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China spat puts chill on South Korea cruise sector

By Julian Ryall
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Cruise operators are rewriting their operations to South Korean ports as the diplomatic row between Beijing and Seoul increasingly spills over into the travel sector.

South Korea’s travel industry has quickly felt the pinch after Beijing instructed Chinese travel agencies to halt all sales to South Korean destinations. An estimated 53,000 Chinese cancelled their bookings on China-Incheon ferries in March, while Korean Air reservations on Chinese routes are down 10 per cent and Asiana Airlines is reporting a fall of nine per cent.


Jeju island

But the cruise sector, which has enjoyed impressive growth on China-South Korea routes in recent years, is among those hardest hit with operators reworking itineraries in response.

Beverly Yang, a spokeswoman for Costa Cruises Asia Pacific and China, told TTG Asia: “Costa Cruises will remove calls to South Korean ports from our recent cruises homeported out of China, replacing them with cruising at sea or calls to destinations in Japan.”

Norwegian Cruise Line, which is about to launch the new Norwegian Joy on its Chinese routes, also hinted that it is taking South Korean ports off its itinerary.

A spokesperson for the company said: “We will be adjusting our schedules, but the beauty of cruise ships is that we are able to alter itineraries and ports of call as needed.”

Earlier this month, 3,459 Chinese passengers aboard the 11,000-ton Costa Serena refused to disembark during a port visit to Jeju Island. According to local media reports, around 80 charter buses and tour guides waiting on the dockside went away empty-handed.

Beijing insists that its order is not a retaliation for the South Korean government’s decision to deploy the US Army’s THAAD anti-missile system in the country.

Lufthansa cosies up to agents, corporates through direct channels

By Xinyi Liang-Pholsena
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Digitalisation and greater personalisation of products and services will play key roles in the Lufthansa Group’s push in developing a “multi-channel landscape” as the European airline seeks to reduce its reliance on traditional distribution channels.

Speaking to TTG Asia in a phone interview, Lufthansa Group’s Asia-Pacific vice president, Dieter Vranckx, said that distributing its fares and products across different avenues form a natural proposition for the group, which comprises Lufthansa, Swiss International Air Lines, Austrian Airlines and Brussels Airlines.


Vranckx: GDSs necessary but inadequate

“We are very happy with GDSs as a distribution channels – they are an excellent way to distribute complex itineraries. But next to the GDS, the Lufthansa website is also a good platform, plus other additional distribution channels,” said Vranckx.

“In our changing world, it’s no longer about just a seat, but a seat plus meal, duty-free shopping and a lounge voucher perhaps, so we need a distribution solution that can showcase all these products. Selling a lounge voucher, for example, is not possible on GDSs.

“GDS is a necessary tool but it cannot display the functionality or shape of all our new products we have invested in. We want our B2B partners and customers to see all our products,” he added.

The Direct Connect Solution was hence rolled out close to two years ago as a new distribution strategy to reach out to corporates and agents. More recently on January 1, Ctrip became the first Direct Connect Partner for the Lufthansa Group in Greater China, enabling the Chinese OTA giant to display flights and services departing from airports outside of China and Hong Kong.

“Direct Connect is our new distribution strategy in all Asia-Pacific markets, not just in China,” Vranckx emphasised.


Vranckx (left) and Ctrip’s Yuxiang Zhuang sign first Direct Connect partnership

As for the 16 euros (US$17.20) GDS surchage, which was introduced in September 2015, Vranck sees it as just “one element” in Lufthansa’s distribution strategy. The adoption in Asia has been limited, he told TTG Asia, as agents still see good reasons to book longhaul tickets through GDSs while China and Hong Kong do not allow surcharges.

Technology has been a great enabler of digitalisation for Lufthansa, which has established 2017 as year of digitalisation as it pursues a more efficient and customer-centric strategy with agents and corporates alike. “We see potential to digitalise our relationships with agents through automated solutions and auxiliaries. We want to make sure we are easy to deal with,” said Vranckx.

Beyond digitalisation, developing more purchase points in the distribution landscape, and personalisation of products for both B2B and B2C clients alike, industry partnerships has been identified as a pillar of growth for the airline group.

Lufthansa Group’s joint venture with Singapore Airlines Group, which was inked in November 2015, will see both airline groups cooperating in a “very specific geographic scope” spanning Singapore, Malaysia, Indonesia and Australia, as well as its home markets in Switzerland, Austria, Belgium and Germany, said Vranckx.

This partnership, which aligns both groups as network partners than individual carriers, should lessen the need for the resumption of Munich-Singapore services for the time being, he added.

Elsewhere in Asia, the group also boasts joint ventures with All Nippon Airways (launched in early 2012) and Air China (launching on April 1).

Lufthansa has deployed two of its three new Airbus A350s to Mumbai and Delhi while Brussels Airlines will begin Brussels-Mumbai services with five-times weekly flights starting March 30.

Lufthansa will from October 29 operate a daily Airbus A380 in place of the existing Boeing 747-400 on the Bangkok-Frankfurt sector for the winter timetable,increasing capacity of more than 35 per cent on this route from October 2017 to March 2018.

 

Brugger named Rosewood Hong Kong managing director

By TTG Asia
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Marc Brugger has been appointed managing director for Rosewood Hong Kong to assemble an opening team for the property’s launch in 2018.


Brugger

The Swiss native was most recently the managing director of Rosewood Beijing, and has more than 25 years of luxury hotel management experience under his belt.

Brugger’s previous roles include various vice president roles with Crown Towers Hotel & Casino Macau, City of Dreams Casino Macau and Altira Hotel & Casino Macau, as well as the director of F&B at the Four Seasons Hotel Dublin.

Dream Cruises gets in the mood for cheongsam

By TTG Asia
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Dream Cruises hosted its first-ever Cheongsam Fashion Show at sea, transforming the Genting Dream into a runway to showcase 21 distinctive cheongsams (also known as qipao) handcrafted by Linva Tailor’s Leung Ching Wah, who designed some of the costumes for Maggie Cheung in In The Mood for Love.


Cheongsam Fashion Show onboard Genting Dream

The Art of the Cheongsam fashion shows will be held onboard Genting Dream in designated sailings in March with a curated selection of bespoke cheongsams on exhibition at Deck 8, allowing guests to travel back to the Golden Shanghai era in the 1920s.

Taiwan-based KKday wants to corner Thailand’s FIT marketplace

By TTG Asia
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As part of its expansion plans in Asia, Taiwan-based e-commerce travel platform KKday has launched in Thailand last week after recently going live in Singapore.

According to a KKday statement, the Thai branch will appeal to the growing number FITs in Thailand. While this group typically books their own flight and accommodation, they also look to online travel experts with local knowledge for genuine insights into a destination.


Chen (second from left)

Ming Chen, CEO of KKday, believes city break tours will appeal to the Thai market. He said: “I envisage that KKday members in Thailand will want to soak up the atmosphere and truly experience city breaks in Taiwan, (South) Korea and Japan which are all popular vacation destinations for Thais.”

He added that the platform coincides with the “huge growth of e-commerce” and consumer behaviour in the market.

In Thailand, KKday has partnered with DTAC Rewards, Eatigo, Tourkrub, Show DC (Lotte) and Nokscoot.

The company sees expansion as a big part of its plans for the future, having received two rounds of funding in 2015 and 2016 totalling US$11.5 million led by Singapore-based venture capitalists, Monk’s Hill Ventures and AppWorks, a key startup accelerator in Asia.

Established in 2014, KKday already has presence in Taiwan, Hong Kong, Malaysia, South Korea and Singapore. KKday offers over 6,000 experiences (across 25 different categories) in 174 cities and 54 countries.

JNTO sets up office in Kuala Lumpur

By TTG Asia
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The Japan National Tourism Organization (JNTO) has on March 8 established a new office in Kuala Lumpur to intensify overseas promotion of Japan and work towards the country’s target of 40 million annual overseas visitors by 2020.

Japan welcomed a record 24-plus million foreign visitors in 2016. Last year, the country also saw its highest number of visitors from Malaysia with 394,200 arrivals, 29.1 per cent more than the previous year.


Kuala Lumpur

Headed by executive director Chiemi Maruyama, the new Kuala Lumpur office will participate in travel fairs such as Matta Fair Kuala Lumpur, MITM Penang and Matta Johor; organise promotional events, seminars and trade fairs; and provide PR support for travel agents and media, the JNTO said in a press release.

The address of the JNTO Kuala Lumpur office is: 1st Floor, Chulan Tower, 3 Jalan Conlay.

RCL steps up port investment, this time in Penang

By Raini Hamdi
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Penang Port will collaborate with Royal Caribbean Cruises (RCL) in a joint venture to upgrade and improve Swettenham Pier Cruise Terminal in Georgetown, Penang, to accommodate berthing of larger cruise ships at its facilities. The 60/40 joint venture will be jointly managed by both parties, with the majority stake held by Penang Port.

This is the second time in weeks that RCL has announced its involvement in a South-east Asian port. At the recent Seatrade, it reportedly sealed a partnership with the Philippine Department of Tourism in the Aklan province to build a purpose-built cruise ship terminal in the Western Visayas’ Caticlan or Boracay. Details of the collaboration are still sketchy.


Swettenham Pier Cruise Terminal

When contacted, Adam Goldstein, president and COO of RCC: “We have conversations with ports and countries all the time around the world about infrastructure development. It is premature for us to say anything about our commercial development plans for the Philippines.”

In Penang, however, a statement issued by RCC said plans include extending the existing berths to 688m from its current length of 400m. This will enable the terminal to berth two mega cruise liners carrying over 4,900 passengers each at any one time, in line with the industry requirement as Penang comes of age as a “choice port of call” for international cruise operators.

In addition, the redevelopment will include spaces for tour buses to ease the flow of traffic in the areas around the Swettenham terminal. The US$35 million project will further focus on improving accessibility for the aged and physically challenged throughout the terminal from ship to shore.

“This planned development has received unyielding support from both state and federal government and associated government agencies including tourism bodies, and will be a focal part of Malaysian Tourism EPP6 plan to create a Straits and Borneo Cruise Riviera,” it said.

The ability to handle more and larger cruise vessels in Swettenham Pier will entrench Penang as a major cruise destination in the region, it added.

RCL is scheduled to make 38 calls in Penang in 2017.

This isn’t the first time RCL is investing in ASEAN cruise ports. In 2015, it invested in upgrading Vietnam’s Chan May Port in order to accommodate larger ships like its Voyager and Quantum Class ships, according to a spokesman.

In a recent interview with TTG Asia, Goldstein said the more the China and Australia markets expand, the more there will be new ports, ships and itineraries in those regions, and the greater the need is to develop cruising in South-east Asia to redeploy the ships there in the winter months.

Infrastructure development is going to be one of the most significant undertakings in the region over the coming years, he said. “We are planning to invest in the region in commercial development without question. It’s part of what we do,” said Goldstein.

Park Hyatt Bangkok to open at long last in May

By Raini Hamdi
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Park Hyatt Bangkok is opening on May 12 and this time, the date is likely to stick after several missed deadlines over a construction delay of more than two years.

When it opens, the hotel will be a modern addition to Bangkok’s luxury hotel market and will up the ante on the city’s ever-expanding F&B options. A signature dining concept there is Penthouse Bar & Grill, which spans the uppermost 34th, 35th and 36th floors of the hotel. Conceived as the fictional penthouse of a well-travelled British-Thai collector of fine art and vintage car-racing relics, the complex will include an international grill restaurant, a cocktail bar with resident DJs, a VIP lounge, a speakeasy and a sky bar, all with spectacular panoramic views.


Park Hyatt guestroom

General manager Michael Golden said the delay was due to the complicated architecture of the iconic building, which has a curvilinear, twisted-coil structure, unsymmetrical in all dimensions. The 222-room Park Hyatt Bangkok is housed within the top 27 floors of this retail complex and has no fewer than 57 different room configurations because of the building’s design.

Rates will be comparable to the other posh brands in the city at around 8,500 baht (US$244.89), and F&B pricing will be reasonable. “We want people to come to the hotel everyday, not just on special occasions. We’d rather be turning seats in our restaurants several times than have them half full in a single seating then have marketing meetings on what to do about it. Unlike in the past, there are so many F&B options in Bangkok, you don’t need to go to a hotel. So we’ll combine five-star service with reasonable pricing,” said Golden.

The hotel expects an AOR of 45-50 per cent in the first six months of opening, with guests comprising both leisure and corporates. “Thailand is a leisure destination but given our location which is surrounded by embassies and business houses, we will have corporates, small meeting groups and lots of weddings, so we’ll have a fairly good mix,” he said.

The hotel has 12 event venues covering a total of 2,000m2. They target high-level board meetings and glamorous cocktail receptions, from elegant gala dinners to spectacular society weddings.

Its geographical mix will comprise the US, the UK, Australia, Hong Kong and Singapore. Japan will figure in as well, despite competition from the Okura Prestige Bangkok across the street. “The Japanese know the brand and love great architecture and interior design,” Golden said.

China is getting stronger, thanks to awareness of the brand which is present in both Beijing and Shanghai, he added.

On competition with sister property Grand Hyatt Erawan down the road, Golden said: “Every hotel is a competitor but being a sister property, there are synergies. We’re a small hotel and there will be lots of groups that are too big for us and we’ll look to split them (with Grand Hyatt). Commercially, we will also share resources wherever possible.”

For instance, a team member of the PR/communications department at Park Hyatt has a cluster role and looks after Grand Hyatt Erawan, Hyatt Regency in Hua Hin and the new Hyatt Regency Bangkok.

Brook becomes DOSM at InterContinental Hong Kong

By TTG Asia
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Jeremy Brook has been appointed director of sales and marketing for InterContinental Hong Kong.

Originally from the UK, Brook has over 26 years of sales and marketing experience in the luxury hotel and travel industry, spanning across Europe, the US, China, Australia and South-east Asia.

He previously served as director of marketing at Peninsula Hotels for over a decade in Beijing and New York, and was with Starwood Group for almost a decade in various sales positions.

Brook’s other roles have included director of marketing at the Shangri-la China World Hotel in Beijing, vice president of sales and marketing for COMO Hotels and Resorts, and director of sales, Europe for Sandals and Beaches Resorts.

The new face of IRs

By TTG Asia
0

Asia’s integrated resorts are polishing their lifestyle facets and keeping them preened and Instagram-ready for millennials, as the younger generation becomes a potent consumption force. By Paige Lee Pei Qi, Rosa Ocampo, S Puvaneswary and Prudence Lui


From left: Sands SkyPark at Marina Bay Sands; Soak Out Water Party at Universal Studios Singapore

Integrated Resorts (IRs), typically associated with casino-goers and families, are increasingly responding to millennial preferences. While IRs have different strategies to court this lifestyle-sensitive group, they can all agree that photogenic food, dynamic events and digital messaging are ways to the hearts of millennials.

Lures in F&B
“Dining is at the core of millennial culture today. With over 80 dining options across Marina Bay Sands (MBS) – from casual bistros along the waterfront promenade, to al fresco lounges atop the Sands SkyPark – we (aim to) satisfy this group who are always on the prowl for unique culinary experiences,” a spokesperson from MBS said.

“They also appreciate finer details when it comes to dining, from hospitality, finishing touches to the restaurant’s decor, right up to the produce that goes into what they eat,” the spokesperson added.

Similarly, a Resorts World Sentosa (RWS) spokesperson told TTG Asia that the newly earned Michelin stars at four of its restaurants, along with the Curate initiative (which features visiting Michelin-star chefs), appeal to millennials seeking the latest food trends and fine dining by renowned names.

Resorts World Genting (RWG) recognises the traction that international names and local cuisine have with millennial visitors. A spokesperson stated that established global brands at its new SkyAvenue mall such as Burger & Lobster and Motorino are popular with millennials, while those seeking authentic food and culture will enjoy its newly-opened Malaysian Food Street.

An event-loving crowd
RWG also holds regular activities such as concerts, live shows and festive promotions to attract millennials, which has gotten the thumbs up from Ally Bhoonee, executive director at World Avenues Travel & Tours.

“RWG has done the right thing by upgrading and refreshing their products. This will encourage repeat visitors and new ones, especially millennials who also form a key age group that Malaysia wants to attract,” Bhoonee said.

Also keeping entertainment offerings fresh is RWS in Singapore. A spokesperson said the resort “strives to create new, exciting and adrenaline-charged experiences across its attractions”.

Recent examples include the Soak Out Water Party, Halloween Horror Nights 7 and Santa’s All-Star Christmas in Universal Studios Singapore.

And at Resorts World Manila, its three bar and restaurants last November offered paid live viewing of the hyped boxing match between Filipino boxer Manny Pacquiao and welterweight champion Jessie Vargas.

Going digital
Where millennials are concerned, products may be key, but many IRs acknowledge that these are best taken advantage of when combined with digital strategies.

Samson Tan, CEO of GTMC Travel: observed: “We see IRs (using social media and technology). They are increasingly leveraging various social media tools to promote the latest offerings and drive the millennial crowd in.”

Indeed, through social media, MBS found that it has gained “strong clout over consumers’ decision-making process”, using “compelling imagery, trend and style tips, or content to win prizes” to connect with mobile-savvy millennials.

The potential doesn’t end there, as social media opens up opportunities for user-driven, organic and viral marketing.

“Being able to re-share our followers’ posts is a powerful means to empower them and encourage even more user-generated content – which in turn amplifies our share of voice in the world of social media,” said the MBS spokesperson.

Likewise, RWG was recently shown the power of viral marketing. It collaborated with ESL and provided the Arena of Stars as the venue for the ESL One Genting e-sports tournament (January 6 to 8), which “went viral” on social media and attracted 10,000 people, many of whom were millennials.

Charisse Chuidian, vice president – public relations, at City of Dreams (COD) Manila admitted that millennials are not a main target for its gaming facilities, but with some innovation and creativity, strategies can still be devised to engage this mobile-savvy segment and tap their influence.

“Millennials do play a role in spreading awareness for our hotel, restaurants and entertainment marketing. They are a great segment for brand awareness and we regularly offer online promotions to leverage on their ‘snap-happy’ market behaviour.”

The same applies for traditional gaming entertainment, as Chuidian highlights a millennial-targeted initiative to co-market the City of Games mobile app. The Slots and Baccarat mobile game allows players to earn real-world rewards that can be redeemed in COD Manila, COD Macau and Studio City.

For Sands China, which operates The Venetian Macao, Sands Macao and Sands Cotai Central, branding and marketing tends to be “more mass market”, a spokesperson said.

“We periodically undertake paid social campaigns for certain entertainment events/concerts if millennials are identified as a key market, but this is rare,” a spokesperson added.

Beyond promotions, RWS also caters to tech-savvy millennials with new payment modes. “Chinese visitors can make fast, secure and contactless mobile payments using Alipay – China’s largest mobile payment provider and global lifestyle app – at more than 200 RWS locations.”

Theme parks not exempt
Even IRs that have been chiefly appealing to the “young and young at heart” are not spared from keeping up with millennial trends.

Sean Choo, general manager of Sunway Lagoon, said: “Millennials travel solo or in small groups and do their research online before visiting a destination – it is important that we are ‘seen’ in all the online channels that millennials use to access information.”

He added: “We invite key opinion leaders such as bloggers, celebrities and artistes to visit our park, share their experiences and promote our brand… they have an influence on the decisions millennials make when choosing a holiday destination or place to visit.”

Not losing sight of more conventional tactics, Choo said the theme park – which is located close to a number of universities – have packages (e.g. Quacktastic Tuesdays and Terrific Thursdays) – to attract the price-sensitive student market.

As well, RWG expects its upcoming Twentieth Century Fox World theme park will be a “definite crowd puller, 
particularly among youths” when it debuts in 2H2017, the resort’s spokesperson stated.

 

This article was first published in TTG Asia March 2017 issue. To read more, please view our digital edition or click here to subscribe.

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Sister Publications
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TTG Asia | Thai political parties detail tourism policies ahead of February election
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