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Examining Sandals Benefits

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Submitted by Due Diligence
Father and son Butch and Adam Stewart
Father and son Butch and Adam Stewart

In the August 23, 2014, edition of Barbados Today there was an article titled It’s the Mix. In the article, Gordon Butch Stewart, extols the benefits that local restaurants. bars and other businesses will receive from the guests of Sandals Barbados. “I want people to come here and get more than they expected when they are spending their money… People will leave this hotel, probably a hundred a day for attractions outside of the hotel. It happens everywhere. We have a company that is called Island Routes that sells the attraction out there. So our job is to bring the visitors to Barbados and then get them out so they can taste the country, taste the flavour, the different food and [interact with] the different people. I can guarantee you that when this hotel opens, you go down the road [in] the bars and the restaurants [and] you will see Sandals people in there”.

After being virtually invisible for over a year from the Canadian (Toronto at least) newspaper Travel Section, Barbados’ name has reappeared. Not a BTA ad – it is the first ad (I have seen) for Sandals Barbados,  a half page in the August 23, 2014 Globe Travel section of The Globe and Mail.

As another BU commenter said, Sandals guests are going to Sandals. DD is sceptical about Butch’s pitch.  The amount of business the Sandals’ guests will do with other hospitality and tourism service providers will be very limited.

There are 11 restaurants at Sandals Barbados where their meals are included; how many of the Sandals guests will be dining at nearby restaurants, When premium drinks are served at Sandals all day and all night; how many will be going to the neighbourhood bars?  When unlimited land and water sports, including scuba diving* are included, how many Sandals guests will be venturing off the property to visit other attractions.

Butch said “People will leave this hotel, probably a hundred a day for attractions outside of the hotel”.  Sandals Barbados room stock will be 280 rooms with approximate occupancy two to a room equal 560 guests.  If 100 leave, there are 460 who do not leave.

There is no doubt that Butch’s marketing might will ensure that he has the airlift needed by Sandals – he probably has 560 seats per week allocated to Sandals by the airlines.  But will the seats allocated to Sandals be additional seats, or will they simply be blocked off from others?  Air Canada, Westjet, AA and others are unlikely to put on extra flights or use larger aircraft because Butch needs 100 seats a day to service Sandals Barbados (which would have been used for guests of Couples). So if Sandals is simply eating into existing airlift, that will simply reduce the number of seats available to potential guests of the other hotels.

DD wonders if the MOF, MOT, BTA, BTMI et al have thought this through. For those who are Butch Believers, DD suggests they read  WILD COOT: What is the gain? To quote WILD COOT, “The jury is out with respect to the net benefits to be attributed to the Sandals arrangement – maybe in 2037 our grandchildren will benefit.”

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61 responses to “Examining Sandals Benefits”

  1. BARBADOSTRIPADVISOR Avatar
    BARBADOSTRIPADVISOR

    more white thieves?good idea!

  2. BARBADOSTRIPADVISOR Avatar
    BARBADOSTRIPADVISOR

    can anyone tell me why when you search hotels in barbados
    on trivago -http://www.trivago.com/ that little apartment
    private houses ,with furniture from courts and cheep and ugly little places come up while the bigger nicer hotels do not show up??anyone?

  3. BARBADOSTRIPADVISOR Avatar
    BARBADOSTRIPADVISOR

    http://www.trivago.com/

  4. Life Changer + Avatar
    Life Changer +

    @ TRIPADVISOR

    Are you for real. Or is your search engine ( restricted.)

    Rooms available from £404. See trivago.co.uk/prospect-81854/hotel/crystal-cove-89122.

  5. BARBADOSTRIPADVISOR Avatar
    BARBADOSTRIPADVISOR

    i not in UK.so what you saying . is bullshit.
    oh i am for real alright.are you for real?
    400 euros really good luck with regular people paying that rip off price.
    rip off for bad service , crap food, not up to par with the real world.

  6. Caribbean Lover Avatar
    Caribbean Lover

    @ Hants
    Given the drop in enrollment at UWI and the lack of jobs in the civil service, what will happen to the “school leavers” this year

    If workers, including civil servants, were forced to retire when they reach their retirement age, the employment prospects for school leavers would be a little brighter.

  7. Caribbean Lover Avatar
    Caribbean Lover

    @Artaxerxes
    What we must realize is that the all-inclusive concept will be successful in islands like Jamaica where the crime rate is high, and to a lesser extent, St. Lucia, whose crime rate is steadily increasing. There will be a fear among visitors, which will cause them to be wary of visiting certain places by themselves

    This is the most stupid correlation I’ve ever seen. The all-inclusive concept isn’t driven by fear of crime; instead, it is driven by pure economics; for It is cheaper, in most cases, to have your meals, drinks, and watersports activities included in a package than to pay for these things individually.

    The Bahamas, The Cayman Islands, Bermuda, Turks & Caicos; all have very low crime rates; yet, the all-inclusive concept is popular in these destinations.
    And if the all-inclusive concept is successful in St.Lucia because of a steady increase in crime, why do so many, many tourists go to the Friday Night Jump-up in Gros islet to mix with the locals?

  8. Artaxerxes Avatar
    Artaxerxes

    Caribbean Lover | August 31, 2014 at 9:51 AM |
    “This is the most stupid correlation I’ve ever seen. The all-inclusive concept isn’t driven by fear of crime; instead, it is driven by pure economics; for It is cheaper, in most cases, to have your meals, drinks, and watersports activities included in a package than to pay for these things individually.”

    Have you ever worked in a management position in the hotel industry before, other than being a waiter, bus-boy or front desk clerk? Or are you just one of those individuals who because you have travelled around the Caribbean, think this makes you an expert?

    You don’t know what you are talking about. Marketing the all-inclusive concept in Barbados will be quite different than it will be in islands like Jamaica.

    What I suggest you do is to consult with any hotel marketing manager about the differences in the marketing dynamics, then tell us what you have discovered. I am open to debate.

  9. Artaxerxes Avatar
    Artaxerxes

    Caribbean Lover | August 31, 2014 at 9:51 AM |
    “The Bahamas, The Cayman Islands, Bermuda, Turks & Caicos; all have very low crime rates; yet, the all-inclusive concept is popular in these destinations.”

    The all-inclusive concept will be successful in the islands you have identified because of the high cost of living. Hence, persons visiting these destinations with limited spending power will obviously opt for package deals.
    The marketing strategy for, let’s say Beaches Turks & Caicos Resort Villas and Spa (an all-inclusive resort), will be different from that of Sandals in Barbados. Beaches Resort amenities include a private beach and there are no private beaches in Barbados. Hence, the market share objectives, market segmentation, marketing goals and customer profile variables will be different. Whereas, Jamaica’s all-inclusive marketing strategy will include the “fear of crime factor” and would provide packages for visitors to see the island in a controlled setting; Bermuda and the other islands’ strategy would be to provide packages to attract certain classes of visitors; i.e. those who prefer the private beach setting (Bermuda, Bahamas, Turk & Caicos), and those who want affordable travel.

    Let’s examine Bermuda…… this island is generally quite expensive for everything from food to souvenirs to golf to hotel prices so it’s not an ideal stop for a low-budget traveler even if cheap airfare is available. In Bermuda there is the Fairmont Southampton, Fairmont Hamilton Princess, Elbow Beach Bermuda, Rosewood Tucker Point, and Coco Reef Resort Bermuda. A room at Fairmont Southampton range from between US$359 to US$979 per night; Elbow Beach = US$625 – US$6,541 per night. Hotel room rates and food are made more expensive because service charge (15%) and taxes (10%) are added to the tariff.

    Now, bear in mind that Bermuda $1 = US$1 and 1 kilo = 2.20 lbs:
    A loaf of fresh white bread cost approximately B$5.25 [BD$10.50], a kilo of cheese = BD$35.38; 1 kg apples = BD$16.89; a head of lettuce = BD$9.33; 1 kg of chicken breast = BD$28.57.
    A meal at an inexpensive restaurant will cost about BD$55; a 3 course meal for 2 = BD$200; a coke or any other similar sized soft drink (0.33l) = BD$4.71; 1 litre of water = BD$4.50; local beer = $15, imported beer 1 litre bottle = BD$14; a combo meal at McDonald’s will range between BD$24 – $30; a pack of cigarettes = BD$19 – $21.
    Taxi waiting for an hour = BD$70; local transport to and from = BD$12; taxi for 1 kilometre = BD$2.80 – $4.97. To watch a movie at the cinema = BD$24.

    Now let’s take a look at the Cayman Islands. $1 Cayman = US$1.22 or BD$2.44: a coke or pepsi + BD$3.15; imported beer (0.33l) = BD$8.96, local beer = BD$8.00; 1 kg rice = BD$11.02; 1 kg cheese = BD$40.93;

    So, Caribbean Lover, at these prices do you see why a low budget or other travelers would opt for an all-inclusive deal? And you must consider it is not only rich people who travel.

  10. Caribbean Lover Avatar
    Caribbean Lover

    @Artaxerxes
    Got you! But I still stand by my argument that there is no evidence of a correlation between the success of the all-inclusive concept and crime in St.Lucia.
    And yes, I spent the whole decade of the 70’s and part of the 80’s in the hotel business. And I hold a business degree.

  11. Artaxerxes Avatar
    Artaxerxes

    Caribbean Lover | September 1, 2014 at 1:01 PM |

    “Got you! But I still stand by my argument that there is no evidence of a correlation between the success of the all-inclusive concept and crime in St.Lucia.”

    I NEVER made a “correlation between the success of the all-inclusive concept and crime in St. Lucia.”, that’s your assumption. My arguments were based entirely on marketing strategies.

    Additionally, anyone one could say they hold a business degree, however, If you actually hold such a degree, you would have understood my point relative to marketing.

    Ok, you “spent the whole decade of the 70’s and part of the 80’s in the hotel business”, but that’s a broad statement, it does not indicate your area of expertise. Perhaps you should update your knowledge base to make it relevant to the 2000’s.

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