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Japan Travel Trade Weekly News

Keeping you abreast of what's going on in the Japanese travel and tourism industries.

News consolidated by Travel Vision, Inc. updated every week.

Qantas Airways Aims to Establish "New-Age Travel" in Market, Eying Expansion of International Operation in 2010 to Enhance Competitiveness
March 2008

Masahiro Ogino, Regional General Manager Japan, Qantas Airways Limited, mentioned at the Japan Australia Mission (JAM) on February 22 hosted by Tourism Australia (TA), "We must be innovative to launch "new-age" travel products to meet our customer needs," with a view to increasing competition among destinations to be brought by a foreseen expansion of international flight operation both at Narita and Haneda airports in Tokyo in 2010.
In this regard, he appealed to the travel agents for the continued support, citing, "Australia enjoys a variety of resorts as ever and offers many tips and hints for new travel. Together with the travel agents and Tourism Australia, Qantas would like to motivate the customers to visit Australian destinations."
"Our seat load factor is extremely high," Ogino said, driven by the strong business demand enhanced by excellent Australian economy and its abundant natural resources. The traffic from Australia shows a vibrant growth when traffic from Japan becomes sluggish in the low season, thus complementing each other. From January to February, ski traffic from Australia to Japan shows a robust demand. Many days show the flights fully booked, following a suspension of the Sapporo route.
However, when Narita and Haneda airports increase the slots, new airlines will get increased chances to start service to the competing destinations. Therefore, it is imperative, the airline said, to enhance the competitiveness, providing products which attract the customers before new competitors penetrate the market.
"Selling seats in aircraft is no longer a main marketing objective of airlines," said Ogino. "Airlines must observe the market in which we are." Taking an example of the younger generation who are no longer so enthusiastic about overseas travel as they used to be, Ogino added, "We must find out why the young people are not attracted to traveling and what they spend the money on instead."
In developing new products, Qantas is hoping to feature 20% of the total travel products with new travel themes while the airline continues to offer the rest with popular programs including Nature and the World Heritages.
For instance, in order to market the repeaters, which is a burning issue for Australia, Ogino indicated that Qantas will make efforts to promote not only major package tours, but also FITs and tours tailored for the senior-citizen. In the near term, "Fly and Drive" will be featured in tour programs. Wine, dining and sports are gradually becoming a theme of travel which, he hopes, will attract more travelers to Australia.
Women with the age bracket of 20 to 30 are our important customer segment. To attract this customer segment, Ogino said, "The presentation plays an important role," highlighting the resorts with many high quality pictures, for instance.
Travel agents are taking a risk introducing new products and Qantas is ready to share the risk. The airline stresses that it will reduce the burden on the travel agents, underlining its policy to cooperate with them.
Since summer 2007, Qantas started approaching travel agents who have not yet sold Australian destinations by providing them the sales kits. Some seven travel agents have in the meantime started selling Australia.


Japan-China Aviation Talks to Start in Jinan, China from February 27; Haneda/ Nanyuan Charter Operation Also on Agenda
March 2008

Aviation officials of Japan and China will hold a 3-day talk in Jinan, China from February 27 to 29. During the round of talks, they will discuss various aviation issues between the two countries within the framework of medium-term objectives and will also exchange views on other agenda including the passenger charter flights between Tokyo's Haneda and Beijing's Nanyuan airports, previously proposed by Tetsuo Fuyushiba, Minister of Land, Infrastructure, Transport and Tourism, to be inaugurated in time for the Beijing Olympic Games.
The delegation from Japan will be led by Ryuhei Maeda, Deputy Director-General, Civil Aviation Bureau of MLIT, and the Chinese delegation will be represented by Li Jiang min, Director, Department of International Affairs and Cooperation, General Administration of Civil Aviation of China.
The delegations will negotiate aviation issues including mid-and long-term objectives regarding the further expansion of Narita Haneda airports in Tokyo, Japan and the completion of the third runway at Beijing and Shanghai airports in China. According to the international air transport division of the administration department of MILT, no negotiation between Japan and China had materialized since the last air talks were held in Wuhan, China in 2007 and, in fact, an outlook for the forthcoming negotiation is unknown as China places its immediate priority on the Beijing Olympic Games.
Furthermore, a fact that Nanyuan airport is operated by the Chinese military makes it difficult to speculate how things are actually progressing in China. The Japanese delegation anticipates to find out about the progress in China during the round of aviation talks, said MLIT.
As far as the administrative procedures are concerned, it would still be technically feasible to start charter flight operations between the two cities in time for the Olympic Games, as MLIT added, should the decision be taken by the end of June, not taking into considerations timing for charter flight sales.


Starting with Service to Okinawa, Hong Kong Express to Commence Scheduled Service to Okayama, Kagoshima, Hiroshima, Nagoya
March 2008

Hong Kong Express (UO) announced it will start a twice-weekly service between Okinawa and Hong Kong from April 3, 2008. Following the first service to Japan, the Hong Kong-based airline will expand its scheduled service successively to five cities in Japan from the end of April: Okayama from April 26, Kagoshima from April 28, Hiroshima from May 1 and Nagoya from May 15, 2008.
A Boeing B737-800 will be put into service on these routes. Presently, the airline owns four aircraft of this type, to which it plans to add six more and the fleet size is expected to reach 10 by the end of 2008.
Prior to the inauguration of service to Okinawa in April, a sales office will be opened in Okinawa on March 3. Further, a liaison office will be opened in Tokyo which will oversee the start-up of scheduled flights between Hong Kong and various cities in Japan and charter operations to other regional cities including Sendai.
The start-up of the service to Japan by Hong Kong Express is based on the new Hong Kong/ Japan Open Skies Agreement which lifted the capacity restrictions on flights between Hong Kong and all Japanese cities except the Tokyo Metropolitan region.




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