City Hall and promenade in London

Despite the pound sterling taking a beating against major currencies, forward bookings from the UK market to South-east Asia are ahead of figures at the same time last year, allaying fears of a UK sales slump post-Brexit.

ForwardKeys CEO, Olivier Jager, said: “Looking at the UK bookings for travel to South-east Asia in 1H2017, we observe that leisure and group bookings to Malaysia are currently more than 80 per cent ahead of the equivalent time last year. Bookings to Indonesia for the same period in the same segments are currently more than 50 per cent ahead.”

This peak winter season from January to March is also something to write home about, a check with UK tour operators shows. Darren Lancaster, director One World – Travel Sales & Marketing, said many UK operators are reporting stronger business, with some even expecting the peak booking period will lead to their best-ever summer arrivals in 2017.

“People in the UK are still happy to spend money on leisure activities, including overseas holidays. They believe they work hard and therefore deserve to treat themselves. This shows that the fears of a post-Brexit UK sales slump are deeply unfounded,” Lancaster said.

David Carlaw, head of longhaul product at Premier Holidays, has not seen any Brexit impact on winter booking patterns so far and tipped that destinations outside Europe might well see a demand spike as travellers decide to opt for destinations farther afield than traditional European resorts.

Lancaster added that Asia, already unrivalled in offering exceptional value, “now looks even better versus the European and Caribbean/North America destinations”.

Tour operators said this is an opportunity for ASEAN NTOs to target a bigger share of the UK market, warning against complacency amid stiff destination marketing competition.

Carlaw said destinations with the most proactive NTOs and airlines will come up tops. “Thailand is our number one seller, for example,” he said.

Lancaster pointed to airlines’ role: “Vietnam will continue to grow with VN flights switched to Heathrow on newer planes, and the ‘city and beach’ FIT market to central Vietnam via Danang will increase steadily on the back of direct flights from Bangkok.

“Similarly Qatar’s new route into Krabi will develop growth in the south of Thailand. Bali is also doing well as the traditional ‘bottleneck’ when flying via Singapore is now eased with more indirect flights via the Middle East, plus Garuda’s service from Heathrow via Jakarta.”

Amid the prevalent optimism, David Kevan, director of Chic Locations, warned against “perennial blue skies thinking”, as British holidaymakers will now exercise more frugality in their decision making.

“Clients used to travelling in the winter will not suddenly switch to summer, but they will consider March rather than February if there is a rate reduction – typically this happens in Phuket, for example. Repeat clients will find the garden view just as attractive as the ocean view, but a free upgrade would be kindly accepted,” he said.

Suzuki: no big change in culture

Tour East Holdings does not see the departure of three of its senior management team as a blow, even though it risks losing accounts in the future as two of these leaders have joined competitor Diethelm Travel Group.

Industry members TTG Asia spoke to see the loss of Judy Lum in particular as a blow to the company because of the decades of relationship the former Tour East senior vice president sales & marketing – international has built with overseas tour operators, which reportedly made Singapore its second highest revenue earner after Australia.

Premier Holidays UK, which uses Tour East, said it does not have plans to change any of its ground agents and have contracts signed through to 2018.

“However, we do a review each year as standard procedure,” said David Carlaw, head of longhaul product.

Lum, along with Yvonne Wong, former Tour East general manager Singapore, both served the company for around 30 years. Both will join Diethelm Travel Singapore, effective February 4, 2017, as general manager and business consultant respectively. Tour East also lost its general manager Malaysia, Stephen Chan.

The departure of these loyal leaders has caused the industry to speculate that a different culture, mindset and approach since JTB took over Tour East two years ago might be a reason.

Tour East Holdings CEO & president Shigeyuki Suzuki does not see the resignations as a blow.

When asked how the general managers are adapting to the new JTB ownership, Suzuki believes they are “on the same page in business direction and strategies”.

He said: “I do not see a big difference in culture between the former management and us. Each company has its own corporate culture and strategy. However, I think the ultimate goal for a DMC – i.e. to provide the best services and hospitality – is exactly the same even if a different approach is taken,” he said.

Commenting on the loss of three leaders in a row, Suzuki said: “It happened by chance at the same time. Staff turnovers always happen in the industry and we simply adjust and adapt.

“As Tour East Singapore has more than 40 years of experience and have many talented staff, I’m confident that we can continue to promote Tour East as the number one DMC brand in Asia-Pacific (15 countries), and have a diversified client base and business portfolio.”

Tour East has promoted its manager inbound Francesca Cheah to general manager of Malaysia. Daniel Tam, general manager of Tour East Hong Kong, is made concurrent chief of Tour East Singapore.

When asked what sort of support he would give to Cheah and Tam, Suzuki said: “As Daniel has a lot of regional management experience and expertise, I’m confident that he will be able to manage the additional role by working closely with the head office (Tour East Holdings). As for Francesca, the head office will provide her with JTB’s higher management training course to enhance her management skills and provide day-to-day management support if necessary.”

Meanwhile, when contacted by TTG Asia, Lum said of her decision to leave Tour East: “It has been an amazing journey with Tour East. They are all set for the next phase while I am ready for my next challenge.”

She added: “Together with Yvonne, our immediate task is to set up procedures and standards to make sure they are aligned with the rest of the Diethelm network. It’s a young and small office and we’ve got to make sure they are ready for the expansion to come.”

Cao Thi Mai Loa

A rising star in the regional beach destination circuit, Phu Quoc’s fast-growing tourist potential has spurred Asian Trails Vietnam to launch a new office in Phu Quoc last month, adding to its country headquarters in Ho Chi Minh City as well as existing offices in Hanoi and Danang.

“Asian Trails Vietnam has seen a surge in demand for Phu Quoc as a new beach destination,” Thuy Tien, managing director, Asian Trails Vietnam, told TTG Asia, adding that the island is already chalking up double-digit growth for the company in the 2016/2017 season.

Industry veteran Cao Thi Mai Loan has been appointed to lead the new branch office, giving the DMC the autonomy to handle its own transfers and excursions without subcontracting and to develop its own unique products on the island, the company said in a statement.

The upcoming developments in Phu Quoc have also drawn the interest of foreign tour operators, particularly those from Europe, in taking up more properties in their offers, according to Thuy. “(Phu Quoc’s) geographical location is favourable for winter travel, the peak inbound tourism season in Vietnam,” she said.

A robust supply pipeline of 64 hotel projects and 10,000 rooms in the next few years, plus favourable government incentives in the form of free taxation for business enterprises in their first few years of operation, are some key factors luring an investment influx into Phu Quoc, Thuy pointed out.

Meanwhile, JW Marriott Phu Quoc Emerald Bay Resort and Spa will debut on January 25 to become the island’s first international luxury hotel brand.

But for a destination that still lacks direct international air connections, charter services will remain a strong conduit of tourism traffic into Phu Quoc, opined Thuy.

The destination currently has charter flights from Russia and Scandinavia, with China reportedly planning to roll out charters for the 2017-2018 travel season.

Demand for Thailand is up; Pattaya pictured

With buying powers hurt by weak home currencies, Malaysians and Filipinos are choosing to travel closer to home and to hold out for last-minute deals.

The ringgit traded at RM4.48 against the US dollar in November 2016, down 23 per cent since the start of 2015. The Philippine peso, meanwhile, slid from 46.28 pesos to US$1 in August 2016 to 50.01 in end-2016. Analysts expect it to reach 51 pesos this year.

With travel budgets battered, Malaysian are opting for regional holidays, observed travel agents in the country.

Olympik Holidays Malaysia’s CEO, Adam Kamal, said secondary destinations are more popular than capital cities as packages are cheaper, aided in part by direct low-cost flight access.

Demand for Thailand and Indonesia is up, said Apple Vacations & Conventions Malaysia, group managing director, Desmond Lee, encouraged by easy AirAsia airlinks and currencies that are “weaker than the ringgit, which is good for shopping and dining”.

Requests for North Asia have been down since 2016 for World Avenues Malaysia. Ally Bhoonee, its managing director, said value destinations within three hours’ flight time are now preferred.

In the Philippines, agencies have noticed stronger interest in less common Asian destinations such as Cambodia and Vietnam among travellers who are already familiar with the region.

Domestic holidays are also forsaken since the cost of travel to places like Boracay and Batanes is the same as or slightly lower than other Asian destinations, according to Lyn Galon, travel consultant, Scorpio Travel and Tours in the Philippines.

Purchase habits have changed too in both markets, with more consumers holding their breath for last-minute offers and possible pick-up in currency strength.

Bhoonee said customers making last-minute requests for the Chinese New Year period, in hopes that the ringgit would strengthen by then, presented a “challenge for us to get rooms and airline seats”.

Tess Ege, ticketing and reservation officer, Frontline 8 Travel Philippines, said the growing trend now is to wait for the Philippine Travel Agencies Association’s annual Travel Tour Expo (TTE) in February, where airlines and hotels offer steep discounts.

How outbound will pan out this year will depend on the outcome of the TTE, Ege said, underscoring the attraction of discounted trips amid a weak peso climate.

Mon Eusebio, travel and tours specialist, Velca Travel and Tours Philippines, also noted that travellers now wait for airline promotions like Cebu Pacific’s one peso fare and discounts of up to 50 per cent to cut travel costs. He also noted that business travel has been impacted slightly. – Additional reporting from Rosa Ocampo