INSIDE • ATM REVIEW
Industry News • Seminar Round-up • Hotels Special • Show Highlights • Spotlight on Aviation
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WELCOME
21 years in the making Welcome to Inside ATM’s review of last month’s Arabian Travel Market, an unmissable event in the calendar for travel and tourism professionals in the region. Hopefully, the following pages will tell a small part of the story of one of the most successful ATM’s in its illustrious 21-year history. This year, the exhibition was a complete sellout; the largest-ever travel trade gathering in the Middle East, with an extra hall opened to accommodate new exhibitors. At the press conference held prior to the official opening of the show, Mark Walsh, Portfolio Director of Reed Travel Exhibitions, revealed to the gathered media that this year’s ATM was the largest ever. Figures released since the show closed show that 2,763 companies exhibited and 23,642 travel and tourism professionals visited (a 12 per cent increase on 2013). In all, a staggering 33,037 people attended and it was in fact something of an understatement when Walsh said it had been “a year of growth not only for the tourism and hospitality industry in the region, but for ATM.”
Among the guest speakers at the conference, Issam Kazim, CEO, Dubai Corporation for Tourism and Commerce Marketing, said that this year’s ATM was an “opportunity to communicate with the industry, to share the successes and outline future plans which will ensure both the continual development of the destination offering and Dubai’s position around the world as a must-visit destination.” Echoing that sentiment, Majid Al Mualla, DSVP Commercial Operations Centre, Emirates Airline, said: “This year’s ATM is special because it is the first since it was announced that Dubai would host Expo in 2020. It is an opportunity to celebrate the travel and tourism industry, which is so fundamentally important to Dubai.” Looking back on ATM, Mr Al Mualla’s comments have particular resonance, as this year’s event was unquestionably a time of celebration, not just for Dubai, but also for an industry well and truly back on its feet. Best wishes Mike Hayes
Inside ATM REVIEW 05
Editor Mike Hayes mike.hayes@insideatm.com Art Direction
122 Design
Sales Director Parminder Johal parminder.johal@insideatm.com Production Manager Julie Ebsworth production@ltmpublications.com Digital / Web Production 3S Media
Contents
CONTENTS
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NEWS from ATM 16
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Seminars Roundup 37
Hotels Special 49
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Industry News 08 Inside ATM REVIEW
DESTINATION: ISTANBUL
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Inside ATM REVIEW 09
ATM NEWS
As you can see, there’s never a dull moment at Arabian Travel Market; the halls are constantly filled with colour, noise and movement. Between the clowns, the falcons, the beautiful dancers and the men with eggs and chickens on their heads, however, there is also an enormous amount of serious business taking place. And in Dubai, perhaps more than anywhere else in the world at the moment, travel and tourism organisations are expanding their operations, developing new properties and cornering new markets – and ATM is the place to shout about it.
It all happened at ATM
10 Inside ATM REVIEW
Dubai entertainment gets adventurous with IMG development Visitors to ATM had the chance to glimpse the future of entertainment in Dubai, with IMG Worlds of Adventure predicted to set the bar higher than ever before. The project – developed by the Ilyas & Mustafa Galadari (IMG) Group – will cover 1.5 million square feet and have the capacity to host over 20,000 visitors a day. Construction of the emirate’s first mega themed entertainment destination is complete and the off-site manufacturing of rides is well
underway. The rides and attractions at the development’s four themed zones will include tales woven around a host of international brands, including popular Cartoon Network characters and MARVEL Super Hero favourites. In addition, World’s of Adventure will feature a host of rides and experiences that see the prehistoric age roar back to life at Lost Valley – Dinosaur Adventure.
Opening up the Desert Gates Destination management company Desert Gate announced at ATM, the June opening of a new office in Oman. The move is part of the firm’s strategy for expansion, which also include the introduction of its own event management company, EventLab, as well as its Par Excellence brand, which will operate out of a newly-opened Dubai office. Desert Gate CEO, Samir Tabbah, said:
“The UAE has so much to offer and see; we consult our guests to provide them with the most suitable programme of activities, moving away from the generic overdone routine. We aim to exceed expectation for our partners in the tourism sector.” As well as servicing the prime UK, German and CIS markets, Desert Gate is also targeting new business in Eastern Europe, the Americas and the Far East.
Samir Tabbah
Inside ATM REVIEW 11
NEWS ROUND-UP
Peru’s culture and cuisine a draw for ME travellers
NEWS IN BRIEF According to the latest Q1 2014 real estate report from UAE-based property management company Asteco, apartment prices on the Palm Jumeirah have risen by 33 per cent over the 12 months to end of Q1 2014.
US tourism targets Gulf tourists Brand USA brought no fewer than 20 hotel and tourism organisations to Dubai for Arabian Travel Market to capitalise on increased air links between the Middle East and the US, and the new pre-clearance facility at Abu Dhabi International Airport, which streamlines the immigration process. According to Jay Gray, Brand USA’s vice president, global partnership development, better access will help to accommodate pent-up travel demand from the region. Gray said: “We realise the potential, need and importance for us to proactively engage with the Middle East tourism industry in order to maximise these opportunities.” As well as services to Chicago, 12 Inside ATM REVIEW
The Trade, Tourism and Investment Office of Peru made a return to Arabian Travel Market this year, accompanied by seven leading travel specialists, to form the country’s first national pavilion at the show. Ranked in the world’s ten most preferred destinations by Ernst & Young, Peru has seen solid growth in recent years from Middle Eastern travellers, with half of them selecting the South American country as a top travel destination. In Machu Picchu, the nation boasts one of the most aweinspiring ancient sites in the Americas, as well as being recently named the top landmark destination in the world by TripAdvisor. Furthermore, at last year’s World Travel Awards, Peru was voted Leading Culinary Destination for the second consecutive year. Having welcomed 3.2 million visitors in 2013 – an 11 per cent year-on-year rise and a figure expected to rise by a further ten per cent in 2014 – Peru’s Ministry of Trade and Tourism has stated that it predicts five million tourists by 2016, and eight million by 2021. Dallas/Fort Worth, Houston, Los Angeles, New York, San Francisco, Seattle and Washington DC, new this year are flights from Saudia to LA, Emirates to Boston and Qatar Airways to Philadelphia, with additional links launching later this year. These include Etihad to LA and Dallas/Fort Worth; Qatar Airways linking Doha to Miami and Dallas/Fort Worth. Additionally, Emirates is upgrading its daily service to Dallas/Fort Worth to an A380 from October 1. Gray said: “The ease and choice of gateways from which to enter the US from the Middle East continues to grow – and the benefit for travellers is that they can enter through one city and visit a number of US cities and regions before heading out with a direct flight back to the Middle East from another.”
Amadeus report predicts ‘sustained growth’ in MENA Unveiled at Arabian Travel Market was Amadeus’ latest global report, ‘Shaping the Future of Travel – Macro trends driving industry growth over the next decade’. The report shows that, on a global level, the industry has rebounded strongly from the financial crises of 2009, and, particularly in the Middle East, is poised for a period of sustained growth over the next decade. The research revealed that, on a worldwide scale, overnight visitor flows are expected to grow at 5.4 per cent per annum over the next decade, significantly faster than GDP growth at 3.4 per cent. The Middle East and Africa region, however, is forecast to see higher growth still – at an annual rate of 11.9 per cent. Antoine Medawar, Vice President, Amadeus MENA, said: “It is encouraging to see such a positive forecast for our region. We can all feel
optimistic from the signs of growth in the travel sector across most countries in the region, which is certain to have a halo effect on overall GDP.” Authored by Oxford economics, the report forecasts a 7.6 per cent growth in outbound travel spend for the MEA region over the next ten years; ahead of Europe and the Americas but behind the substantial 17.9 per cent growth in Asia. www.amadeus.com
Air congestion ‘has to be tackled’ While the growth of the aviation market in the Middle East remains stellar, the CEO of Flynas, Raja Azmi, has intimated that regional carriers could be adversely affected by congestion in the skies. Speaking at ATM, he said that, in Dubai and Abu Dhabi, congestion was already an issue, stating: “This has to be tackled when airlines here have orders for 200 aircraft or more each.” Bashar Jawhari, Vice President, corporate strategy & communications at Abu Dhabi Airports, said talks at government level within the GCC were ongoing, insisting: “We expect to resolve this issue in the near future.” In the meantime, the GCC aviation market
remains bullish, and Boeing anticipates demand for at least 2,600 new aircraft over the next 20 years, according to Michael L Warner, Boeing customer leader for airplane development. Offering his reasons for expecting continued growth, Warner points to: “The geographical location with 80 per cent of the world’s population within eight hours’ flying time, plus close coordination between players such as airlines, airport and governments and strong brands such as Emirates, Etihad and Qatar Airways are sustainable drivers for growth and an advantage over competition in regions such as Asia and Europe.” www.flynas.com Inside ATM REVIEW 13
ATM NEWS
Millennium scoops top award Millennium Airport Hotel Dubai has taken the top honour at the World Travel Awards 2014, for the second consecutive year. At a gala ceremony held prior to the opening of ATM, the hotel’s General Manager Simon Moore, accepted the award for Middle East’s Leading Airport Hotel. He acknowledged the professionalism of the
hotel staff, as well as their ability to cater to demanding guests with little time to spare. “We often run at 100 per cent occupancy and have to cope with large numbers of passengers at times when weather or other circumstances might delay their departure,” he said. “I am delighted to accept this award on behalf of my team.” www.millenniumhotels.com
Abu Dhabi’s ‘summer of fun’ launches at ATM At ATM, Sultan Al Dhaheri, Acting Executive Director at Abu Dhabi Tourism & Culture Authority (TCA Abu Dhabi) announced the launch of Abu Dhabi’s summer entertainment programme, saying the emirate was “moving towards becoming a year-round destination with this programme.” The programme includes major international shows, premieres in both film and theatre, ballet, music and comedy performances, as well as special arrangements to screen FIFA World Cup football matches. Sultan Al Dhaheri said the programme, which will run until the end of August, was “designed to appeal to all nationalities and ages, to extend our seasonal appeal – and we want to persuade 14 Inside ATM REVIEW
travellers that any time is a good time to have a great time in Abu Dhabi.” He added that the calendar of events was designed to appeal particularly to “those we are hoping to attract from throughout the GCC and India.”
Inside ATM REVIEW 17
SEMINAR NEWS – OVERVIEW
Talking the talk Each year, ATM’s seminar programme grows and it now incorporates every major trend in travel and tourism. This year, the number of standing-room-only speaking events demonstrates the value placed on seminars by industry professionals, keen to hear from some of the most renowned commentators in their respective sectors. For the past 21 years, the best way for anyone seeking a clear picture of how industry leaders are responding to the big questions of the day, has been to attend ATM and sit in on as many seminars as possible. The Inside ATM Review now offers an alternative, with a roundup of seminar and conference content from around the ATM halls and beyond. With coverage of the Main Seminar Theatre, the Sabre Travel Technology Theatre and the Exhibitor Showcase Theatre, this section of the Review covers subjects as diverse as luxury tourism, travel blogging, the New Frontiers Award and a new style of presentation, known as Pecha Kucha. Nothing can replace being at Arabian Travel Market, listening to the debates and conferences and seminars in their entirety, and even getting involved with questions of your own, but the following pages offer a flavour of the show’s business insight and demonstrate the diversity of speakers and subject matter at the most significant travel trade show in the Middle East.
16 Inside ATM REVIEW
SEMINAR NEWS – MAIN THEATRE
One of the most highly-anticipated ATM seminars is the Vision Conference, in which research analysts Euromonitor International produces its global overview of the industry, and forecasts performance for the coming years in the MENA region. This year, Euromonitor analyst Kinda Chebib, right, offered both positive messages and the occasional word of warning to the gathered industry professionals.
Global overview… with Vision In the main Seminar Theatre it was as usual standing-room-only as WTM senior director Simon Press took to the stage to introduce the WTM Vision Conference. With a focus naturally on the United Arab Emirates, Press said it was “a strong driver of global as well as regional tourism, buoyed by an impressive line-up of full service, lowcost and hybrid airlines. “As travel patterns shift towards new markets,” he said, “the Middle East is becoming front-of-mind for many tourism businesses.” Kinda Chebib or research analysts Euromonitor International followed Press to deliver the organisation’s summary of the outlook for travel and tourism in the region. Clearly, she said, the immediate future is looking bright for the so-called ‘safe haven’ destinations of the UAE, in the face of global economic recovery. One of the biggest success stories for the region, she said, is the phenomenal growth of the Big Three airlines – Emirates, Etihad and Qatar Air – all of which are striding towards global domination, acquiring both
new aircraft and stakes in smaller airlines. And, on the subject of smaller airlines, Chebib pointed out that carriers such as Oman Air, flydubai and Air Arabia are increasingly important players in the region and beyond. The Vision Conference had a strong focus on Dubai – which was driving ahead with a large number of leisure and hospitality developments even before the announcement that it would host the World Expo in 2020. From that point on, the emirate has stepped things up to a staggering degree. Here, Euromonitor figures appeared to be in line with most industry commentators, revealing that some 70 per cent of the anticipated 25 million Expo visitors will hail from outside of the UAE. With the government set on doubling the existing hotel stock to accommodate the huge number of new visitors, the Vision Conference produced a note of warning as Chebib said: “There are concerns about the potential oversupply of hotels after the Expo, when visitor numbers will be hard to maintain”.
Inside ATM REVIEW 17
SEMINAR NEWS – MAIN THEATRE
On Thursday afternoon, ATM revisited a popular theme from last year’s show… how the dynamic between traditional travel agents and tourism boards is (or more realistically, is not) working.
Travel agents v Tourism boards Before introducing the panel, moderator Gemma Greenwood admitted: “Tried and tested methods by which tourism boards try to encourage travel agents to sell their destinations are, by and large, not working. “Agents feel the tourism boards are not operating in the right way – and the tourism boards have one or two grievances with agents too. Gemma Greenwood “We have brought together both tourism boards and agents to discuss what they think would be the best approach to make a change for the better.” Panelist Maheen Mohamed, General manager with Nasser Air Travel, said: “Since the last time we met, unfortunately, I don’t think things have changed drastically. I think we expected a little more, but we haven’t seen the promise that was shown kept up.” She concluded: “Some of the tourist boards have become a little more hands on, but it’s very selective, and there’s so much more to be done.” Sai Rattan, Senior General Manager UAE, Corporate Sales and Holidays, with SNTTA, echoed Maheen’s sentiments, saying: “We were
18 Inside ATM REVIEW
s
hoping the tourism boards would engage with agents a lot more and perhaps be prepared to discuss some common objectives.” Leo Fewtrell, General Manager and Managing Partner at DTTA and Gulf Reps, gave his view on what representative agents could bring to the table. He said: “We’re here on the ground and we work with the travel trade, so we generally know a lot better than many of the tourism boards, who are the agents to approach. “We have no interest in taking people out on education trips who don’t know what they’re talking about, or have no great interest in selling the product that they’re representing.” Leo continued: “Having worked on the other side of the business, as a travel agent; I know that when you take people out to destinations, it’s not just the trip itself that’s important, it’s also the follow-up, so again, being on the ground, we know the members of the travel trade who are going to respond; we know the
travel trade that will call us after a trip wanting to see what collateral we’ve produced.” Finally, Gemma turned to Vassilis Theocharides, a Director with the Cyprus Tourism Organisation, who gave his forthright response to the concerns of the assembled agents. He said: “The dynamics of travel have changed in the Middle East. For Cyprus, if we just take people travelling from the UAE, the majority of people – in fact, 90 per cent – are booking their flights directly on sites such as Expedia. Only ten per cent are booking through agents. “In terms of how things have changed regarding people booking online, the UAE is up 70 per cent in two years. So, what do you do? You invest with the online guys.” He concluded: “It’s not that we’re not bothering with agents now, but if you have a limited budget, you’ve got to spend it accordingly to deliver results.”
Inside ATM REVIEW 19
SEMINAR NEWS – TRAVEL TECHNOLOGY THEATRE
Two prominent travel bloggers – Laurence Norah (LN) and Michael Hodson (MH); both members of the Professional Travel Bloggers Association – came together in ATM’s Sabre Travel Technology Theatre for a fascinating insight into mobile technology through the eyes of the consumer.
Mobile tech... the bloggers’ view LN: I’ve been writing the Finding The Universe blog for about four years – and before that I was actually a software developer and a technology consultant, so I do have some understanding of the technical stuff. We’re not app builders, we’re not out there innovating in the mobile space; what we’re doing is running websites in the travel space and we’re seeing a lot more traffic coming from the mobile sector in terms of consumers consuming our content. MH: I travel maybe 50 of the 52 weeks in a year, so I’m technically homeless, and I’m consuming travel products more than probably any customer you will ever deal with – so what I’ll be bringing to this conversation is the consumer’s view and also the perspective of someone who is running websites that have mobile traffic. And we should be clear that we don’t sell any products on our websites, so we don’t have any apps; we consume apps, but we don’t run them. LN: Most of you in the audience today will
20 Inside ATM REVIEW
have a smartphone or other mobile device, and many of you will be connected to the internet right now. It’s worth considering that, if you are all on it, then your customers will be on it as well. And it’s interesting to think that those mobile devices in your hands are more powerful than desktop computers were five years ago. Mobile is becoming the most important way that users access content – and that’s because pretty much everyone has a smartphone on them and is able to access content pretty much all the time. Here’s an unbelievable statistic: 91 per cent of users have their mobile within reaching distance at all times. You would maybe use your desktop PC for one or two hours day, then it’s in another room; your mobile device is probably on your bedside table when you’re asleep. People wake up in the middle of the night and check their email. If you consider everything that’s happening on the internet right now… 25 per cent of that is over a mobile device. Currently, there are two smartphones for
w every nine people on earth, which is actually more than the number of desktop PCs, so mobile has actually taken overtaken desktop PCs in terms of device penetration. More people are using apps to access content online, than they are using browsers. I’m guessing that anyone here who has a Facebook account and a smartphone is unlikely to launch the browser on their device and go to Facebook. com to log in; they just tap the Facebook app. In fact, when it comes to the younger generation, if you put them in front of a desktop PC with a browser, they often don’t know how to use it at all; if it’s not a little blue icon with an F on it for Facebook, it’s not something they are necessarily going to understand. That’s a really important point, because, unless you’re generating content, the desktop PC is likely to die off in the next ten years, because, as a consumer, you’re going to be looking for the little app icon.
LN: So, the message is that mobile is important, because people are using their mobile devices to book travel, but what does that mean for you, operating in this space?
There are a number of things you need to think about: You need to put your brand into the mobile space – by doing things like registering on FourSquare; you need to think about technology – you have a website, but is it responsive? If someone loads it up on a mobile device, is it going to look right? Is an app right for you? And finally, you might want to consider the option for mobile payments. A number of different operators have tried this, although I’d say that none of them have really taken off as yet. MH: Some of the stuff we’re talking about today is unquestionably expensive; if you want to consider doing your own app, for example. But as a bare minimum, I believe that every business operating in the travel sphere, needs to have some sort of instagram marketing campaign. It’s a hash-tag-oriented search engine and what the companies using this site are doing is creating a sense of community in the mobile space, of people who are promoting those locations, and what they find is that the people who are consuming the product are the ones who are populating the streams of instagram photos. In other words, it’s free advertising for your locations.
Inside ATM REVIEW 21
SEMINAR NEWS – EXHIBITION SHOWCASE THEATRE
Pecha Kucha This year, for the first time at ATM, the Exhibitor Showcase Theatre played host to a Pecha Kucha session, giving exhibitors the opportunity to showcase their product, service or destination in a dynamic new format.
The Pecha Kucha format comprises speakers using just 20 slides for their presentation, each progressing automatically every 20 seconds. The entire presentation lasts six minutes and 40 seconds, the time constraint reducing the risk of the audience losing interest. In the Showcase Theatre, ‘presentologist’ John Quinn described another aspect of Pecha Kucha, which is to help audiences engage with the subjects being discussed. To that end, audience members were given a voting device; following each of the four short presentations, they answered questions about it, giving them the opportunity to win prizes in a fastest-finger-first style competition. Matthew Powell, Director – Regional Product, Africa, Middle East and South Asia, for Travelport, was one of those brave enough to step up for a ‘chit-chat’ (that’s the translation of Pecha Kucha) with an audience of travel professionals. Here’s a flavour of Matthew’s six minutes and 40 seconds on stage. So, in 3, 2, 1, go… 22 Inside ATM REVIEW
“Travelport is a Global Distribution System, with 67,000 agents in around 67 countries… We believe that the traveller is changing. In the age of innovation in technology…some people check their phones over 100 times a day and they expect fast responses and the latest information…they are checking sites like TripAdvisor, they can check what’s the best time to travel, they can see reviews… there’s a huge amount of information out there…the tools that we offer to travel agents have to reflect that, because sometimes, travellers know more than we do – or at least they think they do… “…the GDS model of the past was a set product with set services…Travelport has now moved to an open platform, in which you get to choose what you use and what you don’t… the big thing for us moving forward is making sure we can give you profiling systems, allowing you to understand your customers; what they’re interested in, what they’ve done in the past and they’re likely to do in the future…” And that was just the first minute… Judging by theaudience’s reactionto Pecha Kucha, itis set to be afocal point of the Exhibitor Showcase Theatre inthe future.
SEMINAR NEWS – MAIN THEATRE
Mark Walsh, Portfolio Director, Reed Travel Exhibitions presenting the 2014 New Frontiers Award to P K Ashok Babu, Deputy Consul General, Consulate General of India and Devender Singh, Economic Advisor, Ministry of Tourism, Government of India.
Incredible India honoured at ATM India received the New Frontiers Award for 2014 at a special seminar session held on the third day of ATM. Devender Singh, Economic Advisor, Ministry of Tourism, Government of India, accepted the award from Mark Walsh, Portfolio Director at Reed Travel Exhibitions. Last year’s recipient, the Philippines, represented by Benito C. Bengzon, Jr., Assistant Secretary, International Tourism Promotions, Department of Tourism, providing an update on sector recovery and the outlook for the industry in 2014, with previous recipient Chile, represented by HE Jean-Paul Tarud, Ambassador of Chile to the UAE and P K Ashok Babu, Deputy Consul General, Consulate General of India, also joining the discussion. “The people of northern India were faced with widespread devastation last year in the aftermath of not one, but two life-changing natural disasters, with the Uttarakhand floods and Cyclone Phailin causing wholesale destruction in the space of just five months,” said Walsh. “It took monumental effort and sheer determination on the part of regional and
national government, as well as by people in the affected communities and beyond, to start the rebuilding process and get the local economy back on track; and this collaborative effort embodies the spirit of the New Frontiers Award,” he added. The award was made in recognition of India’s ongoing efforts to rebuild physical infrastructure and its rural tourism economy in the wake of the June 2013 floods and landslides in the northern state of Uttarakhand, and the devastation wreaked by tropical Cyclone Phailin, which touched down in the northeast of the country in October. Accepting the award, Devender Singh from the Ministry of Tourism, Government of India, said: “Tremendous effort is being made at all levels in terms of rebuilding tourism infrastructure in the affected areas, from state government activity to financial support from the Government of India. “It will be a long-term process and we have only just started to get back to normal, but we are optimistic for the future.”
Inside ATM REVIEW 23
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26 Inside ATM REVIEW
Viva Las Vegas!
Las Vegas has always been a major tourist attraction and the new $550 million LINQ retail, dining, entertainment and hospitality district located at the heart of the Las Vegas Strip is set to revitalise the central resort corridor even further. Located at the heart of the Strip, the LINQ will span more than 200,000-square-feet of gross leasable space and will feature over 30 unique retail, dining and entertainment experiences. Another new attraction on the Strip is Vegas’ first stand-alone boutique hotel. The Cromwell Hotel and Casino will offer an exceptional Las Vegas hotel experience. The newest Caesars Entertainment resort will feature 188 rooms and suites, the first restaurant from celebrity chef Giada De Laurentiis, the return of Drai’s After Hours and the introduction of Drai’s Beach Club and Nightclub. Meanwhile, Caesars Entertainment has launched a new website (www.anthologysuites.com) that features a collection of nearly 2,000 luxury suites and villas across its entire Las Vegas portfolio of resorts. For the first time, guests will have access to booking opulent villas and celebratory suites that were previously only available to the highest levels of casino guests. Guests of the Anthology Suites will also have additional guest perks, such as VIP check-in, and select rooms will also include complimentary limo transportation from the airport and 24-hour butler service.
Park life
No trip to the United States would be complete without a trip to a theme park and where better than Universal Studios Hollywood. Go behind the scenes on the world famous Studio Tour to explore where Hollywood movies are made, visit the sets of some of your favorite shows and movies, then get ready to face action head-on in thrilling rides, shows and attractions that put you inside some of the world’s biggest movies. And you can now join the mischievous Minions on an epic adventure you’ll never forget in the all-new 3-D ride, Despicable Me Minion Mayhem. A VIP experience is available so that you can experience an extensive guided tour of Universal Studios Hollywood and its motion picture studio, with access to areas of the studio lot that the general public never sees. Your VIP guide will also escort you to the Park’s most popular rides and attractions, taking you in via special exclusive VIP entrances. Afterwards, enjoy time to explore the vast Park on your own, when you can skip the queues at every attraction, get the best seats in the house for every show and enjoy a gourmet lunch. Meanwhile, Universal Orlando Resort sees the opening of The Wizarding World of Harry Potter – Diagon Alley this summer. The spectacularly themed environment – based on the signature areas of London, Diagon Alley and Knockturn Alley – will double the size of the sweeping area already dedicated to Harry Potter’s adventures at Universal Orlando, expanding it across both Universal theme parks. And – just like in the books and films – guests will be able to travel between the two areas aboard the iconic Hogwarts Express. There will also be shops, dining experiences, and a new ride called Harry Potter and the Escape from Gringotts – a multi-sensory, multi-dimensional journey that will take theme park attractions to a new level. More news from Orlando… Universal’s Cabana Bay Beach Resort welcomed its first guests at the end of March . This brand-new value and moderately-priced property is the fourth on-site hotel at Universal Orlando Resort and evokes the classic, retro-feel of iconic beach resorts from the 1950s and 60s.
EVENT ORGANISING
One of the main challenges in holding an overseas event is finding a reliable partner at the chosen destination which will completely understand your needs while providing a sensitive approach to the cultural needs of the location. Travel Options / Incoming USA offers multicultural, multilingual and well-trained staff making it a reliable event partner. Its dedicated team consists of dynamic planning experts who will lead your event programme to great success. Thanks to the firms creative approach and operational know-how, Travel Options / Incoming USA will tailor-made any request to fit your client needs, budget and philosophy. In addition, its Concierge Marveluxe team is dedicated to satisfy the travel needs of all your VIP clients in order to turn their travel experience to a memorable one. www.trvloptions.com / www.incomingusa.com
Inside ATM REVIEW 27
BRAND USA
Taking a bite of the Big Apple In 2013, New York City welcomed a record 54.3 million visitors, generating $39.4 billion in direct spending and $58.7 billion in total economic impact. Tourism, now the city’s fifth largest industry, employs more than 370,000 people in the hospitality and leisure sector. Home to more than 98,000 hotel rooms (and anticipated to reach 100,000 rooms by the end of the year), New York City offers visitors more options to experience—and stay in—many of the city’s vibrant neighbourhoods across all five boroughs. In addition, the city is the nation’s number one port of entry, has the highest number of international visitors and is the number one city destination for tourism spending. The city is on track to achieve 55 million annual visitors by
28 Inside ATM REVIEW
2014, one full year ahead of the original 2015 timeline. And, if you want to stay somewhere a bit different when visiting the Big Apple, there are 18 city hotels in the city’s Design Collection, which showcase unusual design. Visit www.nycgo. com/designcollection for more information but, whether you are planning on staying in a Design Collection hotel or elsewhere, make sure that you book early as hotels in New York are in great demand. Sunday nights seem to offer the most availability according to NYC & Company, which has launched its Sunday Night Stays programme in a bid to stimulate bookings on this underused day of the week.
Team America TeamAmerica is a full service receptive tour operator with a portfolio consisting of over 800 global accounts in 65 countries. With local offices in New York, Miami Beach and Los Angeles, the company offers extensive allotments of rooms within the United States, Canada, the Caribbean and Mexico, as well as a host of land services to satisfy every need. Staffed with a multilingual team and located in the heart of Manhattan, its state-of-the-art Headquarter Concierge Centre welcomes clients seven days a week, providing personalised assistance away from home. In addition, TeamAmerica’s dedication to
offering the highest calibre of customer service has inspired its growing number of global sales support offices located in key cities such as Milan, San Remo, Moscow, Barcelona, Sao Paulo, Tel Aviv, Sofia, London and Melbourne.
RELAX LIKE THE STARS Los Angeles has recently announced the openings of two hip new properties. The 180-room Ace Hotel is located in the revitalised Historic Core near many landmarks, including Grand Central Market, Walt Disney Concert Hall and a selection of fabulous restaurants, while The Line is situated in the heart of Koreatown – a trendy area brimming with restaurants and nightclubs. The Line has a loft-like, urban feel with the
use of industrial materials and cement surfaces, coupled with streamline furnishings and occasional burst of color. But, if you’d rather stay somewhere more traditional, you can rest assured that the iconic InterContinental Los Angeles is more than just a Hollywood landmark. Located just minutes from Century City’s major entertainment studios, the shopping Mecca of Rodeo Drive and, of course,
the Pacific Ocean’s sun-soaked beaches, the InterContinental is the perfect place to call home while discovering the very best that LA has to offer. The property features 361 luxury guest rooms and suites, all of which offer unbeatable panoramic views, and the facilities and amenities that you would expect from a worldfamous hotel.
Inside ATM REVIEW 29
BRAND USA
Exploring the
Sunshine State And, talking of theme parks, Florida welcomed a record 15.2 million international visitors in 2013, and its appeal to first-time tourists continues to grow. The Sunshine State’s 825 miles of shimmering beaches, mild climate and natural beauty are attracting visitors who want to experience luxurious resorts and spas, fine dining, top-tier shopping, international flair and the world’s most famous theme parks. Universal Orlando Resort, Walt Disney World Resort, SeaWorld Orlando and LEGOLAND have all been adding to their offerings, with new rides, hotels and shows all recently opened to the public. Meanwhile the Kennedy Space Center recently opened a $100 million home for Space Shuttle Atlantis. The historic NASA
30 Inside ATM REVIEW
spacecraft, exhibited as if in orbit, flew 33 missions into space, including flights to the Hubble Space Telescope and to the International Space Station. To the south, visitors find glamour and style in Miami and tropical refuge in the Florida Keys. New resorts, restaurants and attractions open continuously around Florida, along with new programmes to enhance hospitality and visitor experiences. One particular development to watch for is All Aboard Florida, a highspeed train that will provide intercity rail service between Miami and Orlando , with stops in West Palm Beach and Fort Lauderdale.
The Allure of
San Francisco
Part of San Francisco’s magic is its manageability. The city is conveniently confined to a 49-square-mile peninsula, meaning that it is easy to navigate from a visitors, perspective – of which San Francisco hosts more than 16 million a year. Its attractions range from Fisherman’s Wharf to Twin Peaks, from the Golden Gate Bridge to Golden Gate Park. Its shopping hub, Union Square, anchors a who’s who of world famous stores, while over 3,000 restaurants are cooking up everything from Afghan to Vietnamese. San Francisco has more cultural attractions
per capita than any other American city. The arts and cultural community is home to vibrant alternative theatre, dance, visual arts, cabaret and music as well as an opera, symphony and ballet of preeminent stature. It supports several major museums and a galaxy of private galleries and speciality museums. Getting there has never been easier, with San Francisco International Airport (SFO) offering non-stop flights to more than 31 international points on 30 international carriers. The Bay Area’s largest airport connects non-stop with 76 cities in the US on 15 domestic airlines.
Getting there has never been easier, with San Francisco International Airport (SFO) offering non-stop flights to more than 31 international points on 30 international carriers.
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BRAND USA
The New L.A. Story No American vacation would be complete without a trip to Los Angeles. Whether you want to catch a glimpse of stardom or just get a taste of the A-list life yourself, LA is filled with the lifestyle, playgrounds and landmark attractions of the rich and famous. For the shopping enthusiast, LA is where the trends begin. From digging through vintage stores to shopping for luxury goods, top shopping centres include the Fashion District in Downtown LA, The Grove, Beverly Center, Hollywood & Highland, Glendale Galleria, Third Street Promenade and Santa Monica Place. Rodeo Drive is a must-see for the jet set, while bargain hunters have several outlets to choose from.
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Universal Studios Hollywood offers entertainment for all, and has recently opened Despicable Me Minion Mayhem, a 3D Ultra-HD motion simulator ride that will bring the blockbuster to life. Along with the new attraction, Universal Studios Hollywood will also welcome Super Silly Fun Land, an all-new elaborate kids’ play zone. Getting in and out of the city is a glamorous affair too, thanks to the new Tom Bradley International Terminal (TBIT), which recently underwent a $1.9-billion renovation at Los Angeles International Airport (LAX).
Dallas/Fort Worth tops customer service Now celebrating its 40th anniversary, the Dallas/Fort Worth international airport (DFW) is the world’s fourth busiest, serving 60 million customers a year, while also ranking among the top ten airports worldwide for customer service for seven consecutive years. In a bid to maintain such high customer service standards, DFW recently unveiled 30 automated passport control (APC) kiosks, which reduce waiting times for both US and Canadian citizens who arrive at DFW from international destinations. The system alleviates lines by allowing returning travellers to enter their own passport information on touch-screens and register their return to the country electronically. While at DFW, travellers can take advantage of its customer rewards programme, Thanks Again, that allows passengers to earn airline mileage rewards for purchases at the airport. Passengers are also encouraged to use the official DFW mobile app, which provides the latest information and updates regarding flights, parking, shops, restaurants and airport services.
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BRAND USA
When in California…
The choice of accommodation in California is second to none, but there are some hotels and resorts that really stand out from the crowd. Adjacent to the resort community of Santa Barbara, Bacara Resort & Spa is located along California’s most spectacular stretch of Pacific paradise, between the ocean and the Santa Ynez Mountains. With 78 acres of oceanfront property – including two miles of natural beach – Bacara is the perfect vacation destination place. Meanwhile, sprawling across 15 acres of pristine southern California coastline, Balboa Bay Resort is a 4-Diamond Resort distinguishing itself as the only full-service waterfront property in the coast of Newport Beach, located halfway between Los Angeles and San Diego, CA. Stay in one of the comfortable 159
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guests rooms and 10 suites and enjoy the wide range of resort amenities. For a San Diego luxury hotel unlike any other, Estancia La Jolla Hotel and Spa blends charming influences with modern comforts. Featuring 10 acres of rancho-style architecture, 210 elegantly appointed rooms and lush gardens Estancia La Jolla offers a relaxed, serene setting that celebrates the idyllic coastal climate for all who visit. Finally, set against the rolling vineyards of California’s Wine Country in Napa Valley, The Meritage Resort and Spa offers wine tasting, award-winning cuisine, rejuvenating spa treatments, bowling and luxurious accommodation. Steam grottos, soaking pools, waterfalls and revitalising spa treatments complete the package.
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HOTELS AT ATM
Middle East hotels…
seriously on the up
The growth in ATM participation from the hotels and hospitality industry reflects both the general and continuing trend towards tourism in the emirate and, of course, the fact that Dubai will host the World Expo in 2020. The mega-event is expected to attract some 25 million visitors over a six-month period, with more than two thirds of them coming from outside the UAE. The government of Dubai is looking to add as many as 45,000 additional rooms to the current
supply of over 80,000. With hotel construction close to the Expo 2020 site set to go into overdrive, it’s hardly surprising that the total investment in hotel capacity anticipated between now and 2020 is estimated to be a little over US$7 billion. In the rest of the UAE and neighbouring countries, governments are hopeful that Dubai’s Expo will boost their own tourism industries, and hotel groups are clearly singing from the same hymn sheet, as the following pages will show…
Inside ATM REVIEW 37
HOTELS AT ATM
Rixos brings ‘all-inclusive’ to UAE
Rixos Hotels has opened the UAE’s first allinclusive resort, the Rixos Bab Al Bahr, on Al Marjan island in Ras Al Khaimah. Introducing the concept at ATM, the resort’s General Manager, Haytham Omar, said: “We are creating something for all market segments; we have families enjoying everything we have to offer, and we have couples relaxing and enjoying their own areas.” The 655-room, 165,000-square-metre hotel is the second developed by Rixos in the UAE, with Rixos The Palm in dubai having opened in March 2012. Omar explained that the early success of the Bab Al Bahr – which is aiming to achieve 60 per cent occupancy in year one – is due to overseas guests, generally staying at the resort for the entire length of their vacation. He said: “Our average length of stay is up to eight to nine nights, which is fantastic. From
38 Inside ATM REVIEW
Dubai airport, within 50 minutes, they can be in our hotel. “The majority of our business comes from the CIS market, the UK market, Germany, Austria and Eastern Europe,” he added. According to Omar, some 80 per cent of the hotel’s guests are from overseas, although he said: “We are developing the local market from Dubai and Abu Dhabi. We need to educate the local market about this concept, because a lot of people here are not aware enough of how it works.” Explaining the nature of the all-inclusive concept at Bab Al Bahr – where room rates will cover all meals and entertainment, as well as activities such as yoga and pilates – Omar said: “When you come to the hotel, you simply check in and it is hassle-free; no wallets, no signing checks. You eat, drink, enjoy and relax.” www.rixos.com
WHERE THERE’S SOMETHING FOR EVERYONE. Luxury beckons at the all-new Rixos Bab Al Bahr. The leading Turkish hospitality chain Rixos Hotels introduces the first ‘All Inclusive – All Exclusive’ resort in UAE, nestled on the serene beach of Al Marjan Island in Ras Al Khaimah. Discover the ‘All-Inclusive’ holiday experience that offers complete value for money. Pay once and enjoy a comfortable stay in luxurious rooms and suites, 24-hour unlimited food and beverages as well as world-class entertainment for all ages. Surrender to pure indulgence at the resort’s magnificent spa or feel the rush of adrenaline with high-octave activities. Discover the nuances of leisure for the young ones with exclusive clubs for kids and teenagers.
So, where are you? To enjoy the inaugural offer of AED 1,800 per night*, call +971 7 244 4400 or email reservation.rak@rixos.com
PalaceAtmHalfPage SM no stand NO.pdf
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www.rixos.com
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Al Marjan Island, P.O. Box: 14744, Ras Al Khaimah, UAE P: +971 7 244 4400
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HOTELS AT ATM
Le Méridien Dubai unveils rebranding at ATM Following the completion of new rooms and meeting facilities at the hotel, Le Méridien Dubai has officially rebranded as Le Méridien Dubai Hotel & Conference Centre, the company announced at ATM. A multi-million-dollar expansion included an extension to house Le Royal Club, as well as an expanded 2,500-square-metre Grand Ballroom that can now accommodate 1,500 guests, along with six new meeting venues.
Le Royal Club offers rooms among the largest of their kind in the city, plus a private check-in lounge and outdoor pool, as well as afternoon tea and cocktails in the exclusive Le Royal Club annex. Le Méridien Dubai Hotel & Conference Centre has also become one of the first hotels in the region to have an in-house medi spa facility. www.lemeridien.com
Sharjah Novotel a ‘milestone’ for business tourism A new Novotel, set to opening in 2017, is to become the official business hotel for the Sharjah Expo exhibition site. Details of the development – Novotel Sharjah Expo – were revealed at ATM, by Sheikh Sultan bin Ahmed Al Qassimi. He said the property would include club floor rooms, executive suites and a business centre, with workstations, plus a function room of around 200 square metres. Although the primary function of the hotel will be to accommodate visitors to the Expo Centre, the hotel will also target leisure travellers, promising to offer easy access to the emirate’s
Mohammed Ali Al Noman
family leisure areas. Mohammed Ali Al Noman, chairman of Sharjah Commerce and Tourism Development Authority (SCTDA), explained that the planned hotel would be a milestone for business and MICE tourism in the emirate. He said: “Sharjah has been working hard to establish its importance as a MICE destination and this is a solid and new cornerstone to help propel our world-class conferences and events forward.” www.novotel.com
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HOTELS AT ATM
The TI’ME Oak Hotel
Dubai Metro key factor in TI’ME expansion Research commissioned by TI’ME Hotels has revealed that hotel apartments close to Dubai Metro stations and shopping malls are at the top of visitors’ wish lists. The development team at TI’ME have identified the emirates’ expanding rail network as a key factor to be considered in its expansion plans, while revealing that 234 hotels and apartments are already situated within two kilometres of one of Dubai’s 47 Metro stations. Mohamed Awadalla, CEO of TI’ME Hotels, said that the importance of transport links was being investigated as part of the group’s plan to open new hotels in the UAE and beyond – particularly in Qatar and Saudi Arabia. A first phase was analysing the impact of Metro station proximity on GCC visitor booking decisions, whether choosing to stay for business or leisure. “The research discovered that out of around 530 hotels and apartments listed with international reservation websites, such as booking.com, at least 44 per cent were situated
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within two kilometres of a Metro station,” said Awadalla. He added: “Accessibility to the Metro network is giving hotels an opportunity to drive occupancy rates as location remains a top priority for guests. Western guests are familiar with public transport and also appreciate its efficiency and sustainability, while for other nationalities it is a cost-effective alternative to taking taxis. GCC nationals also like the novelty value, coming from a region where rail travel is still at an embryonic stage.” Official figures from the Dubai Roads & Transport Authority (RTA) report that 138 million people used the Dubai Metro in 2013, almost double the 2011 figure. Plans to extend the existing network ahead of Dubai’s hosting of Expo 2020 are also under development, with an additional 36 kilometres of track and 21 new stations taking the total number of stations across the network to 70 by 2020. www.timehotels.ae
Introducing an innovative brand...
The Freedom of Choice
www.auris-hotels.com
Inside ATM REVIEW 43
HOTELS AT ATM
Auris grows and restructures The Auris Group of Hotels reports that it will open five new properties in Dubai, between next year and 2017. The pipeline comprises Auris Assma Hotel in Al Barsha, Auris Lodge Al Furjan, Auris Inn Muhanna Hotel in TECOM, Imperial Residences Dubai Land and Auris Lodge Deira Hotel, and is set to increase the groups total of units to more than 2,400 across 11 properties. Managing Director Hatem Gasmi, stated that, in an effort to support the significant growth in
the group’s portfolio, internal restructuring is underway, including the splitting of the brand into separate 5, 4 and 3 start hotel categories, plus a Hotel Apartments and Serviced Residences category, under the new Auris Apart brand. This, Mr Gasmi explained, will “ensure that we focus on meeting the expectations of our different clients without compromising service standards or their budgets”. www.auris-hotels.com
Upgrade for JA Resorts’ Maldives hideaway JA Resorts & Hotels has revealed its new resort in the Maldives is to be relaunched as JA Manafaru. The resort, situated in the Northern Haa Alifu Atoll, is the group’s second Indian Ocean property and comprises beach and water villas, seven food and beverages outlets, a spa, dive centre and children’s entertainment areas. JA Resorts & Hotels, which began its international expansion with a boutique premium hotel in the Seychelles, has announced plans to further grow its international portfolio. www.jaresorts.com
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HOTELS AT ATM
Flora Hospitality unveils expansion plans Flora Hospitality, One of the leading nonalcoholic hospitality brands in the UAE and India, unveiled its plans for an extensive expansion at this year’s ATM, with five new properties expected to open within the next three years. Currently operating seven hotels and hotel apartments in the UAE, Flora Hospitality has invested over AED1200 million, and expects to be able to offer a portfolio in Dubai of at least 12 hotels by 2017, increasing its total inventory from over 780 rooms to more than 2,000. The expansion plan includes a 500-room property project in Palm Deira as well as a luxury 380-room Hotel in the Dubai downtown in Burj Khalifa Master Community, offering fully-serviced apartments targeting both
News bites….
business and leisure travellers. Construction begins on the sites this year and both properties are expected to be completed in mid of 2017. Furthermore, two four-star properties of 186 and 272 rooms are being developed; the first at Al Barsha close to the Mall of the Emirates, expected to open by the end of this year; the second in Al Garhoud, close to Dubai International Airport.
Developer Damac Properties has announced that its new hotel brand, Naia by Damac, will be part of its recently-announced luxury shopping strip in Dubai. The 1.3-kilometre shopping and entertainment area in Dubai, aims to emulate the success of Rodeo Drive in Beverly Hills and the Champs Elysees in Paris. Damac launched the first units in the project, including the Naia Hotel Rooms and Hotel Apartments, which will have views across the Trump International Golf Club. The Naia development will have around 500 units and provide a 40 per cent share in room revenue to owners.
Hilton Worldwide has launched Curio a new hotel brand. According to the company, Curio has been created for travellers seeking local discovery and authentic experiences, and will be a carefully selected, global collection of distinctive four- and five-star hotels. In a recent interview, Hilton Worldwide’s CEO, Chris Nassetta, said: “Our customers and owners have expressed strong interest in a brand from us that includes hotels that can retain their unique identity but also deliver the many benefits of our system, including our Hilton HHonors guest loyalty program. “That desire, combined with the current size of the independent hotel market and demand for differentiated hotel stays around the world, made for the right timing for this launch. Curio is an exciting new brand for us – one of two unique concepts we’ll introduce this year.”
www.damacproperties.com
www.hiltonworldwide.com Inside ATM REVIEW 45
AVIATION NEWS
Tales of Arabian flights…
with no frills
John Strickland
The future of the Big Three Gulf airlines, Gulf airport expansion and the role now being played by low-cost carriers. Just some of the aviation-related subjects up for discussion and debate within this year’s ATM seminar programme. Respected air transport consultant John Strickland was on hand to moderate a number of debates and he offers his thoughts on the region’s budget airlines, in particular describing his admiration for innovators such as Air Arabia and FlyNas. At Arabian Travel Market, I was impressed by how the arid desert landscape is nurturing some stunning success stories for low-cost airlines in the region. Take Air Arabia, now ten years old; it’s Chief Executive Officer, Adel Ali, has been there from start. His inspiration for the airline came from understanding the potential monotony of crossing the desert for anyone in a rush. There were then 600 weekly buses leaving the United Arab Emirates for destinations around the Gulf and Adel recognised the boredom that bus passengers can face; after the first kilometre, the next 1,000 kilometres would be exactly the same. Endless sand punctuated with checkpoints. Nor was it cheap to take one of these buses. This simple understanding of the passenger market has repaid him in spades. It was easier to get people off the buses
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with affordable flights, but harder to tempt passengers off rival carriers, due to early misconceptions of low-cost carriers. Nevertheless the airline filled 60 per cent of seats within two months and broke even in its first year. It’s been a story of profit ever since – with the model extended to Morocco and Egypt and just this May, Ras Al Khaimah. This is pretty impressive when you consider the airline has had to roll with the punches of the Arab spring, the tensions in Egypt and now in Ukraine. One solution has been to move aircraft around, exploiting new opportunities, thus keeping the company profitable. It’s worth remembering that not everyone in the Gulf is rich and there is a demand for low fares. Yet Adel has succeeded in creating a company that can attract passengers and manage finances. He successfully launched the airline on the stock market becoming the only quoted gulf carrier.
Raja Azmi
The FlyNas story The CEO of the Saudi low-cost carrier FlyNas has had different challenges to face. Raja Azmi arrived with vast experience in the successful Asian low-cost air market, with Air Asia, as well as long-haul Air Asia X. However the Saudi market is different. The national airline, Saudia has been protected and it was felt that there was not a level playing field – with the state airline benefiting from subsidised fuel. This, along with domestic fare capping, are two issues that need “sorting out”. Under Raja ,FlyNas has evolved into a hybrid low cost carrier “plus”. It has high service standards and even a business class. Untypically for an LCC it has recently gone into long-haul – a model that is not yet proven in the global market. However, FlyNas sees the opportunity to tap into the unique Saudi religious market; five million passengers travel by air to make the Umrah pilgrimage to Mecca and Raja expects to get a fair share of that on routes from the UK and Malaysia, for example. The key message coming out of this region during Arabian Travel Market was one of genuine optimism, vision and energy. Not arid at all.
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NEWS INDUSTRY
The latest events and announcements in the global travel and tourism industry AIRLINES AND AVIATION
Qatar Airways to operate from Hamad International Hamad International Airport (HIA) is now the operational home of Qatar Airways, with all its flights arriving and departing from the new airport. Qatar Airways’ CEO Akbar Al Baker, said in a statement: “The move of our entire operations to HIA is a momentous occasion for Qatar Airways, and one that we have been preparing for extensively for a long time.” He explained that: “With the capacity to handle 8,700 customers per hour, HIA will provide a seamless, hasslefree experience to our passengers, from check-in to passport control and boarding.” The Passenger Terminal Complex at HIA comprises 138 check-in counters on five islands, with 108 counters for Qatar Airways economy passengers and all other airlines, 16 counters for Qatar Airways business class travellers and a further 14 luxury check-in counters for the airline’s firstclass passengers. HIA also offers e-Gates, which are already operational in both the
Hamad International Airport
departures and arrivals areas, as well as boasting over 70 retail outlets and 30 cafes and restaurants – spread across 40,000 square metres. The airport – which has been beset by construction issues, causing great delay to its opening – will initially have the capacity to accommodate 30 million passengers a year, rising to 50 million a year once operating at full capacity.
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INDUSTRY NEWS HOTELS AND HOSPITALITY
MUSCAT AND DUBAI TOP HOTELS GROWTH LIST
A new report is predicting Muscat and Dubai will have the best revenue performing hotel markets in the Middle East next year. The study by PricewaterhouseCoopers (PwC) says hotels in the Omani capital will enjoy a rise in revenue per available room (RevPAR) of 6.6 per cent, following similar growth this year. A similar forecast is made for Dubai, with next year’s RevPAR growth expected to be 6.5 per cent. Hotel performance in six cities – Dubai, Abu Dhabi, Doha, Jeddah, Muscat and Riyadh – is featured in the study, with all predicted to grow, although none are yet back to the occupancy rates of 2008. Viren Lodhia, Hospitality and Leisure Lead Partner at PwC Middle East, said: “Travel to the Middle East is expected to grow strongly over the next ten years, with the region’s strategic location and investment in airports and infrastructure CHINA TOURISM
Chinese tourism industry report identifies trends
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establishing it as an important global hub. “Combining this with future mega events being held in the region and an emergence as a magnet for both MICE and shopping travellers, provides for a wealth of opportunities for both hotel operators and owners”. Alison Cashmore, Hospitality and Leisure Director at PwC Middle East, added: “It’s a mix of ADR and occupancy, with the cities really falling into two camps. In the strongest RevPAR growth cities of Doha, Dubai and Muscat we are anticipating ADR being the strongest metric. “However for Riyadh, Jeddah and Abu Dhabi, occupancy is the principal driver with low growth forecast in ADRs. Each city has its own supply and demand characteristics and may be on different stages on the hotel life cycle. While supply could cast a shadow in some cities, the strong demand should continue to drive growth.”
The absolute dominance of domestic tourism has been highlighted in a report on Chinese tourism. In 2012, domestic tourists accounted for 87.8 per cent of all tourism revenue in the country, equating to a staggering RMB2.27 trillion (US$364 billion). Last year, growth in the industry was estimated at 14.3 per cent year on year.The year-on-year increase in travel agencies, between 2007 and 2012 is 5.3 per cent and, although there was negative growth in the number of two-star hotels, three-, four- and fivestar hotels grew by 5.9 per cent, 10.5 per cent and 13.9 per cent respectively.
AVIATION
Boeing celebrates biggest-ever aircraft order Chicago-based aircraft maker Boeing has completed a deal to deliver 80 737 airliners to Chinese carrier China Eastern Airlines Corp. Delivery of the order – a combination of 737800 and upgraded Max models – will start in 2016. The deal comes at the perfect time for Boeing, as it faces strong competition from the Toulousebased Airbus Group. According to Boeing itself, the firm’s planes account for around 50 per cent of the commercial
jetliners operating in China. And if the country’s expansion plans come to fruition, it will soon be the world’s largest market for aircraft manufacturers. In fact, according to the market research body CAPA Centre for Aviation, no fewer than 13 Chinese airlines are expected to have a fleet of 100 aircraft by 2020.
WELLNESS TOURISM
New report forecasts wellness travel trends Wellness Tourism Worldwide (WTW) has released its 2nd annual travel trends report. The organisation’s analysis of site visits, literary review, surveys and interviews, as well as feedback from consumers, travel trade, healthcare professionals, wellness experts and academia, is intended to help businesses in the sector boost sales and maximise profits. Camille Hoheb, wellness travel industry expert and founder of Wellness Tourism Worldwide, said: “This forecast will encourage consumers and business to think of vacation travel in new ways.”She continued: “Our data shows that consumers view vacations as an important way to improve health, happiness
and productivity. Vacation trips are often a catalyst for transformation and consumers view wellness travel as a personal investment.” While last year’s forecast focused on the impact of wellness on air transit, hotel accommodation and destinations this year’s report is focused on business and marketing strategy. Among the ten trends for this year, the report highlights the rise of wellness travel agents, the burgeoning secondary wellness market, slow travel, affluent vacationers and spas. To request a free download of the Infographic Top 10 Wellness Travel Trends for 2014, visit www.wellnesstourismworldwide.com.
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INDUSTRY NEWS TRAVEL AGENTS
Al Basel Group expands to meet luxury demand The Al Basel Group of companies has announced plans to open a new travel agency in Dubai. Located in Dubai World Central, the Tuwaiq agency is expected to draw its clientele largely from the middle and upper-class segments from the UAE, Saudi Arabia, Egypt, Turkey, Qatar and Kuwait. The Al Basel Group alredy boasts a diverse business portfolio, with interests in investment and real estate, as well as many years’ experience within the travel and tourism industry. The move into travel agency was prompted by a reported increase of 25 to 35 per cent in business for the group, from high-end resorts
and hotels. Basel Al Kasem, founder of the Al Basel Group said: Basel Al Kasem “All roads lead to the Middle East as more and more tourists are opting to visit the region and see the many tourist attractions that we have to offer.” He continued: “The UAE’s recent win to host Expo 2020 has also acted like a catalyst that brings the UAE and the rest of the region in the spotlight, which is expected to drive in a large influx of visitors. This just means more business for our hotels, resorts and airports.”
GREECE TOURISM
Tourism aiding Greek recovery Following six years of recession, there are now reportedly signs of positive economic growth, largely due to the success of its tourism industry. In the first three months of this year, international tourist arrivals in Athens were up 30 per cent, compared with the same period a year ago. Andreas Andreadis, president of theAssociation of Greek Tourism Enterprises, said: “Forecasts show 2014 will be another record year.” Those forecasts say up to 18.5 million people will visit Greece during 2014, compared with 17.9 million in 2013, and they are estimated to generate revenue of €13 billion (US$18 billion). Andreadis confirmed that “Almost all traditional
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and new markets are showing positive, encouraging signs.” He also said that it would add nine percentage points in Greece’s GDP and create around 300,000 jobs, if the country could hit its target of receiving 24 million visitors by 2021. Recent WTTC figures revealed that, in 2012, tourism accounted for 16.4 per cent of Greece’s GDP, which is among the highest contributions in Europe.
SRI LANKA TOURISM
Record numbers for Sri Lanka arrivals Sri Lankan tourism is celebrating a bumper month for tourist arrivals, with growth of over 20 per cent, compared with the same period in 2013. The figure of 90,046 tourists arriving in the country during the month, compared with 74,838 in May, 2013, and was the highest number ever recorded for the period. And the stellar rise in arrivals for May was more than matched by figures for the first five months of the year; they are up 26.5 per cent on the corresponding period in 2013, with 624,178 tourists arriving in the country.From Western Europe, French nationals topped the list of arrivals growth,
with Germany next, followed by the UK.Tourists from South Asia, were up by 19.4 per cent, while East Asian arrivals grew by an impressive 51.9 per cent. None of these figures, however, could match the growth in arrivals from China, which saw an incredible 139.6 per cent rise, with 43,885 tourists from the nation arriving in Sri Lanka. Through their global marketing campaigns, the Sri Lankan tourism authorities are aiming to achieve a 2.5 million tourist arrivals target by 2016.
Inside ATM REVIEW 53
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