LOWER than expected load factors had been the rationale to cut Firefly’s low cost jet operations, consistent with MAS Group’s plans to consolidate operations after its cooperative agreement with AirAsia earlier this year.

According to a travel trade source, additional plans for the group’s Project Sapphire initiative would see the launch in third quarter next year of a new regional premium airline, using a fleet of B737-800s and B737-400s with seats configured in two classes. To be managed by Firefly, the name for the new carrier has yet to be decided.

Firefly’s turboprop operations, also due to be reconfigured into two classes, will be utilised for the shorthaul premium segment, while MAS will serve the medium and longhaul premium sectors.

AirAsia and AirAsiaX will target budget shorthaul and budget longhaul routes, respectively.

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

THE INAUGURAL Cruise Shipping Asia, to be held in Singapore from November 16 to 18 at Sands Expo and Convention Centre, has lined up several captains of the cruise industry to speak at the tradeshow’s conference.

Among them: Rick Meadows, EVP of marketing, sales and guest programmes, Holland America Line and president, Seabourn; Michael Bayley, EVP International, Royal Caribbean Cruises; Roberto Giorgi, president, V.Ships; Helen Huang, MD, MSC Cruises China; Gianni Onorato, president, Costa Crociere and Sarina Bratton, founder & MD, Orion Expeditions.

A travel agent education programme is also available.

The tradeshow is seeing a healthy exhibitors’ list, according to Michael Duck, EVP of UBM Asia, organiser of CSA.

The latest list on the CSA website shows a broad representation, including cruise specialists, attractions, tourism boards, cruise lines, ports, hotels, cruise associations, shipyards and shipping companies, aside from a wide Asia-Pacific showing.

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

EGYPT is looking East to boost arrivals as numbers from the West continue to slump, owing to economic ills plaguing Europe and Egypt’s political turmoil.

Traffic into Egypt nosedived 40 per cent in the first six months, Egyptian Tourism Office data shows. Russia, its biggest source, has slumped 30 per cent since the January 25 revolution.

Tourism director Adel El Masry said Asia, which comprises around a fifth of arrivals, offered better prospects for Egypt for the foreseeable future as it had outperformed traditional source markets in growth. “In 2010, arrivals from Asia rose 36.6 per cent over 2009, compared to the overall average of around 20 per cent. Asia is our future.”

His strategy to grow Asia is to offer niche products and work closely with major tour operators across Singapore, India, Malaysia and Thailand.

“For Singapore we will focus on golf and diving; for India and Thailand, honeymoons; and Malaysia, cultural and religious attractions,” he said.

A new campaign will be launched in 1Q2012.

Masry said: “Tourists are avoiding Cairo, and Nile cruise tours, a popular option with European tourists, have really suffered. Resort towns along the Red Sea and Sharm el Sheikh have performed better in recent months. We hope arrival figures will improve significantly once the Egyptian presidential elections are held in March or April.”

George Fawzi, president and CEO of Excel Travel in Cairo, said volume had increased 60 per cent so far this year but was still below previous levels. “Nevertheless, the situation is slowly but surely getting better,” he said

Shravan Bhalla, CEO of High Flyer India, said Indian holidaymakers were gradually returning to Egypt. “However, the same cannot be said for MICE. Some of my clients are switching from Egypt to Turkey,” he said.

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

JACTRAVEL, traditionally a tour operator selling the UK since 1975, is now growing its reputation as an online supplier of hotel inventory, setting its sights on both properties and business from the region with its debut at ITB Asia 2011.

Explaining that the company had only started online wholesaling in recent years, CEO Mario Bodini said this source of revenue had now overtaken its traditional offline one, contributing 70 to 80 per cent of business. Three years ago, it decided to put together a dedicated contracting team for Asia.

Selling 7,000 “handpicked” hotels worldwide, only 15 per cent of these are in Asia, concentrated in hubs such as Singapore, Hong Kong and Bangkok. Much of its inventory is in the UK, Europe and Canada.

JacTravel’s key Asian customers are major wholesalers in South Korea, Japan and Thailand, with demand also coming from other countries such as Indonesia, Vietnam and India.

Properties can be booked via XML or by logging into a web-based interface.

Bodini said: “Right now we’re selling more Asia to Asia than Asia to Europeans. Our inbound business is steady but not growing at the same level as our online wholesaling. The UK is a mature market, whereas online, we have the whole world.”

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

HOTELIERS in Singapore, Malaysia and Indonesia are angling for moderate room rate increases, reflecting current concerns about the economy but also a hint of optimism that occupancies can be maintained.

Despite Singapore hotels enjoying healthy rate hikes over the past few years, The Traveller DMC Singapore executive director Yvonne Low said hotels were asking for five to six per cent hikes in rates. She has resigned herself to the rise.

“It’s quite owner-driven these days, so although there’s uncertainty, rates will still go up,” she said.

Hoteliers in Indonesia and Malaysia, who are also pitching for an increase of five to 10 per cent, argue that the quantum only covers “inflation and electricity hikes”, as Ayodya Resort Bali assistant sales manager Budi Susanta pointed out.

Agreeing, Flamingo Hotel by the Lake Kuala Lumpur director of sales Fiona Achung said: “Rates have to increase every year as costs are also increasing.” The hotel, and its sister in Penang, are planning to increase prices by five and 10 per cent. The four-star properties’ average rate today is between US$80 and US$90.

But buyers such as The Netherlands’ Smaragd Reizen’s director, Amy Foss, who sends clients to South-east Asia, said: “It is going to be challenging for us. The increase in prices on top of the weakened Euro effectively doubles our selling price.”

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

THE TRAVEL trade in Sabah and Sarawak believes that Firefly’s impending discontinuation of flights from Kuala Lumpur to Kuching and Sibu in Sarawak, and to Kota Kinabalu and Sandakan in Sabah will create a monopoly, push up prices and curtail short and longhaul traffic into the region.

Coming on the heels of the decision to shut Firefly’s Johor hub offering direct flights to Kuching and Kota Kinabalu, Kevin Nila, regional marketing manager, Malaysia & Singapore, Sarawak Tourism Board, said the twin exits would only benefit AirAsia, Firefly’s only other budget competitor on the routes. “It’s a monopoly now,” he said. “There’s no more freedom to choose your own airline. It’s like having a single telco with full control over the entire region.”

Noredah Othman, senior marketing manager, Sabah Tourism Board, agreed with her Sarawak counterpart, saying although Malaysia Airlines (MAS) offered a deluge of flights into both state capitals, they were premium category, and Firefly’s exit had removed the only barrier discouraging AirAsia from raising its fares.

She said: “Firefly provided good competition for AirAsia. Travellers are very price-conscious nowadays, and there are never enough flights into Kota Kinabalu. Previously we had 80 MAS, 63 AirAsia and 42 Firefly flights from Kuala Lumpur per week. Some 8,000 weekly seats will no longer be available once Firefly pulls out.

“My main concern is Sandakan, which receives a lot of longhaul from Australia through Kuala Lumpur.”

Charlie Chan, director-operations & sales, Kota Kinabalu-based Borneo Passages, was another who predicted that AirAsia fares to East Malaysia would see a subsequent increase. “AirAsia rates will go up for sure. For MAS and AirAsia, their rate is always ‘right’; their attitude is that ‘it’s my rate, not your rate’,” he said.

Noraini Ahmad, sales manager, Peninsular Malaysia, Borneo Convention Centre Kuching, said rates on AirAsia’s flights from Kuala Lumpur to Kuching were already increasing at an alarming rate. “During peak season, they are even more expensive than MAS tickets,” she said.

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

CHILE-based LAN Airlines wants to extend its reach into South-east Asia through partnerships with travel agents and ticketing agents in Indonesia, Malaysia, the Philippines and Thailand, who will be supported by its Singapore-based GSA.

Juan Carlos Selman, senior sales manager Asia of LAN, said: “These partnerships mean that agents in those markets can access LAN fares, products and sales and marketing support.”

LAN has debuted a LAN Pack programme in Singapore, which consolidates travellers from various travel agencies and arranges for a combined departure. As of yesterday, 15 Singapore travel agents have expressed their interest in the programme.

“LAN Pack is specially developed for markets that find it hard to get enough (leisure) volume to South America,” said Selman, who added that the airline would help travel agents on the programme negotiate better rates with suppliers and provide marketing tools.


Selman expects the programme to garner enough numbers for a group departure in April.

– Read more in ITB Asia 2011 Official Daily – Day 2 issue

JAPAN inbound is on the mend, with smaller declines being recorded from major sources.


Japan National Tourism Organisation figures show foreign arrivals in June and July were 36 per cent lower than in the same period in 2010. This compares with whopping drops of 62 per cent and 50 per cent in April and May respectively.


Japan Tourism Agency commissioner, Hiroshi Mizohata, said: “We are now seeing the start of a full recovery.”


China, its second largest source, shrank 40.1 per cent in August, compared to 49.5 per cent in April. China proved to be Japan’s most resilient source, dipping the least when Japan was first hit by the earthquake and tsunami.

Yuki Ye, deputy manager of business department, Century Holiday International Travel Group Shenzhen, said bookings for her company to Japan were down 20 per cent overall to-date.


“Our Chinese clients are not as perturbed by the radiation threat as they were when the Fukushima nuclear plant went into meltdown in March. Many are looking at Japan again, and even Tokyo, which is relatively close to the Fukushima radiation hotspot,” she said. Ye expects traffic from China to return to previous levels by end-2012.


Hong Kong, Japan’s fourth largest source, shrank 25.5 per cent in August – versus a massive 87.6 per cent in April.

Benny Liu, assistant manager, global business, JTB China, said: “The market from Hong Kong to Japan is recovering and should continue to do so into 2012 but the bulk of demand is being driven by younger customers; older people are still wary and nervous about travelling to Japan despite the more positive picture painted by the media.”


Singapore, Japan’s sixth largest source, saw a dip of 24 per cent in August, compared to 82.9 per cent in April.

Sabura Bagum, director (business development), NSK@Work, said: “There have been no enquiries for MICE to Japan by Singapore-based clients since the tragedy. But we have been receiving some bookings for FIT and leisure travel.”

– Read more in ITB Asia 2011 Official Daily – Day 2 issue