Azamara Club Cruises refurbishes both ships

September 10, 2012

THE European boutique hotel-style Azamara Journey and Azamara Quest will undergo renovations in 2012 and 2013.

Azamara Quest will enter drydock in Cadiz, Spain on November 7. Once renovations are finished, the ship will take off on a 13-night Madeira and Canary Islands voyage, followed by a four-night Spanish and African voyage, before making a trans-Atlantic voyage to Rio De Janeiro to begin its South America season.

Azamara Journey will dock at Singapore’s Sembawang Shipyard on January 6, 2013. On January 13, it will set sail on a 13-night Indonesian round-trip as part of its Asia season.

The 694-guest ships, which offer a combination of 347 suits and staterooms, will receive an extensive facelift and feature a new dark blue hull.

Enhancements include carpets, upholstery, mattresses, veranda furniture for suites and staterooms, the pool and sun loungers.

Upgrades have also been made to the ships’ two specialty dining areas. The first, Aqualina, will boast a new caviar and champagne bar, while the new Chef’s Table concept has three separate wine degustation menus on offer – Italian, French and Californian.

Travelport embarks on hotel rate audit

By TTG Asia

September 10, 2012

TRAVELPORT has initiated a programme to streamline the uploading of hotel negotiated rates, which will help to instill more confidence in travel consultants when serving their customers according to those rates.

Already operational in the US and Canada, it will be deployed globally later in the year.

According to research by CWT Solutions Group, some 25 per cent of hotel negotiated rates are uploaded incorrectly, if uploaded at all, at initial audit.

Some reasons stated were, the hotel’s failure to load data into the Property Management System or Central Reservation System; missing or inaccurate code information, with many outdated or duplicated, and the multitude of processes for uploading data.

To remedy the situation, Travelport is conducting rate audits with hotel suppliers and removing the outdated and duplicated codes within its system, while streamlining the uploading process for hotels and designing and implementating new processes.

The new process has already seen supplier compliance rise from below 80 per cent to more than 97 per cent.

Keith Harrison, global head, hospitality suppliers, Travelport, said: “Some of the positive changes we’ve introduced include building a feedback process, asking hotel chains to put service level agreements in place with local properties and increasing the frequency of updates in the Travelport GDS channel.”

New Wonders of the World online expo to showcase destinations in 3D

By Linda Haden

September 10, 2012

AN INAUGURAL new travel expo set to kick off in 1Q2014, Wonders of the World (WOW) aims to link the industry with some 600 million potential travellers in the world’s largest marketplace – the Internet.

Developed by 3rd Planet, a proprietor of interactive online travel experiences, the event allows the tourism industry to participate by reconstructing destinations in an interactive 3D format online. Consumers will then be able to virtually visit and explore a country’s key attractions from their computers or tablets.

3rd Planet CEO, Terence Mak, said: “WOW is a global initiative that will change the way consumers look and understand destinations. It provides the tourism industry with a new and exciting new way to market destinations and encourages the unique nuances of each country or destination through immersive new media. It will also inspire and spearhead global partnerships with the entire tourism industry and lower the cost of online marketing.”

To enable users to have a hassle-free and uninterrupted experience, 3rd Planet will be linking hands with local top-tier broadband operators in each country to roll out the high-speed event.

“Due to the partnership with broadband operators and device manufacturers, WOW will also forge new ways for the tourism industry to reach out to affluent consumers as well as tap the capabilities of the latest consumer devices, such as tablets like iPads and Android tablets,” Mak said.

West Java Tourism Promotion Board sets up KL office

By S Puvaneswary

September 10, 2012

WEST Java Tourism Promotion Board established last Saturday an office in Kuala Lumpur to raise awareness of tourism destinations beyond Bandung. It has also appointed Helmi Abdul Razak as its marketing manager (see TTG Asia e-Daily, May 2, 2012).

The Board’s executive director, Hilwan Saleh, said: “Many Malaysians only know about Bandung. But there are other interesting places to visit such as Tasikmalaya, Garut and its surroundings.

“By setting up a promotion office in Kuala Lumpur, we hope to see a five to 10 per cent annual increase in visitors, and we hope to capture more of the MICE market from Malaysia. We also hope to attract repeat visitors to West Java to visit these places and to venture beyond Bandung.”

Malaysia’s PYO Travel senior manager, customer support, John Chan, said: “We welcomed the setting up of an office here. The travel industry has always been focusing on primary gateway capital cities. The new office will spotlight secondary and out-of-the-way destinations that have never been on the radar. A local office will also improve the knowledge of travel consultants and support them with promotional literature.”

Bandung receives an average of 12,000 Malaysian visitors monthly, which makes Malaysia the biggest regional market to West Java.

During the West Java Tourism Exchange conference earlier this year, Indonesia Hotel and Restaurant Association West Java chairman, Herman Muchtar, said the aim was to secure 300,000 to 350,000 arrivals from Malaysia over the next four years.

West Java Tourism Promotion Board also plans to set up an office in Singapore soon.

View from the top: Allen Law (Park Hotel Group)

By Gracia Chiang

September 7, 2012

Fresh out of school when he first joined the family business, 32-year-old Allen Law has taken the Singapore-based owner-operator from one to eight hotels in eight years. He tells Gracia Chiang about the next growth phase

Allen Law
CEO
Park Hotel Group

You clinched your first management contract in Singapore last month. What’s next?
Park Hotel Group has been an owner-operator (in Singapore, Hong Kong, China and Japan). This is the first management contract we’re doing for a third party. The target was only one to two hotels this year. However, there’s been a lot of interest and by the end of this year, we’d likely be able to sign three to four projects.

Where is the interest coming from?
Our two key markets, Singapore and Hong Kong, but also China and Indonesia. We’d likely have five to eight more projects next year. We will then have about 20 hotels, both owned and managed. We’re looking at most of Asia (for expansion). Thailand, Vietnam and even Myanmar, where we were recently in for an exploration trip.

How is Park Hotel Group different from other management companies?
Some of these international brands are much bigger in terms for numbers, but we’re able to be attentive to the owners’ needs. We’re slightly different from chains who say ‘we have this brand name, we’ll put it in your building and give you a GM’ and that’s it.

Some international groups also spend a lot, but owners don’t think it’s necessary. For us it’s really driving the bottom line. The philosophy we have internally is whether this hotel is owned by us or third-party owned, we’ll manage it as if we’re the owner.

What about asset growth?
We’re adopting a two-prong strategy. Direct investment will continue but on top of that, management contracts. We’ll grow faster in management contracts because investment is more on a case-by-case basis. We’re always looking for the best location within cities but these might be hard to come by. Management contracts cover areas that we may not traditionally invest in because of certain risks. We want to grow revenue coming from fee-based (contracts) to a good 10 per cent of our total hotel revenue in the next three years.

You previously talked about launching an IPO. Is that still on the cards?
Due to the recent financial crisis we’ve put these plans on hold, but we’re monitoring the market. There’s always goodwill attached to a listed company. It will also release some capital for new investments.

Will you be sticking to two brands?
We intend to focus on Grand Park (luxury) and Park Hotel (upscale), but we’re also exploring buying a brand. Coverage, brand equity and concept are a few areas of consideration. A brand with 10 to 15 hotels will fit in very nicely with what we’re planning.

We’re also developing a budget concept. We’re currently not pushing it in the market, but if we have a partner who requests for that, we’d consider.

That’s very different. Why budget?
We have the expertise to do that. It’s about providing a good product in a relatively good location, yet at a lower cost. We’ve been doing well in that respect as we’ve been managing our costs relatively better than the market average in terms of GOP (gross operating profit). For some of our hotels, we’re running at about 60 per cent. Industry wise, it’s about 40 plus per cent in Singapore.

How are you able to do this?
We cut out a lot of the middle layer and have an organisation structure that is flat and broad. We empower our ground staff to do more on their own. Our Park Hotel Academy was set up last year, and we have a number of certified courses and qualified trainers. Training and development support is very important in order for this broad structure to survive.

You’re a young father. What roles do age and your personal life play in your business?
The advantage (of being young) is that I’m able to bring in a bit more creativity and innovation. Earlier on when I first started, people thought I didn’t know anything or tried to bully me or told me things that might not be 100 per cent true. I’m now much more experienced, so the disadvantage (of age) has kind of disappeared. I’ve managed to gain experience and respect from my team, and made many friends in the industry. I also believe in hiring experienced professionals to join the team so that I learn from them and they help build the organisation.

Now that I’m a parent of an infant, I’ve also been able to chip in for a children’s programme we’re about to roll out for our hotels. I know what the needs are based on hands-on experience.

How important will travel consultants be in your future?
Very important. I continue to believe that they are irreplaceable. Some of their marketshares might have been eaten up by e-commerce but they will still be key partners. Internet bookings, especially, tend to be last minute. If we want to lock in base business, the travel trade can plug the hole quite perfectly. Travel consultants have their different niches as well, so it’s about working closely with them. Our (distribution mix) is quite balanced.

This article was first published in TTG Asia, September 7, 2012 on page 6. To read more, please view our digital edition or click here to subscribe.

Exclusive enclaves

By Hannah Koh

September 7, 2012

Asia’s all-in-one playgrounds are crowd-pullers, but are they drawing the right mix?

Clockwise from Top: Macau’s Cotai Strip (top); Casino at Resorts World Sentosa, Singapore; Singapore’s Marina Bay Sands

Since the first integrated resorts (IRs) burst onto the tourism scene some years ago, they have captured the imagination of tourists and locals alike with their glamorous appeal.

The positive effect IRs have had on destinations has been irrefutable for most. Tourist arrivals to Singapore, home to Marina Bay Sands (MBS) and Resorts World Sentosa (RWS), have skyrocketed since the mega resorts opened in 2010. Demand is still strong, with bookings seeing a double-digit increase so far this year, according to inbound operators.

“Both IRs are now leisure destinations in their own right,” said Ram Samtani, general manager, Ramesh Travels Singapore, pointing out that Universal Studios at RWS and the world-class performances and exhibitions at MBS have successfully lured holidaymakers.

Over in Macau, growing numbers of young visitors and families have also turned up since IRs opened some five years ago, said Hong Kong-based Beng Seng Travel assistant director, Colman Or, who specialises in the destination.

But fast-forward a few years, and travel consultants say IR operators around the region must walk the tightrope between pandering to the very affluent and reaching out to a wider market.

Largely seen as high-end venues, IRs have been accused by some of being too exclusive and expensive for the mid-market, and even for repeat visitors who may be willing to fork out large sums, but not beyond a certain length of stay.

Kasel Travel Solutions Philippines, CEO, Eric Papa, said this has been Resorts World Manila’s (RWM) Achilles’ heel. “The problem is it’s only for the rich to go to the casino. It has an image problem.”

Shanghai Spring International Travel Service China deputy general manager, Asia-Pacific, Zou Qingling, said the high prices of hotel rooms were the main stumbling block. “Although IRs claim that they have thousands of rooms, we still can’t get rooms during the busy season as those are saved for their VIP clients,” she noted.

India’s Classis Travel & Tour managing director, Rajendra Dhumma, added: “IRs are making an attempt to retain guests for a longer period of stay, but the room rates are steeply hiked during the weekends. Obviously this leads to a stay of a maximum of three to four nights.”

Chalking up roomnights
Arguably one of the biggest concerns of the mega resorts today is how to entice visitors to increase their length of stay.

Luo Jiajun, director, tourism management department, East China Normal University, said: “Unlike the Westerners who like to relax by sunbathing or going to the spa, Chinese travellers are more dynamic. Their vacations are all about seeing various interesting places and eating delicious food. They like to look around when they are in a foreign country and they don’t like to stick at a place for too long.”

Smaller destinations like Singapore and Macau are at a disadvantage in this respect. Nantha Travel & Tours Malaysia managing director, Nantha Gopal, said it was difficult to get his clients to stay more than two days at RWS as many travel to Singapore on weekend trips and want to see more than a theme park. Similarly, Hong Kongers rarely stay for more than a night in Macau’s IRs, pointed out Beng Seng Travel Hong Kong’s Or. “Escalating hotel rates every year also make the city more expensive compared to neighbouring destinations,” he said.

Hong Kong-based MV Destination general manager, Clemson Lo, said the IRs in Macau would have an even harder time keeping tourists within their complexes when the city’s monorail becomes functional in 2016. “I think the competition would be even worse, as tourists would be able to move around much easier.”

He added that while the IRs had a good number of entertainment acts comparable to Las Vegas, many were paid attractions. “To make it less exclusive, have more free entertainment, such as the recent Butterfly Pavilion at MGM Macau,” said Lo.

Gray Line Tours Hong Kong managing director, Michael Wu, suggested that the Macau IRs also leverage on the new development coming up on nearby Hengqin Island, a special zone in Zhuhai designated for tourism, business and conventions.

Indeed, IRs throughout Asia will have to up their game if they want to persuade their guests to stay longer, even if that means moving towards more cross-selling, said travel consultants.

Alicia Seah, senior vice-president of marketing and PR of Singapore-based CTC Travel, said: “With more theme parks being built across the border in Johor (in Malaysia), including Legoland and Hello Kitty Town, IRs could consider tie-ups.”

Malaysia’s Mayflower Acme Tours, deputy general manager, channel management, Abdul Rahman Mohamed, too, observed it was easier to sell Macau and its IRs when twinned with Hong Kong. He opined that IRs should collaborate on value-added packages. “This would appeal especially to the European and Middle East markets who love IRs because everything is confined within that space,” said Abdul Rahman.

Becoming better bedfellows
Moreover, travel experts told TTG Asia that the IRs were missing out on a number of opportunities to obtain more business.

Ramesh Travels Singapore’s Samtani said RWS and MBS should look beyond working with the largest inbound operators. “Smaller players might bring in low volumes, but they could actually deliver higher yields, as they ofen focus on more lucrative niches.”

Contract rates, or the lack thereof, are another bugbear of the trade. Nantha Travel & Tours Malaysia’s Gopal said it was difficult to work on long-term packages with his Singaporean counterparts because of the lack of contract rates from hotels. “We cannot do packaging using Internet rates,” he said.

Mayflower Acme Tours Malaysia’s Abdul Rahman agreed, saying that with such dynamic rates in Singapore, he could not commit to customers without fixed rates.

Kasel Travel Solutions Philippines’ Papa added: “(RWM) is only tapping the online market. The contract rates it gives are not that appealing compared with the good rates offered on its website.”

The price has to be right
Offering a value-for-money proposition remains key, especially for one of the largest outbound markets in Asia.

Macau’s Venetian, for one, is a hit with most categories of the Indian outbound traveller, having priced its 70m2 rooms attractively. Galaxy Macau, on the other hand, does not offer the same bang for the buck even though its 45m2 rooms are priced marginally lower, observed travel consultants.

“The Indian traveller understands the equation of value for money very well and has his distinct preferences,” said Rajesh Sethi, managing director, Carnation Travel Services India. This does not necessarily mean they want it cheap, but they will carefully examine the cash cows that most resorts milk for profit.

Mitesh Dani, managing director, Parul Tours & Travels India, contended: “IRs should offer seasonal discount packages to coincide with the Indian outbound high season. Moreover, Oriental cuisine is predominant, but there is a lack of Indian food at reasonable prices.”

A holistic assessment is needed to get the offering and the price right, said Mamta Panjani, general manager, Mercury Travels India.

A tricky balance
At least one IR so far has been trying to broaden its appeal. RWM vice-president for marketing communications, Martin Paz, said its new Remington hotel had brought affordable budget rooms and serviced apartments onto the grounds, while casual dining outlets and fast-food brands had also opened. He enumerated other recent efforts to draw more travellers “regardess of niche markets”, such as the GameZoo, a 6D theatre experience for families, and free entertainment like The Edge of Glory, an acrobatic show.

However, CTC Travel Singapore’s Seah felt that MBS and RWS had already hit the mark in terms of positioning.

“RWS has a good mix of family-oriented attractions and restaurants that cater to people from all walks of life. MBS is visibly targeted at the wealthy, but some of its attractions and food and beverage options are still accessible to the mid-market segment,” she said.

Uniglobal Singapore managing director, Victor Yam, went further to argue that the IRs should never cater to the mass market. “Singapore is small, and if both resorts cater to a wider audience, our infrastructure might not be able to cope,” he explained.

What’s new

Resorts World Sentosa, Singapore
Tree Top Lofts
The IR’s latest addition to its accommodation portfolio, the unique 163m2 Angsana and Tembusu lofts offer nature-loving guests five-star luxury in verdant surroundings. Apart from close-up views of the flora and fauna in the immediate area, guests will also enjoy panoramic views of Mount Faber to the north and the forests of Sentosa to the south.

Marina Bay Sands, Singapore
The Jersey Boys
Another smash hit musical is making its way to Singapore as the year draws to a close. Premiering on November 22 in Singapore for a 14-week season, The Jersey Boys tells the real-life story of how four poverty-stricken boys grew up to become Frankie Valli and the Four Seasons, one of the greatest successes in pop music history, selling 175 million records worldwide.

MGM Grand Ho Tram Beach, Vietnam
The five-star property will open in 1Q2013, offering 541 guestrooms, a convention centre, 90 live table games, 500 electronic games and VIP facilities. There will also be ocean sports, movie houses, a library, retail areas and a Kids’ Corner & Teen Centre.

Solaire Resorts & Casino, Philippines
One of four IRs that make up the Entertainment City adjacent to the Manila Bay area, Solaire will be launched in 1Q2013.The billion-dollar complex will feature a 500-key hotel, a pillar-less ballroom for up to 1,600 people and 18,500m2 of gaming space, including a 5,000m2 VIP salon.

Resorts World Manila, Philippines
The King and I
The fresh take on a beloved musical stars Leo Tavarro Valdez and Monique Wilson, veterans of the musical theatre scene. Starting September 15, the production boasts innovative props and light, sound, video technology, with a wardrobe designed by local fashion icon Rajo Laurel and Aksana Sidarava from Belarus.

Sands Cotai Central, Macau
Macau’s newest IR debuted in April with 6,000 hotel rooms and suites and 111,000m2 of retail, entertainment and dining facilities, as well as meeting and convention space. It will be complete when the world’s largest Sheraton property is inaugurated this month. Already opened are hotels by Conrad and Holiday Inn.

This article was first published in TTG Asia, September 7, 2012 on page 9. To read more, please view our digital edition or click here to subscribe.

Additional reporting by Linda Haden, S Puvaneswary, Shekhar Niyogi, Prudence Lui, Rosa Ocampo & Hong Xu

Maharashtra dangles tourism incentives

By Rohit Kaul

September 7, 2012

INDIA’s state of Maharashtra – where Mumbai is based – is on a drive to ramp up tourism as it offers a tax break in projects, develops a Sea World theme park and plans a port upgrade.

Speaking at the recently concluded convention of the Indian Association of Tour Operators in Mumbai, tourism minister, Chhagan Bhujbal, said: “We will provide a 10-year tax (break) for tourism projects in Sindhudurg district to boost tourism and levy industrial rates for the use of water in tourism projects. We will also provide 50 per cent concession on registration fee for tourism buses and stamp duty on tourism projects.”

It will also be easier for restaurants to operate, as the number of licences required will be reduced, the validity of licences extended from one to five years and the submission of applications streamlined to a single-window clearance.

Meanwhile, plans to develop the Rs5.1 billion (US$91.9 million) Sea World project in Sindhudurg have gotten primary approval. The state and union government will fund Rs1 billion each, while private participation will be to the tune of Rs3.1 billion.

To attract international cruise ships and overseas cruise tourists, the Maharashtra government has sent a proposal to the country’s authorities to expand the present passenger terminal at Mumbai’s port to develop facilities to international standards.

In addition, the state government is looking to reduce the sales tax on aviation turbine fuel, which stands at 25 per cent at present, Bhujbal added.

IHG steps up expansion in Indonesia

By TTG Asia

September 7, 2012

INTERCONTINENTAL Hotels Group (IHG) has embarked on a strong expansion strategy in Indonesia, with plans to grow the midscale segment with Holiday Inn and Holiday Inn Express, as well as the launch of its boutique brand Hotel Indigo.

Alan Watts, vice president operations, South-east Asia, said: “Indonesia is a key growth market for us and we are excited about the opportunities here.”

IHG’s growth in Indonesia will start with the debut of Holiday Inn Jakarta Kemayoran in 2013, followed by Holiday Inn Resort Bali Benoa in 2014 and Holiday Inn Solo in 2016.

Of the 18 Holiday Inn Express hotels in the pipeline for the next two years, half will be in Indonesia, including Holiday Inn Express Jakarta Thamrin, Holiday Inn Express Jakarta Pluit, Holiday Inn Express Bali Legian and Holiday Inn Express Semarang Simpang Lima scheduled to open in 2013, while Holiday Inn Express Surabaya Atria, Holiday Inn Express Solo, Holiday Inn Express Yogyakarta, Holiday Inn Express Jakarta Simatupang and Holiday Inn Express Bogor are due for 2014.

In 2016, IHG will roll out Hotel Indigo Jakarta Kemang – the country’s first Hotel Indigo – a year after it adds InterContinental Bali Canggu Resort.

New POP! Hotel in Bali spearheads Tauzia’s owning ambitions

By Mimi Hudoyo

September 7, 2012

THE launch of POP! Hotel Kuta Beach in Bali yesterday marked a milestone for Tauzia Hotel Management as the first property owned through its investment arm, POP Tree Investment.

Tauzia Hotel Management president director, Marc Steinmeyer, said: “POP! Hotel is a new brand we have created. Owning properties will allow us to fully develop the concept in terms of the facilities, marketing and sales as well as maintain brand consistency. We will be able to (try out) ideas in the properties without compromising (the interest of) other parties, and make these the benchmark for (our) other properties.”

He revealed that Tauzia initially wanted to have full ownership of POP! Hotels when the brand was launched in 2009, but instead chose to embark on joint investments with hotel-owner partners due to the financial crisis.

Despite the fast-growing demand for budget brands, Tauzia will only invest in selected properties. So far, POP Tree Investment has invested in five POP! Hotels, two of which will open in Jakarta.

While declining to reveal the equity shares in each property, Steinmeyer said its investment arm owns majority shares in several properties.

Steinmeyer said: “POP! Hotel Kuta Beach is the group’s fourth property, and there are currently 29 properties with a total of 5,391 rooms (in the pipeline) until 2014.”

Located near Kuta Beach and Legian Street, the 223-room POP! Hotel Kuta Beach features a swimming pool, exclusively designed shower pods, use of solar power and eco-friendly construction materials. Rooms are modestly sized at 15m2 with facilities such as free Wi-Fi, an in-room safety deposit box and cable TV. A simple breakfast is also available.

Rooms are priced from Rp288,000 (US$30). While targeting more of direct bookings, the hotel also welcomes travel consultants to book groups on a commission basis.

China now open to foreign GDS players

By TTG Asia

September 7, 2012

THE Civil Aviation Administration of China (CAAC) has eased its regulations, allowing Amadeus to market and distribute fares to travel consultants in China (TTG Asia e-Daily, July 2, 2012).

Effective October 1, 2012, foreign airlines will be able to use GDSs for fare distribution for the first time. However, the CAAC regulation is currently not applicable to domestic airlines.

All airlines with domestic and international bookings in and out of China currently have to operate via TravelSky.

David Brett, president, Amadeus Asia Pacific, said: “The regulations will enable a new technology infrastructure (allowing) for a more dynamic travel booking market with more travel products on offer that will greatly benefit the Chinese travel industry and Chinese travellers.”

Travel companies also have the option of streamlining their accounting procedures and strengthening credit line control.

Bart Tompkins, newly appointed managing director of Amadeus China, said: “We welcome the opportunity to be part of China’s ongoing success and believe that all industry stakeholders would benefit greatly from modern distribution technologies.”