‘Backpacker’ destinations entering long haul mainstream

A survey of American Express Travel UK offices during July and this month shows Australia as the top long haul destination for the second year running.

But agents reported that destinations previously on the backpacker route – like South America, China and the Indochina countries of Cambodia and Vietnam – are taking a slice of an increasingly fragmented long haul market.

The agency’s top ten long haul table is dominated by the US, with New York, Florida and California rated amongst the top five destinations. The strength of sterling is continuing to exert a major impact on bookings and has encouraged both package holidaymakers and independent travellers to visit the country.

Demand for Dubai shows no sign of letting up with the Emirate state featuring in the top three for long haul holidays overall, for independent travel and for fast growing family long haul holidays. Family holidays now account for 27% of American Express’ long haul business.

Price is a strong factor in the success of Australia. High approval ratings have given the country an enviable reputation and, now that these are being matched by competitive pricing, demand has spiralled upward over the past 12 months, according to Amex agents.  

Competition has toughened in the Indian Ocean over the past 12 months with The Maldives the only new entrant to the top ten. Popular with honeymooners, The Maldives comes into the league table in tenth position after some years on the brink.  Good pricing is again a factor and a host of late deals have helped boost business to the islands, according to Amex Travel.

A drop off in demand for the Caribbean, noted in the agency’s report last year, has continued into 2005 with Barbados is the only one of the big four islands to feature in the top ten.

American Express Travel vice president, Europe Katrina Harrison said: “The family long haul market has grown out of all recognition in the past couple of years but it is definitely being driven by demand for well-priced holidays that benefit from child-go-free deals or other incentives.

“With its theme parks and the attractive sterling-dollar exchange rate, Florida continues to dominate the field but destinations like Dubai and Mexico – with great value all-inclusive deals on tap – are fast catching up.

“More top grade hotels, more direct flights from UK regions and a reputation as a welcoming place for families have all boosted Dubai’s appeal – and there’s no sign that it is running out of steam.”

AMERICAN EXPRESS TRAVEL TOP TEN LONG HAUL DESTINATIONS 2005