David Kevan, partner of Chic Locations in the UK, foresees Southeast Asia becoming a prime destination for UK travellers in 2024. The region’s allure is fuelled by pent-up demand from the pre-Covid era and exceptional value for money. However, concerns about limited airlift capacity persist. Below, the travel guru shares his thoughts with Travel Weekly Asia:

A region of value

“There is no doubting the popularity of Southeast Asia, with a lot of it being pent-up demand from pre-Covid times. Just as importantly the region is outstanding value for money for visitors on all levels, with Thailand and Malaysia exceptional given most prices are in local currency. When we talk about value at Chic Locations, we mean exceeding client expectations on all levels, not low cost. In terms of service, style, variety, and true quality, the whole Southeast Asian region is outstanding.”

Airlift constraints

David Kevan notes that Southeast Asia offers good value for UK travellers, but insufficient air capacity remains a challenge.

“Business to Southeast Asia from UK is good. In comparison, regions like Caribbean and Indian Ocean don’t match the robust performance of 2021/22 when much of the world was closed to tourism. However, the main concern with Southeast Asia is the limited airlift. Business cannot increase as there is insufficient air capacity. Even if airlines want to increase service frequency, the main airports in the UK lack spare slots for departures and arrivals. Vietnam might be an exception, as schedules have increased, but for most destinations, inadequate airport capacity remains a challenge. I’m not convinced if airlines are eager for extra flights, given that many are making good profits with reduced capacity, fewer staff and higher fares.”

Longer stays

“Given my concerns about the airlift to the region I do see substantial potential in encouraging clients to extend their stays. I believe the length of stay and spend should be equally, if not more important, than just arrivals. Most clients of Chic Locations travelling to Southeast Asia have flexible travel times and can be enticed to travel a few weeks later if it means 21 nights would be the same price as 14 nights, possibly in a higher grade of room.”

Growth constraints

“Taking the area as a whole, it is difficult to see significant growth. If one operator or destination grows, it is usually at the expense of others. The same pattern may be observed of hotels – when a new property does well, it perhaps diverts business from another, rather than opening a new source of clients. There are still opportunities, especially with more complex multi-destination itineraries, but the main issue remains the lack of air seats.”