DandyDon:
Yeah, the Lds generally sends people to lead the group and handle details, but they generally get a nice commission on the packages.
Define nice? Dive shops work on 10% commission and that is only on the base package...no air, no taxes, etc.
How many of you would work on a 10% commission and out of that pay all your own expenses?
In the case of the dive industry, out of that 10% comes advertising the trip, having to come up with deposits in advance, bookkeeping costs and other direct trip related overhead, not to mention sending a trip leader who yes will go free
if they book enough people. However free is also a relative word...the diving is free...sometimes the diving and hotel is free and sometimes the diving, hotel and meals are free if it was an all inclusive and it is always an all-inclusive option. (If the LDS added the AI option then their free spot does not include the AI...it was an add-on.) Then there is the cost of getting there. Airfare these days are not commissionable and even discounted air is relative to a specific market and usually only a small amount is available or the savings is only a small amount. Most shops will pass these savings onto you in order to get you to book the trip therefore making even less on the price of the trip.
They earn the commissions alright, as it's a working trip all the way, and some of those go to offset some of the expenses of those working - but they can't be charging $600 over. It's got to include air.
Yes in this case it did include something extra.. and yes $600 a head is quite a markup even for a great shop!
Now let's talk about those commissions. In reality...
most of the comission earned goes to cover the shop's leader/trip guide's expenses. For example...lets say a trip costs $1000 of which say $700 of it is commissionable. That is $70 per head the shop is making gross. If they take 11 people (say 10 pd and 11th free in a good scenario or in many cases the 11th is free diving but you may need as many as 20 to get free hotel etc) then they will earn about enough to cover the cost of airfare to a Caribbean destination (usually $600-800 these days) in the best case scenario. That does not include meals, taxes, nor other expenses. In this example the shop is actually losing money on this trip if they committed to covering the entire expenses of the trip leader.
Some say you can just up the number of people on the trip to get a second free spot...and yes if you can sell that many spots that is a good option. However as you increase the number of people you need to increase the number of people helping to run the trip, otherwise you risk running a poor trip or burning your trip leader out.
Of course the shop can try to offset that by offering classes on the trip but there will be some fixed costs in that and you have to give some of that to the instructor and some of it to the shop. So now the trip leader/instructor is working twice as hard on the trip...teaching, kitten herding, problem resolution, entertaining and ensuring that YOU have a great experience.
Its no wonder that some shops do mark up the trip beyond what you might find on the internet...but the last time I checked the internet does not do a good job of resolving problems for you when they occur. Nor can it provide oversight to you while diving, provide safety in numbers and of course provide the fun that a group can provide! :shakehead
I do not agree with booking your own. A newbie will be much better off traveling & diving with the Lds group.
Don I totally agree with you on this one. They can better learn the ropes while in the safety of a group and under the oversight of an instructor or divemaster.
Remember...getting your open water cert is like getting your learner's permit...it still takes a lot of diving to actually be good at it!