Tag Archives: Fuel Costs

Falling fuel prices no guarantee of increased tourism – Barbados must work smart and hard in a tough market

Barbados Grantley Airport Tarmac

Adrian Loveridge - tourism expert, hotel owner

Adrian Loveridge – tourism expert, hotel owner

Most of us, of course, warmly welcome the current fall in fuel prices which probably in the hospitality sector be demonstrated by the greatest savings in electricity prices, especially those properties who have extensive air conditioning units.

But almost needlessly to say, that Government will collect a lower level of taxes and VAT, so it’s a two edged sword.

I also wonder how long it will take our limited number of distribution companies to pass on the benefit of reduced delivery costs as a result of cheaper petrol and diesel prices. Assuming of course, they will pass on the benefits at all.

Experts in the aviation industry do not expect any dramatic reduction in airfares and again it may work initially against the consumer’s interest while used aircraft values rise as fuel falls, slowing down the delivery of newer most fuel-efficient aircraft in some cases.

Across our major tourism markets the halving of oil prices will hopefully give people more disposable income, perhaps most notably in the United Kingdom, where we have witnessed a recent significant fall in the value of Sterling against the US Dollar.

The Key to Success for Barbados tourism

Judging by the unprecedented level of email holiday bargains on offer in the UK I have tracked, there is absolutely no room for complacency this year and particularly in the more challenging softer summer months. Key to the success of this will be to portray the destination as offering real value-for-money. And I do not mean attempting to achieve the almost impossible objective by making everything cheaper, but ensuring that every product offering is as good as we can get it and going that extra mile to make visitors feel rightly special.  Continue reading

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Filed under Aviation, Barbados, Barbados Tourism, Economy, Energy

Oil Dropping – But LIAT Keeps High Fuel Surcharges!

With Oil now dropping to around US$40 a barrel WHY have LIAT’s fuel surcharges not been further reduced?

liat-airlines-disasterBuy the cheapest currently available return airline seat from Barbados to St. Lucia and you will pay US$200.45.

Of that figure US$125.45 are passenger facility charges, VAT, Airport Departure taxes (US$52.50) Airport Authority or Passenger tax and a massive US$47.50 in fuel surcharges and insurance.

First of all I wonder how consumers would respond, if hotels and other tourism partners starting showing insurance as an additional add-on?

Secondly, exactly what is the current fuel cost of flying a full Dash 8 to St. Lucia from Barbados and back?

Less than US$2,375 or the fuel surcharge applied methinks!

So when exactly is LIAT going to pass on their fuel savings?

They chose to run to the media when a token reduction of US$5 came off previous surcharges. Now that the cost of oil is nearly a quarter of price paid a few weeks ago, how much longer will it take to respond?

Is this another case of price gouging?

And as LIAT is owned by a number of Caribbean Government’s are they complicit in that price gouging?

Many airlines have already substantially reduced or totally eliminated fuel surcharges, so have cruise ship companies, but not LIAT!

So many questions!

Adrian Loveridge

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Filed under Aviation, Barbados, Barbados Tourism, Consumer Issues, Tourism, Travel, Traveling and Tourism