MALAYSIA Airlines (MAS) unveiled yesterday a plan to revamp its loss-making operations, which involve a multi-prong strategy to streamline the flag carrier’s network, reduce costs and win back customers.

“We are in a very, very deep crisis,” said MAS group CEO Ahmad Jauhari Yahya. “Malaysia Airlines needs to make hard and unpopular decisions simply to survive.”

As part of its overhaul, MAS will cut loss-making routes – mainly longhaul– and redeploy aircraft to profitable regional and domestic alternatives.

Buenos Aires, Johannesburg, Cape Town and Dubai will be axed in early 2012 (TTG Asia e-Daily, November 11), while Rome and Frankfurt are under consideration. On the other hand, frequencies to Manila, Jakarta and Tokyo will be boosted.

A new premium full service carrier will also be introduced by the second half of 2012, offering flights to ASEAN destinations and key cities in South Asia and greater China (TTG Asia e-Daily, October 21). In the long term, the new airline will run all the domestic and regional services currently operated by MAS.

“We intend to create a separate management structure to focus on the unique customer needs of regional premium travellers,” said Ahmad Jauhari.

Meanwhile, cooperation with AirAsia and AirAsia X for greater efficiencies under the Comprehensive Collaboration Framework is expected to save MAS up to RM100 million (US$31.9 million) a year.

Developments expected to help win back customers and reduce fuel costs include the delivery of 23 new aircraft next year, including five Airbus A380s starting from July 1, and MAS attaining full membership in the oneworld alliance by September 2012 (TTG Asia e-Daily, June 6).

“MAS can reach out to destinations not covered, via networks of other airlines. Also, this alliance has a gap in South-east Asia, and MAS can play a role to fill it,” said Ahmad Jauhari.

With these measures, MAS is hoping to cut losses to RM165 million in 2012, and turn a profit by 2013. The airline’s nine-month cumulative loss for the first three quarters of 2011 was RM1.25 billion.

By N. Nithiyananthan

TIGER Airways has aborted plans to launch a new regional budget carrier together with Thai Airways International (THAI), due to its failure to obtain the necessary approval from Thai authorities.

“As a result, Thai, Tiger Airways and Ryanthai (a proposed partner with links to Irish budget airline RyanAir) have decided not to proceed with the incorporation of Thai Tiger,” the carrier said in a statement.

Tiger Airways and THAI first revealed their intentions to set up the new airline in August last year (TTG Asia e-Daily, March 2).

Meanwhile, VietJet Air, the proposed partner of AirAsia in its failed attempt to tap the Vietnamese market, has launched independent operations, and will offer four-daily Ho Chi Minh City-Hanoi services on a 180-seat Airbus A320 aircraft.

The airline was due to operate as VietJet AirAsia, but AirAsia allowed its interest in VietJet to lapse after regulatory approval was denied for its proposed joint venture (TTG Asia e-Daily, October 13).

VietJet Air is planning to launch Ho Chi Minh City-Danang flights in early 2012, with a Hanoi-Danang service and flights to South-east Asian destinations expected to follow by middle of next year.

STARWOOD Asia Pacific Hotels & Resorts will kick off a recovery initiative for Thailand by January next year to recoup business lost during the recent flood crisis.

Details of the recovery initiative were not available at press time, but Alison Taylor, Starwood’s vice president, sales, Asia-Pacific, said its structure would be similar to the group’s successful MICE recovery campaign in Japan, which has so far garnered more than US$6 million in meetings-related sales for its 15 properties there (TTG Asia e-Daily, November 22).

Fam trips for MICE buyers and MICE-specific promotions, including discounts of up to 30 per cent off the master account, were offered as part of the Japan recovery efforts. About 90 per cent of the event bookings reeled in were from Asia-Pacific, while enquiries from farther afield have started to stream in.

According to Taylor, over a hundred group bookings across the 16 Starwood properties in Thailand were cancelled or postponed due to the floods.

“As in other hotels across the industry, occupancy at Starwood properties, especially in Bangkok, fell following the floods,” she said. “The impact is much greater for Starwood properties in Bangkok compared to properties outside of the city.”

“However, we are confident that business will resume, as has always been the case for Thailand,” she added.

Taylor said clients considering Thailand could continue to rely on Starwood because of the group’s ability to “seamlessly relocate them elsewhere should something happen, as we have many properties in other nearby destinations such as Malaysia, Singapore and Bali”.

BEST Western International has boosted its Japan portfolio with the opening of two hotels in Nagoya and Yonezawa, the first Best Western properties in each destination.

“Best Western is always keen to add to its growing network in Japan, especially when the hotels are in new destinations,” said Best Western International’s vice president international operations – Asia & the Middle East, Glenn de Souza.

“The opening of Best Western The Japonais Yonezawa, Best Western Hotel Nagoya and other properties in the near future, is evidence of our commitment to the country.”

The 99-room Best Western The Japonais Yonezawa in Yamagata Prefecture is located close to shops and transportation networks. The guestrooms feature high-speed Internet connections, while facilities include a breakfast outlet and ample parking space.

The 140-room Best Western Hotel Nagoya is located in the capital of Aichi Prefecture, the largest city in central Japan. The property offers easy access to the Nagoya Terminal station and the Sakae shopping, dining and entertainment centre. Facilities include a restaurant, a coffee shop, laundry service, safe deposit boxes, and meeting and banquet rooms.

A RECENT report by Travel Impact Newswire, entitled Travel & Tourism in the New World Order, has identified a significant disconnect between the development agendas being pursued by global leaders and the travel & tourism industry.

Based on written recordings of 196 speeches undertaken by global leaders during the 66th annual General Assembly session of the United Nations last September, the report identifies key statements on policies and perspectives that are potentially of game-changing value to policy- and decision-makers in the travel & tourism industry.

According to the report, the speeches revealed that the world is clearly split between rich and poor, haves and have-nots, powerful and powerless.

Although leaders yearn for positive change, many have misgivings about the trend of globalisation, and foster growing mistrust about the ability of modern day institutions and power structures, including the United Nations, to deliver results.

The leaders want to see a new world order that is just, balanced and fair, but fear what the report calls “the polarisation of globalisation” — a world in which they lose control of their ability to influence events, the report added.

WEGO.COM claims to have pioneered in Singapore a new ‘popular search’ tool that enables customers to view destinations and accommodation options ranked according to community preferences.

Now being adapted to other global sites, the ranking tool on Wego.com.sg presents options to viewers based on an algorithm that tracks in real-time the aggregate hotel and flight searches conducted by customers based in Singapore.

The options are presented to users according to what their peers consider to be most interesting, well-placed and well-priced.

According to the latest statement by Wego.com.sg, the metasearch portal’s Singaporean users are most frequently searching for travel options to Bangkok, followed by Hong Kong and Taipei.

INDONESIA’s Ministry of Tourism and Creative Economy has earmarked 50 destinations in the country to be developed for tourism until 2025.

The upgrading programme, which is part of the National Tourism Development Master Plan, details 88 strategic areas for development within the chosen destinations.

Indonesia’s Minister of Tourism and Creative Economy, Mari Elka Pangestu, said: “The master plan will give us a framework to enable us to take a systematic approach to destination development.”

Deputy Minister of Tourism and Creative Economy, Sapta Nirwandar, explained that the 50 destinations were picked based on natural and cultural potential, supporting infrastructure development plans, and the regional authorities’ commitment to providing funds.

“Some regional governments have said tourism is important to their destinations, but their budget allotment is very small. It is difficult for us to justify support,” he said.

Pangestu added: “We have set the destinations and strategic areas, but the regional stakeholders will determine the priorities. Once they have set priorities, they also need to make them sustainable programmes as continuity is key to success in tourism development.”

THE SINGAPORE Tourism Board (STB) launched today a series of tailored marketing campaigns to be rolled out in phases across its top-five source markets—Australia, China, India, Indonesia and Malaysia.

Starting with the New Discoveries campaign introduced today in Beijing, the customised marketing plans will be employed separately to address the needs of consumers in their respective markets.

The new consumer marketing approach marks a departure from the destination marketing strategy that STB previously implemented, and will hopefully result in more targeted and integrated marketing efforts comprising public relations, above and below-the-line advertising and digital marketing initiatives, the NTO said in a statement.

“This is a natural evolution of the YourSingapore destination brand that emphasises the personalisation of experiences. By understanding consumer needs, we can create and deliver better quality experiences to visitors,” said Sophia Ng, executive director, brand and marketing at STB.

From various conversations with consumers and trade, STB found that while most Chinese still travel on packaged tours, many are beginning to make their own travel arrangements and venture out as FITs. More significantly, Chinese are increasingly seeking a greater depth of travel experiences that include new and unique undertakings.

“The New Discoveries marketing campaign leverages this consumer insight in order to enhance our engagement with the Chinese audience,” Ng explained.

“On top of what consumers already know of Singapore’s well-known tourist attractions, we want to help Chinese deepen their understanding of our city, providing them with compelling reasons to visit Singapore again and again.”

As part of the campaign, STB has partnered with three major travel agencies in China – GZL International Travel Service, CYTS and Ctrip – to launch a series of New Discoveries packaged tours.

In addition to pre-arranged flight and accommodation options, these free & easy packages come with a fully customisable itinerary. Alternatively, semi free & easy packages, with guided tour services for the first part of the tour, will cater to first-time visitors to Singapore.

In the coming months, the campaign will also feature local Chinese advocates at various public relations and communication touch points, including social media platforms such as Sina Weibo, Douban and Renren, to reach out to the Chinese audience.

SEVERAL Singapore-based coach tour operators are attempting to cash in on the anticipated flood of Singaporean bargain hunters headed for the Johor Premium Outlets shopping mall, which opened on December 3.

The outlet shopping mall, situated about an hour’s drive from Singapore and three hours from Kuala Lumpur, is a joint venture between Malaysia’s Genting Group and New York-listed Simon Property Group.

Lotus Ooi, general manager, Konsortium Express & Tours told TTG Asia e-Daily that her company was now offering visits to the mall as part of their existing coach tours to Johor Bahru and Malacca.

When asked if visits to the mall warranted standalone tours, Ooi said: “We will gauge response levels first before making any decision.”

Five Stars Tours is another coach tour operator that has included visits to the mall in existing itineraries. According to Five Stars’ assistant marketing manager, Joyce Tan, the company has chalked up bookings right up till January next year.

A spokesperson for Transtar Travel also indicated that the firm was considering adding Johor Premium Outlets to their regular Desaru programme.

In order to capitalise on the projected robust traffic, Genting-owned Resorts World Sentosa is offering Stay and Shop packages through supporting travel experts. The packages include an overnight stay at Resorts World Sentosa and transfers to Johor Premium Outlets.

A Cruise and Shop package, in conjunction with Star Cruises, is also available.

LEGOLAND Malaysia has made public the pricing structure for tickets and annual passes to its theme park in Nusajaya, Johor, which is on schedule to open by end-2012.

Gate prices will be RM140 (US$47) for an adult and RM110 for a child, while an annual pass – offering unlimited access for a calendar year – will cost RM275 for an adult and RM210 for a child.

Special pricing will be offered to groups and schools, while Malaysian nationals will receive a RM30 rebate on gate prices.

An additional feature is the pre-opening annual pass available at the discounted price of RM195 for an adult and RM 110 for a child. Valid from the park’s opening date right through to 2013, the discounted passes will go on sale within the next dew days for a limited period.

Legoland Malaysia general manager Siegfried Boerst said the discounted passes were being launched as a result of the high volume of enquiries over the past few months.

He added: “Travel experts will be entitled to a commission for the day ticket. But if there is demand from them for the annual pass, we will look at it.”

With construction having passed the 40 per cent mark, Legoland Malaysia will begin to aggressively market the park globally in the new year.

“We will participate in international travel trade shows and conduct road shows in Singapore, East Asia, the Middle East and India,” said Boerst.

With a development cost of RM720 million, Legoland Malaysia will offer seven themed areas – The Beginning, Lego City, Miniland, Land of Adventure, Imagination, Lego Kingdom and Lego Technic (a roller coaster ride).

The park is targeting one million visitors in its first year of operations.

By N. Nithiyananthan