THE Hotelplan Group has emerged as a suitor for Kuoni Switzerland.

CEO Thomas Stirnimann confirmed with TTG Asia e-Daily “we are looking at it” when asked if the company was keen to buy Kuoni Switzerland.

“I guess we would be the best owner by far,” he said when asked for his views on who would be the likely buyers of the outbound businesses Kuoni has put up for sale.

If the deal goes through, Hotelplan would consolidate its position in Switzerland, where it is the second-largest tour operating company after Kuoni.

Asked about the future of the tour operating business, Stirnimann said: “We can only say that it is working out well for us, but you needed to adapt a couple of years ago. Today there is no more B2B or B2C business but only business with which you serve all channels.”

Now that Kuoni has made known its intention to sell its outbound units, a few sources interviewed speculated that potential buyers could be the bigger players in the Middle East, private equity companies, or other non-travel related investors.

“I would be surprised if any of the larger travel groups in Europe purchased them given their current directions, although maybe Flight Centre might see value in their global expansion plans,” opined Chris Bailey, senior vice president sales & marketing Centara Hotels & Resorts Thailand.

On who they wished would buy, several Kuoni groundhandlers in the region are wistful.

“There are not many companies that invest in customer care and training like Kuoni does. Many talk about it but pass it to the ground agency to carry it out. Kuoni ensures the ground agency understands what the brand stands for, how important the customer is to Kuoni and why you should be proud to be part of the Kuoni group. The annual training for our staff looking after Kuoni customers are well organised and gives our staff a sense of pride to be a part of Kuoni,” said Judy Lum, group vice president sales and marketing, Tour East Singapore.

Lum wished Kuoni would reconsider. “I had hoped they would synergise the model of GTA with Kuoni tour operating and be the first to be able to give the consumers what they expect as a holiday, yet deliver the efficiency in the booking process for the customers of today. I know the business models of GTA and Kuoni are different worlds but they serve the customers of the same planet who expect a lot from each,” she said.

A source lambasted Kuoni for the sale announcement. “I do not think that it is wise to announce a sale of a company when you have no buyer.

“Firstly you demoralise your own staff, secondly you discourage existing and new clients to book with you, and thirdly you devalue your own company image/share value,” said the source.

Centara’s Bailey shared some of that sentiment. “All situations like this have an impact on the staff (I have seen a few myself [as a tour operator before]), however upbeat the message from management. It’s the fear of the unknown and potential change that always disrupts people’s attention to their day job.

“On the other hand, as I said before, if staff can be engaged with the change and kept in the loop with regular updates, then they can go the extra mile during this transition period.

“The other threat is of course from the competition as it’s often an opportunity to cherry pick talent and or commercial arrangements in such times.”

Kuoni contracting managers contacted by TTG Asia e-Daily on the impact on them did not respond at press time.

DESTINATION Asia said it does not see a huge account fly by overnight, rather is prepared for the eventuality when Flight Centre switched to Buffalo Tours following the joint venture between the two to establish a regional DMC.

Flight sends around 300,000 clients to Asia a year, an immediate boost to Buffalo which, in Vietnam, Cambodia, Thailand and Myanmar, handles 120,000 pax a year, according to CEO and founder Tran Trong Kien.

With the JV, which saw the opening of Buffalo in Singapore yesterday, Kien expects to handle more than 500,000 pax a year throughout Asia, where Buffalo will also sprout in Bali in two weeks’ time and in Malaysia, Hong Kong, China and Japan within eight weeks, he said.

However, a source believed some of these offices might be delayed due to sticky travel agency application processes. Still, Buffalo said it handled Flight in countries like Thailand from October 1 last year, now Singapore and “the rest from April 1”.

In Singapore alone, Flight sends 55,000 to 60,000 pax a year, said Buffalo’s regional general manager Singapore & Malaysia, a former executive of Pacific World.

Asked the impact of the account movement on Destination Asia, which handled Flight for five years, James Reed, CEO/group managing director, said Flight had given it a year’s notice that it would be moving the business, enabling the firm to source other markets.

Said Reed: “Firstly, I have the deepest respect for Flight Centre and I wish them well. Graham Turner is a true entrepreneur and a great Aussie.
“Flight Centre was very generous and gracious in letting us know that they would be transferring their business to a new ‘inbound DMC’, so we had 12 months’ notice. This long notice period enabled us to source new business via our ISO (international sales offices) network in New York, Chicago, London, Sydney, Johannesburg, Auckland, Dusseldorf (and a new office in Brazil this year).”

Reed said Flight’s business, though high volume was “at a very low price point per pax”. While the new business Destination Asia has secured could not replace Flight’s volume it has higher margins, he said, adding “2015 will be an excellent, near record, profit year for the Destination Asia Group”.

No offices are closed as a result of the loss of Flight Centre, Reed added.

Rather, staff count is now over 630, compared with 575 when the DMC handled Flight, due to new business.

“Our ‘three legs’ business model – MICE , tour wholesalers /tour operators and cruise ships – continues to deliver significant cross-selling among the 33 operating offices in the 11-country Destination Asia network . In addition to an almost record 2015, we are signing further new business customers and 2016 will be an additional 25 per cent growth over 2015,” Reed said.

“Our outbound business ex Destination Asia China and our new inbound India division have also added substantial new dollars to the bottomline profit of the Destination Asia Group.”
Meanwhile, a major new “partnership” in a major US city will expand Destination Asia’s American presence. Reed is expected to announce this tie-up next Thursday.

FOLLOWING its aggressive expansion across Asia, Vietnamese carrier VietJet Air has announced it will be making its IPO available by the end of this year.

At a media conference this morning, VietJet managing director Luu Duc Khanh, confirmed: “The IPO is a big step in our plans for development because it will help us gain greater trust of the public by being transparent.

“This will ultimately benefit both our investors and customers.”

Highlighting Vietjet’s order of 100 Airbus aircraft to be delivered over the next 10 years, with the first delivery having taken place just last month, Khanh said VietJet is ready to expand its flight network and increase the frequency of existing routes.

“We have very strong demand from the shorthaul market and we have decided to concentrate on them first. Why would you want to move away from what you are doing very well in? (Moreover) we do not have enough resources to spread around,” he said.

Since VietJet started operations three years ago, the airline has doubled its commercial fleet, currently operating 28 domestic and international routes from destinations within Vietnam to Singapore, Thailand, South Korea, Taiwan, and Cambodia.

Last month, it announced plans to launch flights connecting Russia’s Vladivostok with Vietnam’s Hanoi, Ho Chi Minh City, Danang, Hue and Phu Quoc.

Khanh said the company will celebrate welcoming its 10-millionth passenger this month, reflecting its ambitious target to double its number of passengers every year.

THE 372-key Royal Cliff Grand Hotel officially reopened last Saturday following five months of refurbishment and substantial product upgrades.

Apart from a new entrance and driveway with a seaside backdrop, suites have been refurbished with a more contemporary design, large marble bathrooms with separate walk-in shower, and a room control system that manages lighting, room temperature and motorised blinds.

F&B options include the redesigned Chamu, Chrysanthemum and Larn Thong serving Japanese, Chinese and Thai cuisine respectively. At the end of February, the remodelled Rossini and Cigar Lounge will open featuring an upgraded outdoor terrace and an elegant cigar lounge.

Another rejuvenated facility is the two-level infinity-edge pool which features a heated pool and offers breathtaking views of the Gulf of Thailand.

JAPAN’S extensions to its bullet train network, or Shinkansen, which consist of two new stretches spanning areas relatively nascent in terms of international tourism, will be opening at a earlier date than expected.

The extension of the Hokuriku Shinkansen from the popular tourist destination of Kanazawa to the city of Tsuruga was initially scheduled to open in 2025, but that project is now being brought forward by three years.

The Hokuriku region covers four prefectures on the Sea of Japan/East Sea coast and the new track will greatly reduce the time required for visitors to reach the historic city of Fukui, which is 97km north-east of Kyoto and 115km north-west of Nagoya.

The second bullet train extension, connecting Sapporo on Hokkaido with Shin-Hakodatehokuto was due to be ready for operation in early 2036. However, its completion is now being advanced by five years.

Hokkaido, Japan’s most northern main island, is keen to develop its winter sports industry and has been mooted as a destination for the Winter Olympic Games in the future.

The travel industry welcomes the announcement and is already making plans to promote tourism in the areas that will benefit from the extended routes.

“Demand for domestic travel is rising every year,” said Tstsuki Miura of the corporate planning department at HIS.

“HIS will set up a special web page featuring the Hokuriku bullet train from January 30, and we will prepare tours for Japanese as well as foreign travellers to this region,” he said.

The Japanese government estimates that the construction work will cost US$4.5 billion and is looking into raising the necessary investment funds from financial institutions.

BANYAN Tree Hotels and Resorts will be adding 28 new properties within the next four years, and is looking at several projects in South America, the US, Europe and the Middle East.

The additional new properties will be spread across the Banyan Tree (14), Angsana (10) and most recent Cassia (4) brands.

Banyan Tree vice president for sales and marketing, David Spooner, said: “Our first Cassia hotel will go live in Phuket this December. Other destinations (expecting the brand) include Bintan, Lijiang, Sri Lanka, Gold Coast of Australia, New York and London. The group will build and sell the property, then market it for the owners.”

The group will also roll out its fourth brand in 2016, he revealed, which focuses more on the mid-market and will be operated through management contracts.

He added that the rationale behind aggressive expansion is to become a “good collection of brands”.

”We’re a rising brand in Asia and our goal is to compete with Four Seasons. China remains a powerhouse and we have just opened Banyan Tree Yangshuo and Angsana Xian Lintong there, to be followed by Banyan Tree Huangshan, Angsana Chongqing Beibei and Banyan Tree Jiuzhaigou within this year.”

The group is also catering to the growing category of health-conscious guests. Spooner explained: “Hot spring resorts have been in China for a while and it’s getting popular as people are desiring a healthy lifestyle. However, most operators are domestic, so we’ll bring this type of resorts to international level.

“Our new hot spring resorts include Banyan Tree Chongqing Beibei, Angsana Tengchong Hot Spring Village, Angsana Xi’an Lintong (the hotel is open but its hot spring will be ready this May) and Angsana Chongqing Beibei (opening this year).”

Playing down the impact of China’s anti-corruption crackdown on the group’s business there, he said: “Luxury is a very wide term and we don’t cater much to this type of travel, which happens mostly in the city centre.

“The majority of our guests are not related to government travel. In fact, our brand is not blatantly luxury but more discreet and understated luxury.”

MALAYSIA is considering the total abolishment of visa requirements for Chinese tourists, instead of the earlier plan of waiving visa charges.

The Ministry of Tourism and Culture and the Ministry of Home affairs are preparing papers on the possibility of abolishing the visa requirements, to be presented at the Cabinet meeting next week, reported local broadsheet The Star.

Winnie Ng, deputy general manager, Pearl Holiday Travel & Tour, said the removal of visa requirements is a better alternative than waiving the visa fee because it “attracts last-minute travellers and takes away the hassle of visa application”.

Mint Leong, secretary-general of the Malaysian Inbound Tourism Association, said the move would create a level playing field with neighbours Indonesia and Thailand.

However, she pointed out: “It does not mean that just by removing visa requirements, Malaysia will be as attractive as Thailand. We cannot compete with Thailand in terms of pricing and attractiveness of the destination.

“Thus, it is very important for Tourism Malaysia and industry players to work together on creating tactical promotions and new itineraries enticing to the Chinese. While the Malaysia Year of Festivals 2015 campaign will certainly help generate interest in the destination, what is needed now is to create awareness about this campaign to the outbound Chinese tour operators and the Chinese consumer.”

She added: “In the long term, the visa waiver will see an improvement in Chinese arrivals, but a decision made within the next few weeks will be too late for a big impact on Chinese arrivals for the upcoming Lunar New Year.”