Exotic Adventures Inc.: The Amazon River Voyage

Exotic Adventures Inc. operates expedition-style voyages in various locations around the globe, including the Amazon River basin. In early 1998, Exotic Adventures began marketing a low-water season voyage up the Amazon to take place in October. By August, 99 passengers had booked passage with Exotic Adventures. However, in early September the company began receiving messages from their agents in Brazil advising that water levels were unusually low. The company must decide whether to cancel the voyage now (and refund payments received) or to continue it with the risk of subsequent higher costs.