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IATA maps growth in passenger demand

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TTR WEEKLY
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SINGAPORE, 7 May 2024: The International Air Transport Association (IATA) released its latest data this week, indicating global passenger demand measured in revenue passenger kilometres (RPKs) was up 13.8% during March 2024.

Total capacity, measured in available seat kilometres (ASK), was up 12.3% year-on-year. The March load factor was 82.0% (+1.0ppt compared to March 2023).

International demand rose 18.9% compared to March 2023; capacity was up 18.8% year-on-year, and the load factor improved to 81.6% (+0.1ppt on March 2023).

Domestic demand rose 6.6% compared to March 2023; capacity was up 3.4% year-on-year, and the load factor was 82.6% (+2.5ppt compared to March 2023).

“Travel demand is strong. And there is every indication that this should continue into the peak Northern Summer travel season. It is critical that we have the capacity to meet this demand and ensure a hassle-free travel experience for passengers. That means making urgent progress in resolving supply chain issues, fully staffing airports and air traffic management, and operating efficiently. While airlines are prepared for customer care and assistance when operational issues arise, they are fed-up with bearing the cost when delays and cancellations result from poor preparation in other parts of the value chain,” said IATA’s Director General Willie Walsh.

Regional Breakdown – International Passenger Markets

All regions showed strong growth for international passenger markets in March 2024 compared to March 2023. Load factor performance could have been better, falling year-on-year in three of the six regions.

Asia-Pacific airlines continue to lead the way, with a 38.5% year-on-year increase in demand. Capacity increased 37.4% year-on-year, and the load factor rose to 85.6% (+0.7ppt compared to March 2023), the highest of all regions. Major routes from Asia-Pacific display outstanding growth, although the number of scheduled air services from China to North America is only 16.5% of pre-pandemic levels.

European carriers saw an 11.6% year-on-year increase in demand. Capacity increased 11.4% year-on-year, and the load factor was 79.9% (up just 0.1ppt compared to March 2023).

Middle Eastern airlines saw a 10.8% year-on-year increase in demand. Capacity increased by 13.9% year-on-year, and the load factor fell by 2.1ppt to 77.5% compared to March 2023.

North American carriers saw a 14.5% year-on-year increase in demand. Capacity increased 14.8% year-on-year, and the load factor fell to 84.7% (-0.2ppt compared to March 2023).

Latin American airlines saw a 19.7% year-on-year increase in demand, an 18.3% increase in capacity, and a load factor of 84.3% (+0.9ppt compared to March 2023).

African airlines saw an 8.1% year-on-year increase in demand, and capacity was up 11% year-on-year. The load factor fell to 70.3% (-1.9ppt compared to March 2023).

Kempinski takes shape on the Saigon River

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TTR WEEKLY
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SINGAPORE, 7 May 2024: Kempinski Hotels, Europe’s oldest luxury hotel company, is venturing into Vietnam with a waterfront property on the banks of the Saigon River. 

The 100-room hotel is being developed in cooperation with Vietnamese property developer Ecopark Corporation, which owns other luxury hotels across Vietnam and has a portfolio of real estate projects that include residences, schools, retail and universities.

Photo credit: Kempinski. Saigon River site for a new luxury resort.

Situated in Dong Nai on the outskirts of Ho Chi Minh City, Kempinski Saigon River is part of a broader 55-hectare development that includes residences, schools, a sports club, and retail areas along 700 metres of riverfront. The development is connected to Ho Chi Minh City via a 45-minute speedboat service.

Dong Nai is undergoing a major infrastructure expansion and improvement project to reduce travel times and foster economic growth. The project includes road and railway network improvements, waterways, and a new airport. Currently under construction, Long Thanh International Airport will be among the largest in the world when complete, with a capacity for up to 100 million passengers per year.

Air India boosts Phuket flights

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TTR WEEKLY
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SINGAPORE, 7 May 2024: Air India confirmed last week in Facebook posts that it will increase flights between India’s capital, Delhi, and Thailand’s holiday island, Phuket, from daily to 13 flights weekly, effective 1 June. (*Report updated 7 May re visa-free entry Thailand. See below).

The route is served by a 140-seat Airbus A320, with daily flights departing Delhi at 0205 and arriving in Phuket at 0810.

The additional six flights, increasing frequencies to 13 weekly, will depart Delhi at 1100 and arrive in Phuket at 1715. Advance schedules confirm the additional six flights will depart on Monday, Tuesday, Thursday, Friday, Saturday and Sunday. 

Indian passport holders can visit Thailand for up to 30 days without applying for a visa, but the temporary concession ends on 10 May after completing one year. The Thai government may consider extending the concession date until the 31 October 2024 or even until 30 April 2025. However, there has been no announcement from the Tourism Authority of Thailand or the country’s Ministry of Foreign Affairs so far. As long as that is the case Indian holiday makers will once more need a visa (possible by applying online or on arrival at the Phuket airport). Air India’s promotions clearly state that the visa-free concession ends on 10 May. However, adding another six flights weekly on the Delhi-Phuket route on 1 June could suggest Air India has an inside track on information and is optimisticvisa-free status for Indian tourists could be extended. But until there is an announcement stating otherwise the concession ends midnight on 10 May.

Meanwhile, the airline confirmed it will resume flights from Delhi to Zurich in Switzerland effective 16 June, after a 24-year gap. A Boeing 787-8 will serve the route, flying four times weekly on Monday, Wednesday, Friday and Sunday.

Flight AI151 will depart Delhi at 1405 and arrive in Zurich at 1915.
Flight AI152 will depart Zurich at 2050 and arrive in Delhi at 0805 plus a day.

Report updated on visa-free stay for Indian tourists visiting Thailand.

*Earlier today, Tuesday, 7 May 2024, the Thai Government PR Department reported Prime Minister Srettha Thavisin confirmed the government has extended the visa exemption period, that was due to expire on 10 May, for another six months until 11 November 2024 for both Indian and Taiwanese passports holders. The PM said the decision to extend the visa exemption for the two nationalities was “special and temporary to boost tourism and the Thai economy.”

Turkish ready to fly daily to Bali

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TTR WEEKLY
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SINGAPORE, 7 May 2024: Turkish Airlines will increase direct flights from Istanbul to Denpasar Bali from five weekly to daily, effective 28 October.

The airline filed changes to its schedule for the winter timetable that starts 28 October and ends 31 March 2025 last week, indicating it will schedule daily flights using an Airbus A350-900 for the 13-hour and 15-minute nonstop flight.

Flight TK66 will depart Istanbul (IST) daily at 0150 and arrive in Denpasar (DPS) Bali at 1910.
Flight TK67 will depart Denpasar (DPS) Bali daily at 2105 and arrive in Istanbul (IST) at 0540 plus one day.

Currently, the airline flies the route five times weekly, departing Istanbul on Mondays, Tuesdays, Thursdays, Fridays, and Sundays.

It’s the only airline flying nonstop to Bali, and the average fare on the route this year is USD1,660 roundtrip. A check of the booking website FlightHub.com displays the cheapest roundtrip fare on Turkish Airlines for November 2024  travel dates at USD1,229, including taxes and fees. 

Jakarta: Down to daily 

Meanwhile, effective 28 October, the airline will reduce flights on the Istanbul-Jakarta route, served by A350-900 aircraft, from nine weekly to daily. 

The two flights (TK508/509) scheduled to discontinue in late October serve the Indonesian capital on Tuesday and Friday.

Flight TK56 will depart Istanbul (IST) daily at 0235 and arrive in Jakarta (CGK) at 1755.
Flight TK57 will depart Jakarta (CGK) daily at 2105 and arrive in Istanbul (IST) at 0530 plus a day.

AirAsia flies to Ahmedabad

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TTR WEEKLY
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KUALA LUMPUR, 6 May 2024: AirAsia introduced flights from Kuala Lumpur, Malaysia, to Ahmedabad, India’s first UNESCO World Heritage City, last week.

The new route, with four weekly flights using A320s, allows travellers to explore Ahmedabad’s rich cultural heritage and Kuala Lumpur’s vibrant city life at affordable prices. 

The first flight departed Kuala Lumpur on 3 May.

Tourism Malaysia Deputy Director South Asia Unit En Solehuddin Ahmad said: “We wholeheartedly commend AirAsia for their continuous efforts in further expanding air connectivity between our two nations, now with 15 and counting direct routes from India. With this new route and AirAsia’s great value fares, more travellers can visit our beautiful country affordably, be it for leisure or business. This is also a much-welcomed initiative following the government’s recent announcement of visa-free entry for Indian nationals to Malaysia.”

AirAsia Group Chief Commercial Officer Paul Carroll added: “This marks a significant step in our ever-evolving journey to cement our foothold in India, one of our biggest and fastest-growing markets. We also hope that this connectivity will allow more travellers from India to explore the region beyond Malaysia thanks to our seamless Fly-Through options. We look forward to kickstarting more routes and creating more memorable travel experiences for our trusted guests.”

AirAsia now operates a network servicing 15 international routes directly between Malaysia and India with 78 flights weekly on short-haul airline AirAsia Malaysia  (AK), from the cities of Trivandrum, Chennai, Tiruchirappalli, Kochi, Hyderabad, Bengaluru, Kolkata, Ahmedabad, Jaipur, Visakhapatnam, Bhubaneswar (flights commence on 28 May 2024) as well as Kozhikode and Guwahati (flights commence on 1 Aug 2024). 

Medium-haul affiliate AirAsia X Malaysia ( D7) also provides two direct routes between Kuala Lumpur, New Delhi, and Amritsar, with eight weekly flights. The continued growth in AirAsia services to and from India ensures a comprehensive and seamless travel experience for guests across India and beyond, connecting them to over 130 destinations on the widest low-cost network in Asia. 

Silkway Travel Asia joins Adventure Inc

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TTR WEEKLY
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SINGAPORE, 6 May 2024: Singapore-based full-service travel management company Silkway Travel Asia Pte Ltd (“Silkway Travel Asia”) has been acquired by Adventure Inc, a leading Japanese online travel agency.

With this acquisition, Silkway Travel Asia becomes a wholly owned subsidiary of Adventure APAC and marks a significant expansion of Adventure’s presence in the region. The deal will allow Adventure, which reports an annual turnover of JPY20 billion (SGD178 million), to leverage Silkway Travel Asia’s established presence and expertise in both Singapore and the region. and cater to the diverse travel preferences of Asian customers as part of the company’s strategic expansion into Southeast Asia. The integration of Silkway 

Travel Asia’s unique offerings in Adventure’s extensive portfolio ensure travellers will enjoy unparalleled access to tailored travel experiences.

Silkway Travel Asia will also gain access to Adventure’s air ticket reservation platform ‘skyticket’, which streamlines the booking process for customers by allowing them to search, book, and pay for flights through Google’s search engine without needing to be redirected to other websites.

“Silkway Travel Asia will continue to expand its portfolio of multinational corporations and small and medium enterprise clientele, providing extensive and comprehensive corporate travel products and services management,” said Silkway Travel Asia Director and Co-founder James Tang.

“Travel management is more than a service; it’s a strategic partnership, guiding organisations towards smarter, more cost-effective travel solutions. By incorporating enhanced travel booking tools, in partnership with our travel technology partners, we can increase productivity and offer a faster turnaround service to our valued clients.” 

The acquisition will not impact Silkway Travel Asia’s core operations in Singapore. It will retain its branding, name, management team, and product offerings. Travel industry veterans James Tang and Albert Hong will continue to serve as company directors.

“We are proud of what we have achieved so far at Silkway Travel Asia over the past three years, and we’re thrilled to embark on the next stage of our growth with Adventure,” added Silkway Travel Asia Director and Co-founder Albert Hong. “This acquisition signifies Adventure’s confidence in our offerings and long-term strategy to expand our operations further in Singapore and Southeast Asia, as travel demand continues to grow post-COVID era. With Adventure’s cutting-edge products and regional network, we are confident that this deal will create new synergies for both companies, our customers, and our partners.”

Adventure Chief Executive Officer Shunichi Nakamura said: “Silkway Travel Asia’s expertise in the travel market in Southeast Asia makes it a valuable addition to the Adventure family. Both companies share a common goal of creating impactful and sustainable travel experiences that resonate with the evolving desires of today’s modern travellers. We are excited to continue pioneering innovative travel solutions for  customers with Silkway Travel Asia.”

About Silkway Travel Asia
Established in 2020, Silkway Travel Asia is a full-service travel management company offering tailored travel experiences for both corporate and leisure travellers.
Visit https://www.silkwaytravelasia.com/.

About Adventure Inc
Founded in 2006 and headquartered in Tokyo, Japan, Adventure Inc. (Adventure) is an online travel agency with subsidiaries and affiliates across Asia, including South Korea, Philippines, India, Bangladesh and Singapore. Find out more at https://adventurekk.com/.

ATM embraces a net zero future

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TTR WEEKLY
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DUBAI, 6 May 2024: The 31st edition of ATM opened Monday at the Dubai World Trade Centre, welcoming more than 2,300 exhibitors and representatives from more than 165 countries, with 41,000 travel and hospitality executives expected to attend by the time the event closes  Thursday evening.

From startups to established brands, ATM 2024 will highlight how innovators enhance customer experiences, drive efficiencies, and accelerate progress towards the industry’s net-zero future. 

Photo credit: ATM.

Arabian Travel Market Exhibition Director ME Danielle Curtis commented: “ATM 2024 is gearing up for an exciting lineup spread across two stages, with the Global Stage returning alongside the new Future Stage. The conference agenda will feature key industry speakers worldwide and address the emerging trends fueling the travel and tourism sector’s growth.” 

The number of participating hotel brands for ATM 2024 has increased by 21% year-on-year, with a 58% rise in new Travel Technology products showcased. Several new destinations will be introduced at ATM 2024, including China, Macao, Kenya, Guatemala, and Columbia, while returning countries include Spain and France, among many others. Upticks across all key verticals with year-on-year growth across all regions participation, including ME 28%, Asia and Europe 34%, and Africa 26%.

A dedicated India Summit will take place on the opening day of ATM, highlighting a recent outbound travel boom in the market. Titled ‘Unlocking the True Potential of Inbound Indian Travellers,’ the Summit will explore the dynamics of India as a key source market for tourism growth and current and future opportunities. 

Emirates Deputy President and Chief Commercial Officer Adnan Kazim said: “We’re thrilled to see growth in visitor numbers to ATM. It reflects confidence in our industry and ATM’s importance on the global stage. We are proud of our role in the growth of ATM as an industry event and our home city, Dubai, which is at the forefront of global tourism. This year, Emirates will display our latest products and a dedicated area showcasing our sustainable aviation practices. We also look forward to connecting with our industry partners across the travel ecosystem.” 

Thailand’s tourism tax back on the table

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TTR WEEKLY
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BANGKOK, 6 May 2024: Thailand is revisiting a controversial THB300 tourism tax proposal that has been on and off the table for five years. 

The Federation of Thai Tourism Association recently confirmed it is preparing a white paper on the pros and cons at a time when the country is expecting record visitor arrivals that could breach the 40 million mark by the end of 2024.

12 million plus visits between 1 January and 30 April and THB583,902 million in revenue. (The ministry has not posted an English language snapshot since the Covid era.)

Resurrecting the tourism tax proposal for yet another review could gain traction this time as the country faces an unprecedented boom in tourism. It has sparked calls for a fund to restore and reverse negative impacts on natural and cultural assets. Ministry of Tourism and Sports’s latest release indicate the country welcomed 12,127447 visitors from 1 January to 30 April 2024, an increase of 39% compared with the same period in 2023. Revenue earned from the visits was estimated at 

THB583,902 million. This outstanding performance is reminiscent of past Visit Thailand Years, which pushed arrival increases into the double-digit zone.

The Federation of Thai Travel Tourism Association is ready to support the introduction of the tax, marking a significant change of heart. In the past, the proposal failed to attract attention from associations representing tourism’s private sector, particularly during the post-Covid recovery years due to the colossal losses incurred since 2020.

However, support for the government to implement a new tax to curb overtourism will be short-lived if the collection process is inconvenient, creating long queues at airports or land checkpoints. Then there is the question of transparency. The only practical option to ensure transparency is to add the tax to the cost of airline tickets and offer a handling fee to the airlines for managing the process. That would leave the thorny issue of how to collect the tax from travellers at land borders. Considering the collection costs and inevitable leakage, exempting overland travellers might be more feasible until there is a scam-proof digital solution to pay the fee directly to an online government wallet. It would also be an incentive to encourage visitors to explore lesser-known destinations using land transport. 

The ministry snapshot of the top five source markets ranked China top with 2,351,909 visits followed by Malaysia (1,569,856), Russia (767,210), South Korea (679,481) and India (643,587).

The figures are based on preliminary data from the Immigration Bureau at airports and overland checkpoints, excluding border pass travellers.

Meanwhile, the Tourism Authority of Thailand reported Q1 data (January to March). Visits reached 9,381,098, up by 1.3 million compared with Q1 2023, a 44% increase.

Factors supporting the surge in visits included a robust turnover of visitors during the Chinese New Year Festival, driven by visa-free entry and the introduction of more flights on routes from China, promotional campaigns in key source markets, and the impact of concerts and special events. However, rising international airfares continued to impact travel to Thailand.

Tourism Malaysia sets out VMY 2026 goals

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TTR WEEKLY
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KUALA LUMPUR, 6 May 2024: Tourism Malaysia says the nationwide Visit Malaysia 2026 campaign should attract around 35.6 million tourists and generate MYR147.1 billion in receipts.

The VM 2026 roadmap is built around three core strategies – creating demand, increasing traffic, and prioritising target markets. Key initiatives include branding and marketing blitz, strategic partnerships for joint promotions/tactical campaigns and market segmentation.

YB Dato Sri Tiong King Sing, Minister of Tourism, Arts and Culture, delivering his mandate at the Tourism Malaysia Strategic Direction Towards VM2026 Networking Session.

Malaysia’s notable tourism achievements in in Q1 2024 are encouraging, the national tourism agency reported last week. From January to March, Malaysia attracted 5.8 million visitors, representing a remarkable growth of 32.5% compared to 4.3 million during the same quarter last year.

The top 10 markets contributing to this success were Singapore, Indonesia, China, Thailand, Brunei, India, South Korea, the United Kingdom, Australia, and the Philippines.

Key target markets are prioritised into three tiers, led by first-level priorities such as China, India, Indonesia, Vietnam and Australia. The second-level priorities include South Korea, Gulf Cooperation Council (GCC) countries and the United Kingdom, followed by third-level priorities comprising Chinese Taipei and Germany. Apart from traditional markets such as Brunei, Thailand and Singapore, the focus is also on emerging markets like Pakistan and Bangladesh.

Meanwhile, tourism products and travel experiences will be tailored for niche segments like nature-based tourism, experiential tourism, medical and wellness tourism, responsible tourism, luxury, weddings, Muslim-friendly and gastronomy travel.

Minister of Tourism, Arts and Culture YB Dato Sri Tiong King Sing said: “Our multipronged VM 2026 strategy provides a comprehensive framework to boost Malaysia’s visibility, enhance destination accessibility and elevate our tourism offerings. Through focused efforts and strategic collaborations, we are confident of achieving our yearly arrivals and target receipts in the run-up to VM 2026.”

(SOURCE: Tourism Malaysia)

Phuket to host GSTC 2026

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TTR WEEKLY
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BANGKOK, 6 May 2024: Thailand has won the bid to host the 2026 Global Sustainable Tourism Conference (GSTC 2026) on Phuket Island, the country’s most popular beach destination.

The Thailand Convention and Exhibition Bureau, the Phuket Province, Sustainable Tourism Development Foundation (STDF), Tourism Authority of Thailand (TAT) and Designated Areas for Sustainable Tourism Administration (Public Organization) (DASTA) confirmed Phuket will host the event in April 2026.

TCEB president Chiruit Isarangkun Na Ayuthaya commented: “Hosting GSTC 2026 in Phuket province is a great victory and a significant milestone for its sustainable tourism and showing the potential of Phuket as well for six (destinations that make up the) Andaman Wellness Economic Corridor — Phuket, Krabi, Phang-nga, Ranong, Trang and Satun.” 

The GSTC 2026 will draw 700 participants from 60 countries, a testament to its global significance. This influx of international visitors should generate over THB50 million in revenue, bolstering Phuket’s economy.

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