Tuesday, August 16, 2011

WHAT ABOUT TOURISM ?

Tourism is the broad spectrum of travel for the purpose of not only recreation, but also the provision of services for this act. It might occupy local services such as entertainment, accommodation and catering for tourists. It may seem, that tourism brings only benefits, but further consideration shows that it also has disadvantages.

Firstly, many countries depend heavily upon travel expenditures by foreigners as a source of taxation and as a source of income for the enterprises. Therefore, the development of tourism is often a strategy to promote a particular region.

The importance of tourism in in increasing commerce through exporting goods and services.

Secondly, it provides direct employment for the people associated with occupations in bars and hotels. Thanks to it, the average standard of living of people increases well and at the same time unemployment is on the decrease.

However, tourists cause environmental damage through forest fires, destruction of sand dunes and pollution. Consequently this serves negatively as increased pollution disturbs local residents and also it may discourage tourists from further entering the country.

After this, tourism undermines culture by commercializing it and this is often connected with increasing litter, graffiti, vandalism and noise - tourists do not always respect traditional cultures, which is sad but true.

In general, tourism is an extremely profitable process in loads of countries, especially those in which the process of development continue to depend on this industry because this industry does not require a lot of literacy and also it yields maximum profits with less investment.

Monday, August 15, 2011

TRAVEL INSURANCE - A MUST

All travel agents will have to offer travel insurance to their customers flying overseas by year's end. The importance of providing travel insurance will be a requirement soon.

“Travel insurance is already compulsory for those who are travelling to Mecca to perform the Haj since 1992. Now, we want to make it mandatory for all outbound travels and we hope to achieve this by year's end,” said Mohd Khalid Harun, President of MATTA during a press conference after the launch of the MATTA Fair August 2011 yesterday at the Putra World Trade Centre.

“We have done several roadshows around Kuala Lumpur and we will go to other states soon. What we want to do is create an awareness among our members on the importance of travel insurance for customers,” Mohd Khalid said.

He said the association had so far spoken to no less than 10 insurance companies on the possibility of providing coverage to outbound travellers.

On the MATTA fair, Mohd Khalid remarked that the popular travel fair's reputation had gone beyond Malaysia. “We have more and more tourism organisations from other countries who have set up booths here. Even Mexico and Ecuador are at the fair,” Mohd Khalid said.

He said MATTA expected to have an even bigger fair in March next year as the association had plans to hold it at the same time as the International Islamic Travel Conference and Travel Mart. “With the conference and travel mart, it will be a five-day event instead of a three-day event.”

Sunday, August 14, 2011

ITS A DONE DEAL

Government investment arm Khazanah Nasional Bhd and the founders of AirAsia Bhd inked a deal that will see Malaysia Airlines exit the low-cost segment and greater collaboration in aircraft purchasing, engineering and training between the two airlines.

“Imagine MAS during the golden age when we were truly a premium airline. This is what this deal hopefully promises,” newly-appointedMAS executive director Mohammed Rashdan Mohd.Yusof said after a news conference. Rashdan was formerly the executive director of investments for Khazanah Nasional and its nominee to the board of MAS.

Tengku Datuk Azmil Zahruddin, who resigned from his post as chief executive officer and managing director of MAS ahead of the deal, will be the executive director for investments for Khazanah Nasional, effective Sept 12. A new managing director is likely to be appointed soon.

MAS’ low-cost arm, Firefly,will become a regional premium full-service carrier, leaving AirAsia and AirAsia X as the only local players in the low-cost segment. “We have a unique service offering, which is the turboprop (aircraft) out of Subang, and there is no reason why that shouldn’t continue. “It’s not only low-cost travellers who like it, but also people in suits,” Rashdan said.

The early phase of the collaboration will focus on aircraft purchasing, engineering, ground support, cargo, catering and training.

Tune Air, a 26.28 per cent shareholder in AirAsia, agreed to take a 20.5 per cent stake in MAS in exchange for Khazanah Nasional having a 10 per cent stake in it. Under the deal, Khazanah Nasional also proposes to buy a 10 per cent stake in long-haul budget carrier AirAsia X on terms and at a price to be agreed on later.

MAS and AirAsia will issue free warrants to each other’s shareholders. A MAS shareholder will be granted one warrant in AirAsia for every 30 MAS shares held, while an AirAsia shareholder will get one MAS warrant for every 10 AirAsia shares held.

A joint collaboration committee has been formed to carry out the agreement, which will be chaired by MAS board member Datuk Azman Yahya. Other members of the committee include Rashdan, AirAsia group chief executive officer Tan Sri Tony Fernandes and its deputy group CEO, Datuk Kamarudin Meranun. An advisory panel, chaired by former prime minister Tun Abdullah Ahmad Badawi, will ensure that all parties operate in the interests of the public and reflect the aspirations of consumers.

Saturday, August 13, 2011

AIRPORT TAX INCREASE

Air travel will cost more soon when airport tax, or passenger service charge, is raised from next month. Sources said Malaysia Airports Holdings Bhd (MAHB) is raising the tax to cover rising operating costs and finance airport expansion.

It is understood that the airport operator has proposed that the tax at the country’s 39 airports it manages, excluding low cost carrier terminals (LCCTs), be raised by RM14 for international travellers from Sept 15. These travellers will have to pay RM65 from RM51 (RM45 for airport tax and RM6 for security charge) now. The last increase was in 2002, when the charges were raised to RM45 from RM40 for international passengers and RM6 from RM5 for domestic departures.

The tax at low-cost carrier terminals (LCCTs) in Sepang and the Kota Kinabalu International Airport will also likely be raised by RM7, bringing the airport tax to RM32 from the current RM25 for international passengers. However, it is not known how much more domestic travellers at KLIA, other airports and LCCTs will have to fork out.

Sources said MAHB has received the go-ahead to implement the increase in airport tax. An announcement is expected soon.

At present, domestic passengers pay RM9 (RM6 for airport tax and RM3 for security charge) using KLIA and airports managed by MAHB while LCCTs charge RM6. In May 2007, the Transport Ministry halved airport tax at LCCTs from RM51 to RM25 for international passengers and from RM9 to RM6 for domestic passengers.

This latest development comes a day after Malaysia Airlines (MAS) and AirAsia announced a tie-up aimed at turning around the loss-making national carrier. On Tuesday, Khazanah Nasional Bhd, which owns 69.5% in MAS, said it will take up a 10% stake in AirAsia, while Tune Air Sdn Bhd, which owns 23% in AirAsia, will hold a 20.5% stake in MAS.

Sources said the latest increase in airport tax is also part of an operating agreement signed between MAHB and the Transport Ministry in February 2009. Under the deal, the government had agreed to a benchmark airport tax of RM65, excluding LCCTs. Until the tax was raised, the government has to compensate MAHB for the difference. MAHB had said then that the practice better shields the company from policy decisions that may not be commercially viable.

For the first six months of the year, 31.24 million passengers used the 39 local airports MAHB manages, up 12.6% from 27.74 million in the same period last year. KLIA saw 18.42 million passengers from January to June, a 13.4% increase from 16.25 million a year ago. The LCCT in Sepang handled 8.57 million passengers, up 19% from 7.21 million.

Friday, August 12, 2011

THE PRICING TECHNIQUE


Current wisdom tells the hotelier not to discount; rather, add value. So, you’ve taken that to heart and created a package that’s filled with amenities to enhance the experience for your guests.

But for the price-sensitive guest, how do you get that value across and make the sale before he or she succumbs to sticker shock? There’s a time-honored technique for selling luxury that works exceptionally well in today’s market. It’s called, appropriately enough, the PRICE technique, and it breaks down into five easy-to-remember steps:

Prepare your customers by sparking their interest.
Reassure them of the value.
Establish the Integrity of your product.
Gain their Confidence.
Exceed their expectations.

Then, and only then, do you bring up the price of the package.

You can offer a tour package that includes two nights’ accommodations, a Welcome Gift Basket , a six-hour city tour, two spa treatments, dinner for two and breakfast daily plus full use of the spa’s facilities and all resort activities. The best of your resort and the destination wrapped up in one weekend getaway — and it’s priced accordingly. Here’s how a phone conversation might go, point by point, with a potential guest who inquires about the package:

Prepare: “This is one of our guests’ favorite packages, and it’s my own favorite to experience the best of the area this time of year.”

Reassure: “It’s a great value, nearly all inclusive, allowing you a full day to enjoy the spa and another to explore this great city.”

Integrity: “Our spa has been ranked one of the top five most romantic in the world and is rated 4 stars, and our city is the most livable in the world.”

Confidence: “Not only can I suggest the best city tour for you to visit on your chauffeured tour, but I can also set you up with the perfect spa treatments for your bodies’ needs.”

Exceed: “All gratuities and taxes are included in the package, and you can enjoy all of our resort facilities — including hot tubs, wellness classes, bikes, saunas and more — for no additional cost.”

And, finally: “For everything I’ve just described, the price for two people is only RM 500 per night. May I assist you in reserving it?”