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.

THE recent attacks in Jakarta appears to have marginal impact on travel sentiments to Indonesia, if going by the muted reaction of international buyers at ATF 2016 to the tragic event.

S Rajan, president & CEO of US-based Air Safety Equipment, sees no impact on his company’s business travel to Jakarta. “We are organising a Boeing aircraft equipment product launch in Jakarta in September 2016 and there have not been any concern from participants regarding their safety and well-being in the destination.”

Likewise, Muhamad Zaki, president of RZ Travels US, has not received any cancellations. “Terrorism does not stop people from travelling,” he said. “Our clients still travel as we all realise that there are risks everywhere you go.”

Iris Bloedorn-Millotou of Sunhotels Group and Incentive Travel Spain concurred: “I think nowadays people realise (terrorism) could happen anywhere. People do not want to be intimidated.

Even though tourism matters less to Jakarta, other destinations in Indonesia have not been much affected too.

“We are not doing much of Jakarta but even bookings for Bali are still the same with no drop,” noted Bloedorn-Millotou. Daily updates from her Indonesian tour operator partners were “a relief” and kept her abreast of the ground situation in Jakarta.

Eric Sinnaya, managing director of Morahols Travel Malaysia said the Jakarta attacks had not caused a slowdown to holiday destinations in Indonesia such as Medan and Bukit Lawang, in North Sumatera, which is also the gateway to Leuser National Park.

Tim Lim, general manager of Australia-based EC Travel: “Our clients usually go to Bali and not Jakarta but they will definitely still be more cautious. I will emphasise the importance of getting insurance to protect them.”

Jonathan Tran, executive director of Lac Hong Voyages in Vietnam, has not received any cancellations for Bali and still have several groups of 20 to 30 pax visiting the destination during the coming Lunar New Year period.

“There is definitely worry from our travallers, even though they are going to Bali because it is the same country (as Jakarta),” he commented. “As travel agents, what we are doing now is to assure them of the safety and security in Bali so they are less worried about the situation.”

However, the January bombing has caused anxiety for a group of 12 from the US which had cancelled the Jakarta portion from their culinary and leisure tour originally planned for Jakarta, Bali and Komodo Island.

“As a result, the itinerary has been reduced from two weeks to 10 days,” said Cheryl Yamashita, vice president of Washington-based Ampac Tours.

Reza Novaldy, director of Tama Tour Indonesia, has received concerns from a 1,500 pax incentive group from the US intending to visit Jakarta, Yogyakarta, Bandung and

Bali in the coming months. He said: “We will have to tell them what the ground situation is because they are feeling very uncertain.”

There could be broader implications on long-term travel demand for the region, as Jay Serrano, general manager of US-based JJB Travel, foresees a 20 per cent decline in travel demand to Indonesia and South-east Asia.

Malaysia’s IMR Group director, BP Tan, said: “There used to be more concern about the crime and accident rate when we conduct a risk assessment about a country, but now we have to also take into consideration terrorism.”

Additional reporting from S Puvaneswary and Paige Lee Pei Qi

Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.

RECENT security tensions are not helping the discussion in moving forward the ASEAN single visa scheme, but PATA CEO Mario Hardy maintains his support for it, saying the economic and social benefits of such a move far outweigh the security risk.

PATA, together with WTTC, UNWTO and five other international bodies, are of one mind in wanting the world to be visa-free, for everyone to be able to travel with ease.

Saying that the absence of an ASEAN common visa is “one of the greatest barriers to tourism”, Hardy remarked that the region’s tourism would have grown much more should tourists from outside of South-east Asia be allowed to travel here on a single visa similar to Schengen.

European travellers, for instance, want to explore multiple destinations here – not just a single country – but the complexity of multiple visa requirements is a deterrent.

A single visa scheme does not mean no visa at all, Hardy pointed out, because technology can be harnessed for an e-visa facility which is “alright to implement” and will not make it difficult for people to travel.

Hardy acknowledges that it is not the tourism office that makes the decision but the immigration and other government offices.

And as the influence of the tourism sector rises, “what we’re hoping to do is to offer and provide tools and enough information to tourism ministers so they can share that and put pressure on their governments” to accede to the single visa scheme.

He believes the ASEAN single visa scheme will happen but is unsure when. In the meantime, bilateral agreements on a single visa scheme between countries can provide temporary relief.

The usual dilemma against the single visa scheme is security concerns and immigration laws, the question of who will control and who to trust.

But Hardy reiterates that the benefits of having a simplified visa facility are huge. For example, Vietnam saw its arrivals improve when visa restrictions were eased.

He also expressed admiration for Indonesia which had unilaterally opened its doors to more foreign nationals.

Read more ASEAN Tourism Forum (ATF) 2016 stories in the digital edition of our Show Dailies here.