Rotorua-based tourism transport operator Ready2Roll Tours & Transfers has imposed a surcharge as rising fuel prices hit margins and force changes to the way the business operates.
The central North Island company, which operates 18 vehicles and employs 16 staff, says the growing impact of the Middle East conflict on local fuel prices is already being felt across its operation.
Director Carleen Dayha, who runs the business with her husband Alan, says one vehicle that cost $140 to fill a week ago is now costing $260.
“It’s now cheaper to run a petrol car than a diesel vehicle,” Dayha says. “And we’re still paying road user charges.”
She says the business had little choice but to introduce a surcharge, with some regular services still failing to recover costs.
“If we’re doing an airport transfer, we’re still doing it for love!”
Dayha says other operators are also under pressure.
“Other people that we deal with, they are losing on every job they’re doing at the moment because they don’t feel that people will pay an extra $10 surcharge for their trips.”
Ready2Roll is also looking at other ways to manage costs, including consolidating jobs, carefully planning trips and keeping vehicles fuelled at the end of each day to avoid further price rises.
Dayha says flexible working for office staff may also be considered during school holidays to help reduce commuting costs.
“I’m also concerned about our office staff having to drive all the way to our place every day for work,” she says. “But they’ve still got to get the kids to school, so in the school holidays we might say, ‘hey, work from home if you want, save some money.’”
The pressure is also starting to affect customer demand, with some travellers reconsidering plans.
“We’ve had people cancelling. We just had a big group of 86 cancel in August because they were coming from all different places to get here.”
Dayha says the business is already warning customers booking for January next year that a surcharge may still apply if high fuel prices continue.
“We’re telling them now that if it’s still going by next year there will still be a surcharge,” she says.
“That’s what’s keeping me awake – wondering what the hell we’re going to do, just when you think business is booming again.”
Dayha says the Government should consider measures including tax relief, removing road user charges on diesel vehicles and reducing GST on fuel.
“Change the GST on it to make it cheaper for operators like us – because otherwise the cost is going to kill New Zealand businesses.”
