BY- S M MUJAHIDUL ALAM DEPUTY MANAGER BANGLADESH PARJATAN CORPORATION FORMER HEAD OF THE DEPARTMENT TRAVEL AND TOURISM, NHTTI

4. Operating Costs
There are 2 types of operating costs:
Fixed costs. These are the costs that do not depend on
output. No matter what your sales are, these costs stay
the same. Some examples are rent, equipment, and
insurance.
Variable costs. These costs change according to output
and typically increase in proportion to it. Examples are
wages, gas, electricity, maintenance, stock, bank fees,
and marketing . Combined, your operating costs tell you
what it costs you to run your tour or activity business.

5. Profit margin
Be realistic when calculating your costs to
ensure you obtain a profit while retaining a
competitive edge. It is important to check what
your competitors are offering and determine
which of your products can sustain a higher
profit margin.

8. Hotel:
 As a travel agent you should be aware of the various types of hotels
available at the destination and keep yourself updated of the
different category of hotels, types of rooms, tariff plans, extra bed
rate, taxes, meals, etc. The tariff plans differ as per the season at
most of the tourist destinations i.e. regular, season, off-season, and
week-end tariff.
 Many hotels give a special discount to corporate as well as large groups
depending on the size of the group. Example: For the group of 12
students of NHTTI dormitory accommodation was provided at Hotel
Tourist Home @ 550/- per student for a single day. The staff was also
charged the same rate.

12. Transportation
While doing the costing of the transportation you
have to consider the various modes of travel
undertaken by the tourist like airways, railways, and
the ground transport as the cost varies depending on
the type of vehicle used.
 Example: For the 12 students + 2 staff members accompanying them for
the Aurangabad tour, a 17 seater vehicle was booked. The students were
told to get the best rates for a vehicle in good condition. The rate of the
vehicle was Rs.14.00 per km. Since the itinerary was planned for 3 days
the vehicle was finalized at the cost of 14.00/km with an average of 300
km per day. So the total cost of the vehicle was Rs.12600/- for 3 days.
(14.00 x 900 km = Rs.12600/-

16. TOUR COSTING
In the tourism industry, mathematics is applied in various ways
to provide tourists (clients) with accommodation,
transportation, and other travel services. In this section, we
will study how mathematics is applied to establish the selling
price of a service (such as the price of flight tickets , hotels,
stay, etc.) so that all the costs are covered with an acceptable
profit margin.
The selling price is the cost plus the amount of
markup.
Selling Price = Cost + Markup
The profit margin (%) is the rate of markup on the
selling price.

17. • Q. Dhaka University students are interested to go to Cox's
Bazar for 04 days 03 nights tour. They will have journey by
A/C coaster. Calculate the price per person in BDT. The Tour
will start on 18-12-2018 at 7.30 am and back on 21-12-2018
will start from Cox bazaar 7.30 am.
• [Group size = 40 pax, total travel 900 km with
sightseeing,(AC Bus rent 120 Tk/km) , Room rent 1500/-
(Twin Beded), Meal- B.F-150/-, Lunch/ Dinner- 300/- ,
Parking-200/- , Toll Tax-320/- , Entry fee Dulahajra Safari
Park- 80/- p.p, BF will not provide on 18-12-2018 and
Dinner will not serve at 21-12-2018 * Mark up 15%].

18. • Q. NHTTI students are interested to go to Cox's
Bazar for 04 days tour. They will have journey by
A/C coaster. Calculate the cost per person in BDT.
The Tour will start on 10-12-2018 at 10.30 pm and
back on 13-12-2018 will start from Cox bazaar 9.30
pm.
• [Group size = 32 pax, total travel 900 km with
sightseeing,(AC Bus rent 110 Tk/km) , Room rent 1400/-
(Twin Beded, 50% discount), Meal- B.F-65/-, Lunch/
Dinner- 165/- , Parking-200/- , Toll Tax-1220/- , Fun Bus
Trip- 500/- p.p, BF will not provide on 13-12-2018 ].