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Steady profits for airlines, travel agencies

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As vacation getaways continue
Published: 
Thursday, July 30, 2015

With this year’s long school vacation half gone, airlines and travel agencies in T&T are reporting no decline in the appetite of locals to jet away to foreign destinations, despite problems getting foreign exchange, an uncertain economy and with the country facing a general election at the end of the “summer.”

In Europe, the United States, to the Caribbean, demand for leisure destinations tends to be highest in the July and August period as this is when children are on holidays from school and when parents take their annual vacations.  

Like every other airline, CAL experiences heightened demand during the July and August period. In emailed responses, Dionne Ligoure, head of corporate communications, said the airline’s customers are travelling to both traditional and non-traditional destinations, while others are doing multi-destination trips. 

Looking at domestic tourism between the islands, Ligoure said this has been trending upward since the attractions include eco-tourism, short stays and event travel, combined business/leisure travel and strong growth in the Spanish-speaking Caribbean.

“For June 2015, airlift on the domestic air bridge was increased by over seven per cent compared to the same period last year. For July, Caribbean Airlines has added over 15 per cent more capacity and for August the air-bridge schedule is augmented by 16 per cent over last year.”

Overall, coping with increased capacity requires changes which must be neatly crafted around demand.

“In order to better meet our customers’ needs during the summer peak between July through to September, we have enhanced our schedule to several destinations, including from Jamaica, to and from New York, Orlando, Toronto; from T&T, to and from New York, Orlando, Toronto, Barbados, Grenada, Caracas and Suriname.

The airline is satisfied with its strategic position in the market and is comfortable that its brand is recognised and that brand loyalty continues to be strong.  

“Caribbean Airlines’ entire 19 destination network is popular with travellers: New York, Orlando, Fort Lauderdale, Miami, Toronto,  London, Kingston, St Maarten, Barbados, Guyana, Suriname, Bahamas among others, where our flights are booked and we are delighted for that.”

Asked about the cost of visiting CAL’s destinations, she said fares are dependent on the needs of the customer, the length of stay and other factors. She said for some fares start from as low as US$149 to got Florida.

JetBlue Airlines:

Catalina Breton, director of international planning and commercial, JetBlue, said the destinations frequented by T&T nationals during the July and August period are Ft Lauderdale and New York. 

Explaining the popularity of the two destinations, she said: “Ft Lauderdale offers world-renowned beaches, shopping and entertainment attractions for all ages, and is a quick 30-minute drive from Miami and Palm Beach, each of which offer additional activities.” 

In emailed responses she said: “A quick flight connection to Orlando (which is about a four-hour drive) offers families the many theme parks and attractions. New York also offers very interesting historic sightseeing and cultural institutions such as museums and Broadway shows, as well as shopping. 

“From either New York or Ft Lauderdale, JetBlue’s daily service from Port-of-Spain offers connections to a number of other popular destinations, including Boston, Las Vegas (a great launch point to see the Grand Canyon), Los Angeles and San Francisco.”

Regarding the price of tickets, she said costs vary depending on which day the customer wants to travel. 

Breton said: “There is a trend to explore the authentic side of a destination. This could mean going beyond the tried and true tourist favourites, and seeking cuisine or culture as seen through the eyes of locals. This could also mean finding meaningful volunteer opportunities.”

Asked what contributes to increased demand for one destination versus another, she said: “High-quality accommodations at a great value, good dining options and attractions, a safe environment and friendly locals. Good word of mouth helps a destination to succeed.”

Amral’s Travel Service Ltd:

Richard David, manager, said Curacao has become a more popular destination for T&T nationals since InselAir relaunched the T&T to Curacao route. In mid-December 2014, InselAir relaunched the route and operates flights from Curacao to Port-of-Spain three times per week, departing Curacao at 10:30 am and arriving in T&T at noon.

“The destination has always been a popular one but now with the emergence of InselAir, it boosted visitor numbers going to that destination. St Lucia is also a popular destination.”

Regarding trends in travelling, he said: “Corporate sales will be corporate sales. As a result of school closing, families are likely to go on a holiday abroad and this is where the numbers start to increase. American destinations would always be in demand because of the friends and family travel, where friends in T&T would visit their friends abroad or family in T&T would visit family abroad.”

Revenue for Amral’s has not changed this year compared to last year and ticket sales are basically the same, he said. 

Lazzari and Sampson Travel Service Ltd:

Dexter D’Oliveira, managing director, said there is a mixed pattern of demand when it comes to its customers. Demand for destinations such as Miami, New York, Curacao, Panama, Kingston, St Lucia and London are out front. The numbers concerning visitors to Curacao are increasing due to InselAir relaunching the T&T/Curacao route.

Referring to Barbados, D’Oliveira said that destination, as with destinations that have events such as Carnival, the bookings would be done in advance. While he did not want to disclose the figures for people visiting that destination, D’Oliveira said they are on par with 2014. He said the hotels, too, are now reducing their rates to accommodate the increased arrival.

With regard to Grenada, he said there isn’t too much demand for that destination. Overall, he said what is happening is that people are adopting a wait-and-see approach before booking their destination. Bookings are done at the last minute in most instances. 

He said the company’s core business is business travel and though it declines sometimes, the next day or few days after it “picks back up.” This pattern in demand was never the custom years ago, he said, as it only started recently especially with the changing oil price.

Navarro’s Travel Service Ltd:

Member of the tours department who did not want to be identified said Panama, St Lucia and Margarita are the package destinations in demand. 

Offering specials to destinations helps to stimulate demand. Customers to Margarita tend to repeat their experience because of the exchange rate which makes costs within the customers’ budget. 

Another trend which is emerging is retirees travelling to destinations and mainly female retirees going to Margarita and St Lucia. It costs approximately $4,900 to go to Panama if the customer opts to purchase the Panama package. That package comes with breakfast only because the destination is a shopping destination and customers are most likely to be out all day long. 

Demand also comes from youth groups.

 Top 10 destinations according to Airlines for America

1. Cancun

2. London

3. Tokyo

4. Toronto

5. Paris

6. Mexico City

7. Vancouver

8. Santo Domingo

9.  Montego Bay

10. Punta Cana

 

Approximate costs according to Expedia.com (using the cheapest flights) for the period August 16 to 31
 CALAmericanJet BlueUnited
New York$718.65$1058.60$579.40$833.20
Miami$1033.65$764.550$728.55
Orlando0$962.80$805.950
Fort Lauderdale$643.90$596.65$635.95 
Kingston$1272.030$1650.53 
Barbados$296.80   
St Lucia$358.30   

 


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