Brouwer to leave Diethelm

October 23, 2014

RICHARD Brouwer, CEO of Diethelm Travel Group, has decided to leave the company and replacing him will be Maarten Groeneveld, the current COO.

Brouwer has served Diethelm for 15 years in various management positions, rising to the top post two years ago. He told TTG Asia e-Daily: “It has been a fantastic 15 years; let me tell you it is not easy to find a company where, every time you walk into the premises, you have a smile on your face and think: another great day with the team, let’s make a difference and do it!”

Angelo van Tol, chairman of DK Travel Holding based in Zurich, said: “I would like to take this opportunity to thank Richard for his enormous contribution to Diethelm Travel Group over the past 15 years and wish both him and Maarten continued success in the future.”

Groeneveld’s promotion is effective December 1. He joined the group in 2000 in its Myanmar operations and has been COO since 2012.

A deeper shade of green

By Raini Hamdi

October 23, 2014

What if sustainability policies reduce profits – would hotel and tourism companies still do them?

Sustainable tourism practices must move on to the next level or the industry risks facing a consumer backlash’.

Consumers are done with what they see as the Linen Card trick: their bed linen gets washed only if they put the
card on the bed. A friend forwarded me a welcome email he got from the GM of a five-star hotel in Hong Kong after he made a booking there. It said: “You are highly encouraged to use your bed linen more than once as part of our green initiative.” He had barely arrived.

We’re still in the phase where the green buck lies with the traveller, who is highly encouraged to pay for his carbon footprint, cut waste and save energy, as our roundtable on tourism sustainability, printed in the last issue (October 10, 2014), showed. We flag these initiatives as our green moves although it’s the consumer who does the job. Sure, we do play some role too – we make our hotel building green, install low-flow faucets and showerheads, recycle furiously, etc. Yes, all these practices do benefit the environment, but these are efficiency measures, not sustainability policies, and they increase company profits, not reduce them. Any wonder if guests see red instead of green (like my friend who got the welcome email)? Instead of educating guests to be environment-friendly, are we turning them off it?

What if sustainability policies reduce profits – would hotel and tourism companies still do them? Sustainable development has been defined in many ways but the most frequently quoted is “development that meets the needs of the present without compromising on the ability of future generations to meet their own needs”. It’s not about cost-cutting. The tourism industry should think of this definition deeply and come up with deeper sustainability policies.

I like, for example, Shangri-La Villingili Resort & Spa Maldives’ partnership with local farmers, which won the resort a HICAP Sustainable Award last week. It provided funds to build four greenhouses, which the farmers could not afford. The cooperative paid back the funds within 10 months, and additional facility and technology enhancements will be funded on a similar basis. Since 2010, the resort has bought over 233,000kg of locally-grown fruits and vegetables, while the local community has started to buy as well, which not only enhances farmer incomes but gives locals a wider variety of highly nutritious fruits and vegetables. Today, the cooperative supports the livelihoods of 93 farmers.

But these kinds of measures invariably require companies to pour in an investment at the start (which reduces profits) and evaluate rewards they will achieve only in the long run, compared with the current gains to the bottom line firms gain immediately by cutting costs through efficiency measures.

Nevertheless, scale the next bar the industry must, for in the future consumers and regulators will be ever more demanding about how firms behave, as our roundtable heard.

For them, the Linen Card trick will no longer do.

An independent streak

By Xinyi Liang-Pholsena

October 23, 2014

James Reed, CEO and group managing director of Destination Asia, is no stranger to the ever-changing travel trends and mix of visitors to the region. He tells Xinyi Liang-Pholsena where he thinks the opportunities are for the DMC

Destination Asia rolled out several B2B portals in recent months. Why the big focus on online?
Our client base wants immediate confirmation, but our offices are six, seven hours ahead of Europe and 12 hours ahead of the US, so we need to give immediate access and represent all hotels. Also, new customers can see that they can book through one source to all 11 countries – we actually own all 11. Few competitors (can claim that) as they actually sub, sub, sub-contract, but we have our own licenses.

Another reason is that we are among the last few independent companies of our size. Tour East is owned by Qantas Airways; Diethelm Travel is owned by a Swiss international trading company; and Asian Trails is owned by Kuoni.

Tour wholesalers…have used other inbound DMCs and found that part of these companies are owned by their European competitors, and they don’t like that. Independence has helped us tremendously.

What benefits have been reaped?
B2B first came in on straight single-destination bookings – somebody in London booking Thailand only or somebody in Sydney booking Bali. But now the technology allows more sophisticated software, so that we can now offer multiple countries. It has helped us to grow our business into a one-stop shop.

For tour wholesalers, it’s better economies of scale and quality standards if they use the same DMC in as many countries as possible.

Are you targeting any new markets?
The US, the UK, Australia, Scandinavia; and the German market is growing, while South America is growing a lot.

As for Asia, currently we have only inbound India and inbound China, both of these (divisions) are owned by us. We have no Singapore, Malaysia, Japan or Hong Kong business, simply because we believe those markets are very mature, saturated and tight. We see 10-20 years of growth in India and China, particularly the latter.

You opened earlier this year an inbound India division in Thailand. Will you also do the same for other destinations?
Singapore, Malaysia, Hong Kong and Vietnam are probably the next four countries to have inbound India divisions. By the end of this year we will have Indian inbound everywhere; maybe not Japan because the market is very small there as it’s very expensive for Indians.

Is there already an inbound Chinese division for all your countries?
Not all, because some Chinese business is into Thailand, Bali, etc, but some is into Australia, Europe and America. We would love to get all the (Chinese) business into Asia, but that’s not possible, plus the main destinations for Chinese outbound (in the region) are Bali and Phuket. Our main business in China is still inbound – inbound opened eight years ago, outbound two years ago. We will do outbound next in Indonesia.

Which segment of the Chinese business are you most excited about?

The leisure business. However, Chinese outbound incentive business is growing. Like Western companies, Chinese companies do see travel as a kind of reward, for example, a trip to Hawaii/Thailand. (Similar to what you’d find in) Western countries, there’s also families and honeymooners, but you also have dancing groups, jazz clubs, art clubs, sport clubs – all kinds of hobbies and associations.

What about new offices overseas?
We do have expansion coming, which we will be announcing in January (2015).

Hardly a week goes by without us getting a request from India asking if they could join our group or if we could buy them, but we will not be expanding west of Myanmar.

Why not India?
All sorts of operational, legal issues, etc. There are other countries in Asia where the entry is easier and more transparent, so we will never do inbound in India.

Which of your 11 destinations has the greatest potential?
Thailand is currently the largest, but in two years it will be overtaken by China. Coming behind is Indonesia, Japan, Vietnam and Singapore. Myanmar, however, has phenomenal potential. We are very bullish about it (because of its) stunning historical sites and geography. There’s huge demand from Europeans, Americans and Chinese.

Asia has seen an unplanned recipient travel business diverted from the Middle East. In the last two years, we have been asked by almost every (international tour wholesaler) and their customers to increase the tours and capacity into Asia to help them compensate the loss of business to Egypt, Jordan, Turkey, etc. It’s sad what is happening in the Middle East. How long would that last? Nobody knows.

MICE business will also continue to grow. The future of the world economy is Asia, and that means there will be more corporate meetings required, training meetings, product launches, incentive travel, so we see MICE growing by leaps and bounds. The upcurve is never-ending.

We are very bullish about the future in Asia – we see double-digit growth every year for the next 10, 20 years in all markets.

How do you foresee Thailand’s tourism development?
Twenty years ago, Thailand had 95 per cent of the business to the Indochina area. It’s inevitable the area has opened up, first Cambodia and now Myanmar. (Development) has been good for all these countries, but Thailand has also benefitted because it’s currently the hub. Eventually Myanmar and Vietnam will become standalone destinations, but that won’t come for at least another 10 years because they don’t yet have the infrastructure. In 10, 15 years, that will change, absolutely.

Protests in Thailand had only really affected MICE, but leisure, no – it hasn’t grown but it’s only down four, five per cent. We have been able to transfer approximately 35 to 40 per cent of the MICE groups that were booked in Thailand to other Destination Asia countries, mainly Hong Kong, Singapore, Bali and Malaysia. We are hopeful the business will come back once they lift the martial law. But it will come back, and everyone knows this – Thailand has got great infrastructure and hotels.

What are some of your biggest challenges today?
Finding qualified staff with a good service mind, and training and keeping them. But the problem in most parts of Asia is, the unemployment rate is one per cent, half a per cent.

There could be more outbound if there are fewer visa restrictions. For example, up until six months ago, Thais still needed a visa to Japan, but it has been cancelled and now Thais are going to Japan in hundreds of thousands, and Japan has benefitted in real actual economic activity.

I also believe Asia has to continually expand its infrastructure. Travel in Asia is still at a baby stage, and it’s going to grow. There are still a lot of poor people in Asia, but in 10 years’ time they will become middle class and travel. China has built this phenomenal fast-train system and Thailand’s going to do it. What I would like to see is Singapore to Bangkok, and Bangkok up to Beijing, and this will come in the next 20 years. Rail traffic is definitely a growing part of the business.

We’re the biggest handler of inbound cruise ship passengers (in Asia), but apart from Singapore, Hong Kong and Tokyo, the port facilities in Asia are geez…For Thailand, Malaysia, Vietnam, Indonesia, there really needs to be investment. And if they build it, more ships will come.

This article was first published in TTG Asia, October 24, 2014 issue, on page 11. To read more, please view our digital edition or click here to subscribe

App, app and away

By Prudence Lui

October 23, 2014

Travel agencies are keen to capture the rapidly growing customer base on mobile with their own apps. Prudence Lui, Caroline Boey, Paige Lee Pei Qi, Rohit Kaul and S Puvaneswary profile some, while Kathy Neo looks at others that could benefit the trade

Wing On Travel

What The Hong Kong travel agency’s app offers 400,000 properties worldwide and air tickets to more than 200 destinations. What sets it apart is the choice of 70 LCCs, powered by Abacus. Future additions include bus tickets to China, attraction tickets and even restaurant bookings.

Wing On will continue to invest in search engines like Google and Yahoo, so that the app comes up top in search results. It will also increase promotions on social media like Facebook and Twitter during the launch.

How Consumers can pay by credit card, and the process takes less than five minutes.

When An eight-figure investment, the app was developed a few years ago with support from parent company, Ctrip. A team of about 100 IT professionals worked on this platform, and Wing On sped up the process early this year to make it available in October, coinciding with its 50th anniversary celebration. It hopes to see return on investment from 2016.

Why As FITs account for a single-digit percentage of overall business, Wing On Travel director and CEO, Lanny Leung, hopes to expand this market to 10 per cent. The company also intends to establish itself as a mobile travel agency by targeting younger travellers.

She said: “So far, there is no similar app designed with such a scale of content and price-comparing function to filter the best options for consumers. Wing On also has its eye on the Macau market, where OTAs are hardly present.”

Yatra.com

What Consumers can search for flights, hotels and holiday packages on the app.

Yatra.com also claims it is the only Indian OTA that provides a web check-in facility, which is currently available on its iOS app. There are also plans to offer this service on other platforms.
“No other OTA is currently offering this facility. Travellers can also view their booking history and recent selections,” said Sharat Dhall, president, Yatra.com.

How “Yatra.com tries to make the experience as smooth and comfortable as possible for its consumers, with features like eCash, a loyalty reward programme that gives instant cashback to customers for every purchase made, as well as offering them the benefit of instant refunds in the case of cancellations,” said Dhall.

When Developed in-house, the mobile app was launched in the last quarter of 2013.

Why The main objective was to provide ease and convenience, enabling customers to plan and book their travel on the go.

Dhall said: “We have seen the mobile booking segment grow significantly, and the market is definitely headed in that direction. With the easy availability of cheaper smartphones and rising Internet penetration via mobile, an increasing number of travellers are researching and booking their holidays on the mobile.”

Yatra.com currently receives 25 per cent of its bookings through the app, compared to 10 per cent last year. Twenty per cent of its digital spend is for its app.

Lvmama.com

What Catering to FIT travellers in China, Lvmama.com’s app was developed to provide users with a convenient one-stop service to book tickets to scenic spots in China, domestic trips, regional and longhaul outbound travel, cruises and more.

At present, the majority of users are using the app to book tickets for scenic spots and travel to nearby countries, said Kate Ni, assistant general manager, Lvmama.com.

Claiming to have more than 10 million registered users, the company is still in the process of acquiring more users. Ni said: “We are promoting mostly in the mobile app segment, especially among search engines and social media.”

How Users can browse, book, and pay for purchases through the app. In addition, they can share their travel experiences and photos using the app.

When The app was launched in June 2011. It was developed by Free-trip Wireless Center, a Lvmama.com division, and cost more than RMB10 million (US$1.6 million).

Why With the rapid development of mobile technology, sales through the app is expected to grow. It now accounts for more than 50 per cent of sales.

BeMyGuest

What Created by Singapore-based tours and activities aggregator BeMyGuest, this B2B app caters to its suppliers. Suppliers are able to manage bookings, reviews as well as access customer details and active listings.

How Bookings can be accepted and completed entirely through the supplier app.

When Kicked off in March, the app is built entirely by the company’s own technology and design teams.

Why The app was built to provide a mobile booking management tool for tours and activities providers.

BeMyGuest CEO, Clement Wong, explained: “As many of our suppliers are frequently on the move, this app reduces the time taken to accept booking requests. Many suppliers are even bypassing having a laptop altogether, hence the need for an app specifically for mobile devices.”

Luxury Tours Malaysia

What Groundhandler Luxury Tours Malaysia is in the midst of testing its mobile app, eTravel Partners, which aims to give travellers an easy way to have a soft copy of their itinerary wherever they are.

With help from Singapore-based IT provider DesignerSoft, the app also provides suggestions on additional tours and other add-on products they can include in their itinerary.

How Consumers pay their local travel agency for bookings, while any add-on purchases made upon arrival in Malaysia can be made to Luxury Tours Malaysia.

When For Android phones, the app is being tested and is scheduled to go live in February 2015. A similar app for iOS is being developed and testing is scheduled for November.

Why Ganneesh Ramaa, manager, Luxury Tours Malaysia, said: “It is meant to enhance the services of our tour partners by offering more options on hotels and restaurants within the same location and within the same price range; our partner’s logo will appear on the welcome page.” Being paperless, it also helps save the environment, he added.

For travel agencies intending to go big on mobile…

Travelport Mobile Agent

Targeted at TMCs as well as business/leisure travel agencies, the app allows travel consultants to make bookings for their customers from handheld devices by obtaining quick access to Travelport’s Travel Commerce Platform.

The latest version features enhanced interface, graphics, content and speed, as well as customisable keyboard quick keys, ViewTrip integration and a newsfeed section with relevant news articles from travel publications.

Travelport ViewTrip Mobile
A mobile itinerary management and planning tool offered to agencies currently using Travelport ViewTrip. It provides travellers with flexible itinerary management throughout their entire journey through timely push messages, flight alerts, a trip list, a currency conversion tool, as well as airport, travel and events guides, among others. The itinerary automatically appears on the customer’s mobile device when it is emailed to them by their travel consultant.

The app was designed to enable travel consultants to extend service and support to their customers beyond the initial booking, improving value and customer communications.

TripCase
Offered in Asia-Pacific by Abacus (of which Sabre is a shareholder), this consumer travel itinerary app pulls together all elements of a trip such as flight, hotel and rental car bookings for easy viewing. Travellers automatically get updates such as gate details or flight schedule changes, and can easily share their itinerary with friends and family.

The corporate version of the app is used by American Express Travel to keep its business travellers informed. There is also an airline version.

Sabre Red Workspace on mobile
Last year, Sabre launched its iPad app for travel consultants to sync their Sabre desktop solution, Sabre Red Workspace, to their mobile device, effectively allowing them to book and manage travel anywhere on the go.

Sabre also launched its own agency app store, Sabre Red App Centre, giving travel consultants the ability to download a wide range of apps for their job.

Abacus MobileConnect
This travel agency tool was launched in mid-October, allowing companies to create their own branded apps.

Functions include check-in prompts, trip alerts, flight status and contextually relevant destination information such as weather and events, together with personalised promotions in-trip. In addition, a Call for Help function uses GPS data to alert next of kin to difficulties, and allows agencies to offer a 24/7 helpdesk via VoIP, IM or SMS.

For Asia’s hyper-social markets, there is also a Send Postcard option to share images with family and friends, as well as the agency for reviews. The app will also integrate with popular social media platforms.

Additional reporting by Caroline Boey, Paige Lee Pei Qi, Rohit Kaul, S Puvaneswary, Kathy Neo

Malaysia welcomes 2015 with new tourism campaign

By S Puvaneswary

October 23, 2014

WITH the end of Visit Malaysia Year 2014 in sight, Malaysia has prepared a new tourism campaign, Malaysia Year of Festivals 2015 (MyFest 2015).

“Themed Endless Celebrations, the year-long calendar offers more than 200 events related to cultural festivals, arts and music showcases, food promotions, shopping, and sports,” said Azizan Noordin, deputy director general (promotion) of Tourism Malaysia.

Events will include the KL Light Festival in January, Mah-Meri Festival and Formula One Festival, both in March, the Penang World Music Festival in April, Magic of the Night in May, the Rainforest World Music Festival in August, Malaysian Motorcycle Grand Prix in October, and Malaysia Year End Sale in November and December.

MyFest 2015 will be promoted by Tourism Malaysia to travel consultants overseas with the World Travel Market in London next month and to consumers through advertisements on London’s buses and taxis.

The campaign is expected to help Malaysia secure the targeted 29.4 million tourist arrivals and RM89 billion (US$27.3 billion) in tourist receipts for 2015.

These figures are one milestone in the Malaysia Tourism Transformation Plan, which aims to achieve 36 million tourist arrivals with RM168 billion tourist receipts by 2020.

Fly-cruises take off in Ha Long Bay

By TTG Asia

October 23, 2014

HOT on the heels of launching Hanoi-Ha Long Bay seaplane flights in September, Hai Au Aviation is now jointly promoting a fly-cruise option with Emeraude Classic Cruises.

Offered through December 31, the two-part itinerary combines a 10.00 flight from Hanoi’s Noi Bai airport and touch down on water at Tuan Chau Marina with a noon departure onto Ha Long Bay on the luxury cruise Emeraude.

At 11,697,000 dong (US$551) per person, the package includes a one-way flight from Noi Bai to Ha Long, a private cabin for two, all meals, the cruise, shore excursions, and overland transportation back to Hanoi in a private vehicle. Travellers who prefer to fly can take a 16.30 flight for an additional charge.

“The Hai Au alternative opens up a whole new market segment for Halong Bay,” said Kurt Walter, the Emeraude’s general manager. “For many, the prospect of a three- to four-hour overland drive from Hanoi to Halong Bay is an insurmountable hurdle.”

Hai Au launched its first flights between Hanoi and Ha Long Bay on September 9 on a 12-seater Cessna Caravan C208 EX.

Ascott seeks bigger presence in Australia through Quest partnership

By TTG Asia

October 23, 2014

THE Ascott Limited has joined hands with Australia’s largest serviced apartment provider, Quest Serviced Apartments, to bolster its presence Down Under, where it presently operates five serviced residences.

Under the terms of an agreement signed by both parties, over the next five years Quest will source for new property acquisition opportunities with Ascott holding the right of first refusal. Following that, Quest will provide a lease for the properties and operate them under franchises holding the Quest brand.

Lee Chee Koon, CEO of Ascott, said: “Ascott has an established presence in Australia where our serviced residences enjoy a strong demand from travellers to the country, and we see vast potential growth opportunities for serviced residences. Serviced apartments represent over 25 per cent share of the accommodation market in Australia where Quest is a leading player.

“Through our strategic partnership with Quest, we can leverage each other’s knowledge and contacts in Australia to rapidly extend our presence in the growing market for international quality serviced apartments. We also expect a stronger pipeline of properties in Australia for Ascott to acquire.”

In a separate agreement, Ascott’s real estate investment trust is acquiring three operational serviced residences in Greater Sydney from Quest, at a price tag of A$83 million (US$72.7 million).

The properties – the 140-key Quest Sydney Olympic Park, 81-unit Quest Campbelltown, and Quest Mascot with 91 units – will continue to run under the Quest brand.

Ascott has also agreed to buy a 20 per cent stake in Quest for A$28.8 million.

“We have formed strategic alliances with leading developers such as Vanke and Yuexiu to combine our expertise to drive Ascott’s growth in China. Our partnership with Quest is another strategic move that will further propel Ascotte’s growth,” explained Lee.

He added that Ascott will also seek investment opportunities in key markets such as Singapore, India, South-east Asian capitals, Paris, London, and key German cities.

Ibis Styles debuts in beach destination Krabi

By TTG Asia

October 23, 2014

ACCOR has opened the first international economy hotel in Krabi this week with the opening of the 206-room Ibis Styles Krabi Ao Nang.

The hotel is located at the resort destination of Ao Nang, Krabi, 20 minutes from Krabi International Airport. It is also located near attractions such as James Bond Island and Railay Beach, which is a 15-minute boat ride from the hotel.

Ibis Styles Krabi Ao Nang features Standard and Family rooms, with the latter including games and bunk beds for kids. Rates are all-inclusive with an all-you-can-eat breakfast at all-day international dining Cliff Café & Restaurant, and free Internet access.

Recreational facilities include a swimming pool, a kids’ club, bicycle rental services, and two function rooms.

The hotel is celebrating its opening with an introductory rate starting from 2,374 baht (US$ 73.40), which includes a buffet breakfast for two and Wi-Fi connection throughout the hotel. Find out more at www.ibis.com/thailand.

Myanmar offers e-visas to 24 more nations

By Sid Dhartha

October 23, 2014

CITIZENS of 24 more countries are now eligible for Myanmar’s recently implemented e-visa applications system, announced the Ministry of Hotels and Tourism last week.

Since early October, the following coutries were allowed to use the e-visa system: Austria, Bulgaria, Croatia, Cyprus, Estonia, Greece, Hungary, Ireland, Latvia, Lithuania, Luxembourg, Malta, Portugal, Romania, Slovakia, Slovenia, Sweden, Argentina, Chile, Peru, Venezuela, Panama, Mongolia, and Colombia.

“We believe that opening the e-visa service to these nationalities will attract a bigger number of arrivals to our country. We plan to add more countries in the near future,” a spokesperson from the Ministry of Population and Immigration told TTG Asia e-Daily.

Myanmar introduced its first-ever e-visa system on September 1 to boost the already rapid rate of growth in tourism.

Welcoming the move, Phyoe Wai Yar Zar, managing director of All Asia Exclusive Travel Yangon, said: “I believe this is a very positive step by the ministry since Eastern Europe is one of the potential markets for Myanmar and we can expect more arrivals from there as a result.

He added: “Sweden is a country Myanmar should think of targeting for high-end travel.”

SITE global conference to be held in New Delhi

By Shekhar Niyogi

October 23, 2014

THE Society for Incentive Travel Excellence (SITE) will for the first time hold its annual global conference in New Delhi in October 2015, focusing on India as an inbound MICE destination.

The announcement comes ahead of the 2014 conference scheduled for November in Rotterdam, where the SITE India Chapter is hosting a Destination Luncheon.

Anup Nair, president, SITE India Chapter, said: “The SITE Global Conference 2015 will bring together travel professionals who will find an exciting canvas on which to create unparalleled motivational experiences…We are gearing to offer a unique platform for professionals in the incentive industry to network.”

In a first for Asia, Rajeev Kohli, joint managing director, Creative Travel, is on the International Board of SITE as the president-elect for 2016.

Sushil Wadhwa, chairman, Platinum World, said India hosting the conference would give the country “a global visibility of proportions hitherto unexplored”.

“Rationalisation of indirect taxes by the Indian government will give us a leg-up in being more competitive in our bids for global MICE,” he added.