Asia-Pacific breaks tourism record in 2012

March 12, 2013

THE Asia-Pacific region posted groundbreaking growth in 2012, welcoming 350 million international visitors to the region, according to preliminary statistics by PATA.

These figures translate into more than five per cent growth year-on-year, adding over 18 million foreign visitors and marking the third consecutive year of positive growth.

In terms of volume, Hong Kong, Thailand, Japan, Singapore, South Korea and Taiwan attracted more than one million additional arrivals last year, but the good progress award would have to go to Myanmar, Japan, Cambodia, Laos and Taiwan, all of whom boasted year-on-year increases of at least 20 per cent.

South-east Asia came out tops in annual percentage growth as a sub-region, having witnessed a 9.9 per cent hike or more than eight million additional arrivals last year, bringing total international inbound to almost 89 million arrivals.

In particular, Myanmar arrivals skyrocketed 52 per cent to break the one million mark. Cambodia and Laos boasted 24 per cent and 22 per cent increases respectively, pushing past the three million mark.

North-east Asia maintained four per cent growth in 2012, with almost 8.5 million more international arrivals year-on-year.

International arrivals to Japan recorded 35 per cent growth to overcome damage wrought by the March 2011 disaster and move once again into record arrivals territory.Taiwan, Hong Kong and South Korea added 20 per cent, 16 per cent and 14 per cent growth respectively.

Interestingly, China was one of the five reported contractions for the year with a 2.2 per cent fall or a decline of around three million international arrivals, which includes domestic travellers. However, foreign arrivals alone showed an increase of 1.6 per cent year-on-year.

Meanwhile, South Asia saw 6.6 per cent growth, adding over half a million international arrivals. The number of visitors to Sri Lanka rose by almost 18 per cent, busting the one million mark, while India welcomed 6.6 million arrivals, a year-on-year gain of close to 340,000.

Martin Craigs, CEO, PATA, said: “Asia and the Pacific continues to add substantially to the global international arrivals count. We expect that to continue for some time yet. The players shift and change of course and we can expect some movement in terms of generating and receiving markets. But across the region we expect substantial gains in both the volume and the value of these movements for some time yet.”

International hotel chains scramble for Myanmar

By Rahul Khanna

March 12, 2013

ACCOR has announced three new signings in Myanmar, joining other companies like Best Western International and Hilton Worldwide who have also revealed plans to open properties in the country.

Accor will develop three newly-built hotels – a 168-room MGallery hotel in Nay Pyi Taw, 366-room Novotel Yangon Max and 280-room Novotel Mandalay Mingalar – with the second to open by the end of this year (TTG Asia e-Daily, February 22, 2013).

Meanwhile, senior international development manager from Best Western International’s Asia and Middle East head office, Akarapong Sukjit, has confirmed that the chain has been discussing franchising and ownership options in Myanmar with potential investors.

He said: “We’ve had many meetings with local firms…There are many places we are interested in such as Yangon, Nay Pyi Taw, Mandalay, Kalaw, Bagan and other key destinations.

“After sanctions were lifted and after Hillary Clinton and President Barack Obama visited, that gave us confidence in the market. There are tremendous opportunities here, and a lot of foreign direct investment.”

Last week, Hilton Worldwide also signed an agreement with LP Holding to manage the 300-room Hilton Yangon in Kyauktada Township, the brand‘s first-ever property in the country, scheduled to open in 2014 (TTG Asia e-Daily, March 6, 2013).

South Korea in hot pursuit of Indians

By Shekhar Niyogi

March 12, 2013

KOREA Tourism Organization (KTO) is targeting 100,000 arrivals from India in 2013, having identified a wide range of offerings that will appeal to the market ranging from traditional homestays to cuisine.

KTO will focus on developing high-quality tourism products and special incentive programmes for tour operators and travel consultants, while also promoting cultural events, sports, cuisine, temples and traditional homestays to Indian travellers.

After a very successful foray in New Delhi, KTO opened its second Indian office in Mumbai last year. South Korea saw 92,000 Indian visitors in 2012.

Lee Jae-Sang, director, KTO India, said: “We will provide detailed information and product knowledge to the travel trade, as well as promote the destination through roadshows along with advertising, joint promotions, tradeshows and fam trips on a pan-India basis.”

South Korea is also keen to ride on the wave of Bollywood films being shot in foreign locations, in addition to its appeal as one of the top five convention destinations in the world.

Vineet Gopal, secretary, Outbound Tour Operators Association of India and managing director, Engee Holidays, said: “MICE and film tourism will require designing packages to suit these travel segments. The potential for growth is enormous as Indians are looking for new destinations all the time.”

Jetwing Hotels to double portfolio, readies for first budget opening

By Feizal Samath

March 12, 2013

SRI Lanka’s third-largest hotel chain Jetwing Hotels is in expansion mode, with plans to nearly double its room stock over the next 24 months.

Jetwing Hotels’ chairman, Hiran Cooray, told TTG Asia e-Daily that the family-owned group would increase its current inventory of 540 rooms by another 400.

Four new hotels – Jetwing Yala, Jetwing Colombo, Jetwing Dambulla and Jetwing Reef Uppuveli – would be set up under the company’s new subsidiary, Jetwing Symphony.

Another property on Arugam Bay would be added on later, Cooray revealed, adding that there are plans for an IPO for the subsidiary in due course.

“We are absolutely bullish about the present (economic) situation,” he said.

Meanwhile, Jetwing’s Hotel J, said to be the country’s first budget property, is set for an April opening in Negombo. The hotel will offer customers a five-star bed, shower/toilet and Internet access for US$35-70 a night. Guests will pay for add-ons, including food.

Jetwing, which currently has 13 properties across the country, will also be managing a hotel in Chennai, India, opening at the end of the year. The company had slowed its overseas activities after the Sri Lankan market became active when the civil war ended in mid-2009.

“Our overseas development slowed down a bit because of the development back home. We earlier focused on Laos and Vietnam, and still manage our properties there. We also own a property in New Zealand,” Cooray said.

Amadeus guns for more hotel sales with new one-stop platform

By TTG Asia

March 12, 2013

TRAVEL consultants will be able to search and book hotel content from multiple sources in a single screen with Amadeus Hotels Plus (Multisource), a new solution that integrates Amadeus’ GDS hotel properties with content from leading hotel aggregators.

Instead of shopping for rates across a variety of channels, travel experts can pre-pay, confirm bookings, issue vouchers and receive commissions instantly at the point of sale.

Said Kartikeya Tripathi, head of hotel distribution, Amadeus Asia-Pacific: “Changing consumer behaviour and enabling easier access to direct hotel content are creating both challenges and opportunities for our travel agency and hotel partners, which is exactly what this new solution addresses.”

Now available in India, China, Hong Kong and Malaysia, the platform will debut in other Asia-Pacific markets over the coming months.

Amadeus has also signed a full content partnership with B2B travel aggregator Travel Boutique Online in India, giving Amadeus Hotels Plus (Multisource) users access to more hotels in South Asia.

Crystal eyes Asian luxury cruisers

By Paige Lee Pei Qi

March 12, 2013

LUXURY cruise line Crystal Cruises is out to net more Asian travellers who are strapped for time with its new and shorter itineraries.

The international six-star luxury cruise operator’s calendar for 2014-2015 includes shorter cruise programmes, one of which is a new 14-day itinerary around Asia, beginning and ending in Singapore. Sailing next March, Crystal Symphony will call at ports in Malaysia, Thailand and Myanmar. All cruises up to April 2015 are available for booking.

Mimi Weisband, vice president of public relations for Crystal Cruises, said: “We want to expand our market and offer more choices to those who may be new to Crystal Cruises…There may be people who are short on time but still need a good getaway, so this is perfect for them.”

About 70 per cent of Crystal’s passengers are North American while the rest are international, with Asians being the fastest growing group, she observed.

“We are especially excited about the growth from Singapore as we had 21 per cent more Singaporean guests in 2013 compared to 2012,” said Weisband.

Helena Ow, general manager, Prime Cruise Asia, the appointed cruise specialist for Crystal Cruises in Singapore, said: “We have experienced double-digit growth with Crystal every year, with a minimum of 30 per cent.

“Customers know the brand and there is increasing awareness among them on the premier services available among cruises,” she added.

Crystal’s two ships, Crystal Symphony and Crystal Serenity, sail around the world on itineraries that can go up to 100 days.

Larger than their six-star luxury counterparts with a capacity of 1,000 guests each, Crystal Symphony offers 461 staterooms with sizes ranging 18.8-91m², while Crystal Serenity’s rooms are bigger from 21-125m².

Ships include entertainment by Tony Award-winning artistes and Broadway and West End performers, a golf driving range and putting greens featuring PGA golf instructors and clinics, and an upscale shopping arcade, among other options.

AirAsia gains foothold in Philippines through Zest Airways

By Marianne Carandang

March 12, 2013

PHILIPPINES’ AirAsia (PAA) announced yesterday its intentions to acquire 49 per cent of Zest Airways and 100 per cent of Asiawide Airways, which would allow the Clark-based low-cost carrier to benefit from Zest’s operations out of the Ninoy Aquino International Airport (NAIA) and its strong domestic network.

As part of the strategic alliance agreement, Alfredo Yao, the majority shareholder of Zest Airways and Asiawide Airways, will become the fourth Filipino investor in PAA, alongside Antonio Cojuangco Jr, Michael Romero and CEO Marianne Hontiveros.

“All Filipino shareholders will end up with 15 per cent each,” said Hontiveros at the signing. Funds will also be pumped in to “augment working capital”.

Zest has a domestic network of underserved but emerging tourist destinations such as Busuanga and Marinduque, as well as important connections from Incheon, Busan, Taipei, Jinjiang and Shanghai into its hubs in Kalibo, Manila and Cebu.

However, Hontiveros pointed out that would be no codesharing. “Zest will have their flights and will carry their own code, (while) PAA will continue its own flights. Each airline will operate separately, but we will synergise and cross-sell.”

AirAsia Group CEO Tony Fernandes, said: “Zest Air has a bigger fleet (in the Philippines), while the AirAsia Group has a larger network, so we will combine the best of both.”

Speaking to TTG Asia e-Daily, Elizabeth Pablico, general manager of Wintrex Travel Corporation and owner-operator of two AirAsia Travel & Service Centres in Manila, said: “I’m glad as I will have more products to sell now that (AirAsia) will have domestic and international flights from Manila care of Zest Air.”

As for Zest, she said it would “benefit from a partnership with the largest low-cost carrier in Asia, which has a superior IT infrastructure”.

Maria Michelle Reyes-Victoria, president and general manager at Golden Eagle Travel & Tours, added that Zest was not as aggressive in promoting its flights, sharing that she prefers using Korean Air, Asiana Airlines and Philippine Airlines for her South Korea-bound clients.

Tips on how to make profit (while keeping staff happy too)

By TTG Asia

March 11, 2013

Veteran hotelier and independent consultant, Giovanni Angelini, offers pearls of wisdom on how to stay afloat in today’s competitive industry.

Picking up from last column’s tips on meeting the changing needs of customers, Angelini offers reflection on branding, sales and distribution, and human resource management.

Studying the brand

Hotel branding is much more than just putting a logo everywhere. Clarify your brand standards carefully and clearly, and sell them internally then externally. Hotel brands tend to be so ubiquitous that they have lost their soul and uniqueness.

Avoid that by asking

Do customers understand the brand promise and is it delivered?
Is the DNA of the organisation reflected?
Is there image consistency on brand-related material?
What is being done to prevent brand erosion?
Have you measured perception of the brand position within the industry?
Of the total advertising and promotions budget, how much is spent on the brand position and how much on tacticals?

Marketing dos and don’ts

Avoid the long annual marketing plan. Have a document that is a useful working tool and with a clear mission statement for the fiscal business. It must have strategies for each segment of the marketplace with flexibility to modify tactics as necessary
The marketing plan is to be supplemented by a working directory of marketing manual. This is a “live” document containing programmes, activities and measurable performance reports. It must be updated on monthly basis
Plan and execute practical campaigns aimed at increasing market share. Listen to your customers and reflect on what needs to be done
Re-evaluate what worked and what didn’t last year. Learn from your mistakes
Traditional markets are important, but always look for new markets and new travellers with spending power
Develop a clear strategy for each segment and how this is measured. E.g. What is the volume and percentage of MICE business?
Focus on weddings as these are revenue generating and recession-proof
Explore the usefulness of a booker programme recognition
Manage your loyalty programme
Look at the condition of the hotel’s database
Measure conversion rate optimisation
Measure the percentage of repeat guests and length of stay
Be proactive on social media and respond to customers’ comments and recommendations

Getting the best yields

The love-hate relationship between OTAs and hotels/operators will continue. OTAs are beating branded hotel websites both on social media and in web searches. Such sites continue to be quick in establishing market dominance through consolidation. Hoteliers are doing poorly at cooperating for the common good of the industry and OTAs are taking advantage of this. OTA commissions remain far too high.

Manage your OTA relationships by

Controlling OTA volume and rate plus commission
Not allowing OTAs to purchase rooms below your BAR rate
Being alert to whether your OTAs have access to your special tactical packages and contracted corporate rates to top producers
Constant monitoring of your OTAs’ activities, refocusing on your own website and managing a dynamic pricing system

Guidance on revenue management

Give your revenue manager necessary tools to analyse data and plan accordingly
Develop a sales-revenue culture in the hotel that takes priority over any other activities and involve all division-department heads on sales and customer relation activities
Involve all division heads on the forecasting process (a month, three months, year-end) and set targets for accuracy
Revenue managers should be seen as a critical part of the executive committee
Manage your rates and ensure rate parity, if necessary adjust your BAR rate on daily or even hourly basis
Practice balance on increasing rate, occupancy (objective is the RevPAR)
Consider creating or participating in hotel search engine websites like Roomkey.com with the objective of reducing costs (commission) and expanding source of business
Are you measuring the amount of commission paid and comparing year-on-year?
Is there a daily revenue meeting at the hotel/s chaired by the GM?
How is the reservation team performing? Also what is the volume of business generated by the regional sales offices? Are there clear KPIs?
Ensure the catering book is controlled (normally one person is responsible)

Running a tight ship

No doubt generating the desired ROI is the final objective of leaders, but do you realise that revenue and profitability are not created at the corporate but hotel level – executed by a team of motivated and committed people and by having a competitive product that actively responds to ever-changing customer/market needs. In this demanding industry, strong and experienced leaders are necessary at both the corporate and hotel levels.

Remember the balance: happy staff and unhappy guests mean poor business, as do happy guests and unhappy staff.

Suggestions on leadership

Create a strong and clear aligned vision towards a common objective, addressing both your staff and customers
Avoid procrastination at all levels and respond quickly to the needs of staff and customers
Lead by example instead of a “do as I say” approach
Be visible i.e. get out from behind your desk
Delegate and recognise results and achievements
Be a solid communicator and maintain creative communication with your team at all times
Hire the right people (those “smarter” than yourself) but get rid of “rotten apples” quickly
Avoid unnecessary lengthy reports as well as third-party consultants who claim they can change the company’s performance. Note that a good and motivated in-house team can produce much better results than consultants.

Treat your staff well by doing the following

Provide an attractive career path and personal growth for staff. Ensure that compensation and incentive packages are among the top three to four in the city and that they are reviewed or updated annually
A long-term provident fund for executives and management staff is a must
Do evaluation often, always let people know where they stand and reward top performers
Avoid overloading your team with complex multi-programmes, but heighten their knowledge in technology, social media, etc
Have a programme that allows you to measure productivity e.g. revenue per labour hour, rooms cleaned per shift, covers per service period, etc
Open your team to new ideas and let them participate and contribute. Provide an environment of risk-taking
Look into basic facilities for staff e.g. lockers, showers, recreation, staff cafeteria and decide if it’s time to upgrade/renovate
Celebrate success but do not accept underperformance in your team
Create confidence and provide support in good and bad times

By Giovanni Angelini

GTA guns for FIT business in Asia

By Raini Hamdi

March 11, 2013

WITH the integration of GTA behind him, GTA’s CEO, Rolf Schafroth is now gunning for “substantial” growth. The business, now solely FIT, has better prospects, he said.

The synergies and efficiencies derived placed GTA on a platform to be “substantially bigger” going forward, explained Schafroth.

“The FIT business in Asia, for instance, is a huge market and that is one area we’re keen to grow, not just in gaining more Asian customers, but also intra-Asia or Asia to the Middle East – you don’t see these kinds of growth rates in the tour operating world.”

Aside from increasing marketshare in growth markets, GTA’s gameplan is to preserve its strong position in Europe; further increase its overall hotel inventory, both in breadth and geographies; enhance its product/service offering; and invest in cutting-edge FIT technology such as customer/supplier interfaces.

GTA is now under a new business division in Kuoni Group called Global Travel Services. Kuoni Connect has been discontinued, its content integrated into GTA.

The Global Travel Services division, of which Schafroth is concurrent CEO, also takes in leisure group business, now branded Group Travel Experts and has its own CEO, David Painter.

The other two Kuoni business divisions are Outbound Europe (comprising the traditional tour operating business) and Emerging Markets & Specialists, comprising DMCs, outbound tour operating in emerging markets and the visa processing business.

Currently, Outbound Europe remains the biggest division in turnover, but the Global Travel Services division is not too far behind.

Schafroth said Kuoni had a different business portfolio now. Five years ago, it was predominantly tour operating but now comprises six to seven different businesses, making it better-placed to tap opportunities while letting go of businesses that were under pressure.

In December, Kuoni sold its loss-making companies in the Netherlands, Spain and Russia. It also closed Kuoni and Best Tours activities in Belgium and its B2C online hotel platform, Octopustravel.

New tourism projects in Johor to lure Europeans and Asians

By S Puvaneswary

March 11, 2013

DESTINATION Resorts and Hotels’ (DRH) upcoming developments in Nusajaya and Desaru Coast in Malaysia’s southern state of Johor are set to appeal to both longhaul and shorthaul markets, using Singapore as a gateway.

According to DRH managing director, Mohd Nadziruddin Mohd Basri, the 283-key Traders Hotel Puteri Harbour – opening in May 2013 – and Legoland Hotel – due to launch in 1Q2014 – will be located next to the Legoland theme park in Nusajaya.

Also in Johor, another DRH project rolling out in 2015 is Desaru Coast. Located a one-and-a-half-hour drive from Singapore, the integrated destination offers a 17km beachfront, luxury resorts by international brands such as Amanresorts, The Datai and Sheraton, a waterfront retail village, a convention centre, two water theme parks and two championship golf courses at the first Els Club in Asia.

To reach out to tour operators and MICE planners in Europe, DRH will conduct a roadshow in Scandinavia in September and will also participate in joint sales missions with Tourism Malaysia and Malaysia Convention & Exhibition Bureau this year.

Tour operators in neighbouring Singapore are also looking forward to Johor’s new tourism offerings.

Dominic Ong, general manager of Star Holiday Mart Singapore, said: “Currently, the leisure market spends two nights in Singapore and three days in Desaru. But once the development is completed, we can look at packages combining two nights in Singapore and seven nights in Desaru Coast for the European market, which loves nature and beachfront hotels.

“With the new hotels, we can also look at converting Legoland Malaysia from a day trip to a one- or two-night stay for the regional as well as Chinese and Indian markets.”

Helen Goh, director of marketing at Vacation Asia Singapore, added: “Singapore’s green fee is expensive and on weekends, most golf courses are for members only. With the Els Club golf courses, we can do golfing on weekends in Desaru Coast and weekdays in Singapore.”