Japan was a popular destination before the pandemic. Wendy Wu Tours says interest is high again. Photo / 123RF
Group travel pioneer Wendy Wu Tours is heading back to one of its most popular destinations - Japan.
The country has been shut off to tourists with some of the most restrictive Covid-19 conditions in the world for more than two years, but has now re-opened to groups.
The travelfirm's founder, Wendy Wu, said it was exciting for New Zealand and Australian clients who could now be part of a tour at the end of July.
While Wendy Wu Tours (WWT) does not disclose guest numbers, before the pandemic the Japanese market had been growing at double digits for visitors from Australasia.
Japan opened its border on June 10 exclusively for travellers on fully inclusive tours and WWT is among the first to head back, with a 12-day tour from July 26.
Although the travel industry is now battling soaring inflation, the $10,490 price of the tour was around the same as it was pre-pandemic, largely because of the sharp fall in the value of the yen. The Japanese currency has sunk to a 24-year low, making travel within the country more affordable.
Wu said the pandemic initially hit hard for WWT, which focused on China, Japan and other Asian destinations since its founding in 1994.
She was in New Zealand when the pandemic hit and thought its impact would not last too long.
"How wrong you can be? But we were very strong and very solid."
Fallout from the pandemic was a "catastrophe" for many in the travel industry, but during the past two years her firm had expanded its range of destinations, diversifying from its Asian focus to other markets including Egypt, Israel, Jordan, Portugal and South America. It was the company's biggest expansion.
Around the world, short- and medium-haul leisure flight bookings are now above 2019 levels, up 25 per cent and 27 per cent at the end of April respectively, after turning positive for the first time since the pandemic around February this year.
Travellers are not only spending on flights. Despite the challenges facing the cruise industry, spending on cruises globally is roughly only one-tenth below 2019 levels.
Wendy Wu Tours has its headquarters in London and offices in Sydney and Auckland. In New Zealand, managing director Paul Dymond started domestic tours for Kiwis who couldn't travel abroad, a model that was replicated in Australia and Britain.
While about 30 per cent of its staff left the firm as the impact of travel restrictions intensified, many had now been hired back. Downtime during the pandemic had also allowed WWT to rebuild its website to create a better booking platform for the trade and the public.
Wu said the travel market had bounced back strongly. Bookings for May this year were 25 per cent up on those for the same month in 2019, before the pandemic.
Customers were also willing to spend more and book for more frequent tours - one booking yesterday was for eight tours.
Wu said it was an example of travellers taking advantage of opportunities when they could, after two years of being largely stuck at home.
Another growing trend was for solo travel. "In the past we had 10 per cent to 15 per cent solo travellers, but during Covid that shot up to 35 per cent."
Wu had been optimistic that China would re-open this year but now says this is unlikely before 2023. The firm has, however, been able to restart tours to Vietnam and Cambodia.