August 2006

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DDA Monthly Report

For July/August 2006

For the British Virgin Islands

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Table of Contents

COMPETITOR ANALYSIS….……………………………………………….………2-3

TRAVEL TRENDS……………………………………………………………………4-6

AIRLINES NEWS…………………………………………………………………….7

ONLINE………………………………………………………………………………. 7

TOUR OPERATORS…………………………………………..……………….........8

MEDIA…………………………………………….…………………………..……… 9

HOTELS NEWS..………………………………………………...………………….10

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COMPETITOR ANALYSIS

Cayman Islands Package Deals

The Cayman Islands Dept. Of Tourism and the Cayman Islands Tourism Association unveiled the ‘Summer Splash 2006’ package, available June 1 through mid-September. Cayman Summer Splash offers discounted air on Cayman Airways; accommodations, with one free night when five are booked; meals; and kids’ activities (for children 12 and under). A Cayman VIP card is issued to each family, offering discounts on car rentals, entrance fees to some various attractions, and under water photography classes.

Travel Week July 2006

Antigua and Barbuda Re-branding

The A & B Tourist Office is unveiling a new brand identity with the aim of promoting a consistent global image reflective of the beauty and culture of the islands.“The importance of a successful brand in today’s world is paramount. It is one of the most powerful marketing tools we can utilise to differentiate out islands from our competitors”. -Dr. Carl Roberts, High Commissioner for the UK.

The logo has been given a more progressive look and the tagline “The Beach is just the beginning…” emphasises A & B’s unique selling points. Shortly, the A & B Tourist Office UK will also be re-launching their website to further strengthen the contemporary image that the re-branding brings and transport it into the 21st Century.

The A & B Tourist Office UK will also launch a ‘Cricket Campaign’ to drive tourism to the islands during the ICC Cricket World Cup. The Tourist Office is also announcing some new developments and refurbishments taking place on the islands within the next 18 months.

A & B is having current success in the wedding and honeymoon market. In addition to the new brand and logo, the Ministry of Tourism in Antigua has announced

plans to develop a Tourism Authority, to be located in St. John’s, Antigua.

Www.azantiguabarbuda.com/news August 2006

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COMPETITOR ANALYSIS

Anguilla Tourist Board Announces 10% Increase in Visitor Arrivals

The Anguilla Tourist Board has announces that the 2006 winter season was a highly successful one, as the island recorded a 10% increase in visitor arrivals (tourists, business travellers, excursionists/day trippers from St. Marten).

There were a total on 48,885 visitor arrivals for the first quarter, an increase of approx. 4,500 persons over the same period in 2005.

Tourist arrivals (stay over visitors) also increased by 10% during the same period, with the island welcoming 20,441 tourists for the period.

The U.S. remained the island’s largest market by far with 28,969 visitor arrivals (approx. 60% of market share), versus 25,055 in 2005, representing an increase of 15.6%.

The record numbers and high profile of the island can be attributed to an improved Airport Facility, increasing marketing budget and a new marketing campaign around the concept of “The Charming Escapes Collection”.

“We are currently ahead of our targeted arrivals, and have high hopes for 2006 with the opening of Anguilla’s first 18 hole championship golf course designed by Greg Norman in November”.

Anguilla Tourist Board July 2006

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TRAVEL TRENDS

Overseas Package Holiday Decline

The number of people taking foreign package holidays has declined from 36% to 31%, down 14% since 2002.

The proportion of people who make their own travel and accommodation arrangements has grown from 41% to 45%, a 10% increase since 2002.

Older holidaymakers are moving towards self-packaging with 4.2 million aged 55 and over making their own arrangements against 3.4 million in 2002, a rise of 24%.

Consumers are becoming more adventurous and prefer to take holidays ‘off the beaten track’. The number of consumers who say they only want to relax in the sun has declined 10% since 2002. A 300,000-drop in British visitors to the Canary Islands demonstrates the decline in the traditional beach resort holiday in four years, according to BRMB.

Travelmole July 2006

TRAVEL TRENDS

Bookings Surge After England World Cup Exit

Holiday sales have surged in the wake of England's World Cup defeat on Saturday. Bookings on Sunday and Monday increased by 35%.

Almost 80% of the bookings were for departures in the next two weeks, with the weekend of July 7, 8 and 9 looking particularly popular.

Visits to travel websites are up 15% in the past month and 8% up year on year, according to the latest UK figures from Hitwise. In the last month visits are up 23% to Lastminute.com, 27% to Expedia UK, 20% to TripAdvisor, 33% to LateRooms UK and 25% to First Choice.

Travelmole July 2006

Brits Prefer the Beach and Shopping To Culture

Britons are most likely to opt for a beach holiday or shopping trip rather than cultural tours. Brits are more likely to go on holiday to the beach (37%), followed by city breaks (32%). Only 7% of Brits go on a ‘cultural holiday’ placing them at the bottom of the cultural scale.

In Comparison, over a quarter of Italian (25%) and Spanish (28%) holidaymakers has taken a ‘cultural holiday’ in the past 12 months.TNS travel and tourism head Tom Costley said: ‘Our latest information shows that British holiday makers are taking fewer holidays compared with last year, particularly within the UK’.Travelmole July 2006

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Spending Less on Airfare Means Spending More on Accommodation

Five times more people are self-packaging their holidays this year over 2005, according to Travelocity.co.uk.

Travellers using budget airlines are spending the money saved on better accommodation, according to a new poll by the travel website. Almost three-quarters (70%) of respondents to the Travelocity survey said they would be putting the cash towards a higher grade of accommodation, 12% would choose to upgrade their board basis and 8% would opt to add transfers.

Travellers want to make the most of their holiday with the majority (nine in ten people) saying they would rather treat themselves to a more luxurious break than spend the extra cash on pre-holiday shopping or in-resort entertainment.

"We have seen a stark increase in customers packaging their own holidays for summer 2006, with many booking their flights and accommodation earlier in the season”- Travelocity.co.uk Marketing Manager Stuart Parish

Travelmole August 2006-08-10

TRAVEL TRENDS

Caribbean Tourism boosted by ‘Pirates of the Caribbean II: Dead Man’s Chest’

Summer tourism figures rise in the Dominica and the Bahamas where this film (as well as the Pirates’ trilogy due out next summer) was shot.

These packages include offers like gifts, such as bandanas, rum and wale-watching expeditions, in addition to room, breakfast and shopping discounts.

Parents want to experience a pirate adventure with their kids. July’s release of ‘Pirates of the Caribbean: Dead Man’s Chest’ is proving to be a massive

hit. It took £13.8m in its opening weekend, making it the biggest opening to date.

Travel Week July 2006Positivetourism.com July 2006TCS Media August 2006

Older Holidaymakers Favour Multiple Destinations

Middle aged couples that missed out on university gap years are a new breed of holidaymaker looking for multiple holiday experiences.

People in their forties and fifties prefer an eclectic mix of exotic experiences on holiday rather than spend on or two weeks in a single destination.

In the P&O Cruises’ 2006 world cruise brochure, Maldives was the number one destination, the Caribbean was fourth, and the Seychelles was the seventh on a list of ten.

Today’s travellers set their sights higher and they want experiences as well as amazing destinations”.

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Customer to Customer Travel Planning

The latest trend that is creeping up fast on the rails is customer to customer-C2C holiday planning, which is Internet driven via Web logs (blogs).

The traveller can now post their dream vacation on a blog, and a ‘minipreneur’ can come up with a personalized solution or itinerary to satisfy the holiday for a fee.

“This is a trend that can bypass official distribution channels, travel companies and agencies. Looking ahead, Euromonitor International forecasts that C2C communication will influence the future of customisation, translating into the likely emergence of customized packages from independent agents who are best placed to respond and this could just be the breakthrough that many independent agents have been waiting to capitalise on”. –Fiona Jeffrey, Managing Director of World Travel Market.

Travelmole July 2006

TRAVEL TRENDS

Most Parents Take Children on Holiday in Term Time

Eighty per cent of parents still take their children out of school because of the higher prices of holidays during the peak summer season. Parents are encouraged to book early for the best deals.

Travelmole July 2006

Price Remains Determining Travel Factor

Cost remains the most important factor determining the choice of holiday and flight for almost a quarter of people. More than 21% of consumers across most ages, social grades and regions cited price as the most important factor in their choice of holiday. Convenience of airport was ranked second followed by flight timing, in-flight comfort and services. The findings come from an Airports report by market intelligence firm Key Note.

Travelmole July 2006

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Wedding Trend Away from Caribbean

“The Caribbean continues to be our most popular choice of wedding destination, but we have seen increased demand from customers for more unusual wedding locations”. – Virgin Holidays Weddings Product Manager Nikki Martimer.

TTG July 2006

Airline News

BA seat sale cuts Gatwick prices

Source: Travel Industry Monitor by Mintel (extract). See account manager for details 16-08-2006

British Airways is to cut ticket prices on an extra 2 million seats, and promises that the fares - on European routes out of Gatwick - will be available year round.

Mintel 16 August 06

ONLINE

Long Haul Dynamic Packaging

Trade accommodation supplier hotels4U.com is claiming a 65% rise in agents dynamically packaging long haul trips in the last three months. Overall, the company reported an 88% increase in sales in the first six months of 2006.

Increasing long haul activity has been notable to the US and Caribbean and has prompted the company to expand the region for the winter to include Barbados, Tobago, Grenada, St. Kitts, Antigua, Jamaica, Cuba and the Dominican Republic. New destinations due to be launched within the next two months include Dubai and the Maldives.

“The dynamic packaging market in incredibly strong at the moment, and a combination of modern technology, cheap airfares and commission cuts have all helped both our business and the proactive retailers that have embraced dynamic packaging”. -Sales Development Manager Simon Barnes.

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There has been an increase in charter airlines introducing long haul routes, such as Excel Airways into the Caribbean.

Travel Web Sites Gaining in Popularity

According to the latest figures from Hitwise, visits to travel Web sites rose 15% in June 2006 and 8% on the previous year.

Travel Weekly July 2006

TOUR OPERATOR NEWS

Thomas Cook Starts Adults-Only Programme

The programme offers 41 hotels in destinations including St. Lucia, Antigua, Seychelles and South Africa.

Product and Publishing director Tony Hopkins said the Exclusively Adults range, which runs from Nov. of this year to Dec. of 2007, had been produced in response to demand.

“With Britons travelling more than ever, parents are more likely to take a holiday without children, and a hotel where they won’t be surrounded by other families can be very appealing”. –Tony Hopkins

TOUR OPERATOR NEWS

Thomas Cook’s New Multi-Channel Reservation System

Thomas Cook is to have a £20 million new multi-channel reservation system across Europe that will enable all of the group's tour operating brands to sell and distribute via multiple channels including websites, television, call-centres and travel agents. The solution will allow any combination of Thomas Cook owned inventory and third party inventory via links to external systems. The new system will enable Thomas Cook to distribute traditional package holidays, dynamically packaged and priced holidays and trips made up of individual components. 

The development and introduction of the reservation system, under the code name GLOBE, will be phased in brand by brand over two years.

Travelmole August 2006

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Tour Operators Move Away from Caribbean

Virgin saw an 80% increase in passenger numbers this year and hopes to further boost bookings to destinations such as Dubai, Mauritius and the Far East as it broadens its portfolio away from its traditional focus on Florida and the Caribbean. “Before our holidays have tended to centre on Caribbean and Florida – we’re now expanding into new destinations and can offer customers more choice”. – Worldwide product manager James Gamble.

Travel Weekly July 2006

Dire Market Conditions Outlined by Thomas Cook

An internal memo from Thomas Cook has revealed that trading conditions in the industry are at their worst level for 15 years and the operator still has 300,000 holidays left to sell.

Millions are deserting tour operators in favour of no-frills flights. "Our performance still hangs in the balance. Yes, we're outperforming the market, but it's

a terrible market. The fact is we are still way below where we need to be” - Thomas Cook chief executive Manny Fontenla-Novoa.

Travelmole August 2006

Western & Oriental Expands Reach in Caribbean and Indian Ocean

Luxury operator Harlequin Worldwide Travel has become the fourth acquisition by Western & Oriental Travel this year. The £470,000 deal in cash and shares expands W&O’s coverage of the Caribbean and enhances its reach in the Indian Ocean and other parts of Europe.

“The acquisition of Harlequin brings and an enhanced product breadth to the group, in particular adding specialist Caribbean holidays to the portfolio”-W&O chairman David Howell

Travelmole August 2006

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MEDIA NEWS

Magic and Heart are London’s Most Promising Radio Stations to Advertise on.

Magic is London's number one radio station in terms of reach and share. The station has 1.8m listeners, 190,000 more than this time last year.

Heart has overtaken Capital in terms of reach with 1.66 m listeners.

TCS media August 2006

HOTEL NEWS

Mango Bay Refurbishment

Mango Bay in Barbados took completed a six-month, $10 million refurbishment and expansion project that added 12 units in two new categories of deluxe rooms and penthouse suites. Hotels are spending more on redevelopment and state-of-the-art accommodations, which mean customers may be expecting more from luxury hotels.

Travel Week July 2006

Spice Island Smoking Ban

Spice Island on Grenada, which recently completed a $12 million rebuilding project, redefined its early smoking policy to now include all enclosed areas. Guests who break the rule in guest rooms will be charged for sanitizing the rooms for the next guests.

Travel Week July 2006

“ADAARAN” Resorts Brand Launched in the Maldives

A new corporate identity named “ADAARAN” Resorts was launched in the Maldives on 1stJuly 2006.

The new identity brings six major resorts under a single brand identity. The new brand represents the promise of high standards of service that is part of the rich tradition of the Maldivian culture, and the aspirations of the Group to reach new heights in the products and services offered to discerning customers.

Maldives Tourist Board July 2006

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