ForwardKeys: Asia Pacific travel gains momentum
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‘ForwardKeys’ Director of Intelligence & Marketing, Olivier Ponti, unveiled compelling insights into Asia Pacific travel trends at the PATA Annual Summit 2024 in Macau. Highlighting the region’s remarkable recovery post-COVID-19, Ponti’s presentation underscored the pivotal role of increased flight connectivity, innovative marketing strategies, and relaxed visa requirements.
Steady Recovery in Flight Connectivity
Connectivity in the Asia-Pacific region, which has faced significant challenges, is rebounding swiftly. As of the first quarter of 2024, the region’s seat capacity recovery is just 13% shy of 2019 levels. Notably, the Asia-Pacific outpaced global seat capacity growth, registering a 7-percentage point increase compared to the global average of 3 percentage points between Q4 2023 and Q1 2024.
Declining Airfares Amid Growing Demand
As seat capacity gradually rebounds, airfares have shown a consistent downward trend since 2023, despite remaining higher than 2019 levels due to limited capacity and strong demand. This trend was particularly evident during significant events such as Chinese New Year and major concerts in Singapore. For example, Taylor Swift’s concert in Singapore in early March led to a 17% increase in travel from Southeast Asia, contrasting with a 27% decline in the rest of the month.
Visa Facilitation Draws in Chinese Travellers
Chinese outbound travel during the recent Labour Day holiday indicates a mere 16% decrease compared to the levels recorded in 2019. The relaxation of visa policies has notably enhanced Chinese travel to numerous destinations. Data revealed a 212% surge in travel from China to Kazakhstan, with notable increases to Singapore, Azerbaijan, Malaysia, and the Maldives. However, Thailand’s slower recovery is attributed to ongoing safety concerns.
Innovative Marketing Strategies Stimulate Demand
Air Macao’s pandemic-era promotions, such as ‘buy one, get one free’ tickets, successfully attracted mainland Chinese couples and continue to do so post-pandemic. Their new ‘Travel Pass’ offer for affordable travel from specific cities to Macau has further increased couple bookings by 4 percentage points compared to 2019 levels.
A Positive Outlook for Summer 2024 Travel
The forward-looking travel outlook for the Asia-Pacific region remains positive, although recovery is still ongoing. As of April 27, summer travel bookings to APAC are down by only 12% compared to 2019 levels. In contrast, travel to Europe and the Americas has fully rebounded, and travel to Africa and the Middle East is down by just 5%.
PATA’s CEO, Noor Ahmad Hamid commented, “The travel industry can effectively attract tourism by harnessing the power of visa facilitation, strategic marketing, and leveraging major events. These elements are crucial in driving the recovery and growth of tourism in the Asia-Pacific region.”
Olivier Ponti added, “Our data highlights a robust recovery trajectory in the Asia-Pacific region. The 7-percentage point increase in seat capacity from Q4 2023 to Q1 2024 and the noticeable decline in airfares, driven by strategic marketing efforts, underscore the region’s resilience and adaptability.”
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