29 April 2008

AirAsia out of Tune?


DENPASAR ââ¬' There is a curious story in the ever-reliable Bali Update (www.balidiscovery.com) about plans by the Air Asia group to develop its budget Tune Hotels across Indonesia, including Bali.

Sendjaja Widjaja, deputy chairman, Indonesia, for AirAia, apparently told the local media that hotels to be built in Indonesia would pursue a low-cost formula in keeping with the carrierââ¬â¢s low-fare approach to the market.

Widjaja was quoted as saying, "The construction of the hotels will take place this year and begin operations next year.

ââ¬ÅâœIn their operation we will introduce a tariff based on consumption: if a guest uses the air-conditioning he'll pay more than the customer who does not turn on the air-conditioner."

TravelMole wonders what other amenities will be chargeable.

Using the toilet? Taking a shower? Swimming in the hotel pool (if there is one)? Using extra pillows?

Our verdict: This pricing strategy may work in the air but will fizzle on the ground.


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  • Air Asia in Tune

    I agree. We have to be more resource-aware, and the tourism media including travelmole should be promoting a change in mindset amongst tourists and importantly within the tourism industry. Only if the media and the industry start arguing for change will tourists start being less prodiguous and wasteful. I like my luxury sometimes. At other times, I stay in a hotel only to get a good night's sleep. I don't need the extras; even though I know I am paying for them. I am paying for my minibar running, even though I studiously avoid buying its overpriced contents. If need be, I will be quite happy to wait 10 minutes to get what I want from room service. Think about it. I can bet that the minibars' energy consumption and CO2 emission is quite significant. What happens with what Tune is providing is that the onus falls on the tourist to use these resources carefully. Rather than lecturing or hectoring them, the pricing mechanism is a terrific lever. Let us also never forget that holiday and leisure travel is a privilege that many of us can afford - it is discretionary, and therefore it has to be seen in the broader context of what is happening in the world today. The only way we can all still enjoy that privilege is if we agree to pay our fair share for what we use.

    By Ravi Ravinder, Friday, June 27, 2008

  • The Future is Here

    With inflation hitting 21% in 2008 April alone in VietNam, hotels are already implementing tiered accommodation. Most hotels have some form of power control whether it is a room key operated power switch or a switch in reception to cut the air-conditioning when the guest is absent. International guests should recognise their consumption of essentials is way above that of the locals and this is one way of impressing upon guests not to waste precious resources. Smaller hotels offer lower room prices when only a fan is required and a surcharge of USD$1-2 for those wanting air-con. The 'developed' countries have much they can learn from those not so fortunate.

    By Jon Hewson, Monday, May 19, 2008

  • Already Widely Practiced

    Charing for things like A/C, hot water, private bathroom, pool use etc. is already wide spread in the south east asian markets they serve. They are just bringing these widely established practices into the mainstream. I bet it will be a hit. There is a huge demand for a known 'brand' within the south east asian budget hotel market.

    By Trevor Tileston, Tuesday, April 29, 2008

  • Something New?

    It might, or it might not.. Maybe they would do something like, a package thing. Package A) You can use toilet but not swimming pool $10 Package B) You can use everything on top of your room charge $50 Question is, if everyone is only paying for room, how are they going to cover the cost of other facilities which is not being used? Because, only when it is being used, it is paid. How would they balance out the cost and what not..

    By Thomas Yap, Tuesday, April 29, 2008

  • Something New?

    It might, or it might not.. Maybe they would do something like, a package thing. Package A) You can use toilet but not swimming pool $10 Package B) You can use everything on top of your room charge $50 Question is, if everyone is only paying for room, how are they going to cover the cost of other facilities which is not being used? Because, only when it is being used, it is paid. How would they balance out the cost and what not..

    By Thomas Yap, Tuesday, April 29, 2008

  • I guess they will charge them for walking through the lobby and using the elavtors

    I guess they will be charged for walking through the lobby and using the elevators, no one will accept this, unless this is a taco stand

    By Raed Habiss Habiss, Tuesday, April 29, 2008

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