Target Members of Rewards Programs to Boost Tourists Numbers
Way back in 2001 we registered a business name and established a website domain under the trading title of MILESCloser. The idea then, which still has not changed, was to target the hundreds of millions of frequent flyer members who largely use their accumulated miles for vacation or holiday travel.
One of the impediments to growing the United States market especially is we are a little further away from key source market cities. Inevitably airfares are often more expensive, resulting in the overall cost of the ‘vacation’ making it more difficult when competing with other destinations. This is especially true with non-gateway departure points. A good example is Minneapolis-St. Paul to Barbados where the current cheapest bookable fare online in October or early November is US$761 economy return. For the same dates the miles required are just 25,000 and US$60.60 in taxes. So by getting rid of the perceived ‘high’ airfare, we then only have to compete on accommodation options.
Gone are the days when you only earned miles by flying. In fact it is now almost the entire opposite. Most miles are gained by non-airline purchases. The first major airline loyalty programme, American AAdvantage now boasts over 1,000 partners who offer miles simply by selecting a method of payment. Among these are financial institutions who offer huge mileage incentives to sign-up with particular brand name credit cards, which in many cases grant sufficient miles on application for the first flight, without any or a very limited level of purchasing.
By selectively using a miles earning credit card to pay every day bills, it is surprising just how quickly the numbers mount. Personally I have not bought an airline ticket for myself for some time but have currently amassed nearly 600,000 miles. As pointed out several times before, miles break down the geographical distance barriers and enable us to market on a level playing field.
Already with the changes rapidly taking place in our national marketing agency (BTMI) in the USA we are starting to see positive improvements in numbers. A spectacular coup was convincing what is perceived as a low cost carrier, JetBlue, to introduce their new MINT service to Barbados later this year. As their website states this premium service offers ‘fully flat seats, fresh dining options and revitalising amenities’. According to media releases MINT was originally intended for trans-continental long haul services. To have this ‘product’ as a travelling alternative augurs well for our first and business class market, who are both willing and able to pay considerably more.
I am sure too it will prove a catalyst for other carriers to upgrade existing services, just to stay competitive. Hopefully, bookings will be monitored to evaluate what percentage of travellers upgrading their seats to MINT by redeeming their miles to do so.
There has been discussion recently about improving data collection captured on the landing cards. A simple tick box, asking ‘did you travel to Barbados using a loyalty program?’ might just reinforce my point and perhaps be a revelation for our tourism planners.
Barbados Underground 
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The recent CADRES poll concludes tourism is the only indicator in the economy Barbadians believe is being handled satisfactorily?
Really?
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The new president is on it, he will get those american points and air miles, little england no more screw thomas cook its american express now baby.
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http://www.trinidadexpress.com/news/Former_CEO__CLICO_was_ponzi_scheme-182475021.html?m=y&smobile=y
enjoy the water and the people , stay away from the Ministers and the lawyers,
do not even pick up a pen in this Island
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Adrian
A bit off (rewards) topic, But
Toronto Sunday Sun, March 22, Travel section had a two page spread about an upscale all-inclusive Caribbean property, , Chic by Royalton Punta Cana, sold in Canada by Sunwing and managed by a Sunwing subsidiary Blue Diamond Resorts.
See it at http://www.torontosun.com/2015/03/20/new-waves-in-the-caribbean-chic-resort-part-of-trend-toward-more-sophisticated-island-getaways
Sounds a lot like a Sandals with all the luxuries includes.
But compare the price.
Using the lowest price category one week for two in June
Chic = CDN $1,065 +$425 tax X 2 = CDN $2,980
Sandals Barbados = US$370 X 7nts X 2 = US$5,180 X 1.20 = CDN $6,216 + airfare Cdn $500 X 2 = CDN $7,216
Of course comparing DR to Barbados is like comparing mangos to breadfruit, but look at the price difference for essentially the same package to the ordinary Canadian consumer looking for a week of sun, sea and sand.
For that consumer the choice is easy.
Perhaps you can suggest to Minister Sealy that, when Butch decides not to go ahead with Beaches at Heywoods, he consider looking to Blue Diamonds, or one of dozens of other resort property operators, to take over the Heywoods property or build the new property they were going to build for Butch to run and let Sun Group.
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see Chic website at http://www.chicpuntacana.com/en.aspx
See Sunwing website at http://shopping.sunwing.ca/cgi-bin/input-verifforf.cgi
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What also has to be understood and taken into account is that the Barbados dollar has risen about 40% in value in recent years because of its fixed peg to the US$. I don’t think there are many Canadians or other Nationals who would not look at other destinations simply based on a dollar comparison. Even for USA tourists it so much cheaper for them to vacation in countries that do not have US$ fixed pegged currencies. Many of our competitors have been given a 40% price advantage because of monetary policy. Not sure how you overcome that.
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my son was in the Dominican punta cana 2 weeks ago at an all inclusive with sunwing he said it was fantastic nothing to complain about except the peacocks hiding under your bed
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@Due Diligence
I presume the Mango reference is for the DR and the Breadfruit applies to Barbados, DR is definitely the sweeter meat.
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Willy
Been to DR once; but did not eat any DR meat.
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@due diligene
the exchange rate today is 1.25 so for buying Can $ that would mean about 1.28. 1.20 is long gone. That puts the 1 weeks Sandal cost at close to $7000 plus airfare. In 2010 the Canadian dollar was slightly higher than the US$ so the cost to Canadians visiting Barbados is up by 30% in 5 years. On the other hand the Brazilian real and other South American currencies are down in the same time period by about 50%.
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Barbados can’t catch a break.
http://www.cbc.ca/news/business/cuba-booming-as-tourists-flock-there-before-americans-come-1.3005558
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Adrian:
I read your postings.
How does Barbados compete with other tourist destinations within the Caribbean/Mexico that has beautiful beaches and lower prices???
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Barbados is only interested in catering to the rich. So when taxi men, and hoteliers. etc. see tourists the price goes up. So words gets around in North America, and Europe among the mild class about the best bang for your buck on vacation resorts. They’re the ones who’ll spend money on a good bargain that is fair.
You can only attract so many millionaires who just take advantage, and how much do they really contribute to the local economy.
The secret is to supply accommodations, good food, activities, transportation options, and excellent service that is affordable.
A first impression is the most important at the airport, or port. At times, many a arriving guests find it difficult.
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Slightly off topic. View of Barbados from a drone:
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Sorry I forgot to include the link.
http://www.telegraph.co.uk/travel/destinations/centralamericaandcaribbean/barbados/11402715/Barbados-as-youve-never-seen-it-before.html
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We always use our Aeroplan points when travelling to Barbados. This offsets the higher costs for accomodation. I would pick Barbados over the DR anytime.
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@Exclaimer
Nice catch, last week the G & M had a glossy supplement featuring resort fashion in Barbados this is the video also slightly off topic
http://www.theglobeandmail.com/life/life-video/video-style-eye-heading-south-get-inspired-by-the-seasons-hottest-resort-fashion/article23283641/
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Thank you Exclaimer and Sargeant. Barbados is still beautiful.
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Skeletons are starting to come out of the closet:
http://www.barbadostoday.bb/2015/03/24/questions-raised-on-govts-loan-guarantee/
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New initiative.
http://www.brilliantbarbados.com/
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the new president should be focused on getting some of that huge senior citizen pension money . whether it be American baby boomers, Canadian silver haired army or Nigerian students
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Lets scrap this tourism foolishness that HAS NOT produced one red cent of profit for the country in the last two decades. Lets refocus our collective energies and begin to invest in Renewable Energy, Technology, Research and Development and get Barbados moving financially to the benefit of more Barbadians and now the few white or privileged ones.
Sounds hard? It needs to and it needs to happen.
Every time I see Adrian Loveridge on this forum crying and wailing about tourism, I ask why doesn’t he and his small hotel owner buddies or colleagues put their monies into some sort of small, strategic, yet novel tourism venture and prove to the “bigger boys” how this market can really be energized and made profitable.
But what comes through as a strong undertone to me, and possible a few other “awake” readers is that he, like many of his small hotel owner colleagues and many of the bigger chains or properties are just tax parasites! They want everything from government claiming that they are providing employment to Barbadians, but then they really only just do the bare minimums while reaping all of the rewards. They are essentially trying to use tourism and its apparent economic importance as a weapon against the government and as a mechanism to hold the government and people of Barbados to financial ransom.
I like to say, put an unbiased Forensic Audit in them and watch the cockroaches start to scatter as the light begins to shine!
Adrian, NONE OF OUR TAX DOLLARS you MENDICANT PARASITE!
Go use your own!
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Barbados Statistical Service have finally post December 2014 visitor arrivals numbers and makes for interesting reading.
American current offering Atlanta/Barbados/Atlanta on Saturdays (minimum 29 days advance booking) from US$227 return including all taxes. ie: 2 May/9 May
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@Adrian
What do you find interesting in the numbers?
Click to access 2014_Dec_Tourist_Arrivals_Bulletin_1.pdf
On Saturday, 28 March 2015, Barbados Underground wrote:
>
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David, the reporting is far more comprehensive than normal and perhaps might better help the industry make more intelligent decisions.
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The increase from Canada is interesting.
The Canadian dollar ls at a low averaging 80 cents US.
Parts of the Canadian economy is getting hurt by low oil prices.
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