SUMMARY World Travel Market 2004 Special

681216 The British prefer Challenge: the Tour operators Large strategic , the Caribbean battle against delay 2005 alliances arise and Florida for their seasonal tourism contracting in tourism winter holidays

18 The Costa Brava is “obsolete and expensive” 28 The low cost tourism revolution for First Choice 30‘Joker holidays’ alleviate the uncertainty of last 19 Countdown has begun for the Almería 2005 minute bookings 32 Sea and sand tourism has been the winner in 20Spain still the favourite destination with the summer 2004 British, for now 34 Enotourism, a burgeoning sector on the 22 Internet is now the cheapest option when national market booking accommodation 36Tourist entertainment, a differentiating element 24 New destinations for the experienced traveller in an ever increasing competitive market 26Spain, increasingly difficult to sell for city tour 38 Early booking with more discounts than ever in operators Germany

Published by: Publisher: Translation: Administration: 20 Canarias S.L. RAFAEL CABALLERO Louise Davis Teresa Llabrés Editor: Photographs: C/ Aguere, 11 2ª A Advertising: Emilio Lubrín Ana Gómez 38005 Santa Cruz de Tenerife Ana Gómez Assistant Editor: Tel. +34 922 230 438 Distribution: Sandra Díaz http://www.preferente.com Eduardo Suárez del Real Laura Planisi [email protected] Co-ordinator: Karina González Printing, layout and design: Gemma Marchena Pablo Fernández Gráficas Planisi S.A. In only a short period of time, the a landscape of high mountains; name of Costa Adeje has consoli- gorges sheltering many samples of dated itself on the international mar- the Canaries endemic flora; an his- ket. Its innovative projects are gen- torical heritage such as can be ob- erating enormous expectation in served in the parish church of San- both private and public sectors. ta Úrsula or the Adeje Convent. Miguel Ángel Santos remains pru- One things which springs to the dent but affirms that Costa Adeje eye of a visitor to Adeje is a translu- is already of great future value. cent image of a network of complicity The town of Adeje lies on Tener- which has been set in perpetual mo- ife’s southern point and at its feet, tion. Social services, companies, and bathed by the warm waters of the At- local authorities, under the direction lantic ocean is Costa Adeje, a tourist of the Local Tourism Authority, have resort of excellence. joined forces to design the strate- Costa Adeje is a new concept gies required in bestowing Costa- where quality is the key word. Here Adeje with qualities such as the in- the environment is carefully pro- tegral quality of its surroundings, its tected by strategic plans, for nature waters, its means of transport, its tra- is the greatest heritage of mankind. dition, and a future which will be sus- Its wealth lies in its many contrasts; tainable for future generations. We are no longer distances from ity International España, S.A. This municipality incorporates a new di- the world of information and knowl- recognition responds to the effective vision of the tourism industry, one edge, and therefore training is an introduction of an Environmental which grew 50% in the Canaries last added and necessary value when of- Management System which allows year. This addition will undoubt- fering quality of service. Thus, two the Town Hall to carry out a contin- edly become one of the interna- years ago. The Adeje Development ual assessment of its handling of en- tional focal points for profession- Company was founded, a project vironmental issues. But Adeje’s de- al meetings. The hall will seat 4.000 combining the forces of local au- termination to take care of the envi- and be equipped with the latest thorities and private enterprise with ronment reaches further, as can be ap- telecommunication and technical a will to innovate using the latest preciated by the four blue flags attained apparatus. fields of knowledge, in moral and by three beaches and one marina, and Tourism is no longer simply an ethical values, to define new strate- not forgetting the distinction for Life economical reference but is a so- gies of teaching and to unify tourism Saving and First Aid. cial expression which affects us all. training according to the different The imminent inauguration of the The journey and destination are part employees and companies’ needs. five star hotel Sheraton La Caleta on and parcel of human behaviour. Cos- The municipality’s commitment to the seafront is evidential proof of ta Adeje works for quality through excellence in all spheres relating to a commitment to excellence with the innovation, improvement, and the tourism inevitably embraces envi- backing of a solid, prestigious, in- care of the environment. A visit to ronmental issues and proof of this is ternational company. Adeje is therefore a safe investment the recently awarded ISO14001 cer- With the future Costa Adeje for our leisure moments. tificate from the Bureau Veritas Qual- Convention Hall the Challenge: the battle against seasonal tourism

Cehat proposes measures to alleviate high season demand

Vivi Hinojosa/Madrid which to achieve minimum viabil- Díaz Montañés, “the demand is companied by “a change in mar- ity is forced to raise prices which there”. The opposite occurs in inland keting strategy, so that the private Weakness in our traditional endangers the competitiveness of destinations where he suggests they sector is more involved in the cam- source markets, the British due to the destination”. should “create products, promote paigns launched by Turespaña and the strength of the euro, and the Ger- Businesses are therefore pro- them and market them so that vis- the different regional authorities, be- man whose economic recovery is posing measures to battle against itors also stay mid-week and not cause such a concentration of re- taking longer than expected, has a seasonal tourism in towns, in tourism solely at weekends”. Finally, for sources would result in a more ef- negative influence accentuating sea- inland and on the coast. In towns, those tourist resorts deeply suffer- ficient promotion aimed at the areas sonal demand. If one adds to this the where the offer has grown at a ing due to the seasonal market, he with greatest potential”. In order to increase in national clientele, ac- greater speed than the demand, with requests greater effort in promo- achieve this, he says “it is vital to customed to limiting their travel to the consequent decrease in occu- tional campaigns which are more have access to the statistics which the summer period, and to whom all pancy caused by such an imbalance, specialised and which encompass the Administration handles”. This, holiday destinations have now they suggest making great market- a complementary offer totally un- for example, would help them bet- turned in an effort to counteract the ing efforts to attract visitors, not on- related to the traditional beach hol- decrease in international visitors, ly professional travellers who fill iday, such as , health or na- Public and private the result is a high occupancy lev- their rooms mid-week, but the city ture, together with a firm grip on el forecast for the summer but one break market to also occupy beds costs, with the help and support of sectors must work hand which will fall dramatically once at weekends, as has been done suc- new technologies. in hand in promotional the season has ended. Hoteliers cessfully in cities such as These initiatives, according to the campaigns, according know only too well that a concen- and Bilbao because, according to Chairman of Cehat must be ac- tration of tourism in the summer to the hoteliers months not only represents a seri- ous problem for the industry, but al- ter adapt to the tastes and require- so for society as a whole. In this ments of the new type of client us- vein, José Guillermo Díaz Mon- ing the Internet to tailor their own tañés, Chairman of Cehat (Span- holiday package, a market in which, ish Confederation of Hotels and according to the Chairman of the Tourist Accommodation) voiced his Mallorca Hotel Federation and Vice- opinion when he stated that “it af- President of Cehat, Pere Cañellas, fects municipalities who have se- “ the industry needs to make use of rious difficulty in attending all the the competitive advantage of its visitors; and hotels, who are unable know how against other less evolved to run a profitable business with on- destinations, to thus obtain profit ly four months of high occupancy; from the great changes which the likewise, the complementary offer tourist industry is experiencing”.

6 preferente · World Travel Market · November 2004

Canarias. Caribe. The British prefer Cyprus, the Caribbean and Florida for their winter holidays Tour operators have sold less packages to this winter

Cristina Fernández/Londres continue to be a competitive desti- nation and hoteliers must not in- British tour operators have closed crease prices further. “Spain has be- the winter season with a signifi- come incredibly expensive. Hote- cant drop in package holiday sales liers have exploited this situation for to Spain although, in accordance the past ten years with annual in- with the latest figures, the situa- creases of ten percent. We need them tion is not the same in all holiday to drop rates if interest in the des- destinations as the large British tour tination is to be maintained” states operators have explained that the Curtis. Balearics has been the worst hit In reply to a query regarding the while the drop on mainland Spain risk of offering poorer service to the has not been so marked. Cuba. client if prices are lowered, Cur- Statistically, the Canaries have tis believes that everything depends registered a six percent drop, main- tion to sell” states Ian Derbyshire, seen a drop in demand, especially on the profit margins hoteliers are land Spain one percent and the Sales Manager for Thomas Cook, the Costa Blanca. “Nor has Mallorca willing to sacrifice. In regard to the Balearics 22 percent, figures which who says that Florida is growing in sold well, but this usually happens possibility of it being the British make the tour operators coincide in popularity by 23 percent annually, at this time of year because of the tour operators who should make the their opinion that the market to while has also risen in de- climate”. Cyprus, Florida and the sacrifice, the director of First Spain has experienced a “difficult mand. Caribbean are also favourite desti- Choice upholds that their profits period”. However, a spokesman for Thom- nations among Tui clientele. Ðwhich allow them to pay exorbi- The British are still travelling, but son insists that the “Canaries have Richard Curtis, Managing Di- tant salaries to their bosses- are at the moment many have chosen sold very well this season and the rector of First Choice, agrees that not coming from Spain but from countries such as Cyprus, which ap- summer has been excellent. Obvi- Spain has suffered in winter from the “long haul destinations and coun- pears to have made a come back this ously, the influence of the euro is popularity of destinations which are tries such as Bulgaria” winter. The advantage of the pound noted, but there are people prepared becoming more competitive. “This A spokesman for MyTravel in- against the dollar has saved the long to pay the price for guaranteed sun winter the atmosphere has been dif- sists that for the time being he is haul destinations and people have without having to travel too long a ficult” he states, speaking about the unable to make any comment in re- opted for sun destinations such as distance”. market, adding that “Spain has gard to the market before the Annual the Caribbean and Florida. “The Ca- The same sources state that dropped off a little”. This tour op- General Meeting is held when the naries has been a difficult destina- Mediterranean coastal resorts have erator is convinced that Spain will company accounts will be published.

8 preferente · World Travel Market · November 2004

TENERIFE,TENERIFE, aa worldworld ofof discoverydiscovery onon eacheach visitvisit

Tenerife is a traditional holiday des- The island is a destination to have tination which has been wise enough evolved much more than the tradi- to adapt to new market demands while tional beach resort, growing and im- maintaining quality and diversity in proving considerably in its com- a constant strive to improve its tourist plementary offer. There have been offer. This is observed year in, year out notable improvements in tourism in- by five million holidaymakers, many frastructure and resources, in client of whom are repeat visitors. The attention, and other aspects close- British market is a good example, with ly linked to client satisfaction and a 74% fidelity rating. today the island provides a solid base and is an attractive proposal for peo- spectacular Orotava Valley; or the blematic buildings, and authentic ple hoping to take a holiday break in lesser known enclaves which sur- works of contemporary art, such as any month of the year —remem- prise such as Isla Baja and its ru- the Auditorium in Tenerife, an im- ber that this is the island of perma- ral townships, where tradition pro- pressive building designed by San- nent springtime— where there is vides a sign of identity in which the tiago Calatrava situated in the is- an opportunity for both relaxation visitor can participate and discov- land’s capital. La Laguna, with its and for practising an enormous range er as a unique experience. historical centre, now declared a of other activities. The very different south provides World Heritage by UNESCO, is a Whether one is seeking rural tourist resorts already familiar to the must to visit while both towns are tourism, nature activities, sea , British market, such as Los Cris- ideal for a relaxing day strolling and cultural events, tradition, folkloric tianos or Las Américas and its long shopping, with a pause for enter- events, gastronomy or architecture, golden beaches where there is an am- ing into a bar or tasca for the best both historical and contemporary, ple day and nighttime leisure offer. tapas and a taste of the succulent Tenerife provides it all with quali- Also in the south are places of enor- wine from any of the Island’s five ty, and with an enormous choice of mous beauty and corners where one denominations of origin. accommodation, from large resorts can be in touch with nature with- with luxury hotels, to smaller hotels out travelling any distance from the with charm, and country houses, pro- hotel. The select area of Costa Ade- viding a diverse offer with a host je, with its exclusive hotels, many of attractive possibilities. with magnificent Spas, is another The enormous variety offered, option worth remembering. One with a range of different resorts in such example is that of Santiago del contrasting landscapes provides Teide, with its marina and hillside added value to a unique, exotic and of tiny traditional villages. safe destination, with its green and For those who prefer a cultural exuberant north where the client can break, Santa Cruz and La Laguna choose the cosmopolitan tourist city await discovery with streets vibrant of Puerto de la Cruz, framed by the with history and dotted with em- Tour operators delay 2005 contracting

Pressure increases on hoteliers

Ruiz Collado/Madrid the consolidation of internet sales, respected for the following year. And CEHAT and the Union of Spanish on line products and the late book- on the question of prices the situa- Travel Agents CAAVE,have already Hoteliers from the Canary Isles, ing of holidays have served to gen- tion is more than dramatic. In some analysed this phenomenon in some , Catalonia, Levant and the erate a change in the marketing pro- cases a price freeze is the general ten- depth at meetings held in Madrid. Balearics are this year facing a new cedures of large tour operators. In dency due to competition in the “The question we must make is what phenomenon in relation to contract- the medium-term tour operator Mediterranean area. There is a rev- can be done to affront this new frame- ing. Where traditionally the reser- brochures could well be on the line” olution in marketing affecting all seg- work. Source markets have been vation of bed allocations for the fol- stated sources from CEHAT. ments of the tourism product” state thrown into confusion by consumers’ lowing summer was closed between Hoteliers complain of the pres- the Balearic, Canary and Andalusian changes in habit when booking a hol- May and July, tour operators are now sure to which they are being sub- hotel associations. iday. This threatens all the promo- delaying all negotiations with hote- jected by wholesalers. “Guarantees The Secretary of State for Tourism tional strategy of the tour operators liers until the latest possible date. are now past history, no-one on the and Commerce has also remarked with their holiday brochures. Large The Spanish Hotel and Accom- British and German markets can as- upon his concern on the effects of tour groups can no longer confirm modation Confederation (CEHAT) sure you of allocations. What mat- these tendencies upon the Spanish that the prices which appear in has expressed its concern for the im- ters is to have a commitment where- hotel industry, especially when it can brochures will be the definitive ones plications this will have in the mar- by the number of hotel beds currently be seen that source markets only re- due to the proliferation of offers for keting sphere. “Low cost companies, contracted in the high season will be spond to offers and discounts. early bookings” state CEHAT.

QUALITY, a question of SURVIVAL The Comprehensive Quality Plan drawn up by the Mallorcan Tourism Council is a response to the increasing pressure of competition from new destinations

The Tourism Council has pre- to convert quality into the emblem of of energy. Such has been the suc- sented an ambitious Comprehensive the island is already a reality. cess of this Seal of Quality that 52 Quality Plan which promises to The Director of Tourism Devel- municipalities interested in obtain- transform the Balearics into a ref- opment and Planning, Joseph Aloy, ing the seal have signed agreements. erence point for quality tourism. states that “in the Balearics we have The second pillar of this Plan, the The Quality Tourism Institute opted for quality as a question of sur- complementary offer has important (IQT) provides a tool to assist in vival. It is the one thing which dif- cards to play: the signing of agree- transforming the tourism model, ferentiates us from other destina- ments with the Catering section of adapting it to the new needs and tions”. Aloy explains that the Qual- the CAEB and PYMEM (local large, shaping it to the requirements of ity Plan aims at being as general as medium and small Business Con- clients who are increasingly more possible and hopes to encompass federations). Also, the Council has demanding and informed. For this several spheres. Work has already reached an agreement with Sa Nos- purpose, two lines of action are need- commenced regarding product, al- tra bank for creating soft credit to fi- ed: on the one hand, the provision of lowing all sectors to have a specif- nance improvements in hotel es- a support for putting into action sys- ic renovation plan; and another tablishments. The intention is to cer- tems which are environmentally sphere is that aimed at public enti- tify with the IQT Quality Seal cater- friendly, sustainable, and of the high- ties. “If private companies are ing, commerce, recreation, pro- est quality; and on the other hand, obliged to follow quality guidelines, grammed events, transport, tour op- ▲ Josep Aloy: “Intangible elements the promotion of quality in all sec- why should Town Halls not have to erators and travel agencies, and even need optimising such as staff manners, service, hospitality….”. tors linked to these projects. do the same?” asks the head of public bodies and health centres. Change in the tourism model im- Tourism Development and Planning. In regard to tourist accommoda- plies a change in mentality and cul- Municipalities, the complemen- tion, hotels, apartments and holiday ture which the IQT will help intro- tary offer, and hotels, stand as strate-

duce using the team of profession- gic pillars upon which is sustained ▼ Hotels can obtain the IQT als they have to hand. By means of the recently introduced Compre- quality seal after having undergone modernisation. information, training, mediation, as- hensive Quality Plan in its first phase sessment and the introduction of dif- between 2004 and 2006, with a ferent tourism products, the challenge budget of 1.500.000 euros. Town Halls may receive a seal of Quality Tourism if they comply with Municipalities, complementary offer a series of requirements on cleanli- ness, maintenance or services. There and tourist accommodation are the will be 26 points to evaluate the mu- nicipalities in which are featured three strategic pillars of the IQT acoustic contamination or the saving

14 preferente · World Travel Market · November 2004 ▲ Diversity and segmenting of the offer intends to provide an alternative to the sea and sand tourism. homes may obtain the IQT Quality file of the new traveller perfectly fits Seal after undergoing a phase of mod- the plans of local government; a se- ernisation and quality improvement. lective and well-versed traveller who The different segments of the mar- tailors his own package through the ket have also been contemplated with- internet and who today represents in the Quality Plan. The so-called “star between 18 and 20 percent of the to- products” encompass , walking, tal visitors to the Balearics. Thus, the conventions, traditional tourism, bios- Tourism Council places one foot for- A plan with a precedent phere reserve (Minorca), Ibiza (with ward and pre-empts tourists’needs. style, hospitality, diversity), gastro- Municipalities, complementary In 1996, the Q Plan, predece- the Balearic Centre of Tourism nomic itineraries, nautical marinas, offer and tourist accommodation are sor of today’s Integral Quality and Technological Research (CIT- wellness, beaches and cycling. the three strategic pillars of the IQT Plan, already laid down the foun- TIB). This policy, backing qual- The diversification and seg- Products such as walking, golf, dations for today’s tourism poli- ity, provided inspiration to Cen- menting of the offer available aims conventions and nautical marinas, cy. In reference to environmen- tral Government in its creation at providing an alternative to sea and among others, are contemplated in tal improvement, the original plan of the Spanish Institute for sand holidays. In this way, the pro- the Plan. proposed cooperation between Tourism Quality (ICTE). town halls, an embellishment plan, On the other hand, in 1999 the Products such as trekking, golf, and the improvement of prome- General Tourism Legislation de- nades and seafronts. termined a concept conventions and marinas, among The quality of struc- for all tourism com- tural edifices was a panies: that of “per- others, are contemplated in the Plan second phase which manent updating”. was followed by the This new concept re- Pla Mirall. In regard quires all tourism to the improvement of products, companies to modernise but al- lines of definition were introduced so for the improvement to be con- to increase quality through com- tinual. The legislation itself per- panies. In this way, each one could mits this by two different routes: opt for a certain line of develop- the authorities themselves impose ment. Finally, the perfection of it with specific modernisation services was undertaken in the Ho- plans under the supervision of in- tel College of Further Education. spectors; and the participation of The result of this Research and all companies in a specific Qual- Development investment policy is ity Plan.

November 2004 · World Travel Market · preferente 15 LargeLarge strategicstrategic alliancesalliances arisearise inin tourismtourism The new business market gives a truer reflection of the industry

Report by Josep Ejarque ent markets, who were seeking means the profiles of both Germania Express and of complementing their offer,has now be- Air Berlin are similar. Tourism has begun to emerge from the come one of strategies ranging from a Naturally, competition has not rest- Within the hotel world forces are be- crisis situation it has suffered for the past process of creation and shaping of strate- ed on its laurels and Hapag Lloyd Ex- ing joined to confront the challenges of two years. However,one thing remaining gic alliances between apparent enemies press, Tui’s low cost airline, has reached the immediate future. A marketing part- is the sense of uncertainty in both source operating within the same market. The an agreement with the low cost Italian air- nership has been formed between the and receptive markets. The market and the market situation does not involve large in- line, Volareweb. The situation is simple, Kempinski Chain operating in Europe, consumer have changed and as a conse- vestment operations but rather marketing while Volareweb tries to enter the Ger- and Pan Pacific, Rydges and Wyndham, quence, so too the means of understand- and commercial agreements which,if they man market, Hapag Lloyd tries to increase which are operating in Asia, Australia ing the model of the tourism industry. Con- work, can at least be a first sep towards the number of links and destinations be- and the Pacific. In this case, the aim is cepts such as globalisation, integration a consolidation of large groups in the fu- tween Germany and Italian tourist des- a client service related one, in order to and diversification is still valid today with- ture: the aim is to try and keep within tinations. Finally, they have united and complement each other as they are mid- in the tourist industry,but undoubtedly the the market and remain competitive. the Italian company takes advantage of dle range chains suffering from the pres- way of understanding them and,above all, The entry of EasyJet on the German the network and the introduction of the sure of large international hotel groups. practising them,has changed dramatically. market has forced a union and collabo- Germane line in the Italian market. One of the most important agreements ration between warring competitors with- However, the most significant strate- to have been signed recently is that of in the low cost airlines: Germanwings, gic alliance is the one signed between the Sol Meliá group with the American gi- bmibaby, Hapag Lloyd Express, Germa- Germanwings and bmibaby. This is a ant, Cendant. Both parties have agreed nia Express and Air Berlin. It in fact ap- purely commercial alliance which per- to a type of shared code by which the prop- pears more an operation of all against one. mits the existence of a large virtual low erties of both are sold through their re- Last February, the alliance between Air cost company in the two source mar- spective websites and directories. There Berlin and Niki,the new airline owned by kets of low cost flights, and also the most are other paths of collaboration for, tak- Niki Lauda,was born. This prevented both important European tourism source mar- ing into account Sol Meliá’s interest in companies competing within the small kets. While the British company, be- growing within the time share business, Nowadays,in spite of some people stat- Austrian market, and they serried ranks longing to British Midland, operates to and bearing in mind the competition of ing that vertical and horizontal integration against the incursion of competitors, for 58 destinations, the German company, the giants in this sector such as Milton and as a model of organisation and tourism Vienna is an interesting destination for part of Lfthansa, flies to 40 destinations Marriot, Cendant will help Sol Meliá to management is no longer one to be fol- EasyJet, Ryanair, and the other low cost from its different German bases. The first expand through their RCI branch. In the lowed, the option to grow and reach a airlines. With this operation, Air Berlin sep is to unite the different websites, their end, the aim of all alliances is to sel more, level of business which allows synergy ensures collaboration with a competitor commercial tool, in order for all the routes and for this reason Sol Meliá, through in production and in and at the same time they cover to be re- its partnership with sales and marketing To grow through alliances obtains a series of flected, and the on- In the world of distribution Warner to develop within tourism com- is not new in the tourism links which are op- line reservations will through online channels theme hotels with the panies, are still valid, industry, and they were erated by Niki but be sent to both book- the same tendency to Flintsones, is trying although market con- which can be inte- ing systems, de- to attract a new kind ditions have altered. first implemented by grated into their own. pending on the air- create large trans national of client,just as it has If, until a few years airlines and hotel chains Air Berlin has line operating the groups can be seen done with Hard ago, the concept of signed a co-opera- route. With this part- Rock,to develop ho- growth and more growth was the order tion agreement with another of its com- nership, bmibaby can use the Cologne- tels under this name, while in the alliance of the day, with enormous investment and petitors,the low cost airline Germania Ex- Bonn hub of Germanwings as a con- and joint venture between AC Hotels and vertical integration being the axiom, to- press (GEXX), whose Chairman, Heinz necting airport for its clients, passing pas- Hoteles 10,the former lends its hotel man- day’s reality is somewhat different. Bischop is promoting a low tariff airline sengers over to the Germanwings flights. agement expertise, while Hoteles 10 pro- We find ourselves facing a new strate- with a flight mix to tourist destinations If this partnership is born with low vides its marketing ability. gic framework in tourism,known as strate- such as Athens or Salonika,or to business cost airlines of two of the Star Alliance The mentioned alliance of Sol Meliá gic alliances. To grow through alliances destinations such as Zurich and Moscow. members, it is not surprising that the third is not the first of its kind as the aim of is nothing new in tourism. In fact, the Through this agreement, Air Berlin and partner join the team. , the SAS the alliances being drawn up is based first to put such a method into practice Germania Express divide the market. The low cost airline could also join to cov- on finding new sales channels and it is were the airlines and hotel chains. How- operation permits both companies to split er the Scandinavian flank and German- precisely in this segment of the tourist in- ever, what started off as agreements be- their capacity between Germany, Aus- wings can then concentrate on expansion dustry where the majority of strategic part- tween companies already in the differ- tria and Switzerland,bearing in mind that within the German market. nership operations are taking place. For

16 preferente · World Travel Market · November 2004 are several groups between agencies, such ner, are now obliged to seek a new strate- as Unida, Over, etc which give weight gic partner for the American market. They to this tendency, but now strategic al- have evidently done so, forming an al- liances have become international. liance with Euro Lloyd Travel Group, In the world of business travel, move- the former partner in the U.S.A of BTI Eu- ment continues and the Carlson Wagonlit ro Lloyd Network. But the most frenet- one hand, is the fact of having strength Travel group,fruit of a fusion between Ac- ic procedure of drawing up strategic al- against suppliers, but a medium term cor and Carlson Companies and the Amer- liances within distribution network is that aim is the thought that the distributors ican TQá Travel Solutions, have had to being undertaken in . While re- can tailor their own holidays and pro- relinquish their strategic agreements due cently, a large sale group was created en- posals, for in this way they can offer to the purchase and sale operations of their titled Alliance T, using the networks of better service to the client and increase parent companies. CWT has acquired Ma- Carlson Wagonlit Proximitie, Selectour the operating margin. this reason, Sol Meliá has an agreement riz Corporate Trav- and Protravel, to- But even in the world of tourist dis- with lastminute.com, internet’s main ho- el, owner of TQ3 One of the most important gether with other tribution through online channels, part- tel booking system within Europe. which held a com- agreements signed recently companies such as nership operations are budding, with the A new holiday sales giant has been mercial and market- was that between the Sol Wasteels, CIT, Ver- same idea of creating large trans nation- born in Europe. The name is European ing agreement in Eu- ney, JV Voyages, al groups. In this vein there exists the al- Travel Alliance, and it comprises 5.000 rope with Tui. Meliá hotel group and the Lusitania and Fran- liance between the British internet tour travel agencies. The alliance is based Evidently, the American giant Cendant tour, representing operator Octopusstravel.com and the Ger- on the network of German travel agen- competition had to 1.305 points of sale man L’Tur, leader in the German last cies, RTK International, with over 3.000 react, and has done so. The Tui group and 4 billion euros in business volume,an- minute holiday sales. With this agreement, points of sale, and the French Alliance du which had been trying to enter into busi- other group has also recently been cre- the British operator can offer accommo- Sud, with over 2.500 offices. The idea be- ness travel,has signed a joint venture with ated thanks to a different strategic alliance. dation,excursions and other tourism serv- hind the alliance is to be large enough the American group Navigant. In this way, This time it is G4, a partnership between ices on the L.Tur.de website, which spe- to negotiate better tariffs and conditions another large goup has been formed with Havas Voyages American Express, Afat cialises in holiday packages and hotels, with suppliers. Until only recently, the a business volume of over 11 billion dol- voyages, Thomas Cook and Manor, to- while it can also enter the flyloco.de web- world of tourist distribution experienced lars, with consequences on the European talling 1.300 points of sale and 4.5 bil- site selling just airline tickets,and also be- fusions, agreements and the creation of market,for the Lufthansa City Partner trav- lion euros in invoicing. long to Ltur. For its part, the German op- groups, but this was mainly within the na- el agency network,competitors of Tui,and Two different concepts lie behind erator can sell its products through the tional sphere. Within Spain itself there who until recently had Navigant as part- these partnership agreements. On the Freeserve Travel Channel web page. such as those of north Africa are un- dergoing rapid development, There TheThe CostaCosta BravaBrava isis are the example of Egypt and Mo- rocco.” The building of 4 and 5 star hotels will not help the Canary Isles as they already have more than de- “obsolete“obsolete andand expensive”expensive” mand requires. On the other hand the advertis- ing campaign of Spain Marks will for First Choice not help hotels in resorts such as the for First Choice Costa Brava. The enormous in- vestment Spain is making in at- tracting a different type of tourist which, through insistence and rep- etition will eventually get through to the British public, will not ever fill those beds. Williamson believes that “the campaign is mistaken be- cause the number of people it will attract to Spain is small and while these people will spend money they will not fill planes”. Speaking of aircraft,Williamson declares that the withdrawal of the Costa Brava from their brochures has nothing whatsoever to do with the increase in low cost flights. “We The tour operator rejects this destination due to lack of demand must not confuse the two markets. These planes are for people who will Cristina Fernández/Londres to travel. They have seen countries that the true challenge is to over- stay in villas or second homes or who such as France, America, China, come this state by investment and want to visit Barcelona. The hote- Some hotels on the Costa Bra- ... and they know what they renovations. “We have to be able liers will not benefit”. va have not satisfied First Choice can expect for their money”. For to tell people why they should re- Other tour operators are reducing clients and the British tour opera- now, First Choice does not plan to turn to Spain”. In his view, one of capacities to Spain for next year. tor has had no alternative but to re- remove other Spanish destinations the resorts taking the right approach Thomas Cook will pass 20.000 seats move this destination from the sum- from its brochures. is Salou “which has undergone a from the Canaries to ; Club mer 2005 brochures, according to Williamson admits that the re- complete transformation” although 18-30 will stop their operation in a statement made to Preferente by lationship between the tour opera- he admits it is not the only place with Benidorm and Cosmos will with- Tim Williamson, product manager tor and the Costa Brava dates back an attractive product for his clients, draw from Ibiza next year, while it of the company, who announced at many years, more than he cares to who are also requesting the is also considering withdrawing STEPS the withdrawal of what was remember. “It was the pioneer, and Balearics, the coast of Almería and from the Costa Brava. once the main holiday package re- perhaps this fact is what makes our Costa Blanca. In spite of these des- In spite of Spain experiencing sort for the British. decision so re- tinations having to compete with an increase in the number of pas- Williamson Other markable”, he Bulgaria and Greece, among oth- sengers travelling individually, the states that “this British tour states, adding that er countries, “Spain will continue package market is suffering from was no rushed de- operators it is no longer to be number one”, he claims. high prices, the euro, the competi- cision. We have worth including However, the Canaries looks as tion from new destinations, the in- experienced a reduce capacity the product in though it will have more difficulties crease in low cost airlines,,,, and ap- gradual drop in in- for 2005 their programmes. in the winter “because beforehand it parently now also from to the “fa- terest for this area However, he states held a monopoly and now countries tigue” of its infrastructure. over recent years and in spite of our that “ we will maintain contact with efforts have been unable to guar- our suppliers and we do not rule out antee our clients the type of hotels returning to the area in the future”. they demand. The hotel offer is ob- While the Costa Brava continues solete in today’s global market and to attract a market in search of al- the properties do not have compet- ternatives, such as boutique hotels, itive rates”. Lloret de Mar, Blanes and Tossa The product manager states that de Mar seem to be suffering from “our clients have become more dis- being what Williamson calls a “fa- cerning as they are now accustomed tigue destination” and he assures

18 preferente · World Travel Market · November 2004 CountdownCountdown hashas begunbegun forfor thethe AlmeríaAlmería 20052005 MediterraneanMediterranean GamesGames Work on the hotel and sport installations in El Toyo are significantly progressing

Vivi Hinojosa/Madrid ing built to house athletes, jury members and man- Fadesa is building the 4 star hotel which will house athletes With only one year to go before the agement. With the char- and judges and will be managed by Barceló. celebration of the Mediterranean Games acteristics of a modern residential tourist The figures relating to the project, and able to cater in Almería, work is progressing at full complex and built thanks to the joint back- designed as a modern enclave for for 7.000 jury speed, with some completion dates even ing of the public,the Almería Town Coun- tourists, residents and leisure activities, members and ath- being brought forward, as has occurred cil and local government,through the An- leave no room for doubt: 260 hectares, letes; likewise, the multi-purpose cen- with the Plaza del Mar, inaugurated last dalusian Public Land Company,it hopes 52 million euros of public funds in in- tre with tertiary, commercial, welfare March, measuring 181.000 square me- to generate stable employment and vestment and 600 millions in related and educational equipment, and a budg- tres and built with a budget of 7.56 mil- wealth in the town, while increasing the investment, 2.000 direct positions of et of almost 10 million euros. Once the lion euros. Here is where the international tourism offer. work and 7.000 indirect jobs, over Games have concluded it will be used competitions will take place,and after the 4.000 homes of which 1.056 will be in- as a convention centre and a back up close of the Games it will become a leisure El Toyo is the result of side the Mediterranean Village, sev- to the El Toyo housing accommoda- activity area for the public. This is just en hotels and one golf course, among tion. The same will occur with the a sample of the ambitious strategy em- a 52 million euro public other installations. The work is well ad- Mediterranean Stadium being built for ployed by the Andalusian tourism au- investment and a 600 vanced and deadlines are being met rig- 20.000 spectators at a budget of 21 mil- thorities to create a new tourism centre in million private investment orously. By the end of this year the Vil- lion euros, conceived as a multi pur- El Toyo, 15 kilometres from the capi- in its 260 hectare area lage will have been built with some pose installation and future congress tal where the Villa Mediterranea is be- 180.000 square metres’ surface area and exhibition hall. Spain still the favourite destination with the British, for now , Turkey and Bulgaria offer very attractive rates for tourists

Cristina Fernández /Londres tendencies and market statistics, proved. Both Spanish hoteliers and confirms that “the main reason the British tour operators are suffer- In spite of the euro and compe- British go on holiday is to relax in ing the consequences of market tition from countries such as Bulgaria a sunny climate”. 71 percent of those changes. TUI, for example, has di- or Turkey, Spain is still the favourite who travelled in the past twelve verted 250.000 packages from destination with the British, ac- months chose a beach holiday. In this Spain to other destinations com- cording to the latest survey on mar- sense, Spain is still ahead of its com- peting with better prices and qual- ket tendencies. The question the U.K. petitors, for 43 percent of these trav- ity this summer, according to Pe- tourist industry is now asking itself ellers went to Spain followed by 15 ter Rothwell, head of northern Eu- is, for how long? Although 43 per- percent to Greece. rope. Rothwell is convinced that cent of British holidaymakers who On the other hand, the fact that one of the problems Spain will have bought packages over the past year the number of independent trav- to resolve prior to being competi- went to Spain, between January and ellers has increased by one-third tive is employment related. In his March 2004 100.000 visitors less over the past year, according to opinion it is important to elimi- than in 2003 visited the country. sources of the Tourism Office, does nate permanent contracts and con- The survey which ABTA organ- not mean that the panorama for tra- tract young people with a desire ises each year to get to know latest ditional establishments has im- to work in tourism. This is not the first time that complaints have been allowing the independent traveller raised in the British tourist indus- to get to know parts of Spain where try regarding the unpleasant man- before access was difficult. This is ner of staff who are “burnt out” the case of Ryanair, which is com- because they have been doing the mencing routes to Santander and same job for twenty years. Zaragoza from London Stanstead. Although price is diverting “The problem with clients who tourists towards more competitive choose low cost airlines is that these resorts, cheap offers to Spain can still are not precisely the ones who fill be found in the travel agency win- hotels”, said Rothwell. dows. Although agencies are already For his part, the director of AB- selling the 2005 season, they still TA, Steven Freudmann, brought to have offers such as two weeks in mind the fact that in tourism noth- Ibiza or Mallorca at the end of Au- ing is forever, and Spain runs the gust for around 200 pounds. Also, risk of losing position. “We must the Costa Brava has been given a not forget that dominated the vote of confidence. In spite of ma- package market in the sixties and jor tour operators having decided beginning of the seventies, and Yu- to eliminate it in the future, other goslavia was the second most pop- more smaller agencies such as Sun- ular destination in the eighties and ways Direct, state that demand is beginning of the nineties, so noth- back and they have filled planes up ing in this industry can be guar- to September. “Operators blame anteed”. Freudmann added that “if hoteliers saying the establishments we add to this the fact that places are obsolete, but this is nonsense, as such as Croatia, Turkey and Bul- most of them have been renovated garia have an enormous price ad- and the resorts are impeccable” state vantage, we could be watching the sources from Sunways Direct. beginning of a swing in the dom- Meanwhile, the offer of flights on inance Spain holds in the holiday low cost airlines continues to grow, package market”. InternetInternet isis nownow thethe cheapestcheapest optionoption whenwhen bookingbooking accommodationaccommodation Prices on the net are 21 percent lower than over the phone

Vivi Hinojosa/Madrid Companies Using Telecommuni- The Spanish hotel industry is ex- cations (Aetel), and based on a sur- periencing the same tendency wit- Hotel groups have decided to fol- vey with five hundred Spanish es- nessed in other countries with the low the airlines, who for years have tablishments of 3 to 5 star catego- promotion of reservations booked been offering advantages to con- ry and the same number of clients. directly with the hotel guarantee- sumers purchasing tickets on the in- The study reveals that three out of ing the best price and even refunds ternet, and develop the possibili- four users choose this means of find- if the user can find a better rate else- ties available on line to reach their ing a better price, although only 2 where. This is reflected in the study clients directly with the aim of cap- percent purchase directly through carried out by KPMG consulting be- turing repeat guests and avoiding in- the web, in spite of over one-third tween 310 hotels in 13 countries, termediaries, and in this way fight- admitting they surf the web before which demonstrates that practically ing competition from holiday web- choosing an hotel. all hotels offer different tariffs for sites such as Expedia, Travelocity the same room depending on the and Lastminute.com. Only 2 percent reservation method employed. In Internet is the new battlefield. of users book fact, only 2 percent maintain the Hotel reservations booked through same price through all booking chan- the web are already 21 percent accommodation nels, whether direct or indirect. This cheaper than those booked by directly through phenomenon has been favoured by phone, according to a report pub- Internet Internet becoming the enormously lished by the Association of Tourism popular means for purchasing trav- el and hotel accom- Spanish hotels raise modation to such a prices 62 percent point that in coun- during congresses tries such as the Spanish 5 star hotels take advan- United Kingdom six tage of the celebration of fairs and out of ten case stud- congresses in their towns to in- ies revealed that crease prices 62 percent, against prices were cheaper the European average of 46 per- over the net than cent, according to a study car- those obtained from ried out by Expomundo, part of the hotel itself. Tui España, which has analysed The research the tariffs of 54 European estab- showed that on line reservations are practice this is difficult because they lishments of this category, 18 of becoming more popular across the are being offered cheaper tariffs them in Spain. The most notable globe. The most remarkable example through other sources. Therefore, case is in Madrid, with increases is in the United States where in the users will continue to employ these of up to 81.5 percent on their ofi- past year Internet was chosen on 14 indirect paths until they are sure that cial tariffs, as opposed to the 57 percent of the occasions, a percent- the establishments guarantee the best percent in Barcelona or 47.5 per- age which in 2006 will be 24 per- price”. In this regard he also says cent in Valencia. This places Span- cent. Spain is still a long way from “most of the large hotel chains guar- ish hotels in second place in price these figures for, as in the words of antee the lowest tariffs to attract clients hikes during professional events, Joan Martí, senior manager of KP- who today trust the on line agencies only overtaken by the Italian, who MG’s travel, enter- more , but the raise their tariffs 65.5 percent; and tainment and Clients in Spain process will have before the French (57,5 percent) tourism depart- prefer to book to be managed and and German (29 percent). How- ment in Spain, “al- controlled more ef- ever, Jaime León, Managing Di- though the aim of through on line agencies ficiently for our rector of the tour operator, states hotels is to en- rather than through study reveals that “this increase responds in a cer- courage clients to the hotel websites this guarantee is tain degree to the logic of sup- book directly, in rarely fulfilled”. ply and demand”. with air transport, accommodation and car hire. NewNew destinationsdestinations Kuoni has also embarked upon a similar strategy, including a health programme for the first time ever, in this case, in the Maldives, and train forfor thethe journeys across Canada, the possi- bility of staying at the Starwood Ha- ciendas in the Yucatán peninsula or, experiencedexperienced travellertraveller with departure from México, visit- ing the Mayan countries such as Guatemala, Honduras and Belice. Long-haul tour operators For its part, Nuba has designed pro- extend their offer grammes within Tanzania such as ‘Gorillas in the clouds’following the path of Dianne Fossey; and a jour- Vivi Hinojosa/Madrid ney across Sumatra, Java and Bali; or an opportunity to deep sea dive Nowadays no-one doubts the ex- in the Galapagos Islands; and also, perience of the Spanish long-haul the above-mentioned journey to traveller, a segment of the market Greenland travelling by boat and in which recent tendencies reveal on foot across the south of the largest greater spend, a demand for more island in the world, offering con- original and specialised holidays, less seasonal travel and a greater Wholesalers extend their demand for quality in the servic- es provided. In the light of this offer of tours and activities in trend, and with the double aim of consolidated destinations, and attracting a new clientele or the trav- promote new destinations and eller who already knows the des- destinations and more facilities at gramme of exclusive greater facilities when booking tination but is searching for a dif- the time of reservation by way of an journeys (such as ferent reason for returning, spe- added incentive. One example of the Silk Routes and cialist tour operators are prepar- this is the pre-reservation system Samarkand, or tact with Eskimos, whale spotting or ing their positions. Therefore, be- which allows the client to organ- visits to countries contemplating the enormous glaciers sides extending their offer of itin- ise things in advance without any such as Ethiopia, Mauritania, Kir- and the aurora boreal. An adventure eraries and stays in countries al- commitment nor any financial guizistan, Mongolia or the Antarc- in Papua, an elephant safari in Thai- ready consolidated, including in penalty should they cancel. Nobel tic) has extended its offer to Mex- land or Hemingway style in Tanza- some cases a different comple- tours-Indoriente has also launched ico, Scandinavia and Peru, the latter nia, an exclusive round the world trip, mentary offer, they are offering new its “express programming” for long offering the possibility of sampling or a visit to the ancient icelands of distance journeys, a rapid and di- its wonderful cuisine. Likewise, Patagonia are the most exotic trips rect reservation system providing aimed at the client who prefers to proposed by Nobel Tours. In all,they immediate confirmation after travel alone, their catalogue ‘Se- represent a wealth of options across choosing the date of departure. cret Europe’ offers individual de- the five continents to attract a mar- The forecasts for growth in long- partures to European destinations ket with enormous potential. haul travel are most optimistic this year, with an estimated increase of around 40 percent in sales. Whole- salers do not want to lose any pos- sible opportunity and some have opt- ed to include new countries in their programmes. Mongolia, Greenland and Alaska, Great Cayman and Ti- bet are some of the new destinations in the brochures of Nobel Tours, the independent agency Nuba, and Kuoni, respectively. Another of the options consists in extending the of- fer with new attractions or add-ons. This is the strategy followed by Catai Tours which, besides having a pro-

Spain, increasingly difficult to sell for city tour operators Barcelona maintains levels but British tourism seeks other destinations

Cristina Fernández/Londres creased 25 percent while charter and schedule flights dropped by 1,8 per- Not only sun and sea package tour cent, according to information re- operators are facing difficult times, leased by the London Tourist Office. but operators specialising in city Paul Bradley, Purchasing Manag- breaks are also finding it increasing- er for the tour operator Cresta Holi- ly difficult to sell their products in days, admits that low cost airlines are Spain. On the one hand, Spanish cities helping at the time of selling his prod- are suffering from the competition ucts and that the more flights there are of other destinations outside the eu- the more possibilities of attracting this ro zone, or ones which are better com- type of tourism. However, to reach cer- municated with the United Kingdom tain cities there are stopovers and most and, on the other hand, travellers are people opt for direct destinations. Va- increasingly booking their plane and lencia, for example, is a city “that has hotel tickets directly. John Harding, improved greatly over the past five director of Travelscene and Chairman years, but access is limited”. of ABTA, recognises that “a series Barcelona continues to be the of factors are affecting sales to Spain. most popular Spanish city among the British, although the rest are suf- more simple slogan would have been influence greatly at first, but now its An increasing fering from competition from oth- more positive. You have to already impact can be seen, especially with er interesting destinations. “Al- know Spain in order to understand tourism to cities”. number of though there is demand for this type of advertising”. The increase of the independent tourists Barcelona, this year it is proving dif- traveller has a positive repercussion organise their ficult to sell the other cities. Our Independent Tourism on Spain. The Paradores, for exam- clients are seeking new destina- ple, have seen their British clientele own holiday tions”, states Bradley. Cresta offers Even after becoming an expensive increase, and car rental companies the main Spanish towns and regions destination, statistics prove that the have increased the volume of busi- The euro plays a part but we are al- such as Andalusia, which is easier to number of independent travellers is ness, besides the effect, to a larger so noting that many travellers are or- sell than places in central Spain. on the increase and that they exceed or lesser degree, of British visitors on ganising their own journeys due to the In reference to competition from the number of package holidays. The the local economy, in- increase in low cost companies.” abroad, the Cresta representative London Tourist Office receives calls cluding those with their Harding assures that Barcelona holds refers to price as the main obstacle. daily from people interested in the own home in Spain. The number six position this year in the list “Spain is expensive. You only have to “other Spain”. From questions about average spend of a of cities, while last year it was fourth. cross the frontier and you are in Por- the Xacobeo to rural tourism in Mur- British visitor, whether Likewise, Madrid has dropped from tugal which is cheaper”, he remarks. cia, interest in the country does not an independent traveller number eleven in 2003 to number thir- Both Harding and Bradley co- cease among the British. or one travelling with a teen this year. Seville has also dropped incide in thinking that the Madrid According to the founder of Re- tour company, amounts in popularity from 19 to 22. terrorist attack did not influence too sponsabletravel.com, Justin Francis, to 80 euros per day. EasyJet insists that Spain is still greatly on demand. “People are now “price is important, but tourists are very popular with the British and that accustomed to the fact that this type looking for more authentic holidays with 54 flights a day they hope to car- of thing can occur anywhere”, says nowadays. They want to make their ry five million passengers this year. the Travelscene director. On the oth- own reservations through Internet or According to company sources, “we er hand, while both coincide in think- with a specialist tour operator”. are experiencing a significant an- ing that the advertising campaign The fact that Spain received more nual growth”. One indication of the “Spain Marks”, aimed at attracting British independent travellers than increase in low cost air flights are the beach and city tourism, is both eye- France in 2002, is a good sign, com- figures which reflect that between catching and creative, the purchas- ments Manuel Butler, head of the April and October the number of AE- ing manager of Cresta qualifies it Spanish Tourist Office in London. NA slots for low cost airlines in- as somewhat abstract. “I think a He also adds that “Internet did not

26 preferente · World Travel Market · November 2004

in the former and 50 percent in the lat- ter, represents a drastic change in the The low cost tourist offer. If a client arrives at any of these tourist areas with a low cost mentality, he will be seeking other services using the same formula. This tourism revolution represents a revolution in the organ- example that isation of European travel companies established with the The system affects all sectors of the tourist industry and in some cases there is a need to American company Alamo,which has completely reinvent the set up. helped it increase its presence in Ger- Josep Ejarque/Madrid all, can adapt to demand, without us- The first example of the invasion of many,Austria,Switzerland,Belgium, ing the traditional intermediary and the low cost concept in other sectors of Holland, Portugal and Italy. Using the Some ten years ago, when avia- distribution channels. the industry is in car rental. Easycar same logic, the initiative of the Glob- tion pioneers began developing their Client demand for low cost con- was the first car hire company to re- alia Group in the car rental sector, low cost airlines, few could imag- cepts is on the increase, as seen by spond to this type of reservation and through its new company Pepecar.com, ine how their idea would cause a rev- the fact that in Spain alone low cost although its competitors warned it fits in with the idea of profiting from olution in the industry similar to that companies handle 95 percent of all would have no future because they client demand for hiring a car through caused by the appearance of mass new air traffic to the country, with thought clients would not accept hav- Internet to be collected at the airport tourism and package holidays. But increases over and above 34 percent ing to pick up and deliver the vehicle upon arrival. Thanks to the agreement new tourism companies are basing and this signals a need for change. at a point outside the airport build- with Easyjet, the group is in a privi- themselves on the low cost concept The worst affected by this turn in ing, in reality Easycar has consoli- leged position to profit from the flow while those already in operation see market trend are charter airlines. A dated itself in several markets and is of tourists brought to our coasts and the need to transform their compa- survey carried out by the Tourism now a serious competitor to traditional cities by low cost flights. nies and evolve in the direction of Study Institute (IET), reveals that low car hire companies in tourist resorts. concepts similar to the low fares. cost airlines have taken over more than Its growth has been spectacular and re- Good business The model introduced by low cost 23 percent of passenger market in cently it announced it now has over 740 airlines is now being applied to oth- Spain. Evidently, the phenomenon oc- rental centres in 21 countries, thanks The transport sector is where the er areas of the tourist industry, with curring in Girona-Costa Brava airport not only to its own centres but also to low cost business concept has tak- low operative costs, simple, change- or that of Altet in Alicante, where pas- the alliances and partnerships signed en deeper roots. So much so, there able products and ones which, above senger growth is over 4.000 percent with different local companies, as for is no business development initiative business and industrial activity suits panies are beginning to apply the same this type of product. In its business plan philosophy to their own business. the company does not envisage fly- The first to do so is the Scandi- ing to secondary airports,which would navian company Speedferries, who be normal for a true low cost airline, have launched a Channel service be- but from its present bases. It will fly tween Boulogne and Dover with a about aviation to Paris,Brussels,Palma and Ibiza and high speed catamaran. The concept and tourism projects. will extend to other airports such as of a low cost sea carrier is a return jour- today that is not based on the low cost Vueling has managed to join the Madrid and a few in central Europe. ney from 76 euros with a crossing premise. The birth of a new com- forces of financial investors such as the It is evident that Vueling is using the of 50 minutes, including the car and pany in Spain such as Vueling is tes- capital risk company Apax Partners, concept and attraction of the term low up to five passengers in the price. Tick- timony to this, although it is not alone investing 40 percent, while 30 per- cost to get a foot in the market as its tar- et reservation is through Internet or for in Europe several new low cost cent is in the hands of Hemisferio In- iffs are not truly those of a low cost air- a call centre which, in this case, car- companies are in the budding stage. vestors, owned by the Planeta group. line. In line with the attraction of the ries a supplement. Evidently, there The remaining percent is held by the idea, low cost travel has also now en- is no commission for travel agen- Ferry companies directors and a small part by JetBlue, tered the maritime world. If the busi- cies. In line with this example we have the American low cost airline, who ness of low air fares is a high frequency the regular road transport services be- are beginning to apply also contributes its know how. How- of travel, the intensive use of the air- ginning in Europe; in the case of Spain the low cost philosophy ever,analysing the profile and plans of craft and direct distribution,ferry com- we have the company Megabus. to their business, as Vueling, it is not really a true low cost as we know it, but a new kind of air- Speedferries has done line. More than a low cost, Vueling is a low fare for its desired client pro- Vueling is an example of how the file is not the typical tourist but a mix low cost tourism concept can be between professional travellers who good business and interest financial fly for work reasons, and the tourist. investors totally unrelated to the Its plan therefore is to operate from tourism industry when, a few years a base that is attractive to both, such ago, everyone knew that investors as Barcelona, and to a lesser degree, kept their distance when hearing Valencia, where the existing offer of ‘Joker holidays’ alleviate the uncertainty

The offer is concentrated in of last minute bookings both archipelagos, the Levant and the Costa del Sol.

Greatest demand is in the United Kingdom

Vivi Hinojosa/Madrid sures that “this year the offer of this Spain In this vein, Sol Meliá launched type of holiday has not increased.” its “Summer Offer” giving special The large European tour opera- These packages are known as “hol- In Spain this practice is limited prices for a minimum of seven nights tors return to old formulas in order iday savers” and usually have Mal- due to the Legislation on Combined in some of its properties on the Cos- to alleviate the instability generated lorca as the destination, the key hol- Holidays, which obliges operators to ta del Sol, which was confirmed to the by late holiday bookings in all Eu- iday region in their programme. In offer the client all possible infor- client one week before the arrival date. ropean markets, especially in the United Kingdom, where this type mation regarding their holiday at the Playa Senator has a similar promotion, Britain. One of the solutions used of holiday has been common prac- moment of signing the contract, and when booking two weeks in advance is that of the joker holiday, a mod- tice for the past 25 years, they are therefore the name of the hotel is and for a minimum five night stay, el which places clients in hotel beds now called ‘Allocated on arrival hol- revealed from five to seven days pri- which it extends to the entire Region according to availability, assigning idays’ and are marketed under slo- or to departure. This product is con- with its “Andalusian Roulette”, a sys- the property a few days prior to the gans such as centrated in both tem which has an open destination and client’s departure from home. Upon ‘Late Choice’, Sol Meliá, Playa Senator, arichipelagos, guarantees accommodation with very purchasing the package the client de- ‘Sunsaver’ or the Levant and attractive prices in a 4 star property, termines the destination, category, ‘Pricebuster’. Partner, Riu, Hot Hotels the Costa del depending on availability, on the coast and services required and, in some First Choice us- and Hoteles RH are a Sol, where na- of Almería, Costa del Sol,Almuñécar, cases, the hotel chain, and benefits es this formula few of the hotel chains tional hotel Costa Ballena or Isla Canela. Part- from lower rates than those in the in the last minute chains have a ner also uses the same ‘roulette’ ter- holiday brochure. This procedure is market, only in- offering this product large presence. minology for marketing a stay in any popular among those who always forming the And, as Ruperto one of its three establishments in Mur- search for last minute offers and who client of the flight details, destina- Donat, Managing Director of Amave cia, when it is a seven night stay with enjoy surprises, travelling in the cer- tion airport and board arrangements. (Association of Spanish Tour Op- arrival on a Saturday or Sunday, and tainty of knowing that minimum This option, states the operator, was erators) has stated, the hotel groups the name of the hotel is confirmed five quality is guaranteed in line with the invented to “differentiate those who “are those who are now promoting days before departure. Hot Hotels, di- category or hotel group chosen. had booked early through the this offer among establishments they vides the offer by category (vip and Sales of this type of package give brochure from those who only want- own in a determined area, while the standard) in its six hotels in Almería, the tour operator greater flexibili- ed a discount, but nowadays it is a tour operator only does so when he and Hoteles RH with its five proper- ty, especially in high season, as the market segment which prefers to wait has guaranteed contracts in a resort ties in Benidorm, follow similar strate- director of Tui Spain, Tania Sauer- and obtain a reduced price, running and markets by category without giv- gies. Riu offers the same product with wein, admitted for it “allows us to the risk of not being able to choose ing the name of the establishment un- its ‘Riulette’ of 3 and 4 stars in Mal- make best use of contingencies and the hotel and of being left without til a number of days prior to the de- lorca, although they warn that “this empty allocations”, although she as- anything available”. parture date”. system is not a norm in our hotels”.

30 preferente · World Travel Market · November 2004

SeaSea andand sandsand tourismtourism hashas beenbeen thethe winnerwinner inin summersummer 20042004 This is the only product to have worked in all tourist destinations

V.Hinojosa-J.Serrano-R.Collado- when they made remarks such as this first week in July, the Balearics had P.Morata/Madrid-Barcelona option being “outdated” and “obso- a turnaround in beach holiday book- The recently reviled model of sea lete”, has in actual fact been the only ings. Tourist resorts did better than and sand, subject of much criticism by model to have worked well in Spain last summer thanks to late bookings, the government ministers, José Mon- last summer. In all tourist resorts the the impact of low cost airlines and tilla and Cristina Narbona last summer, only products that have not proved dif- the recovery of the German mar- same level or slightly lower, in some ficult to market have been beach hol- ket which, together with the Span- months, than last year. idays, as has been the case in the ish, Italian and Eastern European Balearics, the Canaries, the Levant and markets, led to an increase in oc- Canarias Andalusia. On the other hand, the re- cupancy. mainder of options have suffered a drop Both local Government, local busi- A similar situation has occurred in in occupancy and in profitability com- nesses and tourism bodies coincide the Canaries where statistics reveal pared with the same period in 2003. in underlining the fact that beach hol- a good influx of tourists during sum- It is therefore unsurprising that the Sec- idays “have been the winner in sum- mer, especially in the month of Au- retary of State for Tourism and Com- mer 2004”, criticising the strategy gust, where there was even slight merce has had to swallow his words of central Government when stating overbooking on the odd occasion. Ac- and now claim that Spain’s main tourist that this model is outdated. In a break- cording to the local Tourism coun- attraction is the offer of sea and sand. down by islands, Mallorca has been cillor, Juan José Herrera, “the islands In the case of the Balearics, the more popular than Minorca and Ibiza, have been overflowing” with a high season had a bad start but from the whose occupancy has been on the occupancy, even reaching an over- booking situation in most islands” states that “a Community receiving by 2.19 percent, giving a global figure which signifies that all their efforts over 20 million tourists a year cannot of 52.2 percent, but these variables are “have borne fruit”. be in crisis; visitors are looking for directly related to a growth in hotel of- Despite this, the accumulative rate sea and sand and our region is ideal be- fer that demand has not been able to fill, for the year is still a long way from cause not only do we offer the tradi- and to the boom in the residential seg- the numbers registered in the previ- tional model, but also alternatives such ment of the Andalusian region. ous year, meaning that efforts must as holidays inland, holidays in the city continue in order to improve con- and cultural options”. Catalonia tracting for next winter. In the first seven months of the year, the Ca- Andalusia In Catalonia reality was finally not nary Isles have lost 333.000 visitors. as drastic as forecast and the summer In regard to Andalusia, figures re- tourist season was not as bad as predicted The Region of Valencia lating to the summer and to the first eight by some,nor as good as some politicians months,similarly reflect a disparity with had led us to believe it would be. In the region of Valencia, in spite the criticism by some of the country’s Catalonia still welcomes many of initial pessimism in forecasts by tourism authorities regarding the tra- tourists, although these are more from hoteliers, sea and sand has re-vindi- ditional sea and sand holiday model. segment markets with less spending cated its dominance along the entire Global statistics indicate that holiday- power. Tourism representatives of the coast this summer, with an average oc- makers in Andalusia between the Catalan Government have not di- cupancy in August of 94 percent, four months of January and August this year vulged statistics nor provisional bal- decimal points above last year, ac- have increased by 5.72 percent (462.768 ances, therefore, for this season one cording to statistics provided by the more than in 2003 out of a total of can only go by hearsay and other Tourism Council. The figures thus con- 8.548.323 people), while overnights sources of information, but it seems firm its “excellent state of health”, as have increased by 4,33 percent safe to say that possibly there has been is reaffirmed by the number of pas- (1.119.063 more than last year out of an increase in tourists to Catalan air- sengers passing through the region’s a total of 26.956.361 overnights). On ports thanks to the low cost airlines, airports which show an increase of 29 the other hand,the average length of stay but this type of tourist who travel out- percent in Valencia in the eighth month in Andalucía has dropped compared side the tour operator packages, do not of the year. In this regard, a spokesman with the first eight months of 2003,0.04 usually stay in hotels, but at campsites from the Valencia Tourism Agency days less, and occupancy has dropped or in sub-let apartments and studios. The Rías Baixas, Penedés, Jumilla, Jerez and La Mancha-Valdepeñas are the most popular destinations Enotourism, a burgeoning sector on the national market The top five wine cellars in visitors receive over 700.000 each year

Vivi Hinojosa/Madrid 10 percent; people interested in the structure for wine routes incorporat- logical tourism for the bodegas world of viniculture, with wine and ing visits”, a shortcoming they hope themselves and for the tourism in- Enological tourism offers visits cultural expressions as main objec- to overcome after the recent inaugu- dustry, very few initiatives are being to large wine cellars, and a chance tives, representing 35 percent; those ration of the Museum of Wine Cul- carried out. This is confirmed by Vi- to penetrate the world of wine mak- who travel first for culture, followed ture in Briones. The number of vis- noselección, a company which un- ing and discover the gastronomic by gastronomy and then the wine itors registered by the most popular derlines the work being carried out specialities of each production area. of a certain region, representing 55 wine cellars in Spain are, González by a number of wine cellars such In this regard, César León, Manag- percent of the total. Byass, 200.000 per year; followed by as Finca Torremilanos (Aranda de ing Director of Vinomio, the only In order of importance these trav- Freixenet and Codorniú with 150.000 Duero), Palacios (Álava) or Arzua- consultancy group specialising in ellers mainly visit, The Rías Baixas, each; Bodegas Torres with 125.000 ga Navarro (Quintanilla de Onési- wine marketing in Spain, underlines Penedés, Jumilla, Jerez and La Man- and Domecq with 75.000 visitors each mo), which offer visitors the pos- four segments within the national cha-Valdepeñas, a list which surprises year. However, in La Rioja, no bode- sibility of staying overnight in their market attracted by this product, for it does not contemplate La Rio- ga registers more than 20.000. installations which have been con- these being experts, who chose a des- ja. León believes that the reason for Although in Spain the wine sec- verted into hotels. Also, the wine mu- tination solely and exclusively for this is “the region’s lack of infra- tor is conscious of the benefit of eno- seum network is actively contribut- the wine of the area, ing to promoting and who represent this tourism seg- ment. The celebra- Oficial backing tion of the Day of is needed in order Wine, which Vinos- elección introduced for enological in the year 2000, has tourism to take off mobilised over in our country 30.000 persons in only one weekend.

34 preferente

Tourist entertainment, a differentiating element in an ever increasing competitive market Activities offered by hotels, indispensable for attracting new clients and repeat guests

Vivi Hinojosa/Madrid to cater for the different type of clientele, according to age, sex or nationality. Span- The competitive market of vacation ish hotel chains pay special attention hotels and the demands of an increas- to children’s entertainment, especially ingly discerning clientele, are oblig- in the brands which are directly aimed ing hotel establishments to offer more at the family market and the concept of than first class installations in a strate- holiday clubs (Sol, Meliá vacation prop- gic location. For this reason, in recent erties and Paradisus in the case of Sol years hotel entertainment has become Meliá, ClubHoteles in the case of Riu; an added value for hotels, a key element Bahía Príncipe in Piñero Hoteles; or to differentiate a property from its com- some of Occidental’s individual hotels petition and indispensable for attracting such as Grand Fuerteventura and Grand new clients or persuading guests to re- Flamenco Xcaret which have an area ex- turn again in the future. The series of ac- clusively dedicated to children, while an tivities involved in the offer seek to entertainment service is offered in all motivate, promote and facilitate a greater of its 31 establishments). Specialisa- and more active participation of the tion is so exhaustive that the offer is di- tourist in the enjoyment of, and man- vided into four categories to cater for the ner of filling, his leisure time. In reply different age groups of children to bet- to the needs which arise, they have been ter cater for their tastes and needs. In this categorised into themes, creating a spe- way, parents are given free time while cific offer for each segment market. erant, adaptable, have good commu- travellers and flexible. It is however the children are not inactive during their Sport, children’s, senior citizens’or adult nication skills, be flexible, and a team more usual for the entertainment teams holiday as they are provided with games workshop entertainment are only a few worker. Chains such as Hotetur even to comprise people with a nationali- and other activities. travel to the countries of their mar- ty mix between the ages of 21 and 35 Entertainment has ket source to select the group of en- years. In Iberostar they are identified A diversity of themes reached the world of tertainers in order to achieve the best as ‘Star friends’ while in Occidental and areas constitutes congresses and incentives possible rapport between the require- Hotels & Resorts they are grouped un- the future of this sector ments of their guests and the activities der the title ‘Occidental Fun Club’. with techniques for offered. In Riu, for example, a large While tourist entertainment service where the entertainer promoting team work part of the staff employed in this de- has become an almost primary need in plays a fundamental role partment are from Belgium, for they hotel establishments, the offer has be- of these new categories. Entertainment speak many languages, are seasoned come more specialised and segmented For adults, social entertainment is has also reached the world of business, provided on two scales, day and night, especially for congress and incentive with a special programme apart for sen- groups where there are techniques for Animatur holds 50 percent of the market ior citizens. In the first category, sport promoting team work. The future lies in Established in 1982, Animtur spe- with the forecast for 2004 sur- plays an important role with tourna- the diversity of themes and areas in the cialises in tourist entertainment passing five million. Of these fig- ments, water activities and diving, mi- sector, which has managed to adapt to services which it provides in some ures, 70.5 percent is generated by ni golf, horse riding, cycling, etc. Oc- changes and widen its horizons open- 200 establishments across Spain business within tourist entertain- cidental even offers clients an oppor- ing up to new business methods. (in Andalusia, Balearics, Canaries, ment itself while 14 percent is tunity to learn new sports or to perfect The figure of the entertainer also Catalonia and Valencia), and in from activities provided to com- others. An example of this is the ‘Oc- plays an important role for his pro- Andorra, Portugal and Mexico. panies and events, a figure which cidental Academy by Guillermo file has undergone certain changes with Chains such as Prinsotel, H10, Best has grown 53.5 percent in the past Vilas’, created last summer by the myth- a clear tendency towards a more pro- Hoteles, Med Playa, Princess, Part- five years and is forecast to in- ical tennis professional and the hotel fessional status, with certain special- ner, Elba, Piñero or Fuertehoteles, crease another 25 percent this year chain in the hotel Occidental Caribbean isation. His training consists in a good are a few of their clients. In to- due to its enormous potential. An- Village Club on the Green in Puerto Pla- knowledge of at least two or three tal the company holds a 50 per- imatur has a workforce of over 400 ta, where his team of coaches provide languages, a good cultural level and cent share of the market in this entertainers and a team of 30 pro- classes on six tennis courts. At night time preferably sport or acting skills. He sector which last year represent- fessionals working in control and the emphasis is on live shows and theme should have a pleasant personality and ed a revenue of 4,6 million euros follow-up throughout Spain. evenings in order to keep clients in the be creative, enthusiastic, dynamic, tol- hotel, where they will consume more.

36 preferente · World Travel Market · November 2004

EarlyEarly bookingbooking withwith moremore discountsdiscounts thanthan everever inin GermanyGermany German Tour Operators publish their winter catalogues with more offers for the Balearics and the Canaries

Soledad Mayoral/Berlin tice” on the German market. Instead of demanding that clients book pri- Before summer has finally bowed or to 31st October in order to obtain its head, winter has taken centre discounts, this model guarantees the stage in the German travel agen- greatest discounts provided the hol- cies with brochures publishing of- iday is booked a minimum of sixty fers for skiing in the Alps or escapes days prior to departure date. However, to the beaches of Fuerteventura. this option is only available for cer- Prices are slightly lower than last tain hotels in the Canary Islands,An- winter and the recent threat of in- dalusia, Portugal and the Caribbean, creases due to the rise in petrol has with discounts of up to 35 euros per still not been reflected. person to the Costa del Sol or 56 eu- There is a repeat of last year’s ten- ros to Cuba. Neckermann —the main dency to offer discounts for early brand of the Thomas Cook consor- bookings. With a commitment to not tium— also promotes the financial fall again into a price war as in 2002 advantages of early booking. In all early bookings, a 3 percent reduc- featured in the catalogue “Extra Sun”, and 2003, the large German operators the winter catalogues of their divi- tion on last year, for hotels offered some 115 in all, offer discount on have increased sions “Flu- by both companies, some 144 in bookings made before the end of Oc- this winter what Tour operators greisen”, “Fam- total. The tour consortium has de- tober. 36 of these hotels also offer “low became the gen- ily” and “Young cided to re-direct the Tjaereborg cost rooms”, with the same facilities eral tonic of sum- offer large & Sports”, more brand which, from this winter, will as other rooms but at a lower price. By mer packages: discounts attractive rates dedicate itself to “low cost” holidays. combining both options one can last minute bar- for early are offered for In Alltours, the largest independ- achieve a saving of around 29 percent gains are no those purchasing ent German tour operator, the hotels on the brochure price. longer available booking before 31st Oc- in Tui, Necker- tober. Should Canary Isles and Balearics, mann, ITS and company, and those any prices be reduced as from No- major protagonists in brochures wishing to save money on their hol- vember, the tariffs will be adjusted ac- iday must book as early as possible. cordingly so that those who made The star destination for winter is, sport that is the rage in Germany, Tui confirms the success of this an early booking will also benefit without a shadow of a doubt, the the Nordic Walk, and offers this strategy: offering a financial advan- from the new reductions. Canary Isles where, in general, ca- discipline in , Gran Ca- tage to those who reserve early “we In long-haul travel to the Caribbean pacity has been increased in Gran naria, Costa de la Luz and Madeira. have managed to persuade clients to and Asia, Neckermann clients can al- Canaria, Tenerife, Fuerteventura In LTU Touristik, as part of its strat- decide beforehand when and where so save up to 164 euros per week and and Lanzarote and where La Pal- egy to position the brand names they want to travel”, states a around 50 euros per week in mid- ma is featured for the first time of its consortium, ITS has increased spokesman for the tour operator in dle- and short-haul journeys. in Neckermann’s “Preisknüller” its family packages and 95 percent Hannover. The largest European tour LTU Touristik, a group which op- brochure. of the hotels in its brochure pro- operator has, for the first time ever, erates ITS and Jany-Reisen, offers In general terms, a holiday in the vide discounts of between 20 and introduced the model of “60 days no- discounts of around 5 percent for Canaries is 5 percent cheaper than 70 percent for children. Its sister in winter 2003-2004 and prices company, Jahn-Reisen dedicates have also dropped in Mallorca (- itself to holidays for singles or for 4%), Mexico (-11%) and the Do- retired people in the high income minican Republic (-3.8%). Prices bracket and has increased its of- have risen to Italy (2%), Turkey fer of “special establishments”: (2%) and Egypt (4%). In regard to country homes, rural farms and this season’s novelties, we have villas for the more select clientele. the new long haul offers from And as a novelty, Alltours has for Tui to Cabo Verde, Mozambique the first time ever in its winter and a number of the smaller brochure, offered “luxury hotels” Caribbean islands, Barbados, including “the best establish- Granada, St. Lucia and Tobago. ments in each area”, according to Thomas Cook concentrates on the the tour operator.

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