TUI India goes digital to vie for bigger share of online market

May 31, 2018

After over two decades of being a tour operating business, TUI India has now transformed into a digital provider, a move expected to help the TUI Group gain market share in the country’s burgeoning online travel sector, and part of efforts to grow “future markets” of India, China and Brazil.

The new focus is in recognition of India’s rapidly expanding internet usage and significant growth of online travel bookings. In 2017 alone, revenue in the online travel booking segment in India climbed by more than 30 per cent year-on-year to US$22.5 billion, according to TUI, which also identifies India as a key growth market considering its growing affluence and sizeable population.

Krishan: work towards the group’s 2022 goals

To support this new focus in India, Krishan Singh, online travel veteran and former senior vice president of Yatra.com, has been named CEO of TUI India.

Krishan commented: “By focusing on the online business, we will participate in the strong growth in the Indian market and contribute towards delivering the ambitious goals set out in TUI 2022.”

Alexander Linden, director, future markets, TUI Group, added: “India is one of our future markets to deliver additional growth for the TUI Group. Realigning the local business with a strong digital focus under our TUI brand offers enormous opportunities.”

In addition to India, the group has also identified China and Brazil as “future markets”. As part of the TUI 2020 programme, the group is aiming to generate an additional one billion euros in turnover and an additional one million customers from the three markets by 2022.

TUI Group also plans to achieve “a fully digital market entry based on a standardised, globally scalable and uniform software architecture” in its trio or “future markets”.

Singapore-listed Memories Group buys Myanmar’s Kayah Resort

By TTG Asia

May 31, 2018

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Myanmar-based tourism-focused company Memories Group is acquiring the 26-key Kayah Resort in Myanmar’s Loikaw from Wa Minn Group of Companies and Kun Naung Myint Wai for S$2.9 million (US$2.2 million), an 11-times multiplier on the hotel’s forecasted average operating profit from FY2019 to FY2021.

Kayah Resort is a 26-key boutique hotel located in Loikaw, Kayah State, a 10-minute drive from Loikaw Airport and an hour’s flight from Yangon. The boutique resort features 24 bungalows and two executive suites, as well as facilities and services including a swimming pool, restaurant, bar, function hall and airport transfers.

Kayah Resort will be spruced up and repositioned as an upscale property

The SGX-Catalist listed company intends to upgrade and enhance the resort’s facilities and reposition it as an upscale resort under the group’s four-star Keinnara brand. Consequently, room rates are expected to be revised to generate better yield for its investment.

Serge Pun, executive chairman of Memories Group, expects the rebranding and enhancements to yield improved results such as a higher occupancy.

Kayah Resort is currently seeing occupancy rate of 60 per cent in the high season (between October and March), and 30 per cent in the low season (between April and September). Its gross operating profit was approximately US$220,000 for the nine-month period ended December 31, 2017.

Kayah Resort marks the group’s second acquisition of a tourism asset since its Singapore listing in January, expanding its presence to six of Myanmar’s most visited tourist destinations namely Loikaw, Hpa-An, Bagan, Inle Lake, the Mergui Archipelago and Yangon, Pun added.

Kayah State is known for its local tribes, scenic landscapes and attractions such as the Kyet Cave in Loikaw, the third longest cave in Myanmar.

New COO Peter Gan takes helm at Swiss-Garden International

By TTG Asia

May 31, 2018

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Malaysia-based Swiss-Garden International Hotels, Resorts & Inns has appointed Peter Gan Hock Chye as COO.

In his new capacity, Gan will be responsible for leading the operations for the group’s portfolio of 10 hotels, as well as steering the company’s future growth and maximising potential of the brand especially in new markets.

The hospitality veteran has over 30 years of leadership experience, and was most recently the COO and general manager for Aoluguya Hotels & Resorts based in Harbin, China.

Before that, Gan was COO for Ansa Hotels & Resorts, and general manager – operations & hotel operations for Dusit International. He had also spent time as general manger for Starwood Hotels & Resorts in China as well as Berjaya Hotels in both Malaysia and Mauritius.

Aviation roundup: Singapore Airlines, Cathay Dragon and more

By TTG Asia

May 31, 2018

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SIA’s New York flights to take off this October
Singapore Airlines (SIA) will launch the world’s longest commercial flights when its Singapore-New York service begins in October, covering a distance of approximately 16,700km in nearly 19 hours.

The route will be operated on the new Airbus A350-900ULR (ultra-long-range) aircraft, which will be configured in a two-class layout, with 67 Business Class seats and 94 Premium Economy Class seats.

Flights will begin on October 11 to Newark Liberty International Airport. The route will be served thrice weekly initially, departing Singapore on Mondays, Thursdays and Saturdays. Daily operations will commence from October 18 after an additional A350-900ULR aircraft enters service.

During the Northern Summer period until October 27, 2018, SQ22 will depart Singapore at 23.35 and arrive in Newark at 06.00 the following day. The return leg, SQ21, will depart Newark at 10.45 and arrive in Singapore at 17.30 the following day.

During the Northern Winter period (October 28 to March 30, 2019), SQ22 will depart Singapore at 00.40 and arrive in Newark at 05.30. The return flight SQ21 will depart Newark at 09.45, and land in Singapore at 17.15 the following day.

Non-stop Singapore-Los Angeles flights are also planned with the A350-900ULR, details of which will be announced at a later date.

Cathay Dragon adds two SE Asian destinations to network
Cathay Dragon, the regional subsidiary of Cathay Pacific, is launching two routes this October to Davao City, Philippines, and Medan, Indonesia. Both routes will utilise an Airbus A320 aircraft.

Beginning October 28, Cathay Dragon will fly to Davao City four-times weekly on Tuesdays, Wednesdays, Fridays and Sundays.

KA347 will depart Hong Kong at 12.34 and arrive in Davao at 15.50, and the return flight KA348 will depart Davao at 16.50 to arrive in Hong Kong at 20.00.

The thrice-weekly Medan service will begin a day later on October 29. KA359 will depart Hong Kong at 21.50 on Mondays, Thursdays and Saturdays, and arrive in Medan at 00.50 the following day. The return flight KA358 will depart Medan at 01.50 and arrive in Hong Kong at 07.05 on Tuesdays, Fridays and Sundays.

The new routes will be the first non-stop connections Davao City and Medan will have with Hong Kong.

Air China flies to Hanoi from Beijing
On June 1, Air China will begin direct flights between Beijing and Hanoi.

The new service will be operated under flight numbers CA741/742 four times a week on Tuesdays, Thursdays, Fridays and Sundays.

Outbound flights will depart from Beijing at 01.25 and arrive in Hanoi at 04.15. Inbound flights will depart from Hanoi at 05.45 and arrive in Beijing at 10.25

AirAsia X steps up frequency to Honolulu
From August 16, AirAsia X will increase its Kuala Lumpur-Honolulu via Osaka flights from four-times weekly to daily.

Air France and Qantas renew codeshare partnership
Qantas and Air France have renewed their codeshare agreement.

Available for booking from June 5 for travel from July 20, Air France will add its code to Qantas flights between Hong Kong and Sydney, Melbourne and Brisbane and between Singapore and Sydney, Melbourne, Brisbane and Perth.

Air France customers will also be able to access codeshare services from Sydney to five cities on the Australian airline’s domestic network including Canberra, Hobart, Adelaide, Cairns and Darwin.

Under the reciprocal deal, Qantas will add its code to flights operated by Air France between Singapore and Hong Kong and Paris-Charles de Gaulle, as a continuation of flights from Sydney, Brisbane, Melbourne and Perth.

The new agreement will see the two airlines codeshare on a total of more than 200 flights per week.

Air France eligible customers will also be able to access Qantas lounges in Hong Kong, Singapore and Australia, as well as Qantas eligible customers to Air France lounges in Paris, Hong Kong and Singapore.

Trade unfazed as Malaysia pulls plug on high-speed rail project

By S Puvaneswary

May 30, 2018

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The new prime minister of Malaysia has announced the termination of the Kuala Lumpur-Singapore High Speed Rail mega project to cut costs and pare its debt of RM1 trillion (US$250 billion) inherited from the previous government, an amount representing 80.3 per cent of Malaysia’s GDP.

Prime minister Mahathir Mohamad said the decision to scrap the project was final and that the Malaysian government would pay a compensation of close to RM500 million to Singapore .

Malaysia has scrapped the multibillion-dollar high-speed rail project to Singapore

Mahathir viewed the project, expected to cost RM110 billion, as not beneficial. He was reported by The Star on Tuesday as saying: “We will make no money at all from the operation. It is just a short track.”

The 350km railway project agreement was inked in 2016. It would have linked Bandar Malaysia in Kuala Lumpur and Jurong East in Singapore in 90 minutes and was projected to be completed in 2026.

Inbound travel industry players in Malaysia are unfazed by the new prime minister’s decision.

World Avenues executive director, Ally Bhoonee, opined that the government had made the right call, as priority should be placed on reducing the country’s debts.

He said: “The government’s decision to scrap the project will not affect the inbound market. Leisure clients travelling from Singapore like to break their journey to sightsee in Johor and Melaka before travelling to Kuala Lumpur.”

Asian Overland Services Tours & Travel managing director, Yap Sook Ling, also supports the government’s move to scrap the project in light of the high expenses. Future business will not be affected, she added, as existing transportation is more than adequate.

She said: “There are many providers of overland luxury buses travelling between Kuala Lumpur and Singapore. Such services are as good as air travel, with stewards on board, meals, movies and Wi-Fi connectivity.”

As well, stiff rivalry between airlines serving the Singapore-Kuala Lumpur sector has resulted in competitive rates and great deals for travellers, added Yap.

Seoul Tourism Organization relaunches with KTO veteran as chief

By TTG Asia

May 30, 2018

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Jae-sung Rhee, former executive vice president of the Korea Tourism Organization (KTO), has been appointed to a three-year term as president and CEO of the Seoul Tourism Organization (STO).

Rhee worked at the KTO for 33 years from 1985 to 2017 and held the position of director in every department within the organisation, namely as director of management, executive vice president, director of international tourism and marketing, director of domestic industrial affairs, and director of policy.

He officially joined STO on April 23, 2018, a week before the group was officially restructured from a public-private partnership and government-invested corporation into a fully government-funded foundation.

Now funded by the Seoul Metropolitan Government, the STO has been reestablished to “proactively respond to the changing tourism environment and promote Seoul tourism in a way that achieves the public interest and reflects professionalism and responsibility”, according to a statement from the organisation.

Peer-to-peer booking platform forays into Asia to challenge agent commission model

By Rohit Kaul

May 30, 2018

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TRVL, a Amsterdam-based hotel booking and price comparison site that offers commissions to individual consumers for every booking they make, recently forayed into the Asian market with India being its first stop following its launch in June 2017.

While users from India were able to sign up previously, the website now supports payments in Indian rupees and is offering local customer service. It has also secured extra server capacity to handle the increase in traffic.

The site has made its move into the Asian market

CEO of TRVL Arthur Hoffman, who launched Expedia in India 10 years ago, said: “We have also added the full inventory of Agoda, Priceline’s specialist in Asia earlier this year. In addition, we are running Indian marketing campaigns on platforms like Facebook and Instagram.”

TRVL already has presence in global markets like the US, Australia, New Zealand and pan-Europe, and there are plans to expand into more English-speaking Asian markets such as Singapore and Hong Kong, before introducing more languages in future.

Jochem Wijnands, TRVL’s founder, shared: “Our own research shows that more than 50 per cent of all bookings are done for others. These are people that book for their family, friends or colleagues and truly act like an amateur travel agent. They are often passionate about travelling, but don’t get any love from other companies in this space.”

The company rejects the notion that its unique end-consumer commission model cuts out traditional travel agents. “Many independent travel agents have signed up for TRVL and benefit from the deals we offer and commissions they get paid,” shared Wijnands.

“Our sales team has been signing India-based professional travel agents who appreciate the ease of use of our platform, competitive commission structures, and the fact that it is free to use, with no annual commitment,” added Hoffman.

According to Hoffman, the idea for TRVL stems from a belief that booking travel in today’s online B2C world can be improved. “We want to make booking travel more relational again, make it about the experience, the layer above the transaction through local knowledge that travellers have and want to share. We want to provide people with personalised advice that allows them to come to better, faster and more relevant choices. We want to empower the traveller, turn them into amateur travel agents, and like the professional world, also reward them with a commission.”

In the near future TRVL plans to launch a feature that allows users to contact and chat with each other, and help each other with local tips and recommendations.

“This type of personalised advice is missing today and would make the work of these do-it-yourself travel agent and amateur travel organisers a lot easier,” said Wijnands.

“For example, instead of indicating whether a hotel allows pets or not, we want to tell what the hotel exactly does for your dog, type of food, pillow, where to meet other dog owners, and take your dog for a walk. If the hotel allows dogs, there is a much more engaging and emotionally connecting story to tell to guests with dogs. That’s the level we want to hit, and the type of value-added information we want to equip our users with,” said Hoffman.

Catch up on action at HSBC Singapore Rugby 7s

By TTG Asia

May 30, 2018

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The HSBC Singapore Rugby 7s ended on a high note last month, as Fiji came through to secure victory from Australia in the dramatic last seconds of the Cup Final.

But the event this year was spirited all around, with new components such as a FunZone injecting a big dose of carnivalesque and family-friendly fun, and with an over 50 per cent increase in attendance.

We bring you some highlights from the event, from fun-filled activities and visitors soaking up the VIP treatment, to epic moments on the pitch, as well as an interview with rugby legend DJ Forbes, former captain of the New Zealand All Blacks Sevens.

Complementary events join forces to draw visitors to Singapore’s Marina Bay

By Pamela Chow

May 30, 2018

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Organisers of events taking place in Singapore’s Marina Bay precinct have taken to strategic partnerships in hopes that their complementary offerings could boost visitor numbers.

Artbox Singapore and the DBS Marina Regatta have synchronised their calendars and are now running concurrently on two consecutive weekends – May 25-27 and June 1-3 – in hopes of drawing more visitors to the precinct, said Leonard Tan, senior vice president, group strategic marketing & communications, DBS.

Visitors at this year’s Artbox. Photo credit: Artbox Singapore’s Instagram @artbox_singapore

DBS, which has been a sponsor of Artbox since its debut last year, has this year extended its annual Marina Regatta for another weekend to compliment its partner, shared Tan.

He elaborated: “This area was an opportunity. Artbox has a good mix of foreign and local vendors, and the DBS Marina Regatta attracts overseas racing teams as well. We’ve got 98 teams this year. It’s a good mix to activate the entire Marina Bay and make this a vibrant place, and this helps to beef up our appeal in the region.”

Last year’s single-weekend regatta garnered more than 40,000 attendees, and this year’s is expected to bring in even more in conjunction with the crowd from Artbox, said Tan.

Artbox is an outdoor food and retail concept brought in from Thailand by local organiser Invade. Last year’s event saw 600,000 attendees, 14 per cent of which were tourists.

This year, Artbox has expanded its fairground space by 280 per cent to 1.3ha and expects to attract 700,000 guests.

Lee Haoming, co-founder of Artbox Singapore and head, strategy of Invade, said: “The bulk of our visitors are 20-35 years old, but we are surprised to see that a lot of families came by as well. So this year, we created more games for the kids to make it more wholesome and family-friendly.”

He added: “We’ve got a lot of vendors from Malaysia and Indonesia signing up as well. It’s no longer just Thai and Singaporean vendors. We want to create a platform for different entrepreneurs and designers in the Asia region to showcase what they have and exchange cultural creativity.”

Lee told TTG Asia that the event will be brought to a regional scale. Artbox Kuala Lumpur is almost confirmed for November, and other countries such as Taiwan and Indonesia are being discussed.

SIA now NDC-connected with Skyscanner partnership

By TTG Asia

May 30, 2018

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Singapore Airlines (SIA) has launched its first New Distribution Capability (NDC) connection following its agreement with travel search and booking site Skyscanner.

NDC was conceived by IATA to address some of the industry’s current inventory distribution limitations by supplementing the capabilities of third party channels to match those of the airline’s websites.

A Singapore Airlines Airbus A380 taking off from Changi International Airport

Customers who choose to purchase SIA flights through Skyscanner will be able to do so directly, instead of having to be referred to the SIA website to complete a booking. Other capabilities such as the ability to select seats and the availability of personalised offers will be implemented progressively.

Direct bookings on Skyscanner are currently limited pending testing but are expected to be rolled out progressively within the next few months.

SIA recently obtained its Level 3 NDC Certification, which covers both Offer and Order management, under which an airline takes full control of the way fares are offered to customers as well as the booking, payment and ticketing processes once customers have chosen a fare that they wish to purchase.

Moving forward, SIA will further develop its NDC capabilities to offer other ancillary services and personalised offers for its customers.

“With an NDC Level 3 Certification, we will also be seeking out even more connections with travel partners to improve distribution through SIA’s third-party sales channels,” said Campbell Wilson, senior vice president sales & marketing.

Hugh Aitken, senior director strategic partnerships at Skyscanner, added that the engine’s direct booking capability could benefit customers by minimising friction, as well as airlines, who will be able to better showcase up-sell options with an airline-branded checkout flow.

TUI India goes digital to vie for bigger share of online market

Singapore-listed Memories Group buys Myanmar’s Kayah Resort

New COO Peter Gan takes helm at Swiss-Garden International

Aviation roundup: Singapore Airlines, Cathay Dragon and more

Trade unfazed as Malaysia pulls plug on high-speed rail project

Seoul Tourism Organization relaunches with KTO veteran as chief

Peer-to-peer booking platform forays into Asia to challenge agent commission model

Catch up on action at HSBC Singapore Rugby 7s

Complementary events join forces to draw visitors to Singapore’s Marina Bay

SIA now NDC-connected with Skyscanner partnership

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