The Association of Asia Pacific Airlines (AAPA) has called on government agencies to remove regulatory barriers that threaten the growth of the air transport industry.

At the conclusion of its 60th assembly of presidents held in Manila last week, the AAPA presented six resolutions, including appealing governments “to respect the primacy of ICAO (International Civil Aviation Organization) standards and guidance”.

Director general Andrew Herdman said the AAPA is “deeply concerned about safety oversight in the region, where carriers can sometimes find themselves subject to restrictions or even banned from operating to other countries, due to a lack of effective national regulatory oversight in line with accepted international standards”.

To avoid passenger inconvenience and delays caused by “increasingly complex, intrusive, onerous and inconsistent aviation security procedures”, the AAPA also asked governments to rethink policies that will “strike a more reasonable balance between passenger facilitation and aviation security”.

As past pleas have remained unheeded, the AAPA has now renewed calls for governments to refrain from increasing the tax burden in any form.

“Governments continue to misjudge the strength and negative sentiment held by Asian airline leaders about the unnecessary burden of misguided policies and unjustified taxation,” he added.

Philippine Airlines president Jaime Bautista laments: “Airport slot and infrastructure shortages; onerous taxes and charges; burdensome and needlessly complex regulations; red tape that produces red ink; the quest for effective ways to protect the earth; and the call for a more connected world (are challenges we already face everyday).”

Herdman believes that removing barriers to industry growth and profitability is ultimately beneficial to the growth of the nation’s economy as well, and that it is critical for governments to recognise that.

Daryl Lee

Australia’s Webjet has launched FIT Ruums, a wholesale travel distributor operating under its WebBeds FZ division, to offer an array of travel services, such as hotel rooms and transfers, to the Asian travel trade.

Daryl Lee, the newly-appointed director of WebBeds FZ, said: “The rising affluence of Asian countries is driving a new travelling class – a shift away from groups and towards FIT.”

This means requiring a different set of distribution tools to better cater to this segment of customers. “The consumer buying behavior varies by market and different people like to book travel through different mediums which means a fragmented distribution landscape that requires good aggregators to support for sustainable growth,” he explained.

Lee adds that he isn’t too worried about being a newcomer to the scene, as he believes the travel supply chain is welcoming of distribution diversification to mitigate sales risk.

When asked why they are entering the market now, he said: “Asia-Pacific is the second biggest source market in the world and we have seen a strong transition from group travel to FIT in recent years.

“Therefore, the market requires a lot more support and will benefit from a true pan-Asian specialist which the market lacks today.”

FIT Ruums, based in Singapore, has plans to expand across the region. Satellite offices are already open in Hong Kong, South Korea and Taiwan with additional locations in Japan, Thailand, India and Indonesia being planned to open in 2017.

Future expansion into the Philippines, Vietnam and Malaysia is currently being considered.

Two founding members of the Value Alliance – Vanilla Air under ANA Holdings, and Cebu Pacific – are now equal (15% each) shareholders alongside Scoot and Nok Airlines of Air Black Box (ABB) Asia Pacific, the joint venture responsible for making the Value Alliance a reality.

The remaining equity is held by ABB’s majority investor VaultPAD Ventures, a US-based private airline travel and tourism venture accelerator.

With more alliance members now also shareholders of ABB Asia Pacific, this signals a continued desire and foothold by the LCCs to retain and gain further control over their sales and distribution capabilities.

The Value Alliance, comprising budget carriers Cebu Pacific, Jeju Air, Nok Air, NokScoot, Scoot, Tigerair Singapore, Tigerair Australia and Vanilla Air, formed the partnership earlier in May to enable direct interline ticket and ancillary sales among member airlines in one booking, a feat made possible using ABB’s platform.

The distribution solution provided by ABB, the world’s first multi-carrier interlining and booking system, remains the only cloud-based tool capable of doing so and the company has a patent pending for the technology they developed.

Immediate reactions to the formation of the LCC-only alliance were huge, with many questioning the relevancy of more traditional distribution channels such as GDSs.

But Mildred Cheong, general manager of ABB Asia Pacific assures that there will always be a market for the personalised services that travel agents provide. What the Value Alliance offers is an enhancement of the direct sales capabilities of LCCs.

To that end, the alliance is more of a competition for OTAs as its membership grows, and plans for expansion are already in the works, revealed Cheong.

“We are in talks with some airlines at the moment, and while I can’t reveal who they are, you can see where the alliance’s coverage lacks right now geographically,” she said, adding that markets like China, India, Vietnam and Indonesia are prime targets.

She adds that beyond just an increment in alliance members, the technology that ABB provides also allows for expansion in terms of bilateral interline partnerships.

As an example, this could mean Scoot being able to allow interline transactions with a full-service carrier from Europe, that doesn’t belong to the Value Alliance, from its own website.

The benefits of interlining, as opposed to joint ventures or codeshares, is the ability for airlines to be able to cross-merchandise their products without compromising on their brand integrity, asserts Cheong.

She adds that when the technology of all current eight members of the Value Alliance is fully integrated with the ABB platform in 1Q2017, a major push by the LCCs can be expected to happen.

Three months after its launch, GuestReady, an operator for private homes, has gotten a new round of funding amounting US$750,000 from investors Senn & Partner Holding, former Airbnb director Georg Bauser and Swiss Founders Fund (SFF), who acted as the lead investor.

“The majority of the funds will be allocated to filling vacant positions in our primary markets, as well as bringing our tech platform to the next level,” said Alexander Limpert, co-founder and CEO of London-based GuestReady.

The startup, which began operations in August, currently has offices in London, Singapore, Hong Kong, Paris, Kuala Lumpur and Amsterdam, and has plans to roll into more markets soon.

GuestReady provides property management services for investors, homeowners and sharing economy accommodation hosts. Services include listing creation, guest communication, housekeeping, laundry, key management and yield optimisation, among others.

Homeowners and hosts can choose to engage GuestReady for a full-service Airbnb management package or pick from standalone services individually.

Qifeng Ning of Wanda will be part of the delegation

A delegation of travel industry leaders from China is set to make their way to Sri Lanka later this month as the South Asian nation seeks interest from foreign investors to build up its tourism attractions and infrastructure.

Facilitated by the Centre of Asia Hotel Forum, the delegation comprises the likes of Haibo Bai, chairman and president of HNA Hospitality Group; Yun Cai, secretary-general of China Real Estate Association Commercial & Tourism Estate Committee; Qifeng Ning, senior vice president of Wanda Commercial Properties; and many others.

During their seven-day trip, they will be introduced to Sri Lanka’s themed tourism development zones as well as attend the inaugural Asia Hotel and Tourism Investment Conference (AHTIC), taking place from November 27-29 at the Hilton Colombo, and organised by Bench Events and the Sri Lanka Tourism Club.

At AHTIC, the Chinese delegates will also meet with the Sri Lankan president, prime minister and minister of tourism for further discussions.

Sri Lanka Tourism Club chairman Prabath Ukwatte said: “We will be working with government ministries to deliver themed international tourism and family entertainment zones, and to open them up for foreign investment. The conference will be an ideal opportunity to explain what we will be doing and to attract international finance.”

Besides the Chinese delegation, AHTIC will also be hosting international leaders of the hospitality industry to Sri Lanka to take part in three days of high-level discussions, forums, speeches and networking sessions.

A study conducted by medical and security specialists International SOS and Control Risks indicated that 72 per cent of over 1,000 corporate travel decision-makers perceive travel risk to have increased this year.

Despite the rise in perceived risk in travel, 44 per cent reported an increase in business travel activity in 2016 and more than 50 per cent expect further increase in 2017.

“Events of 2016 have resulted in a sense of increasing challenges in travel to places once thought secure. While risks are changing, organisations must ensure their actions to mitigate those changes are proportionate, and based on reality and not perception,” said Rob Walker, security specialist at International SOS and Control Risks.

“Issues like healthcare provision and road safety, which account for over 70 per cent of the assistance services we have provided in the past year, can often be obscured by more prominent, but less likely issues. With many organisations increasing their business travel activity, it is essential for decision-makers to be able to communicate that objective advice to their people, including in an actual crisis.”

The report further revealed that 80 per cent of organisations surveyed have modified their travel itineraries in the past year due to health and security concerns.

Meanwhile, 48 per cent of respondents state that their investment in travel risk mitigation has increased over the past year, and 47 per cent believe this will increase further in the coming year.

“Travellers are much less likely to encounter unexpected or avoidable problems if they plan ahead. Using objective advice to prepare travellers, and by staying up to date on any changes and how they might affect plans, will further reduce, both the likelihood of people experiencing problems, and the extent of the impact,” added Walker.