QUESTION
Erebus is a UK based company in the Birmingham with interests in various sectors of the travel and tourism related industries. They are a well-established company having over 10 years’ experience of creating and delivering ‘specialist interest’ projects at various European destinations.
Erebus has recognised the need for constant development and has recently been expanding their portfolio to include additional European destinations. This will allow them to offer a new range of specialist projects to include:
– Historical Sites
– Culture Sites
– Nature Sites
– Architectural Sites
Future plans include more activity based projects such as biking, hiking, climbing, windsurfing and horseback riding.
Typically each ‘project’ will include:
(i) Coach hire from a local company with various pick up points in Birmingham and surrounding areas to take passengers to Birmingham airport.
(ii) A scheduled flight to the destination airport.
(iii) Transport from the destination airport and for the duration of the visit using a local coach company.
(iv) Half board hotel accommodation.
(v) Insurance purchased through a UK insurance company on a per head basis.
(vi) Entrance fees to visitor attractions and historical sites that will be an inclusive element of the package. Each visitor attraction needs to be costed separately as the entry charges are likely to be different for each attraction.
SOLUTION
| Particulars | Amount |
| Cost of Birmingham airpoprt | 46800 |
| Tarfer cost | 90480 |
| Cost of a return scheduled flight | 21250 |
| Half board hotel accommodation | 6344 |
| Tour visits | 884 |
| Visit to Poland | 2600 |
| Insurance cost | 390 |
| Marketing and advertising costs | 78000 |
| Administrative and general overhead costs | 468 |
| Total proposed cost of the project | 247216 |
| Workings: | All the amunts are multiplied by number of people. |
| Some amoounts are converted to make all of them in one currency |
KH90
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