Lion Travel sees bookings shift as higher airfares, war reshape demand

Taipei, April 10 (CNA) Rising airfares and geopolitical tensions are reshaping travel demand, with bookings shifting away from affected routes toward Asia, Oceania and North America, Lion Travel Service Co. General Manager Lai Yi-ching (賴一青) said Friday.

Lai said bookings have remained strong despite higher costs, with group tour bookings rising about 15 percent year-on-year since March. Demand for Australia and New Zealand has surged around 40 percent, while bookings to the United States and Canada have also increased.

She noted that routes transiting through the Middle East have been more affected by war-related uncertainties, prompting travelers to switch to alternative destinations.

East Asian destinations have benefited from the shift, with Japan tour bookings up about 40 percent and South Korea rising around 20 percent, Lai said.

Travel to Europe has also remained resilient, supported by more than 80 weekly direct flights operated by Taiwanese carriers, helping sustain group demand, she said.

Despite rising ticket costs, Lai said overall demand continues to grow, with Lion Travel's revenue in January and February exceeding that of the same period last year.

Rising global oil prices linked to Middle East tensions have led airlines to increase fuel surcharges, which took effect on April 7, pushing up operating costs.

Lion Travel, one of Taiwan's largest travel agencies, has raised the cost of short-haul group travel trips by less than NT$2,000 (US$63) and long-haul tours by about NT$4,000 per head, Lai added.

Looking ahead, demand is expected to remain strong, particularly for short-haul travel in Asia, as well as for small-group and corporate travel, Lai said.