The Travel Corporation Asia CEO on The New Face of Group Tours

Just days before Apollo Group Management announced a deal to acquire The Travel Corporation, Nick Lim, the group tour company’s Asia CEO, spoke with Skift about the outlook for the business in the region.

Lim stressed the need to reinvent group tours for today’s tourists by being flexible, tackling overtourism, and embracing technology without losing the human touch. His company, which operates guided tours through Trafalgar Tours, Contiki, Insight Vacations and Costsaver sees many travelers leaning towards the security and ease offered by established travel firms.

“Group travel ensures that all logistical concerns, from health emergencies to hotel check-ins, are managed, allowing travelers to focus solely on just enjoying the destination,” Lim said.

Importance of Flexibility

Flexibility is of the essence for today’s travelers, according to Lim. And his company has responded by designing itineraries that balance sightseeing with personal free time. “Our tours are not overly regimented. We don’t pack our trips from dawn to midnight.”

The Costsaver tours reflect this approach of “free and easy touring,” offering the benefits of a guided holiday with the flexibility to choose personal activities and experiences, he said. “Guests can explore independently, with optional experiences available, all while enjoying the convenience of organized transportation and accommodation.”

Adapting to evolving preferences for authentic experiences, TTC’s “Be My Guest” experiences now allows travelers to enjoy meals with local families, providing authentic local insights.

“Guests cherish these unique experiences over typical tourist activities,” Lim said.

Demographic Shifts and Travel Preferences

This flexibility has also led to a significant shift in the demographics of tourists joining group tours.

Traditionally, group tours attracted an older crowd, but now there is a notable increase in younger travelers. Lim said Contiki caters specifically to this demographic as the company exclusively allows those aged between 18 and 35 on its tours.

Even brands like Trafalgar and Insight Vacations are seeing a younger clientele.

“Previously, group tours were popular among retirees. Now, we see younger travelers, particularly on our Contiki tours for ages 18 to 35, and even in our luxury brands like Insight Vacations and Luxury Gold, attracting those in their mid-30s to 45.”

However, local expertise is crucial. “It’s essential to have travel directors, operations team, and drivers, who know the lay of the land, ensuring that when things go awry, there’s always a helping hand,” he said.

Future of Tourism: Countering Overtourism

Overtourism is a pressing issue and Lim said the company is mindful of how its itineraries impact popular destinations. By spreading tourists across lesser-known regions, they help alleviate the pressure on major tourist hotspots.

“Can you imagine everyone headed for Venice, Paris or Barcelona? That would be a nightmare. Designing itineraries that spread economic benefits across multiple destinations, help avoid overcrowding in popular cities. Also, we don’t pigeonhole all our trips in just the summer months. We spread them out across the shoulder months as well,” Lim said.

This approach, he said, ensures a more sustainable distribution of tourists, benefiting both the destinations and the travelers. Lim said tourism boards, travel companies and everyone else need to come together to fight overtourism.

Lim is also optimistic about the future of tourism. He expects the post-pandemic tourism surge to flatten out. However, he said the overall trend would remain positive, leading to a gentler, sustained upward trend in travel demand.

Technology and Human Element

About leveraging technology to enhance travel experiences and manage operational challenges, Lim said, TTC uses its online platforms to gather detailed information about guests’ preferences before the trip, where they also provide details on dietary preferences.

This level of preparedness ensures that the guests’ needs are met. It also allows travel directors to personalize the experience, making special occasions like anniversaries memorable. Technology thus complements the human touch, ensuring a seamless and enjoyable journey for all travelers.

However, despite the rise of technology, the human element remains integral to travel. Lim emphasized that TTC’s travel directors play a pivotal role in making destinations come alive for travelers.

“While technology helps streamline operations and enhance the guest experience — such as pre-trip planning and dietary preferences — the personal touch provided by travel directors ensures memorable and enriching travel experiences,” he said.