LCC battle starts
Mark Bode (TTG)
Thailand’s One-Two-Go Airlines has decided to take the fight to AirAsia
by seeking out new routes that will place it in direct competition with
its low-cost rival - including a push into the Malaysia-based carrier’s
own backyard.
One-Two-Go’s move to launch its first overseas services, which will
include Bangkok-Macau and Bangkok- Kuala Lumpur, is part of an
accelerated expansion strategy that also encompasses sister carrier,
Orient Thai Airlines.
The no-frills carrier is upset over what it considers the preferential
treatment AirAsia - which has a 49 per cent stake in Thai AirAsia - has
received from Thai authorities.
The stage has now been set for a tussle between One-Two-Go and AirAsia,
with the Thai carrier - emboldened by its ability to survive in the face
of stiff competition - confident it is now ready to compete with
South-east Asia’s largest low-cost carrier in overseas markets.
One-Two-Go is due to start daily Bangkok-Macau flights next month and a
daily Bangkok-Kuala Lumpur service in September, followed by a daily
Bangkok-Phnom Penh service in October.
The airline is also eyeing a Phuket-Kuala Lumpur service in the near
future, as well as flights to Siem Reap, Singapore, Bali and Bangladesh.
In keeping with its expansion plans, One-Two-Go has increased its fleet
of McDonnell Douglas MD-80 jets to eight and has signed a deal to
acquire 14 MD-80 jets from Japan Airlines, which will bring its total
fleet size to 22 by next year.
Orient Thai, a conventional airline with a low-cost pricing policy, is
due to launch daily Bangkok-Guangzhou and Bangkok-Chengdu flights in
August and September respectively. The Bangkok-Guangzhou service is
being resumed after it was suspended some years back.
The carrier also plans to introduce a thrice-weekly Bangkok-Kathmandu
service next month.
Bangkok airport ‘losing out’
Higher fees and the uncertainly over the expansion of Suvarnabhumi Airport are
deterring international airlines from adding flights into Thailand.
They are instead shifting new capacity into China, India and Vietnam.
Board of Airline Representatives (BAR) president, Brian Sinclair-Thompson, said
none of the BAR member airlines are preparing for substantial capacity increases
to and from Thailand in the near future.
He said the 35 per cent higher landing fees that Airports of Thailand imposed in
the last 20 months, coupled with many fees imposed on every airline passenger
for using facilities such as the check-in, airport lounges, etc, were reasons
preventing air capacity growth for Thailand.
On the other hand, any airline considering introducing new flights to Kuala
Lumpur, for example, were being offered an incentive of up to five years, he
added.
Another reason for airlines shifting their capacity increases to China, India
and Vietnam was the congestion at Suvarnabhumi Airport. Mr. Sinclair-Thompson
said airlines desperately needed an expanded airport, including a mid-term
terminal and a third runway, and to boost capacity up to 60 million passengers
per year from 45 million now.
He cited the example of Swiss Air, in his capacity as its general manager in
Thailand, which had scrapped plans to increase the Bangkok-Zurich service to 10
or 12 times per week, from six weekly flights now. “Instead, we are planning to
introduce new flights to New Delhi and Shanghai,” he said. (TTG)
Ray of hope for suffering Chiang Mai
Sirima Eamtako (TTG)
Beleaguered Chiang Mai hoteliers, facing a 10-year low, are encouraged by Thai
tourism minister Dr. Suvit Yodmani’s promise to speed up building Chiang Mai
Convention Center to help make the city a year-round leisure and MICE (meetings,
incentives, conventions and exhibitions) destination.
At a meeting with the tourism public and private sectors in Chiang Mai last
week, Dr Yodmani said he would push for the centre to be approved by the Cabinet
by the end of this year and for completion within two years.
Shangri-La Hotel Chiang Mai general manager, Philip Dailey, said: “Following the
opening of the convention centre - expected by the end of 2009 - the average
length of stay will likely be extended to five days, from around two to three
days now. Supply and demand will then kick in and help drive higher average room
rates for Chiang Mai hotels.”
Holiday Inn Chiang Mai general manager, Alan Watts, said his hotel and
Shangri-La, the only two properties with function rooms totalling almost
6,000sqm, would actively start marketing Chiang Mai as a MICE destination.
Dailey said: “With our international marketing activities, if (the MICE
planners) do not choose Chiang Mai next year, they might do so in 2009.
“From 2010 onwards, I believe Chiang Mai’s potential as a MICE destination can
be fully realised.”
Dr Yodmani also plans to relaunch the Royal Flora Ratchaphruek site early next
month as a botanical garden. He has agreed to introduce two annual festivals
next year, a Walking Street Festival in May and an International Food Festival
in September.
The Chedi Chiang Mai general manager, Eleanor Hardy, indicated all this would
help increase arrivals. “We are moving in the right direction to promote
awareness of Chiang Mai as more than just a gateway to the north of Thailand,”
she said.
The floral expo drew 2.6 million local and international tourists between
November 1, 2006 and January 31, 2007, but the city experienced a sharp drop
immediately in February.
Chiang Mai Tourism Business Association president, Songvit Ittipattanakul, said
May was the worst month with the number of tourists falling 30 to 40 per cent to
a 10-year low.
Thai Hotels Association Northern Upper Chapter president and The Empress Hotel
Chiang Mai general manager, Kanog Suvannavisutr, said his hotel enjoyed good
bookings from medium-size local and international MICE groups, which prompted
the owner to invest 350 million baht (US$11 million) on a purpose-built
convention centre.
Scheduled to open in February 2008, the three-storey Empress Convention Center
will have two ballrooms for 1,200 people and five breakout rooms. Already, it
has bookings from five groups of up to 300 delegates each.
IFA Hotels & Resorts announces
opening of first YOTEL
Raimon Land partner opens revolutionary new hotel concept at London’s Gatwick Airport
IFA Hotels & Resorts (IFA HR) recently announced the opening of the first
YOTEL in the UK, the revolutionary new hotel concept that is redefining the
global hotel industry and making travel more enjoyable.
The
new YOTEL, which opened recently at Gatwick Airport, offers a revolutionary
new hotel facility for travelers.
It is the first hotel to be located inside a UK airport terminal and also
the first of many YOTELs the IFA HR plans to open around the globe.
The Gatwick Airport YOTEL is located in the South Terminal and provides
transiting passengers or those with early check-ins a private place to
relax. Available from just 4 hours or overnight from GBP 25 (1,620 baht
approx.), YOTEL is destined to become essential to all frequent long-haul
travelers.
Talal Jassim Al-Bahar, Chairman and Managing Director of IFA HR stated:
“We’re very excited about the opening of the first YOTEL. YOTEL is different
from other investments we have in the hotel sector and we truly believe it
represents the future.”
Globally, several international locations have already been identified as
ideal for YOTEL including Dubai, the Netherlands, Singapore, Germany, New
York, Russia, India, South Africa and more.
In Thailand recently, Al-Bahar also added that the Kingdom represented a
prime opportunity for the YOTEL concept.
“With one of the most modern airports in Asia and with solid growth in its
tourism sector, Thailand offers a lot of potential for this ground-breaking
concept. The expertise of out partner Raimon Land in identifying prime
locations for successful developments would be a great asset as well”, added
Mr. Al-Bahar.
About YOTEL
The YOTEL concept was originally developed by YO! founder Simon
Woodroffe, whose idea was to create cabins that provide a flexible and
convenient first class hotel experience at an affordable price.
The features within the cabins includes clothes storage, pull down working
desk, Wifi access, bathroom with luxury fittings, flat screen TV system with
60 channels, 80 radio channels plus a jukebox with over 5,000 music tracks
and a headphone jack and snacks, club meals and refreshments ordered from
the TV system and delivered to your cabin.
In addition, the larger Premium cabins include a double bed that deploys to
a couch by the touch of a button and an input for your own MP3/ iPod player
to play your own music through the TV speakers.
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