AMADEUS

David Brett
President
Amadeus Asia Pacific

A web-based GDS on the way

Next-gen products We have a number of exciting announcements planned this year, including developments in mobile technology. With 2.6 billion out of 5.3 billion global mobile users based in Asia-Pacific, we recognise mobile’s increasing significance to the travel industry.

We will also evolve our existing product portfolio, including the Amadeus Selling Platform. We plan to revolutionise the travel booking space by introducing a new solution based on feedback from travel agencies. It will be the only GDS booking platform that is completely web-based, providing access anytime and anywhere to global, regional and local content.

USP Technology is our competitive edge, as we have ongoing investment in innovation. We also have a unique product portfolio, and will continue to update it to ensure maximum productivity for travel professionals. Recently, we added Amadeus Offers, a time-saving solution that helps travel consultants in the management of pre-booking activities, quote handling, proposing alternatives, and making and cancelling provisional bookings.

Content Amadeus will continue to grow existing content across both air and non-air platforms. Today, we have 420 airlines and over 110,000 hotel properties bookable through our system. The LCC segment, in particular, is an area of growth for the company. We have 70 bookable LCCs.

Pricing Our Asia-Pacific customer base is highly diverse, hence our pricing model varies depending on the solution and market. We often offer solutions free of charge for a limited period of time and offer deals with other solutions. An example is Amadeus Printmytrip, which was rolled out across Asia-Pacific in July 2011 and offered free to interested travel agencies for the first three months.

Challenges facing travel consultants Ease of booking, reliability, cost efficiency and content aggregation are top concerns. We are becoming more of a consultant to help and advise our customers on how to get the best out of technology. Travel consultants are also facing an evolving customer psyche with rising expectations and demands for improved service.

Relevance GDSs continue to be the best and most proven means of distribution between airlines and travel consultants to travellers. They provide content to the benefit of travel consultants in terms of cost, efficiency and reliability; they also represent the best value and most efficient means for airlines to distribute their tickets to the largest possible market.

“We plan to revolutionise the travel booking space by introducing a new solution that is flexible, easy-to-use and time-saving.”  

TRAVELPORT

Simon Nowroz
President and managing director, Asia-Pacific
Travelport

New desktop goes beyond GDS

Next-gen products Our investment in technology over the last few years has come to fruition with three new flagship products. Travelport Smartpoint App, an add-on application for the Galileo Desktop, introduces a graphical look and feel, as well as point-and-click functionality. It also has in-built translation capabilities.

Travelport Universal Desktop (TUD), which has been rolled out to beta customers globally, is a next-generation desktop that offers an intuitive interface that pulls content and pricing from multiple sources beyond the GDS and allows for sale of airline ancillary products.

The Travelport Rooms and More hotel booking engine utilises meta-search technology to aggregate content from global leading accommodation suppliers. More than 675,000 accommodation options are on offer, allowing travel consultants to take advantage of the rapidly growing hotel sector.

USP TUD represents a quantum leap forward in the travel distribution space. It is not a re-skinned version of our existing desktop application, but an entirely new, integrated platform. The next phase of development will see the launch of the Software Developer Kit that allows independent software developers to plug in their own content and apps into TUD, further enriching available content.

Content Non-air continues to represent a strong opportunity for growth and we remain focused on this space, particularly in hospitality. We have seen a strong take-up of Travelport Rooms and More, now available to all travel consultants in 68 countries. Less than a year old, the portal has undergone significant development and growth, and will continue to do so throughout 2012.

Pricing The fee for Travelport Agility (a package that includes products such as Smartpoint App and Rooms and More) is nominal, and varies from country to country. The introduction of a single fee for Travelport Agility also enables a consistent pricing approach globally.

Challenges facing travel consultants Rise of the Internet, growth in social media and surge in smartphone usage amid unsteady economic conditions. As travellers become savvier, travel consultants need to step up their game in attracting and retaining customers.

Relevance The role of the GDS has evolved and it is no longer just a content pipe between A and B, but an integrated marketing, retailing and distribution platform, providing new ways to sell a wider range of content.

“It is not a re-skinned version of our existing desktop application, but a new, integrated platform that will improve selling and streamline work processes.”

ABACUS

Robert Bailey
President and CEO
Abacus International

GDS in a mobile phone

Next-gen products We have introduced Abacus Mobile, a web-based point-of-sale solution allowing travel consultants to offer professional service on the go. It runs on multiple smartphone operating systems including iPhone, RIM, Symbian and Android.

Late last year, we also unveiled WorkSpace, our next-generation point-of-sale tool which features a graphical interface. Travel consultants can track booking and customer data seamlessly, optimising operational efficiency.

In the second half of this year, we will release TripPlan, an online travel management tool to help companies improve compliance to travel policies, define travel privileges, map out approval workflows and identify preferred suppliers.

Abacus WebStart (an online booking engine specifically built for agencies to get their brands online) has also been enabled for mobile.

USP We have just launched Abacus PowerSuite, a full-service financial solution that offers complete front-, mid- and back-office functions. This suite encompasses a range of new features, including a tour management module that allows consultants to design bespoke FIT and group tour itineraries and packages. It has complete integration with Abacus WorkSpace.

Content We will focus on both air and non-air components. The former generates 95 per cent of our business, but non-air opportunities have yet to be fully capitalised. Looking forward, we hope to implement additional services and add value to our non-air business and help travel professionals to up their productivity, utilising our suite of up-to-date tools when it comes to packaging products or at the point of sale.

Pricing GDSs do charge for some new solutions, depending on the value an offering delivers to a travel firm. However, Abacus is sticking to a generic pricing model for now.

Challenges facing travel consultants The top three are continued pressure on margins, reduced settlement windows and fragmentation of content. They point to an urgent need for companies to invest in technology and evolve current business and service models to remain relevant in an online world.

Relevance We offer start-to-end solutions and we have an inherent understanding of the Asia-Pacific travel distribution market. We cover all areas of the travel distribution arena – be it online or offline – and now we’re utilising mobile technology to service travel consultants and consumers better.

“We have rolled out solutions leveraging on the Internet and mobile technology to help reduce costs while increasing revenue opportunities.”

SABRE

Hans Belle
Vice president and general manager
Sabre Travel Network, Asia-Pacific

The power of apps

Next-gen products The newly launched Sabre Red App Centre is the world’s first B2B application store for the travel industry, connecting travel buyers with third-party developers. Sabre-connected travel consultants can incorporate Red Apps into their workspace, leveraging the plug-in capabilities of the Eclipse Rich Client platform, upon which the Sabre Red Workspace point-of-sale system is built. (Abacus, partly owned by Sabre, has taken Sabre’s underlying infrastructure and released the Abacus WorkSpace, which also has access to the app store.)

Sabre is also developing the first global reservation system for booking public and corporate-owned HD video conferencing and telepresence rooms, namely Sabre Virtual Meetings. When integrated into travel applications such as online booking tools or agency systems, travel buyers will be able to reserve and schedule video conferences at the same time they book flights and hotels. This will be integrated into Sabre Red for travel consultants and GetThere for corporations later this year.

In addition, Sabre is combining key capabilities from its suite of mobile services into TripCase to offer a complete web, mobile and email product to travellers. The enhanced TripCase will deliver documents, expense reporting, agency messaging, navigational capabilities, in-policy bookings and traveller extras. TripCase becomes a single platform where travellers can access shopping, booking and travel management services, and through which consultants can continue to provide their services to travellers. This allows agencies to value-add services prior to and during the trip when travellers most need it, such as offering upgrades and destination services just before a trip rather than at the time of booking.

USP Innovative solutions such as the Sabre Red App Centre, Sabre Virtual Meetings, TripCase and Sabre Red Workspace are clear examples of our commitment.

Content Comprehensive content is critical, so we are always looking for opportunities to increase our content from travel suppliers. Currently, the Sabre GDS connects 350,000 travel consultants to more than 400 airlines, 100,000 hotels, 25 car rental brands, 50 rail providers, 13 cruise lines and other global travel suppliers.

Pricing We won’t comment on our competitor’s pricing or speculate on future pricing strategies.

Challenges facing travel consultants The threat to the current transparent travel marketplace and the inability of travel professionals and consumers to quickly and easily compare airfares, including ancillary fees. Sabre has long been a strong advocate for a transparent travel marketplace.

Relevance Asia-Pacific operates with highly successful regional GDSs such as Abacus that provide Asia-specific applications, features, functions and content.

“(The Red App Centre) will spur a whole new level of innovation, benefiting Sabre-connected agencies around the world.”

This article was first published in TTG Asia, April 20 issue, on page 12. To read more, please view our digital edition or click here to subscribe.

Additional reporting from Mimi Hudoyo and Linda Haden

Asian DMCs are eager to tap the lucrative Arab market, which is growing in quantity and quality

The Philippines
Marianne Carandang

New developments
The emergence of high-end resorts in the Philippines has been driving up demand among Arab clients, who like exclusivity.

New upscale developments, such as Misibis Bay in Legaspi and Bellarocca Island Resort and Spa in Marinduque, featuring villas, houses and private pools, are filling the gap in the accommodation sector, said Mary Ann Hildawa, sales manager, inbound division, Marsman Drysdale.

Visitors from the Middle East enjoy proximity to the “blue ocean and water” as well as vacations “in more relaxed attire”, added Angel Bognot, president, Afro-Asian World Events.

Riding on this, the Philippines Department of Tourism (DoT) will focus on raising awareness of the luxury resort and spa sector at the Arabian Travel Market (ATM). Later in the year, it will also introduce Puerto Princesa and Coron as new destinations for the market.

Growth prospects
The DoT has set growth targets for Saudi Arabia (15 per cent) and the UAE (20 per cent), its biggest source markets in 2011. Judging from an overwhelming number of enquiries from Dubai, Qatar and Kuwait for trips up to December, Bognot said Afro-Asian World Events was also expecting brisk business this year.

However, “there’s still a high incidence of business travel as compared to leisure travel”, said Kiko Lardizabal, who is heading DoT’s efforts for the Middle East.

Overall visitor numbers from the Middle East grew by 14.6 per cent last year from 48,716 in 2010. Visitors usually come with their families, staying between seven and 17 days in at least three resorts, starting from Manila, moving to Cebu or Bohol, and then Boracay or Davao.

Main source markets
Saudi Arabia and the UAE sent 22,214 and 12,734 visitors last year respectively. Saudi Arabia and Egypt are the fastest-growing markets, followed by Jordan, Qatar and the UAE.

Afro-Asian World Events, GSA for Etihad Airways, is cultivating Lebanon as an emerging market by wooing wholesalers, while its existing long-term partnerships with wholesalers in markets like the UAE are helping to bring in major contracts.

Iran is another potential market, but recent currency fluctuations have resulted in lost business for operators with bookings in the past few months.

DMC efforts
Ramadan promotions will target families and/or friends travelling together. Some companies, like Marsman Drysdale, are also homing into single markets such as Dubai and niche segments like expatriate families.

Malaysia
N. Nithiyananthan

New developments
Malaysia Airlines’ (MAS) flight pull-out from Dubai in January drew mixed reactions from the trade.

Asian Overland Services (AOS) Tours & Travel, director of sales, Andy Muniandy, cited the reduced flight connectivity to Malaysia as a major issue. “No other airlines serving the route are increasing their frequencies. Emirates adding an A380 is not going to make much of a difference. If other airlines add flights, there will be more passengers coming in from the region.”

On the other hand, Luxury Tours Malaysia senior manager, Arokia Das Anthony, did not view the loss of MAS as a major issue. Instead, he pointed out that this year’s dates for Ramadan presented a bigger concern for the company as the travel season from the Middle East had been “compressed into one month”, resulting in a smaller window to attract tourists.

However, Arokia was encouraged by several developments on the Malaysian front. He said: “Developments in Kuala Lumpur’s Bukit Bintang area, which make it look like a mini Dubai, are good for the market. With the ready availability of halal food, they love to come here. It is a family destination, and they can go anywhere.”

Growth prospects
AOS is hopeful of maintaining the same numbers as last year. Andy said: “People still want to travel here. There is talk of rescheduling school holidays to start earlier or later to facilitate greater travel. We will know the actual situation once we travel to the region for sales calls and the Arabian Travel Market (ATM).”

Luxury Tours’ Anthony added: “The length of stay of this market ranges from four days to two weeks, with the average stay at seven days.” He also expects to maintain last year’s volume.

Malaysia received 693,056 arrivals from the Middle East in 2011, a 0.3 per cent increase over 2010.

Main source markets
Saudi Arabia is AOS’ biggest source of travellers from the region, and Andy foresees that numbers will remain steady or increase. With Oman Air flying to Kuala Lumpur, the company anticipates a slight increase from the country. A slight pick-up from the UAE is also on the horizon as it recovers from last year’s recession, while Qatar has been stagnant, and Lebanon and Syria are expected to decline.

Luxury Tours will keep its focus on the UAE, where demand is expected to remain constant.

DMC efforts
Both AOS and Luxury Tours will be attending ATM, in addition to conducting sales calls in the Middle East.

Indonesia
Mimi Hudoyo

New developments
Tourist spend among Middle Eastern travellers to Indonesia is on the rise.

Fokus Indonesia Tours sales and marketing manager, Anthony Johannes, said: “Arrivals from the Middle East have stabilised, but the quality of travellers is improving. More family and FIT travellers are now staying at four-star hotels although they used to book (hotels in) lower categories. Many have also booked five-star resorts or villas.” He added that the incentive market was also growing.

Unique Choice is also seeing increasing demand for luxury travel. Harti Hadisoemo, director of business development, Indonesia, said:“Travellers are more confident of Indonesia, choosing to stay at top-notch properties like the Bulgari Resort in Bali. The honeymoon market is also growing.”

Growth prospects
Based on increasing enquiries from Middle Eastern buyers, Unique Choice is expecting the market to expand this year. The growing interest from hotels to cater to this market is also reflective of positive sentiment, said Harti. Fokus Indonesia Tours, on the other hand, expects last year’s volume to hold steady, but the number of quality tourists to increase.

In addition, Umberto Cadamuro, director of operations and business development, Pacto, pointed out that online bookings were also on the uptrend. “Several new OTAs have emerged in the Middle East, and this will be our focus at the Arabian Travel Market,” he said.

Despite the rosy outlook, all inbound operators that TTG Asia spoke to agreed that Indonesia’s marketing efforts still lag behind neighbours Malaysia and the Philippines, resulting in a market performance that is below its real potential.

Main source markets
The markets of Saudi Arabia and the UAE are growing, with the former comprising a bigger share of arrivals. However, numbers from Iran have dropped dramatically for at least one DMC.

Vayatour Bali director, Hanafi Sastrawinata, said the depreciation of the Iranian rial against the US dollar had resulted in a 50 per cent reduction in business from the market.

DMC efforts
Vayatour Bali is “balancing the loss from the Iranian market by boosting promotions in other important markets such as Lebanon and Jordan”.

The company is also promoting Jakarta and Bandung to the Saudi Arabian market. Bandung, in particular, has new hotels and attractions like the Trans Studio Bandung theme park and shopping centre Bandung Supermal.

Singapore
Linda Haden

New developments
The fairly new integrated resorts are continuing to lure visitors from the Middle East, who are mainly attracted to family-friendly offerings and luxury accommodation.

Samson Tan, CEO, GTMC Holdings, said: “Middle Eastern tourists perceive the Marina Bay Sands hotel as a must-see icon that they have to stay in at least once in a lifetime. They are also enticed by Singapore’s excellent designer shop offerings.”

A sales staff from Pacific Arena who wanted to remain anonymous added that Singapore’s family-oriented attractions such as Resorts World Sentosa’s Universal Studios and the zoo were also key draws.

Growth prospects
While GTMC’s bookings from the Middle East grew by 15 per cent between 2010 and 2011, Pacific Arena saw flat growth. Comparatively, Singapore Tourism Board’s (STB) statistics show that visitor numbers from the Middle East rose by 5.3 per cent in 2011.

However, the rising costs of holidaying in Singapore could put a damper on growth. Said the sales staff from Pacific Arena: “Singapore’s exorbitant hotel room rates are keeping Middle Easterners away to some extent. Even though they are quite affluent and tend to opt for luxury properties, they are quite prudent and usually compare prices to justify spending.”

However, Tan remains optimistic. He expects this lucrative segment to record double-digit growth this year. “With brand new family-friendly attractions coming online, more Middle Eastern visitors will be tempted to visit Singapore,” he said.

Middle Eastern visitors stay an averageof four to five days in Singapore, according to groundhandlers that TTG Asia spoke to.

Main source markets
Most clients originate from the UAE, specifically Dubai and Abu Dhabi, said inbound operators dealing with Middle Eastern markets. This trend is also captured in STB’s statistics, which show that UAE visitors comprised about 41 per cent of all visitors from the Middle East in 2011.

DMC efforts
Both GTMC and Pacific Arena have developed packages targeted at families, who form the bulk of visitors from the Middle East. These incorporate child-friendly luxury accommodation and family attractions such as Universal Studios, Science Centre and Night Safari.

To market these packages, the companies are attending relevant tradeshows and taking out advertisements in Middle East-based media.

This article was first published in TTG Asia, April 20 issue, on page 18. To read more, please view our digital edition or click here to subscribe.