IATA will introduce a new weekly payment system in India from June 1, 2012, a move that is likely to impact Indian travel consultants the most.

The association recently informed travel consultants of the new remittance frequency in the India billing and settlement plan (BSP), which will see ticket sale proceeds remitted to airlines every week, instead of the current fortnightly arrangement.

Indian travel consultants who are already in dire straits due to reduced commissions and direct bookings have expressed their unhappiness over the move. The weekly payment system is expected to hit mainly the small- and medium-size consultants – comprising more than 80 per cent of the business segment in India – who often give long credit periods to their clients.

On the other hand, the increased frequency is expected to improve cash flow to struggling Indian carriers. Air India, Jet Airways and Kingfisher were reportedly instrumental in securing the approval from IATA to change the billing cycle.

According to sources, the weekly payment system was first mooted by the national carrier Air India back in 2009. IATA approved a resolution to change the billing cycle in India at its conference in October last year.

Reporting by Divya Kaul

NARITA International Airport Corp has announced plans to build a new terminal for budget carriers by March 2015, in anticipation of the fast-growing LCC sector in Japan.

This will be Japan’s second LCC-dedicated air terminal after Osaka’s Kansai International Airport, which is currently under construction.

The new budget terminal will be converted from an existing building, and will feature simple interiors and infrastructure, such as boarding stairs instead of aerobridges, to keep costs down. When completed, it is expected to handle some 7.5 million passengers and up to 50,000 flights per year.

Meanwhile, Narita airport has also begun building additional facilities such as bus gates and check-in counters in preparation of the new LCCs debuting this year.

Jetstar Japan will commence flights from July 3, while AirAsia Japan is expected to launch its first flights in August.

ROBINSONS Land Corp (RLC), part of the Gokongwei Group that owns local budget carrier Cebu Pacific, is expanding its no-frills Go Hotels brand with plans for 30 properties across the Philippines within the next four years.

Three Go Hotels properties will open this year in emerging tourist destinations in the Visayas, in addition to the recently opened 108-room Puerto Princesa Hotel in Palawan and the 223-room flagship hotel in Manila’s Epifanio de los Santos Avenue (EDSA).

Roseann Coscolluela-Villegas, RLC’s spokesperson, said Go Hotels’ expansion is part of the group’s diversification strategy amid the country’s rosy tourism prospects.

These hotels are targeted at balikbayan (overseas Filipinos) returning to the Philippines and stop-over travellers hopping from one province to another, said Coscolluela-Villegas.

Similar to Cebu Pacific, Go Hotels use a variable pricing scheme that allows travellers to take advantage of lower rates through early bookings online. Rooms are typically no-frills with attached bathrooms, while Wi-Fi enabled common areas allow guests to enjoy their meals or use their laptops.

Apart from Go Hotels, RLC also owns Crowne Plaza Galleria and Holiday Inn Galleria in Manila, as well as two Summit hotels outside the capital.

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 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.