Optimism and confidence is growing among Asian travel agents, according to the latest Abacus Asia Travel Sentiment Survey, which revealed that 62 per cent of travel agents anticipate a promising industry outlook for the next half year. This marks a recovery from the recent economic downturn. Robert Bailey, President and CEO, Abacus International revealed the latest survey findings at the 7th Abacus International Conference 2010 recently held in Ho Chi Minh.
 
“Positive growth in travel bookings in recent months has fuelled optimism for the industry’s outlook. Abacus has experienced 11 per cent year on year growth in total booking volumes to August. Of this, the number of travellers has grown by 15 per cent and this trend is expected to continue into Quarter One of 2011. This has been a better than expected result from our earlier forecast of three-five per cent in the first half. The growth spurt has been fuelled in part by the pent up demand for leisure travel, as well as the return of corporate travel,” added Bailey. 

“Asia certainly remains the most dynamic region, best demonstrated by international arrivals to Asia Pacific surging ten per cent in Quarter One of 2010, and the expected USD 5.2 billion profits from Asia-Pacific carriers in 2010 which surpasses the peak in 2007,” said Bailey.

According to International Air Transport Association (IATA) latest Premium Traffic Monitor released in September this year, international premium air traffic growth remained strong in July this year, increasing 13.8 per cent year-on-year for the month ‘despite rising uncertainties about some economies’. Premium routes linked to Asia showed year-over-year high-end demand growth of 23.9 per cent and growth in both the front and back of the aircraft ‘continued to be driven by business travel’.

Asia Pacific aviation is leading the travel industry recovery, with the region’s carriers accounting for 28 per cent of the global passenger traffic and 40 per cent of global cargo traffic. With a strong economic rebound and robust demand, Asia Pacific airlines have raised ticket prices, and in turn Low Cost Carriers (LCCs) have taken off. LCC penetration, fleet size and number of budget carriers have all seen large increases and are continuing to grow.

“Although revenues have returned, budgets remain tight, corporate travellers stay cautious with their travel expenditure and leisure travellers continue to hunt around for the best bargains. To meet the challenges of the ‘new norm’ in travel and the travellers of tomorrow, agencies will need to focus on the three key ‘P’s of People, Partnerships and Productivity to evolve with the changes in the travel industry. Abacus is well positioned with its market expertise and leading technology to help our travel partners, both the airlines and travel agencies, to meet and leverage the emerging business opportunities,” added Bailey.

He mentioned that the better than expected upswing in travel traffic comes in a new travel landscape, with travellers who have emerged from the economic recession, setting a ‘new norm’ in travel expectations. These same travellers are much savvier nowadays, according to 62.5 per cent of survey respondents, making it a priority for agencies to address key challenges and appropriate budgets in core customer focus areas.

Abacus’ online survey of leading travel agents across the Asia Pacific region also found that travel agents believe the corporate segment as having the most room for growth, even with companies revising policies on corporate travel expenditure and the consolidation of travel management companies. This is supported by IATA’s Premium Traffic Monitor (September) data on the strong international premium air traffic growth. In addition, agents also identified the convenience of online shopping as a key driver in boosting their own online offering.

Bailey continued, “Asia’s growth continues to be fuelled by China and India, and there is no doubt that the growth of these two markets has assisted in the travel industry’s up stick. The importance of the Indo-China region cannot be underestimated, with this region contributing to Abacus’ better-than-expected bookings growth.”

“Another key trend that stands out within the travel industry is the phenomenal growth of the mobile platform. With over 450 million mobile Internet subscribers in the Asia Pacific alone, mobile applications are rapidly being developed. As an industry leader, Abacus has developed the Abacus WebStart for mobile, Abacus Mobile, Abacus VirtuallyThere and TripCase to enable its travel partners to maximise the potential of the mobile platform.

Bailey concluded, “International air travel in July this year was 9.2 per cent higher year-on-year and the forecast for the global airline industry remains clear with an expected return to profit of USD 8.9 billion this year, which is triple the amount predicted in June this year. If the record-breaking sales of SGD 85 million in travel deals and close to 70,500 visitors at the recent National Association of Travel Agents Singapore event is any indication, we are well positioned to benefit from this industry growth. The industry looks set to close the year with an eight-ten per cent increase in travel bookings over the previous year.”