More so than ever before, divers are scrutinizing every
cost associated with dive travel. With their income and
portfolios down, some are planning to dive closer to home
or not at all. Those who are planning trips are not about to
spend money foolishly. Today is much different from a year,
even six months, ago. While you have less money in your
pocket, the dollar’s value is on the rise, oil prices are heading
downward and the election has gained America more
respect abroad - - one may not necessarily feel like the “ugly
American” anymore.
Regardless, we divers are not about to cotton to unnecessary
charges and hidden fees, especially when they can add
up to 30 percent of the total bill. To avoid these, pay careful
attention to dive trip costs - - and ask the right questions about
them - - before you reach for your checkbook. In the April
2007 issue of Undercurrent, we covered several hidden costs of
travel; that article is available online to all subscribers (go to
Undercurrent and click on “Back Issues.”) Here are
some financial aspects to consider as you plan your next trip.
Trip Prices
An impressive rise in the value of the U.S. dollar is making
it more affordable for American divers to travel abroad.
For example, bookings on Red Sea liveaboards that charge in
Euros will be nearly 20 percent less than if you booked last
year. Divers can also get more for their money in Mexico,
too. You can get nearly 13 pesos for $1, compared with 10
pesos over the summer.
There are still some regions where the dollar hasn’t
made significant gains, like Asia, the Caribbean and Central
America. But the biggest bargain is Australia, where the
American dollar is worth 35 percent more than it was last
summer. Now Mike Ball’s seven-night “Coral Sea Safari” will
only cost around $1875 instead of $2750 last year.
Unfortunately, this doesn’t mean dive packages will be
discounted across the board. Says Ken Knezick, president of
Island Dreams Travel in Houston, Texas, “Dive travel pricing
is demand-based instead of economy-based.” That means
don’t expect deluxe resorts like Tawali in Papua New Guinea
and Wakatobi in Indonesia to cut their prices by much, if
at all. “I’m seeing that higher-priced trips are still being purchased,
so wealthy divers are still able to travel.”
Knezick says that also applies to liveaboards, which typically
price their trips two to three years in advance. That
means 2009 trips were priced long ago, so they don’t reflect
the boat fleets’ take on economic conditions right now. It’s not
a sense of eliteness keeping liveaboard prices steady or rising,
it’s the constantly upward increase of costs to run the boats, says Knezick. “Besides fuel, there are other expenses like manpower
and food that are increasing. That’s what I have to keep
telling angry people calling us asking why they’re not lowering
prices. No dive operator is going to give its trips away. They
have to evaluate what makes sense to stay in business.”
Undercurrent contacted the Peter Hughes, Aggressor and
Explorer Ventures fleets to get their current take on trip pricing,
but none of them responded by press time. In December,
all three had a few discounts for specific boats on their Web
sites, but Explorer was unique in creating a new “5-5-5 Loyalty
Program,” a type of layaway plan that let any past passenger
book a trip by putting down a 5 percent trip deposit and paying
monthly payments of 5 percent, and receiving a 5 percent
discount off the total in return. (The deal applied to all past
guests until December 31, but starting in January it is only
applicable for divers who book within five weeks of their most
recent Explorer trip.)
So to find the good deals and discounts, you still need to
do your due diligence or work with a travel agent. For example,
find a dive resort or liveaboard that charges in its own
currency instead of the U.S. dollar. The American-friendly
Philippines has great dive deals. For example, at Southern
Leyte Divers on the island of Leyte, an air-conditioned
beachfront cottage goes for $34, a two-tank dive is $50, and
dinner with a beer will only set you back $5. Readers rave
about Grand Komodo Tours in Indonesia, not just for their
great services but their low liveaboard prices. Because they
calculate prices in Indonesian rupiah, you’re typically diving
for $1,500 less per person than other Raja Ampat boats. 2009
prices for a double cabin on their five boats range from $190
to $285 per night.
Currency Charges
Other annoying fees come from using plastic. Currency
conversion fees can add up, as Phil Hampton (Orlando, FL)
found out last summer aboard the Belize Aggressor. “I put
my payment for fuel surcharge, port charge and tip on my
Citicard. My charge was $820. Aggressor converted that
to $1,640 Belize. Citicard uses a different conversion than
Interbank and converted it back to $837, a $17 overcharge.
It then added a 3 percent foreign-transaction fee, which was
$25. Thus it cost me an extra $42 to pay by credit card. The
Aggressor states that most credit-card companies will remove
these superfluous charges with a phone call, but that was
not true for Citicard. Next trip I’ll take cash, unless the dive
operator accepts Discover.”
Indeed, Discover and Capital One are the only cards that
don’t charge a dime in currency-exchange fees; Capital One
doesn’t even pass on the 1 percent fee charged by Visa and MasterCard. Neither do credit unions nor most community
banks. American Express doesn’t charge a foreign-transaction
fee but it does carry a 2 percent currency-conversion fee.
Besides Citibank, those that charge 3 percent include Bank
of America, Chase and Wells Fargo. Don’t think you can get
away from fees by using your debit card - - fees of 2 to 3 percent
are the norm.
Resort Fees
Unless you have asked a lot of questions and read the fine
print, you may not learn of extra fees until you receive your
bill, as reader Allan Ripple (West Bend, WI) found out when
booking at the Wyndham Hotel in Nassau. “We contacted the
Wyndham’s corporate sales department and were quoted a
very attractive room rate. But at check-in, not only were we
not given that quoted rate, we were also charged a resort fee
of $15 per day, per person, $105 a week.” The resort “fee” is
sneaky. And it’s an addition to the often unmentioned resort
taxes, which can run up to 15 percent. Also watch out for
added airport transfer fees.
Regarding the diving expenses, two add-ons to watch for
are marine park fees and special dive trips. When doing a day
trip at Belize’s Blue Hole, Adam Feinstein (Sterling Heights,
MI) didn’t know about the US$40 park fee to enter. “I had $100 to give to the crew as tip and 80 ended going for the
park fees.” Randy Brook (Seattle, WA) went to Belize’s Isla
Marisol resort for its whale shark dives but, he says, “you have
to go deep on its website to find that there is an extra charge.
A two-dive trip in the whale shark area cost an additional
$175 per person. When I arrived at the resort, the chalkboard
announcing whale shark trips made no mention of the extra
charge. A family of four divers was shocked when they found
$700 was added to their bill at checkout, because they thought
the whale shark dive was just part of the package.”
Most travel agents will charge you the total price with fees
included, or at least break them down and put them in writing
for you. But if you’re booking it yourself, Knezick says it’s
important that you ask the resort lots of questions directly.
“Is tax included? What transfers are included, and what cost
extra? Are there boat fuel charges involved and what’s the
amount? Are there chamber and marine park fees to pay?
What is the cost of Nitrox? What beverages are and aren’t
included? Credible travel suppliers will be very transparent
and as clear as possible about their pricing.”
What about fuel surcharges? Are they going away? We’ll
cover that, plus tips and the cost of missed dives, next issue.