We set our prices taking cognisance of the cost of the elements making up a package, the margins we require to effectively run our business, prices of competitor offerings, value added and differentiated elements in our offerings, and international exchange rates. Of all these exchange rates are the most confusing so this document explains how we set cross currency prices and deal with exchange rate fluctuations between date of invoicing and date of payment.
Prices and Rates
Rates – generally the term rates is used in relation to the individual components that make up a travel package, for example accommodation, vehicle hire or a guide’s daily fee. You can have different rates for different seasons or numbers of people. Generally in travel the term prices relates to a package, the combination of elements having different rates. Prices can also be seasonal or quoted for different numbers of travelers.
Our prices and rates are in USD
Suppliers in East Africa and most African countries charge in United States Dollars (USD) while South Africa charge in South African Rand (ZAR). Many West African country suppliers charge in Euros (EUR).
Whether our suppliers charge us in South African Rand, Botswana Pula, Uganda Schilling or a host of other currencies, we automatically convert all our prices to USD using the latest exchange rates. This makes it easy to compare prices of tours and packages in different destinations.
The prices quoted for a tour
When we produce a quote for a tour we will quote in whatever currency, you require us to, resulting in a quote that will use your bank’s exchange rate at the time of processing the invoice.
If we cost your itinerary in one currency, and quote you in a different currency we will use the current exchange rate and build in a clause relating to any material rate fluctuations from this, usually 2.5% either way. This ensures the fairest price for you and protects both of us against fluctuations in currency, the exchange risk that both parties take is limited With all this in mind, please note the prices on our website are indicative and a guideline only, giving you a good idea of what the tour would cost in USD at the current exchange rate.
The exchange rates used
We use exchange rates www.oanda.com or www.xe.com to calculate our prices. We use our bank “Buy Transfer” rate when quoting you, effectively the rate that we will receive from our bank when you pay us in a foreign currency. Any fluctuations requiring adjustment will be calculated on this rate.
Our price guides display indicative and approximate prices
We display the lowest possible rate for every tour using acceptable standards of accommodation, transportation, activities, services and routes. Except for our scheduled and group tours, there are many options available to you that will affect the final price of a tour. As with displaying our prices in USD, using an approximate starting price makes it quick and easy for you to compare tours on our website.
Factors that affect the price you pay
The majority of African accommodation suppliers have seasonal and annual rate differences, and all suppliers tend to change their annual prices as the cost of their inputs, fuel, labor etc change. These are the principal factors affecting the final price you will pay:
- The time of year you travel (peak season or low season)
- The duration of the tour or safari
- The standard and type of accommodation – the service level
- Whether it is a guided (escorted) safari or an unguided (independent) tour
- Economies of scale – The number of people in your group i.e. larger groups will cost less per person for guiding and transport, as there are more people to cover these costs.
- Additional activities, excursions and services