Fate of Malaysia Airlines hangs in balance

March 14, 2019

The Malaysian government will be conducting a study to decide the fate of ailing national carrier, Malaysia Airlines (MAS).

National sovereign wealth fund, Khazanah Nasional – the sole shareholder of MAS – had accounted half of its RM7.3 billion (US$1.8 billion) impairments registered last year in sustaining MAS. This caused Khazanah Nasional to post a pre-tax loss of RM6.3 billion in 2018, its first since 2005, reported TheEdge Markets.

Malaysian government mulls over the future of its national carrier

According to The Star newspaper, Malaysian prime minister Mahathir Mohamad, said at a press conference: “To me, it’s a serious matter to shut down the national airline. We will nevertheless study whether we should shut it down or sell it off, or refinance it. All of these options are open for the government to decide.”

During a briefing on the sovereign fund’s 2018 results, Khazanah Nasional’s managing director, Shahril Ridzuan, stated in a New Straits Times report: “As a shareholder, we think that the important question to be asked is whether every dollar spent on MAS is generating other economic benefits to the country, which the government needs to answer to determine the right level of support for the airline.”

Agents TTG Asia spoken to offered suggestions, from corporatising MAS to revamping the airline.

Adam Kamal, secretary-general at Malaysian Inbound Tourism Association, opined: “Shutting down the national carrier should be a last resort. If the government feels it is unable to carry the burden of maintaining the airline, they should corporatise it I am sure there will be takers. This option may even take MAS to greater heights.”

Kamal pointed to AirAsia as an example of a private company doing well, and stated that he was confident that if MAS is corporatised, “it will have a bright future”.

Richard Vuilleumier, managing director, Panorama Holidays, added: “What needs to be done is to re-strategise and revamp the airline and to have good leadership at the top management level who knows the aviation industry, and not politicians.

“As it is, MAS is not really benefiting agents who are selling longhaul as the only longhaul destination it flies to is London. To further grow the inbound longhaul market, which in turn will see increased tourism revenue, is to have more direct connections,” Vuilleumier added.

Manfred Kurz, managing director of Diethelm Travel Malaysia, agreed: “The ownership of the airline is of no interest to agents as long as it can provide good service, fly on important routes and has plans for further expansion.”

At press time, Malaysian finance minister gave his assurances that the government will not shut down MAS.

Singapore’s luxury properties a drawcard for European buyers

By Paige Lee Pei Qi

March 14, 2019

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Capella_Singapore_Aerial_View_S — Aerial view of Capella Singapore

An ever-growing roster of luxury hotels in Singapore is drawing greater interest from European buyers at the recent ITB Berlin.

Hollywood movie Crazy Rich Asians and the historic Trump-Kim summit in June last year delivered a promotional boost to Singapore, with icons like Marina Bay Sands, Capella Singapore and Raffles Singapore coming under the spotlight as some of the city’s luxury offerings.

Aerial view of Capella Singapore on Sentosa island

Rica Thies, team assistant Asia, Art of Travel Germany, said: “The luxury hotels in Singapore are so impressive that they are able to provide an experience on their own already.”

Thies said her clients, who typically stay between one to three nights in the city, would often prefer city-based five-star hotels with a view of the Singapore River.

Anticipating the reopening of the iconic Raffles Singapore in August this year, Thies said: “We have many requests for this hotel already because it combines a lot of history, elegance and luxury which we do not get in typical hotels.”

Hasan Hakim, general manager, Beyond Oceans Travel Lebanon, agreed that the ready availability of quality and luxury hotels in Singapore is a winning factor. “It makes the destination’s image feel secure when you know of all the big hotel names,” he said.

Hakim, who is exploring Singapore as a new product, shared that he is looking at packaging the city with surrounding destinations like Indonesia and the Philippines. “I am looking for new ideas that can excite, and I think Singapore has many to offer,” he said.

He added that Sentosa could be a potential key product for his clients as its resort island offering with luxury hotels and attractions in one spot is a novel and attractive one.

As for Karin Portzgen-Pruijssen, representative of Reisteam in Netherlands, Singapore is an “all-in-one city that has everything travellers need”, with shopping as one of the top favourite activities among them.

Apart from luxury hotels, Singapore’s reputation for quality hotels is a “very strong” drawcard for Portzgen-Pruijssen.

Earlier last month, the Singapore Tourism Board (STB) unveiled plans to woo longhaul markets like the UK and Europe with a roster of Bicentennial-themed programmes and tour products.

STB has also launched the next phase of its Passion Made Possible global campaign in 16 markets worldwide, including Germany and the UK.

Java tubing adventure turned deadly for agents

By Mimi Hudoyo

March 14, 2019

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Four travel executives died in an river tubing accident in Magelang, Central Java yesterday when they were hit by sudden floodwaters.

They were Tantri Aristiawati of Nitour, Yully Wu of Yope Cavations and Sicilia Mantjoeng of Advent Tour, all from Jakarta, and Datin Hanisa of Travel Dynamic Selangor Malaysia.

Tourists tubing along the Singgono River in Magelang. Photo shown is not of agents involved. Photo credit: Little Ubud River Tubing

They were buyers attending Jogjakarta Istimewa Travel Exchange (JITEX) which took place from March 10-12. Together with 11 other JITEX participants, they extended their stay to take part in the Little Ubud River Tubing adventure along Singgono River in Magelang.

Djohari Somad, chairman of the Association of the Indonesian Tourism Players, said in a statement: “Around 14.00 (when they were resting in the middle of the adventure) a sudden river flooding took place and swept participants away. Four, including three of our association members, were casualties while the rest were safe.”

Yudianto Adhi Nugroho, head of Magelang Police Office was also quoted by the local media as saying there was no rainfall and the weather was fine for tubing when the group started the adventure. However, a sudden flooding took place when the group got to the middle of the tubing route, resulting in the unfortunate tragedy.

JAL’s new LCC to fly as Zipair

By TTG Asia

March 14, 2019

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Japan Airlines (JAL) has revealed that its first medium- to longhaul LCC will be named Zipair Tokyo.

Registration is now official, and the new carrier will prepare for launch during summer 2020 as previously announced.

Initial plans for JAL’s LCC have been announced

Zipair’s first two routes will be between Tokyo’s Narita airport and Bangkok’s Suvarnabhumi airport; and between Narita and Seoul’s Incheon airport. The two routes will be operated on two Boeing 787-8 Dreamliners.

According to a Reuters report, Zipair has plans to offer trans-Pacific and European flights in its pipeline, and aims to turn profitable in two years after its inaugural flight in 2020.

Seoul-Danang is APAC’s fastest-growing air route

By TTG Asia

March 14, 2019

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Seoul-Danang is the fastest-growing passenger route in Asia-Pacific, in a new study release by Routesonline at Routes Asia 2019, which took place from in Cebu last well.

More than 2.2 million passengers took a flight between the two destinations in 2018, compared with 1.3 million just 12 months earlier, translating to a 71% rise in the number of passengers.

The Seoul-Danang route is the fastest-growing route in the Asian region; Danang’s Golden Bridge pictured

According to OAG Schedules Analyser, two-way capacity on the Seoul-Danang route jumped by 73% in 2018 to 2.8 million available seats. A total of 10 carriers served the market, up from nine in 2017.

Jin Air had a 20% capacity share of the total number of seats on offer last year, with Korean Air on 15.1% and Jeju Airlines on 13.2%. In total there were almost 12,100 flight departures on the route, compared with fewer than 7,500 in 2017.

In second place is Manila-Iloilo, which connects the capital of the Philippines with Iloilo City on Panay Island. Total passenger traffic increased by nearly 48% in 2018 to more than 2.1 million passengers.

Overall two-way capacity rose by 49% in 2018 compared with the previous year, OAG figures show, increasing to 2.5 million seats. Cebu Pacific commanded a 50.5% capacity share, followed by Philippine Airlines with 31.3% and Philippines AirAsia with 18.2%.

In joint third in the list are two domestic routes. The first links Indonesia’s capital Jakarta with the port city of Palembang, while the second connects Hyderabad in south India with Bengaluru. Both routes saw passenger numbers increase by 20% in 2018.

Routesonline’s research found the top 100 passenger routes to/from and within the Asia-Pacific region during 2018 using the latest data provided by Sabre Market Intelligence. The list was then ranked by percentage annual growth when compared with the same period in 2017.

Amadeus reveals trends shaking up retail travel industry

By TTG Asia

March 14, 2019

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In 2018, Asia-Pacific received an inbound volume of around 688 million visitors, almost 50 million more foreign arrivals than in 2017, according to PATA’s Asia-Pacific Visitor Forecasts 2019-2023.

Amid this tourism boom, traveller expectations are continuing to evolve and the industry faces an increasing need to meet fragmented requests from customers including the desire for richer content, wider choices and greater personalisation.

For agents to deliver this transformation successfully they should ensure that technology complements and improves the human touch in order to provide an enhanced customer experience.

To navigate this changing environment and to help the industry understand some of the drivers impacting the sector, global travel IT provider Amadeus spoke to several industry leaders.

Experts discuss customer-centric trends agents need to consider as part of their long-term strategy

The cloud will improve collaboration with travellers for a more personal experience
“Cloud technology is a driving force for transforming the offline model of the travel agent. The cloud enables agents to have access to all cloud-based bookings regardless of location, whether this would be through a mobile phone or a tablet. As consumer expectations are growing, we’re seeing travellers wanting more of a collaborative effort when booking a trip with an agent. A seamless way to enable this collaboration is by taking the customer out of a brick-and-mortar store to a café with a tablet and work together to develop an itinerary. This human interaction is where retail travel agents have an opportunity to really inspire the traveller.”

– Champa Magesh, senior vice president, retail travel channels, Asia Pacific, Amadeus

IoT will create a seamless trip where travellers are connected to their travel agents at every stage
“IoT has the ability to connect customers with travel consultation throughout the entire stage of the travel experience. For agents, a global or universal passenger name record (PNR) will allow travel consulting to change according to any requests from the customer. As for travellers, agents can provide a universal ‘travel pass’ that can be used for a trip, without separate boarding passes, hotel check-in, bus passes, and even theme park tickets. This universal travel pass would also handle multiple currencies, where travellers won’t need to worry about exchanging currencies when travelling between different countries.”

– Alfred Kam, chief operating officer, Travel Expert Group

Voice will be the way we book travel in the future
“If you think about it, talking to each other is the most natural thing humans do. Nowadays, typing and swiping seem as an effective way of communicating as we’re unable to have a natural conversation with a machine. But as AI and voice-enabled devices become smarter, typing or swiping will become secondary. When the process becomes seamless, voice will be the future of booking travel. Travel agents are then able to take advantage of this and sell high value and high engagement products via voice.”

– Nishank Gopalkrishnan, CEO, Triposo

Blockchain will create more secure, direct transfer payment methods
“As consumers become more conscious about their data, privacy, and online presence, there will also be a need for more secure and direct transfer payment methods. Credit card payments, such as Visa and Mastercard, are facing digital challenges. This is where Blockchain can revolutionise traditional methods by allowing all transactions and ticketing to be safe and secure. Blockchain technology will also offer an efficient way to integrate different services providers in a distributed environment.”

– Kelvin Ko, assistant manager, business development, Travel Expert Group

NDC will transform travel distribution as we know it
“A majority of travel distribution today in the airlines and hotel space is complicated. The myriad of pricing options, fare types, loyalty programmes and multiple players doesn’t ease the shopping process, even for a suave online shopper. Travel agents will continue to see product requests from multiple sources for travel providers – therefore seamless integration with EDIFACT, NDC, and other API connectivity, plus hotel, ground transportation, and theme park tickets will be essential. Travel agents will need to evolve to offer integration with non-travel related content and value-add services will be a success factor for future travel agents. For example, instant translation, personal travel guide in various languages, and friend matching app for travel companions.”

– Champa Magesh, senior vice president, retail travel channels, Asia Pacific, Amadeus

High network speeds will facilitate 3D/VR/AR technologies for a more engaging and immersive booking experience
“Technology will enable travel agencies to transform into ‘digital travel agents’ through high-speed networks, enabling 3D, VR and AR technologies. The booking process will become a trip planning experience, where agents will be able to provide more content, information and booking details.”

– Alfred Kam, chief operating officer, Travel Expert Group

Read more about the future of the travel retail industry here.

Singapore tour operator suspended

By TTG Asia

March 14, 2019

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The Singapore Tourism Board (STB) has suspended Goldfish Holiday Makers (travel agent licence number 01930) with immediate effect until further notice.

The suspension, in accordance with the Travel Agents Act (Chapter 334), is
a result of the company’s failure to submit its audited statement of accounts within six months after the close of its financial year.

During the suspension period, Goldfish Holiday Makers is required to fulfil its existing obligations to its customers, but will not be allowed to accept new travel bookings.

Aviation roundup: Qatar Airways, Hainan Airlines and more

By Rachel AJ Lee

March 14, 2019

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Qatar Airways announces seven new destinations
Qatar Airways has added seven destinations to its network, two of which are in Asia.

The destinations are Lisbon, Portugal; Malta; Rabat, Morocco; Langkawi, Malaysia; Davao, the Philippines; Izmir, Turkey; and Mogadishu, Somalia.

The airline has also unveiled its new Economy Class experience. Features include a a 19-degree recline system, additional legroom, dual trays, 13.3-inch 4 K widescreens, type ‘C’ fast charging USB port, and faster broadband.

In addition, the in-flight dining experience has been enhanced with new retail-style tableware, a menu offering more choices, 25 per cent larger main courses, 20 per cent larger appetisers and 50 per cent larger desserts.

Hainan Airlines launches two routes from Shenzhen
Hainan Airlines has mounted two direct flights to Dublin and Tel Aviv from Shenzhen.

The first route, to Dublin, is operated twice-weekly on Mondays and Fridays with a Boeing 787 Dreamliner. HU755 will depart Shenzhen at 01.30 and arrive at 07.00. The return leg HU756 will take off from Dublin at 09.00 and arrive back in Shenzhen 05.30 the following day.

The Shenzhen-Dublin route is Hainan Airlines’ second direct route between mainland China and Ireland.

Similarly, its Tel Aviv flight will operate twice-weekly on Mondays and Fridays on a Boeing 787-9 Dreamliner.

HU743 departs Shenzhen at 01.35 and arrives in Tel Aviv at 07.35, while return flight HU744 will depart Tel Aviv at 13.10 and arrive in Shenzhen at 05.00 the following day.

The Shenzhen-Tel Aviv route is Hainan Airlines’ first direct connection between mainland China and the Middle East.

Thai AirAsia X expands China network
Thai AirAsia X will launch a direct flight to Tianjin from Bangkok’s Don Muang Airport. The four-times weekly flight (Tuesday/Thursday/Friday/Sunday) will begin on May 3, 2019.

Thai AirAsia X currently flies direct to China on the Bangkok (Don Mueang)-Shanghai route.

JAL and Vistara enter codeshare partnership
Japan Airlines (JAL) and India’s Vistara Airlines have entered into a codeshare partnership.

As part of the agreement, Japan Airlines will add its JL designator code to some 32 Vistara-operated daily flights across India, covering seven cities of Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad and Pune.

The two airlines already have an interline through check-in partnership, thanks to an MoU signed in September 2017. Vistara is the only codeshare partner for Japan Airlines in India.

Both airlines will operate out of Indira Gandhi International Airport’s Terminal 3.

Nha Trang seeks to overturn Europeans’ perceptions

By Yixin Ng

March 13, 2019

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Nha Trang may be on the cusp of change as international flights arrive at the new Cam Ranh airport and Vietnam grows in popularity among Western Europeans, but the coastal city remains bogged down by negative perceptions within the travel trade.

Before the airport opened, the destination was traditionally reliant on Chinese and Russian groups arriving on charter flights. Now, some resorts are turning their attention to new international markets.

Nha Trang is the only city beach in Vietnam, but it’s a hard sell for European agents

For example, Ingo Rauber, general manager at Sunrise Nha Trang Beach Hotel & Spa decided to move the resort’s focus away from Russian and Chinese groups “because we didn’t see the revenue coming in for incidentals for hotels”, and are targeting Western European markets instead.

Since the resort changed its marketing, business from its two traditional feeders went down 50 per cent, while Western European guest volume grew by about 25 per cent.

With the opening of Cam Ranh international airport last year, travellers no longer have to go through Hanoi or Ho Chi Minh City to arrive in Nha Trang.

“However we are still missing Western European tourists because flights coming in are mostly through Bangkok, and travellers arriving in Bangkok in the morning will miss the day’s connection to Cam Ranh. Leaving Nha Trang you need to wait six to seven hours at the airport in Bangkok to catch the flight back home. That’s the biggest problem right now,” said Rauber.

Moreover, Nha Trang remains encumbered by its reputation within the travel trade and a perceived lack of suitable hotels for the Europeans.

“Nha Trang is still not yet popular with the Western European market… It might be because of the reputation among tour operators, not so much consumers,” said Frank Wiegand, director of team sales Europe, Focus Asia.

“There are two disadvantages: first of all, while Cam Ranh is changing, in Nha Trang most hotels don’t have direct beach access. There are some on islands off the coast, but guests in many hotels have to cross the street to get to the beach,” he continued.

Additionally, German travellers usually like three- or four-star, “small, local” resorts, which are lacking in Nha Trang, Wiegand pointed out.

“I’m not too fond of Nha Trang as it can be quite crowded and there are too many hotels,” said Moreten Westergaard, sales and production manager at Voya Travel in Denmark, which is adding Asian beach destinations to its Indian Ocean and Latin America core.

While some industry players liken Nha Trang to Phuket, trade buyers maintained that the Vietnamese beach city still lags behind its Thai counterpart.

Thailand beaches remain top choice for beach extensions in Indochina round-trips, said Alberto Maffizzoli from Tui Italia’s planning department, with Phuket most popular for the winter season and Samui for the summer season.

In comparison, Vietnam is known just “a little bit” for its beaches. “In Vietnam, Phu Quoc is (the top choice). I’ve been trying to develop Nha Trang, but at the moment it remains a new destination as it is not known on the market yet,” Maffizzoli said. “Everyone wants to go where everybody else is going.”

Similarly, Westergaard prefers beaches in Thailand for the availability of quieter, more “barefoot luxury” resort options, citing the example of the 9 Hornbills Tented Camp and Koyao Island Resort in Koh Yao Noi, near Phuket.

There are, however, glimmers of hope for Nha Trang.

“I see an enormous increase in interest for Vietnam, and there’s always a beach extension in itineraries. We are around 125,000 Dutch going to Vietnam last year. Three years ago it was 65,000,” said Frank Schretlen, sales director, the Netherlands, Vietnamtourism – Hanoi JSC.

He added: “People have been to Thailand and they want something else of South-east Asia.”

While some buyers point out that Russian and Chinese groups have made the beach less appealing to travellers from other markets, Schretlen pointed out that there are spaces in Nha Trang that are more popular with Europeans.

Wiegand added: “It’s a pity that Nha Trang is such a hard sell in Europe. Personally, it is a really nice place. If I go to the beach I still prefer to have restaurants and bars, and Nha Trang is the only city beach in Vietnam.”

Thomas Cook China, Hanatour team up to launch Japanese DMC

By TTG Asia

March 13, 2019

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Thomas Cook China, a joint venture between Thomas Cook Group and Fosun Tourism Group, has signed an agreement with Hanatour Japan to establish a DMC in Japan.

The partnership is aimed at growing inbound tourism business from China as the new joint venture company will develop new products and services for the growing number of Chinese independent travellers.

Japan is the fastest growing destination for outbound Chinese travellers

Alessandro Dassi, CEO of Thomas Cook China, said in a statement: “Our new partnership with Hanatour Japan will give Thomas Cook China greater access and better control of the hotels and services we offer in Japan, allowing us to accelerate growth into this key market for Chinese travellers.”

Byung-Chan Lee, president and CEO of Hanatour Japan, added: “We believe that inbound tourism from China will continue to grow over the next five to 10 years. Our new joint venture with Thomas Cook China gives us an opportunity to better leverage our existing resources to gain a share in this market.”

Japan is the fastest growing tourist destination for Chinese travellers and is one of the largest destinations for Thomas Cook China’s outbound business. In 2018, over eight million Chinese travellers visited Japan, an increase of 12 per cent over the previous year.

Fate of Malaysia Airlines hangs in balance

Singapore’s luxury properties a drawcard for European buyers

Java tubing adventure turned deadly for agents

JAL’s new LCC to fly as Zipair

Seoul-Danang is APAC’s fastest-growing air route

Amadeus reveals trends shaking up retail travel industry

Singapore tour operator suspended

Aviation roundup: Qatar Airways, Hainan Airlines and more

Nha Trang seeks to overturn Europeans’ perceptions

Thomas Cook China, Hanatour team up to launch Japanese DMC

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