Return of package travel?

We’re just about starting to enjoy the benefits of low-cost travel but these pleasures are not destined to last forever, according to the President of the European Travel Commission, who has her finger firmly on the pulse of the industry.

Petra Hedorfer’s finger is pointing to energy and oil prices, as well as government taxes, in her forecast of “the risk of rising travel costs in the future”.

“Flying from one destination to another for €9 could not possibly last forever,” she insists.

But she is not too concerned about the impact on tourism if the all-important low-cost trips cease to be so low, highlighting a “natural demand” for travel. “People will travel even if it gets more expensive.”

She is also predicting a new awareness of all-inclusive packages, saying “people will be looking clearly at where to go and how much they would be spending”.

The forward-looking woman is also a step ahead when it comes to forecasts for the free independent traveller (FIT) and tour operators. Her personal prediction is that FITs may decrease, and the trend would be towards booking organised packages, offered by tour operators.

The benefits are that “you can see exactly what you are going to get. The overview of the budget for the trip you are planning is clearer than if you go on your own”.

She does not think the current trend of booking online would turn around completely but she insists on the opportunity for tour operators to go back to their clients and offer them the benefits of package travel.

That offer does not necessarily mean mass-market tourism, which is what it has been equated with, she explains. It can specialise in high-end customers’ needs, offering trips to wellness spas and boutique hotels, but also including flights.

“It does not mean everyone has to flock to the same sandy beach,” says Ms Hedorfer, who besides heading the Commission, whose members are Europe’s national tourism organisations, is also CEO of the German National Tourist Board.

Germany is grabbing the opportunity to get worldwide tour operators to organise high-end customers’ needs and many are already online, offering these new upmarket all-inclusive packages.

Ms Hedorfer, who was in Malta for a two-day visit, says this scenario is already unfolding on the island, and cultural events should be thrown into the mix.

Last year, tourism in Europe experienced growth of two per cent, which meant recovery from the financial crisis was still under way. But from a global point of view, it was definitely back on track, she says.

This year has just started but the ­­­World Tourism Organisation’s forecast is a plus of between four and five per cent.

Several crisis scenarios are focusing on tourism at the moment but predictions for 2011 remain positive, Ms Hedorfer says.

She is keeping her fingers crossed that nothing “bigger” happens now, referring to the “tremendous” changes in North Africa and the tsunami tragedy in Japan.

“Having said that, we have seen many events in the past, such as 9/11 and disease outbreaks, and these have had short-term effects on the tourism demand, which always got back on track,” she says, hopeful that the outcome would be the same now.

Tourism is quite resilient but these scenarios have to be kept in mind, as they reflect customers’ demands, she explains.

“For North Africa, it is a tragedy. But travellers can, nevertheless, choose from a wide variety of destinations, and it does not mean they have to stop travelling altogether.”

To her knowledge, Malta is still safe in the minds of Germans. “Of course, some are more cautious than others. But people are ready to travel; they want to travel; and Malta is one of the countries they want to travel to.”