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Recession Proof Romance

As travel patterns shift in the wake of the recession, consumers are sitting in the driver’s seat. But what do the emerging trends mean for destinations like Cayman? And will they fundamentally change the travel industry for good?

Travel has seen its share of troubles over the last year. Feeling the effects of a one-two punch from the global economic slowdown followed swiftly by the swine flu outbreak, it’s been a bumpy road for just about everyone in the business. Consumers – more cash-strapped and worried about job security than ever before – have changed the way they view and book travel. And the result is that destinations, hoteliers, tour operators and airlines are learning to dance a new dance. But while many are praying for the dark clouds to pass and give way to sunnier skies, others are embracing the challenges of doing business with a savvier consumer.

Following the 9/11 terrorist attacks, the travel industry went into a tailspin. Aggressive discounting on rates was the hair-trigger reaction to fearful consumers who had a crisis of confidence. The current economic storm is again testing the mettle of those who make their money in travel. Several telling trends have emerged: while consumers still yearn to travel, they’re doing it on their own terms, forcing the hand of the industry to deliver on brand promises and pricing. Specifically, length of stay has shortened and last minute bookings are the new norm.

The booking window has never been this small, it’s unprecedented. The consumer is waiting until the last possible moment to make the buying decision and the indicators we used to rely on to predict travel patterns, are now virtually gone. Consumers are weighing up purchases, comparing discounts and value added offers to find the best fit, often surfing online for final sell-offs. Across the board, the industry is seeing bookings that are made just days ahead, instead of the usual weeks or months.

But with consumers skittish about spending, they’re also relying heavily on their networks to make purchasing choices. The savvy consumer is doing their own research, much of it online, surveying sites like Trip Advisor and travel blogs for personal accounts of vacation experiences used to assist in the decision making process. Social media sites, Twitter and Facebook, have revolutionised the way the world connects and travellers are also looking to these online communities for advice and opinions in record numbers.

It’s definitely a whole new set of rules we haven’t dealt with to this degree before. But while we know there are challenges, there also lies great opportunity to really engage with the consumer like never before. It’s no longer just us talking brand, brand, brand. We have to listen, learn and respond.

Cayman Islands is well positioned to weather the storm. Having shifted the tourism marketing strategy in recent years to attract a more affluent consumer, the destination is staying the course with a message that continues to resonate with smart and sophisticated travellers. We know that price is a real factor right now but instead of the ‘slash and burn’ mentality that many resorted to after 9/11, we are focused on a value added message that will keep the brand essence intact, even after the smoke clears.

The destination has worked closely with the local tourism sector to create compelling value added offers and then employs its network of offices and agency partners around the world to get the word out via marketing and sales initiatives, social media, advertising and public relations outreach. The tourism mandate has also included tapping the burgeoning family travel and romance/honeymoon markets, which industry experts conclude, are still showing signs of growth despite the economy.

The Ministry and Department of Tourism recently launched Skate Cayman, a summer skateboarding camp that is the first-of-its-kind in the Caribbean. Held at the Black Pearl Skate and Surf Park, the camp offers kids a once in a lifetime chance to learn from, and skate with, some of the sport’s top athletes. Adding to annual island offerings like Sea School that appeal to younger children, Skate Cayman is designed to attract families with older children who are looking for an action-packed summer getaway. While summer is typically a softer season for sun destination travel, programmes like this year’s Skate Cayman, and last year’s Sea School with Diego, a popular children’s cartoon character, are intended to boost visitor arrivals and attract families who are eager to travel while their children are out of school. Coupled with a comprehensive ‘Kid’s Fly, Eat, Stay and Play Free’ programme put together with the tourism private sector and the national carrier, Cayman Airways, the destination is making it easier for families to book the Cayman Islands for their summer vacation.

Additionally, the Department of Tourism is appealing to the family market by highlighting Cayman’s wide array of rental properties. Staying in a condominium or villa on vacation affords the visitor with a cost-effective and unique holiday experience, often helping offset airfare prices so the entire family can enjoy a holiday together. A new sitelet called ‘Your Cayman Islands’, now accessible through the www.caymanislands.ky website, assists travellers in booking a vacation at a rental property on one of the three islands. Consumers can view property features, amenities, maps, promotions and compare prices. Each listing also includes contact information and a link to the property’s web site for booking purposes.

Cayman has also made great strides in carving out a share of the romance market. Despite a lacklustre economy, brides and grooms are not about to give up on their special day and thus romance continues to show buoyancy, with many experts calling it “the only recession proof market”. Grand Cayman recently played host to Engage 09: something blue, a luxury wedding symposium, which attracted some of the biggest names in the wedding industry including Darcy Miller, Editorial Director of Martha Stewart Weddings, Preston Bailey of Preston Bailey Designs, Millie Bratten, Editor-in-Chief of Brides Magazine, Sylvia Weinstock, celebrity wedding cake designer and many more. The summit, presented by the Department of Tourism and Engaging Concepts, an expert consultancy to the wedding and honeymoon business, provided a unique opportunity to showcase the destination to over 160 premium wedding planners from around the world. The Department of Tourism has worked closely with Engaging Concepts over the last several years on this event, and others, resulting in the destination having increased its share of the lucrative weddings, honeymoons and romance market.

The development of on island events like Engage, Skate Cayman, Cayman Cookout and others have been a deliberate strategy used to position Cayman as a unique getaway. Sun destinations run the risk of being viewed as ‘one and the same’, so events that showcase the point of difference not only serve to attract visitors, but provide an opportunity to raise awareness for what makes a Caribbean destination exceptional. Scott says ensuring a quality experience for every visitor is also paramount in this economy.

We need to deliver on our brand promise every single time. Consumers are becoming more and more discerning. We can’t afford to disappoint new visitors and we have to maintain our loyal base. It’s much harder to win back a client than keep them happy.

The local tourism sector has risen to the occasion by delivering on the quality experience and customer service that a discriminating traveller expects. Reward programmes and loyalty campaigns are being employed by many hoteliers. From spa credits to free meals and room upgrades, the industry is sweetening the offer whenever possible. Additionally, numerous industry partners have stepped up to greener tourism practices, an initiative that has proven to resonate with today’s knowledgeable and conscientious traveller.

Managing customer relationships and delivering value are top priorities for the industry, and this will continue even when blue skies return. While we know there will be better days ahead for tourism, the credit crunch has forever left an imprint on how consumers feel about money and how they choose to spend it. That’s not going to go away overnight.

While the travel industry will continue to be a buyer’s market for the foreseeable future, it’s likely that travel patterns such as longer booking windows will return, eventually. But while the industry has seen its share of challenges from terrorist attacks to economic downturns and skyrocketing oil prices, the Department of Tourism remains optimistic.

People have, and will, continue to travel. There is no substitution for a sun holiday and people don’t take vacations purely because of price.

Whatever the future holds for the $7t tourism industry at large remains to be seen. One thing is certain: the Cayman Islands continue to move forward with an aggressive marketing strategy in place that’s designed to see it through the economic storm. Value will continue to be a deliverable the Cayman Islands will have to focus on, not only for stay over visitors but for cruise passengers the destination hopes to lure back. Improving the experience and offering destination defining attractions and events that set Cayman apart will not only build the brand, but assist in drawing a loyal clientele for years to come.