JAPAN is developing a new high-tech system that will enable tourists to check in at hotels and make purchases on a special reader via fingerprint recognition.

It is being introduced to make transactions faster and doing away with the need for a traveller to present a passport during check-in. The system also enhances security by making it harder to execute credit card theft.

Japan’s Ministry of Trade, Economy and Industry, in partnership with private firms KDDI and Liquid Inc. are developing the technology, and ministry officials have confirmed with TTG Asia that the system should roll out in early-2017.

The system works by having tourists register two fingerprints and their credit card details when arriving at one of Tokyo’s airports. More registration locations will be added in the near future.

Once a person is registered, a visitor can check-in at their hotel or make a purchase simply by pressing their fingers on a reader at any one of the venues taking part in the programme.

A demonstration of the system is set to take place at the Prince Hotel in Tokyo later this month. A further 300 souvenir shops, restaurants and hotels in popular tourist destinations, including Hakone, Kamakura and Atami have also been invited to take part in the early trial launch.

By 2020, when Tokyo will host the Olympic Games and Paralympics, tourism authorities here hope the system will be widely available and accepted by travellers.

EXCITING prospects await Singapore’s future tourism workforce, but more needs to be done to push past lingering misconceptions that are dulling the industry’s shine for millennials, leading industry stakeholders expressed.

“The tourism sector is competing for talents, in some ways unfairly, with other attractive industries such as banking,” Soon-Hwa Wong, chairman of PATA Singapore Chapter told TTG Asia, alluding to the longheld public misconception that customer-facing roles are the be-all and end-all of hospitality and tourism careers.

Young Singaporeans may also shy away from tourism pathways because of assumptions held by parents and peers that “low pay, long hours and limited prospects” typify tourism careers, Wong said.

Agreeing, Joan Henderson, associate professor at Nanyang Technological University’s Nanyang Business School, said “salary considerations” have quelled interest.

Perhaps more striking is the low retention rate of hospitality professionals, with “large numbers” of students deciding to pursue other pathways after their tourism industry internships, according to a spokesperson from Temasek Polytechnic’s (TP) hospitality faculty.

In practice, however, tourism holds coveted prospects, be it up the hotel rungs or in destination planning roles, assured Wong. The emergence of non-traditional business models in recent years has also emphatically broadened this scope.

“The industry now includes mobility players, tech platforms, analytics and big data systems. Even major tech players such as Google and Facebook have now got tourism components,” he said. “Now is a good time to redefine the boundaries of travel and tourism careers.”

Change is already underway to assist young Singaporeans in discovering the multifaceted nature of tourism and how diverse skillsets are valued within the trade.

Earlier this month, the Tourism Innovation Competition (TIC) 2016 concluded after students took a week to develop ideas for the Singapore Zoological Gardens with the guidance of mentors from TP’s Hospitality and Tourism Management course.

Benjamin Cassim from the organising team at TP told TTG Asia: “The organisers had over the years worked with various industry partners including Banyan Tree Global Foundation, where (students proposed ideas) on how hotels can be more sustainable in their operations.”

“We view the competition as a very relevant platform because it offers students the opportunity to learn, be exposed to, and participate in a tourism-building effort in an enjoyable way,” Cassim shared.

While lauding the TIC for generating awareness of the trade in young talents, Wong stressed that sustaining their interest is the larger challenge.

One way to go about this, he suggested, is to highlight industry role models so as to raise the profile of the industry.

“Also, we could identify cross-sectoral ambassadors who would then talk up the industry – this is a role that associations (such as PATA and hotel associations) can fill.”

He further added that invigorating industry news could be disseminated online to better engage a larger audience. “Everyone loves feel-good news, which can lead them to thinking it’s an exciting and dynamic industry and not a tired one (as some might think),” he said.

Members of the executive management of DNATA and DA

DUBAI-based Dnata, which has been buying UK travel companies, has made its first foray into Asia by acquiring a stake in Bangkok-based Destination Asia (DA) for an undisclosed sum.

Dnata has been on the prowl to buy a travel company in Asia for over two years now, as part of its plan to expand its Travel Services Division by investing in overseas markets. Until now, its acquisitions have been in the UK market, where it bought tour operators Stella Travel Services and Gold Medal Travel Group, online travel agency Travel Republic and cruise specialist Imagine Cruising, as well as increasing its stake in Hogg Robinson Group.

According to sources who spoke on the condition of anonymity, Dnata was also in talks with Diethelm Travel and Exotissimo for a purchase, and that it had hoped for a full takeover rather than just a stake. DA’s CEO/group managing director James Reed, in an interview with TTG Asia e-Daily, declined to reveal whether Dnata now holds a majority stake, or the price of the equity stake.

But varying rules and regulations in the 11 countries DA operates in, the shareholding structure of the company – DA has no fewer than 36 shareholders and they operate as “family” by buying into each other – and bright future prospects as Asia continues to grow, might be factors that have prevented a full Dnata ownership.

While DA welcomes a new owner which Reed described as “a match made in heaven”, the M&A may upset the cart for a few DA competitors in the region.

DMCs such as Go Vacation Thailand and Destination Services (part of Hotelbeds Group), for example, handle Emirates Holidays in Thailand and Singapore respectively and this account might go to DA.

As well, Stella and Gold Medal send clients to Asia, accounts that could also go to DA although a source pointed out that this was not necessarily a given as DA might lose its other UK clients in the process. Some Tour East offices in the region are handling Stella’s Travel 2 and Travelbag accounts, as well as Dnata Holidays, while Destination Services also handles Gold Medal apart from Emirates Holidays.

Reed, along with Bob Guy, DA’s managing director Singapore-Malaysia who handles several UK accounts, declined to comment on this issue. The deal was just signed over the weekend in Bangkok.

When contacted, Judy Lum, Tour East senior vice president sales & marketing international market, said: “Like all the other M&As that we have seen over the years, I am quite sure that we will be put through an account consolidation exercise to enable Dnata to achieve the best deals from their ground agents. This will happen sooner or later, even without the stake in DA, with Dnata having acquired so many strong brands. With the latest development, it is no doubt that DA will now have the advantage. Nevertheless, it is left to be seen if Dnata will put all its eggs in one basket. Competition will always keep us on our toes.”

Reed said DA would continue to run the business. “We had been approached by other companies in the past but they wanted to change parts of the business model because of who they were and they didn’t share the same philosophy,” he said.

“Dnata and us had collectively looked at the business opportunities in Asia and both of us recognised that the strengths DA has are unique. You don’t just buy a licence, that’s a technical thing, you buy the people, connections, contracting, relationships with NTOs and local airlines, and so on.”

When asked if DA could continue to grow without an acquisition, Reed said: “We’ve been able to grow, but the business is changing so quickly with the increasing role of IT and online distribution. We realised with their size, Dnata’s online booking and operations systems are world-class and we want to bring that (into DA).”

As for Dnata, Iain Andrew, senior vice president of Dnata’s Travel Services, said in a statement: “Our stake in Destination Asia opens the door to business opportunities in new markets, and will strengthen Dnata’s position as a global player in travel.”

Reed said it was inevitable for Asia to be “the centre of the world’s travel industry by 2020” due to the economic clout of its middle class who desire to see the world. “Along with this is a growing need for corporate meetings, company incentive programmes, training seminars and international but Asia-focused conferences. Dnata and Destination Asia have the perfect and ideally complementary support services to grow this still embryonic market,” he said.

The deal marks a personal triumph for Reed who, along with Pornthip (Addie) Hirunkate, started the company in late 1996 with nine staff in Bangkok. This has grown to 33 offices in 11 countries and 688 employees.

Addie said: “Jim and I started Destination Asia in late 1996 with nine staff in a cramped office. All we had was a desire to make the best DMC in Asia…I believe that the partnership with Dnata will enable us to expand our services and develop new programmes and new sites for the needs of the young generation who are now ‘exploring’ Asia.”

Paul Levrier, managing director of Destination Asia Vietnam, added: “I met Jim in 1995 and was immediately drawn to his vision for a pan-Asia DMC. I was given the task, along with Nicole Naylor, to open and develop Destination Asia Vietnam which at that time was at an embryonic stage of inbound tourism development. There were no international hotels and only basic infrastructure. But Jim gave me the resources I needed and I am proud to see the amazing growth from that chanced meeting back in 1995.

“Dnata will assist us in offering new services for our broad international clientele, especially in online bookings and real-time access to product development, especially eco-tourism.”

TRAVELPORT will not be getting a GDS renewal contract from Flight Centre for its Australia and New Zealand operations when the agreement expires June 30, 2017, according to a report by Travel Trends.

Flight Centre is estimated to generate more than US$100 million in revenue annually and both Amadeus and Sabre are sure to be vying for the account.

Travelport’s Australian and New Zealand business has revolved around Flight Centre for more than 25 years and the report states that this will likely lead to a long-term restructuring of their businesses in that region.

This is not the first time Flight Centre has decided to switch from Travelport. Amadeus took over the European business last year while Flight Centre currently uses Sabre in Canada, Mexico and the US.

Travel Trends estimates Travelport to be processing around US$15 million in its airfare segment at the moment, which will plunge when the Flight Centre account is lost next year.

Travelport did not make any official statements but staff were recently informed of the decision by the company.

Both Flight Centre and Travelport declined to give any comments due to confidential nature of the agreement.

Baldemor: Hawaii is new again

THE Hawaii Tourism Authority has made its foray into Hong Kong with the appointment of Brandstory Asia as its destination representative last month.

“It’s the right time to have an office here because we believe Hawaii is a destination that millennials as well as ordinary Hong Kong travellers who want new experience and adventures need,” said Hawaii Tourism Authority COO Randy Baldemor.

“Targeting premium travellers, we offer various activities ranging from romantic weddings, hiking to even whale watching tours.”

Baldemor adds that the lack of a direct air link is a challenge, but believes that building awareness and generating more demand will entice airlines to do so in the future.

Brandstory Asia’s managing director, Reene Ho Phang, said: “We’ll roll out our marketing strategy at the International Travel Expo to arm the trade with great Hawaii content. As for fam tours, the first one is being planned for September/October.”

Besides engaging the trade, Baldemor said technology will also be leveraged. “Upcoming developments include new mobile apps available in Chinese. VR technology will also be used so people can experience Hawaii even if they are not there,” he said.

Nan Hwa (Express) Travel Services’ senior product manager, Brian, said: “Hawaii’s been off the radar for 10 years and is replaced by Maldives. It’s good to have its presence here again because we can sell it to millennials who don’t know much about the destination and want to explore new places.”