The Wrap: Grab and Klook partner to promote regional tourism, AirAsia launches e-tail platform to bolster revenue, and more …
03/09/2020 by WiT

The Wrap is a round-up of news in the travel and technology industries, and to keep track of developments in these sectors as the green shoots of recovery slowly take root.

Grab adds tour and activity bookings to app through integration with Klook

A new partnership to promote tourism in South-east Asia as travel restrictions ease.

Users of Singapore-based super app Grab are already spoilt for choice in services offered that include food, rides, mart, hotels, insurance, hotels, delivery and now they can also book tours and activities across South-east Asia.  

This is made possible via a new “Attractions” tile on the Grab app through its integration with Hong Kong-based travel activities and services booking platform Klook.

Grab users can use the new tile to search through Klook’s catalogue of over 100,000 attractions, tours, F&B outlets, local activities as well as offers from partners such as Disneyland and Legoland.

The two partners stated that with the easing of movement restrictions in a number of countries they “aim to help South-east Asians explore a new normal of travel, beginning with local exploration and domestic travel in their countries.”

In Malaysia, for example, Grab users can book popular activities such as Aquaria KLCC, a sunset cruise at Langkawi or join a pottery class. Users can also help support small businesses such as Entopia by Penang Butterfly Farm.

They can book their activities online in real time and check out with GrabPay, earning GrabRewards loyalty points at the same time.

“The pandemic has hit the tourism sector hard and made travel difficult but we know that many South-east Asians still harbour a deep-rooted desire to explore and discover new adventures, no matter near or far from home,” said Jerald Singh, chief product officer and head of geo at Grab.

“Our partnership with Klook gives our users the best way to uncover new experiences locally, which we also hope will drive more support towards businesses that depend on tourism. Full recovery is a long way away, but we look forward to playing our part to hasten the journey by working together with like-minded partners like Klook.”

Marcus Yong, vice president of APAC marketing, Klook, added that after staying indoors for months travellers are eager to start exploring again, starting with the current available options that are mainly domestic experiences.

“This integration will provide both Grab and Klook users with a more seamless, mobile-first experience to discover and book unique experiences right in their backyards,” he said.

Klook said more features and initiatives would be rolled out within the “Attractions” tile in the coming months including a wish list function, feature for writing reviews and integration with other Grab services.

AirAsia Shop to boost airline’s revenue as pandemic continues to erode bottom line

The new AirAsia Shop will help bolster the group’s revenue (At the launch – from left: AirAsia.com group head of ancillary commercial Rose Lam, AirAsia.com CEO Karen Chan, AirAsia Group CEO Tony Fernandes, Teleport CEO Pete Chareonwongsak)

With the aviation sector hardest hit by Covid-19 and with most of its flights on hold, AirAsia is turning to its digital businesses to shore up its revenue while waiting for international borders to reopen for travel.

The budget carrier recently launched AirAsia Shop, described as an “e-tail platform” where customers can purchase duty-free products and have them delivered to their doorstep within the next working day through its logistics arm Teleport.

For shoppers who are travelling they can also opt to have their purchases  delivered onboard an AirAsia flight or at the boarding gate, or choose self-pickup at the airport.

AirAsia said the platform would not only contribute to the group bottom line, but would also “further solidify its foray into becoming a fully integrated one-stop digital lifestyle platform.”

The carrier has set up its own e-commerce platform called OURSHOP hosted on its website Airasia.com. During the height of Malaysia’s movement control order (MCO) in April it launched the “Save Our Shops (S.O.S)” campaign to help struggling local small businesses hit hard by Covid-19 to market their products on OURSHOP.

“Today we are proud to transform this business unit to AirAsia Shop, which is an innovative business division within the AirAsia Group offering convenient and value-for-money duty free shopping,” said AirAsia Group CEO Tan Sri Tony Fernandes at the platform’s launch on August 27.

The group is also looking to expand its business into other ASEAN countries, kicking off with Thailand as it has just received the necessary approvals to roll out the duty free business there. 

“This duty free e-tail platform is set to be one of the key revenue contributors to the AirAsia Group, as we continue our efforts to become ASEAN’s leading digital lifestyle brand,“ Fernandes added.

Covid-19 widens AirAsia’s loss in Q2

The digital businesses, with their steady performance, are currently helping to prop up the airline group as the current pandemic has sunk it further into the red.

For the quarter ended 30 June 2020 (2Q2020) the group reported a net loss of RM992.89 million (US$239.63 million), compared to a loss of RM803.55 million in the first quarter ended March 31, 2020. (Revenue from the digital businesses was up 137% for the second quarter, faster than the 1Q2020 growth rate of 118%.),

The revenue of the Consolidated Group (Malaysia, Indonesia and Philippine airline units and digital subsidiaries) plummeted 96% to RM119 million from RM2.9 billion in the previous year’s corresponding quarter (2Q2019).

The 96% year-on-year (y-o-y) drop in revenue was primarily attributed to a 98% y-o-y decline in airline revenue as capacity was significantly reduced due to fleet hibernation at the end of March, prior to gradual resumption of domestic operations from the end of April as travel restrictions eased.

Despite the losses and large drop in revenue Fernandes remained upbeat and believes “there is a silver lining in every crisis”. He said during the lockdown the group took the opportunity to restructure its operation and lay the foundations for a sustainable and viable business for the future.

“Although we do not foresee capacity returning to pre-Covid-19 levels in the short term, we expect demand to gradually continue to grow throughout the second half of 2020 and for the airline to be profitable in the years to come as costs have reduced significantly amidst our network optimisation and improved pricing strategies.

He added that fuel hedging has been restructured, operating costs have reduced and that the group has received support from lessors for deferrals. “Furthermore, we are working together with our creditors on repayment plans.” (Second quarter 2020 financial results)

Qatar, ranked world’s safest country, expands Qatar Clean programme to tourism sectors

Four Seasons Hotel Doha is one of the properties that has implemented Qatar Clean programme.

Qatar has extended the “Qatar Clean” programme to more tourism sectors beyond hotels and tourist accommodation as the country prepares to welcome back international visitors.

This comes alongside the announcement that the country has been ranked the “safest country in the world” in Olery Guest Experience’s 2020 Numbeo Safety Index – the second consecutive year and the third time it has reached the top position sine 2017. The index, which tracks safety in 133 countries, cited Qatar’s level of safety and security as the winning factors

The multi-phased Qatar Clean, a collaboration of Qatar National Tourism Council (QNTC) and the Ministry of Public Health, was created to reassure visitors a safe experience with the enforcement of strict standards of hygiene and cleanliness in public places across the country.

Phase 1, which rolled out in May and June, was focused on accommodations. The programme is now being extended to other tourism sectors such as restaurants and shopping malls.  

QNTC said since the programme’s introduction almost 100 hotels have been certified, with more being reviewed .

To obtain a Qatar Clean certification hotels must adhere to a number of conditions. They include the appointment of a Qatar Clean programme manager, daily sterilisation of  their facilities, adoption of mobile or contactless procedures for check in and check out, as well as daily temperature checks of all employees, suppliers and guests.

Qatar is currently in the third phase of its four-phase reopening plan with hotel facilities, shopping malls and many of the country’s health clubs and salons now open for business, with precautions in place. 

“We will study the expansion of the initiative and its potential application in other sectors in order to ensure our continued success in limiting the spread of the coronavirus  and maintaining the health and well-being of the people of Qatar,” said Dr. Hanan Mohamed Al-Kuwari, Minister of Public Health

Akbar Al Baker, secretary general of QNTC and CEO of Qatar Airways Group, added that the programme is one of the many initiatives by the council working with its partners, to help the sector welcome back international visitors to the country. 

With Qatar hosting the FIFA World Cup 2022, the first west Asian nation to hold the sporting event, Akbar Al Baker expects “a significant influx of visitors” to the country to enjoy sports and other experience.

Featured image credit (cruising in Langkawi): amlanmathur/Getty Images

BACK