FOLLOWING the announcement of IATA’s New Distribution Capability (NDC) last week (TTG Asia e-Daily, October 22, 2012), Mobile Travel Agents Australia’s managing director, Roy Merricks, is rallying travel consultants against the initiative, calling it “the biggest threat to travel consultants since commission cuts”.

Adopted by the IATA Passenger Services Conference at the World Passenger Symposium 2012 in Abu Dhabi, the NDC is aimed at creating a set of open XML standards that will modernise airline retailing by enabling innovation in the way its products are distributed. It is speculated that the NDC will be rolled out for trial in 2013.

Merricks claimed that despite 60 per cent of all airline tickets currently being sold through travel consultants, IATA had not included agency groups in their discussions on NDC to date. He also expressed concern that IATA would develop the NDC to a high level with airlines before releasing the details.

According to Merricks, travel consultants stood apart for their ability to add value to the client experience while building travel proposals based on destination knowledge and connections on the ground. “If the airlines succeed with the NDC in its current form, that position may very well be compromised,” he said.

Merricks explained: “We are all aware that on occasion airline websites undercut fares offered to (travel consultants) through the GDS – we also know that the airlines’ goal is to reduce or eliminate segment costs they currently pay to the GDSs.”

“If the NDC succeeds along those lines, it is clear where the cost burden will move and that’s us. In turn, we will need to pass those extra costs on to our clients and the void between airline website fares and those available through the GDS will widen even further.”

He added: “I would urge all (travel consultants) everywhere to band strongly together on this issue, as must (travel consultants) globally with their relevant associations, in order to protect our collective position and ensure our needs as the largest single airline distribution channel are not damaged by this proposed NDC.”

MANUEL Ferrer has officially left Pacific World as managing director overseeing Singapore, Malaysia, Indonesia, Thailand, Vietnam and Cambodia, but he continues to serve TUI as consultant until March 2013.

Ferrer said he had achieved what he set out to do and that it was time for a new challenge.

Ferrer has worked with TUI for 13 years. He is credited with expanding TUI’s Hotelbeds to Asia from scratch at the end of 2005, based in Shanghai. He was involved in the acquisition of Pacific World and moved to Singapore in 2008. Under him, Pacific World, whose business was primarily the English-speaking markets, established new source markets including Spain, France, Germany and Russia.

Hotelbeds itself is now expanding in Asia. Regional managing director Middle East & Asia-Pacific, Pablo Aycart, said it was positioning itself for a 40 per cent growth in the region over the next three years (read more in TTG Asia’s Travel Distribution report, November 16 issue).

Aycart explained that TUI had restructured its Accommodations and Destinations division, within which Hotelbeds and Pacific World had been operating, and separated the businesses as B2B (Hotelbeds and Destination Services) and Specialist (which includes MICE, i.e. Pacific World).

Asked if this had changed things and influenced him to leave, Ferrer said: “My job is done. I’m looking forward to continuing living here in Singapore but with a new challenge.”

SINGAPORE-based TM Fouzy Travel & Tours, which specialises in the Muslim market, will lead four tour groups to Japan for the first time this December.

The introduction of these tours comes on the heels of the Japan National Tourism Organization’s plans to tap the South-east Asian Muslim market (TTG Asia e-Daily, October 8, 2012), following a rebound in visitor numbers from Malaysia and Jakarta over the past 12 months

“Japan is a completely novel destination for Muslim consumers. Not many Muslim tourists (from Singapore) have ventured (to Japan) as there’s a misconception that there’s a lack of halal dining options and facilities that cater to Muslims in Japan,” said the company’s general manager, Abdul Rahim.

“However, I firmly believe that there’s a lot of pent-up demand. Japan offers something very different from other Asian destinations in terms of culture and landscape, making it highly appealing to Muslim travellers.”

TM Fouzy Travel & Tours currently retails two separate seven-day group tours to Japan. One encompasses the Golden Route, taking travellers through Tokyo, Osaka, Mount Fuji and Hakone; while the second combines Tokyo and Hokkaido.

Priced at S$2,025 (US$1,655) per pax, the tours include flights with Garuda Indonesia, four-star accommodation, as well as all entry fees to attractions and halal meals. Malay- and English-speaking guides will lead the tours, comprising of an average of 30 pax each. Travellers will also have the opportunity to meet Muslim families and imams in Japan to find out more about the Islamic way of life there.

“If these tours are successful, we will market them to other Muslim specialists in Singapore. We are looking to sell B2B free-and-easy packages to Japan in the near future, and also offer itineraries to Yokohama, Kanagawa, Okinawa and Kyushu,” said Rahim.

He projects that this arm of the business will generate around 500 customers a year.

PHILIPPINE Airlines (PAL) is withdrawing from the domestic sector to develop its longhaul international services, believed to be more profitable and the first step to regaining flag carrier status, beginning with a new Manila-Toronto service in November.

Beginning this winter (October 28), PAL will transfer all domestic flights to sister LCC AirPhil Express, while retaining major domestic routes such as Cebu, Davao and Bohol.

The transferred domestic flights will initially operate as codeshares between the two carriers, meaning PAL is currently selling tickets for flights to be served by AirPhil, which is awaiting official approval for a name change to PAL Express (TTG Asia e-Daily, September 4, 2012).

Rochelle Monteverde, account executive, Global Explorer Travel & Tours, believes exiting the domestic sector is a smart move. Structured as a legacy carrier, PAL cannot compete with rates offered by LCCs, but AirPhil – as an LCC – can be positioned to compete with domestic market leader Cebu Pacific, she explained.

By concentrating on longhaul, PAL can also work on regaining its status as Philippine flag carrier, she added.

On the longhaul front, PAL has successfully applied for more seat allocations for the Middle East, and plans to fly to Europe and the US. With other carriers, it has also been allotted more seats to Asian destinations such as South Korea.

Meanwhile, PAL has also announced the launch of a Manila-Toronto connection beginning November 30, spurring a shakeup in PAL’s Canadian operations.

The daily Manila-Vancouver service will be revised to four times weekly, to alternate with a three times weekly Manila-Toronto flight. On the return leg, Vancouver-Manila will have a dedicated four times weekly service, with a shared service from Toronto three times a week. Toronto-Manila will thus be a one-stop service via Vancouver.

“There has been a big clamour from our customers in Toronto and all along Canada’s eastern seaboard, particularly from the large Filipino community, for a PAL service to their part of the country,” said Ramon Ang, president, PAL.

Minerva de Ocampo, operations manager, Sharp Travel & Tours, said opening new routes and nonstop flights such as Manila-Toronto provides more options for travellers, especially Asians who can now fly direct to Toronto without stopping over in the US, and not have to apply for US visas.

REORGANISATION is the name of the game at Tourism Australia (TA) China, as the NTO restructures the team and deploys more resources to the robust China market to tighten its hold on the country’s secondary cities.

TA opened its Beijing and Guangzhou offices in September and October respectively, and the Chengdu office is scheduled to begin operations in November.

Meanwhile, its Hong Kong office, headed by Carmen Tam, will shift to focusing solely on the Hong Kong market. Tam continues to report to Eva Huang, existing regional manager, Greater China, who is based in Shanghai.

Johnny Nee, regional general manager, North Asia, TA, will step down next month after 19 years of service. Claire Choi, manager Korea, will report directly to the international division in Sydney following Nee’s departure.

Said Nee: “We will soon see more potential market expanded into secondary cities. The Australian consulate will gain a foothold in Chengdu soon.

He said that the recent signing of an MoU between airports in Chengdu and Melbourne also indicated future development in western China, and that there was potential for Sichuan Airlines to connect the city with Melbourne.

“Our step is for the immediate future and not just for the long term. Indeed, the growth in China is faster than what we expected so we have to manipulate the pulse of the market in addition to (holding) market campaigns,” he said.

Statistics show that the Chinese have been the biggest spenders in Australia since 2010. The first seven months of 2012 saw 370,000 arrivals, making China the second biggest market after New Zealand. The number of Chinese visitors is forecast to hit 620,000 by year-end, and is predicted to hit one million by 2020. Meanwhile, Hong Kong’s arrivals from Australia have remained stable between 160,000 and 170,000.

FROM December 13, Royal Brunei Airlines will add three more flights a week to its Bandar Seri Begawan-Kuala Lumpur route, bringing the total number of weekly flights from seven to 10.

The three extra flights depart on Mondays, Thursdays and Saturdays, doubling the number of flights to the Malaysian capital on these days. Scheduled to leave Kuala Lumpur at 12.20, they will touch down at Bandar Seri Begawan at 14.40.

M Nantha Gopal, managing director, Nantha Travel & Tours Kuala Lumpur, said the additional flights would benefit traffic both ways, with Bruneians using Kuala Lumpur as a transit point, and Malaysians flying Royal Brunei Airlines to connect to Bandar Seri Begawan and other cities in the airline’s network.

Gopal added that Royal Brunei Airlines offered attractive connections via Bandar Seri Begawan “where airfares could be a bit cheaper compared to other commercial carriers”.

Ganneesh Ramaa, manager, Luxury Tours Malaysia, said the additional flights are also an avenue for travellers from Australia, China and the UK to travel to Kuala Lumpur and beyond via Bandar Seri Begawan.

He said: “(The increase in frequencies) is timely for the peak inbound year-end travel season. We will promote city tours in Kuala Lumpur as well as nature tours to Taman Negara National Park, Cameron Highlands and Penang.”

ACCOR has added one more property to its Indonesian portfolio with the opening of Mercure Jakarta Simatupang, targeting business and leisure travellers to South Jakarta.

Located in the centre of South Jakarta’s business district near Pondok Indah International Golf Course, the midscale hotel offers easy access to the area’s shopping centres.

The property’s 232 guestrooms are equipped with premium in-room Mercure and Me amenities, including international cable television and free Wi-Fi Internet access, also available throughout the hotel.

In addition, Mercure Jakarta Simatupang has four function rooms with a capacity of over 200 pax. Other facilities include a business centre, an Internet corner in the lobby, and various restaurants.

“In the last three years, we have seen more and more businesses moving their operations to South Jakarta to benefit from its proximity to executive residential areas and easy access to the international airport,” said Gilles Tressens, the hotel’s general manager.

“At the same time, the area currently has few internationally branded hotels, therefore it is not only the right location but also the right time to open this Mercure hotel in this area.”

To celebrate the hotel’s opening, Mercure Jakarta Simatupang is offering a special launch promotion with room rates starting from Rp580,000 (US$61) per room per night, including breakfast for two and an F&B voucher valued at Rp50,000, valid until December 30.