MORE airlines are clamouring for a slice of the social media pie, with more than 70 per cent of them intending to increase their budgets in this area this year – although many are struggling to do it right.

According to a survey of 29 airlines by SimpliFlying, an airline and airport consultancy firm, this represents a two-fold increase in the number of airlines planning to increase their social media budgets, when only 40 per cent did last year.

Speaking to TTG Asia e-Daily on the sidelines of Travel Distribution Summit, SimpliFlying CEO, Shashank Nigam, said: “The biggest challenge by airlines is the insufficient allocation of resources to social media.”

Besides budget, Nigam also emphasised the importance of having a strategy before entering cyber space, saying many airlines wanted to be online but did not know what to do differently on social media.

“The majority of airlines and airports face this problem as they rely on social media agencies who just recommend basic tactics with no link to the company’s overall business goals.

“As a result, they may be on Facebook, Twitter and Instagram, but there is ultimately no link to their strategy,” he added. According to Nigam, more than 200 airlines have Twitter accounts, but only 27 are highly-active tweeters.

“You may be present there, but if you are not doing it right, there is not sense at all,” he said.

Nigam singled out Japan Airlines (JAL) as a role model for having built an “astonishing” 10 mobile apps in 2012, covering everything from mobile bookings and airport navigation to inflight entertainment and flight countdown.

Tomohiro Nishihata, vice president for web sales and marketing, JAL, said: “We want to engage our customers at every possible touch point because that is how we can build brand loyalty and trust.”

Traci Mercer, vice president, market management for Asia-Pacific, Expedia, said engagement through social media was an “absolute emerging trend”.

“Fundamentally, we have gone from an information age to a recommendation age and this is all driven from social, which means the customers now become advocates,” she said.

STARTING June 1, Malaysia Airlines’ (MAS) published fares for travel originating from Singapore will include fuel surcharge.

An MAS media statement said: “As fuel cost is part of the operating cost of the airline, it makes sense and provides convenience to customers and trade partners to have fuel surcharge included in the published fare.”

Albert Ho, executive director of Citystate Travel and chairman, air transport, National Association of Travel Agents Singapore, said the practice is not common among airlines. “Majority of airlines’ fares are quoted separately from the fuel surcharges. The few whose fares are inclusive of fuel surcharges include Emirates and Korean Air.”

However, hailing this as a commendable move, he added: “It is better to be more transparent about the true cost of an air ticket as travellers today are very discerning and expect airlines to be more open on its pricing strategy.”

While customers may feel “short-changed” when fuel surcharges are added to the final price and find themselves paying up to 30 per cent more than the original airfare, Ho said travel consultants also benefited as they “have less to explain”.

Jane Chang, marketing and communications manager, Chan Brothers Travel, pointed out that “the impact on the industry is still minimal and largely reliant on adoption levels by other airlines” as the practice was still uncommon among airlines.

MAS intends to introduce such fuel surcharges to its published fares progressively across its worldwide network, having already done so for flights originating from New Zealand (2006), Sri Lanka (2011) and India (2013).

Separately, MAS will increase the frequency of its Kuala Lumpur-Mumbai flights to 12 times weekly, beginning June 3, due to increased market demand.

The new daytime service departs every Monday, Wednesday, Friday and Sunday at 09.20, reaching Mumbai at 11.45. Flights leave Mumbai at 12.40 to arrive in Kuala Lumpur at 20.20.

TWO main shareholders earlier this week unveiled intentions to make an offer for Club Med as the Paris-based resort operator shifts its development focus to emerging markets.

AXA Private Equity and Fosun hold 9.4 per cent and 10 per cent of Club Med respectively, according to Reuters, which also reported that under the deal, control of Club Med would be conducted through a joint venture company.

In this new joint venture, Fosun and AXA would each hold 46 per cent and 400 Club Med managers, the remaining eight per cent.

A joint press release from the two main shareholders said that in view of the difficult tourism market in Europe, it was “necessary” to speed up development in emerging countries and strengthen market shares in mature markets.

A Bloomberg report stated that Club Med CEO, Henri Giscard D’Estaing, is planning to more than double the resort operator’s customers in China within the next three years.

TEN of India’s leading travel trade associations officially joined hands in mid-May to form the Federation of Associations of Indian Tourism & Hospitality (FAITH), a new organisation that purports to address industry issues and demands.

Some of the issues the new organisation plans to look into immediately include industry status for the sector, extending India’s visa-on-arrival scheme to more countries and simplifying the tax regime.

Discussions for the formation of FAITH started a year ago, but some members of the Indian Association of Tour Operators had expressed concerns that joining FAITH would dilute the relevance of their association, before finally taking the plunge, said sources.

The nine other members are Travel Agents Association of India, Adventure Tour Operators Association of India, Travel Agents Federation of India, Association of Domestic Tour Operators of India, Indian Tourist Transporters Association, Federation of Hotel and Restaurant Associations of India, India Convention Promotion Bureau, Indian Heritage Hotels Association and Hotel Association of India (HAI).

Parvez Diwan, secretary, Ministry of Tourism, said: “It is a great initiative by all the associations who have decided to come together to take up the challenges that concern the industry. I, on behalf of the tourism ministry, extend all our support to FAITH.”

Nakul Anand, chairman, FAITH and president, HAI, said: “We are keen to work closely with different Indian states to find solutions to various issues. Indian states needs to realise the economic benefits of tourism.”

Sarabjit Singh has been appointed vice chairman of FAITH, Subhash Verma appointed Secretary and Tejbir Singh Anand, treasurer. Aashish Gupta is consultant CEO.

THE Singapore Flyer has been placed under receivership a mere five years after the attraction first opened, but will continue business as usual in the meantime.

Tim Reid, Theresa Ng and Tan Aik Kiat of Ferrier Hodgson have been appointed receivers and managers over the charged assets, according to a press release from Ferrier Hodgson.

“We are confident that we will be able to identify investors with the vision to manage, diversify and enhance the Singapore Flyer, thereby securing its long-term future as a significant Singapore attraction. We will be calling for expressions of interest shortly to commence the process,” said Reid in the statement.

He added: “It is business as usual at Singapore Flyer, and we look forward to the support of the management and staff through this process. We are committed to working closely with business partners and tour operators to ensure smooth operations throughout the receivership.”

Although the same press release said the attraction has been seeing an increase in visitor numbers, both local and international, year-on-year, local broadsheet The Straits Timesreported that passenger numbers were “below targets”.

MARRIOTT International’s latest and seventh property in Malaysia, the 345-room Renaissance Johor Bahru Hotel, has begun welcoming guests.

The hotel is located in the township of Permas Jaya, close to the Johor Bahru city centre and the port and industrial area of Pasir Gudang, and also falls under the Iskandar Development Region.

Guests at the hotel can choose to dine at any of the property’s four restaurants and bars, including Café BLD for all-day dining, Wan Li Restaurant for contemporary Cantonese cuisine, The Chocolate Cake Company for pastries, and lobby bar R-Bar.

The hotel also features an outdoor swimming pool, fitness centre, seven flexible meeting rooms with state-of-the-art technology and natural lighting.

HONG KONG-based New World Hospitality has changed its name to Rosewood Hotel Group, a move it says makes sense as the Rosewood brand, which it acquired in 2011 for US$229.5 million (TTG Asia e-Daily, June 21, 2011), is most widely-represented geographically.

Rosewood Hotel Group continues to manage three brands, the luxury Rosewood Hotels & Resorts, deluxe New World Hotels and ‘neighbourhood lifestyle’ Pentahotels.

“As Rosewood is the group’s marquee brand, and the one whose properties are most widely represented geographically, we feel it is more appropriate for the company to adopt the Rosewood name,” said CEO Sonia Cheng.

The name change comes as the group gears up for expansion, from 40 hotels in 14 countries in the portfolio now, to 90 hotels worldwide in operation or pipeline in five years. “This lends the right positioning for this scale of growth,” Symon Bridle, COO, told TTG Asia e-Daily in an email.

On marketing plans for the marquee and its three brands following this name change, Bridle said: “Our visibility is established through participation in industry and developer conferences and an active development team, while the individual brands are marketed quite separately and independently as our focus remains on developing the brands individually according to their distinct market tiers and customer bases.”

Cheng, who is travelling, could not be reached for further comments on the pros and cons of trading the old New World name, which is household in Hong Kong and China, with the US-originated Rosewood, which is relatively new in Asia. New World Hospitality had existed since the 1980s, part of Hong Kong conglomerate New World Group, and was re-established in 2006 under Cheng’s charge.

The latest move marks a new chapter in Cheng’s US$1.1 billion effort to establish a global hospitality company (View From the Top, TTG Asia, December 3, 2010).