3.What are the 3 last countries that join ERM II on June 27 th, 2004? (group assignment, to be submitted on the25 th session)

14. (Power Point 24.6) TM 18 Yield Management (1) 1.What is yield management? (individual assignment, to be submitted on the 25 th session)

15. (Power Point 24.7) TM 18 Yield Management (2) 2. How to calculate yield? (individual assignment, to be submitted on the 25 th session)

16. (Power Point 24.8) TM 18 Yield Management (3) 3. There are 2 revenues to increase strategies, - Increase the number of visitors. Give 15 examples! - Increase the amount visitors spend. Give 4 examples! (individual assignment, to be submitted on the 25 th session)