Bermuda must learn to adapt quickly
win back Bermuda's share of the tourism market from its opponents.
Senior reporter Henry Adderley spoke with the people at the head of a variety of Island accommodations to gain insight into their perceptions of the Island's former top industry.
The hoteliers give their impressions of tourism past, future and present, what they feel has caused the damage to it and what they are doing to win the war.
This is the first article of a six-part series.
Bermuda has to take off the gloves and get back in the ring if it wants to reclaim its place at the top of the tourism pile, Harmony Club president William Griffith said.
And as chief of the Island's only all-inclusive resort, after being involved in the industry for some 20 years, he appears to know something about competing in the market and the need to keep with the times.
And this is where Bermuda's downfall as a competitor for the traveller's dollar has fallen short, he argues.
"Bermuda has been slow to adapt to changes in the industry. It has not adapted faster than the competition has been changing.'' Bermuda must learn how to adapt quickly Key elements of this change include the trip booking options available to travellers and the effect of the expanding wholesale travel industry and the strengthening of air carriers' position in the market.
"Tourism has changed worldwide. There are more resorts and more fundamental ways that people can book vacations. It is substantially different than 20 years ago.'' And it was time for the Island to realise what is necessary for it to do to compete.
"Bermuda needs to realise that it has to take advantage of the new way of getting business and that the most efficient manner is the way to go.
"Sixty to 65 percent of the tourists who come to Bermuda are from the wholesale business.'' Wholesalers get special rates from air carriers and offer high commissions to travel agents.
Mr. Griffith noted that airlines pay travel agents eight percent commission for selling their flights while wholesalers pay up to 14 percent commission to agents who sell their vacations.
"Travel agents book through wholesalers. That is where the reality has to hit home to Bermuda. A much wider phenomena is happening than we can control,'' he said.
Meanwhile hotels were getting "bent out of shape'' over the amount of commission they had to pay travel agents "but you can't get something for nothing'', said Mr. Griffith.
Bermuda has to get involved in tourism's new procedures, he stressed.
"The Bermudian hotel industry has had time to adjust to this way of doing business. The guy who takes advantage of change is the one who is going to succeed.
"There is a conservative nature when it comes to selling ourself. We need to be aggressive.
"We have to compete more aggressively than before. If no-one knows about Harmony Club, I am not going to get any business. This aggressive ball game exists in the northeast of the US, not here.
"Hotels have to go after visitors with something to sell, they have to have a catch. Add to that the travel agency business in the US and there is such huge competition, gone are the days when one could say X person is a Harmony Club client.
"If a travel agent is given an incentive to sell Cambridge Beaches then X is going to be told to go there. You literally have to develop incentives for travel agents.'' This differed from the past when it was easy to get business, he noted.
"Before it was easy to get business. What a local hotelier has to do nowadays is invest more in sales efforts and be more visible to travel agencies.'' And once you have business coming through your doors, you have to manage it in order to make profits, pointed out Mr. Griffith.
Sales costs have increased through the higher commissions to travel agents and higher labour costs.
Once these two areas have been looked at and taken care of, said Mr. Griffith, the impetus becomes maintaining guest figures year round.
"The only way for the hotel industry to survive is by having consistently good occupancies year-round.'' And the responsibility for this remained with hotels, he added. Tourism Department efforts have led the way but individual properties were accountable.
"Over the last 18 months, the Minister and the department have gone through a lot of auditing of themselves. They opened themselves to MCA and Monitor who have examined what they are doing and how they are doing it.
"They have made genuine attempts to be more aggressive in the market place and be more visual and use the technology of the market place like the Internet and direct mail.'' Included in these efforts were new marketing schemes which Mr. Griffith backed wholeheartedly.
"Bermuda has been in the limelight more this year. Radio Bermuda has got to be the best thing we have done in the last five years as far as marketing is concerned.
"It is not an accident when business comes. They have taken the money and increased the frequency of Bermuda being uttered on the radio. It has pushed Bermuda's name up there. The radio is reaching people and should be extended to the winter as well.'' In wrapping up, Mr. Griffith pointed out that tourism partners had to be committed to competing.
"The tourism industry is not for the faint-hearted. It is literally all about perseverance and smarts and riding out the tough times. Tourism goes in cycles.'' And Bermuda was on the way back up, he prophesied. "I think we are on the upward swing of the cycle.
"It is tragic to hear of people closing down around you but if hotels are closing down then its a bit more business for the ones who are still there.''