TOUR AGENCY

Tour Agency

[Name of the Institute]

Tour Agency

Tour Agency

Herald tour agency is the company has just launched in London. The company's main aim is to provide packages for numerous categories of tourists. However, the main focus here is to cater the tourist for the Olympics. Here, the main aim of the company is to cater discounts and other benefits to its customers. Since, Herald tour agency has just established, therefore it is seeking to gain better economic gains and therefore is identifying an analyst who can forecast and predict better for the company. This stratagem will help the company to gain a competitive advantage in the market. However, on the other hand, the company is of the belief that proper forecasting will help them to enter into the global market easily.

Discussion

The company will focus to attract a large number of audiences by providing them information about the country. The tour company will also be providing and guiding the passengers will economical lodge along with food. The company will provide a guide for their tourist so that they can easy know about places and history (Levy, 2004, pp: 36).

Selling Price Charged by Herald

London Based Charges: 165

London Trip Charges: 169

Charges for Tour in Evening : 172

Cash Budget on Monthly Basis

1st Month 2 Month 3 Month 4 Month

Beginning cash balance - £157,163 £ 13,718 £469,634 Cash from operations £ 69,330 £ 69,330 £ 69,330 £ 69,330 Total Cash Inflow £ 69,330 £ 26,493 £ 83,048 £ 38,964 Less:

Maintenance of Bus £ 3,000 £ 3,150 £ 3,308 £ 3,473

Wages of Drivers and other Employees £ 6,000 £ 6,300 £ 6,615 £ 6,946

CNG (Use of energy) £ 3,167 £ 3,325 £ 3,492 £ 3,666 Total Outflow £ 12,167 £ 12,775 £ 13,414 £ 14,085 Ending Cash Balance £157,163 £ 13,718 £469,634 £624,879

Total Target Profit along with Break-even trip for London based Tour:

Tickets Sale = Fixed expenses + Profit + Variable expenses

Where n = number of Tourists

1000 n = 3000 n + 9000+ 0

1000 n - 3000 n = 9000

2000 n = 9000

n = 9000/ 2000



Total Target Profit along with Break-even trip for a day trip only from London:

Deal of tickets = Fixed expenditures + Profit - Variable expenditures

Here “n” denotes to the number of Tourists visiting

1000 n = 4000 n + 9000 + 0

1000 n - 4000 n = 9000

3000 n = 9000

n = 9000/ 3000

n = 3

Target Profit and Break-even for Evening tours (for walking tour):

Tickets Sale = Fixed expenses + Profit Variable expenses +

Here “n” denotes to the number of tourists

1000 n = 2500 n + 9000+ 0

1000 n - 2500 n = 9000

1500 n = 9000

n = 9000/ 1500

n = 6

Target Profit = ((2500 *20) + 9000) - (100x 20)

Target Profit = (50000 + 9000) - 12000

Target Profit = 59000 - 20000

Target Profit = £ 39000

XYXTour Agency

Cash Budget

For the Year Ended December 31, 2011

Mater Budget

The Master budgets for the Tour Agency roll up includes:

1.It includes the direct budget for labor ...