Air travel defies global challenges

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globalairtravel
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Written by Linda Hohnholz

The latest global overview of air travel has shown that passengers, from Europe, the Americas and the Far East, are making more bookings and taking more flights, despite recent terrorist attacks and on-going geo-political wrangles. That’s according to ForwardKeys which predicts future patterns by analyzing 16 million booking transactions a day.

The findings will be presented at the World Travel and Tourism Council’s Global Summit, the highest-level annual gathering of travel industry leaders, this year taking place in Bangkok, April 26-27.
The headline findings are:

โ€ข Canada is the new star destination in North America.

โ€ข Europe is recovering from last yearโ€™s terrorist attacks – arrivals growth is back on track.

โ€ข Political events can have a major impact on the tourism industry: the Chinese turn their backs on South Korea, and explore ASEAN countries instead.

โ€ข The BRIC countries are back: Brazil and Russia lead the growth. Thailand benefits.

Olivier Jager, CEO of ForwardKeys, said: “This overview reveals the resilience of the travel industry globally. People are finding alternative new destinations, and they are returning to others, previously blighted by dreadful events. However, in a world of shifting travel patterns, businesses that depend on travelers need to be able to readjust ever more quickly.”

The data shows that in the Americas, Canada and Mexico are setting the pace for long-haul arrivals. The Netherlands, China, the UK, and Germany are fueling the additional forward bookings to both countries.

The US suffered a decrease in visitors in the first quarter of this year – uncertainty due to Donald Trumpโ€™s travel ban and the stronger value of the dollar may have discouraged Middle Eastern (down 9.5%) and European travelers (down 6.5%). Forward bookings to the US have picked up, mainly due to Easter shift.

Long-haul arrivals in Western Europe are on the increase โ€“ showing its resilience in the face of last yearโ€™s terror attacks. It has taken over a year to recover, but long-haul arrivals are starting to surge again, reaching visitor numbers higher than those seen before the Paris attack in November 2015.

Chinaโ€™s power to make or break a destination is demonstrated by the recent trend in visitor numbers to South Korea. Beijingโ€™s anger at the stationing of US THAAD missiles in South Korea is having a marked effect. ForwardKeysโ€™ data reveals international arrivals in South Korea, for stays of four to eight nights, fell 10% in the first quarter of this year due to cancellations by Chinese tour groups in March. Forward bookings for the same category are currently lagging 28%.

ASEAN countries are the most likely to benefit from South Koreaโ€™s visitor crisis โ€“ as they certainly have the increased capacity for visitors from China.

The BRIC countries are travelling again in bigger numbers โ€“ Brazil has been on the up since the end of its political crisis in 2016, and Russia had its first positive monthly performance, in December 2016, since its annexation of Crimea in March 2014. Both countriesโ€™ currencies are recovering in value โ€“ indicating more travel to come.

Forward bookings show that four out of five of the top increasing destinations for Brazilians are in Europe. Indian travelers prefer Asia Pacific. Russians like Georgia, Czech Republic, UAE and Italy. Turkeyโ€™s big increase is due to Russian travel sanctions the previous year.

Thailand is benefiting from the BRIC boom. Itโ€™s helping to fill a gap left by a reduction in Chinese visitors after the Thai government discouraged cheaper tour groups from China from September 2016.

Olivier Jager concluded: โ€œIn summary, Europe is recovering, the BRIC are back, Canada is a rising star and Thailand has made a very positive start to the year. However, the deployment of THAAD missiles in South Korea has torpedoed its inbound tourism industry.โ€

About the author

Avatar of Linda Hohnholz

Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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