ZUBIN Karkaria has replaced Peter Meier as CEO of Kuoni Group, the first time in the history of the Swiss company that an Asian has been appointed to the top post but one which comes as little surprise to Kuoni observers who see him as the brainiest of them all in Kuoni of late.

Karkaria founded VFS (Visa Facilitation Service) Global in 2001, a division of Kuoni today that is the fastest growing, most innovative and most profitable. Having sold off its tour operating business, Kuoni now has only two other divisions, GTD, the B2B distribution of hotel accommodation and destination services, and GTS, which provides destination services including accommodation, transport, tours and event management. This division however is wrought with challenges, especially changes in Japanese group travel business, and will be restructured, according to a Kuoni statement.

Kuoni did not however go into detail why Karkaria was appointed CEO and Meier would leave Kuoni. Observers presumed Karkaria knew the business better than Meier and – with a restructuring of GTS, a share price that has fallen drastically and a smaller revenue stream having sold off tour operating – might be able to wave his magic wand to shore up Kuoni in the years ahead.

Kuoni meanwhile is cutting costs with a vengeance to match its smaller size and shareholders’ expectations. GTS’s restructuring would involve a global reduction of 350 full-time posts, expected to shave off the cost base by more than CHF30 million. The group’s support and corporate functions, especially finance and IT infrastructure, would be simplified and outsourced. Even the board of directors is up for shrinking, from seven to six members, with a reduction in the Board’s compensation foreseen.

“The Kuoni Group has been transformed from a broadly based travel company pursuing a wide range of very different activities into a focused global service provider for the professional travel industry and governments. Such an in-depth new strategic direction presents a number of challenges and places heavy demands on management especially in fast-changing markets. After a critical review of the strategic direction, the Board of Directors has decided to accelerate its implementation. The changes in the Executive Board, with Zubin Karkaria as new CEO and Prisca Havranek-Kosicek as new CFO of the Kuoni Group, are part of this process,” said Kuoni Group chairman Heinz Karrer.

The group also announced it has entered into a partnership with HNA Group of China to jointly develop the outbound travel business in China and to partner in related strategic matters.

PREFERRED Hotels & Resorts has unveiled a new Discovery Philippines promotion valid for three hotels from the Discovery Group – Discovery Primea, Discovery Shores Boracay, and Discovery Suites.

The offer features a complimentary third night stay with two consecutive nights booked at any of the three hotels, and includes breakfast, welcome drinks, amenities and free Wi-Fi access.

Additionally, travellers can enroll in the iPrefer guest loyalty programme which follows a points system that is redeemable for free nights, other expenditures, elite status and other privileges like complimentary Internet with every eligible stay.

Rates for Discovery Primea, Discovery Shores Boracay and Suites starts at US$210, US$415 and US$167 per night respectively.

Terms and conditions apply.

Bookings can be made online at www.PreferredHotels.com/DiscoverPhilippines

FOLLOWING the success of its Phuket office, Thailand’s leading hospitality management consultancy company, LHM Asia, has marked a new presence in Koh Samui.

The new office in Koh Samui will allow LHM Asia to better support its growing client base there.

“Within the last two years our Phuket branch has added another 15 hotels to its prestigious client list. Expanding our reach to Koh Samui is a natural progression and one that stands to benefit forward thinking businesses from island’s tourism industry,” said Christian Schlegal, managing partner for the Koh Samui branch.

AT THE recent Hotel Investment Conference Asia-Pacific, a moderator inadvertently mentioned in one of the breakout sessions that Hyatt Hotels & Resorts was going to have two new additions in Tokyo, to the dismay of Patrick Finn, the chain’s vice president real estate and development Asia-Pacific, who told us it’s not official yet.

The chain already operates four hotels in Tokyo, a Park Hyatt, a Hyatt Regency, a Grand Hyatt and an Andaz. Snagging one more, let alone two, indeed is no mean feat. No doubt it’s a lot due to its long, successful history in Japan, where it has 10 hotels in operation today.

Tokyo has been afflicted by a shortage of hotel rooms for some years, particularly at the higher end of the accommodation spectrum. The city is the dream of every development guy – visitor numbers are soaring, occupancies are high, 2020 Tokyo Olympic and Paralympic Games are a little over four years off. But land and labour costs keep Tokyo out of reach for most.

We also hear whispers that Four Seasons is scouting for possible locations in Tokyo.

The Four Seasons at Marunouchi opened in October 2002, but has a mere 57 rooms.

STARWOOD Hotels & Resorts Worldwide will take its luxury label, the St. Regis to Shanghai come 2017.

The St. Regis Shanghai Jingan will be part of a new mixed-use development on West Beijing Road, near the West Nanjing Road business area in Jingan.

It will offer about 480 keys from level 29 to 54, 41 suites, 47 residences as well as several three-bedroom apartments on the top levels. Guests will enjoy access to a spa, an indoor swimming pool, a fitness centre, three restaurants and an alfresco bar.

For meeting planners, the hotel will have approximately 2,000m2 of event space.

Guests can also apply for the signature St. Regis Aficionado programme which gives them unprecedented access to some of Shanghai’s attractions.

AS ash spewed by Mt Rinjani on nearby Lombok forced the closure of Bali’s Ngurah Rai International Airport until at least Friday, outbound agents in the region are not fearful of any long-term impacts on inbound tourism to the popular Indonesian island.

Most agencies are continuing to operate their scheduled Bali tours as usual, implementing contingency plans to cope with unexpected changes should they arise.

Chan Brothers Travel Singapore’s marketing communications executive, Rebecca Chia told TTG Asia e-Daily that they had provided a 24-hour emergency support hotline for a group of 15 travellers from Singapore heading to Bali tomorrow.

She said: “We are closely monitoring the local situation to assess its continual development. We will ensure customers are well informed of the situation over in Bali and the prevailing travel advisories prior to reservation.”

At press time, Intrepid Travel Australia will operate trips scheduled for departure on November 7. “At the moment, our travellers haven’t been affected,” said James Thornton, Intrepid’s managing director. “But we have sent a letter out to all passengers who are due to start their trip this Saturday, just to let them know of their leader’s details and what to do in the event that their inbound flight is delayed.”

Said Alicia Seah, director of marketing communications at Dynasty Travel Singapore, which has 29-pax group departing next week for Bali: “If the situation does not improve and flights do not resume by next week, we will assist our customers if they wish to deviate their travel (plans) to other regional destinations (like) Malaysia, Vietnam or Cambodia.”

Likewise, Adam Kamal, general manager at Olympik Holidays Malaysia, has not received any cancellations for leisure tours in December. He said: “I don’t think there will be a lasting effect (from this eruption) unless there are further eruptions.”

Positive that the airport closure will be a temporary disruption, John Chan, business consultant of Kuala Lumpur-based Kris International Traveltours, has advised his corporate clients to go ahead with their year-end travel plans.

Looking ahead, Flight Centre’s head of leisure travel, Tom Walley, expects Bali to remain popular with the Australian market.

“Bali bookings remain steady despite air travel disruptions,” he said. “The ash cloud is certainly inconvenient to travellers, but the destination is a resilient favourite that is consistently the number one destination for Flight Centre customers.

“The biggest lesson when travelling to Bali is to ensure you have adequate travel insurance to cover you should something similar happen again,” he added.

Sharing similar sentiments, Dynasty Travel’s Seah added: “All passengers are recommended to purchase comprehensive travel insurance so that they can travel with ease of mind. Travel insurance will cover flight delays, lost baggage and wide range of protection benefits.”

Additional reporting by Rebecca Elliot and S Puvaneswary

INDONESIA Ministry of Transportation has updated its Notice to Airmen this morning to extend the closure of Ngurah Rai International Airport, Bali; Lombok International Airport; Selaparang Airport, Lombok; and Blimbingsari Airport, Banyuwangi up to Friday, November 12, 2015 at 07.45.

This is the third day the airports are closed due to the eruption of Mt Rinjani on Lombok Island. The volcanic ashes are blown to the west, disrupting flights within the area and forcing the regulator to close the affected airport.

Julius Adravida Barata, spokesman at the Ministry of Transportation, said that between November 3, at 19.30 when the airports started to be closed, up to 08.45 this morning, a total of 692 domestic and international flights were cancelled.

Among these, Lion Group (Lion Air and Wings Air) had cancelled 84 flights, Citilink 24 flights, and Garuda Indonesia 209 flights.

In the meantime, Bali Hotels Association (BHA) representing more than 130 hotels in Bali has come up with initiatives to support stranded passengers and those who cannot arrive on the island due to the closure.

Jean-Charles Le Coz, BHA vice-chairman, said: “For passengers that need to extend their stay, BAR should be proposed when requests are made directly to the hotel. For bookings that are made through a third party, contracted rates apply.”

“For passengers that cannot come to Bali or will arrive later than original dates booked, BHA members are recommended to accept, at no charge, to re-book their stay (based on availability and rates during new requested period) until end of March 2016,” he added.