TTG Asia
Asia/Singapore Monday, 22nd December 2025
Page 1374

Upsurge in customised travel demand for Chinese outbound market

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Young, time-strapped tourists in Europe

Chinese demand for customised travel surged 300 per cent in 2017, with European destinations most favoured among those eschewing traditional package deals, according to a joint research by ForwardKeys and the China Outbound Tourism Research Institute (COTRI).

Summer bookings are ahead 13.5 per cent, and there are currently over 120,000 new orders a month, representing a market share of almost 15 per cent, according to the study.

Young Chinese tourists in Paris

Data from ForwardKeys, which predicts future travel patterns by analysing 17 million booking transactions a day, further shows that China bookings for Europe are ahead 10.5 per cent this summer.

Europe – and particularly the UK – are the destinations most favoured by the new breed of Chinese travellers opting for customised holidays.

This group of travellers tend to be younger than average, “money-rich and time-poor”, ForwardKeys observes. They are prepared to pay more than average for the chance, for instance, to stay in a glass igloo in Finland or propose to their partner in front of the Eiffel Tower.

And according to Chinese OTA Ctrip, travellers customising their holidays typically spend around US$400 per person per day, a number set to grow further.

Until recently, mass-market package tour groups from China drove inbound volumes for destinations, but their spending was limited to famous landmarks during high seasons. Ctrip says the trend is to make customised travel an “affordable luxury”, available to more Chinese.

Wolfgang Georg Arlt, COTRI founder, said: “Europe is a perfect example of destinations that have great potential to fulfil the demand for customised travel from China, owing to its rich history and broad cultural diversity.”

ForwardKeys CEO and co-founder, Olivier Jager, added: “There is a bright future for organisations involved in Chinese travel to Europe. As a longhaul destination, Europe has the largest market share of Chinese outbound travel, receiving 9.3 per cent of the market. Over six million Chinese citizens visited Europe as their first stop in 2017; and our figures show more growth this year.”

With the growing popularity of customised holidays, the demand for travel service providers has not waned, Arlt remarked.

“Visas, entry tickets and transport can be difficult for individual travellers to arrange by themselves and even more so in the face of language barriers. The time difference and varied ways of communicating can present complications to those travellers who are making their own arrangements. Accordingly, there is a strong demand for travel professionals to provide extensive travel services.”

World Expeditions seizes majority share in Blue Mountains Adventure Company

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Canyoning

Australia’s World Expeditions Travel Group (WETG) has acquired a majority shareholding in the Blue Mountains Adventure Company.

Blue Mountains Adventure Company operates day-long canyoning trips in the Blue Mountains, particularly the lesser known canyons such as Wollangambe, Serendipity and Yileen. It handles small group adventure – with groups of friends, schools and corporate groups making up the majority of the 4,000 clients it hosts each year.

Canyoning is at the company’s core, but with the acquisition, it will be developing a range of guided trips 

The acquisition, which takes the number of brands within WETG to to 13, provides World Expeditions with a new operational base near Sydney, complementing its existing domestic operations in Alice Springs, Darwin and Launceston.

According to World Expeditions CEO, Sue Badyari, the company plans to develop a range of guided and self-guided walking trips in the Blue Mountains region, while remaining committed to its canyoning specialisation.

“World Expeditions has had a long held desire to have an operational base in the Blue Mountains and the acquisition provides that with its Katoomba office, allowing us to provide even more opportunities for our guide team to have year-round employment, with operations based out of four Australian centres,” Badyari said.

The Blue Mountains Adventure Company director, Dylan Jones, will stay on with the business for the next 12 months.

Hilton Phuket Arcadia Resort & Spa welcomes new GM

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Hilton Worldwide has appointed Markus Kosch as general manager of the Hilton Phuket Arcadia Resort & Spa.

Kosch was most recently general manager of Conrad Guangzhou.

A 22-year veteran in the hospitality industry, Kosch began his career with Hilton Worldwide at Hilton Shanghai. In 2012, he served as cluster general manager of several Hilton properties in Sanya-Haitang Bay and Dalian.

Tech giants Google and Alibaba are bigger travel threats than ever

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Travel tech players not the only competition

While much attention in the travel industry has been given to “disrupters” like Airbnb and Uber, the continual foray of tech giants into the travel space is increasingly posing a bigger worry for industry players in the longer term.

The huge growth potential in the online travel space, particularly in Asia-Pacific, is attracting attention from non-travel players, noted Rob Brown, Travelport’s group vice president and managing director – OTA, speaking during a panel at the recent Travelport Live conference in Bangkok.

Travel tech players not the only competition; Google is fast making inroads with the all-important data advantage on it side

“We’re not looking at competition among ourselves – which OTA is growing the fastest or online versus offline,” he remarked.

“Competition is really coming from big technology players. Certainly, Google and Alibaba are already very much in the travel space, but many other companies are coming along as well.”

A poll conducted during a panel discussion at Travelport Live revealed that most attendees regarded Google the biggest threat to travel brands, more so than other tech companies like Facebook, Amazon, Alibaba or Tencent.

As Google fleshes out its flight and hotel comparison tools, Expedia is feeling the heat too, said James Marshall, the OTA giant’s vice president, transport partner services, Asia-Pacific.

Search engine heavyweights such as Google and Baidu are perceived as a major threat

“We have a complex relationship with Google. We are probably one of their biggest customers but we’re in a way competitors; they have Google Flights and we work with them. We work as competitors providing content but as competitor they’re also great source of business sources for us,” he conceded.

Gawin Tsang, e-commerce manager, IT department, Nan Hwa (Express) Travel Service, a B2B travel wholesaler in Hong Kong, is also wary of Google’s travel push. “Google is already a competitor. Everyone can get info easily through search,” he said.

“The more channels that Google gets into, the harder it is for us to survive. We need to sell more to get the same revenue,” remarked Tsang.

He pointed out that both Apple and Google already own 90 per cent of the mobile ecosystem, which allow these two tech giants to easily capture travel data and get insights on what they’re looking for. “It’s only a matter of how, not when,” he said.

Amid intensifying competition, Brown urged travel players to do an “outstanding job with data”, in order to better deliver customer personalisation in an age where travellers are valuing experiences over assets.

Questioned Brown: “We need to stay relevant. Do you want to be an innovator and come along for the journey or be left behind?”

Alipay and STB join forces to market Lion City to Chinese travellers

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Alipay and the Singapore Tourism Board (STB) are broadening their partnership with the launch of joint marketing activities to promote Singapore and drive tourist spending among Chinese visitors.

The marketing activities are designed to incentivise Alipay users, through rewards and discounts, to spend across different types of tourism businesses such as retail, F&B and attractions, further boosting their spending in Singapore.

China is Singapore’s (pictured) top market both in terms of tourism receipts and visitor arrivals

Alipay and STB will also create tailored itineraries that are aligned with STB’s new Passion Made Possible brand. These itineraries are meant to encourage Alipay users to “pursue their passions by exploring and discovering new attractions, dining and shopping experiences”. It will also give them more reasons to visit and spend more in Singapore.

Additionally, the partnership is expected to leverage Alipay’s insights to deepen STB’s understanding of Chinese visitors’ consumer behaviour.

Since signing an MoU last September to explore co-investing in joint-marketing initiatives to encourage Chinese tourists to spend with Alipay while in Singapore, the payment platform has experienced double-digit growth in user spending.

China has also become Singapore’s top market in 2017 for both tourism receipts and visitor arrivals, contributing S$4.2 billion (US$3.1 billion) in tourism receipts and 3.2 million visitor arrivals.

“We hope to continue to broaden over time our partnership with Alipay to explore more innovative marketing initiatives in the areas of content, digital and technology to further enhance the Chinese visitor experience,” said Jacqueline Ng, director, marketing partnerships & planning, STB.

“Singapore is a favourite destination for Chinese travellers. According to research released by Nielsen last year, it is one of Chinese tourists’ top 10 preferred travel destinations in the world… At the same time, we are excited to connect more merchants in Singapore with Chinese tourists and be discovered by them through the app,” commented Cherry Huang, general manager, cross-border business for South and South-east Asia, Alipay.

According to the recent Nielsen report, jointly released with Alipay, over 90 per cent of Chinese tourists would consider using mobile payments when traveling overseas if more overseas merchants accepted them.

Business as usual for Bali cruise tourism despite Benoa port fire

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While the Port of Benoa Bali remains intact for cruise ships after a massive fire at the port last Monday, tourism players in Bali say there’s work to be done to address the safety concerns that have emerged from the incident.

A fire broke out at the port last week, destroying the boats of at least 39 fishermen. The cause of the fire has not been determined at press time.

The massive fire at Port of Benoa Bali was mainly in its west zone, not affecting cruise ships

In a statement, the state-owned port operator Pelabuhan Indonesia (Pelindo) III assured that all operational activities at Port of Benoa were safe and running smoothly.

I Wayan Eka Saputra, Pelindo III’s regional general manager for Banyuwangi, Bali and Nusa Tenggara, explained that the extinguishing process did not interfere with port activities, including where cruise traffic is concerned.

In fact, the Equanimity Cruise successfully docked on the east pier on the day the fire broke, he said.

He explained: “The jetty at Port of Benoa has a U shape – the west zone is for fishing boats, and the east dock is (for cruises) and cargo/container vessels. Only the west zone was affected.”

Ida Bagus Lolec Surakusuma, managing director, Pacific World Nusantara, remarked that the fire has had no impact on cruise business.

Ketut Sediya Yasa, managing director of Destination Asia Indonesia, also saw minimal impact as it is now low season for cruising.

However, he expects the authorities to communicate to the international community about the fire and tighten safety measures at the harbour.

Otherwise, cruise operators are likely to reconsider docking at Benoa, he opined.

“Communication is vital to convince cruise operators to make a call here,” said Yasa.

Taiwan extends visa-free scheme for Philippines, Thailand and Brunei

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Taiwan’s Ministry of Foreign Affairs (MOFA) last week announced the extension of its 14-day visa-free entry trial programme for nationals from Brunei, the Philippines and Thailand.

The decision followed a June 11 inter-ministerial meeting convened by MOFA. The trial of visa-free treatment for nationals from these three countries will continue for another year from August 1, 2018 through July 31, 2019, with a possible extension in the future.

Taiwan renews visa-free entry program for Philippines, Thailand and Brunei; Taipei’s skyline pictured

This measure is being continued to attract visitors from New Southbound Policy partner countries for tourism and business purposes. Also factored into the decision to extend the trial period was the average length of stay by quality tourists and business travellers.

According to statistics from the Tourism Bureau, nationals from New Southbound Policy partner countries made a total of 2.3 million visits to Taiwan in 2017, a significant year-on-year increase of 27.7 per cent over the 1.8 million visits made in 2016.

Tours and activities platform KKday gets support from Alibaba

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Ming Chen, founder of KKday

As it forays into mainland China, KKday has kicked off a collaboration with Alibaba by launching a flagship store under Fliggy, Alibaba Group’s travel portal.

The tours and activities startup has also received an undisclosed investment from the Alibaba Entrepreneurs Fund, which supports young companies through its ecosystem and e-commerce and financial services.

More partnerships for KKday; Ming Chen, founder of KKday pictured (photo credit: Twitter/kkdayth)

KKday recently launched an office in Shanghai – its first in mainland China. The three-year-old company is already operating in Taiwan, Hong Kong, Singapore, South Korea, Japan, Malaysia, Thailand, the Philippines, Indonesia and Vietnam.

“This deal will drive many potential collaborations – Fliggy is a great way for us to enter the Chinese market. Alipay’s universality will help us reach customers in China, and within South-east Asia,” said KKday’s CEO Ming Chen.

Chen believes that with Alibaba’s technology as a tool, KKday can streamline the travel experience and make it more enjoyable.

This news follows the previous partnership of KKday and Japanese travel firm H.I.S, which resulted in US$10.5 million raised and created new opportunities for cooperation between the two companies.

PAL seeks longhaul edge with A350 XWB

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Philippine Airlines (PAL) has taken delivery of its first A350 XWB aircraft, Airbus’ new family of mid-size widebody longhaul airliners, which it believes will help it better compete in the premium longhaul market.

PAL has ordered six A350-900s, which will be primarily operated on non-stop services to Europe and North America. These will include the carrier’s longest route to New York, which the A350-900 can operate non-stop in both directions, all year round.

From left: Airbus’ Jean-François Laval; Philippine Airlines’s Jaime J. Bautista; and Rolls Royce’s Christophe Molus

Representing a distance of over 8,000 nautical miles, the 17-hour return journey from New York to Manila previously involved a technical stop in Vancouver.

PAL has configured its A350-900s with a layout seating 295 passengers in three classes. This includes 30 seats that convert to fully flat beds in business class, 24 offering extra space in premium economy and 241 18-inch wide seats in the main cabin.

The aircraft features the Airspace by Airbus cabin, which is said to offer more personal space and full connectivity, on top of being “the quietest of any twin aisle aircraft”.

“The arrival of the A350 XWB will see PAL offer new levels of comfort on our longhaul flights,” said Jaime Bautista, president and COO of Philippine Airlines. “At the same time we will benefit from the A350 XWB’s new generation efficiency, with a significant reduction in fuel consumption and lower maintenance costs. We believe that the A350 XWB will be a game changer for PAL as we compete with the best in the premium longhaul market.”

The A350 XWB joins PAL’s existing Airbus fleet of 27 A320 family aircraft, 15 A330s and four A340s.

Hong Kong’s Madera Group partners Deliveroo to broaden in-room dining options

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Madera Hollywood

Hong Kong’s Madera Group has rolled out in-room Deliveroo menus to three of its boutique hotels in the city – Hotel Madera Hong Kong, Hotel Madera Hollywood, and Madera Residences.

With the partnership with food delivery platform Deliveroo, the hospitality company says participating hotels now offer a much wider selection of on-demand in-room dining options.

Hotel Madera Hollywood

Among Deliveroo’s range of restaurant partners are favourites such as Duocento Otto, Yu Mai and Honeymoon Dessert.

Guests may place their orders through guest services.