TTG Asia
Asia/Singapore Saturday, 14th February 2026
Page 2140

Hungry JTBs out there

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ASIA’S fragmented travel industry is witnessing a period of consolidation, mirroring what occurred in the West years ago, said trade observers, who described one of the region’s latest transactions – JTB Group’s purchase of six Tour East Group offices – as a “natural progression”.

Targeted for completion by year-end, the acquisition would help JTB grow its non-Japanese inbound business, JTB global inbound general manager Dennis Law told TTG-ITB Asia Daily.

JTB will take over Holiday Tours & Travel’s stake in Tour East’s offices in Singapore, Australia, Hong Kong, Indonesia, Malaysia and Thailand, the last of which is still being negotiated.

Earlier this year, JTB also bought Dynasty Travel Singapore and, in 2010, Star Holiday Mart and Singapore Alive.

Manuel Ferrer, founding partner & chairman, QOS Consultancy, who will be moderating a panel on consolidation today as part of ITB Asia Clinics, reasoned that with the exception of Japan and South Korea, the travel market in Asia is still very fragmented and not mature, similar to North America or Europe 15 or 20 years ago. At work are also huge forces such as technology, transparency, client preferences, emerging middle classes and young affluent Asians, necessitating major changes in the business.

“Over the past 10 years, big global players have entered or grown further in Asia…It is understandable that big regional players like JTB want to compete (directly) with them. Maybe, in a few years’ time, in a globalised world, JTB could move the battlefield to Europe and North America, and compete there too,” Ferrer predicted.

Nicholas Mulley, COO,
Destination Asia, also saw the move as “a natural progression for (competitors) to acquire companies across the region to further expand their footprint, product and service offerings”.

But big doesn’t always mean best. Said Maarten Groeneveld, incoming CEO, Diethelm Travel Group: “Of course it could be beneficial to own the entire value chain. But one plus one does not always make one very big one. In our view consolidation is good – it gives room for more specialised agencies to grow in niche markets where large corporations cannot deliver.”

Ferrer agreed: “In reality, it doesn’t matter whether you are big or small. What is important is to have a good strategy and to serve your clients well…If I may guess, I would say (the losers will be) those who fail to adjust and deliver to the Asian new middle classes and/or to the Asian young generation.”

Read more stories in TTG-ITB Asia Daily

PAL adds two new routes to Japan via Cebu

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FLAG carrier Philippine Airlines (PAL) will expand routes to Japan with the opening of new services to Osaka and Nagoya via Cebu.

Effective December 19, PAL will begin four-weekly flights (Monday, Thursday, Friday and Sunday) between Cebu and Osaka on PR 410.

The following day, the airline will begin three-weekly flights (Tuesday, Wednesday and Sunday) between Cebu and Nagoya on PR 480.

The new routes will bring to 67 the total number of PAL flights to Japan per week.

At present, PAL operates from Cebu 14 weekly flights to Narita (Tokyo).

The launching of the new air services is PAL’s response to strong demand for new routes to Japan, regarded as the third biggest source of visitor arrivals to the country.

Data from the Department of Tourism shows that in January-August 2014, arrivals from Japan had reached 310, 901, a year-on-year increase of about six per cent.

India to manufacture commercial aircraft

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INDIA is well set to manufacture its own commercial aircraft, the prototype for which is currently under preparation.

G Ashok Kumar, joint secretary, Ministry of Civil Aviation, revealed at a press conference in Hyderabad early this month: “The specifications for the prototype of the aircraft will be revealed in four months.

“The Indian government will partner with private sector companies on this venture.”

The move comes 23 years after the idea of India producing its own commercial aircraft was first mooted.

It also signals the continuation of the National Civil Aircraft Development programme, which was started in 1991 but came to a standstill when India faced sanctions from the US for testing the nuclear bomb in 1998.

Russia, which was then collaborating with India in the design of the aircraft, also withdrew from the project.

Kumar added that the aircraft will not be airborne before 2021.

An India-made aircraft is expected to drastically reduce the cost of travel for Indians as well as cut down import costs and probably open an avenue for export of airplanes to commercial airline companies.

German trade seeks partnerships to expand China, Hong Kong markets

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SIX major German travel operators descended on Guangzhou and Hong Kong last week to meet with a selected group of travel consultants.

Organised by German National Tourist Board (GNTB), the exclusive meetings with CEO/manager-only level of travel operators aims to inject a new luxury theme into the market and to explore new segments, said GNTB director for destination management, Constanze Hilgers.

“In my decade-long experience handling the China market, I have seen a shift from mass market to FIT luxury. Guangzhou has demonstrated a dynamic Chinese tourism demand of a more mature and sophisticated nature which is different from North China,” said Hilgers.

Guangzhou issued 40,000 visas last year and expects this number to grow 20 per cent this year. From January to July 2014, visitor numbers from China and Hong Kong had surged 15.8 per cent.

Visa application procedure in China was improved early this year, shortening the wait to about five days from 10.

Managing director of Dresden Marketing Board and chairwoman of Magic Cities Germany, Dr Bettina Bunge, notes that visas for Germany are vital for both groups and FITs.

“I believe the ease of visa application is not the main reason for people to come to Germany. But it takes a shorter time now and people don’t have to plan it so well in advance, especially when travel behaviour changes, as with shorter and more flexible trips.

“If the visa application procedure is less complicated, it may also reach more potential visitors. This is especially true when we are in major competition with other countries.”

Meanwhile, GNTB also launched the Smart Luxury theme, which boasts a dedicated website (http://www.germany.travel/en/ms/smart-luxury/home) showcasing content like Michelin-star restaurants, five-star hotels and exclusive travel.

Hilgers explained: “It’s not super high-end but rather it’s about quality products for ‘smart’ shoppers. In addition to the Chinese version, we’ll also roll it out in Brazilian, Russian and Indian languages.

Bangkok Airways starts four new routes from Chiang Mai

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BANGKOK Airways has announced the launch of four new non-stop services from Chiang Mai to Phuket, Udon Thani, as well as Myanmar’s Mandalay and Yangon, effective October 2014.

Ariya Prasarttong-Osoth, vice president – sales of Bangkok Airways, said: “We foresee Chiang Mai is another important hub for Thailand’s tourism industry, a major commercial city in the northern region and also a gateway to Indochina.

“By utilising Chaing Mai International Airport as another hub, it will enhance Bangkok Airways’ ability to support the growing demand for air travel when the AEC takes place in 2015.

“It will also allow us to provide better flight connections for our passengers who wish to continue their travel to the Northeastern and Southern part of Thailand as well as to the neighboring country Myanmar without having to fly back to Suvarnabhumi Airport to connect to those destinations.”

From October 26, there will be two daily flights to Udon Thani via an ATR72-500 aircraft with seat capacity of 70, one daily flight to Phuket via an Airbus A320 aircraft with seat capacity of 162, and three-weekly flights to Mandalay via an ATR72-500 aircraft with seat capacity of 70.

From October 27, Yangon will receive four-weekly flights via an ATR72-500 aircraft with seat capacity of 70.

The airline is currently offering special online promotion fares on the four new routes. Chiang Mai–Phuket (single trip) starts from 2,290 baht (US$71); Chiang Mai-Udon Thani (single trip) starts from 1,590 baht; and Chiang Mai-Mandalay (single trip) starts from 1,445 baht (fares exclude taxes and surcharges).

StayWell Hospitality to introduce two brands in 2015

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STAYWELL Hospitality Group has plans to expand its current portfolio with two more brands in the second half of 2015. The new brands will operate in the luxury and lifestyle space.

Speaking to TTG Asia e-Daily, Simon Wan, the group’s CEO and managing director said: “The deluxe brand can be compared to a Ritz Carlton while the lifestyle brand can be compared to a W.

“The UK and China will be the two markets where we will launch our new brands first before moving to other key markets like India. We see India as a big market for these brands.”

Mumbai and Sri Lanka are currently being considered as the destinations of choice to set up the company’s new brands.

“India, China and South-east Asian countries like Thailand, Vietnam, Malaysia, Myanmar, and Cambodia will be at the centrestage of our expansion plans. In fact in India where we have signed nine management contracts with two operational hotels, our plan is to sign 30 contracts by 2017,” said Wan.

Rohit Vig, managing director for India of the hotel group, said: “In the next six months, we are opening five more properties in India, two Park Regis in Goa and Jaipur and three Leisure Inn hotels in Thane, Mumbai and Hyderabad.”

StayWell currently operates two brands, mid-scale Leisure Inn and up-scale Park Regis. The company manages 34 properties in markets like Australia, Singapore and Dubai among others and has plans to increase this number to 100 by 2017.

Best Western takes luxury to Malaysia’s Genting Highlands

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BEST Western International has reached into Malaysia further with the management of the Best Western Premier Ion Delemen, Genting Highlands, currently under construction and will open in 1Q2016.

The 500-room luxury property is nestled amidst jungle-clad hills, and will offer an array of facilities including the Sky Café, a rooftop deck, infinity-edged swimming pool, spa, fitness centre, sauna, multi-purpose events hall, restaurant and children’s playground.

Guests will also be able to enjoy golf and horse riding, as well as retail and entertainment offerings nearby, which will soon include the world’s first 20th Century Fox theme park.

Best Western International currently operates four hotels in Malaysia, and expects to increase its portfolio to at least 16 hotels in the country in the next three years.

Meliá secures Bintan site

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MELIÁ Hotels International will open the 249-key Gran Meliá Bintan in 2017, which will comprise a resort and residences.

The hotel company last week signed a contract with owning company Berakit Resorts in Jakarta to operate the property, which will be the first to open in Berakit, eastern Bintan. It marks the second Gran Meliá hotel in Indonesia after Gran Meliá Jakarta that was launched 20 years ago.

Berakit is a new coastal resort enclave, which will see other international brand luxury hotels joining Gran Meliá Bintan in future.

On the timing and choice of destination, Meliá Hotels International CEO, Gabriel Escarrer, said: “(While) Indonesia has a lot of potential as a high-end destination among destinations worldwide, to have a Gran Meliá there is not something easy because you need to find the right location with ready infrastructure, and the right partner. We have found both now.

“Bintan has a lot to offer. It has the proximity to Singapore, Malaysia, China, some the key feeder markets, and the potential to grow the European arrivals is there.”

Michael Yong, COO of Berakit Resorts, said: “A new Berakit Ferry Terminal is under construction near the property and will open in 2016 for direct services from Singapore.

“Bintan’s airport is also under construction and will open in 2016. The airport will be able to accommodate Boeing 747 aircraft and the terminal will be able to accommodate 3.5 million passengers a year.

“(By the time the hotel opens), Bintan will be more accessible to domestic and international travellers,” he added.

Escarrer said Meliá is accustomed to opening up properties in new destinations such as the opening of Melia Bali 30 years ago in Nusa Dua, the first five-star international hotel in the area.

“Customers and tour operators are always looking for new destinations and I am sure Bintan will be on the radar in the next three years as a top luxury destination,” Escarrer said.

Apart from the Bintan property, Meliá International will also manage the 131-room Sol Legian, 300-room Meliá Surabaya, 258-room Innside Yogyakarta and 130-room Innside Makassar, all to open in 2016.

Escarrer said the company’s next priority was to manage a property in Lombok.

MATTA urges visa waiver for Chinese tourists

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THE Malaysian Association of Tour and Travel Agents (MATTA) is lobbying the government to implement an immediate short-term visa exemption for Chinese visitors during next year’s Lunar New Year period, in order to shore up arrivals from the market.

Hamzah Rahmat, president of MATTA, said in a statement: “Visa waivers and exemptions are an effective way of encouraging tourists to visit and spend time in a particular location.

“An immediate six-month visa exemption for China tourists, especially with the upcoming Chinese Lunar New Year, will help boost tourist arrivals and provide much needed stimulus to the local economy. We must not miss this opportunity.”

He raised the examples of Japan and Thailand, which both saw tourism arrivals increase substantially after visa regulations were scrapped.

According to Mohamed Nazri Abdul Aziz, Malaysia’s minister of tourism and culture, arrivals from China shrank by 11.8 per cent from January to July following the loss of Beijing-bound Malaysia Airlines MH370 and kidnappings in Sabah.

Reactions from the trade to MATTA’s call have been mixed.

Yap Sook Ling, managing director, Asian Overland Services Tours & Travel welcomed the move and predicted it would stimulate the Chinese leisure market to Malaysia.

“Future bookings are soft, we cannot just wait and hope clients will come. This will entice Chinese travellers to come to Malaysia,” she said.

However, Adam Kamal, deputy president 2, Malaysian Inbound Tourism Association, said: “I don’t know if this will make a big improvement in arrivals as many Chinese travellers would already have made their holiday plans for the Lunar New Year period.”

Duetto enters Asia-Pacific market with new HQ, appointments

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DUETTO, which specialises in hotel profit optimisation software, has opened its Asia-Pacific headquarters in Singapore, appointing Patrick Andres and Amanda See as regional vice president and vice president of sales respectively.

Lee Pillsbury, Duetto board member, founder of Thayer Ventures and Thayer Lodging, said: “Duetto’s entry into the Asia-Pacific markets could not be better timed, or more urgently needed.

“As hotel owners in the region continue to build out their business operations and create pricing strategies, they are interested in adopting best-in-class solutions in revenue strategy and related areas of marketing and distribution. Duetto’s breakthrough technologies will accelerate this process and help hotels keep up with the urgent need for innovation and forward-looking solutions,” Pillsbury added.

Duetto announced the opening of its EMEA headquarters office in London last week and its expansion into key markets around the globe with a US$21 million funding led by Accel Partners.

Andres brings with him extensive knowledge of the Asia-Pacific hospitality technology space and was last with Travelport as Asia-Pacific vice president and managing director. Prior to that, Andres built and ran regional operations for Sabre Hospitality Solutions.

Amanda See has almost two decades of experience in channel distribution, marketing, revenue strategy, event and conference sales and hotel operations and will lead business development intiatives in the Asia-Pacific region.

She was previously senior director of business development for Sabre and worked with Andres to propel the growth of the company’s regional operations as well as to maintain customer relationships and partnerships.