PRICE TYPE - ACCUMULATED COST
The "Accumulated Cost" Price Type allows you to calculate the total cost by adding up the individual costs of various components within a package or booking. This is essential when dealing with complex pricing structures where the final price is not a simple flat fee or per-person rate, and where costs might accumulate based on quantities or thresholds.
Here's a breakdown with an example:
How it Works:
Component Breakdown: The supplier provides individual costs for different elements within the package. These components could include activities, transportation, and other services.
Accumulation based on Quantity: In this case, the cost of a component might depend on the quantity consumed or the number of participants.
Example: Imagine a sightseeing tour where the cost is structured as follows:
1-5 pax: $10 per unit (1 unit might represent a single vehicle or guide)
6+ pax: $20 per 2 units (because you now need two vehicles or guides)
Calculation: The system calculates the total cost by adding up the costs of all individual components, taking into account any quantity-based adjustments.
In the example above, if you have a group of 4 pax, the cost would be $10. But if you have a group of 6 pax, the cost would jump to $20 because you now need two units.
Benefits:
Accurate Costing: By breaking down the package and considering quantity-based pricing, you ensure accurate cost calculation.
Transparency: This provides transparency to clients, as they can see how the cost changes based on the number of participants or units required.
Flexibility: It allows for flexible pricing models where costs accumulate based on various factors.
When to Use:
The "Accumulated Cost" Price Type with quantity-based adjustments is ideal for:
Tours and Activities: Where the cost depends on the number of participants and the resources required (e.g., vehicles, guides).
Equipment Rental: Where the cost depends on the number of units rented (e.g., kayaks, bikes, buggies).
By accurately accumulating individual costs and considering quantity-based adjustments, you can ensure accurate pricing and provide transparent quotes to your clients for complex packages and itineraries.
