One of the worst kept secrets
in dive travel is the discriminatory
pricing policy of various dive operations
in the South Pacific. Quoted rates have varied
widely depending on where travelers book from.
Americans and Japanese pay the highest tariffs, subsidizing
cheaper packages for Europeans and locals.
For years, one of the more notorious multitiered
prices was Mike Ball Expeditions out of
Australia. On the aptly named Mike Ball boat
Spoilsport, Americans and Japanese were charged 20
to 30 percent more, depending on prevailing
exchange rates, than what others paid.
Company spokespersons often explain this twotiered
pricing by blaming higher marketing costs in
the U.S. and Japanese markets. Some special services,
such as Japanese interpreters, were also cited.
But mainly it seems the company believed that
Australians and others wouldn't pay the kind of rates
Americans and Japanese were willing to pay.
Mike Ball sold a majority interest in the company
in 1990 and is still a director but is no longer
involved in day-to-day management, although he
hosts a dive trip occasionally. General Manager Stan
Kielbaska confirmed to Undercurrent that while the
company "did have different prices for different
parts of the world," since 2002 Mike Ball has been
offering one rate in Australian dollars (AUD) with a
converted rate in U.S. dollars (USD) for the
American market.
Unrelenting pressure by savvy travelers and
industry insiders, as well as bad publicity on the
Internet, helped change the company's policy. We
spoke with both an American and an Australian travel travel
wholesaler who book Mike Ball live-aboard trips
and confirmed that they had received and forwarded
numerous complaints to the company. We also
confirmed that Ball's prices match up when converted
from AUD to USD.
Yet discriminatory practices still occur. Reader
Vann Johnson recently stopped at the Walindi
Plantation Resort in Papua New Guinea as part of a
Peter Hughes dive package. He asked Shanda, the
manager, for the "rack rate" for his bungalow for
two, and she replied, "It would depend on where
you're from." When Johnson told her he came from
Raleigh, VA, she quoted him $153 USD/person/
night (including meals), leaving him to conclude
that "U.S. citizens are paying through the nose."
Johnson wrote to Peter Hughes about this incident
and received the following reply from Hughes
vice president Sue Hamilton: "I'm guessing there
was some type of miscommunication. Because of the
strength (or weakness) of the Australian dollar over
the past couple of years, they do enjoy a lower price,
but I'm told the Australian dollar is increasing and
shortly will most likely be on par with the U.S. dollar.
By the same token, Europeans who choose to pay in
euros actually pay about 15 percent more than
Americans. This is not discrimination, just the differences
between currencies. I hope this helps clear
this issue."
Unfortunately, this has little, if anything, to do
with the difference between currencies. We e-mailed
Walindi and got the same $153 quote for a bungalow
for two. Then a colleague e-mailed from Bali
and was quoted 163 AUD -- about $108 USD. And
while the Australian dollar is
gaining strength against the
U.S. dollar, it is years -- if ever
-- away from parity.