Whether it’s discovering new revenue streams or warding off existing threats, travel companies across Asia are evolving. Take a leaf from success stories told to TTG Asia.

Wee Hee Ling
CEO
CTC Travel

Offline buying online

WHO CTC Travel, a Singapore-based travel company providing leisure and corporate services, well known for its outbound packages.

WHAT Last month, it announced that it had acquired an 80 per cent stake in Singapore-based MISA Travel, whose strength lies in online travel ticketing services. MISA’s various online ticketing channels will now come under CTC, including airfares.com.sg, hotels.com.sg, cruises.com.sg, getaways.com.sg, resorts.com.sg, landtours.com.sg and rails.com.sg.

The two companies will retain their separate brand identities, although there will be some integration in the areas of product development, marketing, human resources and finance. For instance, CTC-designed products will be sold on MISA’s numerous websites, which might be enhanced with live-booking capabilities at a later stage.

WHY With technological know-how provided by MISA, CTC will now be able to tap the burgeoning online booking space, reaching out to new markets.

“MISA Travel’s online portals stand to offer instant access, affordable options for travel products which will provide an opportunity to manage distressed air tickets and hotel inventory for all travellers”, said CEO Wee Hee Ling. The merger marks the beginning of CTC’s three-year plan, which includes expanding its corporate travel services such as MICE and inbound tours.

Michael Lee
Director
Luxury Tours & Travel

B2C + B2B 

WHO Luxury Tours & Travel, a Singapore-based tour operator that provides a range of services from hotel reservations to seat-in coach tours.

WHAT It launched the Singapore Tripper Pass last November, a two- or three-day pass that includes entrance to 18 attractions in Singapore, while also acting as a cashcard for public transport.

Luxury is also signing white label agreements with travel companies across Asia, allowing their products to be featured on its website. A revamped site will be unveiled this year.

In addition, the company is in the process of closing its tour desks in Singapore and migrating all its products online.

WHY Director Michael Lee explained that competition was intensifying among offline and online players in Singapore, and profit margins were shrinking. Alternative sources of revenue were needed, he added.

“Travel companies that work with us through our white label agreements will have an additional means of revenue while we earn commission. Conversely, the Singapore Tripper Pass will enable us to reach out directly to consumers without alienating our existing business partners,” Lee said.

Juliana Gan
General manager, outbound travel
Dynasty Travel International

Moving upmarket

WHO Dynasty Travel International, a Singapore-based travel company that sells mainly outbound tours.

WHAT In 2010, it launched the Royale Dynasty brand and opened a Royale Dynasty retail outlet at Marina Bay Sands, targeting high net worth clients. The new brand caters to Singaporeans willing to spend more on top-tier experiences, as well as inbound travellers keen on local or regional sightseeing trips. Services include private jet arrangements, personal tour guides and a travel concierge who can draw up customised itineraries.

WHY “An increasing number of affluent travellers, both in Singapore and internationally,” said Juliana Gan, general manager of outbound travel. The two integrated resorts offer a rich source of clients for Royale Dynasty. Singapore’s upcoming International Cruise Terminal will also provide opportunities to service luxury cruise clients.

The company has seen a 20 per cent increase in luxury customers since 2010.

Pham Ha
CEO
Luxury Travel

Reaching Down Under

WHO Headquartered in Vietnam, Luxury Travel is a tour operator focusing on high-end travellers. Top markets are Australia, the US and Singapore.

WHAT It entered into a joint-venture with Australia-based The Cape Club to form Cape Lux Travels in October 2011. The marriage brings together Luxury’s expertise in Indochina with The Cape Club’s client base. The top five destinations sold by The Cape Club are Vietnam, Laos, Cambodia, Thailand and Myanmar.

Cape Lux Travels will introduce new fully-escorted tours to wealthy clients from Australia initially, and later to those from the US, UK and Europe. Vietnam, Cambodia and Laos are its first three destinations.

WHY To widen Luxury’s reach in the Australian market, one of its top markets. “The Cape Club understands Australian luxury travellers and creates beautiful niche experiences for guests,” said CEO Pham Ha. The joint venture is expected to attract 500 to 700 clients in the first year of operations.

Helen Xu
Managing director, sales & distribution
Panorama Tours Indonesia

Beefing up FIT retail

WHO Panorama Tours Indonesia, an outbound travel company  which handles the corporate, MICE and leisure markets.

WHAT With already a division dedicated to groups, it developed a strategy to target the FIT market beginning last year, creating free-and-easy packages. It has also opened one retail outlet targeting young travellers, with 10 more on the way. Products can be bought a la carte or as special deals. Examples include backpacker packages and special interest packages for those who travel to watch soccer games. Destinations sold are mostly shorthaul, such as Singapore, Malaysia and Hong Kong.

WHY Managing director, sales & distribution, Helen Xu, said: “The FIT outbound market in Indonesia is huge, but many travel companies are not interested in seriously developing it. Most of them concentrate on developing group tour programmes. We see this as an opportunity.” She added that last year, retail FIT business increased by 70 per cent compared to 2010.

Debjit Dutta
Director & CEO
Impression Tourism Services (India)

Re-invent a destination

WHO Impression Tourism Services (India), a Kolkata-based B2B inbound travel company.

WHAT Developed a range of products and created a new branding for West Bengal, its primary destination. Mountains to Mangroves – A Journey of 1,000 Kilometres has helped to highlight the diversity within the Indian state, from the Himalayas to the Bay of Bengal. The auspicious Bengal owl was also used as a mascot for marketing the products and destination.

WHY Director and CEO Debjit Dutta said the company faced price competition for oft-trodden itineraries, while product development for West Bengal had been stagnant in 10 years. “Instead of taking a beating from OTAs, we decided to re-invent the destination and create several products.” Impression is now readily identified with the destination. Once a small tour operator, it currently serves 900 B2B clients.

Manoj Gursahani
Chairman
Gursahani group

Identify gaps online

WHO Gursahani group, whose diversified interests range from technology to healthcare. Its travel division Travelmartindia is said to be India’s first e-commerce travel portal. Travelmartindia is supported by an offline arm, offering airline tickets, hotels, leisure packages and MICE arrangements.

WHAT Gursahani group entered the group-buy deal space last year with vamoose.in, which is currently being integrated into Travelmartindia’s website.

It also launched myairporttransfers.in last year, offering chauffeur-driven car rental services for airport and railway station transfers in all major cities in India. This operates as both a B2B and B2C model.

WHY The new ventures were in response to “dynamic changes in the marketplace” as well as “to cater to specific niches and address existing gaps”, said chairman Manoj Gursahani.

Jo Jo Chan
Director and general manager
Wing On Travel

Harnessing technology

WHO Hong Kong’s Wing On Travel is known for its premium outbound travel services. Chinese OTA Ctrip bought a majority stake in Wing On Travel’s travel service segment in 2010.

WHAT Last August, it rolled out iWingon.com, an online hotel booking portal offering 17,000 hotels in 500 Chinese cities. Customers pay only upon check-in and no bank charges are incurred.

In November, the My Group concept was launched, allowing private groups (minimum 10 pax) to book Wing On’s signature group tour itineraries, based on standard fares. Bigger groups have more discounts.

WHY “With Ctrip’s strong back-up, we wanted to expand our business and be the market leader. Ultimately, the group wants to become a leader in Asia through product innovation and value-added services,” said director and general manager Jo Jo Chan.

Tan Sin Chong
Managing director
Reliance Travel

Go the franchise way

WHO Reliance Travel, a Malaysia-based outbound travel company.

WHAT Boosting business through franchising. While initial franchised outlets were concentrated in the city of Kuala Lumpur, they have spread out to the suburbs. Last August,  Reliance opened its 15th franchise, some 30km away from the city.

WHY Said executive director Raymond Lee: “(The franchised outlets) increase our reach and brand presence, and collectively portray a strong brand visibility for Reliance in most key urban areas with high population bases.”

Additional income is also generated. Franchised outlets currently contribute 40 per cent of Reliance’s total sales compared to 20 per cent three to five years ago, Lee added. The company has plans to expand its franchise network to other big cities over the next two years.

Vincent Liu 
CEO
Star Travel Corp

Cutting out the middle

WHO Star Travel Corp, a Taiwanese outbound travel company that counts Japan as its bestselling destination.

WHAT Tackling cost increases by eliminating the middle man. Taiwanese travel companies usually rely on local contacts in Japan to book hotels and on-the-ground services, “so nobody here knows what the real price is”, said CEO Vincent Liu.

Last year, Star Travel decided to deal directly with Japanese suppliers. With pre-paid bookings, the company was also able to negotiate lower prices.

WHY The March 11 earthquake and tsunami resulted in Japanese companies repatriating funds from overseas, forcing the Japanese yen to strengthen. What was once Star Travel’s most profitable business sector (outbound to Japan) was under threat, as the Japanese yen rose 20 per cent against the NT dollar. Going direct provided an effective hedge.

Additional reporting from Sirima Eamtako, Linda Haden, Mimi Hudoyo, Anand and Madhura Katti, Prudence Lui, Glenn Smith, N. Nithiyananthan and Shekhar Niyogi

This article was first published in TTG Asia, January 13  issue, on page 2. To read more, please view our digital edition or click here to subscribe.  

Kuala Lumpur is main beneficiary, while the rest are in Malacca and Sabah.

The Malaysian capital will witness the opening of five new properties (2,119 rooms) this year, widening the choice of hotels for travellers, especially for those seeking more economical options.

Leading the pack is Accor, with an ambitious plan to open 10 more hotels by 2014, adding a total of 1,224 rooms. It currently has four properties in Malaysia. More significantly, the hotel group will enter the economy segment in Malaysia this year, with the introduction of the Ibis brand.

Vice president of Accor-Malaysia, Indonesia & Singapore, Gerard Guillouet, said the company aimed to be the leading international hotel operator in Malaysia by 2015.

“These 10 new properties bear testimony to Accor’s belief that Malaysia is set to be among the leaders within the tourism and hospitality industries in the region,” he added.

The first of these properties will be the 513-room Pullman Kuala Lumpur Bangsar, due to open by mid-2012.

Two Ibis Styles properties will also come onstream this year, located in the Frasers Business Park (500 rooms) and Cheras (156 rooms).

Other hotels making their way to Kuala Lumpur are the D’Tiara Amanah Raya Hotel Suites in the transport hub of Sentral (507 rooms) and the Park Regis in the city centre (443 rooms). In the satellite town of Petaling Jaya, the Royal Bintang Surian is slated to open with 300 rooms.

Luxury Tours Malaysia senior manager Arokia Das Anthony said the developments would expand available options for travel professionals, pointing out that the arrival of Ibis Styles was  especially noteworthy.

“There are not many international three-star hotel brands in the city. It will definitely have an impact,” he added.

Mayflower Acme Tours headinbound division, international sales, Andy Soo, said: “Looking at their locations in the golden triangle (CBD), they will be targeting corporate and business travellers. Having more international brand names is always a winner. More is better.”

Anthony said Luxury Tours had benefitted from the three hotels which opened in 2011 – Furama, Pudu Central and My Hotel.

“They were excellent additions to the city and offered excellent rates,” he said.

However, rates were not expected to soften with the arrival of new properties despite an oversupply in the city, said the two travel experts.

“Online bookings have changed the name of the game. Rates are going to be standard from about RM150 (US$50) for a three-star hotel to RM300 upwards for a five-star hotel,” Anthony explained.

Outside of Kuala Lumpur, 
the rest of the new openings for 2012 will be in the highly popular tourist destinations of Sabah and Malacca.

In Malacca, the Best Western Plus Riverside Hotel (170 rooms) and Hatten Hotel (700 rooms) are due to open.

And in Sabah, the following openings are anticipated: Best Western Sandakan Hotel and Residence (170 rooms); Grand Uno Hotel & Residence, South China Sea Place, Kota Kinabalu (167 rooms); and Gaya Island Resort, Borneo (121 rooms).

By N. Nithiyananthan

This article was first published in TTG Asia, January 13 issue, on page 15. To read more, please view our digital edition or click here to subscribe. 

Asia’s waters will see even more cruise activity in 2012. TTG Asia examines several expansion plans*

Michael Bayley
Executive vice president
Royal Caribbean Cruises (RCC)

TTG Travel Agent Conference 2011

Pin these up on the wall and start your journey to becoming better travel experts.* We also kick off the travel trade’s very own crossword puzzle to help you gain knowledge in a fun way. Have a great start to 2012

10 reasons to use a travel consultant
(for every client who walks in)

1. You’ve googled ‘Paris vacation’ and come up with 17.8 million responses. Need a little help editing those choices?

2. Remember when you used that obscure website to book your hotel, and when you got there, spent your beach vacation overlooking a parking lot?

3. How many hours were you on hold with the airline when your flight was cancelled because of a storm or a volcanic eruption?

4. Did you really mean to spend your honeymoon at that resort whose one tiny pool was filled all day with 12 screaming children?

5. Who knew that when you booked that ‘villa’ in Tuscany, it would be a small room with a kitchenette and no air-conditioning? Funny, it looked much better on your computer screen.

6. No one explained to you that in July, it’s winter time in Rio, and so you showed up there with nothing but five Hawaiian shirts and three pairs of swimming trunks.

7. How about the time you really needed a quick breakaway, and ended up on the Gold Coast during Schoolies and someone threw up on your shoes?

8. Yes, I guess that hotel must have used a telephoto lens when they took a picture of those guestrooms that you saw on their website. No, I wouldn’t have guessed that the photo was taken in 1973.

9. I suppose contacting the Attorney-General to resolve the fact that the Internet site has billed your credit card three times instead of once is the only route to take at this point. Yes, of course I sympathise that the exchange rate has changed and even if they do put the money back in your account, you’ll now get less.

10. It was definitely odd that there were no cab drivers at the airport at 3am when you finally landed in Phuket, but booking a transfer to your very remote hotel would have been a good thing to remember when you purchased your airline ticket and hotel online.

– Adrian Caruso, master business coach, TA Fastrack, Australia

By Martin Symes, CEO, Wego, Singapore

To go (online) or not to go, that is the question
Here are five reasons to help you make up your mind:

Reason 1
OTAs all IPO for millions.
Fact: Every successful online travel business has been an online ‘pure-play’ (e.g. Agoda, Priceline, Wego).

Reason 2
The owner’s kid wants something fun to do.
Fact: The people who set up online businesses are passionate about the online space and put everything they have into the business.

Reason 3
My business won’t survive if it’s not online.
Fact: Nobody will use a Mickey Mouse website with no compelling consumer proposition.

Reason 4
I want to dedicate resources to build a standalone, country-specific, high-quality online travel site.
Fact: Market is still wide open in several South-east Asian countries. But mind you, do it properly – or not at all. Have a dedicated team with relevant expertise and experience; invest in decent technology/design and brand; measure against different metrics to offline business; leverage existing supplier relationships; consider partnering with other local players (e.g. Raja Kamar International); partner with an overseas player (e.g. Wotif/Buffalo Tours).

Reason 5
I want to build a limited web presence to complement my existing offline business.
Fact: A chance to reduce cost/add revenue. Also, trims call times as customers know what they want. Build a simple brand site; use white label/affiliate solutions to extend product lines; deploy shopping engines for core products; retain offline fulfillment processes; offer serious service level commitments; train staff to inform customers of the website’s benefits.

The seven deadly sins
Want to win customers from the Internet right now? Avoid these seven things that consumers complain most about travel consultants:

1. Phone calls/emails not returned
2. Customers ignored
3. Mistakes in bookings/ itineraries
4. Documents not ready for collection
5. Being treated as just another booking, not as a valued customer
6. Basic travel and destination information not provided
7.  Not communicating with customers enough

– Adrian Caruso, master business coach, TA Fastrack, Australia

How to lose clients & win complaints
Six tips to follow if you want to lose clients to the Internet right now. Guaranteed to achieve no loyalty:

Tip #1  When in doubt, just wing it.

Tip #2  Over promise, under deliver.

Tip #3  Sell cheap, charge optionals  later!

Tip #4  Hard sell! Pressure reaps results.

Tip #5  Refund? What refund?

Tip #6  Fine print! What a customer doesn’t know…

– Sheldon Hee, former general manager of Tradewinds Tours & Travel in Singapore, who urged travel experts to drop the above practices and instead build trust, invest in professionalism and hone their customer service to be in the right club of winning clients and losing complaints, not the other way round

This article was first published in TTG Asia, January 13  issue, on page 4. To read more, please view our digital edition or click here to subscribe.