Towards worry-free travel - TTG Asia
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
PPS 619/02/2013(022926) Year-end issue Towards No. 1741/December 2016 worry-free travel In a sector constantly fraught with challenges and issues of all kinds, how can travel be the seamless, safe and joyful affair that it’s supposed to be? Worry- free travel is what we at TTG Asia wish for in 2017. Have a happy holiday season everyone! Chinnapong/shutterstock
Year-end 2016 TTG Asia 2 Want to read us on the go? Foreword Towards worry-free travel EDITORIAL L Karen Yue Group Editor ooking back at 2016, safety & security was a key issue. We had horrible terror karen.yue@ttgasia.com attacks targeting tourists (e.g. Brussels airport, a series of bombs in popular Xinyi Liang-Pholsena Editor, TTG Asia liang.xinyi@ttgasia.com Thai resorts), viral outbreaks (Zika), air accidents (FlyDubai, Egyptair), natural Paige Lee Pei Qi Assistant Editor, Singapore lee.peiqi@ttgasia.com disasters that affected tourism (New Zealand earthquake), political impacts (Brex- S Puvaneswary Editor, Malaysia/Brunei it, US presidential election), economies (China slowdown) – enough examples to puvanes@ttgasia.com Mimi Hudoyo Editor, Indonesia make us choose Towards worry-free travel as the theme of this year-end issue. idmfasia@cbn.net.id Rachel AJ Lee, Yixin Ng Sub Editors Our dream of worry-free travel goes far beyond safety & security. From our per- rachel.lee@ttgasia.com, ng.yixin@ttgasia.com spective, despite the troubles of 2016, the industry in fact has gone stronger in deal- Rebecca Elliott Correspondent, Australia rebeccaelliott@hotmail.com ing with crises, having year after year learnt to deal better with them. Tourists too Marissa Carruthers Correspondent, Cambodia have voted with their passports – terror attacks or health scares have not prevented maris.carruthers@gmail.com Caroline Boey Senior Correspondent, China & Special Projects them from travelling. Close to one billion international tourists were recorded in caroline.boey@ttgasia.com Prudence Lui Correspondent, Hong Kong the first nine months of 2016, a four per cent increase over the same period in 2015, prului@yahoo.com according to UNWTO’s latest count. Rohit Kaul Correspondent, India rohit.kaul@ttgasia.com What we’d love to see is worry-free travel in its totality, i.e. while safety & security Julian Ryall Correspondent, Japan jryall2@hotmail.com is critical, so too is the beauty in seamless, efficient, friendly and joyful travel. Feizal Samath Correspondent, Sri Lanka/Maldives So, to our dear readers, we’d like to wish you not ‘safe travels’ – this year’s com- feizalsam@gmail.com Michael Sanderson, Chadamas Chinmaneevong mon email sign-off – but ‘happy travels” in 2017, when travelling is less of an anxi- Correspondents, Thailand michael.sanderson@ttgasia.com, chadamasc@gmail.com ety and more of uninhibited discovery. Rosa Ocampo Correspondent, The Philippines Which is what it should be. rosa.ocampo@gmail.com Redmond Sia, Goh Meng Yong Creative Designers Yours, Lina Tan Editorial Assistant SALES & MARKETING Michael Chow Group Publisher michael.chow@ttgasia.com Pierre Quek Publisher, Online Section pierre.quek@ttgasia.com Shirley Tan Senior Business Manager shirley.tan@ttgasia.com Raini Hamdi Xinyi Liang-Pholsena Ingrid Chung Business Manager ingrid.chung@ttgasia.com Senior Editor Editor Cheryl Tan Corporate Marketing Manager cheryl.tan@ttgasia.com Kwek Wan Ling Marketing Executive kwek.wan.ling@ttgasia.com Cheryl Lim Advertisement Administration Manager cheryl.lim@ttgasia.com Carol Cheng Assistant Manager Administration and Marketing carol.cheng@ttgasia.com PUBLISHING SERVICES Tony Yeo Division Manager Kun Swee Qi Publishing Services Executive Lynn Lim Web Executive Katherine Leong Circulation Executive TTG ASIA MEDIA Darren Ng Managing Director darren.ng@ttgasia.com Raini Hamdi Senior Editor raini.hamdi@ttgasia.com 06 12 16 OFFICES SINGAPORE 1 Science Park Road #04-07 The Capricorn, Singapore Science Park II, Singapore 117528 Tel: (65) 6395-7575 Fax: (65) 6536-0896 contact@ttgasia.com; www.ttgasia.com HONG KONG 8/F, E168, 166-168 Des Voeux Road Central, 03 18 Sheung Wan, Hong Kong CEO Essays Travel Startups Tel: (852) 2237-7288 Fax: (852) 2237-7227 Five industry leaders share their views on A new crop of entrepreneurs explore ways how travel can be safe and fuss-free to make the travel landscape worry-free TTG Asia is a product by TTG Travel Trade Publishing, a business group of TTG Asia Media. It is mailed free on written request to readers who meet predetermined criteria. Paid 06 20 subscriptions are available to those who do not meet the criteria. Headlines Travel Bosses Annual airmail subscriptions are US$180 to Asia and US$199 elsewhere. Cover price US$5. A look at 2016’s biggest stories that shaped These jetsetting professionals show how MCI (P) 098/09/2014 • PPS 619/02/2013(022926) the travel and tourism sector to have good, safe fun off work Printed by Times Printers Pte Ltd 16 Tuas Avenue 5, Singapore 639340 09 Intelligence Global tourism health still looks in good shape, according to indicators 21 Millennials Young travel executives reveal their favourite tools to get around Travel Hall of Fame Since 2002, TTG Asia Media has honoured luminaries that have won the prestigious TTG Travel Award for at least 10 consecutive times for the same award title in the Travel 10 23 Inbound Travel Women Hall of Fame. At present, these exceptional Agency bosses tell how they cope with Power women divulge their innermost organisations and their years of induction are: disruptions to business this year travel fears and how they overcome them • Singapore Airlines (2002) • Singapore Changi Airport (2002) • Hertz Asia Pacific (2005) 12 24 Outbound Travel Travel Insurance • Royal Cliff Hotels Group (2006) • Star Cruises (2008) There’s no lack of bright spots for outbound An expert advises agents on how to check • Sabre Travel Network Asia-Pacific (2009) business despite a tumultuous year travel insurance cover for terrorism • SilkAir (2010) • Lotte Tour (2011) • Hong Kong International Airport (2013) 15 25 • Raffles Hotel Singapore (2013) NTOs Travel Technology • Regal Airport Hotel (2015) A carefree holiday wish list from tourism Cutting-edge solutions that tech providers • Banyan Tree Spa (2015) • Qatar Airways (2016) chiefs in Asia-Pacific wish to sell for seamless travel • Thai Airways International Public Company Limited (2016) • Thailand Convention & Exhibition Bureau (2016) 16 26 TTG Asia Media is pleased to announce that it has set up a Transport Editorial Team virtual TTG Travel Hall of Fame (www.ttgtravelhof.com), which will Airline and cruise heads outline some TTG Asia editors and reporters disclose enable us to showcase the accolades, artefacts and memorabilia of the region’s most exceptional travel organisations in a far common hazards in the skies and seas their most daring acts this year more effective way and to a global audience.
Year-end 2016 TTG Asia 3 In an era of unprecedented global integration and growing CEO essays uncertainty, five industry leaders ponder how technology, proactive measures plus a bit of innovative thinking can make travel safer and seamless. By Raini Hamdi Silver lining around dark clouds W e are living in one of the most ex- citing times to be a traveller. The Internet is uncovering yet unknown end lying on an airport bench, followed by the bureaucratic hell of claiming refunds. Blockchain technology could potential- more, but placate nervous relatives and friends when their loved one decides to be adventurous. places to visit; air travel is growing at one ly take some of the sting away with instant Landing in a foreign and underdevel- of the fastest rates in history, becoming insurance. A company called FlightDelay oped country, one of the most worrisome more affordable and accessible than ever; allows users to receive instant cashback on moments is deciding how to get from the and mobile apps are allowing us to stay in any delayed flight, circumventing the la- airport to the hotel, and whether the taxi people’s homes around the world at the borious, time-consuming claims process driver understands you and not rip you fraction of the price of a hotel. via airlines. As costs are eliminated, insur- off. Driverless cars should put an end to Yet despite this progress, the act of trav- ance becomes zero sum, allowing custom- this and GPS technology can take you to elling is still associated more with stress than (ease), and with the growth of tech- Technology can create more complexity, but nology comes complex problems too. Take for example the recent system it can also make life significantly easier and glitches and crashes experienced by n worry-free. United Airlines and British Airways, thanks in part to compatibility issues ers to keep more of their wealth. While in any location you wish accurately, efficient- TRAVELLING between old ‘legacy’ systems and newer technology. Cyber attacks on hotels make its early stages and is highly dependent on accurate third-party data, this model ly, transparently and safely. With driverless car technology improving, transportation MADE EASIER travellers wary about parting with their personal data (not that they have any could also potentially eliminate the travel insurance market. will become automated and efficient. These are only a few examples of how WITH TECH choice), and hotel key cards have a knack of not working when you need them to. Technology can create more complex- Wearable technology will become so advanced that your loved ones will know where you are based on the signals sent technology can reduce the stress and worry in travel, among others. There are so many touch points along a traveller’s ity, but it can also make life significantly from your wearable device. Aside from journey that could cause concern, from David Topolewski easier and worry-free. location, other vital signs such as heart immigration to airport transfers. If tech The CEO of mobile learning provider Qoo- As any traveller will tell you, a delayed rate and blood sugar levels can also be applications can make just some of those co examines how advances in technology or cancelled flight can mean the difference checked. This will not only allow those points smoother and more efficient, then will make travel breezier between a dream holiday and hours on who suffer from serious conditions to do the world of travel will get even better. IMX_TTG trade ad-07-OP.pdf 1 11/22/16 6:36 PM C M Y CM MY CY CMY K
CEO essays year period. Global standards are also helping to One notable point is that the 2015 fig- tackle emerging issues. Aircraft tracking ures do not include two tragedies – the came to the forefront in 2014 with the loss losses of Germanwings 9525 and Metro- of Malaysia Airlines flight 370. Under the jet 9268. Both were deliberate events and International Civil Aviation Organiza- were not accidents. Indeed, 2015 is simi- tion’s leadership and with input from the lar to 2014 in this regard. If we look at industry, a global tracking standard has the 2014/2015, the industry’s safety per- been established, which will be globally formance has been affected primarily by applicable from November 2018. And our events that could be previously classified capabilities may grow more robust in the as almost “unthinkable”. near future as space-based technologies Our goal is to have zero accidents. As an mature. industry, we have become very good at ap- So have a worry-free journey – flying is plying lessons learnt from past accidents the safest way to travel, and we are work- via a systematic, well-researched and col- ing towards making it even safer! laborative process based on global stand- ards and best practices. This has been the industry’s modus operandi for decades and has helped to make aviation the safest form of long-distance travel the world has ever known. JETTING INTO SAFER SKIES Global standards are vital to sustain- ing safety improvements. This is shown in the performance of airlines on the IATA Conrad Clifford flights, a 30 per cent improvement from Operational Safety Audit (IOSA) registry. IATA’s regional vice president, Asia-Pacific the previous five-year rate of one accident In 2015, the total accident rate for IOSA- affirms that flying, backed by statistics and for every 2.2 million flights. registered carriers was nearly three times measures in place, remains one of the safest Safety is the top priority for the indus- as good as the rate for non-IOSA carriers. ways to travel try. Although we work hard to prevent When compared over the last five years, any loss of life, accidents do happen. This the rate is more than three times better. T here are many things we need to wor- ry about in life, but air travel is not one of them. year we saw accidents involving FlyDubai and EgyptAir. In 2015, the industry expe- rienced four fatal hull loss accidents – all And we have enhanced the IOSA pro- cess by transitioning it from a snapshot of compliance to a continuous management A look at the industry’s past safety per- involving turboprop aircraft – with a total process across the two-year cycle of the formance will reveal that aircraft accidents of 136 fatalities. This compares positively audit. Today, there are over 400 airlines are extremely rare. In 2015, there was with the average 17.6 fatal accidents and around the world that are using IOSA, one major accident for every 3.1 million 504 fatalities per year in the previous five- including 55 from the Asia-Pacific region. from stepping on a plane. why not let low-risk passengers process SMART TECHNOLOGY FOR This concept is not new. Australia has long been a leader in this area and has themselves? It is possible to keep passen- gers moving while freeing border agencies SMARTER AIRPORTS now introduced interactive exit checks so that unauthorised travellers are prevented to focus on those posing a greater risk. This shouldn’t be limited to border from leaving the country. checks. A fast, secure and seamless walk- Ilya Gutlin get passengers processed quickly and se- Two developments which offer the op- through experience at every checkpoint at President, Asia-Pacific of aviation technol- curely. portunity to check passengers at the bor- the airport is within reach of passengers ogy company SITA examines how smart In the face of growing threats, govern- der quickly and securely are biometrics today. technology can improve both the airport se- ment agencies need to have the very best and the use of e-passports. For instance, SITA Smart Path allows curity and passenger experience alike information and intelligence on travellers Recent advances have made biometric passengers to move through the airport as early as possible. Pre-travel authorisa- technology fast and accurate. A trial of and board the aircraft simply by present- H ow can we make travel more secure without making the passenger expe- rience unbearable? How do we stop those tion includes advance passenger process- ing or interactive advance passenger in- formation, which integrates the pre-travel SITA biometric gates showed that 92 per cent of eligible travellers had their docu- ments and biometric checks successfully ing themselves for a biometric check. Once verified there is no need for the pas- senger to present a boarding pass, a pass- who shouldn’t be getting on planes with- screening process with airline check-in completed with no operator intervention, port or travel document again. out ruining the journey of the vast major- procedures. and we’ve recorded up to 60 per cent de- This smart technology can be easily ity of innocent travellers? Over the last 15 This real-time technology allows bor- crease in wait times with our automated integrated into existing airport infrastruc- years we have seen measures introduced der authorities to process travellers in ad- border control kiosks. ture and airline systems, which makes it which arguably have not delivered the vance and prevent unauthorised persons Today, more than 100 countries have cost-effective and fast to deploy. right balance. from making their journey in the first implemented e-passports and their use Secure, seamless travel is possible. The But there is an answer. We can get place. What this does is essentially push- is widespread. Travellers are enthusiastic world needs to get smarter about using smart. Technology is available so that ing the border to the point of departure about using self-service technology. So technology to make it happen. border security agencies across the world and in advance of travel. Doing this means can work smarter and use automation to that unauthorised travellers are prevented SITA looks to beacon technology to personalise the airport experience Technology is available so that border security agencies across the world can work smarter and use automation to get passengers processed quickly and securely.
Year-end 2016 TTG Asia 5 MAKING MEANING OF sive scale and we faced a situation where all bookings we had in our books to all rank of the staff), encouraged them to take unpaid leave and use the time for fur- CRISES AND CHALLENGES our destinations were cancelled within days, and no new bookings came in. It af- fected every segment – leisure, corporate ther training and education. We also cut the bonus for that year. All our staff un- derstood it was for the overall benefit of and MICE – and all our source markets. everyone and, with the exception of a few, When people fear that they might catch supported us. a disease, however remote that possibility On the marketing side we stopped all actually is, they won’t travel. short-term activities except attending key In such a situation where no income trade shows. We embarked on an infor- will be generated for months, the key to mation policy, to provide real facts to our survival is of course cash flow. We are in B2B customers to the best of our knowl- an industry where short-term bank edge even if the press continued to paint loans are hard to come by and a dim future. cash is king. The immediate It took about six months for business to focus in such a crisis is the start coming back. Some source markets need to reduce costs to the took longer to return to Asia. It was a mat- minimum. For a DMC such ter of national character to a certain ex- as us, it is staff costs that tent, where some markets were just more make the bulk of expenses. sensitive to negative news than others. Yet we did not want to We reversed our salary cuts as soon as make our staff redun- we were able to. And with our staff reten- dant, as they are our tion policy, when the tourists returned, we most important had skilled and experienced staff to look asset. We have after them and hence guaranteed the qual- always been an ity of our services at all our destinations. employer where, A year later we were even able to pay our if times are good, staff an extraordinary bonus since busi- we let staff ben- ness recovered faster than expected. Laurent Kuenzle the most difficult one efit as much as The lessons learnt? Focus on the long Asian Trails’ group CEO shares the toughest and which had the possible; if times term, have a healthy cash flow, treat your crisis he has ever handled and why people biggest impact in all are difficult, we will staff as well as you can and keep a tight remains at the heart of his DMC operations the countries we op- all carry the burden grip on your expenses. Also, mitigate risks erate in was SARS in together. We there- by operating in several countries and have W e have had to overcome many crises over the past 15 years in Asia, but 2003. The scare was on a mas- fore introduced salary cuts (depending on the a focused but wide source market client base. vision to plan ahead, engage stakehold- clusions and implications for the future EMPOWERING READINESS ers and embrace the learned routineness of a crisis plan through simulations and are not restricted to the hotel sector alone and can also be applied to a wide range of TO CRISIS MANAGEMENT scenario workshops will set the scene for a positive crisis leadership process. service-related industries. Organisations cannot ignore the in- By living and breathing the crisis plan, creased power of a company-wide inclu- Jennifer Cronin when institutional memory is formalised. and using the routineness to build confi- sive empowerment programme which An essential but often overlooked part of As a result of this empirical study, a Liv- dence and familiarity, the entire organisa- provides clear directions and allocates crisis preparedness is incorporating routine- ing Manual is posited to address those tion will be in a stronger position than its roles and responsibilities. A sense of loy- ness within the crisis plan, says president of complacencies and to put in practice the competitors should a crisis occur. alty to the organisation and its stakehold- Marco Polo Hotels, Hong Kong theory developed from the research. The routineness derived from experi- ers, as well as the need to confirm business As explained in the findings of the re- ence can be forgotten, especially in an continuity and therefore job security, also A s the global village becomes more connected, crises impact a wider group of communities across borders, re- search titled Empowering Readiness – In- fluencing Crisis Management Success Out- comes, even though many organisations industry like hospitality which is charac- terised by high staff turnover rates. The learned experience through institutional strengthens staff commitment to crisis management objectives and goals. This commitment should be harnessed by em- gions and continents. advocate a leadership culture that encour- memory can also be lost. This is why a powering staff with the necessary proce- Crisis events cover a broad spectrum ages knowledge-based crisis management Living Manual should be given priority dures and resources to enact upon their of political, environmental, technological preparedness, in reality, the “it won’t hap- by senior management to be incorporated crisis readiness training. and health issues from both man-made pen to us” or “it can’t get that bad” mental- and natural perspectives; and sadly, hotels ity permeates many hotel operations. are now seen as soft targets by terrorists. However, there is clear evidence that These events can quickly gather an un- experiential learning embraced by a ho- By living and breathing controllable momentum on a global plat- tel’s senior management creates a best- form of communication connectivity. practice crisis plan – where incorporating the crisis plan, and using There has never been a greater need to routineness ensures a more competent the routineness to build provide insights and theoretical updates crisis-ready organisation. on crisis management in order to prepare While current literature has provided confidence and familiarity, the entire societies, organisations and individuals an extensive road map of tourism crisis organisation will be in a stronger with the tools to deal with a crisis event in management frameworks and studies to the most effective way possible. follow in the event of a crisis, scant regard position than its competitors should a Crises are seen as an inevitable part of the travel business today, and, as a conse- has been given to the initial phase of crisis readiness, when senior management dedi- crisis occur. quence, the tourism sector is fast recog- cates the resources to a systematic crisis nising the need for effective crisis and risk planning regime. into the organisation’s day-to-day opera- management. However, these strategies The study reinforces the importance of tions, engaging staff at all levels and pro- require leadership to have the foresight the cognitive strength of crisis experience viding a reliable toolkit in the event of a and drive to establish a culture of crisis and the experiential learning gained from crisis. preparedness. participation in crisis phenomena. When A crisis-ready organisation will stand In 2010, after experiencing four years applied to crisis plan development, the ex- the test of a high-pressure negative impact of political turmoil in Thailand, I em- periential factor creates a robust 360-de- better than one that ignores crisis plan- barked on a research journey to establish gree perspective on addressing the needs ning at its peril. An informed organisation how leadership could prepare better for a of all parties during a possible crisis event will be able to meet the crisis event head crisis event. Taking a three-year sabbati- in the future. on with the knowledge and confidence cal from a senior hotel management role, Moreover, a crisis plan must not be left that their crisis leadership capabilities will I immersed myself in understanding how on the shelf or allowed to gather dust. reduce the negative outcomes and ensure crisis leadership efficacy is accelerated Instead, the organisation that has the sustained business continuity. The con-
Headlines Year in review TRUMP’S HONG KONG AIRPORT SLAPS SURPRISE NEW SURCHARGE Despite earlier VICTORY objection from the trade, Hong Kong Donald Trump’s International Airport implemented the unexpected win in controversial airport construction fee the US presidential from August 1 to recoup building costs election sent for a third runway. shockwaves around the world, but it appears to be THAILAND TACKLES ZERO- business as usual for DOLLAR TOURS Arrivals from the tourism sector, China to Thailand have taken a nosedive A KINGDOM IN MOURNING with concerns following the Thai government’s The passing of Thailand’s beloved of uncertainties crackdown on cheap tour packages for King Bhumibol Adulyadej on October resulting from Chinese tourists, a move that some view 13 plunged the entire kingdom into Trump policies in as a necessary pain for the tourism sector deep sorrow, prompting concerns of a the longer term. for long-term gain. tourism slowdown when a year-long mourning period was declared. BYE, ROUBLE TROUBLE As the rouble stabilises, Russian holidaymakers are starting to return to Asian shores again, reigniting industry expectations for the HOTELBEDS GROUP SOLD TO comeback of a significant source market. Meanwhile, the Russian outbound luxury PRIVATE EQUITY FIRM TUI Group’s travel market appears more resistant to the shocks. sale of its Hotelbeds Group, which includes Hotelbeds, Pacific World and Intercruises, is expected to remake the BREXIT BOOST FOR BRITISH DNATA ACQUIRES A STAKE IN highly fragmented bedbank business. TOURISM Inbound travel from the UK DESTINATION ASIA Dubai-based into South-east Asia has so far remained DNATA, which has been buying UK unaffected by Britain’s vote to leave the travel companies, has made its first CHINESE COMEBACK TO EU. The weakening pound, on the other foray into Asia by acquiring a stake in MALAYSIA Two years after the hand, is projected to favour outbound Bangkok-based Destination Asia for an disappearance of Malaysia Airlines flight tourism to the UK. undisclosed sum. MH370 in March 2014, the inbound Chinese market to Malaysia is finally showing strong signs of recovery in GOLDEN JUBILEE GAMEPLAN 1H2016. FOR ASEAN@50 To commemorate TRAVEL AGENT TAKES TOP ASEAN’s 50th founding anniversary TOURISM POST Wanda Tulfo Teo’s in 2017, the 10 member states in the AID FOR QUAKE-HIT KYUSHU appointment as Philippine tourism bloc have joined hands to promote The Japanese industry is rallying to secretary in July was much welcomed, South-east Asia as a single yet diverse restore confidence to southern Japan, as industry members view that someone destination with a year-long Visit with travel agencies and airlines dropping recruited from the agency ranks will ASEAN@50 Golden Celebration 2017 prices to encourage visitors to Kyushu bode well for tourism instead of having campaign highlighting 50 cross- after the region was rocked by a series of an outsider for the plum post. border travel products. violent earthquakes in April. COVER GALLERY A showcase of the hottest topics and interviews that made the covers of TTG Asia this year
Year-end 2016 TTG Asia 7 TTG Asia takes a look at the biggest stories and significant moments that shaped the travel and tourism sector in 2016 ZIKA FEARS BITE SINGAPORE US ON THE RADAR Multiple countries issued travel Garuda Indonesia is planning advisories to Singapore following a to re-launch flights to the US as spate of Zika virus cases in the city- early as next year via a transit state, but the Formula 1 Grand Prix in Japan, following the August raced ahead despite the outbreak. lifting of a safety ban imposed by the US Federal Aviation Administration. NICCOLO_TTGAsia_FullPage_Nov2016OP.pdf 1 27/10/2016 下午6:23 TERROR HITS EUROPE As terrorism reared its ugly head several times in Europe this year, from the Brussel airport bombings to the Nice massacre on Bastille Day, travellers voted with their feet for countries that are perceived safer in the continent. POKÉMON GO CRAZE NABS TOURISM PLAYERS From an epic world tour to seeding sites with virtual C creatures to lure visitors, agile tourism and hospitality players were quick to M capitalise on the Pokémon Go craze for Y more business opportunities. CM MY ASEAN OPEN SKIES GET WIDER CY The Philippines has finally agreed to the CMY ASEAN Open Sky Policy, paving the way K for full third, fourth and fifth freedom rights for ASEAN carriers.
Year-end 2016 TTG Asia 9 It’s been a votaltile year for travel so far, but if the reports Intelligence from Forwardkeys, WTTC and International SOS are any indicator, the global tourism sector is still in good shape The ‘croissant effect’ bites Europe Various shades of resiliency With the decline in bookings from China to Europe recorded mostly in Istanbul, Paris China For APAC bookings to France in the No- and Milan while other destinations like Moscow, London, Dublin and Manchester -23.4% vember 2015-October 2016 period, Japa- see a higher interest from Chinese visitors, ForwardKeys dubbed this phenomenon nese travellers once again showed their the ‘croissant effect’. The shape of the croissant describes the surrounding countries Hong Kong sensitivity to safety and security issues, of France that are still facing a drop in arrivals towards the year-end, contrary to -27.9% shrinking by more than half of last year’s rising arrivals in eastern/northern Europe and Spain/Portugal. The main reason for Singapore bookings. India, with the second largest this trend is that many Chinese tour itineraries include the neighboring countries of -23.4% market share (12.9%) in APAC for the float- France. ing year, exhibited stronger resiliency with a Malaysia drop of only -2.3% in bookings, bringing -59.9% hope to the recovery of Asian outbound Source: ForwardKeys markets to France. Insatiable global hunger for travel South Asia 5.9% South-east Oceania North-east Asia 4.9% Asia 4.7% 4.0% Source: WTTC Despite encountering many challenges earlier this year, the travel and tourism industry is still expected to grow by 3.1% in 2016, outpacing global economic growth forecast at 2.3%, according to World Travel & Tourism Council’s (WTTC) Economic Impact Performance of Top European cities – YoY %Var and Shares Reports 2016. Asia-Pacific also shows stronger growth rates than other world regions. Source: Forwardkeys Fitur 2017_114x180_ing.pdf 1 26/10/16 17:14 Brexit: 28 days later In the wake of the Brexit referendum, bookings for arrivals to the UK rose notice- ably by 7.1% over a comparable period of 28 days. As a result, booking trends for international visitors to the UK were up 4.3%, compared with the same period last International Tourism Trade Fair year. Partner FITUR 2017 MADRID, 18th-22nd January Source: ForwardKeys C M Y Mapping travel risks worldwide CM MY A study conducted by medical and security specialists International SOS and Con- CY trol Risks indicated that 72% of over 1,000 corporate travel decision-makers per- CMY ceived an increase in travel risks this year. Organisations were challenged to take control in a climate of increased perception of risk, with 80% surveyed having K modified their travel itineraries in the past year due to health and security concerns and 48% investing more in travel risk mitigation over the past year. Below, a look at the Travel Risk Map for 2017. 9,600 exhibiting companies 125,000 trade participants OFFICIAL CARRIER 7,200 journalists ORGANISED BY: MEMBER OF 107,000 general public Source: International SOS
Inbound travel Navigating through storms HONG KONG PHILIPPINES INDIA SINGAPORE MACAU Jenny May Angel Ramos Bognot Louis D’Souza Fred Seow Bruno Simões Managing director President and managing director Executive director CEO Executive director Destination Management Company Afro Asian Travel Tamarind Global TAcentre.com smallWORLD Experience What was the biggest disrup- What was the biggest disrup- What was the biggest disrup- What was the biggest disrup- What was the biggest disrup- tion to your operations this tion to your travel operations tion to your travel operations tion to your travel operations tion to your travel operations year and how did you over- this year and how did you over- this year and how did you over- this year and how did you this year and how did you over come it? come it? come it? overcome it? come it? We had a few cancellations The biggest disruption this year One of the biggest disruptors was We have not experienced any- Although we were not affected from Europe-based travellers were the cancelled flight de- the political unrest in the north- thing major like a world war or by typhoons this year, a thick who were concerned about the partures and arrivals due to ty- ern Indian state of Jammu and an epidemic. But this year we fog in February 2016 affected terrorist attacks in their part of phoons, which in turn affected Kashmir. This sort of situation can see that there are many new the departure of many delegates the world and decided to stay clients’ travel arrangements. psychologically impacts travel leaderships around the world attending the IEEE 802 confer- home. The situation seems to As the ground operator, we to the region even after stability that will result in changes in ence. have improved and they are lost everything, from ground ar- returns. the economic order. These will We always recommend con- resuming their travel plans for rangements to hotel bookings as How we handled the situa- definitely impact businesses and ference organisers to provide a next year. these services have already been tion was two-pronged. For cli- livelihoods, so we have to be help desk staffed by local people In Hong Kong, there is grow- paid for in advance. ents already travelling, we made ready for such disruptions and who know the destination well to ing political unrest and the Chi- A typhoon is a natural calam- sure someone with authority and be prepared for any shake-up in help with common situations – nese New Year riots in Mongkok ity and is normally considered knowledge of the region reached business. not to mention its value in times caused a few cancellations. pre-sold, but it also depends on out to them and assured them of unexpected situations! The few typhoons we had the decision of the supplier and that they were in safe hands and Can you take safety for grant- also caused flight delays and our relationship with them. If would be able to travel back ed? What safety measures Can you take safety for grant- cancellations. I think the Ob- a client requests for a refund, it home safely. They were given would you like to see imple- ed? What safety measures servatory shouldn’t have been will be difficult on our part as we regular updates on both the un- mented in your destination? would you like to see imple- as cautious in predicting the are at the mercy of the supplier. folding situation on ground and Everyone is aware that Singapore mented in your destination? path and strength of them so it Another challenge arises when a the progress of their travel plans. is a very safe and easy destination Macau is extremely safe and all happened at the last minute. client requests to extend his/her It is also important to partner to travel to and people will gen- therefore we tend to take safety Fortunately the airlines were co- booking due to flight cancella- with local agencies that are ex- erally “let their guard down”. for granted. That said, Macau’s operative and helpful in rebook- tions. perts in the region and who are Generally, I think that we can stability and safety is one of ing flights. able to prioritise mobilisation of publicise more emergency num- our selling points. – Prudence Can you take safety for grant- logistics for your clients and re- bers, apart from the Singapore Lui Can you take safety for grant- ed? What safety measures spond to their concerns and en- Police Force’s number. This will ed? What safety measures would you like to see imple- sure their safety quickly. help people, especially tourists, would you like to see imple- mented in your destination? to know which numbers to call mented in your destination? Safety must never be taken for Can you take safety for grant- should they need an ambulance You can definitely not take granted. We advise clients to ed? What safety measures or if they are lost and need safety for granted, as you never have travel insurance so that they would you like to see imple- directions. – Paige Lee know what will happen next. can recover losses from flight de- mented in your destination? Pei Qi Keeping up to date with world lays or cancellations. No place is a safe haven anymore. events and their likely effects on As for the contract between The best one can do is to try and Hong Kong and making sure the supplier and ground op- be a step ahead, anticipate situa- overseas clients know exactly erator, it should be reviewed to tions and be prepared for them. what is happening is all we can tackle the issue of force majeure We give our guests as detailed do. and come to an agreement that’s a plan as we can so they know If there is further political un- win-win for both parties. what to expect and what they rest in Hong Kong, we will make Potential danger and threats might encounter in the normal sure our clients are aware of this lurk anywhere in the world so course of events. A guest services and advise them to postpone a safety warning should always manager will also meet clients their travel here. be a part of the travel itinerary. and hand over a kit containing The same applies to the weath- The government has a big role in contact details of people they er. If a typhoon is likely to affect protecting the rights and safety can reach out to in case of emer- Hong Kong, we will let them of travellers, and should update gency. know well in advance, provided travel warnings in destinations Many of the vehicles in our the Observatory lets us know that need it and identify destina- fleet are fitted with GPS devices well in advance! – Prudence Lui tions that are safer than the rest. and have panic buttons to ensure – Rosa Ocampo guests that if they have any con- cerns they will have help at hand. – Rohit Kaul
Year-end 2016 TTG Asia 11 Asian inbound travel agents recount the biggest disruptors to their business this year and share the learning points from these crises and unexpected situations MALAYSIA we were only notified at the very last minute. Luckily, we had all ed? What safety measures would you like to see imple- time information to members. Following terrorist threats in the Saini Vermeulen the emergency numbers on hand mented in your destination? past, the Malaysian government Executive director to inform the various parties in- Safety can never be taken for had put in place more police and Within Earth Holidays volved and rescheduled the itin- granted. You must ensure that army personnel to give people eraries accordingly. you have the SOP on hand and the confidence that it was pre- What was the biggest disrup- A lesson learnt was to ensure disseminate the correct infor- pared and had an action plan tion to your travel operations that we have the contact num- mation to your clients and their to cope with emergencies. – S this year and how did you over- bers of suppliers on hand for any overseas agents. Puvaneswary come it? eventuality. The Malaysian Association of Malaysia Airlines had a number Tour & Travel Agents has always of flight retimings to Sabah that Can you take safety for grant- been proactive in providing real- CAMBODIA which we managed to avoid and Can you take safety for grant- ed? What safety measures inspection trip, and it gave a ter- rible image of the city. modify itineraries accordingly. Pierre-André Romano More disruptive were Cam- would you like to see imple- We gathered the main DMCs General manager bodia Angkor Air’s flight can- mented in your destination? and met with the Ministry of Exo Travel Cambodia cellations, retiming and delays, Safety is an issue in Phnom Tourism to fix the problem. largely due to the last-minute Penh and Sihanoukville, not of There are now more lights in What was the biggest disrup- notice given, if any. We gathered the physical danger kind but tourist areas and more tour- tion to your travel operations the major DMCs and raised this mainly bag snatching cases. ist police in Phnom Penh. We this year and how did you issue with the Ministry of Tour- However, this is not only an have seen a real improvement overcome it? ism, a co-partner with Vietnam issue with our clients; some in- from the second semester, but There were no major events but Airlines in this joint-venture vited travel agents were also vic- still had a few cases. – Marissa a couple of demonstrations, airline. tims of bag snatching during an Carruthers VIETNAM vehicles to overturn, causing ments to clients’ travel plans. smoothly, and take immediate disruption to roads and rail- and appropriate actions to solve Jeff Redl ways. The Halong Bay authori- Can you take safety for grant- unexpected issues. Managing director ties also stopped all cruises one ed? What safety measures Vietnam could have, like in Diethelm Travel day before the storm’s arrival would you like to see imple- Europe, several independent and ships were asked to arrive mented in your destination? organisations that monitor and What was the biggest disrup- back in port in the morning. Safety is never granted despite ensure that all players are fol- tion to your travel operations Our clients’ safety is our top having more rules and regula- lowing the same standards and this year and how did you over- priority. We always monitor the tions, infrastructure improve- provide appropriate levels of come it? situation closely and provide cli- ments and personal training. training. – Marissa Carruthers Tropical storms and hurricanes ents and agents with updates, as It is our duty to ensure that brought down trees and caused well as assist in making adjust- all our operations are running THAILAND er of travellers worldwide. Each country also has its own prob- Can you take safety for grant- ed? What safety measures In the past, many negative incidents have damaged the Mingkwan Metmowlee lems such as the weak rouble in would you like to see imple- kingdom’s image as a tour- Managing director Russia and terrorism in France. mented in your destination? ism destination. Therefore, the Image D’Asia S.A. I reduce risk by expanding Safety is a priority for travellers. government should rebrand business to new markets in Asian To achieve this, the Ministry of Thailand’s image and take What was the biggest disrup- countries. I work with the Tour- Tourism & Sports should work measures to ensure tourist safety. – tion to your travel operations ism Authority of Thailand to more closely with the Associa- Chadamas Chinmaneevong this year and how did you over- develop new products and join tion of Travel Agents and related come it? tradeshows to look out for new tourism organisations to develop The global economic downturn potential markets in this region. an international standard for ex- has affected the purchasing pow- isting and new attractions. JAPAN ushu quite a bit this year. I thought things would return thing we can do is wait it out. Japan in general is very well prepared for all kinds of disas- Cameron Stadin to normal quickly, but enquir- Can you take safety for grant- ters, so I’ve never felt that I was Global sales representative ies are still down. Even though ed? What safety measures ever in danger. As for theft and Global Sales Explorer word is being spread that Kyushu would you like to see imple- other crimes, Japan is one of the is safe and recovering, travellers mented in your destination? safest countries in the world. I What was the biggest disrup- are still wary. I’ve tried offering I feel very safe living and travel- have seen people drop an enve- tion to your travel operations new courses and products, but I ling in Kagoshima. Sakurajima, lope of money in public and have this year and how did you over- haven’t had much of a response. the active volcano in Kagoshima, it safely returned. – Kathryn come it? Other inbound companies in is well monitored by scientists, so Wortley The Kumamoto earthquake (in Kyushu seem to be having dif- there would be plenty of warning April) has affected travel in Ky- ficulties too, so perhaps the only if something were to happen. SRI LANKA Frankfurt and Rome in Novem- ber was the biggest issue we have done before flights are termi- nated, especially as Sri Lanka is mented in your destination? Safety is the key to success in Mahen Kariyawasam been grappling with for the past now trying to increase arrivals. every destination. In Sri Lanka, Managing director few months. The industry as a whole needs to we may be dropping our guard Andrew The Travel Company We have lost 5,000 seats, and be consulted for major decisions because the war is over and eve- Emirates and Qatar cannot cope such as flight withdrawals, which rything is now peaceful. What was the biggest disrup- with handling a group of 60-70 impacts the entire industry be- For example, we need to step tion to your travel operations pax. KLM and Austrian Airlines yond the airline itself. up surveillance at airports and this year and how did you over- – which have resumed winter tourist areas. We should also come it? flights – are taking up the short- Can you take safety for grant- revive the Tourist Police force, The pull-out by SriLankan fall but it’s not enough. ed? What safety measures which was effective and existed Airlines’ direct flights to Paris, A proper study needs to be would you like to see imple- many years ago. – Feizal Samath
Outbound travel Standing firm in tumultuous times pisaphotography/shutterstock erate more choices of routes to stimulate political unrest, among a host of possi- ble travel disruptions. This year has been HONG KONG demand and interest. Instead of tours to marred by a record number of terrorist at- Central Europe, we developed more in- Jason Wong tacks in key Singaporean holiday destina- depth itineraries to European destinations Director and general manager tions such as Europe. Hong Thai Travel Services (deemed to be) safer, such as second- or third-tier cities in Eastern, Western and How did you cope with this situation to Which crisis affected your business Northern Europe. allay fears? What would you advise cli- most this year? With the (seemingly random oc- ents on their future travel plans? The spate of terrorist attacks in Europe curence of) disasters – natural or man- We will continue to recommend Europe early this year dampened Hong Kongers’ made – we strongly advise clients to pur- as it is a continent (large enough that) travel desire and outbound traffic to the chase travel insurance or pay attention to for repeat travellers to find something region. news. We would not tell clients where to fresh every time. We have seen a skew in Our longhaul business to Europe avoid as they have their own preference. – SINGAPORE demand for less mainstream Europe des- tinations such as Iceland, Scandinavia and dropped 30-40 per cent as the market reaction to these incidents was swift. Prudence Lui Anthony Chan Eastern Europe. Thankfully, travellers tend to (move on Group managing director While we should take the necessary from) this kind of incidents quickly and Chan Brothers Holdings precautions, we should not allow attacks such negative sentiments didn’t stay long. to paralyse travel, which is an important So far, the market is pretty stable and Which crisis affected your business source of revenue and employment for Hong Kongers continue to travel as this is most this year? many countries. We remind travellers to part of their (lifestyle). Travel risks abound everywhere, even remain vigilant and where possible, avoid at home. We are constantly at the mercy crowded places and public gatherings. How did you cope with this situation to of health epidemics, natural calamities, – Paige Lee Pei Qi allay fears? What would you advise cli- ents on their future travel plans? Given how vast Europe is, we try to gen- wars. Many tour operators have to sell package tours at minimal profit to sur- vive. foreigners. The blasts appeared to be We are coping with the situation by targeted at tourist hotspots around the cutting our operation costs, introducing country, and came just a few days before new tour services and applying greatest the first anniversary of the devastating flexibility to meet customer demand. bombing at a Hindu shrine in Bangkok. We allayed the fears of some of our FIT How did you cope with this situation to clients by informing them that the Thai allay fears? What would you advise cli- prime minister ordered (tightened) secu- ents on their future travel plans? rity especially in tourist districts. The economic slowdown continues to However, we had to cancel our big- THAILAND concern us. Although clients still have money, lower purchasing power could ger group tours, causing a drop in sales to Thailand, one of our main outbound Suparerk Soonrangura cause them to cut spending on trips. destinations. Last year we sent roughly Founder and managing director Today, tour operators need to make 1,800 people to Bangkok and this year NS Tour adjustments to deal with customer trend. Markets are changing dramatically and SRI LANKA the number dropped to 700. We had to re-route our Bangkok groups to other What crisis affected your business most only the strong and flexible can survive. Suren Ediriweera destinations. this year? We are about to adjust our (methods) Managing director It was the weakened purchasing power and give advice that suits the budgets of Ceylon Tours How did you cope with this situation to resulting from Thai and global economic customers. We will design the tour pack- allay fears? What would you advise cli- conditions, which caused outbound tour ages according to their demand and budg- Which crisis affected your business ents on their future travel plans? business to drop significantly. ets to survive the economic downturn and most this year? We anticipated the situation in Bang- (Compounding the problem), fierce intense competition. The biggest crisis that affected our busi- kok would improve in a few months but competition due to the growing number I hope that purchasing power will re- ness this year was the bombings in Thai- since clients were still wary, we stepped up of players, especially illegal ones selling cover in the first quarter of next year. – land in August, which left at least four promotions of destinations such as Ma- tour packages online, has caused price Chadamas Chinmaneevong dead and dozens injured, including 10 laysia and Vietnam. – Feizal Samath
Year-end 2016 TTG Asia 13 Europe’s terror attacks and the Zika virus weigh most on Asian outbound travel business this year, but agents show resilience and dig in their heels to overcome these crises PHILIPPINES on hotel accommodations and airline seats to OTAs like Expedia, Booking.com and Terrorism can hit anywhere and we can- not do anything about it. People should Rowena Baltazar Agoda. Airbnb is getting market share and continue to travel but take proper precau- Sales manager airlines have their own selling platforms. tions and be aware of what’s happening Adam’s Express Travel Group The only way to counter this trend is around the globe. to continue creating travel products that A few years back, there was massive Which crisis affected your business require the expertise of an experienced news coverage about bombing in Israel most this year? travel provider. and nobody wanted to offer the Holy Land Apart from the terror attacks in Europe, pilgrimage tours except us. We performed Internet-isation is also affecting business. How did you cope with this situation to our security checks through our operators It is not so much a crisis but a travel allay fears? What would you advise cli- there and ensured that our clients would trend that affects business. We’re losing sales ents on their future travel plans? be safe. – Rosa Ocampo posed a challenge for outbound tourism considered safe to visit. entire world – including the global travel to these markets because of the security I can’t comment on the security sce- and tourism industry – has to stand united concerns in the minds of Indian travellers, nario in any market as terrorism is a ma- to fight the menace of terrorism. – Rohit affecting leisure as well as the business jor challenge for tourism today and the Kaul segments. The other major challenge emerged in the form of the Zika virus, which damp- ened interest in Brazil among Indian tour- ists. Initially, a lot of Indian sports enthu- siasts were interested to travel to Brazil for the Olympics but the spread of Zika virus became a spoilsport. INDIA How did you cope with this situation to P P Khanna allay fears? What would you advise cli- President ents on their future travel plans? Diplomatic Travel Point Our business was not too affected by the terrorist attacks in Europe or Zika virus in Which crisis affected your business Brazail since we advised clients to travel most this year? to other countries that offered similar at- Terrorist attacks in several European cities tractions they were looking for and were ADVERTORIAL FITUR 2017 THE PRINCIPAL DESTINATIONS, HOTELS, TOUR OPERATORS AND SERVICE COMPANIES PRESENT AT FITUR 2017 WILL SHOW THEIR MAIN CONTRIBUTIONS TO SUSTAINABLE TOURISM The principal destinations, hotels, tour operators and the natural areas. that offer information and promotions in a digital and service companies present at the International Tourism The Trade Show will showcase territories that are audiovisual format, seeking to promote savings in paper by Trade Fair, FITUR, which is due to be staged at Feria de organising group tourism and trekking, ensuring that jobs replacing printed pamphlets. Madrid from 18 to 22 January 2017, will unveil their and income are generated for the local population through The Trade Show will also provide proof of how accessibility main contributions to sustainability. The UNWTO has services such as dining and accommodation in local homes, is improving thanks to the construction of highway designated the Trade Show as the venue for the kick- demonstrations of unique cultural products from their networks and the further development of air traffic through off celebrations of the International Year of Sustainable locality and offering citizens the opportunity of selling their the growing number of international airports near the coast Tourism for Development declared by the United local products or connecting with non-profit organisations and of both all-year-round and seasonal flights. Nations Organisation and channelled through the World abroad. The awareness of sustainability which exhibitors are Tourism Organisation, which is based in Madrid. Some destinations are highlighting their “green offering” demonstrating will be in evidence even in some of FITUR’s through an information system that notifies visitors of exhibitors, who will build their stand with recycled The exhibitors present at FITUR 2017 will showcase the the best experience during their holidays in the most materials, among them, for example, fruit boxes, wattle preeminent actions they are undertaking to contribute to responsible global destinations. And others have presented baskets and furniture and accessories from the previous sustainable tourism. In this line, an increasing number of projects involving research into and preservation of the year. countries and destinations are promoting actions to reduce marine environment by raising public awareness and the impact of travellers on the environment, ecosystems through education. Greater demand for sustainable travel and local culture, travellers who conversely help to A recent international survey conducted by the Booking. generate income and jobs. Added to these are the initiatives Hotels and transport com hotel reservations portal brings to light that, between of other territories that are seeking to promote their local As for hotels, the Trade Show will highlight initiatives 2014 and 2015, international demand for more sustainable communities and encouraging the positive impact this which these establishments are implementing to respect destinations has quintupled. Furthermore, in a recent activity has on them. the environment, harnessing renewable energies, replacing professional industry meeting in Málaga’s Costa del Sol, Among the examples of those due to be present at the event light bulbs with LEDs, using low-consumption materials international tour operators presented the results of are countries that are promoting support for volunteers in and advising their customers and employees on how to another global survey which revealed that tourists are orienting and helping foreigners during their visit as well reduce expenditure on water and power. Visitors will also prepared to pay more, in 83% of cases, for a hotel classified as developing attractive but lesser-known and less-visited see how they are reducing plastic and chemical waste, as sustainable. areas by tourists with the aim of relieving the pressure on using returnable glass bottles, eco-friendly and/or organic FITUR 2017 will help to unveil the latest solutions and oversubscribed destinations. cleaning products and much more. advances being developed and which are contributing We will see evidence of how some tour operators have Transport companies will also demonstrate their to economic growth, social development, job creation, become involved in training and preparing young people commitment to sustainable tourism. An example of this efficiency of resources, environmental protection, the to give them the opportunity of working in the area’s best is car rental, where hybrid and electric vehicles are promotion of heritage values and cultural diversity. hotels and restaurants. Meanwhile, others are committed being introduced to reduce pollution and the useful life to maintaining the natural setting of the countries in which of passenger cars is being shortened, thus contributing they work, promoting rural accommodation with special to greater efficiency and benefits for the environment. charm and collaborating with local companies that respect Technology providers, for their part, are developing devices For more information: Jesús González, Press Officer | 0034 91 722 50 95 | jesusg@ifema.es Helena Valera, International Press | 0034 91 722 51 74 | evalera@ifema.es Beatriz Zamorano, Editor | 0034 91 722 58 43 | beatriz.zamorano@ifema.es www.fituronline.com
You can also read