TTG Asia
Asia/Singapore Wednesday, 31st December 2025
Page 2453

Jetstar launches new domestic flights in Vietnam, Japan

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JETSTAR’S subsidiaries will commence domestic flights to new destinations in Asia – Buon Ma Thuot in the Central Highlands of Vietnam and Matsuyama in Japan.

Beginning March 26, Jetstar Pacific will operate five-times-weekly flights from Ho Chi Minh City and thrice-weekly flights from Vinh to Buon Ma Thuot.

On June 11, Jetstar Japan will launch daily flights out of Tokyo’s Narita International Airport to Matsuyama in Ehime Prefecture, but will adjust frequencies to 21 weekly flights after July 25 and 16 weekly flights after September 24.

The new service follows the announcement of new flights to Oita, Nagoya and Kagoshima made earlier this year (TTG Asia e-Daily, January 24, 2013).

Jetstar Group’s CEO, Jayne Hrdlicka, said introducing first-time LCC services to new markets previously only served by full-service carriers continued to be a key part of the group’s pan-Asian growth strategy.

TripZilla deals site expands to Malaysia

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TRIPZILLA is stomping into Malaysia with a localised version of the travel deal search site, my.TripZilla.com, its first overseas market after Singapore.

The Malaysian portal had been under construction since October last year, and now offers some 3,000 packages and itineraries from 69 travel agencies. It also aggregates promotions from 13 daily deals sites, LCCs, airlines, credit card companies and hotel chains.

“Technically, from the onset, TripZilla’s architecture was built such that it can easily be scaled to many other countries in the region. However, the team wanted to validate the product and ensure that we are profitable, before we took on regional expansion,” said Eric Koh, co-founder and CTO, Travelogy, the Singapore-based start-up that built and runs TripZilla.

“As more businesses move their marketing dollars online, and more people perform their travel research and bookings via the web, we are confident that our market will keep growing,” he added.

Laptop-and-latte workers, invisible travellers among new guest categories

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INTERCONTINENTAL Hotels Group (IHG) has outlined emerging categories of travellers moulded by socioeconomic trends of the day in a new report, The new kinship economy: from travel experiences to travel relationships.

The report, containing research by The Futures Company and IHG input, said Asian travellers would account for 20 per cent of global travel spend by 2020.

New global explorers come from high-growth countries such as China, India, Indonesia and Vietnam, and are keen to explore traditional must-see destinations. They also prefer hotels that provide a balance between the familiar and unfamiliar for a “home away from home” experience. As a result, many leading hotels have created Chinese menus and hired Mandarin-speakers.

Another group of travellers identified are evolving families. Multigenerational parties, traditional in emerging markets and increasingly common in the West, are challenging the idea of the standard room layout. On the other hand, the growth of the single person household has also driven demand for stimulating independent travel.

Millenials have also come out as a new breed of business travellers. Rejecting notions of the traditional work environment, this laptop and latte brigade enjoy working in intimate coffeehouse-style environments and are spurring a rethink in hotel business spaces.

Meanwhile, expansive mid-lifers, travellers over 50 years of age, are for the first time the fastest-growing and most affluent age group. They seek new experiences, but find amenities or services labelled “for older people” alienating. To reach this group, hotels should develop products and services for all age groups while being supportive of older guests.

The report also highlighted challenges of having to balance a growing guest preference for independence with a desire for hyper-personalisation from other guests.

Invisible travellers, made possible by the increased application of technology, are opting for an independent, human-free travel experience from booking to room service.

Simultaneously, customers are increasingly demanding predictive service or highly personalised and customised service. Hotels can provide this by hiring staff who speak multiple languages or chefs who can whip up vegan meals at short notice.

Asia’s hotel transaction volume tumbled 49 per cent in 2012

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HOTEL transaction volume in Asia in 2012 fell to almost half of 2011’s, dropping from US$3.7 billion to US$1.9 billion, dragging down the global total.

Calling these figures a “big surprise” at HICAP Update, Mike Batchelor, managing director, investment sales, Jones Lang LaSalle’s (JLL) Hotels & Hospitality Group, pointed out that the main drops were from Singapore and China, with possible reasons being the “cost of real estate and high pricing that needs to be paid” to enter these markets. He revealed that the hotspots last year were Japan, Hong Kong and China, with shares of 23 per cent, 20 per cent and 15 per cent respectively.

Batchelor added that Asia remains a small market for hotel transaction volume compared to other regions – it is less than a tenth of the Americas’.

Hotel transaction volume in the Americas grew seven per cent from US$16.3 billion to US$17.5 billion, and Australia expanded eight per cent from US$1.3 billion to US$1.4 billion. Europe, the Middle East and Africa registered an eight per cent decline from US$11.9 billion to US$11 billion.

Globally, hotel transaction volume slid by five per cent to total US$31.8 billion in 2012. However, this is predicted to inch upwards by 3.8 per cent this year, touching US$33 billion.

Responding to the drop in Asia, Outrigger Hotels and Resorts vice president, development and projects, Asia-Pacific, Michael Cowan, said there could have been little impetus to sell in 2012, with family-owned businesses not in financial difficulty and no distressed assets.

Park Hotel Group CEO, Allen Law, noted that while the market had stabilised last year, he was “seeing a lot of action” in terms of investment leads across the region in 2013.

IATA pokes holes in Europe’s revision to passenger rights

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THE International Air Transport Association (IATA) has expressed “disappointment” over the European Commission’s (EC) proposed changes to its passenger rights legislation.

Under the proposals put forward by the EC, passengers have to be reimbursed after a five-hour delay for all intra-EU flights and short international flights of less than 3,500km; after nine hours for flights of less than 6,000km; and after 12 hours for flights of more than 6,000km. The same applies to passengers who miss a connecting flight because their first flight was late.

Airlines are required to offer alternative routes via other carriers or transport methods where it cannot provide rerouting on its own services within 12 hours.

IATA highlighted three areas of concern in a statement:

  • The new proposal regarding compensation for passengers who miss a connecting flight, which puts the burden for compensation on the operator of the first flight, would amount to a breach of the Montreal Convention and discourage European carriers from offering connections to longhaul destinations. They would also be impossible to enforce for journeys with connecting flights outside Europe.
  • Diversions are treated the same way as cancellations by mandating significant compensation to passengers, although most diversions are made for safety reasons. Tony Tyler, director general and CEO, IATA, said: “It is perverse for regulators to second guess and potentially impose penalties for a captain’s decision made in the interest of the health and safety of passengers and crew.”
  • There is no limit on cost or class of service when offering passengers alternative routes of transport given that an airline has no seats on its own services. “If your Bic pen doesn’t work, you don’t expect to get a Mont Blanc as compensation,” said Tyler.

The new proposals are subject to the approval of all EU member states and the European parliament, and are due to come into effect in 2015, reported the UK’s The Telegraph.

Hotels should tread carefully in Myanmar ventures

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AS HOTELS clamour for a slice of Myanmar’s real estate, experts warn that those keen to invest should do so with their eyes wide open.

Benjamin Hirasawa, senior consultant at DLA Piper, a law firm specialising in hospitality and leisure, said it would be wise to go in with “patience and education”.

“There are a lot of people anxious to get into the Myanmar market now, but they should know that it is still a challenge inside. Many owners and operators will face problems if they do not understand what their investment really means, for instance how to get their money in and out of the country,” he told TTG Asia e-Daily.

For example, he said the Central Bank of Myanmar has “routinely attempted to limit the outflow of the already low levels of foreign currency reserves”.

John Koldowski, special adviser to the CEO, PATA, also cautioned it may be “too early” for investors to enter the market as there were still issues like telecommunications and infrastructure that have yet to be ironed out.

Myanmar’s shift to an open economy in recent years and room crunch are sparking a gold rush in its tourism sector (TTG Asia e-Daily, January 25, 2013). Hotel chains such as Accor, Best Western International and Hilton Worldwide have announced new properties for Myanmar (TTG Asia e-Daily, March 12, 2013).

Hirasawa said: “Myanmar offers tremendous potential, but before entering the market, it is wise to conduct thorough due diligence of all hotel developments to understand the risks involved.”

He highly recommended that owners and operators consider employing a local agent in view of domestic complexities. “It will be useful and will surely make a difference to have someone who knows the place and language well.”

MakeMyTrip offers insurance against credit card, smartphone loss

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MAKEMYTRIP has partnered OneAssist to offer customers credit card and smartphone protection in case of loss or theft, becoming the first Indian travel company to provide such a service.

Customers protected by OneAssist plans will have all activities on the lost cards and smartphone blocked up to seven days prior to the report made in order to prevent data misuse and financial loss. OneAssist will also settle hotels bills and arrange for a return ticket if required.

Travellers only need to call one number instead of contacting individual banks when they lose their credit cards, explained Rajnish Kapur, chief information officer and head – customer service, MakeMyTrip.

In the event of passport loss, OneAssist will support the customer with necessary documentation and foreign language translation where needed.

MakeMyTrip customers can purchase OneAssist protection while booking their tickets or holiday packages online. They are currently available to international travellers and HDFC Bank credit card holders, and will soon be offered to domestic travellers.

Sonal Swamy, director, Syrisa Travels, said: “The loss of (one’s) credit cards, mobile phone and passport can become a nightmare for tourists travelling abroad. OneAssist plans will provide the immediate and permanent relief that is crucial in such situations.”

Singapore’s tourism growth slows

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SINGAPORE continued to see an upward march in visitor numbers and tourism receipts for 2012, but this has dropped to single-digit growth.

Some 14.4 million tourists arrived in Singapore last year, a nine per cent increase over 2011, while tourism receipts recorded S$23 billion (US$18.4 billion), a mere 3.6 per cent rise. In 2011, visitor arrivals and tourism receipts grew by 13 per cent and 17 per cent respectively (TTG Asia tourism data, February 7, 2012).

The Singapore Tourism Board (STB) has forecast 14.8-15.5 million arrivals and tourism receipts of S$23.5-24.5 billion for 2013.

Addressing Singapore’s parliament, second minister for trade and industry, S Iswaran, said arrivals could not grow “indefinitely and sustainably” at the rates of recent years”. “Domestically, our land and manpower constraints mean we need to find new ways to do more with less. The next phase of tourism growth would thus have to come from increasing the yield through visitor spend, rather than just visitor numbers.”

He said: “Externally, the rise in Asian tourism over the coming years presents a window of opportunity for us to attract discerning travellers who seek out differentiated and value-added experiences.”

Iswaran pointed out that there was a need for strong content in the tourism sector to drive the push for high-yield tourists, adding that STB would establish a new Kickstart Fund with an initial funding of S$5 million to support lifestyle concepts with strong tourism potential and scalability, including pop-up entertainment, dining, retail or arts events.

Luxury Tours & Travel Singapore’s director, Michael Lee, was not optimistic about 2013’s prospects. “The tourism outlook in Singapore this year is not good because prices are rising everywhere. For example, hotel prices here cannot attract tourists because they are so high. Singapore is the most expensive city among neighbouring countries and this will make us lose out,” he said.

Nevertheless, Lee added: “Hopefully our new attractions here can bring (tourists) in, but we must make sure there are good service standards too.”

Additional reporting by Lee Pei Qi

Christchurch’s hotels bounce back

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FOUR hotels in Christchurch are scheduled to reopen by year-end after repairing damage wrought by the 2011 earthquake, bringing the number of hotels in the city’s three- and four-star segments to 19.

Heritage Christchurch’s Old Government Building will open its doors in May while Rendezvous Hotel Christchurch will welcome guests in the second quarter. Novotel Christchurch will resume operations in September and Latimer Hotel Christchurch in late 2013, said Tim Hunter, CEO, Christchurch & Canterbury Tourism.

Panorama Tours Malaysia’s head of outbound tours, Nick Chong, said having the refreshed products would appeal to guests, adding that he is selling sightseeing tours combining Christchurch and Queenstown as part of an 11-day itinerary combining the North and South Islands.

Hunter said that Christchurch and Canterbury Tourism were hammering out details of a collaboration with Singapore Airlines to get more family traffic for this winter season. The airline runs daily Singapore-Christchurch flights.

Christchurch International Airport has also commited to help fund marketing efforts to boost winter holiday traffic to the South Island of New Zealand.

Philippines sorely lacking in mid-tier supply

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THE Philippines has the largest pipeline of luxury and upper upscale rooms in Asia-Pacific after China, but industry watchers say what is needed is more branded accommodation that caters to its swelling domestic market.

According to data presented yesterday by STR Global area director – Asia, Jonas Ogren, about 50 per cent of the Philippines’ pipeline is in luxury and upper upscale, 30 per cent in upscale, 15 per cent in midscale and the rest in economy. This contrasts with its South-east Asian neighbours, whose pipelines of upscale and midscale rooms are as high as almost 70 per cent. The economy segment has the smallest pipeline across all countries.

Highlighting that the Philippines needed more supply in the middle, Narzalina Z Lim, president of Asia-Pacific Projects, a tourism and hospitality consulting company, said the country had about 35 million domestic travellers looking for affordable accommodation, with the figure growing by eight per cent every year and expected to hit 56 million by 2016.

The former tourism secretary of the Philippines said that since the government was in the midst of upgrading secondary airports to encourage direct flights from the region, hoteliers scouting for investment opportunities should consider locations “within an hour’s drive of these secondary gateways”.

These include hotspots such as Palawan, Cebu, Bohol and Davao, she said.

As for the popularity of China and India for future properties, hotel chiefs said these continued to be key markets, despite their challenges.

As of 2012, Asia-Pacific had 458,000 rooms in the pipeline, with the bulk headed for China (58 per cent), India (16 per cent) and Indonesia (seven per cent).

Speaking to TTG Asia e-Daily, Simon Cooper, president & managing director, Marriott International Asia-Pacific, pointed out that India’s lack of infrastructure was an issue.

“When you build a hotel, you need to build your own treatment plants, you can’t rely on 24-hour electricity and energy costs are also high.”

InterContinental Hotels Group chief executive, Asia, Middle East and Africa, Jan Smits, added that “developing talent” was his biggest concern, explaining that the company was investing a huge proportion of its resources in this area.

When asked if he was worried about last year’s negative RevPAR growth in China (-1.7 per cent) and India (-5.1 per cent), Smits said: “It takes a little time for demand and supply to catch up.”

In India, for instance, he explained that it was coming from a very low base. “It might have had one branded hotel in a city, then suddenly two or three…with such a big population, a huge middle class and 750 million domestic travellers, it’s all there.”

Thailand saw the highest RevPAR growth in 2012 (15.4 per cent), followed by Japan (13.2 per cent) and the Maldives (10.9 per cent). Singapore, Indonesia, Malaysia, the Philippines, Australia, South Korea, Hong Kong and Taiwan all posted single-digit growth. Vietnam, however, saw negative growth of 2.7 per cent.

Additional reporting by Lee Pei Qi