Variable cost refers to the expenses that change directly in proportion to the level of business activity or output. In the tourism industry, variable costs increase when the number of customers, bookings, tours, or services increases, and decrease when business activity reduces. These costs are essential for small tourism enterprises such as travel agencies, hotels, restaurants, tour operators, and transport services because they directly affect pricing and profitability. Examples of variable costs in tourism include food and beverage supplies, laundry expenses, fuel charges for transport, commission paid to travel agents, wages of temporary or seasonal staff,