TTG Asia
Asia/Singapore Friday, 3rd April 2026
Page 2374

Smartphone opportunity untapped

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Victor Lim, Asia Pacific regional meeting ad travel manager, Ikea

Apps are perceived to be important, but their implementation is not widespread

Victor Lim, Asia Pacific regional meeting ad travel manager, Ikea
Victor Lim, Asia Pacific regional meeting
ad travel manager, Ikea

With deepening smartphone penetration and the Millennial generation joining the workforce in greater numbers, technological adoption is becoming more common than ever in the corporate travel landscape. However, the integration of mobile solutions into travel programmes is still in its infancy.

According to the 2013 Abacus Corporate Travel Practices Survey published earlier this month, mobile applications remain a largely untapped opportunity within the travel industry in Asia-Pacific, despite soaring adoption rates of smartphones and tablets in the region.

The survey also reveals a clear disconnect between the perceived importance and actual provision of smartphone and tablet applications in the industry: over 83 per cent of TMCs felt that mobile technology would have a moderate to significant impact on their business in the next 12-24 months, but only 33 per cent of the respondents had implemented any mobile web or native applications.

Speaking to TTG Asia on the sidelines of his keynote address at CTW Asia-Pacific 2013, Rohit Talwar, CEO of Fast Future Research, pointed to the accelerating rate of technological adoption: “We’ve got to understand the speed at which technology is evolving…think how we are gearing up for that world where people grow up being used to that stuff and not be held back.”

Talwar also highlighted that travel apps the likes of Hipmunk, Hotel Tonight, Room 77 and SeatGuru have provided insider information to help travellers with their decision-making.

“Apps that provide flight and airport terminal updates have helped corporate travellers on the road, especially among a new generation of travellers who prefer mobile (phones),” said Amarnath Lal Das,  travel manager of a Bengaluru-based technology company. “We’re looking to launch our own mobile app to make information available at one’s fingertips.”

Likewise, Ikea has adopted some mobile solutions, such as Concur, which has been “quite useful” for corporate travellers to track their expenses on the road by taking pictures of their receipts, according to Asia-Pacific regional meeting and travel manager, Victor Lim.

At the same time, Lim acknowledged that the furniture giant has not totally embraced the full potential of mobile in its corporate travel policy. “There have been requests from different segments of our travel community to be able to approve things through the mobile, and we will like to look at things mid-trip and be able to send out alerts to people about the weather, location or safety information when they land (in a destination).

“The challenge is how to integrate (mobile) solutions into our corporate travel programme, which exist in different pockets today, so we have not been able to manage it centrally in a good-enough way. As much as possible, we would like to tap on our partners’ existing solutions and not spend too much time and money on developing apps,” added Lim, who also urged technology providers to roll out customised solutions for the corporate travel community.

US shutdown racked up US$2.2 billion loss in travel spend

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THE US Travel Association today welcomed the end of the US’ fiscal impasse which had led to an estimated loss of US$152 million per day in travel-related expenditure.

Said Roger Dow, president and CEO of the association: “America’s travel community thanks president (Barack) Obama and congressional leaders for reaching a bipartisan agreement to reopen the government and end the haemorrhaging of dollars and jobs that threatened to hobble the US travel economy.

“The shutdown’s damage cannot be undone, but reopening the government will allow America’s travel community to get back to work and continue to drive US economic recovery.”

Although services such as security screening and air traffic control were unaffected, the closure of attractions such as national parks and historic sites inevitably impacted inbound tourism (TTG Asia e-Daily, October 3, 2013).

Countries such as Germany, the UK and China also warned citizens travelling to the US about the likelihood of shutdown-related travel problems.

According to the association, travel is the US’ top services export and as an industry, has added jobs at thrice the rate than the rest of the economy since 2010.

ITF carves out more space for hungry exhibitors

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TAIWAN Visitors Association today launches the biggest edition of Taipei International Travel Fair (ITF) with 1,350 booths, record 280,000 attendees expected, and a slew of new consumer-facing attractions.

Running from October 18 to 21 at the Taipei World Trade Center, about 900 tourism units from 60 countries are showing up for the fair, with booth numbers growing 12.5 per cent from 1,200 last year to 1,350 this year.

Emily Huang, executive director of ITF, explained: “As exhibition spaces were snapped up within the month of April, demand exceeded supply and there were no more booths to allocate to exhibitors on the waiting list. This is why we decided to arrange for a new zone.”

To meet strong demand, organisers added a new area for an additional 150 booths that were given to hostels, hotels and restaurants.

First-time exhibitors at ITF include destinations like Argentina, Chile, Seychelles, the Netherlands and Poland.

Attendees will also be able to choose from a total of 44 travel seminars this year. “The travel seminars are a very useful platform for exhibitors to introduce their products and strength to agencies,” said Huang.

Trade visitors are projected to make up 7.8 per cent of total participants, and ITF yesterday hosted 14 sessions for the fair’s 79 buyers from 19 countries.

Consumers can also look forward to new services and attractions such as lucky draws, gift giveaways, performances, as well as food- and fashion-themed activities.

Said Huang: “Additionally, a local cloud service has been launched at the venues, with an exclusive ITF cloud channel. Visitors can discover information about various ITF activities and discounts free-of-charge through their mobile phones, without first having to download an app or key in a website address.”

Travellers wary after Yangon bomb blast

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TRAVELLERS and trade players are on a heightened state of alert in Myanmar in the wake of multiple bomb blasts throughout the country in the past two weeks, with DMCs reporting postponed bookings as a result.

Three bombs detonated overnight between Wednesday and Thursday this week in the north-eastern Shan state near the Chinese border, according to AFP, killing a municipal worker. This forms the latest incident in a string of blasts that saw an explosion at a guesthouse in Taunggu, 65km from Naypyidaw that killed two, and Traders Hotel, Yangon on Monday, which injured an American woman.

Two more devices were found at restaurants in Yangon and Mandalay on Monday but did not detonate.

“As the news spread of the bomb blast in a guestroom at Traders Hotel, many of our clients contacted us for more detailed information and reassurance,” said Pierre Leduc, key account manager at Diethelm Travel Myanmar.

While Diethelm has not received any cancellations, a few travel agencies have requested alternative accommodation, he added.

Stephen McEvoy, managing director of Asia World Enterprise, said a couple of bookings have been postponed following the incidents. “We had an incentive group travelling to Myanmar from Singapore that requested to delay its December (departure) until next year. Also, a European travel consultant from Scandinavia has postponed its group series from January.”

“Overall the mood is very much wait and see, so if the situation calms down tourists will still travel,” he remarked.

The US has condemned the latest bombings as “acts of terror”, while Western governments have warned travellers to exercise caution in Myanmar, said AFP.

Anne Cruickshanks, Myanmar country manager at Grasshopper Adventures, said: “These incidents are often aimed at causing a fuss more than actual carnage. Generally, following such incidents, there is an overall tightening of security. We would expect that this will be the case in the coming months and would not expect this to be a recurrent issue in the near term.”

In response to security concerns, Myanmar’s Ministry of Hotels & Tourism has issued a directive to reinforce security at all hotels.

Traders Hotel, Yangon now has a team of three security guards scanning guests and bags at the entrance, and requests all guests to double check their rooms upon check-in and be alert for any unattended luggage.

The incidents come at a crucial time for the South-east Asian country, which will host the SEA Games in December (TTG Asia e-Daily, November 8, 2012) and assume chairmanship of ASEAN in 2014.

AirAsia Zest, Philippines AirAsia to remain separate entities

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A MERGER with sister airline Philippines AirAsia is “not on the table” for AirAsia Zest (AAZ), which is strengthening its position at new hub Cebu in the hope that its rebranding will turn the tide of recent misfortunes.

Dismissing the idea, the airline’s incoming executive vice president and COO, Joy Caneba, said: “There are other possibilities. It (would) make sense to combine them into one (airline), but it also makes sense that one might focus on shorthaul, one might focus on longhaul…but that’s something that hasn’t been formally decided.”

AAZ will roll out four services from Cebu, beginning with daily flights to Davao and Cagayan de Oro, and a four-times-weekly flight to Puerto Princesa from November 15, as well as a daily Kuala Lumpur connection on December 1.

“We’re currently the number three player (in Cebu) and we want to up the game,” said Caneba, who cited the importance of China and South Korea as reasons for picking Cebu as its next hub. “We will continue operating a hybrid schedule of chartered and scheduled flights.”

She said AAZ has no plans to fly out of Clark, but did not rule it out for the future. AAZ aims to grow business by 15 to 20 per cent by end-2013 and at a higher rate in 2014.

Caneba also shared that the rebranding from Zest Air had been fast-tracked “despite and because of” the losses the carrier had sustained recently during the surprise four-day suspension imposed by national aviation authorities in August (TTG Asia e-Daily, August 19, 2013).

Meanwhile, AirAsia is on an expansion warpath in Thailand, with Thai AirAsia yesterday announcing it would launch daily Singapore-Krabi flights and increase Bangkok-Krabi frequencies to eight times daily on November 25 as well as kick off a Krabi-Chiang Mai service on December 15.

AirAsia X also secured official approval from Thailand’s Ministry of Transport for an air operator licence, bringing it one step closer to setting up its first international hub outside Kuala Lumpur by 1Q2014 (TTG Asia e-Daily, February 22, 2013).

Thai AirAsia X will be based in Don Mueang Airport and receive feeder traffic from Thai AirAsia, besides focusing on routes to North Asia and Australia.

TripAdvisor launches TripConnect for independent hotels

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THE newly launched TripConnect will allow independent hotels and boutique properties to bid for traffic to TripAdvisor and drive bookings directly to their websites, an option that was previously only available to OTAs and large hotel chains.

TripConnect is a self-service platform that gives independent accommodation owners the ability to place bids, according to their budgets, for favourable positions in TripAdvisor’s metasearch function, Hotel Price Comparison.

Stand-alone hotels can now add their direct rates and availability to the site and so enable travellers to click directly through to the property’s website to make a booking.

TripConnect is a cost-per-click solution that charges hoteliers when a traveller clicks through to their website or reservation page.

To participate, hoteliers must have a valid Business Listings with TripAdvisor and work with an Internet booking engine that partners with TripAdvisor in providing TripConnect.

Other features offered on TripConnect include automated post-trip review collection through Review Express and revenue tracking services.

Red Planet’s Tune Hotels ditch add-on model

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RED Planet Hotels has moved its Tune Hotels away from an add-on to an opt-out model, where guests can pick which amenities they do not want rather than choosing ones they do.

This is effective at all 14 Tune Hotels that Red Planet owns, develops and manages in Indonesia, Thailand, the Philippines and Japan. It is also in talks with Tune Group for online sales to mirror the new approach.

By doing so, Red Planet expects to enlarge its client base, capturing agency and corporate business as it expands in Asia.

Tune Hotels Indonesia’s corporate director of sales and marketing, Bina Sembiring, explained the rationale of the reworked approach: “During sales calls in Indonesia, we get clients asking if they needed to bring their own towels and pillows to Tune Hotel.

“Some also commented that after adding on (desired amenities) to the basic price, the rate was not economical anymore…We want to change that (mentality).”

She said that travellers could now choose from two “packaged” room rates, one with breakfast and one without, and guests who want the bare minimum could book online. Rates are higher than the room-only price, but still lower than if add-ons were made, such as air-conditioning, TV, use of the in-room safe, Wi-Fi and bathroom amenities.

Asked if the change was proof that the add-on model did not work, Mark Armsden, senior vice president sales and marketing, Red Planets Hotels, said: “I would not say so, as it did work in the beginning, but we got feedback that people do not want to spend extra time adding on and on, and just want the total package price.”

He added that Tune’s shift in model is “similar to how AirAsia (Tune is part of the AirAsia family) has evolved”. “When the airline was first launched, it was free seating and there were add-on (payments) to book a seat, meals, etc. Now, when you check in a seat is assigned to you.”

There are four Tune Hotels in Indonesia currently, a number set to double next year and projected to hit 40 in five years. Red Planet aims to grow its portfolio of Tune Hotels to 100 properties in the region within five years.

Taiwan chases the Muslim dollar

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TAIWAN is widening its range of Muslim-friendly travel options as it locks on to the burgeoning markets of Malaysia and Indonesia.

Kathy Yuan, section chief of the internal affairs division of tourism bureau, Ministry of Transportation and Communications of Taiwan (MTCT), said: “We are focused on growing traffic from Malaysia and Indonesia. In order to push these markets, we collaborate closely with the travel trade and invite local media to cover Taiwan.”

In May 2012, Garuda Indonesia resumed Taipei-Jakarta flights, flying daily between both cities.

CT Su, chairman of Taipei International Travel Fair (ITF), pointed out the potential of the Muslim market, saying: “More and more Indonesians travel overseas and 98 per cent of the population is Muslim. That’s a huge market for us.”

Yuan said: “After certifying restaurants this year, we’ll target attractions in 2014 due to rising demand.”

Paul Hsieh, deputy general manager of Edison Tours, observed that more halal food outlets were needed.

Last September, MTCT appointed the Chinese Muslim Association to help with the halal certification of restaurants and hotels. The certificate is valid for one year, with the need for renewal, ensuring service and product quality.

“Currently, our bureau has designed two Muslim itineraries – Taipei-Hualien and Taipei-Kaohsiung. Travel consultants follow our concept and sell these to clients. In future, there will be themed travel concepts, e.g. family travel with theme park visits,” said Yuan.

She added that it was vital for tour guides to undergo training to overcome the language barrier and understand travellers’ needs.

“Taiwan has got lots to offer to our clients. Besides relying on one or two traditional Taiwanese groundhandlers, I am looking for more travel consultant contacts this time,” said Rudy Halim, president of Jakarta-based Istana Tour, who has been promoting Taiwan for the last 17 years.

Maturing Taiwanese market goes niche

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NICHE travel is gaining traction in Taiwan as the market gains maturity, with over 10 million Taiwanese heading abroad annually and venturing into special interest tours.

Andy Yu, vice president of special interest travel at Lion Travel, shared: “We are pushing three themes namely, cruises, weddings and skiing due to growing consumer interest.”

“In 2013, more international cruise lines will enter the Taiwan market. While this segment is not big, the pie will grow bigger with more choices to come. For instance, Royal Caribbean International, Princess Cruises and Costa Cruises have deployed more new ships from Alaska, Northern Europe and the Mediterranean Sea to Taiwan.”

He added that there were chartered cruises sailing to Yalong Bay in January and February 2014 that would let passengers board at Geelong without flying to other ports.

Getting married overseas is a second trend. Yu said roughly 300 to 400 couples tie the knot overseas each year, but called the small market a lucrative one. “Clients find it efficient to combine the wedding ceremony and photoshoot in one trip. Popular destinations are islands like Bali, Guam and Hawaii. We also observe more traffic to Japan.”

Phoenix Tours, which organises gourmet tours around Europe and Australia for travellers to enjoy Michelin-star cuisine, is putting together tailor-made medical tours for the silver-haired market.

General manager, Anthony Liao, said: “I have a client who did kidney dialysis in South Korea.”

Longhaul travel is also seeing a similar upward trajectory. FlyUSA.com.tw’s project manager, Elaine Lin, said more Taiwanese were choosing to count down to the new year at New York’s Times Square or visit the Grand Canyon.

“We also rolled out a 10-day in-depth cultural tour to the east and west coasts of the US last year. Rather than using a coach bus, clients may travel by private jet within the US and this saves them a lot of time. Moreover, a security check is only required for the first stop,” she explained.

James Ramage named Diethelm’s group managing director, sales & marketing

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DIETHELM Travel Group has appointed James Ramage as group managing director, sales & marketing, effective November 1.

His primary responsibility will be to drive sales and marketing initiatives whilse strengthening partnerships and revenues worldwide.

Ramage brings with him almost three decades of experience in the travel and hospitality industry, having worked with Starwood and Marriott hotels in Europe, Australia, China and Thailand.