Singapore competition watchdog raises concerns on price transparency for online travel bookings

October 2, 2019

The Competition and Consumer Commission of Singapore (CCCS) has proposed a set of guidelines on price transparency regarding the “dos and don’ts” for suppliers of all consumer-facing industries relating to various pricing practices so as to avoid misleading consumers, following its findings from a study on the online travel booking sector in Singapore.

CCCS’ market study on the online travel booking sector in Singapore revealed that the online travel booking segment in South-east Asia was worth US$19.4 billion in 2015, accounting for 61 per cent of the internet economy in South-east Asia. Between 2015 and 2018, online travel booking grew at 15 per cent driven by growth in online airline and hotel bookings, to a size of US$29.7 billion in 2018. Singapore was estimated to be the third largest in South-east Asia in terms of online booking market value in 2018, with the highest per-capita online travel booking expenditure in the region. By 2025, the online travel booking market in South-east Asia is estimated to reach US$78 billion, according to Google’s and Temasek’s e-Conomy SEA 2018 report.

CCCS pushes out guidelines on price transparency for online travel bookings, following study regarding misleading industry practices

Singapore consumers are increasingly turning to online channels in making their travel bookings, including searching for, comparing, and purchasing travel-related products such as air tickets and hotel accommodation online, whether directly from the websites of service providers like airlines and hotels, OTAs such as Expedia and Booking.com, or web aggregators, also known as metasearch engines like Skyscanner and Trivago, CCCS revealed.

Against this backdrop, CCCS conducted a market study on the online provision of bookings for flight tickets and hotel accommodation to Singapore consumers. The study examined various business practices adopted by the industry players, and the associated competition and consumer protection issues. This is the first market study by CCCS that examined both competition and consumer protection issues, since CCCS took on the additional function of administering the Consumer Protection (Fair Trading) Act (CPFTA) from April 1, 2018.

Price, being an important factor for most consumers and crucial for comparing between alternatives, is key to consumers making well-informed purchasing decisions. In the absence of clear disclosure on prices and pricing practices, consumers may be misled into making wrong decisions, said CCCS.

Following the study, CCCS has developed a set of guidelines on price transparency to assist suppliers of all consumer-facing industries in their display and advertisement of prices to avoid misleading consumers and infringing the CPFTA. These guidelines apply to both online and offline transactions.

The four common practices of online travel booking providers that give rise to consumer protection concerns, as well as CCCS’ proposed guidelines on price transparency are as follows:

1. Drip pricing

This refers to the practice of not disclosing both mandatory and optional charges upfront, which can lure consumers into making a purchase based on incomplete price information, and restrict competition by making it harder for consumers to compare product offerings across suppliers.

What CCCS recommends: Suppliers should ensure that any unavoidable or mandatory fees or charges, like taxes and surcharges, are included in the total headline price.

2. Pre-ticked boxes

Such practices can result in consumers buying unwanted add-on products, as a result of failing to opt-out by unchecking the pre-ticked boxes.

What CCCS recommends: As good practice, suppliers should avoid using pre-ticked boxes to automatically include add-ons. If pre-ticked boxes are used, suppliers must provide proper disclosures of the goods or services offered in a clear and prominent manner.

3. Strikethrough pricing

Such practices can mislead consumers into making a purchase, or paying a higher price, should the comparison between a current and a crossed-out price be false or misleading.

What CCCS recommends: When comparing their price with a previous price to represent a discount, suppliers should use an actual, bona fide previous price (i.e. usual price) that provides a legitimate basis for the price comparison.

When comparing their price with others, suppliers should ensure that any representations and price comparisons with other suppliers’ prices or the use of terms such as cost price, are not false or misleading.

4. Pressure selling

Suppliers touting false or misleading claims can create a false sense of urgency for consumers to make a purchase based on inaccurate information.

What CCCS recommends: When using the term “free”, suppliers should ensure that any representation that the price is $0 or “free” is not false or misleading and any qualifiers, terms and conditions as well as subsequent or deferred charges should be stated upfront clearly and prominently.

CCCS’ recommended positions are intended to encourage online travel booking providers to adopt transparent pricing practices, such that prices and their accompanying terms and conditions are communicated clearly. Through this, CCCS aims to educate suppliers and over time, reduce misleading pricing practices, thereby enabling consumers to shop confidently. This will enable consumers to make an informed choice and allow businesses to compete on a level playing field.

The guidelines will provide more clarity on what constitutes an infringement of the CPFTA and how suppliers should display and advertise prices in a clear manner, it added.

CCCS is seeking public feedback on the proposed guidelines on price transparency. The closing date for submissions is October 21, 2019.

More information on the proposed guidelines on price transparency and the public consultation can be accessed and downloaded from the CCCS website under the section “Public Consultation”.

CCCS said it will continue to monitor market developments in the online travel booking sector in Singapore.

SoftBank and Oyo pick up majority stake in Japan’s MDI

By TTG Asia

October 2, 2019

0

Indian hospitality chain Oyo Hotels & Homes and its principal backer SoftBank Group have jointly acquired an 80 per cent stake in Japanese apartment rental operator MDI.

Nikkei Asian Review reported that the acquisition cost over US$100 million, citing a person familiar with the matter.

Oyo and its principal backer SoftBank jointly acquires 80% stake in MDI

In the fiscal year ending in March, MDI posted revenue of 114 billion yen (US$1 billion), and 37,000 rooms operating under its management.

Following the acquisition, Oyo plans to list a portion of the 37,000 rooms operating under MDI management on its OyoLife room rental platform. This will supplement the firm’s existing inventory of about 2,000 rooms in Japan.

In an email correspondence, an Oyo spokesperson revealed to Nikkei Asian Review that the company aims to “leverage MDI’s strong network and business development capabilities in Japan’s real estate market”.

Earlier in February, Oyo forayed into Japan’s housing rental market through a joint venture with Yahoo Japan Corporation to form Oyo Technology & Hospitality Company. This resulted Oyo bringing its housing rental product, Oyo Living, from India to Japan.

In July, Oyo published a statement hailing itself the world’s third largest hotel chain by room count as of June 2019, where its portfolio comprises more than 23,000 hotels and 46,000 vacation homes.

In the same month, Oyo founder and CEO Ritesh Agarwal invested US$2 billion, through the entity RA Hospitality Holdings (Cayman), to increase his stake in the startup he founded.

Air Astana seeks to put Kazakhstan in the “middle of everywhere”

By Xinyi Liang-Pholsena

October 2, 2019

0

In an age where few places are untouched by mass tourism, the Central Asian nation of Kazakhstan remains “one of tourism’s last frontiers”, said Peter Foster, CEO of Air Astana, speaking at the keynote address of Travolution Forum Asia, organised during the recent PATA Travel Mart in Nur-sultan, Kazakhstan.

Applauding PATA’s decision to host its first event in Central Asia, Foster urged sellers attending the mart to become “pioneers” in selling Kazakhstan to their markets. Kazakhstan, the world’s ninth largest country by land mass with an 18 million population, offers a “great steppe” for travel sellers.

Air Astana’s CEO Peter Foster wants more Asians to visit Kazakhstan, which he calls “one of tourism’s last frontiers”

Far from being a country “in the middle of nowhere”, Kazakhstan is located right “in the middle of everywhere”, Foster stated, as evident from the Kazakh flag carrier’s connections to most cities in Asia and Europe within a seven-hour flight radius.

“Kazakhstan is the perfect bridge between Asia and Europe,” he maintained.

The launch of its low-cost arm, FlyArystan, will enhance Air Astana’s hub status and connectivity with Central Asia. Already, the LCC has reduced domestic airfares by 30 per cent, and will soon launch services to regional cities, said Foster.

Meanwhile, Air Astana has just taken delivery of the first of its five Airbus A321neo aircraft last month, which will gradually replace its Boeing 757s on long range routes to Asia and Europe. Further deliveries of the A321neos are expected over the next two years.

Foster shared that Shanghai and Singapore are high on Air Astana’s flight expansion radar. The carrier is already carrying a lot of business from China to Paris, London and Frankfurt, leveraging its hub status in Central Asia.

Currently, 40 per cent of its international business is made up of transit business and 25 per cent of its total turnover, therefore the airline chief sees a critical need to build the inbound market into Kazakhstan.

“We’re relying very much on outbound from Kazakhstan and Russia. We’re not carrying many Asians into Kazakhstan,” he said.

“We need tourists from Asia. The Europeans are all over the Silk Road but we see very few Asians in the region.”

One way is through co-marketing Kazakhstan with the “big five tourism destinations” in the region, which include Almaty, St Petersburg and Moscow in Russia, Tbilisi in Georgia, and Kiev in Ukraine.

Kazakhstan is becoming “a must-see destination” on the Silk Road, said Foster, as the country is home to ancient monuments and cities with storied history.

New platform for marine transport services launches in Indonesia

By Mimi Hudoyo

October 2, 2019

0

DTech Solusi Bisnis has introduced cGO, an online reservation platform for yachts, vessels, island tours, ferry transportation and tour guide services.

At the recent media launch of the platform in Jakarta, DTech Solusi Bisnis’ CEO Ngadiman said: “The idea to launch this app came about when I was in Lombok (during) the earthquake, and it was so difficult to find (information) on the available boats to transfer people out of the island.

DTech Solusi Bisnis’ Ngadiman (second from left) and his team at the media launch of cGO, an online reservation platform for marine transport services

“cGO aims to provide access for travellers to explore, experience and enjoy the Indonesian archipelago through local social platforms in an affordable, secure and comfortable manner. cGO strives to eliminate the conventional hassle of traditional booking systems between providers and customers.”

Recognising the niche market need for an all-in-one solution for boat charter and its derivatives, cGO provides an informative, secure and transparent online marketplace to ease the travel reservation of all modes of water transportation, which include yacht and vessel rental, ferry transfers as well as island tours and tour guide services, said the company in a statement.

It added that cGO aims “to be the platform where the demand and supply directly meet within an easily navigable reservation system”.

Nora Kassim, managing director and co-founder of cGO, said: “Through cGO, providers or merchants will be able to manage the inquiries directly through the comprehensive dashboard and promote their products and services to both local and international markets.”

This platform offers professional asset management system and marketing efforts for a flat commission rate.

“Backed by cGO’s professional team, operators can also enjoy multiple benefits including secure payment and billing, controlled flexibility, customisable system, transparency in information and higher sales performance,” Kassim said.

Ngadiman added: “As one of the digital tourism stakeholders, cGO is committed to empower the local economy and tour operators with an international standard and competitive edge that is dedicated to the local SME, mid-size tour and travel agents. On top of that, with the tour guide feature, cGO opens up a new business opportunity for the local human resources and encourages them to strive to reach international standards.”

When the app goes live in November, customers or users will be able to match their preferences to make reservations through a cloud-powered website and app. Customers can also compare all modes of water transportations and tours to popular sites as well as lesser-known destinations in Indonesia.

“With cGO, customers can view real-time rates and book transportation according to their desired budget and schedule. Above all, cGO prioritises safety, transparency and credibility. Each operator and brand at cGO is registered and audited to provide complete and accurate information with no hidden costs. The platform also ensures safety in payment gateway, secure customer data privacy and allows an objective review system,” Kassim said.

The company has joined hands with Dtour Travel Services, Ancol Marina Port, private and government sectors, as well as local and international boat owners, to provide supporting systems for the online platform so as to ensure a comprehensive range of services and reliable results.

IATA lifts off campaign to promote gender diversity in airline industry

By TTG Asia

October 2, 2019

0

The International Air Transport Association (IATA) has launched the 25by2025 campaign, an airline industry initiative to advance gender diversity in the airline industry by 2025.

The 25by2025 campaign is a voluntary commitment by participating IATA member airlines. Key among the commitments of airlines participating in the 25by2025 campaign are to increase the number of women in senior positions (to be defined by the member airlines) by either 25 per cent against currently reported metrics or to minimum representation of 25 per cent by 2025; and to increase the number of women in under-represented jobs, like pilots and operations, by either 25 per cent against currently reported metrics or to a minimum representation of 25 per cent by 2025.

IATA’s 25by2025 campaign aims to advance gender diversity in the airline industry by 2025, including increasing the number of women in senior and under-represented positions, like pilots and operations

IATA member airlines who have already signed up to the 25by2025 campaign include China Eastern, Lufthansa Group and Qatar Airways.

There is currently no comprehensive airline industry-wide gender diversity statistical report. But with women representing around five per cent of the global pilot population and three per cent of CEOs, the gender imbalance in the industry is clear.

Alexandre de Juniac, IATA’s director general and CEO, said: “Aviation is the business of freedom. An example of that is the freedom for 2.7 million women and men to develop exciting careers within this industry. But women are under-represented at senior levels, and in some professions, within airlines. Airlines understand the value that a diverse and gender-balanced workforce delivers. The 25by2025 campaign provides a global context and encouragement for the many initiatives our members are already taking to address the gender imbalance.

“I am confident that 25by2025 will be a major catalyst for progress -progress that will set the industry up to achieve even more in this important area. Our work will not be done in 2025 – in fact, this is only the beginning. Our ultimate aim is of course for a 50-50 gender split with equal opportunities for everyone in every part of our industry.”

In addition to the commitments from member airlines under the 25by2025 campaign, IATA will also be making the following commitments:

Increasing the representation of women in IATA’s senior management, referring to the director level and above, from the current 19 per cent to at least 25 per cent by 2025

Working with member airlines to increase the number of women they appoint to IATA governance roles from the current 17 per cent to a minimum of 25 per cent by 2025

Ensuring that the number of women participating as panelists or speakers at IATA conferences hits a minimum of 25 per cent by 2025

Creating a forum for sharing diversity and inclusion initiatives and best practices across the industry and publishing annual industry statistics on gender diversity

Malaysia’s first Conrad to rise in Kuala Lumpur

By TTG Asia

October 2, 2019

0

Hilton has signed a management agreement with Permodalan Nasional Berhad (PNB) to open Conrad Kuala Lumpur in the heart of the Malaysian capital.

Slated for completion in 2021, the 544-room new-build hotel will mark the entry of Conrad Hotels & Resorts, Hilton’s global luxury brand, into Malaysia.

Hilton is bringing the luxury brand Conrad Hotels & Resorts to Malaysia; the branding on its Chicago property pictured

Located within the prime Golden Triangle district of Kuala Lumpur and one hour by car from Kuala Lumpur International Airport, the hotel will be part of a mixed-use development that also comprises an office tower.

The hotel will feature an all-day dining restaurant, two specialty restaurants, a bar, a business centre, spa, fitness centre, a swimming pool, and a 3,400m² events space.

In Malaysia, Hilton currently operates 11 properties across three key brands – Hilton Hotels & Resorts, DoubleTree by Hilton and Hilton Garden Inn. Over the next three to five years, the company is targeting to open nine hotels in its pipeline, including five hotels under the DoubleTree by Hilton brand, and the introduction of lifestyle brand Canopy by Hilton.

Ascott acquires US$139 million freehold serviced residence in Sydney

By TTG Asia

October 2, 2019

0

The Ascott, CapitaLand’s wholly-owned lodging business unit, has acquired a S$192 million (US$139 million) freehold serviced residence in North Sydney through its global fund with Qatar Investment Authority (QIA).

To be named Citadines Walker North Sydney, the serviced residence is part of a 48-storey integrated development with also office and retail components, and which will be the tallest tower in North Sydney upon its completion in 2021.

A rendering of the soon-to-open Citadines Walker North Sydney

Ascott’s chief executive Kevin Goh said the latest acquisition is in line with the strategy of growing the company’s fund management portfolio through private equity funds, joint ventures and listed hospitality trusts.

“We believe in achieving scale in the business, and fund management is central to the active capital management strategy of Ascott as a dominant lodging real estate player,” he added.

Ascott also signed 13 other properties under franchise and management contracts across China, France, Indonesia, Kenya and Vietnam. With these newly secured properties, Ascott has achieved S$10 billion in asset value. Among them are four franchise contracts signed with Aegide Domitys which will mark Ascott’s foray into three new cities in France – Golfe-Juan, Tours and Roanne.

These 14 newly secured properties were announced on September 26 at the grand opening of La Clef Champs-Élysées Paris in France.

Hartatik takes up GM reins at Oriental Residence Bangkok

By TTG Asia

October 2, 2019

0

Onyx Hospitality Group has appointed Jenni Hartatik as the new general manager of Oriental Residence Bangkok.

Hartatik previously held the title of general manager at established hotels across China, including the Radisson Blu Forest Manor Shanghai Hongqiao and the Hilton Dali Resort & Spa. Since 2008, she has been based in China, and first took on a general manager role at the Maritim Hotel Changzhou in 2012.

Hartatik first started her hospitality career of over 20 years in reception and guest services at five-star resorts in Bali. In 1996, she moved into sales as an account manager for the ITT Sheraton Bali Nusa Dua’s Japanese market, then becoming director of sales at the Intercontinental Resort Bali in 2001 before moving to the InterContinental Phnom Penh in 2006.

Too many (unregulated) rooms?

By S Puvaneswary

October 1, 2019

0

KL-VIEW — Hotels in Malaysia seek greater regulation of short-term rentals

A2.7 per cent growth in tourist arrivals to 6.7 million in 1Q2019 failed to lift market sentiment for Malaysia’s hospitality sector. In lieu, the hotel industry saw a 1.5 per cent decline in national occupancy to 64.2 per cent, from 65.7 per cent in 1Q2018, revealed a recent report by the Malaysian Association of Hotels (MAH).

With 39 per cent of arrivals from neighbouring Singapore, it’s possible a good number of tourists may have stayed with friends and relatives, or gone home after midnight.

Hotels in Malaysia seek greater regulation of short-term rentals

However, what has hoteliers more concerned is the other likely contributing reason for the occupancy drop – the influx of unregulated short-term accommodation services such as Airbnb, said MAH’s CEO Yap Lip Seng.

In July, Airbnb reported it had more than 53,000 listings in Malaysia and that it welcomed some 3.3 million guests to the country between July 2018 and July 2019, a staggering 73 per cent year-on-year growth.

“The number revealed by Airbnb is a worrying 21 per cent of legitimate hotels,” said Yap, comparing the figure to the Tourism, Arts and Culture Ministry’s database of 250,000 legitimate hotel rooms nationwide.

But such unregulated short-term accommodation services, said Yap, are negatively affecting the Malaysian tourism industry where the average occupancy rate of hotels was only 56 per cent in 2018.

Yap said the association welcomes regulation of short-term accommodation services and also called for a study to look into where short-term rentals could work for the industry, such as in rural areas.

“Kuala Lumpur has an oversupply of rooms. Allowing short-term accommodation rental services in the city centre is not helping. The government needs to act fast – every minute, valuable tourism dollars are leaked out of the system through unregulated businesses such as Airbnb,” lamented Yap.

Uzaidi Udanis, president of Malaysia Tourism Council agreed. “(We urge) the government to make it a level playing field for hotels to compete. Hotel regulations should also be relooked to consider reducing the number of permits required,” he suggested.

Uzaidi, who is also president of the Malaysian Inbound Tourism Association, called for more collaboration between hotels and tour operators to develop value-added packages that include tours. This will enable hotels to earn better revenue, grow market share and compete more effectively against Airbnb which offers dry rooms and tours and activities, he said.

“It is a better strategy than dropping rates to compete,” he stated.

Malaysian Association of Hotel Owners’ executive director, Shaharuddin Saaid, thinks regulating the hotel sector could have an even bigger impact than the introduction of the tourism tax.

“We need to find ways to attract more tourists. We are now competing with emerging destinations like Vietnam and Cambodia, and established ones like Thailand and Singapore. We cannot keep selling the same products and attractions we did 20 years ago,” said Saaid.

New GM at helm of Chengdu’s Temple House

By TTG Asia

October 1, 2019

0

Swire Hotels has appointed Simon McHendry as general manager of The Temple House in Chengdu.

The former general manager of East, Beijing, McHendry began his life in Asia over a decade ago in 2004 when he relocated from London to Hong Kong and then later to Beijing.

McHendry first joined Swire Hotels as executive assistant manager – sales & marketing at The Opposite House, then later in 2016 moved over to East, Beijing, taking on the role of general manager. He has since been a part of the Swire Hotels family for over four years.

Singapore competition watchdog raises concerns on price transparency for online travel bookings

SoftBank and Oyo pick up majority stake in Japan’s MDI

Air Astana seeks to put Kazakhstan in the “middle of everywhere”

New platform for marine transport services launches in Indonesia

IATA lifts off campaign to promote gender diversity in airline industry

Malaysia’s first Conrad to rise in Kuala Lumpur

Ascott acquires US$139 million freehold serviced residence in Sydney

Hartatik takes up GM reins at Oriental Residence Bangkok

Too many (unregulated) rooms?

New GM at helm of Chengdu’s Temple House

Tried and Tested

Disney Adventure

What to Buy Now

New hotels: voco Scenia Bay Nha Trang by IHG, Varel Singapore...