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Asia/Singapore Tuesday, 16th December 2025
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APAC airlines’ earnings climb on higher passenger volumes, load factor

By TTG Asia
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Airlines

Asia-Pacific airlines achieved US$8.8 billion in net earnings in 2017, up 31.6 per cent from the previous year, underpinned by higher volumes and with load factors, according to preliminary figures released today by the Association of Asia Pacific Airlines (AAPA).

AAPA revealed that Asian airlines recorded 8.6 per cent increase in international passenger traffic, expressed in revenue passenger kilometre terms (RPK), supported by the widespread availability of affordable airfares and continued expansion in network connections.

Decline in passenger yields slowed in 2017

Passenger revenue increased by six per cent to US$135.6 billion. Intense competition led to a marginal one per cent decline in passenger yields to 7.9 US cents per RPK, although the decline was less severe compared to previous years.

Fuel costs rose significantly, by 19.6 per cent to US$40.6 billion, as global jet fuel prices climbed 24.5 per cent to average US$65.40 per barrel, while the share of fuel expenditure as a percentage of total operating expenses rose by 2.2 percentage points to 24.6 per cent.

Non-fuel expenditure also increased, by 5.6 per cent to US$124.4 billion, in line with higher traffic volumes, AAPA figures show.

Commenting on the 2017 financial results, Andrew Herdman, AAPA director general, said: “Nevertheless, the region’s airlines continued to face some significant headwinds in the form of stiff competition, and increased cost pressures from markedly higher fuel prices and rising labour costs.

“Reflecting the highly competitive business environment, the average operating margin was 6.6 per cent for the year, with net profits of just over US$6 per passenger.”

In addition to continued growth in passenger volumes going ahead, Herdman also forecasted: “Overall, Asian airlines continue to evolve in the face of changing market dynamics, implementing measures to increase efficiency and carefully control operating costs whilst seeking opportunities to maximise revenue. In addition, the region’s airlines remain focused on enhancing business performance through increased investments in new technologies and modern fuel efficient aircraft.”

Pandaw to make India debut with Lower Ganges cruise

By TTG Asia
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The Victoria Memorial in Kolkata, one of many monuments lining the Lower Ganges

Pandaw will late this year deploy the Orient Pandaw on an expedition along the Lower Ganges, its first cruise in India.

From December 23 to the end of April 2019, the Orient Pandaw will sail weekly from Kolkata to Farraka and back on a seven-night itinerary. It will re-commence the itinerary in July 2019 through to April 2020.

The Victoria Memorial in Kolkata, one of many monuments lining the Lower Ganges

Starting in Kolkata, the upstream itinerary will set sail at noon, passing the old Danish colony of Serampore to Barrackpore, with sights including the Semaphore Tower, Government House, the Temple of Fame and Flagstaff House.

Guests will on day two sail up to Chandernagore, a French possession until 1950, and visit the 18th century church and Dupleix’s House of the former Governor-General of French India.

On the third day, the ship visits Kalna, where guests will be taken by rickshaws to see some of Bengal’s terracotta temples, as well as the Shiva temple with concentric rings made up of 108 lesser shrines, before continuing on to the new ISKCON (International Society for Krishna Consciousness) temple in Mayapur.

After mooring near the brass-working village of Matiari, guests will start day four with a visit a charming riverside village, where they can interact with the locals and witness the process of beating out brass water pots and other vessels. Later, they will cruise on and visit the historic battlefield of Plassey.

Day five brings guests on a morning walk to the Khushbagh, a Mughal-style garden that encloses the tombs of Siraj-ud-Daulah – the last independent Nawab of Bengal – and his family.

The next morning, guests will experience rural India with a walk through the fields of the sleepy village of Baranagar to visit its three miniature terracotta temples.

Finally, on day seven, the ship will cruise to a mooring by the Farakka lock and guests will disembark and go on a full-day excursion by road to Gaur, near the town of Malda, or English Bazar.

The Orient Pandaw features thirty veranda staterooms on two decks, indoor dining, a deck bar, a movie and lecture theatre and a spa.

Prices for The Lower Ganges itinerary start from US$1,890 per person for a twin-sharing cabin. The price includes seven nights’ accommodation aboard the Orient Pandaw, local transfers, all excursions as stated on the itinerary, entrance fees, guide services (English language), main meals, jugged coffee, selection of teas and tisanes, local soft drinks, local beer, local spirits, mineral water, crew gratuities and cycling equipment.

Early signs of travel worry after bombings in Surabaya

By TTG Asia
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Travel agents say there's been little to no disruption to ongoing holidays, but some travel concerns are emerging

Reporting by Mimi Hudoyo and Tiara Maharani  

Following the suicide bombing attacks in Surabaya, the city remains on high alert, while concern surfaces in the travel community worldwide with advisories issued by the UK, Australia, the US, China, Hong Kong, Singapore and Ireland.

As the police and anti-terror squad step up security in and around the city, members of the travel trade in East Java are continuing to monitor the situation and keeping in close communications with clients and business partners overseas to provide updates.

Travel agents say there’s been little to no disruption to ongoing holidays, but some travel concerns are emerging

Arifudinsyah, chairman of the Association of The Indonesian Tours and Travel Agencies (ASITA) East Java chapter, said: “We are collecting data and information from members (on the impact), but it is still too early to determine the impact on business now.”

While inbound travel companies in Surabaya TTG Asia spoke with have not received cancellations for ongoing trips so far, there have been some concerns about future bookings.

Adjie Wahjono, operations manager of Aneka Kartika Tours and Travel Services, for example, which has several couples and small groups from the UK and Germany arriving between May 10 and 17, said the bookings were all intact and none suspended their travels ahead of time.

He has, however, received concerned enquiries from travellers intending to visit Indonesia in the coming months.

Adjie stressed that Surabaya is typically only a gateway into and out of the main destinations in East Java, which could be why his clients have had less qualms proceeding with their booked trips.

“Most of our clients are only in transit here, before continuing Mount Bromo or Ijen Crater,” he explained. For example, a group of eight from Germany were in Mount Bromo on the day of the bombing, and continued their trip to Makassar, through Surabaya airport as planned.

“Today, we have two travellers arriving from the UK going to Mount Bromo and Ijen Crater, too” he added.

However, this is no sign of travel impact in the months ahead as concern mounts in the travel community worldwide.

“Travellers are feeling very uncertain and we need updated information to let them know what the ground situation is. (As of now) the security forces have been acting very promptly and businesses in Surabaya are running as normal.”

Monas Tjahjono, managing director of Monas Tour, Surabaya shared that the company has also been in contact with partners in Singapore to keep them updated on the latest situation as well as set contingency plans for travellers.

He added: “We have had no calls from people wanting to change their future trip in East Java, however, we will do all we can to help them find suitable alternative tour packages or allow them to move their dates if they want to.”

In a statement, Arief Yahya, Indonesia’s tourism minster, said: “The Tourism Crisis Management Team will continue monitoring and will co-ordinate with all parties to ensure that the tourism ecosystem are conducive; (to ensure that) amenities and attractions in East Java, particularly in Surabaya run normally.”

Aussie arrivals soar on new Colombo flights, Sri Lanka-Maldives packages

By Feizal Samath
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Cancellations reported in February but impact expected to be felt in ensuing months, some resorts say

A new direct connection from Down Under has led to a sharp rise in Australian visitors to Sri Lanka and the Maldives, with operators further stoking the interest by offering joint Sri Lanka-Maldives tour packages.

After SriLankan Airlines commenced daily flights between Melbourne and Colombo in October 2017, Australian arrivals into Sri Lanka in the January-April period surged 58.3 per cent year-on-year to 38,100, while arrivals to the Maldives in January-March 2018 were up 40 per cent to 7,929.

Flights to the Maldives are boosting Australian inbound visitor volume from a small base

Suresh Dissanayake, assistant vice president – sales and marketing at Heritance Aarah and Adaaran resorts in the Maldives, said the Australian market is booming since the flights were launched. Prior to the new service, visitors mostly had to connect through Singapore on Singapore Airlines flights or Hong Kong on Cathay Pacific services.

“Previously we were getting many surfers from Australia mainly during the summer but with SriLankan Airlines’ direct flights, many groups are starting to come on tours combining Sri Lanka and the Maldives,” he said.

In Colombo, Nalin Jayasundera, managing director of Aitken Spence Travels, part of the group that owns Aarah and Adaaran resorts, said the direct flights have “helped tremendously”. He shared that more Australian operators are jointly promoting Sri Lanka and the Maldives.

Beyond Travel Group, one of Australia’s oldest tour companies is among those promoting joint packages, and has seen positive results this year.

“We knew Sri Lanka was going to be one of 2018’s hottest destinations, and the Maldives is always popular for those seeking a decadent stop-and-flop vacation, but we didn’t expect so many customers would be keen to combine the two,’’ Sri Lanka & Beyond general manager sales and marketing Bryce Crampton was quoted as saying in a recent media report.

After foreseeing growth from Australia last year, Maldives’ local brand, Coco Collection, recently appointed a GSA in Australia, said Andrew Ashmore, the company’s group head of sales & marketing.

The GSA is bringing down a press team later this month to the Maldives on a fam tour, he shared, noting that they have seen a 50 per cent growth in Australian visitors at their resorts, albeit from a small base.

Maldives’ seaplane operator, Trans Maldivian Airways also confirmed a rise in Australian traffic to the resorts, also attributing this to the new service from SriLankan Airlines.

Australia is the sixth largest source market for Sri Lanka and the 11th for the Maldives.

Who will fill the 900 new rooms at Resorts World Manila?

By Rosa Ocampo
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Hilton Manila (hotel suite pictured), scheduled to open in 3Q, will add 357 rooms

Resorts World Manila will swamp the market with 900 new rooms with the opening of three hotels – on top of the existing four within the IR compound – in the coming months, but industry observers believe the additional inventory can be absorbed by the growing number of business and leisure travellers to the metro.

The 357-key Hilton Manila is scheduled to open in 3Q2018, followed by a 191-key Okura and a 350-key Sheraton, adding to four existing hotels including a Maxim (to be rebranded Ritz Carlton next year), Remington (to be rebranded Holiday Inn Express), Marriott which added 227 rooms in late 2016, and homegrown brand Belmont.

Hilton Manila (hotel suite pictured), scheduled to open in 3Q, will add 357 rooms

Kevin Tan, executive director of Alliance Global Group, Genting Group’s partner in RWM, said in a CNBC interview last month that the new openings will be part of RWM’s phase three expansion, which also includes a new casino set to “almost double the current gaming capacity we have right now”.

Colliers International research manager Joey Bondoc said RWM’s new hotels are in keeping with his recommendation for operators to continue developing four- and five-star accommodations in key business districts as he foresaw continued arrivals from major visitor source markets with the improvement of the country’s infrastructure and aggressive tourism marketing.

Bondoc also said RWM’s new hotels will be “propelled by expanding activities in key business districts” in Manila, including the growing number of business process outsourcing offices, and an ideal complement to RWM’s gaming and retail shops.

Mike Hain, groups manager of Corporate International Travel and Tours, said RWM’s new hotels are ultimately good for the market, where “hotels dictate the price” due to the limited choices. That’s why “if you compare hotels here with those in Asia, even for the same hotel brand, we’re more expensive,” he remarked.

Hilton Manila general manager Simon McGrath said that apart from the corporate sector, the leisure market including staycation and tour groups will be drawn to the area’s proximity to airports, high-end shopping, F&B options, and what he says is the hotel’s unique selling point – a huge swimming pool and large jacuzzi that will be shared by Hilton and Sheraton.

TAT brings Thailand Travel Mart 2018 to Pattaya yacht club

By TTG Asia
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TTM+ will spotlight romance at the Ocean Marina Yacht Club (pictured)

The Tourism Authority of Thailand (TAT) is bringing its annual Thailand Travel Mart Plus Amazing Gateway to the Greater Mekong Subregion (TTM+) to Pattaya in 2018, but this year’s event will take place in a yacht club instead of a convention hall setting.

TTM+ will be held at the Ocean Marina Yacht Club in Pattaya from June 13 to 15, highlighting a ‘Summer Beach’ theme that invites participants to put away business attire and dress for ‘sea, sun and sand’.

TTM+ will spotlight romance at the Ocean Marina Yacht Club (pictured)

Yuthasak Supasorn, TAT governor, said: “We are delighted to bring TTM+ to the Ocean Marina Yacht Club for the first time. The event theme encourages participants to dress in resort attire for three days of business meetings and fun with travel colleagues.”

The Ocean Marina Yacht Club was chosen given its capability to hold large events, having hosted over 6,000 visitors at its 2017 boat show last November, according to a TAT statement.

Organising the TTM+ 2018 at a marina also supports the Thai government’s push to position Thailand as Asia’s premier sailing and superyacht destination targeting high net worth individuals.

“After years of meeting indoor, we are opening (up) to the new shades of business experience against the beautiful backdrop of the Gulf of Thailand,” Srisuda Wananpinyosak, TAT deputy governor for international marketing – Europe, Africa, Middle East and Americas said.

TAT’s ‘Million Shades of Romance’ campaign will be front and centre during TTM+ 2018, focusing on Thailand’s offers of luxury and romantic travel attractions.

This year’s edition of Thailand’s largest annual trade show marks its return to Pattaya for the first time since 2001 when the event was expanded to include the Greater Mekong Sub region (GMS) countries.

TAT expects 300 international buyers from over 60 countries to attend this year, in addition to 300 Thai sellers. Preference was given to buyers specialising in luxury, honeymoon, weddings and romantic holidays.

Pre- and post-show tours will focus on Rayong, Chanthaburi and Trat provinces and the neighbouring GMS country of Cambodia, which borders Trat province and is easily accessible by both land and sea.

Nok Air losses significantly reduced in 1Q

By TTG Asia
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The airline's aircraft utilisation was up by 21.5 per cent

Nok Air’s consolidated losses in the January-March 2018 period narrowed significantly to 26.9 million baht (US$843,505) from 295.6 million baht in the same period of last year, which it attributed to marketing efforts to capture several market segments, stricter cost control and productivity enhancements.

Despite the 23.3 per cent rise in fuel costs, revenue grew by 5.6 per cent from the same quarter of last year to 4.3 billion baht as average cost per seat declined; cabin factor improved 6.1 percentage points to 93.8 per cent; and passengers carried increased to 2.52 million, up 3.83 per cent.

The airline’s aircraft utilisation was up by 21.5 per cent

Notably, passenger numbers on the Chinese routes jumped 149.57 per cent to 235,363, up from 94,308, as the airline boosted its Chinese coverage to 19 cities from eight in the same quarter of 2017.

As a result, contribution of revenue from the Chinese operation to the airline’s overall income was at 19.8 per cent, compared to 7.5 per cent in the same quarter last year.

The quarter saw Nok Air increase aircraft utilisation by 21.5 per cent to 10 hours per aircraft per day from 8.2 hours, contributing to higher productivity.

At the end of the quarter, Nok Air operated a fleet of 29 aircraft, down from 31.3 a year ago. The airline added two domestic routes in the first quarter to a total of 25, while its international scheduled routes remained unchanged at three.

BHMA plans new eco-resort under X2 brand in Hoi An

By TTG Asia
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Rendering of the eco-resort

BHMA Hotels has partnered Vietnamese developer Ixora Real Estate to manage the new X2 Resorts & Residences at the UNESCO World Heritage destination of Hoi An, scheduled for phase one opening in 1Q2019.

The seven-hectare eco-resort will be located on 650m of river frontage along the Coco River, offering 70 two- to four-bedroom villas with private pools as well as a hotel comprising 31 loft units and 56 suites.

Rendering of the eco-resort

The resort will feature facilities such as infinity swimming pools, a library, spa and health club, restaurants and bars, a canoe station, children’s play zone, and both organic and hydroponic gardens.

Minutes from the white sands of An Bang and other popular beaches, the eco-resort is also close to the historic old town of Hoi An.

“Central Vietnam is one of the fastest-growing areas in Southeast Asia for tourist arrivals thanks to its array of attractions, beautiful landscape, historical townships, and a full range of activities,” said BHMA CEO Anthony McDonald, CEO of BHMA, commenting on the region’s tourism prospect.

“This particular part of the country truly provides the perfect opportunity for us to further establish and grow our presence here in Vietnam,” he added.

Glamping in Ladakh for cultural nomads

By TTG Asia
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TUTC's luxury tented suites in Ladakh
TUTC’s luxury tented suites in Ladakh

The Ultimate Travelling Camp (TUTC) is welcoming guests to a glamping experience in India’s Ladakh, with two seasonal camps up and running from today till September 30.

Through the Chamba Camp Thiksey and Chamba Camp Diskit, TUTC will introduce travellers to different aspects of the Ladakhi culture in three-, four-, five- and seven-night itineraries, or customised stays.

Tents complete with mod-cons such as en-suite bathrooms with hot shower and a safety deposit box

Apart from visits to monuments, monasteries, oral literature, art forms, fairs and festivals, guests may also choose from activities from the ancient sport of Polo, brought to Ladakh in the 17th century by the Royals, to rafting on the Indus River.

In keeping with its promise of luxury, the camps feature triple-layered tents fitted with wooden chandeliers, four poster beds, en-suite bathrooms with hot showers, safety deposit boxes, private decks and climate-controlled interiors.

Services available to guests include personal butlers, laundry, unlimited Wi-Fi at the reception, 24/7 security and on-site paramedics, while TUTC’s in-house chef prepares regional, Indian and international cuisine.

Bali, Jakarta on highest alert after Surabaya bomb attacks

By Mimi Hudoyo
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A representative office in Surabaya on the horizon for Tourism Malaysia

The Bali and Jakarta Police Offices have put both destinations on highest security alert following a series of bombings in Surabaya and neighbouring Sidoarjo on Sunday.

Additional security personnel and more stringent security checks are being imposed at Bali’s Ngurah Rai International Airport and all entry points to the island.

A Surabaya police office is the latest target in a series of bombings in Surabaya and neighbouring Sidoarjo

Budi Karya Sumadi, Indonesia minister of transportation said the number of security personnel at Jakarta’s Soekarno-Hatta International Airport had been increased from 500 to 700, including members of the bomb squad and bloodhounds.

The situations at both Indonesia’s busiest airports are running as normal.

The suicide bombing took place at three churches in Surabaya, Indonesia’s second biggest business city after Jakarta, almost simultaneously yesterday morning.

Last night, another bomb blast occurred in a flat in Sidoarjo, and another blast took place this morning (08.50 local time) at a police office in Surabaya.

At press time, at least 17 people have died including the nine suicide bombers, plus 45 people injured.

President Joko Widodo strongly condemned the terrorist attacks in East Java, saying they were “beyond humanity measures”.

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Sister Publications
TTG Asia TTGmice TTG India TTGssociations TTG Asia Luxury
TTG Asia | Sun Siyam launches major solar energy project in Maldives resorts
TTG Asia | Taiwan sets new course for tourism sector
TTG Asia | Lufthansa Group unveils new brand identity