The poor performing ringgit has proven to be a weak deterrent to longhaul travel plans among middle and upper middle class Malaysians, who have continued to book trips to Europe for the two-week school holidays starting later this month.
However, buying habits have changed, outbound agents told TTG Asia.
Paris
The ringgit, which has depreciated by some 8.1 per cent over the euro compared with 23 per cent over the US dollar from two years ago, has made Europe a favoured longhaul destination.
Kerry Tam, director, Parlo Tours Malaysia, said her company has developed more affordable packages to Central Europe, which are selling well for the May school holidays, in addition to exclusive group tour options.
She said both tours have received equal demand but the profile of customers are different. The more affordable tours attract those in their 30s and early-40s, as well as those from outside the cities. Exclusive tour packages attract city-dwellers and consumers in their late-40s and up.
Tam explained: “An example of an exclusive tour is a five-country combination covering France, Belgium, the Netherlands, Germany and Switzerland, costing around RM12,000 (US$2,756). Such tours attract (older travellers) with big disposable incomes. Those with smaller budgets tend to opt for a nine-day/six-night package covering the same countries but costing only RM6,500, inclusive of miscellaneous charges.”
The difference in pricing for tours covering the same destinations comes from the number of sightseeing tours featured, hotel locations and the number of meals.
Mita Lim, managing director of Ice Holidays, a B2B wholesaler in Malaysia, said he was targeting a 15 per cent growth in longhaul sales for this coming school holidays. He said: “Seven-day/four-night all-inclusive tours to Central Europe and nine-day/six-night tours to the Balkans are selling very well as savvy travellers know they can save more by joining a group tour rather than going FIT and paying separately for transport and hotels.”
Desmond Lee, group managing director of Apple Vacations & Conventions, said while demand for Europe this holiday season is projected to rise 15 per cent year on year, FIT travellers on a budget are increasingly taking mono-destination trips and forgoing multiple-destination ones. These travellers are also booking three- and 3.5-star properties, and going for promotional airfares.
Malaysian parents with children studying in Europe have also cut down on the number of times they visit, coinciding their trips with important occasions, said outbound agents.
