No need for alarm over US airfares as demand for JA surges, says JTB

Travel sector specialists in attendance at the opening of the Jamaica Product Exchange at Moon Palace Jamaica in Ocho Rios on Monday.Photos: Aceion Cunningham OCHO RIOS, St Ann — Jamaica Tourist Board (JTB) Deputy Director of Tourism for the Americas Philip Rose says there is no need for alarm over recently elevated airfares from the United States, arguing that the steep prices are a reflection of strong demand for the island rather than weakening interest in the destination. Rose said airline capacity into Jamaica is currently broadly aligned with the island’s available hotel inventory, about 70 per cent of which has been restored following Hurricane Melissa. With the remaining rooms expected to reopen by early 2027, he said, additional airlift should follow. Speaking with the Jamaica Observer on Monday after addressing the opening of the Jamaica Product Exchange (JAPEX) at Moon Palace Jamaica in Ocho Rios, Rose said the unusually high fares seen recently were driven largely by flights operating at, or beyond, capacity. “About three weeks ago there was a week in which the airfares from South Florida — mostly Miami — to Jamaica, and quite frankly to other destinations, but one to Jamaica was especially high. It was over US$3,000 [for] a return ticket between Miami and Jamaica, and the reason for that is very simple: The flights were all full. In fact, they were oversold,” he said. Rose said the situation demonstrated the strength of Jamaica’s appeal, noting that demand had outpaced the destination’s current room stock. Jamaica Tourist Board Deputy Director of Tourism for the Americas Philip Rose addressing Monday’s opening of the Jamaica Product Exchange at Moon Palace Jamaica in Ocho Rios. He said the high fares were not indicative of a sustained trend, as airlines employ dynamic pricing based on demand and available seats. “The prices have come back down now,” Rose said. “Airlines use dynamic pricing, so it’s based on loads, how many persons want to go on a particular day. They adjust their prices hourly, so the week right after that the price went down to a more palatable rate,” he added. Rose said the JTB’s US team was already engaging airlines to secure additional capacity ahead of the winter season. “Certainly, my team at the Jamaica Tourist Board in the United States has been pushing the airlines to add more capacity. We’re confident that that will work,” he said. He added that airlines have a commercial incentive to increase service because sustained demand means they could be losing revenue by not providing more seats. “They will add capacity; and again, they’re not going to add the capacity just because we’re asking them to do that. They’re going to add the capacity because they recognise that the demand for Jamaica is so high, and they are leaving business on the table,” said Rose. He noted that the restoration of Jamaica’s hotel inventory should help ease pressure on airfares as more rooms return to the market. Rose said the recovery was being supported by strong demand and growing airlift from several major source markets. Between January and August, just under 1.9 million airline seats were available to Jamaica, with an 85 per cent load factor. Although available seats were approximately 22 per cent lower than the corresponding period last year as a result of Hurricane Melissa, passenger arrivals declined by just under 20 per cent, while load factors increased by 3.8 per cent. Rose said Jamaica’s tourism performance was also evident in its earnings, with 2.3 million visitors generating US$2.5 billion in tourism revenue between January and August. “We no longer celebrate just heads and beds. We no longer celebrate bums in seats. We celebrate the revenue that’s generated,” he said, adding that the figures underscore the effectiveness of Jamaica’s Tourism 3.0 strategy, which seeks to ensure that the sector generates greater economic benefits for Jamaicans.