TTG Asia
Asia/Singapore Friday, 1st May 2026
Page 1668

TUI takes contrarian strategy to China

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Rather than jumping headlong into the huge China market, Germany’s TUI Group is taking the contrarian approach, going for slow but steady growth in a three-pronged policy which its CEO Fritz Joussen revealed to TTG Asia in a one-on-one interview at ITB China yesterday.

“One of the issues with China is that it is so big. Therefore it is risky to build your brand too rapidly, plus you will need to spend millions of dollars to do so. That’s not what we want. We want to build a direct relationship with satisfied customers,” he said.

TUI China, which since 2011 has an outbound travel licence, has recently inked a partnership with Viking Cruises, which operates over 62 river cruise ships, to target China outbound market. Joussen foresees TUI’s role in handling the sales and visas, etc, will enable its expansion of the China outbound pie. “We believe cruises, particularly river cruises, is a big segment today for Chinese clients. We can dedicate full ships to them to sail, say, up and down the Rhine River where they can experience sights and culture while also feeling at home in a dedicated ship,” said Joussen.


Joussen: building direct relationship with satisfied customers

TUI China, whose joint venture partner is CTS, is only one of three foreign companies with an outbound travel licence, the other two being JTB and American Express. CTS owns the largest travel agency network in China with about 350 outlets.

Secondly, TUI Group has bought an equity in Dusseldorf-based Peakwork, a digital leisure travel solutions firm, which it aims to use as a means to develop dynamic packaging with Chinese partners. “We believe over time the integrated holiday experience, combined with individual demand, will come to China as the market matures. For that, you need software that can do dynamic packaging, and B2C, B2B and B2B2C (reach),” he said, adding the Chinese travel market is far more digitally-driven than the German market.

Thirdly, Joussen views China as the backyard market for South-east Asia, the way the US market is for the Caribbean and fills up all of TUI Group’s hotels in the Caribbean. TUI Group is therefore identifying new destinations in South-east Asia for hotel development while working with China partners such as Alibaba’s subsidiary Fliggy to inspire Chinese travellers to book holidays with TUI across the globe with a focus on South-east Asia, as well as its new hotels in the Maldives.

“A third of our guests in our hotels in the Maldives are Chinese guests,” said Joussen. “We thought, let’s build more hotels in South-east Asia, the Maldives, Sri Lanka and Mauritius. We’re looking into Thailand, Indonesia (Bali), Vietnam and so on.” TUI Group operates two resort brands, RIU and Robinson Club.

TUI Group now has more than 300 hotels in operation and is planning to open around 10-12 new hotels per year worldwide. It owns or manages the hotels, and is also investing in its own cruise ships (13 in operation now).

Since becoming TUI Group CEO in 2012, Joussen has been repositioning the company from a tour operator to a tourism player.

“For the first time last year, we made more profit from hotels and cruises than from tour operating. It was also the highest-ever profit we had ever made, more than half of it from hotels and cruises, less from tour operating,” he said.

Singapore tourism stars get recognition

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Thirty-one individuals and organisations were recognised at the Singapore Tourism Awards 2017 last week for their exceptional achievements in delivering experience and enterprise excellence. Organised by the Singapore Tourism Board (STB), the Singapore Tourism Awards presentation ceremony at Shangri-La Hotel was graced by Minister S Iswaran, Minister for Trade and Industry (Industry).


Award winners with STB’s Lionel Yeo (leftmost) and Singapore Ministry for Trade and Industry (Industry)’s S Iswaran (fourth from left)

Among the individuals and organisations conferred top honours under the Top Awards and Special Recognition award categories were Janet Tan-Collis, president, Singapore Association of Convention and Exhibition Organisers and Suppliers (SACEOS) for the Lifetime Achievement for Outstanding Contribution to Tourism award; Michelin Guide Singapore, represented by Robert Parker Wine Advocate and Michelin Asia Pacific, for the Breakthrough Contribution to Tourism award; The Lo & Behold Group’s managing partner Wee Teng Wen and co-founder Daniel He for the Outstanding Tourism Entrepreneur award; and Select Group founder and managing director Vincent Tan for the Special Recognition award for his outstanding contributions in enhancing the vibrancy of Chinatown through festival light-ups and innovative dining concepts.

Besides the Top Awards and Special Recognition recipients, 25 other individuals and organisations were also honoured for their exemplary delivery of experience and enterprise excellence across the three award categories of Customer Service, Experience Excellence and Enterprise Excellence.

Jetstar, Indonesia ink MoU on tourism promotion

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Indonesia’s Ministry of Tourism and the Jetstar Group has signed an MoU to deepen cooperation on tourism and promote growth in international tourism to Indonesia.

The MoU is expected to help Indonesia reach its target of attracting 15 million international arrivals this year and 20 million arrivals in 2019, as the government looks to add four million seats in 2017 and an additional 10.5 million seats by 2019.

Indonesian minister of tourism Arief Yahya said: “With up to 80 per cent of international tourists arriving into Indonesia by air, the role that airlines like the Jetstar Group plays will be critical in enabling the Indonesian Government achieve its 2017 and 2019’s tourism targets.”


Jetstar Asia’s Bara Pasupathi, Jetstar Airways’ Dean Salter, and Indonesian Ministry of Tourism’s Ukus Kuswara and Arief Yahya

The partnership will see more services to Indonesia’s main tourism destinations and joint marketing and promotional activities in Australia and Asia Pacific.

Operating more than 120 return flights a week to Indonesia, Australian-based Jetstar Airways and Singapore-based Jetstar Asia carry 1.4 million passengers annually to and from six first- and second-tier cities in Indonesia.

Singapore-based Jetstar Asia operates more than 60 return flights a week from Singapore to six of the busiest metro cities in Indonesia – Denpasar, Jakarta, Medan-Kuanalamu, Surabaya, Pekanbaru and Palembang. It is also the only Singapore-based LCC to serve both Sumatra and Java.

TTG Asia wishes you a happy Vesak Day

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TTG Asia will be taking a break for the public holiday tomorrow.

News will resume on May 11, 2017.

Here’s wishing all our readers a happy Vesak Day!

Montano gives cue for movie tourism in Philippines

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Philippine Tourism Promotions Board’s (TPB) COO Cesar Montano, who is also a movie actor and director, is batting for movie tourism in the Philippines, a move welcome by the travel trade although with some reservations.

Montano said that Luzon, including Subic, will be promoted as a centre for film production. Bataan province has agreed to a 100 per cent tax holiday and he’s currently in talks with other provinces.


Montano: current incentives ineffective

He added that his Hollywood connections will come in handy when approaching foreign film-makers, including those in India and South Korea.

The Department of Tourism’s (DoT) current incentives are “not effective”, said Montano, urging the destination to match Thailand’s 30 per cent tax incentive or present an even better offer to filmmakers.

While welcoming Montano’s initiatives, Rajah Tours president Jojo Clemente said: “With regards to tax holidays, that is easier said than done. The government, especially the Bureau of Internal Revenue and the Department of Finance, is very selective as to which industry they give tax incentives to and that is one of the primary things Montano has to take care of.”

For Afro Asian Travel president and managing director Angel Ramos Bognot, sustainable movie tourism is a niche market that will not bring in the numbers.

However, films could provide a great exposure to the Philippines, provided guidelines on script, filming and editing are in place, she opined.

Bognot cited the example of the Miss Universe pageant held in Manila in January, when the host country was “so overwhelmed but forgot the details” resulting in poor shots and a missed opportunity to showcase the destination.

She said a partner, Terence Cardoz, CEO of Divine Holidays Management, is waiting to launch film tourism packages once Montano is ready with his initiatives.

Majestic Princess readies for inaugural Asian sailings

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Princess Cruises’ star vessel, the Majestic Princess, will embark on the 49-day Silk Road Sea Route come May 21, sailing from Rome to Shanghai, its new homeport in China where it will begin its Asian programmes on July 11.

Cherry Wang, Princess Cruises general manager and vice president, China, believes that the 3,560-guest Majestic Princess will offer the ultimate cruise vacation for Chinese travellers with its extensive facilities, including the largest collection of retail shops among all Princess ships, and restaurants helmed by two Michelin-star chefs and stocked with wines from Yao Family Wines, a Napa Valley wine company owned by retired Chinese NBA star Yao Ming.


Majestic Princess

“Tailored specifically for the China market, Majestic Princess will expand its China-based season with new itineraries, plus extended-length options and new ports to explore,” Wang told TTG Asia.

Princess Cruises has also been investing its operations in China.

Arnold Donald, president and CEO of Carnival Corp, the mother company of Princess Cruises, said: “Princess Cruises has placed China foremost in the company’s deployment plans due to the market’s burgeoning economy and increasingly discerning travelers seeking a premium cruise vacation. I’m confident that China will rank among the largest source regions for cruises and Princess will continue to grow in this prosperous market.”

To better serve China’s savviest travellers, Princess Cruises runs the Master Council Program that calls upon a group of Chinese celebrities to work with the company to obtain insights on how to best deliver tailored luxury experiences for Chinese passengers.

According to Wang, Princess Cruises has established three homeports in China – Shanghai, Tianjin, and Xiamen – since entering the market in 2013. In 2016, the number of Chinese cruisers with the Princess Cruises brand had leapt by 131 per cent, and the company expects to see a 59 per cent growth in the market this year.

To catch Gen Zs, Le Pirate seeks new lands for its beach clubs

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With already a trio of clubs open in Greater Bali – Nusa Ceningan, Gili Trawangan and Labuan Bajo – Indonesia beach club operator Le Pirate now has its sights cast on adding 20 new properties in the country and throughout Asia by 2020.

The brainchild of father-and-son team Fredo (of Ku De Ta fame) and Louka Taffin, Le Pirate has teamed up with Bill Barnett, founder of Phuket-based property consulting firm C9 Hotelworks, to grow the poshtel model beyond Indonesian shores to appeal to the millennial and Gen-Z travellers.


From left: Le Pirate’s Fredo Taffin and Louka Taffin; and C9 Hotelworks’ Bill Barnett

According to C9 Hotelworks’ most recent South-east Asia Hotel Market Trends Report, Indonesia’s inventory of poshtels skyrocketed last year with a 73 per cent year-on-year rise.

Barnett elaborated: “We are seeing poshtels across the archipelago shift outside of areas like Bali into more emerging locations like the Gilis, Flores, Rajah Ampat, and even cultural destinations like Malang. Our data shows just under 200 poshtel-type properties already operating in the country.”

Internationally, the development pipeline is focused on the Philippines, Sri Lanka and Myanmar. With Le Pirate International established in Singapore, the team is working on pushing out licensing and branding models, and engaging developers who want to enter the hotel business.

The social beach club and hotel brand also wants to make a shift towards floating beach club cruisers with its Explorer Cruises, a fleet of overnight island hopping boats.

“We wanted to take one of Indonesia’s key attributes – the spectacular ocean and numerous islands – and make them more accessible in a fun, authentic and natural way,” said Louka.

International hotel investments still blooming in Myanmar

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While tourism growth in Myanmar has slowed since its initial hype, prospects continue to be bright as international hotel brands mushroom in the country, says Myanmar Tourism Marketing (MTM).

Su Su Tin, vice chairman at MTM, said: “There has been a surge in hotel investments by international brands in Myanmar since 2015 as the country holds the most potential tourist destination untapped in the region.”


Yangon

According to the World Travel and Tourism Council, Myanmar’s tourism sector created 1.4 million jobs in 2015, with a growth of 1.3 per cent estimated for 2016.

Since the new Myanmar government took over, 144 hotels have received their licence, according to MTM.

This September, South Korea’s Lotte Hotels will open it first outpost in Myanmar next to Inya Lake in Yangon, featuring 343 guestrooms and 315 serviced apartments.

Other hotels set to open this year include Hotel G Yangon by GCP Hospitality, which already owns the Strand Hotel in downtown Yangon; the 74-room Yangon Excelsior Hotel, a five-star hotel repurposed from a heritage building downtown; while Pan Pacific Hotels Group will debut in Myanmar with a hotel next to the Bogyoke Aung San Market.

AccorHotels Group is another company that has demonstrated investor confidence in Myanmar’s tourism market, with plans to open five new properties in the country by 2019.

Later this year, they will open a Pullman Hotel in Mandalay at the new Mingalar Mandalay complex, while another Pullman hotel is expected to open in Yangon in 2019.

The French hospitality group is also planning to open two new hotels in Shan State – one a new branch of the MGallery chain at Inle Lake this year, and the other, an Ibis Styles hotel in Muse, a major trade point near the Chinese border, next year.

AccorHotels also recently signed a contract with SC Capital Partners Group to rebrand the Micasa Hotel Apartments Yangon as Mercure Yangon Kaba Aye, near the Shwedagon Pagoda, offering 143 apartments and 40 deluxe rooms.

Su concluded: “We welcome quality hotel investments across the country to provide international standard accommodation and service. We also welcome healthy competitions in hotel industry to avoid overpricing due to shortage of hotel supply like in 2013-14.”

Scoot-Tigerair tickets now on Sabre

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Sabre Corporation has announced a new global distribution partnership with Scoot-Tigerair, bringing the carrier’s fares and ancillary offerings to travel agents worldwide.


Narayan (left) with Sabre’s Trevor Spinks

With this deal, Scoot-Tigerair is now able to connect to 425,000 travel agents globally through the Sabre Travel Marketplace from this month.

“LCCs are the biggest growth drivers in the region. This trend is likely to continue as countries in the region experience rising incomes and a propensity for short- to mid-haul travel,” said Rakesh Narayanan, vice president of Supplier Commerce, Sabre Travel Network Asia Pacific.

Bid for these deals and support Thai hotel talent

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The non-profit Phuket Hotels Association is holding an online silent auction featuring spectacular prizes donated by its island members, the proceeds of which will go into a scholarship fund aimed at developing Thai hotel talent and ultimately creating Thai hotel general managers and senior executives.

On May 13, it is organising a fund-raising event on the island but individuals across the globe can now participate by bidding for the prizes, which range from ultra villas in Phuket, hotel stays in posh properties in London, Toyko Sydney, Beijing, Shanghai, Hong Kong, Miami Beach, Hollywood, Melbourne and Niseko, etc. Two great examples of offers are a hotel stay at The Savoy in London and an seven-night multi-property adventure. The auction will close on May 12.

Today with over 60 of the islands hotels as members and headed to the magic number of 100, we have launched our education initiative. Our mission is paying it forward and reinvesting in Phuket’s most important asset, its human capital,” said Bill Barnett, managing director of C9 Hotelworks. “This is a great cause. As hoteliers too often we forget to put back into our industry. Now is the chance for change. Get online now and start bidding as the site closes on May 12.

To see the event auction items: https://phab.phukethotelsassociation.com/silent-auction/

To know more about the Phuket Hotels Association: https://www.phukethotelsassociation.com/