BTExpo and Travolon invited the Presidents and spokespersons of the major associations in the travel industry around the table, to exchange ideas about the Belgian market, about the issues and challenges for the future and about their vision on specific subjects. It turned out to be an interesting debate, with thought-provoking messages and some remarkable  signs of confidence in the market, in the sector and in the future.

The participants: Jean-Philippe Cuvelier (UPAV), Bernard Tuyttens (BTO),  Paul Vandermoeren (VVR),  Christian Lagae (Brussels Airlines), Veerle Deboeck (ABTO).  We will mention the most remarkable statements, per subject.

The crisis.  The crisis has hit the travel industry hard, but today we see the first signs of what could be interpreted as a « bottoming out » effect. November BSP, although still negative, seems to stop sliding. Financially November still shows a -6,34% negative growth vs last year but in documents (so in number of people travelling) it is only -0.62%. (We should note that in November 2008 the first effects of the crisis were already felt so still “handle with caution” the difference with this already difficult market).

 Most participants are quite confident that business will pick up again soon. They agree that consumer confidence is key. Jean Philippe Cuvelier stated that “The travel industry can handle a crisis like the one we are experiencing today. We have taken the necessary measures, and today our companies are in a better shape than ever to pick the fruits of the recovery. We have increased productivity, we have cut excessive costs and we have improved our production processes. It is clear that we have learned from past experiences.”  Christian Lagae added that the airline industry is still uncertain about the short term future, but Brussels Airlines is confident and ambitious, not the least because of the recent (the day before the debate) membership of Star Alliance.

The perception of the Belgian market.  The Belgian travel, tourism and hospitality industry is very often managed in a fragmented way. Tourism Offices have their regional offices in Paris or London, Hospitality Companies are organized in Benelux regions at best, and airlines consider Amsterdam, Paris or London as truly European hubs. The international tourism industry fairs in London, Berlin, Madrid, Milan and Paris are considered the “places to be” by the international destinations … and their budgets. Yet, the Belgian market is highly value driven, and considered as extremely high quality, both incoming and outgoing.

 Recent studies confirm that the Belgian tourist is one of the biggest spenders on world wide basis. Recent surveys also confirm that the service level, rendered by the Belgian incoming industry, rivals any other European destination. Question:  what can we do to improve our image, what can we do to claim our rightful position?

The participants agreed that our regional tourist promotion offices should do a better job of promoting the Belgian tourism industry. Bernard Tuyttens underlined the “incoming tourism” reflex of most of our official administrations, and remarked that in order to change things and to come to more structural support for the outgoing branch of the travel industry, structural changes are essential.  Veerle Deboeck added that recognition of and support for outgoing tourism as an important economic driver on government level would be an important first step.

The market share of Low Cost airlines.The growth of Charleroi Airport (+32%) vs the decline of Brussels Airport (-13%) in 2009 clearly shows that Ryanair is quickly taking market share. Observation: the low cost airlines are a competitor for more than one player in the travel industry. Besides competing head on with the “heritage carriers”, they use their position and their communication strength to broker a lot of other services: hotels, car rentals, insurances ...

The participants consider low cost as a structural phenomenon: the secor will have to live with it, whether we want it or not. Most of the opinion leaders confirmed , that airlines such as Ryanair can have a positive effect: they encourage people to travel, to go out and discover the world. This will wet the consumer’s appetite, who most probably will come back for more. Paul Vandermoere agreed with this point of view, but wanted to underline the dangerous effect of the Ryanair subventions by the regional government, through Charleroi airport. All participants confirmed that this financial support is unhealthy and dishonest in a highly competitive market.

A united travel industry. In the winter of 2008, the Belgian Travel, Tourism and Hospitality Industry took a firm position against the planned “Flight Tax”. In what was generally considered as one of our “finest moments”, the industry succeeded to convince the government that this tax was a bad idea. We managed to produce clear facts & figures that simply could not be ignored.

During  (and of course after …) the debate it was clear that the participants and their organizations are all in favor of clear, open communication and, where possible, collaboration.  Although still very much fragmented, the travel industry is confident that there is a beautiful future ahead of us, with plenty of challenges and promises. And: all opinion leaders confirm that BTExpo is vital for our market.


 

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