Roatan and Bay Islands Discussion List Archive


    Posted On: 16-Aug-2005
    From: "hcjlhe" [hjohnson.....com]
    Subject: [roatan] Re: Roatan Air Fares


    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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