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Viking and China Merchants Group to build cruise line for Chinese cruise market

April 10, 2019 by Forimmediaterelease

Viking Cruises and China Merchants Shekou, representing China Merchants Group, announced they have signed a memorandum of understanding to form a joint venture focused on building a cruise line with worldwide cruise offerings for the Chinese cruise market.

This will be a wide-ranging partnership covering from product development to sales and marketing. Further, China Merchants Group’s shipbuilding subsidiaries will partner with the joint venture to design and build new ocean cruise ships dedicated to the Chinese market.

“China is a dynamic outbound tourism market, and we are pleased to be partnering with China Merchants Group in this joint venture to drive the development of the cruise industry – we see Viking’s way of cruising less as a trip and more as a lifestyle,” said Torstein Hagen, Chairman of Viking. “For more than 20 years, we have led the industry in developing a fleet of ships and a range of cruise itineraries that we believe provide guests with the most comfortable and enriching way to explore the world. Our partnership with China Merchants Group will allow us to bring this Viking travel lifestyle to more Chinese travelers more quickly, satisfying the Chinese market’s unmet demand for a greater choice of sophisticated travel.”

“China Merchants Group treasures this cooperation with Viking. This is a full scale, multi-dimensional cooperation that covers all three main business sectors of China Merchants group,” said Gangfeng Fu, president of China Merchants Group. “Viking has gained tremendous experience in cruise operations and branding strategies during its 20 years of rapid growth. We sincerely hope that the alliance of the two powerful brands will create synergies and innovative business models that will lead the cooperation into a market-leading cruise brand.

Viking operates a current fleet of 78 vessels, offering scenic cruising on rivers and oceans around the world. China has been a part of Viking’s destination portfolio since 2003, and since setting up local operations in China in 2016, the company has seen strong momentum in its European river cruise product tailored for Chinese-speaking guests.

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WTTC Global Summit: Next stop San Juan

April 5, 2019 by Forimmediaterelease

Discover Puerto Rico, the Island’s first-ever and new Destination Marketing Organization, today announced that island will serve as the host for the World Travel & Tourism Council 2020 Global Summit, following the formal announcement made by WTTC at today’s closing ceremony of the 2019 Summit in Seville, Spain. Representing the global private sector of travel & tourism, the Global Summit is regarded as the most important worldwide event in the sector, and gathers significant global business leaders, yearly.

“We’re honored to have been chosen as host destination for the upcoming World Travel and Tourism Council 2020 Global Summit. Puerto Rico is a place where rich culture and natural wonders lay the foundation for an immense bounty of one-of-a-kind experiences. We’re thriving as a destination of global importance and hosting this Summit will elevate even further our tourism offering, positively impacting the local economy. We look forward to welcoming the global tourism industry next year to discover all that Puerto Rico offers,” said Brad Dean, Chief Executive Officer of Discover Puerto Rico.

In Puerto Rico, the travel industry employs roughly 77,000 people, contributes 6.5% to the Island’s GDP and impacts a noteworthy 17 additional sectors of the economy. This, on the rise given the Island’s increasing popularity as a must-visit destination on a global scale, and validated given the selection by the WTTC, as the first U.S. Island territory to host the respected event.

“We are delighted to bring next year’s Global Summit to the beautiful tropical Caribbean island of Puerto Rico, a welcoming and diverse destination that is attracting travelers from all over the world,” said Gloria Guevara Manzo, President and CEO of WTTC. “We’re particularly excited because the destination provides ease in traveling and doing business since Puerto Rico is a US territory yet has the allure of the Caribbean.”

The WTTC Global Summit will be held from April 21-23, 2020 at the District San Juan, a five-acre hospitality and entertainment district opening later this year. The complex is currently being designed and poised to be the most vibrant and popular setting for events, conventions and performances in the Caribbean.

Puerto Rico’s unique history and offerings set it apart as a global destination, including a fusion of Taino Indian, Spanish and African cultures, seen vividly in the food, music and architecture. Found on the Island is El Yunque, the only tropical rainforest in the U.S. forest system; three of the world’s five bioluminescence bays; and El Monstruo, the longest zip line in the Americas. Visit DiscoverPuertoRico.com for more information on the destination and its variety of offerings and lodging options.

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Heart of Europe Travel Summit set for Dubai this month

April 2, 2019 by Forimmediaterelease

In a combined effort, Atout France’s travel trade workshop, Marhaba, will kick off its two-day event on April 24 while the national tourist boards of Germany, Switzerland, and Austria will take over on April 26 and host the Heart of Europe Travel Summit at Sofitel, The Palm Resort & Spa, Dubai.

Demonstrating their commitment to the Gulf region, the European national tourist boards of Germany, Switzerland, Austria, and France are hosting an exclusive networking event in Dubai this April, ahead of Arabian Travel Market (ATM).

More than 40 tourism suppliers from France and 80 from Germany, Switzerland, and Austria ranging from local tourist boards, hotels, destination management companies, airports, shopping facilities, and transport companies as well as medical clinics are looking forward to developing knowledge about the destinations, and also providing travel trade from the GCC with the opportunity to source products to enhance their holiday offerings for the summer season and beyond. The four tourism boards expect an attendance of over 100 buyers from the GCC region.

Highlighting the importance of the travel trade industry in the Gulf region, Sigrid de Mazieres, Director–Gulf Countries, German National Tourist Office, said, “We are excited to collaborate with our European neighboring countries, and to facilitate business relations between our touristic partners and the local travel trade through this new innovative platform.”

The travel trade workshops will include pre-scheduled B2B appointments, cutting-edge presentations and extensive social programs to experience the destinations’ hospitality and networking opportunities with participating decision-makers.

“We believe that one of the many challenges facing the travel trade industry today is to keep abreast of the growing and changing needs of travelers from the region. This joint and unprecedented event is a direct response to assist the travel trade in selling our countries,” explained Karim Mekachera, Regional Director, Atout France Middle East.

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Korean Air: No more peanuts

April 1, 2019 by Forimmediaterelease

Korean Air has made the decision to remove peanuts from its food offerings after the recent incident involving 2 teenagers who were taken off their flight from flight KE621 to Manila from Incheon Airport because of a peanut allergy.

Korean Air has taken this action to ensure the health and safety of passengers who are allergic to peanuts. As a first step, the airline has replaced its honey-roasted peanut products with other snacks, such as crackers.

In addition, within the next few weeks, Korean Air will remove food containing peanut ingredients from in-flight meals.

The airline is determined to provide a safe environment for all passengers and prevent any similar cases in the future.

“The decision to stop peanut products and peanut ingredients is the minimum safety measure for peanut-allergy passengers,” a Korean Air spokesperson said.

Peanut allergies are emerging as a critical issue in the aviation industry, and a number of major global carriers have stopped offering in-flight peanut products.

More information and travel tips are available on Korean Air’s homepage for passengers with a peanut allergy.

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Aruba Tourism and Baseball Major Leaguer promote travel the “Xander Way”

March 30, 2019 by Forimmediaterelease

The Aruba Tourism Authority announced today a year-long partnership with all-star shortstop and native Aruban, Xander Bogaerts. Serving as a brand ambassador for the Caribbean island, Bogaerts will star in a content series promoting travel to Aruba and encouraging visitors to experience the island the “Xander Way.”

Throughout the Major League Happiness campaign and via a series of videos, Bogaerts shows sports fans and tourists alike around his “Dushi Tera” (Papiamento for “Sweet Land”). Take a tour with Xander through his colorful and artistic hometown of San Nicolas, also known as the Sunrise City where visitors can explore street art and get a sense of authentic Aruban culture.

“Aruba to me, is more than my birthplace and my home, it’s where I’m able to relax, reconnect with family, go fishing with friends, and enjoy the beautiful waters,” noted Bogaerts. “I’m excited to partner with the Aruba Tourism Authority to show my fans in Boston and around the country my favorite hot spots in Aruba.”

The series showcases Xander’s favorite spots around Aruba that appeal to all types of travelers, including Eagle Beach for beach lovers, which was recently rated third in the 2019 TripAdvisor Travelers’ Choice ® awards for Beaches. Intrepid explorers will be inspired by Xander’s trip to Seroe Colorado, the island’s southernmost tip that provides sweeping views of Aruba’s rugged coastline. Xander also visits Baby Beach, a picturesque half-moon beach with beautiful turquoise waters in a calm lagoon and some of Aruba’s best restaurants that highlight the diverse culinary offerings available across the island.

“We are thrilled to have one of our native sons and popular baseball player, Xander Bogaerts join us in promoting Aruba to the American traveler. Aruba’s beautiful waters, pristine beaches and desert-like terrain hold a special place in the hearts of all native Arubans, and we can’t wait to welcome Xander fans from Boston and around the world to experience our One Happy Island,” said Ronella Tjin Asjoe-Croes, CEO of Aruba Tourism Authority.

Fans of Aruba and Bogaerts can follow the campaign on social media using @arubatourism on Instagram and @aruba on Twitter and with the hashtag #XandersAruba throughout the baseball season for opportunities to win a trip to Xander’s Happy Island.

For more information or to see Xander’s Aruba, visit aruba.com/xander.

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Jamaica voted one of the best destinations in the world

March 27, 2019 by Forimmediaterelease

Jamaica has been listed in the Top 25 Best Destinations in the World for 2019 on renowned travel website TripAdvisor. The island is the only country in the Caribbean to do so, and ranks among destinations such as London, Rome and Paris.

Jamaica was ranked #14 on the TripAdvisor® Travelers’ Choice™ Awards’ “World’s Best Destinations” list and is also listed as the best destination in the Caribbean.

Negril’s Seven Mile Beach was also named the 10th Best Beach in the world and fifth Best Beach in the Caribbean on the 2019 TripAdvisor® Travelers’ Choice™ Awards’ for Beaches. TripAdvisor recognized 352 beaches around the world.

Award winners for the Best Destinations awards were determined using an algorithm that took into account the quantity and quality of reviews and ratings for hotels, restaurants and attractions in destinations worldwide, gathered over a 12-month period, as well as traveler booking interest on TripAdvisor.

While winners for the Beaches awards were determined based on the quantity and quality of traveler reviews and ratings for beaches on TripAdvisor, gathered over a 12-month period.

Tourism Minister, Hon Edmund Bartlett says, “Jamaica is very pleased to once again receive these incredible accolades from the acclaimed travel website TripAdvisor. We have been increasing our efforts to better meet the needs of our visitors, by focusing on securing meaningful investments and improving on the variety of quality offerings in the destination. We want to thank all of our visitors for choosing Jamaica and we are always ready to welcome them to our shores.”

TripAdvisor is the world’s largest travel site, with over 730 million reviews and opinions covering the world’s largest selection of travel listings worldwide. It covers approximately 8.1 million accommodations, airlines, experiences, and restaurants.

For all of the 2019 Travelers’ Choice Top 25 Destinations, go to tripadvisor.com/TravelersChoice-Destinations.

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New Executive Chef at Westin Langkawi Resort & Spa Malaysia

March 27, 2019 by Forimmediaterelease

Guests dining at The Westin Langkawi Resort & Spa’s signature Eat Well menu, as well as its array of local and international cuisine, are in for a healthier, heightened culinary experience with the appointment of Glen Roberts as the 5-star resort’s Executive Chef.

Glen’s primary emphasis will be on overseeing and enhancing the Eat Well program at The Westin Langkawi, which provides guests with nutritious dishes sourced responsibly and created thoughtfully. The program, offered at Westin Hotels & Resorts worldwide, focuses on accommodating individual dietary preferences and needs without compromising on flavour, taste or satisfaction.

“The Eat Well program is a unique initiative based on the belief that feeling good starts with the right nourishment,” said Glen. “It’s an honour to be part of a stellar team that operates on a wellness-first philosophy, and I’m eager to acquire local insights and exchange knowledge on how best to provide guests a thoughtful, nutritious yet appealing culinary experience.”

Alongside his team from The Westin Langkawi, the widely-travelled food connoisseur will also be in charge of elevating culinary offerings at the Langkawi International Convention Centre (LICC), the island’s leading and largest centre of its kind.

Glen arrives in Langkawi after a stint at the 5-star Emerald Palace Kempinski Dubai, where he was part of the pre-opening team. Prior to his spell in the United Arab Emirates, he spent two years, from 2016, as the Executive Chef at the Shangri-La in Surabaya. His culinary adventures, however, began almost 5,000 kilometres and 40 years ago in Australia.

He began his love affair with food in Australia in the mid-1980s before honing his culinary skills in London and New Zealand. Glen returned to Brisbane and progressed to become second in charge to the Executive Chef of the Hyatt Regency Coolum in Queensland, overseeing 10 food outlets and multi-banquet facilities. He later moved to the Park Hyatt in Canberra, where his tenure as Senior Executive Sous Chef saw him attending to HRH Queen Elizabeth and Prince Edward, Earl of Wessex during their visit there in 2002.

Seeking new horizons, Glen was part of the team that launched the Grand Hyatt Dubai. He then set his sights on the Sheraton Grand Laguna Phuket in Thailand, where he celebrated his first stint as Executive Chef in 2003. Two years later, he found himself in East Malaysia at the Shangri-La Rasa Ria Resort. Whilst there one of the many highlights was to be the key driver behind the production of the “Taste of Borneo” cookbook, which focused on the preparation of 5-star cuisine using local products from Sabah.

In 2010, Glen was an integral part of the team behind the successful renovation and reopening of the Shangri-La Rasa Sentosa Resort in Singapore. He continued to spearhead the resort until 2013, when he moved to the Shangri-La Fijian Resort and Spa as their Executive Chef.

Longing to once again step back into Southeast Asia, he made his way to Thailand’s InterContinental Hua Hin Resort in 2015. Glen was involved in developing and opening the resort’s Roof Top bar and BluPort Wing, which features 40 guest rooms, an all-day dining restaurant, meeting rooms and ballroom.

“Food is my passion, and I’ve also missed this lovely region,” laughs Glen. “By combining the two, I hope to tantalize guests at The Westin Langkawi with some of the healthiest, tastiest cuisine in Southeast Asia while maintaining our international-class standards of service, quality and hospitality.”

Centrally located on 104 acres of lush, Langkawi tropical gardens bordered by the Andaman Sea, The Westin Langkawi Resort & Spa comprises 221 spacious, fully-appointed rooms and suites. The resort also features 20 ultra-luxury Ocean View Pool villas complete with personal pools as well as the award-winning Heavenly Spa by Westin, the only Heavenly Spa in Malaysia.

For more information on The Westin Langkawi Resort & Spa, visit

www.westinlangkawi.com or follow us on Twitter, Instagram and Facebook.

 

 

 

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Summer Schedule 2019: Frankfurt Airport puts spring in its step

March 26, 2019 by Forimmediaterelease

New flight schedule to take effect on March 31 – Total flights expanding moderately

Frankfurt Airport (FRA) continues to strengthen its status as Germany’s leading international aviation hub. Starting on March 31, travelers will be able to fly from Frankfurt to a total of 306 destinations in 98 countries.

In this year’s summer season, the number of flights will increase moderately (by more than one percent) compared to last year. Seat capacity will also grow by between one and two percent.

European, domestic German and especially intercontinental flight offerings will all expand. A rise of between 1.5 and two percent of aircraft movements is expected in the intercontinental category, with seat capacity increasing by 1.5 to 2.5 percent.

 New long-haul destinations

United Airlines will introduce daily services to Denver (DEN) in early May. Lufthansa will also offer a once-daily flight to DEN, while adding Austin (AUS), Texas as a new destination in North America. Cathay Pacific is increasing the frequency on its Frankfurt-Hong Kong (HKG) route, thus bringing the total to three services a week. Qatar Airways will offer more seats on one of its two daily flights to Doha (DOH), which will now be operated by an Airbus A380.

The intercontinental connections available from Frankfurt are marked by an impressive diversity, serving a total of 137 destinations. Lufthansa is continuing the new services introduced last winter to Cancún (CUN) in Mexico and Agadir (AGA) in Morocco. Condor will retain its flights to Kuala Lumpur (KUL) in Malaysia while stepping up the frequency to Phoenix (PHX) in the U.S., Calgary (YYC) in Canada, and Mombasa (MBA) in Kenya. Air India will also maintain its Frankfurt-Mumbai (BOM) route.

More connections to Turkey from FRA

Holidaymakers who wish to spend their vacation in Turkey have quite a few options to choose from: 11 airlines will now fly from FRA to a total of 15 destinations in that country, 15 percent more than before. They include a new service to Bodrum (BJV) by Lufthansa, which is also adding two other European holiday destinations: Heraklion (HER) in Greece and Tivat (TIV) in Montenegro.

Lufthansa will also continue flying to the new destinations it inaugurated last winter. Among them are Thessaloniki (SKG) in Greece, Trieste (TRS) in Italy, and Tromsø (TOS) in Norway. The airline is also adding more frequencies to Tirana (TIA) in Albania and Sofia (SOF) in Bulgaria, as well as Palma de Majorca (PMI) and Pamplona (PNA) in Spain. German leisure carrier TUIfly is strengthening its services from Frankfurt to Lamezia Terme (SUF) in Italy, Larnaca (LCA) in Cyprus, and Djerba-Zarzis (DJE) in Tunisia. In late March, Ryanair will add more services to Dublin (DUB), the Irish capital, bringing the total to 12 a week. Altogether, the total number of European destinations served from FRA will climb to 154, and within Germany to 15.

The impact on Frankfurt Airport of recent airline insolvencies is negligible. Flybmi will no longer be serving Bristol (BRS) in the United Kingdom and Jönköping (JKG) and Karlstad (KSD) in Sweden but because the aircraft used on those routes had only limited passenger seating their cancellation is only minimally affecting FRA’s total capacity. Nor are the failures of two other airlines, Germania and Small Planet Germany, having more than a very slight effect on total traffic. 

Good preparation for a positive travel experience

The moderate growth in flight movements is fully in line with the expectations of Fraport, the operator of Frankfurt Airport. To handle the increase, Fraport has been hiring more staff and allotting more space for additional security checks during the summer season. Nevertheless, passengers may still experience processing delays on peak days. They are therefore advised to check in online before leaving home, arrive at the airport at least two and a half hours before departure, and then head immediately for the security checkpoint. Travelers intending to drive to the airport and leave their vehicles there can book parking spaces online in advance. Passengers are also advised to observe the airlines’ rules on cabin luggage. Fraport recommends taking as few carry-on items as possible. Information and pointers on travel and carry-on luggage can be found at www.frankfurt-airport.com.

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Five challenges confronting Meetings Industry in 2019

March 25, 2019 by Forimmediaterelease

Tight meeting budgets, time pressures, organizational issues, a lack of creativity from hotels, increasingly complex and costly mandates in catering, a need for more dynamic and enriching experiences and resistance to change – these are among the major challenges confronting the meetings industry in 2019.Teneo Hospitality Group surveyed 150 meeting planners and hoteliers on the challenges they faced in effectively competing in today’s changing and complicated marketplace. Interestingly, some of the challenges planners faced are internal, within their own organizations. All identified limited meetings budgets, lack of time and somewhat inflexible corporate cultures that gave rise to additional problems such as a lack of innovation and poor cost control.

“‘Many of these challenges – and their solutions – are interdependent,” says Teneo President Mike Schugt. He notes that meeting professionals are saying that they have concerns within their organization and corporate cultures which contribute to resistance to change, resulting in budgets that are impacted negatively. Planners are also saying that these challenges, coupled with the many demands on time, inhibit creative strategies that could otherwise help solve the obstacles pointed out in Teneo’s most recent survey.

“Teneo and its hotel and DMC members have a unique opportunity to step up and help solve the challenges of our planner partners,” says Mike Schugt. “We can introduce creative, time-saving offerings that can also meet their bottom line. By understanding the needs that go beyond rates, dates and space, hotels can provide innovative, solutions to the challenges planners face behind the scenes.”

Challenge #1 Budgets. Inadequate budgets headed the challenge lists for all survey participants. Planners cited rising costs, especially concerning food and beverage, with no comparable increase in budgets. The complexities of gaining budget increases from various corporate departments impact every aspect of the meeting process from training staff to negotiating contracts. Despite a strong economy, some planners reported budget cuts. Respondents noted that the inability to obtain adequate funding reflected a lack of understanding of the profound changes in the meetings industry that demanded more, not less, investment. Needs of attendees are very different today, especially among Millennials and Generation Z who require a high degree of technical services, greater engagement and entertaining activities – needs that are difficult to meet on a tight budget. Yet management and attendees had extremely high expectations.

Suggested Solution: The fundamental way planners can achieve their budget is to be transparent and in open communication with a property. Though the tendency may be to play one’s cards close to the vest, transparency from the beginning of negotiations is key to effective planning and keeping costs in check. While many planners feel they must keep back some of their budgetary concerns until further on in the planning process, an honest and comprehensive view of the meetings objectives and resources will enable hoteliers to present a realistic budget.

Challenge #2 Lack of Time. Time pressures impact every business and organization, but some concerns have particular ramifications for the meetings industry. Virtually all respondents cited a lack of time and identified challenges that could have far-reaching consequences. With sweeping advances in technology impacting the industry, hoteliers and planners noted that they often lacked the time to keep up with technical developments. This problem was amplified when attendees were ahead of the planners and hotels in their own use of technology. Training a new generation of meeting planners and hotel staff is key to the industry’s progress. But few had time to develop effective programs, tailored to meet the different viewpoints and technical skills of a new generation. Most significantly, respondents worried that the overwhelming details of day-to-day work left little time for long-term, strategic planning. And the top time waster? Too many unnecessary e-mails.

Suggested Solution: Hotels are often inundated with leads and may not always be able to reply in 24 hours. Planners are encouraged to indicate their timeline for response up front so hotels and resorts can offer a higher quality of response. For planners, they can then gather their lead responses all at one time and be assured that the quality of response is going to be higher if a little more time is allocated to the properties of interest. Planners that source more than 6 or 7 hotels per lead and in multiple cities will tend to be taken less seriously by a hotel. So planners can save time and drive up quality of response by reducing the number of hotel sources they contact.

If planners can share flexibility with dates early in the process, they will save time and the hotels can provide multiple options, which will likely have differences in pricing leading to greater value with the budget. Giving the hotel as much information as possible saves everyone time and can save on the budget.

Challenge #3 Keeping Up with Technology. In a technological environment that is moving at lightning speed, staying current and knowledgeable of technology’s impact on meeting productivity can be daunting. Realizing that millennial attendees may be way ahead in their technical knowledge, technology applications and expectations can be intimidating. Even leadership within select organizations don’t always seem to grasp how technology is revolutionizing the meetings experience today.

Suggested Solution: Staying current and out front with technological progress is critical to the successful outcome of every meeting, conference or social gathering. Yes, some long-term practices are still prized such as white boards and LCD players. But engaging with attendee devices puts the meeting’s learning literally in the hands of conferees in a way that resonates within a generation who grew up on texting, social media posts, interactive apps and more. These are the tools they use for their everyday living, and should be the tools they can expect to use within meetings important to their and their employer’s success.

Challenge #4 Lack of Creativity. Big brand hotels’ corporate bureaucracy partially accounts for planners’ demand for greater creativity in the meeting process, and a far more flexible business environment. Larger hotel brands often have corporate policies that may place limits on pushing the boundaries of creating the ultimate meeting experiences for planners. But the need for innovation and original events, imaginative use of technology, effective teambuilding exercises, new experiences in even the most tried and true destinations, and diverse, sustainable and healthy food cannot be ignored.

Suggested Solution: Partner with a hotel or resort that creatively works with planners and groups to construct a meeting itinerary customized to a specific group and set of meeting objectives. Independent and small brand properties, by the very nature of their independence, have proven to be expert in creatively discovering and helping plan for achieving meeting goals of professional planners and groups, doing so with out-of-the-box thinking, highly unique group initiatives, and far from run-of-the-mill teambuilding programming. Private destination management companies can also be an important resource, and Teneo suggests partnering with them to help make a city or destination come alive for meeting guests by maximizing local resources and attractions in a way that is meaningful to the group.

Challenge #5 Increasing Complexity and Rising Costs of Food & Beverage. As the population becomes more diverse, food preferences and dietary requirements have become more complicated. Growing awareness of wellness and sustainability issues add to a mix that could become more problematic and costlier. Paleo, keto, pescatarian, vegan and religious dietary requests are among the newest trends in conference dining in 2019. Respondents also called for better management of food ordering to keep costs down and eliminate waste.

Suggested Solution: This is an area where independent and small-brand hotels can get ultra-creative for the planner as they are in a more entrepreneurial and creative mode, less restricted by big-brand requirements and constraints. They can typically offer a more creative product with reduced costs. By working with chefs and banquet managers from these properties at the beginning of the planning process and being candid about budget constraints, it’s possible to obtain serious savings on food and beverage while achieving maximum creativity.

Travel News | eTurboNews

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Fraport 2018 Fiscal Year: Revenue and Earnings Increase Significantly

March 19, 2019 by Forimmediaterelease

Fraport

Boards propose dividend increase to EUR2 – Outlook remains positive
In the 2018 fiscal year (ending December 31), Fraport AG continued on
its growth path, achieving new records in revenue and earnings.
Supported by strong passenger growth at its Frankfurt Airport home
base and its Group airports worldwide, revenue climbed by 18.5
percent to nearly EUR3.5 billion. After adjusting for revenue related
to capital expenditure for expansion measures at the international
Group companies (based on IFRIC 12), revenue rose 7.8 percent to over
EUR3.1 billion. About two-thirds of this increase can be attributed
to Fraport’s international portfolio – with the airports in Brazil
and Greece, in particular, making a significant contribution.
Fraport AG’s executive board chairman Dr. Stefan Schulte said: “We
are pleased to look back on another very successful year, especially
for our Group airports around the world. Here in Frankfurt, however,
2018 presented challenges due to the constraints in European airspace
and the strong traffic demand. For the medium and long term, we are
very well positioned both at Frankfurt Airport and in our
international business. Moreover, we are laying the foundations for
further long-term growth by implementing our expansion projects.”
Revenue and earnings targets achieved
The operating result (Group EBITDA) climbed markedly by 12.5 percent
to over EUR1.1 billion. The Group result (net profit) rose even
stronger, by 40 percent to EUR505.7 million. This includes earnings
gained from the sale of Fraport’s stake in Hanover Airport, which
contributed EUR75.9 million. However, even without the positive
effects from the Hanover transaction, Fraport already achieved its
revenue and earnings targets. Operating cash flow slightly dipped by
2.0 percent to EUR802.3 million. This was mainly due to changes in
the net current assets related to the reporting date. After adjusting
for these changes, operating cash flow rose by 18.8 percent to
EUR844.9 million. In line with expectations, free cash flow fell
sharply by 98.3 percent, because of more extensive capital
expenditure for Frankfurt Airport and Fraport’s international
business, while remaining in positive territory at EUR6.8 million.
Given the positive business development, the Executive Board and
Supervisory Board will propose to the Annual General Meeting that the
dividend be raised to EUR2.00 per share for the 2018 fiscal year
(2017 fiscal year: EUR1.50 per share).
Passenger traffic rises noticeably at FRA and internationally
Serving some 69.5 million passengers, Frankfurt Airport (FRA)
achieved a new passenger record in 2018 and growth of 7.8 percent
compared to 2017.
CEO Schulte commented: “We are pleased that the airlines have
significantly expanded their flight offerings at Frankfurt Airport
for the second year in a row, thus improving connectivity and
prosperity for businesses far beyond the Frankfurt Rhine-Main Region.
Until the first pier of the new Terminal 3 opens in late 2021, we
will focus on maintaining a high level of service quality at
Frankfurt Airport – while dealing with the constraints affecting the
entire aviation industry. In particular, enhancing the situation at
the security checkpoints will be a top priority for us.”
In response to strong passenger growth, Fraport hired over 3,000 new
staff members at Frankfurt Airport in 2018. Despite the constraints
experienced at some central process points in the terminals during
peak periods – particularly at the security checkpoints – global
satisfaction of passengers with Frankfurt Airport was at 86 percent
in 2018 – thus even posting a slight increase compared to the
previous year (2017: 85 percent). To provide additional space for
security checkpoints, Fraport is investing in an extension to
Terminal 1 for installing seven extra security lanes in the summer of
2019.
Fraport’s international portfolio also posted a significant gain in
passenger traffic during 2018. In Brazil, the two airports of Porto
Alegre and Fortaleza reported a 7.0 percent increase to 14.9 million
passengers in 2018 – Fraport Brasil’s first year of operating these
airports. At the 14 Greek airports, traffic rose by almost 9 percent
to 29.9 million passengers. Antalya Airport in Turkey grew by a
significant 22.5 percent to 32.3 million travelers, a new historic
passenger record.
Outlook: Growth expected to continue
Fraport is forecasting sustained growth at all of the Group airports
in fiscal year 2019. At Frankfurt Airport, passenger volume is
expected to rise between around two and roughly three percent.
Fraport expects consolidated revenue to increase slightly up to
around EUR3.2 billion (adjusted for IFRIC 12). Group EBITDA is
expected to reach a range of around EUR1,160 million and
approximately EUR1,195 million, despite the non-recurring revenue
from the sale of Fraport’s stake in Hanover Airport. The application
of the IFRS 16 accounting standard – which changes the accounting
rules for leases – will not only make a positive contribution to
Group EBITDA, but will also lead to much higher depreciation and
amortization in fiscal year 2019. As a result, Fraport expects Group
EBIT to be in the range of about EUR685 million and around EUR725
million. The company also expects to post a Group result (net profit)
of around EUR420 million and about EUR460 million. The dividend per
share is expected to remain stable at the higher level of EUR2 for
the 2019 fiscal year.
Fraport’s four business segments at a glance
Revenue in the Aviation segment increased by 5.5 percent to slightly
over EUR1 billion. This was due partly to higher revenue from airport
charges resulting from increased passenger traffic at Frankfurt
Airport. At EUR277.8 million, segment EBITDA increased by 11.3
percent year-on-year, while segment EBIT rose 6.5 percent to EUR138.2
million.
Revenue from the Retail & Real Estate segment dropped 2.8 percent
year-on-year to EUR507.2 million. A major reason for this drop was
significantly fewer proceeds from the sale of land (EUR1.9 million in
the 2018 fiscal year versus EUR22.9 million for the same period in
2017). In contrast, parking income (+ EUR8.3 million) and retail
revenue (+ EUR0.8 million) grew. Net retail revenue per passenger
fell 7.4 percent year-on-year to EUR3.12. Segment EBITDA increased by
3.4 percent to EUR390.2 million, while segment EBIT climbed 2.8
percent to EUR302.0 million.
Revenue in the Ground Handling segment rose by 5.0 percent
year-on-year to EUR673.8 million. The strong growth in passenger
traffic resulted, in particular, in stronger revenue from ground
services and higher infrastructure charges. On the other hand,
passenger growth also led to higher personnel expenses at the
FraGround and FraCareS subsidiaries. Accordingly, segment EBITDA
declined by EUR7.0 million to EUR44.4 million. Segment EBIT dropped
considerably by 94 percent, but at EUR0.7 million still remained in
positive territory.
At nearly EUR1.3 billion, the International Activities and Services
segment significantly advanced by 58 percent compared to the previous
year. After adjusting for the EUR359.5 million in revenue related to
IFRIC 12, the segment’s revenue rose by 20.1 percent to EUR931.4
million. This revenue growth received major contributions from the
Group subsidiaries in Fortaleza and Porto Alegre (+ EUR90.9 million),
as well as Fraport Greece (+ EUR53.2 million). Segment EBITDA
increased a noticeable 28.3 percent to EUR416.6 million, while
segment EBIT jumped 40.7 percent to EUR289.6 million.
You can find our 2018 Annual Report and the presentation from the
press conference on our financial statements (as of 10:30 a.m.) on
the Fraport AG website.

MEDIA CONTACT: Fraport AG, Torben Beckmann, Corporate Communications, Media Relations, 60547 Frankfurt, Germany, E-mail: t.beckmann@fraport.de

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