Will diving resorts of Indonesia will increase price?

[bearteacher.tw]

Because the price of gasoline and diedel oil in Indonesia raised very sharply (about 100%), I am worried the cosumption of diving resorts in Indonesia will be more expensive.

I got an email from Derawan Resort and it siad they will need surcharge to cover the oil price.

I have booked a reservation from the resort in Lembeh, and trying to make sure if we will need to pay more. Hope they will use the orginal price they promised me.

 

[Kim]

I should imagine that they will have to charge more. The dive boats use diesel oil and that has doubled in price. Of course other things also use oil so I can't see how they could stay in business without charging more.

 

[bearteacher.tw]

If the resort had given you the price, should they increase the price after pricing?

 

[Kim]

If the resort had given you the price, should they increase the price after pricing?

If they have already given you the price you might be lucky and they honor it. They should have known about the coming price increase when they gave you the price - it's been coming for some time.

 

[Bali-Freak]

Two different points here;

1. Should Indonesian resorts increase their prices after gasoline increase?
2. Should Indonesian resorts increase their prices after you already made a booking?

The answer to question 1 is difficult for dive operators in Bali, because just two days after the gasoline prices increased (more than doubled actually) we got bombed. The gasoline increase suggests we should increase our prices, but the bombing and presumed drop in visitor numbers suggests we should drop our prices. For this reason we, and I guess most other Bali operators, will try to hold our prices.

The answer to question 2 is easy .... no way!!! If they try to tell you that they want to increase the already-agreed price becuase their fuel costs have gone up, ask them to inform you when they gave any divers cash-back when fuel costs have fallen in the past.

 

[Kim]

Bali-Freak - in any event I wish all you guys down there the very best! I can understand the predicament but I for one would expect to pay a bit more all through Indonesia - including Bali. I have a feeling that it won't be so much considerations of price that determine when folks come back. I just hope that enough people realize the best way to kick these animals that bomb people to the wall is to ignore them and refuse to be intimidated. Right now I can only show moral support - but you've got plenty of that from me!

 

[ssra30]

As far as boat goes, if you stay strictly in Lembeh, oil price should not affect you much as traveling distance is pretty minimal as most divesites are within 5-10 minutes boatride. If you base in Bunaken and come over to Lembeh, that might be a different story.

All in all, I would expect them to honor the agreed upon price.
I was planning on going to Burma early next year and the boat I booked on informed me that they will have to add surcharge to cover increased oil price (I made my reservation much earlier this year). Since they use about 12000 liters of diesel for Burma trip, I think it is fair enough since they asked very nicely and gave me a pretty good deal initially. However the point is moot as I now am not able to go on that trip anyhow.

 

[Bali-Freak]

As far as boat goes, if you stay strictly in Lembeh, oil price should not affect you much

The problem is that every time they increase the gasoline prices here (which is quite often these days) everybody thinks the price of everything is going to increase therefore everybody increases the price of everything to compensate. The result is that things like bananas or milk, 'o' rings or potato chips all increase too ...

 

[ssra30]

The problem is that every time they increase the gasoline prices here (which is quite often these days) everybody thinks the price of everything is going to increase therefore everybody increases the price of everything to compensate. The result is that things like bananas or milk, 'o' rings or potato chips all increase too ...

True, the price of everything goes up but usually very slowly and very little in comparison to oil price itself. I doubt a bag of potatoe chip would double the price at the rate of oil price.
I don't know about prices of goods in Indonesia but over here, inflation rate overall in not that bad. I work for fee for service business but my fee has not gone up yet
For now, beside oil price which jump significantly, I still expect most resorts should still be able to absorp the difference of other things or only increase the price very slightly. Not including oil, if they increase their price by say 10% then I think they are taking the opportunity to make extra profit which is not very nice.

 

[Indah]

Bearteacher why don't you just ask them? They for sure will answer you. A lot of us run boats on kerosine (here called minyak tanah). The official raise of the prices is one thing. In reality we all used to pay about Rupiah 350 per liter in 2000. Rupiah 1700 until recently and 6300 rupiah now. Gasoline for us went up from 1800 6 months ago to 6350 now. For our resort it will be an extra fuel costs of US$ 25.000, - per year.
But because things as public transport also go up about 20-35% we also have to raise the wages. Therefore we were forced to also slightly raise our prices. However still very good value for money. In our opinion of course a booking already made and a price agreed upon never can be changed without both parties agree. Rob from Divers Lodge Lembeh. P.S. The Indonesian government made a very wise and brave decision.