Chinese travel spending, mobile transactions on the up: Alipay

January 31, 2019

Last year, the average budget and actual spending of 2,806 Chinese outbound travellers surveyed in a study by Nielsen and Alipay increased to US$6,026 (+6%) and US$6,706 (+15%) respectively.

Outbound Chinese tourists travelled to more destinations in 2018, with respondents visiting an average of 2.8 countries/regions, up from 2.1 in 2017.

Of those surveyed in the Alipay study, more transactions were made using mobile payment than cash

The study further showed that more Chinese tourists are adopting mobile payment while travelling overseas with more than two-thirds (69%) paying with their mobile phones abroad, up 4% from the previous year.

On their most recent overseas trips, Chinese tourists paid for 32% of transactions using mobile payment, overtaking cash for the first time.

In 2018, about three-quarters of Chinese tourists used mobile payment on their most recent trips to Singapore, Thailand or Malaysia, surpassing that for the US and Canada (61%), the UK, France and Germany (60%), as well as Australia and New Zealand (68%).

What this indicates, according to Alipay, is that South-east Asian merchants are leading when it comes to benefiting from Chinese mobile payment.

The study revealed that 90% of surveyed merchants in Singapore, Malaysia and Thailand reported encountering Chinese customers who asked if mobile payment was accepted in their stores. Meanwhile, 93% of surveyed Chinese tourists indicated they would likely increase their spending if mobile payment was more widely accepted – a higher figure than that in 2017’s survey.

Some 58% of surveyed merchants located in areas frequented by Chinese tourists in Singapore, Malaysia and Thailand accept mobile payment, with 70% of that number accepting Chinese mobile payment. By comparison, only 12% of them accepted Chinese mobile payment in 2016.

Retail merchants in particular, saw the highest adoption rate of Chinese mobile payment solutions, with 75% of supermarkets and convenience stores and 71% of duty-free stores now accepting mobile payment.

Red Planet Japan grows portfolio with acquisition of Thailand hotels

By TTG Asia

January 31, 2019

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red planet nagoya nishiki — Red Planet Nagoya Nishiki

Red Planet Japan will acquire Thailand-based hotel operations from its parent company Red Planet Hotels for 6.6 billion yen (US$60.4 million), with the deal expected to be completed by the end of 1Q2019.

The acquisition includes five operating hotels, located in Bangkok’s Surawong and Asoke, Phuket’s Patong, Pattaya, and Hat Yai, and a sixth property under development in Bangkok’s Sukhumvit Soi 8. The operating hotels being acquired in Thailand recorded sales equating to 693 million yen in 2017 and 787.1 million yen in 2018.

The acquisition includes five operating hotels and one under development

This will increase Red Planet Japan’s portfolio to a total of 15 hotels in Japan, Thailand and the Philippines, including five hotels under development.

“Bilateral tourism is showing sustained growth, particularly among millennial customers who are Red Planet’s core customer base,” said Red Planet Japan’s CEO, Tim Hansing, in a statement. “This acquisition allows us to spread our geographical coverage and, in particular, penetrate key source markets for inbound visitation to Japan.”

This acquisition follows a series of expansion announcements by Red Planet Japan, including the planned opening of Red Planet Hiroshima Nagarekawa in summer 2020, and acquisition of two flagship properties in Manila in June 2018. The brand also opened Red Planet Sapporo Susukino South, its fifth hotel in Japan in June 2018, and expects to open its second property in Sapporo, Red Planet Sapporo Susukino Central, in October 2019.

Simon Gerovich, chairman of Red Planet Japan, added that its recent joint venture with GreenOak has enabled the investment of 22 billion yen in six new hotels over the next two years, as the company now has “the scale to attract new growth drivers such as franchising, management contracts, and joint ventures in both existing and new markets”.

Stronger growth for APAC airlines in 2018

By TTG Asia

January 31, 2019

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Generic-Aeroplane — APAC airlines carried a combined total of 356.6 million passengers last year

The region’s airlines recorded a firm 7% increase in number of international passengers carried to 356.6 million in 2018, a stronger growth than was seen in the preceding year, according to preliminary figures released by the Association of Asia Pacific Airlines (AAPA).

In revenue passenger kilometres (RPK) terms, demand increased by 6.9%, reflecting broad-based demand on both short- and longhaul markets. After accounting for a 6% increase in available seat capacity, the average international passenger load factor edged 0.6 percentage points higher to 80.6% for the year.

APAC airlines carried a combined total of 356.6 million passengers last year

Commenting on the improved growth, Andrew Herdman, AAPA director general, said: “New routes and frequencies provided more options to travellers, sustaining the growth in demand. In addition, while airfares rose in response to higher oil prices, ticket prices remained relatively affordable, capped by stiff competition.”

After several years of declines, passenger yields were lifted by higher average airfares and record high load factors, he further shared.

However, cost pressures continued to increase, with higher fuel expenditure driven by a 30% increase in jet fuel prices which averaged US$85 per barrel for the year, despite falling back significantly towards the end of the year.

Looking ahead, Herdman said: “Whilst expectations of continued moderate growth in the global economy should lend further support to travel markets in the coming months, there are some downside risks including weakness in trade activity and potential erosion in business and consumer sentiment. The region’s airlines are alert to such factors which may affect the market environment, but remain focused on cost management, and investing in future growth opportunities.”

Ctrip, Shangri-La deepen partnership to target Chinese travellers

By TTG Asia

January 31, 2019

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Shangri-La_Hotel_Singapore_Tower_Wing_Lobby — Shangri-La Hotel Singapore

After its recent Klook deal, Shangri-La Hotels and Resorts is announcing another online travel partnership, this time with Ctrip.

The agreement enables Shangri-La Group’s brands – including Shangri-La, Kerry, Hotel Jen and Traders – to be directly connected and promoted on Ctrip’s platform.

For the Hong Kong-based hotel group, the partnership also means “working with (Ctrip’s) robust network of resources to help broaden the distinctive experiences Chinese travellers are increasingly looking for”, said Oliver Bonke, Shangri-La president and COO.

For Ctrip, the alliance is a reflection of the Chinese OTA giant’s effort to provide better hotel services and products to its users which number more than 300 million.

Princess Cruises touts largest at-sea balconies

By TTG Asia

January 31, 2019

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sky-suite-Princess-Cruises — Sky Suite Princess Cruises

Princess Cruises says it is introducing the cruise industry’s largest balconies at sea onboard its new ships Sky Princess, launching in October 2019, and Enchanted Princess.

Available for booking now are two Sky Suites accommodation, with balconies measuring 94m² (starboard side Sky Suite) and 88m² (port side Sky Suite), which provide a private vantage of Sky Princess‘ Movie Under the Stars screen from their central location on the top decks.

Providing 270-degree panorama views and sleeping capacity for five guests, Sky Suites feature two bedrooms, two bathrooms and a dining area.

Sky Suite guests will have access to a pre-cruise, shoreside concierge, and once on board will be able to enjoy a private suite experience manager, complimentary access to the Lotus Spa’s Enclave, balcony dining and a telescope for the Discovery Stargazing at Sea programme.

More exclusive Sky Suites services are expected to be announced in the coming months.

Sky Princess debuts in the Mediterranean in October 2019 and Enchanted Princess sets sail in Europe in 2020. They each carry 3,660 guests.

Aviation roundup: NokScoot, Jetstar and AirAsia

By TTG Asia

January 31, 2019

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NokScoot zips off to Shanghai
NokScoot has expanded its route network in China with the launch of direct flights from Bangkok to Shanghai.

The inaugural flight will take off from Bangkok’s Don Mueang International Airport on February 25, 2019 with four flights a week, with the route set to become a daily service from March 4, 2019.

The airline will use a Boeing 777-200 jet with a total of 415 seats on this route. There will be 24 seats in Scootbiz and 391 seats in Economy.

Jetstar adds Xuzhou to route network
Jetstar Asia has launched a thrice-weekly service from Singapore to Xuzhou in China’s Jiangsu province, in partnership with Nanjing Oriental International Travel Agency.

The route is the only direct service between Singapore and Xuzhou, and will be operated using an A320 aircraft.

Flight 3K831 will depart Singapore on Tuesdays, Thursdays and Saturdays at 05.00, and land in Xuzhou at 10.20. Return flight 3K832 will depart on the same days at 11.20, and arrive in Singapore at 16.40.

AirAsia links Bangkok and Can Tho
Starting May 2, AirAsia will start flying between Bangkok’s Don Mueang airport and Can Tho, the largest city in southern Vietnam’s Mekong River Delta.

FD680 will depart Bangkok at 11.20, and arrive in Can Tho on Tuesdays, Thursdays and Saturdays. Return flight FD681 will depart on the same days at 13.30, and arrive in Bangkok at 15.00.

EU Holidays looks to net high-value clients from new address

By Pamela Chow

January 30, 2019

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eu-travel-expo — EU Holidays' new service centre at Suntec City

Singapore’s EU Holidays, which moved to a larger space in Suntec City Convention & Exhibition Centre earlier this month, is looking to capture more high-value customers including PMETs.

“With the current major competition from online players, expanding as a traditional travel agency with this physical space is a very bold move,” expressed Ong Han Jie, managing director of EU Asia, the regional travel arm of EU Holidays.

EU Holidays’ new service centre at Suntec City

The relocation was cemented after a series of client surveys conducted last year showed “that we have a steady flow of regular customers”, explained Ong.

It is also in line with the agency’s move towards the higher-end segments – both by allocating space for greater comfort and better service, and by placing itself in proximity to PMETs and corporate clients.

Ong elaborated: “We’re coming here to a different league. Suntec sees more PMETs, so we must grow in our service level to match higher expectations of service. At Suntec, we should have enough space to grow our staff strength as well.”

“There’s been a rise in demand for customisable tours. People who can pay, and large groups like a family of eight, want something that’s customised to their own liking, and they want to be served in a VIP room.

“With the lounge, we will be able to serve them in a closed-door room with sofa seats and WMF coffee, letting them feel like they are already taken care of before the tour,” he said.

From its new location, EU MICE will also be able to gain exposure and access to potential corporate clients in the area, whose banks are situated nearby.

The new centre, named EU Travel Expo, is more than double the size of its previous centre at Chinatown Point. The 1,022m² space comprises service counters each specialising in a destination region, tour packages or cruise products; a private coffee and reading lounge; a conference room sitting up to 100; a briefing room with a capacity of 35 seats; as well as EU Holidays’ corporate office.

The conference room is supported by Genting Cruise Lines, and the smaller briefing room is supported by Europamundo. These are used for pre-tour briefings, as well as events or training sessions.

ASTA calls on industry to switch from travel ‘agents’ to ‘advisors’, sets up new Myanmar chapter

By TTG Asia

January 30, 2019

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travel-agent-advisor — From booking agents to travel advisors

The American Society of Travel Agents (ASTA), which rebranded as the American Society of Travel Advisors in August 2018, is urging the travel industry to “speak with one voice” by making the terminology switch from ‘travel agents’ to ‘travel advisors’.

This name switch, according to ASTA, is a reflection of the revitalisation that has been underway in the travel industry for several years and sends a key message to the travelling public and the broader industry, as consumer media and travellers themselves are also embracing this shift from agent to advisor.

“Today’s travel agents are no longer mere booking intermediaries. They have become trusted advisors — akin to financial planners and CPAs — who make the overall travel experience better and provide both leisure and business travelers maximum value for their travel dollar,” the ASTA wrote in an open letter to the travel industry.

“The term ‘advisor’ not only more accurately describes the value our members provide to consumers but also serves as a distinct declaration of who we work for: the travelling public,” the society added.

“Terminology still matters”, and it is hence critical that “all industry stakeholders speak with one voice when it comes to describing our business”, wrote ASTA.

Earlier this month, ASTA announced on its Facebook page the launch of its newest chapter in Myanmar. ASTA’s vice president of international membership & expansion Bob Duglin met with the ASTA Myanmar Chapter president Kyaw Bohne Naing, several of the 100 chapter members, and Myanmar’s minister of tourism Ohn Maung in a recent meeting in Yangon.

Myanmar is the latest addition to ASTA’s existing Asia chapters in China, the Philippines, Nepal, Sri Lanka and the Maldives.

Greater state incentives to help Malaysian airports lure international flights

By S Puvaneswary

January 30, 2019

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Tourism-Malaysia-JITDP — From left: Malaysia Airports' Emelia Tay Ling Imm; Tourism Malaysia's Musa Yusof; Minister of tourism, arts & culture Malaysia Mohamaddin Ketapi; Ministry of Transport Malaysia's Kamaruddin Jaafar; Malaysia Airports' Raja Azmi Raja Nazuddin; Ministry of Tourism, Arts & Culture Malaysia's Haslina Abdul Hamid; and Ministry of Transport Malaysia's Jana Santhiran

Malaysia Airports Holdings (MAH) and Tourism Malaysia yesterday sealed an MoU for an enhanced version of the Joint International Tourism Development Programme (JITDP), which aims to increase inbound arrivals by incentivising airlines and charterers on their Malaysia campaigns and tacticals.

Following the successful launch of the pilot project last year, the programme’s budget has been increased by another RM5 million (US$1.2 million) this year, bringing it to a total of RM20 million, which will be shared equally between the two government entities.

From left: Malaysia Airports’ Emelia Tay Ling Imm; Tourism Malaysia’s Musa Yusof; Minister of tourism, arts & culture Malaysia Mohamaddin Ketapi; Ministry of Transport Malaysia’s Kamaruddin Jaafar; Malaysia Airports’ Raja Azmi Raja Nazuddin; Ministry of Tourism, Arts & Culture Malaysia’s Haslina Abdul Hamid; and Ministry of Transport Malaysia’s Jana Santhiran

In its second year, JITDP aims to further increase arrivals particularly from medium- and longhaul markets.

Tourism Malaysia director-general, Musa Yusof, is looking at attracting more arrivals from Russia and CIS countries, as well as the Middle East, which are both long-stay markets for Malaysia, with the latter among the top spenders in the country.

While there is no target number set, Musa hopes that all the allocated funds will be used by the end of the year.

To utilise the funds, airlines and charterers will have to submit their plans for campaigns or tacticals for inbound flights to Malaysia, which will be reviewed by both Tourism Malaysia and MAH.

Once approved, the funds can be used to cover 50 per cent of the total cost of marketing and promotions of Malaysia, with the airline bearing the remaining 50 per cent. Last year, 10 airline companies benefited from the programme.

Malaysian Association of Hotel Owners executive director Shaharuddin Saaid said the onus of success of JITDP rests on Tourism Malaysia.

He told TTG Asia: “Tourism Malaysia has to work hard to promote Malaysia to ensure the flights coming in are full or nearly full. If JITDP manages to attract new airlines, but the flights coming in are half full, there is no point as the airline will not sustain its services for long.”

Uzaidi Udanis, president, Malaysia Inbound Tourism Association also urged local tour operators to actively take part in and support JITDP by promoting Malaysia to their overseas partners to stimulate interest, which will in turn attract new airlines and charter flights to consider flying to Malaysia.

“We are going to educate our members on this programme and identify overseas airlines and partners who can benefit,” Uzaidi said.

Outrigger unveils new corporate name, brand structure

By TTG Asia

January 30, 2019

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Outrigger Enterprises has announced the brand’s change of name to Outrigger Hospitality Group in line with a company-wide initiative to restructure its multi-brand portfolio and solidify its position in the beach resort segment.

In a statement, Outrigger said its corporate name change provides the brand clarity and structure for strategic growth of its domestic and international collection.

Giving greater clarity to portfolio of Premier Beachfront Resorts, ‘by Outrigger’ branded locations and third-party managed properties

Three core categories under Outrigger Hospitality Group include its Premier Beachfront Resorts in Hawaii, Fiji, Thailand, Guam, Mauritius and the Maldives; its “by Outrigger” branded locations and its third-party managed properties.

The new structure also delivers opportunities for Outrigger Hospitality Group to impart its retail, development and management expertise, according to the company.

Outrigger Hospitality Group is already moving forward with executing developments within this structure, including a US$200 million Waikiki modernisation masterplan over the next two to three years, incorporating the transformation of the flagship Outrigger Reef Waikiki Beach Resort and opening of the new Voyager 47 Club lounges.

Brand new for 2019 is the debut of Outrigger’s first lifestyle hotel, Waikiki Beachcomber by Outrigger – which underwent a $35 million full makeover and now offers a modern Waikiki vibe.

Outrigger recently acquired Honua Kai Resort & Spa’s on-site resort rental programme interests. The Maui condo resort offers guests luxurious suites alongside a full-service concierge, Ho’ola Spa and Duke’s Beach House restaurant.

“The evolution to Outrigger Hospitality Group is a bold beginning for 2019 that bridges our company’s 70-year legacy of hospitality with a brand strategy centred on delighting today’s (travellers),” said Jeff Wagoner, president and CEO.

Chinese travel spending, mobile transactions on the up: Alipay

Red Planet Japan grows portfolio with acquisition of Thailand hotels

Stronger growth for APAC airlines in 2018

Ctrip, Shangri-La deepen partnership to target Chinese travellers

Princess Cruises touts largest at-sea balconies

Aviation roundup: NokScoot, Jetstar and AirAsia

EU Holidays looks to net high-value clients from new address

ASTA calls on industry to switch from travel ‘agents’ to ‘advisors’, sets up new Myanmar chapter

Greater state incentives to help Malaysian airports lure international flights

Outrigger unveils new corporate name, brand structure

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