Europe is getting increasingly popular among corporate groups for more reasons than one. Photo Credit: Adobe/william87
European economies are facing a challenging winter, with the threat
of recession, supply chain issues and rising energy prices. The UK in
particular has faced a challenging few weeks with two prime ministers in
recent months, increased inflation, a weak pound and demand for housing
falling at its fastest pace since the start of the pandemic.
Whilst the lower pound could certainly be viewed by some as a pull
factor to the UK, Sanjay Seth, managing director of BCD Meetings &
Events doesn’t believe there is a particular focus on the UK as a
favoured outbound destination from Asia at present — rather, it’s Europe
as a whole that is proving attractive.
“[Several] destinations in Europe are proving to be popular – we have
Portugal, Finland and Budapest as some examples of confirmed locations
for incentive trips in early 2023, “ he says. “Travel within the APAC
region excluding China is booming as well. Singapore, Thailand, Vietnam
in Southeast Asia as well as Australia and New Zealand are very popular.
Now that Japan is opening and relaxing regulations even further, it
will be a huge market for incentive travel within APAC and beyond.”
IIma Afzal, strategy director at Jack Morton Singapore, says the low
British pound paired with the easing of international travel
restrictions is encouraging groups across Asia to take advantage of
foreign exchange rates.
“This may in turn see a temporary rise in long-haul travel from Asia
to Europe [as a whole],” he says. “The UK’s low pound is indeed a
welcome draw for Singaporeans as they are indulging in post pandemic
travel escapism.”
Petrina Goh, regional commercial director, SEA & Hong Kong at CWT
Meetings & Events says the agency is receiving a lot of enquiries
and requests from clients in APAC who are eager to resume long-haul
incentive trips to popular destinations in Europe such as Rome and
Barcelona, now that travel restrictions have been mostly relaxed.
“However, travel prices in Europe have skyrocketed as a result of
demand-supply dynamics and broader inflationary pressures,” she says.
“Hotel prices in markets like Germany, France, and the UK are around
18-23% higher than last year, surpassing 2019 levels, according to our
2023 business travel global forecast. In Ireland we expect to see a
year-on-year increase of nearly 40% in average daily rates. The weaker
euro and pound will help soften the blow, to a certain extent, for APAC
planners.”
While there is definitely heightened interest in traveling to the
major European cities, Goh adds that the challenges around availability
and higher prices are prompting planners to cast a wide net and also
consider destinations such as Iceland, South Africa, Fiji, Japan and the
Philippines.
For Jack Morton’s Afzal, the potential for travel to key Europe and
Asian destinations lies in the hands of Chinese tourists. Whilst China’s
population is still tackling Covid-zero policies, an ease in
restrictions and the possible return of Chinese tourism could prolong
any potential long-term trend of Asian inbound tourists in Europe and
Asia.