Airfares to Malaysia Skyrocket for Chinese New Year

SINGAPORE – As the Chinese New Year approaches, travelers are witnessing a dramatic surge in airfares to Malaysia, with tickets experiencing substantial price hikes compared to the previous months. For instance, Ms. Jennifer Chee, a 33-year-old designer, recently forked out $1,300 for a round trip back to her hometown of Sandakan, Sabah, during the festive season. In stark contrast, she discovered that the same journey could be booked for approximately $240 just two months earlier.

Anticipating further increases, Chee preemptively purchased her flights for the upcoming 2025 New Year, paying $700 for round-trip tickets. Her foresight saved her around $600, as the cost of airfares tended to climb closer to the holiday dates.

According to recent checks by The Straits Times, return economy class airfares to popular destinations in Malaysia, including Penang and Kuala Lumpur, range from $414 to $983, while flights to Kuching can soar up to $967 during the festive week from January 25 to January 31, 2025. Chinese New Year itself falls on January 29 and 30.

Increased Demand and Fluctuating Ticket Prices

Airline representatives report a significant increase in demand for flights to Malaysia this year. A spokesperson from Malaysia Airlines confirmed a 30% rise in passenger demand compared to the same period last year. In contrast, Mr. Dersenish Aresandiran, the chief commercial officer for the airlines under Malaysia Aviation Group, noted that ticket prices have not risen but instead demonstrated a downward trend due to an increase in available flights.

Land Transport Demand varies

However, the demand for cross-border land transport appears more varied. Some local operators indicate they are still in the early stages of gauging bookings. One transport provider mentioned having received only five confirmed bookings but over 20 inquiries, expressing an expectation of a 30% to 50% increase in demand during the festive period, bolstered by Singapore's restrictions on foreign vehicles and Malaysia's enforcement of the Vehicle Entry Permit (VEP) for Singaporean cars.

Notably, vehicles wishing to enter Malaysia must register for the VEP by October 1, creating frustrations for many drivers facing delays in the application process.

Outlook for Malaysian Operators

Despite the overall optimism, some Malaysian operators anticipate lower demand compared to pre-Covid-19 levels. One operator shared that while past years saw around 40 booking requests annually during the New Year, post-pandemic trends suggest a more moderate response this year, largely due to increased competition in the transport sector.

Many transportation services are gearing up for the rush, with Malaysian bus operator Causeway Link already selling tickets for 2025 and suggesting a significant demand increase, especially for routes from Singapore to Kuala Lumpur and Melaka. Expect higher fares during this festive period, with tickets costing RM192.50 (approximately SGD 60) between Singapore and Kuala Lumpur and RM157.50 to Melaka, which is a sharp rise from the standard RM70 to RM87.50.

In contrast, sales for buses from Sri Maju Group have been sluggish since ticket sales began in early October. Manager Susan Ng attributed this to the proximity of other holidays, which may lead to potential travelers hesitating about additional trips home.

Conclusion

As Chinese New Year approaches, both air travel and ground transportation are experiencing unique challenges and trends. Whether you are flying or driving, planning ahead is critical to avoid the holiday rush and skyrocketing costs!