Foreign Perspectives

Archive for October, 2008

Post offices in many countries around the world offer a range of banking services these days, but are they really up to it?

Typically a small post office will have one counter to do everything. That works well when “everything” is mainly posting letters and parcels which take a few minutes to process.

Add on banking services and you’re into a whole different league in terms of the time that it takes to process a transaction though. For one thing, opening an account takes ages and delays everything. OK, it’s not something that happens every day but it happens fairly frequently: I spent getting on for an hour in a queue in a post office today which ended up snaking right round the available space and out the door because two people were opening accounts.

The problem really stems from the practice of governments to consider post offices in country villages to be a “good thing” and therefore worthy of support. That in turn leads to them being considered a job creation scheme so, of course, you wouldn’t want to add too much automation into them as then you wouldn’t create so many jobs. What automation that there is often is counter-productive: posting my three letters took nearly five minutes because the stamps had to be scanned in and destinations entered into the computer.

So, no, I don’t know that it’s really true to say that many post offices could be considered banks.

I’ve been looking at our booking stats covering the last year and wondering if we can go about running the place somewhat better in the coming year.

Thanks to the recession rolling around the world at the moment particular categories of guest don’t turn up much anymore. In particular, those looking for cheapo short breaks are obviously fairly thin on the ground in that the euro is pretty high compared to just about all the other currencies and also the flight prices from the various discount airlines are way up too (around five times the price in June 2008 compared to June 2007). That combination clearly has an effect on the booking patterns.

Now, on the whole we figure that whilst we’re here, we may as well be open. Fairly logical really. However, in that outside the main April to September season this makes for very few guests checking in we’ve been thinking that it would make more sense for us to be elsewhere over that time and we’re looking into the logistics of such a thing at the moment.

We ended up choosing Venice as our Halloween trip basically because the flights to it from our selection of local airports were among the cheapest to anywhere and it seemed to offer us the most of those cheapo destinations in terms of attractions and general interest.

I was surprised to find that there’s quite a selection of fairly reasonably priced appartment accommodation right in the city itself. Last time I looked everything was at crazy prices as you would expect for such a popular and compact city. Getting to the accommodation sounds like something of a trek though. We’re flying Ryanair so “Venice airport” is actually Treviso which is about 30km outside the city (vs 10km for Marco Polo, the main Venecian airport) and involves a coach trip (EUR 9 each, each way) as Treviso isn’t well connected to Venice. Still, once we get off the coach we’re pretty much in Venice and it’s quite a nice boat trip round to the dock nearest our accommodation.

Water transport in Venice is quite expensive although to be fair if you’re based right in the city as we will be you don’t really need to use it that much. Sure, we’ll go on the round-the-island trip but other than that and probably a trip to Lido we’ll likely only be heading out on the water to see the glass making at Murano so don’t expect to spend too much on getting around (it’s quite a walkable size of city).

Interest rate changes by central banks are peculiar affairs.

For one thing, the banks aren’t actually obliged to respond by lowering interest rates although, usually, they do so by a similar amount. It’s usually a similar amount rather than exactly the same amount though which affects people differently: it’s common for banks to drop interest rates on savings accounts by a little more than the cut the central bank announces and loan rates by no more than is announced.

That sounds like they’re ripping you off, and to some extent they are, but what kicks in is the effect of their own administration on the processing of the loans and savings. Even if the central bank cut rates to zero, there would still be a charge for loans as that represents a risk to the bank, and savings rates would drop to zero or possibly a little below that as obviously there is a cost to processing savings too (they’d probably introduce charges rather than negative interest rates).

High interest products tend to represent higher risks so the rates on those aren’t always cut at all following a rate cut announcement.

And, of course, if you’ve a fixed rate loan then the payments on that will stay the same.

From my little shortlist of courses of a week or so back I ordered one each of the recommended text, most of which arrived this morning.

That’s already dropped off one of the potential courses, Art and its histories, and indeed courses in that particular line as I just don’t see me being able to stick at them long enough to finish a course in that area. The philosophy book looks quite interesting though it’s rather too information rich and will take a while to work through.

Which leaves the history book. That one looks surprisingly readable and I’ll be working my way through it over the coming weeks.