How to price a round tour so you keep your margin

A round tour looks simple on the surface — hotels, transport, a guide, a few activities. But margin leaks from the gaps between those lines: the airport transfer you forgot to add, the currency you quoted in versus the currency you pay in, the "small" upgrade you absorbed to be nice.

Here's a way to price that keeps the profit you quote.

Start from cost, not from a target price

It's tempting to pick a headline number and work backwards. Don't. List every cost first, per day:

• Accommodation (per room, per night, including taxes)
• Transport (vehicle, driver, fuel, parking, night halts)
• Guide fees and meals
• Entrance tickets and activities
• Airport transfers on both ends

If a cost touches the tour, it goes on the list — even the small ones, especially the small ones.

Quote in the customer's currency, cost in yours

International agencies quote in USD or EUR but pay suppliers in rupees. If you don't fix your exchange assumption at quote time, a currency swing eats your margin before the tour even starts.

Rule of thumb: record the rate you priced at, and add a small buffer for movement. When you manage costs in your local currency and quote in theirs, you can see the real margin at a glance.

Add your margin as a percentage, then sanity-check the total

Apply your target margin on top of total cost. Then step back and ask: would a traveller comparing three quotes find this fair? Price is a story about value — your branded itinerary and reliable service justify a healthy margin, but the number still has to feel right.

Watch the three usual leaks

1. Absorbed upgrades. A free room upgrade is a gift you pay for. Quote it or skip it.
2. Unbilled extras. Extra kilometres, an added stop, a late checkout — bill them or agree they're free in writing.
3. Rounding down to win. Discounting the total by "just a little" to close often gives away your entire margin on the last line.

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Price from cost, protect your currency assumption, and keep every extra visible. Do that consistently and the margin you quote is the margin you bank.