If the world is in such a bad shape financially, why are vacation packages so expensive?

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Question by pretty teen Pink: If the world is in such a bad shape financially, why are vacation packages so expensive?
Hello my fellow yahooers. My parents wanted to book a vacation to the Caribbean for three weeks all inclusive through American flights. I am sure that the Dominican Republic is much worse financially than we are. However to stay in a hotel (all inclusive for two weeks) cost about 3,000 Euros and the flight cost 1000 per person. (Round Trip). Now let’s see, last time I took college Macroeconomics, I learned that if I own a Hotel where I have employed 600 workers, and in the same city where my hotel is there are ten others perhaps much better hotels than mine; it would make economical sense to reduce the prices of my hotel because supposedly the people are broke. Now speaking economics, in my imaginary hotel in the caribbean (I was there before) they serve free breakfast that included: Fruits, (cheap) Eggs, (cheap)Plantains (some caribbean breakfast stuff) (cheap it grows everywhere). Free lunch buffet: Rice, (cheap), Fish, (cheap, the ocean is right there, where I have seen boats with very poor people mostly Haitian go diving in dangerous water for almost no pay so because of that, (cheap)) Drinks, cocktails (they use their local rum, so (cheap) The hotel accommodations are average, (to their standards they are a five stars hotel) to us Americans a five star hotel is the hotels in Dubai where I stayed with my parents when he had R&R from the war, or The Trump Hotel in Jersey, or the Hotels in Qatar where you are surrounded by nothing but the very best money can offer, and even there it was not so much like these little hotels in the Dom. Rep. So here are my questions: If the world is so broke financially (we all are dyeing broke) why:
1. Does all American Airlines are charging so much when there are so much competition?
2. Why does Rinky dink hotels in the caribbean charging so much for two or three weeks all inclusive and mind you, much more than a (real five star hotels) in Saudi Arabia, Qatar, Dubai where you get ocean, heat, and real food, because I am going to tell you something, we might be broke but those Arabians have money, does people feed you everything. When I was in Qatar at the hotel Atlantis there were ten different buffets from all over the world (all inclusive) ten different swimming pools, sauna, massage, facials,theater, food, food food all freeeeeeeeeeee and the U.S. Army paid only 1500 hundred for three weeks. Later we went alone and paid ourselves and for my parents and I, flying with the Emirates (bling bling) three weeks at the Atlantis for no more than 2,500 dollars (NOT EUROS) for the same service.
The Dom Rep or perhaps better said the (dumb Rep) used to charge all dollars now is Euros, the land is very pretty I give them that however, you could see my military dependent medical records: every time we go to the dumb Rep I as well as my little brother get bitten by this mosquitoes that looks like Apache Helicopters and then we get allergies and sores, mind you that we use the military mosquitoes repellent. My little brother got so sick that he had an anaphalactic shock from mosquitoes allergies and this was at one of the best (or so they say) hotel in Casa de Campo. I, my mom and my little brother got diahrrea every time we go there and we are not an isolated case (see the travel abroad countries safety tips). So you might asks why you want to go there? because it is pretty and the beach is nice. Now, based on what I have said: can you turn your mind into the “economics computer” that I am sure you have and shed some sense into this? It seem to me that I would charge the lowest possible rate and offer more for the dollar than the other hotels, but in this case all of the hotels are more expensive than the others. And by the way, I found out by one of the hotel managers that American tourist are hated they cater more to the German, Italian tourists, mostly German he said. I was dating the hotel owner’s son when I was on vacation there.

Best answer:

Answer by pennybarr
The rich get richer and the poor can’t even afford to look at vacations. Obviously, people are still booking these expensive vacation packages and the hotels make money. Americans may be hated in the DR, but they are only too happy to except our money.

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2 Responses to “If the world is in such a bad shape financially, why are vacation packages so expensive?”

  1. sparks Says:

    The costs will continue to climb as long as people are willing to pay. Actually they love the high tipping Americans, but kinda look down on low tipping tourists of all nations. It’s best to plan a vacation that’s closer to home. The money goes farther and the people are easier to communicate with.

  2. clayjar_azn Says:

    There are still people with money that will go there. People who are hurting financially won’t go there regardless of price reduction. They are taking staycations. So they are not interested in attracting the financially stricken people.

    Their competition are charging the same as well. Airlines are raising prices because of rising fuel costs and less people flying. They are also only interested in people who can afford to fly.

    They may hate Americans, but they love their money.

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