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SINGAPORE: Travel agencies reported softer demand for tours to Europe and the Middle East, while travellers raised concerns about rising costs, on the first day of the National Association of Travel Agents Singapore (NATAS) fair on Friday (Mar 27).
Over 70 exhibitors, including travel agencies, cruise operators and tourism boards, are participating in the fair at Singapore Expo.
Several agencies CNA spoke to said the turnout appeared lower than expected, although they noted it was still too early to assess, as the fair runs until Sunday.
Agencies specialising in tours to the Middle East were hit particularly hard, with demand dampened by the ongoing conflict in the region.
Mr Ozkan Kocaci, managing director of Turkey-based Global International Trips, said he was not expecting a strong turnout. About 80 per cent of his tour bookings for upcoming months have been cancelled, he said, largely because Emirates, Qatar Airways and Etihad Airways had suspended most flights amid the conflict.
“We see many people are going China, Japan. But of course, Europe, exotic destinations like the Middle East will be affected a lot. Nobody is asking about those trips,” he said.
Mr Azlam Shah, director of Umrah travel agency As Sofi Travel and Services, said plans for Islamic pilgrimage trips have dropped to just two or three this year, down from the usual 15. Enquiries for these trips have also fallen, he said.
The agency has since shifted its focus to promoting packages to destinations such as Malaysia and Indonesia to recover losses, he said.
Mr Benny Ho, director of LGE Travels, attributed part of the weakened demand to rising fuel costs and daily expenses, saying travellers were likely to trade long-haul trips for shorter regional getaways.
“They have money. But they will try to hold back a bit. They will still travel, but instead of long-haul destinations, probably they will go for shorter-haul destinations,” he said, pointing to the popularity of China and Japan.
Some travel agencies said demand for European tours could pick up towards the end of the year.
Ms Chung Tak Ing, assistant general manager at Asa Holidays, said customers whose trips to Europe were cancelled due to Middle East stopovers had largely chosen to postpone to year-end, while others were redirecting to destinations within Asia.
Mr Wong Yew Hoong, director at EU Holidays, said some travellers remained open to transiting through the Middle East later in the year, with bookings already coming in for year-end trips to Europe via Middle Eastern carriers.
“Most of the people I spoke to don't think that (the conflict) is going to be prolonged to the end of the year. So we do see people booking end of the year using Middle East carriers to Europe, to Western countries,” he said.
RISING TRAVEL COSTS
Most fair-goers CNA spoke to were largely unfazed by the conflict, having opted to travel within Asia. However, some expressed concerns about rising fuel prices.
Airlines across Asia have raised fares as jet fuel prices have more than doubled since the conflict began, with Singapore Airlines (SIA) and its budget subsidiary Scoot among those affected.
Ms So, a retiree in her 50s planning a trip to China, said she came to the fair to lock in prices before costs climbed further.
“We do not know whether prices will increase. I think the airlines are also watching the situation. So since we find that the pricing now is reasonable, we decided to do the booking first,” she said.
Others were less deterred. Mr Nick Toh, 45, a public servant also heading to China, said fuel surcharges were manageable relative to the overall package cost.
“I know there will be surcharges and all this, but I guess relative to the entire package, it’s still something that we can stomach,” he said.
For some, uncertainty continues to cloud their travel plans.
Ms Maren Lee, 60, who travels regularly with a group of friends, said their upcoming trip to Northern Europe was cancelled after Emirates grounded flights and they remained reluctant to rebook.
“We don't mind (going to Europe). But the problem is, we also don't know how the situation,” said Ms Lee, who works in sales. “We also don’t want to book, and then last minute they say cancel … then we have to look for another place.”
