Is price a factor in Caribbean vacations?
The post-outbreak landscape has seen a surge in leisure travel to the region.
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Caribbean destinations are at risk of pricing themselves out of the global travel and tourism market because passengers have more choice than ever before.
At a joint Caribbean Tourism Organization (CTO)/IATA conference held last week at the Ritz Carlton Grand Cayman, Cerda said taxes and fees levied on airlines by Caribbean governments factor into high regional airline fares.
Travelers will go to other destinations if the prices are high. As the total cost of vacations becomes a decision-making factor, today's passengers have choices. Government prices themselves out of the market. Caribbean aviation taxes are much higher than global averages.
New transportation infrastructure has been funded by the taxes and fees. The IATA official questioned the transparency of some government taxation policies.
The provision of adequate infrastructure for aviation comes at a price. It's hard to see a correlation between the cost and charges and the actual service.
Government taxes and fees make up 15 percent of airline fares, while the average in the Caribbean is 30 percent, according to the opening remarks of the Grand Cayman conference.
He said taxes and fees make up more than half of the fares. Taxes and fees make up 23 percent of the airfare.
There is a $900 ticket for the same dates in October from Miami to Antigua. The average price for a round trip ticket to Miami is $310 That is a huge difference for a family of four.
IATA wasn't seeking a tax cut across Caribbean destinations and the region's improved infrastructure benefited airlines. He said that the industry doesn't expect the infrastructure to be paid for by itself.
We are looking for a market that is open and fair. We want to be the catalyst for change in the Caribbean.
Jamaica's minister of tourism countered that high Caribbean airfares result from more than high destination imposed taxes.
Airlines yield management policies push fares to the highest levels, which is partly responsible for the situation.
He said they were looking for affordable travel. The carrier is responsible for that. It's an issue when you see the prices for flights from Grand Cayman to Miami.
He wanted to know where the airline's efficiency was on this route. Lift has the responsibility to make it possible for people to afford things.
The more attractive the government, the less expensive it will be. He later said that they charge what the customer will pay.
Kenneth Bryan, minister of tourism for the Cayman Islands and CTO's chairman, said during the media briefing that Caribbean government officials will make a formal request to IATA.
Bryan said that this is part of finding solutions. The airlines will say that they are reducing pricing. Each member of our group has responsibilities that they look at.
Bryan said Caribbean officials have made a commitment to discuss taxation and fees with airlines companies through IATA.
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