Tour production costs

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Author(s)
Buckley, Ralf
Griffith University Author(s)
Year published
2014
Metadata
Show full item recordAbstract
Profitability depends on production costs as much as it depends on sales revenue. Information on production costs is therefore critical in the analysis of competitive commercial enterprises in all industry sectors. The dynamics of any industry sector, under either market or policy changes, depend on the relative production costs of its individual enterprises. Empirical data on production costs are sparse, however, because of commercial sensitivity. Stock exchanges show share prices, and annual financial reports show aggregate income and outgoings, but unit production costs are treated as confidential. Here, therefore, I argue ...
View more >Profitability depends on production costs as much as it depends on sales revenue. Information on production costs is therefore critical in the analysis of competitive commercial enterprises in all industry sectors. The dynamics of any industry sector, under either market or policy changes, depend on the relative production costs of its individual enterprises. Empirical data on production costs are sparse, however, because of commercial sensitivity. Stock exchanges show share prices, and annual financial reports show aggregate income and outgoings, but unit production costs are treated as confidential. Here, therefore, I argue for greater effort in empirical studies on production costs in tourism, to complement the existing body of theoretical research. In particular, I suggest that empirical information on production costs is prerequisite to analyze the value contributed by agents and intermediaries in tourism distribution systems. As an initial case study, I present data from six similar small-group international package tours in the nature and adventure subsector.
View less >
View more >Profitability depends on production costs as much as it depends on sales revenue. Information on production costs is therefore critical in the analysis of competitive commercial enterprises in all industry sectors. The dynamics of any industry sector, under either market or policy changes, depend on the relative production costs of its individual enterprises. Empirical data on production costs are sparse, however, because of commercial sensitivity. Stock exchanges show share prices, and annual financial reports show aggregate income and outgoings, but unit production costs are treated as confidential. Here, therefore, I argue for greater effort in empirical studies on production costs in tourism, to complement the existing body of theoretical research. In particular, I suggest that empirical information on production costs is prerequisite to analyze the value contributed by agents and intermediaries in tourism distribution systems. As an initial case study, I present data from six similar small-group international package tours in the nature and adventure subsector.
View less >
Journal Title
Journal of Travel Research
Volume
53
Issue
4
Copyright Statement
© 2014 SAGE Publications. This is the author-manuscript version of the paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Other environmental sciences not elsewhere classified
Commercial services
Marketing
Tourism
Tourism management