This fictional example is a three-day, two-night adult learning camp for up to twenty guests. The lodging commitment includes ten twin guest rooms and the separate staff accommodation required by the example. The group uses a fixed teaching plan approved for that number and skill mix.
Fixed costs
| Item | Fictional cost |
|---|---|
| Facilitators and operating team, including preparation and cover | $4,800 |
| Lodging commitment | $3,000 |
| Administration | $800 |
| Allocated insurance | $400 |
| Operating contingency | $600 |
| Total fixed costs | $9,600 |
Cost per guest
| Item | Fictional cost |
|---|---|
| Meals | $90 |
| Materials | $35 |
| Payment and individual booking costs | $25 |
| Included local transport allowance | $20 |
| Total variable cost | $170 |
At a $795 fee, contribution is $625. Break-even is $9,600 ÷ $625 = 15.36, rounded up to sixteen paid guests.
| Paid guests | Revenue | Total modeled cost | Operating result |
|---|---|---|---|
| 14 | $11,130 | $11,980 | −$850 |
| 16 | $12,720 | $12,320 | $400 |
| 20 | $15,900 | $13,000 | $2,900 |
The result still excludes the items stated at the start of this guide. Replace all figures with actual quotes, including the cost of required staffing and accommodation.
Now change two twin rooms to single occupancy. Capacity falls from twenty to eighteen guests. At the same fee, the result becomes $1,650: $14,310 − $12,660. You lose $1,250 of contribution, not merely the price of two breakfasts.
Your task: Budget the room mix you expect to sell, not an imaginary building full of perfectly matched pairs.