
Garuda Indonesia (GA) resumed its Nagoya/ Denpasar service on June 2. The route continues to show a vibrant growth, according to Sales Manager of its Nagoya office, with an average seat load factor of 86.9% as of June 19, which exceeds a minimum target of approximately 70% set by Garuda Japan. The main traffic segment is leisure travelers, 94% of whom are traveling on package tours.
While GA Nagoya Office appreciates the fact that “the local market has long awaited the airline to come back,” he says he believes the excellent restart is attributed to two reasons.
Firstly, the airline has informed the travel market of a resumption of the flight at an early stage and secondly the country enjoys its high popularity among other competitive beach resorts. Already last December, Garuda announced that it was going to resume its Nagoya/ Denpasar service, thereby several travel agents including JTB and H.I.S. started to produce package tours to Indonesia. The airline also launched a discount for advance bookings, namely, a discount of 10,000 yen per passenger if a name is given 60 days prior to a departure date.
As a result, “Various customers from young people to seniors are joining the package tours. At the product planning stage, we have encouraged our travel agents to plan a 6-day long package tour, departing on Saturday, enabling them to come up with various tours featuring not only resort areas, but also visits onto Jogjakarta to see the World Heritage sites such as Borobudur,” he explained, largely thanks to ample time the airline had to prepare to resume the Nagoya flight.
Usually, the month of June sees less group traffic including incentive tours, but June this year has produced 20 groups of 20 to 80 passengers. Some flights are even fully booked already 3 months prior to a departure. GA Nagoya Office assumed, “Although our Indonesian beach resort destinations from Nagoya compete with Cairns in Australia and Hawaii, our lower land costs and a large capacity offer, including other airlines, have seemingly helped our travel agents to plan their package tours without any anxiety.”
The outbound travel this summer, as a whole, continues to be sluggish, but GA Nagoya Office said he is convinced that “Garuda’s Nagoya route will not see a downturn. We shall continue our daily efforts to build up our business from Nagoya.”
In the future, Garuda Indonesia intends to launch customer-oriented advertising to enhance a market presence of its Nagoya/ Bali route and at the same time to encourage the travel industry in Nagoya to develop new products featuring, for example, “Healing” in a mountainous area like Ubud, which have been sold in parts of the Tokyo and Osaka markets, thus the airline is determined to further expand its sales promotion well in advance.
Source: Travel Vision
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