Trade split as Thailand mulls scrapping travel agent security deposit

March 15, 2018

money-concept — Outbound agents currently put down a one-time security deposit of 200,000 baht

A proposal to abolish the collection of security deposits from Thai outbound agents has been met with mixed reactions from the travel industry.

While his predecessor Kobkarn Wattanavrangkul had proposed to increase the deposit amount, tourism minister Weerasak Kowsurat wants it scrapped entirely as it is deemed especially costly for start-ups.

Outbound travel agents are currently required to pay 200,000 baht (US$6,420), compared with 100,000 baht for inbound and 50,000 baht for inbound and domestic agents.

Outbound agents currently put down a one-time security deposit of 200,000 baht

Suparerk Soorangura, the president of Thai Travel Agents Association (TTAA), told TTG Asia that he strongly supports the minister’s abolition of the deposit.

“The ministry collects guarantee deposits (and places them into the Tourist Business Protection Fund) so disputes between tourists and travel agents can be resolved immediately,” he explained. However, the benefits of the fund – which Suparek approximates to have billions of baht – cannot be equally distributed to all contributing parties.

“Besides, the security deposit requirement increases the workload for the ministry, (when it could devote more) focus to planning and developing Thailand’s tourism, which is now growing slower than neighbouring countries’,” Suparerk added.

The TTAA president instead suggests that the Ministry of Tourism and Sports discuss with insurance companies ways to encourage tourists to protect themselves and reduce their own risks.

On the other hand, Ratchata Warunsukhasiri, owner of Miracle Time Travel, is opposed to the proposal of removing the security deposit. To him, 200,000 baht fees is not a huge sum for travel agents.

He opined that start-up travel agents should have liquidity and be well-prepared prior to establishing a company. Moreover, he advises the ministry to screen entrepreneurs by reviewing tour guide knowledge, personal records, and their ability to understand the market and forecast its movements.

Moreover, Chotechuang Soorangura, associate managing director of NS Travel & Tours, is concerned that the removal of the deposit would give rise to more fraudulent travel agent practices.

“I think the ministry should still collect guarantee deposit, but offer loans with low interest to start-ups that want to enter the tourism industry but are short of revolving fund.”

IHG buys 51% stake in Regent; IC Hong Kong to become a Regent once again

By TTG Asia

March 15, 2018

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intercontinental-hong-kong-4619204796-2x1 — InterContinental Hong Kong will become a Regent again

InterContinental Hotels Group (IHG) is acquiring a 51 per cent stake in Regent Hotels and Resorts for US$39 million as part of its expansion efforts. It has the right to buy up the remaining 49 per cent interest in phases from 2026.

IHG intends to bring Regent into its luxury portfolio and grow the brand from six hotels today to over 40 hotels in key global gateway city and resort locations over the long term.

InterContinental Hong Kong will become a Regent again

The US$39 million in cash will be paid in three tranches of US$13 million, the first upon the date of completion, the second in 2021 and the third in 2024. These amounts will be funded within IHG’s existing capital expenditure guidance of up to US$350 million gross, and US$150 million net, per annum into the medium term.

IHG also announced that following an extensive refurbishment due to commence in early 2020, InterContinental Hong Kong, originally a Regent, will return to its original brand in early 2021.

Steven Pan, executive chairman of Formosa International Hotels, said the rebrand is “symbolic of our ambition to return the brand to its former glory” and touts it “one of the greatest brand comebacks in the hotel industry”.

“IHG shares our vision for the brand and has the ability to make our ambition a reality. IHG has a deep understanding of how to protect what makes the Regent brand so unique and special, whilst at the same time ensuring that the brand can grow and thrive on a global scale,” he added.

Keith Barr, IHG’s CEO, said: “We see a real opportunity to unlock Regent’s potential and accelerate its growth globally. In addition, by creating a dedicated luxury division, we will be bringing together some of the most experienced and respected people in the industry who will help drive our luxury offer, ensuring that our existing luxury brands continue to evolve.”

Agents say Mega Maldives’ exit is no loss

By Feizal Samath

March 15, 2018

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Mega Maldives Airlines, the troubled private airline which once claimed to carry 10 per cent of all tourist traffic into the Maldives, has gone into voluntary liquidation, after suspending operations in May 2017.

The news didn’t come as a surprise to the trade. “(This would have) no impact on the industry. Mega Maldives has not been operating for a long time,” said Abdulla Ghiyas, president of the Maldivian Association for Travel Agents and Tour Operators.

Airline reportedly in debt and unable to secure new investors

Other trade members also expressed similar views, saying that Mega Maldives’ long absence has been factored into their business decisions, especially since there are other airlines servicing destinations between China and the Maldives.

According to local media reports, the debt-ridden airline was unable to secure a new investor and restart operations, and on February 27 this year entered into voluntary liquidation.

The company website could no longer be accessed. CEO and founder George Weinmann, who has a 49 per cent stake in the company, and other spokespersons were also not reachable for comment.

Since a May 2, 2017 announcement that the airline was temporarily suspending all flights immediately as part of’ “restructuring and recapitalisation” efforts, there has been no information on the status of the airline.

The airline, largely dependent on the Chinese market, was badly hit by falling arrivals in 2016 forcing it to shed staff and cut the number of aircraft to three from five.

Mega Maldives was established in 2010 with the intention of expanding direct air connectivity between the Maldives and emerging market destinations, and at one time was operating flights to Beijing, Shanghai, Chongqing, Chengdu, and Hangzhou as well as Incheon (Seoul).

But its network shrank dramatically to just two destinations – Beijing and Shanghai – when financial troubles hit the airline.

Currently Air China, Beijing Capital, Sichuan Airlines, China Eastern and China Southern operate flights between Chinese cities and the Maldives.

The country’s other airline, Maldivian, operates to eight destinations in China, Bangkok, Dhaka and two cities in India.

Carnival strikes port development deal with Japan’s Sasebo

By TTG Asia

March 15, 2018

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sasebo-nagasaki — Carnival will invest in terminal and get berthing preference

Carnival Corporation has signed an agreement with the Japanese port city of Sasebo, which will see the company invest in the construction of a new port terminal, scheduled to to come into operation by 2020.

As part of the agreement, Carnival Corporation will be granted berthing preference, enabling the company to optimise its cruise itineraries visiting the port.

Carnival will invest in terminal and get berthing preference

The partnership supports the Japanese government’s initiatives to develop the country’s ports by 2020, in advance of the Tokyo Olympic Games. Of the public-private partnerships that have emerged, Carnival Corporation has the most number of committed ports.

According to a Carnival statement, Japan’s ports have witnessed exponential growth in visitors over the past few years. The growing popularity of cruising in Asia is expected to introduce greater strain on Japan’s existing port infrastructure.

Carnival Corporation currently has the largest cruise presence in Japan, including over 870 calls in 45 ports in Japan, carrying an estimated 1.8 million cruise passengers in the market.

Meanwhile, one of Carnival Corporation’s cruise brands, Princess Cruises recently unveiled a North Asia itinerary on Majestic Princess, which will homeport at Keelung, Taipei (Taiwan) for the first time from the end of this month to July.

After ending her current Singapore homeport season on March 25, Majestic Princess will sail to Keelung, offering over 20 cruises visiting Japanese ports including Okinawa, Ishigaki, Nagasaki, Sakaiminato, Osaka, Miyazaki, Kagoshima and Busan in South Korea. Three- to seven-night sailings are available.

Xiaozhu, agoda get cosy with new partnership

By TTG Asia

March 15, 2018

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Chinese home-sharing platform Xiaozhu.com and global OTA agoda have combined forces in a global strategic partnership that will see both companies collaborating in areas including listings, technology and service innovation, branding and marketing.

The initial phase of the cooperative partnership will see the two companies share inventory, resulting in 100,000 listings on each platform.

Spencer Low, managing director, Greater China, commented: “This partnership will offer alternatives to traditional hotels in China, and will benefit travellers who are looking for more distinctive options for their accommodation needs.”

Among the benefits of the Xiaozhu-agoda alliance, added Low, is the flexibility for groups of friends or family to stay together at a larger property, more options for business travellers seeking home conforts, and a range of price points to cater for a variety of budgets.

Chen Chi, co-founder and CEO of Xiaozhu, dubbing the joining of forces a win-win cooperation, stated: “As Chinese outbound and inbound tourism is growing rapidly, homestay platforms must be able to provide high-quality services to global consumers. To this end, Xiaozhu is accelerating cooperation with our industry partners.”

Since launching its overseas business in 2017, Xiaozhu now covers listings in over 100 overseas cities, with a particularly strong upward trend in booming homestay markets like Japan and Thailand.

Amadeus invests in airport passenger flow venture

By TTG Asia

March 15, 2018

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Amadeus_CrowdVision — Managing crowds using computer vision software and AI

As the global aviation industry faces a boom in passenger traffic, Amadeus Ventures has invested in CrowdVision, an early stage company that uses computer vision software and AI to help airports monitor the flow of passengers in real time to minimise queues and more efficiently manage resources.

“Together with CrowdVision, we will be able to help airports to better anticipate and respond to traveller flows for better real-time, planning and investment decisions… When airports run smoothly, everyone benefits: airports can get more value out of their retail areas, more flights can take off on time, and travellers enjoy better journeys,” commented Suzanna Chiu, head of ventures at Amadeus.

Managing crowds using computer vision software and AI

According to a statement from Amadeus, CrowdVision’s existing airport customers are benefiting from reduced queues and waiting times, leaving passengers to spend more time and more money in retail areas. Others have optimised allocation of staff, desks, e-gates and security lanes to make the most of their existing infrastructure and postpone major capital expenditure on expansions.

With Amadeus as investor, CrowdVision gains access to global network of airports and travel partners, the start-up’s CEO, Fiona Strens, said.

CrowdVision joins Situm, Avuxi, Betterez, Bluesmart, BookingPal, Flyr and Yapta in the Amadeus Venture portfolio. The corporate venture arm of Amadeus was launched in 2014.

Aviation roundup: Air India, Citilink Indonesia and Hainan Airlines

By TTG Asia

March 15, 2018

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Air India launches flights to Tel Aviv
From March 22, Air India will begin thrice-weekly direct flights from New Delhi to Tel Aviv, Israel.

The outbound flight will depart New Delhi at 16.50 and arrive in Tel Aviv at 20.25. The return leg will depart Tel Aviv at 10.15 and arrive in New Delhi the following day at 09.00. Flight time is seven hours and 10 minutes one-way.

The route will utilise a Boeing 787 Dreamliner with 18 business class seats and 238 economy seats.

Citilink Indonesia flies to three new destinations in SE Asia
Budget airline Citilink Indonesia will soon be flying to Malaysia, Singapore, and Thailand.

On March 25, the low-cost offshoot of Garuda Indonesia will fly daily to Penang. Double-daily Jakarta-Singapore flights will launch later in April, and flights to Bangkok are slated to commence later this year.

New non-stop service between London and Changsha
Hainan Airlines will be launching a non-stop flight between London’s Heathrow Airport and Changsha Huanghua International Airport on March 23.

HU421 will depart Changsha at 11.20, and arrive in London at 16.30, while HU422 will depart London at 22.00, and land in Changsha at 16.25 the following day. The route will be serviced by a Boeing 787 deluxe wide-body aircraft.

This thrice-weekly service is Hainan Airlines’ second direct flight between the UK and China, having previously launched a Manchester-Beijing service.

Cathay Pacific and Air Astana become codeshare partners
Cathay Pacific and Air Astana will begin codesharing on each other’s flights on March 15, 2018.

Cathay Pacific will place its “CX” code on Air Astana’s non-stop flights between Hong Kong and Almaty, as well as on connecting services between Almaty and Astana, the Kazakh capital.

Air Astana currently flies twice weekly between Hong Kong and Almaty, on Tuesdays and Fridays, but will be upping frequency by adding a third service, on Mondays, from March 25.

Cathay Pacific will also codeshare on Air Astana’s five weekly services between Bangkok and Almaty (going daily from 25 March), and four weekly services between Seoul and Almaty.

Meanwhile, Air Astana will place its “KC” code on selected Cathay Pacific services operating between Hong Kong and Sydney, Melbourne, Perth and Singapore.

Indulge in an Art Affair at Mandarin Oriental, Hong Kong

By TTG Asia

March 15, 2018

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Mandarin-Oriental-Hong-Kong-Mandarin-Grill-And-Bar-Art-Menu-The-Last-Dum... — Enter the world of Konstatin Bessmertny at Mandarin Grill + Bar

Mandarin Oriental, Hong Kong is offering the Art Affair package, which includes a stay and passes to Art Central Hong Kong and Art Basel Hong Kong, two major art events taking place in Hong Kong at the end of the month.

Available from March 25 to April 2 for stays of at least three nights, the package includes accommodation at the hotel; day passes for two to Art Central (March 27 to April 1) and Art Basel Hong Kong (March 29 to 31). The Art Basel pass also comes with an Art Basel booklet, VIP lounge access, and for an additional HK$850 (US$108.40) per person, a private guided tour.

Enter the world of Konstatin Bessmertny at Mandarin Grill + Bar

Other package inclusions are daily breakfast for two at one of three restaurants of the guests’ choice; a welcome bottle of ‘R’ de Ruinart Champagne; and an art-inspired welcome amenity.

The hotel is situated adjacent to Central Harbourfront, the venue for the fourth edition of Art Central. This fair will feature over 100 international galleries showcasing emerging and established artists from across the globe.

Art Basel at the Hong Kong Convention and Exhibition Centre will bring together 248 participating galleries from 32 countries and territories for its sixth year.

Mandarin Oriental, Hong Kong is also partnering Art Advisory CONSIGG to transform Michelin-starred Mandarin Grill + Bar into a gallery featuring the works of Konstantin Bessmertny.

Room rates start from HK$4,980 per night, based on double occupancy.

Pan Pacific names GM for Perth property

By TTG Asia

March 15, 2018

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Pan Pacific Hotels Group (PPHG) has appointed Rob Weeden as general manager for Pan Pacific Perth.

Prior to joining PPHG, he was vice president, sales and marketing at Shangri-La Hotels & Resorts, and was based out of Dubai, UAE since 2012.

The experienced hospitality professional has held leadership positions both domestically and abroad, over a career that has spanned more than 25 years. He has headed up Shangri-La Hotel Cairns and Traders Hotel Kuala Lumpur as general manager in 2008 and 2011 respectively, as well as worked as director of sales and marketing for several properties under the group in Malaysia and Australia.

Banyan Tree veteran heads up Angsana Velavaru as GM

By TTG Asia

March 14, 2018

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Mario Piazza has been named general manager of Angsana Velavaru, moving to the Maldives from his most recent appointment as the hotel manager of Banyan Tree Ringha, China.

Piazza first joined the Banyan Tree Group as an area recreational manager at Banyan Tree Bintan and Angsana Resort and Spa in 2001. After a stint with Vinpearl Resort and Spa Group, he rejoined the Banyan Tree Group and has since cut his teeth in various positions in different locations in the region.

He had assumed roles including group recreation director and operations – Laguna Lang Co, Vietnam and the Shanghai corporate office, director of recreation at Banyan Tree Phuket and director of hotel operations manager of Banyan Tree Lijiang.

Trade split as Thailand mulls scrapping travel agent security deposit

IHG buys 51% stake in Regent; IC Hong Kong to become a Regent once again

Agents say Mega Maldives’ exit is no loss

Carnival strikes port development deal with Japan’s Sasebo

Xiaozhu, agoda get cosy with new partnership

Amadeus invests in airport passenger flow venture

Aviation roundup: Air India, Citilink Indonesia and Hainan Airlines

Indulge in an Art Affair at Mandarin Oriental, Hong Kong

Pan Pacific names GM for Perth property

Banyan Tree veteran heads up Angsana Velavaru as GM

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