Asia Pacific SARS Recovery Meeting

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Asia Pacific SARS Recovery Meeting

• Conrad, Singapore
• 27th May 2003

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The Nature of Travel in Asia Pacific Had
Changed even before SARS
ONE Travel Tourism no longer a luxury TWO
Industry economics experiencing a major period of
upheaval not just airlines THREE Given a
never ending series of events Managing Traveler
confidence an imperative SARS is just another
manifestation
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The Nature of Travel in Asia Pacific Has
Changed

• ONE Travel Tourism no longer a luxury
• In medium term Travel is driven by economic
  growth
• In short term by events
• Positive promotions
• Negative wars and more
• Travel always recovers

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Gulf War Impact
11 months
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Abacus Bookings20 Asia-Pacific countries
Index
110
3 months
100
90
80
70
60
50
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
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Weeks after September 11th
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Egypt Recovery Success Story

• Immediate visible security at all important
  tourist locations
• Find and punish the criminals
• Regular Press briefings
• Promote celebrity visits
• Targeted advertising campaign
• Outcome Tourist arrivals recover and exceed
  prior numbers within 2 years

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The Nature of Travel in Asia Pacific Has
Changed

• TWO Industry economics experiencing a major
  period of upheaval not just airlines
• Airlines under threat
• But also major changes to distribution
  economics driven by changing costs

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The Nature of Travel in Asia Pacific Has
Changed
THREE Given on-going events Managing Traveler
confidence an imperative

• Travel is an emotional buy now even more so
• Traditionally - Did I get good value?
• Is my travel representative reliable?
• Now - Do I know enough about the risks ahead
  can I make a sensible assessment?

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SLOP - Severe Lack of Perspective syndrome

• Travelers worldwide are unaware of the risk of
  contracting serious diseases (malaria hepatitus
  A) during international travel
• Survey of 8,000 travellers going to areas with a
  high risk for infectious diseases did not seek
  medical advice.
• Europe 48
• Asia 61
• USA 64
• 2,000 children die of malaria each day
• 70 of travel insurance claims are health related
  with water borne diseases predominating

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Ensuring Safe Informed Travel
15 April 2003
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So what next?

• The consumer always adapts and adjusts. As an
  industry, we need to advise and encourage
• As a result, Travel will recover if we give it a
  chance
• Biggest issue is seat capacity
• Spending Marketing Promotional s at the right
  time

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AAPA January 2003 data
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Constant Shock Syndrome
Long Term Growth Line
Post shock growth line
Shock
Quality of Marketing Promotions during
Containment will have a BIG impact on the future
Recovery
Containment
With permission from Peter Harbinsons Centre for
Aviation
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Booking Summary
Note Week 10 2 8 Mar Week 11 9 15 Mar
Week 12 16 22 Mar Week 13 23 29
Mar Week 14 30 Mar 5 Apr Week 15 6-12
Apr Week 16 13-19 Apr Week 17 20 26
Apr Week 18 27 Apr 3 May Week 19 4
10 May Week 20 11-17 May Week
21 18 24 May
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Booking Summary (Taiwan)
Note Week 15 6-12 Apr Week 16 13-19 Apr
Week 17 20 26 Apr Week 18 27 Apr 3
May Week 19 4 10 May Week 20 11-17 May
Week 21 18 24 May
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(No Transcript)
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Thank You
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