ATPCO has unveiled a new automated Emergency Flexibility tool that will be adopted by the airline industry from this week to enable them to automatically update flight changes and refunds for issued tickets.
Created within the framework of IATA and A4A supply chain resolutions, and in collaboration with airlines, GDSs and channels, the automated solution enables airlines to process the mounting travel changes stemming from the Covid-19 travel restrictions.
ATPCO rolls out new tool to allow automated flight changes and refunds for previously-issued tickets
The tool will help airline companies by automatically applying new changes and refunds in previously-issued tickets to reflect new policies such as longer validity periods and change fee waivers, providing passengers with greater flexibility for future travel.
In addition to supporting the needs of airlines, GDSs, and agencies, Emergency Flexibility also ensures that travellers can better understand new policies that have been put in place and the associated benefits.
“In these exceptional circumstances, there has been an increasing need for a consistent approach to ticketing changes for all players and across different channels,” said Hervé Prezet, vice president of Industry & Expertise at Amadeus.
“The solution that ATPCO has been able to create in a matter of weeks, and that Amadeus is enabling, will provide consistency in automated servicing for travel agents and airlines which will benefit the entire ecosystem.”
To date, over 60 airlines, including Air France-KLM, American Airlines, British Airways, Delta Air Lines, and Singapore Airlines, have been involved with the Emergency Flexibility solution. Additionally, all major GDSs, including Amadeus, Sabre, Travelport, and Travelsky have planned to go live with it.
Mr. Renaud Meyer, the UNDP Resident Representative in Thailand and Mr. Yuthasak Supasorn, TAT Governor
The Tourism Authority of Thailand (TAT) has teamed up with the United Nations Development Programme (UNDP) to formulate a long-term sustainable tourism strategy for the Thai tourism industry.
A Memorandum of Understanding (MoU) between TAT and the UNDP was signed on June 5, by UNDP resident representative in Thailand, Renaud Meyer, and TAT governor, Yuthasak Supasorn.
UNDP’s Renaud Meyer and TAT governor Yuthasak Supasorn ink deal to strengthen sustainable tourism development in Thailand
The MoU provides a platform for collaboration to integrate sustainability as a fundamental principle for tourism in Thailand and share Thailand’s experience in sustainable tourism with other countries, building on UNDP’s presence in 170 countries and territories around the world. It is in line with TAT’s over-arching objective to strengthen confidence in the Thai tourism industry with a series of Restore and Reform measures.
Yuthasak said in a press statement: “TAT has always realised the importance of promoting sustainable tourism. Collaborating with the UNDP to align this objective with the SDGs (Sustainable Development Goals) will go a long way towards enhancing the overall quality of the tourism products and services nationwide. It will allow us to broaden our knowledge base and incorporate experiences in sustainable tourism from different angles at the national and international levels.”
He noted that it was especially significant to be advancing this agenda in the year marking the 60th anniversary of TAT, a day that has also been designated as the start of the Decade of Action, set to accelerate progress towards the SDGs by all UN member states.
“Thailand is known all over the world for its superb tourism products and services, and the friendliness and hospitality of its people. In future, however, we will have to better balance quantity versus quality, and marketing versus management,” added Yuthasak.
Meyer said the pandemic had reminded the world of the “vulnerability” of the tourism sector and “the need to define a new normal for tourism that has to be based on sustainability, inclusion and ensuring more benefits for the local communities”.
Collaboration between the two will involve updating the King’s Wisdom to Sustainable Tourism project to include a socio-economic impact assessment and recovery plan for the tourism sector from Covid-19 as well as work to promote biodiversity-based tourism.
TAT is undertaking a range of social and environmental initiatives in different industry and economic sectors as part of the strategy to promote responsible tourism. It is also focusing on the promotion of 55 emerging destinations to decongest well-known tourist spots, create jobs in the rural areas and reduce income disparities.
Ecotourism, an alternative to mass tourism, is poised to reign supreme in the Philippines’ travel industry’s transition to the new normal post-Covid-19, according to experts at the Ecotourism Philippines webinar.
Organised by Masungi Georeserve, Visita, Eco Explorations and Andrew Tan Center for Tourism of the Asian Institute of Management, the webinar was held to discuss the country’s tourism recovery post-Covid.
Pandemic has led to higher demand for ecotourism activities as travellers look to the great outdoors for safer travels; tourists and locals enjoying bamboo raft riding along Peñaranda River at Minalungao National Park
John Roberts, Minor Hotels group director of sustainability and conservation, said that ecotourism already has a headstart with its outdoor-centric activities, offering itineraries in safer, low-risk environments. As such, he reckoned that ecotourism will rebound faster than mass tourism.
“Hotels and other operations are going to have to look at what we do in ecotourism – how we manage to make money with fewer guests, greater space, more personalised service, and smaller groups,” Roberts pointed out.
“For ecotourism, the new normal is actually the old normal and that is, ecotourism is run in a very different way by and large from many of the other mass tourism products,” said Tony Charters, board member of the Asian Ecotourism Network and vice-chair of Global Ecotourism Network.
“In some ways, ecotourism is the leader in what the new normal is,” Charters said, adding that this sector is “adopting practices that are probably much safer from environmental and health points of view than many other forms of tourism”.
He further elaborated: “The experiential side of ecotourism is very important and often, you will find that many different ecotourism activities like walking treks and canoe treks (are carried out in) quite remote areas where the risk (of virus infection) is very, very low.”
Boboi Costas, who organised the Bojo Aloguinsan Ecotourism Association in Cebu and developed the Aloguinsan River Eco-cultural Tour, underscored the need to look at product development in the new normal.
He suggested that the ecotourism market should be segmented into different product types, for example, health and wellness, culinary, and bird watching, with the addition of more private activities and groups. He added that ecotourism providers should establish contacts with local health practitioners.
On the other hand, Roberts advised industry players to start learning and training in ecotourism as it’s poised to be the most popular vacation type in the new normal.
He added that they should also step up efforts to woo the domestic market which will recover ahead of the international market, noting that Minor Hotels is strongly eyeing the domestic market in Bangkok once the Golden Triangle opens up in July.
Furthermore, Roberts also suggested for ecotourism providers in South-east Asia to share inspirational stories created around their destinations on social media, retrain the digital community, and start differentiating themselves from mass tourism by building on the region’s trademark friendliness and hospitality.
Roberts cited the case of him and his community hosting Facebook live sessions for Minor Hotels’ Anantara Golden Triangle Elephant Camp, connecting with their audience and telling them about the camp’s work so they remain top of mind, and raising awareness of their donation drive.
For destinations, Charters advised pushing for quality and sustainability, and marketing their merits, which in the Philippines’ case, is friendliness.
With global discussions about Boracay’s rehabilitation, Charters said the key is to keep the project at the forefront, emphasising that the Philippines is doing things in a sustainable manner.
During the webinar, the panelists also debunked ecotourism operations as very small-scale and expensive, claiming that it can be carried out on a large-scale if done correctly, and that the element of scale only comes into relevance when sustainability or the experience is threatened.
Large-scale ecotourism spots included A$10 billion which generates A$10 billion (US$6.9 billion) annually to Australia’s economy; Queensland’s Skyrail Rainforest Cableway, a long cableway that can carry hundreds of thousands of people yearly to the top of the rainforest; and English Bay Resort on the world heritage site Fraser Bay.
Malaysia's fresh US$8.2 billion stimulus not enough to buoy the tourism sector, which is only poised to recover from the pandemic in 2021, says trade
Tourism players in Malaysia have criticised the RM35 billion (US$8.2 billion) stimulus package unveiled on Friday to boost the economy reeling from the impact of Covid-19 as inadequate to sustain the hard-hit sector.
The package was announced by the prime minister, Muhyiddin Mohd Yassin, on Friday, and encompasses 40 initiatives. Out of the total, RM10 billion will be used as direct fiscal injections.
Malaysia’s fresh US$8.2 billion stimulus not enough to buoy the tourism sector, which is only poised to recover from the pandemic in 2021, says trade
Among initiatives of the short-term economic recovery plan unveiled on Friday included a three-month extension of the wage subsidy programme which allocates RM600 per worker. Employers in the tourism and other sectors who are not allowed to operate during the conditional movement control order can apply for the subsidy.
To assist the tourism sector, various tax incentives will be rolled out. For starters, a RM1 billion Penjana tourism financing (PTF) scheme will soon be made available to finance the transformation initiatives by SMEs in order to boost their competitive position in the new normal. Details of this scheme will be announced in July.
Other initiatives that will benefit the tourism and hospitality sector include a three-month extension of the deferment of tax instalment payments to December 31, 2020; a one-year exemption of tourism tax from July 1, 2020; and further exemption of service tax on lodging and accommodation services until June 2021.
As well, the government will grant individual income tax relief of up to RM1,000 for domestic travel expenses until December 31, 2021.
Although the trade welcomes the initiatives, they were quick to point out inadequacies and shortcomings of the plan.
The Malaysian Association of Tour and Travel Agents president, Tan Kok Liang, said: “We seek details on the mechanism of the PTF facility where we are looking at extremely low-interest rates or interest-free loans for digitalisation under the new norm where most procedures and sales are contactless, and are also done extensively through e-marketing platforms.
“Also, in order to remain competitive, investment in health and safety protocols is necessary to boost travellers’ confidence and simultaneously safeguard both employees and tourists.”
However, Tan pointed out that to date, for the allocation of the special relief facility fund under the previous economic stimulus package, there has been no drawing down of the fund yet for tourism players.
He added that he has received complaints from members that they were either disqualified for the fund or the allocation had been fully used up, urging the government to “monitor and supervise this funding facility to ensure fairness to all”.
He added that the tourism tax and service tax exemptions will inject a booster to the tourism industry in 2021 when demand picks up, with the reopening of regional and international borders.
Extension of income tax relief for tourism expenses will also “rejuvenate the local tourism industry”, but Tan said that “the conditions should include spouse and children”. “The eligibility should also be limited to tour packages bought from licensed travel agents and tour operators which include hotels, tours and transfers to ensure effectiveness,” he added.
On the extension for deferment of tax instalment for the tourism sector, Tan pointed out that it would be more helpful if taxes made payable for year of assessment 2019 was set off against current period losses.
“As tourism companies are in a tax loss position, they will also not be able to enjoy tax relief or incentives for Covid-19 testing and purchase of PPE and thermal scanners, and renovation of business premises. Government grants or subsidies would be more appropriate under these circumstances.”
He also said that the three-month extension of the wage subsidy programme has to be reviewed again as the tourism industry will only recover by year-end. He also hoped that the government will continue with the staff retention programme.
Malaysian Association of Hotels CEO, Yap Lip Seng, said in a press statement that while the industry welcomes the new initiatives and extension of the wage subsidy programme, he deemed the amount of RM600 for another three months as “insufficient” to sustain the industry.
Yap elaborated: “The hotel industry has long proposed a 50 per cent wage subsidy for employees with monthly pay of RM4,000 or below, and 30 per cent for those between RM4,000 to RM8,000.”
He added that the government needs to develop a concrete plan to stimulate both domestic and international travel, ahead of the country’s reopening of borders.
SIA has raised US$10 billion in total to fight the coronavirus crisis.
Singapore Airlines (SIA) has raised S$10 billion (US$7.1 billion) in liquidity through its recent rights issue, as well as a mix of secured and unsecured credit facilities, putting the national carrier “on a steady footing” to weather the Covid-19 storm.
On top of the S$8.8 billion the company secured via a rights issue on June 5, which was backed by Temasek Holdings, a further S$900 million was raised through long term loans secured on some of the airline’s Airbus A350-900 and Boeing 787-10 aircraft.
SIA has raised US$10 billion in total to fight the coronavirus crisis
The total of S$10 billion in financing secured by SIA is among the largest raised by any carrier to tackle the global pandemic.
In addition, the company said that it has also arranged new committed lines of credit and a short-term unsecured loan with several banks, which provide further fresh liquidity amounting to more than S$500 million.
As well, the maturity dates of all its existing committed lines of credit have been extended till 2021 or later, ensuring continued access to more than S$1.7 billion in liquidity, it added.
For the period up to July 2021, the company also retains the option to raise up to a further S$6.2 billion in additional mandatory convertible bonds, which will provide additional liquidity if necessary.
SIA also said that it “will continue to explore additional means to shore up liquidity as necessary” amid these uncertain times.
Singapore among South-east Asian destinations eager to capture the Middle-East market once travel resumes
South-east Asian destinations are prepping to grab a share of the burgeoning Middle East market once travel resumes by rolling out digital campaigns and holding talks with airlines.
At the inaugural Arabian Travel Market Virtual, representatives of national tourism boards from the Philippines, Nepal and Singapore said they are currently putting plans in place to tap into the huge potential the Middle East holds.
Singapore among South-east Asian destinations eager to capture the Middle-East market once travel resumes
According to a UNWTO study held before the pandemic, Middle East outbound numbers were slated to hit 46 million this year and 61 million by 2030. The region also boasts the highest average expenditure in the world, with Saudi Arabia alone expected to reach US$43 billion by 2025.
Nandini Lahe-Thapa, senior director at Nepal Tourism Board, said they are creating packages and revival strategies aimed at the region. The market has been split into three groups: expats, Indians working in the region who regularly send their family to Nepal, and Middle East citizens.
Direct marketing programmes are being built to target them and talks held with airlines and trade partners on the ground.
Said Lahe-Thapa: “This is a market we have strongly been looking at as we’re very well-connected with the Middle East with many flights. This is a huge potential market waiting for us.”
Beverly Au Yong, area director for the Middle East at Singapore Tourism Board, said the Middle East’s population is digital-savvy – an element they are using creatively to capture the market.
She added: “Our marketing campaign will continue to have a strong focus on the digital front. The Middle East market also rely on information from influencers and word-of-mouth from key opinion leaders, so these are things we will work on.”
Philippines to promote nature-based attractions and remote islands to the Middle East market post-Covid: Gonzales
Daks Gonzales, head of the office of product and market development for India and the Middle East at the Philippines Department of Tourism, said they plan to promote the Philippines’ wealth of nature and remote islands to the market.
He added that marketing stakeholders in the Middle East reported more than 70 per cent of clients are already looking into travel arrangements. He said: “As soon as regulations in place and supply chains start to open, I’m sure there will be demand from the Middle East region and we are ready.”
Six Senses Hotels & Resorts has appointed Eric Hallin as general manager and Hannah Loughlin as director of sales and marketing of Six Senses Con Dao.
With more than 40 years of international hospitality experience, Hallin’s management expertise spans an impressive list of countries, including France, Greece, Maldives, Spain and Thailand.
From left: Eric Hallin; and Hannah Loughlin
Aside from contributing to the success of properties such Six Senses Samui in Thailand, Hallin has also held leading positions in PATA, chambers of commerce and Skål.
On the other hand, Loughlin began her sales and marketing career in 2002 at London’s Grosvenor House before moving on to join Design Hotels, and spearheading the field team of prestigious hotels including Sofitel London St James, InterContinental, and Anantara Angkor Resort & Spa.
The British national was most recently leading the sales, operations and finance team in Cambodia as general manager for Trails of Indochina, a luxury inbound agency across Indochina.
Japan’s hospitality sector is adapting its offerings to include daily room use and takeaway services to bring in much needed revenue during the ongoing Covid-19 crisis.
High-end hotels have rolled out campaigns inviting businesses to use their spacious, Wi-Fi-equipped rooms for telecommuting. The move is in response to the Japanese government’s call upon its people to work from home where possible to minimise viral transmission. Cramped homes or co-living with extended family has made this a challenge for some workers, prompting them to look for options outside the office.
ANA InterContinental Tokyo offers its guestrooms to businessmen who need a conducive space for telecommuting
In Tokyo, the ANA InterContinental offers half-day (three hours) and full-day (nine hours) plans for one or two people to use its twin or double rooms for remote working. The half-day plan costs 12,000 yen (US$110), while the full-day plan is priced at 19,500 yen. Users can also enjoy a 20 per cent discount for in-house restaurants and bars as well as room service.
Naomi Mori, manager of public relations and communications at the hotel, told TTG Asia she hopes the plans will increase the number of guests even a little at this difficult time.
The Hotel Granvia Osaka is also offering daily plans (nine hours) for remote working, from 8,500 yen for a single room and 10,000 yen for a deluxe single room. Extensions are available at 1,000 yen per hour until 20.00.
Full-service hotels are also providing dishes for takeout from their restaurants. Grand Hyatt Tokyo’s Fiorentina Pastry Boutique, for example, is serving seasonal soups and baked goods for takeout.
Caterers, meanwhile, are moving into B2C food delivery following the cancellation of in-person events.
Marybeth Boller, who trained in the kitchens of Michelin-starred restaurants and creates high-end cuisine for events in Tokyo, launched custom meal delivery service Nokasoul in April.
Although the idea for a custom meal business came last year, the pandemic forced Boller to “jump into the delivery service plan”.
She said: “I saw how every restaurant in New York closed in a matter of weeks. This made us move faster to launch.”
Once Nokasoul gets a regular customer base, Boller plans to offer catering again under the brand.
Demand for air services is beginning to recover after hitting bottom in April, driven by the uptick in domestic travel, according to IATA.
In what is an unprecedented decline, passenger demand in April (measured in revenue passenger kilometres or RPKs), plunged 94.3% compared to April 2019, as the Covid-19-related travel restrictions virtually shut down domestic and international air travel.
After April’s passenger demand trough, IATA reports first signals of uptick
More recently, figures show that daily flight totals rose 30% between the low point on April 21 and May 27, primarily in domestic operations and coming off a very low base (5.7% of 2019 demand).
While this uptick is not significant to the global dimension of the air transport industry, it does suggest that the industry has seen the bottom of the crisis, provided there is no recurrence, said IATA in a statement.
In addition, it is the very first signal of aviation beginning the likely long process of re-establishing connectivity, it added.
Alexandre de Juniac, IATA’s director general and CEO, said: “April was a disaster for aviation as air travel almost entirely stopped. But April may also represent the nadir of the crisis. Flight numbers are increasing. Countries are beginning to lift mobility restrictions. And business confidence is showing improvement in key markets such as China, Germany, and the US.
“These are positive signs as we start to rebuild the industry from a standstill. The initial green shoots will take time – possibly years – to mature.”
IATA calculated that by the first week of April, governments in 75% of the markets tracked by IATA completely banned entry, while an additional 19% had limited travel restrictions or compulsory quarantine requirements for international arrivals. The initial flight increases have been concentrated in domestic markets.
Data from late May show that flight levels in South Korea, China and Vietnam have risen to a point now just 22-28% lower than a year earlier. Searches for air travel on Google also were up 25% by the end of May compared to the April low, although that’s a rise from a very low base and still 60% lower than at the start of the year.
April international passenger demand collapsed 98.4% compared to April 2019, a deterioration from the 58.1% decline recorded in March; while capacity fell 95.1%.
Asia-Pacific airlines’ April traffic plummeted 98.0% compared to the year-ago period, worsened from a 70.2% drop in March; while capacity fell 94.9%.
European carriers’ April demand toppled 99.0%, a sharp decline from the 53.8% decline in March; while capacity dropped 97%.
Middle Eastern airlines posted a 97.3% traffic contraction for April, compared with a 50.3% demand drop in March; while capacity collapsed 92.3%.
North American carriers had a 98.3% traffic decline in April widened from a 54.7% decline in March; while capacity fell 94.4%.
Latin American airlines experienced a 98.3% demand drop in April compared to the same month last year, from a 45.9% drop in March; while capacity fell 97.0%.
African airlines’ traffic sank 98.7% in April, nearly twice as bad as the 49.8% demand drop in March; while capacity contracted 87.7%.
On the domestic front, traffic fell 86.9% in April, with the steepest declines registered in Australia (-96.8%), Brazil (-93.1%) and the US (-95.7%). This was a sharp deterioration compared to a 51.0% decline in March. Meanwhile, domestic capacity fell 72.1%.
China’s carriers posted a 66.6% year-on-year decline in traffic in April, little change from a 68.7% decline in March, but an improvement from the 85% decline in February.
Russian airlines’ domestic traffic fell 82.7% in April compared to April 2019. The slower shrinkage compared to the other markets is attributable to the later timing of the outbreaks in the country.
“For aviation, April was our cruelest month. Governments had to take drastic action to slow the pandemic. But that has come with the economic cost of a traumatic global recession. Airlines will be key to the economic recovery. It is vital that the aviation industry is ready with bio-safety measures that passengers and air transport workers have confidence in. That’s why the speedy implementation of the International Civil Aviation Organization’s (ICAO) global guidelines for safely restarting aviation is the top priority,” said de Juniac.
As travel demand starts to pick up, and hotels and resorts worldwide begin to reopen, Accor is preparing to launch a global campaign, Reignite the Love of Travel, in key markets worldwide this summer.
Introduced by its lifestyle loyalty programme, ALL – Accor Live Limitless, the campaign kicks off with a short film designed to reassure travellers, while creating desire to travel.
Accor’s Reignite the Love of Travel campaign will launch in key markets worldwide this summer
The initiative will launch with a social media campaign, inviting travellers to share their travel dreams and inspiration, which will be combined to create a montage-style travel film.
Steven Taylor, CMO, Accor said: “During the lockdown periods everywhere, we have been surprised to see so many people on social media sharing their cravings for travel with such uplifting humour and creativity. It was heart-warming for us to see that they were missing us as much as we were missing them.
“The message of our campaign then came naturally as we invested to prepare for the immediate holiday season as well as for longer-term bookings. Seeing the quick business recovery in China, we wanted to do our part to reassure our guests and to reignite the travel desire.”
