Too much discounting will damage tsunami destinations
CIMTIG & PATA Debate Special: Discounting holidays ‘too heavily’ to countries affected by the Indian ocean tsunami will damage the destination’s reputation an industry debate has heard.
Tourism Authority of Thailand marketing director for leisure, Richard Hume says his organisation is encouraging tourists back to areas most severely affected by the tsunami, such as parts of Phuket, by marking down prices on accommodation and entrance to national parks. However, he said prices shouldn’t go too low.
“We have worked hard in the UK and Ireland to keep Thailand an aspirational destination and we want to keep it like that,” he said. He added that the five star boutique market is still one of the fastest growing areas for Thailand.
Mr Hume was speaking at Tuesday’s CIMTIG and PATA- organised debate in London on the recovery for tourism destinations after the tsunami.
Somak Holidays general manager Far East was also on the panel and launched a vehement attack on heavy discounting.
“You don’t want to mark the destination down by price. There’s a fine line between stimulating business with price and giving people the impression there is something wrong with the destination,” he said.
“Some operators even used this terrible event to drive down prices,” he added, saying it was very difficult to get prices up again.
Kuoni product director Francis Torrilla was also on the panel. He was in Sri Lanka on Boxing Day and after describing his experiences told the audience that after encouraging charitable donations, getting tourists back was the best way to help the country’s tourism industry recover.
“Whenever there has been an incident like this one of the quickest ways to get people back is by price.”
“The airlines and hotels aren’t making money and tour operators are making little or none because of discounting,” he said.
He said Kuoni, for whom Thailand, the Maldives and Sri Lanka are historically the top selling destinations, has released a brochure of selected regions affected by the tsunami and on some holidays the margin is £10, half of which is being donated to local communities.
“People wouldn’t come if we were selling these holidays at brochure price,” he said.
Also speaking at the event was Malaysia Airlines UK sales manager Anton Grossman who said the airline had “taken a firm stand” and only waived cancellation charges up to January 10 because Malaysia has been less damaged by the tsunami than other regions. He added that by continuing to the waive the charges it would have “confirmed people’s misperceptions about the size of the disaster.”
However, once a respectable amount of time had passed he said Malaysia Airlines began discounting flights to stimulate demand. “If the price is right people will book,” he said.
Mr Grossman also gave example of operators that were offering up to ten nights in Malaysia for £399 to attract holidaymakers.
Report by Ginny McGrath
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