While some travel and tourism companies have recently put forth subdued business outlook, citing slowing demand and shorter booking lead times from their major US source markets, Malaysian and Indonesian inbound travel players are still basking in brisk business across the remaining months of 2024.

Inbound specialists in Malaysia told TTG Asia that the boost in bookings this year was partly due to tourism-friendly policies, such as visa exemptions for the country’s top two medium-haul source markets – China and India – and the extension of auto-gate facilities at entry points for travellers from 63 countries. The latter benefits travellers from several of Malaysia’s key source markets, such as Singapore, Brunei, South Korea, China, Saudi Arabia, and the UAE.

Anthony Wong, managing director of The Frangipani Langkawi Resort and Spa, reported that RevPAR for 1H2024 increased by 15 per cent year-on-year. Forward bookings for 2H2024 are promising, with occupancies nearing pre-pandemic levels of 2019.

However, high airfares for both domestic and international flights remain a significant stumbling block, reflected Wong.

To grow business, The Frangipani is working to recover bookings from Eastern European and Central Asian markets through collaboration with OTAs and traditional travel agents. Pre-pandemic, these markets were strong for the Malaysian island of Langkawi.

For Essence of Asia Tours & Travel in Malaysia, markets in the Middle East and North Africa region and India subcontinent have contributed strong bookings for 2H2024.

Executive director Arokia Das Anthony said visa-free entry for Indian passport holders, valid for up to 30 days from December 1, 2023 to December 30, 2024, fired up Indian arrivals during the recent summer peak season. Forward bookings for 2H2024 from India, the Middle East and regional South-east Asia markets have also been strong, driven by Tourism Malaysia’s promotions and gradual improvements in air connectivity, especially those linking secondary overseas markets to Malaysia.

Indonesian travel specialists also shared optimism for the coming months.

Major travel company Pacto has reported outstanding performance that is aligned with the surge in air capacity into Indonesia.

Umberto Cadamuro, COO inbound for Pacto, said: “All markets for us were over-performing compared to the previous year, both in arrivals and revenue. Notably, the lion’s share of the business came from GITs.”

He observed that the Indian travel market was back in full swing while good traffic from Italy in 2Q2024 would spill into 2H2024. The Spanish market has, however, been underperforming along with the US East Coast. The latter was likely due to flying concerns over or near the Middle East “given the situation”.

Cadamuro noted that Bali, Yogyakarta and Komodo Island remained popular among travellers, while Sumba, which has good access, new properties and unique culture, could shine next. Sumatra was also regaining popularity.

Hospitality firm Archipelago International said India and Australia markets are its enduring top performers, while China has started to rise in value, surpassing Russia. International guests accounted for 40 to 43 per cent of the company’s total business in 1H2024.

There has also been a “notable increase” in bookings from North America as a result of intensified promotional efforts in the region.

John Flood, CEO of Archipelago International, said the company’s expanding portfolio of hotels overseas is helping to spotlight properties in home base Indonesia.

Besides Bali and Lombok, Archipelago’s properties in Sorong (West Papua), Surabaya, Bandung and Yogyakarta are heating up among holidaymakers. Meanwhile, Jakarta continues to be a key destination for corporate clients.

Flood is confident of good performance the rest of the year, with business from both longhaul and Asian markets. Travellers from North America and Europe would be strong, “driven by ongoing promotional efforts and brand expansion” while robust performance was expected from Australia, India, China, and the Philippines, where the company is expanding its footprint through its Powered by Archipelago connectivity and distribution service. – Additional reporting by Mimi Hudoyo