How do diveshops profit from trips?

[ontdiver]

After pricing some trips privately, some dive shops are definitely making a profit on them. Dive shops are like car dealers to me, they run from above board to sketchyAF.

But is the profit going to the dive shop, or possibly to a travel agent that is looking after all the time consuming logistics for flights, accommodation as well as the actual dive package?

 

[broncobowsher]

Short answer, there is no single profit stream for selling trips.
Selling extra gear is a good one. Been holding out buying something, better get it before the trip.
Sometimes they get a bulk rate on buying a whole trip, thus room for markup.
Or get a comped seat on the boat, etc. This is often getting a free vacation for the work of putting everything together. And not really free, just heavy discount when you consider all the other costs.
Add in some after trip sales. Man these fins really sucked on that last trip, got anything better? I need a better computer. I had the weakest light on the whole boat, sell me one that won't embarrass me on the next trip.

 

[Living4Experiences]

There are a couple of ways that dive shops profit from group dive trips. They could be offered a reduced per person rate when booking more than, say, 10 divers or 10 rooms. The difference of the regular price and reduced price then goes into the shop's pocket.

They could be offered free spots for the group booking so that dive shop staff can go for free. The benefit to the diver is you've got a trip leader to keep everyone organized before and during the trip and a go-to person to ask questions. The trip leader usually handles the logistics of planning and collecting money.

Another benefit to the diver is the added extras, perhaps free Nitrox or included breakfast or included airport transfers.

I live in Oregon. I once booked a trip with a dive shop in Hawaii to Cabo San Lucas. The trip included a day trip to Cabo Pulmo and another day trip to La Paz to snorkel with whale sharks. Traveling with the group got me the transportation I needed to get to those excursions. We had two trip leaders that went for free, but for managing 14 divers, they deserved it. I didn't mind paying a little more to have the trip I wanted.

 

[Eric Sedletzky]

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.

Dive shops get a wholesale price buying the boat or a block at a resort then resell them at retail. The boat or resort will sell them to you retail (same price) if you go direct.
The boat or resort won’t undermine their relationships with shops or agents by wholesaling directly to the public.

 

[RobPNW]

If they get to send a staff member for free with a certain group size, seems like that would be a good perk for divemasters who work at the shop and possibly keep them around.

 

[boulderjohn]

I know that dive travel, both through group trips and private bookings, are the principle source of income for the shop with which I am associated. I don't pretend to know the details.

 

[Dee Sherman]

Yep the way to make a million in the dive business is to invest 2 million

 

[WillieJustice]

Yep the way to make a million in the dive business is to invest 2 million

Yeah, I was going to say that I don't know for sure, but running a dive shop doesn't seem like a way to make a lot of money no matter what.

 

[34109411]

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.

The resort give them a little commission.

 

[Richard Dayan]

Yeah, I was going to say that I don't know for sure, but running a dive shop doesn't seem like a way to make a lot of money no matter what.

I am retired on pension and opening up a dive shop. I am planning to go diving every other day until I can't anymore. It will cost me $600 a week to do that, not counting equipment and my steel tanks and compressor. Maybe some people will come to dive with me, and I can make a profit or break even, but I still plan to use my pension to pay for diving. Basically, I love to scuba dive and planned to be able to afford for it in retirement. Trying to open a dive shop without pension probably would go out of business.