Virgin urges dynamic tourism
A Virgin Atlantic executive says Jamaica needs to take continuous steps to keep its tourism product dynamic and deliver strong value to leisure travellers amid increasing competition.
“We are confident there is still room for growth for the tourism market in this region, however, we have to consider that we aren’t the only game in town for ‘sea and sand’ anymore,” Andre Bello, the airline’s regional head of sales, marketing and communications told the Business Observer yesterday.
Virgin Atlantic discontinued its London to Kingston service last April, citing what it said was the impending unsustainability of the route. However, the carrier continued flying from London to Montego Bay and said that it remains committed to bringing more high-end leisure travellers to the region.
Bello, a Trinidadian based at Virgin Atlantic’s regional office in Hastings, Barbados, noted that Jamaica remains a vital market for the airline.
“We have increased the capacity on the London/Montego Bay route with an extra frequency of our newly refurbished 747 in summer 2012. We are forecasting growth in both the inbound leisure traveller, and the outbound ‘visiting, friends and relatives’ Jamaicans travelling to the UK,” Bello said.
What’s more is that the trans-Atlantic market, which includes Jamaica, stands to benefit from the recent merger between Virgin and Delta Airlines. Delta invested US$360 million in Virgin, acquiring a 49 per cent stake that was held by Singapore Airlines. The Virgin Group and Sir Richard Branson remained the majority 51 per cent shareholder.
“The immediate benefit to customers will come (today) when travel across the codeshare routes begin. The JFK/MBJ Delta flight is one of these codeshare flights, subject to government approval,” Bello said.
The two airlines will jointly market flights on 108 routes. Fliers can earn and redeem miles on each carrier. Each airline will honor the elite status and lounge privileges of the other’s frequent fliers.
“Customers will be able to ‘earn and burn’ on either airline. SkyMiles and Flying Club loyalty programmes will offer up to 125 per cent tier bonus miles to frequent fliers on all Delta and Virgin Atlantic flights — not just those within the codeshare agreement,” Bello said
The implementation of the Delta/Virgin Atlantic joint venture is anticipated to occur in the first quarter of 2014. Once implemented, Bello said, this will deliver further benefits to the market.
Virgin Atlantic posted an annual loss of US$201 million last fiscal year as the company grapples with high fuel prices, tough competition and a sluggish British economy. However, the company anticipates that it will return to profitability by 2015.
The Delta joint venture, which will make Virgin more competitive, is among four key strategies that will contribute to this financial performance, Bello said.
Cost savings will also have an important role to play, he noted. The company has launched efficiency initiatives with a target for delivering £45m in financial improvements in the current fiscal year.
The airline has also made changes to its fleet, with more fuel-efficient planes, and recently launched a domestic airline, Virgin Atlantic Little Red, which is expected to drive feeder traffic onto Virgin’s long-haul destinations, Bello said.