TMR Outlook on The Caribbean A Survey of Travel Advisors

Transcription

1 TMR Outlook on The Caribbean A Survey of Travel Advisors

2 HARVEST CAYE WHERE SEEING IS BELIZE-ING. Harvest Caye is The Caribbean s premier resort-style destination in Belize offering your clients a day filled with high-flying exhilaration and a variety of tropical experiences. Only Norwegian offers this exciting port of call from Miami, New Orleans, New York, Port Canaveral and Tampa. HARVEST CAYE HIGHLIGHTS: Expansive 15,000-square-foot pool featuring a swim-up bar The Flighthouse A 136-foot tall world of fun featuring 3,000 feet of zip lines, suspension bridges, free fall jumps and a ropes course A seven-acre pristine beach with 11 private villas equipped with air condition, private restroom, indoor/outdoor shower, hammocks and more Four à la carte dining and bar venues including LandShark Bar & Grill by Margaritaville Wildlife conservation exhibits including a Butterfly Garden, Aviary and Educational Center 2018 NCL Corporation Ships Registry: BAHAMAS and USA /18 Flighthouse Zipline Luxury Beach Villa Paddle Boarding

3 letter from the publisher Dear Reader, With over 30 million annual visitors and over 30 countries and territories, the Caribbean including Mexico s Caribbean, the Bahamas and Bermuda remains a key market for U.S. and Canadian travel agents, who are selling a wide variety of products, segments and niches. While its principal draw is primarily sun and fun, in this report Travel Market Report uncovers what destinations and types of travel are most popular with your clients and which segments, products, and places hold the most potential both by land and sea. And of course, we wanted to see what s standing in the way of growth and as we expected, the insights directly from the agents on the front line are worth their weight in gold. It s something agent readers will find particularly helpful as you develop your marketing plans for the Caribbean, while suppliers will find this report a literal treasure trove of opportunities to boost visitors and revenues. As you might have guessed, we also wanted to find out what impact the hurricanes of 2017 had on your business and how the aftermath will impact the coming winter season. This report includes both total responses and responses relevant specifically to agents who have a mainly Canadian customer basis. However, instead of two separate surveys, we ve chosen to spotlight and highlight the Canadian results where they diverge in a meaningful way from the overall responses. 3 TMR Outlook on THE CARIBBEAN One major finding that hotels and tourist boards will want to keep in mind is 73% of travel agents told us they mainly book land vacations to the Caribbean through tour operators. These numbers tell us the role of the travel agent in selling the Caribbean is critical, and hotels and destination promotion boards might want to consider paying more attention to them. It s clear agency business is coming through the tour operator chain and there is presently no easy way to identify top-producing agents except anecdotally or via consortia reports. Lastly, we wanted to see what both suppliers and tourist boards can do to help agents sell more. Sincerely, Anne Marie Moebes EVP and Publisher

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5 table of contents Chart 1 Who answered our survey? TMR Outlook on THE CARIBBEAN Chart 2 Where are you clients located?...8 Chart 3 Is there a Caribbean Specialist in your agency?...9 Chart 4 What types of products are agents selling the most?...10 Chart 5 Which niches and segments are agents selling?...11 Chart 6 Which products have the most growth potential?...12 Advertorial: Regent Seven Seas Cruises...13 Advertorial: Norwegian Cruise Line Advertorial: Oceania Cruises Chart 7 Which segments and niches have the most growth potential? Chart 8 Which destinations do you sell most frequently? Chart 9 How do you book land-based vacations to the Caribbean region? Chart 10 How were your clients Caribbean vacations impacted by last year s hurricanes? Chart 11 What s stopping agents from selling the Caribbean effectively?...22 Chart 12 What are you biggest concerns about selling the Caribbean for the peak season?...24 Chart 13 How can suppliers and tourist boards help agents sell more of the Caribbean?...25 Executive Summary...27

6 INTRODUCTION 6 TMR outlook on the caribbean Over 850 full-time and highly-productive travel agents responded when Travel Market Report asked its readers to talk Caribbean, from how the hurricanes impacted travel last year to how they view the upcoming winter season, what s hot, what s not, and where there are big growth opportunities. Travel Market Report s Outlook on the Caribbean provides suppliers, destination promoters, and retail agents with a road map on where to focus. We think the first and perhaps biggest takeaway is nearly 80% of travel agents responding said they or somebody in their office specializes in some aspect of selling the Caribbean, and even agents who didn t formally specialize told us they still sell the Caribbean region as a popular destination. As a note, for this survey we refer to the Caribbean to include Mexico s Eastern shore resorts, the Northern South American region and The Bahamas and Bermuda. The investment agents have made in learning about the ins and outs of the region provide Caribbean marketers the opportunity to leverage that knowledge, which is multiplied by the advisors reach to current clients and new clients they gain via referrals. In this report, we are providing the overall results and a segment representing those agents who told us their clients are predominantly in Canada. You might note that we asked agents where their clients are based instead of where they (the agent) is located, recognition that today an agent s location is not as relevant because clients are no longer just in a small regional footprint. Today s clients are coming through referrals and social media marketing, meaning they stem from across the country or even outside the United States. While cruise line executives and those from land-based suppliers may debate how the two segments work together, TMR s Caribbean Outlook underscores from the travel agent s seat that both are critical in selling the region. Core product segments such as cruises, family vacations and family and friends groups, adultsonly resorts, all-inclusive resorts, romantic vacations, and destination weddings are not only key revenue producers, agents also see those areas as providing the most future growth opportunities. Although it s not unusual to see marketers trying to promote segments such as festivals and carnivals, yacht vacations, and off-the-beaten track destinations, agents see the biggest opportunity in the areas they are currently having success with. A number of agents told us there are only so many places you can focus, so they want to focus on what works and what they know their clients want to buy. Perhaps the best news is that agents are reasonably bullish on the upcoming high season with worries of hurricanes mainly in the rear view mirror.

7 Who answered our survey? Over 850 full-time travel agents responded to the survey. The only incentive was a lottery for two $250 gift cards and the survey remained open for seven days. Agents who said they did not sell vacation travel to the Caribbean region in the previous year (only 4%) were exited from the survey, meaning the answers you are seeing reflect agents who are Caribbean sellers 96% of those who responded. The survey was sent to travel agent readers of Travel Market Report s daily e-newsletter. The respondent profile was full-time travel agents who average over $1.5 million in leisure sales annually, high producers, meaning their answers will hold weight with both suppliers and tourist boards. We asked respondents to tell us what their job functions are, and we allowed managers and owners to specify if they also considered themselves advisors, so while 65% of respondents described their position as either owner or manager, 70% also chose agent/advisor/counselor, meaning answers exceeded 100%. The survey represents the largest sampling of travel agent opinions regarding travel to the Caribbean we are aware of. 7 TMR Outlook on THE CARIBBEAN Which best describes your position? If you hold multiple positions, please check all that apply. Owner 41% Manager 24% Agent/Advisor/Counselor 70% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CHART 1 7

8 Where are your clients located? Thanks to Steve Jobs, Bill Gates, Mark Zuckerberg, the folks who invented Instagram and whoever gets credit for inventing , today s travel agents find their customer books aren t from just their local footprints but often halfway across the country or even across the border. Retail agents principal source of new customers is referrals, so while one customer may be down the block, his aunt who he referred to you is 1,000 miles away. Agents today are often on the road scouting new hotels and experiences to recommend to their clients, so the image of an agent sitting in a poster-filled office tapping on a keyboard and staring into a green blinking screen is so last century. For these reasons, instead of asking respondents where they are based, we asked agents where their clients are predominantly located, again allowing agents to select from multiple areas: Eastern United States Midwestern United States Western United States Eastern Canada Western Canada Moreover, we wanted to see if there were any significant differences in how agents with Western-based clients answered our questions as well as variances between those agents who mainly serve Canadian consumers versus Americans. You can probably guess that the popularity of Cuba was one of the variances. Agents who said their clients were located in the Eastern U.S. represented 51% of respondents. Agents who told us their clients were predominantly Canadians represented 25% of answers. Still, the U.S. Midwest, West, and Western Canada were well represented with 60% of respondents, meaning the sample provides a very broad snapshot of how the Caribbean is viewed by consumers across North America. Overall, 67% of agents said they had clients located in the Eastern U.S. or Eastern Canada while 32% said they sell travel for clients who live in the Western U.S. or Western Canada. Where are your clients located predominantly? If you are the owner/manager, please answer on behalf of the entire agency. (Please check all that apply) Eastern United States 51% Midwestern United States 29% Western United States 23% Eastern Canada 16% Western Canada 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 8 CHART 2

9 Is there a Caribbean Specialist in your agency? Overall 96% of agents who responded to our survey said they had sold travel to the Caribbean in the previous 12 months. One thing our survey revealed is if Caribbean suppliers and promoters have any disappointment with sales, it is not for lack of focus by travel agents. Nearly 80% of respondents said somebody in their office or themselves specializes in selling all or parts of the Caribbean. The separation between the overall sample and Canadian-focused agents was narrow at 79%-76%. What this means is that agents from both Canada and the United States have made a commitment to the Caribbean region through various training programs to become experts in selling the region. Even agents who said they don t specialize in the region per se told us they still sell the Caribbean regularly. Later on we discuss what agents think suppliers can do that will help them sell even more travel, but suppliers should take note that through retail travel advisors they have a large sales force of sellers who have already made a commitment to the region and who have reach across North America. 9 TMR Outlook on THE CARIBBEAN Does anyone in your office, including yourself, specialize in selling any or all of the following: the Caribbean, the Bahamas, the Mexican Caribbean and/or Bermuda? Yes 79% No 14% Not Sure 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CHART 3 9

10 What types of products are agents selling the most? Cruises, adults-only resorts and luxury all-inclusive resorts are the go-to products for agents when it comes to the Caribbean. While 72% of advisors say they regularly sell cruises, that jumps to 93% when we combine regularly and sometimes. While 66% of agents say they regularly sell adults-only resorts, combining that with sometimes brings that total to 95%, with luxury all-inclusives not far behind at 58%/86%. Non-luxury all-inclusives (78%), non-all-inclusive luxury resorts (75%) and non all-inclusive, non-luxury resorts (73%) are also frequently on the shelves of the travel agents who we surveyed. Two products agents don t book as frequently are villa and yacht rentals, although as you will see later on agents believe the villa segment has growth opportunities. How frequently do you sell the following vacation travel products to the Caribbean, the Bahamas, the Mexican Caribbean and/or Bermuda? Please choose an answer for each variation type based on the frequency of sales. If you are an owner/manager, please answer for your entire agency. All Responses Regularly Sometimes Rarely Never Cruise Ship 72% 21% 5% 2% Adults-Only Resorts 66% 29% 4% 1% Luxury All-Inclusive Resorts 58% 28% 9% 4% Non-Luxury All-Inclusive Resorts 44% 34% 15% 6% Luxury Hotels and Resorts (not all-inclusive) 37% 38% 20% 5% Hotels and Resorts (not all-inclusive, 4 stars or less) 33% 40% 22% 5% Villa Rentals 10% 30% 41% 19% Sailboat or Motor Yacht 3% 10% 41% 46% 10 CHART 4

11 Which niches and segments are travel agents selling the most? Family vacations with the immediate family (93% regularly/sometimes), romantic vacations (90%), friend/extended family groups (86%) and honeymoon (82%) are the top segments that agents match to various Caribbean travel products, saying they book them regularly or sometimes. Sixty-five percent of agents say they are booking soft adventure travel to the Caribbean while 53% are arranging destination weddings regularly or sometimes. On that basis, 41% of agents book clients for Caribbean wellness or spa travel with 39% pointing to Cuba. While there is often a lot of marketing focus on festivals and LGBT, most agents say they rarely or never book those types of trips to the Caribbean. How frequently do you sell the following segments of vacation travel to the Caribbean, the Bahamas, the Mexican Caribbean and/or Bermuda? Please choose an answer for each variation type based on the frequency of sales. If you are an owner/manager, please answer for your entire agency. All Responses Regularly Sometimes Rarely Never 11 TMR Outlook on THE CARIBBEAN Family Vacations with immediate/nuclear family only 67% 26% 6% 1% Romantic Vacations 56% 34% 9% 1% Honeymoons 49% 33% 14% 5% Multi-generational family and Friends/groups 44% 42% 12% 1% Other 29% 26% 20% 26% Soft Adventure (snorkel, scuba, hiking) 23% 42% 28% 7% Destination Weddings 23% 30% 29% 18% Cuba 17% 22% 27% 34% Wellness/Spa Vacations 11% 30% 38% 21% Gaming/Casino 9% 28% 33% 30% LGBT 5% 21% 38% 35% Festivals and Carnivals 4% 14% 46% 36% CHART 5 11

12 Which products have the most growth potential? With the exception of selling yacht charters, agents are bullish on a wide variety of products where they believe there is lots of growth potential. For example, while 72% of agents regularly sell cruises to the Caribbean, 57% say cruises have lots of growth potential. Adults-only resorts (54%) and luxury all-inclusives (53%) also have the potential for more growth as do luxury hotels and resorts (38%), non-luxury all-inclusives (37%) and even villa rentals (32%), a segment many agents aren t particularly active in. Which product types to the Caribbean do you see the biggest opportunities for growth? Please provide an answer for each category. Lots of Growth Potential Some Growth Potential None or Limited Growth Potential Cruise Ship 57% 32% 10% Adults-Only Resorts 54% 39% 7% Luxury All-Inclusive Resorts 53% 39% 9% Luxury Hotels and Resorts 38% 49% 13% Non-Luxury All-Inclusive Resorts 37% 47% 15% Villa Rentals 32% 48% 20% Non All-Inclusive Hotels and Resorts 29% 50% 21% Sailboat or Motor Yacht 16% 42% 42% 12 CHART 6

13 Beyond Expectation This Is Not Your Ordinary Caribbean Cruise While other cruise ships arrive to the most frequented Caribbean ports with thousands of travelers, the all-suite ships of Regent Seven Seas Cruises offer a refreshing alternative: a perfectly intimate sailing to off-the-beaten-path locations with only a few hundred guests, never a line or a wait, and a crew that is dedicated to delivering highly-personalized service. This is the world s most inclusive luxury experience, where your client s cruise fare covers virtually everything, from all-suite accommodations, roundtrip air, unlimited shore excursions, complimentary WiFi, highly personalized service, acclaimed cuisine, fine wines and spirits, gratuities, and much more. On your client s voyage, every detail is taken care of so that your client gets the most out of their vacation with greater connection, enjoyment and enrichment. All-Suite, All-Balcony The ultimate way to experience the very best of the Caribbean is aboard the allsuite, all-balcony Seven Seas Voyager. She is exceedingly luxurious, spaciously intimate and the perfect way to explore this stunning region, as she is just the right size to reach those lesser-traveled shores. Fresh from her complete and total refurbishment, Seven Seas Voyager boasts a refreshed elegant style in her restaurants and lounges, as well as luxurious new décor across her 350 suites each with spacious balconies. Among her four exquisite dining options is the new modern French restaurant Chartreuse. Exquisite Cuisine Every specialty restaurant on board Seven Seas Voyager requires nothing more than a reservation. This enhances your client s unique onboard ambiance, as each guest can choose to join new friends for dinner and without concern about dividing the check at the end of a meal. Your client may also take advantage of 24-hour Room Service and not be penalized with a service fee. Everything from fine wines and expertly-made cocktails to desserts and exquisite dishes is included. Explore the Shores The best way to experience the beauty of the region is to embark on as many shoreside experiences as time and your client s penchant for adventure allow. From Tortola, your clients can cruise over to White Bay on nearby Jost Van Dyke, where their adventure in paradise begins in earnest, as its remote location requires them to plunge into the crystal-clear waters to walk the sugar-white shores. And even if they prefer to spend their days with a more relaxed approach, they will find complimentary shore excursions exist to match everyone s taste. Whether walking along the powdery, white sand beaches of the private island of Great Stirrup Cay, feeling the warm Bahamian sun on their skin, or snorkeling in crystalclear waters teaming with tropical fish, your clients will be free to enjoy the best life has to offer. Encourage them to explore at their own pace, appreciating and enjoying every idyllic shore with the ease of only having to unpack once. This is cruising as it was meant to be a sumptuous and very personal experience where every wish, every whim and every want are met with gratifying luxuries, satisfying comfort and the romance of traveling to the world s most exotic destinations. Beyond the Caribbean Regent Seven Seas Cruises offers an intimate and luxurious all-suite fleet hosting between 490 and 750 pampered guests, which allows each vessel access to more unique and fascinating ports that larger vessels simply cannot visit. Delight your clients with voyage itineraries that visit the world s most extraordinary destinations Asia, Australia, Alaska, Europe and South America that spoil them with a wealth of alluring vistas and memorable experiences across more than 450 destinations worldwide. They really can have it all Wherever your client chooses to sail aboard Regent Seven Seas Cruises, they will be sure to enjoy the world s most inclusive luxury experience. Each voyage promises an unforgettable journey to the world s greatest destinations, where everything is included, without exception and without compromise. 13 TMR Outlook on THE CARIBBEAN

14 14 TMR outlook on the caribbean When the Caribbean Calls Travel Agents Respond With Cruise Bookings As winter approaches, the warm waters, sandy beaches, and breathtaking landscapes of the Caribbean can t help but beckon. If you close your eyes, you can almost hear the waves as they gently lap against the shore and see the sun glisten off the water in the distance. There is no place quite like the Caribbean, which is why it was no surprise that when travel agents were surveyed for this Outlook and asked what destinations and experiences they sell most frequently to the region, ever-so-easy cruises topped the list. An impressive 72% of respondents said they regularly sell cruises to the Caribbean, a strong testament that cruising is a go-to product for travel advisors. And while options abound for your clients in terms of land-based vacations here, when it comes to sailing the Caribbean, it s clear one cruise line continues to surpass its competitors with ships, ports, and destinations in the region. For that reason and many others, the World Travel Awards has named Norwegian Cruise Line as the Caribbean s Leading Cruise Line for the past five consecutive years for its excellence in cruising. Consider some of the highlights that support this prestigious recognition: Norwegian currently has 143 itineraries that include calling to ports in the Caribbean, 119 of which are solely focused on Caribbean sailings now through its 2020 season. The line offers cruises to 32 destinations in the region from Miami, Orlando (Port Canaveral), Tampa, New Orleans, New York, Boston, and San Juan, Puerto Rico. Norwegian s allegiance to the Caribbean is steadfast and growing. As one of the cruise line s most popular destinations, the company has committed 13 of its award-winning ships of its soon-to-be 17-ship fleet to the region from now through Norwegian s Latest & Greatest Among the Caribbean fleet is Norwegian s two largest and newest ships in the region Norwegian Bliss and Norwegian Encore, the latter of which will be launched in November of With all the media buzz that has surrounded it, Norwegian Bliss has certainly sailed into the hearts of consumers and agents alike. As the newest addition to its fleet, and we might add, the most successfully launched ship in the company s history, Norwegian Bliss will be sailing seven-day Caribbean itineraries from Miami beginning November 2018 for her winter season with calls to the Bahamas as well as both the U.S. and British Virgin Islands. Highlights of Norwegian Bliss include a two-story Horizon Lounge, exclusive to guests in The Haven, a private ship-within-a-ship concept featuring a dedicated restaurant, pool, sun deck, concierge and other dedicated perks. The 180-degree indoor Observation Lounge offers 20,000-square-feet of intimate lounge space, offering expansive ocean and Caribbean views. Complete with the longest go-kart track at sea and the only open-air laser tag arena in North America, Norwegian Bliss is a virtual magnet for families seeking fun-filled memories and adventure. And with new restaurant

15 concepts like Texas-style barbecue and the Tony-Award - winning show, Jersey Boys, Norwegian Bliss is sure to redefine the idea of Caribbean cruising. Norwegian Encore, which will be entering the fleet later in 2019, will homeport in Miami and sail weekly seven-day cruises to the U.S. and British Virgin Islands, as well as San Juan, Puerto Rico for its inaugural season. The ship is the last of the Breakaway Plus-class ships and is a sister ship to both Norwegian Bliss and Norwegian Joy. Raising the bar The past year-and-a-half has been busy for Norwegian, as the company put five of its ships through extensive dry-dock renovations as part of its Norwegian Edge program, which is dedicated to raising the brand s standard of excellence through product upgrades and enhancements for the overall guest experience. Norwegian Sun, Star, Breakaway, Jade and Pearl, which will be routinely calling to the Caribbean, have each been modernized, allowing Norwegian to have one of the youngest and most modern fleets in the region. Destinations on the radar: Havana, Great Stirrup Cay & Harvest Caye As the curiosity continues to grow for travel to Cuba, Norwegian is delivering your clients more options than any other cruise line. As the only all-inclusive contemporary line cruising to Cuba, Norwegian has fully integrated calls to Havana in 18 of the itineraries that involve the Caribbean. But what s even more exciting is the opportunity for your clients to experience what happens in this destination when the sun goes down. Norwegian currently has two ships that overnight in Havana, allowing guests time to truly connect with the culture of the city, island, and the people. Ships sailing here include Norwegian Sky, which sails out of Miami to Havana and Great Stirrup Cay, Norwegian s private, resort-style island in the Bahamas; and Norwegian Sun, which sails from Port Canaveral to Key West and Havana (the first and only ship that sails from this port to Cuba). Both ships are scheduled to return to cruising to Cuba in spring of 2019 and your clients will be happy to learn that all itineraries that include an overnight in Havana are all-inclusive (that means free open bar!). Before other cruise lines followed suit, Norwegian was the first to purchase its own private island in The 250-acre island of Great Stirrup Cay is a destination in its own right and for years has been one of the leading itineraries for Caribbean cruisers, inspiring the entire cruise industry to invest in private resort-style experiences in locations all over the world. Today, Norwegian has invested $25 million to preserve and enhance the island and is currently renovating and developing new areas, buildings and excursions to further enrich the guest experience. Some of the key attractions that are entertaining guests on the island include: snorkeling in the Underwater Sculpture Garden, parasailing, kayaking, paddle boarding, guided jet ski tours, and last but certainly not least, Stingray City, a oneof-a-kind experience where guests can feed, pet, and play with stingrays. Building on the success of Great Stirrup Cay, Norwegian opened its second resort-style experience, Harvest Caye, in Southern Belize in November Just 60 miles south of Belize City, the destination is another premier Caribbean island destination and was even voted Best New Cruise Port in 2017 by Porthole Magazine. Harvest Caye features an expansive 15,000 square-foot pool with a swim-up bar, salt water lagoon for water sports, exclusive seven-acre beach and exciting shore excursions ranging from zip lining across the island from the 136-foot Flighthouse, to snorkeling the world s second largest barrier reef. The island is also home to a wildlife sanctuary, under the care of a certified onsite Naturalist. Commitment to the Caribbean Norwegian s history and future are tied to the Caribbean. It gave birth to the idea of modern day cruising as a way to vacation and not just a means of transportation when they launched the first weekly cruises to the Caribbean from Miami in December Fifty-one years later they continue to support the region by expanding cruising to new and existing locations and bringing the majority of their fleet, including some of their newest and most innovative ships to the island nations. In November 2019, they ll introduce their newest ship, Norwegian Encore, in Miami with cruises to the Caribbean, and in December 2019, they will make history again when Norwegian Epic sails from San Juan, Puerto Rico as the largest cruise ship to homeport there. It is clear that Norwegian Cruise Line recognizes the attractiveness of the region for cruising and its potential for continued growth in the future. 15 TMR Outlook on THE CARIBBEAN Norwegian ships that offer cruises to the Caribbean Norwegian Encore (debuting November 2019) Norwegian Bliss Norwegian Escape Norwegian Jade Norwegian Getaway Norwegian Breakaway Norwegian Epic Norwegian Gem Norwegian Sky Norwegian Pearl Norwegian Dawn Norwegian Star Norwegian Sun

16 Luxury & Cuisine in the Tropics: Aboard Oceania Cruises 16 TMR outlook on the caribbean Dreaming about a luxury escape to tropical islands where palm-lined beaches and impossibly blue waters wash away the day-to-day routine? Drenched in the sun s radiant rays, the tropics promise exotic adventures ashore and carefree days at sea. Aboard Oceania Cruises, your days will easily settle into island time as you enjoy the luxurious ambiance, enriching onboard activities and The Finest Cuisine at Sea. Indulge in a signature treatment at the Canyon Ranch SpaClub, partake in a wine tasting with an expert sommelier or simply soak up the sun as you gaze out on the ever-changing panoramas from the decks. However you choose to spend your days, the dedicated staff will ensure you are pampered and perfectly at home during your voyage. Oceania Cruises offers an array of tropical getaways that chase the sun throughout the seasons. Carefree Caribbean An intimate, luxurious ship is the perfect match for boutique ports, and ships of Oceania Cruises deliver with grace and elegance in the Caribbean as well. In chic Gustavia, soak up the French influence in the cafés, bistros and wine shops lining the harbor. Behold St. Lucia s impressive Pitons, two towering volcanic spires recognized as a UNESCO World Heritage site. In the yachting paradise of Antigua, sail along the coast in a catamaran, or perhaps travel off the beaten path while in Tortola to a stunning biodynamic farm on one of Oceania Cruises popular Culinary Discovery Tours. In the Caribbean, it s all possible. The best part? The perfect poolside lounge chair and refreshing tropical drink are always waiting for you back on board. The Finest Cuisine at Sea Sailing in the Caribbean offers the perfect opportunity to sample flavorful islandstyle cuisine in an array of enchanting locales. Sailing to tropical destinations aboard Oceania Cruises means guests will enjoy equally fresh and exquisite cuisine on board the ship. Inspired by the legendary Master Chef Jacques Pépin, who is Executive Culinary Director for Oceania Cruises, the talented chefs create culinary masterpieces from premium artisanal ingredients. From Continental classics in the Grand Dining Room to bold, contemporary Asian dishes at Red Ginger on board Marina, Riviera and Sirena, the options are nearly endless. Oceania Cruises culinary offerings are always infused with fresh, local ingredients from the garden and sea wherever you are sailing. Enjoy perfectly grilled mahi mahi with coconut as you sail the aquamarine Caribbean, or perhaps savor fresh citrus-infused ceviche as you chart the Pacific Riviera. Regardless of the voyage, an array of culinary delights awaits you. No matter which Oceania Cruises tropical getaway you choose, you re certain to be surrounded by sunshine and luxury as you savor the world with The Finest Cuisine at Sea.

17 Which segments and niches have the most growth potential? For suppliers who want to build their business, agents responding to our survey are enthusiastic about expanding the segments and niches they are already selling or believe they can develop. Perhaps the most interesting point is that while agents see lots of growth potential in wellness (29%), LGBT (30%), soft adventure (34%), and Cuba (35%) segments that aren t on the top of their sales list it s the core segments that they feel have the most potential for even more sales. Some 55% of agents think multi-generational family and friends groups have lots of growth potential followed by family vacations (54%), honeymoons (48%), romantic vacations (47%) and destination weddings (43%). Non-starters, however, were gaming vacations (perhaps because casinos typically have direct programs for high rollers) and festivals and carnivals. Which segments and niches to the Caribbean do you see the most opportunities for growth? Please provide an answer for each category. All Responses Lots of Growth Potential Some Growth Potential None or Limited Growth Potential 17 TMR Outlook on THE CARIBBEAN Multi-gen family and Friends/groups 55% 37% 7% Family Vacations 54% 39% 7% Honeymoons 48% 42% 10% Romantic Vacations 47% 45% 8% Destination Weddings 43% 40% 16% Cuba 35% 46% 20% Soft Adventure (snorkel, scuba, hiking) 34% 52% 14% LGBT 30% 48% 23% Wellness/Spa Vacations 29% 52% 19% Off the beaten track islands (require a commuter/turboprop flight for access) 26% 43% 31% Gaming/Casino 14% 46% 41% Festivals and Carnivals 13% 47% 40% CHART 7 17

18 Which destinations do you sell most frequently? Mexico s Caribbean destinations rule the roost in terms of which destinations agents say they sell regularly, taking three of the top four spots in the total sample and three of the top five spots with Canadianfocused agents. Overall, Riviera Maya (71%) led the way, followed by Cancun (67%) and Cozumel (44%). Jamaica took the third spot at 54% followed by 43% of agents who say they regularly sell Nassau in The Bahamas. Turks and Caicos, USVI, St. Lucia, St. Martin/ St. Maarten, Aruba, Cayman Islands and Freeport in The Bahamas each were cited by 20-26% of agents as destinations they sell on a regular basis. Only 16% of all agents said they sell Cuba regularly whereas that number is 55% for agents who have Canadian clients, good for fourth place. A number of agents with West Coast-based clients told us similar products in Hawaii and Mexico s Pacific resorts provide competition that blunts some of the Caribbean s growth potential. Either as a frontline agent speaking about your individual business or as an agency owner/ manager on behalf of all of your employees, please choose an answer for each destination in terms of how frequently you are selling it: All Responses Regularly Sometimes Rarely Never Mexico-Riviera Maya 71% 20% 6% 3% Mexico-Cancun 67% 23% 8% 2% Jamaica 54% 34% 8% 4% Mexico-Cozumel 44% 34% 16% 6% Bahamas-Nassau 43% 37% 14% 6% Turks and Caicos 26% 40% 22% 12% USVI 24% 39% 21% 16% St. Lucia 23% 46% 21% 11% Other 23% 21% 21% 35% St. Martin/St. Maarten 22% 43% 23% 12% Aruba 22% 47% 22% 9% Cayman Islands 21% 43% 24% 12% Bahamas-Freeport 20% 33% 28% 18% Puerto Rico 18% 39% 31% 12% British Virgin Islands 16% 41% 29% 14% Cuba 16% 23% 29% 33% Bermuda 15% 39% 31% 15% Barbados 14% 48% 26% 12% Chart 8 continued on next page 18 CHART 8

19 Which destinations do you sell most frequently? Chart 8 continued All Responses Regularly Sometimes Rarely Never Bahamas-Out Islands 10% 30% 34% 26% St. Kitts 9% 33% 30% 28% Antigua and Barbuda 8% 37% 36% 20% St. Barts 7% 26% 31% 36% 19 TMR Outlook on THE CARIBBEAN Curacao 7% 30% 39% 24% Martinique 7% 25% 37% 32% St. Vincent and the Grenadines 5% 19% 36% 41% Honduras 4% 17% 37% 42% Grenada 3% 21% 39% 37% Anguilla 3% 19% 40% 38% Colombia (Caribbean only) 3% 19% 36% 42% Nevis 3% 15% 31% 51% Haiti 3% 13% 30% 54% Trinidad 2% 14% 36% 48% Guadeloupe 2% 12% 37% 49% Tobaga 2% 9% 35% 55% Nicaragua 1% 10% 30% 59% Montserrat 1% 7% 30% 63% CHART 8 19

20 How do you book land-based vacations to the Caribbean? Agents sell hundreds of millions of dollars in business to the Caribbean each year, however tracking productivity continues to be a challenge. Nearly three-quarters of all agents (73%) said they book Caribbean vacations via tour operators, which means hotels and tourist boards aren t able to see the productivity of individual travel agencies or agents, instead crediting the arrivals to the operators that agents are booking through. Only 7% of agents said they book directly with the hotel by calling, ing or faxing, and even less said they book directly on GDS (5%) or with hotel consolidators, also 5%. Only 2% of agents use hotel websites when it comes to the Caribbean. In this case, Canadian responses were not statistically or significantly different from the overall sample. In Travel Market Report s Luxury Outlook (Page 22, Chart 8), while 79% said they book via wholesalers, 50% said they also use hotel websites and 44% use the GDS. Comparatively, a number of agents told us via their comments that they use multiple channels to make Caribbean bookings, and in this survey we only allowed one answer to the question compared to multiple answers in the TMR Luxury Outlook. Their responses made it clear that when it comes to the Caribbean, tour operators play a dominant role connecting agents to hotels and ground experiences. How do you book land-based vacations to the Caribbean? Through a tour operator 73% Direct with hotel by calling, ing or faxing Direct with hotel by GDS Through a hotel aggregator/consolidator (i.e. Bedsonline or TravelBound) Through an OTA (i.e. Expedia, etc.) Other (please specify) Hotel Website 7% 5% 5% 4% 4% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20 CHART 9

21 How were your clients Caribbean vacations impacted by last year s hurricanes? Over one-third of agents (36%) said last year s hurricanes didn t impact clients simply because they didn t have clients booked to impacted destinations. A similar 36% said clients decided not to travel or delayed travel, however, tourist boards and hotels can thank the 34% of agents who used their knowledge of the region, knowing what islands weren t impacted, and rebooked clients to alternative Caribbean destinations. Nearly one in five (18%) of agents rebooked their clients to non-caribbean destinations while 12% said hurricaneimpacted vacationers were resold onto cruises. Fortythree percent of agents with predominantly Canadian clients said they rebooked them to other Caribbean destinations, the only variation with a statistically significant difference. In comments to us, agents also reaffirmed why consumers see great value in working with travel agents, telling us that by being proactive and constantly monitoring clients travel plans they were able to make sure most trips came off without a hitch. One agent told us that she was able to move a family who was at a resort due to be impacted to another hotel so they could continue on with their vacation. Another counselor said, I m very proactive about orientating my clients about seasonal weather to avoid certain islands. That said, this year was tough, but I was very proactive to rebook ahead of the storms. Thinking back to last year s hurricanes, how were your clients vacations to the Caribbean impacted? (Please check all that apply.) 21 TMR Outlook on THE CARIBBEAN Not impacted-i didn t have clients booked to impacted destinations My clients decided not to travel or delayed travel I rebooked clients to other Caribbean destinations 36% 36% 34% I rebooked clients to non-caribbean destinations My clients decided to take a cruise 12% 18% Other 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CHART 10 21

22 What s stopping agents from selling the Caribbean effectively? Expensive flights, air service that s not comparable to other destinations, safety, and hurricanes are the biggest obstacles agents say to more Caribbean sales. Nearly 4 in 10 (39%) of agents told us cost of airline flights is too high compared to other destinations, the number one obstacle. Some 30% of agents said inconvenient air connections and safety is a barrier while 29% cited hurricanes. With our Canadian segment, the top four answers were the same in this case. Yet over half of all agents (59%) said hotel standards and conditions of hotels are a barrier while 56% noted both service standards and perceptions of food quality provided some challenges. Agents commented hotels need to do a better job keeping their websites up to date. Up to date information and pictures to represent their websites is huge! I have not recommended resorts based on the website and then attended fams all to find out the resort looks nothing like the out of date pictures, said one agent. Another agent said that hotels need to do a better job providing accessibility information. What are the biggest obstacles you experience to selling more of the Caribbean effectively? Please provide an answer for each category. All Responses A big obstacle Not an obstacle Some Challenges Cost of airline flights too high compared to other destinations 39% 16% 45% Caribbean air service connections not as good as other places 30% 21% 48% Perception of safety 30% 16% 54% Stigma from hurricanes 29% 14% 58% Hotel standards/condition of hotels 18% 23% 59% Too expensive-not enough value 17% 30% 54% Other destinations more interesting to my clients 13% 34% 53% Other better, closer destinations 12% 41% 47% Not enough that is new or exciting for my clients 12% 38% 50% Other destinations are more profitable 11% 42% 47% Other 11% 53% 36% Perceptions of food quality 11% 34% 56% Service standards at hotels 9% 34% 56% Updated hotel information 8% 39% 53% Support from tourist boards 7% 53% 40% Support from tour operators and land-based suppliers 7% 56% 37% Updated destination information (including things to do, activities, etc.) 4% 48% 47% Support from cruise lines 4% 67% 30% 22 CHART 11

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24 What are you biggest concerns about selling the Caribbean for the peak season? Agents with Canadian clients are the most bullish with 40% agreeing I don t have any concerns, Caribbean sales will be fine. Across the total sample this was the number one feeling, although significantly lower at 26%. Meanwhile, 18% of all agents said they are concerned about clients worrying about hurricanes, followed by 16% pointing to safety, and cost of airfares compared to other destinations, are playing on their minds. A number of agents who said they would have liked the option to check more than one answer said that clients still have Zika concerns. When considering the season, what are your greatest concerns when it comes to selling the Caribbean? I don t have any concerns, Caribbean sales will be fine 26% Client worries about hurricanes Client worries about safety Cost of airline flights too high compared to other destinations 18% 16% 16% Not enough air service Other (please specify): Closed properties won t reopen in time Clients worried about Zika Other options clients prefer over traveling to the Caribbean 6% 6% 5% 5% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 24 CHART 12

25 How can suppliers and tourist boards help agents sell more of the Caribbean? Fam trips, fam trips, fam trips!!! If you want more sales from the agency community, agents replying to our survey tell us by a more than two to one margin (34%) that fams are the best way, followed by localized opportunities (14%), and extra commissions (12%). While suppliers spend lots of money for online training programs, only 8% of respondents said they were interested in those programs. Several agents complained about the proliferation of webinars, many of which lacked quality, instead asking for seminars where they can meet representatives face-to-face. Agents also resented their clients being subjected to timeshare sales. Our Canadian client segmentation was in line with overall results. How can suppliers (tour operators, hotels/resorts) and tourist boards better assist your agency in selling more travel to the Caribbean? (Please check all that apply.) 25 TMR Outlook on THE CARIBBEAN More fam trips 34% More localized learning opportunities (i.e. Lunch n Learn type of events) Extra sales incentives (i.e. extra commissions) Current support meets my needs Other (please specify) Online training programs More business development managers (BDMs) in the field In-person training programs with experts onsite 14% 12% 10% 9% 8% 6% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CHART 13 25

26 Travel Market Report Insights (TMRI) 26 TMR outlook on the caribbean Travel Market Report Insights brings to you more than 40 years of experience in the North American travel agency market. Our databases of travel agents and suppliers are ideal for customized research on your behalf. Contact and we will be happy to discuss how we can help you. Research Authors: Doug Gollan Louis Intreglia Graphic Design: Sean Ayling Alissa Schelp 10828_09/27/18

27 Executive summary 96% of agents surveyed sold vacation travel to the Caribbean in the past year. The biggest obstacles to selling the Caribbean are airfares that are higher than other destinations (39%), inconvenient airline flights and routings (30%), and the perception of safety (30%), ahead of stigma from last year s hurricanes (29%). 73% of travel agents mainly book land vacations to the Caribbean through tour operators. These numbers tell us the role of the travel agent in selling the Caribbean is critical but largely unrecognized by tourist boards and hotels due to the indirect nature of their bookings. 79% of agents have at least one person who specializes in the Caribbean in their office. 34% of agents were able to rebook clients to alternate Caribbean destinations after last year s hurricanes, using their knowledge of the region to find replacement resorts. Family vacations with the immediate family, romantic vacations, friend/ extended family groups, and honeymoon are the top segments that agents match to various Caribbean travel products. Cruises, adults-only resorts and luxury all-inclusive resorts are the go-to products for agents when it comes to the Caribbean, and agents say all three also have big growth potential as do luxury hotels and resorts, non-luxury all-inclusives, and even villa rentals, a segment many agents aren t particularly active in. Agents are bullish on growth opportunities for a wide variety of segments, from current top performers such as family vacations, honeymoons, romantic vacations and destination weddings onto wellness, LGBT, soft adventure, and Cuba segments that aren t on the top of their sales list. It s the core segments that they feel have the most potential for even more sales. Agents with mainly Canadian clients are more optimistic that the upcoming season will be fine 40% compared to 26% across the entire sample. Only 8% of agents said they want more online training courses, with fam trips (34%) the number one selection by a more than a 2-to-1 margin. Mexico s Caribbean destinations rule the roost in terms of which destinations agents say they sell regularly, taking three of the top four spots in the total sample and three of the top five spots with Canadian-focused agents.

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