Thankfully, this is having minimal impact on travel to Pacific Asia; summer isn’t typically our peak season, and as long as the airports resolve their issues ahead of winter, supply and pricing shouldn’t be impacted.
Likewise, the largely "packaged" pricing of travel to the region means customers are less aware of cost increases, and this is largely offset by the margins with lower room rates. "It’s not all doom and gloom, especially for Pacific Asia," Pata UK and Ireland aviation consultant Patrick Folley tells me.
Figures he’s shared with us at Pata (the Pacific Asia Travel Association) highlight how quickly things are recovering, with flight capacity in the region at 60%-70% of 2019 volumes. High ticket prices aren’t sustainable for the airlines, it’s a short-term issue and prices should drop again soon, he insists.
For budget-conscious travellers, there are great value flight options with new low-cost carriers opening up the region even further. They include Singapore Airlines’ low-cost subsidiary Scoot flying Singapore to Gatwick via Bangkok; Air Asia X, launching later this year flying between Malaysia and London; and Bamboo Airways’ new weekly Hanoi-Gatwick service launching in October.
Patrick and I agree that agents have an opportunity to capitalise on consumer demand for great value travel, and should turn their eye to Asia which offers incredible value for money and less flight uncertainty.
Another Pata member David Kevan, co-founder of CHIC Locations, believes that with the pound plummeting against the US dollar, Pacific Asia – especially Thailand and Malaysia – could be among the best-value holiday destinations over the next 12 months.
In his experience, over the past two years, the region has lost business to destinations such as the Caribbean due – in part – to more simplistic Covid protocols and all-inclusive offerings.
Pacific Asia is much more easily accessible now, and offers much better value for money in terms of room rates – and even more so in incidental costs in-destination. As an example of cost-saving, customers can expect to spend around £1,000 less for seven nights’ luxury accommodation in Phuket compared with seven nights’ luxury accommodation in Saint Lucia.
With this in mind, we should perhaps be less worried about demand for Q4 2022 and Q1 2023. Yes, consumers have inflation to contend with and winter fuel bills to budget for, but demand for travel is strong.
For travellers seeking winter sun and world-class beaches, the Pacific Asia region offers a choice of low-cost airfares and premium holiday experiences for a more reasonable and affordable price, comparably.
It’s good news for agents too, as this creates scope to upsell room categories and tours. And with the region offering such a wealth of cultural, historical, wellness, adventure and gastronomic experiences, agents can create exciting itineraries for their clients – for less.
Chris Crampton is the UK and Ireland chair of the Pacific Asia Travel Association. Patrick Folley is director of operations, aviation, at Jacob Engineering.