TTG Asia
Asia/Singapore Wednesday, 31st December 2025
Page 1679

Silver lining around dark clouds

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In an era of unprecedented global integration and growing uncertainty, five industry leaders ponder how technology, proactive measures plus a bit of innovative thinking can make travel safer and seamless. By Raini Hamdi.

 

dec02_ceo_david-topolewskTravelling made easier with tech
David Topolewski
The CEO of mobile learning provider Qooco examines how advances in technology will make travel breezier

We are living in one of the most exciting times to be a traveller. The Internet is uncovering yet unknown places to visit; air travel is growing at one of the fastest rates in history, becoming more affordable and accessible than ever; and mobile apps are allowing us to stay in people’s homes around the world at the fraction of the price of a hotel.

Yet despite this progress, the act of travelling is still associated more with stress than (ease), and with the growth of technology comes complex problems too.

Take for example the recent system glitches and crashes experienced by n United Airlines and British Airways, thanks in part to compatibility issues between old ‘legacy’ systems and newer technology. Cyber attacks on hotels make travellers wary about parting with their personal data (not that they have any choice), and hotel key cards have a knack of not working when you need them to.

Technology can create more complexity, but it can also make life significantly easier and worry-free.

As any traveller will tell you, a delayed or cancelled flight can mean the difference between a dream holiday and hours on end lying on an airport bench, followed by the bureaucratic hell of claiming refunds.

Blockchain technology could potentially take some of the sting away with instant insurance. A company called FlightDelay allows users to receive instant cashback on any delayed flight, circumventing the laborious, time-consuming claims process via airlines. As costs are eliminated, insurance becomes zero sum, allowing customers to keep more of their wealth. While in its early stages and is highly dependent on accurate third-party data, this model could also potentially eliminate the travel insurance market.

Wearable technology will become so advanced that your loved ones will know where you are based on the signals sent from your wearable device. Aside from location, other vital signs such as heart rate and blood sugar levels can also be checked. This will not only allow those who suffer from serious conditions to do more, but placate nervous relatives and friends when their loved one decides to be adventurous.

Landing in a foreign and underdeveloped country, one of the most worrisome moments is deciding how to get from the airport to the hotel, and whether the taxi driver understands you and not rip you off. Driverless cars should put an end to this and GPS technology can take you to any location you wish accurately, efficiently, transparently and safely. With driverless car technology improving, transportation will become automated and efficient.

These are only a few examples of how technology can reduce the stress and worry in travel, among others. There are so many touch points along a traveller’s journey that could cause concern, from immigration to airport transfers. If tech applications can make just some of those points smoother and more efficient, then the world of travel will get even better.
Jetting into safer skies
Conrad Clifford
IATA’s regional vice president, Asia-Pacific affirms that flying, backed by statistics and measures in place, remains one of the safest ways to travel

There are many things we need to worry about in life, but air travel is not one of them.

A look at the industry’s past safety performance will reveal that aircraft accidents are extremely rare. In 2015, there was one major accident for every 3.1 million flights, a 30 per cent improvement from the previous five-year rate of one accident for every 2.2 million flights.

Safety is the top priority for the industry. Although we work hard to prevent any loss of life, accidents do happen. This year we saw accidents involving FlyDubai and EgyptAir. In 2015, the industry experienced four fatal hull loss accidents – all involving turboprop aircraft – with a total of 136 fatalities. This compares positively with the average 17.6 fatal accidents and 504 fatalities per year in the previous five-year period.

One notable point is that the 2015 figures do not include two tragedies – the losses of Germanwings 9525 and Metrojet 9268. Both were deliberate events and were not accidents. Indeed, 2015 is similar to 2014 in this regard. If we look at the 2014/2015, the industry’s safety performance has been affected primarily by events that could be previously classified as almost “unthinkable”.

Our goal is to have zero accidents. As an industry, we have become very good at applying lessons learnt from past accidents via a systematic, well-researched and collaborative process based on global standards and best practices. This has been the industry’s modus operandi for decades and has helped to make aviation the safest form of long-distance travel the world has ever known.

Global standards are vital to sustaining safety improvements. This is shown in the performance of airlines on the IATA Operational Safety Audit (IOSA) registry.In 2015, the total accident rate for IOSA-registered carriers was nearly three times as good as the rate for non-IOSA carriers. When compared over the last five years, the rate is more than three times better.

And we have enhanced the IOSA process by transitioning it from a snapshot of compliance to a continuous management process across the two-year cycle of the audit. Today, there are over 400 airlines around the world that are using IOSA, including 55 from the Asia-Pacific region.

Global standards are also helping to tackle emerging issues. Aircraft tracking came to the forefront in 2014 with the loss of Malaysia Airlines flight 370. Under the International Civil Aviation Organization’s leadership and with input from the industry, a global tracking standard has been established, which will be globally applicable from November 2018. And our capabilities may grow more robust in the near future as space-based technologies mature.

So have a worry-free journey – flying is the safest way to travel, and we are working towards making it even safer!

Smart technology for smarter airports
Ilya Gutlin
President, Asia-Pacific of aviation technology company SITA examines how smart technology can improve both the airport security and passenger experience alike

How can we make travel more secure without making the passenger experience unbearable? How do we stop those who shouldn’t be getting on planes without ruining the journey of the vast majority of innocent travellers? Over the last 15 years we have seen measures introduced which arguably have not delivered the right balance.

But there is an answer. We can get smart. Technology is available so that border security agencies across the world can work smarter and use automation to get passengers processed quickly and securely.

In the face of growing threats, government agencies need to have the very best information and intelligence on travellers as early as possible. Pre-travel authorisation includes advance passenger processing or interactive advance passenger information, which integrates the pre-travel screening process with airline check-in procedures.

This real-time technology allows border authorities to process travellers in advance and prevent unauthorised persons from making their journey in the first place. What this does is essentially pushing the border to the point of departure and in advance of travel. Doing this means that unauthorised travellers are prevented from stepping on a plane.

This concept is not new. Australia has long been a leader in this area and has now introduced interactive exit checks so that unauthorised travellers are prevented from leaving the country.

Two developments which offer the opportunity to check passengers at the border quickly and securely are biometrics and the use of e-passports.
Recent advances have made biometric technology fast and accurate. A trial of SITA biometric gates showed that 92 per cent of eligible travellers had their documents and biometric checks successfully completed with no operator intervention, and we’ve recorded up to 60 per cent decrease in wait times with our automated border control kiosks.

Today, more than 100 countries have implemented e-passports and their use is widespread. Travellers are enthusiastic about using self-service technology. So why not let low-risk passengers process themselves? It is possible to keep passengers moving while freeing border agencies to focus on those posing a greater risk.

This shouldn’t be limited to border checks. A fast, secure and seamless walkthrough experience at every checkpoint at the airport is within reach of passengers today.

For instance, SITA Smart Path allows passengers to move through the airport and board the aircraft simply by presenting themselves for a biometric check. Once verified there is no need for the passenger to present a boarding pass, a passport or travel document again.

This smart technology can be easily integrated into existing airport infrastructure and airline systems, which makes it cost-effective and fast to deploy.

Secure, seamless travel is possible. The world needs to get smarter about using technology to make it happen.

Technology is available so that border security agencies across the world can work smarter and use automation to get passengers processed quickly and securely.

Making meaning of crises and challenges
Laurent Kuenzle
Asian Trails’ group CEO shares the toughest crisis he has ever handled and why people remains at the heart of his DMC operations

We have had to overcome many crises over the past 15 years in Asia, but the most difficult one and which had the biggest impact in all the countries we operate in was SARS in 2003.

The scare was on a massive scale and we faced a situation where all bookings we had in our books to all our destinations were cancelled within days, and no new bookings came in. It affected every segment – leisure, corporate and MICE – and all our source markets. When people fear that they might catch a disease, however remote that possibility actually is, they won’t travel.

In such a situation where no income will be generated for months, the key to survival is of course cash flow. We are in an industry where short-term bank loans are hard to come by and cash is king. The immediate focus in such a crisis is the need to reduce costs to the minimum. For a DMC such as us, it is staff costs that make the bulk of expenses.

Yet we did not want to make our staff redundant, as they are our most important asset. We have always been an employer where, if times are good, we let staff benefit as much as possible; if times are difficult, we will all carry the burden together. We therefore introduced salary cuts (depending on the rank of the staff), encouraged them to take unpaid leave and use the time for further training and education. We also cut the bonus for that year. All our staff understood it was for the overall benefit of everyone and, with the exception of a few, supported us.

On the marketing side we stopped all short-term activities except attending key trade shows. We embarked on an information policy, to provide real facts to our B2B customers to the best of our knowledge even if the press continued to paint a dim future.

It took about six months for business to start coming back. Some source markets took longer to return to Asia. It was a matter of national character to a certain extent, where some markets were just more sensitive to negative news than others.

We reversed our salary cuts as soon as we were able to. And with our staff retention policy, when the tourists returned, we had skilled and experienced staff to look after them and hence guaranteed the quality of our services at all our destinations. A year later we were even able to pay our staff an extraordinary bonus since business recovered faster than expected.

The lessons learnt? Focus on the long term, have a healthy cash flow, treat your staff as well as you can and keep a tight grip on your expenses. Also, mitigate risks by operating in several countries and have a focused but wide source market client base.

Empowering readiness to crisis management
Jennifer Cronin
An essential but often overlooked part of crisis preparedness is incorporating routineness within the crisis plan, says president of Marco Polo Hotels, Hong Kong

As the global village becomes more connected, crises impact a wider group of communities across borders, regions and continents.

Crisis events cover a broad spectrum of political, environmental, technological and health issues from both man-made and natural perspectives; and sadly, hotels are now seen as soft targets by terrorists. These events can quickly gather an uncontrollable momentum on a global platform of communication connectivity.

There has never been a greater need to provide insights and theoretical updates on crisis management in order to prepare societies, organisations and individuals with the tools to deal with a crisis event in the most effective way possible.

Crises are seen as an inevitable part of the travel business today, and, as a consequence, the tourism sector is fast recognising the need for effective crisis and risk management. However, these strategies require leadership to have the foresight and drive to establish a culture of crisis preparedness.

In 2010, after experiencing four years of political turmoil in Thailand, I embarked on a research journey to establish how leadership could prepare better for a crisis event. Taking a three-year sabbatical from a senior hotel management role, I immersed myself in understanding how crisis leadership efficacy is accelerated when institutional memory is formalised. As a result of this empirical study, a Living Manual is posited to address those complacencies and to put in practice the theory developed from the research.

As explained in the findings of the research titled Empowering Readiness – Influencing Crisis Management Success Outcomes, even though many organisations advocate a leadership culture that encourages knowledge-based crisis management preparedness, in reality, the “it won’t happen to us” or “it can’t get that bad” mentality permeates many hotel operations.

However, there is clear evidence that experiential learning embraced by a hotel’s senior management creates a best-practice crisis plan – where incorporating routineness ensures a more competent crisis-ready organisation.

While current literature has provided an extensive road map of tourism crisis management frameworks and studies to follow in the event of a crisis, scant regard has been given to the initial phase of crisis readiness, when senior management dedicates the resources to a systematic crisis planning regime.

The study reinforces the importance of the cognitive strength of crisis experience and the experiential learning gained from participation in crisis phenomena. When applied to crisis plan development, the experiential factor creates a robust 360-degree perspective on addressing the needs of all parties during a possible crisis event in the future.

Moreover, a crisis plan must not be left on the shelf or allowed to gather dust.

Instead, the organisation that has the vision to plan ahead, engage stakeholders and embrace the learned routineness of a crisis plan through simulations and scenario workshops will set the scene for a positive crisis leadership process.

By living and breathing the crisis plan, and using the routineness to build confidence and familiarity, the entire organisation will be in a stronger position than its competitors should a crisis occur.

The routineness derived from experience can be forgotten, especially in an industry like hospitality which is characterised by high staff turnover rates. The learned experience through institutional memory can also be lost. This is why a Living Manual should be given priority by senior management to be incorporated into the organisation’s day-to-day operations, engaging staff at all levels and providing a reliable toolkit in the event of a crisis.

A crisis-ready organisation will stand the test of a high-pressure negative impact better than one that ignores crisis planning at its peril. An informed organisation will be able to meet the crisis event head on with the knowledge and confidence that their crisis leadership capabilities will reduce the negative outcomes and ensure sustained business continuity. The conclusions and implications for the future are not restricted to the hotel sector alone and can also be applied to a wide range of service-related industries.

Organisations cannot ignore the increased power of a company-wide inclusive empowerment programme which provides clear directions and allocates roles and responsibilities. A sense of loyalty to the organisation and its stakeholders, as well as the need to confirm business continuity and therefore job security, also strengthens staff commitment to crisis management objectives and goals. This commitment should be harnessed by empowering staff with the necessary procedures and resources to enact upon their crisis readiness training.

This article was first published in TTG Asia December 2016 issue. To read more, please view our digital edition or click here to subscribe.

Still space for growth in Asia for Nida Rooms, says CEO

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Budget hotel network operator Nida Rooms is seeking funding of US$30 to 40 million to accelerate its expansion plans from the current 4,200 to more than 10,000 hotels in 2017, according to CEO Kaneswaran Avili.

A fresh injection of funds will add to Nida Rooms’ existing capital of US$12 million and support the cash flow of the year-old startup, which earlier ran into liquidity problems and delayed the salary payment of its Indonesia staff, admitted Avili.

However, he stressed that the salary deferment was just a teething problem that had since been solved and would not recur again for the company.

Beyond its four key markets in Indonesia, Malaysia, the Philippines and Thailand, Avili thinks there’s still plenty of room for growth in Asia-Pacific and other regions. There are also plans to penetrate into Latin America in 2018.

Nida Rooms provides a helpful business model for budget hotels without online booking systems, as more than 50 per cent of hotel rooms under its management are located in areas where OTAs have not yet reached, he added.

Avili also stated that the Nida’s affordable rates of less than US$40 per room per night will appeal to users.

Subsidies offered for tours to post-quake Tottori

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Mizuki Shigeru Museum. Courtesy: http://tottrip.jp/data/seibu/3/mizukishigerumuseum.html?lang=en

The Japanese government will provide a subsidy of up to 10,000 yen (US$87) per person for tourists who visit Tottori Prefecture in southern Honshu, in an attempt to lure visitors back after a 6.6-magnitude earthquake struck the coastal city in October.

To qualify for the incentive, tourists will need to visit Tottori between January and March 2017, stay in the prefecture for at least one night and visit one sightseeing spot for tours.

Funds will be provided to travel companies that have or are currently selling Tottori tour packages, with the subsidy deducted from the package cost.

Despite the substantial amount of the incentive, travel operators are unsure if tourists will take the bait to visit Tottori.

“Even before the earthquake, Tottori was not a popular place for travellers because it does not have many attractive sights. It is also a long way from the big cities, which makes it difficult to get to,” said Yoshi Tanaka of Nippon Travel Agency’s Asia Section.

“But the subsidy is a large amount and will help. It is likely that we will launch a sales campaign based on the subsidy,” he added.

While Tottori is “quite distant” from major cities in the country, Naiki Tamaki, head of marketing for Kuoni Japan, believes that anime fans may still be keen to visit the Mizuki Shigeru Museum, which displays the characters that author Mizuki Shigeru created for manga such as Gegege no Kitaro and Akuma-kun.

Chinese visitors lead record tourism surge in Gold Coast

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Gold Coast

Australia’s Gold Coast welcomed a record one million-plus tourists in the 12 months to September 2016, increasing 16.2 per cent from the previous 12-month period, according to the Tourism Research Australia’s International Visitor Survey.

The visitor surge also brought along a record increase in international visitor expenditure, which grew 15 per cent to A$1.3 billion (US$969.5 million), according to Gold Coast Tourism CEO Martin Winter.

International holiday visitors accounted for the bulk of the result (807,000), ahead of those visiting friends and relatives (141,000). The number of international business visitors also grew substantially by 21.9 per cent to 34,000.

China accounted for the largest number of international visitors, increasing by 38.4 per cent to 295,000 people, ahead of New Zealand (195,000), the UK (70,000), Japan (56,000) and the US (38,000).

“Chinese visitors to the Gold Coast accounted for 27 per cent of all visitors to Australia and remains the number one destination for this market in Queensland,” Winter said.

He added that large incentives such as Infinitus China, which will send more than 8,000 delegates to Gold Coast in May 2018, is expected to generate more than A$50 million for the city.

Pandaw deploys new ship to Borneo

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Kapuas Pandaw

Luxury river cruise expedition Pandaw has recently acquired a new ship, the Kapuas Pandaw, which will be deployed on its new West Kalimantan, Borneo itinerary starting in February 2017.

Originally christened the L’Amant, this 12-cabin river ship was built in Saigon in 2006 and was plying the Mekong Delta offering deluxe cruises before being bought over by Pandaw.

Sailing on board the Kapuas Pandaw, the one-week full-board expedition will cover the upper part of Indonesia’s Kapuas River system between Sanggau and Lanjak, a voyage of over 500km passing through ancient rainforest and mountain ranges.

Prices start at US$2,327 per person for seven nights, based on a twin-share main deck stateroom.

Vietjet inks MoU with Air India; commences Hai Phong-Seoul flights

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(From left) Air India’s Pankaj Srivastava and Vietjet’s Dinh Viet Phuong signing the MoU in New Delhi on December 10

Vietjet and Air India have entered into a MoU to cooperate on air services between Vietnam and India, which will see both airlines joining forces to commence direct flights between the two countries, with the first planned route connecting Ho Chi Minh City and New Delhi.

The partnership will also see both airlines working together to expand the capability of sales distribution, and implement tourism and trade promotions.

“We hope that Air India’s aviation experience and capabilities will help Vietjet better access India – a potential market with a young and dynamic population of more than 1.2 billion people,” said Vietjet’s vice president Dinh Viet Phuong.

As well, Vietjet welcomed passengers onto its debut flight between Hai Phong and Seoul on December 12.

The route will operate every Monday, Wednesday, Thursday and Sunday and depart Hai Phong’s Cat Bi International Airport at 11.45 and land at Seoul’s Incheon International Airport at 06.00. The return flight will take off at 07.15 and arrive back at Hai Phong at 10.40. All times are local and flight time per sector is approximately five hours.

Second Artyzen in China’s ‘architecture wonderland’

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Artyzen Hospitality Group (AHG) has signed a second Artyzen Hotel in China in the Sifang Collective, 30 minutes from Nanjing, a site known as an ‘architecture wonderland’.

The Sifang Collective complex, situated in a preserved forest, showcases the collaborative work of more than 20 world-renowned architects, including Ai Weiwei and the first Chinese winner of the Pritzker Prize Wang Shu, who have designed a variety of functional spaces and art exhibition venues over the course of 10 years.

The 200-room Artyzen Sifang Nanjing will be set amid the Sifang Art Museum, which when combined with the conference centre and events space, are ideal for hosting product launches, fashion shows, film shoots, wedding receptions, AGMs or large corporate events, the company said in a statement.

The conference centre, designed by Irata Isozaki, includes a gallery space, various conference halls and auditoriums, and a selection of the museum’s permanent art collection, allowing visitors and business travellers to hold meetings and events while being immersed in a total artistic experience.

Allan Yip, AHG vice president of marketing, distribution and brands, said: “We look forward to welcoming guests to this one-of-a-kind destination at the end of next year.”

This will be the second Artyzen after the Artyzen Habitat Hotel which opened early this year in Shanghai’s Lingang New City.

AHG is a subsidiary of Hong Kong-listed conglomerate Shun Tak Holdings whose portfolio also comprises Zitan and citizenM.

Airline profitability faces stronger headwinds in 2017: IATA

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aeroplane-flying

Owing to higher fuel costs and a slowing global economy, IATA is forecasting the global airline industry to post a net profit of US$29.8 billion in 2017, lower than the cyclical peak of US$35.6 million expected for 2016.

This will translate to a 4.1 per cent net margin based on an expected total revenue of US$736 billion, breaking a three-year run in which the world’s airlines have posted record profits year-over-year.

Meanwhile, IATA has also trimmed its 2016 profitability outlook to US$35.6 billion from US$39.4 billion projected in June, due to slower global GDP growth and rising costs. This will still give the industry its highest absolute profit generated and highest net profit margin (5.1 per cent).

Alexandre de Juniac, IATA’s director general and CEO, said: “For most other businesses, this would be considered a normal level of return to investors. But three years of sustainable profits is a first for the airline industry. And after many years of hard work in restructuring and re-engineering the business the industry is also more resilient.

IATA projects that North America will chalk up the strongest performance, with net post-tax profits to reach US$20.3 billion in 2016 and US$18.1 billion next year.

Net profit in Asia-Pacific is expected to be the second highest at US$6.3 billion in 2017 (down from US$7.3 billion projected in 2016) for a net margin of 2.9 per cent.

This is followed by Europe (US$5.6 billion; down from US$7.5 billion); the Middle East (US$300 million; down from US$900 million) and Latin America (US$200 million; down from US$300 million). The worst financial performance is expected from African carriers, with a net loss of US$800 million, broadly unchanged from 2016.

The demand stimulus from lower oil prices will taper off in 2017, slowing traffic growth to 5.1 per cent (from 5.9% in 2016). And although capacity expansion is expected to slow to 5.6 per cent (from 6.2 per cent in 2016), capacity growth will still outpace the increase in demand, thus lowering the global passenger load factor to 79.8 per cent (from 80.2 per cent in 2016).

Still, the negative impact of a lower load factor is expected to be offset by a higher world GDP by 2.5 per cent in 2017 (up from 2.2 per cent in 2016). Along with structural changes in the industry, this is expected to help stabilise yields, which have fallen each year since 2012 in dollar terms.

HCMC to welcome Okura Prestige in 2020

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The Okura Prestige Saigon

Hotel Okura has joined hands with the Saigon Trading Group (SATRA) to roll out The Okura Prestige Saigon in Ho Chi Minh City in 2020, its first Okura Prestige property in Vietnam and third in the country managed by subsidiary Okura Nikko Hotel Management.

The hotel will be part of SATRA Tax Plaza, a 40-storey, multipurpose commercial complex under construction on the site of the former Saigon Tax Trade Center in District 1.

Facilities will include 250 guest rooms, Japanese restaurants, all-day dining, rooftop bar, multipurpose banquet/meeting rooms, gymnasium and outdoor pool.

Hotel Okura’s president Toshihiro Ogita said: “We are focusing on hotel development in Vietnam because of its stable and highly promising GDP growth rate, which is averaging 6.5 per cent annually, and its affluent and youthful population (under 30), which accounts for half the nation’s population.”

Okura Nikko Hotel Management, which operates Okura Hotels & Resorts, Nikko Hotels International and Hotel JAL City, has plans to expand its global portfolio to 100 properties, primarily in Asia, by 2020.

Coming up next in the region are Hotel Nikko Bangkok in 2018, and The Hotel Okura Manila Bayshore and The Okura Prestige Phnom Penh in 2019.

New tourism plans shine light on Mindanao’s overlooked sites

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Santa Cruz Island, Zamboanga in Mindanao, Philippines. Photo credit: Rommel Natanauan, Department of Tourism

Mindanao will finally see greater attention given to its tourism development, after years of being sidelined by the more prominent Visayas and Luzon in the Philippines amid security concerns.

“The time has come for Mindanao, especially (undiscovered gems) like Zamboanga,” said assistant tourism secretary Frederic Alegre, who disclosed that more funds will be set aside for infrastructure improvement as well as marketing and promotions.

Alegre added that Santa Cruz Island – 20 minutes by boat from Zamboanga City and with a bigger land area than Boracay – will also be highlighted as a new destination.

While peace and order remains a concern in some areas, it shouldn’t get in the way of efforts to improve the destination, he added.

Butch Blanco, newly appointed tourism director of Region IX in western Mindanao, has plans to launch a beautification and restoration project for Zamboanga – known for its confluence of Spanish, American and Islamic cultural heritage – promote community-based ecotourism and restore the 18-hole Zamboanga Golf and Country Club, the country’s oldest.

The renewed focus on Mindanao brings long-awaited relief to tourism players in the destination, with Errold Lim Bayona, president of the Tour Guides Association of Zamboanga, dubbing the move as “a major development in more than a decade”.

Jerome dela Fuente, general manager of Limketkai Luxe Hotel in Cagayan de Oro, added: “There are many tourism opportunities in this sleeping giant. Zamboanga and other destinations can complement those already on Mindanao’s tourism map including Davao, Siargao and Cagayan de Oro.”