The world’s 901 million travellers and where they are going: UNWTO

November 8, 2017

travellers-generic — In APAC, South Asia saw fastest growth in international visitors

Destinations worldwide welcomed 901 million international tourist arrivals in the January-August period this year, up seven per cent from the same period of 2016 and marking the eighth consecutive year of continued growth for international tourism, according to preliminary findings from the UNWTO World Tourism Barometer.

Growth in arrivals was strongest in Africa (+nine per cent) and Europe (+eight per cent), followed by Asia-Pacific (+six per cent), the Middle East (+five per cent) and the Americas (+three per cent).

In APAC, South Asia saw fastest growth in international visitors

In Asia-Pacific, South Asia (+10 per cent) led growth, followed by South-east Asia (+eight per cent) and Oceania (+seven per cent), while results in North-east Asia (+three per cent) were rather mixed, the barometer showed.

Europe saw international arrivals rebound in both Southern and Mediterranean Europe (+12 per cent) and Western Europe (+seven per cent) following a weak 2016. Arrivals grew by six per cent in Northern Europe and by four per cent in Central and Eastern Europe between January and August 2017.

Africa recorded the fastest growth of all five regions, thanks to the strong rebound in North Africa (+15 per cent) and the sound results of Sub-Saharan Africa (+five per cent).

Most destinations in the Americas (+three per cent) continued to enjoy positive results, led by South America (+seven per cent), followed by Central America and the Caribbean (both +four per cent). In North America (+two per cent), robust results in Mexico and Canada contrast with a decrease in the US, the region’s largest destination.

Seeing more mixed results is the Middle East (+five per cent), with some destinations strongly recovering from negative growth in previous years, while others reported declines through August.

Turning to the top 10 outbound markets, international tourism expenditure grew fastest in China (+19 per cent), South Korea (+12 per cent), the US (+eight per cent) and Canada (+seven per cent).

Worth noting beyond the top 10 source markets is the significant recovery in demand from Russian (+27 per cent) and Brazil (+35 per cent) after a few years of declines in tourism expenditure abroad.

Qatar buys a stake in Cathay Pacific

By TTG Asia

November 7, 2017

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Qatar Airways has entered into an agreement to purchase an amount of 378,188,000 shares of Cathay Pacific Airways, being approximately 9.61 per cent of the total issued share capital. Completion of the transaction was expected to take place yesterday (Monday, November 6) in Hong Kong.

Qatar Airways buys about 9.6 per cent stake in the Hong Kong flag carrier

Qatar Airways group CEO Akbar Al Baker said: “Qatar Airways is very pleased to complete its financial investment in Cathay Pacific.”

“Cathay Pacific is a fellow oneworld member and one of the strongest airlines in the world, respected throughout the industry and with massive potential for the future.”

This investment further supports Qatar Airways’ investment strategy which already includes a 20 per cent investment in International Airlines Group, 10 per cent investment in LATAM Airlines Group and 49 per cent investment in Meridiana, a statement said.

A streamlined Sabre records 96.1 per cent growth in 3Q profit

By TTG Asia

November 7, 2017

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sean-menke — CEO Sean Menke (pictured) led the company through a restructuring which reportedly saw 900 jobs cut

On the back of a major cost-cutting exercise, Sabre Corporation has released its 3Q2017 financial results showing a revenue of US$900.6 million, up 7.3 per cent year-on-year, and a staggering 96.1 per cent growth in operating income to US$176.8 million.

Looking at Sabre’s Airline and Hospitality Solutions unit, revenue increased 4.8 per cent to US$274.9 million, with mid-single digit revenue growth in AirVision and AirCentre solutions, and Hospitality Solutions revenue increasing in the mid-teens, offset somewhat by a modest decline in SabreSonic revenue due to the ending of legacy reservations system services to Southwest Airlines.

CEO Sean Menke (pictured) led the company through a restructuring which reportedly saw 900 jobs cut

Airline passengers boarded declined 9.4 per cent due to the impact from Southwest Airlines. Excluding the carrier, total passengers boarded increased 11.5 per cent, driven by the implementation of Alitalia in October 2016 and passengers boarded growth of 7.7 per cent on a consistent carrier basis.

Operating income increased 28.3 per cent to US$68.4 million, with a margin of 24.9 per cent compared to 20.3 per cent for the prior-year quarter.

Adjusted EBITDA increased 17.4 per cent to US$111.7 million, and its margin was 40.6 per cent, widened from the 36.2 per cent in 3Q2016.

According to Sabre, Airline and Hospitality Solutions operating income and Adjusted EBITDA growth were supported by the benefits from the cost reduction and business alignment programme initiated in August 2017 and higher service-level agreement expenses in the 2016 quarter.

Key customer wins including Travelgenio, the second largest OTA in Spain, Shenzhen Airlines and China Airlines, and Rydges Hotel Group and Sokos Hotels. Its Airline Solutions delivery team completed over 40 customer implementations, including its SabreSonic reservation system and a broad suite of solutions at Air Niugini, it said.

Meanwhile, revenue from Sabre’s Travel Network rose 8.6 per cent with global bookings growing 3.2 per cent. Bookings grew 16 per cent in EMEA and 10.8 per cent in Asia-Pacific, but declined 1.9 per cent in North America and 1.9 per cent in Latin America – dampened by the impact of recent hurricanes in the US and Caribbean

Travel Network operating income increased 8.7 per cent to US$198.4 million. Operating income margin was 31.4 per cent, compared to 31.3 per cent for the prior-year quarter. Adjusted EBITDA increased 7.9 per cent to US$237.3 million, with a margin of 37.5 per cent compared to 37.8 per cent in the prior-year quarter.

Finally, Timor Leste border crossers get flights to Indonesia

By Ade Siregar

November 7, 2017

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indonesia-timor-border — About 250 cross the border separating Indonesia and Timor Leste everyday

Starting mid-November, Garuda Indonesia will launch four-times weekly chartered flights between Kupang city in Indonesia’s East Nusa Tenggara and Dili in Timor Leste, the first direct flight connecting the two countries.

Johanes Prihatin, head of the tourism office, Belu Regency, shared that at present, about 250 travellers cross the border of East Timor via the Motaain Checkpoint to head for Kupang or Jakarta daily.

About 250 cross the border separating Indonesia and Timor Leste everyday

“About 10 per cent continue their trip to Kupang by plane, the rest choose to take the road trip,” said Johanes, stressing that the new route will give travellers a shorter travel time from and to both cities.

The Garuda flights, serviced by the 70-seat ATR 72 aircraft, will mainly target the Visiting Friends and Relatives (VFR) segment of travellers, according to Kokoh Aritonang, general manager of Garuda East Nusa Tenggara.

Other than VFR, the growing number of business travellers from Kupang to Dili and vice versa is expected to contribute to demand for the route. “Although these are medium and small scale business people, their businesses are running pretty well in both cities,” explained Kokoh.

East Nusa Tenggara tourism stakeholders have recently been intensifying promotions, such as through participation at the recent Komodo Travel Mart.

Currently travellers from Kupang to Dili take a 45 minutes flight to the Border City of Atambua, then continue the journey in a two-hour road trip to Dili. Other alternatives include the existing flight operated by NAM Air from Kupang to Waingapu, then to Bali before departing to Dili the next day.

There are plans for the flights to be converted to scheduled flights in March next year.

Customer experience moves up on the OTA agenda

By Mimi Hudoyo

November 7, 2017

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online-travel-booking — OTAs and booking engines looking to deliver more targeted content and intuitive user experience

Online travel providers, often associated with inventory size rather than service, are increasingly fine-tuning the customer experience through methods ranging from tech-focused ones to partnerships with more traditional players.

Agoda has opened six offices around the world to allow it to put customer care more upfront. “We have a lot of exercises going on at the moment to allow (more effective) information exchange (between customers and hotels) using property management systems,” Timothy Hughes, vice president, Business Development of Agoda, said.

OTAs and booking engines looking to deliver more targeted content and intuitive user experience

“Customers want good products and efficiency. They do not want to hang around and search (for products and information) anymore,” he added.

Meanwhile, Booking.com is focusing on individual preferences in corporate travel in its development of a new B2B corporate travel product for SMEs. John Traas, regional director Southeast Asia of Booking.com, explained that the booking engine started working with TMCs to find out what individual customers use. It then looks at which company these individual customers are from, then create product banners for particular SMEs.

Booking.com intends to bring its efforts in the B2B corporate travel space to Asia-Pacific in the next 12-18 months, according to Traas.

While corporate travel is still a small segment for Booking.com compared to the leisure market, Traas was confident it would grow.

Meanwhile, with huge choices available on its site, Trivago sees the opportunity to provide individual services according to customers’ profiles.

Robin Harries, head of global brand marketing of Trivago, said: “We look at concepts. When searching for a hotel, one customer (looks at facilities) like spa or gym, the other wants something else.

“We want to know the customers’ individual preferences when choosing a hotel and provide them with choices that meet their profile. So we are investing a lot on AI, focusing on profiling.”

This may change how content is presented on the website, said Harries.

MITA wants to double attendance at coming travel fair

By S Puvaneswary

November 7, 2017

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mita-travel-fair-2017 — A hundred buyers were in attendance at MITA Travel Fair 2017, 200 targeted for next year

For the third edition of its travel fair next year, the Malaysia Inbound Tourism Association (MITA) is hoping to double the number of attendees from this year’s event.

A departure from this year’s MITA Travel Fair, where only 100 buyers from ASEAN were invited in conjunction with Visit ASEAN Year, international buyers will be invited from North America, the Middle East, China, Australia, ASEAN member countries as well as Europe to next year’s event.

A hundred buyers were in attendance at MITA Travel Fair 2017, 200 targeted for next year

MITA president, Uzaidi Udanis, said: “Invitations have been sent to individual buyers who have been supportive of Malaysia in the past. We are also working with Tourism Malaysia overseas offices as well as with tourism associations overseas to identify and invite more buyers.

“We are also looking at 1,000 exhibitor booths comprising hotels, attractions, state tourism boards and product owners from around the country.”

Also new to the show next year are conference sessions designed for buyers and local tour operators revolving around themes like eco- and agro-tourism, in addition to homestays and rail tourism, all in a bid by MITA to highlight rural tourism in Malaysia.

MITA is hoping for its event to fill the gap in Malaysia for a B2B travel trade event concentrating on the inbound and domestic segments.

The third MITA travel fair takes place in Kuala Lumpur from January 19 to 21, 2018.

New appointments at Diethelm following AAE merger

By TTG Asia

November 7, 2017

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Diethelm Travel Group has appointed Victor Mogilev group director of sales and Janejira Vewatanawarangkun general manager Diethelm Travel Thailand, both of whom will be based in Bangkok at the Diethelm Travel head office.

The Russian-born and Swiss-educated Mogilev has been with the company since 2012, taking on various roles including his most recent as general manager at the Thailand office.

He will be replaced by Janejira (known as Eve) who joins the Diethelm Travel Thailand team from All Asia Exclusive (AAE), where she was general manager.

In her new role, she will oversee the crafting of experiences for Thai inbound customers. Born and raised in Germany and living in Thailand since age 16, Janejira has a bachelor’s degree in business administration with a focus on hotel management, as well as a master’s degree in European studies. She is fluent in German, English and Thai.

Both appointments come after a merger between AAE and Diethelm Travel Group, pulling from the two companies’ talents.

“By merging the two companies, clients will not only benefit from increased luxury offerings and quality service, but also a dedicated team with even more extensive experience,” said Stephan Roemer, CEO of Diethelm Travel Group. “

JacTravel launches In-Memory computing software

By TTG Asia

November 7, 2017

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fracescodemarchis — De Marchis: moving from two trading platforms to one

UK-based JacTravel, a B2B accommodation wholesaler, is rolling out a new FIT booking platform using in-memory computing software.

JacTravel said this would greatly reduce search response times, while allowing the company to increase search capacity in a structured and “forecastable” manner.

De Marchis: moving from two trading platforms to one

The project, a “significant” investment, has been led by JacTravel CTO, Peter Clements, and industry veteran, Francesco De Marchis, and has seen the company acquire and bring in-house source code as well as recruiting a specialist and dedicated team of developers, testers and business analysts, said a statement.

Francesco said: “Our aims with this project were to move from two trading platforms to one, single search and book environment, providing our partners with a seamless integration whilst operating a business as normal approach. The philosophy was to retain all the best elements of our existing platforms whilst improving performance and creating a scalable structure to facilitate our growth ambitions over the coming years.”

Clements added: “Our clients will be able to enjoy sub-second responses and the ability to take more product from us and our supply partners will naturally see the benefits from increased distribution levels and enhanced search to book conversion levels.”

The company is currently piloting the new software with a number of clients with a view to fully roll-out at the beginning of 2018.

Volcanoes could be Malaysia’s hot new tourism product

By S Puvaneswary

November 6, 2017

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The Malaysian Tourism and Culture Ministry (Sabah), along with Universiti Malaysia Sabah, is exploring the possibility of introducing volcano tourism in Tawau, which shares a border with north Kalimantan and is the third largest town in Sabah after Kota Kinabalu and Sandakan.

According to a recent report in The Star, two volcanic spots had been identified at the Tawau Hills Park, beneath turquoise waters of the park’s white sulphurous springs and at an ancient crater at Mount Lucia.

Volcano sites within Tawau Hills Park (pictured) identified as having tourism potential

Both spots are a few hours’ walk from Bombalai volcano, close to the border of Kalimantan. According to the Volcano Discovery website, this is the only volcano considered still possibly active in Malaysia, although its last eruption was thousands of years ago.

Malaysian Association of Tour & Travel Agents president, KL Tan, said: “Tawau, being the only volcanic area in Malaysia, makes it a unique tourism product.”

Moreover, he said Tawau is also the entry point for divers to Sipadan and Mabul islands, and will serve as a complementary product to diving in Sabah.

“What makes volcano tourism a niche market is the experience and interpretation of the volcanic characteristics and heritage. The market for volcano tourism ranges from recreational tourists to adventure tourists. These tourists are usually looking for something new and unique while combining their interest in other recreational pursuits such as sightseeing, hiking or mountaineering,” he surmised.

United eyes millennial demand with trade outreach

By Pamela Chow

November 6, 2017

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Patrick_Quayle_Laurence_Chin_Marcel_Fuchs_United — (From left) United's Patrick Quayle, Laurence Chin and Marcel Fuchs

Amid launching direct connections between Singapore and the US – with its latest being the only direct route to Los Angeles – United Airlines has set its eyes on a growing millennial travel market between the two destinations.

Speaking to TTG Asia in an interview, United’s vice president, Atlantic & Pacific sales, Marcel Fuchs, said: “The Singapore ambassador in US informed us that there has been 10 per cent more demand for travel from US to Singapore, and interestingly, lots of millennials are travelling between US and Singapore. We hope to drive this trend further.”

(From left) United’s Patrick Quayle, Laurence Chin and Marcel Fuchs

With this focus in mind, United has added three management positions in Singapore. It is also increasing trade outreach, said Laurence Chin, its country manager Singapore, although he did not detail how, besides sharing the airline’s longterm plans, including investments in its services at Los Angeles International Airport where it most recently did a US$570 million revamp of its ticketing lobby, service reception, baggage carousel and lounge.

The airline has also upgraded its mobile app. Fuchs shared that the app, whose features include automated check-in, flight status and in-flight entertainment displays – will soon enable United passengers to make changes to their flight itineraries as well as scan and store their visas.

The airline is also adding Polaris lounges throughout all hubs in the US, London, Hong Kong and Tokyo.

Patrick Quayle, its vice president, international network, added that the airline’s latest Los Angeles route opens up access to emerging regions Austin, Dallas and Houston in Texas.

In response to LCC entering the longhaul playing field, Quayle remarked that United remains competitive with its direct trans-Pacific route, but is keeping an eye on potential competition in the future.

The world’s 901 million travellers and where they are going: UNWTO

Qatar buys a stake in Cathay Pacific

A streamlined Sabre records 96.1 per cent growth in 3Q profit

Finally, Timor Leste border crossers get flights to Indonesia

Customer experience moves up on the OTA agenda

MITA wants to double attendance at coming travel fair

New appointments at Diethelm following AAE merger

JacTravel launches In-Memory computing software

Volcanoes could be Malaysia’s hot new tourism product

United eyes millennial demand with trade outreach

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