Travel, tourism and multi-destination trips: Caribbean report and Dominican Republic case study
According to ForwardKeys, this summer, the preference to visit “urban” and “shopping” destinations in the Caribbean outpaced “sun and beach” destinations vs. 2022; however, many travelers are eyeing the Caribbean this fall – especially with better flight connections available
Even though global international travel was still down 31% vs. 2019, the Caribbean returned to pre-pandemic levels of international visitor arrivals in Q1 2023. The region’s efforts during the pandemic to remain open to visitors while simultaneously remain safe have been described as world-class.
The latest air ticketing data analysis by ForwardKeys predicts significant growth in the Caribbean for Q4 of this year. Popular destinations like the Dominican Republic, the US Virgin Islands and Curacao are expected to experience continued growth in international arrivals, with growth rates of 54%, 39% and 31%, respectively. Also, Jamaica and the Bahamas have potential to boost their performance by improving long-haul connectivity with source markets in Europe.
Data shows in comparison to the same period in 2019, the overall Caribbean inbound travel is expected to increase by 15%.
According to ForwardKeys, while couples still make up the largest group size in the Caribbean at 43%, group travel (over 10 people) is making a comeback with a rebound of 39% vs. 2019. This type of travel is rebounding strongest in the Dominican Republic (+100%), Sint Maarten (+41%) and Aruba (+39%) and being driven by travelers from the United States, Canada and the United Kingdom.
The United States and Canada make up the most bookings to the region, with Canada being the top-growing origin market for premium cabin travelers
Also worth noting, the United States and Canada make up the most bookings to the region, with Canada being the top growing origin market for premium cabin travelers. As shared in a recent press release, Juan A. Gomez, Head of Market Intelligence at ForwardKeys, comments, “Looking at the destinations visited by affluent travelers originating in Canada, we can see that they are mostly traveling to the Dominican Republic, Cuba and Jamaica. And not only are more high-end travelers arriving from Canada, but they are also embarking on more stays of 14 nights or more (+75%), when traveling to the Caribbean, which opens the door to multi-destination trips.”
Airlines that have launched new routes to the Caribbean include Euroairlines (from Colombia, Mexico, El Salvador, Guatemala, Costa Rica and more), Arajet and Sky Airline; ForwardKeys calls Latin America the next origin source market to watch
Seat capacity and air connectivity
On the flight front, the continued uptick in seat capacity has been encouraging. There has not only been an increase in the number of seats on established routes, but also in the number of new routes launched by multiple airlines.
Notably, Danish aircraft operator FlexFlight has increased seat capacity by 720% on established routes from Colombia, Mexico, El Salvador and Guatemala. Copa Airlines, Colombia flagship airline Avianca and low-cost airline Wingo have also increased capacity. Airlines that have launched new routes to the Caribbean include Euroairlines (from Colombia, Mexico, El Salvador, Guatemala, Costa Rica and more), Arajet (from Colombia, Mexico, El Salvador, Guatemala, Costa Rica and more) and Sky Airline (from Peru).
ForwardKeys calls Latin America the next origin source market to watch. Although it represents only 13% of all bookings, it is growing quickly with bookings +65% ahead of 2019 levels. A rise in the number of connections out of Latin America serves as a major opportunity. “Latin American countries have been boosting capacity to the Caribbean. Colombia (+157%), Brazil (+187%) and Mexico (+55%) are all showing strong growth and audiences that are interested in a Caribbean holiday,” adds Gomez.
The company points out that this summer, the preference to visit “urban” destinations and “shopping” destinations outpaced “sun and beach” destinations vs. 2022. However, it is noted that many travelers are seeking sunshine in the Caribbean this fall – especially with better flight connections available.
ForwardKeys’ Dominican Republic case study
ForwardKeys says the Dominican Republic stands out among its competitors due to its excellent connectivity with both intra and extra-regional airline carriers, which contributes to its strong performance.
As reported in a case study of the Dominican Republic in ForwardKeys’ 2023 South America & the Caribbean Trends Report, during the pandemic the country’s Ministry of Tourism faced the issue of identifying untapped direct air routes allowing tourists immediate arrival in Dominican Republic without any stopovers. Focusing on destination marketing during the pandemic, the study shows that “the ministry had to concentrate its budget and efforts on markets with a focus on audiences who were still flying despite COVID restrictions.”
According to the case study, with the support of ForwardKeys’ historical data revealing the importance of the United States as a source market for the Dominican Republic, the Ministry of Tourism’s Intelligence Unit made the country its main focus. Plus, the study notes that forward-looking ticketing data also showed that other typically important source markets were still not yielding high ticket prices due to COVID lockdowns. “To guide its business intelligence strategy, the Ministry of Tourism used the information reported in the segmentation of the number of inbound gateways by trip origin city in flights to the Dominican Republic,” it reads.
As quoted in the study, Enrique Penson, Intelligence Unit of Dominican Republic – Ministry of Tourism, says, “We identified which trip origin cities in the US had an average of more than 20 – 30% of passengers traveling to the Domincan Republic via a stopover and were among the top 20 tourism-emitting cites for the Domincan Republic.”
To reinforce its newly shaping marketing strategy, the ministry closely tracked competitors. The result: sister city arrangements with the newly discovered top tourism-connecting cities, which are set to improve tourism and trade relations. Across the industry, partners are promoting the application of data-supported decisions to find ways of generating tourism.
“Now, the whole sector will pursue this new focus on the key US cities for transfer flights and improve connectivity via new routes identified through ForwardKeys data,” adds Penson.
As the world moves on from COVID and people regain confidence in traveling safely, ForwardKeys tells Global Travel Retail Magazine it is possible that some elements of the revenge travel trend – like a preference for unique experiences and luxury travel – might continue beyond the immediate post-pandemic period. “Nevertheless, economic factors such as the rising cost of living and falling disposable income will undoubtedly influence the trajectory and sustainability of the revenge travel phenomenon,” it says.
Dona Regis-Prosper, Secretary General & Chief Executive Officer, Caribbean Tourism Organization; she will make history as the first woman to assume the leadership position
Caribbean Tourism Organization appointment
Providing a different perspective, Caribbean Tourism Organization’s (CTO) monthly statistics for August revealed that all five destinations reporting international tourist visits for the January to July period experienced varying growth – between 13.4% in Aruba and 59.3% in Trinidad & Tobago – compared to their performances for the same period in 2022.
In other news, CTO appointed Dona Regis-Prosper as Secretary General & Chief Executive Officer in July. Born in St. Lucia, Regis-Prosper will make history as the first woman to assume the leadership position. As Secretary General, she will lead the collaboration with over two dozen member countries and territories and work closely with partners and stakeholders to advance the organization’s mission.
At a press conference, held on September 8 in the Cayman Islands, Regis-Prosper presented her initial plans for CTO and said, “I am deeply honored to step into the role of Secretary General of the Caribbean Tourism Organization. The Caribbean is a dynamic region with immense tourism potential. With the support of my Chairmanship and the CTO team, I am confident that we will implement the best strategy for leveraging our Caribbean brand for the benefit and greater good of the people of the Caribbean region.”
Caribbean Tourism Organization will host the 10th Tourism Human Resources Conference on October 30 – November 1 in Nevis under the theme: Navigating the Next Phase of Caribbean Tourism.
