TO GUARANTEE passengers stranded by airline bankruptcy a safe return, IATA has formalised the long-standing custom of airlines offering cheap fares.

Under the new agreement, airlines flying to and from the EU will offer special “rescue fares” or discounted tickets for the traveller’s return trip, subject to availability.

Rescue fares are of a “nominal amount”, according to an IATA press release, and will be up for purchase for two weeks after the airline goes bankrupt. They are specifically targeted at passengers who are not covered by insurance in such situations.

IATA also pointed out that states responsible for licensing the bankrupt airline have the duty to disseminate information about rescue fares to stranded passengers.

Tony Tyler, director general and CEO of IATA, said at a round-table meeting with journalists in Brussels this week: “This agreement on rescue fares shows that the airline industry is more determined than ever to ensure reliable and consistently excellent customer service. Airlines have formalised a unique cooperation agreement that puts passenger needs first.”

The idea of a permanent statutory fund to aid stranded passengers has been discussed but estimated operational costs are too high to make it a viable option.

Said Tyler: “A compulsory levy on airlines to deal with repatriation would not serve anybody’s interest. We commend the European Commission for resisting this and for encouraging airlines to adopt this coordinated and customer-focused approach.”

THE e- and m-commerce markets in Singapore have been expanding explosively in the last few years but a fair number of travel businesses remain stuck in the dark ages.

Paypal revealed at the PayPal Insights – The Travel Edition – Southeast Asia event today that online travel purchases have soared by 38 per cent between 2011 and 2014, while mobile travel purchases grew at a rate almost twice that at 65 per cent.

Rahul Shinghal, country manager, South-east Asia, PayPal said: “The rise of mobile has been phenomenal. We have been talking about it for a few years but it has become mainstream now, with markets like China where mobile has become bigger than online.”

However, despite the growing m-commerce market, the report showed that many travel businesses in the South-east Asian region still have no mobile presence.

Such companies account for 49 per cent in Singapore, 46 per cent in Malaysia and 29 per cent in Thailand.

Meanwhile, online travel merchants such as Expedia are also seeing the same trends in the digital travel market and have been adapting to more mobile-savvy travellers.

David Yong, head of product, Expedia, said: “Roughly between one-quarter to one-third of our customers are coming to our site and doing transactions through mobile now. This was a channel that didn’t exist before and our mobile presence was non-existent three years ago.”

Yong revealed that the OTA would be enhancing its mobile itinerary product next year to include destination-based activity offers that customers can purchase at their point of arrival. The app also comes with push notifications in order to facilitate upselling opportunities.

Another key finding was the rise of spontaneous travel. About 54 per cent of those surveyed book trips within a week of deciding to travel and 38 per cent book tickets within a week of actual travel dates, as stated in PayPal’s The Digital Future of Travel report.

This last-minute booking trend is also evident within Expedia, said Yong, who shared that over 50 per cent of bookings on the company’s mobile app were for the same day.

TWO weeks after news surfaced of Singapore’s major outbound travel agencies opting out of next year’s NATAS Travel Fair, it was announced today they will instead be holding their own travel fair on the same dates.

Some 24 outbound travel agencies including key players like Chan Brothers Travel, Dynasty Travel, CTC Travel, and Nam Ho Travel, have confirmed their participation instead in the new Outbound Travel Fair which will be held at Marina Bay Sands from March 27 to 29 next year.

Speaking during a media conference this morning, Anthony Chan, group managing director of Chan Brothers Travel who represents the working committee of the new fair, said: “One of the key changes we have in the new travel fair is that admission is free because we want to attract people to visit us and the new central location will be very convenient too,” he explained.

Perry Neo, chairman of Dynasty Travel, who also represents the working committee, said: “We want to serve both business players and consumers better with this option, and whatever cost we save, we want to pass it on to the consumer.”

More outbound travel players will be invited to participate in the new fair, which will span across 17,000m2 or 70 per cent of the floor area of NATAS Travel Fair 2015.

Admission fees for the public and costs were among the reasons raised during the media conference for the breakaway from NATAS.

On the topic, Chan also cited a lack of transparency, booth rental costs and “lacklustre” publicity efforts for the show which have led to declining visitorship as pain points.

These issues were raised in a petition to NATAS in October this year, according to Chan, but NATAS’ reply did not address them adequately.

The association has not publicly commented on the pull-out.

However, Neo said: “NATAS is definitely a better platform for such travel shows and we are open for discussion with them…as long as they can take good care of all their members, we are ready to talk to them.”

The most recent NATAS fair was held in September and featured 1,226 booths and 165 exhibitors, drawing over 56,000 visitors during its three-day run.

SPANISH national tourism board Turespaña is running travel trade workshops in Shanghai and Beijing this week as a prelude to a new campaign for 2015 aimed at boosting the country’s reputation as a major European shopping destination.

China and Japan are two key longhaul markets that are being targeted in the Plan de Turismo de Compras 2015 that will kick-off with a specific shopping section at Fitur in Madrid in January.

Secretary of state for tourism, Isabel Borrego, said the public and private sectors will be collaborating in the campaign, which also intends to increase tourist spending and extend visitor flows throughout the year and around the country.

Other target markets include Russia, the US, Mexico, Brazil and the Persian Gulf countries.

The plan involves 18 specific measures including speeding up visa procedures and tax refunds for shopping.

The “attractive” plan was welcomed by Mar Sarda, founder and director of Madrid Shopping Tour, which acts as a platform for promoting commerce as part of tourism.

“The Fitur Shopping event will be the first of its kind in the world, and I will be among those promoting it in China this coming week to start stimulating interest in the Shopping Plan.”

SINGAPORE-based Naumi Hospitality has purchased the Hotel Grand Chancellor Auckland Airport, marking the first time the Naumi brand travels overseas.

The 2ha, 193-room property in the Auckland Airport Precinct is the group’s maiden entry into the New Zealand market and will be shut for an extensive renovation before reopening under the Naumi brand in 4Q2015.

Besides being the group’s first overseas property, the purchase is the only hotel with major meeting space for MICE events of up to 200 pax.

The refurbished hotel will offer hotel rooms starting at 27m² and all rooms will come with a balcony. First floor rooms have gardens attached.

Naumi Hospitality is a part of The Hind Group, who also owns and operates Ovolo Hotels in Hong Kong and Australia.

GOLDEN Eagle Ballooning took to the skies over Bagan last weekend with the official launch of its hot air balloon operations.

A subsidiary of Yangon-based Golden Express Tours, the ballooning company intends to meet demand for such services in Bagan, said Golden Eagle Ballooning general manager, Kaung Set Zaw at the launch last week.

The company has three hot air balloons with a total capacity of 24 passengers, and will run one sunrise flight a day between 35 and 60 minutes dependent on weather conditions. A ride costs US$370 per person.

Kang Set Zaw said: “We will start operating in Bagan for this season from November 23, 2014 to March 3, 2015. We will expand our operations to other destinations in Myanmar, probably Mandalay and Inle Lake next year.”

“Our balloons are manufactured by Ultramagic from Spain, one of the best and most well-known balloon manufacturers in the world and approved by European Aviation Safety Agency…The safety and satisfaction of clients is our highest priority,” he explained.

The company has hired three Swiss pilots and one chief pilot from Spain to drive the balloons.

Two ballooning companies are already in operation in Bagan, namely Balloons over Bagan and Oriental Ballooning, and the activity is also gaining popularity at Mandalay and Inle Lake.

MALAYSIAN tour operators both inbound and outbound are strategising how to make the most of AirAsia’s ASEAN Pass announced last week, saying the credit-based system presents potential to upsell and boost travel around South-east Asia.

Adam Kamal, deputy president 2 of the Malaysian Inbound Tourism and CEO of Rakyat Travel, said: “We anticipate this pass will attract budget travellers, such as backpackers and youth travellers, hence we will introduce packages combining three or four countries for this segment.”

The Pass is also expected to be a hit among travellers from medium to longhaul markets, especially bargain hunters who can now cover several countries on a single pass.

John Chan, general manager at NCR Travel & Tours, pointed out: “The savings on flights can be used on the ground. This ASEAN Pass will be an opportunity for us to upsell, and to combine Malaysia with other destinations.”

Ally Bhoonee, executive director at World Avenues, also expects ASEAN nationals to be the main beneficiaries since no visas are required, except to Myanmar. “It is like getting a free ticket to Malaysia when travellers purchase this pass. It will attract more (South-east Asian) arrivals into Malaysia, and inbound travel consultants will benefit for more requests for their services.”

But he added: “On the downside, it may also entail shorter stays in Malaysia as travellers will want to visit other countries within ASEAN as well.”

Echoing Ally’s sentiments, Adam also called for the introduction of the single ASEAN Visa for non-ASEAN nationals “otherwise this initiative will only benefit ASEAN member countries”.

The AirAsia ASEAN Pass is expected to be rolled out in January next year.

According to Malaysia’s national news agency Bernama, the pass eliminates the hassle of dealing with foreign exchange rates as it stores credit and acts as a single currency.

Routes are valued according to the credits. The Pass comes in two options – a one-month pass for 10 credits at a flat rate of RM500 (US$149), and a 45-day pass for 20 credits worth RM900 – both excluding airport charges.

UPBEAT about Asia-Pacific’s business aviation market, UAS International Trip Support has started operations at its new regional headquarters in Hong Kong, and will open its Beijing office today.

UAS co-founder and executive director, Mohammed Husary, commented that Hong Kong is the undisputed destination of choice for the company’s Asia-Pacific headquarters due to its strategic location and all-rounded transportation and logistics network.

The Hong Kong headquarters’ establishment represents the corporation’s first step in penetrating the Greater China market. Its India office is slated to open shortly after.

Asia-Pacific constitutes the fastest-growing market where some 700 out of its 1,400 clients are based, with the China market burgeoning rapidly.

Through its new headquarters, UAS will leverage Hong Kong’s status as a global financial and aviation hub to expand its network. The Hong Kong team will be available 24/7, offering services in English, Mandarin and Cantonese.

Mohammed Husary further explained that the higher fees, inadequate infrastructure and cumbersome process to obtain landing permits often associated with China’s market will not dampen the growth of and demand for international aviation trip support.

He is also keen to join relevant associations as well as exchange views with industry players to work towards improving the regulatory and business environment in China.

Besides Hong Kong, UAS also has headquarters located in Houston, Johannesburg and Dubai.

Established in 2000, UAS provides global trip support services to private and corporate passengers as well as cargo, royal and presidential flights.

Article by Yvonne Chang. Translated by Ong Yanchun from the original TTG China e-Daily, November 21, 2014, article.