Older travellers still hungry for adventure: Rough Guides
Yield management firm for independent hotels plots APAC expansion
Zuzu Hospitality Solutions, a Singapore-based yield management service provider for independent hoteliers, has announced its regional expansion on the back of completing a S$5 million (US$3.7 million) Series A investment round.
Completed in 4Q2018, the Series A round for Zuzu was led by Wavemaker Partners with other existing investors Golden Gate Ventures, Convergence Venture, and Alpha JWC Ventures as well as new investors Access Ventures and Line Ventures.
The company was founded in 2016, and had raised a seed round of US$2 million in 2017 to allow it to invest in its product development.
With this new round of funding, the company is expanding its Asia-Pacific operations from its launch markets of Indonesia, Taiwan and Singapore.
The company has appointed veterans in the industry, Jake Coleiro as country manager for Australia and Prae Wattanalapa as country manager for Thailand.
According to Zuzu, less than one in 10 of the over 300,000 independent hoteliers globally use any sort of revenue management software. More than 10,000 of these independent hotels are in Thailand while Malaysia and Australia have 5,000 each.
Zuzu delivers an outsourced yield management solution for independent hotels. It couples a proprietary hotel operating system with a service model delivered by specialist revenue managers, said to deliver an average uplift of 30 per cent in online revenue.
Co-founder Dan Lynn said: “Zuzu is now the only complete outsourced yield management solution for independent hotels. Rather than dropping a piece of software on a hotel and expecting them to figure it out for themselves, we provide both the software and the service. We let hoteliers outsource their yield optimisation so they can focus on hospitality.”
Pandaw orders new vessel for Myanmar expeditions
Pandaw has ordered a new 14-cabin K-class ship for Myanmar, deeming the fleet expansion necessary as demand grows.
While the political situation in Myanmar has been linked to a decline in mainstream routings, Pandaw says the demand for small ship expeditions in the country has increased.
Moreover, having deployed three K-class vessels to India, the boat operator finds it necessary to order one more to meet the increased demand for Myanmar cruises, principally on the Upper Irrawaddy, Chindwin and Delta expeditions into remoter untouristed parts of the country.
Many of these are now fully booked for the coming season and a support vessel is “urgently needed”, Pandaw stated.
In the tradition of naming all K-class ships after original Irrawaddy Flotilla vessels, the new build is to be named the Kanee Pandaw, and is being built in Mandalay.
These safari-style vessels offer outdoor or indoor dining, run-round promenades and indoor and outdoor living space. The cabins are slightly smaller than on Pandaw’s larger ships.
Like all Pandaw’s expedition ships the Kanee will carry mountain bikes and is being aimed at a younger demographic and family travel into these remote reaches.
Pandaw founder, Paul Strachan, commented: “We began in Burma 25 years ago and remain attached to the country and its people. Since we started the Pandaw Charity in 2008 the company has funded the Pandaw Clinics programme providing essential health care to a whole region of the country; to me it is a personal mission to ensure that our business in Burma, despite recent political setbacks, continues to prosper so that we can maintain these funding commitments.”
Aviation roundup: Cebu Pacific, Garuda Indonesia and more
Cebu Pacific expands route network
Cebu Pacific (CEB) will expand its domestic destination network with thrice-weekly flights between Manila and Marinduque, commencing on April 1.
The route will be operated by subsidiary Cebgo using its fleet of brand-new ATR aircraft on Mondays, Wednesdays and Saturdays. The hour-long flight will shorten the travelling time from Manila to Marinduque by seven hours; the original trip takes eight hours by ferry and land transport.
In addition, CEB will launch three new domestic routes from Clark International Airport. CEB will mount daily flights between its hubs in Clark and Iloilo; as well as between Clark and Bacolod, starting August 9, 2019. Beginning October 9, 2019, CEB will mount daily flights between Clark and Puerto Princesa in Palawan.
Garuda spreads wings to Nagoya
Garuda Indonesia will soon launch a four-times weekly service between Jakarta and Nagoya on March 23.
Available on Tuesdays, Fridays, Saturdays and Sundays, the route will be operated with an Airbus A330 aircraft that offers 36 business class and 186 economy class seats.
GA884 will take off at 23.35 from from Soekarno Hatta International Airport and arrive in Chubu Centrair International Airport at 07.25 the next day. Return flight GA885 will leave Nagoya at 10.00 and arrive in Jakarta at 15.00.
Hainan Airlines launches two new routes
China’s Hainan Airlines has launched two new routes to Japan and France.
The first is between Haikou, capital of Hainan Province, and Osaka. The route will utilise a Boeing 737-800 aircraft and operate thrice-weekly on Tuesdays, Thursdays and Saturdays.
The outbound flight takes off from Haikou at 08.40, and will arrive in Osaka at 13.40. The return flight will depart Osaka at 14.40, and land in Haikou at 19.15.
On March 24, Hainan Airlines will also launch a weekly flight between Guiyang and Paris.
The airline will be serviced by a Boeing 787 Dreamliner, and takes off every Sunday. HU731 will depart Guiyang at 01.30 and arrive in Paris at 06.20. The return flight, HU732, will leave Paris at 12.30, and arrive back in Guiyang at 08.30 the following day.
This is the airline’s fourth non-stop route from mainland China to Paris following Xi’an-Paris, Chongqing-Paris and Shenzhen-Paris.
SIA embarks on wellness journey with Como
Singapore Airlines (SIA) and Singapore-based wellness brand Como Shambhala, part of the Como Group, have signed an MoU to bring wellness-related in-flight offerings to travellers.
Under the initial phase of this partnership, Como Shambhala will introduce its wellness cuisine on selected SIA flights in 2H2019.
These dishes will feature seasonal ingredients sourced sustainably. A new wellness menu featuring specially curated dishes will then be introduced across all classes, and co-developed dishes will progressively be made available in SIA’s Book the Cook service.
Lufthansa and Amadeus renews technology partnership
The Lufthansa Group and Amadeus have renewed their longstanding technology partnership.
Through the deal, Amadeus’ Altéa Passenger Service System (PSS) will continue to provide Lufthansa, Austrian Airlines, Brussels Airlines and Swiss International Air Lines with their IT systems for reservation, inventory and departure control. In addition, the Lufthansa Group and Amadeus are also expanding their partnership to add further areas of collaboration. Areas in which Amadeus technology is supporting the Lufthansa Group range from operations, and merchandising & shopping to disruptions management.
Emirates takes care of visa fees for Thai passengers
For a limited period, Thai passengers flying to Dubai with Emirates are eligible for a free 96-hour complimentary visa.
Passengers flying from Bangkok and Phuket before December 12, and who purchase tickets to Dubai before March 31, 2019, will be eligible for the offer. They will also be entitled to special fares that start from 16,110 baht (US$507) for Economy Class, and from 47,420 baht for Business Class.
The complimentary visa can be arranged by contacting Emirates’ office in Bangkok at least 10 days before departure date.
Travellers visiting Dubai or making a stopover in Dubai until March 31, 2019 can also benefit from discounts and other privileges across 500 participating retail, leisure and dining outlets with My Emirates Pass. To enjoy the discounts, passengers need to present their boarding pass and a valid form of identification.
Worst air pollution blankets Chiang Mai but tourism impact minimal
Chiang Mai’s current poor air quality is raising concerns on the potential impact on tourism as Thailand’s Songkran water festival approaches, although other business challenges appear to weigh more on the minds of travel players.
Smog has been a yearly occurrence in Northern Thailand, but this year the situation appears to be the worst with Chiang Mai topping the air pollution ranking and media reports swirling.
La-iad Bungsrithong, general manager of Ratilanna Riverside Spa Resort and president of the Thai Hotels Association (Northern Chapter), shared that there appears to be a short-term decline in the market.
However, she attributes the current performance to March being part of the traditional low season rather than the pollution, adding that there has been no booking cancellation from leisure or MICE guests.
The Songkran festival typically sees leisure demand for Chiang Mai from South-east Asia, Europe, China and Thailand. According to La-iad, room occupancy in April last year was 65 per cent, reaching 85 per cent during the Songkran period (April 12-14).
She expects similar figures for Songkran this year but also greater competition arising from new hotels in Chiang Mai and Airbnb.
Similarly, a spokesperson of Standard tour, Somchai Sandnee, said the company’s business has not been affected by the air pollution. Chinese tourists are less perturbed by smog issues than political turmoil and recent events such as the boat accident in Phuket last year, Somchai pointed out.
Chotechuang Soorangura, associate managing director of NS Travel & Tours, too does not see the smog having an impact on sales.
“The smog is considered an annual situation and our company always (issues) an advice to customers. In the case where customers really want to visit Chiang Mai, we will suggest they limit their stays in the city in favour of other provinces instead such as Sukhothai,” Chotechuang explained.
Smailing rebrands leisure division to emphasise flexible itineraries
Smailing Tour has rebranded its leisure division into Smailing Xperiences and introduced greater flexibility for customers at a time when travellers can more easily plan and book their own trips.
Speaking at the launch of Smailing Xperiences in Jakarta on Monday, Bernard Akili, group chief marketing officer of Smailing Tour, said: “In this era of technology enhances and convenience, customers have the freedom to choose their own suitable products and services. Hence, Smailing Tour feels obliged to provide something different for our customers.
“Smailing Xperiences starts with listening to the customers and fulfil what they want and not (giving them) what travel agent wants.”
Giving an example, he said that most available products in the market were strictly scheduled trips, which at times only allow travellers to see things and take pictures, before hurriedly moving on to another attraction.
“Smailing Xperiences will not only take travellers to see the destination but understand more about the places. When visiting Australia, for example, travellers will not only be able to take pictures in front of the Opera House, but get to learn their behind-the-screen activities. (Other examples include) having (real interactions) with an Emirati in Dubai, or enjoying a bar and pub crawl in Osaka,” Bernard said, adding that this all can be done at reasonable prices.
Smailing Tour has also come up with product categories such as FamilyX, SportsX, CultureX, FoodieX, AdventureX and PhotographyX. Each category presents a menu of experiences for travellers to pick and include in their individual itinerary, akin to creating their own package.
For photography enthusiasts for example, they can pick Ping Shan Heritage Trail Polaroid Workshop when visiting Hong Kong. Foodies to Japan may visit a local home and learn how the host prepares a home-style lunch, or have lunch with orangutans at Bukit Lawang in Medan for domestic trips.
Jason Lim, CEO leisure outbound & DMC Smailing Tour, explained: “These are targeted for FITs, but we will also create special interest group tours, bringing with us experts in the fields (relevant to trip content), such as a professional photographer, chef or top Indonesian golfer.”
While Smailing Tour will continue to sell traditional group tours, which will fall under the category of ClassicX, Lim said there would still be a couple of experiences added to current tour packages.
On the background and readiness of the Indonesian market to take up this concept, Lim said growing FIT demand will be a natural evolution of the travel market.
“With millennials (becoming more travel-savvy), more people opt to book their own flights, pick their own time to have a holiday and the Indonesians are moving towards this direction too,” he said.
“What we are offering is (more) flexibility to do their holiday, including if they just want to (do just one programme) per day, or combine items from different trip categories to meet the needs of family members,” Lim continued, adding that each tour item has a price tag so travellers can arrange the ones that will be within budget too.
JAL, Travelport join forces to launch GDS tailored for Japanese market
Japan Airlines (JAL) and Travelport Worldwide will establish a joint venture to take ownership of Travelport Japan KK and JAL’s fully owned subsidiary, Axess International Network, and establish a GDS tailored to the needs of the Japanese travel industry.
The proposed joint venture, which will operate under the unified Travelport Axess brand name, is expected to be formed on June 1, 2019 following the signing of a definitive agreement between both companies.
Under the planned agreement, Travelport will hold a majority stake in Travelport Axess, with JAL controlling the remaining stake and playing an active role in the joint venture.
Travelport Axess will continue to offer travel agents services through Axess’ GDS platform, Axess, and enable access to Travelport’s GDS platforms, Apollo and Galileo.
The proposed joint venture will provide online, mobile and corporate travel propositions including global booking and expense management tools as well as access to New Distribution Capability (NDC) content for Japanese travel agencies and their customers.
Gordon Wilson, president and CEO of Travelport, commented: “This announcement and our ongoing partnership with JAL is a significant advance in the provision of state-of-the-art technology for the Japanese travel industry. We are very excited about the growth opportunities it presents for our mutual travel agency customers.”
Yoriyuki Kashiwagi, JAL’s executive officer of international passenger sales, said that Travelport Axess will enable “Japanese travel agents to respond to growing global demands by offering services based on state-of-the-art technology”.
Travelport Japan and Axess will continue to operate independently, with a gradual integration programme to combine the two organisations commencing later this year.
Low-key launch of anticipated Boeing aircraft amid 737 Max trouble
It was a quiet unveiling of world’s longest passenger plane for Boeing amid trouble with the 737 Max 8, whose new MCAS system is at the centre of two fatal plane crashes in recent months.
The American aircraft manufacturer’s plans to debut the Boeing 777X was delayed following the crash of its aircraft operated by Ethiopian Airlines Flight 302. Eventually, the new wide-body jetliner’s launch was kept modest to respect the recent loss.
The Boeing 777X was unveiled to employees at a press free event, which presented a 252-feet wide-body jetliner, longer than the 777-300ER, Airbus A340-600, and current record-holder, the 747-8.
Boeing says the 777X will be the world’s largest and most efficient twin-engine jet.
Engineers created a wing-fold mechanism, a first for a civilian airliner, to allow the 777X, with a 235-feet wingspan, to fit at existing airports handling the narrower 777s.
The cabin interior of the 777X is “inspired by the comforts and conveniences of the 787 Dreamliner, with larger windows, a wider cabin, new lighting and enhanced architecture”.
The 777-9 is the larger of the two 777X models, designed to seat between 400 and 425 passengers in two classes and fly routes of 14,075km.
The 777-8 will follow, seating between 350 and 375 passengers. With a range of over 16,000, the plane is a contender to the Airbus A350ULR for the world’s longest-range airplane.
According to a CNN report, eight airlines have placed 358 orders and commitments for the new jetliner. Dubai-based Emirates will get the first 777-9 next year and the 777-8 will follow two years later.
The maiden test flight for the 777X is scheduled for later this spring.
Most adventure tour operators still rely on travel agents for sales: ATTA
While one may expect that technology has made it easier for people to book their own travel, 87 per cent of tour operators working in the adventure travel industry currently work with travel agents, according to new research report published by the Adventure Travel Trade Association (ATTA).
Tour operators reported being primarily motivated to work with travel agents because they offer a new sales channel. Trevor Saxty, president of Explore, said the company began using travel agents more than 30 years ago to expand the company’s distribution efforts in order to reach the widest possible range of travellers.
“Our primary interest in working with agents is to partner with them to grow their business and ours by connecting new travellers with the experiences we offer and then keep them coming back year after year,” he said.
Findings from ATTA’s Travel Leaders Companion Survey Digest support the importance these relationships have in promoting financial growth. Though less than 30 per cent of sales come through agents, 63 per cent of tour operators have experienced growth through the agent channel.
Perhaps it’s to be expected that well-established tour operators – those in business before online booking even existed – continue to tap into the expertise of travel agents. However, it’s not only seasoned tour operators utilising travel agency services. “We partnered with STA Travel from the very beginning two years ago,” said Bruce Haxton, managing director of The Tuk Tuk Club, an operator based in Northern Thailand.
“The simple reason is that it allows us to gain a reach for our adventures that would be incredibly difficult – and expensive – to do so under our own steam. A good travel agent, and a global one like STA, can get us in front of so many more eyes than we could directly.”
With access to this new channel comes credibility as well – another reason tour operators reported working with travel agents.
Haxton noted the recognition of a travel agent like STA can boost customer confidence when booking with a new tour operator. Travel agents also add a personal touch both during the buying experience and during their travels. “We pride ourselves in personalised trips,” said Ryan Connolly of Hidden Iceland.
While tour operators are interested in booking through travel agents, there is still a continued need for mutual education and understanding to address the complexity of these transactions.
Commenting on the complexities, Connolly said: “Once we have one successful trip with a travel agent, the relationship has been created. When we receive feedback from their customers that they had a wonderful time, we now have an advocate for our company, which can use their network to emulate future trips… And the more trips we run with them, the clearer an image they have on how we work and it can streamline the whole process.”
Adventure in travel is not just the domain of the young, according to a recent study.
Travel publisher Rough Guides released its findings from a poll of 2,000 adults age 40 and above shortly after its foray into creating bespoke trips “packed with personality and adventure”.
The study showed that over 40s reckon they have only visited a quarter of the countries they dream of going to around the world with popular backpacking destinations New Zealand, Canada, and Australia top of the list. It also emerged that more than six in 10 are already looking forward to at least one trip abroad in 2019.
Notably, three in 10 in the over 40s age group reckon they are more adventurous with their holiday choices now than they ever used to be, with 38 per cent preferring to go off the beaten track when they travel abroad.
Rather than sitting by the pool, a fifth of over 40s have tried snorkelling on a trip abroad and more than one in 10 have been on a safari.
On top of the propensity to see the world, age also affords greater freedoms to travel. Nearly half of over 40s polled say they go on more holidays now than at any other point of their lives, with six in 10 putting this down to having more money now than they did in the past.
A quarter think it’s easier to get away and go jet-setting around the globe because their kids are older, while 46 per cent have more time, according to the research. Another 40 per cent think their lives have simplified enough so they now have more freedom – in their 50s or beyond – to see the globe.
Aimee White, editor at Rough Guides, said: “Travel is no longer the sole preserve of the young. It is important that the travel industry gives older travellers the same opportunities to have adventurous travel experiences as younger people if they want to and not dismiss them as being too ‘old’ or ‘boring’.”