Backpackers: The next generation? - Scholarly Commons Home
Backpackers: The next generation? - Scholarly Commons Home
Backpackers: The next generation? - Scholarly Commons Home
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<strong>Backpackers</strong>: <strong>The</strong> <strong>next</strong> <strong>generation</strong>?<br />
Owners appear to set their accommodations’ prices based on their BBH<br />
competitors in the area rather than by factoring in actual costs of production,<br />
corroborating government findings (TRREC, 2007b). Only one respondent was<br />
able to compare his assumptions about the impact of increased rates on guest<br />
numbers with actual, historic records. <strong>The</strong> others did not use strategic pricing<br />
histories or decision-making. <strong>The</strong> report (2007, p. 12) suggests that “firms that<br />
did not incorporate their costs into their pricing decision tended to have lower<br />
Financial Yield than those that did”.<br />
Many have seen the market soften in the past few years, believing that the<br />
changes have been brought on in part because of new members in the BBH<br />
group, in part because of changes in international airfare and routes – some<br />
carriers are now delivering clients directly to the South Island. However, none<br />
believe that the exponential growth in facilities will continue, alleging that fewer<br />
people can now afford to get into the market because of soaring real estate<br />
prices.<br />
Few are concerned about soft shoulder seasons, though six mentioned that those<br />
are longer and deeper than ever before. <strong>Backpackers</strong>’ accommodation annual<br />
occupancy is 43.7%, and has decreased by 12% between 2003 and 2006. This is<br />
due largely to increased supply (35%) over the same period (MOT, 2007a, p. 2).<br />
However, most owners appear relatively unconcerned:<br />
We don’t run full all the time. I don’t know how you’d do that, really. But<br />
we’re happy the way it is, gives us a bit of a break (104).<br />
It just ticks over quite nicely (103, 104, 106).<br />
Most, indeed, appear fairly comfortable with this level of business and<br />
occupancy, suggesting the validity of Ateljevic and Doorne’s (2000) findings that<br />
low seasons offer a much-needed respite for family businesses.<br />
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