Wholesalers and Caribbean Resort Hotels

Abstract

Wholesale tour operators have an important role in the resorthotel industry, enabling hotels to reach potential clients in a lowcost manner. During the low season they can fill otherwise empty rooms. At the same time, hotels may run the risk of selling too many rooms at too low a price to wholesalers. During the high season hotels may displace high-paying transient guests with low-paying wholesaler guests. In areas heavily dependent on tourism, such as the Caribbean, the relationship between wholesalers and hotels is even more important because of the effect it can have on the region's economic health. This article assesses the relationship between wholesale-tour operators and Caribbean resort hotels. It includes an introduction to tourism in the Caribbean, a discussion of the structure and economics of the wholesale-tour industry, a presentation of the results of a survey of the members of the Caribbean Hotel Association, and a discussion of the implications for resort hotels and tourism.