Discount Travelers Least Likely To Return To Barbados
For the sixth consecutive year, despite the hype regarding just how well tourism is doing in Barbados, the discounted Best of Barbados programme has been resurrected for 2007.
Let us just compare the differential in net yield for bookings with this programme and direct bookings based on a typical US$100 per night per room (two persons) accommodation cost for a 7 night stay.
All figures shown in US$.
Example ONE (Best of Barbados)
7 nights accommodation (one free) at $100 = $600
less taxpayer airline subsidy of $200 per person
Daily free breakfast and 50% discount on activities etc.
Net revenue to the country = $100 per person
Example TWO (direct booking)
7 nights accommodation at $100 = $700
Daily paid breakfast (average cost) for two persons $210
No airline subsidy (best to attract some of the 200 million people who have acquired Air MILES) and no discount of activities etc.
Net revenue to the country = $455 per person
To grasp the financial implications of the above, multiply the examples by 50,000 visitors.
Example ONE – net revenue to the country = $5 million
Example TWO – net revenue to the country = $22.75 million
In addition to the simple economics, it is widely accepted that the discount market is the least destination loyal and less likely to return.
They are looking for a bargain and wherever that bargain is to be had, that’s where they will travel.
24 February 2007