Travel agencies bouncing back

The outbreak of the severe acute respiratory syndrome (SARS) has dragged consumer confidence in traveling down over the past month. Travel agencies were hit hard as sales of travelling tickets plummeted to an all time low.

In an effort to reduce the strain on profitability some travel agencies in Brunei were forced to retrench their workforce or impose a salary cut.

However, with the lifting of the travel ban to Hong Kong, China, Vietnam, Singapore and Toronto by the World Health Organisation, and the announcement by Royal Brunei Airlines that flights to Hong Kong have recommenced and flights to Shanghai will resume in August, travel agencies in Brunei are optimistic that the sales of air tickets would pick up from where it left off.

Mr Foo, the general manager of a leading travel agency in Brunei told RTB Consumer Unit that travel industries are beginning to see a light at the end of the tunnel as sales of air tickets during recent school holidays increased by around 150 per cent. This showed that the sense of caution among consumers on SARS is slowly waning, attributing to the increase of the consumer's confidence level in travelling.

"Consumers are obviously still concerned about SARS but have slowly come to terms with the situation. There is a general feeling of relief that the outbreak has ceased to spread and appears not to be increasing," said Mr Foo.

Some Bruneian travellers are still taking the "wait-and-see" attitude by closely monitoring the SARS development while others are taking full advantage of the cheap deals currently offered by major airlines.

There has never been a cheaper time to fly, the RTB Consumer Unit concludes. The SARS virus has caused several affected countries to redefine strategies to spur tourism and transport-related industries back to growth.

Several airlines have introduced numerous promotions such as the well-received Buy One, Get One Free programme for passengers travelling in first and business class, free return ticket giveaways, slashing of airfares and giving out free five-star accommodation to lure tourists. According to Mr Foo, this is the best time ever to travel, SARS has resulted in cheaper fares across the board. For instance, a return flight fare to Singapore by Royal Brunei Airlines is now $377 inclusive of a free two-day stay at a five-star hotel.

But consumers should beware - the flipside of desperate airlines offering these slashed down prices is the risk that it may leave consumers with empty pockets. Consumers should remember to spend within their means.

For consumers' information, the current promotions are valid only until the end of this month. "The airlines would review and decide whether to extend the promotions via assessing public reactions toward the confidence of travelling," Mr Foo said.

The lifting of the last ongoing travel advisory by the world health organisation no doubt will bring hopes of recovery not only for airlines but also for hotels, restaurants and travel agencies.

How long it would take for businesses most directly affected by SARS to recover, however, remains something analysts are not prepared to put a timeframe on. Some say the situation should improve in a couple of months, while others were less certain and said there were still challenges to be overcome as SARS has not been fully eradicated in the region.

Courtesy of Borneo Bulletin