Quote:
Originally Posted by penyet
Notice every time oil price goes from about USD50 to 100+, ferry ticket almost doubles. Oil price comes down, ferry ticket price remains the same. Next time oil price goes up again, ferry ticket almost doubles again. Price is sticky upwards and the increase definitely does NOT make sense (to the passengers, make sense only for the ferry operators). The ferry operators oligopoly is gouging the passengers. Don't know why the authorities not breaking up this collusion by the oligopoly.
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Is all about economics...supply and demand...making sense of business and risks...ROI or return on investment...
During the 2 years Covid-19 lockdown the ferry operators may had lost huge money...continue to service loans and maintenance of vessels...so when Batam reopened the ferry operators need to hedge if they had enough profits to continue...and what price to sustain patrons price ratio...
What many patrons saw were huge crowds during weekends and public holidays...the ferry operators continue to sail even during off-peak with very few patrons...
If patrons were down and demand low during weekends then we may see a price discount but may cut frequency to consolidate number of patrons...
The above is just IMO...