BajaNomad - competition needed

competition needed

capn.sharky - 7-11-2010 at 07:50 AM

In order for Loreto to survive the downturn in business and continue as a tourist destination, it will need to get another airline to compete with Horizon/Alaska. While the service on Horizon seems okay, the prices for tickets are driving the business out of town. How come I can fly to DF or San Blas for less than a ticket to and from Loreto from Los Angeles. Has the service started in San Diego yet with Mexicana Airlines? Fonatur is spending a fortune trying to boost sales in Loreto, why don't they wise up and get another service in and out. :fire:

wilderone - 7-11-2010 at 09:34 AM

DF is one of the largest cities in the world. The same argument could be said for LaPaz or San Felipe. If it made sense to the airlines, then there would be service. Fonatur is not going to bail out small time retailers in small towns. The only reason Fontatur is making any sort of effort with regard to Loreto is because they're STILL holding the bag at Loreto Bay.

Bajahowodd - 7-11-2010 at 04:16 PM

It's supply and demand. Just think about the fact that discount airline Volaris is not providing service to Loreto. If there was a demand, there would be seats and flights. It's not much different than many small cities throughout the US where tickets for much fewer miles traveled are more expensive than coast to coast flights. The light at the end of the tunnel, perhaps temporarily, may be the project by Villa Group at Ensenada Blanca. They will have to offer to subsidized airlines if they have any hope of selling there hundreds of timeshare units.

flyfishinPam - 7-11-2010 at 06:35 PM

It just looks too much like somebody or some persons are trying their best to make Loreto fail as a destination. I've noticed this for many years but lately it is much worse. Practically no air service, broken promises (no SAN-LTO flight coming), poorly managed marketing programs, unpaid media bills, etc. somebody or some persons are asleep at the wheel (or maybe not) and it almost seems as though these forces want us to fail or fall apart as a community so that we will just go away and leave our territory behind for them to pick up for pennies on the dollar then they'll be able to make Loreto into their own private club ...

anyway Loretanos are survivors and throughout Loreto's history the people here have been through much worse than this and they (we) will survive this too. We will continue working hard and helping visitors experience what a special place this is. We just need to be more creative now, when times are tough we gotta try new things to keep going. Established businesses and those who have declined taking on credit are in the best position to survive at this point in time.

A bunch of small businesses in town got together and formed an association we are marketing Loreto as a nature loving and cultural destination that is unique and that has natural attractions that are world class. Most of us were former members of the Loreto Hotel Ass but were not impressed by their performance in performing their job to promote this destination. So we're taking it into our own hands now.

http://www.loretoadventurenetwork.com

If we wait until the government comes in to "save us" then the villas group may be our light at the end of the tunnel...from hell!

pam

desertcpl - 7-11-2010 at 07:09 PM

that is really great that your doing something about all of this.

but I might ad something,, I was trying to quote another post here but didnt know how.

one thing that they was saying and it was there first time in Baja , was they really like the town , but the prices where out of site in the restaurants, I have personally seen this in baja before, when business is off they want to raise there prices

flyfishinPam - 7-12-2010 at 02:16 PM

i agree with you to a point. when you start a business there's no instruction manual to follow. one of the most popular small buisnesses people start up here are restaurants because of the relatively low start up costs and they are perceived to be easy to run. but someone without experience will make dumb moves in order to pay their bills and make some money, raising prices out of orbit is one of them. Loreto's overinflated property values have contributed to this, think high rents throughout town.

within the spirit of the post asking for competition for air service, Loreto certainly has much competition in the restaurant department. some know how to set their prices to bring people in, others don't seem to. it has become a literal survival of the fittest because there are not enough consumers to go around, unless you're a hot dog stand or a taco palapa or a cocina economico.

compared to Cabo prices here are about 1/3 on many common menu items like tacos, beers, and standard fare. to escape the tourist prices go further out of the center of town to places that don't cater to tourists, same here in Loreto. There are some killer taco and burrito stands that opened up along the west side of the highway in Miramar, very cheap prices too.

mtgoat666 - 7-12-2010 at 02:37 PM

Quote:

Originally posted by flyfishinPam
It just looks too much like somebody or some persons are trying their best to make Loreto fail as a destination. I've noticed this for many years but lately it is much worse. Practically no air service, broken promises (no SAN-LTO flight coming),...

I don't think anybody is trying to make Loreto fail. Perhaps it is that there is little demand for air service on TJ-Loreto, SAN-Loreto and LAX-Loreto routes...
I understand DF-Loreto demand (DF is center of the universe!).
This is a simple problem of "if you build it, they will come." Build a desire in people to go to Loreto and market will supply the demand :bounce:

[Edited on 7-12-2010 by mtgoat666]

rhintransit - 7-12-2010 at 02:37 PM

just in from the Loreto_Community Yahoo Group: on July 16th AereoCafafia will begin round trip service twice a week (Fridays and Sundays) between La Paz and Loreto , one way fare is 990 pesos. while not exactly a bargain, and definitely a small carrier, it would now be an option to fly into La Paz then to Loreto.
re restaurant, hotel and grocery prices...while significantly lower than in Cabo as Pam says, the places on the beaten paths catering to tourists are definitely more expensive than La Paz and even other small cities elsewhere in Baja. good values can be found, but the average tourist may not easily find them. on the other hand, food choice/selection and preparation/presentation are getting better and better...yum.

Bajahowodd - 7-12-2010 at 03:38 PM

Kinda interesting that I've read posts on this forum from people in the Loreto area that expressed rear that their wonderful piece of paradise would ultimately become another Cabo. On the flip side, people complain about the dearth of airline service. Don't think you can have it both ways. While I certainly can empathize with business owners who are having problems making ends meet, I have always found the town to be almost magical. I'd hate to see it explode into Cabo, Jr.

I remember many years ago when McDonald's opened a location in Cabo. It made me sick. Yet, many of the locals were overjoyed with the idea that they had "arrived"!

So, Loreto has no Walmart, Costco, Sorianna, CCC, Etc. Think of the price you pay for progress.

Lastly, LAP- LTO flights might ease some problems, but it's certainly not going to increase tourism.

Frankly, I'm totally ambivalent. I love Loreto as it is. But I also know that there are many fine folks there who would only benefit from growth.

capn.sharky - 7-12-2010 at 04:15 PM

Loreto may be a "small town" but that is the reason why so many of us love it. I have been going there for forty years now and the people of Loreto are lovely people. When it was even smaller, we have had more than one airline serving Loreto. Our new Airport is beautiful and as modern as any. It is safe in Loreto and for those of us that live there it is paradise. You can have Cabo, DF, La Paz and etc. But I thank you anyway for your thoughts.

Bajahowodd - 7-12-2010 at 04:20 PM

One thing I forgot to comment on in my most recent post- prices.

I have to believe that the downturn in tourism may have affected prices. However, several years ago, Carrie Duncan (yes, that Carrie Duncan) recommended Hacienda Suites to us. Taking up her recommendation, we stayed there several years ago and were hit with a charge of $102usd for a night in a standard room. Granted, that was at a time when there were many more seats being flown in by several airlines. But, despite the fact that Hacienda Suites is a top-notch facility, given its distance from the malecon, I was stunned that they could get that sort of price. But then, Carrie also mentioned that while she stayed there, she always went to Augies for dinner. Go figure. Domingo's is right next door to Hacienda Suites.

flyfishinPam - 7-12-2010 at 06:17 PM

Quote:

Originally posted by mtgoat666

Quote:

[Edited on 7-12-2010 by mtgoat666]

Interesting note. I had a client come and go here from Seattle. he flew on standby as he's friends with an Alaska pilot. After getting from Seattle to LAX he found that there were almost 40 people on standby for the flight to Loreto. He finally made it down here two days later.

So if there's that many people on standby how can you tell me there's not enough demand? Also on my making Loreto fail comment this comes from 15 years of personal observation and living here. There's just something not right here and its been this way for a long time. And I don't need lessons in supply and demand thanks. Fact is that people aren't willing to lay out almost $1,000 R/T LAX-LTO then be dinged for every freaking bag they check in addition to having to go through all the security hassles. Lack of demand for travel to this destination has nothing to do with this. And despite all the set-ups Loreto has survived we just keep pulling through them and winning people over.

I have to say with the recession and the news that's keeping the masses away, its only the really cool people who are still coming down. Like Skeet says no crybabies.

capn.sharky - 7-14-2010 at 09:32 AM

"Fact is that people aren't willing to lay out almost $1,000 R/T LAX-LTO then be dinged for every freaking bag they check in addition to having to go through all the security hassles. Lack of demand for travel to this destination has nothing to do with this. And despite all the set-ups Loreto has survived we just keep pulling through them and winning people over."
Pam---You go girl. Yes you are 100% correct. For me, after 40 years of watching Loreto get screwed over by Fonatur, I couldn't agree more with what you wrote. No one that has been to Loreto would ever want to go anywhere else. Its beauty and its people are second to none. I say this with mixed feelings as we have too many full time Americans there now to suit me. On the other hand, the business people are suffering as all Mexican tourist towns are due to all the bad press on the drug lords and the lousy economy.

Marc - 7-14-2010 at 10:59 PM

Quote:

Originally posted by mtgoat666

Quote:

[Edited on 7-12-2010 by mtgoat666]

In 1990 or '91?? I took a walk through the Presidente Hotel south of the airport. The grounds, pools, dive shop, beach area were wonderful and not a guest in sight. I was told rumor had it that politicians were behind it, somehow manipulating airline route access so that the venture would fail.