Not your usual .coms

August 10, 2012

These innovative start-ups are revolutionising the travel research and booking process, moving away from conventional OTA models. Linda Haden and Divya Kaul speak to their creators for a dose of inspiration

Flocations

Date founded and by whom 2012. Tudor Coman (previously from RIM), Florian Cornu (background in banking), Shaw Chian Kuck (former software developer) and Venkatraman Dhamodaran (telecommunications field)

Description of the business A travel discovery service that lets users search for their next holiday destination within a specified budget utilising a fresh, easy-to-use visual format. Also enables users to share their newfound trip with contacts through Facebook.

Inspiration Users rely on search engines to find places then go to an OTA to fill out forms and go through price lists. We’ve created a visual answer to the age-old questions of ‘where can I go for my money’ and ‘where can I go to do activity X’.

Revenue model We run a meta-search model, collecting commission on referrals. There’s been significant B2B interest, however, as many other travel sites are looking to provide their users with additional functionality and new ways to search.

Success metrics At this early stage, virality ratios and user retention numbers are more important to us. Once we hit the goals for these metrics, then we can move towards new performance indicators such as volume and revenues.

Where most of the traffic comes from We have been predominantly marketing in Singapore, as that’s where our main traction lies. Currently, we are gathering data to move out of Singapore as quickly as possible.

Trade partnerships Agoda, AirAsia, Tiger Airways, Jetstar, Batavia Air, Kal Star and Merpati Airlines are our current partners, although we look to expand this further.

Under development We’re really excited about some of the new functionalites that we’re bringing in, but of course, I can’t go into detail. On the operations side, we are hiring a community manager and graphic designer.

I am/am not an OTA… Our interface is very different from the default set-up used by OTAs for the last 15 years, which seem to be trying to turn users into travel professionals. Flocations is a fresh way to travel.

mygola

Date founded and by whom 2009. Anshuman Bapna (previously from Google) and Prateek Sharma (an early employee at telecommunications company Tejas Networks)

Description of the business A global community of hundreds of travel freelancers who use our technology platform to answer questions from travellers, and a platform that pulls data (e.g. deals, hotels, blogs) from the best sites in the world to aid our guides.

Inspiration We think 90 per cent technology but 10 per cent human judgment is the right way to go. We radically simplify travel planning and give everyone a personal travel concierge. Our researchers give completely personalised answers.

Revenue model Users get to ask the first question for free. We then ask them to pay what they think is right after seeing the answer. In addition, they can pay per trip or take an annual plan. We also make money from ads and lead generation.

Success metrics We’ve planned over 25,000 trips to 100 different countries. We have almost 4,000 guides around the world.

Where most of the traffic comes from Thirty per cent comes from India, while 40 per cent comes from the US. Our traffic is growing 25 per cent month-on-month without spending a single dime on customer acquisition so far (mainly through SEO and word of mouth).

Trade partnerships We’ve partnered with Expedia, Agoda, Viator, MakeMyTrip and hundreds of other travel companies as an affiliate. This allows us to fulfill our travellers’ booking needs. We’re actively looking to work with tourism boards.

Under development We’re building something very innovative that is still under wraps at next.mygola.com – expect it to launch in August.

I am/am not an OTA… We don’t see ourselves as an OTA; instead, as a layer of trust on all the innovative services that have come up in travel in the past decade. We combine the high touch of a travel consultant with the enormous power of the Web.

ImpulseFlyer

Date founded and by whom 2011. Steven Gong (formerly of Wego and Circos Brand Karma)

Description of the business A members-only flash sales site, offering luxury boutique properties within APAC. Applications are screened based on specific criteria. Unlike typical voucher sites, there is a real-time booking engine for instant confirmation.

Inspiration It stemmed from a personal problem. I love luxury and boutique hotels and discovering hidden gems around the world, but there weren’t many sites that could help. There was certainly a gap in Asia for a luxury online travel brand.

Revenue model We operate a bit like a conventional OTA, earning commissions from each reservation that we take. Membership is completely free. Members can invite their friends, although there’s no guarantee that they will be able to join.

Success metrics We look first and foremost at our revenue stream, the size of our membership base and the number of bookings generated.

Where most of the traffic comes from Most of our customer base is concentrated in the APAC region.

Trade partnerships Presently, we deal exclusively with the hotels featured on our site.

Under development Hopefully, in the next couple of months, we will be able to unveil our retail product: we will be selling selected hotels all year round, instead of just two weeks at a time as we do now.

I am/am not an OTA… We are a private sales site that features only selected hotels to an exclusive set of customers in a closed environment. We are distinct from an OTA in terms of how we generate sales.

travelmob

Date founded and by whom 2011, but site was only rolled out in July 2012. Turochas Fuad (previously from Skype) and Prashant Kirtane (formerly of Yahoo)

Description of the business A platform for private property owners in APAC to market their properties to an international audience in a secure environment. We offer travellers the opportunity to book accommodation where they can ‘live like a local’.

Inspiration There’s been a growing need for an online solution that facilitates the so-called social economy. None have been specifically designed for APAC. We aim to become the largest provider of social stays in the region.

Revenue model Commissions earned from property owners or hosts, and service fees charged to guests when they make bookings. Hosts list their properties for free, with travelmob providing the marketing know-how and tools.

Success metrics The size of our audience, and the number of listings and bookings are our main metrics.

Where most of the traffic comes from Our bookings come from virtually anywhere, with a rough mix of 70 per cent from outside APAC. We tend to attract a younger demographic, and they book a wide spectrum of properties, from budget to luxurious.

Trade partnerships None specifically at the moment, but we are in talks with a range of travel-related suppliers such as spas, transport companies and tour providers to provide more enriching experiences for travellers.

Under development South-east Asia is our starting point, but we are hoping to make inroads elsewhere in Asia. We plan to fill the gap (in the social-stay market) by developing Asian-language sites and by using Asian currencies.

I am/am not an OTA… We do not see ourselves as an OTA. travelmob is an online marketplace for social stays, connecting property owners and potential guests in a transparent, seamless and secure manner.

Qiito

Date founded and by whom 2011. Chuang Pei-Han (previously from HSBC), Leong Jiayong and Clement Tan (both worked at Singapore’s Defence Science and Technology Agency)

Description of the business Qitto, which stands for Quick, Interesting, Interactive Travel Organizer, allows users to document and share potential attractions and venues through pictures. We are the first Asia-based interactive online travel planner.

Inspiration Qiito was designed to make trip planning a hassle-free process. There is a growing trend among travellers to seek bespoke itineraries. However, the amount of information available on the Web can be daunting to consolidate.

Revenue model We believe revenue will be generated from streamlining the information flow of the travel industry. In the near future, we might accept bookings on the behalf of airlines and accommodation providers. We are also exploring ad opportunities.

Success metrics Our success is measured based on the usage duration and frequency of visits to our website. We also benchmark our performance against our competitors in terms of usability, features and resources.

Where most of the traffic comes from The bulk is derived from Singapore, although we are receiving significant demand from Indonesia, the Philippines, Malaysia, the US and India as well.

Trade partnerships Qiito has been working with the Taiwan Tourism Bureau for almost half a year, showcasing Taiwan’s attractions and sights on our website. This tie-up has been successful so far.

Under development We intend to strengthen our presence in South-east Asia first. With a timeframe of three months each, we will target various countries and user groups. We want to launch a Mandarin website and set up an office/partnership in China in the future.

I am/am not an OTA… We do not see ourselves as an OTA because we do not plan trips or sell any packages. Users pick up information that interests them and build a travelogue. They are able to modify an existing one or build from scratch.

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

Additional reporting from Divya Kaul

View from the top: Tim Hansing

By TTG Asia

August 10, 2012

Now in bed with Tune Hotels, Bangkok-based Red Planet Hotels is charging ahead with one deal a week, one opening a month. CEO, Tim Hansing, tells Timothy France he believes the marriage will be a harmonious one

Tim Hansing
CEO
Red Planet Hotels

From an initial franchise agreement, Red Planet recently became Tune Hotels’ third-largest investor with a 16.05 per cent stake. What attracted you to the brand in the first place?
When we set up Red Planet (in 2010), we came across Tune and thought it was a great niche in the market. There is a very obvious gap here in Asia, where there is no quality branded budget product across the region, and we saw an opportunity (to be a major franchisee).

In this day and age, people are looking for a value connection. There needs to be a relationship between what you are buying as a consumer and the amount of money you are being charged for it. Two or three years ago, that value connection did not really exist in the marketplace in terms of the hotel space.

Why the need for such a major investment?
We acquired shares from a seller in return for cash and shares in Red Planet. It was part of the long-term strategy in terms of “it would be a great opportunity if this happened”, but we did not include it in our business plan because it was too good an opportunity to count on. So we are very happy about it.

We’ve invested in Tune because it’s a global scalable business, which means the pie that our shareholders now own is going to get fairly substantial and fairly large. Tune Hotels plans to do an IPO at some point, and the bigger and more diversified a platform you have, the more valuable your business is going to be.

Where will the company be in the near term?
Our business plan states that we should have 80-100 hotels within the next three years. We are planning to raise an additional US$100-US$120 million of capital (primarily from Japan) by the end of this year. With that money, we will effectively be doing one hotel deal a week, so we are ramping up. What we’ve got now is a good dress rehearsal, opening one hotel a month; we’ve got the structure in place, so really it’s just a case of a few extensions.

Now that you have a share in Tune, how do you plan to further the relationship?
We’re great friends with Tune, and we’ve had a number of discussions about how we can move forward together. Obviously the acquisition of shares was the best way to do that.

Would we merge with Tune? We would never rule that out. We could also develop regional platforms together.

The franchise agreement was the engagement, the share acquisition the marriage, and then the kids after this. So it’s a blue-sky future and we’re not ruling out anything.

How many times have you stayed in a Tune hotel and what were your experiences like?
I can’t remember how many times. It’s a hotel that I helped design, so I think it is fabulous. If you go onto TripAdvisor, some people call it a “nest”, and I just shout with joy when I see that because (the hotels) are comfortable, they are small, but everything is around you. For example, there is a little fold-down table and next to that there is an international plug at table height. It’s the little things that count for so much. That’s why I like staying there because it’s just so easy.

The one thing our customers are asking for is a refrigerator in the room, so we might do that in some markets, but that’s amenity creep and I’m not sure we like that.

How do you keep a lid on costs yet still maintain standards?
Our fixed overheads are very low. We outsource housekeeping and security, so housekeeping is effectively cost per occupancy. We have no F&B outlets, no expensive chefs. We have receptionists, security, a couple of maintenance guys, and that’s it. We can survive quite a severe winter on what we have without any impact on the quality of service and customer experience whatsoever.

To maintain standards we’ve put in place a number of physical (promises) that the brand delivers on, namely a five-star bed, feather pillows, high-quality linen, a power shower, TV channels that you actually want to watch and quality Wi-Fi. That’s on the product side. Then of course, the hotels are spotlessly clean, we have high levels of security, and the girls at the reception desk know what they’re doing and we have a rigorous training programme.

“Scale can often hit without you planning for it, and as a result you can get growing pains as a company. We’ve not had that because we’ve known that we were going to expand this quickly and this rapidly.”

Broadly speaking, many low-cost models have left travel consultants out in the cold. How will you be working with the trade?
The reality is that we’re in markets where local travel (consultants) dominate, so how stupid would you be to ignore them? We’re here to service demand,
and places like Hat Yai, Pattaya and Patong are heavily reliant on travel (consultants), and it would be foolish not to realise that. So travel (consultants) are our friends.

We have very good working relationships with them in Hat Yai, and we are starting relationships with them in Pattaya. We need them and they are a force in the business.
The issue is that if you come from a four- or five-star background travel (consultants) are not your friends because they are low-cost, high-volume, but that’s what we want.

But will low cost mean low returns?
I spent eight years working for Kingdom Hotel Investments, where I did US$3 billion worth of deals in emerging markets, all at the five-star level. What is clear is that if you want to make money, it is the low-cost budget hotel sector that will deliver faster returns. We are expecting anywhere between 15-20 per cent return on capital deployed a year on these hotels. Most upmarket hotels will struggle in the first year to make even a three per cent return.

The drawback with the budget space is that you have to develop scale quickly. We have US$180 million of projects under construction at the moment, which is effectively one Four Seasons (property), so we have to get it done quickly otherwise corporate overheads will eat us alive. Building scale in the budget business will give us the returns.

How dangerous is it to expand so aggressively?
We’ve managed to do it effectively because we’ve got a team of people who have done it before, so none of us are new to it. We knew we were going to do this on such a scale, so we’ve built a structure that can cope with it.

Scale can often hit without you planning for it, and as a result you can get growing pains as a company. We’ve not had that because we’ve known that we were going to expand this quickly and this rapidly.

Are there any challenges that you have not been able to foresee?
There is always someone somewhere in the world doing something stupid that you can never foresee. There are licensing issues in Indonesia; you’ve got people making up planning regulations as they go along. It’s a lot of small things, but there has been nothing major so far. You can usually see things coming on the horizon and form a contingency plan.

What other interests does Red Planet have?
None at the moment; we are keeping focused. That’s the key: keep focused, keep it simple, do it properly, do what you know. We have no plans to diverge.

We could as we’ve got a lot of hotel expertise and about 150 years’ experience within the company in terms of buying buildings and operating hotels. But at the moment, with this acquisition particularly, it wouldn’t be something we would look at. However, the door is always open.

This article was first published in TTG Asia, August 10, 2012, on page 8. To read more, please view our digital edition or click here to subscribe.

By Timothy France

Tiger Airways Singapore on the hunt for new MD

By TTG Asia

August 8, 2012

TIGER Airways Singapore has kicked-off a recruitment drive to find a replacement for managing director, Stewart Adams, who will be leaving at the end of the year to pursue personal interests.

Adams, previously the managing director of British Midland Airways Regional, took over from Rosalynn Tay as Tiger Airways Singapore chief in January 2011.

“Stewart joined Tiger Singapore at an important stage in its growth,” said Tiger Airways group CEO, Chin Yau Seng, who will also be stepping down to make way for Koay Peng Yen on August 10 (TTG Asia e-Daily, July 6, 2012).

“Since then, (Adams) has led his team through one of its most difficult periods, strengthened the airline’s operations and brought it back on track to achieving profitable growth.”

Adams said: “My immediate focus is on achieving a successful and smooth relocation of Tiger Singapore’s operations from the Budget Terminal to Changi Airport Terminal 2 come September 25. I will also ensure that there will be a seamless transition to the incoming MD.”

ONYX enters luxury segment with Oriental Residence Bangkok

By TTG Asia

August 8, 2012

ONYX Hospitality Group has begun its push into the luxury segment with the launch of Oriental Residence Bangkok, the first luxury serviced residence to be managed by the company.

Although it doesn’t carry ONYX’s top-tier hotel brand, Saffron (Editor’s Pick, May 13, 2011), Oriental Residence Bangkok sets the tone for future high-end projects for the group, being the visible showcase of its management capabilities in the upmarket segment.

Patrick Schaub, general manager of Oriental Residence Bangkok, said: “Oriental Residence Bangkok is the spearhead of ONYX Hospitality Group’s luxury initiative, and will help to position ONYX as a leader in the very top tier of Asian hospitality.”

Suravut Thongthaem, senior vice president of sales, ONYX Hospitality Group, said: “ONYX sees extensive opportunities for a hospitality management organisation to capitalise on market space and deliver exceptional projects at the top end of the luxury sector in Thailand.”

“Oriental Residence Bangkok will attract business and leisure guests alike, catering to corporate and upscale MICE clients, international visitors and long-stay medical tourists,” he added.

Located within a 32-storey building on Wireless Road, Oriental Residence Bangkok offers 46 private ownership units and 145 serviced residence units comprising 41 executive deluxe rooms, 70 one-bedroom, 30 two-bedroom and four three-bedroom suites. Ranging in size from 45m2 – 188m2, the units feature polished hardwood floors, and imported furnishings and fixtures.

F&B options at the property include a signature Chinese restaurant and the chic Café Claire, while function facilities include three meeting rooms ranging in size from 16m2 – 145m2, with the capacity to accommodate up to 100 guests.

Ocean Dream offers new Gulf of Thailand cruises

By TTG Asia

August 8, 2012

THE LUXURY cruise vessel Ocean Dream embarked on its inaugural 4D3N sailing on the Gulf of Thailand last week, departing from Laem Chabang in Thailand’s Chonburi province, calling at Koh Samui, then Sihanoukville in Cambodia, before returning to Laem Chabang on August 6.

A joint venture between Thailand’s Eastime Shipping and Profit Summit Deluxe Cruise, a Chinese cruise ship operator, the programme will run twice weekly, departing from Laem Chabang on Mondays and Fridays at 18.00.

Tourism Authority of Thailand (TAT) governor Suraphon Svetasreni said: “TAT is delighted that the Ocean Dream offers a great new option for travellers to enjoy the tranquil beauty of the Gulf of Thailand, while offering a different perspective on Koh Samui and an introduction to the joys of Cambodia.”

The 20,000-tonne Ocean Dream offers choice restaurants, clubs featuring a variety of entertainment options, a swimming pool, a casino, a movie theatre, a shopping gallery and Internet connectivity across its nine decks. The ship’s 420 cabins can accommodate up to 1,060 passengers.

The 4D3N Gulf of Thailand cruise package is priced at 11,000 Baht (US$349) per pax.

Myanmar’s local hotels next to jump on rate hike bandwagon

By Rahul Khanna

August 8, 2012

THE MAJORITY of foreign-owned hotels in Yangon have started complying with a government directive to scale back their exorbitant room rates, but locally-owned hotels have sniffed out a potential loophole and are starting to raise prices.

The ministry implemented a US$150 rate cap for hotels under its Foreign Direct Investment scheme on June 25, following complaints from local and international travel firms about indiscriminate room pricing (TTG Asia e-Daily, July 6, 2012).

“Relations with foreign hotels are now quite okay. But there is a problem with local hotels,” said Ma Sabei Aung, managing director of Nature Dream Travel & Tours, adding that recent rate hikes had occured at Mya Yeik Nyo, Mingalar Garden, Summer Palace, Clover and Green Hill hotels.

According to Kerstin Jung from Gracious Myanmar Travel, rates at some locally-owned hotels in Yangon were now three to four times higher than a year ago.

“I’m really not sure if (the rate hikes) are a healthy development for the tourism industry. To be honest, many local hotels just don’t want to work with (travel consultants), and some of the hotels aren’t really suitable for foreign guests,” she said.

U Tin Soe from Joyful Jupiter Tours said he had booked several rooms at Mya Yeik Nyo Royal Hotel for group tours in October and January 2013. Although he had earlier received confirmation from the hotel that the single/double room rate would be about US$70/US$80 per night, he was later informed that prices had increased significantly.

“The single room rate had almost doubled to US$120, and double rooms were now US$180. How can I do my business with these skyrocketing prices?” he lamented.

Mexico zooms in on Chinese outbound

By Prudence Lui

August 8, 2012

THE MEXICO Tourism Board’s heightened efforts to tap Asian outbound over the past three years have paid dividends, with Chinese visitor numbers growing by an average of 30 per cent per year, culminating in a 32.7 per cent surge in the market in 2011/2012.

On his first official visit to Asia covering Hong Kong, Tokyo and Seoul, the board’s COO, Rodolfo López-Negrete, said: “We are happy with the result, but not content. We can generate more. Developing business out of Asia is crucial.”

“So far, Japan remains the top market (in Asia). Apart from China, South Korea has also displayed strong growth. About 41,000 South Koreans visited Mexico in 2011, an 11 per cent (year-on-year) increase.”

López-Negrete told TTG Asia e-Daily that the board was planning to launch an office in Seoul and had just hired a full-time staff based at the Mexican embassy there. “We are also exploring Shanghai as a second office (in China) after Beijing,” he said.

With only 1,500 visitors per annum from Hong Kong at the moment, López-Negrete agreed that there was much potential for the market to develop. “We need to elevate the level of awareness in Hong Kong. Mexico is not well known here.”

He added: “While we target the luxury tier of travellers in Hong Kong, we look to target the growing middle class in China.”

According to López-Negrete, limited air connectivity is the main stumbling block to promoting Mexico in Hong Kong and China.

“Even though longhaul connections are available from Beijing, Shanghai and Hong Kong, we don’t have a national carrier. We have held discussions with multiple carriers to launch additional routes. Cathay Pacific is a key player and is interested in (starting flights to) Mexico,” he said.

Jetstar expands reach in China through Ctrip, TravelSky deals

By TTG Asia

August 8, 2012

JETSTAR has beefed up its distribution network in China by making its fares available to local consumers via Ctrip, the country’s largest online travel retailer, and to local travel consultants via TravelSky’s Eterm GDS.

“Our presence on Ctrip, China’s leading travel portal with more than 50 million registered users, creates improved access for our growing number of Chinese customers,” said Jetstar group CCO, David Koczkar.

In addition, the listing of Jetstar inventory on TravelSky’s Eterm GDS means that the airline’s fares and ancillary products are now available via over 7,000 travel agencies across China.

Meanwhile, local travel agencies also have the option of booking Jetstar fares through a new customised trade website, which provides direct bank debit in RMB for all Jetstar Group airlines flying to China.

“Working with our travel industry partners to ensure our low fares are easy to access for consumers is a key priority as we look to strengthen our presence on routes to-and-from China,” said Koczkar.

The Datai Langkawi offers nature appeal in its new meeting deal

By TTG Asia

August 8, 2012

THE DATAI Langkawi, a resort surrounded by a rainforest and secluded beach and renowned for its residential monkeys, has introduced a new package that brings the fun of nature into meeting programmes.

Priced at RM988+ (US$319) per person on a twin-share basis, the Monkey Business Package includes a two-night stay in a deluxe room, full-day use of a meeting room with LCD projector and complimentary Wi-Fi Internet access, daily breakfast, one lunch, one morning and afternoon tea break, as well as a kite-flying session on Datai Beach and a nature walk with the resident naturalist.

Event planners can pay an extra RM588+ for single occupancy per room.

This offer is valid for a minimum booking of eight rooms, and for stays by December 19 this year.

Contact salesdatailangkawi@dataihotels.com for more details.

Silversea launches multi-language resources for corporate clients

By TTG Asia

August 8, 2012

LUXURY cruise company, Silversea, has launched a series of foreign language resources for corporate and incentive travel planners.

The highlight of the new resources is a 34-page e-brochure that comes in English, Mandarin, French, German, Italian, Portuguese, Spanish, Japanese and Russian languages. Other tools include proposals, contracts and an e-newsletter, Executive Connection, which is now available in English, French, German, Italian and Spanish.

Corporate and incentive rates are also reflected in euro, US dollar, British pound and Australian dollar.

Steve Odell, Silversea president for Europe and Asia-Pacific, said: “These new tools, combined with Silversea’s team of corporate and incentive professionals in North America, Latin America, Asia, Australia, Europe and the UK, will help to create a meaningful dialogue with our valued partners around the globe.”