OVERVIEW
CTO-USA, Inc., a wholly owned subsidiary of CTO Barbados, is now handling the marketing activities out of the New York office. Contracts and vendor agreements have been transitioned to CTO-USA, Inc. from CTO Barbados.
Trends and Outlook
The Interim Marketing Report is presented against the backdrop of the worst world-wide recession since the great depression of the 1930s. There is no area of travel or destination that has been spared from the Americas through the once-startling growth of Dubai to Europe and the Far East and certainly the Caribbean is no exception. Having said that, there are always companies in the distribution chain that are down less than others and the same goes for member countries.
In regard to lift, the airlines are all cutting back wherever they can and this goes for the region's national carriers like Air Jamaica and key market-based airlines led by American. This has had a significant impact on important wholesalers who have relied heavily on their historic relationships with these carriers. If there is any good news here, it lies in the price of jet fuel which has dropped sharply with the price of crude. This has enabled American to reinstate many of its canceled flights out of San Juan on its Eagle subsidiary to a variety of countries within the region for the summer.
In looking at individual destinations, while all are down in bookings from our bellwether wholesalers, Jamaica, Dominican Republic and Barbados are among those countries seemingly doing better than the regional average. If there is one significant trend that really stands out, it lies in the extremely low advance bookings beyond a month or so out. This comes as no surprise as an impulse market prevails and for the most part those vacationers that are waiting to book their resort hotel or cruise until the last minute are being rewarded with unprecedented discounts and bonuses. Figures from some internal agency and airline advance booking reports that we have privileged access to bear this out. A six-month advance seats-booked report from April to September from a major carrier for participating wholesalers shows a decline of 28% for the Caribbean at large but current weekly reports from the same wholesalers show declines in single digits only.
There are two other events this year requiring close attention. The most immediate is the storm of bad publicity undergone by Mexico as a result of the drug wars. Although most of the violence occurred far from major resort areas, business fell like a stone in March to virtually all of them. Mexico's tourism interests, government and private sector, are fighting back with major advertising and publicity – it remains to be seen how quickly they can recover. The other thing to watch is the likelihood that the Obama administration will open up travel to Cuba for all US residents before the end of this year. This can change the dynamics for the Caribbean tourism industry very quickly if it happens.
Regional Marketing Fund
Three additional countries have paid money into the Regional Marketing Fund for 2008, for a total of $205,182. Seven countries have paid for 2009 for a total of $537,319. We are still a considerable way from meeting the $2.6 million we should have available for funding the programs of CTDC if all members paid. The slow payment also affects programs in Europe since the Regional Marketing Fund is also a funding source for UK/Europe. Another round of reminders has been sent and we look forward to a better response from the members over the next few months.
MARKETING ACTIVITIES (NEW YORK)
- Branding
We have been insistent on the prominence of the logo representing the Caribbean Brand in our web presence and in whatever materials we produce with our various business partners.
The list of member governments that have been including the logo in their advertising and/or collateral materials has expanded to include: Anguilla, Islands of the Bahamas, Bermuda, Curaçao, Grenada, Puerto Rico, St. Kitts and Nevis, St. Maarten, St. Vincent and the Grenadines, and the US Virgin Islands. We encourage all public and private sector members of CTDC to use the Caribbean logo as a means of clearly identifying with the Caribbean brand as well as providing an endorsement of the brand.
- CaribbeanTravel.com The Website
The management and operation of handled from the CTO New York offices. Continued work on the site includes:
-Continuation of Search Engine Optimization/Search Engine Marketing (SEO/SEM).
-Addition of a “More HotDeals" page featuring Deals sourced and compiled by CTO-USA, Inc.
-Update of “Specials” Tool to allow promotion of multiple events on the homepage.
-Installation of a graphic override tool has been installed on the back end to replace existing graphics at “New This Week” and “Hot Deals” to accommodate special promotions and campaigns.
-Currently expanding templates to incorporate meta tags for all Caribbean hotel properties.
We continue to interact regularly with our partners – E-Site Marketing, Travelocity and Constructive Media – to review and plan new strategies to improve the effectiveness of the site.
- Million Home Marketing Campaign
Through an agreement with Custom Marketing Group, the CTDC offers an integrated, multi-media campaign directed to consumers and top-producing travel agencies to help boost bookings to your destination. The inaugural summer program - delivered in May 2008 - proved extremely successful; traffic to spiked by more than 500% just after the newspaper insertion, and continued to see above normal visitation during the two to three weeks after. A fall campaign was undertaken in November 2008.
The launch dates for 2009 are: Spring (May 1, 2009) and Fall (October 30, 2009). Markets Include: New York Metro, Philadelphia Metro, Chicago and South Florida. Newspapers include: USA Today, New York Newsday, The Westchester Journal News, The Bergen Record, Philadelphia Inquirer, Chicago Tribune and Sun Sentinel.
Participation in the campaign allows participating entities to:
-Target more than one million high-income households through your ad in this glossy color "Caribbean Guide" which will be inserted in several major metro area newspapers – in the cities and media above
-Reach 400,000"opt-in" pre-qualified E-consumers with your travel offers
-Share your message with 10,000 top-producing Caribbean Travel Trade Specialists – agents who are focused on selling the Caribbean
-Participate in your own custom-designed exclusive email program (available to half- and full-page advertisers).
- Caribbean Week in New York
A significant portion of staff time has been spent on planning Caribbean Week in New York, which will be held again on June (8-12) to capitalize on the synergy created by the fact that June has been declared Caribbean Heritage Month in the United States. Caribbean Week continues to be the event that attracts the single largest volume of press concentrated solely on the Caribbean. The aim each year is to exceed the level of media coverage ever obtained, by more aggressive promotion and through the addition of new events, with the critical objective of featuring the diversity and other attributes of the Caribbean in one of its major source markets to generate more business for our members. Keeping the Caribbean front of mind, as a region, is vitally important particularly in this economic climate.
For 2009, the schedule includes:
-Celebrity Chef demonstrations at Macy’s and Bloomingdale’s (June 8-12)
-Caribbean Travel & Cultural Fair (June 11)
-Caribbean Treats: Food, Rum & Rhythm (June 11) – New
-Travel Agent Workshop (June 11) – New
-Workshop for the CaribbeanDiaspora (June 11) – New
-Media Awards, followed by Media Marketplace (June 11)
-Caribbean Marketing Conference (June 12)
-Caribbean Meetings & Incentive Showcase (June 12) – New
-Governments of the CaribbeanState Ball (June12)
Caribbean Weekends in other major cities will be contingent upon the availability of funds to execute them.
- ACTS 2009
The program for ACTS 2009 will differ significantly from that of ACTS 2008. The schedule will consist of meetings targeting representatives from the Administration in Washington, DC, Congress and international donor agencies and Leaders and Influencers of the Caribbean Diaspora.
Participants will be Ministers and Directors of Tourism, senior representatives from the CHTA and CTO, and hotel chains and other private sector groups engaged in Caribbean tourism business. For greater efficiency and maximum outreach, the delegation will be broken down into small groups which will meet with select representatives at, in some instances, concurrent sessions. ACTS is scheduled for Monday, June 8 to Wednesday, June 10.
Discussion topics will include:
-The effect of the US Economy on Caribbean Tourism
-The volume and Value of Trade to the US Economy from the Caribbean
-Unintended Impact of US legislation on Caribbean tourism
-US Customs and Immigration Pre-Clearance in the Caribbean
-Funding of tourism research and technology projects
-Partnership in sustainable energy and other green projects
- Membership
Chapters
To improve the Chapter system, CTO has now developed a program hosted on Caribbean Travel.com - URL: with the following elements:
-An E-Learning module for travel agents to complement their knowledge of the Caribbean at
-The creation of a Media Library and ResourceCenter from which travel agents will be able to send videos, images, brochures and deals to their clients
-A Festival and Events calendar online
-A Rewards program to award top producing travel agents
-An agent community for social networking among USA, Canadian and Caribbean travel agents
-The opportunity for travel agents globally to join the CTO as a chapter member.
New by-laws are being put in place to govern the revamped chapter system. Chapters will continue to exist in markets where there is interest, and professionals who can efficiently conduct the affairs of the Chapter. The management of the system has been centralized within the CTO New York office and chapters have been asked to make some operational changes.
As a result of this restructuring, the Boards of five Chapters demitted office. These chapters are being reorganized by agents who value their relationship with CTO and desire to have a CTO chapter in their markets – Atlanta, Philadelphia, New England, Houston and OrangeCounty. There are currently seven active US chapters in Connecticut, Long Island, Chicago, South Florida, North Texas, Northern California and San Diego.
NTOs
Meetings have been held with the National Tourist Office (NTO) representatives twice during the reporting period. The purpose of these meetings is to share reports on the status of the industry at the destinations and to plan and seek input on activities to promote the region.
Allied Members
As at April 20, 2009, about 40 private sector members had renewed their membership with the organization. Six new companies joined:
-AFAR – publication
-Interspace Airport Advertising West Indies Ltd. – marketing concessionaire working exclusively with airports and cruise ports
-Advance Global Communications – wireless communications facilitator
-NID Holdings, LLC – hotel developer
-Iberostar Hotels and Resorts – hotel chain
-Interactive Internet Websites, Inc. – web-based travel guide sites
There is still strong interest in membership in the organization and we are continuing to encourage companies to become active members.
- Media Co-op ventures
We continue to review media proposals that will provide economies of scale, has the potential to generate repeat business and will provide significant exposure at minimal cost. Currently in discussion are proposals from WBLS Radio and The Travel Channel. Upon completion of the review process, the proposal(s) that merit further consideration at the regional level will be presented to the CTO Marketing Committee and the CTDC Board. Other proposals that require a national focus will be directed to the member countries.
The New York Daily News has created one of two annual Caribbean supplements, which will be distributed in its Sunday May 17 edition, in time to promote Caribbean Week in New York.
The second special section based on an agreement between Brides/Modern Bride and CTDC willrun in the April/May 2009 issue of Modern Bride and the May/June 2009 issue of Brides. An “IsleStyle” micro-site has been set up on Brides.com to include customized content about the Caribbean (using the 2008 “Passport to the Caribbean template) and dedicated pages for CTDC participants. The site went live on February 24 and will be up until May 24, 2009.
- RelationshipBuilding
CTO has established relationships with several entities to leverage its spend on the various marketing initiatives and activities.
Black Meetings and Tourism is collaborating with CTO to produce the first Caribbean Meetings and Incentives Showcase, to be held during Caribbean Week in New York. Meeting/Incentive associations across the country have been asked to recommend the planners that would be brought into New York to meet one on one with destinations and hoteliers.
The National Tour Association (NTA) met with CTO to discuss ways in which the two organizations can collaborate to deliver programs that would be mutually beneficial. The NTA has a representative based in the Washington, DC area, who is involved in lobbying efforts to support travel industry issues.
In an effort to continue building the relationship between the organization and the Caribbean Diaspora, discussions have been held with the Consulates General in New York, and meetings have been planned for similar discussions in Washington, DC, in advance of ACTS 2009.
CTO is also working with the Caribbean American Chamber of Commerce and Industry (CACCI) based in New York to present a Workshop for the Caribbean Diaspora – to be held during Caribbean Week in New York. The overriding theme of the Workshop will be on Mobilizing the Caribbean Diaspora to assist with the Development of Tourism to the Region.
CTO is collaborating with Census 2010, a US government program, by providing them with an opportunity to reach members of the Caribbean Diaspora to encourage them to participate in the 2010 Census so that their communities may benefit from additional federal funding for social and educational programs.
The CTO was also invited to speak with the membership of the Caribbean American Business Association (CABA) in New Jersey about the organization, its objectives and activities in which the Association can benefit and become more involved.
- Trade and Consumer Shows
CTO negotiated special rates for government members for the following trade and consumer shows during the period under review:
November 15-16, 2008NBC TV Travel Expo Chicago, IL
December 2-4, 2008Travel Agent Home-Based ExpoLas Vegas, NV
December 13-14, 2008NBC TV Travel Expo Miami Beach, FL
January 10-11, 2009Adventures in Travel ExpoChicago, IL
February 6-8, 2009The New York Times Travel ShowNew York, NY
February 14,15, 2009Adventures in Travel ExpoLos Angeles, CA
February 14,15, 2009Los Angeles Times Travel ShowLos Angeles, CA
February 20-22, 2009The Boston Globe Travel ShowBoston, MA
February 21,22, 2009Adventures in Travel ExpoWashington, DC
Discounts have also been negotiated for these upcoming shows 2009:
October 10,11Adventures in Travel ExpoNew York, NY
December 1-3Travel Agent Home-Based ExpoLas Vegas, NV
December 5,6Adventures in Travel ExpoSeattle, WA
- Newsletters
Three issues of the recently launched CTO News – an electronic newsletter – have been published. The newsletter features information from all CTO offices and is edited and distributed by the CTO New York office.
A CTO Foundation Newsletter has also been distributed with a call to action for contributions to this noble cause.
- Public Relations
Lou Hammond & Associates (LH&A) continued to aggressively outreach to the media to promote the Caribbean brand. Tactical activities included:
-Key Highlights – agency generated print, online and broadcast media coverage with a total reach of 522,851,900. Media outlets include: Good Morning America, The Today Show, The New York Times, Washington Post, Toronto Star, Travel + Leisure, Wall Street Journal, Travel Weekly and Travel Agent.
-News Bureau – maintained active and aggressive CTDC news bureau, handling more than 200 requests and opportunities in the quarterly period.
-Editorial Calendars – secured and monitored more than 100 editorial calendar opportunities with national and regional media outlets.
-CTO NewsE-newsletter – drafted copy, provided images and coordinated layout and design for monthly newsletter.
-Press Releases – agency provided a steady news flow as it disseminated 24 Caribbean press releases, an average of approximately four per month.
-Partner Outreach – organized meetings of the Caribbean PR Council, hosted at LH&A's offices. The meetings were made up of representatives from CTO & CHTA membership. The purpose of the meetings were to brief PR partners about ACTS/Caribbean Week in New York and provide an overview of publicity opportunities and promotions and to address the region’s response to the global economic situation and how to collectively meet the ongoing challenges in 2009.
-Hot Tips – provided more than 50 "hot tip" free media leads to constituents with opportunities for various levels of media coverage.
-Interviews – coordinated multiple interviews with trade, consumer and Diaspora media for CTO/CTDC officials. Assisted with speaking points and outlet profiles.
-Caribbeantravel.com Blog – worked with Lorraine Headley and edited content for blog. Agency coordinated Lois Swanson, Founder/Creative Director of BarbadosTips.com, as a guest blogger.
-Crisis Communications/Destination Speaking Points – crafted statements in response to the issues of crime and the economy in the Caribbean in addition to providing destination speaking points on behalf of the Interim Secretary General in regards to U.S. and Canadian economic impact on Caribbean tourism.