Local Rates

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And yet over 21 years my tickets to Cancun have gotten cheaper and cheaper, even before accounting for inflation. With inflation the tickets today are extremely cheap compared to our first trip in 1996.

Lucky you. I've not experienced the same economies of scale these big airlines were supposed to realize that was supposed to result in lower fares and better service as they all assured they could and would provide if their mergers were approved. I see higher fares with baggage charges loaded on top under the excuse that oil was trading at $125+/barrel, meals gone, smaller seats, no more pillows, no more blankets, no more nothing unless you pay. I didn't see those baggage charges vanish when oil was trading sub $30/barrel. Did you? Heck, they now want me to pay for premium seat selection and even SW wants more $ to get higher up in their free-for-all line.

Think I need to win the lottery as the first thing I'll do is buy a private jet and be done with it.
 
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Lucky you. I've not experienced the same economies of scale these big airlines were supposed to realize that was supposed to result in lower fares and better service as they all assured they could and would provide if their mergers were approved. I see higher fares with baggage charges loaded on top under the excuse that oil was trading at $125+/barrel, meals gone, smaller seats, no more pillows, no more blankets, no more nothing unless you pay. I didn't see those baggage charges vanish when oil was trading sub $30/barrel. Did you? Heck, they now want me to pay for premium seat selection and even SW wants more $ to get higher up in their free-for-all line.

Think I need to win the lottery as the first thing I'll do is buy a private jet and be done with it.
Do you really think your airfares are costing more than they did 20 years ago? In inflation adjusted dollars I could probably fly to Cancun first class for the same money I paid in '96.
 
Do you really think your airfares are costing more than they did 20 years ago? In inflation adjusted dollars I could probably fly to Cancun first class for the same money I paid in '96.

Based on the inflation calculator I used, the $600 flight it takes for me to get to Cancun would be a bit under $400 in 1998 dollars. I remember airfares being under $200 then.
 
Based on the inflation calculator I used, the $600 flight it takes for me to get to Cancun would be a bit under $400 in 1998 dollars. I remember airfares being under $200 then.
And I remember paying $625 in 1996 out of Seattle.
 
>> You mean until our bought and paid for government's antitrust department approved so many mergers among the airlines that we now have an oligopoly with all true competition effectively eliminated. <<

Not at all. It's just demand/revenue and really YIELD management. An airline's goal is not just to sell "seats" but to sell them in such a way that would make the most money for the airline. Same for hotels … Marriott pioneered similar for that industry. Back in the 80's, I used to build the models that would optimize this inventory management problem for the airlines. Ever notice that while you're looking at an airfare and find something you like and call your friends to jump on the same rate that it often changes? Well in todays connected world we have almost instantaneous demand forecasting capabilities!

Bob
Bethesda, MD
 
Local rates in the old days could be covered by a driving license now you need a local health insurance card. I was blown away when I was asked for one last year by a new shop girl who didn’t recognize us. Its a place where we regularly go shore diving and it was three local DMs. However understood the problem and we all paid full rates as all we had were c-cards and one driving license (no wallets). Locals don’t have the confirmation rights as visitors, take care of getting to and from and pretty much do everything with their gear and if other guests book can lose their spot on the boat last minute. They also tip the guys real well as they know how tight that is and to show their appreciation for the local rate. Many of the boats ops now are also asking for health insurance cards. There are too many folks here that have condos they visit once or twice a year and while it would be nice to extend the discount we would all go out of business. In addition locals send us new business regularly so it all works out. Sorry should clarify this is how it works in Grand Cayman. And actually while we would always rather have a full boat, sending a boat out without empty seats does have benefits. It gives the DM's a bit of a break, gives the guy on surface watch time to really look over the boat and gear that is left on it and mean that the time involved in waking the boat up and putting it to bed is much faster. Everyone likes a day when they get a little bit of free time. Can't speak about the situation in Coz, but the margins here are very tight. Many of the smaller ops while still having their old "name" have been bought up by one guy. Anyone here who is licensed (there really are no pirates) cannot afford not to charge going rates. The overall costs of insurance (both boat/business and health), work permits, T&B License and even CITA costs are just too high -- the salary and gas are the least of the problem.

Generally true, although Red Sail runs a weekly resident-only dive - no bumping.

Those operators who do offer resident rates (and I dive with several of them on GC) vary in how they run their deals, and some just give a good rate to "local" folks they know will dive a lot with them regardless of their official "resident" status. The ops should actually rebrand it as stand-by rates, if that's what they are, and not worry so much about residency. There is a LOT of (practical, useful) economic research on dynamic pricing that the dive ops could benefit from (e.g., this is how airlines and cruise ships price their seats/slots). If you want/need to know you have an iron-clad but refundable reservation, then you pay full price. You pay something less if you can fully commit (no refund for cancellation) or can show up at short notice - usually a day (stand-by) or are OK being bumped. If the boat (airplane, cruise ship) is going out anyway, then anything a dive op can get above the very low variable cost of an additional passenger is profit. Once the boat leaves the dock, each empty seat is worth 0. If I were me (and occasionally I am) I would want a list of "locals" (be they long-stay tourists, condo owners who come down for only a few weeks or months, drivers license holders, citizens, whatever) that I could contact whenever a boat was going out less than full. Since pretty much only non-tourist types could dive under these conditions, it really does not make a difference what you actually call them. There are a couple of ops on GC that I have done this with (regardless of my legal residency status). My upside is a great rate. My downside is that I don't get to plan when I go out, and I may get bumped at the last minute for a full-pay. I am totally OK with that. And on Sundays I know I can go with Red Sail. The dive op's upside is that whatever they get from me is almost totally profit. And I'm a relatively low-maintenance, good-tipping customer, so I guess that helps - at least they keep letting me come back.

In a former life I started/ran a couple of companies that price-tiered the assets we sold. For example, one was a leasing company. When a customer leased an asset from us, we cover the fixed and variable costs in the base lease. If we could get them to add additional assets, our increased costs were mostly variable or step, so we could lower the price to entice customers to add assets yet make an even greater profit. This is similar to a volume discount, something we are all familiar with. Everyone wins. This also underlies the "add one" sales campaigns that companies in almost any industry use ("Do you want to supersize that?" I.e., pay way more for a bigger product than the almost nothing additional it costs to provide it). Financially it always make sense to entice sales at a lower cost if your fixed are already covered, assuming the increase in volume does not trigger an increase in fixed costs (e.g.,you would not buy another boat if you consistently had more than a boatfull of only local-discount customers).

So....If you can't find a published "local" rate, approach a dive op and explain that you plan to do lots of dives with them (I try to go at least twice per week) and see if they are open to the concept of calling you (or you calling them) the evening before to see if there is an opening, with the possibility of being bumped the morning of the dive, and offer to pay something like half price, explaining that this will be very profitable for them. If they are financially astute they might do it regardless of your legal residency status.
 
Generally true, although Red Sail runs a weekly resident-only dive - no bumping.

Those operators who do offer resident rates (and I dive with several of them on GC) vary in how they run their deals, and some just give a good rate to "local" folks they know will dive a lot with them regardless of their official "resident" status. The ops should actually rebrand it as stand-by rates, if that's what they are, and not worry so much about residency. There is a LOT of (practical, useful) economic research on dynamic pricing that the dive ops could benefit from (e.g., this is how airlines and cruise ships price their seats/slots). If you want/need to know you have an iron-clad but refundable reservation, then you pay full price. You pay something less if you can fully commit (no refund for cancellation) or can show up at short notice - usually a day (stand-by) or are OK being bumped. If the boat (airplane, cruise ship) is going out anyway, then anything a dive op can get above the very low variable cost of an additional passenger is profit. Once the boat leaves the dock, each empty seat is worth 0. If I were me (and occasionally I am) I would want a list of "locals" (be they long-stay tourists, condo owners who come down for only a few weeks or months, drivers license holders, citizens, whatever) that I could contact whenever a boat was going out less than full. Since pretty much only non-tourist types could dive under these conditions, it really does not make a difference what you actually call them. There are a couple of ops on GC that I have done this with (regardless of my legal residency status). My upside is a great rate. My downside is that I don't get to plan when I go out, and I may get bumped at the last minute for a full-pay. I am totally OK with that. And on Sundays I know I can go with Red Sail. The dive op's upside is that whatever they get from me is almost totally profit. And I'm a relatively low-maintenance, good-tipping customer, so I guess that helps - at least they keep letting me come back.

This is pretty much EXACTLY what I do

Like I said in one of my posts, I don't give someone a discount on the merit that they are "local." It's more about frequency and attitude of the diver. I sent out an e-mail a few years ago explaining my frequent diver program. Basically, the more you dive, the less you pay. Also the option of stand-by divers or guaranteed reservations. It went over extremely well with 99% of the people I offered the deal to. Those with a sense of entitlement or who try to tell me what I SHOULD be offering locals is probably not going to get a good rate from me - haha!

It's a great program, but I get to have the discretion of who qualifies for it, who I want to offer it to and I can change it at any time if it's not working. So far, this has been working extremely well.
 
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Instead of local vs. tourist rates, I'd prefer shops give discounts based on # of dives in a year, like bulk discounts. A lot of shops already give good rates for 5 2-tank dive packages. It would be nice to have a rate for different levels, such as 10 2-tank trips, 20 2-tank trips, 30 2-tank trips, etc. Unless of course, the 5 2-tank trip price is the least expensive price that a shop can do, which I understand. There comes a point where you just can't go any lower.

I'm just not keen on this local vs. tourist rate distinction. If a person lives full-time in Coz and dives 100 times in a year, why should he be treated any differently than a person who lives part-time in Coz and dives 100 times a year? I fail to see why they should be treated differently. They're both diving 100 times.
 
Instead of local vs. tourist rates, I'd prefer shops give discounts based on # of dives in a year, like bulk discounts. A lot of shops already give good rates for 5 2-tank dive packages. It would be nice to have a rate for different levels, such as 10 2-tank trips, 20 2-tank trips, 30 2-tank trips, etc. Unless of course, the 5 2-tank trip price is the least expensive price that a shop can do, which I understand. There comes a point where you just can't go any lower.

I'm just not keen on this local vs. tourist rate distinction. If a person lives full-time in Coz and dives 100 times in a year, why should he be treated any differently than a person who lives part-time in Coz and dives 100 times a year? I fail to see why they should be treated differently. They're both diving 100 times.

Are you sure they don't?
Have you ever asked your op "Hey- I dove with you 100 times last year? Do you offer any sort of discount?"

I have a sneaking suspicion that the people who dive with the ops I use 100+ days a year (and regularly mule down boat parts or dive gear) probably don't pay the same rate I do for diving 5 days a year.
 
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