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Your Opportunity Costs - How to calculate them?

Here is an example for your opportunity costs and how to calculate them. If you want to fly from Zurich to Singapore in first class, you may have the two choices.

  1. Departure in Zurich on Monday at 22.00
    Booking with Swiss or with your travel agent
     Price for the flight around EUR 10'500

  2. Departure in Zurich on Sunday at 09.00
    Booking with us
     Price for the flight around 4'000 EUR

--> You may save around 6'000 EUR if you buy the ticket from us!

 

Your opportunity costs, if you decide to buy the ticket from us:

You will need to fly on Sunday around 09.00 from Zurich to country X and you will fly back from country X on Monday around 12.00 and arrive in Zurich around 16.00.

Consequently, your opportunity costs for this flight is the time between Sunday 09.00 and Monday 22.00.

To summarize: You will invest the time from Sunday 09.00 until Monday 16.00. On the other hand, you will save around 6'000 EUR. Now it's up to you to make the calculation: If you could earn at least 6'000 EUR in 1 1/2 days, then you better book with your airline or travel office. If you earn less than 6'000 EUR in 1 1/2 days, then you for sure better book with us! Furthermore, you shall not see the time that you need to "invest" as vast time. Rather see it as a chance to visit a country you would never see if you would not "be forced" to start your trip from there.