TTG Asia
Asia/Singapore Saturday, 24th January 2026
Page 1655

New tripartite deal to grow Singapore’s fly-cruise market

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Royal Caribbean International has inked its second multimillion dollar partnership with the Singapore Tourism Board (STB) and Changi Airport Group (CAG) to boost fly-cruise tourism in Singapore onboard Ovation of the Seas and Voyager of the Seas.

The collaboration is expected to bring in over S$26 million (US$18.4 million) in tourism dollars and about 45,000 fly-cruise guests to Singapore on the two ships from March to June 2017, said STB. This is on top of 65,000 overseas guests projected to sail on Mariner of the Seas from October 2016 to March 2017.

Voyager of the Seas

Royal Caribbean’s first collaboration with STB and CAG has been in place with Mariner of the Seas since August 2015, and is projected to bring in over 170,000 overseas fly-cruise visitors to Singapore over three years. The first year’s numbers surpassed the annual visitor target by over 40 per cent.

Annie Chang, STB’s director of cruise shared that while the domestic market needs to be “augmented”, she is optimistic about the fly-cruise sector in Singapore and the region as well as its potential to attract overall visitorship.

“What is good for Singapore when it comes to cruise tourism is the fact that when passengers come to Singapore, they do not only come for the cruise, they do pre- and post-cruise stays. So it is a good orientation for them on Singapore as a destination and then subsequently to encourage repeat visitorship,” said Chang.

Singapore recorded a vibrant cruise scene in 2016, with cruise passenger throughput growing 16 per cent to about 1.2 million and ship calls increasing by seven per cent, according to figures by STB.

In addition, Peh Ke-Wei, Changi Airport Group’s vice president of passenger development, commented that with Terminal Four’s opening in 2H2017, the fly-cruise passenger segment would boost incremental traffic and further opportunities for the airport to develop other travel options and segments.

Sean Treacy, managing director, Asia-Pacific, Royal Caribbean Cruises commented that the current partnership, which comes on the back of the cruise line’s longest-ever deployment of ships in Singapore from 2017 to 2019, is key in educating the market about the cruise experience and highlighting the potential of fly-cruises departing from Singapore.

Ovation of the Seas arrived for her inaugural season in Singapore yesterday, with 10 sailings to take place during this season and according to Royal Caribbean, over half of the ship’s bookings have come from overseas.

New DOSM for JW Marriott Hotel Bangkok

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JW Marriott Hotel Bangkok has appointed Nicolas Auger as its new director of sales and marketing.

Auger joins the Bangkok hotel from Washington DC where he was previously based, supporting 14 Marriott hotels in Paris as multi-properties director of sales.

Nicolas Auger

Prior to that, he served five years as the market director of sales and two years as dual property director of sales and marketing for two Courtyard hotels in Paris.

With over 22 years of hospitality experience, Auger has also worked with Starwood Hotels and Hilton Hotels in Paris, Preferred Hotel Group in Milan and The Waldorf Towers in New York City.

Millennials, LCCs prop up Chiang Mai’s rising popularity: C9

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Srisuphan temple market

With the rise of LCCs and millennial preferences, passenger volume into Chiang Mai grew 13 per cent to hit 4.6 million arrivals in 2016, trailing only Phuket among Thailand’s provincial airports last year, according to C9 Hotelworks’ Chiang Mai Hotel Market 2017 report.

Commented Bill Barnett, managing director of C9: “Thailand’s legacy Chiang Mai tourism market has undergone a millennial transformation that is now tapping into a new base of travellers seeking authentic Thai experiences.”

Srisuphan temple market

Of total arrivals, 77 per cent entered the destination on domestic routes and 79 per cent were from Chiang Mai’s top five overseas source markets – China, Malaysia, South Korea, Hong Kong and the US.

Between Greater China and Chiang Mai, 5,346 direct flights were routed. Top feeder cities from the region include Hong Kong, Shanghai, Chongqing and Chengdu.

The report further revealed that in the past 10 years, 62 per cent of passenger arrivals were on LCCs.

In that period, total arrivals shot up threefold with 2013 being the turning point, fuelled by the success of the Chinese film Lost in Thailand. In that year, Greater China posted a dramatic growth of 235 per cent.

Noting the “explosive impact of cinematic wanderlust on tourism”, Barnett said: “Be it Eat Pray Love or Notting Hill, the impact on film in destination marketing is remarkable. While Thailand’s travel market outside of Bangkok had shifted to the beach in the early millennium, a rising tide of Asian travellers and westerners who increasingly want to get into the culture club instead of the surf and turf are changing the markets.”

Meanwhile in the hotel sector, C9 reported a downscaling of room inventory per hotel, reflecting a trend towards boutique hotels and hostels.

Currently, Chiang Mai has a total of 33,593 keys in 831 registered and unregistered tourist accommodation establishments. An additional 524 keys are expected to come on stream by 2019, with the majority of pipeline properties concentrated in the Old City catchment area.

“As Thailand’s government has pivoted its tourism ambition from quantity to quality, Chiang Mai has fitted nicely into the equation with a range of impressive new boutique hotels, a rampant art scene and budding culinary offerings. The shift is resonating with Thai and foreign travellers alike,” said Barnett.

The Mulia throws wedding convention to woo celebratory event business

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The Mulia, Mulia Resort & Villas in Nusa Dua, Bali is keen to build up the reputation of its complex and Bali as a desirable destination for honeymoons and wedding with a recent dedicated weddings convention.

Marry at the Mulia, a four-day event held last August, was attended by more than 50 wedding and special event planners from across the globe, director of communications Adhiyanto Wongso told TTG Asia during a media update in Singapore last week.

harmony chapel at the mulia bali

Apart from highlighting the hotel’s many indoor and outdoor venues, restaurants and recreational facilities, the convention also brought attendees to Ubud for an introduction to Bali’s rich culture and connected them with various suppliers needed for a celebratory event.

“Ideally the destination wedding showcase would be led by the local tourism board, but we found the process for approvals, planning and execution too tedious,” said Adhiyanto, revealing that the event was largely funded by The Mulia itself. “Running it ourselves allow us more flexibility,” he added.

“Most Asians know about Bali but it is relatively unknown in the US or Europe; some only heard of Bali for the first time through us. Most of the planners from these longhaul markets are not sure how a wedding could be conducted there. We hope to change that through Marry at the Mulia,” he said.

When asked if the event had generated strong business leads, Adhiyanto said it was still “too soon to tell” as couples needed months to consider wedding plans and logistics attached to a destination wedding held overseas.

“This is a long-term investment for us. Although there are no bookings yet, the number of enquiries have gone up,” he continued.

Adhiyanto added that the high-profile wedding of Taiwanese singer/actor Ken Chu and Chinese actress Han Wenwen last September had significantly raised the popularity of The Mulia complex in the regional market and led to to enquiries from many Asian couples.

The Mulia, Mulia Resort & Villas is made up of the ultra high-end 111-key all-suite The Mulia, the 526-key Mulia Resort and 108-unit Mulia Villas.

Amadeus’ new merchant model link agents with rail offers

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Amadeus will begin to act as a sales agent for rail operators in a new merchant model, which it says will enable railways to expand their global reach and simplify commercial links to travel agencies.

With the model, Amadeus is hoping to provide travel agencies globally with one link to sell multiple railways, bypassing the need for one-to-one commercial relationships between both parties.

Rail travel

Meanwhile, foreign travellers can more conveniently book rail travel through their travel agency before flying and have their entire trip – including air, hotel and rail – on the same itinerary.

Rail companies could also save costs as Amadeus takes care of all setup, billing and settlement activities, and assumes financial and legal risks of selling via travel agencies. With Amadeus as a sales agent, the model will enable railways to reach new travellers in new markets.

Currently the model houses full offers of Germany’s Deutsche Bahn (DB), Spain’s RENFE, France’s SNCF (French, available in Central, Eastern and Southern Europe only), Italy’s Trenitalia and select eastern European rail operators, with more expected to join soon.

“Rail travel today is still largely domestic but this will soon change – our merchant model marks the beginning of a new era, giving the industry what it needs to take a global leap, and unlock growth,” said Antoine de Kerviler, global head of rail and ground travel at Amadeus.

This new agreement will enable Deutsche Bahn to “vastly extends its global network.” and the rail operator will “improve the availability of (its) tickets to all travel agencies, particularly those with a wide travel offer,” said Ronn Kostecki, project manager at DB.

Alessandra Bucci, commercial director of long haul passenger division at Trenitalia, added that the Amadeus partnership marks a further step in the company’s “ambitious project of offering (its) customers an integrated travel solution, covering their trip door-to-door in Italy”.

Yotel makes key appointments as it powers ahead with expansion

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Yotel has announced several key appointments at the senior level as it prepares to launch multiple new hotels in Asia, Europe and the US.

In the newly established role of senior vice president of global operations is Belinda Atkins, who will head the company’s global operations including all existing and future Yotel and Yotelair hotels, reporting directly to Hubert Viriot, CEO of YOTEL. She previously held senior positions in the hospitality industry, including brand CEO at Amba Hotels and vice president of brand operations for the Wyndham Hotel Group.

Yotel New York
Yotel New York

Atkins will be assisted by Keir Wingrove, who has been named assistant vice president for openings and transitions to manage and coordinate the pre-opening and transition programme, managing support for all new Yotel hotels under development.

Yotel has also promoted Rohan Thakkar to the role of vice president of development, focusing on the rest of the EMEA region.

The trio will be based at Yotel’s headquarters in London.

Meanwhile, Yotel has also appointed Nikhil Manchharam as managing director of business development for Asia. Based in Singapore, Manchharam will oversee the sourcing of new opportunities and develop the Yotel and Yotelair brand throughout Asia, as well as manage relationships with investment partners in the region. He was most recently vice president of acquisitions and development at Starwood Hotels and Resorts Worldwide.

The tech-centric hotel chain currently has four Yotelair properties – London Heathrow, London Gatwick, Amsterdam Schiphol and Paris Charles de Gaulle Airport – and one Yotel in New York.

In 2017, Yotel will open three city centre hotels in Boston, Singapore and San Francisco, followed in 2018/2019 with London (Clerkenwell), Dubai (Business Bay), Miami, Williamsburg (Brooklyn) and Yotelair Singapore Changi

SIA, SilkAir simplify fare structure

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Singapore Airlines and regional arm SilkAir are set to fold fuel and insurance surcharges into base airfares, simplifying the fare structure for its customers.

Although this will not result in immediate changes to “all-in” fares, with the removal of the surcharges as a separate component, customers will be presented with a single base airfare when purchasing tickets.

Singapore Airlines

The new format will kick in progressively by region from March 28 and is expected to be completed by May 2017. However, codeshare flights operated by other airlines may still include surcharges.

In addition, fuel and insurance surcharges will also no longer apply to KrisFlyer frequent-flyer programme redemption bookings, effective March 23, 2017.

The KrisFlyer programme will also undergo changes the same day, including the removal of a 15 per cent discount for redemption bookings made online. Adjustments are also being made to redemption award charts in the Saver category for selected zones.

U-Fly Alliance aims to spread wings beyond North Asia

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U-Fly Alliance, the first LCC alliance in the world, expects to have 10 members by year-end and has ambitions to expand beyond its North Asian roots into South-east and South Asia in the long term.

Deputy CEO Steven Greenway, interviewed on the sidelines of the Aviation Festival Asia in Singapore recently, said there are lots of small LCCs and full-service carriers (FSCs) that are “waiting and watching” how best they can expand in the future and LCC alliances are part of the game.

U-FLY_Alliance_Steven_Greenway (1)
Steven Greenway

Having done well in their markets, these carriers, typically with a fleet of around 50-60 aircraft, are constrained to break out of their “geographical fix”. The trend of setting up subsidiaries such as what AirAsia has done in Thailand or Jetstar Asia in Singapore has also slowed, while joint ventures can pose the risks of losing their identity and independence.

“We are building everything to be usable around the world, we’re not just a North Asia LCC alliance,” said Greenway.

“There are many airlines out there, even FSCs, with 50 or so aircraft. Few get to above 100 aircraft. If they are around the same size, are like-minded and are confronted by the same challenges, they are a logical fit. Not a carrier who’s lightyears away coming in and telling you how to do it.”

U-Fly, launched in January last year, has five members – HK Express (Hong Kong), Lucky Air (Kunming), Urumqi Air (Urumqi) and West Air (Chongqing). Combined, they have a fleet of 111 aircraft serving over 23 million passengers to 106 destinations and 206 city pairs in North Asia.

The alliance coordinates on behalf of members’ “central projects” across five working streams, namely strategy network, system connectivity, marketing and branding, plus cost synergies and airport operations.

Greenway said a lot of the focus in the past year has been on cost savings, even though U-Fly has also raised incremental revenue for the members through interlining via GDS and soon, B2C promotions on its website.

“A lot of small LCCs never had the opportunity to get cost savings. With 20-30 aircraft, they may have good crewing costs and lease costs on aircraft, but struggle to get to the cost base of the AirAsia’s and Jetstar’s because they don’t have group buy. I probably spend a tenth of the effort to save a dollar (through bargaining power) than raising a dollar by increasing connecting traffic,” he said.

When asked if Value Alliance, another LCC grouping which launched six months after U-Fly, is a competitor, Greenway said: “Value (Alliance) is very much a South-east Asian play, how it pans out on one knows, and there may be a different dynamic there with Tigerair and Scoot being owned by Singapore Airlines.”

Tigerair will also be merged and carry Scoot’s name by year-end. Aside from Scoot, Tigerair Singapore and Tigerair Australia, other Value Alliance members are NokAir, NokScoot, Vanilla Air, Cebu Pacific and Jeju Air.

Greenway said LCC alliances are “very new, each promising slightly different things, and it’s still a short time frame for anyone to get an evaluation of what they are about”.

“It’s very experimental at the moment but that’s better than sitting on the bench doing nothing. We have to prove that the concept is demonstrably productive and beneficial to members. Otherwise we deserve to die,” he said.

Aviary Bintaro hires opening GM

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Indonesia’s Sumampau Hotels and Resorts has appointed Didit Anthony as opening general manager of Aviary Bintaro, a millennial-influenced, new-build hotel and serviced apartment set to open in April.

Anthony brings with him a wealth of hospitality experience spanning airlines, travel agencies and theme parks, and is specialised in sales and marketing, having worked with BW International (BW Hotels, formerly Aston), Prasanthi Hotels & Resorts, AccorHotels and Pan Pacific Hotels Group.

Didit_Anthony

Experiences the new frontier

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Airbnb was the epitome of sharing economy cool when it first started out, but it has lost its founding aspirations as it increasingly turns into a giant accommodation distribution for private landlord empires.

MARCH3_xinyi-Blessing Ceremony
Source: Asian Trails

As Airbnb begins to face stronger regulatory headwinds around the world – with Singapore becoming the latest city to make it illegal to rent out private residences for short-term rentals – it’s hardly surprising that the home-sharing giant is seeking new ways to grow by broadening the range of services it can offer.

Enter Airbnb Trips, which was launched last November to enable locals to offer immersive and authentic guided tours to travellers, which could range from a lesson in ancient pottery in Tokyo to checking out London’s burlesque scene with a showgirl.

Still in its early days, Airbnb Trips is currently a modest service featuring some 500 experiences in 12 cities, including Los Angeles, San Francisco, Miami, Detroit, Havana, London, Paris, Florence, Nairobi, Cape Town, Tokyo and Seoul. The new product is expected to be rolled out to another 39 cities in the near future.

Do tour operators have reason for worry? Not yet, if going by trade feedback (see page 5), and industry members largely welcome the increased competition as they join in the reinvention game.

But Airbnb Trips, like how its accommodation rental arm has demonstrated, could potentially face the same regulatory complications in its quest to be a holistic travel service provider. One foreseeable issue is the special licence requirement for tour guiding in many countries, an area many incumbents in the tour operation space have invested in to stay legal and professional.

And to make this business model profitable, Airbnb will need to scale up its Trips endeavour for millions of tourists to participate. And when that happens, how can Airbnb screen against scams and rip-offs or ensure the safety of guests partaking in riskier activities? More importantly, will it be able to sustain its identity and the social value its service purports to bring?

Airbnb was the epitome of sharing economy cool when it started out, but it has lost its founding aspirations as it increasingly turns into a giant accommodation distribution for private landlord empires. I’m saying that because friends who are Airbnb hosts are typically not renting out an empty room but an idle apartment(s) in their buy-to-let portfolios, while some are even relying on companies to manage their apartments on Airbnb.

Where’s the ‘live like a local’ selling point as touted by Airbnb? I’m attracted to the social promise of the sharing economy, but I’m also disappointed by the non-sharing phenomenon that is becoming more apparent for Airbnb.

But one thing for sure, the quest for enriching and engaging experiences cut across savvy travellers of all ages, so greater competition in the tour operating space may foster the development of a more mature, responsible tourism worldwide.

So will Airbnb Trips live up to its idealistic frame of the sharing economy and revolutionise the travel and tourism industry? The jury’s still out.

This article was first published in TTG Asia March 2017 issue. To read more, please view our digital edition or click here to subscribe.