The ferries to and from Isla Mujeres just doubled their prices. Prices for students and elderly did not quite double. Only a 50% increase for students and 66.7% for the elderly. This goes for local workers, food and supplies so it will no doubt result in fewer locals and tourists enjoying the island, but also higher prices for hotels, food, souvenirs, golf cart rentals, etc. I am sure the folks at Ultramar are smarter than the rest of us, but what the hell? Does doubling their prices make econmic sense for anyone. What about going from $35 to $50? That would be more palatible. Doubling just has such a negative connotation. Even squeezing the prices upward over a period of time makes more sense. This reminds me of a local downtown restaurant that was quite popular when it opened. Food and service deteriorated so the owners raised prices to make up for lost revenues. God forbid they fixed the real problems. Needless to say, it closed a few months ago. It is worth noting that both ports made this increase. So much for the free market. Can you say price fixing. OLD AND NEW ONE-WAY FEES: General public from $35 to $70; Locals from $25 to $50; Students from $10 to $15; Elderly from $15 to $25. So this means that a couple with two kids will now pay $280 round trip, or about $22. Not counting whatever the increased costs will be for whatever they do on the island. THIS REALLY SUCKS. Anyone with a big boat to haul people could make a fortune until the bad guys killed them off.
This is completely, for a lack of a better word, : Retarded. How can this be? Doesn't the Mexican government have any kind of regulations about this...? Haha, I remember last year(?) when the government said that "No bolillo can be sold for more than 1 peso each(not including integral..) in Mexico" Chedraui, Mega and Soriana all kept their price at the promised 1 peso each, but made the bolillos half the size :lol: I heard about the ferries, but I never heard that it was decided What are the locals on Isla saying? This will no doubt hurt their businesses....
Good question Jim. My buddy pointed out that in the five years he has been here he cannot remember any price but the $35 pp each way. I cannot either. But still - double just seems so wrong.
My concern is the timing of this increase: Whilst the world is struggling with the economy, and Mexico has launched "Vive Mexico" (reduced offers on hotels, tours etc.) the ferry company(companies??) decide to double the cost. I know people who work on Isla and they are also involved in the "Vive Mexico" campaign. This is a major blow for them as I have already been told. And has the wages increased for the ferry workers? Of course not... You would think that they would plan a different strategy amidst the negative press on the "drug-war", swine flu and economy? Most people I know who own businesses, including the guy who I am currently working for, have lowered their fares/prices just to still receive business until things are a bit more normal/stable. This just seems to be the completely wrong timing to do this. Im very interested to hear what the news will be from Isla in the coming weeks/months thou...
Yes--at least five years since the rates have gone up but is that 7, 8, 10? What other goods and services have NOT gone up in that time? I wonder how these prices compare to what people pay in other countries (prorated of course for their own economies). And, yes, employees wages have gone up and all related costs including fuel (do they use diesel which can gone up enormously due to the government dropping subsidies?) And how much will employees make if the business goes under? Will the market bear the rate hike? Is that much of a rate hike justified? Are you sure of your answer to the last question? Just some comments from "the other side." "Don't ever forget that, in the end, it is the client that determines how many people work in a company and what salaries they can be paid." Lord Robens
Jim: Good point(s). I do know a guy who works on the ferries(Ultramar) and since the price doubled, he has yet to hear of any increase in salaries. He mentioned 2 meetings so far which have given nothing... If the business is right, then by all means experiment with prices, but it just seems as a stupid thing to do right now considering how severely hit Cancun(Riviera Maya) are thanks to the issues mentioned earlier. The problem is also that the ferries pretty much are the only alternatives to even getting to the island... If for example Gray Line would double their Chcichen-Itza tours, then at least people have the luxury of choosing to go with another company. In this case they are left pretty much stranded. And also Ultramar(and others?) actions as a "middle hand"(merely being the link between mainland and the island) have so far been met with anger form the ones I know lives, works and runs their business on Isla. Reminds me a bit about Cozumel were the Taxistas have their stupid monopoly and NO buses to and from the hotels even exist... The price for a one way trip is 100 pesos regardless if you go 100 meters or 5 ks :shock: My thoughts are that I assume its better to have little business than no business. What struck me was the timing since many tour operators and hotels have agreed to promote Mexico to get it back on its feet through the "Vive Mexico" campaign. This just seems to go in the opposite direction. Like T.J said: If one had a big enough boat, one could make some serious money for a short period of time
I didn't say that wages are going to go up now but they have gone up every year (ok--not much!)since the last increase along with fuel prices, inflation, etc. And "volume covers a multitude of sins" in business. When business is good, you don't need to raise more money but right now times are tough--on everyone. Lots of businesses are going under. In the end, they may negotiate the increase but it will happen and people will pay it.
It just seems to be a strange time to do it, thats all. At least if you ask me :? I do hope this could spark the interest of other companies since there is a huge potential regarding transport to and from the island. If another company can offer rates lets say 10 pesos less, then Im sure they would do great, but being in Mexico, I assume that there is some kind of "monopoly"-type thing or at least some heavy contracts involved Id love to see freedom of competition here in Cancun! There are quite a few areas where one could make some serious money around here, if only given the chance that is Good thing I have friends who wont mind scooting over with their boat whenever one needs to go to Isla and back :lol:
We felt the price increase this past weekend. I knew they had doubled the price, what I didn't know was that they are now charging for little kids. I took Max a few weeks ago and he was free, Sunday they charged him 80 pesos. So, a few weeks ago we paid 140 pesos for two adults and one child to cross, now it's 360. That's a big hit. ***quietly walking away without commenting on the politics of the change****
