Myanmar inaugurates pop-up project in Yangon

April 14, 2014

MYANMAR’S first pop-up project, TS1 Yangon, opened on April 5 in the heart of Yangon city, with an aim to further connect the country with the global communities as well as spearhead urban renewal and cultural exchange in the country.

Developed by Pun & Projects, the project includes three distinct spaces. Rotating regularly will be different exhibitions in the gallery space, different retailers in the retail space and different menus in the restaurant space.

“Ultimately, this project will demonstrate downtown Yangon’s rejuvenation and illustrate how collaboration by people with distinctive skills and voices can be merged to revive this historic neighbourhood,” said Ivan Pun, founder of Pun & Projects.

The cultural component of the project, TS1 Gallery, inaugurates with an exhibition of work by celebrated Myanmar artist Phyoe Kyi, and is slated hold up to seven exhibitions within the next year, featuring up to 15 artists from all over Myanmar.

Retail component Myanmar Made offers merchandise carefully selected to promote Myanmar’s traditional craftsmanship but designed with a fresh perspective.

Both TS1 Gallery and Myanmar Made is open to the public Monday through Sunday, 10.00 to 20.00.

Pun revealed the cuisine component, Port Autonomy Restaurant and Bar, is set to open this spring.

Additionally, the space will play host to carefully planned cultural and social activities, such as community education, concerts, literary readings and performances.

Yamin Htin Aung, founder of Logi Media, Myanmar’s biggest travel publication, welcomes the project: “The location (of the project) is another attraction. We need more unique products like this in Yangon and in other tourist destinations in our country.”

Marriott to debut Courtyard in Malaysia

By S Puvaneswary

April 14, 2014

MALAYSIAN company Apple 99 Development, a subsidiary of Apple Vacations Group, has collaborated with Marriott International to develop the country’s first Courtyard by Marriott in Malacca.

The 24-storey hotel, scheduled for completion in 2017, will comprise 284 rooms, a pillarless multi-function ballroom and an executive floor.

Apple 99 Development director, Desmond Lee, said Marriott International will manage the hotel for 20 years.

Lee, who is also managing director of Apple Vacations Group, said he is keen for the Group to own and manage hotels in Singapore, Indonesia and Japan in the future.

Currently, the Group owns and manages three boutique hotels of less than 60 rooms each in the commercial and business Bukit Bintang area in Kuala Lumpur.

Its fourth property, Le Apple Boutique Hotel at the city centre of Kuala Lumpur, is scheduled to open in July with 200 rooms, according to Lee.

Free-rider dilemma

By Greg Lowe

April 11, 2014

DMCs are torn over charging fees for incentive proposals to prevent opportunistic clients from stealing ideas and going direct to suppliers

As incentive budgets become increasingly squeezed amid intensifying competition and a sluggish global market, DMCs are seeing a rise in prospective clients who request for tour and incentive proposals only to go straight to suppliers in a bid to cut costs.

While not a new issue to the travel trade, this trend is further compounded by the growing ease of access to suppliers via the Internet, which increases the likelihood of clients harvesting ideas from DMCs and then organising their own travel programmes.

Proposals to counter this prevalent issue were discussed during the 2014 annual general meeting of euromic, a Europe-focused association of 36 DMCs, in Cairo, Egypt earlier this year in January.

Ideas mooted included charging for proposals and shifting DMCs’ emphasis away from packaging products to becoming travel consultants who charge a fee for their services.

Gloria Spotti, executive vice president of Events.com, said her company had been successful in charging clients a conceptual fee at the proposal stage and recommended other travel specialists to follow suit. “If a client wants us to develop a programme for them, why should we do that for free?” she questioned. “It costs us time and money.”

DMCs generally like the idea in principle, but many believe their clients would not stump up the fee, a view reflected by those on the demand side of the process.

David Sand, CEO of Uwin Iwin Incentives and former president of the Society of Incentive Travel Executives, said he had yet to see a DMC requesting payment for a proposal and added that specialists who started to do so would likely lose business as a result.

Echoing Sand’s sentiments, a senior buyer from a major international company in the US, commented: “I feel for the DMCs. We always work with them in an upfront way and would not take their ideas, but I can’t see the idea of paying for proposals working.”

At the same time, the trade in Asia faces similar problems and most travel specialists struggle with finding a solution that protects their company without deterring new business.

A senior executive at a Bangkok-based DMC, who requested anonymity, said it was possible to sniff out and deter prospective clients who were likely to use the request-for-proposal process as a free ideas grab. “There are ways of dealing with these clients; we will spend very little time on the proposal and ramp up the costs so they will be priced out, or tell them there is insufficient room capacity for their needs,” he said. “But we can’t just turn the business down.”

He added: “The problem is responsible clients end up footing the bill for those who take our ideas.”

Just as Sara Merino, director of sales and marketing at Spanish Heritage, shared that some clients request for a London-based programme only to go direct to suppliers because they think “England is so close they can do it themselves”, travel firms in South-east Asia are seeing such trends too.

Exotissimo Travel Thailand MICE manager, Tim Upchurch, said: “Some markets have no problem of getting us to do the work while having no intention of doing business. This is not always about stealing the ideas, sometimes they just need another proposal (for presentation) even if they have pretty much decided they want to go to a completely different destination.

“Singapore is probably the worse (for ideas theft) – it’s a cultural thing. They want to organise everything themselves. We don’t really see this from other markets like Hong Kong or Vietnam,” he added.

Upchurch said the problem was relatively rare with longhaul clients “who really see the value in what a DMC adds”, and rarer still with corporates who were much more willing to accept a consultancy plus service fee approach.

One additional problem with regional clients who are less opposed to taking the specialists’ ideas for free is that they are often part of a global company that may generate significant business for a DMC. “If we upset the Singapore office, we risk upsetting the global head office and it’s just not worth it,” he said.

When asked about the likelihood of incentive houses and regional clients paying for proposals, Upchurch replied: “They wouldn’t wear it. A Singaporean client certainly wouldn’t pay for it.”

Likewise, Hans van den Born, managing director of Diethelm Travel Thailand, said the company was also experiencing the same problem. While he would like to charge for proposals, it is unlikely to happen not only because clients would not support the move, but also due to a lack of solidarity among DMC players.

“I certainly won’t be the first to implement it (charging for proposals),” he said. “You may think you have an agreement with your colleagues, but you can guarantee that if most companies start charging there will always be someone who stops charging to get more business. Then you all have a problem.”

Talent scouting for South Beach

By Raini Hamdi

April 11, 2014

South Beach Consortium is set to raise Singapore’s ‘cool’ level when it soft-opens in 1Q2015. The search for talent to run the hotel is on. CEO Aloysius Lee talks to Raini Hamdi about the project and finding people

What sort of talent are you looking for?
As the product is different, we need people who will buy into its concept. Ours is a HIP hotel, i.e. Highly Individual Place. (When conceptualising it), we were looking at the Hudson in New York, Delano in Miami, SLS Hotel Beverly Hills and Le Royal Monceau (Raffles Paris). These hotels really bring life, energy and connectivity to their public spaces. They understand people want to be ‘alone together’ (laughs) or, as some call it, ‘isolated togetherness’.

What an oxymoron (laughs).
Yes. Four and a half years ago, when the executive chairman (Kwek Leng Beng, City Developments Limited) spoke to me about such a hotel concept, it was still a fresh trend. Now of course most hotel refits are going along these lines.

Won’t you be common then?
In Asia, it’s not done to the same extent yet. Asian hotels are still largely traditional – the typical big lobbies, halls, etc.

Our three pillars are, firstly, we are a designer hotel, not only in the sense that the hotel is designed by Philippe Starck. We have, for example, the best IT design in-house right now. If you are IT-savvy, you will be extremely happy staying with us; we have the technology, for example, for the TV to be mirrored onto your own device. If you are not IT-savvy, you will also be happy as we are not one of those hotels where you have to figure out how to work the technology.

Our second pillar is to offer a fresh dining experience. We will hopefully sign up a concept from Europe soon – not a celebrity restaurant – but a stylish, contemporary experience that combines shopping and dining in a space of 30,000 sq ft (2,787m²).

Thirdly, we will have a lot of imaginative social spaces to cater to the need for ‘isolated togetherness’. We even have such a position as head of social space.

Are you reinventing hotel positions to suit the times and needs of such a hotel as this?
Yes. We will have, for example, an EAM – sales & marketing services, and all the customer-facing departments will be under him – sales, branding, revenue, catering, front office, reservations, concierge, VIP services (many of these functions are usually under operations).

Service should be part of sales and marketing. When I started my career with Singapore Airlines in 1972, I believed the airline had all services – cabin crew, amenities, menus and so on – going under marketing, not operations. Marketing has a stronger feel of the market, which can drive back to operations.

So what does your EAM – operations do?
They cover F&B – again, a departure from the common practice – housekeeping, engineering and security. So in effect we have two EAM positions which will enable the executives to become a future GM. This is what we want to do as well, i.e. groom talent.

How many people do you need and how are you going to get them in this labour crunch?
We’re recruiting around 60 people from now till June, including the GM and head of human resources. By September the full recruitment will start for around 500 people.

It is difficult to find people. On the other hand, we must be innovative with our job offerings, by thinking differently about positions, by offering the right people an advancement when they join us, not just a lateral transfer, so they are motivated by a real new challenge.

We’ve even set up a good pre-opening office at the site – now we’re just waiting for the bodies to come in (laughs).

What advice do you have on working with Asian tycoons?
Firstly I’ve observed that tycoons really love talent and are passionate about the business. They are open, and they like to share their thinking, philosophy, vision and strategy. And they hope you can deliver it for them.

Sometimes it may be that they are so far ahead and running so fast – after all, they are more seasoned, successful and have seen the world – that it is difficult for the executive team members to follow. But I believe when they speak, there is a lot of wisdom and big value at the end of the day, even if they can’t justify it there and then.

CDL also owns St Regis and W in Singapore. How would you position South Beach in this collection?
St Regis is traditional luxury while W is hip, which is closer to South Beach, but in a different environment.

What rate are you looking at?
The current rates of hotels in the neighbourhood are around S$400 (US$317) to S$500.

What’s the opportunity with travel agencies with this hotel?
Fundamentally, agencies need products. We’re creating a new product, probably the first in Asia that offers this kind of a lifestyle choice. With high occupancies in Singapore, we are a serious choice for all segments, be it MICE, bleasure, leisure, etc. Most new hotels that are opening are smaller. We have 654 rooms and are directly connected to Suntec Singapore via an overhead bridge.

You spent a large part of your career as a travel agency CEO (Lotus International, Morning Star Travel Services and The Travel Advisors Hong Kong). What would you do if you were a travel agency CEO today?
It depends on the niche, as there are different challenges for each. An inbound player is subject to overseas clients and must spend a lot on trade show marketing. An outbound player gets good cashflow through sales but must spend a lot on advertising. A wholesaler has low margins.

Some agencies are too ambitious, going into all areas and losing their core strength. While it is important to be sizeable, they always have to compete with smaller agencies that have lower costs and compete on price. This has gone on for so long.

But I still think a travel agency is a good business to be in. You have all the products to choose from, bundle and promote. So the question is to think ahead about which markets will be the fastest-growing and be prepared to cater to that market. I foresee, for example, that in the next 10 years, the healthy and wealthy market will be big. As well, in Asia, the two biggest markets of the future will be the ageing population and youths.

10 NEED TO KNOWS ABOUT LEE

• Who is in your family? One wife, one son

• What do you do for fun? Gossiping

• Ideal vacation? Places that provide the latest lifestyle trends

• How do you book your own leisure trips? A combination of travel agency and direct Internet booking

• What are you reading? Social and economical impacts of the growing healthy and wealthy retiring community

• How do you stay healthy? Eat and walk

• Favourite food? Shanghainese wanton

• A bad habit you can’t kick? Eating too much

• Something that never fails to annoy you? Laziness

• Most people don’t know you can do… Ballroom dancing

FAST FACTS: SOUTH BEACH DEVELOPMENT
• A mixed-use contemporary/ecological development comprising over 46,000m² of Grade A office space; 190 residential units; a 654-room hotel designed by Philippe Starck; a retail concept; and a private membership club

• Developed by City Developments Limited (CDL) Singapore and IOI Corporation Berhad

• Located opposite Raffles Hotel Singapore on the Beach Road side and is directly connected to Suntec Singapore via an overhead bridge on the Nicoll Highway side

• A heritage site formerly comprising three army blocks and the NCO Club, a favourite haunt for army, naval and air force offices famed for its Olympic-sized swimming pool

• Architecture by Foster + Partners and Aedas

Note: The hotel is currently called The South Beach. A decision has yet to be made on a third-party management, franchise or marketing representation

Intelligent solutions the future of aviation industry: SITA

By TTG Asia

April 11, 2014

MORE than 50 per cent of passengers would use their mobile phones to check flight status, baggage status and airport directions by 2016, and the majority of airlines and airports would offer these services, according to Smart Thinking, a research report released by SITA yesterday.

The report also says that 100 per cent of airlines and 90 per cent of airports are investing in business intelligence solutions to provide the intelligent information across their operations, which these, and other services, demand.

By end-2016, bag status updates will be offered by 61 per cent of airlines; 79 per cent of airports will provide status notifications, such as queue times through security and walking time to gate; and more than three quarters will also be providing navigation at the airport via mobile apps.

Nigel Pickford, director for market Insight, SITA, said: “Our research has clearly shown that the move to smartphone apps and mobile services is well underway. But many of the services that airlines and airports are planning are heavily dependent on their ability to provide more meaningful data and insight – providing passengers and staff the right information at the right time.

“Efforts are being made across the industry to collaborate and SITA has established the Business Intelligence Maturity Index to benchmark the progress.

“We asked airlines and airports to measure themselves in four categories of business intelligence best practice for this index: data access and management, infrastructure, data presentation and governance. Our analysis shows that on average the industry is only halfway to achieving best-in-class and further progress is needed.”

He also highlighted: “Airlines and airports face the issue though that while passengers are very keen to access information about their journey, they are also sensitive about privacy. The smart use of non-intrusive passenger information, however, will provide benefits to airlines and passengers.”

Looking ahead, the report also points out that the combination of business intelligence and predictive analysis will help improve passenger experience, while optimising the use of infrastructure and space at airports.

Airlines and airports will be more proactive by analysing past events and combining live data feeds from multiple sources to predict future events and take preventative action before they occur, thereby reaping significant benefits for passengers and the industry alike.

Curtain goes down on Sentosa’s Songs of the Sea in May

By TTG Asia

April 11, 2014

SENTOSA’S Songs of the Sea will make its final performance on May 4, 2014 after a seven-year run, while a new multi-sensory production will debut in June.

More than 5,000 tickets at a 50 per cent discount started being offered on Sentosa’s Facebook page yesterday, along with an Instagram contest where participants stand to win a backstage visit. Premium seats are available at S$18 (US$14) per person, while standard seats are at S$15 (standard rate), and S$12 (for local residents).

The 25-minute show produced by events company ECA2 features a live cast, dramatic effects and pyrotechnics. Reflecting Singapore culture, it is performed daily at 19.40 and 20.40 to audiences in its outdoor theatre, which sits up to 2,500 people.

Sentosa Development Corporation said it would share more details of the new show, also produced by ECA2, closer to the date.

Regional markets to soar in Siem Reap next week

By David Andrews

April 11, 2014

SIEM Reap is poised to receive a record number of visitors heading for the Angkor Sangkran celebrations over the Khmer New Year.

Pak Sokhom, secretary of state for the Ministry of Tourism, said: “This is the second year we see Sangkran celebrations at Angkor Wat and we expect in excess of 200,000 visitors over the three days.

“Many hotels will be operating close to full capacity as we are seeing an increase in tourists not only from the Western markets, but also from China and Japan.”

The Angkor Sangkran festival will be held from April 13 to 16 within the Angkor temple complex.

Christian De Boer, general manager of Shinta Mani, said: “Shinta Mani is virtually fully booked over the New Year festivities. We haven’t increased our rates for over this period. I believe there are sufficient facilities in Siem Reap to deal with the expected increased in tourism numbers that are mainly regional.”

Steve Lidgey, general manager of A Touch of Asia, added: “Over the Khmer New Year period, Western tourists are low in numbers while domestic traveller numbers surge.

Thai tourist numbers will be greater this year as the Thai-Khmer relationship has improved and more flights now operate from Bangkok to Siem Reap.”

Cebu Pacific approved for European routes

By Rosa Ocampo

April 11, 2014

THE European Union yesterday lifted the ban on Cebu Pacific flying to Europe, just hours after the US Federal Aviation Authority upgraded the Philippines’ status from Category 2 to 1 (TTG Asia e-Daily, April 10, 2014).

This double aviation victory means that like Philippine Airlines, which was allowed to return to Europe last July, Cebu Pacific can now fly longhaul to both Europe and the US after the safety issues have been addressed.

Cebu Pacific president Lance Gokongwei said the airline would fly to the two continents within the year, eyeing Guam, Saipan and Hawaii in the US while still studying the routes in Europe.
Cebu Pacific will purchase 50 additional aircraft until 2021 for the US and European expansion, added Gokongwei.

Meanwhile, Philippine Airlines president, Ramon Ang, said the legacy carrier would return to New York within the year without precluding other East Coast cities, in addition to its 26 weekly flights to Los Angeles, San Francisco, Honolulu and Guam.

Ang said PAL would “deploy our modern and fuel-efficient Boeing 777-300ER fleet to the US” and “explore new destination opportunities in one of the Philippines’ largest passenger markets”.
The travel trade welcomes the landmark lifting of the ban as crucial to improving the Philippines’ connectivity and accessibility.

AA Yaptinchay, general manager of Kirschner Travel Manila, said: “Not only could we fly in more visitors with better schedules, but also the presence of airlines from the Philippines would mean visibility and promotions to new markets in Europe and the US.”

An all-new TTG Asia out today

By TTG Asia

April 11, 2014

ASIA’s leading travel trade publisher TTG Asia Media today unveiled an all-new look and approach for its flagship magazine, TTG Asia.

Based on feedback from a readers’ survey, the 40-year-old publication now sports an exciting cover and fields many new sections that are relevant to today’s needs.

Packed with ideas and inspirations for travel agency CEOs and travel consultants to stay sharp and smart, the print title is now more in-depth than ever before, focusing on trends/issues, case studies, intelligence, destinations and incisive commentaries.

In her editorial this issue titled Change with us, TTG Asia Media deputy editor and TTG Asiaeditor, Gracia Chiang, urged agencies to review what they are able to bring to the table and how they can sell their consultancy services.

“It is with this in mind that we present you our latest revamp, an in-depth magazine packed with tips, ideas, inspirations for you to stay relevant and in business for many years to come. Let’s grow further together,” she said.

The print news magazine complements the online news portal www.ttgasia.com and email bulletin TTG Asia e-Daily, which delivers original, breaking news stories written by the largest dedicated network of reporters across the region. A revamp of the portal and email bulletin is also underway.

As part of its 40^th anniversary this year, TTG Asia Media is launching several initiatives including TTGassociations, a new quarterly publication targeting Asian association secretariats, debuting this month, as well as Roomonger, a B2B e-commerce portal. A commemorative TTG Asia Special Edition will also be published on August 8.

TTG Asia Media’s Travel Trade Publishing group has been connecting Asia-Pacific’s travel industry with its leading trade publications since 1974. The group’s titles are widely acclaimed as the industry’s preferred read and chosen by advertisers as an effective marketing platform. Core titles include TTG Asia, TTG China, TTG India, TTGmice, TTG-BTmice China, TTGassociations, TTG Asia Luxury and TTG Show Daily.

Read the issue here

Six Flags to debut theme park in Dubai

By TTG Asia

April 11, 2014

THEME park company Six Flags Entertainment Corporation is venturing to markets outside North America, having announced yesterday its plan to build a Six Flags-branded theme park in Dubai.

The project, a strategic partnership with Meraas Leisure and Entertainment belonging to Dubai-based real estate development company Meraas Holding, is planned for a late-2017 opening within the multi-themed park project in Jebel Ali.

“The cornerstone of our international expansion strategy has always been finding the right partner in the right location and, with Meraas in Dubai, we have done exactly that,” said Jim Reid-Anderson, chairman, president and CEO of Six Flags Entertainment.

Raed Al Nuaimi, chief leisure and entertainment officer of Meraas, said: “As part of our commitment towards creating one-of-a-kind experiences and contributing towards the Dubai Tourism Vision 2020, our association with Six Flags will help us develop a world-class destination that redefines the industry and positively impacts the regional tourism sector.”

Terms of the arrangement were not disclosed. Six Flags Entertainment currently has 18 theme parks across the US, Mexico and Canada.