Foreign sex tourist driving up prices
[QUOTE=Jaxon;1198667]Five or six years ago it was 40K. You can find better deals in other Colombian cities where club girls go for 50K for one hour.[/QUOTE][QUOTE=TweedleD;1198777]But 10, 000 pesos is about $5. 55 US Is the US ecomomy really that bad or is Colombia Really drawing the this type of tourist?[/QUOTE]Over the last several years, P4P prices have outpaced inflation by several multiples. There are several contributing factors. Substantially more sex tourists going to Medellin. More sex tourists ignorant of local market prices, thereby overpaying. More sex tourists paying tips. More sex tourists paying increasingly bigger tips.
It's the exchange rate and constant growth
[QUOTE=Jaxon;1198639]P4P prices have gone up 50-100% from 4 or 5 years ago. Five years ago, Centro street girls were 10-15K, and Mayorista girls 15K. Loutron was less than 100K six years ago and now it's around 200K. Prices will continue to push up.[/QUOTE]The dollar was as strongest 2001 and had it's lowest value just before the crisis 2008. Today it stands at 1848 COP, but has been well over 2500, which is a fall in value by 26.
This explains at least 50% of the inflation, maybe even more. Some products and services have risen rapidly, while others stands still.
Medellin have had steady economical growth since the 1970th, which is unique in Latinamerica. Luxury services and products meet a constantly higher demand.
Today you need to to a little more research to get a good $/sex-ratio, that's all.
Those prices you mention seem almost unreal. With a minimum wage at 450k COP (+ social benefits) I can't see why anyone would sell themselves for 5k COP.
In agreement with price inelasticity
[QUOTE=Matt Psyche; 1199082]1. Agree that the P4P price change is not related to the inflation in other goods and services. Probably, the P4P price change is more influenced by 'price elasticity' of the sex-service market. If a price increase by a specific percentage (ie. 20%) results in a decline of sales by a smaller percentage (ie. 10% decline in customers) , it is non price-elastic and the price increase in question will increase overall revenue in spite of the decline in the number of customers. I think the P4P price jumped in the last decade because the market was inelastic- in other words, insufficient people quit or reduced buying the service in spite of the price increases, and thereby rewarded the price increases in effect.
2. Foreigners account for only a small portion of overall customers in sex industry. So, the P4P price increase is more likely to be because of domestic (Colombian) customers, who did not sufficiently reduce or quit buying the services. This may be because of the increase of upper-class and middle-class Colombians.[/QUOTE]Also, a growing middle-class and upper-class causes fewer girls to join the P4P workforce, reducing the supply the P4P girls in the market. Reduction in supply drives prices up. Today there are half the number of street girls available and considerable fewer attractive girls at the clubs and casas than in 2007, for example.