Raini Hamdi picks some of the highlights of the year, as duly and diligently reported by TTG Asia and TTG Online network of reporters in the region
Deal of the year
Marriott International puts Starwood Hotels & Resorts out of its misery – and an end to months of speculation as to who would buy Starwood – by emerging the successful suitor. The deal, expected to be completed by mid-2016, will result in 1.1 million rooms, 5,500 hotels and 30 brands in the stable, probably enough to stand up to Airbnb’s claim of over 2 million accommodation listings and to break OTAs’ dominance, which pundits said was a reason for the merger. As we go to print, the industry is holding its breath as to who would emerge the buyer of Fairmont Hotels & Resorts, with AccorHotels currently at the top of the guesses. Hotel brokers and consultants, including Jones Lang LaSalle, expect further consolidation of the industry in the coming year.
Disrupter of the year
Without a doubt, it’s Airbnb this year. From Madrid (WTTC Global Summit) to Hong Kong (HICAP), no travel industry talkshop this year was complete without a discussion on Airbnb’s disruption to the way consumers buy accommodation. Its impact was starting to be felt by hotel chains and travel agencies in Asia. The CEO panel discussion at HICAP, for example, described Airbnb as “the Uber of the hotel industry”, pointing out it was not a generational thing and it was a threat that extended to luxury and business travel. The panel also contemplated how to compete or even embrace Airbnb – with no concrete solutions in sight.
Exit of the year
Kuoni Group shocked the industry with its announcement to exit the tour operating business, which was a key revenue earner for the company and was profitable. For many in the Far East to whom Kuoni had filled thousands of coach seats and roomnights, it was hard to imagine Kuoni no longer being a source but a B2B provider. The fact Kuoni was able to sell the units quickly (the European businesses went to Germany’s Der Touristik, while India/Hong Kong went to Thomas Cook India) showed there’s still a future for tour operating.
Unpopular fee of the year
Lufthansa Group’s move to slap a 16 euro (US$18) surcharge on all bookings for its airlines – Austrian Airlines, Brussels Airlines, Lufthansa and SWISS – made through intermediaries, was unpopular.
GDSs were up in arms over the fee, saying the move was not in the interest of either the end-traveller or the airline group and penalised both travel agencies and consumers.
Implemented in September, it hasn’t sent a flurry of copycat moves by other airlines. But these are early days; no doubt other carriers, eager to lower distribution fees and charging on with their direct-is-best policies, are watching closely.
Welcome of the year
Overall, 2015 was a boon year for visa relaxation by Asian countries. Japan did it and reaped huge windfalls, so much so it now has the happy problem of not having enough rooms, especially in Tokyo, to accommodate arrivals – although of course a huge part of its success was not just because of visa easing but because the yen devaluation made the country cheaper to visit. Indonesia rolled out visa-free entry, and Thailand introduced a multiple-entry tourist visa that allows foreign travellers unlimited border crossings for up to 60 days per stay within the visa validity. The year also saw Malaysia relaxing visa rulings.
Travel agency of the year
Hats off to Asia’s travel agencies that kept innovating through the year. You just have to turn to TTG Asia’s Innovators column to see that the Asian travel trade is thriving.
Among the ideas we love include Triip.me,a sharing economy space for tours and activities, the brainchild of Vietnam’s entrepreneur, Ha Lam, and travel agency on wheels, started by Asiatravel.com, which brings the retail shop to the doorsteps of people in the heartlands.
Even established companies such as Chan Brothers, which turned 50 years, kept innovating. Group managing director Anthony Chan said: “Many successful companies last for a long time because they were able to create new growth curve or the second curve. So we must look for this second curve to bring us forward to the next 50 years.”
Loss of the year
We’re still mourning the loss of our beloved photographer, Patrick Tan, who died on August 27 after a year-long battle with cancer.He was 53 years old.
This year also saw the passing away of Pakir Singh, father of Singapore’s hospitality training and a strong proponent of ASEAN regional tourism cooperation, on July 2 after battling Parkinson’s disease for many years.
And Susan Teng, a veteran who helped nurture the Singapore outbound and wellness market, died in April from cancer.
Bright spot of the year
What could be brighter than the Asian cruise industry which not only grew bigger this year in size but saw the announcement of initiatives that sealed its future growth.
Among the initiatives: Genting’s launch of a brand, Dream Cruises, specifically to cater to Asia’s premium cruise market. Then, a slew of international cruise lines also announced they were building new, made-for-Chinese ships. These include Carnival Corporation’s Carnival Cruise Lines, Aida Cruises and Princess Cruises, and Norwegian Cruise Line. And most recently, Indonesia’s lifting of sea cabotage – Christmas came early for the ASEAN cruise market.
Creep of the year
This goes to all the disasters and crises that happened this year: Hong Kong’s umbrella revolution, MERS in South Korea, earthquakes in Nepal and Sabah, bombing at Bangkok’s Erawan Shrine and, at the time of writing this, the Paris attacks and the Brussels lockdown. Everything from politics, economy and currency to Mother Nature, health disasters and terrorism – travel and tourism felt the brunt of it all this year.
This article was first published in TTG Asia, December 11, 2015 issue, on page 6. To read more, please view our digital edition or click here to subscribe.
