TTG Asia
Asia/Singapore Wednesday, 8th April 2026
Page 1561

Revised IATA rules bring some relief to Philippine agents

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Loosened requirements welcome, but agents say competition with airlines for ticket sales still imbalanced

IATA will no longer mandate all its 242 accredited Philippine agencies to use credit cards for BSP payment transactions, to the relief of agencies who believe that the rule is an attempt by an airline group conspiring to run them out of business.

Of the IATA accredited agencies, only 46 are using credit card to transact while 196 don’t, a statistic revealed during a meeting in Manila among representatives of the Philippine Travel Agencies Association (PTAA), Philippines IATA and IATA Singapore.

Loosened requirements welcome, but agents say competition with airlines for ticket sales still imbalanced

Hence, “only the 46 IATA-accredited agencies already using credit card for BSP payment transactions will have to be PCI DSS (Payment Card Industry Data Security Standard) compliant” by March 2018, PTAA notified its members in a circular dated October 5. PCI DSS is a set of information security standards to prevent credit card fraud. Agencies failing to comply risk losing their IATA accreditation.

But IATA appears to have become more lenient as it “withdrew the sanction of two irregularities given for noncompliance with PCI DSS”. Instead, it leaves it up to individual airlines whether to accept credit card transactions from non-complying agencies, according to the PTAA Circular.

The circular also noted that “there will be different treatment for non-payment and short payment” of remittances which “has no consequence anymore on (agencies’) ability to ticket” unlike in the current IATA ruling.

Before the change, travel agents complained it would be cumbersome to change to credit card payment due to the many documentation required for accreditation. Also, many customers prefer cash over credit card payment, which comes with a three to five per cent charge. There are also instances when customers switched to agencies accepting cash payment to avoid the credit card fee.

Adkins Travel general manager Francisco Lim lamented that airlines are now in a competing relationship with agencies for ticket sales, and the latter has come out short-changed, citing IATA’s last year implementation of the shortened BSP remittance period to one week from 15 days.

He explained that cashflow has been a problem for agents, especially those handling corporate accounts, because they have to make weekly remittances to BSP but payment from clients take up to 45 days to come in.
To stay afloat, Lim said agencies had to take out loans from banks or from individuals with interest rates.

A travel consultant said the weekly BSP remittance contributed to the demise of some travel agencies.

Moreover, the president of a travel agency said she deliberately did not accredit with IATA because of the costly bond requirement and the weekly BSP remittance, claiming that it’s better for her agency to buy international tickets from IATA-accredited agencies.

MakeMyTrip courts budget travellers

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Deep: budget travel segment is huge in India

Having set its sights on budget travellers from India, MakeMyTrip is expanding its product line – currently comprising four- and five-star hotel accommodation in India and elsewhere – to include budget accommodation.

Chairman and group CEO of MakeMyTrip, Deep Kalra, said at the recent ITB Asia that his company is targeting Indians looking for rooms priced from US$25 and above when travelling within India and overseas.

Deep: budget travel segment is huge in India

Deep said: “The budget travel segment (in India) is huge. Roughly 200,000 Indians book online monthly through their mobile phones.”

To ensure only quality budget accommodation is offered, MakeMyTrip is enforcing an accreditation system.

“In India, we are accrediting budget accommodation in terms of amenity, hygiene and safety considerations, among others. By accrediting these independent properties, we give assurances to our buyers.

“Outside of India, we’re looking at 32 cities that are popular with Indian travellers and they include Kuala Lumpur, Singapore, Hong Kong, New York and London. We use our partners overseas to help us with the accreditation, covering homestays and secondary homes.”

Ambitious aviation think tank set for launch

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Emirates and a consortium of industry partners will collaborate on the world’s first sector-wide ideation lab of its kind, Experimental Lab (X-Lab) at Area 2071, in hopes of co-creating “the next era of human transportation”.

Area 2071 is an innovation initiative aiming to nurture efforts to “design the future” that was launched by UAE prime minister Sheikh Mohammed bin Rashid Al Maktoum to become the experimental nucleus of the UAE Centennial Plan 2071.

Area 2071’s goal is to ask the world’s biggest questions and create solutions that shift paradigms, reshape markets, and improve the lives of people around the world

The Aviation X-Lab will bring together airlines, manufacturers, ground logistics, regulators, engineers, academics, and startups in order to envision a new transportation paradigm, and seek solutions that individual or piecemeal efforts would otherwise be unable to achieve.

Starting this year, the Aviation X-Lab at Area 2071 will host industry summits to envision challenges. It will then solicit applications from internal teams, independent engineering teams, academics, and startups, to help address these challenges by spending a full year working with senior industry executives and regulators to ideate new technologies and business theories, run experiments, and develop prototypes.

Finalist teams from around the world will meet in Dubai each April for an annual event where they will pitch their concepts. Winners of the pitch event will relocate to Dubai the following month along with their corporate and government counterparts to begin a rigorous curriculum co-created by academic and innovation institutions.

Applications for the inaugural Aviation X-Lab will open in November with the first pitches to be presented to the public in April of 2018.

For more information register at www.area2071.ae.

Pop culture pilgrimage, mates escape on the up: Booking.com

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Booking.com has released eight travel trend predictions for 2018, among which are an increase in pop culture-inspired travel and friends-based getaways.

According to booking.com, television shows, films, sport and social media in particular look set to have an increasingly significant sway over booking decisions.

The survey revealed more travellers are open to travelling with friends

The television programme locations travellers most want to visit in 2018 are Croatia, Spain and Iceland inspired by Game of Thrones (29 per cent), London as seen in Sherlock and the Crown (21 per cent and 13 per cent), New York and Manhattan from Billions (13 per cent) and Los Angeles viewed in Entourage (10 per cent).

On-screen locations from television, film or music videos will win over 36 per cent of travellers in the coming year. Twenty-two per cent of travellers say they will be tempted to travel for a major sporting event, with 43 per cent of those considering a summer of football in Russia. Reading blogs or watching YouTuber recommendations spark ideas for 39 per cent of travellers.

Meanwhile, in terms of choice of travel companions, the segment showing the biggest increase when compared to 2017 was travelling with a group of friends, increasing from 21 to 25 per cent.

Friend-based getaways also have financial advantages, Booking.com observed, as 42 per cent said that joint holidays with friends will allow them to stay in accommodation they wouldn’t be able to afford on their own.

Booking.com further pointed out that 2018 will see travellers looking to be even more economically intuitive. Nearly half (47 per cent) will take currency exchange rates into consideration when planning their travels for the year, and almost the same amount (48 per cent) will think about the economic climate of a destination before making the decision to travel.

Boding well for the retail industry, 30 per cent of travellers also plan to make more purchases from airport duty free shops in 2018 and 26 per cent will even go on holiday specifically to buy goods such as fashion items because they are cheaper than in their home country.

For more of Booking.com’s 2018 predictions, please click here.

Switzerland offers expert certs, fam trips for agents

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Agents can now register for online classes and be certified by Switzerland Tourism as Switzerland Travel Experts.

Existing Switzerland Specialists, i.e. those certified before April 2017, are required to sign up on the new platform to upgrade their status to Expert.

Switzerland Tourism’s new online platform will help agents deepen their touristic knowledge about the country

The Switzerland Travel Academy offers a programme comprising core and specialisation modules (MICE, family, etc) that provide agents with information about Swiss destinations and travel products.

Agents will receive immediate certification once they’ve passed a final exam of a module.The certificate is valid until December of the following year, after which, the agent will be invited to do yearly refresher modules to maintain their expert status for another year.

Agents will be able to use the Travel Expert logo in marketing collaterals, websites, e-mail signatures, etc.

All new Travel Experts in 2017 also stand a chance to win a fam trip to Switzerland (December 6-12) this year. Flights will depart Singapore or Bangkok to Zürich with Swiss International Air Lines (Economy), and include five nights in Switzerland, a Class Swiss Travel Pass an a Certification Ceremony in Switzerland.

A maximum of 18 will get to travel to Switzerland (maximum one per company), picked from those who pass the following exams until November 17. Exams include the four core modules; the News module; the Gold Partner South East Asia module (under “Specialisation modules on Swiss Regions & Destinations”).

Winners will be informed on November 20 by e-mail. Selected agents are required to confirm their attendance until November 21 and provide a passport scan in order for bookings to be made.

World’s longest scheduled US flight takes off

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United Airlines yesterday launched the world’s longest scheduled nonstop flight to or from the US, and first direct Singapore-Los Angeles flight.

Celebrating the launch are (L-R) United’s Marcel Fuchs (seventh from left), US Embassy Singapore’s Stephanie Syptak-Ramnath and Changi Airport Group’s Lee Seow Hiang

Flight UA 38 will depart Singapore’s Changi Airport at 11.00 daily, arriving at Los Angeles International Airport at 11.15 the same day. The return flight, UA 37,will depart Los Angeles at 21.25, arriving in Singapore at 06.20 two days later.

Flying time will be approximately 15 hours, 15 minutes eastbound, and 17 hours, 55 minutes westbound. According to United Airlines, customers on the new flight will be able to save up to nearly two hours journey time each way, compared with the current United schedule via San Francisco.

First person: To feed or not to feed

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Whale shark watching in Oslob, Cebu is disturbing, the exploitation of these gentle giants abhorrent. But that’s getting ahead of how this profitable attraction, and all its flagrant violations of ethical, responsible and sustainable tourism, remains untouchable.

In August, a visiting American friend and I drove two hours from Cebu City to Oslob to see whale sharks, locally known as butandings. The daily watch and interaction begins at 06.00 in the morning, ending before noon. When we reached the centre at 06.30, it was noisy and teeming with local and foreign tourists. I counted more than 30 boats already in the waters.

There is a short orientation for tourists, only in English. How would non-English speakers cope? Held every 10 to 15 minutes, there are at least 50 tourists per orientation. The lady doing this has memorised her spiel, including the do’s and don’t’s like no touching of the butandings and no use of sunblock lotion. Questions are not encouraged and there’s no video support.

It seems easy to break the rules. For instance, have they bothered to check how many applied sunblock lotion that day? What did they do to penalise the violators?

For a 30-minute thrill, foreign tourists pay US$21 to snorkel while locals pay US$11 to snorkel and US$6 to watch the butandings from the boat.

It’s a lot of money for the 200 or so fishermen. I was told that they earn up to US$530 a month, a tidy sum in that part of the country compared to what they would have earned from fishing – which they have stopped altogether.

I stayed on the boat while my friend opted to snorkel. The boats are about 15 meters away from the shore, and the water is about 4.5m deep. Since a butanding can be about 4.5m in width, it cannot be in a comfortable horizontal position in that water level. The boatman told me they also have to make the butanding “stand” so tourists can see it.

The feeder on the boat has krill that stunk and attracted flies. This is the controversial daily feeding that’s been going on for years. Whale sharks equate the boat and people with food so they come unafraid.

As such, many tourists also choose come here because of guaranteed sighting unlike in Donsol, Sorsogon which has strict rules protecting these butandings.

The boatman said that each butanding needs 30kg of krill daily and there can be four to five in a day. There isn’t enough krill in Oslob so they buy from Dumaguete, Negros Oriental and freeze them.

I know from a previous whale shark experience in Donsol that butandings feed on plankton. These migratory creatures head to Donsol when plankton is in season then go elsewhere during off season. In contrast, butandings overstay in Oslob due to the daily feeding. I wondered whether krill was nutritious enough. Plus, how does the daily feeding affect the marine eco-system in Oslob, and the life and habits of these gentle giants?

My friend declared that snorkelling with butandings was the best highlight of her Cebu trip. But this was followed by a long discussion. For how long can the fishermen use poverty as an excuse to exploit the whale sharks?

My friend said the fishermen need to be informed and educated, and there are other ways of making this a better tourist attraction without harming the whale sharks.

For example, there’s no coffee shop nor restaurant nearby. It would be a good idea to open a restaurant, and perhaps a B&B. They can also improve the layout by moving the carpark from the beach front, add a souvenir shop, and offer a tour package that includes the nearby sandbar, hot springs, and waterfalls.

Upsetting as it is that these fishermen are exploiting the whale sharks, to me the bigger questions are what are the Department of Tourism, travel trade associations, local government doing to and start protecting the whale sharks, while educating these fishermen. Do they even care at all?

Tours sector hots up in Asia

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Gnock Fah: going mobile-first

The online tours and activities segment hots up in Asia with Hong Kong’s Klook completing near US$60 million in Series C funding, the largest ever for an in-destination service booking platform, just months after Singapore’s BeMyGuest closed a Series A in July that gave it a total equity funding to-date of US$8.5 million.

Whether B2C as Klook mainly is, or B2B which BeMyGuest has pivoted to, tours and activities in Asia is in for a shake-up as investors begin to hanker after a market that is being buoyed by the rise of Asian FITs and their adoption of mobile booking.

Gnock Fah: going mobile-first

Klook’s president and co-founder Eric Gnock Fah told TTG Asia: “For the most part, B2B and B2C will usually coexist and, in some cases, go hand in hand. Looking at market players, we see that B2C currently presents a bigger opportunity.”

Klook has 30,000 tours and activities on its platform. Fifty per cent of users book upon arrival, 70 per cent via mobile. Gnock Fah wants to cement its mobile-first and instant confirmation solutions, and create personalised experiences with AI.

The company has launched a visual search function, allowing travellers to use pictures taken during their travels to gain activity suggestions nearby. It will soon enable voice search function, as well as other new functions by mid-2018.

BeMyGuest on the other hand believes B2B is the space to be in. “Asia has overtaken Europe in tours and activities, said to be worth around US$33.3 billion now, and only 11 per cent is booked online,” said Graham Hills, chief commercial officer, a new position at BeMyGuest.

Hills said the business is still “very much in its infancy”, fragmented with small or mom-and-pop players in the region with a low adoption of technology.

Added Kei Shibata, CEO of Venture Republic Global, who is now on the board of BeMyGuest: “Aggregating them as quickly as possible is important and that’s the strength BeMyGuest has as (first mover).”

Clement Wong, CEO of BeMyGuest, said Klook’s Series C funding, led by Goldman Sachs and existing investors Sequoia Capital and Matrix Partners, is “a positive reaffirmation of the rapid growth that the tours and activities sector is experiencing in Asia”.

“Asia has overtaken Europe this year in terms of market size for tours and activities, and being the hottest sector in travel, we expect this investment trend to continue,” said Wong.

Meanwhile, Sam Turner who leads wholesale and sourcing for Hotelbeds Group, said the growth in tours and activities has been twice faster than in bedbanks that the group has created a separate division for it.

“Asia is currently the smallest proportion but we’re seeing an 80 per cent jump,” said Turner.

“I expect more consolidation in the space. It has created a lot of excitement as historically the distribution has been very offline. Consolidation is inevitable.”

Even hotels are now getting into the act, by being resellers of tours. GTA, now part of Hotelbeds Group, has tied up with Ireland’s Bokun, using its content and technology to allow hotels to resell tours and activities, then everyone will earn commissions.

Stefano Zeni, GTA head of commercial management and destination services, said this would be launched in the Middle East and Europe, and he is here at ITB Asia to propose to hotel partners in Asia to resell tours & activities to guests.

  • reporting live from ITB Asia 2017

TAT shows off the many facets of Thailand

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The Tourism Authority of Thailand (TAT) has soft-launched at ITB Asia 2017 a new marketing concept which focuses on new source markets, new traveller segments and new ways to enjoy the kingdom.

Named The Million Shades of Thailand, the new concept is set for an official launch this November at World Travel Market London and again in January 2018 at ASEAN Tourism Forum when it heads to Chiang Mai.

In his soft launch presentation on October 25, Tanes Petsuwan, deputy governor for Marketing Communications of TAT, explained the concept’s three areas of focus, “the 3Ns, which are New Destinations, New Segmentation and New Product”.

New Destinations, which refers to target source markets TAT is keen on courting, include Canada, Latin America and China’s secondary cities.
Tanes said: “It was not feasible in the past to promote Thailand (to travellers in) Latin America because (the journey) was too long for them and air connectivity was lacking.

“These days, airlines such as the Middle Eastern carriers offer good connections and use new aircraft that can fly a longer distance, and are equipped with (extensive) onboard entertainment that make for a more enjoyable journey.”

As for New Segment, TAT will reach out to millennial travellers who are lured by digital social media and customer-focused activities.

And finally, for New Product, TAT is spotlighting Gastronomy, Nature and Beach, Arts and Craft, Culture, and Way of Life.

In an interview with TTG Asia, Santi Chudintra, deputy governor for TAT’s international marketing (Asia and South Pacific), said he hopes that the new marketing concept will “invite the world to travel to Thailand, and open their minds and perspectives (so that) they will find new things (and) interesting stories.”

Santi explained that there are different ways to enjoy Thailand’s many different destinations.

Drawing a food analogy, he said: “Take pad thai for instance. You’ll find it at a street vendor and at a high-end restaurant. You’ll find it wrapped in a leaf or in an omelette.”

He pointed out that local food, handicraft, souvenirs and other products come in different variations across the country, festivals are celebrated in unique ways in different locations, and the beach experience is different everywhere.

The Million Shades of Thailand is expected to help Thailand maintain its competitive edge in the travel industry. International arrivals to Thailand in 2016 totalled 32.6 million and the number is expected to rise to 34.5 million.

Meanwhile, tourism revenue is expected to hit US$50 billion, up from 2016’s US$42 billion.

  • reporting from ITB Asia 2017

[Sponsored Post] Leading Companies Better At Collaborating To Reach Their Simplification Goals

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With new technology proliferating and business traveller needs and expectations evolving, travel managers are struggling to manage complex, multi-layered travel programmes. According to new research from the Association of Corporate Travel Executives (ACTE), underwritten by HRS, travel managers recognize this challenge and understand that simplifying their programmes could yield benefits—but simplification initiatives face competing priorities.

The new study, Simplifying Managed Travel, finds that traveller safety trumps the agenda: Most buyers (94 per cent) say duty of care is a key priority; 82 per cent say it is their top priority. With 72 per cent rating it is a key priority for their managed travel program, simplification follows behind cost reduction (88 per cent), data security (84 per cent) and improving traveller satisfaction (75 per cent).

However, travel managers recognize that simplification initiatives can support their other strategic priorities. For example, 47 per cent of travel managers say that simplification will improve duty of care, and 39 per cent believe it will reduce the overall cost of their travel policy.

Travel Managers Struggle to Translate Priority into Action

Despite recognizing the importance of simplification, travel managers see a gap between intention and execution. Reflecting the strategic importance placed on traveller safety, duty of care is the travel buyer’s top priority for simplification: A majority (83 per cent) say duty of care requires immediate action (62 per cent).  Data security appears second on buyers’ list of simplification targets.

Disconnects between buyers’ simplification priorities and their actual behaviour, however, indicate barriers to pursuing strategic goals. The execution gaps for duty of care and data security are large relative to other priorities, with more than one-in-five buyers saying they are not currently translating their traveller safety (23 per cent) and data security (24 per cent) concerns into action.

Suppliers and Internal Stakeholders Must Become Partners in Simplification

Today’s complex travel programmes encompass multiple partners and stakeholders—internally and externally. To be effective, simplification initiatives often require support from these parties. While nearly one-in-five buyers do not get support from peers in other departments, most report that internal stakeholders are on board with simplification initiatives:

  • Procurement is most often regarded as a partner in simplification (57 per cent);
  • Internal risk/security and communications staff follow (40 per cent);
  • IT support (36 per cent) and human resources (28 per cent) lag other departments.

Third parties can supply relevant tools and expertise, providing support to travel buyers’ simplification initiatives. Buyers welcome this assistance: More than half of buyers not currently receiving help from travel providers say they want it. Internally and externally, the data suggests that the travel buyers who say simplification is a top strategic priority are better at collaborating to reach their simplification goals.

“The value travel management provides to a company is increasingly measured in optimised processes and cross-department collaboration,” explained HRS CEO Tobias Ragge. “The study shows this close collaboration is vital and that leading companies build on their internal stakeholder network, but they also rely on the data, advice and support of external partners to reach their strategic goals.”

Driving Effective Simplification

Simplification is a key route for travel managers to achieve their business objectives. However, facing the hurdles of limited resources and differing levels of support from internal and external stakeholders, buyers must ramp up communication with suppliers, other departments within the organization and with the travellers themselves.

The study can be downloaded https://corporate.hrs.com/int/simplify.