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AAPA tracks positive 2023 trends

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TTR WEEKLY
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KUALA LUMPUR, 1 February 2024: the Association of Asia Pacific Airlines’ preliminary traffic figures for 2023 released on Tuesday showed robust growth in international passenger demand, underpinned by a strong appetite for travel following the removal of the region’s remaining pandemic-related travel restrictions.

For the year, the region’s airlines recorded a 161.0% increase in the number of international passengers carried to a combined total of 278.5 million. In revenue passenger kilometres (RPK) terms, demand rose by 131.0%, reflecting strength in short-haul markets. The increase in demand was supported by a 106.2% expansion in available seat capacity for the year as airlines restored flights within and across regions. The international passenger load factor returned to pre-pandemic levels with an average of 80.9% in 2023, an 8.7 percentage point increase compared to 2022.

Meanwhile, air cargo markets entered 2023, weighed by multiple headwinds, including inflation, a strong US dollar, government policy dampening trade activity, and household spending power. Nevertheless, the year’s final months saw demand grow strongly, led by increased e-commerce shipments. In December, international air cargo demand as measured in freight tonne kilometres (FTK) recorded a 13.2% year-on-year growth, further reducing the decline recorded for 2023 to 2.8%. Offered freight capacity rose by 6.4%, resulting in a 5.8 percentage point decline in the average international freight load factor to 60.7% for the year.

Commenting on the results, AAPA director-general Subhas Menon said: “International passenger traffic carried by Asian airlines grew solidly by 161% in 2023. Passenger numbers averaged 72% of pre-pandemic 2019 levels, up significantly from 28% in 2022.

“Whilst international air cargo demand declined by 2.8% for the full year, the last quarter of 2023 saw an 8.2% increase compared to the previous corresponding period.”

Overall, 2023 was a good year for the region’s carriers due to a gradual restoration of flights and city-pair connections for the year, which provided more options for travellers, further stimulating demand. 

“However, as operations were progressively restored, airlines faced capacity constraints and increased cost pressures driven by volatile fuel prices, a strong US Dollar and inflationary impacts on operations,” Menon explained. 

“2024 promises to be another good year for Asian airlines. International passenger traffic is poised to return to pre-pandemic levels in the coming months, buoyed by the return of tourism and resilient expansion of the region’s economies.” 

He concluded that “uncertainties remain, including the potential erosion of business and consumer sentiment amid rising geopolitical risks. Against this background, the region’s airlines remain vigilant to market influences while investing for future growth.”

Carnival gives the Red Sea a wide berth

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TTR WEEKLY
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SINGAPORE, 1 February 2024: US-headquartered Carnival Corporation is rerouting cruise ships scheduled to transit the Red Sea until the end of May this year.

In a press statement released Tuesday, Carnival Corporation confirmed it has rerouted itineraries for 12 ships across seven brands for the “safety and well-being of crew and guests following consultations with security experts and the government.”

Photo credit: Cunard’s Queen Victoria visits Singapore on a world cruise.

Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of cruise lines — AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn.

Carnival Corporation reports the Red Sea rerouting is expected to have an adjusted earnings per share impact of USD0.07 to USD0.08 for the full year 2024, with the vast majority of the impact in the second quarter. The company has not seen an impact on booking trends due to the Red Sea situation and has no other Red Sea transits until November 2024.

Carnival is not the only cruise line adjusting itineraries due to the risk of attacks on shipping in the Red Sea, though to varying degrees depending on their scheduled itineraries over the next three to four months,

MSC Cruises has cancelled some Red Sea sailings, especially its “Grand Voyages” from South Africa. Due to security, Norwegian Cruise Lines and Royal Caribbean Line have cancelled or modified Red Sea itineraries. Italy’s Costa Cruises ( a brand under Carnival) announced earlier in January it was cancelling Red Sea transits.

Travel warnings

There are several travel advisories issued by governments regarding cruise ships passing through the Red Sea. The US Department of State, the UK and Australia warn of heightened risk of piracy and maritime attacks in the southern Red Sea, particularly off the coast of Yemen and Somalia. They advise cruise ships to exercise extreme caution and implement heightened security measures.

Avoiding the Red Sea

Rerouting to avoid the Red Sea means longer voyages detouring around Africa’s  Cape of Good Hope adds seven to 10 days to itineraries. It also inflicts considerable costs on the cruise line. In addition to disrupting cruise schedules, it impacts passenger satisfaction and could lead to cancellations or postponement of trips going into summer if the security risks remain unresolved.

Cancelled Suez Canal transits

While not a major draw for most cruise lines, some world cruises use the Suez Canal to reduce sailing time from ports in the Mediterranean and destinations in the Indian Ocean. These itineraries could suffer major revisions to avoid the canal until safety can be assured. They cannot pass on the cost of extra sailing days around the Cape of Good Hope to passengers.

Lost revenue

Cancellations and altered itineraries lead to lost bookings and revenue for cruise lines. Longer voyages mean greater fuel consumption, pushing up operational costs.

Sustainability signals new Tripadvisor category

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TTR WEEKLY
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SINGAPORE, 1 February 2024: The Global Destination Sustainability Movement and Tripadvisor have forged a partnership to recognise and promote sustainable travel destinations to consumers through Tripadvisor’s Travellers Choice Best of the Best Destinations Awards.

The GDS-Movement and Tripadvisor have partnered to launch a new subcategory for 2024, Best Sustainable Destinations, combining review data and audited excellence in social, economic, and environmental performance. 

The Travellers Choice Best of the Best awards showcase favourite sustainable destinations based on rankings and reviews, integrating verified and validated GDS-Index data.

The GDS-Index is a destination-level programme from GDS-Movement that measures, benchmarks, and guides the social, economic, and environmental sustainability strategy and performance of tourism and events in participating cities and regions worldwide. 

The index is the global standard for tracking and better managing the regenerative contributions of a destination’s visitor economy. In 2023, it measured sustainability efforts in 100 destinations across four important performance areas: city environment performance, city social sustainability performance, tourism supply chain and destination management organisation, using 69 qualitative and quantitative sustainability indicators aligned with the United Nations 17 Sustainable Development Goals (SDGs).

The cities included in the GDS-Index stand out for their commitments to sustainability as measured by Tripadvisor’s ratings, including destinations for which Tripadvisor users were most likely to discuss sustainability in positive English-language reviews over 12 months.   

Tripadvisor’s Travellers’ Choice Best of the Best Sustainable Destinations 2024 list highlights the top 10 global destinations of choice among discerning travellers seeking more responsible destinations.

Tripadvisor’s Best of the Best Sustainable Destinations 2024:

  1. Copenhagen, Denmark 
  2. Stockholm, Sweden 
  3. Bordeaux, France 
  4. Helsinki, Finland 
  5. Singapore, Singapore 
  6. Melbourne, Australia 
  7. Oslo, Norway 
  8. Brussels, Belgium 
  9. Galway, Ireland 
  10. Belfast, United Kingdom

Europe leads with eight out of the top 10 environmentally and socially responsible cities. Copenhagen, Denmark, claims the top position, while the Asia-Pacific region is notably well-represented, with Singapore and Melbourne praised for their sustainability efforts.      

GSD-Movement CEO and chief changemaker Guy Bigwood said: “We’re pleased to collaborate with Tripadvisor in recognising cities committed to environmental and social responsibility through the Travelers’ Choice “Best of the Best” Sustainable Destinations 2024. These cities serve as role models in sustainable tourism, showcasing a shared dedication to a more sustainable and resilient future in travel.”

Tripadvisor president Kristen Dalton said: “Tripadvisor’s community of global travellers is passionate about sustainability as a consideration when planning trips, and we’re proud to highlight such an important category. This category helps guide people looking to travel more sustainably while recognising the efforts of global destinations committed to environmental change.”

ABOUT THE GDE-MOVEMENT 

Its mission is to empower people with the mindsets, skill sets, and toolsets to create regenerative destinations to visit, meet, and live in. www.gds.earth

China and France celebrate diplomatic ties

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TTR WEEKLY
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BEIJING, 31 January 2024: Chinese President Xi Jinping exchanged congratulations with his French counterpart, Emmanuel Macron, on Saturday to mark the 60th anniversary of diplomatic relations between the two countries.

Attaching great importance to the development of bilateral ties, Xi said he stands ready to work with Macron to take the 60th anniversary of diplomatic ties as an opportunity to open up a new future and make China-France comprehensive strategic partnership more solid and dynamic, further contributing to improving the well-being of the two peoples and of humanity.

Photo credit: CGTN

Over the decades, the people of China and France have forged deep bonds in their friendly exchanges and shared cultural exploration.

This winter at the distinguished Harbin Ice and Snow World, a landscape inspired by the China-France Year of Culture and Tourism, is proof of these exchanges. It incorporates two world-famous cultural heritage sites, the Notre Dame Cathedral in Paris and the Temple of Heaven in Beijing. The two ice sculptures representing China and France are connected by a bridge symbolising friendship.

The sculptures were unveiled by French Tourism Minister Olivia Grégoire when he officially declared the commencement of the 2024 China-France Year of Culture and Tourism at the Harbin Ice and Snow World on 5 January.

Echoing Xi’s congratulatory message, Macron said in his message on Saturday that he looks forward to working with the Chinese president to promote bilateral economic, cultural, and youth exchanges. Macron also said he looks forward to continually deepening France-China’s comprehensive strategic partnership with Xi so both sides can infuse renewed vitality into bilateral relations for the next 60 years.

Promoting closer ties

In a video speech to a reception in Beijing celebrating the 60th anniversary of diplomatic ties between China and France, Xi urged the two sides to expand cultural and people-to-people exchanges and promote closer people-to-people ties by taking the China-France Year of Culture and Tourism and the Paris Olympic Games as opportunities.

In November 2023, the 6th meeting of the China-France high-level dialogue mechanism on people-to-people exchanges was held in Beijing when the foreign ministers of both countries witnessed the signing of cooperation documents in fields such as education and scientific research, cultural tourism and health, with the release of a list of high-quality cultural exchange activities between the two countries in 2024.

Summer Olympics

In the Paris 2024 Summer Olympics, the Chinese Olympic Committee will set up a “China House” during the event to host sports achievement displays, Chinese sports culture displays, and foster interactions between athletes in Chinese and French sports circles, among other activities to add more excitement to the Paris 2024 Summer Olympic Games, Chinese Ambassador to France Lu Shaye told China Media Group on Friday.

Lu also noted that people-to-people exchanges between China and France have warmed up in the post-pandemic era. “Nearly 46,000 Chinese are studying in France, and around 1,000 primary and secondary schools in France have opened Chinese language courses, with over 100,000 students learning Chinese.”

China introduced a 15-day visa-free entry policy for ordinary passport holders from France last December. France was named in a list of six countries, including Germany, Italy, the Netherlands, Spain, and Malaysia. 

Last week, China announced similar bilateral agreements with Thailand effective 1 March and Singapore 9 February for a 30-day visa-free stay. 

(Source: CGTN)

Pandaw promotes upper Mekong cruise

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TTR WEEKLY
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SINGAPORE, 31 January 2024: Pandaw Cruises is promoting a 10-night expedition along the upper Mekong in Laos and Thailand, exploring the untouched valleys and hill tribe villages along the iconic river banks.

Sailing between Chiang Khong in Thailand and the Laotian capital, Vientiane, the cruise stops for three nights at the UNESCO World Heritage city of Luang Prabang, giving guests ample time to explore the town and tourist sights in the Luang Prabang Valley. 

Pandaw’s specially crafted expedition vessels sail from October to March each year and are the perfect way to explore this hidden gem in Asia.

For more information visit https://www.pandaw.com/expeditions/laos-mekong

Aviation uni sponsors rocket competition

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TTR WEEKLY
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DUBAI, UAE, 31 January 2024: 202 students from 24 UAE schools made a splash at Emirates Aviation University’s seventh Water Rocket Competition, held in collaboration with Boeing.

Students in grades 11 and 12 from schools across the UAE built rockets using materials at hand. Each year, the challenge for participants is to launch water rockets at a 45-degree angle, powered solely by water and air pressure. Students design creative nose cones and fins for enhanced impact protection. They also learn how to reduce, reuse, and recycle during the competition. This year, teams had two hours to complete the task and were given two attempts to launch their rockets.

Emirates Aviation University vice-chancellor Professor Ahmad Al Ali said: “Emirates Aviation University is committed to innovating and fostering creativity in young minds. Our annual Water Rocket Competition is not just exciting for the student community; it’s also an opportunity to bring together the country’s best and brightest young minds, challenge them, and encourage them to think about STEM careers. Watching students brainstorm, collaborate, and construct these rockets is an eye-opening experience every year. We hope they are inspired to become leaders in science and engineering.”

Boeing president in the Middle East, Türkiye, Africa, and Central Asia, Kuljit Ghata-Aura added: “From launching the Arab world’s first uncrewed mission to Mars to signing the Artemis Accords, the UAE is rapidly emerging as a leader in space exploration. At Boeing, we have been part of every major US endeavour to escape Earth’s gravity. We are excited to continue to partner with Emirates Aviation University to inspire a new generation of aerospace scientists and provide students with the opportunity to learn new technical skills from Boeing engineers during the competition.”

Following the water rocket launches, the judging panel from Emirates Aviation University and Boeing announced Eagle 1 from Islamiya English School, Abu Dhabi, as the winning school after the team launched their rocket to a distance of 99 meters. Eagle 2 from Islamiya English School, Abu Dhabi, secured the first runner-up position with 93 meters, and OOW – Volts from Our Own High School, Dubai, followed as the second runner-up with 92 meters.

The annual competition aims to inspire young aeronautical enthusiasts by combining creativity with the principles of rocketry and flight.

About Emirates Aviation University

Since its founding in 1991, EAU, the education arm of the Emirates Group, has established itself as the region’s leading educational institution for aviation studies. The university offers a comprehensive range of undergraduate, postgraduate, and research programs in aeronautical engineering, aviation management, logistics & supply management, aviation safety, and aviation security studies. Over the past three decades, EAU has experienced remarkable growth, expanding its facilities, faculties, learning resources and earning global accreditations, including recognition from the Quality Assurance Agency for Higher Education, UK. 

EAU also provides a six-month internship program with the Emirates Group for students with exceptional academic performance. For more information, visit https://www.eau.ac.ae/en.

www.emirates.com

Cruise offers free HK ferry transfer

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TTR WEEKLY
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HONG KONG, 31 January 2024: Passengers booking Resorts World One cruises until 18 February 2024 can take the complimentary ferry service from Pazhou to Hong Kong courtesy of the cruise line.

The complimentary ferry service from Pazhou is available for cruising guests embarking on the three-night Sanya cruise and the five-night Vietnam cruise.

Upon arriving at the China Ferry Terminal in Hong Kong, guests will be transferred by free shuttle buses to the Kai Tak Cruise Terminal for ship embarkation. The initiative offers convenience and cost-savings, with the first departure ferrying over 200 cruising guests from Pazhou on 28 January.

“The Hong Kong homeport for Resorts World One is one of the most convenient homeports for many travellers from mainland China, especially from Guangzhou and the Greater Bay Area,” said Resorts World Cruises president Michael Goh. 

Resorts World One offers two, three and five-night cruises to popular destinations such as Sanya on Hainan Island in China and Danang, Nha Trang in Vietnam. There are also cruises scheduled to Naha and Miyakojima in Okinawa. 

AI: Travel & Tourism plays catch-up

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TTR WEEKLY
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SINGAPORE, 31 January 2024: A new report from the World Travel & Tourism Council (WTTC) and Microsoft highlights the transformative power of AI (Artificial Intelligence) for Travel & Tourism, marking a commitment to a digital future with unparalleled customer experiences. 

The report warns Travel & Tourism lag behind other consumer-facing industries in AI adoption. AI’s surge across various sectors last year is now a relevant force, and the Travel & Tourism sector must act now to leverage its impact. 

Challenges that must be overcome by Travel & Tourism businesses include a shortage of AI-skilled workers, limited AI infrastructure, and the absence of a formal ‘AI strategy’ in many business plans. 

The first in a series of AI reports, announced during the global tourism body’s event at FITUR and in collaboration with WTTC’s Industry Partner, Microsoft calls on Travel & Tourism to embrace AI and other cutting-edge technologies. 

AI can empower personalised recommendations and marketing strategies by analysing traveller data, optimising pricing strategies through real-time adjustments, and offering instant responses and fine-tuned interactions via sophisticated AI-powered chatbots. 

The report also highlights AI’s capabilities extend to predicting future demand patterns, efficiently allocating resources, and providing valuable insights for governments and Travel & Tourism stakeholders. 

 WTTC President & CEO Julia Simpson said: “As we navigate the ever-evolving landscape of Travel & Tourism, AI emerges as a catalyst for positive change. 

“The transformative capabilities highlighted in this report demonstrate that AI is not just a technological advancement; it is a strategic tool that can personalise the customer experience, drive sustainable improvements, and create real-time pricing models.”

Microsoft managing director of travel, transport & logistics, Julie Shainock added: “Using Microsoft’s Azure OpenAI Models across the travel sector allows greater productivity for companies and drives a more personalised consumer experience.   

“For travellers, the ability to drive more inspiration and personalised offers at booking to providing tools to consumers to proactively assist them while in destination to anticipate their needs with relevant information to improve their journey. For travel companies, GenAI is there to increase productivity, automate the predictable, and allow our human-centric approach to the high-value moments in travel to shine more.” 

Travel & Tourism businesses are urged to embrace AI as a strategic priority, investing heavily in talent to foster collaboration between humans and AI. 

Amidst concerns about AI’s impact on jobs, the report addresses the potential for job creation, recognising that although AI will be disruptive, it will, in turn, generate new opportunities. 

Responsible data management emerges as a crucial strategy in the quest for sustainable AI practices within the Travel & Tourism sector. 

Implementing measures such as data minimisation, efficient storage, and responsible data disposal becomes pivotal for organisations seeking to minimise their carbon emissions when using new digital technologies and significantly reduce their AI environmental footprint. 

To read the report in full, visit WTTC’s Research Hub
The report is free for WTTC members; non-members can buy the report online after registering.

Radisson flies flag at Anyer beach

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TTR WEEKLY
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SINGAPORE, 31 January 2024: Radisson Hotel Group will open a new beachfront Radisson Resort in 2027 situated in the coastal town of Anyer, Indonesia. 

The 150-key Radisson Resort Anyer will mark a significant milestone as the Radisson brand launches its first resort with glamping concept integration – showcasing the group’s dedication to offering unique and memorable experiences for guests. 

Artist Impression of Radisson Resort Anyer, Aerial View.

Located in Banten province, Anyer is lauded as one of Indonesia’s most famous beaches on Java’s West Coast, within a two-hour car transfer drive from Soekarno-Hatta International Airport and central Jakarta.

Anyer Beach is renowned for its long stretch of golden sands and serves as an eye-opening gateway to the famed Krakatoa volcano.

Indonesia remains a strategic market for Radisson Hotel Group, recording 10.4 million foreign tourists in the first 11 months of 2023,  more than a 110% increase in tourists compared to the same period in 2022.

With over 60 hotels in operation and development in Southeast Asia and the Pacific, Radisson Hotel Group continues to grow as a leading hospitality provider in the region.

More Asia-bound flights from Munich

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TTR WEEKLY
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SINGAPORE, 31 January 2024: Traffic from Munich Airport to Asia surpasses pre-pandemic level with high passenger traffic on 107 weekly connections from the southern German hub to cities across Asia.

The high demand for air travel is reflected in the increased aircraft movements at Munich Airport. For example, the airport will see record flights to Asia in the 2024 summer schedule from 31 March to 31 October.

Munich Airports reports nine airlines are planning 107 weekly flights to 14 destinations in 10 Asian countries. Before the pandemic, in the 2019 summer schedule, there were 101 flights to 10 destinations in seven countries operated by five airlines.

Destinations covered by flights from Munich to Asia are Tokyo, Osaka, Beijing, Shanghai, Bangalore, Mumbai, Delhi, Seoul, Tashkent, Dushanbe, Male, Taipei, Bangkok and Singapore. 

Today, the destinations are served by Lufthansa, Air China, All Nippon Airways, BeOnd, EVA Airways, Singapore Airlines, Somon Air, Thai Airways and Uzbekistan Airways.

Lufthansa will periodically deploy the world’s largest passenger aircraft, the Airbus A380, on the route to Delhi starting 1 April to meet the growing demand for air travel. The service to Beijing will be increased from three weekly flights to a daily flight beginning in April, while Osaka in Japan will be served five times a week beginning in April and then daily starting in May. Japan’s All Nippon Airways will increase flights to Munich from four to seven weekly, effective 2 July.

Busiest airports in Germany

  • Frankfurt.
  • Munich.
  • Düsseldorf.
  • Berlin Tegel.
  • Hamburg.
  • Cologne / Bonn.
  • Berlin Schönefeld.
  • Stuttgart.
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