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.