A land rate is not just defined by the total. To be useful to an agency must indicate which services it includes, on which basis participants is calculated, which trading regime uses and which elements can change.
In B2B, the land rate can be clear, commissionable or built according to a different agreement between the parties. It is therefore not correct to say that each land rate is automatically a net tariff. The model must be written in the proposal.
Do you have a group request or a product to quote?
Send period, duration, participants and positioning. Redland prepares a land proposal with perimeter, availability status and readable conditions. Contact Redland Tours.
In short: what it has to show
A B2B quotation should specify:
- pricing regime: net, commissionable or other arrangement;
- participant base;
- rooms and treatments;
- transport, accompaniment and activities;
- inclusions and exclusions;
- currency and validity;
- status of availability;
- deposits, balance and cancellations.
What is a land rate
It is the price of the Earth component of the journey, built according to the agreed commercial relationship. It can include accommodation, transport, accompaniment, activities, entrances and assistance.
It does not necessarily coincide with the final price to the public. Agency or tour operators can add flights, insurance, own services, commissions, taxation and margin according to their model.
Net or commissionable?
| Formula | Operational meaning | What to clarify |
|---|---|---|
| Net rate | Basis on which the retailer builds the price | Confidentiality, validity and services included |
| Commissionable rate | Price with expected commission | Percentage, basis of calculation and moment of recognition |
| Agreed price | Model defined by product or partnership | Roles, risks and specific conditions |
The document must prevent the parties from assuming different models on the same figure.
The participant base changes the price
- Individual costs: overnight stays, meals, entrance fees and many activities.
- Costs per room: can generate single supplements.
- Fixed or semi-fixed costs: vehicle, accompaniment and some logistical services.
- Tiered costs: they change when a second vehicle or a different configuration is needed.
The price for 16 participants is not always obtained by dividing the same total by 16.
Inclusions to be read item by item
Accommodations
Structures, chambers, treatment and criteria of possible replacement. The driver and driver should also be checked.
Transport
The proposal should specify vehicle, comfortable capacity, baggage, fuel, driver, mileage and services included.
Accompaniment
It is necessary to indicate duration, language, role, management and operational expenditure. Not all that is called “guide” automatically includes the vehicle.
Activities and entrance fees
An activity mentioned in the program may be included, optional, suggested or payable locally. The state must be explicit.
Meals
BB, DBB and FB must be translated in commercial material. Excluding lunches and dinners must be indicated, especially in remote areas.
Exclusions: Protect price and margin
- flights;
- insurance;
- visas and documents;
- drinks, tips and personal expenses;
- meals not indicated;
- optional activities;
- single supplements;
- variations due to additional requests.
Two offers must be compared on the same perimeter, not just on the total.
Currency and validity
The proposal must indicate:
- original currency;
- any gearbox used;
- economic viability;
- management of changes before settlement;
- components expressed in different currencies.
Price validity, availability and option are different concepts.
Status of services
- Proposed: not verified.
- Available for inspection: without blocking.
- Optionally: held until a deadline.
- Confirmed: accepted according to conditions and payments.
Learn more in deposits, rooming lists and deadlines.
Markup and margin
- Markups: percentage added to the cost.
- Margin: portion of the final price that remains after the cost.
With a cost of 1.000 and markup of 20%, the price is 1,200 and the margin on the final price is about 16.7%. The agency must consider consulting, exchange risk, sales, assistance and taxation.
Redland provides the agreed commercial base; the definition of the public price and the margin of the agency remains in the perimeter established between the parties.
Payments and cancellations
The conditions depend on the services and must be consolidated in a legible calendar:
- deposit;
- subsequent deadlines;
- non-refundable components;
- progressive penalties;
- group reductions;
- nominative substitutions;
- services with different rules.
Compare two quotes
| Voice | Question |
|---|---|
| Regime | Net, commissionable or something else? |
| Base pax | Same number of participants? |
| Rooms | Same distribution? |
| Meals | Same treatment? |
| Transport | Same capacity and equipment? |
| Accompaniment | Same duration, language and role? |
| Activities | Included, optional or mentioned? |
| Currency | Who bears the exchange rate risk? |
| Conditions | Comparable deposits and cancellations? |
Frequently asked questions
Is the land rate always clear?
No. The regime must be defined in the proposal or B2B agreement.
Does the rate guarantee availability?
No. Availability must be verified and, when possible, optioned or confirmed.
Which is better euros or Namibian dollars?
It depends on who takes on the exchange risk and the deadlines. The rule must be explicit.
How do you manage a group reduction?
With a recalculation grid or with the expectation that the quota will be revised based on new costs and services.
A good quote must be clear
Transparency is not to reduce everything to a figure, but to make legible commercial structure, services, responsibility and deadlines.
