How we calculate your budget and your return on investment

The online estimate on the Offers & Pricing page is based on simple rules and conservative assumptions. Here they are, in full transparency.

Your estimated budget

• Tutoreca Academy
  : an annual price of €96 excl. VAT per licence, from 20 to 80 licences. One licence corresponds to one active employee in your company. Beyond 80 licences, we prepare a custom quote.
• Commitment period
  : a 7% discount on licences for a 2-year commitment, 12% for 3 years.
• Tutoreca Studio
  : a public price of €900 excl. VAT per custom tutorial, from 10 to 50 tutorials, with no commitment discount. A custom quote is prepared based on your needs.
• Platform setup
  : €550 excl. VAT, billed once only.

The displayed budget corresponds to the annual cost of Academy licences, renewed each year. Setup and Studio are one-off costs, shown separately alongside the first-year total. All amounts are exclusive of tax.

Your return on investment

We calculate return on investment solely from the net margin on additional sales: it is the most direct benefit of training, and the easiest to verify in your results.

The formulas

• Customer-facing employees
   = total number of employees × customer-facing share (60% by default, adjustable)
• Annual margin on additional sales
   = customer-facing employees × net margin on additional sales per customer-facing employee per month (€30 minimum) × 12 months × 46/52
• Annual net gain
   = margin on additional sales minus the annual Tutoreca investment
• ROI
   = net gain ÷ annual Tutoreca investment
• Payback period, in months
   = annual investment ÷ monthly margin on additional sales
• Net margin needed to pay back Tutoreca
   = annual investment ÷ (customer-facing employees × 12 months × 46/52), per customer-facing employee per month

Why 60% are customer-facing

Only employees who interact with customers have the opportunity to offer an additional sale: servers, bartenders, receptionists. In housekeeping or in the kitchen, that opportunity is rare. We therefore use 60% of your teams by default. You can adjust this figure to match the reality of your establishment.

Why 46 weeks

We remove 5 weeks of paid leave and about one week of public holidays. Additional sales are only counted for time actually worked.

An example

An establishment with 50 employees, 60% of them customer-facing (i.e. 30 employees), with €30 of net margin on additional sales per customer-facing employee per month, and an investment of €4,800 per year (50 licences, one-year commitment): €9,554 of margin on additional sales, €4,754 of net gain, a 99% ROI and an investment paid back in 6 months. Tutoreca is paid back from just €15.07 of net margin per customer-facing employee per month.

What we don't count

Training has other effects: faster onboarding, fewer mistakes, better customer reviews, more loyal teams. They are very real, but difficult to quantify reliably for each establishment. We prefer not to include them. Your actual return on investment is therefore very likely to be higher than the estimate.

The cost of your turnover

We show what turnover costs your establishment today, without assuming any reduction linked to training. This calculation covers all of your employees.

• Annual cost of turnover
   = number of employees × annual turnover rate × cost of one departure
• Number of departures per year
   = number of employees × annual turnover rate, rounded to the nearest unit
• Departures to avoid to cover your investment
   = annual investment ÷ cost of one departure, rounded up to the nearest unit

Example: with 50 employees and a 38% turnover rate, you record about 19 departures per year. Avoiding 3 is enough to cover an investment of €4,800.

€1,800 per departure: a deliberately conservative figure

We only count the direct costs of a departure:

• recruitment (job ad, screening applications, interviews): about €500;
• the manager's time to train the new hire (20 hours at €30): about €600;
• reduced productivity during the first two weeks: about €700.

International studies arrive at much higher amounts: nearly $6,000 per front-line employee in hospitality according to Cornell University, and about one third of annual salary according to the Work Institute.

Key figures for the hospitality industry

• 63%
   of the sector's hires are fixed-term contracts of less than one month (Akto and UMIH, 2024 industry analysis).
• 59%
   of recruitments are considered difficult by employers (2024 Labour Needs survey, cited by Akto and UMIH).
• About 297,000
   recruitment projects each year in the sector (Akto and UMIH, 2024).
• One employee in three
   stays no more than one year in their job (DARES).
• Nearly $6,000
  : the cost of a departure for a front-line hotel employee (Cornell University, School of Hotel Administration).

An estimate, not a promise

Results depend on the information entered and on how the training is rolled out in your establishment. They are provided for guidance only and constitute neither a quote nor a commitment of results. To receive an official quote, contact us.