Smooth Operators

The positive soundings a few days ago that tourism will help to stave off recession in the Balearics may have been somewhat pre-emptory. Despite the Spanish Secretary of State for Tourism suggesting that there has already been an increase of 20% in sales for the coming year, the tour operators are begging to differ. One is inclined to take their word for it, rather than that which may just be political spin.

Word coming out of the World Travel Market in London this past week has not been reassuring. Thomas Cook is reporting a fall in British tourism sales to Mallorca of 15% (Menorca is worse at 24%), while TUI is giving similarly worrying figures - Mallorca down by 22%. The winter tourism, such as it is, is also taking a knock; the recession-hit German market, for instance, has cut back on its Mallorcan off-season.

The only bright spot in all this is that tourists may well be holding off and hoping for some better deals. There was a thing on "Five Live" the other day which said that TUI, in general, has increased its prices by around 12% while also reducing capacity. That TUI feels it can do this at a time of economic downturn is largely due to the failure of XL, which has taken out some 2 million seats in total. In other sectors where capacity is reduced, prices do not necessarily rise or rise as steeply. The tourism market, however, appears to operate by a different set of rules, and important among these is that, although times are tight, people will forego other purchases in order to ensure they have their two weeks in the sun. The person interviewed on the BBC said that sales were brisk, which may seem to contradict the soundings from TUI and Thomas Cook, but there could still be grounds for optimism in that travellers are taking their time, doing their research and then making the purchase. They may also be hoping that TUI decides that those price increases are not going to work, and are therefore waiting for offers.

While TUI may be hiking its prices, the hoteliers on the island are under great pressure to lower theirs, i.e. what they receive from the tour operators. Naturally enough, there is some resistance to this. But one of the more interesting aspects of this is that the hoteliers are "progressively abandoning" all-inclusive offers because of the "ridiculous" daily returns they receive (quotes from "The Diario"). Maybe the price pressures being applied are going to be good news in one respect - the removal of more all-inclusive places. This all does go to emphasise that it is not necessarily the hotels who are, or who have ever been, the driving force behind all-inclusive offers; it is, and has been, the tour operators. I know, for example, of one hotel in Puerto Alcúdia that basically told TUI to sling its hook when it was presented with a demand to move to all-inclusive. I also know of hotels which are all-inclusive, but which would much rather not be. And when one learns of the sort of amounts the hotels can actually receive from the tour operators, it is little surprise that what they then provide as service as part of the all-inclusive package can be so poor. They're just not making enough money out of it. So when one reads all those comments slagging off this and that hotel, just remember that it may be the tour operator who deserves the criticism and not the hotel.

Meanwhile also at the travel market, Balearic Government head, Francesc Antich, together with the minister for tourism, Miquel Nadal, have been trying to offer their own positive take on things, talking about the "opportunity" that the current difficulties offer. Well, always try and make a positive out of a negative, I guess, but they are banging on about modernisation and renovation, which are all well and good but don't actually address the short-term need. They are also mentioning - yet again - different types of tourism, but without, seemingly, putting any flesh on its scrawny bones. There is, though, one campaign to be implemented in that short-term, and if you happen to live in Manchester you will doubtless become aware of it. This coming spring there will be a programme entitled "Manchester discovers the Balearic Islands". This is presumably not some sort of Columbus expedition but an attempt to inform the good people of Manchester that the Balearics exist. Hmm, yes well, I'll have to mention that to friends of mine from Manchester who come to Mallorca each year.

Elsewhere, Antich has been presiding over the little club that is the Eurorregión Pirineos Mediterráneo (areas around this part of the Mediterranean). This rather curious self-help grouping has had its share of spats in the past, but at least now they seem to be as one in having a common perspective on tourism innovation. To this end, there is to be a centre of research and development based in the Balearics, the aim of which is to come up with "cutting-edge strategy and attractions" (says "The Bulletin"). Well I think we've been here before with all this tourism R&D stuff, whatever it might be. They talk about it but never make it clear what it is exactly. And as for attractions. Good. Just make sure they are large-scale and meaningful.

As an additional thought - the government has spoken, time and time again, about upping the quality of hotels and their service as part of an overall improvement of the islands' tourism offer. However, how can the hotels do this if they are being squeezed and pressurised when it comes to both prices and offering all-inclusive? Against this background, much as the hotels themselves may wish to upgrade and much as the government may harp on about it, it needs to born in mind that the real power in the tourism chain resides not with the hotels, not with the government, but with the tour operators. Ultimately you antagonise the tour operators at your potential peril. Without TUI and Thomas Cook, Mallorca has nothing. The government can do some gentle persuading, but it is largely impotent. It may be a harsh fact for the government to appreciate, but fact it is. Of course, neither TUI nor Thomas Cook would abandon Mallorca; it is far too important to them as well. But the balance of power lies with them. The hotels may be kicking, and good luck to them if they want to cut the all-inclusive, but they, too, must know who holds the whip hand.


QUIZ
Yesterday's title - Robert Palmer (http://www.youtube.com/watch?v=1S9Or_bEGQI). Today's title - pluralised; in the singular who did this tremendous song?

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