In recent months, the tourism sector has had major setbacks, with a inflation that does not touch ceiling, a devaluation weight constant and an increase in taxes that does not stop
And although companies have tried to resist by optimizing costs so as not to transfer the increases to the final consumer, this dynamic finally took its toll on two low-cost airlines, Ultra Air and Viva that in the last month stopped operating.
(They announce the opening of 60 flights to San Andrés for Easter).
According to him Corficolombiana analyst, Juan Camilo Pardothe fact that these airlines, which represent close to 25% of the market offer, left, will bring with it a contraction in passenger flow of 10.2% in 2023 compared to the 1% that would have grown if the Viva and Ultra Air cases had not been filed.
“Its impact on the sector will be heterogeneous. In San Andrés, Cartagena and Medellín, the market percentage in charge of Viva and Ultra Air was greater than 35%, so we anticipate that their effect in these cities will be stronger.”, the expert pointed out in his report.
As a result of this, a chain effect was unleashed that hit the entire sector just before the tourist season of Eastera time when millions of Colombians seek to travel.
(Wingo announces new flights to San Andrés for Easter).
“We estimate a 1 pp decrease in passenger flow, which reduces hotel revenue growth by 0.4 pp and hotel occupancy growth by 0.6 pp in the same monthPardo said.
And it is that for quotelcothe union of the hotel sectoryou can already see the impacts derived from this situation, it has even made hotel occupancy is only 49.4% which means a decrease of 2.53 percentage points compared to 2019 and 9.4 percentage points compared to 2022.
For their part, travel agencies have warned that they have seen a decline in their sales of tour packages.
(FAC and presidential planes will mobilize Ultra and Viva passengers).
According to a survey conducted by the Colombian Association of Tourism Agencies (Anato) to their travel agencies, some expressed a reduction in their sales of approximately 30%, for this time of year, when compared to those registered on the same date in 2022, including the Ultra Air and Viva effect, due to the uncertainty generated in the air market; the increase of VAT both in tickets and in tourist packages; and the increase in operating costs that have occurred in 2023.
“Despite the positive path that tourism had been showing, this season reveals a worrying contraction in the marketing of tourism products and services. Easter week has been characterized as the starting point to find out the behavior that the industry will have throughout the year, for which this data alerts us“, he pointed Paula Cortés Calle, executive president of Anato.
(Refunds, relocations and other measures for suspension of Ultra Air).
Within the sales of Travel agencythe Caribbean region, continues to be important as a destination, with Cartagena, Santa Marta and Saint Andrewregions where ticket prices have increased substantially.
In the case of routes to San Andrés, the average price found by the air ticket search engine travel itin March 2023, to travel on the days of Easter the journey Pereira to San Andrés the average round-trip price is $1,285,000, that is, 128% higher than between March and April of the year 2022, (10 days before Easter) in which the rate for that year was $563,299.
(The aid that Avianca and Latam will give to affected users of Ultra Air).
In the case of the route Medellin – San Andresthe price a year ago was $398,375 and now $777,333, about 95% higher; Cali – San Andres it was $526,981 and now $871,868, 65% higher and Cali – San Andrés was at $526,981 and now $871,868, 65% higher.
While possible responses to address the emergency and avoid further impacts on the market are being evaluated, the Government is attending to affected Viva and Ultra Air passengers.
PAULA GALEANO BALAGUERA
Journalist Portfolio
