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Flight cancellations impact travel economy

SYDNEY, 25 January 2024: Rising costs and flight cancellations will significantly impact the country’s travel economy, the Australian Travel Industry Association warns in its latest research released this week.

The comprehensive study, conducted by former Qantas economist Tony Webber, provides a detailed analysis over two decades, demonstrating a trend where airlines often cancel flights for purely commercial reasons, impacting both the travel industry and consumers.

“In the year to October 2023, assuming a 5% passenger drop due to cancellations, a staggering AUD405 million would be lost overnight,” said ATIA CEO Dean Long. “This number blows out to over AUD1.6 billion if 20% of passengers choose not to fly. The ripple effect is immense, severely damaging the overall tourism industry.”

Study takeaways 

1. Flight Cancellations for Commercial Gain: Airlines have been found to cancel flights not just for operational or weather-related reasons but also to drive profits.

2. Impact on Travel Intermediaries: The primary cost for travel intermediaries is the time staff spend reorganising trips, which includes rebooking flights, accommodations, and other services. This results in lost opportunities and revenue.

3. Effect on Tourism Expenditure: A 5% decrease in travellers due to flight cancellations could lead to an estimated loss of AUD405 million in domestic tourism from Australia’s top ten airports annually. Sydney Airport’s cancellations alone could reduce domestic tourism expenditure by AUD143 million and AUD572 million annually.

4. Airports’ Revenue Losses: The top 10 Australian airports face an estimated annual loss of AUD4.8 million in aeronautical revenue and AUD1.5 million in non-aeronautical revenue per year, assuming a 5% passenger drop due to cancellations.

5. Passenger Inconveniences and Costs: Passengers bear out-of-pocket costs and lose valuable time due to cancellations. The opportunity cost for delayed passengers can be significant, particularly for business travellers. Cancellations also result in seats being withdrawn from the market, raising fares for those who have yet to book a flight.

Airport timeslots

Airlines can maintain the practice of cancellations without losing valuable airport access due to the 80/20 rule. Under the rule, airlines can keep a specific timeslot as long as they don’t cancel more than 20% of flights in that slot over the year.  

“The 80-20 rule is not fit for purpose. A 95-5 rule would be more appropriate to encourage airlines to operate to schedule,” Long commented. 

“This research highlights critical issues within our industry. It’s not just about the airports; it’s about understanding where the chokepoints are and addressing them,” he concluded.

(Source: ATIA)

UNWTO tracks 2024 recovery trends

SINGAPORE, 25 January 2024: International tourism should fully recover to pre-pandemic levels in 2024, with initial estimates pointing to 2% growth above what was recorded in  2019, UNWTO forecast reported last week

UNWTO’s Tourism Recovery Tracker reported that international air capacity and passenger demand recovered about 90% of pre-pandemic levels through October 2023 (IATA). Global occupancy rates in accommodation establishments reached 65% in November, slightly above 62% in November 2022 (based on STR data).

Photo credit: UNWTO

However, the forecast by UNWTO remains subject to the pace of recovery in Asia and the evolution of existing economic and geopolitical downside risks.  

UNWTO’s Tourism Confidence Index survey reflects a positive outlook based on a poll of tourism professionals. 67% of them indicated better or much better prospects for 2024 compared to 2023. 

Some 28% expect similar performance, while only 6% expect tourism performance in 2024 to be worse than last year. 

Key factors

The evolution of the Hamas-Israel conflict may disrupt travel in the Middle East and impact traveller confidence. Uncertainty derived from the Russian aggression against Ukraine and other mounting geopolitical tensions continues to weigh on confidence.

There is significant room for recovery across Asia. Reopening several source markets and destinations will boost regional and global recovery.

Chinese outbound and inbound tourism is expected to accelerate in 2024 due to visa facilitation and improved air capacity. China is applying for visa-free travel for citizens of France, Germany, Italy, the Netherlands, Spain and Malaysia for a year to 30 November 2024.

Visa and travel facilitation measures will promote travel to and around the Middle East and Africa with the Gulf Cooperation Council (GCC) countries to implement a unified tourist visa, similar to the Schengen visa, and measures to facilitate intra-African travel in Kenya and Rwanda.

Europe is expected to drive results again in 2024. Romania and Bulgaria will join the Schengen area of free movement in March, and Paris will host the Summer Olympics in July and August.

Strong travel from the US, backed by a strong US dollar, will continue to benefit destinations in the Americas and beyond. As in 2023, robust source markets in Europe, the Americas and the Middle East will continue to fuel tourism flows and spending worldwide.

Economic and geopolitical headwinds continue to pose significant challenges to the sustained recovery of international tourism and confidence levels. 

Persisting inflation, high-interest rates, volatile oil prices, and disruptions to trade can continue to impact transport and accommodation costs in 2024.

Against this backdrop, tourists increasingly seek value for money and travel closer to home. Sustainable practices and adaptability will also play an increasing role in consumer choice. 

Staff shortages remain a critical issue, as tourism businesses face a shortfall in labour to cope with high demand.

For the full report visit https://www.unwto.org/news/international-tourism-to-reach-pre-pandemic-levels-in-2024?utm_source=news&utm_medium=crm 

(Source: UNWTO)

Resorts World One visits Manila

HONG KONG, 25 January 2024: Resorts World Cruises kicks start 2024 with the maiden voyage of the Resorts World One cruise ship to the Philippines on Tuesday.

As part of the ship’s inaugural five-night sailing from Hong Kong, the Resorts World One arrived at Manila Tuesday and was scheduled to arrive in Boracay on 24 January with over 2,700 guests and crew onboard.

With the Resorts World One homeport in Hong Kong year-round, the cruise ship offers itineraries to different destinations for two, three and five-night cruises, which include the Philippines for this special sailing, complementing current destinations to Sanya, Okinawa (Naha and Miyakojima), as well as to Danang and Nha Trang in Vietnam. 

Thai AirAsia adds Indian destination

BANGKOK, 25 January 2024: AirAsia is introducing a new route from Bangkok’s Don Mueang airport to Visakhapatnam in India, starting 9 April 2024.

The low-cost airline schedules three weekly flights to the seaside city in India’s east with fares starting from THB 2,900 one-way.

With this new route, AirAsia will deliver the widest network connecting Thailand to India and introduce a new side of India as Visakhapatnam is a major port city and hub of commerce.

AirAsia Thailand chief executive officer Santisuk Klongchaiya said: “AirAsia plans to continue its expansion in India to tap on the market’s high tourism potential. We believe this new route will create an important opportunity for stimulating tourism and economic growth between both nations.”

AirAsia Thailand now flies 10 routes between India and Bangkok in Thailand, serving flights to Kolkata, Chennai, Jaipur, Kochi, Bangalore, Gaya, Lucknow, Ahmedabad, Guwahati and latest addition Visakhapatnam. Indian travellers comprise 80 to 90% of passengers on the routes, maintaining an average load factor of 87%, indicating India is a robust and growing market responsive to AirAsia.

Bangkok tops Agoda booking trends 

BANGKOK, 24 January 2024: Bangkok is the most popular international city destination for the upcoming Lunar New Year holiday (10 February) based on booking data released by the digital travel platform Agoda. 

Thailand is also one of the most popular destinations to celebrate the festivities, trailing only Japan in the popularity chart. Agoda’s booking data highlights Malaysia, China, South Korea, Singapore, and Japan as top destinations alongside Thailand, benefiting from a surge in Lunar New Year bookings.

Photo credit: Agoda

Although officially celebrated on Saturday, 10 February, the Lunar New Year holiday extends to a long weekend or even a week-long celebration in China, Japan (Spring Holiday) and Vietnam (Tet). The holiday also referred to as Chinese New Year, is traditionally one of the peak travel moments for tourists from mainland China. China is back in contention for the first time since 2019, ranking the third top source market overall for the top inbound destinations: Indonesia, Malaysia, Philippines, South Korea, Thailand, and Vietnam.

Thai travellers also explore diverse destinations abroad, with Japan, Taiwan, South Korea, Hong Kong, and Vietnam being the top choices. The preferred international cities for Thai travellers include Tokyo, Taipei, Seoul, Osaka, and Hong Kong.

Agoda’s associate vice president for Southeast Asia Enric Casals commented: “The Lunar New Year period is a significant time for travel, and this year is no different. Since 2019, hotels and destinations have diversified the appeal of their markets with visa-free travel and other incentives. That has made them less reliant on one market and more appealing to new travellers. But the travel industry will undoubtedly look forward to welcoming back more travellers from China this year.”

Regionally, the trends echo a similar sentiment. Most outbound travellers are from South Korea, Singapore, China, Hong Kong, and Japan. They are visiting Japan, Thailand, Malaysia, Indonesia, and Vietnam, showcasing various cultural and leisure options. Bangkok, Tokyo, Seoul, and Osaka remain appealing, underscoring the region’s rich urban and cultural diversity.

(Source: Agoda)

Luxury tented camp targets corporates

CHIANG RAI, 24 January 2024: The recently opened Visama Mae Chan tented camp in northern Thailand has announced it is pitching for private corporate buyouts.

The five-star tented camp opened in December during Chiang Rai’s short peak season that peters out in late February. During the long low season, sales will target corporates that take over the entire camp for board meetings, strategic planning retreats, and incentive reward bookings. It is also making the property available for private takeovers by families, groups of friends and intimate wedding parties.

Each group will have a dedicated in-house event manager to ensure smooth proceedings. The camp’s founders, VHG Hospitality Asia, have created a service culture and property that can host 10 executives and their partners in 10 safari tents imported from South Africa and adapted for northern Thailand.

VHG Hospitality Asia co-founder Christopher Stafford, known for pioneering hospitality projects such as I37 Pillars Hotel Chiang Mai and at Anantara Hotels, says the property team can create a large variety of activities both inside the tented camp and in the surrounding areas of forested hills, rice paddies and small villages.

He cites guided hiking and biking trips, cooking classes, spa therapy, yoga, Tai Chi, archery, painting and pottery classes. Evocative temples, mountain landscapes and hill tribe villages are a short trip away.

Indoors and outdoors

The camp lends itself to both indoor and outdoor meetings. In the evening, star-lit fire-side movie screenings and BBQs are available at the Ambalama lounge area.

The tents stand on raised platforms in a hill country setting and range in size from 48 to 80 sqm (517-860 sq ft), including a 12 or 20 sqm (130-215 sq ft) veranda. The largest tent has two bedrooms.

Amenities in all tents include air conditioning, mobile phone with concierge app, French press coffee pots, WiFi, rain showers, safety deposit box, refrigerator, his and her bathrobes and slippers, bathtub, large balconies and an evening turndown service.

Corporate groups giving back

Visama Mae Chan partners with the neighbouring Friends of Thai Daughters Foundation. Three young women university graduates are already working at the resort thanks to the foundation. There are opportunities for companies to support the charity’s work while at the camp.

Visama Mae Chan is a 40-minute car transfer from Chiang Rai International Airport. Flight times from Bangkok are one hour and 25 minutes and two hours and 10 minutes from Phuket.

Winning ways debut at Centara Osaka

BANGKOK, 24 January 2024: Centara Hotels & Resorts, Thailand’s leading hotel operator, is proud to announce its debut property in Japan, Centara Grand Hotel Osaka, received the prestigious Nikkei Asia Award at The 2023 Nikkei Excellent Products and Services Awards, sponsored by Nikkei Inc.

Selecting Centara Grand Hotel Osaka as the winner from a competitive pool of 228 entries, this esteemed accolade, now in its 42nd edition, celebrates innovation and excellence in new products and services each year. This recognition underscores the hotel’s remarkable performance since its inauguration in July 2023, when a milestone of 50% of reservations had been secured before its grand opening.

Centara Grand Osaka’s strategic initiatives have garnered acclaim, specifically in catering to the burgeoning accommodation demand from Southeast Asia and Chinese tourists. This success owes itself to the hotel’s astute responsiveness to market dynamics, capitalising on favourable exchange rates driven by the weakened yen. With this pioneering approach to embracing the Japanese market, the hotel has set itself apart with a steadfast commitment to providing world-class service and industry leadership.

Centara Grand Hotel Osaka is honoured to have won the 2023 Nikkei Asia Award and looks forward to future successes as it continues to offer guests an unforgettable experience through its stunning fusion of warm hospitality, Thai family values, and the beauty of Japanese culture.

For bookings or more information, please visit www.centarahotelsresorts.com/ and seize the opportunity to create lifetime memories with Centara Hotels & Resorts.

Carnival in Spain

SINGAPORE, 24 January 2024: There’s an open invitation to join carnival time in Spain by exploring spectacular festivals celebrated across the country. 

Carnival is usually held in February or March, with the dates depending on the year, although some places even hold them earlier in January. The festivals are noted for humour, parodies, and costumes in the streets of Spanish towns and cities, all of which have their traditions.

Carnival in Spain is a cacophony of colourful outfits, dancing, music and parties. The largest celebrations occur on the Canary Island of Tenerife, in the coastal city of Cadiz and the seaside town of Sitges, near Barcelona.

Here are six amazing Spanish carnivals declared ‘Festivals of International Tourist Interest’.

Carnival in Cadiz

Cadiz, in Andalusia, is the carnival of “comparsas”, “coros” and “chirigotas”: songs full of irony and criticism that are written by the different groups who participate in the fiesta. Explore the town centre and immerse yourself in an unbridled freedom and fun atmosphere. The festival runs from 8 to 18 February.

Carnival in Santa Cruz de Tenerife

One of the world’s biggest carnivals awaits you in the capital of the island of Tenerife. Join in the parades and be amazed by the imaginative, fancy and eye-catching costumes of the Carnival Queen hopefuls. Lose yourself in this celebration’s music, rhythm and joy with people from all over the planet. The festival ends on 18 February.

Carnival in Águilas

Another of the most famous carnivals is Águilas (Murcia). This festival is full of colour and features a multitude of parades and competitions in which the spectacular costumes take centre stage. Two of its traditions are particularly famous. The throwing of cascarones (eggs stuffed with confetti) and drinking “cuerva”, a drink many describe as a “magic potion” that awakens the carnival spirit. The festival runs from 8 to 17 February.

Entroido of Xinzo de Limia

This Galician festival has the longest carnival programme in Spain. It begins on Fareleiro Sunday (three weeks before Carnival Sunday) and ends on Piñata Sunday. The parade of floats and troupes is led by a group of traditional masked characters called “pantallas” who wear belts with bells. They are responsible for ensuring people dress up and are the top stars of this celebration. Carnival Tuesday is the most important day. The festival ends on 18 February.

Carnival in Badajoz

Dozens of carnival bands, known as comparsas, and thousands of people participate in the great Carnival Sunday Comparsas Parade. The festivities also include the Murgas musical competition and the Burial of the Sardine. The festival runs from 9 to 13 February.

Festivities during Carnival in Las Palmas de Gran Canaria

The city is flooded with people, colour and fun during these festivities, which have occurred since 1574. Highlights include the Great Parade, which attracts tens of thousands of people and stretches more than seven kilometres, and the Gala of the Carnival Queen, where the competitors wear stunning costumes of feathers and rhinestones. The Drag Queen Gala is another highlight. The festival ends on 18 February.

All over Spain

But these aren’t the only major carnivals held in Spain. There are others in many other locations, and they are always full of originality and joy.

At Verín Carnival (Galicia) highlights include the “fariñadas” (flour fights) and the strange masked figure of Cigarrón. We can recommend several other carnivals of national tourist interest, including Villarrobledo, La Bañeza, Ciudad Rodrigo (Toro Carnival), Miguelturra, Alcázar de San Juan (Carnavalcázar), Cebreros, Herencia and La Vijanera in Cantabria.

For more on Spain’s travel experiences, visit https://www.spain.info/en/
For the annual calendar of events in Spain check https://www.spain.info/en/calendar/ 

(Source: Spain Tourism Board – Southeast Asia, Australia & New Zealand).

Priority Pass rebrands annual awards

SINGAPORE, 24 January 2024: Priority Pass, operated by Collinson, is relaunching its annual lounge awards for 2024 with a new brand name: Priority Pass Excellence Awards.

Formerly known as the Priority Pass Lounge of the Year Awards, the awards programme has undergone a major revamp for its 16th edition.

The awards honour the outstanding lounge experience delivered by the global Priority Pass network, which recently reached the milestone of 1,500 lounges at over 700 airports in 145 countries.

The awards relaunch comes off the back of a landmark year for Collinson. In 2023, the company grew its global network by 56% compared to the previous year, adding 244 lounges and 84 dining, spa and relaxation experiences – and reported a record year for global lounge visits, that increased 57% in 2023. 

Three award categories

This year, the Priority Pass Excellence Awards adds two new categories;  ‘Pioneer of the Year’ and ‘All-Star of the Year’ to celebrate the full capabilities of the Priority Pass partner network. 

Lounge of the Year – based on Priority Pass Member ratings and reviews, this award highlights the best lounges and experiences that the brand’s network has to offer

Pioneer of the Year – shining a light on the lounges and experiences that are demonstrating the greatest innovation to supercharge the service they provide to Priority Pass members.

All-Star of the Year – recognising the lounge employees who truly go above and beyond to deliver world-class service excellence for Priority Pass Members

The Priority Pass Excellence Awards winners will be announced in March 2024.

ONYX signs Shama Johor Bahru

SINGAPORE, 24 January 2024: ONYX Hospitality Group, headquartered in Bangkok, Thailand, will manage the Shama Suasana Johor Bahru in Malaysia, marking the opening of the first Shama property in the country. 

Malaysia is the first country, outside of Thailand, to have three ONYX brands: Amari, OZO, and Shama.

(From Left to Right) Tun Musa Hitam, Chairman Emeritus of UMLand Bhd, Dennis Ng Yew Khim, Group Managing Director of UMLand Bhd, Yuthachai Charanachitta, CEO of ONYX Hospitality Group and Harold Olaya Leon, SVP. Head of Operations of ONYX Hospitality Group.

The signing ceremony took place on 18 January 2024 at Amari Kuala Lumpur in Malaysia, with Dennis Ng Yew Khim, Group Managing Director, United Malayan Land Bhd, and Yuthachai Charanachitta, CEO of ONYX Hospitality Group. The opening is set for Q1 2024. 

Owned by United Malayan Land (UMLand), a property developer in Malaysia, it’s the second UMLand property under ONYX Hospitality Group’s management. The other is the five-star Amari Johor Bahru, which opened in 2017. 

The 207-room Shama Suasana Johor Bahru is located in the heart of the city on a site next to the Zenith Lifestyle Centre, Johor Bahru’s premier entertainment hub, and within walking distance to malls, department stores, and Johor Bahru’s Heritage Trail. It is within walking distance of the Rapid Transport System, the customs, immigration and quarantine checkpoint for cars, buses, and the JB Sentral train station.