Wendy Wu Tours held a lunch to mark Chinese New Year in London last week. Pippa Jacks spoke to founder Wendy Wu and UK managing director Laurence Hicks about the business’s growth.
Wendy Wu Tours is expanding its reservations team and launching a new “bookable” website as it celebrates sales being more than a third up compared with last year.
The Asia and Latin America specialist said forward bookings for 2017 were 33% up on the same period last year, with the most significant growth coming from Japan tours and tailor-made itineraries.
Founder and chief executive Wendy Wu said: “We hit the sales floor on January 4 and boom, sales were amazing.
“China and Vietnam are growing but Japan is our secret weapon; it’s doing amazingly well,” she added, attributing some of the country’s popularity to recent ITV documentary Joanna Lumley’s Japan.
The operator was able to acquire 90 extra last-minute places on Japan cherry blossom tours for March and April, due to a softness in demand from Thai tourists mourning the death of their king, which made Wendy Wu Tours “the only operator in the UK to still have cherry blossom space”, Wu claimed.
Sales of tailor-made tours have almost doubled in January 2017 compared with last year, with recruitment now under way for two additional reservations consultants specialising in this area.
Wendy Wu Tours will also invest in technology this year, with new consumer and trade websites coming in May or June, which will both enable group tours to be booked online for the first time.
But UK managing director Laurence Hicks said online booking would not replace the need for agent partners and phone-based consultants.
“For our type of product and demographic there is still a lot of interface required,” he insisted.
Forthcoming movie The Great Wall could boost trade for Wendy Wu
A new back-office system is also being rolled out globally, which will link Wendy Wu Tours’ booking system to that of its own China-based destination management company, which will allow for much quicker quoting on tailor-made products.
“At the moment, you put in a request and it comes back 24 hours later, so we’re looking at ways of automating the process so your request goes straight to our DMC in China to get a price within a few hours,” Hicks revealed.
Despite the currency issues that other operators may be experiencing, Hicks said successful hedging meant Wendy Wu Tours had not needed to raise prices for 2017 departures.
“We’ve always hedged, and for intelligent businesses working with currencies, it is hard to believe they won’t have hedged for 2017,” he said.
“But where we will see prices rise across the touring sector is in 2018, when those operators are out of their mid-term hedging,” he pointed out. “We’ll be okay in the early part of 2018 but we might have rises towards the end of that year.”
The fact that Wendy Wu Tours contracts in local currencies in Asia was an additional factor, he added.
“Some operators are contracting in Vietnam and south-east Asia in US dollars; we won’t entertain that.”
Hicks urged agents to focus on the all-inclusive nature of a touring holiday when selling the product in 2017. “Tipping, meals, entrance fees, it’s all included on an escorted tour. Customers don’t have to put their hand in their pocket, and it makes it a good product for agents to sell,” he noted.
The operator hopes that a forthcoming movie called The Great Wall, which stars Matt Damon, will create new interest in China’s famous landmark.
Recent consumer research conducted by Wendy Wu Tours revealed that 90% of Brits had not yet visited the Great Wall of China, but that visiting a Modern Wonder of the World or World Heritage Site was an ambition for 60% of those surveyed.
The operator’s popular promotion of free business class upgrades with Air China finished at the end of January, and has been replaced by a Cathay Pacific promotion offering upgrades to business class for £199 one way and three-day Hong Kong stopovers for £199.