Worked scenario
Twenty-two of twenty-five, and the costing assumed twenty-five
Group tour economics turn on the last few seats, and most operators do not track how close each departure came.
3 min read
A group tour is priced on an assumed number of travellers. Fixed costs do not fall if fewer come.
The threshold is rarely explicit
Most operators know roughly where break-even sits and do not calculate it per departure. So the decision to run a thin departure is made on optimism rather than on a number.
Late discounting has a logic
Filling the last seats below full price can be correct when the costs are already committed. It is only correct if someone knows where the line is — otherwise discounting starts too early and erodes the whole departure.
What changes
- Break-even occupancy known per departure
- Bookings tracked against it as the date approaches
- Decisions to run, discount or cancel taken on a threshold
- Departure-level profitability recorded afterwards
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