TTG Asia
Asia/Singapore Saturday, 3rd January 2026
Page 2691

Travel experts want streamlined ancillary distribution

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TRAVEL companies around the world are keen to sell ancillary airline products but seek a more efficient booking process, preferably through the GDS, according to findings of Travelport’s global airline merchandising survey.

The survey, conducted with 610 travel companies in 12 countries worldwide, found that top impacts from the growth of ancillary products were confusion around the services offered by each airline, productivity and the need to offer these services to remain a full-service agency.

Only 16 per cent of respondents saw unbundling as an opportunity to charge or increase fees and 44 per cent of respondents said they did not impose additional charges for booking optional services.

Travelport found that agencies would be more interested in selling optional services if the process was more efficient, as the current booking process requires approximately 29 percent more time.

Findings indicated a strong demand for a single aggregated distribution channel, as opposed to the current arrangement where some services are available through the GDS and others on airline websites and by phone.

The GDS was listed as the preferred channel to book and sell optional services by 70 per cent of respondents.

Eight per cent of agencies are not booking optional services for their customers. Forty-one per cent of European travel consultants said ancillary services “doesn’t generate any additional revenues”, while 33 per cent of American consultants said “most services are not available for agency booking”.

Respondents also indicated their preference for having branded fares – fares that are bundled with optional services – on GDS, saying that such fares allow them to offer a full service to clients and stay competitive with airline websites.

Don Mueang operations to resume

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BANGKOK’s Don Mueang International Airport is set to re-open for commercial flights on March 6, following its closure last year due to extensive flooding (TTG Asia e-Daily, October 25, 2011).

Only one of two runways at Don Mueang will be open to traffic.

Nok Air, the LCC subsidiary of Thai Airways International, has decided to shift operations from Suvarnabhumi Airport back to Don Mueang, but Orient Thai Airlines remains hesitant about such a move.

Airports of Thailand is scheduled to conduct a 60-day routine maintenance exercise of the operational runway in April, and has given assurances that this will not affect normal services

MAS to serve Sandakan

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MALAYSIA Airlines (MAS) will reintroduce direct flights between Kuala Lumpur International Airport (KLIA) and Sandakan from February 18, with a frequency of 11 flights a week.

The reinstated service fills a void created when MAS axed its subsidiary Firefly’s flights between the two points on December 4 (TTG Asia e-Daily, October 21, 2011), leaving AirAsia as the sole carrier on the route.

MAS explained in a statement that the service was reintroduced due to strong demand for premium direct full-service connectivity between Sabah’s second largest city and the KLIA main terminal, and would provide much needed links to MAS’ international destinations.

Borneo Trails Tours & Travel general manager, Tan Kok Liang, said: “Sandakan is popular with the UK, Europe and Australian markets. Now these tourists can fly all the way through to Sandakan via KLIA. Transiting through Kota Kinabalu incurs more time.”

“Using AirAsia from Kuala Lumpur to Sandakan is also not an option because of the need to change airports from KLIA to the LCCT (low cost carrier terminal), and the different flight timings,” he added.

Perceived fare differences between MAS and the less expensive Firefly would not be an issue, said Sandakan-based Sepilok Tropical Wildlife Adventure sales & marketing manager, Jessie Chin.

“Firstly, MAS also gives good offers. Secondly, European tourists are more comfortable travelling on MAS,” she explained.

By N. Nithiyananthan

Mövenpick eyes Asian expansion

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MÖVENPICK Hotels & Resorts will open nine new hotels across Asia by 2014, adding to existing properties in Thailand (two in Phuket), Vietnam (Hanoi & Ho Chi Minh City) and one each in India (Bangalore), the Philippines (Cebu) and Singapore.

In Thailand, the 286-key Mӧvenpick Suriwongse Hotel Chiang Mai and 81-pool villa Mӧvenpick Resort & Spa Mae Nam Beach Koh Samui will open in third quarter 2012. The 250-room Mövenpick White Sand Beach Resort will open in Jomtien, close to Pattaya in mid-2013, while Mövenpick Hotel & Residences Bangkok will open with 266 rooms and suites, and 100 residences by end-2013.

Indonesia will get its first-ever Mӧvenpick in 2014, overlooking Jimbaran Bay in the south of Bali. The Mövenpick Resort & Spa Jimbaran will offer 270 rooms including 70 suites, and an additional 70 branded residences. Facilities will include a 500m2 ballroom, a business centre, and several meeting rooms.

Further inaugural openings will take place in 2014 in Sri Lanka (Mövenpick Hotel Colombo), China (Mövenpick Hotel Shanghai), and Malaysia (Mövenpick Hotel & Convention Centre KLIA, Kuala Lumpur), while the Mövenpick Resort & Spa Dharamshala will open in Northern India the same year.

In addition to these nine scheduled openings, further properties have been earmarked for Malaysia (Terengganu) and China (Sanya & Chifeng).

Speaking to TTG Asia e-Daily during last month’s ATF 2012 in Manado, Markus Mueller, Mövenpick Hotels & Resorts vice president sales and markeing–Asia, attributed the group’s regional expansion spree to a realisation that Asian markets were showing the most promise in terms of growth potential.

“Nowadays, we are seeing more and more Asians than European customers (in our Asian properties)…(the clientele mix) has completely flipped around. Business from European markets is either stagnant or slowing down,” he said.

According to Mueller, a growing number of Mövenpick’s guests are coming from South-east Asia, as well as South Korea and India, where the group plans to ramp up its marketing efforts covering social media channels, as well as its partnerships with local travel consultants.

Cebu Pacific to fly Manila-Siem Reap, harbours longhaul ambitions

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CEBU Pacific will launch thrice-weekly direct flights from Manila to Siem Reap starting April 19, representing a breakthrough on the monopoly on transit services to the destination.

Travellers from Manila usually access Siem Reap via Bangkok or Hanoi/Ho Chi Minh City, with connecting flights offered by Bangkok Airways and Vietnam Airlines, respectively.

Manila-based Goldlink Travel & Tours operations manager, Allan Sze, said: “The ‘obstacle’ (previously was) the flight to Siem Reap, which from Manila is accessed by flying through Vietnam or Bangkok. That would cost you about US$500-600.”

“Cebu Pacific’s new flight will reduce flight costs by about half, to about US$300,” said Simon Ang, operations manager at Celebrate Life TLC Corp, a Manila-based travel firm that focuses on outbound to Indochina.

Ang is already blocking off group bookings in response to the new route. “I’m looking at three or four groups in April, and maybe six to seven groups in May. We foresee huge demand in the near future, and hopefully Cebu Pacific will increase the flight frequencies to Cambodia after a few months,” he said.

Meanwhile, Cebu Pacific is looking to lease up to eight Airbus A330-300 aircraft to launch longhaul flights of up to 11 hours in third quarter 2013.

Cebu Pacific’s president & CEO, Lance Gokongwei, said: “We are exploring serving cities where large Filipino communities reside – Europe, the Middle East, Oceania and the US.”

“Data indicates that more than half of Filipinos deployed in these regions take multiple stops and connecting flights, because no home carrier can fly them there non-stop,” he added.

The LCC is scheduled to launch two other routes on March 23, Manila-Xiamen (TTG Asia e-Daily, January 3, 2012) and Hong Kong-Kalibo (Boracay), both operated thrice-weekly.

TAT appoints director for New Delhi

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THE TOURISM Authority of Thailand (TAT) has appointed Runjuan Tongrut as the director for its New Delhi office, effective February 3.

Runjuan, an experienced tourism marketing planner, will replace Chattan Kunjara Na Ayudhya, who will be returning to TAT head office in Bangkok to take up the position of director of International Public Relations Division.

Runjuan said: “South Asia is such a huge market that it is sometimes a challenge to consolidate the demands of our partners and effectively respond to them. I am hoping that my planning background will enable me to guide and support them whenever it is called for.”

TAT said in a statement that it was “reassessing its strategy to focus more on travel trade and corporate partnerships” in India, especially in view of the burgeoning Indian tourist market to Thailand.

SIA to persist with Sao Paulo operations

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FOLLOWING the collapse of Spanair, Singapore Airlines’ (SIA) codeshare partner on the Singapore-Barcelona-Sao Paulo route (TTG Asia e-Daily, January 30, 2012), the Singapore flag carrier is remaining steadfast in operating the thrice-weekly services.

SIA spokesperson Nicholas Ionides said: “We remain very committed to the Singapore-Barcelona-Sao Paulo route. We are discussing the matter with the relevant parties and for now, there is no change to our three-times-weekly operations on the route.”

Back when the Spanish government first granted fifth-freedom traffic rights between Barcelona and Sao Paulo to SIA, it was reported that SIA’s prerogative to ferry passengers from Barcelona to Sao Paulo were contingent on a codeshare arrangement with Spanair.

When SIA launched this service last March, it cited the greater catchment of South-east Asia (especially Indonesia) and China, as well as Brazil’s hosting of more than 90,000 events annually – including a Formula One Grand Prix, the 2014 FIFA World Cup and 2016 Summer Olympic Games – as key attractions for the route.

Singapore signed an open skies agreement with Brazil in 2010.

Senior management changes for Suntec Singapore

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Ong Wee Min (left) and Arun Madhok

SUNTEC Singapore International Convention & Exhibition Centre (Suntec Singapore) has promoted Ong Wee Min to the position of CCO and Arun Madhok to the position of COO.

Ong, who was previously director, Commercial, will lead Suntec Singapore’s sales and marketing activities for the various market segments, as well as assume commercial responsibility for Suntec International.

Madhok, most recently director, Business Development, will be responsible for the overall operations of Suntec Singapore, as well as oversee the implementatation of its planned modernisation programme (TTG Asia e-Daily, November 1, 2011).

Suntec Singapore hosted 1,600 events and approximately 7.1 million visitors in 2011.

Citilink edges closer to flying solo

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GARUDA Indonesia’s LCC subsidiary, Citilink, is one step closer to being spinned off from its parent airline (TTG Asia e-Daily, August 4, 2011), having been granted a scheduled commercial airline license by Indonesia’s Ministry of Transportation.

Citilink is expected to receive its Air Operator Certificate (AOC) within the next three months, which will enable the carrier to operate independently of Garuda.

Garuda’s strategic business unit Citilink vice president, Elisa Lumbantoruan, said in a media statement: “With the issuance of the license and the AOC, Citilink will officially operate independently from Garuda.”

“This also means that Citilink will have to take various business expansions and actively participate in the national airline market,” he added.

Citilink currently operates a mix of nine Boeing 737-300 and Airbus 320 aircraft to provide connections between Jakarta, Surabaya, Denpasar, Batam, Balikpapan, Banjarmasin, Makassar and Medan.

As part of its expansion strategy, Citilink will operate a fleet consisting of one B737-400, six B737-300s and 13 A320s by year-end. The airline is scheduled to receive 25 new A320s between 2014 and 2018.

Meanwhile, new destinations earmarked for the year include Jogjakarta, Padang and Pekanbaru.

Air New Zealand CEO to step down

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Rob Fyfe

AIR New Zealand (ANZ) CEO, Rob Fyfe, will be stepping down from his role on December 31, 2012.

Fyfe’s decision to leave the New Zealand flag carrier by end-2012 coincides with the conclusion of his term as Star Alliance chairman, and will also see him complete four years as an IATA board member.

ANZ chairman John Palmer said: “There is no fixed time for when the decision will be made on the appointment of Air New Zealand’s next CEO, but a normal period would be roughly six months.”

“We would expect significant international interest in the role and believe there are some very strong candidates from within Air New Zealand’s existing executive management team.”