TTG Asia
Asia/Singapore Monday, 4th May 2026
Page 1184

OTAs must rethink merchandising and retail flows for future growth: Amadeus

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As the online travel market continues to rapidly evolve and grow, OTAs in Asia-Pacific looking to remain competitive must embrace merchandising and reinvent retail flow, as well as form strategic partnerships across the industry, said Amadeus in its latest report on the future of OTAs.

Asia-Pacific travel markets, while diverse in their opportunities and challenges, are no longer isolated ecosystems. Consolidation is on the rise, while big agencies have become mega brands and are acquiring smaller travel agencies to expand their product offerings and customer base. At the same time, local brands are defeating “the giants” through innovative solutions that focus on niche products or services that deliver unique travel experiences.

OTAs in Asia-Pacific must embrace merchandising and reinvent retail flow to ensure future growth: Amadeus

The competition is well and truly on to attract a traveller that is less loyal than ever before. Travellers today are demanding the same level of choice, personalised service and consistency across channels and devices, so they can compare and choose the option they desire. This will lead to a paradigm shift when it comes to flight retailing, where OTAs will need to rethink their search and booking flows for consumers to find the right product.

Amidst this shake up, Amadeus has released three recommendations for online travel companies to ensure future growth.

1. Ride the merchandising trend

“Merchandising is at the core of fundamental change taking place in the global airline distribution landscape. The unbundling of airlines’ ancillary products and services such as baggage fees, pre-assigned seats and airport transfers have been major moves for airlines to compete with attractive cheap fares. Today, the ability to cross-sell and up-sell optional services is now critical to secure revenue,” said Sebastien Gibergues, vice president, online travel, Asia Pacific, Amadeus.

“Online travel companies should explore new methods of merchandising to differentiate with and improve the user shopping experience. This could include providing customised offers for customers at various price points through frequent flyer numbers, or assembling bundles for customers, such as bundling airfares with seat selections and extra baggage,” he added.

eDreams ODIGEO has worked with Amadeus on its merchandising strategy. eDreams was one of the first players in Europe to implement the sale of extra baggage and seat selection as part of its wider product offering. The move paid off – eDreams was able to offer more personalised products and services, boosting its conversion levels and achieving its revenue diversification targets.

2. Reinvent retail flow to satisfy travellers’ demands

“Travel offer unbundling will continue to fragment content, which is good news for online travel companies who will play an important role in helping consumers purchase the right product. However, the challenge will be how to best aggregate and normalise travel content from multiple sources, so it can be searched and compared by travel sellers and travellers,” said Gibergues.

“As a result, online travel companies will need to reinvent their retail flow to satisfy the customers’ demand for “search and compare”.

“This represents the combination of all functionalities, enabling online travel companies to differentiate and deliver a truly exclusive user experience. This means not only displaying the cheapest possible fares but also offering choice – fare families, baggage, seat selection and others – all in one simple, easy-to-use booking flow,” he added.

Leading this transformation is Goibibo, part of the Go-MMT group in India. The team is already experimenting with the creation of their own offers to help travellers better understand and compare the prices of fare families across airlines.

Creating OTA branded bundles could allow consumers to identify what they need, such as economy class with extra luggage or premium economy class with no exchange fee, across multiple airlines. This also allows Goibibo to complement with missing services that would allow like-for-like comparison with other suppliers. This is a major paradigm shift in terms of user experience and needs to be handled with care. Their development team runs many AB testing scenarios to introduce these new features with optimal business upside across all channels.

3. Build mutually beneficial partnerships across the industry

“As content chaos continues across the industry, the challenge for online travel companies is how to aggregate and normalise travel content from multiple sources,” said Gibergues.

“Travel suppliers are seeking more control over how their products are displayed and sold across channels, which will bring both challenges and opportunities for online travel companies. Therefore, it is critical for online travel companies to build strategic partnerships in the industry, be it with technology providers, airlines or corporate travel companies.”

Online travel company Travix is working with Amadeus to enable NDC content to sit alongside traditional EDIFACT technology so that it can be found through one search and displayed in an aggregated way to allow for easy comparison. FCM Travel Solutions and Flight Centre are also testing new graphical user interfaces to access NDC content in the Amadeus Selling Platform so as to transform how they service bookings.

“Partnerships will enable online travel companies to have the widest and most accurate content choice to offer their customers, to deliver frictionless, end-to-end travel experiences,” said Gibergues.

He added: “The online travel market will be an exciting one to watch in the coming years. Innovation will continue to spark growth and change across the sector. To remain competitive and ensure future growth, online travel companies in Asia-Pacific will need to rethink their merchandising and retail flows, as well as look for opportunities to collaborate with others across the travel industry.”

Hilton to open first Cambodia hotel in Phnom Penh come 2022

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Hilton has signed a management agreement with real estate development group GFC Company to operate a new hotel in Phnom Penh.

Part of a mixed-use development, the opening of the 280-room Hilton Phnom Penh in 2022 will mark the entry of the hotel company into the country.

Hilton to open new hotel in Phnom Penh come 2022

“Cambodia is primed for growth, having experienced the third largest increase in the number of international tourists in ASEAN last year – behind only Vietnam and Indonesia – and we believe the strength of the Hilton brand will go a long way in helping to boost Phnom Penh as a tourism destination,” said Paul Hutton, vice president, operations, South-east Asia, Hilton.

Located nine kilometres from Phnom Penh International Airport, Hilton Phnom Penh will be in close proximity to landmarks like the Phnom Penh Central Market and Vattanac Capital Tower, the country’s tallest high-row building.

Hilton Phnom Penh’s facilities will include an all-day dining restaurant, a specialty restaurant, a café, a lobby bar, an executive lounge, a fitness center, swimming pool, and functions space spanning more than 1,500m2, including an 875m2 ballroom.

Guy Phillips, senior vice president, development, Asia & Australasia, Hilton, said that it is an ideal time to be entering the market as “Cambodia as a destination is on a growth trajectory, with global businesses establishing a presence in the capital city and the government investing into its infrastructure to boost its tourism appeal”.

Currently, Hilton operates 39 properties across nine markets in South-east Asia, including Thailand, Indonesia and Myanmar. Over the next three to five years, the company is targeting to open 54 more hotels in its pipeline, including the launch of the Canopy by Hilton into South-east Asia and the company’s entry into Dili, Timor Leste, next year.

Tourism Australia appoints first female MD

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Phillipa Harrison

Tourism Australia has named Phillipa Harrison as its new managing director, replacing John O’Sullivan who quit in May to head up adventure tourism company Experience Co.

The promotion sees Harrison become the NTO’s first-ever female head, and comes after a period of several months during which she has held the managing director role in an acting capacity.

Phillipa Harrison

“This is a period of change, challenge and opportunity for our industry. With competition for the global travel wallet and the demands of the international traveller ever increasing, and both global and Australian tourism facing a number of significant headwinds, the need for a strong, cohesive and united industry has never been greater,” said Harrison.

She added that her focus is to retain Tourism Australia’s competitiveness through “creative and high impact marketing” and “the important distribution and partnership platforms we provide to the industry”.

Harrison was previously Tourism Australia’s executive general manager international, overseeing a network of international offices spanning 12 countries, and managing airline relationships and distribution channels.

Fairmont Maldives unveils new underwater art installation

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After the Fairmont Maldives Sirru Fen Fushi was ordered by the Maldives’ government last August to remove “anti-Islamic” human-like sculptures within the Coralarium — the Maldives’ first and only coral regeneration project in the form of an underwater art installation — the hotel has unveiled a series of new sculptures for the semi-submerged gallery.

Conceptualised by celebrated British environmentalist and eco-artist, Jason deCaires Taylor, the abstract sculptures are inspired by the natural beauty of the coral reef and have been designed to imitate the ethereal formation of coral colonies.

Rising from 10 semi-submerged plinths within the Coralarium, the installation aims to raise awareness of the threatened ecosystem, educate guests about the underwater world and rehabilitate the reef. Rising from the sea into the sky, the tessellated sculptures act as a visual connector between the aquatic world and the land.

Perched within Maldives’ largest resort lagoon, Fairmont Maldives Sirru Fen Fushi plays home to an abundance of marine life, from manta rays and turtles to bottlenose dolphins and over 250 species of tropical fish. Now, guests can get even closer to nature as they explore these sculptures and the aquatic life that dwells amongst them, accompanied by a resident marine biologist, as part of the property’s specially curated evening snorkelling tours.

The Coralarium structure, and the sculptures within, act as an artificial reef, encouraging local marine life to make it a home. Up to five metres tall, each of the soaring sculptures is constructed of more than 500 ceramic “starfish” that have been specifically designed to attract a variety of fish and crustaceans – the hard shells catch and hold biomass, or “fish food”, which encourage coral larvae to attach and thrive, while nooks and dark cubbyholes in the structures provide a hiding place for a variety of fish and shellfish. Each sculpture is brought to life through its union with the life that attaches to it, transforming them from concrete to textured, living organisms.

As one of the world’s most celebrated “underwater naturalists”, Taylor’s works become an integral part of the local eco-system, created with non-toxic, marine-grade compounds that is free from harmful pollutants.

The steel Coralarium structure, first installed in 2018, has quickly become inundated with marine life and adventurous guests eager to discover the thriving underwater world. Hard corals, sponges and thousands of schooling fish now live within its walls that are perforated with a coral pattern to allow beams of light to illuminate the sculptures.

Strategically placed to lead snorkellers into various “zones” of the Coralarium, the sculptures can be explored from a sea-scaped coral pathway, that leads from the 200m-infinity pool at the heart of the island – the longest in the Maldives.

Diving adventures and snorkelling sessions with the marine biologist showcase Fairmont Maldives’ best diving spots, right at the eight-kilometre-long house reef, home to many manta ray cleaning stations. Those inspired by Taylor’s installation can even create their own marine-inspired masterpiece in the on-site art studio, or plant their own coral, which they can see flourish as they revisit in years to come.

New hotels: Eiheiji Hakujukan, The Clubhouse at Ulu, and more

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Michael Gaehler joins Six Senses Uluwatu, Bali as GM

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Six Senses Hotels Resorts Spas has appointed Michael Gaehler as the general manager of Six Senses Uluwatu, Bali.

A seasoned professional, Gaehler brings more than 33 years of experience within the high-end hospitality sector, and was most recently the general manager of the Oriental Residences Bangkok. He previously also worked at Regent Hotels & Resorts, managing the group’s hotels and resorts in Montenegro, Taiwan, China and Indonesia.

Gaehler began his hotel career as a chef in his hometown of Zurich, transitioning to broader F&B roles at some of Europe’s leading boutique hotels such as Villa il Tessoro in Tuscany, Hotel Le Vieux Manoir in Murten and Hotel Giardino in Ascona. He then moved to Asia and the Jia Causeway Bay in Hong Kong and The Chedi Chiang Mai, later assisting with the launch of Ananti Kumgang Mountain in North Korea, the country’s first five-star resort.

Bringing back the Europeans

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Performance by the Iban tribe in Sarawak at the Sarawak Cultural Village

Sarawak Tourism Board (STB) has intensified efforts to create greater visibility for the East Malaysian state in its traditional market of Europe, after tourism took a hit following the loss of air services linking the continent to Malaysia in recent years.

European arrivals to Malaysia plunged when Malaysia Airlines axed Frankfurt from its flight network in April 2015, followed by Amsterdam and Paris in January 2016, as part of its route rationalisation exercise to stem losses.

Performance by the Iban tribe in Sarawak at the Sarawak Cultural Village

“With a bigger marketing budget, we are going all out to rebuild promotions in Europe by working with more airline partners and increasing our product offerings from this year on,” said STB’s CEO Sharzede Datu Hj Salleh Askor.

Just months earlier, European carriers Air France and Lufthansa had also cancelled their services to Kuala Lumpur in October 2015 and February 2016 respectively.

The attention given to longhaul markets is deemed critical as key European markets including Germany, the UK, France and Benelux countries are year-round, high-yield tourists who spend an average of two weeks in Sarawak.

To boost arrivals from Europe, STB is working with airline partners that have European sectors on several tactical and joint marketing campaigns, said Sharzede.

In addition, STB had participated in ITB Berlin earlier this year, and will lead the private sector at the upcoming ITB Asia in Singapore and World Travel Market in London in November.

The board is targeting 77,138 tourist arrivals from Europe this year, representing a five per cent growth from 2018. It hopes to grow European tourist arrivals to 82,538 next year, which is also designated Visit Malaysia 2020, and to 84,800 European visitors in 2021.

While Sarawak’s past promotions for the European market were focused on soft adventure and cultural attractions, this year, the state NTO wants to raise interest in other areas such as nature, the local cuisine and unique festival offerings including the world renowned Rainforest World Music Festival on the foothills of Mount Santubong and the Borneo Jazz Festival in Miri.

Nature-based events being promoted in Europe include the International Bornean Frog Race, an event focused on promoting awareness, interest and education about amphibians and amphibian conservation around the world. Sarawak’s Kubah National Park is also home to the world’s second smallest frog, the Microhyla Nepenthicola species. Another annual event being promoted in Europe is the Sarawak International Bird Race. Sarawak has 22 bird areas designated by BirdLife International in which inhabits 54 endemic bird species.

“Including nature in the promotions is a good move as this will interest Europeans. If the marketing campaign is done well, we should see an increased interest to Sarawak next year,” said Manfred Kurz, managing director, Diethelm Travel Malaysia.

“It is good that STB is having multiple airline partnerships with airlines that service both Europe and Malaysia through their hubs, as it is a logical thing to do.

“The state government should look into infrastructure development and attracting more investments to the state. Having an international hotel brand on Damai Beach will make it easier to sell the destination, while also increasing the length of stay of Europeans.”

Nigel Wong, director, Urban Rhythms Tours, Adventures & Travel said growing the arrivals from the European longhaul market is ideal for the state which already attracts mature European travellers in their late 30s or older, as this segment likes destinations that are peaceful and not overcrowded.

“At ITB Berlin, there was a large amount of interest on Sabah and Sarawak. Both states conjure up images of a lush and pristine destination which appeals to the European market. STB’s marketing efforts will reinforce the image of Sarawak as an attractive tourism destination and help it reach its intended markets in Europe,” he said.

“Sarawak’s appeal has always been the rainforest, conservation of nature, wildlife and authentic experiences. This marketing effort by STB to promote diversified attractions will resonate well with the market. Along with regular product updates from the state NTO, we should be able to promote Sarawak as an exciting and attractive destination. Since ITB Berlin, we have already seen a pickup in bookings for the destination; with Visit Malaysia 2020 fast approaching, we hope interest will continue,” Wong added.

Adam Kamal, general manager, Tour East Malaysia, said: “We have a lot of requests from European travellers to Sarawak who are interested in visiting UNESCO World Heritage site Mulu National Park. We sell the destination as an educational adventure experience where visitors can learn about the earth’s geosystem while they seek adventure.

“With increased marketing and promotion of diversified attractions, this will attract repeat and new visitors from Europe. Because Sarawak is a niche destination, getting higher yield per tourist is always better than going after mass tourism which could negatively impact the destination.

“I hope the joint international tourism development programme between Tourism Malaysia and Malaysia Airports Holdings will also attract more Middle Eastern airlines to fly direct to Kuching as that will further boost tourism.”

Melaka entices the world

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More attractions are adding to Melaka’s appeal to leisure and business tourists

Melaka State Government’s Visit Melaka Year 2019 campaign, aimed at increasing visitor arrivals to 20 million tourists this year, is already bearing fruit.

The state saw a 17.5 per cent increase in tourist arrivals to 4.8 million in 1Q2019, from the same period last year. Of these, 3.4 million were domestic tourists and 1.4 million were foreign tourists.

More attractions are adding to Melaka’s appeal to leisure and business tourists

Under the umbrella campaign, initiatives are multi-pronged.

Special events have been curated for this campaign including the recent Melaka Food Festival, Melaka By the Sea Carnival in September, and Melaka Fiesta in October.

Tourism Melaka, through its Tourism Information Centres in Ayer Keroh and Jalan Kota, are giving away discount vouchers for entrance tickets to 28 attractions, including Melaka River Cruise, Menara Taming Sari, Encore Melaka and Melaka Maritime Museum.

Melaka’s travel trade partners have come onboard with the campaign, some pushing out their own initiatives.

Said Uzaidi Udanis, president, Malaysian Inbound Tourism Association (MITA): “On our part, MITA organised a three-day inbound tourism boot camp in Melaka in July that was attended by 50 tour operators and product owners. We identified and developed eight new tourism products and packages for foreign markets. Some new ideas include a walk to Konet Island during low tide from Telok Gong and an overnight stay at the former mansion used by the governor of Melaka, Mohd Khalid Yaakob.”

He added: “Melaka may only be a small state, but it is steeped in history and culture. Its UNESCO recognition received in 2008 has also been a boost for tourism.”

Klaus Sennik, general manager, Ramada Plaza by Wyndham Melaka, shared: “As a hotel, we are also taking our own initiatives to support the campaign through our hotel activities and campaigns to garner more publicity and support for this campaign which has resulted in a gradual increase in hotel occupancy.”

Asmaliana Ashari, senior manager, Tourism Melaka, said the campaign is also aimed at creating more awareness of the destination’s facilities and capabilities for business events.
Foreign tourists from this segment spend three times more than the average leisure tourist. Last year, the average spend per tourist per night was RM504 (US$122). For international business tourists, the average length of stay is six nights.

Arokia Das, director, Luxury Tours Malaysia, said: “With 186 events planned for the year, and new live theatre productions such as Encore Melaka and Rasa Melaka, it is easier to promote Melaka to meeting planners. These professionally-run shows with elements of heritage and culture cater to the needs of meeting planners.

“Meeting planners are looking for new destinations beyond Kuala Lumpur and within a two-hour drive from the city. In this respect, Melaka fits the bill. Kuala Lumpur has lost some of its allure for repeat leisure tourists because of the absence of new attractions; tourists have been cutting down their stay in the city to one or two days.

“We are trying to entice day trippers travelling south to Singapore to spend at least a night in Melaka instead, by highlighting the state’s rich history, culture, gastronomy and ecotourism products to Asian markets.”

South Korean firm leads consortium to acquire US hotels under China’s Anbang

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A consortium led by South Korea’s Mirae Asset Global Investments (MAGI) has agreed to buy 15 hotels in the US from China’s troubled Anbang Insurance Group, according to Reuters.

Anbang, which was once among the most aggressive Chinese buyers of foreign assets, is now in the midst of selling down its overseas assets, added the report.

Mirae to acquire 15 of Anbang’s luxury hotels in the US, including the JW Marriott Essex House New York (above), for US$5.8 billion

The US commercial properties include New York, San Francisco and Los Angeles, said MAGI, an asset management arm of Mirae Asset Group, in a statement.

The report also quoted an insider as saying that the deal, valued at US$5.8 billion, is expected to close by next January.

Anbang’s selling down of its overseas assets to pay off its debt comes after the Chinese government seized control of the firm last February, as part of a campaign to reduce financial risk.

Anbang’s former chairman, Wu Xiaohu, was later sentenced to 18 years in prison for fraud and embezzlement.

In August, Anbang put its entire US$2.4 billion Japan property portfolio up for sale.

Mirae Asset Group has invested aggressively in overseas properties over the last two years, including a landmark building worth US$960 million in Paris in July.

YTL seals deal to bring AC Hotels by Marriott into Malaysia

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Marriott International has signed a landmark agreement with YTL Hotels to bring AC Hotels by Marriott, a design-led lifestyle brand, to Malaysia.

Under the agreement, three existing hotels in Kuala Lumpur, Penang and Kuantan will fly the AC Hotels by Marriott brand flag following a strategic conversion in December.

Marriott International signs agreement with YTL Hotels to bring the AC Hotels by Marriott brand to Malaysia (Pictured; from left: Craig Smith, president & managing director, Asia Pacific, Marriott International; YTL Hotels’ executive director Dato’ Mark Yeoh; and Rajeev Menon, COO, Asia Pacific excluding China, Marriott International)

Set to be the first Marriott International hotel in Penang, AC Hotel by Marriott Penang will be located in the island’s south-eastern district of Bukit Jambul. Situated near the hotel will be Penang’s SPICE (Subterranean Penang International Convention and Exhibition Center) Arena, a 4,500m2 indoor arena which serves as a major MICE venue, and the UNESCO World Heritage-listed city of George Town.

AC Hotel by Marriott Kuala Lumpur will be located approximately four kilometres from the Kuala Lumpur City Center, the hub of Malaysian capital. The new hotel will also be within walking distance from the Titiwangsa monorail station and the Ampang LRT line, both of which link up to the city’s transportation hub of KL Sentral.

On the eastern coast of Peninsular Malaysia, AC Hotel by Marriott Kuantan will be located near the city centre, about five kilometres from Cempedak Bay and Beserah fishing village. Kuantan is also home to several industrial areas including the Malaysia-China Kuantan Industrial Park and Gambang Industrial Park.

YTL Hotels currently operate 12 Marriott International properties across Asia and Europe.