BARELY a month after Raja Kamar International (RKI) was formed, the Indonesian hotel distribution company has announced its full acquisition of MG Holiday, a leading hotel wholesaler in the country.

With this, RKI now operates two businesses – the B2C Raja Kamar Indonesia (rajakamar.com) and the B2B MG Holiday.

The acquisition sees two MG Holiday founders and shareholders, Eddy Yeow and Raymond, becoming RKI’s stakeholders, apart from Panorama Group, Dwidaya Tour and Travel and Smailing Tours.

RKI Group CEO, Scott Blume, said: “This transaction will bring considerable benefits to the RKI group, including direct access to MG Holiday’s extensive hotel inventory across Indonesia. This direct access to 1,800 hotels will allow the combined Raja Kamar group to work closely with hotels across existing wholesale channels and bring hotel partners access to new customers via Rajakamar.com.”

MG Holiday will continue to buy the bulk of rooms and Rajakamar.com, in turn, will buy inventory from them.

MG Holiday, set up in 2000, started with a team of three, including the two shareholders. It has now grown to six offices and more than 260 staff.

When asked about how it would maintain its business relations with travel retailers, Raymond said: “We will be treating Raja Kamar the same as the other retailers. We have created another website, kamarkami.com which is accessible to all our other retailers. In other words, we provide competing hotel booking engines inside the company to be fair to all our partners.”

In the meantime, Blume said that stakeholders have committed to invest US$20 million over the next five years to develop the RKI Group in terms of systems, human resources and offices, among others.

KINGFISHER Airlines has only been operating 269 out of its winter schedule of 418 flights last week, amid speculation that it might need a financial bailout by the government, since oil companies have insisted on cash payment for aviation fuel purchase.

In an official statement, however, Anshu Sarin, vice president, Kingfisher Airlines said: “Kingfisher Airlines has initiated reconfiguration of its aircraft. This exercise will require few of our aircraft to be out of service for the next few weeks. We have rationalised our network, resulting in a temporary discontinuation of approximately 50 flights out of our current operating schedule of approximately 350 departures per day.”

In the meantime, the Directorate General of Civil Aviation (DGCA) is considering allotting Kingfisher’s unused flight slots to other airlines.

Kingfisher Airlines has also discontinued its low-cost carrier Kingfisher Red a few weeks ago. The airline is faced with an Rs40 billion (US$800 million) debt.

For more, read TTG Asia, December 2 issue.

THE THAILAND Medical Tourism Federation (TMTF) is in the process of getting registered, two years after a group of industry players have started to jointly promote the country’s medical tourism facilities and services.

TMTF vice president Opas Netraumpai said that as a legal entity, the current Thailand Medical Tourism Cluster would have a better foundation in expanding the lucrative industry, as well as spreading income to small and medium enterprises (SMEs).

Thailand was estimated to record 1.4 million medical-related visitors and a 150 million baht (US$4.9 million) revenue for last year. The figures are part of the total tourism performance of 15.9 million arrivals and 592.8 billion baht revenue.

Opas said: “Instead of focusing on just major hospitals in key cities such as Bangkok, Phuket and Pattaya, the Thailand Medical Tourism Federation will be promoting medical clinics and alternative medical establishments in destinations nationwide.”

Russia, China, Japan, the Middle East and Africa have been identified as the federation’s key markets, and its initial strategy will go alongside participation during annual international travel trade shows by the Tourism Authority of Thailand (TAT).

The federation kicked off its trade show participation with TAT at the Russia’s Leisure Moscow in September. It plans to join the Office of SMEs Promotion’s roadshow in China by the end of this year.

By Sirima Eamtako

AIR France has planned a series of adjustments to its services in Asia for the summer 2012 season.

Starting March 26, 2012, its daily services between Paris-Charles de Gaulle Airport and Bangkok will be reduced to just three flights per week, which will initially be operated with a B747-400, but replaced with a B777-300ER from May 7.

A previously planned tag-on to Phnom Penh has also been cancelled. Air France will instead serve Phnom Penh as an extension of its Paris-Ho Chi Minh City service, when the latter is reduced from five times to thrice weekly at the start of the summer schedule. The equipment used on this route will be upsized from the B777-200ER to the B777-300ER.

Starting April 11, Air France will launch non-stop services between Paris and Wuhan, capital of Hubei province. This will be Air France’s fifth destination in greater China after Beijing, Shanghai, Guangzhou and Hong Kong.

This route will be operated thrice-weekly using a three-class 307-seater B777-200ER with 33, 24 and 250 seats in Affaires, Premium Voyageur and Voyageur classes respectively.

From May 28, Air France will add three weekly services to its current daily non-stop flights between Paris and Singapore. The additional services will be operated by a 251-seater B777-200ER with four classes (49 in Affaires, four in La Premiere, 24 in Premium Voyageur and 174 in Voyageur classes).

Air France has also strengthened its presence in China with a code-share arrangement with China Southern Airlines between Guangzhou and 12 Chinese cities. Two Australian cities – Sydney and Melbourne – have also been included in this agreement. Reciprocally, China Southern Airlines will also add its flight code on 14 European services operated by Air France.

HILTON Worldwide fully intends to have a lifestyle brand at the appropriate time, according to its president of global brands and commercial services, Paul Brown.

The chain will be able to launch such a brand from January 2013, having been legally stopped in its tracks by Starwood Hotels & Resorts in launching Denizen, after Starwood accused then Hilton Hotels Corp of stealing its documents to develop the ‘W’ type brand.

“We have concepts in the works, but I do think there is now less explosive growth in the segment, and the timing may not be right for us, as we are growing rapidly with the current brands that we have.

“There are still lots of opportunities for growth, especially in Asia-Pacific. Remember, until four years ago, we weren’t allowed to bring the Hilton brands in the US to Asia-Pacific,” Brown said during an interview in Singapore.

The core Hilton brand was still the fastest-growing in Asia-Pacific, followed by Doubletree by Hilton and Conrad in terms of number of properties, he said.

PALACE Hotel Cipanas, officially opened yesterday by Indonesia Minister of Tourism and Creative Economy Mari Elka Pangestu, is aiming to revive the Puncak area in West Java as a MICE and family weekend destination.

Managed by Discovery Hotels & Resorts, the 185-key property has a ballroom with capacity for up to 700 pax theatre-style, five 40-pax breakout rooms, and various F&B facilities including restaurants, a lobby bar, a wine and cigar lounge, and a food court.

Discovery Hotels & Resorts corporate sales and marketing manager, Johannes Hutauruk, said: “Our target is 70 per cent MICE business, especially from Jakarta and West Java area, while the rest is family and leisure market.”

Puncak area, about two hours’ drive from Jakarta, used to be a popular weekend and meeting resort destination, as well as a stopover area for travellers headed to Bandung.

The area lost its appeal when the Cipularang toll road connecting Jakarta and Bandung opened in 2005, providing faster and more convenient access than via Puncak.

Hutauruk said: “With the opening of the hotel with sizeable meeting and entertainment facilities (including karaoke and pool), and later the spa and fitness centre, we expect to attract the market back here.”

The hotel’s opening rate is 720,000 rupiah (US$80) including daily breakfast, or one million rupiah for full board.

SOUTH Korea’s Yeosu City, which will host the World Expo in 2012, has rolled out a number of solutions to address the expected strain on accommodation supply during the event.

The Expo, which will run from May to August 2012, is expected to draw up to 100,000 visitors daily—or eight million visitors and participants in total.

The accommodation crunch will be exacerbated by at least five major congresses, including the Fourth East Asian Seas Congress 2012, due to take place during the Expo period.

Speaking to TTG Asia e-Daily in Singapore earlier today, Yeosu City director of tourism Kang Seung-won said nine new local-brand hotels were currently being constructed in the city.

In addition, church- and temple-stays, motels, hostels and inns would be recommended as alternatives for Expo visitors, while hotels in nearby cities such as Busan would be promoted to spread overnight traffic.

Cruise ships might even be chartered and anchored to provide additional accommodation options.

Steve Yong, director, Singapore Office of the Korea Tourism Organization, said: “While we want to provide as much accommodation as possible, we have to maintain high standards. Motels and inns will be assessed very strictly to ensure they meet international standards, before we decide whether they are suitable for Expo visitors.”

Despite these efforts, Yong expects room supply to remain tight and rates to skyrocket.

“It is a free economy and there’s nothing the local government can do to prevent hotels from raising their rates too high,” he said. “I advise travel consultants to encourage their customers to book rooms in advance, to avoid high prices closer to the date of the event.”

Meanwhile, Asiana Airlines, the official airline for Expo 2012, intends to offer special fares for group and FIT travellers during the event.

The carrier is also considering boosting its two- to three-daily services between Gimpo and Yeosu Airports, said H S Kim, regional general manager, Asiana Airlines regional sales office, Singapore.

WEGO.com has introduced a new part-payment process for flash sales in travel purchases, a departure from the standard on other generic discount sites requiring full settlement upfront.

Wego FAST:DEALS allows subscribers to secure travel offers for a small fixed deposit or percentage of the total amount.

Buyers are then able to settle the balance directly with the hotel when they go and stay—which can be any time up to a year after the deal was closed.

Dean Wicks, general manager, Australia and head of marketing at Wego.com, explained: “The decision to buy is usually pretty spontaneous. If it’s not planned, it needs to be easy financially.

“Now, a very small deposit secures the trip and users only pay the balance when they choose to go.”

FINNAIR is planning to operate a series of charter flights between Helsinki and Langkawi during the upcoming Northern winter season.

The carrier – which does not run scheduled services to Malaysia –will operate a weekly Helsinki-Langkawi charter service starting December 16, using an Airbus A330 aircraft configured in a single-class 330-seat layout.

A total of 13 flights will take place, potentially bringing up to 4,290 visitors to Langkawi.

Finnair’s sales director – South-east Asia, Petteri Kostermaa, said: “Finnair regularly leases aircraft from other carriers due to high seasonal demand for charter flights from Nordic countries to Asian and other leisure destinations. Our own fleet is in full use in our scheduled route network.”

He added: “We expect most (Langkawi-bound) passengers to come from Finland, but there will be some from other Scandinavian countries and Baltic States as well.”

Finnair operates regular leisure flight services to various Asian destinations including Colombo, Goa, Ho Chi Minh City, Krabi and Phuket.

THAILAND’s main gateway, Suvarnabhumi Airport, has seen a 23 per cent reduction in the number of passenger arrivals, due to the floods.

According to Somchai Sawasdeepon, senior executive vice president, Airports of Thailand and acting general manager of Suvarnabhumi Airport, arrival numbers at Suvarnabhumi have shrunk from 130,000 to 100,000 a day, while flight numbers have dropped from 900 to about 800 a day.

Somchai believes the reduction in passenger arrivals were caused by growing concern about the floods in the country, exacerbated by fresh reports that the floodwaters were starting to seep into the eastern part of the capital where the airport is located.

In a move to boost travellers’ confidence, Somchai issued a statement yesterday to foreign embassies in Thailand.

“We reiterate that Suvarnabhumi Airport remains unaffected from the current flood crisis in the country, and that we are equipped with a flooding prevention system and are working closely with relevant authorities and local communities to handle the situation,” he said.