Don’t miss out on our next e-book issue
Online January 23 Middle East and North Africa Edition
Tel: +35722820888 info@traveltradeweekly.travel
CLUB MED French holiday company, Club Med, has signed on to build a resort at the Salalah Beach development in Oman, marking its first entrance into the Arabic Peninsula.
Global Distribution Systems (GDS) companies were responsible for more than USD268 billion in global travel sales in 2008, according to the first comprehensive study of the GDS industry, by travel industry research body PhoCusWright.
4 LCC ALLIANCE Asia Pacific based airlines Jetstar, the low cost subsidiary of Qantas Airways, and AirAsia have announced what they claim is the world’s first alliance of low cost carriers.
6 In This Issue Market Update Accommodation News International News Air & Cruising News Travel Tips Travel Talk Who’s Moved Rendezvous Events JANUARY 16, 2010
ISSUE 10
2 4 6 8 12 13 14 15 16
GDS
Forecast
2 www.traveltradeweekly.travel
TRAVEL TRADE WEEKLY Deputy Editor Laura Warne
First Major GDS Study Shows Strong Performance The Global Distribution Systems (GDS) industry represented more than USD268 billion in global travel sales in 2008, according to the first comprehensive study of GDSs, by travel industry research body PhoCusWright.
Journalist Louis Dillon Savage Design & Layout Elina Pericleous Sales & Marketing Jane Davidson Marianna Tsiamas Danielle Bragg Directors Andreas Constantinides Mary Kammitsi
T
he study, commissioned by Interactive Travel Services Association (ITSA), drew on data provided by GDS providers Sabre, Amadeus
and Travelport. Headquarters P.O. Box 25255 Douglas Quinby, author of the study, said GDSs Nicosia 1308 Cyprus were the quiet giant, of the travel industry. Tel: +35722820888 “Although many consumers have never heard of Fax: +35722318958 them, GDSs power the billions of electronic Website transactions that both online and traditional www.traveltradeweekly.travel travel agencies use to book airline tickets, hotel Emails info@traveltradeweekly.travel rooms, car rentals and other travel editorial@traveltradeweekly.travel arrangements,” said Quinby. sales@traveltradeweekly.travel “By aggregating inventory and rates across thousands of suppliers, GDSs help individual and business travellers by providing more transparency, better access and increased competition.” According to the study, GDS companies recorded 1.1 billion transactions in 2008, which MENA Exchange Rates Accurate as of 13/1/2010
Devalued Fuerte Costs Accor
Currencies shown in red are fixed against the US Dollar COUNTRY UAE (AED) Egypt (EGP) Saudi Arabia (SAR) Lebanon (LBP) Bahrain (BHD) Jordan ( JOD) Syria (SYP) Kuwait (KWD) Qatar (QAR) Oman (OMR) Tunisia (TND) Morocco (MAD) Iran (IRR) Yemen (YER) Algeria (DZD) Libya (LYD)
2
CURRENCY Dirham Pound Riyal Pound Dinar Dinar Pound Dinar Riyal Rial Dinar Dirham Riyal Rial Dinar Dinar
equated to 2,100 transactions per minute. In Europe, GDS revenue accounted for 21 percent of all travel revenue and 47 percent of airline bookings. The study predicted an increase in GDS share of the total travel market in 2010, driven by a rise in online travel agency activity during the economic downturn and a trend by corporate travel buyers to drive travel spend via GDS. However, several challenges were highlighted, including the rise in direct bookings and changes in airline products and distribution pricing models. The study pointed out that, should airlines compel online and traditional travel agencies to pay for access to their content via GDS, there is a high risk of increased costs for intermediaries and consumers. However, it concluded that if GDS companies continued to innovate and adapt to meet the evolving needs of suppliers, distributors and travellers, they would continue to shape travel distribution in the future.
1USD= 3.67 5.44 3.75 1501 0.37 0.7 45.5 0.28 3.64 0.38 1.31 7.82 9965 205.5 71.6 1.22
Accor has suffered a EUR40 million (USD58 million) loss following a 50 percent devaluation of the Bolivar Fuerte (VEF). Previously linked to the US dollar at VEF2.15/USD1, the Venezuelan currency was officially reduced to a rate of VEF4.3/USD1 on January 8. According to Accor tax, minority interests and non recurring items have mitigated the effect of the devaluation on the company’s operating profits, with final losses standing at EUR15
million (USD21.8 Million). The majority of Accor’s business in Venezuela is derived from prepaid services, which the company’s board of directors plans to demerge from its hospitality arm by the end of 2010. Nevertheless, the two wings of Accor’s business continue to operate in tandem and have both been impacted by the loss. Accor has stressed that despite the loss, targets for operating profit in 2009 had still been met. JANUARY 16, 2010
Dubai Gets a Sporting Chance at Future Events Dubai will become the first city in the Middle East to host the international SportAccord conference bringing the organisers of international sporting events to the city.
T
he event will be held from April 25 to 30 at Atlantis Hotel and Resort on the Palm Jumeirah. It will be sponsored by Dubai Department of Tourism and Commerce (DTCM) and Dubai World Trade Centre. The conference serves as a forum for leaders in the global sporting industry, including 1,500 delegates from sporting associations and federations from around the world. Princess Haya Bint Al Hussein, wife of Sheik Mohammed bin Rashid Al Maktoum of Dubai, will be a key speaker at the event, and said that Dubai’s position as a regional sporting and tourism hub made the emirate an ideal venue for the conference. Anna Hellman, executive director of SportAccord, emphasised the significance of the event for countries interested in sporting tourism “The convention is held in a different country each year, encompassing the congresses and general assemblies of international sports federations and their related associations,” she said.
Atlantis Hotel and Resort, Dubait
“These federations hold the rights to scores of world championships and other annual sporting events.” Dr Ahmed Al Sharif, secretary general of the Dubai Sports Council, said that sport was considered a key part of Dubai’s ongoing development. “Dubai already hosts many world renowned sporting and entertainment events and its attraction is further enhanced by high profile venues including Meydan and Dubai Sports City,” he pointed out.
Confirmed participants for the event include high profile speakers such as Princess Haya of the UAE; Kofi Annan, former UN secretary-general and president of the Global Humanitarian Forum; and Sepp Blatter, President of FIFA.
Atlantis Hotel and Resort, Dubait
Starwood Finalises Bliss Sale Starwood has finalised the sale of the Bliss spa and product company to the US based Steiner Leisure. Frits van Paasschen, CEO of Starwood, said that the USD100 million sale demonstrated the prevailing value of Starwood products, despite financial difficulties. “The sale of Bliss, coupled with several other recent sale transactions we've announced, demonstrates that despite JANUARY 16, 2010
today's tough economic conditions we're able to sell assets at strong multiples,” he said. Bliss spas will continue to operate in Starwood’s St Regis, W and Aloft properties under Steiner management. Van Paaschen said that the sale was part of Starwood’s strategic focus on its hospitality offerings and that the relationship with Steiner would be ongoing and exclusive. 3
ACCOMMODATION NEWS
Club Med Joins Salalah Beach Development
F
rench holiday company, Club Med, has signed on to build a resort at the Salalah Beach development in Oman, marking its first entrance into the Arabic Peninsula. Muriya Tourism Development selected Club Med and a number of other international hotel brands, including Rotana and Mövenpick, to be involved in the coastal tourism project. Samih Sawiris, chairman of Muriya Tourism Development said the company aimed to harness Oman’s tourism potential with developments that combined natural beauty with comfort and luxury. Salalah Beach covers an area of 15.6
million square metres, of which 9.5 million square metres will be developed. The project will include residential villas and apartments, two 18 hole PGA golf courses, five five-star hotels, two marina boutique hotels, a 200 berth marina and a range of retail and dining options.
According to Henri Giscard d’Estaing, CEO of Club Med, the Salalah Beach hotel will be a new flagship property for Club Med. “This exquisite project on the Salalah Coast will be the first Club Med resort on the Arabic Peninsula, the only part of the world where Club Med is not yet operating,” he said.
(Left to right) Cyril Piaia, CEO Muriya Tourism Development; Dr Rajha Bint Abdul Ameer Bin Ali, Minister of Tourism; Samih Sawiris, chairman of Muriya Tourism Development; and Henri Giscard d’Estaing, CEO of Club Med
High Hopes for Q4 Results at Marriott International John Willard Marriott Junior has projected that Marriott International’s Q4 results for 2009 will exceed expectations. Though the results have not yet been fully compiled, Marriott expressed optimism about the findings. “For Marriott, the fourth quarter looked better than we expected outside North Rose Rayhaan by Rotana
America, while things in the US and Canada were also a little better,” he said. Marriott said that the brand’s offerings had started to attract travellers back to the company’s portfolio, aided by a boosted MICE sector. “Leisure travellers are responding to the terrific value we’re offering. We’ve also
Rose Rayhaan Officially World’s Tallest Hotel The Guinness Book of World Records has confirmed that Rotana’s new hotel, Rose Rayhaan in Dubai, is the tallest hotel in the world. Rose Rayhaan is a 72 storey tower, rising 333m above Sheikh Zayed Road. The property brings Rotana’s Dubai portfolio to 11 hotels, with two more scheduled to open during the first quarter of 2010, according to Omer Z Kaddouri, senior vice president of UAE operations for Rotana. “Rotana currently operates 1,344 rooms just on Sheikh Zayed Road and operates
4
seen business travel and large meetings start to pick up, which is big for our industry,” he stated. Marriott International expects Q4 revPAR losses of 14 to 16 percent outside North America and decreases within the region equalling between 13 and 14 percent.
more hotels in Dubai than any other single operator,” said Kaddouri. “Rose Rayhaan by Rotana is not only the tallest hotel in the world but also the UAE flagship for Rotana’s alcohol-free brand, Rayhaan Hotels and Resorts, which will assist Rotana to position its brand internationally and will certainly maintain Dubai’s positioning amongst other tourism destinations worldwide.” Daniel Mathew, general manager of Rose Rayhaan by Rotana, said the hotel opened with occupancy levels of 65 percent. JANUARY 16, 2010
ACCOMMODATION NEWS
CMH Moves into Sudan with Two Coral Hotels
Coral Hotels and Resorts will manage two properties in Sudan, in an agreement with Sudanese Kuwaiti Hotels Co Ltd (SKHC). Coral Port Sudan
B
oth hotels, Coral Khartoum and Coral Port Sudan, are already operational and cater to both business and leisure travellers. Michel Noblet, CEO of Coral’s parent company, Hospitality Management Holdings (HMH) said Africa was a key development market for HMH. “Sudan holds great promise for our industry,” said Noblet. He explained that an increase in tourism arrivals to Sudan had fuelled demand for quality hotel accommodation across the country. Noblet added that increased business opportunities and an oil-fuelled construction boom had led to significant
growth in international and regional business travellers. The country’s airports are currently undergoing redevelopment, in line with plans to improve infrastructure within Sudan. The international airport at Khartoum is currently served by 16 airlines.
“We believe Coral Khartoum and Coral Port Sudan will position us for long term growth and success in Africa,” said Noblet. “By working closely with our associates we ensure superior results and high return on investment.” Coral Khartoum
Ladies First at Grand Hyatt Muscat The Grand Hyatt Muscat has picked up on recent female-only travel trends, offering special features to female guests travelling alone. Girish Baghat, director of rooms at the hotel, said that the new service had been designed to help women feel safe JANUARY 16, 2010
and accommodated when travelling. “Our aim is to provide a haven for our female guests so that they feel at home and welcome in our hotel,” he said. The female-only service includes dedicated check in, specially allocated rooms and staff assigned to escort female
guests to and from their rooms. Rooms have been selected to be centrally located near the elevators and lobby and will be non-interconnecting, high floor rooms. Single female guests will be offered an automatic upgrade to the next class of room. 5
INTERNATIONAL NEWS
World’s First Low Cost Carrier Alliance in Asia Pacific Asia Pacific based airlines Jetstar, the low cost subsidiary of Qantas Airways, and AirAsia have announced what they claim is the world’s first alliance of low cost carriers.
T
he non-equity agreement focuses on generating synergies for both airlines, in a move that Alan Joyce, CEO of Qantas Airways, claims will ultimately lower fares. “Jetstar and AirAsia offer unmatched reach in the Asia Pacific region, with more routes and lower fares than their main competitors, and this new alliance will enable them to maximise that scale,” he said. Joyce said that continued growth in the Asia Pacific market had motivated the agreement. “The aviation market in Asia is a growth market and has proven resilient over the past 12 months, despite the tough operating environment, with significant growth in passenger numbers forecast in the region,” he said. According to Tony Fernandes, CEO of AirAsia, the partners will also collaborate in developing new aircraft specifications that will enable cooperation in more areas in the future. “With joint purchasing power it means
that we can potentially work with airline manufacturers on the right configuration and design of an aircraft specifically for AirAsia that best suits our operational needs for the future,” he said. Engineering and maintenance supplies and services will be pursued jointly, and the airlines will pool aircraft components and spare parts. Passenger and ground handling services will also be combined. Tony Fernandes, CEO of AirAsia, said that the arrangement would allow his airline to remain competitive despite increased expenses.
“AirAsia strongly believes the strategic tieup will help the airline maintain its position as the lowest-cost airline in the world despite rising costs associated with the fledgling global economic recovery,” he said.
Global Hotel Alliance Enters the New World The Global Hotel Alliance (GHA) has added the South American Tivoli chain of properties to its portfolio. The GHA offers technological integration and collaborative marketing to its members and facilitates the transfer of loyalty scheme benefits between participating brands. The group includes brands from across 6
the world, including Kempinski and Anantara, who both operate properties across the MENA region. According to Chris Hartley, CEO of GHA, Tivoli is the Alliance’s first South American member and is critical to ongoing plans for expansion. “2010 was always going to be a landmark year for GHA with the creation of our
multi-brand loyalty programme, but the addition of Tivoli gives us extra momentum, as we prepare to launch our first consumer-facing product,” he said. “Tivoli gives GHA its first footprint in South America, in that continent’s most important emerging market, as well as giving excellent coverage of Portugal as we strengthen our position in Europe.” JANUARY 16, 2010
AIR TRAVEL & CRUISING NEWS
Qatari Companies Form Biofuel Consortium Qatar Airways, Qatar Petroleum and Qatar Science and Technology Park (QSTP) have established a new biofuel development consortium.
T
he partners will analyse the economic and engineering challenges associated with biomass based alternatives to
fossil fuels. The development alliance, known as the Qatar Advanced Biofuel Platform (QABP), resulted from the findings of a seven month study undertaken by QSTP and US based Verno Systems. The study sought to establish means of providing biofuel without interfering with supplies of food or fresh water.
According a statement by the consortium, biofuel crops sufficient to supply Qatar Airways with biomass based fuel have already been identified. According to Akbar Al Baker, CEO of Qatar Airways, the move followed Qatar’s success in developing and producing jet fuels based on natural gas, rather than oil. “Building on the experience and success of the GTL Consortium, we now move to the next phase of alternative fuels while continuing to develop GTL further,” he said. Al Baker admitted that the process was ongoing and that carbon neutral
alternatives to fossil fuel would require further research. Dr Tidu Maini, of the QSTP, agreed and said the research would put Qatar at the forefront of alternative fuel development. “Research activities on alternative and environmentally friendly fuels like BTL will establish QSTP as a leading international hub for the application of new platform technologies,” he said. “This is a great example of an effective multi-partner collaborative research and development programme which is already producing successful outcomes.”
Airbus Beats Personal Production Best with 498 Aircraft Airbus delivered 498 aircraft in 2009, setting a new record for the number of aircraft produced by the company in a single year. Boeing has also released its production figures for 2009, reaching a total of 481 aircraft delivered throughout the year. Tom Enders, CEO of Airbus, attributed
the company’s success to a variety of factors. “Considering the economic and financial environment we have done rather well in 2009,” he said. “Great teamwork and flexibility at Airbus and a close cooperation with customers, suppliers and finance institutions were
key to success.” Enders admitted that despite positive results, prudence and flexibility would be required going forward and announced his intention to maintain production at current levels. “We are not out of the woods yet,” he warned.
SNTTA Chosen for Royal Caribbean’s Emirates Sailings Brilliance of the Seas
8
SNTTA Emir Tours has been selected to handle ground arrangements for the UAE ports to which Royal Caribbean’s Brilliance of the Seas cruise ship will sail, starting January 18. Brilliance of the Seas will operate Arabian Gulf cruises sailing from and returning to Dubai. The cruises will visit Muscat, Fujairah, Abu Dhabi and Bahrain. SNTTA will provide embarkation, disembarkation, hotel and airport transfers, and all shore excursions for the UAE ports.
David Milican, senior general manager of SNTTA, said that Royal Caribbean’s contribution to cruising in the gulf would have a significant effect on the industry. “The entry of Royal Caribbean International in the Gulf cruise sector is a milestone that will dramatically change the tourism landscape in the region,” he said. “Though there are three cruise companies operating weekly sailings, the region still holds tremendous potential for the cruise industry.” JANUARY 16, 2010
AIR TRAVEL & CRUISING NEWS UAE Safety Central The UAE has launched an initiative to centralise air safety incident reporting in the country. Ismaeil Mohammed Al Balooshi, director of aviation safety at the UAE General Civil Aviation Authority (GCAA), said that the rapid growth of aviation in the Middle East had necessitated centralised incident management. “We recognise the need to constantly improve processes and systems for managing risks effectively; centralised reporting will ensure the effective communication and coordination necessary for higher records of successful incident management,” he said. The new Reporting of Safety Incident (ROSI) system includes 924 hour duty inspector, contactable by telephone, and the ability to report incidents through the GCAA website. Al Balooshi said that centralised reporting would help the UAE plan future upgrades to its safety systems by providing insight into safety incident trends across the country’s airports. “ROSI will allow us to monitor trends in the reports, which will help in identifying possible risks to the safety of aviation in the UAE,” he said. Al Balooshi pointed out the importance of maintaining a good national aviation safety record and said that the UAE needed new approaches to keep pace with its developing aviation sector. “Along with high levels of growth and expansion come increased challenges that require effective regulatory responses,” he said. JANUARY 16, 2010
Etihad Launches First Real-Time Loyalty Scheme
Etihad’s new iPhone Application
Etihad has launched a new iPhone application, which it claims is the first of its kind to offer real-time rewards point redemption. According to Peter Baumgatner, chief operating officer for the airline, the application is part of an ongoing strategy by Etihad to provide services and information to its customers via remote devices. “The new iPhone application is yet another example of Etihad’s commitment to innovation and to developing smart products that enhance the guest experience and make things simple and convenient for our customers,” he said. The application will allow users to browse Etihad’s loyalty scheme partners, view up to date lists of special offers, redeem points and manage their account remotely.
QE3 Hits the Water in Trieste, Italy Cunard Line’s latest iteration of the Queen Elizabeth cruise ship dynasty has undergone its floating out ceremonies, leaving the dry dock in Trieste, Italy for the first time. According to Peter Shanks, the Queen Elizabeth is the second largest Cunard ship ever built. Shanks admitted that the vessel remained unfinished, but he was positive about the progress of construction and the ship itself. “Even in her present unfinished state, devoid of the carpets and curtains, furnishings and facilities, paintings and porcelain that we associate with a Cunard
luxury liner, she is awesome,” he said. “It is only a little over six months since the keel for this great ship was laid. In that short time, a solitary block at the bottom of the dry dock has, as a result of the skill and discipline of the workforce here at Fincantieri, grown into this awe-inspiring vessel.” Florence Farmer, whose late husband served as chief engineer on both previous Queen Elizabeth ships, was chosen as the traditional godmother of the vessel. The Queen Elizabeth’s cruise schedule includes stops in Dubai, UAE, as part of a world cruise in 2011. Queen Elizabeth
9
Tourism Looks Healthy for Saudi Arabia The Saudi Commission for Tourism and Antiquities (SCTA) has organised a series of workshops to develop medical tourism in the kingdom.
H
eld in conjunction with tour operators, the Ministry of Health and the Riyadh chamber of commerce, the workshops have been held at medical facilities in both Riyadh and Jeddah. According to the SCTA, the programme has been undertaken in order to develop packages and offers for inbound and domestic medical tourists.
Medical tourism is considered one of the key vectors of tourism growth for Saudi Arabia and the new initiative has been motivated by the development of high medical standards in the kingdom, SCTA has reported. According to a report published by MAS, the SCTA’s research division, medical tourism in the kingdom accounted for revenues of SAR800 million (USD213.3 million) in 2007. Despite Saudi Arabia’s usual focus on the
domestic travel market, the medical tourism initiative focuses on both domestic and expatriate tourists as key source markets, according to the SCTA.
ITB Adds MICE Conference ITB Berlin has added a dedicated MICE day to its Business Travel Days programme. David Ruetz, senior manager for ITB Berlin, said the addition followed a finding by the ITB travel trends report that business travel had contracted by seven percent in 2009.
“This year, both the quality and the number of events at the ITB Business Travel Days will receive a boost yet again, in an aim to highlight solutions and explore existing potential in these difficult times,” he said. The event will constitute a day long forum discussing the contemporary
difficulties of the MICE sector. Key topics of discussion are to include the impact of virtual conferencing technology; the decision making processes of event management companies; the capabilities of participant management systems; and the significance of the conference business in the context of developing tourism.
Business Travellers List a Few of Their Favourite Things Emirates has been voted as one of the top five world airlines by business travellers, according to a survey by the Emirates A380
10
Business Travel and Meetings Show, London. The exhibition, which runs from February
9 to 10, surveyed 2,400 business travellers about their travel preferences. InterContinental was voted top hotel group, followed by Marriott, Four Seasons, Hilton and Radisson. David Chapple, event director for Business Travel and Meetings Show, said business travellers had named online check-in as the innovation of the decade. “Innovations in technology, infrastructure and services have all contributed to make it easier, more comfortable and more enjoyable than ever for professionals to both travel and do business effectively,” said Chapple. Topping the list of demands for the future were faster security, check-in and immigration processes. JANUARY 16, 2010
Tips and tricks from industry experts, bringing you the latest in emerging destinations, technology, marketing and travel trends. Hospitality eBusiness Strategies (HeBS) is an online marketing consultancy for the hospitality industry. Max Starkov and Marianna Mechoso Safer, consultants with the firm, shared their top ten tips for online marketing in difficult times. Less is more The internet marketing basics—website re-design, search engine optimisation, paid search and email to the hotel’s optin list—consistently bring in the most bookings and the highest returns on investment (ROIs) in the industry. HeBS estimates that 75 to 80 percent of hotel website bookings originate directly from these four initiatives alone. HeBS recommends allocating 90 percent of online marketing budget to these four factors and channelling the remaining 10 percent into social marketing.
Take advantage of multi channel marketing The consumer research process is now longer than it has ever been—people are searching an average of 22 travel websites before making a booking, according to Starkov and Mechoso Safer. Reach your future and current guests at multiple touch points; for example, combine mail-outs with Twitter and Facebook posts 12
Make the direct online sales channel the centrepiece Direct customers are more loyal, bring more revenue and tend to travel more often. In 2010, direct online channel sales will exceed 62 percent of total online hotel bookings, according to HeBS. Plan your budget around return on investment (ROI) marketing strategies Track every dollar spent using sophisticated website analytical and campaign tracking technology. Track post-impression and post-click activity and track conversions (bookings, room nights, revenues) and ROI from each campaign. Make sure your website is web 2.0 friendly Most hotel websites read like a static online brochure. This is contrary to the nature of today’s hyperactive internet user, who is tweeting, texting, emailing, communicating with friends via Facebook and commenting, often in real-time, on restaurants and hotels via review sites. Create opportunities for your website visitors to communicate with your hotel. Invest in online videos Because of advances in bandwidth and technology, online videos are becoming an integral part of the internet and mobile web users’ experience. If you do not have an online video of your hotel in 2010, make this a priority.
Take advantage of social marketing Internet users now spend 17 percent of their surfing time on social network and blogging sites, nearly triple the percentage of time spent on such sites a year ago. However do not be tempted to create a Facebook fan page or a Twitter account if you are not ready to devote a significant amount of time and resources to managing your hotel’s social network presence. Launch interactive contests and promotions using social media and find unique ways for people to interact with your hotel outside of the hotel website. Invest in mobile marketing Mobile internet is not wireless access to the conventional internet and adheres to different rules. Build a mobile-ready website, designed specially to provide an excellent user experience in a mobile environment. Take advantage of real-time marketing Hoteliers need to be there right away for their customers and these customers won’t necessarily come to you directly with their questions and feedback. Make sure you are monitoring for comments about your hotel not only on hotel review sites, but across the social networks, and responding as quickly as possible. Look for experienced online marketers; you do not want to be a victim to selfproclaimed internet marketing experts. Consider partnering with a hotel internet marketing firm with a proven track record in the industry. JANUARY 16, 2010
Kirk Kinsell
Oliver Schmaeing
President of Europe, Middle East and Africa, InterContinental Hotels Group “The long-term future of the travel industry looks healthy. The internet is making travel more accessible, passenger numbers continue to rise on low cost airlines and people are now living longer than at any time in our history – when you retire you don’t go to the old people’s home, you head for the airport! On top of this, new markets are beginning to travel. The number of outbound trips from China is set to increase from 20 million a year to 100 million every year by 2015. That alone will grow the outbound international travel market by 25 percent. In spite of the recession, in 2009 we opened more than one hotel a day somewhere in the world, creating over 25,000 new jobs. We’re planning and shaping our business for the recovery when it comes.”
Regional Director of Marketing for Arabian Peninsula, Hilton Worldwide “With regards to source markets, the Arabian Peninsula is slightly different from traditional tourist cycles because of the influx of business, leisure and religious tourists as well as staycationers, who pour into hotels throughout the year. The meetings and budget segments are developing and with the entry of Hilton Garden Inn and Doubletree by Hilton brands, we will be putting more empahsis on these segments.
The Arabian Peninsula is slightly different from traditional tourist cycles
Sean Halliday General Manager of Acacia Hotel, Hamra Hotels and Resorts “We are actively approaching all free zone and non-free zone businesses in Ras Al Khaimah, Umm Al Quwain, Ajman and Sharjah, as corporate travellers of these companies can benefit from our concept the most. We can see from the incoming bookings that our concept has hit the mark, and we are targeting 100 percent occupancy Acacia Hotel by the time we go fully operational.”
We are targeting 100 percent occupancy Kirk Kinsell
Carly Gotz
When you retire you don’t go to the old people’s home, you head for the airport!
Group Director of Sales and Marketing, Great Hotels Organisation (GHO) “The global recession has had a big impact on the travel industry, however we’re pleased to report that growth has remained strong over the past year and we intend for it to continue throughout this year. The support of globally recognised sales and marketing organisations such as GHO is vital for independent hotels, especially in times of economic uncertainty and Carly Gotz we are focused on driving new business to our member hotels. This year we will add properties in developing regions where travellers’ money goes further and will look at increasing membership of corporate city centre hotels to our recently launched Metro Hotels brand.”
We will add properties in developing regions where travellers’ money goes further
Travel Talk is your space – this is a casual forum for travel industry professionals to discuss current issues and share stories. We want to hear from you, so send your comments, questions, frustrations and observations to editorial@traveltradeweekly.travel JANUARY 16, 2010
13
Tom Rhodes Tom Rhodes has been appointed as a sales manager at Arabian Park Hotel in Dubai. Rhodes is a recent graduate of Northumbia University and previously worked for NuďŹƒeld Health and Wellbeing as a sales assistant and duty manager. He also volunteered for Nationwide Hospitality, gaining experience at the British Grand Prix and British Open. At Arabian Park Hotel, Rhodes will focus on the corporate market, working with tour operators and local destination management companies.
Mohammad Haj Hassan Mohammad Haj Hassan has been appointed as general manager of Al Bustan Rotana Dubai. He has worked for several Rotana hotels, including Beach Rotana Abu Dhabi and Al Salam Rotana Khartoum, Sudan. Prior to joining Rotana, Haj Hassan worked for several other five star properties in the region. He has 11 years of experience in the hospitality industry. Craig Moyes
Fathi Khogaly
Fathi Khogaly
14
Craig Moyes Reed Travel Exhibitions (RTE) has appointed Craig Moyes as group exhibition director for the global meetings and events portfolio. Moyes was previously exhibition director of World Travel Market (WTM). He has worked in the international events and exhibitions industry for more than 15 years, with positions in South America, Asia and Europe. In his new role, Moyes will manage teams on five continents, overseeing EIBTM in Barcelona, Spain; GIBTM in Abu Dhabi, UAE; CIBTM in Beijing, China; AIBTM in Baltimore, US; and AIME in Melbourne, Australia.
Tom Rhodes
Grand Hyatt Dubai has appointed Fathi Khogaly as hotel manager. Khogaly has worked for Hyatt Hotels Corporation in the UAE for more than 21 years. He was part of the pre-opening team at Grand Hyatt Dubai and has also worked at Hyatt Regency Dubai. His previous roles have included director of events, Galleria manager, director of catering and resident manager.
Mohammad Haj Hassan
Roberto Hukom Etihad Airways has appointed Roberto Hukom as the new country manager for the Philippines. He will take over from outgoing manager Juan Torres, who has been appointed country manager for Japan. Hukom has worked in the airline industry for 30 years and was previously commercial manager for the Philippines for Gulf Air. He has also worked for Kuwait Airways, Korean Airlines and Dimerco Agency Group.
Roberto Hukom
JANUARY 16, 2010
Q&A with Accor Accor Hospitality is rapidly expanding its portfolio of properties in the Middle East. Christope Landais, managing director for the region, and Olivier Hick, director of operations, discuss their latest strategies with Travel Trade Weekly. Upcoming highlights include the introduction of upscale and long stay hotel brands into the Middle East. Travel Trade Weekly: What are the latest plans for Accor in the Middle East and what developments have occurred over the past year? Christophe Landais: Our current network includes 29 hotels in nine countries (Oman, Jordan, Bahrain, Kuwait, Lebanon, Qatar, Saudi Arabia, UAE and Yemen). Accor aims to cement its leading position in the economy and mid-scale segment and is striving to be a significant player in the upscale hospitality segment as well. To continue enhancing our economic brand positioning, we opened five hotels in 2009 which are all situated in strategic locations: ibis Al Barsha; ibis Mall of the Emirates; and our new lifestyle city concept hotel, Suitehotel Mall of the Emirates. After that, we opened two ibis hotels in Jordan and in Oman. Finally, the new luxury Sofitel Dubai Jumeirah Beach Residence has just opened its doors. In the next few months, we will open our second hotel in Kuwait, ibis Sharq. This follows the opening of our first Kuwaiti property, ibis Salmiya. We also plan to open ibis Rigga, Dubai, within the first quarter of this year and our new brand, Pullman, strategically linked to the Mall of Emirates, Dubai by mid 2010. In Abu Dhabi the Sofitel Capital Plaza will open by end of 2010. In Bahrain, the luxurious Sofitel Zallaq will welcome its first guests by end 2010, together with ibis Seef. In Saudi Arabia, our projects are also on schedule with three to four hotels scheduled to open in 2010. JANUARY 16, 2010
Christophe Landais
Travel Trade Weekly: Are you focusing on any particular brands or locations and if so, why? Christophe Landais: Accor plans to further strengthen its presence in the region and the development of its core brand, in particular in the mid-scale segment of the market with Novotel and ibis hotels. In addition to that, Accor will soon introduce its long stay serviced apartment ADAGIO, starting in Abu Dhabi in 2011, targeting the mid-scale segment. We are also gearing up bring our new upscale, five star brand Pullman Hotels and Resorts into the Middle East. Choice and multiple products and service offerings are a must in the hospitality industry in order to succeed and grow.
Travel Trade Weekly: What is your outlook for 2010? What strategies will you be implementing for a successful new year? Olivier Hick: We ended 2009 with some signs of recovery over the last quarter. This is despite the pressure on room rates, and can be attributed to good resilience shown by the economy segment.
Olivier Hick
2010 will obviously be a key year and we look forward to seeing an up-trend in the first half of the year. However, we remain cautious as we believe that it will take some time to recover, in particular with the number of new rooms planned in the region, which will continue to put pressure on occupancy rates and more than ever on average room rates. We will also focus on our new openings to come, and revenue and distribution management will be at the heart of the challenge, together with a good exposure on new emerging markets. For Dubai in particular we need to focus extensively on GCC clients, as well as ensuring that the exhibitions market remains on track for growth. It is important to expect a wide marketing promotion from various entities to generate awareness and a certain curiosity to visit and discover the Middle East. Monitoring, expertise, reactivity and measurable cost saving actions are already part of our strategy for minimising any risks that we may face to ensure that returns and profitability are increased compared to 2009. 15
Saudi Hospitality Offers 16 Servings The Al Harithy Company for Exhibitions will hold the sixteenth Food and Hotel Propac Arabia exhibition in Jeddah, Saudi Arabia, from May 16-19, 2010. The event will be held under the patronage of the Saudi Ministry of Agriculture and according to the event’s organisers it will help the kingdom address ongoing food and hospitality policy challenges. According to Al Harithy, the Saudi government has announced plans for food
self sufficiency, but remains the nineteenth largest net importer of food worldwide. The kingdom imports nearly 80 percent of its food requirements, attracting a large number of international investors and suppliers to the exhibition. In addition to addressing national food supply issues, the event will host local and international hotel and restaurant operators. Al Harithy anticipates visitor numbers to outstrip last year’s 15,000 delegates, citing
various demand drivers that are expected to increase interest in the Saudi food and hospitality sector. Factors include the growing number of international visitors, with foreign pilgrims averaging more than nine million visits to the country between 2005 and 2009. Similarly, a generational shift towards consumption of western products is expected to boost demand, with teenagers accounting for 70 percent of the Saudi population, according to event organisers.
Events FITUR Madrid, Spain, Jan 28 - Feb 2 Spanish travel show targeted to the business travel market.
Gulfood Exhibition 2010 Dubai, UAE, Feb 21-24 (www.gulfood.com) Food and beverage exhibition.
Middle East Exclusive 2010 Dubai, UAE, Feb 2-4 (www.middleeastexclusive.com) Luxury brand and travel retail exhibition.
Jordan Travel Mart ( JTM) Dead Sea, Jordan, February 21-23 (www.jordantravelmart.com) Showcase of the Jordanian tourism industry.
SME Expo and Conference 2010 Dubai, UAE, Feb 2-4 (www.smeexpo.com) Exhibition and conference for small and medium enterprises. Business Travel and Meetings Show 2010 London, UK, February 9-10 (www.businesstravelshow.com) Formerly the Business Travel Show, this event caters to consumers and suppliers of corporate travel services. Travel Technology Europe London, UK, February 9-10 (www.traveltechnologyshow.com) Educational and trade event centered on sales, operational, and marketing technology. EMITT Istanbul Istanbul, Turkey, Feb 11-14 (www.emittistanbul.com) Exhibition for travel professionals in the east Mediterranean and Eurasia.
Meetings Africa 2010 Johannesburg, South Africa, February 24-26 (www.meetingsafrica.co.za) Business tourism exhibition showcasing meeting venues, destinations and industry support services. ITB Berlin Berlin, Germany, March 10-14 (www.itb-berlin.com) A combination of trade exhibition, public exhibition and professional convention for the travel trade industry. GIBTM Abu Dhabi, UAE, March 29-31 (www.gibtm.com) International event for the business travel and meetings industry in the Gulf and Middle East region.
Not a member yet? Visit our website for your FREE online subscription
www.traveltradeweekly.travel P.O. Box 25255 Nicosia 1308 Cyprus Tel: +35722820888 Email: info@traveltradeweekly.travel
16
JANUARY 16, 2010