Tour Costing Exercise

EXERCISE I
You are working with Dipipifor Tours Sdn. Bhd. and the company is operating a Discover KL
and Putrajaya tour from Kota Kinabalu. The tour leaves on Tuesday at 1120hours via MH87
and returns on Saturday at 1340hours via MH2612. The reasonable number of tour
participants is forty.
The flight ticket including airport tax will be RM474.00 per person for a round trip. The
motorcoach for tours in KL will cost RM1200.00 all inclusive. Included in the tour is a roundtrip ride on the KLIA Express which your company will charter for RM1950.00. Each tour
member is limited to one piece of luggage only. The group will stay at Mandarin Oriental
Hotel at the rate of RM185.00 plus 5% government tax and 10% service charge per night per
twin sharing room, non commissionable. The hotel will provide complimentary rooms for the
driver and escort.
The room rate quoted by the hotel will be inclusive of buffet breakfast for two person. The
driver and escort will get complimentary breakfast. Should any tour member require
additional buffet breakfast, it will be cost RM15.00 per person. A welcome dinner will be held
at the hotels Ballroom 2 at RM18.00++ per person (5% government tax and 10% service
charge). The driver and escorts dinner will be complimentary.
The tour in Kuala Lumpur will be on the arrival day and continues on Wednesday. The tour
in Kuala Lumpur consists of city tour, the National Science Center, RM60.00 per group,
National Museum, RM2.00 per person, and National Zoo, RM120.00 per group.
The tour in Putrajaya will be on Thursday. Perbadanan Putrajaya will provide a
complimentary coach for the Putrajaya tour and a step-on guide for RM200.00. The tour will
include visits to the Wetland Putrajaya, admission fee RM120.00 per group. An admission
fee of RM2.00 per person to the Botanical Garden Putrajaya. There will be an additional
charge of RM1.00 per person for the monorail ride on the Putra Bridge.
Supplies, advertising, and overhead are estimated at RM15.00 per person. The escorts
salary is RM120.00 per day. For an ideal number of forty tour participants, the profit is to be
set at 15 percent of the sales price.
There are no additional costs associated with this tour. What is the total cost of this tour and
what should be its sales price to the public?

EXERCISE II
You are working for Relaiyon Tours based in Kuching, Sarawak. The company has created
a new package called Discover Kota Kinabalu for the very first time. Since you have
studied tour costing while in UiTM, your manager want you to cost out the tour based on the
following information.
The tour departs from Kuching International Airport on Monday afternoon and returns on
Friday morning. The reasonable number of tour participants is 35. The flight ticket
excluding airport tax will be RM314.00 per person for a round trip. Airport tax is RM10.00
per person. For ease of transportation, the company will charter a local bus company for
four days. The bus will cost RM2400.00, all inclusive.
For the first two nights, the group will be staying at Nexus Karambunai Resort, room rate of
RM220.00++ for double occupancy (5% government tax and 10% service charge). The
escorts room is quoted at RM100.00 nett per night. Room rates are inclusive of breakfast.

Tour Costing Exercise

There will be a welcome dinner at the hotels Kingfisher Restaurant, RM25.00 nett per
person, complimentary for the escort.
The next day, the group will be visiting Karambunai Lagoon where the management of the
park has quoted an entrance fee of RM3.00 per person. Activities at the park include
Banana Boat ride, RM300.00; and Mengkabong Water Village tour, RM200.00. The rate
quoted is for the whole group. Lunch will be provided at the park, prepared by the hotel at
RM200.00 per group. The escort will not be charged.
On day three, the group will check-in at Hyatt Regency Kota Kinabalu. The group will be
staying at the hotel for the next two nights. Room rate quoted by the hotel is RM185.00 nett
per room, double occupancy. Room rate is inclusive of buffet breakfast. The hotel will
provide one complimentary room and buffet breakfast for the escort throughout the stay.
The tour will be visiting Monsopiad Cultural Village, RM300.00 per group, Sabah Museum,
University Malaysia Sabah Campus, and Tanjung Aru Beach. Apart from that, tour members
will have the opportunity to experience discover scuba at Mamutik Island organized by SaiKai Divers at RM111.00 per person inclusive of boat rides, diving gears, and light meals on
the island, free of charge for the escort.
On the final night of the tour, your company will organize a farewell party at the hotel. After
series of negotiation, the hotel agreed to quote your company RM20.00 nett per person, no
charge for the escort.
Supplies, advertising, and overhead are estimated at RM20.00 per person. The escorts
salary is RM560.00 for the whole trip. The profit is to be set at 20 percent of the sales price.

EXERCISE III
You are working for a new tour company in Kota Kinabalu. The company is planning to
create a new package called Discover East Coast of Sabah targeting for students of higher
learning institutions around Kota Kinabalu. Cost out the tour based on the information given
below.
The tour departs from Jalan Bandaran bus terminal on Monday morning and returns on
Friday afternoon. The reasonable number of tour participants is 30. The bus rental costs
RM900.00 per day, all inclusive.
The first destination is Tawau where the group will be staying at The Millenium Hotel for one
night, RM60.00 per night, twin sharing. Driver and escort share a room at the same rate.
Activities in Tawau includes visits to Quoin Hill cocoa estate, RM2.00 per person; Tawau Hills
Park, RM3.00 per person, driver and escort are not charged.
The next stop is Semporna, where the group will be staying at Dragon Inn, RM50.00 per
night, twin sharing. Driver and escort share a room at the same rate. The group will be
staying at the hotel for two nights where activities includes: tour of Semporna Town and halfday trip to Sipadan Island, RM50.00 boat ride per person, driver and escort free of charge.
Sandakan is the next stop where the group will be staying at Hotel Sandakan for one night,
RM80.00++, per night, twin sharing (5% government tax and 10% service charge). Driver
and escorts room are complimentary. Places visited includes: Puu Jih Shih Buddhist
Temple; The Australian Memorial, RM2.00 entrance fee per person; Agnes Keiths House,
RM3.00 entrance fee per person; and Sepilok Forest Reserve, RM5.00 entrance fee per
person, the driver and escort will also have to pay for the entrance fees.
Supplies, advertising, and overhead are estimated at RM20.00 per person. The escorts
salary is RM150.00 per day. The profit is to be set at 30 percent of the sales price.
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Tour Costing Exercise

EXERCISE IV
You are working for a new Travel Agency in Penang. The company has created a new
package to Bali, Indonesia for the very first time. As a tour coordinator, you are given the
responsibility to calculate the tour costing and find the tours selling price to the public based
on the following information.
The tour will be referred as Amazing Bali Tour. The tour departs from Penang International
Airport on Wednesday afternoon and returns on Sunday Morning. The reasonable number
of tour participants is twenty five. The flight ticket inclusive of airport tax will be RM850.00
per person for a round trip. For ease of transportation, the company will charter an
executive coach from local bus company in Bali. The coach will cost RM3000.00, all
inclusive.
Upon arrival at Bali Ngurah Rai International Airport, meet and transfer to a hotel by local
representatives. The group will stay in Ramayana Hotel in Kuta. The room rate is
RM150.00++ for double occupancy (5% government tax and 10% service charge). The
escorts room is quoted at RM120.00 nett per night. All room rates are inclusive of breakfast.
After that, the group will visit Uluwatu Temple, the mysterious holly ancient temple, built ever
since 16 century by the Indian priest from India and it is one of the important ancient
monument for Balinese people. There will be a welcome BBQ Set Seafood dinner at
Jimbaran Beach Restaurant, which cost RM41++ (5% government tax and 10% service
charge) per person, complimentary for the escort and driver.
The next day, after breakfast the group will be transfer to Tanjong Benoa Harbour for an
interesting glass bottom boat ride to Turtle Island which they will be able to see turtles in a
traditional pool within the village and learn about the life of turtle. The boat transfer is
chartered at RM550.00 per boat (one boat can only accommodate up to 15 people).
Activities at the Turtle Island include snorkeling, RM20.00 per person and feeding the turtles
at RM25.00 per person. At noon time, this group will be having buffet lunch at Suling Baleh
Restaurant which cost about RM35.00 person. After lunch, this group will be transferred
back to Kuta and visit the village of Celuk, which famous for its gold and silver work. For
dinner, the group will be having it at Ntarabu Restaurant; the cost is RM45.00 nett per
person. After dinner, proceed to Batubulan to watch the traditional Barong Dance, a dragon
like holy animal battles against the evil witch Rangda. The cost for the show is RM30.00 per
person with welcoming drink. They will stay another one more night in Ramayana Hotel.
Night time activities will be free at leisure.
On day three, the group will depart for Tampak Siring, famous for its Holy Spring Water. The
entrance fee is RM10.00 per person. Lunch will be at Kintamani Restaurant, with the view of
the lake and Mount Batur. The cost is RM30.00 per person. After lunch, the group will visit
Sukowati Traditional Market for shopping. After shopping, the group will be transferred to
Melasti Hotel where they will stay for a night. The room rate is RM125.00 nett inclusive
breakfast and dinner. (Twin Sharing)
On day four, after breakfast, the group will be transferred to Taman Ayun Temple, the second
largest temple in Bali as the legacy of Mengwi Kingdom. The entrance fee is RM5.00 per
person. After that, proceed to Tanah Lot Temple, the Pura Temple is built on a small
promontory which is only accessible at low tide. Lunch at Mentari Restaurant, the cost is
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Tour Costing Exercise

RM33.00 per person. Proceed to Joger Art Shop for shopping. The group will be transferred
back to Kuta, where they spend a night at Hard Rock Hotel. Room rate quoted by the hotel
is RM260.00 nett per room, double occupancy and inclusive breakfast. Dinner will be served
at Teuku Umar Garden Restaurant at a cost of RM900.00 per group, no charge for the
escort. Again, for night time, it will be a free and leisure activity.
On the last day, after breakfast, the group will check-out and transfer to Bali Ngurah Rai
International Airport.
Supplies, advertising, and overhead are estimated at RM25.00 per person. The escorts
salary is RM600.00 and step-on guide fee is RM400.00 for the whole trip. The profit will be
set at 20 percent of the sales price. There is no additional cost associated with this tour.
.
EXERCISE V
You are required to prepare a package for a three days weekend trip for the students and
deciding to organize a bus tour from Kuala Lumpur to Penang. It leaves on Friday morning
and returns on Sunday evening. The reasonable number of passengers for that trip is thirty.
The bus will cost RM1000.00 per day. Your group will stay at Cititel Hotel, where you have
been quoted a nightly rate of RM99.00 nett per night, double occupancy. The escorts and
the drivers room is charged RM50.00 nett per night, double occupancy. The bellhops charge
is RM1.00 for each piece of luggage they move. Each client is limited to one piece of
luggage only. Two breakfasts are provided at RM15.00 each inclusive of tax and service
charges. The drivers and the escort meals are complimentary. There will be three lunches at
three different restaurants located at around Penang town which cost RM15.00 each. There
will also be one dinner at a restaurant in the hotel at RM25.00 per person inclusive of tax
and service charges Again, no charge for the driver and the escort.
You must also incur the admission fee to Bukit Bendera Park which costs RM35.00, to few
temples around the city which costs RM30.00 per person and to Fort Cornwallis at RM12.00
per person.
Supplies, advertising and overheads are estimated at RM300.00. The escorts full salary is
RM90.00 per day. For an ideal number of thirty passengers, the profit is set at 20 per cent of
the sales price. There are no additional costs associated with this tour.
Determine the cost and the selling price of this tour.

Tour Costing Exercise

EXERCISE VI
You are working for a new Travel Agency in Singapore. The company has created a new
package to Kota Kinabalu, Sabah for the very first time. As a tour coordinator, you are given
the responsibility to calculate the tour costing and find the tours selling price to the public
based on the following information.
The tour will be referred as Kota Kinabalu Leisure & Fun. The tour departs from Singapore
Airport on Wednesday afternoon and returns on Sunday Morning. The reasonable number
of tour participants is twenty five (25). The flight ticket inclusive of airport tax will be
RM850.00 per person for a round trip. For ease of transportation, the company will charter
an executive coach from local bus company in Kota Kinabalu. The coach will cost
RM3000.00, all inclusive.
Upon arrival, the group will stay in Promenade Hotel, Kota Kinabalu. The room rate is
RM166.00++ for double occupancy (5% government tax and 10% service charge). Room
rates are inclusive of breakfast. There will be a welcome dinner at the Cultural Palace
Restaurant, RM42++ (5% government tax and 10% service charge), complimentary for the
escort and driver.
The next day, after breakfast the group will depart for Manukan Island. The boat transfer is
chartered at RM550.00 per boat (one boat can only accommodate up to 15 people).
Activities at the Manukan Island include snorkeling, RM20.00 per person, Island Trekking
and fishing, RM25.00 per person. At noontime, this group will be having BBQ for lunch
which cost about RM35.00 person. At 4.50 pm, this group will be transferred back to Kota
Kinabalu where they will stay another one more night in Promenade Hotel. Nighttime
activities will be free at leisure.
On day three, the group will depart for Kinabalu Park. The entrance fee is RM10.00 per
person. Once they have arrived there, they will be brought to the information center where
they will be shown a video on ecosystem and the habitants of the park. After that, they will
proceed with lunch at the Liwagu Restaurant, the cost is RM30.00 per person. After lunch,
the group is free to explore the park. After the visit at the park, the group will be transferred
to Kinabalu Pine Resort where they will stay for a night. The room rate is RM125.00 nett
inclusive breakfast and dinner. (Twin Sharing)
On day four, after breakfast, the group will be transferred to Poring Hotspring, entrance fee is
RM10.00 per person. Activities at Poring Hotspring include dipping in the hotspring pool,
jungle trekking and exploring the hanging bridge Jambatan Gantung. After lunch at Poring,
(lunch cost is RM15.00 per person) the group will be transferred back to Kota Kinabalu,
where they spend a night at Shangri-Las Tanjung Aru Resort. Room rate quoted by the
resort is RM360.00 nett per room, double occupancy and inclusive breakfast. Again, for
nighttime, it will be a free and leisure activity.
On the last day, after breakfast, the group will check-out and transfer to Kota Kinabalu
International Airport.

Tour Costing Exercise

Supplies, advertising, and overhead are estimated at RM20.00 per person. The escorts
salary is RM600.00 for the whole trip. The profit will be set at 20 percent of the sales price.
There is not additional cost associated with this tour.