Sri Lanka to levy booking tax on OTAs

November 16, 2017

After months of debate and discussion, Sri Lanka is finally imposing a tax on OTAs and online accommodation sites effective April 1, 2018.

The new one per cent tax on commission made on every online sale by both local and foreign OTAs – including accommodation sites like Airbnb and Booking.com – was announced in the national budget for 2018, which was presented by finance minister Mangala Samaraweera last Thursday.

OTAs like Booking.com that are operating in Sri Lanka now have to pay taxes

The money will be collected by the government, which is discussing the mode of collection. There is also a proposal to create an e-payment website in which all online businesses local and foreign need to be registered.

The move was welcomed by hotels, many of whom have raised concerns over some businesses having their commissions taxed but not OTAs.

The hotel sector is subject to 12 per cent tax per annum, on top of other taxes that all businesses pay. Foreign OTAs, since they operate abroad, were not subject to any local taxes until the latest proposal.

Local OTAs interviewed, on the other hand, opined that the tax is unfair as they already pay taxes like other companies in the leisure sector. Prageeth Hewage, founder of miracleofasia.lk, said: “Our margins will be affected badly.”

The tax however didn’t surprise the market. Airbnb has for months been in discussions with Sri Lankan tourism minister John Amaratunga and the authorities on this matter. “They (Airbnb) have agreed to pay taxes,” the minister said at a travel conference some months back.

At the PATA Annual Summit which was held in Sri Lanka in May, Airbnb official Thao Nguyen expressed a compliant stance towards taxes.

In Sri Lanka at least 40 per cent of travellers stay in non-formal accommodation from bookings made online.

International interest in Komodo rises

By Ade Siregar

November 16, 2017

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Padar-island-in-Komodo-islands,-Flores,-Indonesia. — Padar Island in Komodo National Park

Domestic and international travel buyers, including those hailing from as far as South America, are showing a growing interest in Komodo.

The second edition of the Komodo Travel Mart (KTM), which took place in the East Nusa Tenggara (NTT) capital of Kupang last month, attracted 166 buyers from 11 countries, a significant growth compared to the first one held last year, which was attended by 72 buyers.

Abed Frans, chairman of Association of the Indonesian Tours and Travel Agencies (ASITA) NTT Chapter, said: “Besides the NTT Tourism Office, we have received support (in putting up the show) from Ministry of Tourism, Ministry of Foreign Affairs, Angkasa Pura Airport Authority and Citilink.”

This was a huge improvement compared to last year’s event, where ASITA worked alone on the show, according to Abed.

While the Komodo National Park is popular internationally thanks to the aggressive promotions by the government and the development of infrastructure in Labuan Bajo, the gateway to Komodo, Abed said “we have many destinations beyond that and the Komodo Dragon to show the world”.

Indeed, Freddy Barus, general manager of Graha Buana Tour and Travel, a buyer from Jakarta, had visited KTM 2017 to see how the local tour operators in NTT design itineraries beyond Komodo Island, especially MICE-related ones.

South American travel players are also taking a closer look at NTT. For the first time 14 tour operators from six countries in the region (Argentina, Brazil, Ecuador, Chile, Columbia and Venezuela) took part in the event, which was fully supported by the foreign affairs ministry.

Julang Pujianto director, America II, Ministry of Foreign Affairs, said of 40 million South American outbound travellers each year, only 47,000 visited Indonesia in 2016.

“This is less than one per cent – if we can reach five per cent we will have two million travellers coming to Indonesia each year,” said Julang.

He said the ministry is working with tour operators to get travellers from South America to Indonesia, such as through a fam trip.

With an interest in Indonesian destinations beyond Bali, Nur Arratia, director of Chilean Exotik Time Viajes, was hoping to start bringing Chilean travellers to NTT next year.

RedDoorz aims to expand across 16 Indonesian cities

By TTG Asia

November 16, 2017

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RedDoorz, a Singapore-based online budget hotel booking chain, says it will expand into nine more cities in Indonesia in the next 12 months.

The brand, which is present in seven Indonesian cities, eyes Aceh, Balikpapan, Batam, Lombok, Makassar, Manado, Medan, Palembang and Solo, representing an investment of more than USD$10 million, although it does not detail how the sum will be spent.

(From left) Rishabh Singhi and Amit Saberwal are optimistic as they expand its offerings to more cities in Indonesia

The brand currently operates in Bali, Bandung, Bogor, Jakarta, Semarang, Surabaya and Yogyakarta, with over 500 properties with 3,000 rooms for customers to choose from.

Amit Saberwal, founder & CEO, RedDoorz said at a local press briefing: “Our aim is to expand to 16 cities in Indonesia by 2018 targeting young adults who are tech-savvy. Ninety per cent of our customers book via the RedDoorz app where they can redeem the RedCash earned.”

He added that RedDoorz to-date has serviced over half a million customers in Indonesia, with a 65 per cent repeat rate. Its top three performing cities are Bandung, Jakarta and Yogyakarta.

“Our staff strength currently here is 120 people and we plan to double this team over the next 12 months and become profitable in Indonesia by third quarter of 2018,” said Saberwal.

A press release from RedDoorz cited a joint May 2016 study, “e-conomy SEA” by Google and Singapore’s Temasek Holdings that found that Indonesia ranked top as the world’s fastest-growing Internet market, spelling a huge potential for the online travel market. It also predicted that the regional market for online travel including hotels, airlines and rides will increase to close to US$90 billion by 2025, compared to US$21.6 billion in 2015, with Indonesia expected to generate a third of this growth.

Said Rishabh Singhi, COO of RedDoorz: “The Indonesian market has proved to be a great starting point for RedDoorz. We have worked closely with the mid-sized budget hotels, independent properties and guesthouses to innovate, collaborate and focus on creating unique experiences to attract guests from within Indonesia and actively reach out to the 250 million tech-savvy consumers. Through our platform, the hotels are able to carve out niches that will sustain sufficient occupancy,”

RedDoorz also operates in India and soon, the Philippines. It has continued investment from prior rounds from International Finance Corporation (private investment arm of World Bank Group), Asia Investment Fund of Sushquehanna International Group and Jungle Ventures. Earlier this year, RedDoorz raised an additional US$1million in venture debt from InnoVen Capital, a venture lending firm owned by Temasek Holdings and United Overseas Bank.

Aviation roundup: Tianjin Airlines, AirAsia, Fiji Airways and more

By TTG Asia

November 16, 2017

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Tianjin Airlines heads Down Under
Tianjin Airlines has opened a new route directly from Melbourne to Chongqing, its first transcontinental air route to Australia.

Served by an Airbus A330-300, flights will depart Chongqing at 10.10 on Tuesday, Thursday and Saturday, arriving in Melbourne the following day at 11.40. The return leg then leaves Melbourne on Wednesday, Friday and Sunday at 13.40 for arrival back in Chongqing at 21.40.

Tianjin Airlines is also set to launch a new route from Sydney to Tianjin via Zhengzhou on January 29, 2018.

AirAsia to add new routes, frequencies between Thailand and China
Starting February 2018, AirAsia will add two new routes to China – namely Don Muaeng-Chengdu and Phuket-Kunming – and increase frequences to existing Chinese cities in its network.

As well, on the following routes – Don Mueang-Xi’an, Don Mueang-Kunming and Don Mueang-Guangzhou – frequencies will be increased from once to twice daily.

Fiji Airways ups Nadi-S’pore frequency for peak season
Fiji Airways has added a third weekly service between Nadi and Singapore during peak seasons. The service will operate from Singapore on Thursday, starting April 5, 2018, operating April, May, July, August and December.

The airline currently operates twice-weekly flights departing from Singapore on Wednesday and Saturday, a service that commenced in 2016 as the quickest route between South-east Asia and the South Pacific.

Bangkok Airways deepens partnership with Qatar
Bangkok Airways launched a frequent flyer programme partnership with codeshare partner, Qatar Airways, on November 1.

This allows Bangkok Airways’s Flyer Bonus members to earn points when travelling on Qatar Airways flights. Similarly Qmiles members can earn and redeem their miles when travelling on Bangkok Airways flights and get the opportunity to redeem Qmiles across Bangkok Airways’ network.

Hard Rock Hotel Shenzhen appoints GM

By TTG Asia

November 15, 2017

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Glenn Peat has been appointed general manager of Hard Rock Hotel Shenzhen , the brand’s first hotel in mainland China.

Peat’s most recent post was hotel manager at Pudong Shangri-La.

The New Zealander has 20 years of hospitality experience in various roles with Hyatt Hotels & Resorts, and has worked in destinations including China, India, Australia and New Zealand.

Hopes high for demand on Jaipur-Kuala Lumpur route

By S Puvaneswary

November 15, 2017

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AirAsia X will commence four-times-weekly flights between Kuala Lumpur and Jaipur from February 5, 2018, a link welcomed by both inbound and outbound agents in Malaysia.

An inbound agent from Malaysia, Arokia Das, senior manager at Luxury Tours Malaysia, said: “This direct flight will give a more compelling reason for those staying in Jaipur to travel on holiday to Malaysia. It saves travel time and cost of having to travel to Delhi to take a flight to Kuala Lumpur.

Attractions like the Taj Mahal is closer to Jaipur than Delhi

“The new flights will also attract business events delegates from Jaipur. We will include Jaipur in our programme when we do sales calls in Delhi in January 2018.”

An outbound agent, Adam Kamal, manager at Aidil Travel & Tours, opined that the flights will create a new honeymoon destination for Malaysians as Jaipur is scenic and rich in history and culture. Some old palaces in Jaipur have also been converted into hotels, which will be of interest to Malaysians looking for unique experiences, he said.

He added: “Travelling from Jaipur to Agra to visit the Taj Mahal is also closer than travelling from Delhi. We plan to do sales calls to Jaipur next year and communicate directly with Jaipur agents, rather than go through wholesalers in Delhi.”

Start-up lures online travel reviewers with commissions

By TTG Asia

November 15, 2017

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A peer-to-peer travel booking platform just launched in Singapore is touting commissions for users making travel recommendations that result in bookings.

Trvl received US$3.5 million in funding with which it aims to become a global player with millions of users. It is founded by Jochem Wijnands, who had sold his previous company Prss to Apple for an undisclosed amount to become Apple News.

Peer-to-peer travel booking platform goes global

The start-up states that the website displays user reviews during the booking process, and pays those offering “peer-to-peer travel advice” a commission of up to 15 per cent on every booking.

“We’re living in the DIY age of travel bookings, and Trvl is rewarding (travellers) for acting like your own travel agent,” said Wijnands.

Trvl cites its own research showing that 91.7 per cent of respondents value personal recommendations highly or very highly. It is not stated if the same can be expected from online reviews tied to commissions.

Arthur Hoffman, COO of Trvl, said: “When deciding where in Asia to launch first, the choice was easy. Singapore is an affluent nation of passionate travellers.” Citing Euromonitor, Trvl shared that 89 per cent of Singaporeans are making travel bookings online (as of September 2017), whereas 10 years prior it was just 36 per cent.

Singapore airfares fall on key business routes: CWT/CAPA

By TTG Asia

November 15, 2017

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Airfares for key Singapore business routes – including Jakarta, Kuala Lumpur, Shanghai and New York – fell over five per cent the past year, according to CWT Solutions Group, the consulting division of Carlson Wagonlit Travel, and CAPA – Centre for Aviation.

“Singapore remains one of the most competitive aviation markets in the world and this, along with lower oil prices, has pushed airfares down over the past year,” said Richard Johnson, director, Asia Pacific, CWT Solutions Group. “The new terminal at Changi Airport will further alleviate capacity pressures, theoretically allowing for more competition and creating further downward pressure on fares.”

Competitive Singapore market has pushed airfares down

“That said, we do expect to see an increase in average ticket price over the next year as oil prices creep back up and airlines begin to rationalise capacity. Segmentation of fares is also becoming more prevalent, allowing airlines to grow their revenues through the ancillary portions of the ticket cost,” added Johnson.

The Business Travel Pulse report also revealed that passenger numbers for Singapore increased by 5.9 per cent in 2016, supported by growth across all regions as air travel to and from South Asia, Africa and the Americas saw double-digit growth.

The number of seats increased 3.9 per cent increase in 2016. Currently, more than 80 airlines operate at Changi Airport, connecting Singapore to some 380 cities across 90 countries and territories worldwide. Stiff competition in the market has kept airfares in check.

Looking at hotels, occupancy rates in Singapore are stable at 82.1 per cent in 2017, a slight decrease of 0.3 per cent versus 2016. Last Room Available rates are also expected to remain flat this year. Meanwhile, with new supply coming into the city, the average daily booked rates have decreased by S$3.70 (US$2.70) compared with 2016, indicating a favourable market for buyers.

New SE Asia adventure travel company opens for business

By TTG Asia

November 15, 2017

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A new adventure travel company has been launched in South-east Asia, brokering tailor-made, “human-powered” experiences in the region to travel agents and independent travel specialists.

Indigo White was founded by Holly Richter, who has 14 years of experience guiding and designing for Backroads, a luxury cycling, trekking and kayaking company, combined with 10 years living and working in Asia as both a product manager and director of adventure at Exo Travel.

Indigo White is a new start-up offering tailor made, experiential adventure travel in South-east Asia

Richter said that many adventure travel suppliers tend to focus “on one aspect of travel”, be it cycling, trekking, cultural, luxury, culinary. Indigo White wants to host a blend of these aspects for guests.

Richter added: “There are communities here that are opening their doors to limited numbers of guests, in the hopes of sharing their unique customs and culture and to encourage a form of livelihood for their community.”

Combined with consulting with colleagues and friends on trendy spots to visit locally, such “human-powered travel” allows for “accidental, natural interactions”, she said.

Experiences include rafting through virgin rainforest in northern Thailand, peddling on secluded paths through the otherwise crowded Angkor complex, or spending time with gracious Karen hosts attempting to reintroduce domesticated elephants into the wild.

Indigo White said it is already working closely with a number of partners around the world and crafting exclusive experiences for clients.

Its website is set to launch at https://www.indigowhite.travel later this year.

Royal Caribbean to roll out ‘unprecedented’ digital innovations

By TTG Asia

November 15, 2017

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Royal Caribbean Cruises (RCL) is on the cusp of what it says to be an unprecedented digital transformation, involving innovations such as an app expected to be rolled out to its 48-ship fleet, and VR and AR experiences.

“Our new app will make it simpler than ever to book and plan your cruise vacation from home or with a travel agent. Once on board, you can navigate our ships with interactive maps and guides, explore the ship with cool features like X-ray vision, or order drinks that can be delivered to you wherever you are on the ship,” said Jay Schneider, senior vice president, digital at RCL.

Enhancing the guest experience with the help of VR technology

To streamline boarding, manage check-ins automatically and improve wayfinding, the company is combining technologies including facial recognition, RFID tagging, GPS mapping and Bluetooth-enabled beacons. RCL is looking to use facial recognition technology to help accelerate ship boarding and check-in, for example.

The app, along with the next generation of the company’s WOW Bands, will also unlock guest staterooms and enable guests to control stateroom lighting and temperature.

An initial release of the cruise guest app is already available on selected ships in RCL’s fleet. “Our aim is to have the app enabled on about 15 per cent of our fleet by the end of this year, and more than double that by the end of 2018,” said Schneider.

Moreover, the company is planning to deploy VR and AR technology to transform ship spaces into virtual environments and enhance entertainment. Stateroom ceilings might be replaced by starry skies, walls of restaurant can transform to the sights and sounds of an outdoor café, for example.

Transforming ship spaces into virtual environments

Beyond the guest experience, RCL will also effect changes to make ships more energy-efficient, enhance ship management and put more connectivity into the hands of crew members.

An example of innovations that will help overall ship management and improve energy efficiency are forthcoming command centres that use AR to assist with navigation and manoeuvring.

In addition, in a safety-related application of the same technologies that will help servers deliver a drink to a guest anywhere on board, next generation bridge technology will allow officers to track guests on their way to muster stations to ensure all are accounted for and locate stragglers.

RCL is also innovating to reduce fuel consumption across its fleet, which not only lowers operating costs but also lightens stack emissions that are part of cruising’s environmental footprint.

Sri Lanka to levy booking tax on OTAs

International interest in Komodo rises

RedDoorz aims to expand across 16 Indonesian cities

Aviation roundup: Tianjin Airlines, AirAsia, Fiji Airways and more

Hard Rock Hotel Shenzhen appoints GM

Hopes high for demand on Jaipur-Kuala Lumpur route

Start-up lures online travel reviewers with commissions

Singapore airfares fall on key business routes: CWT/CAPA

New SE Asia adventure travel company opens for business

Royal Caribbean to roll out ‘unprecedented’ digital innovations

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