Emerging markets and technology uptake will drive the global business travel sector growth by 3.7 per cent annually over the next decade from its current US$1.2 trillion, as revealed in a Travelport and WTTC report released at the WTTC Global Summit in Bangkok.

The business travel market in the Asia-Pacific will overtake Americas with a growth rate of 6.2 per cent each year to 2027. China is expected to the way with 9.5 per cent annual growth, followed by Myanmar (8.7 per cent), Hong Kong (eight per cent), Cambodia (7.4 per cent) and India (7.2 per cent).

Currently, the largest business travel markets are the US, China, the UK, Germany and Japan.

According to the report, business travel is often the driving force in the overall growth in contribution of travel and tourism to national GDP as companies continue to find ways to develop new markets and maximise their revenues.

The report also incorporates White Paper proposals underlining the need for investment in technology and infrastructure, the removal of visa burdens, tackling cyber security and personalising services for travellers.

As well, technology is expected to be key in driving the growth in the business travel sector, where a Travelport research highlighted that business travellers want mobile phone alerts and information about disruptions, flight updates and upgrades. In addition, the report reveals that the industry needs to focus on serving digitally-connected millennials in order to engage customers more effectively.

CEO of Travelport, Gordon Wilson, commented: “Every day we see business travel growing at a significant rate in many emerging markets with technology playing an increasingly important role in easing the way for those on trips for their work. As an industry we need to continue to invest in the best technologies and infrastructure while governments need to be more business-friendly by removing burdensome visa requirements.”

Stabilising fuel prices and a new generation of fuel-efficient aircraft models may bring some relief to airline operators in the current aviation landscape, but AirAsia Group CEO Tony Fernandes believes that legacy carriers will encounter greater challenges in their business models as they seek to cut costs in the face of fierce low-cost competition.

Speaking at the recent WTTC Global Summit in Bangkok, Fernandes shared his prediction: “In time you’re going to have two different airline models – LCCs will do the economic class and full-service carriers doing the premium sectors.”

Fernandes speaking during WTTC’s 17^th Global Summit in Bangkok 

The presence of four classes – first, business, premium economy and economy – among some airlines is deemed “very inefficient” in Fernandes’ eyes. “One Singapore Airlines seat will be equal to 40 of mine,” he quipped. “We are more fuel-efficient and eco-friendly than any airline out there because we carry more passengers per foot.”

What about hybrid carriers, the business model that straddles between full-service and no-frills carriers, asked TTG Asia. The outspoken airline chief thinks it’s a “disaster” for legacy airlines to pursue the hybrid business model. “Hybrid carriers is where airlines kind of messed up, as they (full-service carriers) compete with LCCs. You choose either one (business model),” he said.

Fernandes also expects the arrival of a new generation of fuel-efficent aircraft the likes of Boeing 787 Dreamliner and Airbus A330neo will help LCCs to optimise their routes and network performance and push the envelop of more longhaul, low-cost models.

Commenting on Norwegian’s plans to launch budget flights on the London Gatwick-Singapore route, Fernandes said: “We are jealous of Norwegian; they have the right aircraft (Boeing 787-9 Dreamliner)… We want to go to Europe, but the Ukraine incident put an extra hour on our aircraft.”

He also doesn’t rule out the possibility of resuming services to Europe or flying farther afield to the west coast of North America on AirAsia X. The longhaul budget carrier last flew to Paris (Orly) and London (Gatwick) in 2012, and recently announced the launch of services to Honululu in 2018.

However, London may not be on AirAsia X’s radar when it returns to Europe. “There are many interesting points in Europe, so it may not be a hub airport like London. It may be Manchester or Dublin,” Fernandes said.

When asked where aviation is heading, Fernandes sees tremendous opportunities for airlines to keep costs down especially in their use of data. “Data excites me tremendously. The data explosion will decrease costs and increase revenue… I hope governments will use data to improve security and make travelling easier.”

Tauzia Hotel Management last week opened POP! Hotel Banjarmasin, in the capital of South Kalimantan, marking the brand’s first property on the Indonesian island.

Banjamin Castel, director of operations at POP! Hotels, believes that Banjarmasin, with its unique proposition from competitors, offers an “interesting” market for the budget hotel brand.

(From left) POP! Hotels’ Reza Fordaus and Benjamin Castel; Tiga Putra Rukun Makmur’s William Ardianto; andv Yello & POP Hotels’ Narantara Sitepu

Investment of the 120-key hotel is US$350,000 per room, excluding land, and return on investment is expected within five to seven years.

Narantara Sitepu, brand manager Yello & POP! Hotels of TAUZIA Hotel Management, said: “Smart travellers, the target market of POP! Hotels, are dynamic, young travellers who know what they want and smart in managing their budget.”

As such, the Pitstop lobby, with its blend of a café lounge and convenient store open round the clock, is conceived not just for hotel guests only but also as an interactive social hub for young business professionals and millennials.

William Ardianto, director of owning company Tiga Putra Rukun Makmur, said: “(A 24-hour café) concept like Pitstop is new to Banjarmasin. To attract travellers and the locals, we will introduce local cuisines, such as soto banjar and traditional cakes at the outlet.”

POP! Hotel Banjarmasin is the brand’s 21st property in Indonesia and 17 more properties are expected to open until 2022.

Garuda Indonesia has yesterday moved its international operations to Terminal 3 of Jakarta Soekarno-Hatta International Airport.

The departure of Kuala Lumpur-bound flight GA820 and the arrival of GA823 from Singapore marked the start of Garuda’s operations from the new terminal.

Terminal 3 of Jakarta Soekarno-Hatta International Airport; photo credit: Indonesia’s Ministry of Tourism

The Indonesian national carrier has moved its domestic operations to Terminal 3 in August 2016, becoming the first airline to operate from Terminal 3. Other Skyteam alliance members will follow after Lebaran, which falls in June this year.

Pahala Mansury, president and CEO of Garuda, said: “Garuda is optimistic that Terminal 3 International will not only be a move to improve infrastructure and transportation service with global competitive advantage but also a milestone for the development of tourism (in Indonesia).”

Garuda will in stages operate 26 check-in counters and increase its executive lounge capacity to 350 seats for business class and 56 seats for first class passengers, which is twice the current capacity at Terminal 2.

The airline will operate 36 self check-in outlets and 10 boarding gates by July.

TTG Asia will be taking a break on Monday, May 1, as it is Labour Day in Singapore. News will resume on Tuesday, May 2.

Asia DMC has set up representation in the UK, headed by Gary Toshak as director of sales and marketing UK, to offer its post-rebrand programme of personalised luxury itineraries into South-east Asia.

Toshak

Toshak has over 12 years of experience in developing bespoke, high-end tour itineraries throughout Asia, specialising in China and South-east Asia. While with former companies China Links and Discover China, he led expeditions to remote areas in the region.

“Classic touring in Asia has traditionally been very successfully sold in the UK in clear and ordered components. While we will still offer traditional touring modules, we will introduce a dynamic, personalised range of content featured in the DMC’s 2017 Spirit of Travel collection for UK tour operators that will offer a ‘Rolls Royce’ approach to South-east Asia travel,” Toshak said.

Toshak is seen as an important addition as the company “seeks differentiation in a sophisticated travel market”, according to group managing director Linh Le, who was appointed after the new Asia DMC identity got off the ground last year.