TTG Asia
Asia/Singapore Thursday, 29th January 2026
Page 1724

China overtakes Indonesia as Singapore’s largest source market

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Tourists admire the view of Marina Bay Sands 

Arrivals to Singapore rose 12.5 per cent in 1H2016 over the same period in 2015, according to latest figures from the Singapore Tourism Board (STB), and of the resulting 8.2 million visitors, the majority came from Indonesia (1.4 million, up 7.3 per cent) and China (1.5 million, up 55.2 per cent).

This signals a change in source market potential for Singapore, with China quickly overtaking Indonesia as the chart-topper.

Low See Peng, regional director, Greater China, STB said: “This strong performance could be attributed to Chinese residents’ increased propensity to travel and STB’s increased efforts to market Singapore in Tier 1 and Tier 2 cities since June 2015.”

Low added that the increased flights from cities like Guangzhou, Chengdu and Chongqing were important contributors as well.

Daniel Goh, manager of Siam Express, said: “(China) will be a strong performing market in 2017 because of the strengthening Chinese yuan.”

However, inbound agents here are bracing for slower business from other markets in 2017, due to economic uncertainties.

Judy Lum, senior vice president sales & marketing international market at Tour East Singapore, said failing industries and rising unemployment as well as the “effects of Brexit setting in” will “affect (UK) holidaymakers’ decisions”.

GTMC Travel’s CEO Samson Tan urged Singapore to “create more niche tourism products, step up (courtship of) untapped central Asian markets and do more roadshows” to combat 2017’s expected slowdown.

Personal touch of agents irreplaceable in digital world

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Lisa Fitzell

Travel agents that are able to cater to the ever-evolving needs of their customers and offer specialised, integrated online and offline services, will continue to be well sought after despite growing competition.

They first need to recognise their need as subject matter experts rather than a sales channel, said members of the trade interviewed by TTG Asia, so that they don’t compete in the same space as OTAs or metasearchers.

“Reservations by travel agents account for over two-thirds of all SLH (Small Luxury Hotels of the World) bookings,” said Mark Wong, the group’s vice president Asia Pacific.

“Many of our luxury resorts and country houses are not located at point-to-point destinations. Therefore, our guests need more assistance with planning.”

Wong attributes the value of agents to their luxury clientele who are mostly “cash-rich, but time-poor”. “Trusted travel agents provide a one-stop service that will assure customers of hassle-free trip planning and experienced travel advice, pre- and post-trip,” he explained.

According to an Amadeus study released last week, traditional travel agents still account for a large proportion of global travel sales. For instance, 80 per cent of Chinese travellers booked via an offline agent last year, stated the Chinese Outbound Tourism Research Institute.

The report added that successful travel agencies have a virtual presence to help customers discover them. Personalised, expert service by consultants should then follow, providing a human touch and sealing the deal. The success of such a hybrid approach is also evident in some OTAs opening call-centres and brick-and-mortar stores.

In the study, Claude Blanc, CEO of Travel & Co, surmised: “We work on a research online, purchase offline model. We have websites and a limited social media presence, but most customers like to talk to our experts via the call-centres.”

Dynasty Travel is one agency forging ahead with a hybrid approach. They had in July this year launched a Mobile Concierge service where agents travelled to meet clients at a venue of their choosing. This marks the first time a full-service agency is offering this in Singapore, said spokesperson Alicia Seah.

Using technology to aid the know-how of agents is favoured by DMC Diethelm Travel as well. Managing director Lisa Fitzell said they are “developing technologies to reinvent our business”, such as APIs that connect directly to their agents’ systems.

“Technology has changed the landscape of travel… but DMCs create packages – we design itineraries that create amazing memories that can’t be purchased online,” she commented.

Moreover, Vijay Sharma, country director Singapore & Malaysia of Club Med, which works through a “big network of agents”, highlighted the need for travel agents especially in the luxury and family segments. He said: “Travel agents are a strategic priority for Club Med due to their customer reach and ability to sell upscale products.

“Families are almost 70 per cent of our clientele (as) we cater to children’s needs as much as adults in terms of food, entertainment and activities. Travel agents play a role in advising the right resort to families depending on their wish list.”

Sharma added that he prefers offline agents as the level of engagement offered through OTAs is very low.

Similarly, Fitzell said: “The online space is cluttered and the consumer is looking for expertise (and personalisation). Agencies will… focus more on being destination specialists and (serve) segments such as luxury, adventure and weddings.”

Corporates cancel meetings but leisure holds steady for Thailand so far

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Corporates have cancelled meetings and events in Thailand but leisure bookings are mostly going ahead, according to industry players interviewed on the impact on tourism of the passing away of Thailand’s King Bhumibol Adulyadej last Thursday.

While the MICE cancellations were deemed by some as “inevitable”, industry members are now watchful over “possible lost business”, i.e. new bookings that may be postponed or diverted if clients misread a Thailand-in-mourning as ‘Thailand is closed’ or ‘less amazing’, or if they have some concerns about stability in the country, said industry members.

Crowds of mourners at the roadside while the body of Thai King Bhumibol Adulyadej is taken from Siriraj Hospital to Wat Phra Kaew on October 14, 2016 in Bangkok, Thailand

As it is, corporate companies debate whether or not to hold meetings not because of the 30-day mourning period but because of “the overall mood”.

“They feel that it might not be conducive having a meeting in Thailand at this time as the overall mood isn’t the same as always and the famous ‘Thai Smile’ might be in short supply, which in turn affects delegates and meeting outcome,” said Peter Caprez, cluster general manager of three Marriott hotels in Bangkok and Samui.

For leisure, however, an outpouring of sympathy for local Thais since last Thursday, especially on social media, and immediate factual updates by both public and private sectors on the ground situation, have helped a lot to assure tourists. Industry members interviewed all said this effective communication must continue for, despite efforts, there were still incidences that showed they could never be enough.

David Kevan, director of Chic Locations UK, highlighted how the media in the UK had focused on the one-year mourning period – essentially for the royal family, government offices and, at their discretion, the Thai public – and less on the current one-month period observed by everyone, in which Thailand has a respectful, more sombre tone. “It is important we all get the message across that Thailand is not closed for a year,” he said.

Bill Barnett, managing director of C9 Hotelworks in Phuket, said: “There’s still perception among a number of people that beach-going is not being allowed, which is entirely incorrect.”

Sumate Sudasna, managing director of CDM, also added: “There have been cancellations of corporate meetings due to concerns it might not be appropriate to hold events in this 30-day mourning period. We need to clarify to clients about the government’s announcement of holding celebratory events; it appears now that only state-organised events are encouraged to postpone. Private events in their own confinements are not prohibited.

“My company’s two events in November are proceeding, with just the observation of the mourning atmosphere; no concerns otherwise.”

Laurent Kuenzle, CEO of Asian Trails Group, puts it in perspective for clients as to what the 30-day mourning period entails: “Life goes on pretty much as usual albeit most people are wearing black. Some entertainment areas are closed, but most are opened. Music is tuned down or changed, and no one really minds. You want to see the famous Alcazar Cabaret in Pattaya? All shows are performed except the late evening one. Cruises on the Chao Phraya River? All operating, but the music is tuned down. All tourist attractions with the exception of the Grand Palace are open.

“No one tells you how to dress at the beach, it’s people in bikinis as it always is. All restaurants are opened, shops are opened, alcohol is served everywhere. There will be no full moon party in Koh Phangan this month and there are no major concerts, but cinemas operate as usual, shopping malls see the usual crowds and I could name another hundred venues where nothing has changed.”

DMCs said they would continue to press on with effective communications. Richard Brouwer, CEO of Khiri Travel, said B2B DMCs are not seeing any impact to-date as they are communicating well with their overseas agents. “The impact is difficult to measure as there’s possible lost business, comprising clients who aim to book their travel within the next four to six weeks and may postpone or book a different destination. But we’re hopeful that with clear and ongoing communication that this will not occur.”

Barnett pointed out too that Thailand is on a shoulder month in October and the industry should gear up for the critical Christmas/New Year season by ensuring a good flow of information and “speaking from a single voice”.

As for the longer term impact, it’s too early to tell or, as Thomas Stirnimann, CEO of Hotelplan Group Switzerland, said: “That is open and yet to be seen. All depends on how peaceful the handover is going to happen.”

Thai industry members said they are optimistic all would be well.

Said Sumate: “I think positive, especially when it is about Thailand and the meetings/events industry. I would like to think that Thailand has an even more positive image, having been under an extraordinary rule for 70 years. This opens up a goldmine of attractions from projects initiated and supported by the royal family which will be most suitable opportunities for outreach programmes and activities which corporations tend to plan in their travel programmes.”

Agreeing, Addie Hirunkate, managing director of Destination Asia, said: “In fact this is another great opportunity for Thailand. We could give people from around the world a chance to learn more about Thailand and HM the King’s projects. We should use this chance to promote the royal projects and other royal initiatives that our king had done during his 70 years reign.”

MICE activities must go on: Thai industry

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THE Thai minister of tourism and sports, Kobkarn Wattanavrangkul, is urging business events in Thailand to proceed as planned as the country mourns the passing of King Bhumibol Adulyadej last Thursday.

“(The King’s passing) will not have any impact on tourism. Thailand (itself) will proceed with its promotion activities for the sustainable development of the tourism industry according to King Bhumibol’s wish,” Kobkarn said.

Thailand Convention and Exhibition Bureau (TCEB) will maintain its participation in IMEX America this week, but will drop performances from its programme at the show.

While business events, such as roadshows, seminars and meetings, can take place as planned, Kobkarn said some events, especially those involving outdoor entertainment, should be suspended for the next 30 days.

Bangkok’s 18th International Festival Dance & Music, for instance, has been postponed, “as everyone was not in a celebratory mood”, shared TCEB vice president Chiruit Isarangkun Na Ayuthaya.

PK Exhibition Management, organiser of the massive domestic tourism fair Thai Tiew Thai, will proceed with the event on November 3-6, but will call off performances.

Krit Pattarapan, managing director of PK Exhibition Management, told TTGmice e-Weekly that Thai Tiew Thai will also adopt a different theme – Sufficiency Economy, a philosophy conceived and developed by King Bhumibol.

Sumate Sudasna, president of Thailand Incentive & Convention Association, said the Thai government has sought the cooperation of the private sector to abide by the mourning period do’s and don’ts, particularly the suspension of entertainment activities for 30 days.

However, Sumate believes that this will not negatively impact Thailand’s MICE business, as the people’s unity in demonstrating love and respect for King Bhumibol reflects the country’s culture and character, which will “benefit Thai tourism”.

Bridge Rentals brings non-hotel inventory onto Ctrip

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Singapore-based Bridge Rentals has partnered with Ctrip to grant property channel managers access to the Chinese OTA giant’s wealth of travellers.

Bridge Rentals, which specialises in procuring non-hotel supply partners such as apartments and villas, is partnering with Ctrip to bank on the trend of private short-term rentals among Chinese FITs.

“We are very excited about the cooperation with Ctrip to market short-term vacation rentals to China, where outbound Chinese tourism has shown strong, accelerated growth,” said Bridge managing director, Nina Kubik-Cheng.

“This partnership provides Chinese travellers with options such as apartments and villas in popular destinations including Japan, South Korea, South-east Asia, Europe and North America. It also reflects our continued interest in strengthening our presence in Asia.”

Launched in July 2016, Bridge Rentals is a technology solution connecting non-hotel inventory suppliers worldwide to a global network of distribution channels.

Singapore, Indonesia launch joint training programme

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Singapore’s Republic Polytechnic and four tourism institutions under the purview of Indonesia’s Ministry of Tourism last week launched a 36-month Hospitality and Tourism Capability Development Programme in Indonesia.

The training programme aims to enhance teaching and learning approaches as well as the sharing of best practices and strategies on tripartite collaborations among government, private institutions and industry partners in Indonesia’s hospitality and tourism sector.

As part of the programme, Republic Polytechnic’s Problem-based Learning pedagogy will be shared with the participants to support curriculum delivery of hospitality and tourism courses.

Other training components include social media and branding, quality and productivity management.

All four of Indonesia’s national tourism institutions will work together with Republic Polytechnic in addressing location-specific issues in Bandung, Makassar, Medan and Bali. Republic Polytechnic will also share insights on enhancing the creative and entrepreneurial workforce in the hospitality and tourism sector.

The programme is also supported by Singapore-based non-profit Temasek Foundation International, which has committed a grant of S$494,500 (US$355,800) towards this initiative, and co-funded by the Ministry of Tourism, Indonesia.

Airline ban on Samsung Galaxy Note 7 widens

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The airline ban on Samsung’s Galaxy Note 7 phone has continued to spread, with carriers in Australia, Asia and Europe placing the phone on a prohibited list.

It comes after reports that a number of the devices had caught fire, leading the US to ban the phone last week, according to the BBC.

Airlines to the US subsequently followed suit, but the bans are now understood to be spreading worldwide.

In addition Air Berlin, Dragonair and Virgin Australia have now implemented bans.

Read the full story here.

Agencies in Japan up the sell using virtual reality

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Travel businesses in Japan are embracing virtual reality as a means to increase sales and to upsell.

From November, travel agency HIS will begin offering virtual tours of hotels featured in its Hawaii brochure through smartglasses.

“If customers can see the hotel before choosing it, their satisfaction level will rise,” said Atsushi Okamoto, team leader of HIS’ Kanto regional sales administration division.

“In addition, after seeing inside a hotel, customers may opt for a better ranking property, so we are expecting an increase in sales revenue as well.”

Meanwhile, Japan’s second largest agency, KNT-CT Holdings, which owns Kinki Nippon Tourist Co, is leading the charge in using virtual reality as a travel sales tool.

Its smartglasses are increasingly being used by tourism bodies as a way of differentiating themselves and providing information in other languages.

Hirosaki City Government contracted the company to develop its tour of Hirosaki Park, in Aomori Prefecture, and was launched in 2016. Visitors use the smartglasses to visualise the park in all seasons and to learn more about its history.

“Many tourists have been surprised and happy to see the area in full bloom during the cherry blossom season,” said Jun Ogasawara, Hirosaki City’s executive director of tourism promotion.

However, Toshiyuki Tojo, a national guide for Kinki Nippon Tourist Co, says a matter of concern is the high price of the equipment and that the software is not easy to handle.

But if these issues are resolved, the company plans to use the technology to “offer guides not only on history and nature, but also anime and attractions at Japan’s airports and stations.”

Karl Lagerfeld debuts eponymous hospitality brand

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Fashion house Karl Lagerfeld, in partnership with Brandmark Collective, has launched Karl Lagerfeld Hospitality, a new hotel and lifestyle brand.

The first property to carry the Karl Lagerfeld flag will open in Macau in 2017.

“Expanding our brand into the hospitality sector reflects our greater vision to broaden Karl Lagerfeld’s comprehensive lifestyle experience,” said Pier Paolo Righi, CEO and president of Karl Lagerfeld.

Karl Lagerfeld Hospitality’s projects will include not only hotels, but residential properties, restaurants and private clubs as well, where each will reflect Lagerfeld’s approach to style.

Righi added: “Developing the Karl Lagerfeld six-star hotel in Macau, which is scheduled to open in 2017, has been an exciting process for our whole team, and we look forward to further expanding in this field.”

The company is currently exploring further opportunities in gateway markets and resort destinations worldwide.

Thai outbound tour prices decline as FIT demand surges

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Outbound travel package prices in Thailand will be on the decline for the next two years, with longhaul destinations seeing as much as a 50 per cent drop in prices, according to the Thai Travel Agents Association (TTAA).

“In the past two months, package prices to many destinations, especially to Europe, were very low, starting at only 35,000 baht (about US$1,000). Many agents now sell packages at a loss because the projection of Thai people’s spending power was wrong,” said Suparerk Soonrangura, president of TTAA.

The financial health of Thai travellers had not bounced back as expected with many now choosing shorthaul destinations of less than seven hours. Additionally, companies and state agencies have cut budgets for overseas meetings and incentives. Travel firms have also started a price war, added Suparerk.

“The unpleasant situation will continue for the next two years at least. Only strong and flexible tour operators can survive,” he noted, advising travel agents to create new products that are in line with trends such as cycling- and marathon-related packages.

Although outbound flow for tours is tightening, the number of Thai FITs is growing.

Thai travellers, especially millennials, prefer to travel free and easy. A trove of travel information on the Internet and lower costs stemming from stiff competition among airlines, especially LCCs, has encouraged them to travel more independently as well, explained Suparerk.

TTAA expects overall outbound travel to grow 18 per cent to 6.9 million trips this year and to 7.1 million by 2017. Tours are accounting for 20 per cent of total traffic this year and is on the decline.

The top three outbound destinations for Thais are China, Japan and South Korea.