Kingfisher loses licence to fly

October 22, 2012

INDIA’S Directorate General of Civil Aviation suspended Kingfisher Airlines’ air operator’s certificate on Saturday after the debt-laden carrier failed to meet the regulator’s concerns about its operations.

Kingfisher’s fleet has been grounded since October 1, due to an ongoing strike by its employees over unpaid wages.

Afflicted by debts estimated at US$2.49 billion by the Centre for Asia Pacific Aviation, analysts are doubtful that a buyer will emerge to bail out Kingfisher – which has yet to make a profit since launching in 2004.

With Kingfisher’s absence from Indian skies, airlines such as IndiGo, SpiceJet and Jet Airways have started operating additional sectors to make up for the sudden reduction in capacity.

Rajendra Churiwala, director – eastern region, IATA Agents Association of India said: “The other carriers have to fill up the seat capacity on routes in demand, without exploiting the customers with inordinately high fares during the upcoming festive and peak seasons.”

Garuda inks codeshare with Etihad

By Mimi Hudoyo

October 22, 2012

GARUDA Indonesia and Etihad Airways have entered into a codeshare deal that will see Etihad place its EY code on Garuda’s services from Jakarta to Denpasar (Bali) and Kuala Lumpur from October 28.

Subject to regulatory approval, Garuda will place its GA code on Etihad’s flights from Jakarta to three African, seven Middle Eastern, 13 European and three North American destinations, and will also switch its stopover on the Jakarta–Amsterdam route from Dubai to Abu Dhabi, effective December 2, 2012.

“The partnership with Garuda Indonesia will contribute to Etihad Airways’ efforts in expanding its network and its South-east Asian presence,” said James Hogan, president & CEO, Etihad Airways.

“Etihad would like to expand its cooperation with Garuda in adding new destinations, especially within Indonesia, and offer our consumers more variety and choice of travel.”

Emirsyah Satar, president & CEO, Garuda Indonesia, said: “The codeshare partnership will strengthen both airlines’ global networks and provide more benefits for our passengers.”

“This agreement will allow Garuda to expand its services to Europe, North America, the Middle East and Africa, while Etihad Airways will (receive) a better connection for its passengers in Indonesia, Australia and Japan.”

Additional reporting by Sim Kok Chwee

Airline industry embraces new distribution standards

By TTG Asia

October 22, 2012

THE IATA Passenger Services Conference adopted a resolution on a foundation standard for a New Distribution Capability (NDC) during the World Passenger Symposium in Abu Dhabi last week.

With around 60 per cent of all air tickets by value currently sold indirectly through travel agencies utilising GDS technology, the NDC aims to create a set of open XML standards that will modernise airline retailing by enabling innovation in the way its products are distributed.

Once implemented, the NDC will allow airlines to offer personalised offerings to passengers, who will also have access to all airline products and services regardless of distribution channel. It will also facilitate new entrants into the distribution sector, resulting in increased competition.

“A foundation standard for the NDC is the first step to enabling the development of open XML standards that will be available for all interested providers to work on and develop their own offerings,” said Aleks Popovich, senior vice president, industry distribution and financial services, IATA.

Skyscanner expands Asia-Pacific operations

By TTG Asia

October 22, 2012

ONE year after unveiling its Asia-Pacific headquarters in Singapore (TTG Asia e-Daily, June 28, 2011), travel search site Skyscanner has moved to a larger premises to accommodate blistering annual growth of up to 400 per cent across the region.

Driven by use of the company’s suite of free mobile apps that have been downloaded over 11 million times across the globe, visits to the Skyscanner site via mobile devices contribute as much as 50 per cent of overall traffic in some Asia-Pacific markets. Traffic to Skyscanner in the region now makes up more than 15 per cent of the firm’s 30 million online hits per month.

Skyscanner currently employs 12 nationalities at its Singapore base covering all areas of Asia-Pacific. It also recently opened an office in Beijing, where it signed a deal with Chinese search engine Baidu to display Skyscanner results directly on the results page after a user searches for international flights.

Ewan Gray, Skyscanner’s director for Asia-Pacific, said: “The rate of growth in Asia-Pacific is now surpassing that of many European markets. We fully expect this trajectory to continue and plan to capitalise on this progress over the next few years by expanding further across the region.”

Skyscanner aims to expand its workforce in Singapore with further hires in marketing, technical and commercial, in addition to bolstering its team of specialist market development managers for Asia-Pacific.

Jetstar Japan ties up with Amadeus for bookings

By TTG Asia

October 22, 2012

AMADEUS and Jetstar Japan have entered into a global distribution agreement that allows travel agencies access to the new airline’s fares, domestic schedules and inventories through the Amadeus Selling Platform.

Amadeus is the first GDS to offer Jetstar Japan’s content to agencies worldwide since the low-cost carrier began domestic operations earlier this year.

Miyuki Suzuki, CEO, Jetstar Japan, said: “This agreement will make our fares easily accessible to travel (consultants) in Japan and will provide more choice for Japanese travellers.”

The addition of Jetstar Japan complements the 70 low-cost carriers already available in the Amadeus system, including airlines in the Jetstar Group such as Jetstar Australia and New Zealand, Jetstar Asia, Jetstar Pacific and Valuair.

David Koczkar, COO, Jetstar Group, said: “Now (travel consultants) across the world will have the ability to book itineraries seamlessly for customers by combining flights across the Jetstar network.”

Refurbished Suntec to host enlarged ITB Asia 2013

By TTG Asia

October 22, 2012

MESSE Berlin (Singapore), organiser of ITB Asia, has announced plans to expand the show in 2013.

The organiser is aiming to take up two floors of exhibition space (across levels six and four) when the event returns to the newly renovated Suntec Singapore Convention Centre (TTG Asia e-Daily, November 1, 2011) from October 23-25, 2013.

“Suntec has given us the flexibility to expand the second tradeshow floor next year depending on demand for space,” said Nino Gruettke, executive director, ITB Asia.

“Our aim is to grow ITB Asia year-on-year not just in terms of floor space, but also in delivering high quality, relevant content that will be beneficial to delegates.”

The fifth edition of ITB Asia took place at The Sands Expo & Convention Center, Marina Bay Sands, Singapore, and recorded almost 8,500 attendees from 92 countries, a 12 per cent year-on-year increase.

Time wastage is top bugbear for business travellers: CWT

By TTG Asia

October 22, 2012

INCIDENTS which result in an unnecessary waste of time, such as losing one’s luggage or having to deal with an unstable Internet connection, have the greatest propensity for causing stress to business travellers, according to a recent study by Carlson Wagonlit Travel (CWT).

Part of a wider CWT initiative to shed light on the hidden costs of business travel caused by travel-related stress, the study surveyed 6,000 business travellers from nine global companies to understand the factors that trigger stress during a typical business trip.

Respondents were asked to score 33 stress factors that occur at different stages of a journey (from booking through to transportation, hotel stay and expense report) based on their perceived intensity.

Source: Carlson Wagonlit Travel

CWT discovered that there were three main categories of stress: lost time, surprises (an unforeseen event such as lost or delayed baggage) and routine breakers (inability to maintain daily habits).

Business travellers were most stressed by losing time during their journey, with the highest triggers of stress being lost or delayed luggage, poor Internet connectivity, flying economy on a longhaul flight and flight delays.

The study also highlighted how different segments of business travellers perceive travel stress. For example, travel stress increases with age and travel frequency, while women report higher stress levels than men.

When faced with an unknown language, business travellers from North America indicated greater stress levels than those from other regions. More senior executives also reported higher stress levels than other travellers within the same organisation.

Luring the bargain hunters

By Linda Haden

October 19, 2012

As Asians’ love for shopping keeps cash registers ringing at outlets worldwide, travel consultants are becoming more creative too.

Clockwise from left: Chic Outlet Shopping’s La Vallée Village outside Paris; McArthurGlen’s Noventa di Piave Designer Outlet near Venice; newly opened Johor Premium Outlets in Malaysia; Citygate Outlets in Hong Kong

In recent years, the global outlet shopping industry has turned its attention on Asian travellers, whose penchant for shopping while holidaying abroad has been a well-documented phenomenon.

Shopping has become a particularly important driving force of China’s burgeoning outbound tourism sector. In 2012, 78.4 million Chinese are expected to travel overseas, spurring outbound tourism consumption to a new high of US$80 billion, according to a research paper by China Tourism Academy.

Data from the World Luxury Association also showed that the luxury spending of Chinese consumers abroad during the seven-day National Day holiday in 2011 was equivalent to three months of what they spent locally.

In addition, outlet operators are increasingly keen to set up shop in Asia, with established chains having launched or in the midst of opening branches in the region (read more in the sidebar below).

Europe remains the nexus
According to The Economist’s Globe Shopper City Index in 2011, Europe is the world’s leading destination for luxury shopping, with 44 per cent of the global receipts from international tourism spent on the continent.

Furthermore, Asia’s rapidly rising disposable income levels, coupled with stronger Asian currencies relative to the euro and US dollar, have propelled both Western Europe and the US to become the top outlet shopping destinations, travel trade members pointed out, adding that Asians generally prefer to shop at branded enclaves such as Chic Outlet Shopping Villages and Premium Outlets.

Jane Chang, marketing and communications manager, Chan Brothers Singapore, said: “Besides favourable exchange rates, Singaporeans on holiday can collect refunds from value-added taxes, which amount to substantial savings. Moreover, Singaporeans want more bang for their buck, and factory outlets offer exactly this as items can be discounted by as much as 60 per cent.”

“The outlets in Europe are usually more popular with PMEBs, while the ones in the US tend to also appeal to families, as they feature a wider variety of brands, including children’s labels,” revealed Eileen Oh, head, marketing & communications, ASA Holidays Singapore.

Besides hefty discounts, outlet stores in Europe and the US also draw Chinese tourists for its superior product quality when compared to homegrown stores, noted Ding Jianmin, assistant general manager of China International Travel Service (CITS) Shanghai. As a result, the majority of Chinese group tours now supplement their sightseeing tours with outlet shopping, he added.

For Indians, Italy holds the greatest fascination for outlet shopping as it is commonly perceived as an alta moda (high fashion) destination with a wide variety of designer labels.

Said Alessandra Bolzagni, owner and president of Milan-based inbound operator, My Special Guest: “Popular among Indian tourists are Serravalle Designer Outlet, Prada’s Space Outlet in Montevarchi, Fidenza Village and FoxTown Factory Store. We try to bring (Indians) in during the sales period between July and October, when products come from previous years’ collections, samples or overproduction. The April-August period is when we get most Indian clients.”

Manoj Saraf, managing director, Gainwell Travel & Leisure India, said: “The discounts available at the shopping outlets are outstanding and entice the Indian tourist, as a 50 per cent discount on a genuine Prada dress or a Bottega Veneta bag is an unbelievable bargain for the knowledgeable Indian shopper.

“Italy is the most popular (destination) as shopping tours are easily combined with sightseeing and gastronomy in the Milan-Florence-Venice-Rome-Bologna region.”

Cashing in on demand
Asian outbound tour operators remain buoyed by their customers’ growing appetites for outlet shopping.

Said CITS Shanghai’s Ding: “Sometimes, there would be so many tourists in the stores that stocks would run out, so we choose to visit large-scale stores in big cities such as Bicester, suburban Paris, Milan, Rome, Los Angeles, New York and Miami.

“We usually include one or two outlet stores in each (itinerary). However, such stores are often located in remote areas – which takes almost one to two hours to reach – so the shopping time given to our customers will differ, ranging from three hours to a day,” said Ding.

Ankur Khanna, director, Tristar Travel Services India said: “We tie up with shopping outlets in the Milan, Bergamo, Florence and Bologna areas, and earn good commissions from them. This segment of the outbound market is growing by 25 per cent annually.”

Koushik Goswami, general manager-outbound, Travelcorp India, said: “We create new itineraries by combining shopping at outlets with gastronomy tours in the region like wine and balsamic vinegar tasting in Tuscany, and prosciutto and parmigiano reggiano cheese tasting in Emilia Romagna. These tours are becoming increasingly popular with upscale Indian travellers, and we have seen a 20 per cent growth in 2012.”

For others like Sunway Travel Malaysia, outlet stores are the clincher when choosing incentive destinations for some clients, according to the company’s operations manager, Agnes Loh.

She added: “Most popular destinations in Europe are Italy and France. If there happens to be a factory outlet at the destination visited, clients will suggest we include it in the itinerary.

“We will inform the outlets in advance to let them know that a group is coming over and suggest that they prepare a small welcome gift, such as a shopping voucher or a souvenir for participants.”

However, selling standalone shopping packages can be tough. “Some customers do not appreciate the effort travel firms invest to put these trips together and think that they can do it themselves. They overlook the fact that consultants are better connected, offer time-tested itineraries, economies of scale and take care of all (transport) logistics,” said Chan Brothers Singapore’s Chang.

Despite the challenges, booking volume for Chan Brothers’ 10-day Los Angeles and Las Vegas Shopping Spree and nine-day London and Paris Shopping Express have so far climbed by 20 per cent year-on-year.

High value for shoppers
Although highly popular among their clients, most travel consultants TTG Asia spoke to said they did not receive commissions or substantial profits from shopping tours.

Tie-ups with local operators to offer value-added services, such as reserved parking lots, extra discounts on shopping items and discount coupons at restaurants located within the shopping complexes are more commonplace.

“Although there isn’t any commission, the inclusion of shopping outlets is still important as it adds value and variety to our tour packages. For long coach journeys, it is a superb way to break the journey up as it provides time for what Singaporeans love to do – shopping,” said Alicia Seah, senior vice president, marketing & PR, CTC Travel Singapore.

Similar sentiments were expressed by Abdul Rahman Mohamed, deputy general manager channel management of Mayflower Acme Tours Malaysia, which includes a Chic Outlet Shopping Village as a half-day programme in some European itineraries.

He said: “We don’t earn commission from it, but the shopping element provides added value to the itinerary. It appeals to travellers who are not concerned about buying last season’s fashions, as discounts are up to 70 per cent. For FIT travellers, we include a Chic Outlet Shopping Village as an option.”

Tang Jiye, general manager, American region, Shanghai Spring International Travel Service, also pointed out that he was unable to obtain commission from outlet stores in the US, but said his company continued to include such stops in his itineraries due to the high demand among Chinese tourists who want to shop at such discounted rates.

Outlet stores around the world bag Asian shoppers

La Reggia Designer Outlet near Naples, a McArthurGlen outlet

Chic Outlet Shopping Villages
China is the top visiting nationality for its nine Villages in Europe, while South-east Asia is ranked the fourth largest market overall, with sales up by 41 per cent year-on-year compared to the second quarter of 2011. South Korea, Hong Kong, Taiwan and Japan also feature in the top 10. For the first two quarters of 2012, the top three Asian growth markets were Vietnam, China and Indonesia.

Chic Outlet Shopping works closely with the travel trade across China, Malaysia and Singapore through joint marketing initiatives such as the co-sponsorship of prizes and advertisements in brochures. Partner consultants are offered net rates for various products, including Shopping Experience packages and Chauffeur Drive services.

The first Chic Outlet Shopping Village in Asia is due to open in Suzhou, just outside Shanghai, in 2014.

McArthurGlen Designer Outlets
With nearly 900 brand partners across 21 outlets in eight European countries, McArthurGlen offers savings of 30-70 per cent, with further VAT refunds available at the discretion of individual stores. An additional 10 per cent savings is available for group tours, an incentive that has enticed hordes of Chinese who want to avoid China’s luxury sales tax.

Premium Outlets
Premium Outlets, which has a stronghold in the US, has ventured into South-east Asia with the debut of Johor Premium Outlets (JPO) in December 2011.

JPO boasts close working relations with Malaysian operators to include the outlet in their itineraries before these are promoted to overseas travel consultants.

JPO general manager, Jean Marie Pin Harry, said: “JPO also works closely with various local hotels in the state of Johor to offer Shop and Stay Packages, ensuring a complete visitor experience, including discounted room rates and access to additional savings at JPO.

“JPO is represented at overseas trade and travel shows by travel agencies and Tourism Malaysia. We target a wide range of shoppers, including residents from the area and international visitors from South-east Asia, China, Hong Kong, Taiwan and India.”

Domestic visitors currently constitute JPO’s biggest growth market. On the international front, growth markets are South-east Asia, China and India.

Citygate Outlets
Featuring over 90 international brands, this Hong Kong-based outlet mall offers 30-70 per cent discounts year-round, with different promotion programmes available at different times of the year to attract both local and overseas shoppers. The addition of 10th Avenue with nine new stores in December 2011 has augmented the mall’s shopping experience.

This article was first published in TTG Asia, October 19, 2012 on page 12. To read more, please view our digital edition or click here to subscribe.

Additional reporting from Hong Xu, Shekhar Niyogi and S Puvaneswary

Home-grown habitation

By Linda Haden

October 19, 2012

Tour operators around the region pick their favourite local economy hotels and highlight their edge over international competitors.

Hotel 81
Tony Aw
Senior inbound manager
Hong Thai Travel

Why There are a lot of choices and most properties are found in key locations bordering the central business district. Hotel 81 is quite basic, but it offers exactly what the budget traveller wants – clean, air-conditioned rooms in a convenient location at a low price.

How it compares Hotel 81 wins hands down when it comes to offering value for money. However, in terms of rooms, facilities and service standards, international economy brands have the advantage. Most Hotel 81 properties offer nothing more than minimally furnished rooms, but international chains such as Ibis tend to offer a little more – such as a restaurant or on-site parking. Moreover, rooms are furnished with higher-quality fittings.

How it can improve Hotel 81 should continue to do what it does best – offering no-frills accommodation at reasonable prices. It is easy to negotiate rates with Hotel 81 properties, and high occupancy rates at individual hotels are less of a problem, as there are numerous properties to choose from.

Network 24 hotels primarily in the suburbs or just outside the central business district, including Kovan, Geylang, Joo Chiat, Rochor, Lavender, Bencoolen and Bugis. Sister brands include Value Hotel, which operates in the economy category, and the upscale V Hotel.

In the pipeline Nothing at the moment.

Rates: From S$55-159 (US$44-129) per night

Fragrance Hotel
Jaclyn Yeoh
Managing director
Siam Express

Why We have established a good relationship with Fragrance’s director of sales. The reservations team is efficient and always willing to help. It is also easier to negotiate terms with Fragrance compared to international brands. Furthermore, we find that the rates that international brands give us are sometimes higher than the ones advertised directly to consumers online, which puts us in a quandary.

How it compares International brand hotels do fare better in terms of room quality and breakfast offerings. Nonetheless, customers on a budget are less concerned about ambience and extra services, as price is deemed to be more important when it comes to choosing where to stay. Fragrance wins in this respect, as its rates tends to be lower than international players.

How it can improve There needs to be more consistency across properties, especially in terms of housekeeping standards.

Network 22 hotels primarily within districts on the fringes of the central business district, including Geylang, Bugis, Katong, Novena, Lavender, Balestier, Little India, Harbourfront and Clarke Quay. Fragrance Hotel is one of two brands owned by Global Premium Hotels, the other being the three-star Parc Sovereign brand.

In the pipeline Global Premium Hotels intends to grow the number of properties under its Fragrance and Parc Sovereign brands in Singapore, Malaysia, Indonesia, Vietnam and Myanmar. A target of 200-300 rooms a year has been set. The Group has recently received government approval to build a 270-room hotel in Lavender in Singapore. An IPO was also launched in April to raise funds for its planned expansion.

Rates: S$68-138 (US$55-112) per night

Hotel Sentral
Manfred Kurz
Managing director
Diethelm Travel Malaysia

Why We use Hotel Sentral Pudu and Hotel Sentral Kuala Lumpur because of their good locations, good rates and cleanliness.

How it compares Rates are competitive with other local brands in the same category. You get value for money. The disadvantage is that this local brand is not known in Europe. This makes it rather difficult to market. We need photos and write-ups to promote this hotel to tour operators abroad.

How it can improve As a local chain, it needs to do more marketing to improve brand visibility. It should work with tour operators to promote the property abroad, attend tradeshows and create visibility on social media platforms.

Network Hotel Sentral has seven properties in Malaysia: Hotel Sentral Kuala Lumpur, Hotel Sentral Pudu, Hotel Sentral Kuantan, Hotel Sentral Johor Bahru, Hotel Sentral Georgetown, Redang Beach Resort in Terengganu and Tok Aman Bali Beach Resort in Kota Bharu, Kelantan.

In the pipeline It plans to open two new properties by 2014, one in Johor Bahru and another in Kuala Lumpur.

Rates: From RM130 (US$42) per night for a superior room

Alpha Genesis Hotel
Clement Ho
Head of sales
Asia Experience Tours

Why Alpha Genesis Hotel in Kuala Lumpur is in a good location, and the rates are compatible with clients’ budgets.

How it compares Management can make quick decisions for local brands. With international brands, decisions might take longer as they are made at the corporate office overseas. That said, with foreign brands you can expect a certain level of standards. With a local one, there is no brand familiarity. Travel consultants will not know what to expect in terms of service.

How it can improve Market the brand more to create more awareness. This can be done easily through social networking sites and through hotel review websites.

Network Alpha Genesis Hotel is a standalone property located at the Bukit Bintang area in Kuala Lumpur.

In the pipeline There are currently no plans for additional properties. Renovations at Alpha Genesis Hotel were completed in 2011 for all 116 rooms, and the hotel began offering free Wi-Fi in June. By year-end, the hotel will begin refurbishing all rooms with 24-inch LCD televisions and changing carpets in the corridors, with the facelift expected to be complete by Q12013.

Rates: From RM179 (US$58) for superior and deluxe rooms, including breakfast

Islands Stay Hotels
Clang Garcia
Managing director
Jeepney Tours

Why Sometimes travellers just need the basic amenities in a clean, reputable and trustworthy hotel. Islands Stay Hotels doesn’t play around with pricing. It has straightforward and simplified rates based on T-shirt sizes: small, medium, large and extra large.

How it compares It doesn’t offer commissions for business, which sometimes turns tour operators off, but we highly recommend it because it’s trustworthy and offers value for money on par with international economy brands. The design is chic too.

How it can improve I would suggest a travel concierge in case guests need suggestions on the best dining places, tourist attractions and information about the area. It may be a good idea to convert the registration area into a concierge area.

Network There are two hotels: one in Mactan and the other in Cebu.

In the pipeline The hotel chain is open to franchising, and there are plans to open more hotels in Cebu, Manila, Davao, Palawan and Baguio in the years to come, but no fixed date has been given.

Rates: From P950 (US$23) for a small room to P2,250 for an extra large room

Manila Airport Hotel
Ine Faustino
General manager
CCT 168 Travel and Tours

Why Reasonably priced, convenient and accessible, the Manila Airport Hotel is a stone’s throw away from the Ninoy Aquino International Airport. There is a free shuttle service from the airport, and a paid shuttle service to Terminals 1 to 3.

How it compares The airport has Wi-Fi, which is now a must for all hotels. It also offers massage and spa services for weary travellers.

How it can improve The hotel is far from shopping and recreational areas in Manila. What it can do is provide free shuttle services to say, the Mall of Asia and other points in Manila.

Network A standalone hotel at the Ninoy Aquino International Airport Complex.

In the pipeline Nothing at the moment.

Rates: From P2,798 (US$67) for a standard room, P3,198 for a superior room and P5,000 for a villa and penthouse suite

Sawasdee and Woraburi
Wacharaporn Katia Phiewkaow
Managing director
Discovery Holidays Co

Why Sawasdee and Woraburi brands are popular because budget hotels are in demand among Russian, French and Indian clients. Clients, especially in groups, specifically request certain hotels because they are affordable. Cost and location are the most essential customer demands, with good service being the added plus that brings clients back again.

How it compares We use local brands because they allow room allotments, always offer friendly promotional rates, and we have established a good business relationship with the brand over the years.

How it can improve With the basics of cost, location and service already in place, the brands can improve by aiming for growth in terms of marketing and service in order to keep up with the stiff competition in the industry.

Network Sawasdee & Woraburi Group operates a total of 16 hotels, with eight hotels in Bangkok, five in Pattaya, one in Phuket and two in Ayutthaya.

In the pipeline The Group is continuing to expand, with plans to add a new property in Bangkok in 2013 and two new hotels opening in Pattaya in 2014.

Rates: 1,000 baht (US$32) per night on average

Heritage Hotels
Mike D Tuladhar
Managing director
Aakash Tours & Travel

Why Positive feedback from clients is a key factor in our using Heritage Hotels time and again. The boutique hotel operation provides personalised service for both clients and tour operators, which makes the hotels easier to deal with. This is especially helpful in a crisis when the hotel owner can step in to resolve matters promptly.

How it compares Local hotels are more appealing because the personal service and affordable prices are more customer-friendly for both guests and tour operators when it comes to details and service, compared to the bureaucratic system that may exist with international brands.

How it can improve Local brands should continue to focus on their key strengths, which is personalised service, because attention to its customers is what keeps client satisfaction high and makes it easier to solve problems.

Network Heritage Hotels operates five boutique hotels located around Bangkok on Silom, Sathorn and Srinakarin Roads. It recently opened the new H-Residence on Sathorn Road.

In the pipeline It is unable to provide any information on future hotel projects at this time.

From 900-1,400 baht (US$29-45) per night on average

Favehotel
Adjie Wahjono
Operations manager
Aneka Kartika Tours & Travel Services

Why As an inbound operator handling leisure travel, we require hotels that provide at least a clean room with a bathroom, a comfortable bed, television, Wi-Fi and decent breakfast. Amaris Hotel (Santika Indonesia Hotels and Resorts) and Favehotel (Aston International) provide those.

How it compares Amaris and Favehotel have properties in many locations today, compared to Accor’s Formule 1 (Ibis Budget), which is just beginning to grow. We use economy brands because of their locations and the convenience they offer to our clients. It does not really matter whether they are international or home-grown brands.

We don’t use Pop! Hotels (Tauzia Hotel Management) because they provide only morning bites, i.e. tea or coffee, a small packet of rice and condiments, which is not really breakfast.

How it can improve Each brand needs to maintain consistency in terms of products and services. We have seen some hotels with swimming pools, others without, and some even have suites.

Network 13 hotels in Bandung, Jakarta, Jogjakarta, Solo, Surabaya, Bali, Langkawi.

In the pipeline At least 32 more properties have been planned for the period up to 2014.

Rates: Rp340,000-480,000 (US$36-50)

Amaris Hotel
Adjie Wahjono
Operations manager
Aneka Kartika Tours & Travel Services

Why Refer to Favehotel

How it compares Refer to Favehotel

How it can improve Refer to Favehotel

Network Amaris has 22 properties in Jarkarta, Bandung, Bogor, Cirebon, Semarang, Jogjakarta, Bali, Makassar, Banjarmasin, Palangkaraya and Pekanbaru.

In the pipeline Three more hotels are slated to open by the end of the year in Surabaya, Malang and Singapore, while 13 will open in 2013, mostly in Jakarta, Bali, Batam and Palembang.

Rates: Rp320,000 (US$33) per night on average

This article was first published in TTG Asia, October 19, 2012 on page 9. To read more, please view our digital edition or click here to subscribe.

Additional reporting from S Puvaneswary, Chami Jotisalikorn, Rosa Ocampo and Mimi Hudoyo

View from the top: Boh Tuang Poh (Asiatravel.com Holdings Singapore)

By Raini Hamdi

October 19, 2012

A pioneer in Asia’s online travel sector, Boh is still standing while most early players have perished. Business has become tougher with more competitors in the market, but he continues to have a game plan, rolling out TAcentre.com last week. Raini Hamdi talks to Boh about it

Boh Tuang Poh
Executive chairman
Asiatravel.com Holdings Singapore

You launched Asiatravel 17 years ago. What has hindsight taught you?
That we should probably have done B2B first before B2C and moved faster into the packaged space (TAcentre wholesales to agencies not just hotels, flights or tours but flight/hotel/tour or any of the three combinations).

Why?
We’re still selling B2C, but we believe B2B will be even bigger and will continue to grow. There is a gap to empower the travel agency business and help them achieve greater profitability.

The traditional agencies in Asia are still doing well; they are in fact growing because Asia is growing. Our study showed in the region alone, Indonesia has more than 3,000 travel agencies; Johor (the closest Malaysian state to Singapore) alone has more than 200 agencies; the Philippines, 3,500 agencies. And all this is just in our backyard, what more the rest of Asia. The mode of operation in a lot of these markets is still not as advanced as the big boys in the developed countries, so this where TAcentre comes in handy.

Why are traditional travel agencies still doing well?
Consumers still prefer to buy packages as these offer real savings. Airlines and hotels still introduce fares and rates that are meant only for package products. The leisure market is still more than 50 per cent of the total travel market, business about 17 per cent and the rest medical, VFR, etc.

The problem is costs are rising for travel agencies and many face manpower difficulties. At the same time, their customers are becoming more knowledgeable and demanding, which means they have to be more efficient and productive. Buying products offline from multiple sources involves a lot of work and communication, which costs money and is inefficient. And as you know, if you’re not able to respond quickly to the customer today, you risk losing the business.

This is why we make the clear distinction that agencies who use TAcentre can book full packages online, not just flights or hotels, and can get instant confirmation. We believe traditional agencies should continue to service the customer but use our platform to service themselves.

But there are other wholesalers, offline and online. Why TAcentre?
Other wholesalers sell flights only or hotels only. We sell flights, hotels, tours – the full range of products – and packaged tours. We give instant confirmation. Other wholesalers claim to be online. The content, yes, is viewable online, but you still need to wait for confirmation. So it is not e-commerce in the true sense.

We have the inventory – we have never deviated from our vision to be a one-stop full service travel player, with a full range of travel products, not a single vertical product.

We have not just the inventory but rates, as a result of us having a strong physical presence in the Asian market from day one and doing direct contracting with suppliers. The extent of our relationship with suppliers is such that if a travel agency wants to buy a ticket to attractions such as Universal Studios in Singapore, Disneyland or Ocean Park Hong Kong, or Sunway Lagoon (Kuala Lumpur) they can click and buy directly on TAcentre and the voucher, which is barcoded, serves as the ticket.

Imagine the communication/logistics involved just for this one attraction if agencies were to buy from another wholesaler.

We’re one of the few independent online travel companies; the others are aligned to other parents. We’re the only and the largest independent public-listed pan-Asia online travel reservation service provider. We have the system to do dynamic management/distribution of the wholesale programme online.

You’re not too different from a GDS.
Yes, or what they now term the ADS (Alternative Distribution System). We hope agencies do what they do best, i.e. engage the customers, while we are their supplier and provide them the system.

Seventeen years ago when you went B2C, did you think travel agencies would die?
I did, but then I did not see myself as a travel player but a technology player. I saw the Internet as a powerful channel which I understood. I didn’t understand the travel industry as much.

You could have gone online into other industries but chose travel. Why?
We did look at a few industries and we did operate an online super mart, as well as help companies create websites. But the travel business is not static – there is always something happening everyday and there is always a new possibility. Plus, you’re dealing with people. Previously I was in aerospace and in measuring instruments.

Travel is also a very sustainable business. Some industries will disappear. Travel – never.

How has the B2C business changed and how are affected by the entry of new players such as Expedia?
When we started B2C, even in those early days we envisioned ourselves as a one-stop service, as travellers don’t want only to buy hotels, but want cross-country travel, some ground transport, tours, etc, and that’s why we called ourselves Asiatravel.com, not just rooms.

We did well in the first 10-15 years on room reservations. But in the last two years, the business dynamics changed. As Europe faced difficulties and growth continued in Asia, more players started coming in here and, to gain a foothold, they are willing to spend massive amounts of marketing dollars. Asia is now their core and they want it fast.

But competition only helps speed up what we intended to do all along – i.e a full-service player – and it made us move faster, so in the last two years, we have been working on our B2B platform. We also got to understand the business more over the years.

Compared to 17 years ago, what’s it like operating this business today?
The pace is faster and more dynamic, unlike before when if you’re successful with what you’ve set up, you can afford to sit back. Today, even how well you do won’t guarantee your future success, so you have to be watchful, reinvent yourself if you have to, be flexible.

What motivates you – profits?
Definitely, after all we must take care of our shareholders (Asiatravel.com is listed on the Singapore Stock Exchange). But it’s not just about money – the money will come in when you’ve defined the end goal and do all to achieve it.

This article was first published in TTG Asia, October 19, 2012 on page 8. To read more, please view our digital edition or click here to subscribe.