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Wednesday, October 27, 2010

Near 100% Rise in Passenger Self-Service Check-In at Johannesburg

The SITA/Air Transport World Passenger Self- Service survey of the world?s leading airports reveals an almost 100% rise in self-service check-in among travellers passing through OR Tambo Airport, Johannesburg. A 75% growth in demand for off-airport bag drop-off was also recorded.

The survey shows that self-service check-in grew to 17% of survey respondents in Johannesburg compared to 9% in 2009. While this usage rate lags behind the global rate of 67% there is significant willingness to use kiosk check-in (71%), web check-in (54%), and mobile check-in (54%).

Across all airports surveyed, almost half of the respondents who checked in at a desk rather than through self-service did so because of the need to check-in a bag. Overall, the survey found that 75% of respondents would be interested in off-airport bag drop-off. While only 34% of the total surveyed would pay for such a service, 67% of those passing through Johannesburg would be willing to do so. The survey sample in Johannesburg included 54% business travellers.

The 5th annual SITA/Air Transport World Passenger Self-Service Survey is an in-depth look at the attitudes and habits of a representative sample of the 287.6 million passengers who use seven leading international airports. Along with OR Tambo Airport, it includes Beijing International Airport; Hartsfield-Jackson, Atlanta; Frankfurt; Mumbai International; Moscow Domodedovo; and Sao Paulo Guarulhos, Brazil.

The popularity of online booking continues to grow at Johannesburg. Almost 70% of interviewed passengers book their flights online when they can, and on the day of travel over 40% of passengers at OR Tambo had used this facility. Passengers are also willing to use more self-service, for example, interest in using automatic boarding gates has increased significantly from 45% last year to 61% in this year?s survey.

Rob Watkins, SITA Regional Vice President for Africa, said, ?SITA is pleased to see that self-service check-in at Johannesburg has almost doubled in the last year as there was heavy investment in SITA check-in technology across South African airports in advance of this year?s very successful World Cup tournament. South African travellers are tech savvy and we expect there will be increasingly rapid uptake of self-service technology as there is a great awareness of the benefits.?

The survey data is extracted from interviews with 2,490 passengers travelling on 106 airlines, conducted at the departure gates earlier this year. Main nationalities interviewed were American, 17%; Indian, 12%; Chinese, 12%; Brazilian, 11%; German, 8%; South African, 8%; UK, 1%; others, 23%.

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Travelport Promotes Niklas Andr�en

Travelport has promoted Niklas Andr?en to the role of Group Vice President, Hospitality and Partner Marketing.

With global responsibility for Travelport?s hotel distribution and advertising businesses, Andr?en will lead a team charged with working closely with suppliers and customers to deliver industry leading hospitality content and advertising solutions.

The investment in this team forms part of an ongoing strategy to heighten Travelport?s focus on the growing hospitality sector and to work even more closely with key stakeholders to ensure that hotel content is distributed as widely as possible to travel retailers across the globe.

Andr?en, who was previously Managing Director for Travelport?s Eastern Europe and Nordics region, will assume the global role with immediate effect and report directly into Chief Commercial Officer, Kurt Ekert.

Andr?en joined Travelport in 2003, bringing with him a wealth of travel industry and management consultancy experience including a strong track record in innovation and growth. Most recently, he formulated and led Travelport?s expansion plans in Russia and Eastern Europe where the company has lately been enjoying a string of successes including a ground-breaking new partnership with Russia?s largest domestic GDS, Sirena Travel.

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Travelport Restructures its Commercial Organisation

Travelport is restructuring its Airline IT Solutions (AITS) and realigning the operating structure of its Commercial GDS function. Travelport?s Commercial teams in both its GDS and AITS divisions will be integrated under Kurt Ekert, Chief Commercial Officer.

AITS provides hosting and/or IT software services to leading global airlines such as Delta, United Airlines, Emirates and Air New Zealand, as well as to other providers of airline IT such as TravelSky of China and SITA, and was previously led by Sue Powers. Powers has decided to retire, having spent over 30 years working in the industry for a number of organisations including United Airlines, Covia (Apollo), Worldspan and Travelport.

Former Hewlett Packard executive, Derek Sharp, will lead Travelport?s AITS commercial team in the new structure. Sharp recently joined the company from HP where he held a number of senior strategy, account management and commercial roles. He also has extensive experience in the travel and transportation sector from his work at EDS prior to its acquisition by HP.

All IT application development will be integrated under the leadership of Chief Information Officer, Mark Ryan, supporting Travelport?s commitment to ongoing modernisation of its technology environment and delivery of next generation travel transaction processing systems and an industry-leading airline IT suite.

Earlier in the year, Travelport announced a significant multi-million dollar (US) investment in next generation software, and an upgrade to the IBM z/Transaction Processing Facility (zTPF), enabling it to more than double the information it processes in 160 countries and providing one of the most stable and secure technology environments in the travel industry.

Within the Travelport Commercial team specialised in GDS sales and services, the following changes have also been confirmed:

- Bryan Conway will head up the company?s global commercial operations function;
- Rabih Saab is appointed President and Managing Director for the Middle East and Africa;
- Jason Clarke is appointed President and Managing Director for Europe;
-Jon Hall is appointed to the position of President, Corporate Sales.

Bryan Conway, currently President and Managing Director, Middle East and Africa, and one of Travelport?s most experienced leaders, will become Senior Vice President, Global Commercial Operations. In this role, he will assume primary ownership for the deployment of Travelport?s new products - Travelport Universal Desktop, Travelport e-Pricing and Travelport Universal API - as well as taking global responsibility for customer service and support. He will also own Travelport?s global strategy for airlines and other customers for whom Travelport provides vital global distribution services.

As a result of this appointment, Rabih Saab, who has recently led the successful set up of Travelport?s new direct operations in the Middle East, has been appointed President and Managing Director for the MEA region.

Jason Clarke, currently heading up global operations, has been appointed President and Managing Director for Europe, replacing Olaf Gueldner who has decided to leave Travelport. Clarke has broad experience in customer service and support gained through his most recent position as well as other high profile roles within the business, including running the company?s operations in the UK and Ireland, Spain, Benelux and France.

Jon Hall, who joined Travelport in March 2008, has been appointed President, Corporate Sales. He will lead the Travelport team which engages directly with corporate travel buyers for on-line corporate booking tools such as Traversa, and other software and services developed for the corporate travel sector and provided through Travelport?s third party technology partnerships.

Sharp, Conway, Saab, Clarke and Hall will all report into Chief Commercial Officer, Kurt Ekert, alongside Travis Christ who runs Travelport?s Americas region, Simon Nowroz who runs the Asia Pacific region, Sandra McLeod who leads Global Travel Management Accounts and Niklas Andr?en, who was recently appointed to the post of Group Vice President Hospitality and Partner Marketing.

?These changes enable an even tighter alignment of Travelport around the commercial objectives of our customers. They will also better enable Travelport to commence the large scale introduction of its new products, in which we have made considerable investment this year, such as the Travelport Universal Desktop, Travelport Universal API and Travelport e-Pricing. Our airline IT customers are also now able to take advantage of a more holistic offering as we leverage our recent IT investments,? said Gordon Wilson, Deputy Group CEO of Travelport. ?On both a personal and professional level, I would like to thank Sue and Olaf for their notable contribution and commitment to our business. Sue specifically for her role in growing our AITS business, and, prior to that, operating as CIO for Travelport and Olaf for his contribution to our market leading position in many European countries. I wish Sue the very best for a long and healthy retirement and Olaf every success in his future career.?

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IATA Reports September 2010 Traffic

IATA has released the international traffic results for September 2010, that show international passenger traffic had a 10.5% year-on-year increase which is significantly stronger than the 6.5% rise recorded for August. International freight traffic recorded a 14.8% year-on-year increase, which is significantly weaker than the 19% rise recorded in August.

The contrast between the performance of freight and passenger markets provides a mixed picture for industry performance. Seasonally adjusted figures show that, compared to the previous month (August), passenger traffic expanded by 2.1% while freight markets contracted by an equal 2.1%.

The rebound in growth in passenger markets during September can be attributed to normal volatility in travel patterns accentuated by special factors such as the effect of the Ramadan. Passenger capacity expanded by 7.3%, below the 10.5% growth in volumes, pushing global load factors up to 80%. This is a significant improvement on the 77.7% recorded for September last year.

While freight markets were expected to weaken towards year-end, September?s decline was larger than anticipated. Consumer and business confidence remains weak in many parts of the world. Re-stocking lifted freight markets earlier in the year, but this has not been followed by spending to solidify the economic recovery. Compared to September 2009, freight capacity has increased by 11.9%, below the 14.8% increase volumes, pushing cargo load factors to 52.4%.

?It is good news that the recovery in passenger markets continued in September. But the freight numbers are worrying. Freight activity has fallen 6% since May?s post-crisis peak. What we see in air cargo markets is inevitably reflected in the broader economy,? said Giovanni Bisignani, IATA?s Director General and CEO. As international air cargo accounts for 35% of the value of goods traded internationally, it is a leading indicator of economic activity.

International Passenger Traffic

? North American carriers saw their traffic climb back to pre-recession (early 2008) levels during the month with an 11.1% increase in passenger demand compared to the previous September. This outstripped a 7.2% capacity expansion. The region recorded the strongest passenger load factors at 84.1%.

? European carriers met an 8.4% increase in demand over the previous year with a 5.9% increase in capacity. The region?s carriers reported an average load factor of 82.6%. The region is now 2% above pre-recession levels.

? Asia Pacific carriers posted an 8.6% traffic increase over the previous September against a capacity increase of 6.9%. While the region led the recovery with an early surge in demand, growth in 2010 has been largely flat. Traffic in the region remains 2% below the pre-crisis peak of early 2008.

? Middle Eastern carriers led the industry growth with a 23.9% increase compared to 2009. The earlier occurrence of Ramadan dampened demand in August, but boosted September?s traffic. This outstripped capacity growth of 15.3%. Nonetheless, load factors of 76.8% were below the industry?s 80% performance.

? Latin American carriers posted the industry?s weakest growth at 6.6% with a 0.5% increase in capacity. The weakness is largely due to the ceasing of all operations by Mexicana.

? African carriers reported a 16% growth in demand over the previous September against a 10.1% increase in capacity. The region is now 7% higher than the pre-recession levels of early 2008.

International Freight Traffic

? September marked the second consecutive month of seasonally adjusted declines in freight demand (-1% in August, -2.1% in September). Freight volumes are 6% below their May peak and is equivalent to pre-crisis levels.

? European carriers recorded an 11.1% increase in freight demand compared to the same month in 2009. Although European exports have been helped with the weak Euro, freight demand for European carriers remains 14% below pre-recession levels.

? North American carriers recorded a 13% growth in September, down from the 21.2% recorded in August, which leaves the region 1% below pre-recession levels.

? Asia Pacific carriers recorded a 15% increase in freight demand over the previous year, a significant decline from the 22.3% growth recorded in August. This took the region?s carriers back to the pre-recession levels of early 2008 and, with their 44% market share, contributed the most to the global drop in freight demand.

? Middle East carriers bucked the declining trend with a 24% increase over previous-year levels. Even through this is less than the 24.2% recorded in August, when adjusted for seasonality this represents an increase of 1.4% over August levels. Moreover, when compared to pre-recession levels, the region?s carriers are carrying a third more traffic than they did prior to the recession.

?The industry?s situation is volatile. Passenger traffic represents about three quarters of the industry?s revenues. While September?s passenger growth is reassuring, the accelerating decline of air freight, including in Asia, is an early indicator of some turbulence ahead,? said Bisignani.

?Government actions can impact the sustainability of the recovery. Austerity measures will dampen demand. When combined with new or increased taxation, as we have seen in Germany and the UK, the challenges are even greater,? Bisignani added. ?Governments must understand that air transport is an economic catalyst. Last year, we saw that a EUR312 million departure tax in the Netherlands cost the Dutch economy EUR1.2 billion. Further taxing the industry makes no sense when the focus of governments should be on making the recovery sustainable.?

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Hong Kong Visitor Arrivals in September 2010

Hong Kong recorded a total of 2,728,107 visitor arrivals in September 2010, 21.2% more than the in September 2009. Cumulatively, arrivals in the first three quarters of 2010 reached 26,175,950, which is a 23.7%-increase year-on-year.

In September 2010, Mainland arrivals increased by 22.7% to more than 1.62 million, driving further gain in overall visitor arrivals. Such momentum of growth, which sustained after the summer holidays, showed that since the implementation of measures under the Individual Visit Scheme in Shenzhen, Mainland visitors no longer travel to Hong Kong only during the peak travel seasons and festive holidays, but that they also come for consumption visits over the weekends.

For short-haul markets, expanded flight capacity between Hong Kong and South and Southeast Asia brought along remarkable growth in arrivals from these markets, which increased by 20.3% compared to September 2009.

As for North Asia, appreciation of the WON currency continued to stimulate travel among South Koreans, causing arrivals from the country to more than double (+106.9%) and overall arrivals from North Asia to rise by 20.4% year-on-year. Arrivals from Taiwan also grew by 14.8%, reflecting an increasing number of vacation travellers from the island.

Further away, double-digit growth was registered in all three regional long-haul markets, with a satisfactory increase of 18.5% in overall long-haul arrivals. In particular, North American arrivals went up by more than 20%, indicating a growing number of both business and vacation travellers as the economy stabilises.

For emerging markets, benefitting from such favourable factors as economic improvements and expanded flight capacity, continual growth was registered in arrivals from Russia (+107.2%) and the Middle East (+31.7%). In India, the country?s fast-growing economy has led to strong demand for outbound travel, especially among both family and business segments, causing overall arrivals to Hong Kong to increase by 27.7% in September 2010.

In September 2010, overnight visitor arrivals to Hong Kong totalled 1.44 million, representing 53% of the total arrival figure and a 17.6%-increase from the 2009 figure. Most key market regions, especially Taiwan (+28.4%) and the Americas (+26.4), showed prominent growth in overnight visitor arrivals.

For the first three quarters of 2010, overnight visitor arrivals cumulated to 14.71 million. This number represents 56.2% of all visitor arrivals in the same period and is 21.8% more than the figure last year.

See also: Hong Kong Visitor Arrivals in September 2009, Hong Kong Visitor Arrivals in September 2008 and Hong Kong Visitor Arrivals in August 2010

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Interview with Pieter Idenburg - CEO of Suntec Singapore

What does it take to be one of the very best MICE venues in the whole Asia Pacific region? What high tech panels is Suntec Singapore installing in its halls and what will they do for visitors, and how much have they cost? What impact have the two IRs - Resorts World Sentosa / Universal Studios Singapore and Marina Bay Sands had on business?

In this HD video interview with Mr Pieter Idenburg who is not only CEO of Suntec Singapore, but also CEO of Suntec International, we discuss all these things plus much, much more.

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Pipeline Imbalance Presents Great Opportunities in Russia

Horwath HTL, one of the world?s largest hotel consulting networks, hosted a plenary session on pipeline and development at the fourth Russia and CIS Hotel Investment Conference on Tuesday, held at the Renaissance Moscow Monarch Centre Hotel.

Michael O?Hare, Managing Director of Horwath HTL Russia and a leading industry expert in the region, led the session and was joined by senior developers from Hilton, Hyatt, IHG and Starwood Hotels and Resorts.

The session addressed whether Russian hotel development had begun to move again after a difficult 2009, where financing was scarce and opportunities were limited. Michael O?Hare talked about the huge disparity in supply of International Hotel Brands compared to demand and how this would be the driving force for opportunities as the financial markets loosened and bank lending began again.

The general feeling among the brands was that projects were beginning to move again, and that those hotels whose construction had been delayed due to a freeze on financing were now finding new sources of capital to enable completion.

Michael O?Hare said, ?It was positive to hear that projects and demand for opportunities are beginning to grow again. Russia, in particular Moscow and St Petersburg, had a period of very strong growth in the middle of the decade until the financial crisis. Those brands will now need to take the opportunity of an upturn to gain critical mass and look outside of the two major centers to the vast majority of Russian cities that have no International presence at all. There are over 50 cities in the Region with over half a million inhabitants that could support new hotel supply and that is where we expect the focus to be in the coming years.?

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