5 DECEMBER 2015
ISSUE 317
ST. REGIS OPENS IN AL HABTOOR CITY MARRIOTT INTERNATIONAL HAS REVEALED ITS INTENTION TO PURCHASE STARWOOD HOTELS & RESORTS WORLDWIDE FOR USD12.2 BILLION, CREATING THE WORLD’S LARGEST HOTEL CHAIN.
09 AIRPORT BUDGETS TO HIT USD8.7 BILLION
12 IN THIS ISSUE MARKET UPDATE
02
HOTEL PERFORMANCE
06
ACCOMMODATION
08
AIR
12
INTERNATIONAL
16
RENDEZVOUS
17
WHO'S MOVED
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TRAVEL TALK
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AGENT CORNER
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PHOTO ALBUM
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NEWS & EVENTS
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MARRIOTT TO ACQUIRE STARWOOD
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MARKET UPDATE TRAVEL TRADE PUBLICATIONS MANAGING EDITOR Mary Kammitsi mary@traveltradeweekly.travel
Global Tourism Grows Steadily from January to August International tourist arrivals worldwide grew 4.3 percent in the first eight months of the year, with Europe leading the way, according to the latest reports by the World Tourism Organization (UNWTO).
ASSISTANT EDITOR Maria Kazeli SENIOR JOURNALIST Rita Kasziba CONTRIBUTOR
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Ana Mladenovic PRESS Maria Demetriadou Pauline Shahabian Inna Armeanu
otal tourist numbers reached 810 million, a year-on-year increase of 33 million. In terms of regional performance, European arrivals rose five percent, while the Americas, Asia Pacific and the Middle East each reported a four percent surge. Arrivals to Africa slumped five percent. “We need to continue advancing fundamental issues such as travel facilitation and connectivity while placing sustainability at the core of our action,” said Taleb Rifai, secretary general, UNWTO.
DESIGN & LAYOUT Elena Stylianou WEB & BUSINESS DEVELOPMENT MANAGER Savvas Kammitsis DIRECTORS Andreas Constantinides Mary Kammitsi
IHG: AMEA RevPAR Up 7.1 Percent
HEADQUARTERS T.T.W. Travel Trade Weekly LTD P.O. Box 25255, Nicosia 1308 Cyprus Tel: +357 22 021607, Fax: +357 22 103670 WEBSITE www.traveltradeweekly.travel
InterContinental Hotels Group (IHG) recorded a 7.1 percent RevPAR improvement from the Asia, Middle East and Africa (AMEA) region for the third quarter (Q3) of the year, driven by solid increases in occupancy and rate.
EMAILS info@traveltradeweekly.travel sales@traveltradeweekly.travel editorial@traveltradeweekly.travel
MENA EXCHANGE RATES As of
3/12/2015
COUNTRY
CURRENCY 1USD=
Bahrain (BHD)
Dinar
0.37
Jordan (JOD)
Dinar
0.71
Oman (OMR)
Rial
0.39
Qatar (QAR)
Rial
3.64
Saudi Arabia (SAR) Riyal
3.75
UAE (AED)
Dirham
3.67
Algeria (DZD)
Dinar
108.30
Egypt (EGP)
Pound
7.82
Iran (IRR)
Rial
30,097.70
Iraq (IQD)
Dinar
1,107.16
Kuwait (KWD)
Dinar
0.30
Lebanon (LBP)
Pound
1,505.00
Libya (LYD)
Dinar
1.40
Morocco (MAD)
Dirham
10.07
Syria (SYP)
Pound
188.81
Tunisia (TND)
Dinar
10.07
Yemen (YER)
Rial
214.89
2
InterContinental Doha The City
Currencies shown in blue are fixed against the US Dollar
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id-single digit growth was reported from the Middle East, where trading was fuelled by strong demand in Saudi Arabia, partially offset by challenging market conditions in the UAE. Globally, comparable RevPAR was up 4.8 percent, led by a 3.6 percent rise in rates. During the three-month period, the company has continued to expand its network with the signing of some 16,000 rooms, the highest Q3 figure since 2008. 5 DECEMBER 2015
WEEKLY NEWS
Record Quarter at Hamad International Airport Hamad International Airport (HIA) handled some 8.4 million passengers in the third quarter of the year, 23 percent more than in the corresponding period in 2014.
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n August alone, over three million travellers passed through the hub, an unmatched figure for a single month, both at HIA as well as the Qatari capital’s previous airfield. “We partially owe this phenomenal increase in our operations to the increased frequency of several of our patron airlines’ weekly flights from HIA, and we have also had several new airlines commence operations at HIA. This increase is also a testament to the continued rapid growth of Qatar Airways, Qatar’s national carrier,” commented Badr Mohammed Al Meer, chief operating officer, HIA.
Automatic Boarding System in Abu Dhabi
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bu Dhabi International Airport has become the first in the region to launch an automated traveller document authentication system, utilising the latest innovations to deliver a seamless passenger experience. Developed by SITA, the new technology, which is now in place in Terminals 1 and 3, verifies mobile, home-printed and original boarding passes, before passport control, thus, improving security and reducing waiting times. As Ahmad Al Haddabi, chief operations officer, Abu Dhabi Airports, revealed, a number of other initiatives in and around the hub are also in working process to further simplify travellers’ journey.
Abu Dhabi International Airport
Hamad International Airport
AccorHotels Partners with Samsung
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ccorHotels joined forces with Samsung Electronics to roll out SMART Hospitality Display technology across the hotelier’s properties, spanning 92 countries. The upgrade will be available in guestrooms and common areas and will provide the establishments’ staff and visitors with all-in-one tools and extended flexibility, ranging from room lighting and energy use to personal services and workflow management. It will also facilitate the implementation of a cloud-based wireless printing solution as well as digital content including video-on-demand and streaming platforms. The two companies have also announced plans to jointly design and build an experimental hotel in Seoul, featuring stateof-the-art technology and multipoint connectivity for a more interactive guest experience.
5 DECEMBER 2015
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WEEKLY NEWS Seven Tides Promotes Electric Car Use
Mall of Qatar Pioneers Family Entertainment Concept
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XtremeLand
Marriott Executive Apartments Dubai Creek
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even Tides has partnered with Dubai Electricity and Water Authority (DEWA) to install electric car chargers at two of its five-star properties in the emirate. The initiative is part of the developer’s ongoing commitment to a sustainable agenda, and electric car owners will now have a choice of two recharging points, with docks located at Anantara The Palm Dubai Resort and Mövenpick Ibn Battuta Gate Hotel Dubai. Abdullah bin Sulayem, CEO, Seven Tides, commented, “DEWA is pioneering the adoption of sustainable technology across its remit and has already installed a number of charging points across the emirate, but we have any chance of convincing residents of a hydrocarbon-centric economy that it is possible to consider a switch to a more ecologically-sound alternative.”
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all of Qatar has signed up for XtremeLand, the latest entertainment scheme from Al-Othaim Leisure and Tourism. The project will occupy 4,459m2 featuring major popular attractions and rides for families. Rony Mourani, general manager, Mall of Qatar, commented that the three-storey soft play area will host more than 100 fun activities for children to develop their cognitive, social and physical skills. “XtremeLand will be unlike anything else in the local market,” he boasted.
5 DECEMBER 2015
WEEKLY NEWS HOTEL XX PERFORMANCE Beirut and Cairo Return
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otel profits in Beirut grew 25.5 percent in September with GOPPAR rising to USD26.44 driven by a 16.7 percent ARR growth to USD156.19. The increase in rates offset softer demand as occupancy levels fell 6.6 percentage points to 56.3 percent, RevPAR, however, rose 4.6 percent to USD87.97, leading to a 13.5 percent surge in total RevPAR to USD160.05. Strengthening corporate activity in Cairo sustained the ongoing improvement in hotel performance with occupancy levels increasing 5.5 percentage points to 58.6 percent, allowing hoteliers to yield a 15.8 percent growth in ARR and a 27.9 percent rise in RevPAR to USD121.76 and USD71.32 respectively, translating into a GOPPAR of USD61.68, up 21.3 percent.
Manama Benefits from Holidays
While hoteliers in Beirut, Cairo and Manama experienced strong demand during September, results from Dubai and Kuwait showed a slight setback, as HotStats latest report revealed.
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he Eid Al Adha holiday boosted occupancy by 4.3 percentage points to 60.7 percent in Manama. The influx of regional visitors, particularly from Saudi Arabia, allowed hoteliers to generate a 7.3 percent growth in ARR to USD202.26, driving total RevPAR up by 10.1 percent to USD185.31 and GOPPAR by 18.1 percent to USD67.90.
Dubai and Kuwait Hotels Challenged
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verage room rates (ARR) at five- and four-star accommodation establishments in Dubai fell 2.3 percent to USD207.55; occupancy, however, remained stable at 76.6 percent. The reduction in RevPAR was compounded by significantly lower food and beverage revenues which fell 19 percent, driving total RevPAR 8.1 percent lower to USD282.55, while gross operating profit per available room (GOPPAR) dropped 8.7 percent to USD84.66. Although Kuwait generally benefits from increased demand during Eid Al Adha due to its proximity to Saudi Arabia, the market saw occupancy plummeting 8.5 percentage points to 42.6 percent in September. The lower demand is more heavily linked to softer activity from the government and corporate markets which led to ARR and RevPAR declining 0.7 percent and 17.2 percent, respectively, resulting in a GOPPAR fall of 14.6 percent to USD100.02.
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Manama
5 DECEMBER 2015
WEEKLY NEWS ACCOMMODATION
MARRIOTT TO ACQUIRE STARWOOD Marriott International has revealed its intention to purchase Starwood Hotels & Resorts Worldwide for USD12.2 billion, creating the world’s largest hotel chain.
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ombined, the companies operate or franchise more than 5,500 properties with 1.1 million rooms globally. The entity’s pro forma fee revenue for the 12 months ended September 30 totals over USD2.7 billion. Arne Sorenson will retain his position as president and CEO of Marriott International following the merger and the company’s headquarters will remain in Bethesda, US. Assuming receipt of the necessary approvals, the parties expect the transaction to close in mid-2016.
Sheraton Sharjah Beach Resort & Spa Open for Business
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Four Seasons Hotel Casablanca
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tarwood Hotels & Resorts Worldwide has unveiled Sheraton Sharjah Beach Resort & Spa, marking the company’s debut in the destination. The 349-room property brings the hotelier’s portfolio in the UAE to 25 hotels across five emirates. “Our aim is to redefine the guest experience in Sharjah and offer guests a level of service that is warm and efficient,” commented Edwin Wijkhuijs, complex general manager, Sheraton Sharjah Beach Resort & Spa. As Guido de Wilde, regional director, Middle East, Starwood Hotels & Resorts Worldwide, noted, the launch brings the company closer to its goal to open 150 new properties by 2020.
Marriott Executive Apartments Dubai Creek
Four Seasons Casablanca Officially Launched
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orocco’s newest Oceanside urban oasis, Four Seasons Hotel Casablanca has celebrated its grand opening. Located 10 minutes from the city centre and financial district, the 186-room hotel comprises 1,150m2 of flexible event space, including a 580m2 ballroom, a bouquet of food and beverage outlets, a spa boasting Moroccan influences, a gym and a resort-style pool. As Olivier Thomas, general manager, Four Seasons Hotel Casablanca, put it, the property satisfies diverse needs. “For business travellers, it is the perfect home base in the city, and for those on holiday, it is truly the best of both worlds,” said Thomas.
5 DECEMBER 2015
ACCOMMODATION WEEKLY NEWS
St. Regis Opens in Al Habtoor City
Jumeirah Creekside Reintroduces The Gardens
The St. Regis Dubai
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tarwood Hotels & Resorts Worldwide unveiled its first property within Al Habtoor City, marking the St. Regis brand’s debut in Dubai. Featuring 234 units, including 52 suites, The St. Regis Dubai offers eight culinary venues, the first Iridium Spa in the emirate, a fleet of Bentleys and the first Bentley suite in the Middle East which will be launched in early 2016. Hailed as Dubai’s first fully-integrated urban resort, the megaproject will also feature two other hotels under the W Hotels and Westin brands, as well as three residential towers and a water-themed show.
umeirah Creekside Hotel, Dubai opened its newly refurbished outdoor event space, The Gardens. The extensive new space offers an intimate and flexible venue that can accommodate up to 650 guests for seated events or 1,000 for cocktail receptions, and is suitable for parties, dinners, team-building events and wedding celebrations. Charles Clark, general manager, Jumeirah Creekside Hotel, said, “This outdoor venue is a great addition to the 24 existing meeting rooms which offer accommodation for events and celebrations of all sizes. From the dazzling ballroom to interactive meeting rooms, all the spaces facilitate productive, successful and memorable events and are supported by a team of professionals who will help to plan an event to remember.”
Cristal Abu Dhabi Adds New Restaurant
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Cristal Hotel Abu Dhabi
ristal VIEWZ Bar & Grill is Abu Dhabi’s latest dining and entertainment venue, offering contemporary international cuisine, live cooking, music and more. Located on the 17th floor of Cristal Hotel Abu Dhabi, the restaurant boasts 360-degree views of the UAE capital and is open for breakfast, lunch and dinner, while the lounge and grill also welcome guests late night for snacks. As Kamal Fakhoury, chief operating officer, Cristal Group, explained, the objective is to offer the highest quality at the market’s most competitive rates. “It is a place to enjoy casual dining anytime of the day with warm, efficient and friendly service,” added Fakhoury.
5 DECEMBER 2015
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WEEKLY NEWS ACCOMMODATION ACCOMMODATION
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ilton Worldwide has opened the 181-key Hilton Garden Inn Dubai Al Mina, the second of three midscale properties to arrive in Dubai. The launch follows the brand’s recent debut in the country with Hilton Garden Inn Dubai Al Muraqabat and comes ahead of the impending introduction of Hilton Garden Inn Dubai Mall of the Emirates. Rudi Jagersbacher, president, Middle East and Africa, Hilton Worldwide, commented, “The UAE presents an unrivalled opportunity to develop Hilton Garden Inn, as demand for midmarket options continues to rise within a world-leading hospitality sector that is firmly upholding the emirate’s position as a highly desirable destination for travellers.”
Salalah Rotana Teams Up with Slovakian Partner
Salalah Rotana Resort representatives with the new business partner
Hilton Garden Inn Dubai Al Mina
Hilton Garden Inn Unveils Second UAE Hotel
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alalah Rotana Resort is set to welcome thousands of European tourists after signing an agreement with Slovakian tour operator, Hydrotour. The partnership is expected to generate over 6,500 room nights and will see over 2,000 guests arriving each week via charter flights from Bratislava to Salalah starting March 2016, raising the expected number of tourists to over 30,000 annually from major European markets, including Germany and Italy. The deal comes in line with the Dhofar governorate’s efforts to introduce Oman to Eastern Europe, where, as Hossam Kamal, general manager, Salalah Rotana Resort, pinpointed, the endeavour is set to create significant awareness of the destination.
LUX to Enter the UAE
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UX* Resorts & Hotels aims to boast beachside opulence with LUX* Al Zorah opening in Ajman in summer 2016, which marks the Asian company’s debut in the region. The 191-unit destination resort is a 30-minute drive from Dubai International and features rooms, suites and private villas, designed with a blend of modern Arabian grandeur and signature LUX* simplicity. The new venture is one of four announced by the hotelier to come online by 2017 in the Middle East, Indian Ocean and China. These include LUX* Tea Horse Road, Yunnan launching this December, LUX* North Malé Atoll in the Maldives and LUX* Sud Sauvage in Reunion Island.
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5 DECEMBER 2015
ACCOMMODATION WEEKLY NEWS Armed Forces Officers Club Eyes Europe
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he much anticipated Palazzo Versace Dubai, developed in joint venture with Enshaa Group, opened its doors. With 215 rooms and a 1,000m2 marble mosaic floor at the grand lobby, the property is the second of the brand after Palazzo Versace Gold Coast, Australia and will also be home to 169 residences ranging from one to six bedrooms. Gian Giacomo Ferraris, CEO, Gianni Versace, commented, “In 2000, we have pioneered the luxury fashion branded hotels […] and today we are proud to bring the ultimate Versace lifestyle in Dubai with the new hotel. The fine and luxurious designs by Versace will be present in every detail of the living environment, and luxury will become a lifestyle.” Abra Water Hopping Service
Palazzo Versace Dubai
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rmed Forces Officers Club & Hotel, Abu Dhabi declared a positive participation in the World Travel Market, as it signed a key agreement with 1001 Events between other main tour operators and destination management companies. The deal aims to attract more elite tourists and corporate business to the hotel and the emirate. Dulce Ortega, business development manager, Armed Forces Officers Club & Hotel, commented, “This optimal cooperation will contribute to the promotion of the hotel across many main European cities and world markets.”
Marriott Executive Apartments Dubai Creek
Palazzo Versace Dubai Launched
The Ajman Palace Showcased in China
5 DECEMBER 2015
The Ajman Palace Hotel
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n a bid to increase its share of the Chinese market, The Ajman Palace Hotel participated in a road show in the Asian country. Representing the property, Aftab Mukadam, director of sales and marketing, The Ajman Palace Hotel, visited Guangzhou, Shenzhen, Shanghai, Beijing and Chengdu to meet tourism bodies as well as leading tour operators, destination management companies and other trade professionals. Ferghal Purcell, general manager, The Ajman Palace Hotel, described China as a growing market that holds strong potential. As he further explained, the management is keen on attracting visitors for the Chinese New Year that will be celebrated in February 2016.
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WEEKLY NEWS AIR ACCOMMODATION
Airport Budgets to Hit USD8.7 Billion The rate of investment in information technology at airports around the world is rising, with the latest figures from SITA estimating it will touch USD8.7 billion this year and airport chief information officers predicting even higher budgets for 2016.
now. . t k u o y Did rcen 0 pe e
,8 us 018 will By 2 irpor ts provide of a ons to er vices s beac finding nt to ce r s y e a w 4 p ification 7 d t o an n ? s ide ger prov passen to
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he annual Airport IT Trends Survey presented feedback from more than 223 hubs and illustrated that a priority is to improve the customer experience as rising numbers put greater pressure on capacity and infrastructure. “With 81 percent of airports investing in beacons and other sensors over the next three years, passengers can expect a more predictable journey through the airport as new features, such as wait times and walk times to the gate, become commonplace,” commented Matthys Serfontein, vice president, airport solutions, SITA.
Etihad Airways to Fly to Rabat
Oman Air Strengthens Indian Presence
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tihad Airways is poised to increase its presence in Morocco with the launch of a new twiceweekly service between Abu Dhabi and Rabat. Starting January 15, 2016, the only air link between the UAE and the Moroccan capital city will be operated on Wednesdays and Fridays onboard an Airbus A340-500 aircraft in a three-class configuration. Commenting on the carrier’s second route to the country after Casablanca, James Hogan, president, Etihad Airways, said, “We remain committed to building sustainable ties in the North African region and deepening the strong relationship between Morocco and the UAE.”
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man Air is to boost frequencies on four of its key routes to India, adding an extra 5,131 seats to its offering. Travellers will be able to fly seven days a week between Muscat and Goa, while the daily services between the Omani capital and Bangalore, Kochi and Trivandrum will increase to double-daily. In addition, to Lucknow and Jaipur, 11 and 10 weekly flights will be available, respectively. With the launch of the new frequencies, Oman Air will operate a total of 126 services between the Middle Eastern country and Indian destinations. “Since we first launched flights to India in the 1990s, demand for seats onboard Oman Air’s outstanding aircraft has been consistently high,” commented Paul Gregorowitsch, CEO, Oman Air.
5 DECEMBER 2015
AIR WEEKLY NEWS RJ Adds Ankara to Network
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Ankara
ffective from December 8, Royal Jordanian Airlines (RJ) will start a new direct regular service between Amman and Ankara with three weekly flights. The carrier will operate to the Turkish capital on Tuesdays, Thursdays and Sundays, bringing the number of itineraries between the countries up to 17 per week, depending on seasonal needs. Suleiman Obeidat, president, RJ, explained that the new route is bound to cater to the demand of business traffic and will also serve Hajj and Umrah pilgrimage travellers. Obeidat further highlighted Ankara’s significant geographical location as a regional centre for trade and commerce.
SAUDIA Receives Two New A319s
Etihad to Fly Thrice Daily to Jeddah
Jeddah
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nder an aircraft, crew, maintenance and insurance agreement, Saudi Arabia Airlines (SAUDIA) received two Airbus A319s from Czech Airlines. The move will support the Arab carrier’s operations and provide additional capacity on its domestic network to meet the increasing demand of the segment that totals nearly 70 percent of SAUDIA’s overall business. The Middle Eastern airline carried more than 15 million guests onboard 120,000 scheduled flights operated domestically in 2014.
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tihad Airways is increasing capacity between the UAE and Saudi Arabia with the addition of a third daily frequency on the Abu Dhabi – Jeddah route, hailed as one of the carrier’s most popular regional services. Effective from December 10, the airline will operate an Airbus A320 aircraft on the additional flight with a total of 136 seats, while on the other two daily frequencies, the airline will still deploy a two-class Boeing 777-300ER. Etihad Airways currently operates nine daily flights across the Kingdom to destinations such as Dammam, Riyadh, Jeddah and Medina.
5 DECEMBER 2015
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WEEKLY NEWS AIR Austrian Touches Down in Marrakech
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ustrian Airlines has commenced services to Marrakech onboard an Airbus A319 aircraft. The route will be operated every Saturday until the end of the winter season on April 2, 2016, offering travellers yet another alternative to escape the cold European weather and explore the North African holiday hotspot. Other new sunny long-haul options offered by the Austrian carrier include Mauritius and Colombo, and vacationers can also opt for Fuerteventura, Gran Canaria, Lanzarote, Tenerife, Hurghada, Madeira and Antalya.
Kuwait Airways Adds New Indian Destinations
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The launching ceremony
tihad Airways is expanding its reach in Saudi Arabia through a new service between Riyadh and Abu Dhabi. Operated by its codeshare partner flynas five times a week, the route, which is to launch on December 16, will be served by a two-class Airbus A320 aircraft offering 1,640 seats per week. Kevin Knight, chief strategy and planning officer, Etihad Airways, said, “Riyadh is an important strategic destination for us due to the established cultural and commercial ties between the UAE and Saudi Arabia.” In addition, Bander Al Mohanna, CEO, NAS Holding, expressed his anticipation that the mix of people travelling on the route will include pilgrims as well as business commuters and leisure seekers.
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e is th ore the l a g Ban ital of of cap ate n st ka? a i d In ata Karn
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Etihad Welcomes flynas’ Riyadh – Abu Dhabi Service
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uwait Airways launched new flights to Bangalore and Ahmedabad, bringing its network to 41 destinations. Operating three times a week, the new services will run throughout the year and as Abdullah Al-Sharhan, CEO, Kuwait Airways, commented, this is due to high demand for the two Indian locations.
Riyadh
5 DECEMBER 2015
WEEKLY NEWS INTERNATIONAL
Sun Aqua Vilu Reef
Sun Aqua Vilu Reef Becomes a Reality
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un Siyam Resorts’ Sun Aqua brand has launched its second property, Sun Aqua Vilu Reef, a refurbished resort on the bitesized gem of Meedhuffushi Island in the heart of the South Nilandhe Atoll, Maldives. Originally opened in 1998, the establishment was relaunched in an official ceremony, followed by a beachside feast engulfed with dancing and live music throughout the evening. The resort, which promotes relaxing experiences led by simple luxuries, sensational food and warm, dedicated service, is the newest addition to the group’s portfolio following Sun Aqua Pasikudah which opened earlier this year in Sri Lanka. The property underwent a complete revival creating five different categories of rooms, including 15 new Sun Aqua pool villas, a full
holistic spa offering six treatment pavilions each with open-air flower baths, showers, a hydrotherapy area and double treatment beds. A further development on the island is the addition of the resort’s first kids’ club, with a private swimming pool, games room and an array of entertainment. Additionally, the resort offers plenty of leisure activities such as diving, snorkelling, and various water sports, from windsurfing to canoeing, sailing and jet skiing. Guests looking for more stimulation can enjoy a wide variety of live music evenings, DJ and karaoke nights, cultural shows and movie evenings on the beach, suitable for all ages. Besides all the excitement and luxury available on site, the hotel also offers excursions to local inhabited islands.
Radisson Blu Hotel, Nairobi Upper Hill
Kenya Welcomes Radisson Blu Hotel
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he Rezidor Hotel Group continued its expansion in Africa with the launch of its latest Radisson Blu property in Nairobi. The 271-room Radisson Blu Hotel, Nairobi Upper Hill boasts a spacious 590m2 ballroom for galas and special occasions, 12 meeting rooms served by event planners as well as a number of dining concepts allowing guests to experience the tastes and traditions of the country. “The hotel is a modern salute to Radisson Blu’s design heritage and innovative spirit, and Kenya’s vibrant culture. Our global travellers can continue to expect the very best of Radisson Blu stylish, sophisticated and iconic experience in Kenya’s capital city,” commented Marc Descrozaille, area vice president, sub-Saharan Africa, The Rezidor Hotel Group. 5 DECEMBER 2015
RENDEZVOUS TRAVEL TRADE WEEKLY: How does the airline’s business and expansion strategy differ from those of other Middle Eastern low-cost carriers (LCCs) as well as legacy airlines? YAZEED AL RASHEED: This May, flynas posted its first quarterly profit after eight years of working very hard to streamline our operations with a clear focus on who we want to cater to, what services we aim to provide, and what we want to achieve. The main pillars of the company’s business that support the success of the airline are initiatives that are primarily focussed on further building efficiency, choice and customer loyalty. At flynas we are in a unique position as we are a key player operating in a market which we believe is still largely untapped and offers plenty of opportunities to grow. The fact that we call Saudi Arabia our home market is our biggest differentiator from other regional airlines, as the Kingdom is the largest market both in terms of population and growth opportunities. Our biggest potential lies in serving guests wanting to travel within the Kingdom and to neighbouring countries.
Q & A with
Yazeed Al Rasheed DIRECTOR OF MARKETING AND COMMUNICATIONS, NAS HOLDING
“
OPPORTUNITIES IN THE KINGDOM’S AVIATION SECTOR STILL REMAIN UNTAPPED
in this vital industry will help propel the economy forward, creating new businesses, jobs, and opportunities.
TRAVEL TRADE WEEKLY: How has the new identity, launched in 2013, helped better define the airline’s core values and support its long-term goals? YAZEED AL RASHEED: The rebrand of flynas has been primarily aimed at reaching out to a whole new generation of travellers. The passenger profile today is younger, more mobile and more connected than ever before and our service offering had to evolve in line with this reality. The rebrand was aimed at answering these evolving needs as well as changing the perception of the brand from a local carrier to a key regional player offering a superior level of service. This was achieved through the brand’s visual transformation with a fresh new logo and aircraft livery, but more importantly in the change in attitude towards customer service from passengers to guests with many service extensions such as the launch of the business class offering, and more recently the flynas mobile app and nasmiles, the airline’s loyalty programme. […] TRAVEL TRADE WEEKLY: What needs to be done by civil aviation authorities in order to support the growth of regional LCCs? 5 DECEMBER 2015
YAZEED AL RASHEED: We believe these are very promising times for LCCs especially in a market such as Saudi Arabia where the General Authority for Civil Aviation announced an ambitious project aimed at liberalisation and privatisation of the aviation industry. This project and others like this are important as they ensure that the aviation industry flourishes and thrives while at the same time creating healthy competition. We believe that opportunities in the Kingdom’s aviation sector still remain untapped and further investment
TRAVEL TRADE WEEKLY: What are the main challenges faced by LCCs in the region?
FLYNAS PRIDES ITSELF ON BEING THE PIONEER LOW-COST PLUS CARRIER IN THE REGION AND ACCORDING TO YAZEED AL RASHEED, DIRECTOR OF MARKETING AND COMMUNICATIONS, NAS HOLDING, THESE ARE VERY PROMISING TIMES FOR SUCH CONCEPTS.
YAZEED AL RASHEED: LCCs tend to focus on underserved destinations and destinations that see high volumes but with a preference for lower fares. LCCs often face issues pertaining to protectionist policies relating to state-owned carriers and landing rights issues which can serve as barriers to entry in some of these destinations. Unlike many other geographical regions such as Europe, North America and Asia where large cities often have secondary airports, the lack of secondary or smaller airports across the Middle East has also proved to be an issue in certain countries as LCCs are forced to operate out of the same airports as major carriers. In the Middle East, the big regional carriers also have a very dense regional route network which means that on short flights, guests often have access to full service carriers which some sectors, such as business travellers, tend to prefer and this is why the introduction of a business class offering was key for flynas to be able to compete favourably.
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WHO'S MOVED
KARIM NAHAS
KHALID BEL JAFLAH
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Nahas has successfully managed Rose Rayhaan by Rotana
Yeliz Hisman has been welcomed by Rixos Hotels as the new regional director of sales and marketing. Hisman will be in charge of sales and business development across the company’s three main continents. Her responsibilities include identifying market trends, determining system improvements and implementing necessary changes. She will spearhead new initiatives, looking to increase profitability and achieve a better positioning for the company. Having started her career at Çırağan Palace Kempinski Istanbul 15 years ago, Hisman later worked at Kempinski Hotel Mall of the Emirates in Dubai before moving to Bahrain to Kempinski Grand & Ixir Hotel. Most recently, she served at Kempinski Hotel & Residences Palm Jumeirah in Dubai.
Khalid Bel Jaflah has been appointed divisional vice president of commercial operations for the UAE and Oman at Emirates, further strengthening the airline’s management team. Bel Jaflah began his commercial career with Emirates’ management trainee programme in 2001. Since then, he has held various managerial roles in Syria, Morocco, Senegal, India, East Africa and the UAE before becoming vice president of commercial operations in Saudi Arabia, Bahrain and Yemen in 2013. In his capacity, he will be in charge of Emirates’ single largest market in terms of passenger revenue and will be tasked with seeking out new commercial opportunities and driving growth in one of the carrier’s most critical regions.
Bhavna Bhatia has been named director of executive search in the Middle East by hospitality consulting and services organisation, HVS. Having been with HVS Executive Search in New Delhi for eight years, Bhatia brings an in-depth knowledge of consulting and a strong pre-existing international and regional network of contacts in hospitality and allied sectors. Prior to joining the company, she spent nine years in the hotel industry, working with Hyatt and The Park Group in India. This combination of hotel operations knowledge coupled with her experience at HVS Executive Search, has provided Bhatia with the requisite insights to understand the challenges and nuances of talent acquisition in the industry.
Karim Nahas continues as Towers Rotana Dubai’s general manager. A seasoned hotelier, Nahas joined Rotana in 2009 from Hilton Worldwide. Since then, he has successfully managed Grand Rotana Hotel & Resort, Sharm El Sheikh and later Rose Rayhaan by Rotana in Dubai for three years, where he maintained high guest satisfaction and the brand’s core values. Nahas is now looking forward to working with his new team as the property gears up to launch the final phase of the refurbished apartments with a new pool lounge and more.
YELIZ HISMAN
BHAVNA BHATIA
5 DECEMBER 2015
WHO'S MOVED
MICHAEL NUGENT
TONY COVENEY
5 DECEMBER 2015
Michael Nugent has taken up the role of regional director at Mövenpick Hotels & Resorts. In his new post, the former general manager of Mövenpick Ibn Battuta Gate Hotel Dubai is set to attract new markets for the company’s properties in Jordan. Nugent has more than 35 years of experience in the hospitality industry, having worked for 20 years in the region, both in the UAE and Saudi Arabia. He has been with Mövenpick for the past nine years, and has served as general manager of Mövenpick Hotel & Apartments Bur Dubai and Mövenpick Hotel Deira, where he led the pre-opening team. Nugent will focus on capitalising on Jordan’s international reputation as a medical tourism hub, attracting business to the group’s properties.
Tony Coveney has been appointed hotel manager at Four Seasons Hotel Riyadh at Kingdom Centre. After earning a hotel management degree in Ireland, Coveney began his career in food and beverage followed by a stint in marketing. In 2003, he joined Four Seasons Hotels and Resorts as sales manager in Dublin. Shortly thereafter, he became the pre-opening resort manager of a golf resort in Ireland but he soon returned to Four Seasons Hotels and Resorts in Dublin, to join the front desk management team and later serve as director of rooms. Coveney’s other stop before the Saudi capital was Sydney, where he served as director of rooms for the largest Four Seasons address with 531 rooms.
TIM SAVAGE
BADR ABBAS
Tim Savage will now serve as director of the organisational development for HVS Executive Search in Europe and the Middle East. An industry human resources specialist, Savage brings with him over three decades of experience. He specialises in providing advice on organisational structure, change management and employee engagement as well as bespoke coaching and development solutions to clients’ critical needs. Savage has delivered numerous strategic consulting mandates across a broad range of disciplines. His previous employers include Forte Group, Marriott International as well as Le Méridien Hotels & Resorts, both in the UK and internationally. His most recent appointment was as chief human resources officer for Jumeirah Group.
Badr Abbas has been named senior vice president of commercial operations in the Far East at Emirates. Beginning his career with Emirates as a management trainee in 2000, Abbas has grown his career with the company’s commercial team over the past 15 years. During his time with the airline, he has held various positions in Pakistan, Saudi Arabia, Tunisia and Cyprus, before becoming vice president of commercial operations in the UAE and Oman in 2012. Abbas’ new area of responsibility spans 11 countries from Indonesia to Japan.
Abbas has been with Emirates for 15 years
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TRAVEL TALK
We live in a tech-savvy digital world
LAURENT VOIVENEL CEO, Hospitality Management Holdings (HMH)
“Adoption of the latest technology has been a strategic imperative for us at HMH. It is not only about addressing the current needs of our guests but preparing ourselves for the future. We live in a tech-savvy digital world that demands efficiency and speed at every step be it the booking process or the actual stay at the hotel. Basic to any operation today is high-speed connectivity and digital engagement. Technology has placed everything on the palm with the world going mobile.”
We have seen a huge increase in aircraft movements
TALAR FAIQ Director general, Erbil International Airport
[This] is the start of an incredible journey
ARNE SORENSON CEO, Marriott International
“The driving force behind [the Marriott International and Starwood Hotels & Resorts Worldwide] transaction is growth. This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace. This greater scale should offer a wider choice of brands to consumers, improve economics to owners and franchisees, increase unit growth and enhance long-term value to shareholders. [This] is the start of an incredible journey for our two companies.”
“In 2013, some 97 percent of passengers took international flights; [this year], that has changed, and it is now 50 percent domestic and 50 percent international. Whilst the overall passenger numbers have remained similar, it is clear that the dramatic 30 percent plus year-on-year growth has slowed down. Having said that, we have seen a huge increase in aircraft movements. In early 2014, we had on average, 17 passenger flights per day, [this October], total daily passenger flights averaged at 28.”
A combination with Marriott provides the greatest long-term value
BRUCE DUNCAN Chairman, Starwood Hotels & Resorts Worldwide
“During our comprehensive review of strategic and financial alternatives, it was clear that our talented people, world-class brands, global leadership and spirit of innovation were much admired and key drivers of our value. Our board concluded that a combination with Marriott provides the greatest long-term value for our shareholders and the strongest and most certain path forward for our company. Starwood shareholders will benefit from ownership in one of the world’s most respected companies.”
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
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5 DECEMBER 2015
AGENT CORNER
Agent’s Insight
When and how did you get involved in the tourism industry? I enjoyed travelling since I can remember myself. However, I decided to proceed with obtaining a master of science in international events management in 2009. In 2013, together with my husband, we established Cubix Minds, a professional events and conference management company, which expanded to a travel agency earlier this year.
NAME:
Louiza Palloura
POSITION:
Managing director
COMPANY:
Cubix Minds Events
LOCATION:
Cyprus
WEBSITE:
www.cubix.com.cy
Travelport: Exceptional Q3 Growth
What are the most important attributes of a good travel agent/tour operator? To be highly responsive, to be an expert in your field and to offer personalised services, when required, are the three attributes ranking at the top levels of our list. What is the most frequently asked question that your company receives from customers? New customers usually need to be assured that everything will be perfectly organised, and that they will have our support throughout their experience, whether this is a travel or a conference to manage. Once they use our services, our personalised service is what brings them back. What are the must-visits and must-dos in Cyprus that no one should miss? Cyprus is a wonderful all-year-round destination that will satisfy almost any need and wish. Besides the well-known archaeological sites, including the Ancient Kourion Amphitheatre with its stunning views of the Mediterranean sea, and the spectacular Paphos Mosaics, I would definitely recommend cycling across the 13km of the Limassol beachfront, where you will sense the vibe of the city. Within a 30-minute drive head towards Troodos Mountains and hike one of the astonishing nature paths, where you can enjoy beautiful old bridges and spectacular sceneries, or follow one of the seven wine routes and get acquainted with the island’s enchanting and humble wineries. If you are a winter traveller, stay at one of the agrotourism guest houses at a picturesque village, and if it is still warm, head back to a summer beach resort and enjoy the beautiful sunset. Which destination is on your bucket list? There are too many of them, but the top three are definitely India, New Zealand and Brazil. 5 DECEMBER 2015
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ravelport released its financial results for the third quarter (Q3) of the year, indicating strong performance with adjusted income per share of USD0.25, up USD0.28 year-on-year. Net revenue also rose six percent to USD560 million, and RevPAR surged 11 percent to USD6.29. More specifically, double-digit growth was witnessed in Europe at 11 percent, in Asia Pacific at 14 percent and in Latin America and Canada combined at 21 percent. Over 100 airlines actively merchandised their product content on the travel technology provider’s platform, including branded fares and ancillaries. The company’s hospitality segment attachment increased 10 percent to 49 per 100 carrier tickets issued, and its online payment solution, eNett reported a revenue surge of 48 percent.
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TRAVEL CHANNELS
Tourism Industry 20 Percent Cleaner than in 2005 Many of the world’s biggest travel and tourism companies have improved their carbon efficiency by 20 percent in the last 10 years and are on course to cut CO2 emissions by 50 percent by 2035.
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his according to the Travel & Tourism 2015: Connecting Global Climate Action report published by the World Travel & Tourism Council (WTTC), which also outlines the five priority areas to support the overall target of halving emissions by 2035. These include integrating climate change and related issues into business strategies, supporting the global transition to a low carbon economy, strengthening local resilience, promoting the value of responsible travel and engaging across the value chain. David Scowsill, president, WTTC, commented that while the sector has grown, added more jobs and contributed billions of dollars to economies all over the world, there has been real commitment to sustainability from businesses.
Emirates to Forecast Demand
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mirates launched a data science lab as part of a five-year partnership with Oxford University. Employing a team of scientists, the OxfordEmirates Data Science Lab will examine new ways of forecasting demand and optimising seat inventory across the airline’s global network. In the longer term, the facility’s focus will be to redefine the customer experience through improved personalisation with individual customers. “The Oxford-Emirates Data Science Lab will provide us with a best-in-class dedicated team who can develop new business solutions using big data and real-time analytics, helping to the transform the group into a customer-centric, travel experience company,” commented Tim Clark, president, Emirates.
AccorHotels: Eco-initiative in the UAE
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n line with its goal of growing 100,000 trees in the UAE over the next decade, AccorHotels joined Dubai Municipality, Goumbook for the Give a Ghaf and SynergY, an environmental activist youth group, to plant 400 trees at Al Ghusais Landfill. Arnaud Herrmann, vice president, sustainable development, AccorHotels, commented that the overall initiative is unique as 1,900 of the company’s properties donate half of their laundry savings to finance reforestation projects in 24 countries. “Seeing the enthusiasm of these volunteers from AccorHotels and SynergY, we will no doubt be able to accomplish our sustainability goals,” confirmed Christophe Landais, chief operating officer, AccorHotels Middle East.
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5 DECEMBER 2015
PHOTO ALBUM
Take a Shot! Share with us the latest images of your activities and let your colleagues know what you have been up to. Send your photos to editorial@traveltradeweekly.travel Because a picture is worth a thousand words...
Australian actress Margot Robbie was at British Airways’ launch event to celebrate the new 787-9 Dreamliner route in Abu Dhabi
H.H. Sheikh Ahmed bin Saeed Al Maktoum, CEO, Emirates Airline and Group raised the UAE flag at Emirates Group on the national flag day
Team spirit at Jannah Eastern Mangroves Suites
5 DECEMBER 2015
Dusit Thani Dubai and Thai Airways together celebrated Thai festival, Loy Krathong
The Psychological Health Awareness Society in Egypt organised its monthly awareness conference at Semiramis InterContinental Cairo
Formula 1 star Felipe Massa visited Jumeirah at Etihad Towers
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WEEKLY NEWS & EVENTS NEWS XX Regional Buyers to Widen Business
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btm arabia 2016 is expecting to expand its MICE events for the Middle East as the rapid pace of change continues to impact the sector’s development. The enhancement is driven by renewed economic confidence and by regional buyers’ increasing demand for access to international suppliers to support growth of their outbound business. The exhibition’s 2016 installment will once again focus on maintaining the unique profile matching, to ensure quality of appointments.
CITE Attracts 30 Countries
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hengdu International Tourism Expo (CITE), which ran between December 3 – 5, hosted over 300 exhibitors from 30 countries, along with 4,000 trade professionals. The event featured stage performances and destination presentation sessions from over 10 exhibitors. These included a presentation on 2016 tourism in spring in Sichuan by the Sichuan Provincial Tourism Administration, as well as various promotional activities for trade and public visitors.
EVENTS ARAB AVIATION & MEDIA SUMMIT Manama, Bahrain December 07 – 08 www.aamsummit.com This year’s edition will focus on the status of Arab aviation and tourism under the current political and economic climate.
4TH GLOBAL SUMMIT ON CITY TOURISM Marrakech, Morocco December 14 – 15 www.unwto.org International experts in city tourism, representatives of local authorities, municipalities and international and regional associations will discuss challenges and create a platform for the exchange of ideas.
BAHRAIN INTERNATIONAL AIR SHOW Sakhir, Bahrain January 21 – 23, 2016 bahraininternationalairshow.com A focussed global aviation event providing its elite list of aerospace business participants with an opportunity for highlevel networking in exclusive surroundings.
3RD ANNUAL AFRICA HOTEL EXPANSION SUMMIT Lagos, Nigeria January 28 – 29, 2016 africa.hotelandresortsummit.com For the third consecutive year, Noppen is organising the Africa Hotel Expansion Summit, bringing together hotel chains, developers and architects with hospitality institutions.
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5 DECEMBER 2015
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