New trend- Pay all upfront for a discount

[buck wild]

Seems the recent trend both here and elsewhere is a "discount" for paying for the safari package up front now in exchange for the 2021 season. This of course is advertised to take advantage of the current exchange rates (in the past that didn't seem to budge safari prices) and of course provides resources (money) to the outfitters now that are in need based on the likely completely lost 2020 season. I was just having this conversation last week with a good buddy and we discussed how many outfitters might be out of business by then and no way to recoup any money deposit or worse yet full pay when or if that happens. I know most of our sponsors on here will make it through the season but obviously not all outfits with be in the position to stay in business. Anyone else with similar thoughts ?

 

[wesheltonj]

My same worry, all is lost instead of just the deposit. That's too much risk. But I just did see a great deal on a Sable package. And at that price, it might be worth the risk.

 

[Wade J VanGinkel]

I'm booked with henry griffiths next year the end of April. I'm about 70% paid for my son and i but that was my choice before this all started.
He always prices in the rand so watching the exchange rate gets you the best deal.
It was 16 to 1 when I booked and didn't expect it to change so much. 18 to 1 now with projections to be 20 to 1 by the time we hopefully get to go next year.
Mine is a low cost hunt anyway so I wouldn't be out a huge amount.
These deposits could make the difference in these guys surviving

 

[Hank2211]

I am very sympathetic to outfitters who are faced with potentially lost seasons.

The challenge that those who go down the path of taking 100% deposits this year to fund current costs is that they risk never getting in front of the problem. They will use next year's money to fund this year, and will find themselves in similar, if not worse, straits next year when they actually have the added costs of a hunter on site. They will then need to rely on the 2022 year's bookings to pay for the 2021's costs, and so on. If bookings fall off at any time, there is very little option other than to go under, leaving very unhappy hunters in their wake.

I would not presume to tell outfitters how to run their businesses, but based on my own experience, I would suggest that effectively borrowing from next year's hunters to pay for this year's expenses is not a long term solution. If you have the usual smaller deposits on hand, then the problem is lessened (but not eliminated) if you can work with those, rather than with 100% of the costs of a hunt.

 

[Lee M]

I agree this trend carries with it much risk. Very unfortunate global situation with the pandemic. I understand 2021 prepays will help keep the lights on and cash flow coming in at outfitters, but as @Hank2211 points out this could lead to a longer term issue. I would expect only a small % of clients to take this benefit/risk, and do hope that outfitters are able to weather this storm.

 

[375Fox]

Not knowing what is happening in our own country, this is just too much risk for me. I hate knowing what this is doing to hunting industry, but unfortunately this current situation is going to have a terrible effect on all industries. Unfortunately it seems politicians are too vested in the stay at home forever idea to stop destroying our economy and admit there are better ways to go about this Coronavirus situation.

 

[KMG Hunting Safaris]

Seems the recent trend both here and elsewhere is a "discount" for paying for the safari package up front now in exchange for the 2021 season. This of course is advertised to take advantage of the current exchange rates (in the past that didn't seem to budge safari prices) and of course provides resources (money) to the outfitters now that are in need based on the likely completely lost 2020 season. I was just having this conversation last week with a good buddy and we discussed how many outfitters might be out of business by then and no way to recoup any money deposit or worse yet full pay when or if that happens. I know most of our sponsors on here will make it through the season but obviously not all outfits with be in the position to stay in business. Anyone else with similar thoughts ?

Hi @buck wild
I presume that you are referring to the offers that I recently put out. My offers are not there to fill a financial gap in my season, but merely to take advantage of the exchange rate. Nothing more, nothing less. I do actually own other businesses that will keep me busy during the closed season.
We merely tried to supply what has been asked for right here on this very forum.

All the best and hope you and your family are doing well!

Take Care,
Marius Goosen

 

[AES]

Trip insurance should make paying now v later a non-issue.

 

[375Fox]

Trip insurance should make paying now v later a non-issue.

Would most trip insurance bought now not have a clause that would exclude cancellation for any Coronavirus reason?

 

[Hogpatrol]

I suspect this time next year, we'll see more than a few posts about how so and so outfitter is out of business and the hunter is out his deposit or the full amount.

 

[Buckdog]

No way I would put down a dime on a hunt or anything else in the future right now as the future is UNKNOWN! many business world wide will go under before this is all said and done and money will be lost in all industries. From what I know of the hunting industry I will generalized that most operations are not well capitalized to weather the storm. So many will fail. Sad but likely.

 

[BAYLY SIPPEL SAFARIS]

Good day guys!

We hope you are all doing well in these crazy times and that as many of you as possible have resumed work! We are one of the companies that have posted about taking advantage of the favorable exchange rate. We have naturally had many sit downs to figure out how to get by this shut down financially as a business. We have created a water tight financial plan to get us through to the middle of 2021 without ever touching a single clients deposit. We just wanted to inform everyone for their own peace of mind that we would never use a payment now to help fund us through to next year. We quite simply do not need to do so. And for this we are truly thankful as not everyone is in the same situation. This is merely a good way to promote business, help out clients and make a potential positive from this negative situation we are all in. In this industry your name is everything, and that being said we only uphold the highest standards and don't plan on letting that slip. The hunting industry recovered from the 2008 recession and will do so again. We just need to be patient and maintain discipline until we can continue doing what we all love - spending time in the outdoors!

To see our exchange rate discounted offers please click on the link below:

https://www.africahunting.com/threa...w-to-greatly-discount-your-2021-safari.56964/

We thank you all for your time and trust,
Dempsey Bayly and Michael Sippel

 

[curtism1234]

Would most trip insurance bought now not have a clause that would exclude cancellation for any Coronavirus reason?

It would be in the underwriting; the salesman should know. I like "cancel for any reason" insurance. You pay a little more but you don't have to jump through hoops. However, again, check underwriting.

I have found many (if not most) small business owners are terrible with their own numbers. When planning for a hunt 1-2 years out in this environment, I think it is critical to know who you are hunting with. In this environment, I think it is entirely appropriate to ask an owner the state of his financial affairs. If they get mad or they sound like a bumbling idiot, there are plenty more out there.

Answers like what was just posted from
@Bayly Sippel Safaris are comforting

 

[AES]

No way I would put down a dime on a hunt or anything else in the future right now as the future is UNKNOWN! many business world wide will go under before this is all said and done and money will be lost in all industries. From what I know of the hunting industry I will generalized that most operations are not well capitalized to weather the storm. So many will fail. Sad but likely.

This is like saying you aren't going to live your life because you might die. Insurance exists for a reason and paying up front further ensures that your outfitter will be one of those that survive. We are going to look back at this period and be in awe of some of the pricing that is readily available.

 

[CBH Australia]

No comment on this one, I hope we come out ok on the other side of this pandemic

 

[TSALA HUNTING SAFARIS]

Good Day Everyone

Another very good discussion topic and thank you @buck wild for starting this and asking the question.

Tsala Hunting Safaris has also posted some deals with dep. paid for 2020/2021 and want to echo what Marius and Dempsey said.And thank you for their answers as that should restore some confidence and also with the way they run their operations.

The main reason for posting those deals in my opinion is to give something back from the favourable exchange rate's that we currently have and not to generate cashflow during these trying times.

We have done a comprehensive analyses of all financial aspects of Tsala Hunting Safaris and planned accordingly to make sure we are here to stay and offer all our clients a world class experience.Same as KGM hunting Safaris and Bayly Sipple Safaris and other very good outfitters on AH.

Keep safe and we will se soon back in Africa!

Regards

Rouan

 

[buck wild]

Hi @buck wild
I presume that you are referring to the offers that I recently put out. My offers are not there to fill a financial gap in my season, but merely to take advantage of the exchange rate. Nothing more, nothing less. I do actually own other businesses that will keep me busy during the closed season.
We merely tried to supply what has been asked for right here on this very forum.

All the best and hope you and your family are doing well!

Take Care,
Marius Goosen

Hello Marius- I was certainly not specificity referring to your company as I have seen other similar offers here AND elsewhere again as I stated. I realize you run a tip top operation and referred in my original post that I felt the AH sponsors would be in a better position to make it through the lean 2020 season thus still be there in 2021. I TRULY wish all our AH sponsors the best as well as all other outfits but the reality is some of the outfits will fold by 2021 and I was wondering if other potential clients were having the same concerns.

 

[buck wild]

Good day guys!

We hope you are all doing well in these crazy times and that as many of you as possible have resumed work! We are one of the companies that have posted about taking advantage of the favorable exchange rate. We have naturally had many sit downs to figure out how to get by this shut down financially as a business. We have created a water tight financial plan to get us through to the middle of 2021 without ever touching a single clients deposit. We just wanted to inform everyone for their own peace of mind that we would never use a payment now to help fund us through to next year. We quite simply do not need to do so. And for this we are truly thankful as not everyone is in the same situation. This is merely a good way to promote business, help out clients and make a potential positive from this negative situation we are all in. In this industry your name is everything, and that being said we only uphold the highest standards and don't plan on letting that slip. The hunting industry recovered from the 2008 recession and will do so again. We just need to be patient and maintain discipline until we can continue doing what we all love - spending time in the outdoors!

To see our exchange rate discounted offers please click on the link below:

https://www.africahunting.com/threa...w-to-greatly-discount-your-2021-safari.56964/

We thank you all for your time and trust,
Dempsey Bayly and Michael Sippel

Best of luck to you. I was just helping a hunter that is booked with you for 2021 in another hunting forum. I know he is excited to be coming !

 

[buck wild]

Good Day Everyone

Another very good discussion topic and thank you @buck wild for starting this and asking the question.

Tsala Hunting Safaris has also posted some deals with dep. paid for 2020/2021 and want to echo what Marius and Dempsey said.And thank you for their answers as that should restore some confidence and also with the way they run their operations.

The main reason for posting those deals in my opinion is to give something back from the favourable exchange rate's that we currently have and not to generate cashflow during these trying times.

We have done a comprehensive analyses of all financial aspects of Tsala Hunting Safaris and planned accordingly to make sure we are here to stay and offer all our clients a world class experience.Same as KGM hunting Safaris and Bayly Sipple Safaris and other very good outfitters on AH.

Keep safe and we will se soon back in Africa!

Regards

Rouan

Rouan, the best of luck to you and your families. I just ran across one of your brochure's in my desk so I know you made my short list in the past and hope to still make a trip out your way one day.

 

[YancyW]

Paying upfront in exchange for a discount is very common and something I do with my businesses, it seemed like a normal approach given the current situation. For enough discount, I am more than happy to carry a slightly higher risk. Both parties can benefit.