David Kevan, partner at Chic Locations in the UK, predicts that Southeast Asia will be a key destination for British travellers in 2024. The region’s appeal is underpinned by pent-up demand from pre-COVID times and good value for money. However, concerns remain over limited air capacity. Below, leading travel experts share their thoughts with Travel Weekly Asia.
“The popularity of Southeast Asia is unquestionable – much of this is due to pent-up demand from before the COVID-19 pandemic. Equally important, the region offers great value for money for travelers at every level – with the exception of Thailand and Malaysia, where most prices are quoted in local currency. When we at Chic Locations talk about value, we don’t mean low cost, we mean exceeding customer expectations at every level. The entire Southeast Asia region stands out for service, style, variety and true quality.”
David Kevan says Southeast Asia is a high-value destination for British travellers, but a lack of air capacity remains a challenge.
“Business from the UK to Southeast Asia is strong. In comparison, regions such as the Caribbean and Indian Ocean have not matched the robust performance they saw in 2021/22, when tourism was banned in much of the world. But the main concern for Southeast Asia is limited air traffic. Insufficient air capacity means they cannot add more business. Even if airlines wanted to increase the frequency of their services, major UK airports simply do not have available slots for departures and arrivals. Vietnam may be an exception, where schedules have been increased, but in most destinations, lack of airport capacity remains a challenge. It is unclear whether airlines are keen to add more flights, given that many airlines are reducing capacity, cutting staff and increasing fares to make profits.”
“Given the concerns about air travel to the region, we see great potential in encouraging clients to extend their stay. We believe length of stay and spend is equally, if not more, important than just the arrival date. Most Chic Locations clients traveling to Southeast Asia have flexibility in their travel dates, so if 21 nights is the same price as 14 nights and perhaps a higher grade room, we can entice them to travel a few weeks later.”
“Looking at the region as a whole, we are not seeing significant growth. When one operator or destination grows, it is usually at the expense of others. The same pattern is seen with hotels, where successful new properties are more likely to draw customers away from others rather than opening up new customer segments. There are still opportunities, especially on more complex multi-destination itineraries, but the main problem remains the shortage of airline seats.”
