Robin Hayes (JetBlue CEO) – State of the Industry Conference 2015 – Curacao (Oct 2015)
Chapters
Abstract
JetBlue’s Caribbean Expansion: A Story of Innovation, Growth, and Sustainable Development
JetBlue’s Journey in the Caribbean: From Humble Beginnings to Market Leadership
JetBlue Airways’ CEO, Robin Hayes, recently encapsulated the airline’s dynamic journey in the Caribbean region, a narrative of growth and innovation. Founded in the late 1990s as an all-coach, domestic airline, JetBlue embarked on a mission to revitalize air travel with a strong focus on customer service. Despite a consolidated U.S. airline industry, JetBlue emerged as the fifth-largest airline, maintaining its independence and a 5% market share.
The airline’s venture into the Caribbean began in 2002 with its inaugural flight to San Juan, identifying the region’s untapped potential. Today, JetBlue has expanded to 27 Caribbean destinations, making one-third of its capacity serve Latin America and the Caribbean. This growth is attributed to JetBlue’s strategic model: targeting underserved markets, offering competitive fares, and providing superior service. Open Skies agreements and regional partnerships have further bolstered this expansion.
JetBlue’s approach has not only challenged established carriers but also cultivated new markets, earning customer loyalty and appreciation. The airline’s introduction of Mint, an innovative business class, to the Caribbean routes, further exemplifies its commitment to enhancing the travel experience.
Strategic Expansion and Economic Contributions
JetBlue’s expansion strategy extends to increasing flights and seats to burgeoning markets like Haiti, demonstrating responsiveness to growing travel demands. The airline’s fleet is set to grow with 20 new aircraft over the next two years, many destined for Caribbean routes. This fleet expansion aligns with JetBlue’s fare strategy of adding capacity to maintain lower fares and stimulate tourism.
The airline’s route planning considers factors like regulation, taxation, and partnerships. JetBlue’s preference for customers to spend more on their trips rather than on taxes reflects its commitment to affordable travel. The upcoming addition of new flights, including a 50% increase in capacity to Curacao and a new daily service from Fort Lauderdale to Barbados, marks JetBlue’s 75th route between the U.S. and the Caribbean. Furthermore, JetBlue is expanding its service to Curacao with an additional weekly flight from New York, increasing the total to three flights per week. The airline is also introducing a new daily non-stop service between Fort Lauderdale-Hollywood International Airport and Barbados, marking its 75th route between the U.S. and the Caribbean. These expansions are a result of successful partnerships with the Minister of Tourism, airports, and private sector partners in both Barbados and Curacao. However, JetBlue is closely monitoring government attempts to re-regulate the industry with mandates like baggage fees and seat pitch, as these could impact its business.
Innovating the Vacation Experience: JetBlue Getaways
JetBlue Airways is reinventing travel convenience with its Getaways program, offering bundled flight and hotel packages. This initiative aims to address the challenges travelers face in planning their trips, ensuring a personalized and reliable service. JetBlue Getaways differentiates itself by curating experiences with select properties, focusing on quality and service.
The growth of Getaways is vital for Caribbean destinations, enhancing route profitability and enabling further service expansion. JetBlue’s goals for Getaways include achieving 2 million room-night bookings annually by the end of the decade, improving accessibility of JetBlue flights, and strengthening partnerships for mutual growth. Additionally, JetBlue Getaways aims to expand its business by pairing flights with hotel bookings and other travel services, leveraging the airline’s trusted brand and reputation for hospitality. The company seeks to provide a more personalized and helpful travel experience, addressing pain points in trip planning and inconsistent service. JetBlue intends to shift customers from booking holiday packages through online travel agents to its own getaways platform and lower-cost channel, JetBlue.com. To drive growth, JetBlue Getaways can offer discounted seats and hotel rooms during off-peak periods to stimulate volume growth. The company is also open to collaborating with partners to optimize market getaways and welcomes ideas for enhancing their partnership.
Sustainability and Ecotourism: Protecting Caribbean Beauty
JetBlue recognizes the interdependence between the health of Caribbean shorelines and the airline’s economic vitality. Partnering with the Ocean Foundation, JetBlue has quantified the economic value of clean beaches, finding a direct correlation with higher hotel rates and airline ticket prices. This initiative underscores the importance of shoreline conservation for the region’s tourism industry.
The airline’s sustainability efforts extend to recognizing every Caribbean visitor as an ecotourist. Investing in the preservation of oceans and beaches is seen as essential to protecting JetBlue’s revenue streams and the region’s natural allure. Additionally, JetBlue is investing resources and money in expanding its vacation business, JetBlue Getaways, to connect customers with accommodation, dining options, activities, and local guides. The company values partnerships with hotels and tourism providers, recognizing the need for mutual support to thrive. JetBlue seeks to establish solid partnerships in the region to offer a seamless and memorable travel experience for customers. JetBlue promises to extend the same level of service and experience to its partners, fostering long-term relationships and mutual success.
A Vision for Continued Success
JetBlue’s growth story in the Caribbean is a testament to its innovative spirit and commitment to customer service. The airline’s expansion plans, investment in vacation experiences, and dedication to sustainability set a precedent in the industry. As Hayes expresses gratitude for the partnerships that have facilitated this success, JetBlue continues to strive for innovation and excellence, shaping the future of air travel in the Caribbean.
Notes by: TransistorZero