Global Recession and the Escort Industry

[kill_shill]

We'll here we are folks:

1. Global stock markets are down between 25% to 50% in the last year.
2. Housing markets in the US continues to fall, forclosures are increasing, may slowly spread to Canada.
3. Credit is little available unless your an AAA rating.
4. Multi-Billion dollar century++ year old banks are falling like domino's.
5. Job unemployment rate increasing at the speed of light.
6. Long term recession is in place in the US and knocking on Canada's door.
6. Comparing this situation to the possible equivalent of the great depression of the 1930's.

How will if in anyway this current situation affect the agency escort industry???

How will this current situation affect the independent escort industry???

What are your thoughts???

 

[EagerBeaver]

When the unemployment rate goes up, it's almost axiomatic that the number of women choosing to escort as a means to earn an income or an additional income will increase. So supply/inventory will go up. Theoretically that should lead to prices staying the same or being driven down.

As the unemployment rate increases, the disposable income hobbyists have with which to hobby will also be less. Thus demand for escort services should also go down. This should also conspire to either stabilize prices or move them down.

As with other businesses, the escort industry will suffer if all the things KS postulates will actually happen (and I believe we are headed in that direction certainly here in the USA and probably in Canada).

 

[General Gonad]

How will if in anyway this current situation affect the escort industry???

What are your thoughts???

My assessment is that the whores on Wall Street fucked hard working folks on Main Street pretty good.

President Bush might go down in history as the worst president ever, but he was right when he stated Wall Street got drunk.

The hangover will be rough and we can expect a long slump in the U.S. and global economy.

What does this mean for the sex industry? More and more young ladies struggling to make ends meat will migrate towards escorting, erotic massages or stripping.

A lot of clients will lose their jobs or face significant cutbacks in their wages and bonuses.

This just means that there is only one place for rates to go from here: DOWN.

Party on!

GG

 

[eastender]

Value Added

When the unemployment rate goes up, it's almost axiomatic that the number of women choosing to escort as a means to earn an income or an additional income will increase. So supply/inventory will go up. Theoretically that should lead to prices staying the same or being driven down.

As the unemployment rate increases, the disposable income hobbyists have with which to hobby will also be less. Thus demand for escort services should also go down. This should also conspire to either stabilize prices or move them down.

As with other businesses, the escort industry will suffer if all the things KS postulates will actually happen (and I believe we are headed in that direction certainly here in the USA and probably in Canada).

EB,

Valid points. However the value added factor should be considered. Example extras being included , etc. multiple hour rates might go down.

Regardless of the various economic issues there is simply more profit potential in a $200.00 session as opposed to a $150.00 session. Just a question of what gets thrown into the mix since the time factor has marginal value if no other customers are available and the services do not have any inherent value nor additional cost factors.

 

[korbel]

EB,

Valid points. However the value added factor should be considered. Example extras being included , etc. multiple hour rates might go down.

Regardless of the various economic issues there is simply more profit potential in a $200.00 session as opposed to a $150.00 session. Just a question of what gets thrown into the mix since the time factor has marginal value if no other customers are available and the services do not have any inherent value nor additional cost factors.

Hello Eastender,

The current average escort hourly rates are out of touch with economic reality. For Americans, the value of the dollar is way down over the last three-four years, escort rates are way up from $130-150 to $180-200, and now the economic situation is dire and still infused with great concern that things could get much worse. I just listened to a broadcast of 60 Minutes which explained that the looming specter of yet undiscovered severe financial losses is a real possibility. Put it all together and the rates in escort rates are starting to be far out of balance with the economic conditions of the clients. There is a growing mismatch between escort rates and customer resources, that was not corrected when the dollar fell and it's becoming severe now that the pressures of inflation and stagnant wages are being worsened by fears that even one's job may be lost. In case anyone missed it, the last employment report showed the most severe one months job loss in many years. Even if agencies wake up now and lower rates substantially economic conditions may force the marginal hobbyists to practically drop out rather than simply reducing. For myself, I am down to 5 or 6 total projected meetings for the year from a high of 15-19 and with fewer average hours. I'd estimate I have dropped expenses to pay escorts 70-80%. It's certain many others are cutting back to various degrees. I know a couple who have quit hobbying entirely.

Good luck,

Korbel

 

[quest]

wage inflation

More ladies may enter this profession, but that doesn't mean they will work for less. One thing different about wage inflation than commodity inflation is that wages are much stickier on the way up. All the talk of oil prices that led to higher agency prices will not go the other way now that crude has gone from $150 a barrel to less that $100. This is the same way with marginal income tax rates. They go up way easier than they go down. Let's see if any of the major agencies will go to $140 per hour any time soon. I doubt it.

 

[EagerBeaver]

quest,

You are probably right that rates will never go down. But if they stay the same, the ladies will work less, both because of greater supply and less demand for reasons previously discussed. A lady who used to get 5 or 6 bookings on a busy night, might get 2. That is what will likely happen. Note that my prior post indicated that THEORETICALLY prices should be driven down. We all know that will not happen. But if you charge the same (or more) when supply is up and demand is down, working less is what likely will happen.

For me, my income has steadily increased in the past 5 years, but hotel prices have increased, gas prices have increased, and Montreal SP prices have increased. Plus, as previously mentioned, the US dollar has tanked in the last 5 years. On balance, after all these prices increases and the decrease in the value of the US dollar, I may have much less disposable income for hobbying, even though I have a greater net income after taxes than I did 5 years ago.

 

[korbel]

More ladies may enter this profession, but that doesn't mean they will work for less. One thing different about wage inflation than commodity inflation is that wages are much stickier on the way up. All the talk of oil prices that led to higher agency prices will not go the other way now that crude has gone from $150 a barrel to less that $100. This is the same way with marginal income tax rates. They go up way easier than they go down. Let's see if any of the major agencies will go to $140 per hour any time soon. I doubt it.

Hello Quest,

Don't forget that many veterans have gone into significant debt due to their former zeal for the hobby. That is another critical factor that will hurt meeting requests.

Truly,

Korbel

 

[Maxime]

Serait-ce possible (et je ne fais que supposer) que les hausses récentes de prix des escortes à Montréal (Eleganza a atteint le cap des 200$/heure et d'autres vont suivre incessamment c'est sur) soient faites dans le but de se rapprocher des prix des autres grosses villes Nord-Américaines?

Si tel est le cas, les gens de l'industrie doivent quand même se rappeler que le coût de la vie à Montréal est moindre qu'à Toronto ou New-York. Ils ne pourront pas continuer à monter les prix comme ça s'ils veulent garder le même nombre de clients. Les gens d'ailleurs viennet à Montréal oui pour la qualité de nos escortes, mais il faut l'avouer, les bas prix y étaient pour beaucoup.

Pour ma part, je suis retourné dans un salon de massage la semaine dernière, moi qui avait délaissé ce printemps les salons pour les escortes, et je songe de plus en plus à délaisser définitivement les escortes pour les salons. Les tarifs des escortes ne cessant de monter, je ne suis pas certain de vouloir payer 200-250$ pour une heure avec une fille d'agence dans quelque temps si ça continue. Les massages sont plus accessibles (on peut s'en sortir pour 130$ à 150$ pour une heure-50$ l'entrée et 80$-100$ les options).

 

[korbel]

Serait-ce possible (et je ne fais que supposer) que les hausses récentes de prix des escortes à Montréal (Eleganza a atteint le cap des 200$/heure et d'autres vont suivre incessamment c'est sur) soient faites dans le but de se rapprocher des prix des autres grosses villes Nord-Américaines?

Si tel est le cas, les gens de l'industrie doivent quand même se rappeler que le coût de la vie à Montréal est moindre qu'à Toronto ou New-York. Ils ne pourront pas continuer à monter les prix comme ça s'ils veulent garder le même nombre de clients. Les gens d'ailleurs viennet à Montréal oui pour la qualité de nos escortes, mais il faut l'avouer, les bas prix y étaient pour beaucoup.

Pour ma part, je suis retourné dans un salon de massage la semaine dernière, moi qui avait délaissé ce printemps les salons pour les escortes, et je songe de plus en plus à délaisser définitivement les escortes pour les salons. Les tarifs des escortes ne cessant de monter, je ne suis pas certain de vouloir payer 200-250$ pour une heure avec une fille d'agence dans quelque temps si ça continue. Les massages sont plus accessibles (on peut s'en sortir pour 130$ à 150$ pour une heure-50$ l'entrée et 80$-100$ les options).

Bad Freetranslation:

Would be this possible one (and I do nothing but to suppose) that the price recent increases of the escorts to Montreal (Eleganza attained the cape of the 200 $/ hour and of others will follow shortly this is on) are done with the intention of to come close to itself the prices of the big others North American cities?

If such is the case, the industry people have nonetheless to remember that the cost of living to Montreal is least that to Toronto or New York. They will not be able to continue climb the prices as that themselves they want to keep the same number of customers. The people besides viennet to Montreal yes for the quality of our escorts, but it is necessary to acknowledge it, the low prices there were for a lot.

For my party, I returned in a massage parlor last week, me that had abandoned this spring the parlors for the escorts, and I think more and more to abandon definitively the escorts for the parlors. The escort tariffs not stopping climb, I am not certain to want to pay 200-250$ for an hour with an agency girl in some time if that continues. The massages are more accessible (one can itself go out some for 130$ to 150$ for an hour-50$ the entry and 80$-100$ the options).

Hello Maxime,

Please excuse the bad freetranslation, but I wanted to get some idea of what you said.

I did see some ladies in the states for a short time. The reason I go to Montreal is the lower prices. When they get too high I'm not hobbying in Montreal anymore. Agencies should remember that visitors have hotel, food, drink, and travel costs. It's far from the great deal it used to be to go to Montreal. If Montreal agencies want to charge American prices, why leave the U.S. when I can save a lot on all of the other expenses.

Think,

Korbel

 

[Maxime]

Korbel vous avez tout à fait raison! Il va falloir que les gens de l,escorting (escortes, prorios d'agence) cessent de monter les prix, car c'est les bas prix justement qui faisait la popularité de nos escortes. Moi-même je vis à Montréal, et je trouve que les prix commencent à être trop chers pour Montréal (220$ pour un Montréalais comme moi qui se paie une heure à 180$ et bientot 200$ plus une chambre de motel à 40$ pour 4 heures), surtout quand je pense que pour 130-140$, je peux avoir un excellent massage qui me fera relaxer et bien évidemment faire le vide!

 

[mass1965]

More ladies may enter this profession, but that doesn't mean they will work for less. One thing different about wage inflation than commodity inflation is that wages are much stickier on the way up. All the talk of oil prices that led to higher agency prices will not go the other way now that crude has gone from $150 a barrel to less that $100. This is the same way with marginal income tax rates. They go up way easier than they go down. Let's see if any of the major agencies will go to $140 per hour any time soon. I doubt it.

Well they are getting less in the long run. I.E Five or six calls at $140 is more than 2 or 3 calls at $200. Something I see in this business is a lack of basic economic knowledge. It is replaced by greed. So how long can oversupply last with increasing prices?

For myself a few years ago I was going up once or twice a week, then it went down to once or twice a month now it will be no more than 6 times this year. The amount I have to spend to have a good time in US dollars is rapidly reaching a breaking point for me. That is, I would rather spend my money on something else.

 

[quest]

Substitution effect

As the price remains the same or even go up for American hobbyists due to the exchange rates, the alternatives starts looking better. There's plenty of ladies visiting the U.S. now, and even more as the weather turn colder. I think it's fair to say that many of us are making fewer trips up north than a few years ago. I don't think it's because we like the hobby any less, but the chafe is tipping the scale towards staying in the U.S. We're a long way from $130 per hour and 1.50Can/1.00U.S.
Korbel, I hope no one is going into debt for the sake of having some fun in the hobby.
Maybe it will be easier to book Karyna now. Maybe not.

 

[foxwilly]

I doubt it^^^^^^^
She isnt on the Eleganza site anymore

Is she done or has she gone Indy?

 

[Special K]

I don't understand how the US exchange rate is going up in Canada now? The US economy is in the toilet, yet today the USD is getting $1.10 CAD, the best rate since May 2007. What the heck is going on?

 

[General Gonad]

I don't understand how the US exchange rate is going up in Canada now? The US economy is in the toilet, yet today the USD is getting $1.10 CAD, the best rate since May 2007. What the heck is going on?

SK,

It's simple, while the US is in the toilet, the rest of the world is heading there. Also, the Canadian dollar follows oil prices, which have been falling.

GG

 

[Ben Dover]

GG is correct about the loonie following the price of oil... Also, I believe the weakness in the US dollar the last few years has been a signal towards all of the problems in the underlying economic fundamentals of the US economy, exacerbated by "printing money" to cover Iraq and trade deficits. I would have said that we were going to turn the corner toward a more stable valuation for the dollar versus the canadian dollar and more so versus the Euro a few weeks ago. However, now that there is an official "economic crisis" the printing presses are going to be running on overdrive at the US mint, as they now try to throw another TRILLION dollars of cash into the ailing system. So, this probably means that within 6 months, as oil starts to creep back up, that the looney will pass the greenback yet again. Look for CAD/USD parity to resume by early 2009... By then, Canada will probably be feeling the pinch, which may serve to keep our dollar from getting any stronger in the short term. I would predict an average exchange rate for 2009 of $1.05USD = $1CAD by the end of the year.

BD

 

[General Gonad]

Wtf!?!

If the Dow keeps dropping by 500 points every day, in 20 days it will be at zero.

GG

 

[Possum Trot]

I don't understand how the US exchange rate is going up in Canada now? The US economy is in the toilet, yet today the USD is getting $1.10 CAD, the best rate since May 2007. What the heck is going on?

That one has me puzzled as well given that the US has been printing money like crazy.

When Oil was $90 last year the dollar was at par. Guess it's momentum.

 

[johnmbot]

When Oil was $90 last year the dollar was at par. Guess it's momentum.

short covering on the dollar. the world flocks to the greenback during global recessions also. scaling into the stock market during the next 12 months will pay off big time, as the last 3 downturns have proven...

back on topic... Global Recession and the Escort Industry

even though eleganza raised to 200, there are plenty of great 160 options out there, via specials. things must be slowing down out there.