The evolution of C Travel
Veterans of the travel industry blame high priced airfares and a lack of competition solely for the downturn in this summer?s tourism numbers. They also say the Island must market itself as a place unique onto itself.
?It is the highest pricing per airline ticket in the world per mile. That has greatly affected our tourism inbound. It affects the outbound from the point of view that if airfares were lower people would take more frequent trips so the airlines would still benefit,? said Carl Paiva CEO of C-Travel.
?Bermuda is clearly a gold mine for the legacy carriers, there is no doubt about that,? he added.
The high prices of airfares also contribute to the perception that the Island is expensive which is another factor that helps keep tourists away, he said. ?If you as a consumer were to contact us and say I would like to bring my family to Bermuda, the first thing we are going to do is create an airline itinerary and quote you. You?ll say, ?oh my gosh for that same price I can take a package to Aruba!?,? Mr. Paiva said.
He launched C Travel with CFO Lois Wilson on November 15, 2000 at a time when travel agents were still basically ?order takers? with 90 percent of their income coming from booking airline tickets.
Everything from SARS to 9/11, airline cutbacks and the advent of the Internet as a do-it-yourself travel agent have taken their toll since then, forcing the closure of many travel agencies globally and the evolution of any that remained in existence.
C Travel is one that has evolved to meet the needs of travellers despite the obstacles.
Mr. Paiva, formerly executive president of Meyer Travel, and CFO Ms. Wilson, lured agents to the company by offering them the opportunity to buy shares in the agency and partake in the fruits of their labour.
The original roster of nine has now grown to more than 60 today making it the largest travel agency in Bermuda.
C Travel now represents more than 60 percent of the airline business in Bermuda and even higher percentages of the cruiseline and tour business.
Parent company C Holdings also owns the Queen Street premises as well as a corporate travel management company, C2 and Contemporary Market Solutions which does the local marketing for companies such as Royal Caribbean and Hertz.
Mr. Paiva says that his travel agents are no longer just ?order takers? but now perform a role more similar to an interior designer.
?The interior designer is ?what do you like?, ?what are your colours?, ?what is your personality, your mood?, ?do you want antique, contemporary, minimalistic? and that is similar to what we are,? he said.
Mr. Paiva added that his agents are trained travel professionals whose job is to have the global knowledge about suppliers and destinations to help clients choose the right full package holiday, cruise or business trips for their particular tastes.
While airline tickets remain a large percentage of the agency?s business, Mr. Paiva does not view the growing popularity of booking air tickets on the Internet as a negative.
Rather he sees it as complimenting what his agency does by giving clients a vehicle to research trips and even do their own simple air bookings which otherwise ?monopolises an agent?s time for very little income?.
?On the airline side we have identified true airline partners that understand the value we bring to them, the amount of business we bring to them and it is millions and they commission us because of that business, Mr. Paiva said pointing directly at a decision by British Airways to create a zero commission environment. BA?s policy cut $1 million from C-Travel?s bottom line.
He added: ?There are other airlines that realise Bermuda is a monopoly. ?When there is competition to them and there usually is then I?m sure they will begin to think differently about things, but right now they have a monopoly. Their load factors are pretty secure so they don?t care,? Ms Wilson explained.
The partners are now working as consultants to develop markets for a new boutique UK-based airline which they hope will receive government approval in the first quarter of 2006. The goal of Fly First Class is to offer attractive airfares but a first class boutique premium experience on a flight.
As for the entry of other airlines such as Jet Blue to the Bermuda market, Mr. Paiva said it would be good to see new airlines bring in new clients but his agency will take a wait-and-see approach to see if newcomers work well with the travel community.
Mr. Paiva has travelled the world during his more than three decades in the travel industry and says that beyond airfares, Bermuda offers quality at a good price.
?The quality of food in our restaurants, the quality of service in most of our premium hotels match certainly the four start hotels although I wouldn?t say the five stars such as The Four Seasons, etc., of the world.
?From a point of view of food and ambience, I think we are well up there,? he said adding that other parts of the world are far more expensive with $60 breakfasts for two the norm.
While he says government is on the right track with its marketing plan, he also says the entrance of a five-star hotel would make a huge difference for Bermuda.
The travel agents however dismiss the idea of defining Bermuda as like anywhere else in the world.
While the Island is often lumped in as part of the Latin American Caribbean region they say this defies the fact that Bermuda is also a little bit American and a little bit European so Bermuda should market itself as a unique destination.
?We are similar to Monte Carlo,? Ms Wilson said. ?You would expect the same prices in Monte Carlo. It is a unique product, there is nowhere else like it and Bermuda is the same way.?