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European bookings 'disappointing'

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Melburnian1

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I read in either 'The Australian' 'AFR', 'The Age' or 'SMH' in the last couple of weeks about a travel source describing forward European bookings by air as 'quite disappointing.' The comment was specifically referring to June (and perhaps May), months for which one might expect Australians travelling to Europe might have booked back in February or before. Unfortunately I cannot find the article. It must have been from someone with access to airline GDS.

This was a general comment (not aimed at airlines that have lately been in the news such as MH and QF).

If true, it must be concerning for many airlines given the intense competition on the Kangaroo route as yields per seat must be under a bit of pressure.

At a quick guess, using the same operator all the way through, one can choose (for a UK trip) to go on its 'own metal' all the way from at least one Australian airport to at least one European destination on AI, BA, BI, BR. CA, CI, CX, CZ, DL, EK, EY, GA, KE, JL, MH, MU, NZ, OZ, PR, QF, QR, SQ and UA plus others that I have no doubt forgotten. That's 23 that I quickly counted. A long way from a monopoly or duopoly in which the ACCCs of the world might take interest (although in freight, there have been allegations and Federal Court findings of price fixing and now a USA style class action settled or close to it, while Flight centre was recently finded $11 million for trying to ensure airlines such as SQ did not sell tickets for less than Flight Centre could. The latter decision is now under appeal.)
 

Cool Cat Phil

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I read in either 'The Australian' 'AFR', 'The Age' or 'SMH' in the last couple of weeks about a travel source describing forward European bookings by air as 'quite disappointing.' The comment was specifically referring to June (and perhaps May), months for which one might expect Australians travelling to Europe might have booked back in February or before. Unfortunately I cannot find the article. It must have been from someone with access to airline GDS.

This was a general comment (not aimed at airlines that have lately been in the news such as MH and QF).

If true, it must be concerning for many airlines given the intense competition on the Kangaroo route as yields per seat must be under a bit of pressure.

At a quick guess, using the same operator all the way through, one can choose (for a UK trip) to go on its 'own metal' all the way from at least one Australian airport to at least one European destination on AI, BA, BI, BR. CA, CI, CX, CZ, DL, EK, EY, GA, KE, JL, MH, MU, NZ, OZ, PR, QF, QR, SQ and UA plus others that I have no doubt forgotten. That's 23 that I quickly counted. A long way from a monopoly or duopoly in which the ACCCs of the world might take interest (although in freight, there have been allegations and Federal Court findings of price fixing and now a USA style class action settled or close to it, while Flight centre was recently finded $11 million for trying to ensure airlines such as SQ did not sell tickets for less than Flight Centre could. The latter decision is now under appeal.)
Really interesting point that Forward bookings to Europe are looking "Disappointing".

I don't claim to know the answer for the Traditional "Kangaroo Route" being under pressure from a forward booking's perspective, but i'll throw a few of my own ideas into the bag.

Could it be the Exchange rate perhaps. Historically speaking we still have good value in The Euro & Sterling..... but certainly not as good as Last year.

Are we looking for even more 'bang for our buck'?

Intense Competition..... without Question.

The Backpacker market is as strong as ever Presently, who are a core market on the traditional "Kangaroo Route".

However, as we know most of the price conscious Customers that fall under this form of leisure Customer are more than happy at tailoring their own journeys using multiple journey's & multiple Airlines. It's pretty easy being your own Travel Agent these days from the comfort of your own home!

LH from FRA > BKK, then BKK > MEL on JQ is one example that a German Backpacker may take for example to commence their working holiday in Australia.


I believe many Australian's (Those of us who have Travelled Long-haul a few times before) have done Europe many times before & are seeking new & exciting destinations for our leisure holidays.

I'm not suggesting that Europe isn't exciting or relevant anymore, but merely some Australian Leisure customer's are looking for new destinations for travel.

South America comes to mind in particular as a destination that is quite "hot" for many Aussie traveller's presently.

Just a few more thoughts to through into the mix.
 
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Cool Cat Phil

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Do BA still fly to Australia?
Yes, but only LHR > SIN > SYD.

No longer do they fly to other Aussie destinations like they once did a decade ago.

Mind you they will shortly be the "last One Standing" as the only European Carrier to fly from Europe to Australia after Virgin Atlantic pulls out from the Australian market next month.
 
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