Inbound woes drive Philippine agents towards brisk outbound sector

Philippine travel agencies are shifting their focus to the stable and robust outbound market as the inbound sector suffers a series of shocks, the most recent of which is the six-month closure of the island of Boracay beginning April 26.

Tellingly, the Network of Independent Travel and Allied Services Philippines (NITAS) will launch tour programmes for outbound and domestic markets only, but none for inbound.

Explaining the move, NITAS vice president Angel Ramos Bognot said that inbound business into the Philippines is currently poor and requires bigger investments in terms of attending foreign trade shows and producing marketing collaterals. Moreover, Boracay’s closure might cascade to other destinations, she pointed out.

Philippine agents diversifying to outbound is not a recent phenomenon as the inbound sector has for years been mired in challenges including safety and security perceptions, stiffer competition from OTAs and suppliers, as well as inadequate destination marketing and promotions.

Bognot, who is also president and managing director of Afro Asian Travel and Tours, said she used to have more inbound business but is now 50-50 with outbound, echoing the experience of a growing number of agencies diversifying into the brisk outbound sector.

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