Many travel agents in Indonesia remain unwavering in their beliefs that there is still room for growth in the offline space, even as the country’s tourism chief warns of competition from OTAs and emerging players like Airbnb and Uber in an increasingly connected digital landscape.

“I would like to warn the travel companies in Indonesia that if you all do not transform your business to the digital platform, I assure you that one day your customers will leave you,” said Arief Yahya, Indonesia’s tourism minister, at the opening of ASTINDO Travel Fair in Jakarta last weekend.

“You have little choice. Even (some) big international travel companies have gone bankrupt because they were too late in anticipating the customer behaviour,” he cautioned.

For travel companies, especially the smaller ones, that lack resources to digitalise their businesses, Arief said they have available to them the Indonesia Travel Exchange, a free online platform belonging to the ministry, while ASTINDO members can utilise the ASTINDO Hub platform.

Despite the growing trend of customers booking online, Rudiana, director of sales of WITA Tour and ASTINDO board member, thinks it’s still a long way to go before Indonesians will “embrace the digital world totally”.

“Many Indonesians, including the haves and digital savvy, still like to rely on travel consultants for their trips. They find it troublesome to search and compare products online themselves,” he added. “What we need to do in Indonesia is to become digilog, maintaining our analogue system and embracing the digital system at the same time.”

Royanto Handaya, CEO of Panorama Tours Indonesia, said: “I believe that the number of outbound travellers who book through (offline) travel companies will continue to grow, as travellers, apart from the affordable prices, seek seamless experiences.”

While OTAs provide instant confirmation, travellers still need consultants to change bookings, hotels or even their itineraries during a trip, Royanto added.

Furthermore, travellers flocking to travel fairs and queueing to buy holiday packages is a sign that offline travel consultants are still in demand, according to Royanto.

AccorHotels and Edmond de Rothschild Investment Partners are now at the negotiation table to acquire Potel & Chabot Group, a French company specialising in high-end corporate and major events.

The proposed transaction will see Edmond de Rothschild and AccorHotels respectively holding 51 per cent and 40 per cent of the share capital.

This transaction will also provide Potel & Chabot to leverage AccorHotels to jointly develop new F&B offers for MICE and local guests through personalised concierge services.

Founded in 1820, Potel & Chabot generates revenues in excess of 100 million euros (US$107.5 million) and counts key events such as the French Open at Roland Garros, the Biennale des Antiquaires, 24 Hours of Le Mans and the Saut Hermès among its portfolio.

The group also has the exclusive management of venues in Paris – Pavillon Vendôme, Pavillon Seine, Pavillon Kléber, Pavillon Gabriel, Hôtel d’Evreux, Pavillon Cambon Capucines and Pavillon Dauphine.

Chinese real estate developer Shimao Property Holdings and Starwood Capital Group will establish a new hotel joint venture based in China.

The joint venture, which will be owned 51 per cent by Shimao and 49 per cent by Starwood Capital Group, plans to focus on developing, operating and branding assets via management contracts and leasing agreements.

Starwood Capital Group will also provide financial and operational support for Shimao Hotels and Resorts’ future hotel expansion plans in China and other key Asia-Pacific regions, particularly markets that have witnessed unprecedented levels of Chinese arrivals.

By catering to the value-conscious yet increasingly discerning Chinese traveller seeking a differentiated lodging experience, the partnership’s ultimate goal is to develop one China’s most recognisable hotel companies.

“The close cooperation with Starwood Capital Group will help our growing hospitality platform and exciting new brands take advantage of the tremendous opportunities that exist in China, allowing the group to fulfill its potential,” said Tyrone Tang, general manager of Shimao Hotels and Resorts.

“The joint venture will focus on maximising the benefits that can be derived from the intangible assets, consolidating the group’s sustainable commercial development while ensuring profitability, and providing the most effective support for partners.”

Starwood Capital has invested in approximately 2,900 hotels since its inception. The firm created and built Starwood Hotels & Resorts into the largest hotel company in the world before exiting its stake in the company.

Thai hospitality company Dusit International has come together with Colours International, operator of the E-Hotel chain in Japan, to launch a new joint venture Dusit Colours.

Dusit Colours aims to develop and operate Dusit-branded hotels and hotel management related education in Japan. As part of the agreement, both companies will work closely to develop a distinctive hotel franchise model formed by the best of Thai and Japanese hospitality cultures and traditions.

The joint venture company will explore opportunities in several major Japanese cities, including Kyoto, as candidate sites for hotels under Dusit International’s five-star Dusit Thani brand, and other Dusit hotel brands, including dusitD2, DusitPrincess, and Dusit Devarana.

Suphajee Suthumpun, group CEO of Dusit International and director of Dusit Colours, said: “In the next three years we aim to broaden our portfolio to have more than 50 per cent of our operations outside Thailand, and entering key markets such as Japan will be essential to reaching this goal.”

Dusit International owns 49 per cent of the company, while Colours International owns 51 per cent.

American Airlines has announced a US$200 million equity investment in China Southern Airlines, representing 2.76 per cent stake, which will see the two begin codeshare and interline agreements later this year.

“China Southern’s extensive network within China touches developing and thriving markets that only a Chinese carrier can reach,” said Robert Isom, president of American Airlines.

China Southern Airlines

“We are two of the biggest carriers in the world, and our networks are highly complementary, with the potential to offer China Southern and American customers an unmatched range of destinations in two critical markets for business and leisure travellers.”

China Southern’s chairman, Wang Chang Shun, also expects the relationship “to better connect two of the world’s largest aviation markets and leading economies”.

China Southern’s primary hub is located in Guangzhou with the majority of its transpacific flights positioned there, while American flies to Beijing and Shanghai from its hubs in Chicago, Dallas Fort Worth and Los Angeles.

With the codeshare, American customers will be able to access nearly 40 destinations beyond Beijing and more than 30 destinations beyond Shanghai. China Southern customers will gain access to almost 80 destinations beyond Los Angeles, San Francisco and New York’s Kennedy Airport in North and South America.

American currently offers daily service from Dallas Fort Worth to Hong Kong, Beijing and Shanghai; Los Angeles to Hong Kong and Shanghai; and Chicago to Beijing and Shanghai. All flights to Beijing and Shanghai are operated on its Boeing 787-8 Dreamliner, while its Hong Kong flights are operated using its flagship Boeing 777-300.

Hilton has signed a management agreement with TPD Company, a subsidiary of Laos’ TK Group, to manage the 160-room DoubleTree by Hilton Vientiane scheduled to open in early 2020.

DoubleTree by Hilton Vientiane will mark the group’s entry into Laos and the brand’s debut in the capital city.

Located on the intersection of Rue Setthathilath and Rue Manthatourath, the property is close to That Dam, an iconic stupa in the city centre, and attractions such as the Presidential Palace, Sisaket Temple and Lao National Museum. Local markets, such as the Talat Sao Morning Market and Riverside Night Market, are also easily accessible from the hotel.

Shangri-La Hotels and Resorts and Taj Hotels Palaces Resorts Safaris have integrated their respective Golden Circle and InnerCircle loyalty programmes with the Warmer Welcomes partnership, following their strategic alliance that was announced last November.

Members of both loyalty programmes will receive reciprocal benefits and the opportunity to earn their preferred loyalty currency for stays at any of the 200 Shangri-La or Taj property located in 131 destinations across the globe.

Pudong Shangri-La East Shanghai

To celebrate its debut, Shangri-La is rewarding Taj InnerCircle members staying at Shangri-La with triple Taj Inner Circle Points (TIC Points). Similarly, Shangri-La Golden Circle members staying at a Taj property will receive triple Golden Circle Award Points (GC Award Points). This is valid from now through June 30, 2017.

Shangri-La Golden Circle and Taj InnerCircle members who wish to take advantage of the inaugural offer must first link their account at the respective programme’s website for automatic status matching. Shangri-La’s Diamond members are aligned with Taj’s Platinum membership level, while Golden Circle Jade members are awarded Gold status of the Taj InnerCircle programme.

Tourism players in Jeju are struggling to attract visitors after the Chinese government banned travel agents from selling package tours to South Korea.

The resort island usually attracts three million Chinese tourists a year, but arrivals have plummeted more than 44 per cent in the three weeks since the ban was imposed.

Tourists at Seongsan Ilchulbong or Sun Rise Peak, Jeju

Brian Kim, assistant manager of the Jeju Tourism Organisation (JTO), observed: “Almost all flights and cruise ship port calls have been cancelled, which is a very serious problem for the tourist industry here.”

In response, the JTO is stepping up marketing efforts elsewhere in Asia, including Singapore, Malaysia, Thailand, Vietnam and the Philippines, Kim said, but the impacts on businesses are expected to be severe. “We see the problem continuing for at least one year,” Kim said.

As well, the provincial government is attempting to lend a hand to the tourism sector through a price slashing campaign. Access to 28 tourist sites across the island will be complimentary throughout April, while hotels, attractions, souvenir shops, restaurants and golf courses are cutting prices by up to 65 per cent.

It also plans to attract South Koreans who have cancelled their trips to China amid the political tensions.

Meanwhile, Hank Kim, owner and CEO of Jeju-based Core Travel, said: “I feared a problem like this would happen sooner or later, so we began to diversify our client base a while ago.”

“We are fortunate to have a lot of clients from the rest of Asia but a lot of companies have discovered that they were overly reliant on Chinese travellers,” he added.

Han Son-hwi, a spokeswoman for the Kal Jeju Hotel, said that the marketing department has been trying to attract more guests from Hong Kong, Taiwan and Singapore to make up for the Chinese cancellations since early March.

Right as Airbnb announced its rebranding in China, Chinese homesharing giant Tujia made known at its recent Open World Summit in Beijing that it will be pursuing a “3+1” development strategy for the year – undertaken from perspectives of consumer, host, property buyers and regionalisation.

With a focus on user experience, Tujia intends to upgrade products and services in three areas: select more resources and provide richer content to consumers; optimise services before, during and after the stay through addressing needs of safety, cleaning, search and payment; and upgrade user service guarantee.

In the third respect, it has already implemented a Concern-Free Living strategy combining house examination, premium hosts, two-way evaluation, Ctrip Credit, Zhima Credit and compensation.

The strategic plan is also related to upgrading and integration on the supply side, hence making property sharing easier for hosts from across the spectrum. To achieve this, Tujia would be gathering traffic, unify standards, improve efficiency and integrate fragmented resources.

Tujia also plans to establish a one-click management of eight platforms, including Ctrip.com and Qunar.com, to allow hosts to control price and availability, accept bookings and communicate with customers through an app.

As well, Tujia intends to provide operational training, security consulting, income management and other service support to help hosts become more professional.

On the front of property buyers and regionalisation respectively, Tujia will continue working the TuLifang Solution that combines housekeeping and property management as well as cooperate with regional governments and partners for integrated homestay services and poverty relief in the countryside.

To aid its strategy implementation, Tujia signed three partnerships at the conference, including with Scenario Lab to explore the innovative evolution of homestay products and build new IP.

Another signing is for the Beautiful Book House public benefit project, an innovative homestay project oriented towards helping children in the countryside.

Tujia also renewed its cooperation with Zhima Credit of Ant Fortune to provide more standardised services.