Sande: more longhaul flights from Singapore wanted
After making its entrance in Asia with the launch of Singapore-London flights last month, LCC Norwegian yesterday said it is considering increasing frequency on the route, as well as connecting the Lion City to Scandinavia and European cities.
On top of bumping up frequency between Singapore (Changi) and London (Gatwick) to daily, from four times weekly, the carrier is hoping to add connections from Singapore to Barcelona and Rome, Lars Sande, the airline’s senior vice president, sales & distribution, shared.
Sande addressing agents in Singapore yesterday
However, its biggest concern now is navigating the law that prevents Scandinavian airlines from flying over Russia; a ruling that the team is working with the governments to repeal, Sande disclosed.
Sande announced this to travel agents in Singapore yesterday, during Norwegian’s first travel industry outreach event in Asia, where he said there is still little to no awareness of the airline.
He shared that Norwegian seats sold to travel agents will automatically include add-ons such as two check-in bags and seat selection. The airline currently has an online agent portal and agent training platform.
Sande added that Norwegian “controls” its costs by investing in areas such as selective crew distribution, limited branding and advertising as well as newer and more fuel-efficient aircraft.
Its longhaul routes are served by a Boeing 787 Dreamliner fleet, and shorthaul flights by the Boeing 737.
Another differentiator for Norwegian is complimentary Wi-Fi on 90 to 95 per cent of its 737 fleet, said Sande. The airline is looking to install Wi-Fi on the rest of its fleet in the coming months.
Flights starting to resume at Ngurah Rai, but Lombok airport now closed
As flights in and out of Bali begin to resume with the I Gusti Ngurah Rai Airport reopening yesterday, Indonesian president Joko Widodo is urging all relevant parties to render assistance to stranded travellers and get them home.
The airport started to operate again at around 15.00 (local time) yesterday following a meeting by related institutions and stakeholders in Bali. The decision came after the Volcano Observatory Notice for Aviation was decreased from red-green to orange-green, indicating that Bali air space was safe for flights.
Flights starting to resume at Ngurah Rai, but Lombok airport now closed
However, Lombok International Airport has been closed again since 10.30 up to midnight, as volcanic ashes are blowing south and southeast of Mount Agung, AirNav Indonesia announced.
Jokowi urged: “The stranded passengers (should) be served and handled with care. Don’t let them (go) unmanaged when trying to leave the island. I instruct the minister of transportation, minister of tourism, Bali governor and all regency heads on the island to join hands in handling the impact of Mount Agung eruption.”
Announcing the opening of the Bali airport, Wisnu Daryono, director of operations of AirNav Indonesia, the airline navigation service operator, said while all flights in and out of Bali can now operate normally, AirNav Indonesia will continue monitoring developments related to the activity of Mount Agung, which continues erupting.
“It is the duty of AirNav Indonesia to control the airline safety in the country’s air space. Therefore, we strive to give maximum services. We have opened crisis centres in Jakarta and Denpasar to continue monitoring for 24 hours any developments together with the regulator and related stakeholders,” he added.
He also appealed to the public to monitor updates closely and follow instructions.
Garuda Indonesia restarted services out of Denpasar last night with eight domestic flights.
Hengki Hariandono, vice president corporate secretary of Garuda Indonesia, said: “All services to and from Denpasar will operate with a few schedule adjustments on November 30. We invite passengers to check periodically our schedule as we work to minimise passenger buildups.”
Garuda has deployed bigger aircraft and added extra flights on certain routes out of Surabaya and Lombok.
More airlines are expected to resume services and add extra flights today.
Hong Kong’s Cathay Pacific will operate one service to Bali while Hong Kong Airlines will add one flight on top of its two daily services today for some 1,600 Hong Kong holidaymakers stranded on the island, according to the South China Morning Post.
Hotelbeds Group is reporting a 40 per cent increase in total transaction value of Turkey hotel reservations in FY2017/18, which saw the troubled destination rise from 11th to ninth most booked in EMEA for the group.
The recovery has been led by a sharp return in the number of British travellers, who have become the largest source of bookings via the Hotelbeds Group platform, including through the recently acquired Tourico Holidays and GTA.
Istanbul and Antalya (pictured) most popular
Germany is the second top feeder market, while in third place is Saudi Arabia, which has seen “strong increase” in bookings since the beginning of October.
The rebound in interest in the destination has led to the group reviewing its portfolio of hotels, with plans now to contract a further 400 hotels in the coming months, ready for the upcoming summer season.
Additionally, bookings made through the Hotelbeds Group platform have also revealed a preference for urban destinations, with Istanbul and the Antalya region as the most in-demand locations.
Hotelbeds also observed recovery in both average prices and hotel occupancy rates, with the average rate per night staying stable at around 50 euros (US$59.30) and total roomnights growing in line with total transaction value at around 40 per cent as well.
Sam Turner, responsible for sales and sourcing of Hotelbeds Group, commented: “Since the beginning of the new financial year on October 1, we have noticed a clear recovery of Turkey as a destination for all of our group’s businesses
“We feel this is due to the general travelling public feeling that stability has once again returned to the country. However, other source markets such as Saudi Arabia and Iran have grown strongly, and whilst the numbers are much smaller we have nonetheless seen a doubling in the number of Spaniards reserving hotels for the destination.”
Khiri Travel has announced lateral movements and promotions in its management.
Effective December 1, Stefan Scheerer, assistant general manager at Khiri Travel Myanmar, will move to Vientiane, where he will become general manager of Khiri Travel Laos.
(From left) Tan, Steinert and Scheerer
In his two years with Khiri, he has risen from customer care manager in Myanmar to assistant general manager.
Meanwhile, Melissa Tan, who joined Khiri in April 2017 as commercial manager for Myanmar, will become general manager of Khiri Travel Myanmar. In her new role, she will take care of day-to-day management from the Khiri Travel office in Yangon.
Tan will report to Edwin Briels, managing director of Khiri Travel Myanmar, who retains the key leadership role for Khiri Travel Myanmar. Tan’s promotion will free Briels to develop new products in Myanmar’s frontier areas, according to Khiri.
In Thailand, Edouard Steinert, who started as commercial director on November 1, will lead a sales team targeting travel consultants in key markets and lead the development and expansion of Khiri Thailand’s products.
Fusion Resort Phu Quoc, which opened on Vietnam’s largest island earlier this year, is launching three-, five-, and seven-day wellness packages.
Included in the resort’s Wellness Voyages are accommodation in one- or two-bedroom villas that come complete with a private plunge pool and garden; wellness consultation and assessment; all nutritious meals and drinks; daily wellness sessions including yoga, Tai Chi and meditation; daily treatments from Maia Spa’s menu of wraps, massages, scrubs, and facials; cooking classes; cultural excursions (for five- and seven-day voyages only); round-trip airport transfers; and priority check-in.
DIY pepper scrubs, treatments, yoga and more
Guest schedule is set prior to their arrival. Two spa treatments per day form the daily regimen with the first therapy being the “Pepperation” programme, developed in-house and inspired by the island’s most popular export. Participants can make their own pepper scrub, surrounded as they are by the spa’s orchard of 88 pepper trees.
Those taking part in the five- and seven-day programmes also have the option of local excursions including a bike ride to Cua Can, a traditional fishing village with stilt houses perched on the river, and a visit to Nguyen Trung Truc temple and Ho Quoc Pagoda, the largest Buddhist temple on the island.
The 97-pool villa property on the north of the island boasts the largest spa and wellness facility on Phu Quoc at 11,210m2; 20 treatment rooms; steam and sauna facilities; an adults-only pool; health club, and indoor and outdoor yoga spaces.
Wellness Voyages are available year-round with rates for a Garden Villa starting at US$949++ per couple (3D2N), US$1,846++ (5D4N) and US$2,758++ (7D6N).
Singapore to get first flights from Poland
LOT Polish Airlines is set to launch Singapore-Warsaw services – Changi Airport’s first flights from Poland – starting May 15, 2018.
Serviced by the 252-seat Boeing 787-8, the route will launch with thrice weekly services, before increasing to four times weekly from July 2018.
AirAsia inaugrates two Johor routes
AirAsia has launched flights connecting Johor Bahru to Kolkata and Macau.
On Wednesdays and Fridays, AK1208 leaves Johor Bahru at 07.05 for arrival in Macau at 10.55. On the return, AK1209 departs Macau at 11.30 and arrives in Johor Bahru at 15.20.
For the rest of the week, AK1208 leaves Johor Bahru at 10.00, arriving in Macau at 13.50. AK1209 then departs Macau at 14.20 for arrival in Johor Bahru at 18.10.
On the Kolkata route, flights depart Johor Bahru at 21.30 for arrival at 23.10 on Mondays, Tuesdays, Thursdays, Saturdays and Sundays. It is then scheduled to leave Kolkata at 23.40 to arrive back in Johor at 06.25 the next day.
Thai Vietjet launches Bangkok-Dalat route
Thai Vietjet will commence four times weekly services between Bangkok and Dalat on December 18.
Operated by an Airbus A320, the flight departs Bangkok at 10.45 and returns from Dalat at 12.45 on Mondays, Wednesdays, Fridays and Sundays, with a flight duration of one hour 45 minutes each way.
Broome lands direct flights from Singapore
SilkAir will run four return trial flights from Singapore to Broome next June, the outcome of a deal with Broome International Airport and Australia’s North West regional tourism organisation.
Fares and flight schedules will be released soon and Australia’s North West will work with SilkAir to develop packages for travellers, while Tourism Western Australia will promote the flights and packages through its Singapore office.
Jetstar’s Singapore-Clark flights takes off
Jetstar Asia has launched thrice weekly flights between Singapore and Clark International Airport, operated by an Airbus A320.
On Tuedays, Thursdays and Saturdays, flight 3K777 departs Singapore at 02.20 and arrives in Clark at 06.00. Flight 3K778 departs Clark at 07.00 on the same day for arrival in Singapore at 10.40.
Three additional services will be added over Christmas and the New Year between December 21, and January 4, 2018.
Akeroyd: common mistake is trying to cater to the masses
The last few years have seen an unprecedented rise in the number of startups globally, not least Asia where there are over 47,000 startup companies listed on angel.co.
Many of these startups are capitalising on the fact that big businesses need them and are working to tackle these business problems outside the company’s domain. And what’s in it for the startup? Well, depending on the level of success, they may find themselves targets for acquisition by the very companies they work for. While this might mean that becoming a unicorn IPO is less likely, startups do have the chance of securing a trade sale exit at lower, but still enticing, multiples.
Akeroyd: avoiding the ‘next Airbnb’ tunnel vision
However, despite these attractive opportunities, many startups, particularly in their early days, fall into the trap of trying to create a company with mass appeal. The next Airbnb, Line or Grab perhaps. Such companies have wide appeal and their brilliant simplicity is attractive to budding entrepreneurs who dream of similar success. However, these ‘unicorn’ triumphs are rare (hence the name), and entrepreneurs would be wise to consider an alternative route on their quest for startup success.
The alternative route
While it is true that many B2C startups bring great ideas, technology, and solutions to the travel industry, for many it can be very difficult to get off the ground, particularly for first-time entrepreneurs.
From the get-go, B2C startups must be alert to many things, including having a strong marketing strategy in place that stands up against the big names already dominating the B2C travel industry. You have to compete for a potential travellers’ attention against the massive marketing budgets, years of brand exposure and known services of the likes of TripAdvisor, MakeMyTrip, Expedia or Ctrip, among others. Most well established travel brands have a solid funnel of customers and it’s hard to take those customers (and their loyalty) away.
The reality is that many B2C startups we see aren’t favourable to investors, many of whom prefer to fund B2B businesses in a bid to establish more stable earnings. It may sound glamorous to launch a B2C startup, but according to CB insights, in 2016 there were only 25 unicorn “births” globally, 68 per cent less than in 2015.
Starting a B2B company, on the other hand, can come with many advantages. For one, there are now lower barriers of entry to working with large corporations. Technology has opened up and barriers have come down, enabling businesses to look outside their own walls to external partners, in this case startups, that can help take on certain responsibilities.
Where the sweet spots are
For large travel companies (including Amadeus), there’s always a long list of problems or challenges, of varying levels of priorities, which we’d love to focus on. However, more often than not, there isn’t the time or resources to do it all. Most companies have limited capacity to implement every change and advancement that they want to. While at any one time they may be focused on the top 20, 50 or 100 problems, there are always projects that get pushed down the to-do list. It’s those non-urgent tasks – the 21st, 51st or even 101st business problems that could be the real sweet spot for a startup. This is a great advantage for entrepreneurs. Rather than the stress of worrying about sales figures (which should generally be consistent) or spending time marketing to attract new customers, the startup can instead focus on serving that one customer with that one product.
Take a hotel, for example. Maybe they want to cut their laundry bill or determine how rooms can be cleaned in a more efficient way to offer early check-ins, accommodate late check-outs, offer an awesome guest experience and drive loyalty. It could even be how to improve internal efficiencies or manage their supply chain better. If a startup can offer a solution to these types of problems, they become a valuable match for corporations and far more likely to succeed.
What Amadeus Next looks for
As the number of startups has risen, accelerator programmes have also multiplied throughout the region, leading to an understanding that innovation is best achieved through partnership with experts. Not an accelerator or an incubator, Amadeus Next (part of Amadeus) is a community, nimble and flexible, just like a startup itself, which leverages the technology and expertise of our experts to provide support to travel technology startups in Asia-Pacific. We currently work with more than 30 startups, and surprisingly over 70 per cent of these companies have some form of B2B (business-to-business) component, and almost 55 per cent are purely B2B.
So the next time I see a budding Asian startup trying to make it in travel, this would be my advice; don’t get fixated on becoming an industry disruptor on the scale of Airbnb, instead explore how your technology can a B2B solution that a company really needs. While it may not be their current priority, or one which their R&D team is focusing on, by helping to solve that problem, you could make a huge difference to a company’s business, and hopefully the chance of success for your startup.
By Kulpreet Singh, managing director EMEA & APAC, UiPath Robotic Process Automation
Think automation and travel and no doubt your mind will be drawn to robot butlers in hotels, usually in Japan, or maybe a robot (in some form) flying you to your destination.
As every other industry seems to be embracing automation, installing shiny new robots and machines, travel and hospitality still seem immune, bar a few high-profile exceptions.
This is understandable, the industry – including travel agencies, hotels and airlines – is highly personal, relying on the human touch to attract and retain customers, and so most firms need to strike the right balance between the personal touch, and providing efficiency and speed (plus lowering costs). Hence no robot butlers anytime soon.
Singh: Automation software will help travel agents save time and costs
However, while physical robots may have to remain unemployed a bit longer, automation software – Robotic Process Automation (RPA) specifically – could potentially save the industry millions, and significantly improve service outcomes.
RPA applications in a travel agency
RPA, while often referred to as robots, is actually software that automates many of the repetitive, rules-based tasks that are carried out by white-collar workers in almost every industry, including travel. The software employs computer vision, and mimics human interaction with a computer. The technology is able to automate tasks that previously would be done by a human, especially in work that involves the same action done repeatedly.
For instance, travel agencies have many high volume, transaction-based processes. They routinely have to deal with multiple airlines, from legacy carriers with decades-old IT systems, to newer low-cost carriers. This means that staff regularly interact with different management systems, styles of invoice, itineraries, processes and data, further complicating things and raising the likelihood of human error. This is just with airlines, but add in hotels, cruises, car-hire firms and the many other stakeholders and the complexity just grows.
The inefficiencies it creates costs time, money and affects staff morale – I can’t imagine many travel agency employees entered the industry due to their love of paperwork and administration…
Real benefits for agencies
In an industry that has been and will continue to be buffeted by the disruptive effects of the Internet, as well as changing traveller habits, such inefficiency can make the difference between profit and loss.
Each time a travel agent makes an error to a booking, and wishes to change it, the agency will be charged. When the agent is making dozens, if not more bookings per day errors can – and will – creep in. The same can be said for regular changes to itineraries. A study in 2015 calculated that a travel agent uses up 24.5 minutes per hour – that’s 41 per cent of their time – cancelling flights, re-booking on the same or different flight altering the class, date or route.
RPA is able to automate many of the processes currently performed by travel agency staff, freeing them up to do better, higher-value work. The many hundreds or thousands of invoices that arrive can immediately be opened, logged and stored in the correct place. Much of the activity involved in flight and hotel bookings can be automated, leaving the human to only make the final checks and decision.
Not only would this reduce time and cost for the agency, but it would allow the company to redirect staff to more frontline, customer-facing roles.
More RPA developments
The technology is also becoming more sophisticated. UiPath is developing ways to incorporate Artificial Intelligence into our RPA technology, potentially enabling us to handle even larger amounts of unstructured data, quicker and at much lower cost.
By reducing the time it takes to complete repetitive, rules-based tasks, and all but eliminating human error in such processes, RPA can provide the travel agency sector with a significant competitive boost. This would allow them to cut costs and become more competitive, reaching out to more travel segments, serving a wider range of hotels, airlines and other service providers and generally making travel more accessible.
Craig Bond has been appointed executive vice president of operations at Bangkok-based Onyx Hospitality.
Prior to joining Onyx, Bond held the role of vice president of operations with Oakwood Asia-Pacific, overseeing the group’s regional portfolio and supporting the opening pipeline of properties.
Bond has also held leadership roles with Pan Pacific Hotels, Mirvac and Saville Hotel Group across Australia and the Oceania regions.
Airline ancillary revenue is projected to increase 22 per cent to hit US$82.2 billion worldwide this year, US$57 billion of which comes from a la carte fee activity, according to research by IdeaWorks Company and CarTrawler.
This represents a 264 per cent increase from the 2010 figure of US$22.6 billion, the first annual ancillary revenue estimate by the two companies.
With few exceptions, the research shows airlines all over the world are moving to a la carte methods to provide more choices for consumers while boosting ancillary revenue.
A joint statement by IdeaWorks and CarTrawler stated that the pace of ancillary revenue activity quickens when major alliance members, such as Air France/KLM, American, Lufthansa, Qantas, and United embrace ancillary revenue methods. The changes have a ripple effect through the oneworld, SkyTeam, and Star Alliances which encourage member airlines to adopt the same methods to smooth commercial and operational connections.
This partially explains why the largest share of the 2017 increase came from the world’s traditional airlines at US$6.1 billion, or 41 per cent of the total increase.
For example, throughout North America, Europe, and Australasia, basic economy fares are now prevalent for short and mediumhaul travel. Airlines using this a la carte approach usually find more than 50 per cent of passengers select higher-priced bundled options. When this activity is matched by an ever-growing pool of airlines, the result is billions more ancillary revenue.
IdeaWorks and CarTrawler further stated that “it’s reasonable to suggest ancillary revenue will someday exceed the airline industry’s annual fuel bill”.
