THIRTY new upscale hotels will commence operations in Chengdu within the next three years – 12 of which open in 2015 – to add 3,342 more guestrooms to the city’s inventory.

The increased competition is both a source of opportunity and concern for local hoteliers.

InterContinental Hotels Group director of operators, Sichuan, Chongqing and ETG portfolio hotels, David Lim, said that Chengdu’s rapid economic development has boosted demand for international luxury hotels.

Such demand is likely to rise as the influx of investments continues to sustain Chengdu’s economic growth.

Grand Hyatt Chengdu at the Chicony Plaza’s general manager, Liang Jian Bang, commented that while room rates could dip slightly as a result of additional supply, there remains adequate scope for competition.

The newcomers will trigger competition in the market for clients and manpower, predicts Howard Johnson Agile Plaza Chengdu’s marketing and sales director, Tao Bao Lin.

Collective action by all industry players is the only way to avoid the inevitable price war, said Tao.

Ren Ke, marketing and sales director at Grand Hyatt Chengdu, added that hotels opening this year should adopt flexible pricing strategies, instead of a blunt approach, towards MICE and leisure sales.

The flourishing MICE market is large enough for all parties to thrive, said Ren.

According to STR Global’s 2014 statistics, average occupancies at five-star hotels in Chengdu grew by a modest two per cent while room rates declined by nine per cent, a change attributed to increasing competition in the industry.

Article By Jessie Liu. Translated by Ong Yanchun from the original TTG China e-Daily, January 1, 2015 

US ADVENTURE travel specialist Zegrahm Expeditions is launching a 20-day chartered luxury expedition to Philippine island destinations that are difficult to access by land.

Running from February 7-27, 2015, the cruise on board Noble Caledonia’s 100-pax MS Caledonian Sky will depart Sandakan, Malaysia with 70 North American visitors.

There will be explorers, divers, birdwatchers, geologists and naturalists joining the trip, said Lourdes Banzon, executive vice president and COO, Sharp Travel Service, Zegrahm’s partner and groundhandler in the Philippines.

“It is the longest expedition for a cruise in the Philippines,” said Benjie Bernal, OIC for inbound and outbound tours, Sharp Travel Service, who remarked that most leisure cruise liners visit the Philippines for about three days and call on major ports.

Travellers on this expedition, on the other hand, Bernal said, will have the chance for immersive experiences in areas like Sibuyan Island in Romblon, Capul Island in Samar, Limasawa in Sogod Bay, Leyte and Camiguin Island, some of which are difficult to reach overland.

Meanwhile, river cruise operator Noble Caledonia is selling a 13-day leisure programme in May featuring Japan, Taiwan and northern Philippines, another first, Bernal confirmed.

Prior to that, MS Caledonian Sky, which has visited the Philippines before, will again be spending two days in Palawan, this time on the tail-end of a 16-day Noble Caledonia leisure cruise highlighting Indonesia and East Malaysia.

BEST Western International is showing no sign of rest with the opening of Best Western i-City Shah Alam in Malaysia, its sixth hotel in the country.

“As the capital of the state of Selangor, Shah Alam is a key economic hub in Malaysia. Located just 25km from Kuala Lumpur and 30km from Kuala Lumpur International Airport, the city is at the heart of the country’s development and provides an ideal setting for Best Western’s new generation of contemporary hotels,” said Ron Pohl, Best Western International’s senior vice president of brand management & development.

The 18-storey Best Western i-City Shah Alam houses 214 rooms and suites, all equipped with modern amenities such as 32-inch LCD televisions, mini bars, working desks, tea- and coffee-making facilities, and Wi-Fi access.

Event and business facilities consist of three meeting rooms, able to accomodate up to 180 pax in total.

The selection of F&B options include an all-day dining restaurant and a cafe, both Asian and international cuisine.

“Malaysia is an incredibly exciting market for Best Western International. With five hotels already open in the country and eight more in the pipeline, we look forward to serving the needs of ever more Malaysian and international guests in future,” Pohl said.

The opening comes on the heels of the company’s announcement of Best Western Premier Ion Delemen at Genting Highlands in October last year.

NEW Indian airline Vistara has confirmed that it will begin operations this week and revealed the sectors it will run.

Starting January 9, the airline will launch Delhi-Mumbai, Delhi-Ahmedabad and Mumbai-Ahmedabad flights on Airbus A320 aircraft in a three-class configuration of economy, business and premium economy – a first for a domestic airline in India.

However, the airline did not respond to an email enquiry from TTG Asia e-Daily regarding the frequencies.

It has also kicked off a frequent flyer programme, Club Vistara, that awards travellers points for ticket prices rather than miles travelled.

Tata-SIA Airlines, the joint venture between Tata Sons and Singapore Airlines, received its air operator permit for Vistara last month.

Meanwhile, India’s travel trade is welcoming the added competition to the frustrated aviation industry. “Economy class passengers can expect a more robust offering than with no-frill airlines. Increased competition and capacity are ultimately a good thing for the traveller, and the overall health of the industry,” said Ranjeet Oak, senior vice president-flights, MakeMyTrip.com.

Neelu Singh, COO, Ezeego1.com, said: “The concept of premium economy is a first of its kind in India and will certainly attract a lot of middle managers looking for more comfort than economy class but cheaper fares than business class.

“From an industry perspective, it is definitely good to have one more player in the full-service category which will give more choice to the customers.”

However, the airline is expected to face tough competition on the sectors it is operating. IndiGo has introduced a fifth daily flight on the New Delhi-Ahmedabad sector on January 4 and a sixth Mumbai-Ahmedabad flight on January 5.

ONE of the last undeveloped parcels of land along Bangkok’s Chao Phraya River has been earmarked for development into a luxury hotel and residential project that will be managed by Four Seasons Hotels and Resorts.

Four Seasons Hotel Bangkok at Chao Phraya River and Four Seasons Private Residences Bangkok at Chao Phraya River will come up along one of the longest waterfront promenades in the Thai capital to occupy 350m of riverfront space.

Valued at 32 billion baht (US$970.9 million), the project is Bangkok-based international real estate developer Country Group’s largest project to date.

The hotel will offer over 300 rooms and suites, restaurants and other hotel facilities, while the residence is to consist of more than 350 all-corner units in a 73-storey building.

“Through our collaboration with Four Seasons, our aim is for Chao Phraya Estate to redefine the waterfront experience in Bangkok and Asia,” said Ben Taechaubol, CEO of Country Group Development.

“Our contribution to the revival of the Chao Phraya River and skyline of Bangkok reflects our passion and respect for our city’s rich culture and history and our desire to see it be renowned as one of the greatest urban waterways in the world,” he said.

Michael Crawford, president, Asia-Pacific, Four Seasons Hotels and Resorts, said: “Bangkok continues to be a destination of choice for business and leisure travellers and this property will embody our commitment to innovation and exceeding the expectations of our discerning guests.”

Four Seasons Hotel Bangkok at Chao Phraya River and Four Seasons Private Residences Bangkok at Chao Phraya River are expected to be completed by end-2018.

The hotel operator’s existing property in the capital, Four Seasons Bangkok, will be rebranded by owner Minor Hotel Group to become Anantara’s new flagship hotel on March 1.

TWO European DMCs are reaching out to the markets of Malaysia, Indonesia, Singapore and Brunei to promote their maiden Muslim-friendly tours in Europe.

Spanish DMC, Premium Incoming, has introduced a guaranteed seat-in-coach 11D10N Treasures of Islamic Spain tour to Andalusian cities such as Seville, Cordoba, Granada – once ruled by Muslims leaders – as well as Madrid, Valencia and Barcelona.

Meanwhile, Kompas, an established company in the Balkan region, has launched the 11D10N itinerary Bosnia & Herzegovina, Croatia and Slovenia Muslim Friendly, taking tourists to historical and natural sites.

Barbara Sette, managing director of Sette Reps – the appointed sales office for Kompas and Premium Incoming in South-east Asia – said both itineraries cater to the needs of Muslim travellers: four- and five-star modern hotels in the city area; a slower itinerary with more free time for shopping; a prayer stop included every day; and restaurants that serve halal-certified meat.

“We have been working on FIT (private basis or seat-in-coach) and group departures with specialised Muslim agencies from Malaysia and Indonesia for a while, but this is the first time we launch SIC (tours) only targeting Muslim clients,” she said.

Asked why South-east Asia was picked over the Middle East as target markets for the tours, Sette replied: “First, Indonesia is the country with the largest number of Muslims in the world. Second, we are already present in South-east Asia and well known. Knowing the market and their needs, we know this product can be attractive for our agencies that already use us as their partner in Europe.”

The new itineraries were introduced to Indonesian outbound travel consultants in October, and to Singapore, Malaysia and Brunei last month. Sette is still planning targeted sales visits promoting the tours to travel consultants.