EXPEDITION COSTS: WHERE’S MY MONEY GOING?

ONE OF THE FEW GOOD THINGS TO COME FROM THE COVID-19 PANDEMIC IS THE CHANCE TO SIT DOWN AND REALLY ANALYZE THE WAY TRIPS WORK. AS A BUSINESS RUNNING TRIPS ON THE FRINGE OF AN ESTABLISHED INDUSTRY WE ARE ALWAYS LOOKING AT MORE RELEVANT MODELS FOR WHAT WE DO, AND PART OF THIS PROCESS HAS BEEN COMPARATIVE COST ANALYSIS OF HOW WE SIT WITH OUR PEERS, AND HOW THE COSTS WE HAVE TO PAY SIT IN RELATION TO OTHER COUNTRIES AND INDUSTRIES. SUPERFICIALLY IT ALL LOOKS THE SAME, BUT SOME SIMPLE COMPARISONS MAKE THE DIFFERENCES OBVIOUS AND NOTHING MAKES THIS CLEARER THAN WHEN IT’S PRESENTED IN GRAPHICS.

THE GRAPHS ABOVE SIMPLY PLOT ALL THE COST CATEGORIES WHERE THE MONEY GOES WHEN YOU PAY FOR A TRIP, ARRANGED INTO CATEGORIES FROM A LOGISTICS PERSPECTIVE. THE TRIP MODEL WE HAVE COMPARED TO* IS AN AVERAGE FOR TRIPS OF THE SAME PRICE, DURATION & STYLE – USD45 – 55,000, 55-65 DAYS, MORE REMOTE, MORE INVOLVED, LESS FREQUENTED & LESS GENERIC. THE MODEL IS EITHER WESTERN LEAD OR LEAD BY QUALIFIED LOCALS, ON PEAKS THAT HAVE A MUCH SMALLER NUMBER OF CLIMBERS PAYING INTO THE COMBINED LOGISTICS LIKE PORTAGE & FIXED LINES. BOTH MODELS ARE FOR COMPANIES THAT RUN AN ARRAY OF TRIPS (NOT JUST INDIVIDUAL GUIDES RUNNING A SINGLE PEAK), BOTH MODELS COVER FOOD ONLY TO THE START OF THE CLIMBING (ON-MOUNTAIN FOOD IS NOT INCLUDED), BOTH MODELS ARE FOR INDIVIDUALS ON TEAMS OF SIMILAR SIZES (4 – 6) & BOTH MODELS BEGIN AND END IN THE CITY THEIR ITINERARIES STATE. BECAUSE WE CHOSE NOT TO START SIMULATING APPROXIMATIONS, THERE ARE UNRESOLVABLE DIFFERENCES THOUGH – THE OTHER MODEL INCLUDES SUPPLEMENTAL OXYGEN WHERE WE DON’T & WE INCLUDE TRANSLATORS AS PER THE CHINESE GOVERNMENTS REGULATIONS. WE HAVEN’T INCLUDED MULTI-PEAK TRIPS, ACCELLERATED SCHEDULES OR ABNORMAL ELEMENTS LIKE HELICOPTER ACCESS.

THESE ARE THE RAW COSTS EVERY TRIP TO AN 8000m PEAK HAS TO COVER HOWEVER IT RUNS, ALMOST ALL ELEMENTS SET BY GOVERNMENT & INDUSTRY, THE EXCEPTION BEING ON-MOUNTAIN FOOD. THEY ARE ARRANGED INTO THE SAME BASIC EXPENDITURE CATEGORIES ALL PROVIDERS USE FOR THE SAKE OF ALLOCATING BUDGETS AND WORKING WITH THE SMALLER BUSINESSES/INDIVIDUALS THAT PROVIDE THE NUTS & BOLTS LIKE VEHICLES, HOTELS, PORTAGE etc.

THERE’S VARIOUS WAYS TO LOOK AT THIS AND WE CHOOSE THE BEST PERSPECTIVE AS BEING THE ONE THAT a) GENERATES THE MOST 8000m-STYLE CLIMBING, BECAUSE THAT’S THE THING YOU’VE COME FOR, AND b) THE ONE THAT COSTS THE MOST SUSTAINABLY, BECAUSE WHAT YOU PAY FOR DETERMINES HOW THE PROVIDERS RUN THINGS. PUT ANOTHER WAY – IF YOU’RE GOING TO SPEND A LARGE CHUNK OF A YEARS SALARY, WHAT’S THE BEST WAY TO SPEND IT.

TO EXPAND ON HOW WE SEE WHAT THE GRAPHS ABOVE SHOW WE HAVE BROKEN IT DOWN INTO EACH CATEGORY, ROUGHLY SMALLEST TO LARGEST

TRANSIT

ALL THE FLIGHTS & ROAD TRAVEL FROM CITY OF ENTRY TO THE TRAILHEAD. THIS REPRESENTS THE DOLLAR-TO-MILE EQUATION THAT IS A GOOD INDICATOR OF INFRASTRUCTURE & EFFICIENCY AND THE DRIVERS WAGES THAT REPRESENT INCOME STANDARDS IN THE PLACES WE GO TO.. THE NORTH SIDE OF THE KARAKORAM HAS THE ONLY ACCESS THAT DOESN’T USE FLIGHTS. WE FIND IT INTERESTING THAT FOR A SMALL DIFFERENCE IN COST IN XINJIANG THE DISTANCE IS EITHER THE SAME OR MUCH MORE THAN OTHER PLACES YET REQUIRES NO FLIGHTS. THIS MATTERS BECAUSE ELSEWHERE HAVE LUGGAGE COSTS AND ARE NOTORIOUS FOR RESCHEDULING, WHICH THEN BECOMES EXTRA COSTS YOU MAY NOT BE AWARE OF. IN XINJIANG, TRANSPORT COSTS MEAN GOOD VEHICLES ON WELL MAINTAINED TOLL ROADS WITH RELIABLE SCHEDULES – BOTH MORE EFFICENT & PROBABLY THE MOST WORLD-FRIENDLY FACTOR OF THE ENTIRE TRIP.

ACCOMMODATION & FOOD

THE DIFFERENCE HERE IS SEEN IN HOW MUCH THERE IS OF EACH; IN XINJIANG WE SPENT ABOUT HALF TO A QUARTER AS MANY NIGHTS IN ACCOMMODATION AS ELSEWHERE WHICH MEANS WE CAN ALLOCATE THE REST TO FOOD BOTH IN TOWNS AND OUT TO THE GLACIERS. DESPITE STILL STAYING IN GOOD HOTELS WITH LONG HISTORIES AMONG CLIMBERS (IN SOME CASES BACK TO AROUND 1900), THE BULK OF THIS COST CATEGORY GOING INTO TEAM FOOD IS EASILY WHERE IT IS FELT THE MOST, ALLOWING FOR GOOD QUALITY & GOOD VARIATION A LONG WAY INTO WILDERNESS SIMPLY BECAUSE INTERNATIONAL VARIETY IS AVAILABLE AT A BETTER COST IN CHINA THAN ELSEWHERE.

NOTE HERE; WE ALMOST NEVER EAT IN THE HOTELS WE STAY IN, IN PART SO WE CAN GET OUT AND SEE THE PLACES WE VISIT, BUT ALSO TO DENY ONE OF THE PRIMARY ROUTES OF HEALTH PROBLEMS COMMON TO ALL EXPEDITIONS.

PORTAGE

IF YOU THINK COST OF YOUR TRIP IS GOING INTO THE HANDS OF THE PORTERS OF NEPAL. PAKISTAN OR INDIA THINK AGAIN. THIS IS PERHAPS WHERE THE GREATEST IMPACT ON SUSTAINABLE COSTS ARE MADE BECAUSE IT’S WHERE YOUR DOLLAR MOST MEETS THE LOCALS YOU ARE CLIMBING IN THE BACKYARD’S OF. TO EVERY OTHER 8000m PEAK ALMOST ‘PORTAGE’ MEANS LOW PAID MIGRANT WORKERS CARRYING REGULATED LOADS THROUGH CERTAIN STAGES TO BASECAMP & SOMETIMES HIGHER – THIS IS THE ‘DOLLAR-A-DAY’ ECONOMY. THIS CATEGORY COVERS PERSONAL PORTERS & A SHARE IN THE GENERAL PORTERS A COMPANY EMPLOYS TO GET TEAM EQUIPMENT TO BASECAMP. IT INCLUDES REGULATED AMOUNTS FOR PORTERS EQUIPMENT & MEALS BUT DOESN’T COVER THE OBLIGATORY TIPS THEY RELY ON FOR THEIR ACTUAL LIVING SO ACTUAL COSTS ARE HIGHER.

ON THE CHINESE SIDE OF K2 IT MEANS CAMELS AND THEIR HERDERS WHICH ARE 2-3 TIMES MORE EFFICIENT FOR MOVING LOADS AND WHO ARE PAID GOVERNMENT SET WAGES. NOT ONLY DO THEY RECEIVE A FAIR INCOME FOR THEIR WORK, THIS WORK HELPS TO KEEP THE CULTURE AROUND CAMEL HUSBANDRY & CARAVANNING ALIVE THAT SUPPORTS ENTIRE VILLAGES. LIKE EVERYWHERE IN XINJIANG, THERE IS NO TIPPING.

WE FIND IT CONCERNING THAT IN SOME LOCATIONS AN ENTIRE INDUSTRY IS RUN ON PEOPLE GETTING PAID SUCH A SMALL PERCENTAGE OF THE OVERALL – ABOUT THE SAME A CLIMBER PAYS FOR THE ENTIRE FOOD & LODGING.

PERMITS & FEES

THIS IS ANOTHER TERM FOR ‘THE GOVERNMENT’S SLICE’, ‘THE BUREAUCRACY’ & THE ADMINISTRATION AND CAN BE A VERY OPAQUE PROCESS. THE GRAPHIC SAYS IT ALL – ESPECIALLY WHEN WEIGHED AGAINST THE GREEN SLICE THAT SHOWS HOW MUCH THE PORTERS ARE GETTING.

AS SYSTEM-HEAVY AS CHINA AUTHORITIES CAN BE THEY ARE FAR BEHIND OTHER PLACES WHEN IT COMES TO TAKING YOUR DOLLAR TO CLIMB HIGH MOUNTAINS – AND WHAT YOU GET FOR THAT DOLLAR IS USUALLY A LOT MORE CONSIDERING JUST HOW BESPOKE A TRIP TO K2 AND THE NORTH SIDE OF THE KARAKORUM IS. ALL TRIPS INCLUDE PEAK ROYALTIES & RESTRICTED AREA ACCESS, PLUS FEES FOR THINGS LIKE ENVIRONMENT, SANITATION, INFRASTRUCTURE & FACILITY MAINTENANCE – THE REST GOES ON….WELL, WHO’S TO SAY.

ON-MOUNTAIN EQUIPMENT

THIS IS THE MOUNTAIN-SPECIFIC STUFF BY WHICH YOU MAKE YOUR WAY UP THE SLOPES OF THE PEAK. SUPPLEMENTARY OXYGEN AND THE OBLIGATROY SYSTEM FOR MANAGING IT IS A PRIMARY COST ON TRIPS THAT USE IT, AND A BIG CHUNK ALSO GOES ON CONTRIBUTING TO ALL THE TENTS, ROPES, FUEL & FACILITIES YOU WILL USE. THE ACTUAL GEAR USED IS EFFECTIVELY THE SAME ON BOTH TRIPS, THE DIFFERENCE IS THAT ON OTHER PEAKS YOU PAY CONTRIBUTIONS THAT COVER BOTH THE HARDWARE AND THE COST FOR RIGGING IT ALL, WHILST ON THE CHINESE SIDE OF K2 TEAMS DO THAT THEMSELVES (NOTE THAT UNTIL RELATIVELY RECENTLY THIS WAS HOW BROAD PEAK & PAKSITAN SIDE OF K2 WAS CLIMBED TOO).

THE ISSUE HERE IS HOW LITTLE THE PRICE REPRESENTS THE HUMAN COST OF ACTUALLY TAKING ON THE ROLE. SUBTRACTING THE OXYGEN & HARDWARE COSTS AND COMBINING WITH THE STAFF (SEE BELOW) & PORTAGE COSTS SHOWS THAT SIGNIFICANTLY LESS THAN 10% IS BEING PAID FOR WHAT IS NOTORIOUSLY DIFFICULT, SPECIALIZED & RISKY WORK.

STAFF

FOR FEEDING THE RAT EXPEDITIONS THIS IS THE BIGGEST CHUNK BY FAR AND SO IT SHOULD BE, LIKE ANY GOOD BUSINESS MODEL. THIS INCLUDES THE WAGES AND COSTS FOR THE LIAISONS, THE TRIP LEADERS, THE TRANSLATORS & THE KITCHEN CREW – THE PEOPLE WHO SPEND THE SEASON OUT THERE WITH YOU, WEEKS EITHER SIDE PREPARING & UNPACKING TRIPS AND WHO TURN ALL THE DIALS AND TIGHTEN ALL THE BOLTS TO MAKE LITERALLY EVERYTHING HAPPEN. WE KEEP SMALL TEAMS SO WE CAN KEEP WAGES HIGH BECAUSE EVERYBODY IS AN EXPERT IN THEIR FIELD. THAT THE TEAM RECEIVES WELL OVER DOUBLE WHAT THE ADMIN COSTS WE FEEL IS A HEALTHY RATIO (AND WE ARE WORKING TO MAKE IT EVEN BETTER).

THAT RATIO ELSEWHERE WE HAVE RESERVATIONS ABOUT BECAUSE IT SHOWS AN IMMENSELY TOP-HEAVY SYSTEM THAT HAS LITTLE TO SHOW FOR IMPROVING EFFICIENCY, CHOOSING TO RUN ON LOW WAGES & HIGH BUREAUCRACY INSTEAD.

OVERALL

WE THINK IT’S IMPORTANT TO VIEW THE BALANCE OF THESE COSTS OUT WHEN CHOOSING A TRIP BECAUSE IT SHOWS HOW CREDIBLE AN INDUSTRY IS FROM A PERSPECTIVE OF FAIRNESS, SUSTAINABILITY & RESOURCES. THE TAKE AWAY HERE IS THAT IN MOST PLACES A LOT OF THE MONEY YOU PAY IS GOING TO PARTS OF THE PROCESS THAT DON’T DO THE CLIMBING WHILST THE PARTS THAT DO CONTRIBUTE TO THE CLIMBING ARE GETTING DISPORORTIONATELY LESS AT THEIR EXPENSE. WE UNDERSTAND ABOUT DIFFERENT ECONOMIES MARKET DEMAND BUT STILL WE THINK IT’S A PROBLEM THAT IN SOME PLACES OVER 1/3 OF YOUR TRIP’S COST GOES TO BUREAUCRATS STAMPING PAPERWORK WHILST 1/10 GOES TO THE PEOPLE THAT CARRY YOUR GEAR.

THINGS REALLY FALL INTO PLACE WHEN VIEWED NEXT TO OUR GRAPHS SHOWING THE WAY OUR EXPEDITION TIMELINES COMPARE TO COMPARABLE TRIPS ELSEWHERE BECAUSE IN MOST CASES THESE OTHER SYSTEMS ARE ALSO NOT GENERATING A PROPORTIONATELY HIGHER AMOUNT OF ON-MOUNTAIN TIME. FOR ALL THE MONEY GOING INTO THE DIFFERENT PARTS OF RUNNING A HIGH ALTITUDE TRIP, THINGS ARE RUN VERY COST INEFFICIENTLY.

IT SURPRISES MANY PEOPLE TO HEAR JUST HOW MORE FAIRLY & SUSTAINABLY 8000m TRIPS TO THE NORTH SIDE OF K2 IN CHINA COST AT, USUALLY DOWN TO PRECONCPTIONS OF HOW CHINESE AUTHORITIES DO THINGS. NOT ONLY IS THE WILDERNESS ON THE NORTH SIDE OF K2 CLEANER & LESS CORRUPTED – SO IS THE ECONOMICS OF IT, WHERE A REGULATED SYSTEM PAYS REAL WAGES, SUSTAINS MARGINAL CULTURES & WORKS OFF EFFICIENT LOGISTICS. WE TAKE PRIDE IN BEING ABLE TO PROVIDE COMPETITIVELY PRICED TRIPS TO TRUE WILDERNESS THAT HELP SUSTAIN THE PEOPLE, CULTURES & THE GEOGRAPHY WHERE IT HAPPENS.

*THIS MODEL REPRESENTS NO SPECIFIC COMPANY IN A SPECIFIC COUNTRY AND IS NOT INTENDED AS A COMMENT ON ANY ONE COMPANY’S WAYS OF OPERATING, BUT IT IS A COMMENT ON HOW COMBINED INDUSTRIES WORK.