AirAsia charts five-year strategy, shifts focus outside of Malaysia

January 28, 2013

AIRASIA has unveiled its strategic five-year business review with an eye to further grow its dominance in the Asian region.

As Malaysia has become “a cash machine”, the management will turn its focus to other core markets in Thailand and Indonesia, which are expected to generate similar profits to Malaysia in the future, according to group CEO Tony Fernandes.

“The other focus is to develop our new entities in Philippines and Japan whereby in terms of LCC penetration, they are still at their infancy and there is utmost growth potential,” he said.

“India is an exciting market, and I have been overwhelmed with the developments of the country recently in terms of promoting air travel. We will continue to explore opportunities there but I believe this market offers the most growth potential in terms of travel.”

Whilst other Asian countries like Vietnam, Cambodia, Laos, Brunei, Myanmar and South Korea seem attractive, AirAsia will focus on the group’s existing operations that offer bigger domestic alternatives and with larger populations. AirAsia will not proceed with any venture in Singapore in the foreseeable future too, Fernandes revealed, citing excess capacity out of the city-state.

AirAsia recorded a strong performance during the fourth quarter and 2013 is expected to be better in load factors and yields, he reported. The group will announce its full-year results in February.

The company has also placed an order of 475 aircraft, of which 114 have been delivered.

Cathay Pacific rolls out Premium Economy class for Mumbai, adds flights

By TTG Asia

January 28, 2013

CATHAY Pacific is set to launch the new Premium Economy Class on its Hong Kong-Mumbai service from March, and will also ramp up frequency on this route from seven to 10 weekly flights from April 2.

The Premium Economy Class has already been introduced on flights to Chennai and Delhi in 2012. The current weekly flights between Hong Kong and Mumbai are operated on a Boeing 747-400 aircraft with a four-class configuration, while the three additional flights will be operated on a three-class, Airbus A330-300 aircraft.

“Cathay Pacific will be the first East-bound airline to offer this class from Mumbai,” said Charlie Stewart-Cox, general manager-South Asia, Middle East & Africa, Cathay Pacific Airways.

Rita Dhanwatay, director of Pune-based Nikita Travel Solutions, said: “The addition of non-stop seat capacity to Hong Kong is a positive move as the destination is busy for both business and leisure.”

Rakesh Raicar, regional sales & marketing manager-South Asia, Cathay Pacific Airways, added: “Travel (consultants) and tour operators form the majority of the airline’s distribution channel in India and therefore, they are an important part of our marketing and promotional activities. This year, we plan to engage them through promotional fares and trade familiarisation trips.”

Meanwhile, sister airline Dragonair has also introduced New Business Class and New Economy Class cabins, which adopt the same designs used by Cathay Pacific for its new Regional Business Class and longhaul Economy Class products, allowing for a more consistent and harmonious inflight experience for passengers connecting between the two airlines at the Hong Kong hub.

Together, Cathay Pacific and Dragonair operate 46 weekly flights from six cities in India.

John O’Sullivan appointed MD of Tourism Australia

By TTG Asia

January 28, 2013

TOURISM Australia has named John O’Sullivan as its new managing director.

Most recently the CEO of Fox Sports, O’Sullivan has held executive positions with Events Queensland, the Football Federation of Australia and the Sydney 2000 Olympic and Paralympic Organising Committee.

The appointment is effective in late March and Frances-Ann Keeler, executive general manager international for Tourism Australia, will be acting managing director until then.

O’Sullivan’s appointment follows the departure of Andrew McEvoy who is now with Fairfax Media Events (TTG Asia e-Daily, October 16, 2013).

Park Hotel Group gets its first private label chain code on GDS

By TTG Asia

January 28, 2013

PARK Hotel Group has launched its private label chain code – PG – allowing travel consultants to conveniently locate and book the group’s properties across all GDSs.

“The launch of Park Hotel Group’s very own private label chain code is our latest initiative to strengthen our sales and marketing efforts. Besides allowing our travel (consultant) partners to search effortlessly for our hotels on GDS, the code PG is easily associated with Park Hotel Group as one strong representative brand, and will allow greater effectiveness when we reach out to new and potential partners,” said Mohd K Rafin, senior vice president of Park Hotel Group.

To commemorate the private label chain code launch, travel consultants will receive an 18 per cent commission until February 28, 2013 on GDS promotional rates for room bookings at Grand Park Orchard, Grand Park City Hall and Park Hotel Clarke Quay in Singapore; Grand Park Kunming, Grand Park Wuxi and Grand Park Xian in China; Park Hotel Hong Kong and Grand Park Otaru in Japan.

Going online to solicit tour feedback

By Warren Beaumont

January 26, 2013

From left: Blue Mountains; Bay of Fires

WHO Life’s An Adventure is a Sydney-based small-group, guided ecotour company operating in New South Wales and Tasmania.

Business from international clients has been increasing every year, with the Tasmanian tour season being the busiest. Another popular option is the Blue Mountains in New South Wales.

As such, owners Mark and Vicki Norek introduced online tour guide debriefs and customer feedback forms over a year ago to improve the efficiency of field and office support staff.

Mark (left) and Vicki Norek

WHAT Tour guides fill out the online debriefs after every tour, noting down what equipment was used and whether it needs to be replaced. Guides also leave feedback about the company’s administrative staff. Since the introduction of debrief forms, tour guides’ efficiency in the field has increased.

Sent out to all customers, online feedback forms also keep office staff updated on the performance of tour guides and equipment ratings. Many customers have contributed interesting ideas for improvement, such as suggestions on menu changes and which aspects of tours can be tweaked.

WHY The client’s enjoyment is of the utmost concern, said the Noreks, adding that comfort and good food on tours are among the company’s main drawcards.

The debriefs and feedback forms also help staff to keep customers front of mind and to improve service standards. Since staff are hired for personality and trained for skill, “it means so much more if the guides go further to ensure the client’s full satisfaction”, they said.

Target As a young player in the tourism industry, the initiatives allow Life’s An Adventure to develop more personalised experiences and satisfy their clients’ sense of adventure.

Northern Territory courts leisure, MICE from Singapore

By Hannah Koh

January 25, 2013

TOURISM Northern Territory (NT) is pursuing aggressive growth in the Singapore market by stepping up its marketing in 2013 and appealing to culture- and adventure-loving leisure travellers, as well as corporate incentives.

A Tourism NT delegation comprising CEO, Tony Mayell, and state tourism minister, Matt Conlan, was in Singapore on Tuesday for a roadshow to meet the local media and travel trade.

Mayell said: “We may have painted ourselves into a corner (by selling ourselves as an adventure travel spot). It’s not a bad corner to be in, but we want to re-identify what is unique to the Territory and sets us apart from the rest of Australia, then spread awareness of that.

“As a mature market, Singaporeans are also more interested in art and culture now. So we want to broaden the approach in Singapore by adding another layer, focusing on cultural products such as aboriginal art.”

In 2012, Singaporean visitors to the Territory only numbered 6,000 out of more than 300,000 arrivals to Australia. The goal is to increase arrivals from the market by 30 per cent this year.

Mayell cited the city-state’s 82 per cent repeat visitor rate as one reason for interest in Australia’s sixth-largest source market.

“Awareness is a main obstacle in Singapore. This year, we will continue to educate consumers and the trade about what NT has to offer, as well as taking marketing efforts onto a digital platform,” said Grace Tong, general manager of Pacific Leisure Marketing, Tourism NT’s marketing representative in the country.

“Destination training is an ongoing activity, which we organise at the request of travel consultants, either in house at their offices or in collaboration with the National Association of Travel Agents Singapore,” she said.

This year, Tourism NT will also launch bi-monthly email updates for travel consultants to keep them informed on the latest developments in the Territory. Interested parties may subscribe to it at singapore.tourismnt@nt.gov.au.

As for the MICE market, Mayell said: “We have facilities for small meetings and incentives. We’ve seen groups book out the entire Wildman Wilderness Lodge for three days for such events.”

He also revealed that the state NTO was in the midst of working with SilkAir on a number of MICE campaigns. “We’re into our second year with SilkAir, who has been a fantastic partner. While we and SilkAir are keen to increase (flight) capacity, we have first got to ensure the yield is there.”

Looking ahead, Mayell said Tourism NT was still studying the interests of different regional markets. India and South Korea are on the radar, while there are plans to break into China within 12 months.

Myanmar’s star rising despite hotel woes

By Shekhar Niyogi

January 25, 2013

MYANMAR’S shift to an open economy has transformed its tourism sector in recent years, and while European buyers at TRAVEX 2013 say the country is a rising star, they are calling for improvements in service and room rates.

Kerstin Streich, senior product manager Asia of Tischler Reisen, based in Germany, said: “We have sent many FITs to Myanmar over the last three years. Tourist inflow has increased 25 per cent every year over the last two years.”

France-based tour company Abako’s general manager, Jose Henrique Goncalves, said: “We sent five small incentive groups of 20-25 pax each to Myanmar last year, and got good feedback. This year we expect business to Myanmar to grow by 50 per cent.”

Goncalves believes that Myanmar will become a “single destination focus” for his leisure clients who are drawn to the culture, history and lifestyle of the locals.

Encouraged by a rise in enquiries from clients on joint Vietnam-Myanmar itineraries, Euro Tourism Azerbaijan will launch tours to the two destinations from next month, to run till April and resume in October. Its president Azad Aliyev predicted Myanmar would be popular for a long time to come.

According to the Ministry of Hotels & Tourism, arrivals totalled 1.1 million in 2012, a 30 per cent increase over 2011. The ministry expects similar growth this year, projecting arrivals of 1.3-1.5 million.

However, Tischler Reisen’s Streich lamented: “Hotel rates are very high but the quality of service and guides are still very basic.” She said five-star hotels command US$250, much higher than her desired US$150.

The shortage of international standard hotels in destinations such as Yangon, Mandalay, Bagan and Inle is also causing a headache, a problem the ministry is moving to remedy.

According to Kyi Kyi Aye, consultant to the Tourism Promotion Department, Ministry of Hotels & Tourism, five new hotels with more than 1,000 rooms are under construction, and 56 more with 4,000 rooms are due to open this year.

These will join the existing collection of 787 star-rated hotels offering 28,291 rooms, of which 30 properties or 5,207 keys were foreign investment projects completed in 2012.

Kyi Kyi Aye said the ministry checks properties to ensure they meet international standards, adding that it would step in to help should they require assistance. Meanwhile, the ministry is also formulating its tourism master plan, expected to be rolled out by end-March.

Read more in the ATF Daily

Additional reporting by Mimi Hudoyo

Hotel deals aplenty in Danang as competition intensifies

By Xinyi Liang-Pholsena

January 25, 2013

A ROOM boom in Danang over the past year has thinned occupancies and spurred hotels to offer hot deals to beat the competition, report Vietnam tour companies.

Danang is now home to eight five-star hotels and resorts with a total inventory of 2,041 rooms, showed data from the Danang Culture, Sports and Tourism Department website.

“In 2012, we saw a nine per cent dip in German roomnights, partly due to the decline in arrivals from Germany and partly because more hotels, such as InterContinental, Vinpearl and Hyatt Regency, opened in Danang, adding more than 1,057 roomnights per day to the four- and five-star categories,” said Nguyen Duc Quynh, executive assistant manager of Furama Resort Danang.

Chloe Chomienne, director of meetings & events of the InterContinental Danang Sun Peninsula Resort, which soft opened last June, said: “We see 25-30 per cent occupancy during the low season, or 60-70 per cent when there are groups. We expect occupancy rates to rise after our official opening in March this year.”

Meanwhile, tour operators are benefiting from an increase in room promotions, particularly during the low season.

Robert Tan, owner of Ho Chi Minh City-based Lac Hong Voyages, said: “The problem of room oversupply is most severe in Danang, particularly in the five-star category. We are seeing a lot more stay-three-pay-two promotions than before; some high-end properties are charging US$140-US$160 and some have dropped rates by up to 35 per cent.”

Frank Hasso Wiegand, managing director Europe, Focus Asia, who has also seen “more deals from resorts than before”, said: “The destination…needs the support of airlines to (grow its air connections).”

Danang also has to vie for tourists with nearby Hoi An and Hue. Doan Huy Long, director of sales, Phoenix Voyages, said: “Danang is not so attractive to tourists as it has only beaches, whereas cultural sightseeing and a beach stay can be combined at Hoi An. Danang needs more attractions.”

Read more in the ATF Daily

Thailand brews T-culture in China

By Xinyi Liang-Pholsena

January 25, 2013

THAI pop culture (T-culture) could well be the next wave to sweep across Asia, said Suraphon Svetasreni, governor of the Tourism Authority of Thailand (TAT), with the NTO identifying digital and celebrity marketing to boost the country’s image overseas.

Speaking to TTG Asia e-Daily at the ASEAN NTOs Media Briefing, Suraphon said: “Culture and tourism always go well together in promoting a country. We see the potential of T-culture as Thai drama serials and pop singers are now very popular in China, and we are using Thai celebrities as our tourism ambassadors there. We will tap Thai pop culture through new media channels to reach new market segments.”

Last year, the soaring popularity of Chinese film Lost in Thailand – which was shot in Chiang Mai – played a part in sending more Chinese tourists to Thailand, said Sansern Ngaorungsi, TAT deputy governor of Asia and South Pacific market. Some 2.7 million Chinese tourists visited Thailand in 2012, up 47.1 per cent from 1.7 million in 2011, to become the kingdom’s top source country last year.

In the pipeline is another Chinese movie to be filmed in Thailand, Sansern added. Titled Stranger in Thailand, the film will be partially funded by TAT and the producers are already in discussion with TAT and the Thailand Film Office on potential shooting locations in the country.

Over 200 films were shot in Thailand last year, Sansern revealed, but none attracted as much fanfare as the Chinese film. The TAT has no plans to fund other movies at the moment, he added.

At the press conference, TAT also unveiled its latest TV commercial, A Warm Welcome to All World, which will be aired overseas.

Read more in the ATF Daily

Flores works to promote destinations beyond Komodo

By Mimi Hudoyo

January 25, 2013

PRODUCT development is underway in the eastern part of Flores, with special attention given to the Maumere-Larantuka-Solor Island route.

A collaboration between the Swiss Secretariat of Economic Affairs and Indonesia’s Ministry of Tourism and Creative Economy, the initiative comes under the supervision of Swisscontact, the Swiss Foundation for Technical Cooperation.

Swisscontact project manager, Ruedi Nuetzi, said: “Normally, travellers take the Maumere-Kelimutu-Labuan Bajo (Komodo) route, while lately there are travellers taking the Ende-Kelimutu-Labuan Bajo route. The eastern part, however, is a bit off (the beaten track).”

Swisscontact had assisted various communities in Flores in setting up local tourism management organisations (TMOs), developing products and preparing for them to be promoted, with culture and nature being major draws.

Nuetzi said the media would be invited to try the route, and tour operators would be sought out for feedback on whether the route would be best suited for groups, FITs or other special interest travellers.

“Our target is to have East Flores as a separate (package) from the West, as it will (take) too long to cover the whole island,” he said. “We have seen demand for Komodo grow significantly (in the last two years), and we need to attract travellers to go beyond Komodo and give them reasons to stay longer in Flores.”

Flores Destination Management Organisation (DMO), a body comprising regional stakeholders and government representatives from the eight districts in Flores, will soon start trialling the East Flores route and play middleman to local TMOs and tour operators through its Bali office.

Floressa Bali Tours area manager, Heribertus Ajo, said he had already been packaging East Flores, featuring products such as trekking and bird watching tours to attract year-round traffic.

“Larantuka is currently a seasonal destination. (Visitors arrive) only between May and October, with the peak season in May during Easter. The real issue is accessibility,” he added.

Most travellers to Flores arrive via Bali, but Lombok’s new airport is seen as a possible international gateway. As part of the central government’s infrastructure development plans, Labuan Bajo’s and Ende’s airport terminals are also being expanded, while Maumere’s runway is being extended.

Read more in the ATF Daily