CRACKS showing up in the European economy have started to impact longhaul travel into South-east Asia, ATF 2016 delegates told TTG Asia e-Daily.
Although most have not yet seen worrisome dips in demand and forward bookings, trade players have observed changes in the way Europeans are booking their trips and choosing travel products.
European travellers, once loved by suppliers for their tendency to book months in advance, are increasingly confirming their trips much later in hopes of scoring attractive last-minute discounts.
A top level hotelier with an international chain added that the rising number of late bookings was also a result of “too many hotel options” available in Asia, allowing the increasingly budget conscious Europeans to “shop around” for best rates.
Yves Van Kerrebroeck, deputy managing director with Asian Trails in Bangkok, said: “(The climate in Europe) is not very encouraging at the moment, economically and politically, for people to feel secure about spending on longhaul travel.
“It is very difficult to predict (how bookings will fare nowadays) because (Europeans) are more geared towards short-notice bookings even for markets where you traditionally get very long lead times.”
Pande Sutawan, corporate general manager, The Royal Pita Maha in Bali, has also noticed shorter booking lead times of up to 30 days, compared to a minimum of two months in better times.
Although Merlyn Ebora, inbound manager with Cebu-based Destination Specialists, expects good European arrivals in 2016 due to new air links commencing this year, she said uncertainties in the European economy could result in travellers becoming more thrifty.
As a result, her company is working with local suppliers such as accommodation and transport providers as well as restaurants to offer competitive packages which are about 10 to 15 per cent cheaper than what was offered last year.
“The stay period remains the same but Europeans are now finding ways to get more value-for-money options,” remarked Pande. Citing examples, he said European travellers are turning to LCCs and Middle Eastern airlines which are more affordable than South-east Asian carriers.
Describing the European market as being more price sensitive now, Ray Clark, general manager of The Royal Collection, Bali, said they are shopping around for cheaper flights and even best rates for business class seats.
“Whereas my guests used to just book without much concern about rates, they are now asking for discounts or value added perks. Travel consultants are doing the same,” said Clark, adding that the market was down by 15 to 18 per cent in 2015.
European incentive clients are spending more carefully too, noted I Made Budiutama, assistant sales manager, Ayodya Resort Bali. “A particular incentive organiser has asked us to create a package of activities for five days. I suspect he will ask the same from DMCs and then do a price comparison,” he said.
To continue drawing the Europeans, Asian Trails has gotten creative with its programming.
Kerrebroeck said: “We can offer amazing experiences that don’t necessarily cost a lot, by upgrading programmes and adding a lot of value for very little extra cost.
“We have a product range called Explore, where we offer something off the beaten track. It is adventurous but nothing too extreme, yet different enough that people can perceive it as something new at the same price point as a standard programme.”
Additional reporting from Mimi Hudoyo and S Puvaneswary
Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.
