Bucket-list escapes, private tours gain favour among post-pandemic travellers
Multi-day tours have been in existence for a long time, but the pandemic has changed travelling habits and trends, with industry stakeholders noticing that small groups, private and personalised itineraries, and bucket-list type holidays are becoming the order of the day.
Lukas C.C. Hempel, founder and CEO of Bookingkit, said: “There’s a tectonic shift in what kinds of activities people want to do. The clear losers are large group activities, while outdoor activities and small group activities are winners.”
Manuel Hilty, CEO and co-founder at Nezasa, shared during a session titled The Rise of Multi Day Tours at ITB Berlin: “We’ve seen a trend towards more private tours being booked, and smaller group sizes across the board, as a result of the pandemic.”
Hilty also predicted that multi-day tours will grow in the future, because “people will do less trips”, but will choose to take “longer ones and spend more time in a faraway destination”, as opposed to multiple short hops.
Staying longer in a destination would also be more sustainable in terms of transportation. Travis Pittman, co-founder and CEO at TourRadar, cited the example of a traveller who instead of holidaying in Rio de Janiero for just two days, opted for a longer, two-week stay in Brazil.
Brian Young, managing director at G Adventures, highlighted that the pandemic has taught people to appreciate the privilege of travel, and the importance of travel to their well-being, and is confident that newfound awareness would translate to them travelling more responsibly.
He added that experiential travel will gain further popularity in the wake of the pandemic. Reflecting this, Young noted that G Adventures has seen a growing interest in the agency’s “bucket-list type tours”, such as climbing to the base of Mount Everest and Mount Kilimanjaro.
Travis Pittman, co-founder and CEO at TourRadar, has also noticed searches for “polar expeditions” and other bucket-list items trending.
Experiences aside, reconnecting with friends and family is also a noticeable trend among post-pandemic travellers.
Pittman offered: “We have run trips since September 2020 and we have seen an increase in private group bookings with tailor-made elements. Family and friends just want to get away, while being in the security of a cocoon. Also, some groups have not seen each other in a long time, and the ‘bubble’ would help them reconnect with one another.”
In light of this, during Covid-19, G Adventures launched Book Your Bubble, a collection of 80 tours that groups can personalise and book. Young strongly believes that such tours will continue to be popular even after the pandemic subsides.
Solo travellers are also keen to hit the road again, but they desire to travel “in the comfort and security of a small group tour with like-minded people”.
On the topic of personalisation, Pittman noted: “(Previously), the multi-day tour sector has been fairly rigid, with not a lot of flexibility possible. (But with the pandemic), operators have realised that customers want to make changes without getting charged with a hefty fee.”
In the long run, Pittman believes that multi-tour operators would gain greater appeal as consumers who previously booked everything by themselves have realised it’s more complicated to obtain refunds when borders were swiftly shut.
He explained: “The benefit of booking through a tour operator is that you’ve got everything together; and one person, instead of seven different organisations, to (approach for) refunds.”
New mobile app to power travel set for April launch
Singapore-based travel consultancy OMT Group of Companies will launch a blockchain-backed mobile application featuring a selection of curated itineraries, along with a secured payment gateway and rewards system.
For starters, the mobile app will feature affordable itineraries, supported by major destinations including Indonesia, Thailand and the UAE. Come April, end-users will be able to download the application from their iTunes and Android stores.
This initiative comes at a time when the global economy is starting to reopen and interest in leisure rebounds in some regions. As such, the travel consultancy plans to adopt best of breed partners to help create a unique customer experience advantage. These partnerships are expected to generate a huge boost in global tourism revenue, and along with the use of emerging technology, rebuild the travel trade sector to emerge stronger than before from the pandemic.
OMT Group of Companies’ efforts to go digital bodes well to increase the standards of travel wholesalers and safeguard monies and personal data from illicit activities. It also points to Singapore’s endeavour to continue strengthening its position in the region as a cashless digital hub with its neutral regime in digital assets transactions.
James Yeow, chairman and CEO of OMT Group of Companies, said: “The up-and-coming application will look to facilitate billions of transactions on the blockchain, enable travel marketers to employ more targeted, data-driven marketing strategies and create sustainable employment opportunities for many.”
For OMT Group of Companies, the utilisation of blockchain technology to power its up-and-coming mobile application drives transparency in a safe and reliable environment, particularly when it comes to the treatment of handling sensitive data including personal identification numbers, addresses and credit card information. This, in turn, helps build trust between travel trade wholesalers and the wider community.
Said Yeow: “Emerging technologies like blockchain lets go of the need for physical documentation, replacing it with digital ones. This makes travel marketing more targeted and specific processes like payments a hassle-free experience for FITs, luxury and group corporate travellers.”
Tapping on a decentralised management system, OMT Group of Companies’ application will help destinations, brands and operators reduce costs, improve business ratings and communication, tailor unique packages and implement hassle-free loyalty programmes.
Added Yeow: “With personalisation emerging as the choice for many, and the demand for unique travel experiences increasing, we believe that the combination of our application and tailored itineraries will create a differentiated, high-touch service experience for both our existing and new members.”
International travel recovery hopes rise as Agoda’s search data shows signs of optimism
Digital travel platform Agoda has seen an increase in international travel searches, on the back of global vaccine rollout, discussions around Covid-19 passports and alternative state quarantine announcements.
Agoda’s search data highlights green shoots of recovery and a growing optimism by travellers across Asia that international travel will start to return, with Australia, South Korea, Japan and Indonesia witnessing an increase in the number of international destinations in their top 30 searches in March 2021 compared to December 2020.
Travellers from these markets are joining China, Taiwan and Singapore in their optimism for the resumption of international travel. Only Malaysia, the Philippines and Thailand continued to see zero international destinations in their top 30 searches in both December 2020 and March 2021.
However, interestingly, Thailand and the Philippines both feature strongly as destinations, with Bangkok securing a spot in six out of 11 origin markets’ top 30 search lists.
Additionally, Agoda’s data shows booking patterns have started to normalise and return to pre-Covid trends, as behaviour indicators such as lead times and prices, which both reduced heavily in the spring and summer of 2020, dip less sharply.
Agoda CEO John Brown explained: “There are definitely reasons for the travel industry in Asia to start to feel more optimistic, and vaccines will be critical to full recovery, but initiatives like government subsidy programmes, such as TTogether in Thailand or GoTo Japan have been successful in harnessing the demand for travel and supporting domestic accommodation providers. Agoda’s search data shows that travellers are looking to resume international travel, buoyed by the implementation of the vaccine rollout, but there is more to do.
“The vaccine rollout in Asia is commencing, but the pace across the region will vary, with some markets such as Singapore being fully vaccinated this year and others like Japan, Thailand and Vietnam looking more likely at 2022, so these heavily tourism-dependent economies need to consider how to accelerate the return to normality.
“Governments will need to innovate how they approach reopening of their borders, balancing the very real need for the safety of their own citizens, and visitors alike, with the economic reality. For the foreseeable future, quarantine remains a stumbling block to international travel, so the provision of alternative state quarantine, as launched in Thailand and Hong Kong, might prove to be a sensible solution in line with a vaccine programme. Corporate technology partners able to move fast will be able to provide governments with support to manage the complex variables that markets face.”
Hong Kong to slash quarantine for low-risk countries, including Singapore
Hong Kong will shorten the mandatory quarantine period from 21 days to 14 days for travellers coming from low-risk areas including Singapore, Australia and New Zealand.
Vaccinated visitors from medium-risk areas will also only need serve a 14-day quarantine, officials said at a briefing on Monday (March 29). Both groups of travellers will be required to undergo an additional seven days of self-observation.
Meanwhile, Hong Kong and Singapore has resumed discussions for the establishment of a two-way travel bubble. According to a South China Morning Post report, the city is also looking to forge similar agreements with Australia, Thailand, Vietnam, Japan and South Korea.
ATTIA welcomes two new partners
The Asia Travel Technology Industry Association (ATTIA) has welcomed two new members to its ranks – Amadeus and Travelport – as it commits to revive and grow the tourism sector in Asia-Pacific.
ATTIA’s mission is to serve as an industry resource to governments to offer support in tourism recovery and growth efforts; build advocacy and coalitions with governments, fellow trade associations, academia and multilateral organisations, as well as DMOs to build a health travel ecosystem for the region; and leverage the use of data insights to future proof and support other industry partners like SMEs as they navigate today’s ever-changing landscape of the travel and tourism industry.
ATTIA’s founding members include Agoda, Airbnb, Booking.com and Expedia Group. The association will be prioritising its support towards government initiatives that will drive both domestic and international recovery.
“We have ambitions to leverage our members’ scale and data insights to help governments and businesses to navigate the changing landscape of travel and tourism… Expanding membership allows us to draw on specific industry and market acuity, providing a strong resource for the region.” said Richard Andrew, executive director of ATTIA.
“The return of safe, responsible travel is not just important for the tourism industry but also for the larger global economy, which benefits from international travel, trade and investment,” concluded Richard.
The travel and tourism sector is a key pillar of Asia Pacific’s economic recovery, which has affected approximately 67 million jobs.
TTG Asia takes Good Friday break
TTG Asia will be taking a break on April 2, in observance of Good Friday.
To our Christian readers, have a good Holy Friday and Easter Sunday. News will resume on Monday, April 5.
Hong Kong’s domestic tourism recovery gathers pace
With the fourth Covid-19 wave ebbing and the government’s vaccination programme in progress, Hong Kong tourism players see a glimmer of hope as recovery campaigns resume to spur local consumption and travel.
Last Friday (March 26), the Hong Kong Tourism Board (HKTB) kicked off the Staycation Delights programme to boost domestic spending. The public can collect original machine-printed receipts with a minimum spend of at least HK$800 (US$102) in physical retail or dining outlets to redeem a HK$500 discount on a hotel package. The promotion is capped at 20,000 room bookings on a first-come, first-served basis.
This is in addition to a new round of promotions under the Holiday at Home campaign to boost consumption in the city’s retail and F&B sectors.
All Wharf Hotels in town participated in the promotions to pivot to the staycation market in the absence of international visitors.
Additionally, the group has also rolled out a series of offers to stir interest among the domestic crowd. The Colour Your Spring package, launched at Niccolo and Marco Polo hotels in Hong Kong, offers 20 per cent off room rates for stays from February 27 to April 30, 2021, with an exclusive gift to “cultivate the qualities of mindfulness” throughout one’s stay.
“We have seen good traction and pick-up for this package – which covers the Easter period – with very positive bookings at the hotel,” said president of Wharf Hotels, Jennifer Cronin.
Meanwhile, the HKTB is preparing to launch the second round of the Free Tour programme once bans on local tours are lifted.
The Free Tour programme aims to boost the local economy by giving free Hong Kong tours to local residents who spend a certain amount at brick-and-mortar retailers and dining outlets.
While exact details for the second round of the campaign have not yet been released, a total of 20,000 seats will be made available this time round – double that of the first stage of the programme.
HKTB has since approved submissions of itineraries submitted by tour agencies in mid-February for the second round of the programme.
“Response has been overwhelming, with more agents signing up to offer their products this time round,” said Wing Wong, director of sales and marketing at Prince Travel, among the agencies who signed up.
Wong stated that the government has been in talks with the travel trade on the conditions for the resumption of local tours. He added: “Employees in tourism-related sectors are now among the priority groups for receiving the Covid-19 vaccine. So we’d get vaccinated in the next few weeks to prepare for the resumption of tours.”
Still, the government needs to take action to revive inbound tourism, claimed Cronin. This includes creating “a road map to reduce the city’s three-week quarantine, the most severe in the world, and a vaccination e-certification platform that is globally recognised”, she said.
“The safety of our community is paramount, but the sustainability of our city’s business environment will have profound social and economic outcomes, if not addressed as soon as possible. Hong Kong’s competitiveness can be ahead of the curve with improvements in these initiatives.”
Intra-regional tourism crucial for SE Asia travel revival
Due to an abundance of low-cost connectivity and an increased preference for travel closer to home in the midst of the pandemic, intra-regional tourism will play a key role in revitalising South-east Asian countries’ tourism economies, according to GlobalData.
GlobalData’s latest report, Tourism Destination Market Insight – ASEAN (2021), revealed that in 2019, 44.3 million tourists travelled between the South-east Asian countries. The intra-ASEAN travel is expected to grow at a compound annual growth rate of five per cent from 2019 to 2024, and reach 56.6 million by 2024. Given the high level of growth, intra-regional travel could be key to the region’s recovery from the impact of Covid-19. The virus caused a 36.9 per cent year-over-year decrease in intra-regional travel in 2020, to a low of 27.9 million arrivals.
Gus Gardner, travel and tourism analyst at GlobalData, commented: “In 2019, intra-regional travel accounted for a total of 32.3 per cent of all travellers, showing the importance of regional links. With depleted budgets and Covid-19 fatigue setting in, travellers will be keen to travel and are more likely to select destinations closer to home. With the provision of relaxed visa policies between the member states, the barriers to travel are low and will help increase the intra-regional flows post-Covid-19.”
The ratification of the ASEAN single aviation market agreement has increased the level of competition and accessibility of intra-regional flights, much to the delight of travellers.
Gardner concluded: “The market has become saturated with low-cost airline connectivity due to the market liberalisation that has occurred. The low fares and high route frequency offered by these carriers has created a vast connected network across the region, reduced fares, and made travel more affordable. With personal financial concerns growing due to Covid-19, the availability and affordability of flights will be vital to stimulating tourism flows in the near future.
“Even after accounting for the impact of Covid-19, intra-regional travel is forecast to achieve a healthy growth rate. Given the cultural similarities and strict measures to tackle the virus, destinations within the region are likely to increase in popularity. This type of travel will provide the much-needed revenues for travel firms and could play an important role in revitalising the tourism economy before the travellers begin traveling further abroad again.”
Qatar Airways plans to fly to over 140 destinations this summer
Qatar Airways continues to expand its network of destinations, with plans to operate over 1,200 weekly flights to more than 140 destinations by the middle of summer 2021.
The breakdown of destinations include 23 in Africa, 14 in the Americas, 43 in Asia-Pacific, 43 in Europe, and 19 in Middle East. Many cities will be served with a strong schedule, with daily or more frequencies.
Currently, the Qatari flag carrier is the airline offering the most number of international flights to destinations across the world, according to recent figures from travel data provider OAG.
Qatar Airways Group CEO, Akbar Al Baker, said: “We are proud to lead the recovery of international aviation, implementing the highest standards of bio-safety and hygiene and investing in the latest innovations to simplify travel and restore passenger confidence during the most challenging period in aviation’s history.
“Having never stopped flying throughout the pandemic, we have used our unrivalled experience and modern, fuel-efficient fleet to operate a sustainable and reliable network our passengers, trade partners and corporate customers can rely on. We also continue to offer the largest international network, including launching seven new destinations, to provide the connectivity our passengers and cargo customers need.”
As Covid-19 lessens its grip on the world, the economies of the Asia-Pacific region will likely be among the first to return, according to a report by ILTM Asia Pacific.
The report, titled Asia Pacific and the Global Travel Recovery, which was produced by ILTM in partnership with Barton, provides the latest insights into the luxury travel industry in the Asia-Pacific region.
Utilising data that was collated and validated during the year of a pandemic, the report reveals a long-term view of the Asia-Pacific region that provides a high degree of cautious optimism for 2021 and beyond.
As restrictions ease, in-region travel will be at the heart of the recovery – an estimated 57.5 per cent of Asia-Pacific traveller’s outbound spend is spent within the region.
Encouraging Asia-Pacific’s luxury travellers to roam more widely will be key to making 2021 a successful one for global luxury travel as these travellers already contribute US$363 billion to the global luxury travel universe (GLTU).
A huge contribution to this total is made by Asia-Pacific’s high net worth (HNW) population, which numbers 6.4 million individuals. Despite only being 0.15 per cent of the region’s massive population, they contribute almost half of the region’s total to the GLTU (48 per cent).
Asia-Pacific is the fastest-growing region for wealth in terms of both population (number of HNWs) and total wealth. Given the very strong link between wealth and luxury travel spend from the region, this means very strong growth in the Asia-Pacific contribution to the total spend on the GLTU.
Over the last decade, China has been the biggest success story in terms of wealth growth in the world, not just Asia-Pacific. As a result, it makes a huge contribution to the total Asia-Pacific spend related to travel. For instance, 49 per cent of the whole region’s spend on airfares and lodging, which equates to US$114 billion, is made by travellers from China. Of this, over half (52 per cent) is made by China’s HNW population, which is around 29 per cent of the total Asia-Pacific HNW population.
However, the future of wealth in Asia-Pacific is not a solely China story. Well-established wealthy markets such as Japan, Australia and South Korea, along with fast-growing ones like Vietnam, India and the Philippines will all contribute to the creation of an ever bigger HNW population.
Asia-Pacific travellers, inbound and outbound, contribute US$251 billion to the US$1.54 trillion global luxury travel ecosystem of activities. Outbound Asia-Pacific traveller spend is 28 per cent of this, above the global average of 23 per cent. This is reflective of the fact that many Asia-Pacific HNW individuals must travel internationally to take part in some of the most favoured activities in the luxury travel ecosystem, such as large-scale sporting events.
Asia-Pacific’s HNW population contributes almost half of the region’s outbound global spend on ecosystem activities at US$34.4 billion (48 per cent), demonstrating just how important the region’s wealthy are to the global luxury travel experience economy.
Despite the effects of Covid-19 persisting globally, many of the 55 countries that make up the Asia-Pacific region have been considered excellent examples of resilience during a period that has upended the travel industry like never before.
With 2021 now underway, businesses everywhere are understandably looking for a jumpstart in the industry, and it is in this that the Asia-Pacific region continues to draw attention. Asia-Pacific is the fastest-growing wealth region in the world, which was what identified it as a key location for the travel industry to expand into long before Covid-19 was known about.
Despite the challenges faced globally since the pandemic began, the wealth-growth trend seen in Asia-Pacific prior to the pandemic has only paused – and in some cases – even increased.
The reasons for this buoyancy are manifold. After being the hardest hit 17 years ago by the SARS epidemic, Asia-Pacific is much more used to pivoting in response to viral threats than the western world. Moreover, there has always been a huge market for those based in Asia-Pacific to travel within the region, which is fulfilling the still prevalent desire for travel among HNW individuals.
It is also clear, of course, that this is not a standard recession, allowing for well-prepared wealthy Asia-Pacific travellers to continue to accumulate their wealth in readiness for when the world’s borders are fully open once more.
With the financial resource, desire and inherent ability to pivot during incredible disruption, Asia-Pacific travellers should be seen as pioneers of the new luxury travel landscape, providing the much needed economic injection the industry has been waiting for.
Read the full report here.