TTG Asia
Asia/Singapore Tuesday, 20th January 2026
Page 2585

Indian travel associations propose revised BSP schedule

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THE TRAVEL Agents Association of India (TAAI) and Travel Agents Federation of India (TAFI) have jointly suggested a phased in implementation of IATA’s weekly remittance system, which was previously scheduled to take effect in November (TTG Asia e-Daily, June 8, 2012).

The two associations have proposed that the current fortnightly payment scheme be extended till June 30, 2013. For a one-year period thereafter, a 10-day billing cycle with a two-week credit period from the last day of sale will be implemented.

The weekly remittance system will finally be phased in from July 1, 2014 till June 30, 2015.

The joint proposal will be discussed with IATA at the upcoming World Passenger Symposium 2012 in Abu Dhabi this October.

Iqbal Mulla, president, TAAI, said: “Neither the airlines nor we can function or survive in isolation. Our discussion with the airlines has been fruitful and we are confident that our proposal will be unanimously accepted at the conference in Abu Dhabi.”

Ajay Prakash, president, TAFI, said: “The period of transition is necessary for the trade to adapt their business models around fund management and for clients to adjust to shorter credit tenure.”

Capacity on India-Asia routes to go up by October

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INDIA’S private airlines Jet Airways, IndiGo and SpiceJet are set to add a large number of international flights by October, which are expected to ease fares. This is a long-awaited result of the Ministry of Civil Aviation’s move to cease Air India’s right of first refusal on overseas routes.

Having been granted permission for capacity increases, Jet Airways will add 14 weekly flights to Singapore, and seven each to Dhaka, Chittagong, Male and Dar-e-Salam. IndiGo will increase frequencies to Bangkok, Kathmandu and Singapore with 28 weekly flights. SpiceJet will start 35 additional weekly flights to Bangkok, Guangzhou, Hong Kong, Kabul and Male.

Iqbal Mulla, president, Travel Agents Association of India, said: “It augurs well for fliers and travel companies, as the increase in flights will offer a wider choice of itineraries and bring fares down.”

Seema Ahmed, general manager, Gainwell Travel & Leisure, said: “With the private Indian carriers entering the fray to garner a larger share of the rapidly growing aviation market, airfares are expected to rationalise and consumer confidence will rise.”

According to government sources, the three private carriers will also allocate more flights to their Middle East routes.

Out of the 63 flights that IndiGo has received permission for, 28 will go to Dubai and seven to Jeddah. SpiceJet will fly seven flights each to Dubai and Riyadh of the 49 flights it has been given a nod to. Jet Airways has received the thumbs up for 56 new flights, of which 14 will be used for Kuwait.

Singapore travel experts report buoyant outbound demand

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TURNOVER at pre-NATAS fairs over the last two weekends grew by 25 to 30 per cent over 2011, taking major travel agencies here by surprise.

The latest jump in bookings is a welcome development, given the somewhat muted performance in the second quarter and at the pre-NATAS sales at the beginning of the year (TTG Asia e-Daily, February 16, 2012).

According to travel consultants whom TTG Asia e-Daily spoke to, Europe has leapt ahead to become the leading destination for Singapore holidaymakers.

ASA Holidays’ head of marketing communications, Eileen Oh, said: “Singaporeans, being bargain hunters, tend to head where currency rates are favourable. We have seen a strong surge in the number of bookings to Europe (at our pre-NATAS fair) due to the all-time low euro against the Singapore dollar.”

Alicia Seah, CTC Travel’s senior vice-president of marketing & public relations, remarked that the rise of “affluent, experienced travellers” was another key factor driving the spike in demand for Europe.

“Having visited regional destinations, these (well-off) travellers are now looking for countries farther afield. Naturally, with the euro at a low, Europe has become the natural choice, particularly Spain and Portugal, which are reporting cheaper prices owing to the eurozone crisis,” she explained.

However, Clifford Neo, managing director for Dynasty Travel, said it was difficult to predict if this upward trend would continue into 2013, given the economic uncertainty.

“We are delighted that bookings in July grew by over 100 per cent compared to the pre-NATAS fair we held in February. Of course, we hope that this will continue, but it is a matter of wait and see,” he said.

ASA Holidays’ Oh was slightly more optimistic. “Barring any unforeseen circumstances, we should see an overall year-on-year sales growth of at least 20 per cent for 2012,” she said.

“In 2013, we feel that free-and-easy travel will continue to grow significantly, especially with additional new and/or direct routes to various destinations served by the low-cost carriers.”

Cebu Pacific gears up for longhaul services with larger and newer planes

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CEBU Pacific (CEB) is planning to sell its entire fleet of 10 Airbus A319 aircraft to US-based Allegiant Travel Company, replacing them with brand new A320 and A330 planes.

CEB will take delivery of 15 new A320s and four A330s between now and 2014, and is also exploring the possibility of bringing forward its orders for A320s scheduled for delivery between 2015 and 2016.

The airline is slated to begin its longhaul services in the third quarter of 2013. With a range of up to 11 hours, the A330s will allow the airline to serve markets such as Australia, the Middle East, Europe and the US.

Meanwhile, the A319s will be transferred to Allegiant over a 15-month period commencing March 2013.

Lance Gokongwei, president & CEO, CEB, said: “The Airbus A319s are our oldest and smallest jet aircraft. While they have served us well for the last six years, as we have grown our business and developed new markets, the time is right to trade up to bigger, brand new Airbus A320 aircraft.”

CEB currently operates a fleet of 10 A319s, 20 A320s and eight ATR-72 500s. Between 2012 and 2021, the carrier will receive 22 more A320s and 30 A321neos.

PHM introduces ‘urban budget’ hotel brand in Jakarta

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PHM Hospitality, a member of Panorama group, has launched The BnB brand, with its flagship property under construction in Kelapa Gading, north Jakarta.

Targeted to open on Christmas Eve, The BnB Kelapa Gading will have 171 air-conditioned rooms, TV and Wi-Fi access. Its opening rate starts from Rp399,000 (US$42), including breakfast for two.

PHM Hospitality managing director, Kristian Kuntadi, said: “The difference from the rest of two-star properties in the market is that our room sizes are bigger (18m2) and with dedicated place for luggage, allowing guests to move around freely in the room and bathroom.

“We have an all-day cafe, not just a breakfast (outlet), which will be operated by (sister coffee chain) Kaffein. (We will also have) an Internet corner, a self-check-in facility,and shuttle service to the nearby Mall of Indonesia, Mal Kelapa Gading and ITC Cempaka Mas.”

The hotel will also have five meeting rooms with capacity between five and 25 seats.

Kristian explained that Kelapa Gading was a good business and leisure location. “It showcases how an economy hotel with modern design and facilities can be developed in a prime location, which we call ‘urban budget’,” he said.

PHM Hospitality first revealed it was developing new hotel brands at the start of the year (TTG Asia e-Daily, January 17, 2012 and TTG Asia e-Daily, February 21, 2012). Also due to launch by year-end is its three-star premium themed hotel brand, Alaia. It will debut on Canggu Echo Beach in Bali.

AirAsia X to double fleet size in two years

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AirAsia X, the longhaul affiliate of AirAsia, is investing US$500 million to lease six Airbus A330-300 aircraft, scheduled for delivery over the next two years.

It signed a letter of intent with International Lease Finance Corporation (ILFC) yesterday on a 10-year lease term for the six aircraft, four of which will be delivered next year and the remaining two in 2014.

These six aircraft, coupled with deliveries of eight A330-300 aircraft from Airbus within the next two years, will see AirAsia X’s fleet size increase from the present 11 to 25 in 2014.

AirAsia X CEO, Azran Osman-Rani, said the new aircraft ordered would be deployed to serve its core markets of Australia, China, Taiwan, South Korea and Japan. The airline will increase frequencies on some existing routes and introduce new routes between Kuala Lumpur and these countries.

“We don’t want to be overtaken by others,” he added.

This is the first time that AirAsia X is leasing from ILFC, a wholly owned subsidiary of American International Group, Inc.

Pricier rooms in Australia’s key cities

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AUSTRALIA’S major hotel markets are on a positive growth trajectory, with hotel occupancies and room rates on the rise. Refurbishment has also picked up pace, especially among upscale properties.

With the exception of Melbourne, there has been minimal supply addition in key markets over the past two years, but strong recovery in corporate domestic and leisure inbound travel.

Average room rates in Sydney are forecast to rise to A$210 (US$221) and to just under A$200 in Melbourne by end-2014.

Craig Collins, CEO Australasia, Jones Lang LaSalle Hotels, said the major CBD markets were maintaining strong year-to-date occupancy levels, with Sydney (85.8 per cent), Perth (83.2 per cent), Melbourne (80.5 per cent), Brisbane (78.3 per cent) and Adelaide (73.9 per cent) experiencing strong demand.

He said: “A number of Australia’s major CBD markets are trading at near full capacity and hotel operators are capitalising on these strong occupancy platforms. Continuing supply constraints across the key CBD markets combined with already strong occupancy levels will see room rates continue to grow over the short to medium term.

“In terms of RevPAR growth, Sydney, Melbourne and Brisbane have all posted strong gains of between five and seven per cent, with Perth posting a staggering 13.4 per cent increase.”

Meanwhile, five-star hotels in key markets, including the Four Seasons Sydney, Sydney Harbour Marriott, Park Hyatt Sydney, Melbourne Marriott, Westin Melbourne, Sofitel Brisbane, Brisbane Marriott and Hyatt Regency Perth, have spent over A$500 million upgrading rooms and technology, restaurants, bars and conference facilities over the past year.

Collins said: “We have witnessed a significant increase in refurbishment activity across Sydney, Melbourne, Brisbane and Perth. This is most prevalent in the five-star segment, with about 40 per cent of hotels in these major markets having recently undergone or planning improvement works.”

View from the top: Chang Theng Hwee

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His customers are multi-millionaires who expect to be blown away by once-in-a-lifetime experiences. Chang Theng Hwee of Singapore-based Country Holidays Travel tells Brian Higgs how his job is about transforming dreams into reality, and why going niche isn’t just about being pricey

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Chang Theng Hwee
Founder & managing director
Country Holidays Travel

Tell us more about your products.
Our most expensive is the Antarctic programme. The resort guests stay in has only six rooms, each with a private plunge pool, and the cost ranges from US$9,500 to US$16,000 per pax.

However, Africa is definitely my choice for ‘most luxurious’. There’s just something about the place that makes people want to splurge. Whether it’s observing elephants in their natural habitat, enjoying champagne and quality cuisine under the stars, staying in accommodation equal to a Four Seasons…it is truly the experience of a lifetime.

We also have 12 to 15 Signature Departures per year. These are our top-of-the-line products, with a maximum of 16 persons per group. Perks include entrance into the State Hermitage museum in Saint Petersburg, Russia before it opens or a private visit to the Museum of Egyptian Antiquities in Cairo.

Wow, we’re impressed. Were you always in the travel business?
I graduated with a banking degree from the National University of Singapore in 1988 (he’s 48 now). Even as a student, I was actively involved in Rovers, a club which provided fellow students with travel services. We organised adventure expeditions to places like the Himalayas.

After leaving school, I continued to organise travel for friends and family. Having done the math, I realised it was a lucrative business and decided to strike out on my own in end-1992. I spent a year mapping out the strategy and finally launched Country Holidays in early-1994.

When we first started, it was just my wife (Siew Yim) and I. She handled operations, while I was in charge of sales. We concentrated on niche products such as hiking in Nepal, India and the Himalayas, and adventure travel in Africa. Our strategy at that time was creating in-depth cultural trips to exotic destinations.

Why the niche?
When Country Holidays first started, travel consultants in Singapore were mostly focused on run-of-the-mill trips to Europe and the US. They didn’t have any notion of adventure travel or tailor-made itineraries. If you really love travel, however, you won’t go for such products.

As a general rule, we never feature the usual Disneyland or common sights. Unique itineraries in familiar destinations is our strategy now.

We believe that we should only market places where we have been to and would love to visit again. Whichever destination we sell, one of us (in the company) must have been there.

Travelling and selling travel should be about passion. I’m a firm believer that if you’re passionate enough about something, you’ll definitely end up doing it well. These days, we can effectively cover so many destinations because many of our consultants are avid travellers themselves.

“A lot of companies start out in a niche by assessing how lucrative it can be… We don’t want to be just another expensive agency.”

What sets you apart from other luxury operators?
Even though our products are high-end in terms of price, it’s not just about featuring Michelin-star restaurants or five-star hotels. A lot of companies start out in a niche by assessing how lucrative the segment can be. We don’t set out to make our customers pay a lot of money and we definitely don’t want to be just another expensive agency.

We believe in catering to our customers’ exact interests and tastes, allowing them to visit destinations they really want to visit, do the things they really want to, and in the process gain an in-depth, meaningful and insightful experience. You need to have a deeper understanding of what you want to do for your chosen niche.

Who are your clients?
Most of our customers are aged 40-65, and are a mix of legal and financial types, professionals, business owners, doctors and even politicians, including seven ministers from the last two Singapore Cabinets.

Our products need a base of sophisticated, discerning and well-heeled consumers who more often than not aren’t first-time travellers. We need markets where we can graft out a distinct competitive advantage and where there are unserved needs.

Back in 2000, we started to feel the limitations of the Singapore market, but were wary of expanding overseas. However, during the SARS crisis in 2003, which really affected our business, we realised the need to venture abroad to tap larger markets. China was booming at the time, and we opened our first overseas office in Shanghai in 2003. We opened an office in Hong Kong in 2004 and expanded to Beijing in 2005. After that, we finally decided to take a breather and consolidate (laughs).

Now, Country Holidays employs about 50 staff across offices in Hong Kong, Shanghai, Beijing and Singapore. We operate in Indochina, China, India, Bhutan, Sri Lanka, Nepal, Pakistan, Tibet, Middle East, Africa, South America and Eastern Europe.

Right now, 45 per cent of our business is from Singapore; Hong Kong contributes 30 per cent; Shanghai 20 per cent; and Beijing five per cent. As for the client mix, it’s 50-50 expatriates and locals in Singapore, while in Hong Kong, Shanghai and Beijing, the majority are locals.

How much are you focusing on China?
I believe there is a huge untapped luxury travel market in China. In April, we launched a new brand called Jun Chi (‘galloping gentleman’), targeting elite Chinese travellers. Many travel firms say Chinese elite travellers only go for luxury products and don’t know how to appreciate the subtle things in life. I don’t believe this. The Chinese have over 3,000 years of history and culture, and based on our own experience, they seem highly capable of appreciating the culture and essence of a destination.

Hong Kongers and even mainland Chinese are very sophisticated travellers. They view destinations very differently from our Western and English-educated clients. When they visit Russia, for example, they’re a lot more interested in the country’s communist past. And before they head to Africa, they’re already aware of concepts such as a migration safari.

How have your customers across markets evolved?
(A decade ago), our customers weren’t so sophisticated. Now the situation is different, and they are travelling everywhere.

In the past, we were able to recommend places like Singita (Game Reserves in Africa), and they would say ‘thank you’ and take the package. Nowadays, they’re more demanding. We have to give them more variety, more options, and really value-add to the product.

It has a lot to do with our own knowledge as travel consultants. These days, so much information is already available over the Internet, and staying relevant to the consumer is a constant challenge.

This article was first published in TTG Asia, July 13, 2012, on page 8. To read more, please view our digital edition or click here to subscribe.

Healing the world through music

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TTG Asia’s very own Feizal Samath, a veteran concert organiser, discovers that it’s possible to combine charity shows with tourism

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American musician Bob Livingston (left) and World Bank’s country director of Central Europe and the Baltic Countries, Peter Harrold (right), have performed at previous Country Roads concerts 

If Paul McCartney, Jennifer Lopez or the Eagles are performing in Singapore, Thailand or Malaysia, you can be sure that wealthy Sri Lankans will jump on the first flight out to rock the night away.

Post-war Sri Lanka is starving for good entertainment because top celebrities are often too costly for local organisers to hire for a single show. So far, only musicians from a bygone era – think Lobo, Cliff Richard, Engelbert Humperdinck and Olivia Newton-John – have performed on Sri Lanka’s shores as their fees are friendlier to local budgets.

Sri Lanka-based travel experts have since tapped this demand by actively promoting overseas music packages, which include a business-class air ticket, hotel accommodation, concert tickets and a once-in-a-lifetime chance to meet the idols.

Musical concerts are a great way to promote the country. In a small way, I have also contributed to the craze for international acts by staging my own charity concert, Country Roads, in Sri Lanka for the past 24 years. Organised by Country Music Foundation (CMF), a non-profit organisation that I founded in 1988, CMF aims to raise money for needy children, particularly those affected by war.

The organisation has come a long way over the years to raise about eight million Sri Lankan rupees (US$60,000). While this might seem like small change in the world of big-ticket events, this drop-in-an-ocean kind of fundraising has helped to improve the lives of hundreds of disadvantaged children across the country by working with international agencies like UNICEF, Save the Children UK and local community groups.

CMF has brought in musicians from Germany, Italy, the Maldives, the US, the UK and Canada to perform at Country Roads concerts, promoting country and folk music the likes of John Denver, Bob Dylan, Simon & Garfunkel and Johnny Cash, among others. All artistes have donated their services in return for complimentary tickets, accommodation and a chance to visit Sri Lanka and help the children of this country. My own band also plays at these concerts.

In 2013, Country Roads will be going to the Maldives, marking our inaugural effort at staging a concert to raise funds for Maldivian children.

The Maldives, with its over 100 exotic resorts, will be a perfect stage for exclusive concerts. It has already attracted a jet-set crowd and celebrities such as Richard Branson and Ronaldo, who are assured absolute privacy whenever they visit.

Now visualise Beyonce, the Black Eyed Peas or the Rolling Stones singing around a campfire on one of these secluded islands. Can you imagine how much one would pay for this kind of up-close encounter with a celebrity in an intimate setting? Thousands, I would guess!

This article was first published in TTG Asia, August 10, 2012, on page 13. To read more, please view our digital edition or click here to subscribe.

Setting the stage right

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Music festivals are finding their way onto events calendars across Asia, but they don’t always strike the right note with travel consultants.

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ZoukOut, one of Singapore’s most popular music draws among foreigners

Asia’s travel companies are keen on bigger business from music fans around the world, but only a handful have managed to capitalise on such opportunities so far.

Singapore’s annual dance music festival ZoukOut drew 28,000 revellers in 2011, of which some 45 per cent were from abroad. Over the last few years, festival organiser Zouk has worked closely with youth travel specialist STA Travel to distribute tickets and packages through the latter’s local and overseas offices.

Sofie Chandra, Zouk’s marketing and business development manager, said the take-up rate for packages had remained steady in the last few years, although free-and-easy options were now more in demand. She added that Zouk was open to working with more travel firms.

For Kuching-based CPH Travel Agencies, sales from the Rainforest World Music Festival has posted a 10 per cent year-on-year growth over the last three years, said director of sales, Hannah Choo, who credited this largely to Sarawak Tourism Board’s aggressive marketing efforts.

The company offers two types of music festival packages to clients, most of whom come from West Malaysia and Singapore, and in small groups of family or friends. The basic package includes tickets and accommodation, while sightseeing tours are added for those who are extending their stays.

Kuala Lumpur-based DMC, AOS Conventions & Events, has even jumped into the events fray itself. In November 2011, it organised the inaugural Langkawi Live Music Festival at the Frangipani Langkawi Resort & Spa, also part of the AOS family.

Group managing director, Anthony Wong deemed the two-day event a success as it attracted about 1,000 music lovers from around the region. Both music festival packages were well received, he said. One included accommodation, meals and transfers, while the other had only tickets and meals.

Still a relatively new segment
In other destinations such as Thailand, Indonesia and the Philippines, however, turning music festivals into tourist magnets is still in its early stages.

Addie Hirunkate, managing director, Destination Asia Thailand, said events in her country were mainly aimed at the domestic market, making it difficult to attract overseas visitors. “We really need promoters to look at bringing more world-renowned music festivals like WOMAD or to create Thailand’s own world-class music festival,” she added.

Diethelm Travel Thailand managing director, Hans van den Born, said the company had no specific itineraries incorporating music festivals, although it had “regular promotions and write-ups in various media to create awareness of the music festivals Thailand has to offer”.

While the Tourism Authority of Thailand (TAT) does not have exact figures of foreign tourists who come specifically for these events, spokesperson Chattan Kunjara Na Ayudhya, said the Pattaya International Music Festival – the most popular one – sees international and Thai tourists swelling to 400,000 during the event, made up of mostly younger travellers. Another prominent event is the Hua Hin Jazz Festival, which attracts an older demographic. Around 50,0000-70,000 tourists visit the town during the period, and numbers are rising, said TAT.

Indonesia has a growing number of music festivals, such as the Java Jazz Festival in Jakarta, Kereta Kencana World Music Festival in Solo and other more traditional ones, but many major travel consultants have not been able to sell these effectively.

Association of the Indonesian Tours and Travel Agencies South Sulawesi chapter board member, Nico Pasaka, said: “Most festivals in Indonesia are announced at the last minute. Although it is an annual event, the exact dates are usually decided too close to the event, making it difficult for us to package and promote.”

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Brazil’s Raiz De Cafezal at Sarawak’s Rainforest World Music Festival (left); Thai band Paradox at Pattaya International Music Festival

Hellen Xu, Panorama Tours Indonesia managing director of travel management, added: “There is always a possibility that a festival or music concert is cancelled at the last minute for any reason. While the admission fee is refundable, there is no (refund) guarantee for room bookings and deposits made with hotels.” As a result, Panorama only focuses on selling tickets to local customers.

Ironically, the musically-destination of the Philippines currently does not have any major festivals it can promote overseas. Some organisers of international concerts are also not interested in the overseas market. Renen de Guia, head of Ovation Productions, which has staged Lady Gaga and Sergio Mendes & Brasil 2012 in Manila, said “the domestic market was big enough”.

This may change, however, with the emergence of bigger venues in Manila, including the SMX Convention Center and the Mall of Asia Arena. Current events targeted at mainly domestic tourists may also stand a chance of going international.

The Backdoor Ventures Arts & Music Festival, which is now in its sixth year, has already secured a move from the Megatrade Hall to the bigger SMX Convention Center. Founder Jay Viriña said he plans to involve the foreign embassies in the Philippines in marketing.

Blue Horizons Travel and Tours inbound sales and marketing manager, Jayne Lim-Ong, recalled that negotiations for an international jazz festival fell through some two years ago, due to insufficient facilities to accommodate up to 4,000 people.

Hand-in-hand marketing
Destination Asia’s Addie suggested that organisers worked with the trade from the event’s inception. “We need more advance notice to effectively promote music festivals,” she explained.

Panorama’s Xu added: “They could involve us in their promotional activities and make us their appointed agents as we have many outlets, both in Jakarta and outside the city.”

Singapore-based Tradewinds ceased selling tickets and packages for ZoukOut and Mosaic Music Festival due to insufficient sales, according to a company spokesperson. She said: “Generally, these events are not well-advertised abroad to music fans, and they are too Singapore-centric. Organisers should do more to market these festivals abroad.”

However, one organiser said a more fundamental issue was the profile of festival attendees. Steven Woodward, general manager of Midas Promotions, which does Singapore’s SINGFest, explained that selling tickets and packages to foreign travellers was “not financially viable for travel companies and event organisers in general as most overseas music festival-goers prefer to travel independently and make their own arrangements”.

This article was first published in TTG Asia, August 10, 2012, on page 12. To read more, please view our digital edition or click here to subscribe.

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