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Pricing a group trip: how to set a per-person cost that holds

Group trips lose money when the per-person price is set before the headcount is known. Here is how to build the budget so the number does not change on travelers.

A travel advisor pricing a trip with a calculator, passports and an itinerary

The most common mistake in group travel is quoting a per-person price from a guess at headcount. Some costs are per traveler and some are shared, and the shared ones are what bite when fewer people sign up than expected.

Separate the two kinds of cost

  • Per-person costs: airfare, lodging per bed, meals, insurance, admissions. These scale with headcount.
  • Shared costs: a bus, a guide, a venue, leaders’ travel, a deposit that does not refund. These do not.

Per-person cost per traveler equals the per-person total plus the shared total divided by the number of travelers. The second half is the moving part.

Set a minimum, not a target

Decide the smallest group you are willing to travel with and price at that number. If more people come, the trip has a cushion. If you price at a hoped-for number and fall short, every traveler is underpaying and the organization makes up the gap.

Build in what people forget

  • Leaders and chaperones who travel at no charge.
  • Tips, baggage fees, ground transfers and visas where they apply.
  • A contingency line, typically a small percentage, for price changes between quote and booking.
  • Scholarships or subsidies, if the organization offers them, as a budget line rather than a surprise.

Deposits and deadlines

Set deposit dates that fall before your own non-refundable commitments, so you know the headcount before the organization is on the hook. Spell out what is refundable and when, in writing, before the first deposit is taken.

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