Tropicana Fishing Lodge

How does a fishing lodge fit into our operations as a major producer of bananas? This
was the question that faced the Costa Rican division of an international banana company.

Location and Description of Tropicana

Tropicana was a fishing lodge located on the Caribbean coast of Costa Rica. It was
situated on the banks of the River Pastura. It could be reached by light plane because there was a
paved landing strip on the nearby properties of Del Monte. It could also be reached by means of
a mountain highway from San José. This road was 98 percent paved and required approximately
three to three-and-a-half hours of travel. Fog could be a problem on this road and could impede
travel. A small dock had been built to accommodate loading and unloading the boats. A series of
steps, including rather steep steel ones with a rope handhold, led to the grassy bank above.

Immediately behind the lodge was a banana plantation. A cement sidewalk separated the
plantation from the lodge and homes. The grounds surrounding the lodge were well kept and
quite attractive. The beauty was not dramatic or awe inspiring but was instead peaceful and
relaxing. Jungle growth could be seen on the opposite bank of the river, and monkeys could be
heard howling in the forest. The lodge was built in the fashion of a jungle building—it was not
constructed on the ground but on wooden stilts. This allowed ventilation and helped prevent
rotting. It also helped discourage insects and small animals from entering. The lodge was small
but would accommodate 22 guests. Guest rooms were contained in a separate cabin that formed
an “L” to the main lodge. The rooms were clean and well maintained. Each room had a bathroom
with a shower and other bathroom fixtures. Beds were of the single-bed or bunk-bed style. There
was no air conditioning in the rooms, but the evening breeze was pleasant. A light blanket was
sometimes necessary.

Recreational Facilities
Fishing for tarpon and snook was the primary entertainment offered by Tropicana. This
occurred in the intercoastal canal, which runs from Limón to the Nicaraguan border. It was also
done in lagoons and the mouths of rivers. The river in front of Tropicana offered little
opportunity for fishing; it was necessary to go downstream 30 to 40 minutes by boat to reach
fishing sites.
Three principal areas were noted for tarpon and snook. One was in a lagoon 40 minutes
downstream and to the south of Tropicana. Another was downstream and north of Tropicana
near the village of Parismina. This was 45 minutes to an hour away and near a competitor’s
lodge. The third was much farther north, in the area of Tortuguero. This was roughly one-and-a-
half hours away. The scenery in the intercoastal canal and along the jungle rivers was beautiful.
One could see a variety of bird life, including many rare species. Monkeys could be heard and
sometimes seen in the trees. Both Walt Disney and Jacques Cousteau had made movies featuring
the region. Crocodiles were difficult to see. Deer, marguary, jaguar, and many small animals also
lived there but were rarely seen. Botanists and other nature lovers could find hours of enjoyment
in the variety of trees, flowers, orchids, and other plant life, including a perfume tree that filled
the air with a beautiful aroma in the evening.

There was little or no opportunity to exploit commercial hunting in the area.

 The area was not known for ducks or geese, and the deer were quite small. In addition,
much of the area was gradually being turned into national parks, and wildlife would be protected.
Swimming or water skiing in the lagoons and intercoastal waterway would be dangerous due to
submerged logs. There was also the possibility of sharks. The Caribbean coast represented miles
of uninhabited dark sandy beach. It had palm trees and was attractive but was not developed.
Moreover, it was very difficult to reach the beach from Tropicana. The surf at the mouth of the
river was too strong to permit entry into the sea with the flat-bottom boats and motors. Thus, the
boats could not be used for ocean fishing.

Any large-scale building projects such as a lodge, modern tennis courts, or a golf course
would require land. This would almost certainly have to come from land that was profitably
planted in bananas.

Fishing Season
Although Tropicana remained open all year, guests were advised that fishing was im-
possible from November 1 to January 15. This was the time of year when the heaviest rains
occurred. The longest periods of dry weather were from the latter part of January through most
of May and then again from August through October. The best time for snook fishing occurred in
late August until November 1. A schedule of the best fishing months versus the traditional
months of high occupancy at Tropicana follows. This schedule presented certain difficulties in
promoting Tropicana as a year-round lodge. During the months of May through August,
Tropicana had to compete with vacation areas in the United States. September and October
represented excellent months for fishing but relatively weak ones for occupancy due to the fact
that school was open in the United States. In addition, these were fall months in the United
States, with nice weather conditions there. November and December were winter months in the
United States and could be promoted as vacation months, but fishing was impossible during that
time. Increased promotion would be necessary to reduce the dependency on three to five months
of natural draw. November, December, and half of January would remain poor months due to
weather and fishing conditions. Thus, Tropicana would face, at a maximum, nine favorable
months.

Month Fishing Five Highest Months of Occupancy at

Conditions Tropicana (Approximately 80 Percent Of Total
Occupancy)
January Good
February Excellent 1
March Fair 2
April Fair 3
May Excellent
June Excellent
July Good
August Good
September Excellent 4
October Excellent 5
November Poor
December Poor
Value of Lodge
It was difficult to estimate the market value of the lodge, but Eric estimated that it would
probably be valued somewhere between $450,000 and $750,000 (United States). A difficulty in
appraising the lodge was that its success was tied directly to the banana company, which owned
and operated the source of electrical power for the lodge. A buyer might find this factor of
concern. However, a generator and an independent well would not be difficult to acquire.

Competitors
• Azul Grande. The fishing lodge of Azul Grande was the primary competitor and could
accommodate 24 guests. This lodge was located in the fishing village of Parismina and could be
reached only by private airplane or boat. It was not as attractive as Tropicana. It was surrounded
by poor fishing shacks and older in appearance than Tropicana. However, it was clean and well
maintained. A monkey in the front yard greeted all visitors. Clients for this lodge were almost
exclusively from the United States. The owners advertised in select outdoor magazines. The
owner also appeared on TV talk shows when he was in the United States. Bookings in the United
States were handled through an exclusive agent in Chicago who worked on a commission basis.

• Isla Del Sol. This fishing lodge was located at the mouth of the San Juan River, which forms a
border for Nicaragua and Costa Rica. The manager/owner was a Mr. Laurie from Detroit. This
lodge was experiencing difficulty in breaking even and was open six months or less each year.

• Casa Fantastica. This fishing lodge was also located at the mouth of the San Juan River and
open six months or less each year. There was no information concerning the success of this
lodge, but it was apparent that the management was fairly aggressive, as witnessed by
advertisements from the outdoor magazine The Salt Water Sportsman.

Rates
Rates for competitive fishing lodges on the Caribbean coast ranged from $2,500 to
$4,000 per person per week. Tropicana and other lodges did not encourage guests to come for
periods of less than five days. This was due to the cost of transportation. It also provided a guest
with more opportunities to catch fish. Guests who stayed for shorter periods of time sometimes
arrived when fishing was poor and returned to spread stories of poor fishing. All lodges provided
competitive services, although Tropicana provided even more individualized attention to guests
and was willing to spend more time and money to transport guests to good fishing sites.

Promotion for Tropicana was handled primarily through ads in the English-print
newspapers in San José. Word-of-mouth advertising seemed to be the primary means by which
people heard of the lodge. A review of the guest book indicated that the majority of guests had
been from the United States; the second largest group were Costa Ricans.

QUESTIONS FOR DISCUSSION

1. What distribution channels would you use for the Tropicana Fishing Lodge?
2. How are distribution and segmentation related?