Real-Life Math
You are booking a European vacation for a couple. While they're
comfortable with the costs of the trip, they don't like to use their
credit cards. This means they will be using traveler's checks on their
trip to cover daily expenses like meals and taxis.
They've paid
for their airfare and hotel in advance.
The couple wants to know how
much they're likely to spend so they can plan a budget. Like many travelers,
they've bought their traveler's checks in American funds. They want
to know if $700 US will be enough to cover their local transportation,
food and entertainment costs.
They are traveling to London, Paris and
Zurich, spending 3 days in each city.
Travel agent Penny LeGrand says
people often get confused about the cost of everyday items when traveling
in Europe, especially when visiting more than one country.
"Really,
the easiest thing to do is to charge everything so you don't have to
figure the exchange rates every time," she says. "But if people don't
understand the costs in their home currency, they could get a shocking credit
card bill."
For the following exercise, you may use these currency
exchange rates:
London: Currency is the pound, exchanging
at 0.59 to $1 US
Paris: Currency is the euro, exchanging at 0.81 to $1
US
Zurich: Currency is the Swiss franc, exchanging at 1.26 to $1 US
Please
note that currency rates can change daily. Stay informed while planning your
trip and while you're on your trip.
Do your calculations assuming
the couple will eat 3 meals per day in each city. Assume they will take a
taxi twice in each city. Note that distances will be calculated by the kilometer,
as European countries use the metric system.
As an agent, you will
need to become familiar with the true cost of such things to be a help to
your clients.
For this exercise, use these sample costs:
In
London, the average breakfast costs 5 pounds, lunch is about 10 pounds and
dinner is 20 pounds, all per person. Taxis cost about 2 pounds per kilometer.
The average trip is 3 kilometers.
In Paris, the average breakfast costs
3 euro, lunch is about 10 euro and dinner is 20 euro, all per person. Taxis
are about 1 euro per kilometer. The average trip is 2 kilometers.
In
Zurich, the average breakfast costs 3 francs, lunch is about 8 francs and
dinner is 15 francs, all per person. Taxis are about 2 francs per kilometer.
The average trip is 2 kilometers.
First, calculate how much money the
couple will spend per day on food and taxis in each city in local currency.
Second,
convert the local currency to U.S. dollars to calculate the amount they will
spend per day in each city.
Add them all together and see how much
they have left for shopping and entertainment.
The couple wants to
buy some gifts and souvenirs in each city, and maybe see a theater show. Can
they afford it?