Executive council members of the Malaysian Association of Tour and Travel Agents (MATTA) have announced plans for 2018, which include the purchase of a pavilion at ITB Berlin, a first for the association, and roadshows to nordic markets in the first half of the year.
MATTA president KL Tan said: “We just opened for (the ITB) registration. We expect 25 members to join us as well as 15 hoteliers and product owners.”
ITB Berlin 2017
Following the ITB Berlin travel trade show, MATTA will be organising a roadshow to Sweden, Denmark and Finland from March 12-15.
In addition, MATTA will more aggressively organise B2B roadshows in New Delhi (January), Mumbai, Pune and Ahmedabad (February), Chengdu, Chongqing, Jakarta and Surabaya (March), and Dhaka, Kolkata and Hyderabad (April).
Tan said there will be a focus on South Asia, China and Indonesia – key inbound markets for Malaysia. Arrivals from these markets comprised 21.5 per cent of total arrivals to Malaysia for the first five months.
MATTA, which only started organising its own roadshows this year, intends to work closely with Tourism Malaysia’s overseas offices and travel agents associations in the country it brings its events to.
In addition, MATTA has submitted its proposals to the government to be taken into consideration when Budget 2018 is tabled on October 27. Tan shared: “Our proposals include easing conditions to assist new and small companies, providing tax incentives to tour operators who handle more than 750 foreign tourists and 1,500 domestic tourists annually, and providing funding for capacity building in the travel sector including apprentice training to reskilling and upskilling of current practitioners.
“We also asked the government for incentives for online marketing and promotions to enable agents to compete more effectively with online travel agents. And to attract more high-end travellers, we have asked for a waiver of import duty for luxury tour vehicles and excise duty exemption to be extended to all classes of tourism vehicles.”
Sherwood: IoT brings ease to all partners in supply chain
The travel industry is in the throes of unprecedented change. There’s a trend towards leveraging mobility services, big data and the Internet of Things (IoT) to automate services. Process management and cloud-based applications are revolutionising the sector too. We’re also seeing new competitors in this space, with many organisations introducing more customer-centric, digital business models, while industry stalwarts play catch-up.
Arguably, technology has already revolutionised the travel sector. Consumers are used to checking algorithm-based curated websites and apps to make their travel decisions. And, checking in for a flight online or using electronic travel documentation is already second nature.
As the IoT has the potential to change the travel market again, businesses need to embrace a strategic approach to their own digital transformation. That means understanding what the opportunities are, and how to capitalise on them while also protecting the business from risk. Let’s take a look at four key things that are going to usher in this next evolution.
Sherwood: IoT brings ease to all partners in supply chain
Growth across borders
The travel industry is global, so the infrastructure that supports it needs to be global too. To identify and achieve successful digital transformation, the industry will require best-in-class global infrastructure and information tools.
Getting the right connectivity services up and running is particularly important. Looking at the IoT and airlines, for example. One of its biggest benefits is that it brings visibility to areas that might otherwise be in darkness. Yet, in order to maximise visibility, airlines need a very reliable network infrastructure to act as the foundation for and underpin a huge range of IoT-enabled sensors and devices, connecting the aircraft itself, as well as baggage tags and everything in between.
Furthermore, to move into new geographies, travel businesses need to focus on new technology, competitive new services and the right business models to generate incremental revenue. That means having connectivity services that deliver not just on a domestic basis, but on an international one.
But to do this, a business could end up having to negotiate with hundreds of mobile communications service providers to enable mobile access for IoT services in each country. For most businesses, this is simply not viable.
The better alternative is to contract with a single provider that’s able to negotiate all the access agreements, provide end-to-end mobile and cloud connectivity, and data management services. This approach ensures cross-border connectivity, without the headache.
More productive, more efficient flight crews and stress-free travel for customers
It seems almost incredible to think that in this digital age, many flight crews still rely on hard copies of passenger manifests and other mission critical documents day to day. This creates not only inefficiencies, but also leaves room for human error. Something as simple as a tablet, connected to central airline and airport IT systems, could eliminate the need for binders full of print-outs, and provide flight crews with the most up-to-date policies, procedures and alerts, making the flight experience smoother for passengers too.
But that’s just the start. Travel companies are already using the power of big data to create ultra-personalised experiences, analysing traveller data across preference, social behaviour and buying patterns. By harnessing the power of the IoT, hotels are able to make their rooms ‘smart’ by enabling guests to adjust the temperature, lighting and even entertainment based on their personal preferences before they even check in.
There are travel businesses already taking the technology and running with it, both simplifying and enriching the travel experience to make truly personalised offers to their customers. And, this mindset is winning business and generating revenue. One medium sized hospitality company recently leveraged big data to achieve 50 per cent more repeat visits and a 15 per cent shift to direct bookings. Organisations across the world are beginning to offer seamless, multi-platform collaboration to employees, partners and customers – and they’re reaping the rewards.
Similarly, airlines can incur huge costs from time delays or unplanned maintenance. In fact, it’s estimated that just two hours of unplanned maintenance on the tarmac can cost an airline as much as US$150,000. These delays can hit margins hard and damage customer satisfaction. So it’s perhaps no surprise that aviation companies are taking action – using technology to help manage predictive maintenance and avoid breakdowns and technical delays.
World-class customer experiences
The IoT doesn’t just let travel companies give customers a seamless experience. All partners in the supply chain can get involved too. Imagine an integrated travel package, involving airlines, ground transportation, hotels, insurance companies, all linked for a seamless end customer experience. The IoT removes the manual intervention to make a seamless experience both possible and considerably more efficient.
Let’s take the example of a baggage handling team at a busy airport: give them the ability to access real-time information about missing luggage, and they will be able to operate more efficiently, while also introducing transparency into the delivery chain. In addition to supporting this key partner, the business will also be helping to enhance customer engagement and loyalty.
To make a success of an integrated supply chain, organisations need to provide a consistent experience across different channels and platforms, adopt a connected communications system to avoid information silos, and have the ability to scale solutions as demand fluctuates. Critical for all of this is to invest in an IT infrastructure that supports these new services and capabilities.
Getting rid of the risk
As businesses invest in digital business services, they also potentially increase their exposure to malicious hacking and cyber-crime. Addressing potential security vulnerabilities is crucial to ensure that a digital transformation programme won’t expose the business or its commercial supply chain partners to security threats.
Minimising risk isn’t just about securing data and applications against external threats. It is also critical to ensure service continuity and near-zero business disruption to avoid disruption to customers’ travel arrangements.
Sound risky? It’s not as risky as avoiding the digital transformation altogether – and being left behind. In terms of device and cloud connectivity, businesses need to access the IoT data over a secure, private network and ensure effective asset and policy control. Robust security services will protect the business from a range of cyber threats, but a secure mobile connectivity environment provides an extra layer of security for data to keep travellers and reputations safe.
A journey to somewhere new
To expand into new markets and across borders, travel companies need to take a global view, where a global network infrastructure, with global connectivity options becomes an integral foundation for a digital transformation programme.
For those organisations equipped with the right tools and support from technology partners, the opportunities to enhance their business and gain global market share are significant. Manage the associated business risks well, and those opportunities could be outstanding. Deploying IoT as part of a global digital transformation strategy can optimise productivity, maximise efficiency and enhance the customer experience. Now that’s a trip worth taking.
The Bangkok Marriott Hotel Sukhumvit has rolled out a Dining In The Sky Package from now until December 31.
At 5,000 baht (US$151) per night, the deal includes a booking for two at the hotel’s Octave Rooftop Lounge & Bar on the 45th floor; 2,500 baht net credit at the bar (per stay); signature cocktail for two (per day); buffet breakfast for two; in-room high speed internet; 30 per cent discount at any of the hotel’s F&B outlets; 30 per cent discount on spa treatments; and 30 per cent discount for laundry services.
Moxy Bandung
Marriott International has opened Moxy Bandung in Indonesia, the first Moxy in Asia-Pacific. Located in the Dago district, the boutique hotel comprises 109 rooms which feature an open-storage concept, and are furnished with 43-inch LCD flatscreen televisions, complimentary Wi-Fi and numerous USB ports. Guests check in at the bar, and facilities include a Lobby Bar that is open 24/7, four meeting rooms for up to 200 guests, a Sky Bar on the rooftop, and communal Living Room space.
The Ritz-Carlton, Koh Samui
The oceanfront property features 175 suites and pool villas spread over 23ha of land that used to be a former coconut plantation. The resort’s piece de resistance is the 3,800m2 Spa Village Koh Samui with eight treatment suites, three massage pavilions, a yoga pavilion, health bar and a lap pool with cabanas. Other facilities include seven dining spaces, beachside pool, watersports centre and two tennis courts. The property also boasts a Swim Reef within the resort. Home to over 50 species of fish, it offers snorkelling and fish-feeding experiences. Guests can also partake in a Muay Thai gym experience, or enrol in a southern Thai cooking class.
InterContinental Singapore Robertson Quay
The residential-inspired property at The Quayside offers 225 studios and suites, including a Penthouse with views of the Singapore River and the city skyline. Aside from the lap pool and 24-hour fitness studio, other facilities include five meeting and event spaces. Meanwhile, F&B options include the Quayside Lounge, New York institution Wolfgang’s Steakhouse, a bar and dining concept from the team behind Izy Sushi, and flagship restaurant Publico, a multi-concept dining destination comprising a variety of Italian experiences.
Shangri-La Hotel, Colombo
Located at One Galle Face along the Galle Face Green promenade, Shangri-La Hotel, Colombo offers Indian Ocean views from most of its 500 guestrooms and suites and 41 serviced apartments. Aside from the six restaurants and bars, recreational facilities include CHI, The Spa with seven treatment rooms, a 24-hour fitness centre, and a swimming pool and pool bar. For events and meetings, the hotel has over 3,500m2 of event spaces across two ballrooms, several function rooms and a private outdoor lawn. The property is open for reservations for stays from November 17.
SureStay Plus Hotel by Best Western Sukhumvit 2
SureStay Hotel Group debuts in Asia in the City of Angels. The new-build property has 85 rooms across two configurations, and facilities such as a rooftop swimming pool, pool bar, fitness centre and business corner. The SureStay Hotel Group was first launched with three brand tiers in September 2016, and the group expects to have a global portfolio of 100 hotels either operating or under development by end 2017.
Malaysia may soon levy Goods and Services Tax (GST) on foreign online travel booking engines, a move welcomed by offline agents eager for a level playing field.
Customs Department Director-General Dato’ Sri Subromaniam Tholasy recently announced that proposals to amend the GST Act would be tabled in Parliament this month.
President of the Malaysian Association of Tour and Travel Agents (MATTA), Tan Kok Liang, commented that if the proposal materialises, it would help level the digital playing field for the association’s members while collecting much needed revenue for the government’s coffer.
“The first online travel agent in Malaysia started operating from a Kuala Lumpur office 19 years ago without a Tour Operating Business and Travel Agency Business (TOBTAB) licence. Today, giant OTAs operating in cyberspace are raking in billions of ringgit in the country without paying corporate tax or GST,” Tan lamented.
“Despite earning money from its consumers in Malaysia, foreign digital platform providers such as Uber, GrabCar, Airbnb, Agoda, Amazon and Google are not being taxed.”
On the other hand, licensed travel agents in Malaysia are subject to regulations under TOBTAB and have had to comply with various laws introduced by a host of government ministries. Tan elaborated that agent costs are higher with GST and net profits lower after paying corporate tax, “while online travel agents are having a field day”.
OTA giants are currently also spared from paying corporate tax. “As long as the Malaysian Communications and Multimedia Commission is not shutting down unlicensed online travel agents, and foreign companies refuse to register with (the commission), no corporate tax would be paid to the Malaysia Inland Revenue Board by giant OTAs.”
He hence further suggested the implementation of double deductions for e-commerce websites for inbound operators where “the profits earned would be ploughed back to the government in the form of corporate tax, on top of the GST”.
The opening of Ritz-Carlton Langkawi this month is another feather in the cap for Langkawi, today, the island resort destination in Malaysia with the most number of luxury resorts.
Arokia Das, senior manager at Luxury Tours Malaysia, said: “In the early 2000s, Langkawi was not on the map (for luxury travel). It was a sleepy island with few hotels and not many activities to interest the foreign tourist.”
“But now, it is well promoted in India as a beach destination just an hour’s flight from Kuala Lumpur,” he said, adding that the company has seen more affluent Indian tourists opting for Langkawi in the last five years.
Moreover, Ally Bhoonee, executive director of World Avenues, said: “Langkawi is a must for long stay tourists from the Middle East who visit Malaysia for two or three weeks in their peak season.”
“The island, with its varied high-end accommodation brands, helps elevate Malaysia’s status, which has long been known as a middle-income destination.”
Activity options that can impress high-end tourists have also made Langkawi an appealing luxury destination, Arokia said, citing helicopter rides, cruising on Harley Davidson bikes and private yacht sails as examples.
Bhoonee added that many of the Langkawi’s islands are uninhabited and relatively untouched, which makes for sought-after experiences such as fishing, snorkelling and wildlife watching.
Moreover, the destination also has ample support services that satisfy high-end tastes, such as luxury cars and good restaurants.
“Transport providers have benefited from Langkawi’s duty free status to invest in the latest models of luxury cars, making it easy for us to obtain transfer services to support the needs of the high-end traveller,” Bhoonee shared.
According to Langkawi Development Authority (LADA) CEO Azizan Noordin, high net worth tourists make up 15 to 20 per cent of tourists to the island.
Apart from helping the trade promote luxury packages, LADA is also working to attract more scheduled and charter flights. “We provide marketing support of up to RM300,000 and encourage airlines to offer packages for the luxury segment.”
LADA will also organise the Langkawi Island Music Festival, taking place on Pantai Cenang from December 22 to 24. The event will coincide with the year-end peak, when European tourists typically flock to the island. According to Tourism Malaysia statistics, UK tourists to Malaysia spent an average of RM692 daily in the destination last year, higher than the average regional tourist, the bulk of tourists to Malaysia.
In addition, LADA will also support the inaugural Langkawi International Blues, Roots Aseana event, taking place from December 29 to 31, also on Cenang Beach.
Iskandar Zulkarnain, director of sales and marketing of The Andaman, a Luxury Collection Resort, Langkawi, is doubtful longhaul tourists will visit just for the festivals, but opined that such events could help enhance visitor experience and encourage extended stays.
Disagreeing, Adam Kamal, CEO at Olympik Holidays, said: “Blues, island music followers and those with high disposable incomes will not think twice about traveling just to attend a music festival that they feel passionate about.
Kingston Khoo, senior product development, contracting manager, Discovery Overland Holidays, said: “Music festivals are always a hit with Europeans. It gives them another reason to consider Langkawi. Such events are important especially when so many other destinations are (competing_ to woo them. You’ve got to stand out from the crowd.”
Meanwhile, Azizan is optimistic that the hosting of PATA Travel Mart 2018 in Langkawi will help elevate the destination in the luxury segment.
WHO Helping travellers to make sense of Cambodia’s fragmented transport sector – which ranges widely in price, service and quality – was the aim of CamboTicket’s founders Shivam Tripathi, based in Cambodia, and Rahul Amand, based in Singapore.
Founded in 2014, the dynamic duo went on to develop a back-end system and delivered training to equip its more than 40 partners with the skills to shift online, as many local operators still manage operations manually.
WHAT CamboTicket sells tickets for buses, private taxis and vehicles, and ferries to more than 80 destinations in Cambodia, and cross-border trips to and from Laos, Vietnam and Thailand.
The platform provides information on the swathe of bus companies, ferries and vehicles available in the country, presenting timetables, reliability, prices and safety ratings, as well as the option to book online in one portal.
With an aim to bring the local market in line with international standards, CamboTicket works with operators to train them in transferring their operations online.
“We wanted to do something that would help the local tourism market. A lot of things are still managed manually here,” said Tripathi. “They still call bus companies and record using pen and paper.”
To date, they have trained and brought 25 per cent of Cambodian operators online.
WHY “When we launched, there was a big absence of information,” said Tripathi. “What are the true prices? What kind of buses are used, are they punctual, are they reliable, are they safe? We provide this information with transparency.”
CamboTicket brings all this information together, with the option for travellers to book online. A live chat option also allows users to ask questions about their forthcoming trip. Today, the team of 10 engage in 17 to 18 hours of live chat daily.
TARGET The start-up recently secured US$100,000 investment and won a US$7,000 grant after being crowned runner-up in the Mekong Business Initiative Tourism programme.
It plans to continue reaching out to the local market, as well as growing beyond the transport sector to bridge gaps in other areas of the travel and tourism segment. This includes tours and experiences, which Tripathi refers to as “fragmented and unorganised”, and hotels.
“The hotel market is saturated but we still see opportunities, especially with budget accommodation,” said Tripathi.
Additional plans include extending to Laos and Myanmar. “These are undeveloped countries where technology levels are low,” he said. “We have done the hard work in Cambodia, and are confident we can do the same in other countries.”
We wanted to do something that would help the local tourism market. A lot of things are still managed manually (in Cambodia).
Despite spending figures on an uptrend, inbound agents believe that Singapore is past its glory days as a shopping paradise, citing regional competition and e-commerce as the main threats.
The Singapore Tourism Board (STB) recorded a 38 per cent year-on-year increase in tourist shopping expenditure for 1Q2017, reaching S$1,600 million (US$1,183 million) and taking up the the lion’s share of total tourism receipts.
However, industry veterans express little faith in selling the image of Singapore as a retail hub. The common grouse, besides digital commerce, is the more competitive exchange rates in neighbouring countries.
Although 69 per cent of global luxury and fashion brands are present in Singapore, according to STB, this is no longer a strong selling point as brands are setting up shop in “developing countries” where the currency is cheaper, said Philip Gejon, senior sales & marcom manager – B2B, TAcentre.com.
Joseph Sze, project director of Siam Express, noted that Singapore’s top retail rival is Thailand, which offers cheaper prices and more variety.
“Singapore cannot just promote its shopping any more,” opined Sze. “Even the iconic Orchard Road is no longer seen as a place to shop, but an attraction to simply visit.”
Instead, Sze observed that tourists are preferring to spend on local handicrafts and cultural products offered beyond franchised and chain stores.
Ranita Sundra, director, attractions, dining & retail, STB, noted that the diversity of products offered “by our ethnic enclaves and heritage brands (as well as) a new wave of Singapore designers” is one of the country’s current strengths in retail.
To polish up Singapore’s retail scene, operators suggest enhancing retail spaces with experiential and value-added services unique to the country. Sze offered: “Singapore could integrate attractions with its shopping malls.”
As well, Gejon recommended developing “more support for local brands to make the Singapore shopping experience very ‘local’ – something that cannot be experienced in other parts of the world”.
Going forward, STB is developing a project to revive the vigour of Orchard Road.
Sundra revealed: “STB is launching a Singapore designer showcase come end-2018 at Orchard Green. It will be a space that celebrates Singapore design and carries brands and products by Singapore designers while providing facilities and work studios to help designers in their back-end production work.”
The board is also “(working) closely with industry stakeholders such as the Singapore Retailers Association to inject vibrancy into the retail scene through a year-round calendar of events such as the Great Singapore Sale and Singapore Golden Week”, as well as “(supporting) initiatives that profile Singapore designers and local brands as they can become a strong point of differentiation and draw for tourists”, said Sundra.
WHAT Trishaws in Singapore were, until recently, run by independent operators and served as short-distance taxi rides within key districts.
Last year, the Singapore Tourism Board (STB) appointed Trishaw Uncle as the country’s only licensed trishaw tour operator, which now manages the bulk of trishaw rides here and plies curated heritage routes.
Trishaw Uncle is managed by the same company that runs Singapore River Cruise on Clarke Quay and Marina Bay.
WHY To pull in passengers, Trishaw Uncle has introduced its own tours featuring newly installed GPS guides, location-triggered commentary and culinary stops – including afternoon tea at celebrity chef Violet Oon’s National Kitchen in National Gallery Singapore.
I took a spin with trishaw driver Yong through the colourful Little India district, admiring the Deepavali decorations overhead and trawling through alleys leading past Hindu temples.
From speakers built into the vehicle, tales of old trades and architecture were told as we passed them. Regrettably, some segments were drowned out by surrounding traffic, but Yong was amicable and filled in the blanks with his own stories.
Trishaw Uncle’s Chinatown tour also includes a tour of the revamped Chinatown Heritage Centre (CHC).
For visitors curious about the history behind Singapore’ shophouses, this is an immersive experience made more enjoyable by CHC’s docents, who are as entertaining as they are passionate.
Passengers can choose to be picked up by trishaw from CHC, or dropped off here for a tour after their trishaw ride.
HOW Introducing modern elements such as location-triggered commentary and gastronomical stops is a creative step forward for trishaw tours, especially as it complements STB’s latest marketing emphasis on Singapore stories and successes.
When asked if the GPS technology has helped business, Yong shared that travellers are now more willing to fork out the fare, valuing the enhanced service on top of the drivers’ hospitality.
The commentary is available in English, Japanese and Korean, with other languages in the pipeline, and is being implemented in phases starting with the Little India tour.
As we rode down Singapore’s busy roads, I asked Yong if he felt unsafe – although other drivers patiently give way, larger cargo vehicles can sometimes drive aggressively close. Perhaps if these tours snaked through smaller alleys instead of main roads, the rides could be more leisurely commentaries uninterrupted.
Additionally, guests who want to start or end their Chinatown tour with a visit to CHC must book and pay for CHC entry separately. It may be more appealing and intuitive to travellers if both could be purchased as a package – similar to the combination with the National Gallery Singapore and Singapore River Cruise.
VERDICT An earnest effort to refresh old rickshaw rides, Trishaw Uncle’s latest update could spur the development of even more exciting tours to draw in more modern and millennial travellers.
Aiming for double-digit growth in Indian fly cruise arrivals, the Singapore Tourism Board (STB) recently intensified training efforts targeted at the Indian travel trade.
Continuing its collaboration with Cruise Lines International Association (CLIA), STB last week rolled out a training programme covering New Delhi, Mumbai and Ahmadabad.
“We are hoping for a double-digit growth in cruise arrivals from India this year. Our focus is to attract higher quality visitors from India. We want to penetrate tier-two cities in the country for cruise holidays and will reach out to these markets through our roadshows scheduled to take place next year,” Chee Pey, assistant chief executive (international group) at STB, said.
Indians make up Singapore’s top market of cruise goers
Training is an important focus area as the destination aims to grow awareness in India and position Singapore as a cruising hub in the minds of the Indian travellers, he explained.
Through schemes such as the enhanced Cruise Development Fund (CDF), STB supported travel agents and event organisers in six successful charters in the past year, which brought in close to 10,000 cruise passengers to Singapore.
Singapore recorded 1.1 million Indian tourist arrivals in 2016, out of which 100,000 opted for cruise holidays, making India its top source market for cruising.
Agents in India also recognise the growth potential.
“Singapore is hugely popular in the Indian leisure and incentive market. Though the number of Indians taking cruise holidays in the destination is growing each year, it is still a small part of its total tourist arrivals. (But) factors like good airlift with Singapore connected to India with more than 240 flights a week offer a great opportunity to further popularise cruise holidays in India,” said Praveen Chugh, president, Travel Agents Federation of India (TAFI).
“Cruising is fast becoming a key activity for the Indian travellers visiting the Lion City,” A. Basheer Ahmed, managing director, Chennai Metro Travels, echoed, adding that honeymooners and families are segments likely to take to cruise holidays.
STB’s intensified efforts in India come at a time when cruise options from Singapore are booming – Genting Dream will be homeported in the city for a year-long deployment beginning December 3; Royal Caribbean International will have a total of 76 Singapore sailings on Mariner of the Seas, Ovation of the Seas and Voyager of the Seas for its 2017/18 season; and more.
“Genting Dream is going…to be game changer as it is going to be much larger ship. It is going to offer much more onboard experiences and introduce two types of itineraries, five-day and two-day. So, now with Royal Caribbean, Costa Cruises, Princess Cruises and Genting Dream, there are lot of option available. We have to also see how to promote pre and post cruise holidays in Singapore,” said Pey.
Moxy Bandung
InterContinental Singapore Robertson Quay
Shangri-La Hotel, Colombo
SureStay Plus Hotel by Best Western Sukhumvit 2
The opening of Ritz-Carlton Langkawi this month is another feather in the cap for Langkawi, today, the island resort destination in Malaysia with the most number of luxury resorts.
WHO Helping travellers to make sense of Cambodia’s fragmented transport sector – which ranges widely in price, service and quality – was the aim of CamboTicket’s founders Shivam Tripathi, based in Cambodia, and Rahul Amand, based in Singapore.
Despite spending figures on an uptrend, inbound agents believe that Singapore is past its glory days as a shopping paradise, citing regional competition and e-commerce as the main threats.
WHAT Trishaws in Singapore were, until recently, run by independent operators and served as short-distance taxi rides within key districts.
