TTG Asia
Asia/Singapore Wednesday, 25th March 2026
Page 1868

Top US airlines make worrying fare policy change

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THE big three US airlines, namely American Airlines, Delta Air Lines and United Airlines, have reportedly made a silent change to its fare policies that will result in consumers paying as much as seven times more for their tickets.

According to a report by the Business Travel Coalition (BTC), a US-based managed travel community advocacy organisation, the big three US airlines have changed their airfare policy to prevent multi-city ticketing using the lowest available fare on each segment.

This results in return fares being substantially more expensive than if tickets were to be purchased as separate one-way fares.

Leisure travelers, who usually purchase the traditionally more affordable round-trip tickets, will be caught unprepared, warns BTC.

It adds that while a travel agent will be aware of the policy change, the problem is that most consumers, especially infrequent travelers who manage their own trips, will be caught unaware when purchasing tickets on the airline websites.

Small businesses who do not have managed travel programmes and access to travel agents will likely be blindsided as well.

But even big corporations with well-developed travel management programmes will be affected. Explained BTC: “(Major corporations) will be forced to purchase a series of one-way tickets as a workaround to substantially higher multi-city itineraries issued as a single round-trip ticket.

“Those travellers, and the organisations that actually pay for the travel, will face travel agency service fees on each segment, and to add insult to injury, when travel plans are modified, they will face change and cancellation fees of up to US$200 per segment.”

BTC further cautions that if this fare-rule change were to succeed, Europe will likely be hit next as carriers there will use it as a tool against the ubiquitous LCCs operating in the region.

Security issues put corporates off sharing economy suppliers

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Screenshot of Airbnb’s website

EVEN as sharing economy accommodation suppliers continue to thrive, corporate travel managers attending CTW China 2016 say they are still reluctant to take this option due to security challenges.

Winnie Liew, regional travel manager of Applied Materials Inc, Singapore, said her company has recently “said no to Airbnb” in their company policy last year.

Liew explained that the decision was made because her company was not able to track travellers who booked with Airbnb, compromising travellers’ safety and security.

She added: “Moreover, different countries have different regulations with regards to Airbnb. For example, in Singapore not all houses can be rented out so if the company does not know the ground situation well, they will get into trouble.”

Unilever Industries is also “thinking twice” about this option, revealed Geetha Arekal, regional travel head, APAC.

She said: “People are saying that this space is cheaper (by) up to 40 per cent so there is an opportunity to spend less. However, we may have to (spend time to screen) the rental place first for security. We are still thinking how we can do that.”

Benson Tang, regional director of Association of Corporate Travel Executives, opined that small- and medium-sized enterprises might welcome such accommodation options “as their top priority could be to save on costs instead of (ensuring travellers’) security”.

Besides the risk posed to physical security, data privacy may also be compromised when sharing economy platforms are not secure.

A survey of 113 Chinese travel managers conducted by Carlson Wagonlit Travel in February and March found that data security was ranked a top concern, followed by the management of big data and the impact of mobile technology on business travel.

Akshay Kapoor, head of CWT Solutions Group, Asia Pacific, said: “The evolution of technology and the rapid adoption of smart technology has impacted the way we store and manage our data.”

Kapoor cited a 2015 study by the Ponemon Institute, which estimated that the average cost incurred for each lost or stolen record containing sensitive and confidential information is US$154, and the average total cost of a data breach for the 350 companies participating in the study was estimated at US$3.79 million.

“New, unknown threats are constantly emerging and this is what we see as one of the key drivers for data privacy and security risks being consistently ranked among the top concerns of travel managers and travelers,” he added.

Jetstar Japan launches Manila-Nagoya route

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Delivered 10 days ago, already in service. Nagoya Centair NGO

Delivered 10 days ago, already in service. Nagoya Centair NGO

JETSTAR Japan launched a direct route between Manila and Nagoya on April 2, hitting full passenger capacity on the first takeoff from Manila.

The first LCC in Japan to offer this route, Jetstar Japan will operate up to seven flights a week between Manila and Nagoya on the 180-seat Airbus A320. The flight time is just under five hours.

Chairman of Jetstar Japan, Masaru Kataoka, said: “Nagoya is home to the largest number of Filipinos in Japan and this service will be welcome news for family and friends of Filipinos who will now be able to travel and visit more often.”

Nagoya is the capital of Aichi prefecture, which alone is home to some 30,000 Filipinos.

“We anticipate a boost to the tourism industry in both cities as the new service will attract new travellers to explore more of Nagoya and its rich cultural history,” said Kataoka, who added that flight bookings for the new route since its launch had been “very encouraging”.

Jetstar Japan recently launched flights from Manila to Tokyo-Narita on March 15 and will be introducing services to Osaka – a destination currently served by sister airline Jetstar Asia – from April 7 onwards.

Minor adds two properties to Abu Dhabi portfolio

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MINOR Hotel Group (MHG) is further expanding in the United Arab Emirates with two new properties in capital Abu Dhabi, both scheduled for opening in 2018.

The developments take place on Jebel Dhanna, a relatively under-developed peninsula located along the coastal area of the Al Gharbia region in Abu Dhabi, close to the ferry departure point for Sir Bani Yas Island and 240 km from Abu Dhabi city.

The Anantara Jebel Dhanna Villas will comprise 60 keys spread across three villa types: 20 one-bedroom villas, 38 two-bedroom villas and two three-bedroom villas. It will also offer two restaurants, a pool bar, gym, swimming pool and an Anantara Spa.

The neighbouring Avani Jebel Dhanna Hotel will have 230 keys consisting 170 deluxe rooms and 60 superior rooms that include a kitchenette. Multiple dining options will be available, as well as a gym and a swimming pool.

Meeting and banqueting spaces, a kid’s club and outdoor recreation areas will be shared between the two properties.

There are currently six Anantara properties in the UAE – five in Abu Dhabi and one in Dubai. In addition to the Anantara Jebel Dhanna Villas, a new Anantara resort is also under development in Ras Al Khaimah and a second Anantara resort will open in Dubai in 2018.

The newer Avani brand is set to make its first appearance in the UAE come 2018 with the opening of the Avani Deira Dubai Hotel and the Avani Jebel Dhanna Hotel.

Costa orders two China-bound ships

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COSTA Group has placed a more than 6 billion euros (US$6.8 billion) order with Italian shipbuilder Fincantieri for two new ships.

The 135,500-ton ships, with a capacity for 4,200 guests each, are scheduled for completion in 2019 and 2020. They are designed for the Chinese market and will be operated by Costa Asia.

“This new order will allow us to continue to significantly build the Chinese cruise market, which will become the second largest in the world at the end of the decade,” said Michael Thamm, CEO of Costa Group.

Three Costa ships are currently deployed in China and Asia year-round, including Costa Atlantica, Costa Victoria and Costa Serena. A fourth ship, Costa Fortuna, will be added in late April 2016.

LED canvas takes centrestage at St Regis Kuala Lumpur’s grand ballroom

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THE St Regis Kuala Lumpur will unveil Asia’s first 270-degree LED digital canvas among other features when it opens in May this year.

The 208-key hotel will offer some of the largest guestrooms in the city plus 10,000m2 of function space spread among 16 meeting rooms.

The largest is the 1,300m2 Grand Ballroom, which is skirted by a digital canvas made up of 47 LED screens.

General manager, Anne Scott, said: “I believe we are the first hotel in the region with the ability to give event participants the sense of being totally immersed in the presentation because it is being projected all around them not only through the LED screens but also through the supporting state-of-the-art light and sound system.”

Guests can expect to pay 250,000 ringgit (US$64,176) per use of the LED digital canvas. In addition, the Grand Ballroom is accessible by a private lift large enough to transport a car into the room.

Outdoors, the hotel has a dual-level rooftop bar and lounge named Crystal, which has an LED media wall that runs alongside the pool, and can also be used for events.

The St Regis Kuala Lumpur expects its main markets to include Hong Kong, Singapore, Indonesia and China and also some business from Europe and Australia.

With the opening of its sister hotel The St Regis Langkawi this month, both hotels intend to cross-sell by offering packages that will twin the two cities in a “bleisure” programme that may include a corporate meeting at the St Regis Kuala Lumpur followed by teambuilding or CSR activities at the St Regis Langkawi.

Star Wars invades Legoland Malaysia Resort

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Lego Darth Vader at Lego Singapore’s office

IN recognition of Star Wars Day on May 4, Legoland Malaysia Resort in collaboration with the Lego Group will be organising a host of activities for the entire month of May.

This Lego Star Wars Days celebration, held annually, is set to be the biggest in the Asia-Pacific region this year, with the highlight being the construction of the world’s largest Lego Millennium Falcon spaceship onsite at Legoland Malaysia.

From April 30 to May 2, Daniel Steininger and Christopher Steininger, a father-and-son Lego Master Builder duo, will be piecing together the iconic starship using more than 200,000 Lego bricks. Guests at the theme park are welcome to place a brick on the creation as well.

Upon completion on May 3, the massive Lego construct will be on display throughout the month at Legoland Malaysia.

On the weekend of May 7 to 8, guests can also partake in the building of two Lego TIE Fighters, as well as witness a real-life Imperial March, where more than 90 members of the 501st Legion will be dressed as Stormtroopers, Darth Vader and other characters from the Star Wars movie franchise.

Children are encouraged to dress in Star Wars outfits too when visiting the resort, with free entry given to those who do.

As well, a social media competition will be taking place from April 21 to May 8, where the public is invited to upload a picture of a Lego Star Wars starship they have built onto Legoland Malaysia Resort’s Facebook page along with the hashtags #MasterYourForce and #LegoStarWarsDays. The Steininger Master Builders will then judge the works and ten winners will be picked to win prizes awarded on May 14.

Legoland Malaysia’s Lego Star Wars Miniland first welcomed guests in September 2014.

Japan faces room shortage as arrivals soar

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Tokyo

THE Japanese government may have plans to attract 40 million foreign visitors a year by 2020, but travel companies are concerned about the lack of infrastructure, especially accommodation capacity, to meet the added demand.

But with eight trillion yen (US$72.4 billion) in tourism receipts expected, Japan is making sure the arrivals targets are met. There are plans to further relax visa requirements and to improve access to regional airports, for instance.

Steps are also being taken to address the lack of rooms, such as the easing of rules for private home rentals. Even then, the popular destinations of Tokyo, Kyoto and Osaka will simply not have enough accommodations by 2020.

“The basic problem we are facing is that we cannot secure sufficient hotel rooms. The rise in the number of people coming to Japan is already so steep that travel agents are not able to cope,” said Tetsuya Takeda, general manager, inbound division, Nippon Travel Agency.

“Even now, we are turning down clients because we cannot secure accommodation, with the situation the most difficult during cherry blossom seasons,” he added.

Geoff Tudor, senior analyst for Japan Aviation Management Research, however, explained that “the government’s plan is to encourage visitors to go to other regional airports, where capacity is still available and local communities are keen to welcome tourists”.

In any case, “four years will not be enough time to create all the infrastructure that is required for 40 million visitors,” stated Takeda, adding that developers are not in any rush to build hotels since it is more profitable to construct office and residential properties.

Japan is also gearing up to host the Olympic Games in 2020, where a surge in arrivals is to be expected.

Philippines banks on charter flights to lift China arrivals

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THE Philippine Department of Tourism (DoT) is hoping to grow Chinese incentive arrivals by encouraging the creation of more charter flights from China.

Hundreds of Chinese incentive groups visited the Philippines last year, thanks to the availability of direct charter flights in the form of regular services that are operated for a year as well as short-term and ad hoc ones during China’s Golden Week holidays.

The uptrend is expected to continue this year, on the back of further plans for charter flights which include AirAsia Zest’s services to Kalibo from Tianjin, Chongqing and Chengdu, and to Puerto Princesa and Palawan from Shanghai, as well as AirPhil Express’ services to Kalibo from Hefei and Fuzhou, and to Cebu from Nanning.

Niel P Ballesteros, the officer-in-charge of the DoT in Shanghai and Beijing, said the tourism bureau is rooting for more charter flights from China because they “open up air access to and from destinations (lacking) regular flight services”. Philippine destinations that benefit from such arrangements are usually outside of Manila, the main gateway to the country, and which are not covered by bilateral air entitlements.

Currently, seven airlines serve routes between Manila and China. They are Philippine Airlines, Cebu Pacific, AirAsia, China Eastern, China Southern, Xiamen Air and Air China. With the availability of charter flights, more Chinese cities beyond Shanghai, Beijing and Guangdong are linked to Boracay and Cebu which are favoured by leisure and incentive travellers.

Illustrating the benefits of charter flights, Ballesteros said services to Kalibo in Boracay from 11 Chinese cities are generating 136 flights and 24,480 passengers every month, while those to Cebu from five Chinese cities are generating 34 flights and 10,976 passengers monthly.

In addition, eight chartered flights to Laoag in Ilocos Norte carry 1,280 pax monthly into the coastal destination.

Ballesteros said charter flights are “the most cost-efficient tool to generate arrivals”, and it “has an immediate big impact with measurable results”.

This is because charter flights usually have 98 per cent Chinese pax and 95 per cent load factor, he added.

He also noted that charters offer “ease of travel, convenience, more affordable tickets and tour programmes”.

CSR, unique stays top Chinese incentives requirements

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SITE’s Alicia Yao (far left) and Incentive Research Foundation’s Joost De Meyer share what’s trending in the Chinese incentive market at yesterday’s Spotlight on Incentive forum. The session was moderated by Kongres Magazine’s Robert Cotter (far right)

ORGANISERS of incentive programmes for Chinese companies are increasingly looking to incorporate meaningful corporate social responsibility (CSR) activities as well as unique accommodation options with a sense of place through sharing economy services in their programmes.

The observations were shared by Alicia Yao who sits on the SITE Global International board of directors and Joost De Meyer, trustee, Incentive Research Foundation at yesterday’s Spotlight on Incentive forum discussion at Shanghai Marriott Parkview.

Commenting on the rising desire for CSR elements within incentive programmes, Yao said it is a win-win situation for both the destination and corporate companies.

“Corporate companies use events for marketing and (for achieving) good public relations within and outside the organisation. For instance, there was a Guinness World Records’ entry set by 6,400 participants of the Tien incentive group when they cleaned up a beach in Nice, France within two hours. It generated over 1,100 international media reports.

“There was also a Chinese healthcare firm whose young staff volunteered to cook a Chinese meal for some impoverished children in a local childcare centre in South Africa. The activity turned out to be the best experience the incentive delegates had on the trip.”

Yao opined that incentive programmes that are purely for fun are becoming extinct as Chinese incentive organisers get smarter in the use of such activities. Besides looking for ways to offer incentive delegates a better destination experience and to give back to the host destination, companies are also using incentive trips to identify new business avenues.

Citing an example, Yao said the Chinese healthcare firm that went to South Africa also took the chance to explore opportunities to supply their products to local hospitals.

Meanwhile, the rising population of millennials in the workplace has led to growing demand for shared economy services, specifically in the accommodation space.

De Meyer said: “Millennials are looking for unique experiences, such as stays in boutique accommodation. Hotel (investors) are (responding by) building more (of such properties) to make sure (this segment of travellers) feel at home.”

Yao and De Meyer also shared that social media and the use of mobile apps are changing the way the Chinese work and live, so incentive houses must recognise this trend and respond with innovative ideas to engage this segment of incentive travellers.