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Exotic Adventures Inc.

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Exotic Adventure Inc.: Amazon River Voyages
Case Synopsis
Exotic Adventures Inc. (EAI) is offering Amazon River voyages during the low-water season in October. However, early reports from agents in Brazil have warned that water levels are unusually low due to El Niño. They also received conflicting report from agents in Peru stating that the water levels were satisfactory and have been traversing the river just fine. Currently, EAI has a total of 99 passengers booked for these voyages. A decision needs to be made on whether to proceed with the voyages or to cancel them (Shaw, 1999).
State the Assignment Question
Based on the information provided in this case study, should EAI proceed with the booked voyages or cancel it?
Case Analysis In this case study, EAI needs to determine the most advantageous course of action under conditions of uncertainty. EAI has planned a new voyage that they have very little experience and knowledge in because they have only run routes during the high-water season. For safety reasons, the vessel can only operate in waters with adequate depth for the draft. Early in September, EAI began receiving reports that water levels were low due to El Niño. This information was being provided by agents in Brazil, however, reports from agents in Peru were contradictory saying that the water levels are fine and are being used. Currently, there are 99 passengers booked for the trip and it is five days away from departure. The first option is to cancel the voyage and to refund all of the passengers in addition to cancellation penalties imposed by airlines. The second option is to proceed with the planned voyages, but monitor the water levels. If the water levels become to low then stop the trip at Manaus and cancel the rest of the voyage. Passengers would be reimbursed for the remainder of the trip including any change fees. The last option

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