THE US and Eurozone debt crisis is starting to bite, with Asian inbound operators saying there is cause for concern.
Different agents are reporting dips from various European markets, depending on how their overseas principals are performing and which segments of the market they are in. In general, however, a slack in the summer season, which is nearly ending, has not gone unnoticed, while winter numbers are just not there, according to sellers.
World Express Malaysia, for instance, saw a dip of 10-12 per cent this summer from Europe overall. “A bit of decrease here and there from each overseas agent becomes one huge thing,” pointed out executive director Cherry Lee.
Go India Journeys is seeing group sizes shrinking and accommodation being downsized to three- or four-star hotels. “There are some worrying signs,” said COO, Amit Prasad. “Margins are under attack. This is why we’re lobbying to prevent the implementation of new hotel taxes in India, which may cause India to be outpriced.”
For many, Spain is one market that is in the doldrums. Those who had the business of Nobeltours, for example, now have to make up for the numbers they used to get from the Spanish operator.
Since news got out that Nobeltours’ Chinese partner had refused to handle its passengers because of its accumulated debts (TTG Asia e-Daily, August 24), a chain reaction followed from other partners. Nobeltours now has to put its house in order before it can resume tours.
But for its Asian partners such as Asian Trails, that has meant 1,000 pax less in the books, to Vietnam and Myanmar mainly.
– Read more in TTG-PTM Official Daily – Day 3 issue
