TTG Asia
Asia/Singapore Friday, 24th April 2026
Page 2707

Air India to appoint GSAs in over 50 countries

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AIR India is making new product and distribution moves as part of a US$360 million financial restructuring plan, which will see it adding more economy-class seats and appointing GSAs in 56 countries.

The five-year GSA contracts are meant to garner new markets, as the airline is poised to launch several international routes from New Delhi and Mumbai this year, especially with the entry of its first 787 Dreamliner into service in summer.

Due to low demand for business-class seats, Air India is also reconfiguring 62 Airbus A320s in its fleet, leaving 14 with all-economy seats, while 43 will see the number of business-class seats reduced.

Anil Punjabi, chairman-east, Travel Agents Federation of India, said: “Air India is now looking realistically at its bottom line. More economy seats will help hugely in increasing domestic market share, and given its large network in the country will keep fares low. GSAs are the way to go for international markets.”

In the wake of the economic slowdown in 2008-2009, Air India shut down several of its overseas offices to cut down on operational costs. There are currently 10 overseas offices owned and staffed by the airline.

Accor’s new Formule 1 hotels fill gap in India

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ACCOR’S launch of its Formule 1 brand in India is seen as a breath of fresh air by travel consultants, who lament the lack of branded rooms in lower-tier categories. The first Formule 1 hotel opened its doors in Greater Noida on April 4, while 10 more properties are expected to be launched by 2013.

According to Philip Logan, vice president Formule 1 Hotels, India, Formule 1 will be the first international budget hotel brand in India with a price of around Rs2,000 (US$40) per person.

Based on the concept of standard rooms with a single price for up to three people, Formule 1 hotels target domestic corporate travellers looking for low room tariffs and quality service standards. They are well known in Europe.

Rajat Sawhney, managing director, Rave Tours & Travel, said: “Such hotels fulfill a much-awaited need. There is a large concentration of travellers who look for clean comfort at budget prices with some standardised facilities. Formule 1 hotels should be able to cater to this requirement.”

Susrita Banerjee, managing director, Fly Faraway, said: “A low-cost hotel offering standardised quality under the Accor umbrella brand will plug a much-needed gap in India’s hotel development. While most branded rooms are in the luxury or five-star categories, development in the budget category is unorganised and sporadic. Formule 1 will be a popular option for many business travellers.”

Located in the business hub of Greater Noida, the new Formule 1 hotel features 114 soundproof rooms with amenities such as a flatscreen TV, Wi-Fi, quality bedding with duvets, attached bathroom, individually-controlled air-conditioning and a work table.

Tourism Australia beefs up China team

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TOURISM Australia has appointed two senior executives responsible for developing its operations in Greater China.

Assuming the newly-created role of regional manager for Greater China, Eva Huang has 17 years of marketing and strategy development experience gained in the UK, North America and China. She will be responsible for strategic development and leading the Greater China team.

The NTO is also targeting to grow the number of business and incentive events from China, with LC Tan being appointed as business events manager for Greater China. China is the fastest-growing market for business event arrivals into Australia, and is currently the country’s third biggest market for business arrivals.

Separately, Tourism Australia has created an integrated business events advertising campaign that will be translated into local language, and also recently launched a new website for event planners, www.businessevents.australia.com, which will be translated into Mandarin later this year.

Westminster Travel buys Travelex HK to target corporates closer home

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WESTMINSTER Travel has acquired a 100 per cent interest in Travelex Hong Kong, following the completion of a HK$79 million (US$10 million) deal on March 31. The buyout covers only the travel service arm, and Travelex will be rebranded in the next three months.

Diversifying the group’s business strategies was the rationale behind the acquisition, according to Larry Lo, managing director, Westminster Travel. “Currently, our joint venture with HRG serves global corporate (travellers), while Westminster targets the local and regional corporate (sectors). In fact, local SMEs also require (personalised services) and we want to tap into this market.”

There will be no major changes to Travelex’s existing management team, said Lo, with Eliza Ma continuing to head the 85-staff company as general manager for corporate and leisure travel.

Ma said: “In the past, Travelex’s core business was money exchange, and travel services had limited support. Our strategy (now) is to explore SMEs’ needs and deliver tailor-made outbound products with a personal touch.” To fuel growth, 10 more staff will be recruited within a year and a new website with more interactive functions, such as instant online confirmation, will be launched.

Added Lo: “We are open to any joint ventures or acquisitions for generic growth. Our mission is to maintain our market position, and diversification is the way to go because of fierce competition nowadays.”

Malaysia expects PATA conference to drive MICE

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MALAYSIA anticipates that its hosting of the annual PATA conference in Kuala Lumpur from April 19-22 will attract more events into the country.

Malaysia’s tourism minister and PATA conference chairman, Ng Yen Yen, said: “Hosting the event will enable us to highlight that tourism is taken very seriously in Malaysia with the full support of the prime minister and cabinet.”

“For example, when (the PATA conference) was held in Malaysia in 2001, we did not have a dedicated tourism ministry as at present. It was combined with arts and culture.”

According to Azizan Noordin, acting director general of Tourism Malaysia, Malaysia’s experience of hosting PATA conferences have boosted the country’s reputation for MICE. Malaysia held PATA conferences in 1972, 1986 and 2001.

Since then, the country has also built a slew of dedicated convention centres including the Kuala Lumpur Convention Centre, Genting International Convention Centre and Borneo Convention Centre Kuching, he added.

Themed Building the Business Beyond Profits, this year’s PATA conference has registered 461 delegates from 14 countries.

Tunku Iskandar, PATA’s programme committee chairman said: “There are two key aspects to the conference content this year. One involves young people – young tourism business professionals and students (at local colleges offering tourism courses) – through various sessions and the Social Entrepreneurial Challenge, and the other looks at how to build the business beyond the objective of achieving profits.”

Reporting by N. Nithiyananthan

Jet Airways hikes fees again

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JET Airways raised its rebooking and cancelling charges by Rs200 (US$4) to Rs950 from April 1, further contributing to worries that fares for India flights are spiralling upwards. The move comes less than a month after the airline increased its excess baggage fee from Rs150 per kilogram to Rs200 per kilogram, citing rising jet fuel cost.

In addition, the recent hike in service tax by the Indian government will translate into an almost five per cent tax impact on airfares, driving ticket cost up by at least Rs200. This also came into effect from April 1. In a separate development, Delhi International Airport is asking for a seven-fold increase in airport charges, which may result in airlines moving their hubs or being forced to pass on the extra cost to passengers. IATA has protested against this proposed increase.

Meanwhile, Jet Airways’ latest increase will impact a large number of passengers as together with its low-cost subsidiary JetKonnect, the airline accounts for more than 25 per cent of market share.

“Due to the huge reduction in Kingfisher Airlines’ flights, fares have gone up by 20 per cent or more. Now these additional charges will make flights even more expensive, leading to less load on most sectors. The ailing airlines are likely to suffer the impact of higher costs on their passenger numbers shortly,” said Sanjay Maniar, director, Travelaid.

Lobsang Phuntsok, managing director, Tawang Tour & Travel, added: “Airlines should try to reduce operating costs to stay competitive, not increase fares and charges.”

AirAsia extends Fly-Thru services to more destinations

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AIRASIA is offering more Fly-Thru services, the latest being on Indonesia-China and India-Singapore routes via Malaysia.

Routes covered are from the Indonesian destinations of Jakarta, Bandung, Medan and Surabaya to Chinese cities such as Guangzhou, Shenzhen, Macau and Hong Kong, via Kuala Lumpur’s low-cost carrier terminal. The service also extends to the Chennai-Singapore route.

The enhanced service allows flight bookings to be reflected in one itinerary and booking number, with no transit visa requirements in the Malaysian capital, while also offering baggage check-through to the final destination.

AirAsia has also promised to extend the service to more destinations and connecting points in the coming months.

New agreement paves way for more Chinese tourists to Indonesia

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THE INDONESIAN government is setting its sights on achieving one million arrivals from China by 2014, as it looks to tap on a recent MoU signed between the two countries.

Speaking during a press conference in Jakarta last weekend, the Minister of Tourism and Creative Economy Mari Elka Pangestu said that the recent MoU between Indonesia and China on tourism cooperation – which was signed during President Susilo Bambang Yudhoyono’s visit to China last month – would help to boost arrivals.

The bilateral agreement involved joint marketing and giving support to Indonesia during promotional activities in China and vice versa, Pangestu explained.

Accessibility is a major factor determining the success of the co-operation, said Pangestu, who cited improving flight connections to more Chinese destinations beyond the major cities as crucial to grow traffic.

“Garuda Indonesia has increased its flights from three times per week to daily (between Jakarta and Shanghai), but there are many other cities in China, like Guangzhou and Xiamen, which are potential markets. We also need flights connecting those cities.”

“Garuda, Lion Air, Batavia Air and other Indonesian carries are doing feasibility studies to open services to China.”

Last year, visitor arrivals from China to Indonesia totalled 504,749, a 19 per cent increase over 2010. In January and February this year, the number of tourists from China reached 136,856, a rise of 54.1 per cent over 88,784 arrivals for the same period in 2010.

Jetstar Japan cleared for take-off

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JETSTAR Japan is gearing up to launch its first flight on July 3, after it was given the green light by Japanese authorities.

The LCC received its air operator’s certificate from Japan’s Ministry of Land, Infrastructure and Transport last week, signalling that its operations, from ground services to engineering to safety requirements, have fulfilled Japanese regulations.

The airline is on track to start flying five months ahead of schedule, according to Miyuki Suzuki, chief executive, Jetstar Japan. It also bests competitor AirAsia by a month, which is expected to commence operations in August.

Based in Tokyo (Narita), Jetstar Japan will fly to Osaka, Sapporo, Fukuoko and Okinawa on a fleet of three new Airbus A320 planes. Tickets will go on sale soon, while proving flights are expected to be held during May. Jetstar Japan is a joint venture between Qantas, Japan Airlines, Mitsubishi Corp and Century Tokyo Leasing Corp.

In anticipation of low-cost aviation growth in Japan, Narita International Airport Corp has announced plans to build a budget terminal targeting LCCs by March 2015.

Giants join in

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It isn’t just creative, independent hotel developers who are conjuring up pretty properties. Some mega hotel companies have also joined in, courting business travellers and event planners with their own design-led or boutique brands. Karen Yue speaks to Lindsey Ueberroth, president of Preferred Hotel Group, and George Fleck, director, global brand management of W Hotels & Le Meridien

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Andara Resort and Villas, a member of Preferred Boutique

Preferred Boutique

Was Preferred Boutique positioned right from the start to appeal to meetings and incentive groups and business travellers?
Preferred Boutique was launched in 2006 as a collection of intimate hotels that celebrates distinctive travel experiences, offers exceptional services and is unique by design. The brand was always envisaged to appeal to board meetings, high-end incentives, exclusive use options and discerning business travellers.

Has corporate demand changed since the brand was launched?
Initially, Preferred Boutique was more leisure driven. With the support of Preferred Hotel Group’s extensive group sales infrastructure, strong corporate/group relationships and preferred status with the major four TMCs, there has been noticeable growth in the small groups of meetings and incentives markets. There has also been a marked increase in business travel among the upper management sector who still has the luxury of choice and budget, and who prefers a more personalised, unique travel experience.

Describe the typical corporate guest at a Preferred Boutique hotel.
The profile is generally CEOs, senior management, VIPs and dignitaries. Preferred Boutique is perfect for high-achiever FIT and premium groups/incentives or clients seeking exclusive use of property. The clientele tends to seek a more interesting product, as they have travelled extensively, and appreciate personalised services that are distinctly different in boutique properties. Quite often, they are high-profile and are seeking out hidden treasures away from the spotlight.

What is Preferred Boutique’s strength over MICE hotels?
Preferred Boutique properties generally have limited function space (compared to larger, MICE-focused hotels) but they offer unique, authentic experiences often reflective of their locale, which when coupled together, is part of the attraction for a particular clientele. Smaller, intimate hotels have the ability to personalise a group’s experience in a way that is often unobtainable at larger properties.

What is Preferred Boutique doing to draw the attention of corporate groups?
Preferred Boutique members have the luxury of marketing extraordinary experiences on an intimate scale, while drawing on the strength of Preferred Hotel Group’s global infrastructure. Preferred’s group sales teams participate in over 150 tradeshows and events each year, with dedicated account managers for top corporate and group accounts, preferred TMC relationships and marketing campaigns focused on this niche.

The company’s new PHG Meetings website (www.phgmeetings.com), an online RFP management system that connects corporate sales managers, global sales offices, property-level sales professionals and meeting planners, has become very popular for PCOs, event houses and our industry partners.

How many properties are there now under Preferred Boutique and how many are suitable for events?
There are 150 luxury boutique resorts. Preferred Boutique (properties) can personalise each (corporate) group’s stay and capture guests’ imagination with unique offerings. For instance, guests can participate in teambuilding exercises while in the jungles of Borneo at Bunga Raya Resort, experience a gala dinner in the Crystal Ballroom of The Alchymist Grand Hotel in Prague, (host) an exotic event at Devi Garh, an 18th century Fort Palace in India, or enjoy the exclusive use of Dunton Hot Springs Resort, a restored 19th century romantic ghost town nestled in the Colorado Rockies.

Companies can host board meetings at The Lyall Hotel and Spa in fashionable South Yarra and take sunset camel rides in Broome from Pinctada Cable Beach Resort and Spa.

An executive retreat can enjoy the peace and tranquillity of Andara Resort and Villas in Phuket Thailand, complete with cooking classes and a private yacht.

The options are as diverse as the members’ locations.

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W Barcelona

W Hotels

When was W launched and what was Starwood’s objective in creating the brand’s portfolio?
W Hotels was launched in 1998 and immediately became the category buster in modern hospitality. Its original inspiration taken from the energy and vibrancy of New York City, the dynamic 24/7 and the “always on the go” mentality, were key drivers that have continued to transform and position the W brand, more than a decade later, into a global design powerhouse. For Starwood, W has been positioned as an innovation lab, driving cutting-edge design and unique lifestyle programming that often influence its other eight brands.

Did Starwood envision W to appeal to meetings and incentive groups and business travellers right from the start?
W Hotels, from its inception, has been an attractive proposal for both the business and leisure traveller, given the original portfolio’s locations and size of the hotels, including meeting spaces.

The brand was launched when the idea of the “bleisure trip” – blending business and leisure – became popular. W also launched Sensory Set Up, an industry game-changer that brought W’s Living Room concept into its meeting spaces, including scented candles and table games, colourful lighting and unique F&B offerings, all making meetings innovative and memorable.

Has corporate demand for W hotels evolved since the brand was launched?
The exponential growth of the brand and openings of W Hotels in multiple areas of the same city, such as W Los Angeles and W Hollywood (in California), two in Chicago, three in Atlanta, and four in our birthplace New York City, is a direct response to the increasing demand for the brand, as well as strong loyalty and following from the corporate travel segment.

The corporate traveller today is a global jetsetter. The more they travel for business, the more they travel for leisure. The traveller is always looking for what’s new, what’s next, and we aim to evolve the W brand experience continuously so we can stay ahead yearround.

Describe the typical corporate guest at a W hotel.
Top industries that use W hotels are finance and banking, consulting, technology, pharmaceutical and entertainment.

Is W actively marketing its properties to the meetings and incentives segment and business travellers?
W Hotels positions itself and communicates to this audience through both traditional and online media campaigns, Starwood global channels, Starwood Preferred Planner loyalty programmes and social media initiatives. Through the Starwood Strategic Sales organisation, W Hotels is showcased to corporate buyers at key industry events.

How do you see the future of W Hotels among the meetings and incentives segment and business travellers?
W Hotels is on target to (exceed) 60 hotels by 2015. There is significant demand for W Hotels among meetings and incentive groups, as well as the corporate traveller. This applies to Starwood’s upper upscale, design-led and luxury hotels too, especially in growth markets such as China, India, South-east Asia and Latin America.

In key markets where W has had a presence for more than a decade, we are also strategically transforming the portfolio through major renovations in order to continue to attract this audience.

Of all the W properties in operation today, how many are suitable for events?
W Hotels in locations such as Los Angeles and New York City have been popular among planners in the entertainment and fashion industries for motion picture premieres, media events, press junkets, awards after parties, trunk shows and gifting suites.

In the early 2000s, the majority of W Hotels ranged in size on average 200-300 rooms with 465m2-1,394m2 of meeting spaces, but given their success in all segments, a clear demand for larger hotels had resulted in the opening of large-scale meetings destinations with hotels offering over 450 rooms and 2,323m2 of meeting space, large scale Great Rooms (W’s version of the traditional ballroom), state-of-the-art Strategy Rooms (board rooms), and signature event spaces both indoor and outdoor.

Great examples are W Atlanta-Midtown, W Barcelona and W Taipei.

Also, having hotels in major convention cities such as San Francisco, New York, Chicago and Hong Kong has positioned W as a viable option for convention attendees.

As well, W Retreats are designed to accommodate incentive groups for either full island buyouts in the Maldives or Koh Samui to ultra exclusive insider experiences in Bali and Vieques