Online travel agent Zuji clicks with technology-savvy travellers

The growth of online travel agent Zuji is proving wrong the doubters who said it could never challenge traditional bricks and mortar operators. Its rapid growth, with business up 130 per cent in dollar sales volume on last year, has been helped by a drive by suppliers and low-cost carriers coming on to the online market, said Scott Blume, chief executive of Zuji, a joint venture of 15 airlines in Asia-Pacific and online travel player Travelocity. He is delighted with the impact of budget airlines which utilise internet bookings. 'We're thrilled, even with those who offer direct bookings. People go online because that's the only place to get competitive content and then they see how easy it is.' This drives traffic to Zuji's site, he added. 'Once online, they look around for options and even if they are not coming to us for the air ticket, they come to us for hotels and cruises.' Zuji's revenue structure varies across its six markets. In Hong Kong, it's a mix of service fee mark-up and commission from hotels. Singapore is primarily service fee and net market margin business, while South Korea is both, said Mr Blume, who is in town this week to introduce Sean Seah, the new country manager for Zuji Hong Kong. But internet bookings can be frustrating for passengers. All too often, a seat on a flight will vanish within the 10 minutes it takes to secure a hotel. If consumers want the cheapest fares and hotel rates, they must be quick, Mr Blume said. 'It's [about] instant bookings and instant confirmation.' From early next year, Zuji Hong Kong will assist travellers by offering 'dynamic packages', which will enable travellers to pick their airfare and hotel together. 'That allows us to hold the airfare while getting the hotel but the reason we can get good prices is because of instant bookings.' It's not just down to Zuji, Mr Blume said. 'It's the suppliers who say: 'If you want that seat, it's available now.'' The priority of airlines - which have complex inventory pricing and yield management systems - was to maximise sales. As for progress with another bugbear, the difficulty of booking complicated itineraries online, Mr Blume said the evolving technology that will help solve the problem was about 12 months away. terminal condition Tony Fernandes, chief executive of budget carrier AirAsia, has said that cheap airfares do not lead to low-spending passengers but the lacklustre response to retail tenders at Singapore Changi's new low-cost terminal may indicate otherwise. Airport contracts are keenly contended but some retail tenders at the new terminal drew few bidders. Two tenders - for general merchandise and a multi-brand sports concession - generated no interest at all. Times Newslink was the only one chasing the books and magazines concession while Mini Toons was the sole contender after the terminal's gifts outlets. There was competition for the confectionery and delicatessen contract, between Focus Network Agencies and Hong Kong's King Power. The Civil Aviation Authority of Singapore did not return calls asking for a comment. Perhaps retail operators think the opening, taking place early next year, is too soon. Or they may suspect that budget passengers would not spend their airfare savings in airport shops. HASSLE-free duty free On the subject of duty free, it's infuriating, especially around Christmas, to set off with a shopping list only to find that the desired items are available only at certain airports. But someone has pulled together everything consumers need to know before they set off. DutyFreeShoppingIndex.com is a one-stop shop to the duty-free selections of the world, with access to the shopping web pages of airports, airlines and other travel retailers around the globe. It lists all the latest products from fine wine to fragrances, together with duty-free allowances for more than 200 countries, a currency converter and many helpful travel-related links. Readers can also give feedback on service standards. 'Duty-free and travel retail shopping remain an indispensable element of international travel,' said Duty Free Shopping Index publisher Martin Moodie. 'Now, with the web, they can make a much more informed choice about what is available at various points of their journey.'