ACCOR is taking over management of the landmark Admiral Hotel along Roxas Boulevard and will redevelop the property to be included in its high-end MGallery collection.

Patrick Basset, COO for Accor Thailand, Vietnam, South Korea, Cambodia, Laos, Myanmar and Philippines, said: “(Admiral Hotel) perfectly fits within the characteristics of an MGallery Collection hotel, with its historic elegance, top-class facilities and prime location in the centre of Manila.”

The 76-year old hotel, part of Anchor Land Holdings’ Admiral Baysuites project, will have 150 rooms when it opens in 4Q2016. It was named after US admiral George Dewey and in its heyday, was the address for dignitaries, royalty and distinguished foreign guests.

“The MGallery brand will fill the gap for upscale, sophisticated guests looking for boutique-type accommodations in Manila that have a unique story, offer a personalised experience and are superbly located,” said Basset.

He said having an MGallery in Manila is part of Accor’s “growth strategy (which) has always been to establish flagships for each brand in key metropolitan centres in the region and expand from there”.

Admiral Hotel is Accor’s fourth property in Manila after Sofitel Philippine Plaza and two hotels opening within the year, Novotel Araneta and Mercure Ortigas.

FULL-SERVICE airlines are flying in to capture a slice of the lucrative ancillary pie as it continues to grow, but kinks in how such products are distributed still need to be ironed out.

According to an analysis by IdeaWorksCompany and CarTrawler, global ancillary revenue is estimated at US$42.6 billion in 2013, up from US$36.1 billion in 2012 and almost double the US$22.6 billion collected in 2010.

Ancillaries will account for six per cent of total airline revenue in 2013, up from 5.4 per cent in 2012, they predicted.

John Chapman, chief commercial officer, Jet Asia Airways, said: “(Full-fledged carriers) have not been that great at offering ancillaries which is something that the LCCs have been doing very well but this has to be our goal if we want to increase our revenue.

“We cannot miss out on the opportunity for additional revenue, but at the same time we do not want to devalue the full product that we already offer. Some ancillary items that we are now looking to offer could be lounge passes, early boarding privileges and exit row seats,” he said.

Jay Sorensen, president, IdeaWorksCompany, said: “A la carte activities, such as those linked to fees charged for checked bags, on-board cafes and early boarding privileges, are a big part of the ancillary revenue story.”

Noting that Delta Air Lines’ “economy comfort seats” are its best-selling ancillary item, Chris Phillips, managing director – distribution strategy, said many travellers are willing to fork out more for extra legroom, a later boarding time and a chance to sit at the front of the plane.

The same analysis reported that slightly more than half of global ancillary revenue is sold to consumers via airline websites, onboard, and increasingly through travel consultants and OTAs.

Despite rising demand for ancillary items, Mario Kriebel, vice president commercial payment solutions, BCD Travel, pointed out that GDSs only offer certain ancillary products at present, resulting in travel consultants having to operate outside of the system.

He cited the example of airport limo pick-up not being available through the GDS. “We definitely need the ability to book these items now because travellers are expecting them already.”

Delta Air Lines’ Chapman said: “The challenge now is to help differentiate airlines’ products in a seamless manner to the travellers.”

SINGAPORE-BASED Ascendas Hospitality Trust (A-HTRUST) has purchased the Namba Washington Hotel Plaza in Osaka for 8.9 billion yen (US$87 million).

The flagship property of domestic hotel chain Washington Hotel is A-HTRUST’s second acquisition in Japan since the company’s IPO in July 2012.

Namba Washington Hotel Plaza offers 698 rooms and two F&B outlets. The property’s location in Osaka city is a gateway to other tourist destinations in the Kansai region such as Kobe, Kyoto and Nara.

Atsushi Murai, senior vice president, investment sales Asia, JLL Hotels & Hospitality Group, which brokered the deal, said: “We have seen hotel trading performance in Japan improve in line with the expansion of the domestic economy and renewed growth in corporate and leisure travel.

Investors are showing a greater willingness to take on more risk as the global economy regains confidence which has underpinned the compression of yields.

We are seeing significant interest from private investors, owner-operators, listed companies and institutional investors from both domestic and regional markets and we expect this trend to continue throughout 2014 as further opportunities come to market.”

THE Tourism Authority of Thailand (TAT) is coming up with a slew of new initiatives, including streamlining the permits acquisition process and holding roadshows, to persuade film-makers to bring their productions to Thailand.

Thawatchai Arunyik, governor, TAT, said: “International film production in Thailand both directly and indirectly helps to showcase the kingdom as one of the world’s most popular tourist destinations and attracts further visitors who might want to experience the film location themselves.”

He cited the example of popular Chinese movie Lost in Thailand that resulted in new direct flight routes to Chiang Mai and higher visitorship from China (TTG Asia e-Daily, January 25, 2013).

To attract even more film productions to Thailand, the Ministry of Tourism and Sports’ Department of Tourism (DOT) is putting together a one-stop service to film-makers. The Ministry will work with various public and private organisations such as the Customs Department and Foreign Film Production Executives Association, to streamline the application process for permits and permissions.

Ubolwan Sucharitakul, director of the tourism department, said: “We are also organising several roadshows overseas to raise the profile of the kingdom as a country with the readiness, skills and expertise to help film-makers.”

Other incentives such as tax exemptions for foreign actors who have starred in films shot in Thailand will be rolled out. Training sessions and seminars for local film crews on international collaboration and production skills will also be arranged.

According to TAT, some 717 foreign film productions were shot in Thailand last year, contributing 2.2 billion baht (US$67.6 million) to national coffers. India was the largest source market with 150 titles followed by Japan with 140. These comprise feature films, documentaries, music videos and television shows.

MALAYSIA-BASED Malindo Air was made to turn back yesterday while plying a domestic route due to an engine fire.

According to news agency AP, the airplane was travelling from Subang Airport to Terengganu when the vehicle’s fire detection system went off.

A statement from Malindo said that the plane returned to Subang safely without injury to anyone on board but the cause of the fire remains unknown.

The incident comes as the Malaysia Airlines’ MH370 saga continues to unfold. While authorities have concluded that MH370 ended its flight in the southern Indian Ocean, the search for the wreckage is still ongoing (TTG Asia e-Daily, March 25, 2014).