Outbound travel remains healthy among Malaysian travellers to destinations in Asia, especially with the upcoming one-week school break in April coinciding with the Hari Raya festivities and another week-long school break in May.
Suka Holiday’s director Adam Kamal, shared that beaches in Phuket, Krabi and Bali were popular holiday destinations. Taiwan is also gaining traction among Muslim travellers ever since the Malaysia Tourism Promotion Board introduced its Salam Taiwan initiative at the recent MATTA Fair In Kuala Lumpur to showcase the destination as being Muslim-friendly.
Malaysians are seeking city destinations, beaches, nature, health and wellness and diving spots during their travel
He said that Australia and Turkey were declining in popularity, citing the former’s stringent eVisa application process, and slow forward bookings for Turkey due to the recent earthquake, as the reasons.
Another outbound agent, Koh Yock Heng, group managing director, Apple Vacations and Conventions, shared that while China had reopened for leisure travel since March 15, Malaysians still face challenges in obtaining a visa, not to mention, airlines flying to China had also not finalised their GIT ticket fares – hence bookings to China remain low.
Koh shared that Japan, South Korea and Taiwan are popular destinations among Malaysian outbound travellers, with cruises out of Port Klang and Singapore also favourable among families and friends travelling together.
Cleland Robertson, director of partner services – Malaysia and Brunei, Agoda, noted that the top three destinations for Malaysia’s outbound travellers were neighbouring countries, Thailand, Indonesia and Singapore. Other counties in the top 10 outbound destinations include Japan, Taiwan, South Korea, Vietnam, the Philippines and India.
He commented that Malaysians were seeking city destinations, beaches, nature, health and wellness and diving spots during their travel.
Despite a long lockdown due to the Covid-19 pandemic, and the escalation of travel costs, Malaysian travellers remain undeterred and price-sensitive travellers still look for good deals, observed Enric Casals, regional vice president South-east Asia and Oceania, Agoda.
Emirates has rolled out specialised training to more than 24,000 global cabin crew and ground staff in its concerted efforts to further enhance support services for travellers with hidden disabilities, including autism.
The airline also collaborated with Dubai Airport on a useful travel planner and autism-friendly route to make the pre-boarding experience more seamless, and implemented additional thoughtful measures to ensure passenger comfort onboard.
Emirates cabin crew and ground staff have been trained to assist passengers with hidden disabilities
Emirates’ online training course, Introduction to Autism and Hidden Disabilities, was first launched in 2022 and covers a range of topics from the UAE National Policy for People of Determination, recognising autism, providing practical tips on how to assist passengers with hidden disabilities, responding with empathy, and information on the official support systems to help passengers in the airport.
As a spectrum disorder, autism includes wide variations in the types and severity of symptoms people experience, with a range of sensory needs that may occur. This is why Emirates is striving to facilitate planned and positive travel experiences for passengers with autism.
Some pre-flight options include providing as much information in advance as possible, so that families can plan, rehearse, and be reassured about their upcoming travel; free seat selection and bulkhead seat for autistic passengers and companions; booking with DPNA code for extra support; pre-ordering special meals on onboard; and curating the entertainment playlist beforehand.
Other support by Emirates include provision of a special lanyard to identify passengers with hidden disabilities, an Autism Friendly Route through Dubai International Airport, and priority boarding or boarding last, noise-cancelling earphones for those with an aural sensory need, light sensitivity preferences, and activity packs for the younger passengers.
Those with hidden disabilities will also be seated beside their companion or guardian.
The Airports Council International (ACI) Asia-Pacific’s latest Airport Industry Outlook revealed that airfares in Asia-Pacific and the Middle East surged as nations emerged from pandemic-related restrictions.
The fourth edition of the Airport Industry Outlook, developed in partnership with Mott MacDonald, provides an analysis of airfare trends during the pandemic and in the recovery phase, and summarises the 2022 year-end performance of the airport industry in terms of traffic recovery and economics.
Airfare increases were affected by variations in airline operating costs, like fuel price and wage inflation
The airfares in Asia-Pacific and Middle East were above the global average – up 53% (nominal terms) or 35% (real terms) in 2022 vs 2019, although fares were trending down towards the end of the year as traffic recovers.
Commenting on the surge in airfares, Stefano Baronci, director general, ACI Asia-Pacific, said: “Despite a consolidated recovery of domestic traffic as compared to 2019 levels, and a progressive improvement of international traffic, with peak performances in Middle East and South Asia, the financial health of airport operators continued to be in distress, with 10 consecutive quarters in the red both in terms of EBITDA (earnings before interest, taxes, depreciation and amortisation) and net profit margin.
“Despite substantial efforts by airports to freeze or lower airport charges in 2022, the average 53% increase in airfares throughout 2022, compared to 2019, reveals a fundamental imbalance in the financial stability of the industry as well as pose a threat to the sector’s full recovery in 2023. Fuel prices, wage inflation, insufficient seat capacity relative to demand and a lack of airline competition on specific routes, are the major determinants in the increase in airfares.”
The increase in airfares were significantly above the global average with airline yields (revenue per RPK) that were 29% higher in 2022 than in 2019 in nominal terms. This is in sharp contrast to the financial health of airports, which are still losing money, with regional EBITDA and net profit margins being negative for the tenth consecutive quarter since 2020.
Airfares have increased across sector distances and the different markets served in the Asia-Pacific and the Middle East regions. Airfares in 2022 were much more volatile than in 2019 (pre-pandemic). The largest increases in percentage and absolute terms were reported in areas which applied stringent and long-lasting Covid-19-related travel restrictions, including the Emerging East Asia (mainly China) where yields increased 90% in 2022 over 2019 levels to US$0.21 per RPK, followed by Developed East Asia with yields up 67%. All other regions, including Oceania (+49%), South-east Asia (+35%), the Middle East (+30%) and South Asia (+19%), reported fare increases compared with 2019, despite generally lower than in 2021 as travel restrictions were progressively lifted.
To understand the market dynamics of air fares in more detail, the world’s Top 15 busiest international routes in 2019 were analysed in detail. All but one of these routes are in the Asia-Pacific and the Middle East region – the exception being London Heathrow (LHR) to New York JFK (JFK). Across these busiest routes in 2022, the number of passengers was down 66% and the average airfare was up 77%.
Airfare increases were mainly driven by variations in airline operating costs – such as fuel price and wage inflation – reduced seat capacity relative to demand; less airline competition on some routes; efforts to recover losses incurred during the pandemic and increased debt and interest rates.
Top international routes
The largest airfare increase was reported on routes with strict travel restrictions and scarce frequencies and airlines competition, such as the ones connecting Hong Kong with Manila and Shanghai. Conversely, LHR-JFK passengers had already recovered to 89% of 2019 levels in July 2019 and the airfare increase was a more modest increase of 21%.
Drivers of airline cost
Fuel price is a major driver of airline costs and air fares. Fuel accounts for around one-quarter of airline expenditures on average, and this proportion is larger for longhaul carriers. In recent years, fuel costs have been unusually variable. Jet fuel was 41% cheaper in 2020 compared to the 2019 average price, but 79% higher in 2022 due to oil supply restrictions caused by Russian sanctions and increasing air travel demand.
From the air transport ecosystem perspective, elevated airfares represent a downside factor for full recovery as these may suppress demand and therefore reduce the number of passengers. Airports, on the other hand, need to get back to pre-pandemic traffic volumes in order to restore their economic equilibrium after a prolonged period of operating in the red.
Financial health of airports
Regional EBITDA margin and net profit margins improved significantly in 3Q2022 compared to 2Q2022, thanks to higher airport revenues than in the previous quarters and well contained cost increases due to the growth in passenger demand.
However, the EBITDA margin and net profit remained negative for the tenth consecutive quarter. In terms of total airport revenue, the majority of the sampled airports performed significantly better than in 3Q2021, and on average 65% better than 2Q2022. However, the opening up of major cities from lockdown in China improved air traffic, resulting in a gradual improvement of revenues.
The new Public House in Bangkok’s hipster hub has opened to much interest among both travel industry personnel and travellers, thanks to its take on 21st-century inclusive hospitality.
Spread across nine floors, the 79-room property on Sukhumvit 31 is just moments away from Bangkok’s vibrant shopping and entertainment centres. Thanks to its proximity to the BTS Skytrain System, Public House is perfect as a base for guests to explore the city.
Public House is designed to be a place to let guests and locals feel they belong to the city
On top of modern, stylish guestrooms and amenities, including an outdoor swimming pool and meeting facilities, Public House runs imaginative tours and pop-up events, such as The Hangover Tour, Insta-Photo Walk, and Two Wheeler Tour, for guests and locals to discover the real Bangkok and what makes it so special.
The owners – husband and wife team Paul and Angie Sachdev – designed the hotel to be a place where “guests and locals feel they truly belong to the city”.
Public House is meant to be a “landing pad for the soi (street in Thai)”, where guests would be able to access Sukhumvit’s collection of the best new restaurant concepts, cafés, and bars.
The owners had left a successful business career behind to join the competitive hospitality market just before the pandemic, but retained confidence that “tourism to Thailand would pick up again after the pandemic had passed and worked hard to ensure the hotel was ready to meet that demand”.
In discussing the property’s guest demographic, Paul said: “We are focusing mainly on seasoned travellers, over the age of thirty, who are looking for a social space where they can feel that they’re part of the city.
“Every day, our changing guests will co-define how spaces are used. And, like Bangkok itself, we expect Public House to constantly flow, morph, shine, rumble, and reinvent itself in ways we can’t yet imagine.”
For the Sachdevs, it is Public House’s flagship restaurant Fest, that is the main draw. Presenting a menu of comfort-food classics from around the world, Fest’s is focused on serving big flavour combos in a sociable environment that encourages new interactions and friendships.
“We want people to feel instantly included and surrounded by friends they hadn’t met yet,” said Angie. “This was created to satisfy people’s need to travel, socialise, connect, explore, and share with each other.”
Hong Kong’s tourism industry has clawed back 49 per cent of pre-pandemic traffic for the March 2023 period, with daily arrivals hitting 82,0000 for the same month.
This compares with a weaker 32 per cent of pre-pandemic traffic and just 16,000 daily arrivals in February 2023.
HKTB expects tourism recovery to accelerate in 2H2023
Speaking at Hong Kong Tourism Board’s (HKTB) annual Tourism Overview on March 30, executive director Dane Cheng said a major rebound would happen in 2H2023, allowing the destination to meet its arrival target of 25.8 million by the end of the year.
The event, themed, Striding Forward in a Steady Recovery, reflects HKTB’s confidence.
Cheng said: “Our estimated 26 million arrivals would equate to 40 per cent of pre-pandemic traffic. I think we may do better, but there are a lot of factors at play.”
He shared HKTB’s four strategic focuses for recovery: driving strong recovery across all travel-related sectors; strengthening Hong Kong as an event capital; developing the Greater Bay Area for tourism and multi-destination tourism; and maintaining close partnership with the trade and enhancing the service quality.
Citing an example for the fourth focus, Cheng said training is being provided to more than 1,500 tour escorts and guides, to arm them with better cultural and heritage knowledge.
More details on source market performance were provided during the market update sessions. Short-haul markets in South-east Asia has returned to 47 per cent of pre-pandemic numbers, with Thailand leading the way, followed by Singapore and the Philippines.
HKTB will conduct travel trade missions to Kuala Lumpur and Manila this May, followed by Jakarta and Bangkok in July, to deepen engagements and secure more business conversions.
The China market is expected to recover gradually for a start. The market has returned to 51 per cent of pre-pandemic traffic in March, with 64,000 visitors per day. Arrivals from Guangdong province dominate, as air access from other parts of China to Hong Kong remains limited. At press time, only 40 per cent air of pre-pandemic air capacity is back, with connections between Hong Kong and 26 Chinese cities. Before, Hong Kong had flights to 43 Chinese cities.
HKTB noted strong pent-up demand among Chinese travellers, especially those aged 20 to 39. It aims to convert same-day travellers to overnight guests via immersive travel experiences offered by new and improved attractions and infrastructures.
While HKTB chairman Pang Yiu-kai is confident in Hong Kong’s tourism recovery, he acknowledged that the journey would be progressive.
“We believed that the ramp-up period is typical in other destinations, and so are the issues faced by our travel trade. It would take time (for transportation to resume) due to lack of labour.”
Following two successful editions of its hunt for the world’s most outstanding tourism villages that are able to drive rural development and local well-being, UNWTO has opened its third call for applications to its Best Tourism Villages initiative.
Launched in 2021, the initiative is one of the pillars of UNWTO Tourism for Rural Development Programme. It has recognised more than 70 tourism villages from almost 40 countries. Qualification is determined by an independent advisory board based on a set of criteria covering nine areas, including Cultural and Natural Resources; Economic Sustainability; Tourism Development and Value Chain Integration; and Health, Safety, and Security.
The 2022 Best Tourism Villages by UNWTO ceremony held in Saudi Arabia’s Al-‘Ula in February 2023 recognised 32 villages from 22 countries
Here in Asia, the tourism villages of Malaysia’s Batu Puteh; Philippines’ Bojo; Japan’s Miyama; Indonesia’s Nglanggeran; India’s Pochampally; South Korea’s The Purple Island, Ungok and Pyeongsa-ri; China’s Xidi, Yucun, Dazhai and Jingzhu; and Vietnam’s Thái Hải were awarded the recognition over the last two years.
Besides recognising tourism villages that meet all nine stringent requirements, the initiative also encompasses an Upgrade Programme, which helps villages just shy of making the cut to address gaps identified in the evaluation process; and the Best Tourism Villages by UNWTO Network, which brings representatives of both recognised villages and those in the Upgrade Programme together to trade experiences and good practices.
UNWTO secretary-general Zurab Pololikashvili said: “Tourism can make a real difference for rural communities, delivering jobs, supporting businesses and celebrating and protecting traditions. Through Best Tourism Villages, UNWTO is recognising those rural destinations that committed to making tourism a pillar of opportunity and well-being.”
UNWTO’s Members States can present up to eight villages through their National Tourism Administrations (NTAs) and via this form.
Applications will close on June 23, 2023, and the winners announced later this year.
Craig Cochrane has been appointed as the new chief people officer of Minor Hotels.
He will oversee people and culture functions for Minor Hotels in his new role, including employee engagement, maintaining a strong company culture and leading learning and development programmes for the group.
Cochrane joins Minor Hotels from Accor Hotels where he served as senior vice president of talent & culture – Turkey, India, Middle East & Africa.
Singapore Tourism Board (STB) and Flight Centre Travel Group (FCTG) have inked a three-year multi-million-dollar Memorandum of Understanding (MoU) to drive increased visitation to Singapore via FCTG’s global network.
This is FCTG’s first global agreement with a destination partner since the pandemic, which will see both partners teaming up to jointly promote Singapore in Australia, New Zealand, the UK, the US, Canada and South Africa. In addition to mono-destination holiday packages, dedicated “stayover” packages will be developed to entice visitors to stay and experience Singapore before continuing their longhaul journey.
From left: FCTG’s Graham Turner and STB’s Keith Tan
Aside from joint marketing campaigns, the partnership will also set aside support for FCTG consultants to deepen their knowledge about Singapore through training and familiarisation experiences. These efforts will equip agents with up-to-date information about Singapore and effectively make them tourism ambassadors of Singapore, sharing their experience and knowledge with prospective travellers around the world.
“This MoU underscores just how much FCTG values Singapore as a major player in the Asia-Pacific travel market. Now that more of the region’s carriers have resumed routes through Singapore, FCTG is excited to work with STB to cast the limelight back on the city and remind the world just what a spectacular travel destination Singapore is,” said Graham Turner, CEO of FCTG.
STB’s chief executive Keith Tan added: “STB will be able to showcase the many new hotels, experiences and attractions that have been launched in the past few years, so that travellers can experience even more of our beloved Singapore – our City in Nature.”
Sabre Corporation and American Airlines (AA) have teamed up to make the airline’s NDC offers available to travellers through Sabre’s global distribution system (GDS).
Starting on April 3, Sabre-connected travel buyers, agencies and developer partners will be able to shop, book, and service AA’s NDC content, including paid seats, through Sabre’s Offer and Order APIs, the agency point-of-sale tool, Sabre Red 360, and the online booking tool, GetThere.
American Airlines’ NDC offers will be available to travellers through Sabre’s global distribution system
Thomas Rajan, vice president, global sales at American Airlines, commented: “Through Sabre’s network of travel retailers, we’ll be able to provide our enhanced, rich NDC content to travellers worldwide. This will open new business opportunities to American Airlines as well as our travel retail partners, and deliver a better, more tailored experience to the customers we all serve.”
Travel buyers connected to the Sabre GDS will be able to choose enhanced offers from AA such as the Main Select and Flagship Business Plus fares, ancillary products and the lowest fares available in these channels. They will also have access to more descriptive information on AA’s flight offers as well as seat selection enabled in the booking path.
“While it is still early days for NDC bookings, making this rich NDC content from the world’s largest airline available in Sabre channels is an important step towards the maturing and scaling of NDC distribution,” said Kathy Morgan, vice president, NDC and airline supply, Sabre Travel Solutions.
Cochrane joins Minor Hotels from Accor Hotels where he served as senior vice president of talent & culture – Turkey, India, Middle East & Africa.
Hong Kong’s tourism industry has clawed back 49 per cent of pre-pandemic traffic for the March 2023 period, with daily arrivals hitting 82,0000 for the same month.
This compares with a weaker 32 per cent of pre-pandemic traffic and just 16,000 daily arrivals in February 2023.
Speaking at Hong Kong Tourism Board’s (HKTB) annual Tourism Overview on March 30, executive director Dane Cheng said a major rebound would happen in 2H2023, allowing the destination to meet its arrival target of 25.8 million by the end of the year.
The event, themed, Striding Forward in a Steady Recovery, reflects HKTB’s confidence.
Cheng said: “Our estimated 26 million arrivals would equate to 40 per cent of pre-pandemic traffic. I think we may do better, but there are a lot of factors at play.”
He shared HKTB’s four strategic focuses for recovery: driving strong recovery across all travel-related sectors; strengthening Hong Kong as an event capital; developing the Greater Bay Area for tourism and multi-destination tourism; and maintaining close partnership with the trade and enhancing the service quality.
Citing an example for the fourth focus, Cheng said training is being provided to more than 1,500 tour escorts and guides, to arm them with better cultural and heritage knowledge.
More details on source market performance were provided during the market update sessions. Short-haul markets in South-east Asia has returned to 47 per cent of pre-pandemic numbers, with Thailand leading the way, followed by Singapore and the Philippines.
HKTB will conduct travel trade missions to Kuala Lumpur and Manila this May, followed by Jakarta and Bangkok in July, to deepen engagements and secure more business conversions.
The China market is expected to recover gradually for a start. The market has returned to 51 per cent of pre-pandemic traffic in March, with 64,000 visitors per day. Arrivals from Guangdong province dominate, as air access from other parts of China to Hong Kong remains limited. At press time, only 40 per cent air of pre-pandemic air capacity is back, with connections between Hong Kong and 26 Chinese cities. Before, Hong Kong had flights to 43 Chinese cities.
HKTB noted strong pent-up demand among Chinese travellers, especially those aged 20 to 39. It aims to convert same-day travellers to overnight guests via immersive travel experiences offered by new and improved attractions and infrastructures.
While HKTB chairman Pang Yiu-kai is confident in Hong Kong’s tourism recovery, he acknowledged that the journey would be progressive.
“We believed that the ramp-up period is typical in other destinations, and so are the issues faced by our travel trade. It would take time (for transportation to resume) due to lack of labour.”