 DERTour picks China |
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Despite the fact that China is not performing well, DERTour will take its academy to Beijing in November, the first time ever the multimillion dollar project is heading for an Asian destination in the 30 years it has been around.
DERTour¡¯s academy is coveted because it can be the launchpad for a destination in Germany, as proven when DERTour did it for South Africa in 2000.
The concept involves taking 700 of the ¡°best¡± retail agents to the destination in order to familiarise them with the country¡¯s products. In the following year, the country becomes DERTour¡¯s ¡°destination of the year¡±, with the tour operator investing a ¡°significant¡± amount of money to market it.
Retail agents have to qualify for the academy through knowledge tests and sales performances. They are split into two groups of 350 and spend about 10 days in the destination, four days for the academy and the rest for pre- and post-trips.
On how the destination is selected, DERTour, Meier¡¯s Weltreisen and ADAC Reisen managing director, Mr Michael Frese, said: ¡°It is timing. America is our destination of the year this year, when the academy was held in Las Vegas in November 2003. We knew that because of the decreasing dollar, America would become a strong destination. So it would be wise to prepare the agents who have to sell the destination when the time is right. There is no doubt, America is selling well for us this year.
¡°Our experience with South Africa back in 2000 was that the pricing was extremely competitive, the destination was a standalone with everything from sce-nery to wildlife, and all we needed to do was raise its awareness. If you talk to South Africans today, they would acknowledge the German market boomed for South Africa since we were there.
¡°This is exactly why we are going to China. We believe the awareness among travel agencies about China generally is not good enough ¨C they do not really know what China offers, what it looks like. We also know China has the product, that there is demand for it and that the prices are okay. Once we raise the aware-ness among agencies, we will accompany that with huge promotions.¡±
However, China is now a dark spot, with forward bookings behind by 30 per cent for DERTour and Meier¡¯s combined.
Other Far East destinations in contrast are showing healthy growth. Meier¡¯s alone is seeing figures to Indonesia doubling; between a 40 and 50 per cent increase to Vietnam; 15 per cent to Thailand. China is behind by 50 per cent for Meier¡¯s.
Mr Frese said: ¡°It is worrying. It may be because of China¡¯s way of handling SARS, but I also think it is a lack of air seats at a price tourists would pay, since a lot of the traffic to China is business.
¡°It could also be the river cruises; these were sold as ¡®Come now, before they disappear¡¯; are we now saying come now even though they are gone ¡±
DERTour was not taking a gamble in picking China as its destination 2005, he added. ¡°We believe very much in China, because we have had strong business there before, and because we believe China is a country that is not yet as represented here as it could be. It is true that China is going through a valley. But there are many more possibilities. We know it will come back ¨C and stronger than ever.¡±
Meanwhile, Mr Frese expects turnover to increase this year by at least by 15 per cent for long-haul trips. DERTour¡¯s turnover in 2003 was E700 million (US$865 million), while Meier¡¯s raked in E190 million.
He dismissed any notion the German travel market was shrinking. ¡°Our clients are Germans who travel long haul and they are not as affected as other groups such as families.
Depending on where you come from, you can do good business in Germany. Our segment is doing very well.¡±
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