Friday, June 27, 2008

How Fuel Increase is effecting the Travel Industry

The Fuel Increase is not just a Malaysia problem, its effecting so many countries regionally and globally. What's sad is that its also affecting my industry .. the Travel & Tourism industry.

And now that the Oil is at a Record US$140 per barrel, I wonder just how things will continue in the upcoming months?

Here are a few exerpts taken from various newspoints.

One big problem for Corporate or Business Hotels is that you see big cuts in corporate travel, where for the Airlines, Business Travelers now move to take on the Economy Class, and for the Hotels, Corporate Travelers are now told "Travel Only When Necessary!", this will add on to the slow occupancy% levels in hotels in the city! SIGH!

Malaysia is showing a strong decline in travel volumes, why? Because our Travel Packages are not attractive anymore. And that was a comment by a major Travel Agency of Malaysia. He goes on to say that we are a more expensive destination compared to HK & Bangkok! Some Travel Agents are also losing $$$ because of Ground Transport fees increase. More Sigh!

Airline tickets are also going up, MAS fuel surcharge is going up from USD340 to USD456!! And if it continues, you'll see MAS cutting down more travel routes, cos it will be toooooo expensive to maintain their flights. And now if we wanna travel from KL to India, the ticket surcharge will increase from RM288 to RM406! Wah Liau... who would wanna travel in the upcoming months? Unless you're really VERY Rich or its an Urgent need to be in that country. MAS has already declared that it will be a VERY TOUGH ride ahead.

So for those of you in the Travel & Tourism industry ... just brace yourself for the upcoming Tough Ride. Hang On and belt yourself tight! Get ready for a Super Wild Roller Coaster Ride!

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