AIRASIA X will launch its second service to South Korea on July 15, linking Kuala Lumpur to Busan with the first direct flight between the two cities.

The service will commence with four-times-weekly flights on an Airbus A330-300 aircraft, offering 12 Premium Flatbed seats and 365 economy seats.

AirAsia X currently flies to Seoul, while AirAsia Japan already runs flights from Tokyo to Busan.

To mark the start of the new service, AirAsia X is offering a discount on tickets for the new route. Economy fares start from RM199 (US$65) and for Premium Flatbed seats, RM699, one way.

Fares are open for bookings from April 17-28 for travel between July 15, 2013 and April 30, 2014.

Alternatively, passengers may opt for Fly-thru services from Busan, which allows them to tap AirAsia’s feeder network from 88,900 won (US$80) to countries such as Australia, Indonesia, Thailand, Malaysia, Singapore, and vice versa. The same booking and travel period applies for the Fly-Thru promotion.

INDONESIA’S travel consultants expect the Lion Air crash to have only a short-term dent on the airline’s bookings, predicting that the LCC will bounce back quickly due to its affordable fares and extensive route network.

Batik Holidays Bandung managing director, Maktal Hadiyat, said: “Travellers always ask for Lion Air first when they want to buy a ticket because of its low prices and new aircraft. It is true that there have been a few accidents, but people tend to forget after a while.”

Pauline Suharno, Jakarta director, Elok Tour, said: “We do see some people turning to other LCCs following the accident, but I think it may only take a couple of weeks for them to go back to their earlier preferences.

“People tend to think that after an accident, the airline would improve its safety measures, so they would continue to (book the carrier). Moreover, there was no casualty in the recent incident.”

The airline is also known to have the best domestic network and frequencies compared to other LCCs in the country, Suharno pointed out.

Incito Tour Makassar managing director, Sebastian Ng, said: “We use Lion Air for routes that Garuda Indonesia doesn’t fly, for example, from Bali to Labuan Bajo (the gateway to Komodo Island).”

Still, he added: “We have received two cancellations in the last two days, which could be related to the accident.”

However, Pacto COO inbound, Umberto Cadamuro, said: “Immediately after the accident, we sent out information to our clients and we have not heard any queries or concerns from clients so far.”

Pacto uses Lion Air not only for flights to destinations not served by Garuda Indonesia, but also in packages for budget-conscious markets.

“The tour operators in north Europe only use Garuda, while many in the south use other airlines to create affordable packages for price-conscious travellers,” noted Cadamuro.

Meanwhile, Lion Air general affairs director, Edward Sirait, said the airline had followed all regulations, and that an investigation was underway to find out what really happened.

FILIPINO tour groups and FITs shaken by North Korea’s threats to attack its southern neighbour and the US have cancelled their trips to South Korea over the last two weeks.

“Some have reservations about travelling to South Korea so if it’s not urgent, like for business, they postpone the trip,” said Jane Cuyegkeng, general manager, Pioneer Tours.

“Even for (travellers heading to) US destinations like San Francisco and Los Angeles, passengers don’t want to pass through South Korea and are requesting a change of airlines from Korean Air and Asiana Airlines,” revealed Maria Michelle Victoria, president of Golden Eagle Travel and Tours.

“With travel cancellations, we were forced to cancel our blockings with airlines,” said another travel consultant who wished to remain anonymous.

March to June are the peak months for Filipinos travelling to South Korea, but tensions on the Korean peninsula have diverted them to Bangkok, Hong Kong and even Japan instead, said Cuyegkeng.

Victoria said it was lamentable that tensions on the Korean peninsula were happening at a time when Philippine outbound to the destination was going strong, buoyed by the popularity of Korean dramas, cool weather and easy accessibility.

Representatives from KTO Manila, which was established last May in response to the robust Philippine market, are expected to meet up with travel agencies this week to discuss the issue.

Early this month, KTO Manila assured the industry that “the situation (was) normal” and that South Korea was not in a state of war. The KTO Singapore office distributed a similar notice in Singapore (TTG Asia e-Daily, April 4, 2013).

Elsewhere in Asia, Taiwan has become the first government to tell its citizens to put off visiting South Korea, reported Reuters.

According to Singapore daily The Straits Times, schools in Singapore were either delaying or cancelling school trips to South Korea, or choosing to go elsewhere as the threat of conflict looms over the country.

International Paradise Connexions Travel said five schools that had intended to take trips to South Korea were considering going to another destination, quoted the paper.

THE newly launched four-star Dorsett Singapore is expecting bookings to pick up from this week, pushing occupancy into the 90 per cent range.

Dorsett Hospitality International soft-opened its first hotel in Singapore on March 28, putting a third of its total guestroom count and a restaurant into operation for the time being (TTG Asia e-Daily, March 22, 2013).

According to general manager Philip Wong, the 285-key hotel has been enjoying a 40-50 per cent occupancy thus far, with the first guests hailing from Asia and Europe.

“The hotel landscape in Singapore may be competitive but there are pockets of opportunities. I expect our location to give us a stronger corporate crowd and I’m targeting a 60-40 corporate and leisure mix for our clientele.

“I am also targeting a geographical mix of 70 per cent Asians, and the rest from other parts of the world,” Wong said, adding that the hotel will work closely with OTAs and traditional travel companies in drawing travellers.

Although Dorsett Singapore is positioned as a four-star hotel, it features creature comforts such as posturepedic mattresses, 40-inch LED televisions and rain showers along with artistic touches such as snakeskin wall covers, chandeliers as wall décor and quirky wall-mounted cameras as tags for room numbers.

Wong said: “While Dorsett Singapore is marketed as a four-star hotel, its location is worthy of five stars. However, we have to be fair (to our customers) and not peg ourselves as a five-star hotel since our room sizes begin from 22m² and most have no bathtubs. The design element here is strong, and we hope it will, along with our service promise, encourage guests to decide on our true star rating.”

Dorsett Singapore sits above Outram Park MRT interchange station on the fringe of the business district. It will house a roof garden, meeting and event facilities, a business centre with full secretariat services and meeting rooms, a gym, an outdoor pool with a sun deck, an outdoor Jacuzzi and four dining outlets when it is fully open in 3Q2013.

Complimentary Internet access is also offered throughout the hotel.

ENCOURAGED by last year’s 25 per cent year-on-year growth in Indian arrivals, the Philippines is looking at increasing flight connections between the two countries and easing its visa requirements.

The destination is aiming to increase arrivals from India by an ambitious 43 per cent to a total of 66,000 visitors in 2013, up from last year’s 46,000.

Benito Bengzon, assistant secretary – international tourism promotion, Philippines Department of Tourism (DoT), noted that India was already among the country’s top 15 source markets.

Planning to target MICE groups and Indian filmmakers, the DoT is looking for airlines interested in connecting key Indian cities to Manila in the hopes of doubling the number of such flights. Currently, Philippine Airlines runs a thrice-weekly service between New Delhi and Manila via Bangkok.

Arjun Shroff, managing director, Shroff Travels Manila, said: “Indian outbound travellers are capable of flooding destinations in the Philippines with sheer numbers but we need a way to get them to our country. More flights and specific packages that are of interest to Indian tourists are required.”

Rakesh Lamba, director, Prakriti Holidays New Delhi, said: “Many of our clients have expressed interest in Cebu, Boracay and Palawan as they are extremely attractive destinations, but the lack of flight connectivity renders our itineraries undeliverable over a sustained time frame.

“During the holiday season we can quite easily build fixed departures for the Philippines but we need at least a daily flight from either New Delhi or Mumbai.”

The Philippines government is also mulling visas-on-arrival for Indians as a means of increasing footfalls.

SHANGRI-LA Hotels and Resorts is slated to open its new flagship hotel in Shanghai – Jing An Shangri-La, West Shanghai – in June.

The 508-room property is situated within the Jing An Kerry Centre integrated complex in Puxi, Shanghai, occupying the top 29 floors of the 60-storey main tower. A 45-minute drive from Pudong International Airport and 20 minutes from Hongqiao Airport, the hotel is close to the Shanghai Exhibition Centre, Jing An Temple and Nanjing Road shopping street.

Jing An Shangri-La provides 4,465m² of function space, including a 1,740m² pillar-less Jing An Grand Ballroom, the largest in West Shanghai. It also comes with a roof garden, a 1,039m² pre-function area and is connected to the Jing An Shangri-La Event Centre, which houses a 514m² junior ballroom and six function rooms totalling 659m² of space.

The hotel’s signature event venue, the Lifestyle Suite, can hold up to 80 pax and has its own bar, reception area, living room, dining room and courtyard.

In-room, guests will enjoy an LCD television, bathroom with heated marble floors, a digital clock embedded in the bathroom mirror and views of Shanghai through nearly floor-to-ceiling windows.

Other amenities on the premises are the spa, health club, 25m heated indoor sky-dome lap pool and Horizon Club Lounge for guests staying in the Grand Premier Room category and all suites.

Cuisine wise, the hotel dishes up a range of dining options. Summer Palace offers South-eastern Chinese cusine, Pantry Chamber serves dim sum, Lantern Chamber specialises in claypot cooking and Imperial Chamber is suited for formal dining. Other restaurants include the 1515 West, Chophouse & Bar, Café Liang & mezzanine.

THE Straits Trading Company (STC) and Far East Organization are tying up for a stronger presence within Asia’s hospitality scene, with the setting up of a joint venture company.

In a statement issued yesterday, STC announced that it had signed a joint venture implementation agreement with Far East Orchard (FEOrchard), a listed arm of Far East Organization, to pursue and conduct hospitality management and hospitality-related businesses as well as invest in real estate used primarily for hospitality purposes and hospitality-related assets.

Under the agreement, STC will hold a 30 per cent stake and contribute Rendezvous Grand Hotel Melbourne, Rendezvous Hotel Perth and Rendezvous Studio Hotel Perth Central, as well as 13 hotel management contracts under Rendezvous Hotels International to the new Far East Hospitality Holdings. STC will receive net cash of S$56.2 million (US$45.4 million).

FEOrchard will take the remaining 70 per cent stake and bring to the table 25 hotel and serviced residence management agreements and also S$97 million.

STC chairman, Chew Gek Khim, said: “The combination of FEOrchard’s operational expertise and STC’s strong hotel presence in Australia and New Zealand through its Rendezvous hotels will create a formidable hospitality joint venture, which we plan to expand in their respective and new markets.”

The JV company will become one of the largest hotel operations in Asia-Pacific, kicking off with over 6,000 rooms under its management.

Separately, STC has also agreed to sell off Rendezvous Grand Hotel Singapore and Redezvous Gallery to Far East Hospitality Trust (FEHT) and Serene Land, a member of the Far East Organization group of companies.

The properties changed hands for S$285 million, with S$217 million in cash and S$68 million in FEHT stapled securities.

The two firms had earlier announced their intentions to collaborate late last year (TTG Asia e-Daily, November 28, 2012).

TRAVEL consultants who will face a loss of income when their passport-processing rights are phased out are being encouraged to diversify their revenue streams.

The Philippine Department of Foreign Affairs (DFA), which plans to open outlets in shopping malls for travellers to obtain and renew passports, allowed travel consultants to continue running passport-processing services until December 2012 and extended this deadline to June 30, 2013. Whether a second extension will be given is not yet known.

Passport processing can account for as much as 15 per cent of a small and provincial agency’s total business, especially when there is strong demand for such services by overseas Filipino workers.

John Paul Cabalza, president, Philippine Travel Agencies Association (PTAA), urged members to look for other sources of income, pointing out that due to online technology, opportunities for processing visas and other documentation were shrinking.

“Travel consultants can tap other sources of income, like from domestic travellers who are targeted to reach 56 million by 2016, inbound foreign arrivals to reach 10 million by 2016, and outbound travellers, which offer the potential of sale of European tours, cruises and niche markets,” he said.

CCT 168 Travel & Tours’ general manager, Ine Faustino, said her company had already started to focus less on passport processing since DFA required applicants to make personal appearances at .

However, she conceded that there would still be some who would continue to approach travel agencies for help, as “Filipinos like a personal touch”.

On the other hand, Michelle Victoria, president of the Quezon City Travel Agencies Association, said that such services were not the main source of income for many travel agencies.

She added that only four or five members in her association were accredited by the DFA for passport-related services.