St. Maarten Hospitality and Tourism Association (SHTA) figures in today’s paper raise a bit of concern about the upcoming high season that interim Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Omar Ottley keeps saying will be amazing and fantastic. Everybody hopes he’s right, of course, but people are still worried about possible negative effects from, among other things, the war in Eastern Europe and steep airfares.
The former is nothing the destination can change, and it has no direct influence on the latter either. Aviation companies must deal with their own hikes in cost for practically all resources and especially jet fuel, but also with staffing issues internally as well as at gateway airports. Recent developments involving KLM at Schiphol even prompted a cut in flights to Curaçao.
On the other hand, ticket prices to other, perhaps less-popular vacation spots in the region seem generally lower, sometimes for shorter distances. While some of this probably has to do with competition, there is a sense that fares have become whatever passengers will pay.
Although supply and demand are obviously key ingredients of any market economy, it feels almost like getting punished for bringing the carrier more business, or at least travellers willing to pay top dollar to get here. Airlines should realise that if fewer start doing so, the present strategy could easily backfire by reducing volume.
When looking at confirmed bookings for November, December, January and February, keep in mind that these were provided per October 21 and probably will rise significantly during the weeks ahead. With most travel arrangements made online nowadays, last-minute reservations are increasingly common and high current ticket prices might be reason to wait longer.
Third quarter occupancy rates show recovery from the COVID-19 pandemic is very much ongoing particularly in the dominant timeshare sector. However, note that room inventory has grown since 2019, be it not yet to the level of pre-Hurricane Irma 2016.
So, don’t be too discouraged by the numbers, because prospects for the coming months continue to be good despite risk factors and potential setbacks. The Friendly Island is known for repeat guests and customer loyalty. Consistently earning that reputation is up to each of us.
