After Funjet Vacations became the latest Apple Leisure
Group-owned wholesaler to be dropped by Sandals Resorts International, Apple
CEO Alex Zozaya said the issue is that his company owns AMResorts, a collection
of all-inclusive resorts that competes with Sandals and Beaches.
"That's the only issue. It's their decision, and, of
course, we respect their decision. We were hoping that business is business and
as long as we continue to be a good business proposition that they will
continue the relationship," said Zozaya.
Alex Zozaya
But Sandals did not continue the relationship, saying it
would end the partnership with Funjet, a Mark Travel Corporation brand. Apple
completed its merger with Mark Travel on May 1.
In 2015, Sandals severed its 34-year relationship with
Travel Impressions two years after Apple Leisure Group acquired that company,
and in 2010, Sandals terminated its wholesaler agreement with Apple Vacations.
CheapCaribbean.com, a packager Apple bought in 2013, also does not do business
with Sandals.
Sandals has not specified the reason for cutting ties with
brands under the Apple Leisure Group umbrella, and the company declined to
comment when asked to respond to Zozaya's comments about Sandals' motivation.
According to Zozaya, Sandals announced that it would no
longer work with Apple Vacations one day after AMResorts announced that it
would build hotels in Jamaica.
While AMResorts does compete with Sandals, Zozaya said that
Apple Leisure's packagers mostly sell AMResorts' competitors.
"We play a fair game." -- Alex Zozaya, Apple Leisure Group CEO
He said that about 20% of Apple Leisure Group's
packaged-travel customers book AMResorts properties and that no Mark Travel
customers currently do. Now that the merger is complete, he said he expects
Mark Travel's share of AMResorts bookings to grow to 20%.
"That means 80% of the business from 3.6 million
passengers goes to any other hotel company. We have enough volume to have good
partnerships and be relevant customers of many hotel chains. So, honestly, I
don't see it as a matter of Sandals would lose volume now that Mark Travel is
under the same umbrella as AMResorts. I don't see it that way, but, clearly,
they see it that way," Zozaya said.
He added that it is not uncommon for travel companies to own
different types of suppliers, whether it's hoteliers that own a stake in tour
operators or packaged travel companies that own other entities. In order for it
to work, companies simply need to be open and honest, he said.
"We play a fair game," Zozaya said. "We have
rate parity. AMResorts does not give Apple Vacations and will not give Funjet
lower rates than the rates that AMResorts gives to Pleasant or Gogo or Classic
Vacations. And Pleasant and Classic and Gogo know it."