ASEAN Bursts Into Travel
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Official ATF Daily January 21, 2011 • Phnom Penh • Kingdom of Cambodia 4 ASEAN bursts into travel Regional market tipped to grow by double-digits, with the return of outbound incentive groups By Sirima Eamtako within the region.” Shroff cited confidence in Thailand has re- On the other hand, Ng said growth expected for this year. and Mimi Hudoyo as examples Cebu Pacific Air’s turned,” said Kosol. Indonesia outbound incentive He said while Singapore’s ASEAN outbound tour opera- ongoing route expansion to Vi- At the same time, Kosol ex- was also showing strength, espe- Universal Studios were attractive tors are expecting double-digit etnam, Indonesia, China, Hong pects Thai outbound to grow 10 cially for a Malaysia-Singapore to FIT and families, a growing growths in business this year, Kong and South Korea, Jetstar’s per cent, nurtured by a stronger combination. number of seasoned travellers thanks to a stronger regional new thrice-weekly Darwin-Ma- baht. He is seeing bookings Jakarta-based Lily Tours busi- were looking for new destina- economy and more intra-region- nila service starting February 9, building up strongly for the ness development manager Ati tions. “I am going to introduce al flights. and Philippine Airlines’ new six- March-April school holidays to Chandrasari expects this market a combination of Cambodia and Shroff International Travel weekly Manila-Delhi flights. Asia and Europe. to grow 20 per cent this year, on Vietnam via Singapore or Kuala Care Philippines managing di- KBS Thailand managing di- Over in Malaysia, business is so top of a 10 per cent growth last Lumpur.” rector Arjun Shroff forecasts rector Kosol Boonma said in- good that MP Travel and Tours is year, as firms resume trips post- Thailand’s Diethelm Travel Philippine outbound to grow creasing intra-regional air traffic opening a third office this month. poned due to the financial crisis. Group CEO Richard Brouwer up to 18 per cent this year, with from the Philippines was also The company handled around 20 Bandung-based Excellent said the booming ASEAN market about half of the travellers opting benefiting Thailand. groups of about 40 pax last year, Holidays managing director An- had not escaped his radar. The for Asian destinations. “We are already recording a mainly to Indonesia, and is plan- ton Handojo said an improved group, which has been focusing “Asia is priority. It is the most 30 per cent growth on inbound ning a two-night 200-pax incen- economy, exit tax exemption and on Europe and US markets for affordable destination and is easy series from the Philippines for tive to Bandung in April. the availability of regional flights more than 50 years, is looking to to connect with as airlines have bookings up to October, com- “Indonesia is good (in pro- from Bandung were all helping service high-end and expat trav- been launching new routes and pared to a 30 to 40 per cent drop moting itself to Malaysians),” to boost the outbound market ellers from ASEAN markets such increasing flights between cities last year over 2009. This shows said general manager Chris Ng. from Bandung, with a 10 per cent as Indonesia. Bankrupt Best Tours forces agents to re-strategise By Gracia Chiang with an online platform to be operational THE demise of Best Tours in Belgium late by the end of this month. last month is forcing smaller Belgian tour “We do mainly direct selling now but operators to re-look their strategies in an- we need to find new customers. With this, ticipation of the big boys in the market I’m also hoping that we can get more in- becoming only bigger in the wake of the centive commissions from airlines.” collapse. De Waele said his This may in turn target was high-end result in niche, away- clients who stay at from-the-mass- four- to five-star prop- market ASEAN des- erties, instead of the tinations such as “cheap, empty box” Indochina being fea- tours that Best Tours tured more promi- used to run. nently in Belgium than Lambert: think De Waele: think Working with only ever before. niche high-end five agents now, De Best Tours was Waele was looking largely seen as the biggest Belgian-owned to increase this to 50 agents and double outfit specialising in Asian destinations turnover, now 1.5 million euros (US$2 such as Thailand, Vietnam and China. million), within three years. To reflect this Marc Lambert, CEO, Antipodes Voyag- change, a rebranding might also be on the es, said the focal issue in the Belgian mar- cards, he added. ket now was that its bankruptcy meant that Herman Hannon, travel consultant, the “bigger players were getting even big- Asteria Expeditions, also said he was ger”. “In order to fight big players like TUI pursuing the premium segment where and Thomas Cook, which are generalists “clients don’t mind paying more for very that also cover Asia in their programmes, good service”. “We’re not going to be like Australasia specialists like us need to find the big companies who push hotels to give niche destinations and products in places them lower rates,” he said, adding his aim like Laos, Cambodia and Myanmar.” at ATF was to discover niche products in Lambert said his plan was to focus on Cambodia and Vietnam, moving away “more FIT, upmarket business as well from popular ASEAN destinations like as boutique hotels” instead of compet- Indonesia and Thailand which are domi- ing with the high-volume operations of nated by the big players. the big guns who were launching charter Best Tours ceased to exist as a com- flights to Asia. pany on December 23, leaving a trail of In a bid to increase bargaining power debts (TTG Asia, January 14, 2010). Swit- and find new revenue streams, Herman De zerland’s Kuoni group has since bought Waele, general manager, Dewi Asia Tours, the brand and is now transferring its said he was tweaking his business model business management practices to salvage from a predominantly B2C to a B2B one, its reputation. NEWS JANUARY 21, 2011 • TTG ASIA OFFICIAL ATF DAILY 2 Accor enters Squeezed out of Bali Sihanoukville By Raini Hamdi As Australia keeps growing, Europe hard-pressed to sell island THE Accor Group will be present in Sihanoukville, the port city in By Mimi Hudoyo are up because the island is do- because of immediate payments. southern Cambodia, with the EDITORIAL EUROPEAN buyers decry being ing well with the Australian and As well, they said European opening of a new-built 54-room Raini Hamdi Group Editor squeezed out of Bali, which is ex- regional markets.” buyers had too many prerequi- Ollie Quiniquini Deputy Editor Ream Resort in 2013, which will pecting another spurt of growth East Travel UK director Dor- sites like rooms by the beach, qui- Esther Faith Lew Senior Sub Editor be part of its MGallery portfolio. Gracia Chiang, Brian Higgs Sub Editors in the Australian market this year. othy Heng, said the company be- et areas and lower rates, while the MGallery’s footprint is grow- Sirima Eamtako Bureau Chief Thailand, A UK buyer has charged that gan looking to Bali as a possible Australians were easy-going. ing in the Mekong region, with Vietnam, Cambodia, Myanmar and Laos Bali hoteliers are “arrogant”, alternative to Thailand following “We do try to balance Australia Karen Yue Senior Reporter, Singapore four other management con- merely interested in Australian the latter’s political riots last year, with other markets,” said Kuta Mimi Hudoyo tracts secured – 107-room Hotel tourists, and have increased their but “we found that the majority Seaview Boutique Resort and Spa Senior Correspondent, Indonesia de l’Opera Hanoi, 69-room Ve- S Puvaneswary Reporter, Malaysia contract rates by 20 to 30 per cent of hotels were always full, so we resident manager, Ketut Swabawa randa High Resort Chiangmai, Patrick Tan Photographer for the UK market. turned to Cambodia, Laos and – even though a 70 per cent share 118-room Veranda Resort & Spa Redmond Sia, Haze Loh Other European buyers are Vietnam instead”. at his resort last year does reflect Creative Designers Hua Hin and 75-room Songtsam less scathing, but have described Bali hoteliers deny giving long- a business skewed to Australians. Lina Tan Editorial Assistant Retreat at Shangri-la, the first Bali as “challenging” to sell. TUI haul markets the short shrift. In Bali Rani general manager An- MGallery hotel in China. With Netherlands product manager fact, several said they were trying ton Adijaya said from forward CONTRIBUTORS eight MGallery hotels in opera- Asia, Sebastian de Vries, said: “On to achieve a balanced mix as it bookings, it was clear Australian Bernie Rosenbloom, Rahul Khanna, tion in Asia, and the 174-room Steve Finch the one hand, the Holland mar- was risky to have too much busi- business could still grow for the Hotel Muse Bangkok announced ket is price-sensitive and the eu- ness from one market. But many hotel, but he would keep to the earlier, the collection has grown SALES & MARKETING ro’s devaluation (is not helping). have been able to maximise yields current share of 50 per cent Aus- to 14 to-date in Asia. Michael Chow Publisher On the other hand, air fares have by turning to OTAs, which they tralian and 50 per cent OTAs and Katherine Ng, Marisa Chen Accor’s senior vice president increased and hotel prices in Bali said was also good for cashflow other markets. Senior Business Managers sales and marketing, Graham Fiona Heng Marketing Services Executive Wilson, said the chain was also Brunei Tourism steps up marketing with two overseas offices enjoying rapid growth with its PUBLISHING SERVICES Pullman and Novotel brands in Tony Yeo Division Manager By S Puvaneswary China/Hong Kong is the sultanate’s second largest Agnes Loy Senior Production Executive Brunei Tourism has appointed Beijing-based Longway as market after Malaysia, generating 13,224 air arrivals in ASEAN.