Tan Kok Liang
Tan Kok Liang is the president of MATTA (Malaysian Association of Tour
and Travel Agents). He is the owner and director of Borneo Trails Tours
& Travel and he also operates the Borneo Nature Lodge.
Unfazed by the challenges posed by a weakened ringgit, the love for
travel among Malaysians remains unwavering. Malaysian tourists continue
to embark on exciting journeys, with specific destinations capturing
their hearts and imaginations, reveals Tan Kok Liang, president of MATTA
(Malaysian Association of Tour and Travel Agents).
Malaysians' top 5 destinations
- Malaysia (domestic)
- Singapore
- Japan
- Vietnam
- South Korea
According to MATTA, Asia's top destinations for Malaysian travellers
are South Korea, Japan, and Vietnam, for their exceptional service,
diverse cuisine, rich heritage, historical landmarks, and a blend of
tradition with innovation.
Other local spots and neighboring countries like Indonesia and Thailand are also popular among Malaysians.
In Europe, the UK, Switzerland, and emerging Balkan and Italian
destinations are favoured. Although limited flight connectivity and visa
requirements affect US travel, the North American market shows
potential.
Post-Covid, Malaysians favour ASEAN markets like the Philippines,
Thailand, and Singapore. South Korea remains popular. While there's no
major surge in European tourism, travel trends and dynamics are
shifting.
What’s hot and trendy
Exploring the ongoing trends in the travel industry, it is clear that
packaged tours continue to maintain their popularity, attracting a
significant number of bookings and demonstrating resilience in the face
of predictions that Free Independent Travel (FIT) would diminish their
demand.
Moreover, recent events like the successful MATTA Fair 2023 indicate a high demand for travel agents and tour operators, contradicting earlier speculations about their decline.
The resilience of packaged tours
The recent Matta Fair 2023
witnessed a significant number of bookings for packaged tours due to
attractive pricing and the appeal of having a well-organised itinerary.
Travellers, especially those visiting countries with language
barriers, value the safety, comfort, and guidance provided by travelling
in a large group with a tour leader. This preference ensures that the
market for packaged tours continues to thrive.
The younger generation turns to agents
While younger generations lean toward independent travel, the
economic strength still lies with the older generation, which
contributes to the sustained demand for tour packages and scheduled
flights.
Additionally, many young professionals, burdened with pressure and
family responsibilities, turn to licensed travel agents for assistance.
This emerging trend presents opportunities for travel agencies to create
unique products and cater to the preferences of this market segment.
Lesser-explored destinations like the Central African Republic, Jordan,
Romania, Saudi Arabia and others are gaining popularity among these
young professionals.
The state of the cruise industry
Cruises continue to attract interest among Malaysians, offering
convenience and a hassle-free vacation experience, especially for busy
individuals with limited time for trip planning.
European cruises, particularly during the summer, are favoured by
many Malaysian travellers. However, the growth of the cruise industry is
hindered by a monopolistic distribution system that limits its
exposure. To enhance the industry's expansion potential, opening up the
cruise industry to more agents and reducing reliance on preferred sales
agents (PSAs) would likely lead to a resurgence in popularity.
Visa nuisance
Travel agents play a crucial role in facilitating seamless travel
arrangements, particularly in the face of complex visa requirements.
Travel to the USs presents a considerable challenge for Malaysians, with
lengthy wait times and the possibility of visa rejections.
As a result, the demand for tour packages has surged as travellers
seek the guidance and support provided by travel agents to navigate
these intricate visa procedures.
Digital adoption scorecard
Technology has become essential for travel agents, transforming the
industry from Telex to sophisticated systems and online platforms.
However, personal connections remain vital for engaging clients. The
hospitality industry's adoption of platforms like Instagram and Facebook
has contributed to the success of travel agencies.
While digitalisation is important, finding a balance between
technology and human interaction is crucial. Many Malaysian travel
agents have embraced digitalisation, with 60% to 70% adopting digital
platforms, recognising the need for a social media presence.
However, digital transformation varies among agencies, with smaller
operations still integrating technology into their workflows.
Putting the A in travel agents
Training new travel agents in customer service is vital, but in
Malaysia, the manpower shortage has led to insufficient training for
newcomers thrust into customer service roles.
However, organisations are realising the importance of equipping
staff with proper customer service skills, hiring professional trainers,
and implementing dedicated training programs. By 2024, the industry is
expected to reach pre-pandemic levels.
Efforts by organisations like MATTA and hotels aim to bridge the skills gap, particularly for fresh graduates.
Technology is being used to cope with the manpower challenge, such as
digital check-ins, but this shift raises concerns about the personal
touch. Tour guides are facing reduced demand as self-check-in options
and platforms like WhatsApp gain prominence.
Striking a balance between technology and personalised service is
crucial for the future of travel, catering to diverse preferences and
giving travellers the freedom to choose between solitude and engagement.