How do diveshops profit from trips?

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LordHavoc

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Location
Dark and deep
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Hi, I have never done any overseas trips from dive shops. I contact the resort or liveaboard, book and just go. I looked at some trips that diveshops in my area have on their websites. The cost of going through these trips is not different from me making my own booking at those places. Why do diveshops offer these at the same price? How do they profit from trips which are sold with almost the same price to the customer as if the customer booked themself? Just thinking.
 
I've always thought it is the safety and security of going with a group you know. Also, it removes the responsibility of making any of your own plans, perhaps with the exception of the airfare. Sometimes, the group gets some kind of discount that is passed down to the individual.

I have never done a group trip, and have no intention of doing so.
 
A significant benefit for the clients is the social element. Skills and interests tend to overlap within "club dives" and there is also support for less experienced divers who may be part of the group. There is generally no down side to a LDS organized trip and folks are generally free to make their own travel arrangements.
 
Along with all the above mentioned, almost all diver's doing a major overseas trip of a lifetime will purchase additional gear, services or lessons from the dive shop to prep for the trip. It maybe a new wetsuit, replace that older BCD/reg, buy a better SMB/PLB, or take a new course like rescue, etc. A trip passenger is also likely to dive more for practice in the leadup to the trip and will learn more about their fellow passengers.
 
As a former dive shop manager and instructor here in the PAC NW.....and a wife who managed STA Travel here at the University of WA we would organise many trips to the Caribbean (mostly Bonaire, LCBR and Coz). Also many live aboard trips on the old Nautilus VII and the newer Nautilus Explorer up in BC. For filling and booking the trips we would basically get our diving and accomodations covered....

For the Nautilus trips, we would just book the entire boat and sell the slots in exchange for one of the upper exec staterooms......

Back in the 90's we would book the Starfire up in the San Juans at least twice a month for day trips and Gordon would give me my slot in exchange for selling the boat....... I also would fill in for occasional Divemaster duty on any days that Bob couldn't make it.
 
The dive shop hardly makes any real net profit on the dive trip itself. The dive shop makes perhaps a 10% commission and a free spot per 8 - 10 paying customers. The commission and free spot aren't much and don't translate into a net profit. The dive shop does it to keep their clients involved in diving and makes some sales on equipment and doodads before the trip. Some dive shops do make profit on the trips. I know some dive shops that organize more than 15 group trips a year in addition to individual bookings. Many dive shop use the opportunity to run AOW and specialty courses during the trip to make more money and get people into con. ed. who normally don't dive locally.

Although they are "group" trips, you don't have to stick with the group or be around the group much. It is very nice if everyone got along with each other. I used to run 10 - 15 group trips a year when I owned my dive center in NY. Some were long weekends and some were up to 3 weeks long depending on the destination. I have had as many as 25 people go on some trips and some trips only 4 (this happened after 9/11 for a couple of years).

It is a break even activity for the dive shop in the most part. The bad part about it is that if you do lots of trips a year, you will have lots of cash tide up in deposits to dive destinations and liveaboards for a very long time in addition to taking on a huge risk in losing some deposits if you don't fill the slots you reserved. The other issue is that some problems, some are big problems, during trips can ruin your reputation and/or lose $$$. One such trip I ran to Cozumel in 1996, the wholesaler I sent all of the money to for the group trip I organized went out of business few days before the trip, I think a week before, and they never sent any money to the dive resort at all, nothing. I got a call from the resort less than a week from our scheduled departure telling me that they never received money from the wholesaler. Long story short, I had to come up with about $20K in 2 days and wire it to Mexico. This disaster couldn't have happened at a worse time, it was February, our slowest time of the year when we are very cash poor. I had to get into my personal savings and borrow from family to get the money for the wire. I did that and left to Mexico not knowing if the resort received the money. I was in total panic during the flight not knowing if they received the money or if we will be kicked out and left in the street (I did manage to hide it real well however). Some of my best customers and friends were going on that trip with me. I didn't tell anyone at all about the issue until the last night there before we were to fly back home the following day. I didn't want to ruin their vacation. I knew that it was all OK when we arrived at the resort's gate and saw the smiling face of the resort manager waiting for me. He gave me a hug and told me that all is OK. I could have told my clients what had happen and that they are shiit out of luck and that they lost the money and no trip but I didn't do that and covered the payment from my pocket and even borrowed money from relatives. If I told my clients that they are shitt out of luck, I knew that would have been the end of my business and I'd have lost all trust from my best friends and clients. I wasn't going to let that happen.

I told my group about what had happen the last night there with all details. They all were in shock and some had tears. The resort manager was there to support my story. These clients became most loyal customers and would never go on any trip with somebody else. We also became very close friends. I was invited to celebrate the holidays and personal occasions with them all the time. That was the worst week for me in the dive business ever. I could never make enough money from running dive trips to compensate me for that much money. I survived it and did well later with my head high and was respected in my community. I had very loyal and strong following among my clients and students.
 
Been on diveshop trips, trips organized by a friend (photographer) or two, and booked my own. The advantage to the shop is 1) free spot(s) for shop personnel, it keeps clients diving and hopefully continuing to dive, social element, and some gear sales. That being said, if you have ever organized a dive outing of more than one day for more than four people, you know how much time comes into booking, collecting money, dealing with cancellations, etc. And while we enjoy the trip, the shop's trip leader is always on duty. Bless the diveshops that organize these trips, they do a great service to their clients with a very low profit margin.
 
Yes, it's all about selling equipment from all I've seen and read. Trips, air fills and even courses are not the bread & butter of dive shops.
 

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