File photo used for representation only. Photo by Salim Matramkot/ The Peninsula
Doha, Qatar: In a session entitled “Tourism finally opening up” at the Qatar Economic Forum, yesterday, powered by Bloomberg, industry leaders discussed the current state of the travel industry and its rebound stage. The panel featured esteemed speakers including Sébastien Bazin, Chairman and CEO of Accor Group; Tan Sri Tony Fernandes, CEO of Capital A (formerly AirAsia Group); and William Ellwood Heinecke, Founder and Chairman of Minor International.
Moderated by Mallika Kapur, Deputy Global Editor of Bloomberg Live Experiences, the session shed light on the industry’s recovery and the emerging trends in travel.
When asked about the rebound stage, Heinecke expressed his optimism, stating, “I think we’re definitely in the rebound [stage]. But more importantly, we haven’t seen China come back yet, and we’ll probably see that in the third or fourth quarter of this year.” Heinecke further emphasised that the resurgence of Chinese travellers would contribute to softening the impact of the “revenge travel” trend, which has been driving the recovery in various regions.
He also cited an example in Thailand’s case. “In Thailand, for the first quarter, we were down 85% over 2019 for the Chinese travellers, we’re waiting for the third and fourth quarter [and] we expect to get back close to 2019 numbers.”
Sharing his insights, Fernandes revealed how AirAsia had adapted to the challenges posed by the COVID-19 pandemic. “We renamed ourselves ‘Capital A’,” Fernandes said, highlighting the airline’s transformation during the crisis. He explained how the company diversified into four different companies, leveraging their vast data resources to venture into new sectors such as logistics and banking.
Fernandes stressed that the pandemic had forced them to rethink their strategies, leading to a stronger and more resilient organisation.
Bazin, speaking on the evolving concept of bleisure (business and leisure combined) travel, shared intriguing observations. “It’s been working very well,” he said. Bazin noted that the shift caused by remote work had significantly impacted the travel landscape. The proportion of leisure travellers had surpassed that of business travellers, with leisure accounting for 55% and business for 45% of Accor’s customer base. He described the emerging trend of customers working remotely during weekdays and embarking on leisure trips closer to home during weekends, leading to a new and intriguing market.
The discussion also touched upon the flight capacity and the demand for air travel. Fernandes expressed confidence in the recovery, stating, “I think so, Southeast Asia is probably the last of all the regions [to open borders], along with China.” He highlighted the positive forward bookings and strong demand for leisure travel, suggesting that people prioritise travel experiences before other discretionary expenses. “We now got about 170 planes back, we still have 40/50 more to go, by August we’ll have them all back on the sky. And I think that’s what most Southeast Asian airlines will have.”
Regarding the price of tickets, Bazin acknowledged the challenging times the hospitality industry had endured. However, he revealed that prices had rebounded and were even higher than pre-pandemic levels, allowing the industry to pass on inflation costs to customers. Furthermore, Bazin emphasised the importance of providing authentic experiences beyond the hotel walls, acting as guides and curators for travelers. “If you are the guide and curator, people will accept that you are paying the right price because you’re paying extra, and they will remember the visit, the brand and the destination – so it’s a different model.”
The impact on budget carriers was also discussed, with the panel highlighting that price remains a significant consideration for most travellers.
