Friday, December 02, 2005

It's in the air...

How fickle the conference industry can be. Figures from the Australian Bureau of Statistics covering outbound conference delegates show that destination preferences tend to change - in fact, countries once a high priority are now being shunned.The bureau has projected its figures for this year to cover the entire 12 months, and the winner is...New Zealand, with a massive 40 per cent increase in Australian meetings business compared with last year.

There are perhaps two good reasons for this - increased competition across the Tasman has led to sales forays into Australia, raising awareness of New Zealand as a destination; and unsettling problems in other countries such as bird flu and bombings.

China and Hong Kong are well up in the list of favoured destinations and Singapore managed to attract 7 per cent more business tourists, while the rest of South-East Asia has dipped.

Another big winner is Europe, with 24 per cent more visitors (the UK figures rose 35 per cent). Long-haul treks seem to be winning the day, thanks to healthy competition and competitive airfares.Meanwhile, the US had a 9 per cent drop, yet still had more conference arrivals than the whole of South-East Asia. This is interesting as there is no competition when it comes to fares, which are pretty steep.

So what is in the crystal ball? I believe long haul will continue to be strong, especially with the introduction of the A380s and 777s which can fly non-stop between Sydney and the UK. For airlines to fill all these seats, fares will need to be competitive.

Watch this space!

Rob Yeomans
Publisher

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