TRAVEL rates have gone down globally by a whopping 80%, with a downward trend expected to carry into 2021 – and at the very least continuing this trajectory in the first quarter of the new year.
However, as vaccination is slowly implemented in countries worldwide, there is hope that it might help the industry bounce back.
If recovery happens as expected and no unforeseen circumstances thwart the success of the vaccines, it is predicted that the recovery of leisure group travel might return to 2019 levels of demand toward the end of the year, commented HotelPlanner CEO Tim Hentschel.
“Events like weddings, sports teams travel, and even family vacations are the first to aid the recovery,” he reckoned.
“In the case of individual travel, the rebound is currently driven by domestic travel as frequent vacation-goers are forced to travel within the country due to border restrictions.”
While individual travel is not spared from a fall in demand of about 30% year-on-year, there is a slight recovery of 5% monthly.
Meanwhile, Malaysia should prepare to see a surge of travellers and increased demand from travellers hailing from China and Singapore.
As soon as restrictions on travel ease, Malaysian hotels should see a spike in occupancy and bookings.
In addition, brands should be prepared to welcome a return in demand, however slight, according to Hentschel.
“It is important to expect last-minute domestic travel as more travellers turn to domestic tourism for a safer and easier option,” he pointed out.
“Long gone are the days whereby a vacation requires weeks of planning. Instead, domestic travellers are inclined toward the flexibility of last-minute trips, and hotels will have to be able to cater to that.”
In addition, to prepare for a return to normalcy, brands should take this opportunity of a lull in demand to work on developing the business such as expanding via partnerships, strategic mergers and acquisitions, as well as hiring to bring in new talent and foray into new lines of business.
Despite this, expectations have to be maintained. A slow recovery should be expected in the beginning, which slowly picks up as the vaccine slowly gets distributed.
Only when a vast majority of people receive the vaccination worldwide, then can pent up demand explode. When it happens, occupancy levels are predicted to peak in the high 90s.
In Southeast Asia alone, the upcoming year holds many surprises and a lot of potential, despite the ever-changing tides.
The travel industry is poised for a strong recovery in 2021 – a recovery that will be led by the airline industry.
On top of that, the upcoming World Economic Forum is being held outside of its usual venue of Davos, in Singapore – and that itself will bring international travellers back to this region. – Dec 29, 2020
