People have a funny habit of acting in their own self-interests in a competitive market. Value often trumps cost.
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Balancing Act®: The Newsletter(No. 288, August 2023) |
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Enlightened Self-InterestWhen Uber started making serious inroads in major cities, the initial reaction from the taxi industry was to protest. The unions and owners jointly lobbied with politicians and various officials. In some cities there were blockades and street protests. Today, most cabs have technological hailing services, are clean, accept credit cards, and have drivers who know their way around and speak acceptable English. In other words, you can’t stop progress that is beneficial to your consumer, so you’d better improve your business or get out of the business. In 2014, a New York City taxi medallion cost about $1 million. The cost today is about $25,000 or less. In the Northeast Corridor of the US (Boston to Washington, DC), of non-auto commuters and travellers, Amtrak carries 58 percent of all of them, buses 28, and airlines 14. People don’t like trekking to and back from airports, being searched by security, and being subject to delays and cancellations. People have a funny habit of acting in their own self-interests in a competitive market. Value often trumps cost (Uber is far more expensive than taxis). People are not vacationing as much in Cape Cod, it’s less expensive and far less wearying to travel to the Caribbean or Europe. (And they’re forced in the near future to repair the only two bridges for vehicles, which is going to add two hours to the trip.) The theme parks, especially Disney’s two in the US, are far down in attendance because there aren’t enough new rides, Disney raised prices considerably, and the waits for the best rides are too long. Tourism is thriving, people are traveling after being pent-up by COVID and having saved some money while confined in their homes. There is no “new normal” or “return to normal.” There is, however, No Normal® which features a great many new realities. |
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I was staying at the Boston Mandarin Oriental Hotel, where there is a star chef restaurant, Gordon Ramsay’s. The main entrance is on the street, but hotel guests have a private, unobtrusive entrance off the main lobby, a nondescript door. I used it for dinner, and was assured that breakfast was served starting at 6:30. However, the next morning the door was locked at 6:45. I went to the desk and told them of the locked door after being informed the restaurant would be open for breakfast. The clerk apologized profusely, went down the hall to a completely different door, opened it, and said, “I guess they unlocked it while you were at the desk talking to me.” “I guess so,” I said, and went in to have breakfast. |
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