FOLLOWING a robust start to 2013 that saw the hospitality firm stepping up its presence overseas (TTG Asia e-Daily, January 15, 2013), Dusit International is now turning its sights closer to home with a new DusitD2 hotel in Khao Yai, Thailand.

Scheduled to open in 4Q2014, DusitD2 Khao Yai will be part of Phuphatara Khao Yai, a residential development by Vilailux Development, which plans to build villas and condominiums in addition to the hotel in the Khao Yai area.

Featuring a winery/vineyard concept, the 79-room hotel boasts a grill restaurant, a banquet-style meeting room, a lawn for outdoor events, a hot spring spa and a multi-purpose library.

“Offering classic Thai hospitality with a modern and chic touch, DusitD2 is one of the most promising brands of the Dusit family,” said Dusit International managing director and CEO, Chanin Donavanik.

SICHUAN Airlines will begin thrice-weekly flights between Melbourne and Chengdu on February 28, marking the first direct flights between Australia and western China.

Using Airbus A330 wide-body aircraft, it will provide an additional 76,440 seats every year.

Melbourne Airport CEO, Chris Woodruff, said: “The commencement of Sichuan Airlines’ flights follows the signing of a sister-airport agreement between Melbourne Airport and Chengdu Shuangliu International Airport last year, in which we committed to strengthening the relationship between our airports as well as securing more direct flights between our respective regions.

“Visitors from China will no longer have to transit through other cities en route to Australia, providing Melbourne and Victoria with a unique advantage for visitors from Sichuan and western China.”

Sichuan Airlines had started selling tickets for the new Chengdu-Melbourne service using the imagery of fairy penguins on Phillip Island, Woodruff added.

ETIHAD Airways has launched new daily flights between Abu Dhabi and Brisbane via Singapore, a booster shot for its thrice-weekly Brisbane-Singapore connections which have been in operation since 2007.

James Hogan, president and CEO, Etihad Airways, said the new daily service would add 1,048 seats per week on the Abu Dhabi-Singapore-Brisbane route.

“The additional capacity puts Etihad Airways in a stronger than ever position in the Singapore and Australian markets. It enables us to compete on a more level playing field than in the past,” he said.

The airline has deployed an Airbus A330-200 aircraft for the route, configured in two classes with 22 seats is business class and 240 in economy.

The flight departs Abu Dhabi at 10.25 daily, arriving in Singapore at 22.10. It departs Singapore at 23.40 and touches down in Brisbane at 09.40 the next day.

Meanwhile, flights take off from Brisbane at 11.55 daily to reach Singapore at 18.10 the day before. Abu Dhabi-bound flights depart Singapore at 19.45 and will land in Abu Dhabi at 23.30 the same day.

MALAYSIA Airlines (MAS) officially joined the ranks of the oneworld alliance last week, and has started getting cosy with fellow alliance member American Airlines through a new codeshare agreement.

MAS, which operates flights to more than 60 destinations in almost 30 countries, will expand the alliance’s network in South-east Asia.

The airline’s group CEO Ahmad Jauhari Yahya said: “Oneworld enables its member airlines to deliver more services and benefits to their customers – particularly frequent flyers – than any airline can on its own. For MAS, joining the alliance will strengthen its competitiveness, enabling it to offer customers an unrivalled alliance global network served by the highest quality partners from each of the world’s key regions.”

Members of MAS’s Enrich frequent flyer programme will be able to earn and redeem reward points when travelling with any member airline. Enrich Platinum and Gold members can also make use of the 550 airport lounges worldwide offered by member airlines.

At the same time, through a codeshare agreement with fellow oneworld alliance member, American Airlines, MAS will extend its reach into the US. American Airlines also stands to benefit from new growth opportunities in South-east Asia.

Following government approvals, MAS will place American Airlines’ code on non-stop flights between Kuala Lumpur and its South-east Asian destinations, as well as flights to European cities such as Paris and London.

Bookings for codeshare flights will begin as early as February 24 for travel beginning March 1, according to a press statement from American Airlines.

Meanwhile, in a bid to celebrate MAS’ entry to the alliance, American Airlines is offering members of its AAdvantage programme double miles whenever they fly an eligible fare on the Asian carrier between February 15 and April 15 this year.

WHILE room oversupply continues to be a recurring theme in Thailand’s hospitality landscape, hoteliers are confident of the sector’s outlook for 2013 amid strong tourism growth.

During the Thailand Hotel Leaders Summit panel discussion at the Thailand Tourism Forum 2013, InterContinental Hotels Group COO, Asia Australasia, Clarence Tan, downplayed the issue of room oversupply, saying Thailand’s many destinations would be able to absorb high inbound numbers.

“Pricing is a bigger issue than oversupply,” he cautioned, pointing to Thailand’s low room rates.

Peter Henley, president & CEO, Onyx Hospitality & Hotels, concurred, likening Thailand’s room glut to “a ticking time bomb” as hotel construction still outpaced rates.

Furthermore, delivering sustainable income growth amid rising energy costs and challenges in recruiting staff and boosting productivity was one of the “rain clouds” looming over the hospitality landscape, he added.

But opportunities abound to tackle the challenges facing the Thai hotel industry too, the speakers pointed out, especially in a market mix whose centre of gravity is increasingly shifting from Europe and the US to Asia.

Tan remarked: “China is a big source market, and Chinese customers are trading up rapidly to the upscale segments. Hong Kong experienced (the changing profile of Chinese travellers) within five years, and Thailand will see that too. Increasingly these customers will be chasing (high-end) experiences.”

Minor Hotel Group CEO Dillip Rajakarier, who observed a growing sophistication among the spending habits of Chinese and Russian travellers, agreed: “Chinese used to spend little when they visit our property in the Maldives, even carrying their own water from Malé, but today they are spending three to four times more on F&B and spa.”

At the same time, emerging South-east Asian economies will play a bigger role in Thailand’s tourism future.

Chanin Donavanik, CEO, Dusit International said: “(As) domestic tourism grows and more flights connect to Southern China, Laos and Cambodia, more destinations will open up in Thailand, particularly cities along the border.”

Meanwhile, Henley believes that Thailand’s corporate travel segment still has potential for growth. “There has been significant development of corporate hotels and destinations like Pattaya. Attracting meetings and corporate travel business should be the way forward.”

RUSSIA has piqued Macau’s interest as a new source market, with the number of Russian tourists on package tours skyrocketing by 122.9 per cent last year, though from a small base.

Arrivals from Russia are likely to continue soaring, given the visa-free pact signed by Macau and Russia’s authorities in 2012 that came into effect on September 30, allowing tourists a 30-day visa-free stay.

Gray Line Tours of Macau’s managing director, Andy Wu, urged MGTO to hold promotions in Russia to generate awareness of Macau as a destination.

Wu said: “(Macau) could be an add-on stop for Russians when they plan week-long visits to Hainan Island (in China).”

However, he acknowledged some difficulties in tapping the Russian market. “As (Macau is) a small city, it is hard to persuade (Russians) to stay long. We also face challenges such as (having to) train tour guides (to cater to Russian visitors) and the lack of direct air access between Macau and Russia,” he said.

To get to Macau, Russian visitors must travel via Hong Kong.

The new director of Macau Government Tourist Office (MGTO), Maria Helena de Senna Fernandes, said: “We are still testing waters. Promotions will be implemented step-by-step, so we can’t expect (too much) at this stage.”

She said MGTO would appoint a new marketing representative in Russia.

Fernandes was speaking at the MGTO Annual Press Conference 2013, where it was revealed that Macau would continue to explore different tourist segments and tackle overcrowding at key attractions.

“We hope to divert tourists from jam-packed attractions to other interesting spots in Macau,” she explained.

Wedding tourism is also on MGTO’s rader, having launched a wedding incentive scheme last November. Couples whose nuptials bring at least 50 non-local guests staying two consecutive nights at Macau’s hotels will receive tourism information kits, welcome gifts and other perks to help them better experience the destination.

SINGAPORE-based Asiatravel.com Holdings last week inked an agreement with China Xinhua Travel Network Services to supply the latter’s online wholesale system and provide XML integration of its database for a period of three years.

Xinhua, which has 30 branches and more than 400 retail outlets in major Chinese cities, will adopt Asiatravel.com’s online wholesale system, TAcentre.com, to book hotels, tours, attraction tickets and flight packages.

Asiatravel.com will also supply its global data of travel products to 51you.com’s system, a travel site owned by Xinhua.

Asiatravel.com’s executive chairman and CEO, Boh Tuang Poh, acknowledged the growth of international travel from China and added that “Xinhua Travel’s extensive network of agencies and business travellers will help us strengthen our presence in China”.

Xinhua Travel CEO Su Zhi Yi said: “As more Chinese traveller are seeking overseas destinations, we see a need to provide them with the most accurate data, price and inventory within the shortest possible time, and having this supply from Asiatravel.com will boost our operational and customer service efficiencies.”

INDIA’S Airports Economic Regulatory Authority (AERA) has approved a raft of fee hikes impacting both airlines and passengers at Mumbai and Kolkata’s international airports, a move akin to shooting itself in the foot say trade players.

At Mumbai’s Chhatrapati Shivaji International Airport, fees will rise 154 per cent across the board. Domestic airlines can expect to pay 40 per cent more while international carriers will have to shell out 120 per cent more.

Passengers are not spared. Since February 1, passengers have to factor in the new user development fees in addition to a current airport development fee. Passengers on international flights now have to pay Rs692 (US$13) on top of an airport development fee of Rs600. Those on domestic flights will have to fork out an additional Rs346, on top of a Rs100 airport development fee.

Slight relief will come between April 1 this year and March 31, 2014 when the new user development fees are reduced to Rs274 on domestic tickets and Rs548 on international tickets.

Meanwhile, AERA has also approved a hike in user development fees at Kolkata’s Netaji Subhash Chandra Bose International Airport. With effect from February 16, domestic and international fliers will pay Rs400 and Rs1,000 respectively. This fee will creep up to Rs424 and Rs1,060 from April 1, 2014 and again to Rs449 and Rs1,124 a year later.

AERA based its revised tariffs on air traffic projections for the next four years. It expects a 10 per cent annual growth at the Kolkata airport until 2015/2016.

Industry players were dismayed by the news.

“We are concerned that Indian airports are emerging as the most expensive in the world. How will it be possible for airlines to create hubs here?” said Tom Wright, chairman, British business group, Cathay Pacific Airways.

Rajendra Churiwala, director – eastern region, IATA Agents Association of India, observed: “The pressure on travel consultants is immense as clients demand cheaper airfares…Such high increases (in airport fees) will be counter productive.”

Delhi International Airport raised charges by 346 per cent in 4Q2012, only to have the Indian government order a return to previous rates on January 1, following an outcry from the both passengers and aviation players.

WARY of escalating commission rates that OTAs command, hoteliers are aggressively building their own direct platforms, with many of them noting phenomenal year-on-year gains in online sales.

Giving the keynote address on Asia’s travel trends, Minor Hotel Group senior vice president, commercial operations, Michael Marshall, pointed out that while hotels paid around 10 per cent of commission to OTAs back in 2009, this figure could be as high as 27 per cent now.

“(OTAs) are a great partner. They give you much wider distribution, but you need to manage them and you need to drive your own website,” he said, adding that his company chalked up an additional US$1.5 million from web bookings last year following a revamp of its website, which now features a new booking engine.

Dusit International COO, David Shackleton, took a similar view. “Based on my experience, larger hotel companies I’ve worked with are (also) desperately trying to move away from OTAs and move business onto their own websites and applications,” he said. “I don’t think OTAs are going to go away…but when you look at 40 per cent commission in five years’ time, nobody wants to pay that kind of price.”

He told TTG Asia e-Daily that Dusit was currently redesigning its website as well as mobile and tablet offerings, the first time after some four years. Less than 10 per cent of the company’s sales now comes directly from the website, a figure he is hoping to push to double digits.

Centara Hotels & Resorts has also recently revamped its website. Its director, online distribution, Phensiri Charoensuk, revealed that the group saw a 25 per cent increase in direct sales in 2012.

While recording good growth from third-party online bookings, she warned hotels about diving into tactical promotions with their OTA partners.

“Be careful because a lot of them are asking for deeper discounts. On top of the 25 per cent commission, if you lower your price by 20, 30 or 40 per cent, you can calculate how much you have in your pocket by the time you put all this together.”

OTAs, however, were unruffled.

HotelTravel.com, chief information officer, Olivier Dombey, believed that there would still be a role for the middleman. “Although you can aim for 100 per cent direct, it is never advisable because in any business, you’ve got to spread your risk. If you have a boutique hotel with a limited number of rooms, it’s possible. But for the vast majority of hotels to have such a strategy, it’s probably costly and damaging.”

As for commissions climbing further, he said: “This is rubbish. A hotel will never ever pay 35 or 40 per cent to OTAs…Commission levels are settling down. Those that are too expensive are starting to reduce their claims. (Across OTAs), we have the same hotels and same rates, so the commission level will have to adjust.”

– Read more in TTG Asia February 22 issue’s Travel Distribution report

TUNE Hotels is pushing into new territory with a new brand look, an upcoming F&B brand of its own and 70 hotels in the pipeline until 2015.

Speaking to TTG Asia e-Daily, Tune Hotels CEO Mark Lankester said the rebranding was a version 2.0 of the budget brand.

Currently, three properties in the chain bear the new look, including a revamped logo and colour palette, a lobby with more congregation space and a booking website that has been simplified.

Lankester also revealed during a session at Travel Distribution World Asia that Tune Hotels was cooking up its own brand of F&B establishments to be housed exclusively within its hotels. All F&B within the hotels are currently outsourced.

“We are still in early stages. We’re having people tasting the food and getting feedback from guests, as it’s all new space for us,” he said. “We’re trying to make it, dare I say it, as generic as possible for the market and testing the food in markets to see what is relevant.”

He added that it had not been finalised as to whether the new brand would take shape as a grab-and-go corner or restaurant for families, which may be dependent on the needs of each market. The brand would likely be launched sometime in 2013.

Tune is also on a development spree, with 70 new upcoming properties versus its 27 operational hotels. Ahmedabad, India will receive its first Tune Hotels on March 28 this year, while Tune hotels will open in Melbourne and Sydney in November 2013 and end-2014 respectively. Tune will debut in Japan between end-2013 to early 2014. Further openings within South-east Asia and the Middle East are also on the cards.

“But it’s really Africa that I’m excited about,” remarked Lankester. “It’s the fantastic growth. Sub-Saharan Africa’s GDP growth is outpacing everybody – except maybe China – at five to six per cent.”

With a focus on West Africa, including Nigeria, Kenya, Tanzania and Uganda, he said Tune would be opening its doors there in 2014 to tap domestic demand. Driven principally by domestic business travel from the oil and gas industries, Lankester said a burgeoning local middle class was part of the target audience.

“In Lagos for instance, if you were to attend a relative’s wedding, the infrastructure is so poor that you may not be able to return. You have to spend the night there, and a five-star hotel in Lagos costs US$500 a night,” he explained.

“Supply is poor, demand is soaring. We’re serving the underserved.”

He said he was looking at between 30-40 hotels to be set up in Africa within the next three to four years.

When asked why Tune was not focusing eastward in a time when China was booming, Lankester said: “We want to tread carefully. There are already six to seven major budget chains that are huge in China who will definitely defend their share of the market. It’s easy to make mistakes, but we are getting there in small steps.”

He said a hotel in China would come up in either 2013 or 2014.

“(China) is a country that we need to be in, even if it’s just in four to five major cities.”