Prices Are Good and Cancun is Hot: Canadian Travel Execs Look at 2018 Trends

Cancun is hot, prices are excellent and bookings are solid.

TravelPulse Canada chatted with five of the country's biggest travel names to find out what's hot for 2018 in terms of trends, prices and destinations. They all had varied viewpoints that shed light on what's shaping up to be another great year for folks in the Canadian travel biz.

"Pricing, I think, is at an all-time low in terms of packages," said Frank Demarinis, President and CEO of Travel Brands. "Four or five-star places in the Caribbean and Mexico can be found for less than $1,000."

Demarinis said his flight and cruise business is growing in double digits and that Cancun and the Mayan Riviera are outpacing their usual numbers.

"I think people looked at some Caribbean destinations hit by the hurricanes" and shifted to other spots, he said. "Hawaii business is up for us, for sure. So are California and Florida."

Demarinis said Vegas lost some business after the mass shooting, but that US business as a whole hasn't dipped because of any anti-Trump sentiment.

"Mexico is hot, hot, hot," said Nino Montagnese, Managing Directgor, Air Canada Vacations. "Jamaica and Cuba have picked up very nicely, too. Sales have been a bit last-minute but they're both improving, so that's good."

"We just launched our Escapes Brochure, our Ultimate Escapes," Montagnese said "It's a luxury lineup with 43 hotels that span Mexico, the Caribbean and a bit of the U.S. A beautiful little gem can get lost in our regular brochure so we pulled them out and they're doing really well.

"The best thing we did was launch our Europe brochure early as we're capturing a lot of European bookings," said Montagnese. "Greece is doing really well and Portugal, too. And Paris. Those are our three top ones right now. We've added Croatia this year and that's been big. People really want to see Croatia and Prague and Bucharest and Budapest, too."

On the Canadian front, Montagnese sees a lot of folks heading to Halifax to explore Atlantic Canada and see the city where many Canadian immigrants have arrived.

"Overall I'd say business is good," said Tim Croyle, Vice President and General Manager, WestJet Vacations. "Generally, consumer confidence in Canada is pretty strong. The kind of terrible weather we've had always helps.

"In terms of what's popular or moving for us, I'd say Belize and Costa Rica both are strong. People are looking for something a little different; a bit more adventure and more of an eco-experience. So those two are doing well. Last year for this winter we launched our WestJet Vacations collections, with family, adult and luxury experiences. Adult and luxury are doing quite well in particular. There's added value from our hotel partners and with our rewards program. If you book adult or luxury packages you earn double dollars. So you can book and earn rewards, then double those, and then book with your WestJet credit card and you earn there, too."

Croyle said Mexico, Jamaica and Hawaii are doing well in the adult and luxury categories.

"Obviously the hurricanes last year moved a lot of bookings around. Mexico benefitted a lot, as did some English-speaking areas of the Caribbean. Aruba and The Bahamas did well. So did Antigua."

Croyle said recent reports from the Conference Board of Canada show capacity from Canada to the Dominican Republic is up 13 per cent, while Jamaica is up 12 and Mexico up 11 per cent. Cuba is down, as are St. Martin, Turks & Caicos and Puerto Rico.

"For 2018 we're finding our (sales of) guided tours have increased substantially," said Nicole Bursey, Commercial Director, Air Transat. "We've changed our approach on how we're training agents and providing more workshops so they can compare us with the competition and look at our pricing. I think we're demonstrating value on that as we include airfare. It could also be because we have an aging population with a certain amount of affluence. Not that you have to be old to enjoy a guided tour, but sometimes people want someone who can take care of things for them."

Bursey said traditional destinations such as Italy are going great for guided tours. Folks also are booking the Czech Republic, Croatia and Spain.

Bursey said the Transat cruise business also has had a solid start to the year, perhaps for the same reason guided tour bookings are up.

"It's a very competitive market so I would say that, for Europe especially, competition has ramped up significantly the last few years," Bursey said. "That's keeping us all on our toes and there are some good prices to be found."

"In terms of destinations Cancun is doing very well, especially the Playa Mujeres area," said Andrew Dawson, President and Chief Operating Officer at Sunwing. "The U.S. market was soft into Cancun so hotels reacted with lower rates. I think people can sense the value, and there's definitely a consistency in the quality in the Cancun area. I think Canadians are getting more and more used to it."

Dawson also said Antigua has been a hit this winter. "We've added summer flights there for the first time. It's been a big plus for us, and we're actually doing a hotel development in Antigua because we like it so much."

Dawson said the hurricanes last fall slowed things down.

"But it's bounced back since late November and it's shaping up as a good year."

Dawson said consumer prices are fairly similar to last year. "We gained a little because the Canadian dollar was stronger but we're paying more for fuel. Hotel rates in general are in line with previous years."

Montagnese also said prices are good.

"A lot of inventory has sold so there are pockets of inventory left. But we're not seeing rock-bottom prices. At the beginning of the year I was urging customers to book in advance and not wait for sun destinations."

Europe pricing is "right in line with our competitors," Montagnese said. "But air-only prices are starting to go up. On the Canada side we're cheaper by a couple hundred dollars and we have pretty aggressive commissions."

Topics From This Article to Explore