Opportunities Today :- March 2005 Issue

TRAVEL AND HOSPITALITY


Indian startup SpiceJet orders 10 737-800s

Boeing secured a big win in India with an order for 10 CFM56-7B-powered 737-800s plus 10 options from new low-cost airline SpiceJet. First delivery is scheduled for 2006 and the firm order is valued at $630 million, according to Boeing. SpiceJet is an LCC offshoot of Royal Airlines Ltd., formerly known as Modiluft. The carrier was among the first privately owned airlines in India but ceased operations in 1996. SpiceJet will start services in May with three leased 737-800s.


British Airways-Qantas JV extended through 2010

The Australian Competition and Consumer Commission recently cleared the British Airways-Qantas joint service agreement for a further five years. The JSA permits the carriers to cooperate on pricing, scheduling and capacity between the UK and Australia. The agreement was challenged by Virgin Atlantic Airways, but after a 21-month review ACCC declared that the decade-old venture, which most recently was extended in 2000, should be permitted to continue. 

Tourism Malaysia sells country to honeymooners

Encouraging statistics from 2004 showing 1,000 couples were married and spent their honeymoon in Malaysia has opened a new market for Tourism Malaysia to exploit in their search for an industry market niche. “Under the honeymoon program, the newly weds will be taken to an ideal destination in the country and given a taste of Malaysia's traditional and cultural wedding celebrations“ said deputy tourism minister Zahid Hamidi. “This year we aim to woo 2,000 couples to have their wedding in Malaysia, and then spend their honeymoon in our holiday resorts Pulau Pangkor, Langkawi, Sabah and Sarawak.” Tourism Malaysia hopes to involve 200 agencies in the program this year, up from 120 in 2004. Last year's program attracted overwhelming response from West Asian and European couples who wanted a unique and once-in-a-lifetime experience for their wedding.


The package, which will be aggressively promoted in West Asia, Middle East and Europe will be a joint promotion by wedding planners and Menara Kuala Lumpur. Promotional efforts will include a delegation at the Dubai Travel Mart this coming May.

A wedding package including a 10-15 days stay at local resorts and is estimated to cost around USD 2800 ( Rs 125000)


Online travel makes big inroads in Germany 

Germany's online travel market has experienced strong growth, outpacing that of Europe as a whole.

After doubling in value in 2003, online travel bookings in Germany rose 62% last year to an estimated eur3.3 billion ($4.3 billion), according to the report. All of Europe is projected to have grown 51% to eur19.2 billion following 65% growth in 2003. The German online market is expected to continue to grow in the range of 60% annually through 2006, at which time Germany is projected to represent 20% of the European market. 


Among the other findings in "European Online Travel Marketplace Update 2002-2006: Focus on Germany": 60% of the European online travel agency market is in the hands of the top five agencies, a figure that rises to 70% in Germany. By comparison, in the US three companies control 93% of the market. Lastminute.com is the last remaining independent online travel agency among the top five in Europe and two of the top three will be US-owned as of the first quarter of 2005, the report states. 

Those most challenged by the advent of online travel sales are Europe's traditional tour operators selling inclusive travel packages and the European charter and holiday airlines that rely heavily on such package sales. 


World's longest tree-top walk set to open 

Alor Star, the northernmost Malaysian city, is scheduled to unveil in May the longest forest tree-top walkway in the world.

A project of the state's Tourism Action Council, those with a penchant for the outdoors will be able to enjoy jungle trekking facilities and a campsite. Additional attractions and facilities planned for the whole project include a hostel for 150 visitors.

Built without the use of machinery to ensure minimal damage to the natural lush, virgin forest contour, the project has been dubbed the Sungai Sedim Tree-Top Walk. It is situated on the Gunong Inas Rain Forest Reserve in Kulim, the 950 meter walkway weaves through about 50 hectares of the jungle's canopy, along galvanized iron bridges 26 meters above the forest floor.


The walkway also offer visitors a bird's eye view of the forest and the Sedim River, rare species of orchards, ferns, insects and birds.
For the more scientific nature lovers, signs will be placed on plants and trees 


Rise in visits to and from the UK in 2004

Visits abroad by UK residents rose by four percent to 63.6 million in 2004 compared with the previous year, new figures from the Office of National Statistics revealed.

Visits to North America rose by 16 percent (to 4.8 million), while visits to other parts of the world rose by 23 percent (to 9.8 million) but visits to Western Europe fell by one percent (to 49.0 million), according to a release from the Government News Network. 

The report pointed out that over the same period, visits by overseas residents to the UK also rose, by 11 percent to 27.5 million. There was an increase in visits from residents of Western Europe by 10 percent (to 17.8 million), from North America by 9 percent (to 4.4 million), and from other parts of the world by 20 percent (to 5.4 million).

During October to December 2004, the number of visits to the UK by overseas residents was 7.1 million-an increase of 3 percent when compared with the previous three months. Spending also rose by 1 percent to £3.3 billion, the new statistics revealed.
The report also showed that over the same period, the number of visits overseas by UK residents fell by 1 percent to 16.0 million, while the associated spending increased by 2 percent to £7.7 billion


International Aviation Symposium “ITB Aviation Day” on 11 March Opening address by head of IATA 

A new source of information is being made available to the global aviation industry: On 11 March 2005, as part of the ITB Congress Market - Trends & Innovations, the International Tourism Exchange ITB Berlin is organising its first aviation symposium under the title of the “ITB Aviation Day - The Future of Air Transport”. Leading representatives of airlines, airports and aircraft manufacturers will be using this opportunity to discuss current issues of particular interest to the international aviation sector. These discussions will take place on the opening day of the world's largest tourism trade fair, which is being held this year on the Berlin Exhibition Grounds from 11 to 15 March 2005. 

Germany is without doubt one of the most important European markets for the international aviation industry .The symposium is in three sections: “Airport“, “Aircraft“ and “Airlines“. The topics covered under the heading of “Airport” will feature discussions about the future of airports. The representatives of airports in Germany, elsewhere in Europe, and in North America will address the question of how medium-sized and small airports can adapt in the face of the significant expansion that has been predicted for so-called mega-hubs, and what impact the success of the low cost airlines is having on airports all over the world.

The “Aircraft” panel will examine questions involving product strategies and product development. What will the aircraft of the future look like? What sort of cabins will they have, and what sort of engines? The importance of jets designed for extra-long flights and the influence of constantly increasing oil prices on manufacturers and aircraft will be considered.

The “Airlines“ panel will focus on the question of how the airlines will distinguish between the individual customer segments in future. What changes will have to be made to the business model of the traditional network airlines to enable them to compete effectively with low cost carriers? And what form will future airline alliances take? 

Representatives of the aviation industry in the USA, Europe and Germany have announced that they will be attending the “ITB Aviation Day - The Future of Air Transport”. The opening address will be given by Giovanni Bisignani, Director General and CEO of the International Air Transport Association (IATA). The individual events will be chaired by well known aviation journalists from Germany's daily press and business publications.

 

Note : Airline & Hospitality Industries are ever changing Industries. Hence, whatever published in this segment may be subject to amendments/ alterations 


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