Exotic Adventures, Inc Case Study

Exotic Adventures Inc.

Case Synopsis

Exotic Adventures Inc. is an organization that has provided cruises up and down the Amazon River since March of 1997. The company has been advised that the water levels in the river are reportedly abnormally low and are required to make a decision about their already booked voyages (Sharw, 1999).

State the Assignment Question

Should Exotic Adventures Inc. continue with the voyage or inform their passengers about the cancellation and refund them their money?

Case Analysis

Exotic Adventures Inc. needs to make an important decision in regards to continuing with their cruises or suspend them and refund their passengers their voyage fares. The voyages have continued to be a success for the company since the first voyage in 1997. It was observed that during flooding and high levels of water in the river, the wildlife would move inland; whereas when the water levels were lower, the river’s edge were full of wildlife. Through completed research, the company found that during the best sailing time, that is low water season, the levels never reached lower than 18 feet which was a good depth for the vessel to safely sail (Shaw, 1999).

Exotic Adventures Inc. charges $4,000 per person for the tour. This package includes flights and lodging. In August of 1998, the vessel was almost completely booked with 99 passengers to later sail in October 52 up the river and 47 down the river. However, this is when the company began to receive news that the water levels were unusually low and may be dangerous to sail the river. Brazilian pilots reported not being able to navigate passed their part of the river, whereas the Peruvian pilots reported to have no problem with water levels. There was no information being received from a neutral source (Shaw, 1999).

One of the three options for the company would be to completely cancel the voyage in October and reimburse their passengers for the payments made. However, due to the...