Essay on Exotic Adventures Inc

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Case Synopsis
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State the Assignment Question
The question that plagued Exotic Adventures Inc is whether to cancel a South American tour on October 8. What are the ramifications of cancelling the trip prior to October 8, cancelling the trip after Manaus, turning around before Iquitos, or completing the upstream tour?
Case Analysis
Exotic Adventures Inc. (EAI) is a travel company that operates expedition-style voyages mainly to Polar Regions. EAI also offered voyages between season to the islands of the South Pacific and the Atlantic also
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Charging a total premium of $4,000/US, this included a flight, and lodging. These numbers were just above the break-even point for the Inland Explorer (Shaw & Hulland, 1999).
A win short lived; by early September, EAI started receiving messages from their agents in Brazil that the river’s water level had dissipated to extremely low levels. Blamed on El Nino the Brazilian pilots would not exceed the halfway point on the excursion, or pass Manaus. The reasoning was due to the fact that the waterway between Manaus and Iquitos had been unstable, fluctuating between 12 and 14-feet deep (Shaw & Hulland, 1999). With a draft of 14-feet, this proved to be unsafe for the Inland Explorer to navigate the channel. In efforts to see their local economies grow Peru, stated that their pilots had been navigating the channel also with ships with having 14-foot drafts and this posed no problems for EAI to continue with their planned voyage. There was no unbiased information to sway EAI’s decision either way. The Brazilian government wanted the voyage to continue because of the money that tourist would spend at various ports, coincidentally the Peruvian government felt the same way. On October 8, days before the passengers would depart for Belem EAI faced with the decision to cancel the entire trip and refund all monies paid by tourist, or continue with trip as planned (Shaw & Hulland, 1999).
EAI had just three options,
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