BASED on a Supreme Court order issued on January 23, India’s Directorate General of Civil Aviation (DGCA) has banned all airlines from charging passengers any transaction fees, a move that has been lambasted by airline ticketing companies in the country.

SpiceJet and IndiGo have since removed their transaction fees following the order. Transaction fees were introduced when airlines stopped paying commission to IATA-affiliated ticketing companies.

Subhash Goyal, president, Indian Association of Tour Operators, said: “We will discuss the issue with various travel (consultant) associations. I think we will have to go to court. If there are no airline commissions and no transaction fees, how will we survive?”

Rajendra Churiwala, director – eastern region, IATA Agents Association of India, agreed: “We have to charge a transaction fee since airline commissions to (airline ticketing companies) have been abolished. We cannot be expected to run a business without any profit.”

Added Rakesh Lamba, director of New Delhi-based Prakriti Holidays: “With no margins on flight ticketing and constantly reducing profits in the offline travel space, the smaller companies will fold up and go bankrupt. The DGCA must accept that there are many more small- and medium-sized travel companies than large-sized ones. It is a question of survival for us now.”

The airlines have approached the Delhi High Court to appeal against the DGCA order but have been directed to air their grievances with the Ministry of Civil Aviation instead.

DRIVING air and ground savings continues to be the most important consideration for travel buyers in 2013, according to Carlson Wagonlit Travel’s (CWT) Travel Management Priorities report based on an international survey of nearly 800 travel managers. Their other top concerns were improving traveller compliance and optimising hotel spend.

Similar to survey results in 2012, travel managers prefer to focus on areas representing the greatest savings opportunities rather than those associated with the traveller experience.

“The challenging economic climate means that there is continued pressure on buyers to both reduce costs and manage travel in a more cost-effective way,” said Christophe Renard, CWT vice president marketing, communications and business intelligence.

“As air and ground travel represents the majority of spend within a travel programme, it is not surprising that it is the number one priority for most travel buyers, even though it is an area that is already well advanced in terms of optimisation.”

However, cost-saving measures vary from region to region, with travel managers in Asia-Pacific intending to concentrate on communicating and providing training on the travel policy and empowering travel counsellors to enforce rules; tightening air and ground travel policy while finding the right balance between negotiated and restricted fares, and exploring the use of LCCs; mandating preferred booking channels and consolidating hotel spend on fewer properties to leverage larger volumes in negotiations; and increasing the scope of online booking tools.

The report also highlighted the changes and challenges that travel buyers are likely to see in the year ahead. CWT also predicted that global inflation will hit travel prices modestly with increases of less than five per cent, while travel managers will also need to monitor programmes and suppliers closely, paying particular attention to areas such as rising ancillary fees and fuel surcharges.

Meanwhile, changes in technology will affect the travel process with consumer-influenced technology increasingly finding its way into corporate travel through services such as travel review sites and mobile apps specifically designed for business travellers.

Risk management will also play a key role as companies send travellers to increasingly high risk areas, and duty of care during business travel becomes an integral part of a company’s legal responsibility to its employees.

FOLLOWING the launch of its first hotel residence, the 313-key Capri by Fraser, Changi City/Singapore, Frasers Hospitality will take the brand to Vietnam and Malaysia.

The 126-apartment Capri by Fraser, Ho Chi Minh City will open in March 2013, while the 240-apartment Capri by Fraser, Kuala Lumpur will be launched in November 2013. The group is also in the process of finalising plans for more Capri by Fraser properties in Asia-Pacific and Europe.

Said Choe Peng Sum, CEO, Frasers Hospitality: “The positive international response that Capri by Fraser has generated within a relatively short span of time is a strong indication that there is a demand for a hotel residence brand that is well positioned to meet the 24×7 work-life balance needs of the rapidly growing e-generation market sector.”

Part of the Changi City integrated development, Capri by Fraser, Changi City/Singapore is located near the Singapore Expo Convention and Exhibition Centre. The hotel residence has been attracting strong corporate and MICE bookings, with occupancy averaging more than 80 per cent since its soft opening in September 2012.

Capri by Fraser, Changi City/Singapore offers high-tech amenities such as iPad-activated check-ins, e-concierge and e-print services, as well as complimentary high-speed Wi-Fi Internet connectivity throughout the property.

Meeting and conference facilities feature interactive touchscreen panels and integrated whiteboard projector capabilities, while other facilities include a swimming pool, a gym, an all-day deli, in-room kitchenettes and launderettes equipped with Xbox Kinect and Wii on each floor.

LUXURY cruise line Silversea has launched a round-trip seven-day cruise from Singapore aboard the 382-guest Silver Shadow.

Sailing from March 15-22, 2013, Silver Shadow’s ports of include Phuket, Penang, Port Klang, Malacca and Belawan near Medan in Sumatra.

A range of tours are available throughout the voyage, from visiting a tea plantation in Malacca to exploring Phuket’s Phang Nga Bay by speedboat.

All-inclusive fares start from US$3,050 per person, double occupancy, and include butler service; gourmet meals; complimentary wines, champagne and spirits; and all gratuities.

AIR China will commence four weekly Beijing-Geneva services using the Airbus A330-200 from May 7, 2013, becoming the first carrier to offer direct connections between the two cities.

The route will become East Asia’s first direct route to Geneva, offering an additional flight option to travellers to and from Tokyo, Seoul, Hong Kong, Bangkok and Manila.

Air China’s president, Cai Jianjiang, said: “The new Beijing-Geneva service is a worthy addition to Air China’s extensive network serving Europe.”

Using the flight numbers of CA861/862, the flight will leave Beijing at 13.30 and arrive at 18.25 in Geneva on the same day. The return flight will take off from Geneva at 20.25 and arrive at Beijing at 12.55 the following day.

AIRASIA has unveiled its strategic five-year business review with an eye to further grow its dominance in the Asian region.

As Malaysia has become “a cash machine”, the management will turn its focus to other core markets in Thailand and Indonesia, which are expected to generate similar profits to Malaysia in the future, according to group CEO Tony Fernandes.

“The other focus is to develop our new entities in Philippines and Japan whereby in terms of LCC penetration, they are still at their infancy and there is utmost growth potential,” he said.

“India is an exciting market, and I have been overwhelmed with the developments of the country recently in terms of promoting air travel. We will continue to explore opportunities there but I believe this market offers the most growth potential in terms of travel.”

Whilst other Asian countries like Vietnam, Cambodia, Laos, Brunei, Myanmar and South Korea seem attractive, AirAsia will focus on the group’s existing operations that offer bigger domestic alternatives and with larger populations. AirAsia will not proceed with any venture in Singapore in the foreseeable future too, Fernandes revealed, citing excess capacity out of the city-state.

AirAsia recorded a strong performance during the fourth quarter and 2013 is expected to be better in load factors and yields, he reported. The group will announce its full-year results in February.

The company has also placed an order of 475 aircraft, of which 114 have been delivered.

CATHAY Pacific is set to launch the new Premium Economy Class on its Hong Kong-Mumbai service from March, and will also ramp up frequency on this route from seven to 10 weekly flights from April 2.

The Premium Economy Class has already been introduced on flights to Chennai and Delhi in 2012. The current weekly flights between Hong Kong and Mumbai are operated on a Boeing 747-400 aircraft with a four-class configuration, while the three additional flights will be operated on a three-class, Airbus A330-300 aircraft.

“Cathay Pacific will be the first East-bound airline to offer this class from Mumbai,” said Charlie Stewart-Cox, general manager-South Asia, Middle East & Africa, Cathay Pacific Airways.

Rita Dhanwatay, director of Pune-based Nikita Travel Solutions, said: “The addition of non-stop seat capacity to Hong Kong is a positive move as the destination is busy for both business and leisure.”

Rakesh Raicar, regional sales & marketing manager-South Asia, Cathay Pacific Airways, added: “Travel (consultants) and tour operators form the majority of the airline’s distribution channel in India and therefore, they are an important part of our marketing and promotional activities. This year, we plan to engage them through promotional fares and trade familiarisation trips.”

Meanwhile, sister airline Dragonair has also introduced New Business Class and New Economy Class cabins, which adopt the same designs used by Cathay Pacific for its new Regional Business Class and longhaul Economy Class products, allowing for a more consistent and harmonious inflight experience for passengers connecting between the two airlines at the Hong Kong hub.

Together, Cathay Pacific and Dragonair operate 46 weekly flights from six cities in India.