HOTELS in Bangkok and Phuket recorded an increase in room occupancy as visitor arrivals surged in the second quarter, according to commercial real estate firm CB Richard Ellis. However, room rates registered a dip as growing supply continued to overshadow demand.

The firm’s Market View of Bangkok Luxury Hotel and Phuket Hotel report revealed that the average occupancy of Bangkok hotels in the second quarter was back to 2009 levels (around 60 per cent).

However, the report added that downward pressure on rates due to increasing competition from new hotels remains a problem, with certain upscale hotels in Bangkok experiencing a four per cent year-on-year decline in ADR to 5,488 baht (US$177).

Meanwhile, the 36 per cent year-on-year growth in arrival numbers at Phuket International Airport pushed up the average occupancy of some the island’s upscale hotels by 52 per cent year-on-year, 47 per cent higher than the same period in 2009.

In contrast, the ADR of upscale hotels in Phuket decreased by three per cent year-on-year as demand for luxury hotels remained weak. While exact ADR figures were not revealed, the report stated that luxury hotels fetched around US$300 per night, first-class hotels charged around US$120-300, and the rate at mid-range hotels was about US$60-120.

The report projected that with Bangkok gaining 9,700 extra rooms and Phuket supply set to jump by 48 per cent between now and 2014, the oversupply of rooms in Bangkok and Phuket would continue to apply pressure on rates.

*The report defined upscale hotels as comprising accommodation in the luxury, first-class and mid-range categories.

MÖVENPICK Hotel & Spa Bangalore officially opened earlier this month, becoming the first property in India for the international hotel chain.

The five-star hotel, located near the main business districts and a 30-minute drive from the airport, offers complimentary Wi-Fi Internet access in all 182 rooms and public areas.

The hotel features four F&B options, including an all-day dining outlet, a bar, an Italian restaurant, and a rooftop restaurant and lounge.

MICE facilities include a grand ballroom with separate entrance and seven meeting rooms, while leisure facilities include an infinity-edge swimming pool, a Sohum Spa and a fitness centre.

Guests staying in executive club rooms or suites can avail of a 24-hour rate commencing the moment they arrive, which will suit international travellers taking early morning or late evening flights.

Mövenpick Hotels & Resorts is planning to open a second property in the country, the 110-room Mövenpick Dharamshala Resort & Spa, which will open in the Northern Indian Kangra Valley in 2013.

THE WORLD Travel & Tourism Council condemned last week the US government’s proposal to raise US$25 billion over 10 years through changes to the country’s Aviation Passenger Security (APS) fee.

APS is currently levied on airline passengers in the US at between US$2.50 and US$5 per trip. Under the proposals, the current range will be replaced with a statutory minimum fee of US$5, with annual incremental increases of 50 cents from 2013 to 2017, to reach US$7.50 in 2017.

Of the US$25 billion additional revenue raised over 10 years, at least US$15 billion is to be used for general taxation purposes, rather than for passenger security.

David Scowsill, WTTC president & CEO, said: “Travel & tourism currently contributes more than US$1.3 trillion or nine per cent of total US GDP, generates nine per cent of its total exports and supports 15 million jobs. Taxes on the sector tend to do more harm than good economically – as higher charges discourage high-spending visitors.”

He added: “We fully support the US administration’s efforts to reduce its debt burden, but do not believe it is good economics to raid US$25 billion from an industry that is a driver of growth and recovery.”

GALILEO Indonesia released its hotel booking product Travelport Rooms and More (TRAM) in Indonesia yesterday, and outlined that it was targeting US$250,000 in revenue within TRAM’s first year of operations there.

Galileo Indonesia general manager, Agus Santoso, said TRAM would make hotel reservations easier and more profitable for travel agents.

According to Galileo Indonesia director, Raymond Setokusumo, agents selling hotel rooms are forced to fork out high bank charges when clearing cheques for commission payments received from individual hotels or overseas partners.

TRAM claims to minimise these charges by pooling sales commissions from aggregators and OTAs via PayPal, to be processed in lump sums periodically.

Santoso said TRAM would also allow agents to see the most competitive prices offered by different aggregators on the same sector, as well as agency commissions.

Commenting on the new product, Gunawan Travel Services managing director Gunawan said: “TRAM may work for big agents, but is still difficult for those small ones, who consider even US$25 bank charges still valuable.”

From left: TTG Asia Media managing director Darren Ng, Media Transasia Thailand regional sales director Yaowadee Leelakittiwong, Hertz International vice president Asia & Japan Wong Soon Hwa

YAOWADEE Leelakittiwong, regional sales director, Media Transasia Thailand, was the lucky winner of the Hertz car up for grabs at PATA Travel Mart (PTM) 2011 (TTG Asia e-Daily, September 1).

Open to all registered PTM delegates, the lucky draw was organized by Hertz and co-sponsored by TTG Asia Media.

TRAVELPORT’S Orbitz Worldwide has won the war against American Airlines (AA) over the carrier’s plans to force agents into using its Direct Connect booking tool rather than their global distribution systems.

Orbitz was forced to pull data on AA’s flights last December, but managed to secure an injunction to reinstate its right to display and ticket AA flights in June (TTG Asia e-Daily, June 2).

The Illinois Appellate Court affirmed the injunction yesterday, which preserved Orbitz’s ability to sell AA tickets. The court also recognised Travelport’s stand that Orbitz’s existing contract with AA allows all Travelport agents to fully utilise AA’s content.

“We are very pleased with the appellate court’s recognition of our contractual rights,” said Travelport’s chief legal and administrative officer, Eric Bock. “Those rights are critical to protecting our agencies’ ability to have and fully use AA’s content.”

Travelport said in statement that it would continue to pursue its claims for damages against AA before the trial court.

CAMBODIA’S Aboutasia Travel has appointed Hong Kong-based Gateway Group to increase outbound travel business volume from Hong Kong and Greater China.

Gateway Group will work to secure potential travel agents and MICE/PCOs looking for direct relationships with Aboutasia Travel.

Aboutasia Travel founder & CEO, Andy Booth, said: “We are excited to be working with Gateway Group to expand the reach of Aboutasia Travel into the Hong Kong, mainland China, Macau & Taiwan marketplaces.”

“We believe that we will see a substantial increase in leisure, special interest and MICE travel business from the region,” he added.

According to Gateway Group founder & managing director, Johnny Li, “the arrangement represents the first time Gateway Group has partnered with a DMC in Cambodia”.

CARLSON launched yesterday across Asia-Pacific its Radisson Blu hotels and resorts brand, which is targeted mainly at the business travel segment, as well as a US$2 million initiative to raise the brand’s regional profile.

Lasting till the end of the year, the Discover Blu brand campaign will encompass advertising in regional print and online business and trade media, as well as television commercials – a first for Radisson – on CNN and BBC, in an attempt to reach out to business travellers and a secondary audience from the MICE and leisure segments.

Radisson Blu’s differentiation lies in its Business Class room offering, which features upgraded amenities and services, such as three-hour express laundry, high-speed Internet access, and complimentary ‘grab & run’ breakfast.

There are currently 222 Radisson Blu hotels in operation worldwide, with another 104 in the pipeline. In Asia-Pacific, there are 26 Radisson Blu hotels in operation and 33 in the pipeline.

INTERCONTINENTAL Hotels Group (IHG) is expanding the presence of its Holiday Inn and Holiday Inn Express brands in Thailand with the launch earlier this month of Holiday Inn Resort Phuket Mai Khao Beach, and the scheduled opening of Holiday Inn Express Phuket Patong Beach Central in 2013.

The 246-room Holiday Inn Resort Phuket Mai Khao Beach, located on the northwest coast of Phuket, offers a beachfront infinity pool, a resort leisure centre, a fitness centre, and a Tea Tree Spa.

“This is our second Holiday Inn resort in Phuket, and our fourth in Thailand,” said Alan Watts, vice president for operations, South-east Asia at IHG. The three other Holiday Inn-branded properties in the country include Holiday Inn Resort Cha-am, Holiday Inn Resort Phi Phi Island, and Holiday Inn Resort Phuket.

Jennifer Yuen, brand director for Holiday Inn, Asia Australasia, said: “The Holiday Inn portfolio is expanding rapidly in the region with a pipeline of 28 hotels in the next three years.”

Meanwhile, the 280-room Holiday Inn Express Phuket Patong Beach Central, located in central Patong, will feature meeting rooms, a gym and swimming pool, as well as a self-service business centre.

The property is the fourth confirmed development for the economy brand in Thailand, with the first due to open in Bangkok by year-end, and another two currently being developed in Bangkok Sukhumvit and Pattaya.

In Asia-Pacific, the Holiday Inn Express portfolio is expanding rapidly from its current 30 hotels, and will open new hotels in Singapore, India and Indonesia over the next few years.

Jan Smits, IHG chief executive for Asia, the Middle East and Africa, said: “The (Holiday Inn Express) brand is growing strongly across the region, with a pipeline of 47 hotels in Asia-Pacific.”

AIR passenger capacity between Vietnam and the Philippines is set to grow exponentially following the signing of bilateral and pocket open skies agreements, the latter allowing unlimited traffic rights to foreign airlines into all Philippine airports except Manila.

According to the Philippines’ Civil Aeronautics Board (CAB), the deals afford Vietnamese airlines an additional 6,600-seat allocation per week on routes from Ho Chi Minh City and Hanoi to Manila and Cebu. A maximum of 2,650 seats per week will be added on flights from Ho Chi Minh to Manila and Cebu.

So far, no Vietnamese airlines have signalled their intention to take on the extra capacity, although they are expected to apply to boost daily flight frequencies before long.

Meanwhile, Elben Moro, chief of the Hearing Examiners’ division at the CAB, confirmed that Philippine-based carriers such as AirAsia Philippines, Airphil Express and SEAir had applied for seat allocations into Vietnam.

AirAsia is asking for 1,260 seats per day for both the Clark-Ho Chi Minh City and Clark-Hanoi routes, Airphil Express is asking for a daily 1,260-seat allocation between Cebu/Manila and Ho Chi Minh City, while SEAir is requesting twice-daily flights from Clark to Hanoi for 2,520 pax.

Rina Calma Nakayama, assistant managing director at Philippines’ Stars Travel, handles FITs and expat corporate clients heading to industrial sites in Hanoi, Ho Chi Minh and Haiphong. “Bangkok, Singapore and Hong Kong are saturated, so the next destination for our clients which does not need a visa is Vietnam,” she said. “A lot more curious Filipino travellers are headed there.”

Fe Abling Yu, general manager, Arfel Travel & Tours, said her agency gets good business from Ho Chi Minh, Hanoi and Siem Reap, flying to Bangkok and then Manila. “I have inquiries from my operator in (Saigon) about the opportunities of sending tourists to Manila,” she said.

Yu added: “When it comes to Vietnam, we have similar sights, inexpensive shopping attractions – so we have to package our tours carefully for Vietnam tourists.”