Middle East and North Africa Edition
PARK INN RENAMED Rezidor Hotel Group has changed the name for its mid-market brand, Park Inn. The brand will now be known as Park Inn by Radisson.
Air connectivity to Iraq is set to further improve, with new services from Europe and the UAE covering the country’s capital of Baghdad, as well as its northern hub, Erbil. Executives from Lufthansa and Etihad – two of the latest airlines to increase Iraq services – say the country is a key focus for their expansion plans.
5 NE W TRAVEL AGENT PAGE This issue of Travel Trade Weekly will be the first to feature the new Agents’ Corner page – a dedicated section for travel agents, featuring exclusive news and interviews.
10 In This Issue Market Update Accommodation News Air Travel News International News Agent’s Corner Travel Tips Travel Talk Who’s Moved Rendezvous Events JUNE 5, 2010
ISSUE 30
2 4 6 8 10 11 12 14 15 16
IRAQ
Demand
6 www.traveltradeweekly.travel
TRAVEL TRADE WEEKLY Deputy Editor Laura Warne Journalist Louis Dillon Savage
Dubai Most Challenging Hotel Investment Market in MENA The hotel market in Dubai is perceived as the most challenging in the Middle East, a survey by Jones Lang LaSalle Hotels has revealed.
Design & Layout Elina Pericleous Sales & Marketing Jane Davidson Marianna Tsiamas Directors Andreas Constantinides Mary Kammitsi Headquarters P.O. Box 25255 Nicosia 1308 Cyprus Tel: +35722820888 Fax: +35722318958 Website www.traveltradeweekly.travel Emails info@traveltradeweekly.travel editorial@traveltradeweekly.travel sales@traveltradeweekly.travel
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he Hotel Investor Sentiment Survey (HISS) for May has shown that expectations for the emirate remain negative in both the immediate and
mid-term future. The HISS reported that MENA markets were suering due to recent influxes of supply to the region and predicted that recovery would lag behind the established markets of Western Europe. Marrakech and Dubai both entered the list of the top five destinations where the sale of hotel assets was the dominant sentiment among
investors, at first and fifth place respectively. Abu Dhabi and Jeddah were the only MENA markets to make the top 10 list for destinations in which construction was the primary interest of investors. However, a negative view on the Middle East was accompanied by a resurgence of investor confidence worldwide. Jones Lange LaSalle noted that the May HISS showed the most marked increase in expectations for short term trading since the inception of the survey. The measure jumped by 31.8 percent to breach positive at 0.9 percent. Dubai
MENA Exchange Rates Accurate as of 2/6/2010 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)
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CURRENCY Dirham Pound Riyal Pound Dinar Dinar Pound Dinar Riyal Rial Dinar Dirham Riyal Rial Dinar Dinar
1USD= 3.67 5.66 3.75 1501 0.37 0.70 46.8 0.29 3.64 0.38 1.51 8.89 9935 225.77 75.31 1.32
Destination Occupancy Rates Q1 2010 80 70 60 50 40 30 20 10 0
%
Abu Dhabi Beijing Berlin Los Angeles
Madrid
Paris
Rome
Global occupancy rates for the first quarter of 2010, supplied by Abu Dhabi Tourism Authority, show that the emirate remains on par with or ahead of many popular destinations. JUNE 5, 2010
ADTA Plans Expansion of Visitor Information Facilities Abu Dhabi Tourism Authority (ADTA) will open three new visitor information centres this year and is also planning to increase the number of visitor information kiosks throughout the emirate.
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he first new centre has already opened, occupying the historic Al Jahili fort in Al Ain, which ADTA claims was the birthplace of the UAE’s founding figure, Sheikh Zayed. According to ADTA, the Al Jahili fort was erected in 1891 to defend Al Ain and protect the palm groves of the oasis, at a time when dates made up a major export of the Arabian peninsula. It later served as the headquarters of the Oman Trucial Scouts, a paramilitary force commissioned by the British and as a residence for the local governor. The Al Jahili facility marks the fourth
operational visitor centre in the emirate; ADTA also operates a seasonal centre at Mina Zayed cruise terminal during the November to May cruising season. Saeed Al Dhaheri, visitor information manager for ADTA, shared the locations of two future visitor centres. “We are working on a centre which we plan to open in July in The Souk, Central
Market with a third due to open in October at Ferrari World Abu Dhabi,” he said. More self-service, touch screen information kiosks are also in the works. Kiosks are planned for installation at the Abu Dhabi/Oman border checkpoint near Al Ain, the Qasr Al Sarab resort and within Ferrari World Abu Dhabi, which is due to open in October. Abu Dhabi
Qatar Airways Flights Attract South American Interest to Qatar Qatar has experienced its first interest as a destination for South American travellers, according to representatives of Qatar Tourism Authority (QTA). QTA reported that visitors from that region to their stand at IMEX in Frankfurt, Germany had increased to significant levels for the first time this year. The authority attributed the interest to the soon to launch Qatar Airways routes from Doha to Buenos Ares in Argentina and Rio De Janeiro in Brazil. Cristina Mules, marketing representative at QTA, said there was huge potential for South American tourism to the Middle East. JUNE 5, 2010
“For the first time, we had a lot of interest from this group looking at Qatar as a new destination for their clients,” she said. “We will work closely with these large operators to build incentive travel itineraries.”
Qatar’s stand at IMEX 2010 3
- Accommodation
Name Change for Rezidor’s Park Inn Brand Rezidor Hotel Group has changed the name for its mid-market brand, Park Inn, linking it to the company’s core brand, Radisson.
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he brand will now be The re-naming process of existing hotels known as Park Inn by will be implemented on a gradual basis. Radisson, according to A dedicated marketing and sales Kurt Ritter, president of Rezidor. “This new name is in line with our decision to strongly focus on the development of our two core brands,” he said. “Park Inn is a young brand which we launched in early 2003 and brought to over 140 hotels, with over 26,000 rooms in operation and under development in Europe, Middle East and Africa. “The link with Radisson and its great strength and reputation will allow Park Inn to grow even faster and to be even more efficient.”
campaign will support the transition, with all hotels coming under the new name by the end of 2011.
Rotana Opens Second Centro Property in Al Barsha, Dubai Rotana has opened the second property under its limited service Centro Hotels by Rotana brand in Al Barsha, Dubai. Rotana has pitched the brand as appealing to budget conscious executives; a market which Rotana claims is growing in the Middle East. Selim El Zyr, CEO of Rotana, affirmed that frugal travellers were the target market of the Centro line. “We are thrilled about the opening of the second property under our exciting new Centro Hotels by Rotana brand, which will certainly meet the demands of a new generation of traveller who is seeking finesse and functionality at reasonable rates,” he said. Rotana plans to open 25 Centro branded properties across the region by 2014.
Amendment: Southern Sun On May 8, Travel Trade Weekly reported that two upcoming Southern Sun hotels in Abu Dhabi and Jeddah would be developed as part of an agreement between Southern Sun and Emaar Hospitality Group. While Emaar Hospitality Group has signed a master agreement with Southern Sun for the management of future Emaar hotels, Emaar has no association with Southern Sun properties in Abu Dhabi, Jeddah or South Africa. 4
JUNE 5, 2010
- Accommodation
Hilton Hits Middle East Expansion Milestones The Doubletree by Hilton brand will make its first entry into Jordan this year, with a new hotel expected to open in Aqaba in the third quarter of 2010.
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ilton Worldwide has signed a management agreement with Jordan Maritime Complex for Real Estate Investments Co to manage the 181 room property. Doubletree by Hilton Aqaba will be the first Hilton Worldwide property in Jordan. The company also has three other properties under development in the country: Hilton Amman Jordan Gate, opening in 2011; Hilton Tala Bay Aqaba, opening in 2011; and Hilton Dead Sea Resort and Spa, opening in 2013. Hilton Worldwide has also achieved its goal of introducing a Hilton branded presence to all key cities of Saudi Arabia, with the signing of the first Hilton property in Al Khobar. Under an agreement with Jenan Real Estate Company, Hilton will manage Hilton Al Khobar Hotel and Residence. The property is expected to open in the final quarter of 2013, with construction scheduled to start in March 2011. According to Jean-Paul Herzog, president of Hilton Worldwide, Middle East and Africa, the hotel will be part of a mixed use development, including residential towers, a retail mall and an oďŹƒce building. “The eastern province’s multi-faceted tourism industry is the perfect destination for our core Hilton brand,â€? he said. “With a combined hotel and residence product, we will be able to cater to the business, corporate, meetings and leisure
demands of this city.� The property will feature 250 guest rooms and 150 serviced apartments. Other upcoming Hilton Worldwide properties in the kingdom include: Hilton Riyadh Hotel and Residence, to open in 2013; Doubletree by Hilton, Al Khobar, to open in 2012; and Hilton Garden Inn Riyadh Al Muroj, to open in 2011.
With a combined hotel and residence product, we will be able to cater to the business, corporate, meetings and leisure demands of this city
from AED 200 per room, per night.
A seriously refreshing summer offer from Rotana Relax this summer with our coolest room rates starting from AED 200, per room, per night, across all Rotana Hotels & Resorts in the MENA region. Each of our hotels offer exceptional leisure facilities, from swimming pools and spas, to tennis courts and world-class shopping, in addition to the choice of Rotana’s superb restaurants.
To find out more about the special summer rates and participated Rotana hotels across the MENA region, visit rotana.com/SUMMER *Rates are valid from 10th May till 8th September, 2010 For reservations, please log on to rotana.com, contact your preferred travel agency or call RXU 7ROO IUHH QXPEHUV %DKUDLQ ‡ .XZDLW ‡ . 6 $ ‡ 4DWDU ‡ 8 $ ( 527$1$
Doubletree by Hilton Aqaba JUNE 5, 2010
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- Air Travel
Gulf Air Expansion Takes in Holy City of Medina Bahrain’s national carrier, Gulf Air, has launched three new permanent destinations to its network: Medina in Saudi Arabia, Alexandria in Egypt and Aleppo in Syria.
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lexandria and Aleppo were previously serviced as part of Gulf Air’s summer schedule. Samer Majali, CEO of Gulf Air, said the new permanent routes were part of greater expansion plans and followed the launch of Gulf Air flights to three cities in Iraq. “There has always been strong demand for a direct service to the holy city of Medina and we have launched Alexandria and Aleppo as permanent destinations following the strong customer demand to continue flying to these destinations after the summer season,” said Majali. “This is part of our strategy to further strengthen our regional network and connect customers from more regional cities to Bahrain and beyond.” Services to Alexandria began on June 2, with four flights per week. Aleppo will become a regular service on
June 15 with three flights per week. Service to Medina will begin on June 17, with recently acquired Embraer aircraft servicing the route four times per week.
There has always been strong demand for a direct service to the holy city of Medina
(L-R) Sulaiman Surra, Syria’s ambassador to Bahrain; Abdulmohsen Fahad Al Marek, Saudi Arabia’s ambassador to Bahrain; Samer Majali, CEO of Gulf Air; and Mohammed Ashraf Harbi, Egypt’s ambassador to Bahrain.
Etihad and Lufthansa Promise Connectivity Boost for Iraq Cities Air connectivity to Iraq is set to further improve, with new services from Europe and the UAE covering the country’s capital of Baghdad, as well as its northern hub, Erbil. Etihad Airways has commenced operation on two non-stop weekly flights to Erbil from Abu Dhabi; the carrier also launched flights to Baghdad in April of this year. James Hogan, CEO of Etihad, said Iraq was a key market for the airline. He added that response to the new Baghdad service had been overwhelmingly positive so far. “We believe the new route will attract leisure travellers from Iraq who are looking for short breaks within the Gulf 6
region, as well as business customers, friends and relatives travelling between the UAE and Erbil,” said Hogan. German aviation group Lufthansa will begin servicing its new route between Munich, Germany and Baghdad, Iraq on September 30. The Iraqi capital will be serviced four times per week, with a Boeing 737 that is currently operated by Swiss company PrivatAir on behalf of Lufthansa. Lufthansa’s recently launched MunichErbil flights signaled the airline’s return to Iraq in April, following a 20 year period of absence from the Iraqi market. Thomas Klühr, head of hub management Munich for Lufthasa, said
the new service to Baghdad was one of 11 new destinations that the airline was launching from Munich during the summer months. “Against the backdrop of the economic recovery and as foreign companies establish themselves in the country, there is growing demand for flights to Iraq,” said Klühr. The PrivatAir aircraft servicing the Munich-Baghdad route will feature business and economy classes.
There is growing demand for flights to Iraq JUNE 5, 2010
- Air Travel
Emirates A380 Proves Popular in Saudi Arabia Following strong demand, Emirates has boosted its A380 services to Jeddah, with the introduction of daily flights.
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hmed Khoory, Emirates’ senior vice president of commercial operations for the Gulf, Middle East and Iran, said passenger loads across all three classes (first, business and economy) were performing extremely well. “The popularity of the A380 into Jeddah has exceeded our initial expectations,” said Khoory.
He added that the A380 was the only three class configuration aircraft to fly into Saudi Arabia. “The addition of business class seats on services to Jeddah has been highly anticipated by the market,” said Khoory. “The A380 not only gives passengers the opportunity to try our business class services, but has also increased our overall capacity on this route by 17 percent.”
Emirates will also increase its services to Riyadh from June 22. The airline will add an extra flight to Riyadh per week, in addition to three extra flights per week during summer, bringing the total weekly services to 11. The four additional summer services will be available until October 30. Between July 2 and September 24, Emirates will also offer a limited service to Al Medinah al Munawarrah.
Royal Falcon Lands in Abu Dhabi Jordanian airline Royal Falcon launched its inaugural flight from Amman to Abu Dhabi on June 1, marking its second direct UAE service. The airline launched flights to Sharjah in March, 2010. The new Abu Dhabi route will be serviced twice weekly, using a Boeing 737-400 aircraft. Captain Ziad Hanandah, president of Royal Falcon Airlines, said the company was ambitious about increasing flight frequency in the coming months. “We are committed to providing world class quality services in all aspects of the Royal Falcon Airlines experience and look forward to being welcomed to Abu Dhabi as the new falcon in the sky,” said Hanandah.
(L-R) Captain Ziad Hanandeh, president of Royal Falcon Airlines with Ahmed Al Haddabi, senior vice president of airport operations at Abu Dhabi Airport Company. JUNE 5, 2010
7
- International
Tourism Australia Launches Crowdsourced Campaign Tourism Australia has launched a new global marketing campaign for the destination, which includes elements supplied by the Australian community.
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ndrew McEvoy, managing director of Tourism Australia, said the campaign had been designed in response to feedback from international tourism operators. “Our industry partners from around the world told us to show the icons, show the animals, and make it fun and friendly,” he said. “[They said] Keep it simple and make sure the ad materials can be used by partners like airlines, wholesalers and travel agents around the world to sell travel to and within Australia and that’s exactly what
we have done with the There’s Nothing Like Australia campaign.” In addition to digital, print and broadcast advertising, the campaign draws on images and stories about Australia sourced from residents of the country. These stories and pictures have been compiled and packaged online, in order for Australian residents to advertise their country in their own words and suggest Australian experiences to potential visitors. Martin Ferguson, Australian Minister for Tourism, called the campaign the most innovative ever produced by Tourism Australia.
According to Tourism Australia, the campaign has been designed for use over a long period, with a decade flagged as the possible lifespan of the promotion.
Flinders Ranges, Australia
Thailand Offers Free Visas, Insurance to Entice Wary Travellers Back Thailand will continue to offer free visas and travel insurance until March, 2011, as part of its bid to revive tourism in the wake of civil strife. The Thai Ministry of Tourism and Sport (MOTS) announced on May 26 that political upheaval in the country had been brought completely under control, a week after military actions brought riots in Bangkok to a close. According to MOTS, free travel insurance has been offered to all visitors in a bid to encourage confidence among potential travellers. The insurance would cover foreigners visiting Thailand who are injured or unable to travel out of Thailand due to rioting. The Thai government has launched inter-agency recovery efforts with a focus on returning tourism, one of Thailand’s major industries, to business as usual. Thai prime minister, Abhisit Vejjajiva, said he remained committed to the National Reconciliation Roadmap that he had earlier proposed to salve Thailand’s recurring political crises. Thailand has experienced regular disturbances since Thaksin Shinawatra was removed as prime minister by a military coup in 2006. 8
JUNE 5, 2010
Welcome! Agents’ Corner is the latest weekly news section brought to you by Travel Trade Weekly. This page will feature news and interviews with the people who make the industry tick. Agents’ Corner is a page about travel agents, for travel agents – we’d love to hear your opinions, company news or industry comments. Send us an email at editorial@traveltradeweekly.travel
Q & A with Samira Hassan Leisure Brands Manager, Bahrain International Travel Company Who has inspired you in your travel career? My family and my boss, Paul Clabburn, who consistently raises the bar with new ideas.
What has been the highlight of your career so far? Customer satisfaction and professional recognition, plus of course getting the chance to visit some wonderful places and to be able to stay in some fantastic hotels.
When is your peak selling period? Summer, essentially June through August but we do have other smaller peaks at the public holiday times, especially Eids.
Where is the next hot destination?
Sharaf Courts Customers With Direct From Supplier Sales Sharaf Travel has launched a new approach to travel retail, planning its first Travel Souk in June. Vaidyanathan Jayaram, managing director of Sharaf Travel, said the Travel Souk concept would invite consumers to interact directly with Sharaf’s suppliers, offering the opportunity to bargain for discounts. “Our customers and those interested in travel can take advantage of this opportunity by negotiating directly with travel experts and suppliers to obtain on the spot discounts or strike a one-off bargain deal at the Travel Souk,” he said. Other enticements for customers include the opportunity to win tickets from tour operators and airlines. Charlotte D’mello of Sharaf’s marketing department, said Sharaf would not benefit directly from the event, which was seen as an opportunity to communicate the benefits of face to face business to customers drawn away by online and direct channel selling. D’mello noted that although Sharaf was cutting itself out of the transaction by putting its customers in direct contact with suppliers, suppliers were increasingly marketing directly to customers anyway. “We don’t get anything out of it, but we certainly don’t stand to lose from the event,” she said. “By doing this we are building a relationship - it is a chance to meet customers directly, rather than by doing business only by email or telephone.” D’mello said June was the perfect time to hold the event, as many UAE travellers were bundling their summer and Eid holidays together this year, in response to the latter falling earlier than usual in 2010. The Travel Souk will be held at the Grand Hyatt Dubai on the evening of June 12. 10
Vietnam, Cambodia, Laos and Czech Republic They have a lot to offer in terms of culture and for those seeking adventure or experiential travel possibilities, such as visiting the indigenous tribes, temples and hiking. In the case of the Czech Republic, they have the world famous spa city of Carlsbad which has 12 natural thermal springs where a variety of spa packages are offered, including anti-aging, anti-stress, detoxification and reconditioning. I’m trying to send my boss there!
Why are travel agents important? We provide a one stop solution for all customer needs, coupled with a personal touch. Agents also provide a sense of security and comfort to customers when booking. Travel agents are there to advise and guide customers so they know exactly what they are getting for their money. One of the most important aspects is that agents are human beings with whom a customer can discuss any aspect of their travel and have their questions clearly answered. Machines can never manage that!
Agents are human beings with whom a customer can discuss any aspect of their travel
Samira Hassan JUNE 5, 2010
Target Market Tip – Scandinavian Interest On The Rise Qatar Airways has reported that Denmark could be an important upcoming source market for the Gulf, based on strong interest in their recently launched route to Copenhagen.
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atar Airways is currently the only GCC carrier that flies directly to the Scandinavian countries, operating routes to both Sweden and Denmark. The airline launched flights to Denmark to coincide with added capacity on its existing flights to Stockholm, Sweden and according to Paul Johannes, commercial vice president for Qatar Airways in Europe, more space is already needed. Johannes said that within weeks of launching its flights to Denmark the carrier has recorded strong enough load factors to begin planning for daily flights by larger aircraft before the end of the year.
JUNE 5, 2010
According to Johannes, traffic from Denmark is driven largely by the business sector, with an emphasis on machinery exports and petrochemicals. However, increasing numbers of travellers from greater Scandinavia were using the route as a gateway to the wider Middle East, Johannes said. “With the addition of Copenhagen to our European network, we have significantly widened our reach in Scandinavia, receiving a great response not just from the Danish travelling public, but also from passengers from southern Sweden, Norway and Finland,” he said. Johannes went on to point out the importance of Europe to as in general as a
source market for the Middle East. “Europe is one of our most important regions representing around 20 percent of our global coverage,” he said. “With almost 40 per cent increase in frequency across four European capital cities from the start of the winter flying season last October, Qatar Airways is opening up greater opportunities to travel on business or leisure.”
We have significantly widened our reach in Scandinavia
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Salem Al Mamari
Mubarak Al Muhairi
Director General of Tourism Promotions, Oman Ministry of Tourism "The Oman Ministry of Tourism plans to increase the numbers of tourists from the GCC by developing infrastructure and facilities. People come to Oman largely because they are interested in the history and the natural beauty. The southwest corner of Oman, including the city of Salalah, has the Indian Ocean monsoon between June and September. While most of the Gulf region suffers from high summer temperatures, the Dhofar Province has a cool and misty summer."
Director General, Abu Dhabi Tourism Authority "We are working hard to ramp up the demand side of the [supply and demand] equation with this week's launch of a global marketing campaign with advertising in international print, broadcast and online mediums and an expanded Summer in Abu Dhabi family festival which for the first time takes in Al Ain and features substantial promotional deals from our growing stakeholder community to stimulate demand during the traditionally slow period.”
Salem Al Mamari
The Oman Ministry of Tourism plans to increase the numbers of tourists from the GCC by developing infrastructure and facilities
Paolo Dionisi Italian Ambassador to the UAE “This was the perfect way to celebrate Italian National Day [ June 2] here at Ferrari World Abu Dhabi. I am honoured that the first Ferrari theme park will be opening here in Abu Dhabi later this year. Bell’Italia [a newly announced miniature recreation of famous Italian cityscapes, structures and racing venues, to be part of Ferrari World] is an excellent tribute to Ferrari’s Italian roots and the beauty of my country. I can’t wait to come back with my wife and daughters when the park opens in October.”
(R-L) Italian Ambassador to the UAE Paolo Dionisi with his wife Tala and daughters Yasmine and Yara; Ousama Ghannoum, marketing and media director of Aldar Properties PJSC; and Claus Frimand, general manager of Ferrari World Abu Dhabi
I am honoured that the first Ferrari theme park will be opening in Abu Dhabi
Mubarak Al Muhairi
We are working hard to ramp up demand
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 12
JUNE 5, 2010
Mark Deere
Valerie Barrie
Rotana has appointed Mark Deere as general manager of Arjaan by Rotana, Dubai. Deere was previously employed as the general manager of Hilton Hanoi Opera in Vietnam. He holds a degree in hotel and catering management and has 23 years of experience in the industry. In addition to Hilton Hanoi Opera, Deere has worked at Ritz Hotel, London Hilton on Park Lane and Hilton Dubai Creek.
JW Marriott Dubai has appointed Valerie Barrie as director of sales and marketing. Barrie has more than 16 years of experience in hospitality management. She holds a bachelor of arts in hotel catering and institutional management. Barrie worked at a number of hotels throughout Scotland and Australia, before moving to Dubai in January, 2010.
Mark Deere
Samer Arnouk
Samer Arnouk
Grand Hyatt Dubai has appointed Samer Arnouk as associate director of sales for GCC Hyatt Hotels Dubai. Arnouk will be responsible for handling the GCC corporate and leisure accounts for Dubai’s three Hyatt properties: Park Hyatt, Grand Hyatt and Hyatt Regency. He has more than 10 years of experience in the travel, tourism and hospitality industry in the Middle East. Arnouk graduated from the Higher Institute of Hotel Intermediate and Hotel Studies Tartous, Syria. He has worked with Hyatt since 2001, holding several positions in banqueting, F&B and reservations, before joining the sales team in 2005.
Martin H Kolb
Stephan Hein The Rocco Forte Collection has appointed Stephan Hein as regional sales manager, focusing on attracting the MICE market to the company’s upcoming properties in Abu Dhabi, Marrakech and Cairo. Hein will also focus on managing the UK groups market. Previously, Hein worked as senior sales manager at Rocco Forte Collection’s Hotel de Rome in Berlin, Germany. 14
Valerie Barrie
Stephan Hein
R Hotels has appointed Martin H Kolb as vice president. Kolb will develop financial planning and procedures in an effort to boost the group’s image and shield company assets. He will be responsible for managing growth, scaling continued operations and directing regional human resources. R Hotels owns, manages and operates hotel properties and serviced apartments in the UAE and throughout the Middle East. Kolb has more than 30 years of experience in the industry and has worked for companies that include InterContintental Hotels Group, Kempinski, Radisson, Kuoni Travel and United Airlines. JUNE 5, 2010
Q&A with Rabih Saab Rabih Saab is vice president for the Middle East at global distribution system (GDS) provider Travelport. He spoke to Travel Trade Weekly about some major changes that Travelport is making to compete in the changing world of online travel agencies and direct booking channels. Travel Trade Weekly: How has the rise of online travel agents and direct bookings affected GDS providers and traditional travel agents? Rabih Saab: Despite the popularity of online travel agents (OTAs), particularly in regions such as Europe and Asia, many travellers continue to see the value in booking travel offline – even if they’re researching online. The impact of OTAs on the traditional travel agency channel has also been less prominent in the Middle East, where many are still reluctant to use their credit card details online. It is important to note that GDS providers power all of the major OTAs, who also use our fare-caching technology to maximise their online search results. Several airlines also benefit from our shopping technologies, leveraging our solutions to enhance the search capabilities on their websites. For traditional travel agents, the rise of OTAs has certainly prompted the trade to continually enhance their efficiency as well as the level of service they can provide.
Travel Trade Weekly: What changes have you made to adjust to the new competition provided by alternative bookings channels? Rabih Saab: Our ongoing investment in technology means that the GDS can offer faster data processing capabilities than ever before, maximising search results and providing a more informed travel choice to the end customer. In terms of content, we are focused on diversifying our offering and continually enhancing the depth of content we provide through both agency portals and an expanding portfolio of travel suppliers. JUNE 5, 2010
To promote hotel and car bookings through our GDS, we have recently partnered with several commission processing solution providers to facilitate non-air commission payments. We are also investing in adjacent businesses and have recently acquired hotel search engine Sprice.com. This will enable us to significantly expand our hospitality offering by providing Galileo and Worldspan-connected agents with access to Sprice’s portfolio of 240,000 international hotel properties, as well as a comprehensive suite of hotel reviews, merchandising options and comparison tools. We will also utilise Sprice’s search technology to enhance our GDS channels, enabling us to deliver and distribute richer, more diverse supplier content to our subscribers. Moving forward, our efforts in non-air will be particularly important as the nextgeneration GDS expands into further levels of customisation, shifting from primarily a distribution vehicle into an integrated merchandising platform. For example, we see the GDS of the future providing more targeted selling and advertising opportunities for airlines, hotels and car rental companies at the point of sale as agents search for product information.
Our efforts in non-air will be particularly important as the next-generation GDS expands into further levels of customisation Travel Trade Weekly: Some online travel agencies have suggested that
Rabih Saab
traditional agents will focus on large bookings, such as corporate and group travel in the future, while individual travellers will increasingly choose direct bookings channels or online agencies – do you think this is true? Rabih Saab: There is no doubt that corporate bookings produce higher yields for travel agents, however the trade isn’t shifting its focus away from attracting leisure travellers. Individual holidaymakers still benefit from the service of a travel agent, particularly when they require assistance in comparison shopping or booking more complex flight itineraries. Business travellers will likely continue to book through a travel management company or corporate travel agent in order to ensure that they are respecting corporate travel guidelines. Similarly, families and tour groups will continue to enjoy the convenience and price savings generated from booking through an agent as one large group. 15
Aviation Asset Management Summit Locked In December The second annual Aviation Asset Management in the Middle East Summit has been confirmed for December 6 in Dubai. According to Panagiotis Panagopoulos, CEO of organiser Aeropodium, the conference will debate top issues, such as
appraisals, valuation, pre-purchase inspection, leasing management, finance, risk management, remarketing, repossession, engine maintenance, regulatory compliance and safety. “Aircraft operators, aircraft manufacturers, banks, airports, law firms, financial
analysts, leasing and finance companies and any aviation professional with an interest in the aviation asset management sector will have a unique opportunity to discuss and explore the latest developments in the Middle East,” said Panagopoulos.
Events Cityscape Jeddah Jeddah, Saudi Arabia, June 7-9 (www.cityscapejeddah.com) Networking, conference sessions and round table events for the real estate market, including hotels and other tourism developments. International Holiday Festival Tehran, Iran, June 10-12 (www.expokish.com) Festival showcasing local food, traditions, tour organisers, hotels and accommodation providers to extend the range of foreign and domestic travels. International Travel Expo Hong Kong Hong Kong, Jun 10-13 (www.itehk.com) Travel industry event for Chinese region, supported by more than 96 countries. Destinations World Bengaluru, India, June 11-13 A comprehensive exhibition for the travel and tourism industry in the Indian region.
Expo World Middle East Abu Dhabi, UAE, June 17-19 (www.adnec.ae) Gathering of exhibitions industry figures from around the world, with a focus on the Middle East. HospitalityWorld Bengaluru, India, June 24-26 (www.hospitalityworld.in) Showcasing south India’s hospitality industry. Beijing International Tourism Expo Beijing, China, June 25-27 (www.bitechina.com.cn) Exhibiting products and destinations for Chinese and International professionals. India International Travel Market Bengaluru, India, July 10-12 (www.iitmindia.com) A showcase for tourism, leisure, hospitality and related industries.
Asia Luxury Travel Market Shanghai, China, June 14-17 (www.altm.com.cn) Sister event to ILTM, focusing on senior Asian luxury travel buyers.
Cityscape Dubai Dubai, UAE, October 4-7 (www.cityscapeglobal.com) Networking, conference sessions and round table events for the real estate market, including hotels and other tourism developments.
Business Travel Market London, UK, June 16-17 (www.businesstravelmarket.co.uk) Conference and exhibition for meeting corporate travel buyers, suppliers and intermediaries – expected to attract more than 4,000 delegates and 500 of Europe’s top travel buyers.
Outdoor Adventure Dubai Dubai, UAE, October 8-10 (www.outdooradventuredubai.com) Adventure sports, outdoor clubs, equipment specialists and holiday destinations.
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JUNE 5, 2010