CCS Financial Management & Budgeting 3 — Questions and Answers
Question 1: 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?
- $900
- $1,800 (Correct answer)
- $3,600
- $1,200
Correct answer: $1,800
50% cancellation penalty on a $3,600 fare equals $1,800 lost.
Question 2: 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?
- $350
- $200
- $150 (Correct answer)
- $550
Correct answer: $150
$350 total spending minus $200 OBC leaves a balance of $150 charged to the client's credit card.
Question 3: Which pricing strategy involves selling unsold cruise inventory at steep discounts very close to the departure date?
- Early booking discount
- Last-minute pricing (Correct answer)
- Group rate pricing
- Guarantee rate pricing
Correct answer: Last-minute pricing
Last-minute pricing refers to deeply discounted fares offered on unsold cabins close to the sailing date.
Question 4: 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?
- $30,000
- $30,600 (Correct answer)
- $29,400
- $31,200
Correct answer: $30,600
12 × $2,500 = $30,000 in commission plus 12 × $50 = $600 in service fees equals $30,600 total revenue.
Question 5: 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?
- 36% (Correct answer)
- 40%
- 56%
- 64%
Correct answer: 36%
$5,000 − $3,200 = $1,800 remaining, and $1,800 ÷ $5,000 = 36% of the total budget.
Question 6: Which type of cruise rate requires the passenger to accept whatever cabin category is assigned at check-in, in exchange for a lower price?
- Inside rate
- Early booking rate
- Guarantee rate (Correct answer)
- Group rate
Correct 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.
Question 7: Automatic gratuities on most major cruise lines are typically charged as:
- A one-time fee at embarkation
- A per-person per-day charge added to the onboard account (Correct answer)
- Included in all cabin categories at no extra cost
- Collected as a percentage of the total fare at booking
Correct 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.
CCS Financial Management & Budgeting 3
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?