Group Size Break-Even Analyzer
Calculate the exact number of travelers you need on a tour to cover all costs and start making a profit.
Know your minimum viable group size before you start marketing.
Structure your pricing with a clear understanding of your cost base.
Decide whether to run or cancel a tour based on solid numbers.
Results
Enter values and click Calculate to see results
Understanding Break-Even Analysis
The break-even point is a fundamental concept in business finance. It represents the moment when a product's revenue exactly covers its costs. For a tour operator, it's the number of tickets you must sell to cover all your fixed and variable expenses.
Formula: Break-Even Point (in Travelers) = Total Fixed Costs / (Price Per Person - Variable Cost Per Person)
The value of `(Price Per Person - Variable Cost Per Person)` is called the Contribution Margin. It's the amount each traveler contributes towards covering your fixed costs. Once your fixed costs are covered, this margin becomes your profit for each additional traveler.
Frequently Asked Questions
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