INDIA’S Ministry of Civil Aviation (MoCA) has ruled that airlines must pay travel consultants commission for the sale of seats, a much-debated issue in India’s travel industry. However, it did not stipulate a rate, to the chagrin of the trade.

The order by the ministry’s secretary K N Shrivastava, recognised that intermediaries played a “significant role in the sale of airline inventory” and that “intermediaries do render service to air travellers”.

“Therefore, it is quite logical that intermediaries get compensation that is equitable, fair and based on the work-done principle. Since keeping any fee outside the ambit of a tariff is likely to adversely affect the objective of transparency, it is best that (it) is part of the tariff,” wrote Shrivastava.

According to the order, airlines will then have to determine a tariff including commissions to go towards travel consultants, and display both single consolidated fares and the fare breakdown for consumers, applying to all airlines that fly to and from India, including LCCs.

Without a set rate of commission, airlines, IATA-approved ticketing agencies and trade associations are expected to work together on a formula.

Biji Eapen, president of the IATA Agents Association of India (IAAI), said: “This verdict is a victory for travel consultants in India. IAAI has been fighting for consultants’ right to commissions for a long time, including going to court. IAAI will soon meet each airline to fix the quantum of commission.”

However, Iqbal Mulla, president of the Travel Agents Association of India (TAAI), commented: “The decision is unclear and there is no proper direction to travel consultants, airlines and other stakeholders. The quantum of commission is not defined. We will be consulting our legal counsel to take the matter further. TAAI will fight for five per cent commission.”

The Delhi High Court had instructed MoCA’s secretary to investigate the matter and include IAAI as party to the discussion after having received a petition from the Federation of Indian Airlines about the Directorate General of Civil Aviation’s restriction on airlines imposing transaction fees (TTG Asia e-Daily, January 28, 2013).

VIETNAM-based Luxury Travel will raise the curtain tomorrow on joint venture company Asia Premium Travel, marking the debut of Cambodia’s first high-end tour operator.

Headquartered in Siem Reap with a branch in Phnom Penh, Asia Premium Travel will offer upscale inbound/outbound operations, luxury adventures and custom tours, among others. Luxury Travel is the main shareholder in the new tour operator.

Explaining the rationale behind a Cambodian joint venture operation, Pham Ha, CEO of Luxury Travel, said: “Luxury tourism is booming in Cambodia, and our luxury bookings to Cambodia increased remarkably last year and continued to rise in 2013. We have series bookings for 2014.

“We have two friends who are passionate about developing quality tourism in Cambodia and are tourism experts with vast local knowledge, (while) I have the market (reach) and know-how in luxury travel.”

Increased air and overland links as well as the fact that foreign travellers prefer combining Vietnam and Cambodia within their itineraries has also given rise to Asia Premium Travel.

“Asia Premium Travel will receive Luxury Travel’s customers as its main source of customers at the beginning,” said Pham Ha.

But Cambodia can look forward to tapping the global market in the near future. Qatar Airways now runs a daily flight connection from Doha to Phnom Penh via Ho Chi Minh City, while Dragonair will start a thrice-weekly seasonal service between Hong Kong and Siem Reap on October 29.

Luxury accommodation options in Cambodia are increasing in number, Pham Ha pointed out, citing Song Saa Private Island in Sihanoukville and Sofitel Phnom Penh Phokeethra in Phnom Penh.

MICE would also be a key target market for Asia Premium Travel. Said Pham Ha: “MICE holds a lot of potential for Cambodia, especially in Siem Reap (which has) more luxury hotels, international brands and air links. Siem Reap is the place to be for any MICE organiser with its affordable prices. We will focus on this segment through our joint venture.”

Cambodia received some 3.5 million foreign arrivals last year, a 24 per cent year-on-year rise. About 75 per cent of tourists were from the Asia-Pacific region, 16 per cent from Europe and the rest from other parts of the world.

SINGAPORE Airlines (SIA) will run twice-weekly services between Singapore and Athens from June to October 2014 with Boeing 777-200ERs to meet expected demand during the peak summer travel season.

On Mondays and Thursdays, flights depart Singapore at 02.05 to arrive in Athens at 08.30, while return flights leave Athens at 13.00 to touch down in Singapore at 04.55 the next day.

SIA suspended regular services to Athens in October 2012, citing “a prolonged period of challenging operating conditions”.

TRAVEL search site Skyscanner is now seeking to expand its footprint in Asia-Pacific, having established itself as a leading player in the region’s online travel landscape over the last few years.

Speaking during a press conference in Bangkok to mark the official launch of Skyscanner in Thailand – the Thai-language website first went live in 2011 – Skyscanner’s general manager for Asia-Pacific, Andy Sleigh, said Skyscanner now holds a 20 per cent share of global traffic, up from seven per cent last year, and aims for 30 per cent by 2014.

“Australia and New Zealand are the strongest among the Asia-Pacific markets, but South-east Asia is quickly coming up,” said Sleigh. “We’re growing 400 per cent year-on-year in Asia. And with online penetration at only 30 per cent, more people will travel.”

Skyscanner has outlined plans to double the head count at its Asia-Pacific headquarters in Singapore in the coming months, while Thailand is set to play a significant role in its regional development.

Sleigh remarked: “Thailand is a very attractive market, with a relatively young population, large number of FITs and smartphone penetration…There are opportunities to tap outbound demand from Thailand. We have built partnerships in Thailand to tap inbound tourists too, especially from China.”

Skyscanner will consolidate its position in Thailand by ramping up its marketing efforts and establishing alliances with companies such as CheapTickets.sg and Bangkok Airways, said market development manager for Thailand, Grace Pobpabha Areerat.

The Edinburgh-based company launched its regional headquarters in Singapore in 2011, an office in Beijing last year, a new Miami operation earlier this month and has a Barcelona office in the pipeline (TTG Asia e-Daily, September 9, 2013).

When asked if Skyscanner is looking at breaking into new markets in the region, Sleigh replied: “There are no markets in South-east Asia we’re not looking at, especially Cambodia and Myanmar. However, there needs to be sufficient online penetration (in a market) in order to be competitive.”

AIMING to boost off-season traffic and promote the Himalayas mountain range, India’s Ministry of Tourism launched the 777 Days of Incredible Indian Himalayas campaign on World Tourism Day last week.

Focusing on the six Himalayan states – Jammu and Kashmir, Himachal Pradesh, Uttarakhand, West Bengal, Sikkim and Arunachal Pradesh – the campaign aims to position India as a 365-day destination by attracting foreigners during the lean summer season.

The ministry collaborated with the Adventure Tour Operators Association of India (ATOAI) to design 777 days’ worth of special adventure programmes that began on September 27, including a Himalayan run, river rafting, trekking and cycling events.

“The campaign has been designed to spread awareness around the globe that 73 per cent of the Himalayan range lies in India. The Indian Himalayas are a complete destination that offers adventure, bio-diversity hot spots, beautiful lakes, wellness, and much more for travellers,” said K Chiranjeevi, minister of tourism.

Ashwani Kakkar, chairman of Mercury Travels, said the campaign would shine light on the fact that the Himalayas contains one of the biggest bio-diversity hotspots in the world.

Besides the campaign, two promotional films, a book on travelling safe within the Himalayas, a calendar of events and a website for the campaign were unveiled by the ministry.

Ministry of Tourism’s secretary, Parvez Dewan, explained: “We held discussions with the travel trade, especially adventure tour operators, and we believe that if during summers we promote (travel to the) Himalayas, the off season can be solved to a great extent.”

He added that the campaign would also benefit states with airports serving Himalayan routes.

“Normally, inbound tourism (peaks) between October and March. We are looking for initiatives to ensure tourist arrivals in the summer season too. This campaign will go a long way in solving off-season woes and promoting the Himalayas as a tourism destination,” said Subhash Goyal, president, Indian Association of Tour Operators.

SOUTH Korea’s Ministry of Land, Infrastructure and Transportation broke ground for Incheon International Airport’s second passenger terminal last week, which is expected to be finished ahead of the PyeongChang 2018 Winter Olympic Games.

The additional terminal will increase airport capacity from 44 million passengers annually to 62 million. It is one of the main facilities comprising the airport’s third phase of construction, which also includes the building of a second transportation centre.

The third phase will create some 93,000 new jobs and generate 17 trillion won (US$15.8 billion) for the country’s economy after it is completed by end-2017, according to South Korean prime minister Hong-won Chung.

Passenger traffic has been on the rise at over six per cent since Incheon’s opening in 2001, with the airport predicted to be running at full capacity by 2017. It also added a third runway and a concourse in June 2008.

FAIRMONT Hotels & Resorts will open the Fairmont Hangzhou in 2017, after parent company FRHI Hotels & Resorts signed a deal with Hengli Management, a subsidiary of Zhong An Real Estate.

The new hotel will occupy the top floors of the city’s tallest building in the heart of Qianjiang Century central business district, and include 180 Fairmont Serviced Residences.

Fairmont Hangzhou will boast 300 rooms, five diverse dining outlets, a health club and swimming pool, Willow Stream Spa, and more than 3,000m² of meeting and banquet space.

Jennifer Fox, president, FRHI International and Fairmont brand, said: “We continue to expand our footprint in China and are excited to be adding a hotel in a major domestic market like Hangzhou…With rail and airport expansion projects underway, and visitor numbers expected to rise, it’s an opportune time to be entering the market.”

PLAZA Premium Lounge Management will celebrate 15 years of running airport lounges, transit hotels and other services by undertaking an aggressive expansion plan that includes entry into the Australian and European markets.

Song Hoi-See, founder and CEO of Plaza Premium Lounge Management, said: “By 2015, we will add 50 new locations in existing and new airports around the world. We will look to expand in mainland China, Asia, the Middle East, Europe and North America.”

The company will launch a new flagship lounge in Hong Kong International Airport, to be the biggest and largest pay-in lounge in the region. It will open lounges in Sydney’s airport and London’s Heathrow airport, heralding Plaza Premium’s entry into the Australian and European markets respectively.

New lounges have also been planned for Macau and Kuala Lumpur at KLIA2.

In India, Mumbai will get one pay-in lounge, Bengaluru International Airport will see two new pay-in lounges and the lounge at New Delhi’s airport’s Terminal 3 will be upgraded. The city’s first-ever transit hotel will come up in Bengaluru, while a major expansion is on the cards for the transit hotel at Hyderabad.

This year, Plaza Premium has already added lounges at the airports of Kota Kinabalu, Kuching and Penang in Malaysia, as well as Edmonton in Canada. The lounge at Toronto Pearson International Airport has undergone major expansion and the world’s first airport organic spa, Wellness Spa, was opened in Singapore Changi Airport.

To further mark the company’s 15^th anniversary, Plaza Premium Lounge Management has also unveiled a new logo.