Thursday, 17 July 2014

BHA issues warnings on as Airbnb rebrands

BHA issues home exchange warning as Airbnb rebrands

By Phil Davies

Jul 17, 2014 08:40AM GMT

BHA issues home exchange warning as Airbnb rebrands

A warning to home exchange websites operating in the UK to improve their safety requirements has been issued by hospitality chiefs.

The British Hospitality Association is concerned that the UK’s reputation as a high quality and safe tourist destination could be damaged if guest health, safety and security checks are not properly delivered.

The BHA is asking home exchange websites specifically to ensure that all accommodation listed on their websites comply with mortgage requirements or tenancy agreements.

Homeowners will also need to adhere to fire regulations, attend to proper maintenance of gas boilers, appliances and equipment, check furniture is fire retardant, provide emergency contacts and ensure good housekeeping to minimise pests.

The caution coincided with the relaunch of home-sharing site Airbnb.

BHA legal and policy director Jackie Grech said: “When private homes are rented to tourists, it's unlikely that these properties have ever had any fire risk or health and safety checks.

“Seventy six per cent of fire deaths in the UK last year were in the home and if you have strangers staying there who aren't familiar with how things work, the risks could increase.

“Airbnb has pledged to send smoke and carbon monoxide detectors to home owners - we encourage Airbnb to follow through on this promise.

“This is a first step toward encouraging safer home stays in the UK. We strongly urge all home exchange websites to follow suit.”

She added: “We want everyone to enjoy British hospitality. We need to ensure that every consumer should be assured that regardless of the type of accommodation they purchase, that they will receive the same standards of protection from unnecessary risk.

“We believe that it’s the responsibility of home exchange websites to ensure that owners, and their paying guests, are aware of the risks and take all the necessary regulatory steps to ensure that their homes and their belongings are protected.

“This is only one area of concern for the BHA and there remain serious concerns about the potential for anti-social behaviour, nuisance and community disruption.

“Our role is to champion better standards across the industry. Tourists should be free to choose to stay in whichever accommodation they prefer. However, they must be afforded the same basic health and safety protection.

“The BHA and its members are among 2.7 million people employed in the industry who live and breathe hospitality and tourism. Hospitality is culturally stimulating, exciting and a very economically valuable industry, which is why our single minded aim is to promote and grow our sector.”

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South African Airline hit by turbulence

Passengers injured after jet hits severe turbulence

By Phil Davies

Jul 17, 2014 08:36AM GMT

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At least 20 people are reported to have been injured when a South African Airways aircraft to Hong Kong encountered severe turbulence.

Two people were critically injured and immediately taken to hospital on landing.

Witnesses told the South China Morning Post of passengers being thrown out of their seats and hitting the ceiling and overhead lockers after the aircraft encountered what the airline termed "severe turbulence" over Malaysia.

The Airbus A340 left Johannesburg on Tuesday and landed in Hong Kong on Wednesday.

The airline said 165 passengers were on board when the turbulence struck over Malaysia.

Local television images showed ambulances on the tarmac at Hong Kong airport taking away the injured after the aircraft landed at around 12:30pm local time.

An SAA spokesman said 17 passengers and three crewmembers were injured, although details of the injuries were not given.

Speaking to local press, the Hong Kong fire department spokesman said 14 ambulances, four fire engines, a mobile casualty treatment centre and a mobile command unit were sent to the scene.

Wednesday, 11 June 2014

Villa Parade Collapses

Special Report: Who knew what about Villa Parade?

Jun 11, 2014 08:16AM GMT

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Special Report: Who knew what about Villa Parade?

Is there any substance to claims Abta failed consumers over the collapse of Villa Parade? Juliet Dennis and Ian Taylor investigate

Whatever sent Abta member Villa Parade into liquidation on May 14 is now the subject of an investigation.

It’s also the subject of claims by rival villa-rental firm Rental Republic, which this week appeared in the national press.

Rental Republic, which trades as Travelopo, was also until recently an Abta member.

Let’s start with the facts. Liquidator Chris Brooksbank of insolvency firm O’Hara has confirmed Air Parade, Villa Parade’s parent company, failed with a debt provisionally put at £6.5 million, including £3 million owed to customers.

That does not make it the biggest failure since 2008, as the Sunday Telegraph and Travelopo claimed this week: the failures of Goldtrail Travel and Kiss Flights in 2010 were much bigger and there have been others involving more consumers. But villas rented through Villa Parade were expensive.

According to a letter addressed to Villa Parade owner Ian Sheekey last November, villa owners in Majorca believed the company owed them €2.5 million. This seems a sizeable debt for such a company. Abta was aware of problems at Villa Parade from early April when it initiated a code-of-conduct enquiry.

This was in progress when the company failed and theliquidator took over.

In the meantime, Travelopo emailed Villa Parade clientss aying their bookingswere no longer valid. Villa Parade obtained a court injunction ordering Travelopo desist, but it ceased trading on May 14 with 70 customers abroad and about 1,700 forward bookings – 1,300 accommodation-only and 400 Atol-protected packages.

Agreements terminated

Most other details are contested. Travelopo said it was approached last November by Business Resorts, an agency representing villa owners in Majorca, over Villa Parade’s alleged debts. Travelopo now has the contracts for Villa Parade’s properties.

It was Business Resorts that wrote to Sheekey, telling him the owners had agreed to terminate relations with Villa Parade and warning that subsequent bookings would not be honoured.

Abta insists it was not notified. A spokesman said: “We would have acted immediately if we had seen this letter. We definitely did not see it.”

A Travelopo spokesman said the company informed Abta by phone in March. He claimed Business Resorts also contacted the association and suggested Abta told Travelopo that “it had received calls from [Villa Parade] holidaymakers”.

Travelopo managing director Roger Fenton told the Telegraph: “Abta knew of this problem for at least eight weeks. We alerted Abta as soon as we realised the scale of the problem.”

Yet Abta insisted: “That is not true. It was April 9 [when Travelopo informed Abta]. It’s not true that Business Resorts contacted Abta … Abta had not received any complaints fromVilla Parade customers prior to Travelopo making contact with Villa Parade customers in May.”

Abta members or not?

To complicate matters, Rental Republic had its Abta membership terminated on April 11, two days after Abta said it first heard the allegations.

Travelopo said Abta raised the bond it required of the company and “Travelopo took the view it wasn’t worth it. Travelopo decided to let its membership lapse. It didn’t want to renew it”.

Abta begs to differ, stating: “Abta can categorically confirm that Travelopo did not write to resign its membership which, if it had not been terminated by Abta, would have run until June 30 this year. Membership was terminated because the financial requirements necessary for continued membership … were not complied with by April 11.”

Relations between Travelopo and Abta are the subject of legal correspondence and Travelopo has engaged a public relations firm specialising in legal cases.

Meanwhile, the company said it had helped rebook more than 1,000 Villa Parade customers: “We have agreed to honour the same villa for the same week at the same price for all affected holidaymakers.”

Brooksbank said it was too early to comment on whether Villa Parade owed villa owners. He said: “My job is to realise the assets of the company and investigate why it ended up where it did.” But he admitted the debts could be higher than £6.5 million.

Abta said it was “collaborating closely with the liquidator” and insisted all accommodation-only customers would get refunds.

An Abta spokeswoman said: “People are going to get their money back. That appears to be getting lost in this.”

Tuesday, 3 June 2014

Hilton new Curio brand

Hilton launches Curio brand

Jun 02, 2014 08:20AM GMT

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Hilton Worldwide is introducing a new brand aimed at upscale travellers.

The company plans to build a collection of four and five-star independently-operated urban and resort hotels under the Curio brand, which it expects to make “material” contributions to earnings in years to come.

Hilton is targeting upscale four and five hotels in mature markets, the majority in the US and Europe, chief executive Chris Nassetta said. They will range from boutique urban hotels to large beachfront resorts.

“These are rare, statement hotels that have their own following. There has been a huge demand for these types of properties,” he told the Financial Times.

Hilton also intends to launch a “lifestyle” brand for technology savvy travellers later this year, which Nassetta said would be cheaper and would attract a wider demographic than rivals.

The expansion will be implemented using an ‘asset-light’ business model, where franchises and management contracts are preferred to outright ownership.

Nassetta said it would seek to bring “hundreds” of independent hotels into the Curio collection over the next five years.

Hilton has so far signed agreements with five US hotels, including the SLS Las Vegas (pictured). It is expected to secure two more deals in Doha and Dubai.

The creation of the Curio brand comes six months after Hilton returned to public markets, raising $2.35 billon in an initial public offering in December.

Private equity group Blackstone, which bought the group for $26 billion in 2007, retains a 76% stake.

The company, which opened 9,000 rooms in the three months to the end of March, reported net income for the first quarter of $124 million, compared with $38 million in the same period last year.

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Etihad invests in Alitalia

Etihad 'ready to invest in Alitalia'

Jun 02, 2014 08:00AM GMT

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Etihad Airways has finalised the conditions it requires for a major investment in Alitalia following months of negotiations.

Etihad did not give further details, but in a TV interview Italy's transport minister said the UAE carrier was ready to invest around €600 million in the loss-making Italian flag carrier.

Reports say that Abu Dhabi-based Etihad will receive a 49% stake in Alitalia.

The deal needs to be confirmed by the board of Alitalia and other parties.

Alitalia has agreed as many as 2,900 job cuts under the deal and the Italian government has agreed to back a redundancy scheme for affected staff,Reuters reported.

Alitalia handles about 25 million passengers a year, but is weighed down by debts of about €800 million.

Etihad said in a statement that the Italian government “looks favourably” at a tie-up between the two airlines.

Etihad president and chief executive James Hogan said: “We are delighted to be able to move forward with this process and look forward to the successful conclusion of the proposed transaction with Alitalia.

“An equity investment in Alitalia will be beneficial not only for both airlines, but, more importantly, it will give more choice and broader travel opportunities to business and leisure travellers into and out of Italy.”

Alitalia chief executive Gabriele Del Torchio said: “This investment will provide financial stability and confirms Alitalia's key strategic role as an infrastructure player in the travel and tourism industry in Italy for long-term growth.”

The airline’s president Roberto Colaninno added: "We are delighted to move forward with Etihad Airways providing Alitalia with an ideal strategic partner enhancing the company's long term growth perspectives."

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Fastjet adds new board members

Richard Bodin among three Fastjet board appointments

Jun 02, 2014 08:39AM GMT

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Richard Bodin among three Fastjet board appointments

African budget carrier Fastjet has named three board appointments and plans to recruit a non-executive chairman.

Chief commercial officer Richard Bodin, who previously served as a consultant with easygroup from the start of the project to develop the carrier in November 2011, is among the trio joining the board.

Bodin is a former managing director of Jet2Holidays and has also worked for Virgin Holidays and Lowcosttravelgroup.

Lawyer Krista Bates joins the airline as general counsel while chartered accountant Clive Carver becomes a non-executive director.

Chief executive and interim chairman Ed Winter said: "These appointments add strength to Fastjet's board as we continue our expansion beyond Tanzania.

"Richard was a part of the team that developed the original Fastjet business plan, and as chief commercial officer he has played a vital role working alongside me to prove the low-cost model can be successful in Africa. I have no doubt his input will be invaluable at board level.

"Krista has been providing legal services to Fastjet for the past 20 months through her role as a corporate consultant at a leading Nairobi law firm.

“Having Krista as a part of the team will be a huge advantage, given her wealth of experience and knowledge gained in both England and Africa.

“Clive adds essential and extensive city experience to the board as we move forward in this next phase of our development.

"We will announce the recruitment of a non-executive chairman in due course."

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Funding for Egypt

Saudi and UAE ready $20bn boost for Egypt's El-Sisi

A supporter of Abdelfattah el-Sissi joins celebrations in Tahrir Square, Cairo, Egypt. Saudi Arabia and the UAE are thought to be preparing an aid package to support his government

Picture: AMR NABIL/AP

By Andrew Critchlow5:47PM BST 01 Jun 2014

The oil rich Arab nations are looking to help Egypt's new leader and prevent the Muslim Brotherhood rebuilding a legitimate support base on the back of a weak economy.

Saudi Arabia and the United Arab Emirates are thought to be readying a financial aid package of $20bn (£12bn) to boost Egypt’s economy and support the incoming government of ex-Field Marshal Abdulfattah el-Sisi.

The oil-rich Middle East powerhouse Arab nations, which combined account for more than a tenth of the world’s supply of crude, have already held preliminary talks with authorities in Cairo to discuss how the line of funding will be structured, according to a report in the Arabic media over the weekend.

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Abu Dhabi has already pumped $4.9bn into supporting the economy in Egypt - the most populous Arab states in the Middle East - as it seeks to support Mr El-Sisi and prevent the Muslim Brotherhood from rebuilding a legitimate support base on the back of a weak economy. The government in Riyadh has also pumped almost $5bn into supporting the Egyptian economy already as it seeks to influence events in Cairo and prevent a reawkening of political unrest across the region.

The brotherhood has been banned as a “terrorist” organisation in Egypt since the overthrow of Mohammed Morsi.

Qatar’s support for the brotherhood movement especially in Egypt had driven a wedge between Doha, Saudi Arabia and a number of other Gulf states . However, all sides in the Gulf Co-operation Council agreed to resolve their differences on the issue last month.

Egypt’s economy - once seen as progressive in terms of liberalisation and foreign investment - has failed to recover since the ousting of former President Hosni Mubarak’s regime during the Arab Sprint uprisings which saw a number of governments in the region fall. El Sisi - who is backed by the army - is understood to have won 97 pc of the vote, according to state media last week.

Meanwhile, Egypt stock market plunged on Sunday amid reports that a new government would move quickly to impose a capital gains tax. The EGX30 benchmark index closed 4.22pc lower, or at 7,894.7 points, continuing to slide after trading was suspended after the broader EGX100 index fell by 5pc.

During the Arab Spring uprisings the Egyptian stock market was closed for a period of months.