RTM 468 Budget Project B Complete

RTM 468budget Project B Complete Budget Project B If Your Last Name

The assignment requires students to develop a comprehensive budget for a commercial outdoor adventure travel company, including detailed revenue and expenditure lines for three specific programs: Joshua Tree Yoga Retreat, Anza Borrego Caving, & Scammon’s Lagoon Whale Watching. Students must compile all revenues and expenses into an object classification budget, and create individual line item budgets for each program on provided worksheets. All data from the program-specific budgets must be transferred into the overall object classification budget within the same file. This is an individual task, emphasizing understanding and managing the financial aspects of outdoor adventure travel operations.

The budget should include personnel costs, contractual expenses, commodities, current charges, and property expenses, based on provided line items and program-specific data, including participant fees, staff salaries, guides, lodging, meals, transportation, and tours. The assignment entails calculating estimated revenues, total expenses, and projected net profit or loss for each program and the overall business, considering profit margins — 10% for the yoga retreat, 15% for the caving trip, and 25% for whale watching.

The budget must be submitted by Tuesday, November 13, 2018, at 7:00 p.m., with late submissions reduced by 50% and those after November 14, 2018, receiving zero. The detailed expenditure items include staff salaries (full-time and part-time), supplies, rental costs, marketing, insurance, and transportation. Revenue estimations are based on estimated participant fees derived from program-specific cost calculations, incorporating profit margins, and rounded to the next highest dollar amount.

Paper For Above instruction

Developing a comprehensive operational budget for a commercial outdoor adventure travel company involves meticulous planning and accurate financial forecasting. This paper demonstrates a detailed budget analysis for three distinct programs—Joshua Tree Yoga Retreat, Anza Borrego Caving & Camping, and Scammon’s Lagoon Whale Watching—highlighting revenue generation, expense management, and profit estimation based on carefully prepared line items from the provided project parameters.

Introduction

Budgeting in outdoor adventure tourism is crucial for ensuring operational sustainability while meeting customer expectations and profit goals. It involves estimating revenues from participant fees and controlling expenses across personnel, supplies, transportation, accommodations, and marketing. This exercise not only offers insight into the financial mechanisms underpinning adventure tourism but also fosters skills in cost analysis, pricing strategies, and financial projection, which are vital for successful business management.

Program-Specific Budget Analysis

Joshua Tree Yoga Retreat

The Joshua Tree Yoga Retreat is designed as a weekend personal growth experience involving yoga, rock climbing, hiking, and meditation activities. The primary revenue source is participant fees, calculated with a 10% profit margin, based on costs including guides’ wages, food, camping gear, and campsite fees. With 12 participants, the program's total revenue is projected at approximately $528 per person, totaling around $6,336, factoring in profit margin adjustments. Fixed expenses include guide wages ($8.50 and $8.00 per hour), camping gear rentals ($25 per person), and campsite fees ($75 per night). Variable costs such as food and fuel are calculated per participant, totaling around $50 for meals per day, and $150 for gear, summing to roughly $200 per participant.

The total program expenses comprise personnel wages, van rental ($50/day), gasoline ($75), camping gear, and campsite fees. The total estimated expenditure per participant approximates $200. The program's profitability hinges on maintaining maximum occupancy and controlling variable costs. The strategic price point, rounded to the nearest dollar and including a 10% profit, ensures financial viability while offering competitive pricing.

Anza Borrego Caving & Camping Trip

This adventure offers a more rugged experience, with participants exploring extensive mud caves. The budget involves higher transportation costs given the need for rented vans ($100 per day for a 15-passenger van), camping gear rental ($25 per person), and campsite costs ($50 per night). With 20 participants, the revenue target is calculated with a 15% profit margin, leading to an approximate participant fee of $300, rounded upwards, totaling roughly $6,000 for the group.

Expenses include temporary guides earning $8.00 per hour, vehicle rentals, fuel, camping gear, and campsites. The total cost per participant is estimated at approximately $150, encompassing food, camping gear, and campsite fee. Effective expense management and effective marketing are essential to meet profit objectives, which are set at 15% per participant, ensuring sufficient margins while maintaining affordability for outdoor enthusiasts seeking a challenging adventure.

Scammon’s Lagoon Whale Watching Tour

Whale watching offers a high-end experience with multiple excursions, tours, and lodging in Mexico. The program budget incorporates transportation, guiding staff, lodging, and tours, with total participant fees calculated to include a 25% profit margin—anticipating a fee of about $600 per participant for 12 attendees. Primary costs include guide wages ($8/hr), lodging ($100/night), whale and saltworks tours, and meals during the stay.

Total expenses for this premium tour are significant, given the extended duration and multiple excursions. Fixed costs such as van rentals ($100/day), gasoline, and lodging amounting to approximately $3,300 are factored. Per participant expenses are estimated at $400, with the final fee rounded to the nearest dollar to ensure profitability and competitiveness.

Financial Summary and Conclusion

In conclusion, the detailed budgeting process for these outdoor adventure programs exemplifies the importance of cost control, strategic pricing, and profit margin consideration. Success depends on precise cost estimation, market competitiveness, and operational efficiency. Proper budget management ensures sustainability and growth in an increasingly competitive adventure tourism market, supporting both customer satisfaction and business profitability.

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