Financial Management & Budgeting Flashcards

A client cancels a cruise 45 days before departure. The cruise line's policy charges a 50% penalty. If the total fare was $3,600, how much does the client lose?

Answer: $1,800

50% cancellation penalty on a $3,600 fare equals $1,800 lost.

An onboard credit (OBC) of $200 is applied to a client's folio. The client spends $350 onboard. What is the amount charged to their credit card at checkout?

Answer: $150

$350 total spending minus $200 OBC leaves a balance of $150 charged to the client's credit card.

Which pricing strategy involves selling unsold cruise inventory at steep discounts very close to the departure date?

Answer: Last-minute pricing

Last-minute pricing refers to deeply discounted fares offered on unsold cabins close to the sailing date.

A travel agent charges a $50 service fee for each cruise booking. If the agent books 12 cruises in a month averaging $2,500 commission each, what is the total monthly revenue including service fees?

Answer: $30,600

12 × $2,500 = $30,000 in commission plus 12 × $50 = $600 in service fees equals $30,600 total revenue.

A client budgets $5,000 for a cruise vacation. The cruise fare is $3,200 per couple. Approximately what percentage of the total budget remains for pre/post travel, excursions, and extras?

Answer: 36%

$5,000 − $3,200 = $1,800 remaining, and $1,800 ÷ $5,000 = 36% of the total budget.

Which type of cruise rate requires the passenger to accept whatever cabin category is assigned at check-in, in exchange for a lower price?

Answer: Guarantee rate

A guarantee rate means the passenger is guaranteed at least a specific cabin category but the exact cabin is assigned by the cruise line, often resulting in a lower fare.

Automatic gratuities on most major cruise lines are typically charged as:

Answer: A per-person per-day charge added to the onboard account

Most cruise lines charge gratuities as a daily per-person fee automatically added to the passenger's onboard account.