Travel Agent NewsMATTA president Tan Kok Liang reveals that young professionals are increasingly looking to travel agents.

MATTA tracks Malaysians' travel trends

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Malaysians have a preference for destinations that offer exceptional service, diverse cuisine, rich heritage, and historical landmarks.
Malaysians have a preference for destinations that offer exceptional service, diverse cuisine, rich heritage, and historical landmarks. Photo Credit: Adobe Stock/ThamKC
Tan Kok Liang
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

  1. Malaysia (domestic)
  2. Singapore
  3. Japan
  4. Vietnam
  5. 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.

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