HOMEGROWN hotel chain, Cinnamon Hotels & Resorts, is rebranding and setting its sights in markets beyond Sri Lanka.

Parent company John Keells Holdings (JKH) is bringing two brands, Cinnamon and sister brand Chaya, under the Cinnamon umbrella in the next six months, and will place each property in one of four categories.

They are the uber luxury boutique collection Cinnamon White, five-star collection Cinnamon Luxury, four-star collection Cinnamon Signature and lean luxury collection Cinnamon Red.

Ajit Gunewardene, deputy chairman of JKH, told TTG Asia e-Daily: “We are ready to strengthen the brand and take it overseas.”

The group has spent over US$1 million to build the brand in Sri Lanka and plans to double its existing 2,200 keys in five years’ time. He said JKH has been working on a new brand strategy for the past three to five years and invested in integrated software and management systems as well as a CRM system, which makes overseas expansion easier.

“Indian tourism is growing while the Chinese are travelling in large numbers. There is a lot of shorthaul tourism in the region. We believe we can push our brand out on that surge,” Gunewardene added.

The group’s current projects include the landmark Cinnamon Life integrated development in Colombo to be ready by 2018. It will include an 800-room five-star hotel, two apartment towers and one office tower, a mall and a conference centre that can accommodate 5,000 delegates.

Another is a five-star, 120-room property in the central hill station of Nuwara Eliya for which construction will start later this year.

WHILE Go Vacation has every reason to smile at Der Touristik’s acquisition of Kuoni’s European businesses, other Asians DMCs ponder if they will end up with the scraps of Der’s much-enlarged pie – if at all.

Kuoni-owned Asian Trails, for instance, stands to lose Kuoni accounts to Go Vacation, which is owned by Der’s parent, Rewe. Tour East Singapore also handles Kuoni accounts in some parts of Asia, especially Singapore. Although Go Vacation does not have offices other than in Thailand and Indonesia, an expanded pie might see its expansion elsewhere.

These are early days yet, and DMCs TTG Asia e-Daily contacted prefer to look on the bright side.

Said Asian Trails CEO, Laurent Kuenzle: “Since Rewe only has offices in two countries in South-east Asia, I believe there will be ample opportunities for us to look at least after parts of the Kuoni business.

“We are geared to continue to look after the Kuoni specialists everywhere in South-east Asia since, with our 33 offices in eight countries, we cover the entire region as well as China without intermediaries. This change will also create new opportunities and we will be ready for them.”

Judy Lum, group vice president sales & marketing of Tour East Singapore, hopes it will be business as usual as the DMC has served Kuoni well in Singapore for over 30 years. She added it would be an opportunity for Tour East if Der decides to review the benefits of a consolidated groundhandling tender in Asia.

The entire Kuoni European business Der is purchasing is worth two billion euros in revenue from 1.5 million customers, according to 2014 figures.

When the transaction is complete, Der, the second-largest German tour operator after Tui, will be a leading pan-European travel company with source markets in Germany, Switzerland, Austria, the UK, Scandinavia, the Czech Republic, Poland, Slovakia and Hungary.

This totals a whopping 7.7 million customers and boosts revenue from 4.9 billion euros to seven billion euros, also according to 2014 data.

Chris Bailey, senior vice president – sales & marketing, Centara Hotels & Resorts, said: “I think it’s a great move – it makes a key partner and very established operator in Germany a much wider pan-European partner. There are economies in doing business for both sides.”

Following the acquisition, Der will add Kuoni, Apollo (Scandinavia) and a large number of specialists to its worldwide brands, the most important ones for Asia of which include Dertour, Meier’s Weltreisen, Jahn Reisen, ITS and ADAC Reisen.

For some, the winners and losers debate still extend to the sale itself, with several sources telling TTG Asia e-Daily the real winner is Der.

“I believe there is money to be made in retail and wholesale tourism also out of Europe,” a source who declined to be named said adamantly.

Meanwhile, Hotelplan Switzerland, which was keen to grab Kuoni Switzerland, said it regrets Kuoni being sold to a foreign company. But CEO Thomas Stirnimann added “we were only interested to take over Kuoni Switzerland and obviously the package deal was more appealing”.

Stirnimann does not expect a bigger rivalry between Hotelplan and a Kuoni under Der, saying all the German tour operators are already present in the market as it is “and, I might add, that we are all competitive and will be”.

CLINCHING its 11th Holiday Inn hotel in Australia is InterContinental Hotels Group (IHG), which will open the property later this year.

The hotel company signed a management agreement with Taisei Kanko Australia for the Holiday Inn Cairns Harbourside.

Currently the Mercure Cairns Harbourside, the 173-key property will undergo renovation before reopening as a Holiday Inn.

The property is located at the northern end of The Esplanade in Cairns, close to Cairns Airport, and a 10-minute walk from the city’s CBD.

Families will continue to benefit from the Holiday Inn brand’s Kids Eat & Stay Free programme, offering children all-inclusive meals during their stay. Guests can also make use of the hotel’s pool and spa, or unwind with signature cocktails from IHG’s BAR150 programme, launched to mark 150 years of mixology.

Karin Sheppard, COO, Australasia, Japan and Korea & Asia, Middle East and Africa franchising, IHG, said in a statement: “It is an exciting time for IHG as we work with our partners to grow our brands in new markets – our upcoming Crowne Plaza in Tasmania and InterContinental in Perth are great examples of that.

“Domestic travel continues to pick up and as the gateway to one of the world’s top tourist attractions, Cairns is a key city for us in Australia.”

SPAIN’S Meliá Hotels International will next year take on its eighth hotel in China and first in Shanghai, located in the city’s Hongqiao district.

Meliá Shanghai will be part of a new urban complex called Lido Way, developed by the Shanghai Golden United Construction & Development, which will also include shopping and entertainment centres and up-market housing.

As well as offering convenient connections with the Hongqiao airport and train station, the hotel will be close to the new national convention and exhibition centre.

The 190-room hotel will offer two restaurants, meetings rooms and an executive lounge.

“Hongqiao is expected to become the new centre for West Shanghai and the main business nucleus for the Yangtze delta region,” said a Meliá spokesperson. “With this first hotel in Shanghai, the objective is to keep pushing (our) presence in China and the rest of the Asia-Pacific region.”

Meliá opened an office in Shanghai in 2011, aiming to promote brand awareness while the company expanded in China, and build up links with Chinese groups.

*UPDATED on June 23, 2015 with comments from Thomas Stirnimann, CEO of Hotelplan

AS SPECULATED, Der Touristik, the travel division of Rewe Group, is acquiring all the tour operators, specialists and travel agencies run by Kuoni Group’s units in Switzerland, the UK, Scandinavia/Finland and Benelux.

The Kuoni Group announced this today in a statement highlighting that the Kuoni, Apollo and specialist brands will remain in the market. Employees – some 2,350 – and offices are being taken over and business activities continue as usual.

The two parties have agreed not to disclose the purchase price or contract details. The acquisition is subject to the approval by the relevant competition authorities in the EU and Switzerland. The transaction is expected to complete in the 3Q2015.

In 2014, the European tour operating activities that have been acquired generated turnover of around two billion Swiss francs (US$2.2 billion).

“With this acquisition Der Touristik is positioning itself as a leading pan-European travel company. Der Touristik sees the acquisition as an ideal addition to its sales operation, giving it new competitive advantages in the beach holiday business as well as in international purchasing of flight, hotel and other customer services,” said the Kuoni statement.

Tour operating activities will continue to trade under their existing brands. Rewe Group is acquiring the right to use the Kuoni brand in Switzerland and the UK, while Kuoni Group remains the owner of the Kuoni brand. Rewe Group is taking full ownership of the Apollo brand in Scandinavia/Finland and of all the specialist brands.

Kuoni intends to complete its search for a buyer for the remaining tour operating activities in India and Hong Kong/China during the course of 2015.

Rewe and Hotelplan Switzerland were two concrete buyers Kuoni Group had for its European businesses. The sale conclusion was faster than expected (see View From the Top with Kuoni Group CEO, Peter Meier, TTG Asia, May 15, 2015).

Contacted by TTG Asia e-Daily, Thomas Stirnimann, CEO of Hotelplan, said: “Well, we regret, that Kuoni has been sold to a foreign company, but we were only interested to take over Kuoni Switzerland and obviously the package deal was more appealing.”

He did not foresee a bigger competition with a Kuoni Switzerland under Rewe. “All German operators are already present including Rewe and, I might add, that we are all competitive and will be,” he said.

ALL passengers on Silversea cruises will be able to stay in touch with their friends and family even when on board a ship next year, when the cruise operator launches free Wi-Fi services.

Silversea said today in a press release that all guests can enjoy at least one hour of free Wi-Fi a day in suites and public spaces, with unlimited free Wi-Fi available for suite guests on its ocean ships and those on certain expedition ships.

Specifically, guests in the following lodgings will be able to connect to the Internet any time: Silver Explorer (Owner’s, Grand, Silver, Medallion, and Expedition suites); Silver Galapagos (Silver, Deluxe Veranda, and Veranda suites); and Silver Discoverer (Medallion, Veranda, and Vista suites).

“For over 20 years, Silversea has set the course in defining the all-inclusive, ultra-luxury cruise experience. By offering free Wi-Fi to all guests regardless of the suite reserved, Silversea is once again setting the standard for all-inclusive luxury,” said Steve Odell, president of Silversea for Europe, Middle East, Africa and Asia-Pacific.

“Because we know how important it is for travellers to stay informed and connected, we’re delighted to enhance the all-inclusive Silversea experience with this new benefit.”

Passengers can also use the computers in the Internet cafes on all ocean ships and Silver Explorer.

ASEAN governments should remove travel restrictions on their own citizens and other ASEAN members, said president of the Federation of ASEAN Travel Associations (FATA), Aung Myat Khaw.

“At the very least, ASEAN nationals should be allowed to enter any member country without visas for a minimum stay of 14 days,” he said, calling this “crucial” in the realisation of the ASEAN Economic Community by end this year.

Also the president of the Union Myanmar Travel Association, Aung Myat Khaw was speaking at the FATA meeting in Kuala Lumpur where members discussed the slowdown of tourists from western markets as well as the importance of growth in regional travel, especially from China, Japan and South Korea.

He said: “It is imperative that all ASEAN countries drop visa requirements for visitors from these three East Asian countries before more of their nationals travel to other parts of the world and bypass ASEAN destinations altogether.”

Aung Myat Khaw emphasised that ASEAN governments should realise that tourist arrivals are not a given growth but requires continuous promotion. “However, such efforts would be ineffective if little effort was made to facilitate entry of visitors, especially in removing visa requirements. It is a bother to spend time and money applying for a visa and many high-spending tourists often travel at short notice, and would rather visit countries that do not require visas.”

Moreover, tourism brings an influx of businesses and investments into the country, said Hamzah Rahmat, FATA secretary general and president of MATTA.

“A government that insists on imposing visas does not want to see the potential tourism can bring for the economy,” he said.

STARTING off as a vacation package for Middle Eastern travellers over the Eid holidays, the Department of Tourism’s (DoT) family packages are now expanding in scope to include more markets, travel trade participation and customised dates and itineraries.

In its current form, the Kids Go Free packages bundle accommodation, transfers, and basic tours with two children travelling free of charge.

Stalin Samson, DoT’s desk officer for the Middle East, told TTG Asia e-Daily the packages will be extended “immediately” to Thailand, Indonesia, Vietnam and India and later European countries including Russia, France and Spain.

The trade is continuing to show support, with Philippine Airlines and Cebu Pacific Air amenable to offering special fares, said Samson.

He added that over 10 local travel agencies have signed up to offer the family packages and the number is set to grow as the DoT continues to receive enquiries, while talks with travel consultants and India and Russia have also yielded expressions of interest.

Travel consultants that TTG Asia e-Daily spoke to are reporting good demand for the packages.

Angel Ramos Bognot, president and managing director, Afro Asian Travel and Tours, began selling it in 2013 and said two families from the Middle East have just confirmed joining the programme in July.

To make travel to the Philippines a more hassle-free experience, Bognot suggested fast-tracking immigration procedures at the airport for the convenience of longhaul travellers.

Anne Elizabeth Angeles, sales manager for inbound at Marsman Drysdale Travel, said there is potential in the family and Muslim travel market for the Philippines, and she will continue to court these markets by email promotions, participation in tradeshows and liaising with her counterparts abroad.