04-07 market focus 23/1/09 11:41 Page 4
Caribbean destination report
Market
focus
Operators and suppliers are predicting a tough 2009
but pointing to competitive pricing and great deals.
And despite conditions, the air and hotel sectors are
seeing some expansion. Katherine Lawrey reports
T
he odds are stacked against the PLAYING IT SAFE
Caribbean: the global economy is in Although Caribtours has seen record business
meltdown, the pound is weak against this January, its overall position is still 1%
the dollar and UK interest rates are at down on last year. After a few years of signifi-
their lowest for 300 years. Outgoing director of cant growth, director Paul Cleary says bookings
the Caribbean Tourism Organisation Julia started slowing up at the end of last year.
Hendry says: “I’ve been in the industry for 30 “The recession is having an impact,” he
years and I’ve not worked in such an uncertain explains. “We’re a small conservative company
market before. so we’re playing it safe and sticking to basics.”
“In the 1980s and after September 11th, we This cautious strategy is being played out all
had a feel for when the market would recover. over the Caribbean. BA recently introduced
Now, we just don’t know.” St Kitts as a new route because it felt there was
Tour operators and airlines acknowledge demand, but Richard Tams, head of leisure
that booking patterns are changing and sales for the UK and Ireland, says the airline will
holidaymakers are shopping around for better be careful not to add other Caribbean destina-
deals. But overall there is optimism that if, tions unless it’s supremely confident in them.
as PriceWaterhouseCoopers research from Hayes & Jarvis is sticking to a similar
December suggests, people plan to forgo short principle. Katie Parsons, Caribbean product
breaks and opt for one holiday a year, the and contracts manager, says: “In this uncertain
Below: the Botanical Garden in Nevis, which Caribbean will be their destination of choice. economic climate we’re concentrating on what
should benefit from a new BA service to St Kitts is selling and working at selling that well,
before we look to introduce anything else.”
Like Caribtours the operator is holding its
breath for the future, but its top-selling islands
are currently performing well. “Year-on-year
St Lucia is 100% up and Barbados is 200% up
for us,” says Parsons.
She puts these dramatic increases down to
eye-catching promotions, good offers and
capacity increases: “BA increased its St Lucia
flights from twice-weekly to three times a
week and it is now direct which has had a big
influence on sales.”
Cleary is confident the Caribbean can ride
out the storm: “It doesn’t appear to come in
and out of fashion like other destinations.
There’s a real argument for giving people what
they know and trust. The Caribbean is a con-
stant and at times like this people want that.”
4
TTG Knowledge – January 2009
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