The reality is that Taca is less expensive than continental on the exact same route, nonstop from houston to roatan. They had to lower their rates due to continental entering the market, and after losing a good bit of market share to continental. The only way either airline will go lower is if other airlines enter the market (providing more competition) or they get into a price war. I find the likelihood of a price war unlikely, mainly due to the fact that both airlines are enjoying the profitable times they are on this route and don't want to rock the boat.
In order for other airlines to enter this market space like American for example, they will evaluate several conditions, most notably the number of hotel rooms on the island, flight loads experienced by existing carriers, competition (continental) and existing agreements with parnter airlines (taca).
It's a complex formula, but the bottom line is, until taca starts filling it's planes to capacity and more hotel rooms are built on the island, American will not feel the need to go head to head with continental yet. In my opinion they will not allow continental to enjoy their profits too much before their market jealousy will permit them to snub taca. After all, they practically own the skies over the carribean and they need to protect that above all else. --- In roatan.....com, seangutan....... wrote: > Hi Group,I have just read Md341's post with the comparison of air fares,which > clearly puts Roatan in the prohibitive group for many people. Added to > this,it is very evident that the island is never,what you would describe as, busy. > Some will cite Semana Santa as a busy week;well maybe,if you think lots of > mainlanders self catering on the beaches for the duration but actually not > spending a great deal. The recent Carib Fest,although a wonderful concept,was I am > told, poorly attended on the Friday,in fact,people who went say there were more > people at Black Pearl that night than at the Carib Fest. Without wishing to > knock the sterling work of the Chamber of Tourism,I think they do a wonderful > job,I would like to suggest that we all approach the present and future airlines > who fly in here and try to get some indication as to when they will make a > trip here more viable to flying tourists.A few business' do well out of the > cruise ship trade,but many do not.We need more than one source of income. I would > think that Taca would be the first to start lowering fares,they are the > national airline after all. > Just a thought!! > Sean and Zak.. > > >
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