Price discrimination - tourists pay 5x what locals pay

[Mattg]

I think it is a little tight to complain - have you any idea how little a Puruvian makes a month (about $450), why shouldnt they have a little compensation

I agree with you in part, but if the airlines couldn't get away with charging locals what they charge foreigners, why should they get away with ripping off tourists? In this case, LAN Airlines wanted to charge more than $600 for something that the locals would pay $120 for. I don't think this is reasonable. Furthermore, the profits from LAN don't help the local people as the profits from LAN's Peru operations go to investors in LAN in Argentina.

I understand what you're saying about the locals not being able to afford to pay what we pay, but I don't think that makes it right, particularly when the price difference is so phenomenal and the money goes overseas anyway. If it was a tourist attraction, local business or something else which actually supports Peruvians and their economy, I would feel differently about it.

 

[JSavill]

I think you are missing the point - the price you pay is the accurate price, the locals just get a massive discount (not the other way around) and this is the case in many 3rd world countries

 

[jono88888]

It happens everywhere.

Visit Oxford. The great educational town in the UK. Different prices apply to locals vs tourists.

Same in Cambridge. Was there last week with a friend who was a local and whereas I was paying up to about $30 to get my family into each college he was able to get into most for free.

 

[dajop]

I almost never works the other way around, but I can think of 1 exception. Since becoming a "Permanent" resident of Singapore, like other locals I have to pay $100 to visit on of the "Integrated Resorts" (aka casino). Tourists and non-permanent residents get in for free. Not that I ever visited when I could get in for free.

 

[Mattg]

I think you are missing the point - the price you pay is the accurate price, the locals just get a massive discount (not the other way around) and this is the case in many 3rd world countries

Again, I partially agree that it is unfair for the (presumably poorer) locals to have to pay exorbitant prices, however I don't agree that $600 + is the "accurate" price for 2 x 1.5 hour domestic flights.

 

[footy99]

One thing I forgot to mention earlier - if you have a lot of time in Peru, the buses are exceptional, and very cheap.

As someone who generally avoids buses like the plague, I was blown away. The VIP suites on Cruz Del Sur were something else. Alongside the sleeper buses in Chile, they're the best I've found anywhere.

It's one area Peru does substantially better than most developed countries. I think tourists pay the same as locals. I have never been able to book online in the past but this may have changed.

I'm getting excited just thinking about it - time to go back!

 

[here2go]

Even happens in Australia. The MONA gallery in Hobart is $20, but free admission for Tasmanian residents.

Cobb and Co Museum (Part of Qld Museum) in Toowoomba is free for residents of Toowoomba (fair enough - they can drag in friends and family) and there is a discounted rate for RACQ members, and NRMA (NSW), but not RAA/RACV/AANT, etc. As a former Queenslander myself, I find the positive discrimination towards New South Welshman by a Queensland Government entity over residents from other states and Territories an act of treason.

 

[roego]

Try booking a cruise in Aus, get your price and then try through a USA site. Quite often thousand dollars or so less in USA. And they are not allowed to sell to Australia. My friend asked y the difference and was told because we don't tip??
Try booking a rent a car from Aus and USA, see if you get a difference.
I bought a Seiko Sola watch in Singapore recently, 150% same model in Australia(expensive freight)
Even Air Asia Option Town, not astronomical charges more for Aussies than Malaysians.??????????

 

[CaviAck]

Try booking a cruise in Aus, get your price and then try through a USA site. Quite often thousand dollars or so less in USA. And they are not allowed to sell to Australia. My friend asked y the difference and was told because we don't tip??
Try booking a rent a car from Aus and USA, see if you get a difference.
I bought a Seiko Sola watch in Singapore recently, 150% same model in Australia(expensive freight)
Even Air Asia Option Town, not astronomical charges more for Aussies than Malaysians.??????????

I did do the cruise thing... it was about 25% cheaper on the North American site. Funny thing though, that was comparing all inclusive prices where all the gratuities (aka tips) were included. I even went further by filling out the tip section of the bills on the ship. They were never processed and the tips I gave were never entered into our account.

You would easily expect rental cars to cost more in Australia than in America, we have higher minimum wages, cars cost more in Australia, higher taxes, etc.
The cost of goods and services would be influenced by higher taxes, higher wholesale prices, higher shipping costs, higher wages. But at 150% of the cost of the watch is a bit rich. I mean look at the computer parts market, our prices are very competitive with US pricing... for everything else there's the Australia tax.

 

[Mattg]

One thing I forgot to mention earlier - if you have a lot of time in Peru, the buses are exceptional, and very cheap.

As someone who generally avoids buses like the plague, I was blown away. The VIP suites on Cruz Del Sur were something else. Alongside the sleeper buses in Chile, they're the best I've found anywhere.

It's one area Peru does substantially better than most developed countries. I think tourists pay the same as locals. I have never been able to book online in the past but this may have changed.

I'm getting excited just thinking about it - time to go back!

Thanks for the tip, I have actually booked a bus from Cusco to Puno, should be an interesting experience!

 

[ethernet]

Knowledge is power, but avoiding price discrimination costs time.
My attitude is use the internet to pick alternatives, or cough up, then tell the story.
For flights, expertflyer has uses for non-run-of the mill destinations. Then a multilingual speaker from the office can cut through the chaff, and use a 'local address' sometimes helps.

I confirm PD is alive and well in Hungary, even if you speak the language.
In Bali, they have 'Insurance' . But when people die - you can never collect - Reminds me of Thai Jetski scams(dont), or the Vietnam boat that sank drowning tourists - and hey - that insurance was doubly worthless.
Vietnam is a shocker. People born there pay a stiff visa fee, when some can come in for free (Russians). Same for tourist places and restaurants and hotels.
For car rental in .au - insurance included(but not tested) - economycarrentals.com , double up with ANZ card rental insurance. Then compare against brit sites.
For USA priced shoes, try shipito.com to remail them to aussie via Amazon. Ditto for software and itunes cards.

The top five rorts for Australians are:- (and I may be wrong)
Mobile roaming charges (Koreans seem to have the best deal)
cough exchange rates / Credit card fees on top ++
Insurance , Hire Car and Travel Insurance (Said Allianz is best of a bunch). But some o/s based competition is starting.
Resale price maintenance (Big 'name' hardware and software co's, shoes, auto parts and cosmetics, handbags)
Local bank loan interest rates and fees (which is why they are profitable).

Medical and Dental tourism is on the way UP. I make sure I have checkups when O/S and take non-controversial prescriptions for myself and others. I understand the Philippines makes a few just off-patent blockbusters and statins. I suggest it would be cheaper to fly some patients O/S and back for their anti-cancer treatments. Looky Here: Pharmaceutical Benefits Scheme (PBS) - Ex-manufacturer price

 

[roego]

I did do the cruise thing... it was about 25% cheaper on the North American site. Funny thing though, that was comparing all inclusive prices where all the gratuities (aka tips) were included. I even went further by filling out the tip section of the bills on the ship. They were never processed and the tips I gave were never entered into our account.

You would easily expect rental cars to cost more in Australia than in America, we have higher minimum wages, cars cost more in Australia, higher taxes, etc.
The cost of goods and services would be influenced by higher taxes, higher wholesale prices, higher shipping costs, higher wages. But at 150% of the cost of the watch is a bit rich. I mean look at the computer parts market, our prices are very competitive with US pricing... for everything else there's the Australia tax.

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[kremin]

Thanks for the tip, I have actually booked a bus from Cusco to Puno, should be an interesting experience! 


Mattg. Great choice ! The bus trip is excellent heaps better than the train IMO and does a few tourist stops on the way too Watch out for the altitude effects up on the Altiplano.

K

 

[Musongman]

In Thailand, foreigners who live there, and all tourists, are slugged with huge differences in entry fees to attractions. Whilst many of the locals have low incomes and deserve the cheaper entry prices, there are many wealthy Thais who get away with the "Thai price"! Ex-pats who lives permanently in Thailand, and are prepared to stand their ground, and produce a Thai driver's licence, or their passport with an appropriate visa, can often get the "Thai price".

 

[ausfox]

Chile charges 3 countries Reciprocal entry fees. Guess what? Australia is one of those countries. Cash USD90 last year for one month entry Take care when booking La Paz to Santiago. It can put down at a small town entering Chile and if you do not have current status you have to pay even when transitting.

 

[footy99]

Peru charges 3 countries Reciprocal entry fees. Guess what? Australia is one of those countries. Cash USD50 last year for one month entry Take care when booking La Paz to Lima. It can put down at a small town entering Peru and if you do not have current status you have to pay even when transitting.

This sounds like a scam, unless it is brand new. I've certainly never paid it. Most recent trip was last year.

 

[ausfox]

Sorry brain fart just off MH148 waiting for MH20. It is Chile with the recip fee. I have edited the post. Thanks footy99 for questioning the incorrect post.

 

[footy99]

Sorry brain fart just off MH148 waiting for MH20. It is Chile with the recip fee. I have edited the post. Thanks footy99 for questioning the incorrect post.

Yeah Chile has a fee if you enter via the SCL airport. Copped it unexpectedly the 2nd time I visited (didn't research properly). I went overland through Bolivia the first time and it was free. I'm pretty sure even flights into other ports don't attract the charge.

 

[kremin]

Yeah Chile has a fee if you enter via the SCL airport. Copped it unexpectedly the 2nd time I visited (didn't research properly). I went overland through Bolivia the first time and it was free. I'm pretty sure even flights into other ports don't attract the charge.

That's my experience too, just on SCL arrival Other ports have been no charge.

K

 

[Roberto]

It's the Vibe!

Even happens in Australia. The MONA gallery in Hobart is $20, but free admission for Tasmanian residents.

Actually the price discrimination by the MONA gallery and SeaWorld are against the Australian Constitution and therefore illegal. The relevant section states:
　

"A subject of the Queen, resident in any State, shall not be subject in any other State to any disability or discrimination which would not be equally applicable to him if he were a subject of the Queen resident in such other State."

A class action would however be required as it's hardly worthwhile mounting a challenge to save such a small sum. It's the vibe!