
Has the prolonged downturn of the economy affected tourism? Do the people of Estonia leave more modestly and travel frequently outside the border? Will the
prices for tour packages change?
- Residents of Estonia are vacationing less often, but with comfort
- Overabundance of tour operators leads to dumping
- A shortage of airframes – not in benefit of new destinations
Has the long downturn of the economy affected tourism? Do the people of Estonia have vacationed more modestly and travel
frequently outside the border? Will the price of tour packages change?
Rus.Postimees answered in studio executive director of tour operator Coral Travel Estonia Yana Mityakova.
Excerpts from the conversation:
– Is the protracted downturn of the economy affected on tourism?
– Of course it is. In that time when the population has to tighten the belt, every person will consider whether he needs to go to Turkey, Greece or Egypt. And But while the people in Estonia continue to choose to travel, as impressions are more valuable than material goods.
– Then is the population of Estonia not in a hurry to save on holidays?
– Of course, some some signs of economy are already present. If the early average tourist who purchased a 7-day tour package, would go only a couple of times in the season (winter and summer), then now he is doing this less often, preferring more elite holidays. For example, it goes one time in a season, but immediately for 10-12 days, and with this chooses a more expensive hotel.
No one withdraws from a vacation entirely. Estoniantourist is doomed to travel: in our weather conditions and the current situation people just need to leave the country for positive emotions and vivid impressions.
– Do travelers’ preferences change over time?
– Tourists always need comfort. Vacation should be enjoyable. And there is a demand for this. There is some confirmation of that is occurring in the construction market Antalya. Massive renovation of hotels is underway, many new ones are being built and in the luxury segment (in the premium class – editor’s note). Every hotelier tries to please the demanding tourist, who frequently prefers a more spacious room and a softer pillow.
Another trend has emerged. The “eco” component is firmly entering the quality of food offered in hotels. We are increasingly seeing ecologically clean products on the menu.
And another one trend: Many hotels are transforming the system “all inclusive” and transitioning to service on the menu a la carte or offer ontime service, when a chef is present in the room and cooks a dish directly for you.
For the modern tourist it also important whether hotels use recycled materials. Our tourist will always notice which pipe he drinks and which packages are on the go.
What is about the destinations which are preferred by Estonian tourists, the absolute kings of winter holiday is Egypt, followed by Tenerife and Dubai. With the growth of prices holiday in Arabian Emirates has become more affordable and understandable for Estonian tourists.
– – Even even though the airline FlyDubai has replaced the flyDubai flyDubai from the previouslyplanned direct flights from Tallinn to Dubai?
– With our big regret. Based on pre-sales opened by the law about six years before the planned flights, it was evident how strong competition could be created by Dubai to the same Egypt. It has become clear that direct flights in combination with reasonable prices is what caused the excitement of Estonian tourists.
If to talk about that which destinations prefers the people in Estonia in the summer period, the palm premises to since to Turkey. Our tourist is ready to invest in such a vacation and is very expecting it. This shows that the person needs an all-inclusive vacation. – Are tour operators affected by tour operators’ problems in the aviation industry? Airlines are facing a shortage of airplanes and engines, causing disruptions in schedules, cancellations of flights… – Of course, it does, and it is affecting the world. These problems affect not only tourism, but the entire system of international logistics. It all started with a pandemic, to catch the suspended and stopped and still unsuccessful. A good example is airBaltic, which because of problems with engine maintenance was forced to cut part of flights, and some routes are even canceled. We as tour operators chartering our airplanes, we understand that when the market is deficient of flights, this causes an increase in the costs of carriage of passengers. At this moment it is important to be clear to consider how many tourists we can allow our self to take to holidays, how many passengers we would like to have in together, andHow much the tourist is willing to pay. It is necessary to find the balance. If we have five five boards and eight destinations, we have to make choices. These problems lead to determined limitations. Now today the Estonian market has much more tour operators than required. This leads to the fact that tour operators have to cooperate between themselves, or share blocks of seats on the same and the same flights. If each tour operator were to charter each one of these planes, it would be a space offer. There is no such demand in the Estonian market that would respond to this offer. And though to Turkey in the season by we charter almost daily on a plane, in the case with – Will price increase for tour packages? – Will most likely increase. The preconditions for this are many. Alas, the sufficiency of airplanes is predictable. The inflation is also having a big influence and not only in Estonia. In the same Turkey it has gained cosmic scale. This draws by the increase in the payments of hotel staff, the increase in the price of fuel and eco-taxes. And to this may be added to the increase of prices fuel and eco-taxes. – With the background that people have to tighten their belts, will the policy of discounts change? Will they be done more frequently and in more size? – Discounts appear when the supply exceeds demand. In this situation tour operators have to make their discounts more frequently and in size ?We have to discount to fill seats on airplanes. An empty seat on an airplane costs us much>more than the discount. A lot depends and on how successful the early booking was. For example, Coral Travel has had good sales, our year program is fulfilled by more than 30%. With this disposition it is unlikely to expect more discounts. In this case there is a balance between demand and the number of scheduled flights. But it is possible to suggest that early booking is not at all tour operators has gone as well as well. And, it appears they will offer discounts. – Will the rest of the Market participants have to respond to this? – There is the issue of some dumping. The Market has some new tour operators who have recently arrived in Estonia. They are fighting for their part of the pie, so they are dumping prices. In fact they are burning their money, in order to gain money to gain part of the market. Obviously, this is affecting those tour operators who have been in the Estonian market longer. To avoid losing their clients, all tour operators have to adjust to the situation and be flexible in pricing. But any business must be profitable. A Business without support at a determined moment may collapse. And it is necessary to consider, that the tour operator, knowingly working in minus, may even not be registered in Estonia. In this context the question of trust in that or an other player in the market becomes not a formality. Let me remind you that it is the Estonian system that is the Estonian systemThe Estonian state will protect tourists. The Estonian state will take care to deliver from the border to the tourists who fell into a difficult situation . – Will Estonian tour operators open new destinations? – – I would really like to answerthisquestionin the affirmative,butthe matterisfocusedontheproblemsofaviation.An earlyresolutionof themwouldallowustobegintoconsiderotherdirections. See more inrepeat!” .