Anonymous
scared commercial guide
The NPS is charged with many things. Among them is
making sure the unskilled public has access to decent river trips at a fair price and
assuring outfitters a reasonable opportunity for profit. My question is how, in the last
twenty years, did the NPSs definition of fair price and reasonable profit come to
accept todays commercial river trip prices? Twenty years ago trips went for $50-80
per day. Even ten years ago a commercial trip could be found at $100/day. Now theyre
$180 to $250+ per day and still rising.
To try to get some idea of what the trips really cost, I got quotes this week
for two local companies that outfit private trips. They include: boats and all gear,
complete food pack, transport for gear and all folks to and from the trip and information
on how it all works. The only thing missing was the boatmen. Now these outfits, like the
full-blown commercial outfitters, maintain an office, vehicles and a warehouse year-round.
They advertise, answer their phones, insure their operation, and carry most of the same
financial burden that commercial companies do. They even pay the boss a salary.
The cost per person for a trip: between $30 an $40 a day.
Is it any wonder that the private demand has gone through the ceiling? Is it
any surprise that the client cross section on commercial trips is going more and more to
the rich and retired classes?
Okay, Ill grant that the commercial sector has a few more expenses.
Boatmans wage can run from (including 25% overhead for state comp, taxes, etc.)
$35-40 per passenger per day for the higher paid rowing guides (to as low as $7-10 for the
lower paid motor guides).
Then theres the pay-off of overpriced company sales (the sale of user
days was and is supposed to be illegal). Lets go high end- a small company of 5000
user-days sells for $1,000,000, amortized over 15 years at 10% -thats about $25 per
user-day (a moot point when you consider that over half the outfitters are still the
original owners and the rest of the sales are, for the most part, fully amortized.)
Umm, lets see...we can add on about $3-5 for passenger insurance
Now I know some of the outfitters are giving the guides some added benefits;
some are making a real effort to contribute to worthy projects like resource trips, guide
training trips and the like, and more power to them- but divide that into their total
number of user days and it doesnt come to a huge amount.
And on top of all this we can add a 5 to 12 % franchise fee (the average is
8% or below).
Im struggling to get it up to $100 a user-day, you guys. Where is the
other $100 per user day going? Either its being inefficiently spent by the
outfitters on something the rental outfits have found a far more efficient way to do, or
its
perhaps its milking the public
the wealthy members of the public
for as much as the market will bear
It aint right.
Why is the NPS looking the other way? |