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Tiding the lean season with innovative approach
Dennis Morrison, Contributor
As the Caribbean tourism industry enters the traditional slow season, operators are no doubt wishing that hurricane forecasts pointing to heightened activity are proven wrong, while they brace for lower-than-anticipated occupancy rates as the United States (US) economic recovery slows down. In Jamaica's case, there is a view that the interruption of bookings, caused by events in May, might affect the flow of visitors in the coming weeks. Like they have since the recession hit in 2008, people in the tourism business will have to apply various approaches - discounting of rooms, 'reward programmes' and incentives - to entice hesitant consumers to take the vacations they have been postponing.
A few months ago, when it appeared that the recovery was steady, there were signs that pent-up demand for travel in the US market was starting to filter through into increased spending and trips. Indeed, the US Travel Association was forecasting that spending on leisure travel would go up by over six per cent this year to nearly US$520 billion, even though consumers remain tentative. Leading travel writers have pointed out that consumers are more frugal and continue to juggle their finances, reflected in their taking more short trips and being more aggressive in searching for bargains.
With airfares rising and cruise lines offering discounted rates, competition for land-based operators in the Caribbean is going to be stiff for the rest of the year. American tourists are also leaning more towards driving trips and, with gasolene prices moderating, estimates are that short driving trips will increase by over 10 per cent for the coming Labour Day holiday week end. The outlook is made even more challenging as Mexico, which had been disabled last year by the swine flu outbreak, is now moving forcefully to regain its market share.
catalysts for a stronger season
Sports-based tourism, entertainment, trade shows and incentive group travel remain the most likely areas that could act as catalysts for a stronger Fall season (the Rose Hall Triathlon is a rudimentary idea of the approach). But it is going to require long-term, patient work and investment by the industry; and this is not the most propitious time, given the state of the travel market. Nonetheless, there is no better time to start long-term planning than at the bottom of the business cycle.
Strategic partnerships between the State, global- and local-event promoters, and the leading marketing teams in the industry are perhaps key driving factors for this kind of initiative to produce positive results. The Montego Bay Convention Centre represents the first of the major assets that are necessary to cater to the MICE (meetings, incentives, conferences and events) market. Exciting night-life offering world-class entertainment, shopping and other attractions are also essential elements for event-driven travel in which sun, sea and sand play a lesser role.
In the meantime, the industry has to use its mix of incentives, discounting of rooms and 'reward programmes' to survive the 'tamarind season'. More important, however, is the groundwork that must be laid for the winter season.
hospitalityjamaica@gleanerjm.com |
