Price Bylaws ERIC country. PROBLEM The current division in two - - PowerPoint PPT Presentation

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Price Bylaws ERIC country. PROBLEM The current division in two - - PowerPoint PPT Presentation

OBJECTIVE Change of the current Price Bylaws that would benefit both Host Organising Committees (HOC) and Rotaractors by elaborating an exhaustive study taking into account subjective and objective variables depending on each Price Bylaws


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SLIDE 1

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Price Bylaws

PROPOSAL

OBJECTIVE

Change of the current Price Bylaws that would benefit both Host Organising Committees (HOC) and Rotaractors by elaborating an exhaustive study taking into account subjective and objective variables depending on each ERIC country. The current division in two tiers makes impossible to some countries to host an international event, as well as some Rotaractors find prices unsuitable due to flight prices or the event itself. Moreover, due to these budgetary and tier restrictions could happen that no country would be able to host an event in the near future.

PROBLEM

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SLIDE 2

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

1 2 3

Development of 
 the proposal itself

PLANNING

Recap and conclusion

CONCLUSION

Proposal from 
 survey results

SURVEY

Document Content

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SLIDE 3

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

CR Survey

Taken on August 24th, 2017

Question 1 Question 2 Question 3 Question 4

Do you consider the proposal of elimination of tiers with price limitation appropriate to foster competition? Would you consider the division

  • f conference/accommodation

sustainable? For which type? Do you agree with the current Price Bylaws? Would you consider the creation

  • f a new tier (Tier 3) necessary?

31 ANSWERS

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SLIDE 4

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

NO YES

Question 1

Do you agree with the current Price Bylaws?

10 17

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SLIDE 5

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

NO YES

13 16

Question 2

Would you consider the creation

  • f a new tier (Tier 3) necessary?
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SLIDE 6

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

NO YES

15 14

Question 3

Do you consider the proposal of elimination of tiers with price limitation appropriate to foster competition?

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SLIDE 7

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

NO YES

15 14

Question 4

Would you consider the division

  • f conference/accommodation

sustainable? For which type?

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SLIDE 8

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Proposal

economic model for bylaws

Subjective Variables - Rotaractor sample

  • Percentage Rotaractor´s attendance to events
  • Total number of Rotaractors on each ERIC country
  • Total number of Districts on each ERIC country
  • REM/EuCo maximum prices willing to pay by Rotaractors on each ERIC Country
  • Rotary involvement

Objective Variables

All objective variables were based on each country, except for the hotel category where the capitals were taken into consideration, therefore prices could be cheaper or higher than in

  • ther cities like Zagreb, Moscow or Madrid among others.

Malta and San Marino were not included in the model due to the lack of data (living costs and local purchasing power indexes) but were included in some part of the analysis. Also, Andorra, Monaco and Estonia were not included at all because of its low repercussion in ERIC. The resulted price limitation after the survey was 130€-500€/package.

MODEL

In order to develop the proposal, an econometric model combining subjective and objective variables needed to be carried out to satisfy members’ expectations

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SLIDE 9

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Highlights

Not necessarily countries with low/high Local Purchasing Power have the lowest/highest living costs

PP vs. Living Costs

32,5 65 97,5 130 Albania Belarus Croatia Finland Germany Italy Moldova Portugal Slovakia Switzerland UK Living Costs Local Purchasing Power

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SLIDE 10

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Salaries vs. Living Costs

€0,00 €1.250,00 €2.500,00 €3.750,00 €5.000,00 32,5 65 97,5 130 Albania Belarus Croatia Finland Germany Italy Moldova Portugal Slovakia Switzerland UK Average monthly salary Living Costs

Highlights

Not necessarily countries with low/high salaries have low/high living costs.

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SLIDE 11

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Highlights

Not necessarily countries with low/high GDP have the lowest/highest Salaries.

GDP vs. Salary

€ '- € 1.250,00 € 2.500,00 € 3.750,00 € 5.000,00 € '- € 1.250.000,00 € 2.500.000,00 € 3.750.000,00 € 5.000.000,00 Albania Belarus Croatia Finland Germany Italy Moldova Portugal Slovakia Switzerland UK Average monthly salary GDP per capita in PPP, 2016

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SLIDE 12

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Highlights

Not necessarily Rotaractors living in cheaper countries with lower salaries stated to pay the cheapest prices and vice versa

Salary vs. Rotaractors max. price

€ '- € 125,00 € 250,00 € 375,00 € 500,00 €0,00 €1.250,00 €2.500,00 €3.750,00 €5.000,00 Albania Bosnia Cyprus Finland Germany Ireland Lithuania Montenegro Portugal San Marino Slovenia Switzerland Ukraine

Max price Average monthly salary

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SLIDE 13

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Highlights

Not necessarily wealthier countries have less difference in salaries and vice versa.

Difference in salaries

€ '- € 750,00 € 1.500,00 € 2.250,00 € 3.000,00 Albania Azerbaijan Bosnia Cyprus Finland Georgia Hungary Latvia Malta Norway Romania Serbia Spain Netherlands UK

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SLIDE 14

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Highlights

In some countries the minimum salary is lower than the average package price per person stated by Rotaractors (242€)

Countries under average Rotaract Price

€0,00 €1.000,00 €2.000,00 €3.000,00 €4.000,00 Albania Belarus Croatia Finland Germany Italy Moldova Portugal Slovakia Switzerland UK

Min Salary in EUROS per Month Average

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SLIDE 15

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Highlights

Not all countries with lower/higher double room prices have low/high living costs.

Living Costs vs. Average Hotel price per night

€ '- € 40,00 € 80,00 € 120,00 € 160,00 0,00 32,50 65,00 97,50 130,00 Albania Azerbaijan Bosnia Cyprus Finland Georgia Hungary Latvia Moldova Poland Russia Slovenia Switzerland Ukraine

Living Costs Average Hotels

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SLIDE 16

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Results

Comparison subjective/objective variables

HOC Team Objective Variables Subjective Variables

After evaluating that the participation of Rotaractors on different events is subjective, we came into the conclusion that is more a matter of the HOC Team to make more appealing its event. Most objectives variables are correlated between each other - the reason why there are not perfect correlations it is because of the discrepancies between the different countries It is ABSOLUTELY SUBJECTIVE the reason why Rotaractors choose to attend an event, even including the total number of Rotaractors on each country

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SLIDE 17

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Conclusion

With the elimination of tiers and price delimitation there is free competition between all ERIC countries. They are competing under the same circumstances, therefore equality for everyone. Price will not be an issue anymore and it is more a matter of quality and devotion to decide where the events should be held. Also, by providing an expected budget CRs could evaluate in depth each of the candidatures. Finally, the probability of not having a candidate to host an event is extremely reduced. Ideally this proposal should be tested starting on the next fiscal year, i.e.: 1st July 2018, but because the candidate for REM Autumn 2018 has already been chosen and the prices already established, as well as the conditions for the candidates for REM Winter 2019. Then it should start being effective from the next candidature for EuCo 2019 onwards, which means that in the voting for the next candidate at EuCo 2018 there will no longer be any tier distribution and price limitation.

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SLIDE 18

Rotaract Europe - ERIC

Itziar Uribarri, CR of Denmark | Copenhagen 03/01/2017

Price Bylaws

PROPOSAL

Amendements in collaboration with Model Developed by:

Itziar Uribarri CR Denmark Justin Hadjilambris E.R.I.C President Lucky Dalena E.R.I.C Vice President Vedran Jakopović CR Croatia François Oger CR France Constantinos Anayiotos CR Cyprus Tanja Zivanovic CR Serbia