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Caribbean destination report
Market
analysis
Despite a bleak prognosis at the start of the year, the
Caribbean market didn’t fare as badly as feared in 2009.
Sara Macefield reports
N
o one can deny that 2009 was a
tough year for the Caribbean. The
worldwide credit crunch, faltering
consumer confidence and the
controversial increase in Air Passenger Duty
all took their toll, yet the market generally
managed to hold its own. add value. Our biggest challenge has been to
Aggressive pricing, fierce competition and a add something in resort such as room upgrades
string of new products have helped to inject or credits to clinch the sale.”
fresh impetus into the market with hotel Some customers have also been opting for
openings, refurbishments and additional flights shorter stays, for 10 days instead of two weeks,
sparking a wave of interest in the islands. and opting for all-inclusive hotels or meal plans
Several operators that managed to hold that offer all-inclusive or some other board basis.
steady last year are starting 2010 in a better Hayes & Jarvis also found price to be the key
position than they were 12 months ago – motivator for sales last year, with hotels that
giving them hope that business has turned a responded with lower rates and special offers
corner and is moving back to healthier levels. reaping the benefits.
“Forward sales for 2010 are in line with
WORKING HARD FOR BOOKINGS our expectations. We are optimistic the
Caribtours finished 2009 3% down on the Caribbean will do well this year, particularly
previous year – a level which managing with the partial recovery of sterling against the
Antigua’s Jumby Bay reopened in December director Paul Cleary was satisfied with. dollar, which makes the islands slightly less
“We had gone into 2009 with a heavy heart expensive,” said Caribbean product and
after the grim prognosis,” he said. “But it contracts manager Katie Parsons.
turned out pretty well.” Generally operators feel there is now more
However, like many other companies, he interest from consumers, which is translating
found bookings much tougher to come by. into stronger forward sales. January started
“We were having to work three to four times well, despite the snowy weather, although this
as hard as before, and would rather take a caused problems for some operators as not
booking at a low margin than have no margin enough staff could get into the offices to field
at all,” he added. calls from customers.
ITC Classics chief executive Jennifer Atkinson The forthcoming general election and football
agreed. “It’s been very short-term and very World Cup could also distort the market, though
last-minute,” she said. “We’ve been getting operators did not seem overly concerned. APD
customers coming in with quotes from three or also seemed to have had little effect for more
four other places; they might have gone to the upscale operators, with reports that it simply
hotel direct and gone on to ba.com – that hadn’t been raised by customers.
never used to happen. However, Thomson and First Choice claimed
“We have had to be as good as they are and last year’s increase had hit sales of premium
4
TTG Knowledge – February 2010
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