Technology checks in as game changer for the hospitality sector

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Technology checks in as game changer for the hospitality sector

Corporate January 24, 2019 01:00

By JINTANA PANYAARVUDH
THE NATION

HOSPITALITY is among those industries that have turned to advanced technologies to play a vital role in improving services while saving on costs and time.

Early movers in the take-up of these technologies also count the increased skills of employees, and their overall higher performance, as flow-on benefits.

Take The Continent Hotel Bangkok in Sukhumvit. Its executives started putting technology in place several years ago as a means of enhancing the services provided by its staff while upgrading their skills. It plans to introduce a concierge robot soon.

“We are engaging in the process of getting a concierge robot, but it is in the feasibility phase. I hope to introduce it soon,” Jay Jhingran, general manager of The Continent Hotel Bangkok, told The Nation, while declining to pin down a time.

Jay Jhingran, general manager of The Continent Hotel Bangkok

The hotel employs a number of technologies such as virtual reality (VR), which allows business-to-business (B2B) partners and guests to view the rooms before making a reservation, a mobile learning application for staff to boost their skills, and the use of Big Data to manage revenue.

Each item of technology brings its own unique benefit to the hotel, said Jhingran.

In the case of Big Data, it can be used to extract insights into revenue flows that enable the hotel to manage its room inventory more efficiently and to provide more rooms at more flexible price points with its travel agent partners, he said.

He likes to highlight the mobile learning solution, which teaches the staff language and selling skills and has already brought benefits to them and the hotel.

With the growth of social media and new tourism markets emerging, it has become more critical than ever to provide consistently high levels of service in the language of each guest, Jhingran said.

“The hotel uses the Boost solution, which allows us to bypass costly classroom-based learning and lets our employees learn at a time and place of their choosing,” he said.

Since the hotel started using the app it has seen a 5 per cent year-on-year increase in upselling revenue and has received positive online reviews on the quality of employees’ English-language skills, according to Jhingran.

“This has yielded a number of flow-on benefits as our employees are able to understand and communicate better with the guests, as you cannot separate guest service from the language they speak,” he said.

“Importantly, though, our employees’ confidence levels have risen as they can immediately see the results of their studies, resulting in happier employees and genuine service.”

The employees can also attest to the benefits of device-based learning.

“It’s very convenient as I can learn it at my own convenient time and place – on the train, during my lunch break, or before bed,” Phatsuda Boonlum, the hotel’s front office supervisor, said.

She spends 30 minutes a day on the “Boost Upsell” app to enhance her selling and communication skills with guests. A course takes around four months to finish.

Learning with the app has helped her to improve her commission fees from more selling of hotel services, she said.

Supattra Pakthong, a hostess F&B at the hotel, uses the “Boost Voice” app to learn from conversations with guests as well as how to set a table and how to solve problems that may arise in the restaurant. In the app, there are gamification elements that make learning fun, she said.

Kochakorn Panwatcharakom, the hotel’s assistant human resources manager, said the enthusiasm that this produces in the workers and in their use of other technologies also has bearings on the hotel’s staff evaluation system.

Previously, when the managers sent staff to attend classroom-based training they had to swap in other workers to fill in for them and this would sometimes stretch the manpower resources, she said, adding that the app-based leaning saved on costs, too.

However, the hotel’s embrace of technology does not mean people would be replaced one day, said Jhingran, as the industry still needs human to human contact.

“Technology can enhance services provided by people, not replace them. At the end of the day guests prefer human interaction, especially in Thailand, where the Thai people are naturally friendly and hospitable,” he said.

“If technology can be put to work behind the scenes to make life easier for our employees, perhaps improving their skills, monitoring social media or generating insights from anonymous Big Data, then this will allow the employees to go out and provide an even better level of service.”

Vietjet adds flights for New Year travellers

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Vietjet adds flights for New Year travellers

Corporate January 24, 2019 01:00

By The Nation

Vietnam’s new age carrier Vietjet is set to add more than 2,500 flights in order to meet the increasing demand during the Lunar New Year holidays (Tet Holidays) and the festive season.

The additional flights will provide 500,000 seats, offering passengers more choices.

From January 20 to February 19, 2019, the carrier will operate more than 12,500 flights with over 2.5 million seats, an increase of nearly 16 per cnet compared to last year.

Vietjet and the Civil Aviation Authority of Vietnam (CAAV) have completed the airline’s supervision to comprehensively enhance its operation activities to facilitate the airline’s flight network growth plan in 2019, ensure absolute flight safety for its passengers and strengthen the public trust of Vietjet in particular and the Vietnam aviation market in general.

Lalamove posts sharp rise in 2018 revenue 

Lalamove Thailand, the on-demand delivery application provider, has reported a 123 per cent surge in revenue last year with a total transaction value of Bt1.2 billion.

In 2019, Lalamove Thailand plans to expand its operations by integrating services such as Lalamove API’ – an automated on-demand delivery process for online businesses and empowers them to scale-up their business faster.

Another development is a new face for the website and application enhancement to provide more conveniences and added functions to customers.

Zen plans IPO to fuel expansion

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Zen plans IPO to fuel expansion

Corporate January 24, 2019 01:00

By KWANCHAI RUNGFAPAISARN
THE NATION

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ZEN CORPORATION Group Plc yesterday said it plans to make an initial public offering (IPO) of its shares to fund the expansion of its restaurant businesses and become the leader in Thailand’s food service industry.

The company announced the move after the Securities and Exchange Commission (SEC) confirmed that it had received the filing for the sale of 75 million shares in the company.

The group highlighted the prospects for its food service business, which includes restaurants and related businesses such as food delivery, catering, restaurant management and retail food.

As well as funding an increase in the number of branches of its restaurants, the company said the IPO proceeds would also be put to improving its existing restaurants and increasing work efficiency. Branches of its restaurants would be added in the home and international markets in the plan to boost sales.

Boonyong Tansakul, chief executive officer of Zen, said that in addition to the company’s ambition to be the leader in the food service business in Thailand, it aims to be regarded as having the most popular and trusted brands among consumers as well as with business partners and other concerned parties.

“This year, we plan to add 36 of our owned branches and 87 franchise branches, and in 2020, we plan to expand by a further 50 of our owned branches and 175 franchise branches,” he said, adding that the group expected its total revenue to reach Bt10 billion by 2022.

Boonyong said that Zen distinguishes itself as being a complete food service provider. It not only has restaurant and franchise businesses, but also the other related businesses, such as food delivery and retail food.

“In this way, we can respond to the demands of consumers at all levels and gain access to their diverse lifestyles in a comprehensive manner,” he said.

“In the past two years, the group has invested in the management system within the organisation, including increasing personnel and investing in information systems to support business expansion both domestically and internationally.

“This has led to increased administrative expenses but the result is that at present the group stands ready to expand business and can use the support base that it had prepared beforehand to fully support growth.”

Boonyong said the group is also a holding company and has shares in other companies in the restaurant and other related businesses.

Its operations comprise three categories: restaurant business, franchise, and related businesses, such as food delivery, catering, restaurant management, restaurant consultancy and retail food business. The retail food business is composed of ready-to-cook and ready-to-eat food, which takes popular products from restaurants and sells it to general consumers.

The group has 12 restaurant brands – six each as Japanese and Thai. The Japanese restaurant brands are ZEN, Masha by ZEN, Sushi Cyu Carnival Yakiniku, AKA, Testu, and On the Table Tokyo Cafe. The Thai brands are Tummour, Laoyuan, Jaew Hon, Pho, de Tummour, and Khiang by Tummour. The last offers Thai dishes popular with general consumers, such as stir-fried pork with basil. Khiang opened its first branch at a PTT petrol station in Jesada Bodin, Nonthaburi.

The group has also franchised its flagship restaurant brands, such as AKA, On the Table Tokyo Caf้, Tummour, and Pho, into potential markets abroad, especially Laos, Cambodia and Myanmar.

By the end of last year, Zen had 255 restaurant branches under its brands, in Thailand and abroad. Of these, 167 branches are Thai restaurants and 88 are Japanese. The group owns and operates 110 of these branches and the other 145 operate under franchises.

Zen has registered capital of Bt300 million, with 300 million common shares at a par value of Bt1 per share. The registered capital comprises Bt225 million in paid-up capital and the group will offer the 75 million IPO shares, or no more than 25 per cent of all issued and paid-up common shares of the company after the IPO. The funds raised will be used to expand the business of the group, including expansion and improvement of the restaurant branches, repay loans from commercial banks, and use as working capital in the business.

“When the SEC gives the final approval, the date for the IPO will be set and it is expected that the Zen will be listed on the Stock Exchange of Thailand in the first quarter of this year,” said Pongsak Phrukpaisal, managing director of Kasikorn Securities Plc, in his capacity as financial adviser

Yupaphan Ekasittikul, chief financial officer of Zen, said that for the first nine months of last year the company posted total revenue of Bt2.22 billion, an increase of 21.9 per cent from the Bt1.82 billion in the same period of the previous year.

The group earned a net profit of Bt108.7 million, up 120.9 per cent from the Bt49.2 million for the same period of the previous year. The increase was driven by the growth of the restaurant and franchise businesses.

JD Central reveals fun facts of masks and air purifiers

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JD Central reveals fun facts of masks and air purifiers

Breaking News January 23, 2019 17:51

By The Nation

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JD Central online shopping shop’s statistics have revealed that most searched products on the platform during January 7-20 during which Bangkok was blanketed with smog are “face masks” and “air purifier”, according to its statement.

The popularity of both search terms rose to 80,000 times indicating Thai citizens are more concern about their health especially residents around Bangkok Metropolitan region.

As Bangkok vanishes in smog, face masks designated to protect PM2.5 have become more popular and have been sold out in just one hour.

The best-selling face masks brands are 3M and Unicharm. While Xiaomi and Sharp represents the best-selling air purifier brands with 15-fold increase in its sales, according JD Central.

 The index for searches for these products on the JD CENTRAL platform has hit more than 80,000 times for the past two weeks. Interestingly, air pollution meter become more popular during this period as well.

JD CENTRAL suggests to avoid being in an area where concentrations of airborne pollutants exceed the standard. Staying indoors or a place with clean air and avoid doing outdoor activities are the best way to protect the respiratory tract from pollution and infection. Nevertheless, if it is necessary, it is suggested to wear N95-grade face masks to prevent or lessen negative health effects.

Scania urges Thailand to increase emission standard for heavy-duty vehicles

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Scania urges Thailand to increase emission standard for heavy-duty vehicles

Breaking News January 23, 2019 15:40

By The Nation

Scania has called for the Pollution Control Department to increase the emission standard for heavy-duty vehicles in Thailand from the current Euro 3 standard to Euro 6 as a means to fight with the ongoing air pollution in Bangkok.

In its press release, it said an increase to Euro 6 would effectively decrease the emission of PM and NOx by 90%.

“A higher emission standard requirement and the resulting reduction of air pollution would not only give the citizens of Bangkok cleaner air to breathe and improved health to enjoy, it would also improve the impression of the city in the minds of the 20 million tourists visiting every year.”

It would also show that Thailand is serious about its quest to be recognized as the automotive hub of Asia.

Other Asian countries have already recognized the urgency to improve the air quality and are increasing their emission standards rapidly.

According to the statement, India for example plans to introduce its local version of Euro 6 (BS 6) next year and so is China (China 6a).

South Korea and Singapore have already implemented Euro 6 and this has already been the standard for new vehicles in Europe since 2013.

“Now Thailand has an opportunity to take part in this proactive movement and set a short and clear timeline for the introduction of Euro 6 emission standard in the Thai transport sector.”

Of course, there is a cost to a technology shift like this. The vehicles are more expensive and the refineries need upgrading to lower the sulfur content of diesel below 10 ppm.

However, with less air pollution the private and societal health care cost can be expected to decrease.

The Nation reported that according to a study from Kasetsart University on pollution-related health costs in 2017, every microgram of PM10 beyond the safe limit cost the people of Bangkok up to Bt18.42 billion in medical expenses.

In addition to that, the worth of increasing the lifespan of the people is invaluable. The Thai government could use subsidies, scrap-page scheme, tax and other financial control means to support the shift and see this as an investment in the people’s future health. Furthermore, improved export opportunities and innovation reputation for Thailand, are also positive effects that can be expected.

“At Scania we have set our strategy to lead the shift to a sustainable transport system and we are hoping to collaborate with the Thai government and relevant industry players to drive this shift together in Thailand and thereby improve the quality of life for the citizens of this beautiful country.”

Global Power Synergy set to grow power and utilities

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Global Power Synergy set to grow power and utilities

Corporate January 23, 2019 01:00

By   THE NATION

GLOBAL POWER Synergy Corporation (GPSC)’s share price rose 1.30 per cent to close at Bt58.25 yesterday after it said it would purchase a 250-megawatt energy recovery unit from Thai Oil Plc (TOP) for no more than Bt24.11 billion.

Chawalit Tippawanich, president and chief executive for PTT’s power arm, GPSC, said that its board on Monday agreed that either the company or a yet-to-be-established subsidiary, would purchase the energy recovery unit in a deal worth no more than Bt24.11 or about $757 million.

The unit is part of TOP’s capacity expansion project, Clean Fuel Project (CFP).

The unit is expected to be completed and receive a provisional acceptance certificate to start commercial operation in the third quarter of 2023.

“The deal follows the company’s business strategy focusing on expansion of investment” to grow with its parent company, PTT. It would give an opportunity to GPSC to extend its power and utilities business and invest for future power security, Chawalit said.

Contract signing by GPSC or its subsidiary is expected after approval from a shareholders’ meeting scheduled within this April. The company will use its cash and/or other sources of funds, such as borrowings from financial institutions, to finance the deal.

The energy recovery unit will use oil sludge from the CFP to produce power and steam for the project. The unit has power production capacity of 250 megawatts and steam production capacity of 175 tonnes per hour.

The CFP is a part of TOP’s five-year $4.825 billion (Bt153.5 billion) investment plan (2019-2023) to improve the refinery, upgrade fuel oil to jet oil and diesel, and increase the refining capacity to 400,000 barrels per day. TOP’s current refining capacity is 270,000 barrels per day.

TOP is expected to finance $1.37 billion for the CFP in the first quarter of this year.

Presently, the company’s fuel oil accounts for 7 per cent of the total. In the future, jet oil and diesel will rise to 70 per cent from the current 60 per cent, while gasoline will decline from the current 15 per cent following future higher demand for electric vehicles.

GPSC currently has a combined power production capacity of 1,530 megawatts and steam production capacity of 1,512 tonnes per hour. This year, its power production capacity will rise to 1,940 megawatts after the Nam Lik power plant and Xayaburi power plant in Laos, and the Central Utility Plant 4 in Rayong province commence their operations.

GPSC also gained a conditional approval from Thailand’s Energy Regulatory Commission for its merger plan with Glow Energy Plc, which is majority-owned by France’s Engie. The approval comes with the condition that Glow will have to sell its Glow SPP 1 Co Ltd. before the merger.

Cryptomining and mobile threats top security risks

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Cryptomining and mobile threats top security risks

Corporate January 23, 2019 01:00

By   JIRAPAN BOONNOON
THE NATION

CRYPTOMINING is the top cyberthreat to organisations globally, according to Check Point, a cybersecurity software company.

The firm expects to generate double-digit revenue growth by the end of this year, as it helps companies protect their assets. Banks, financial companies and government are their main target markets in Thailand.

Check Point Software Technologies has launched the first instalment of its 2019 security report. And the Southeast Asia regional director, Evan Dumas, notes the global cybersecurity solutions firm’s report highlights the main tactics that cybercriminals are using to attack organisations and industries worldwide.

Executives also need to protect their organisation from fifth-generation cyberattacks and threats, says Dumas. An unprecedented level of cyberattacks are playing out as large-scale, multi-vector mega attacks that inflict major damage on businesses and their reputations.

But the key malware trends and techniques observed in 2019 are cryptominers or cryptomining, mobiles, multi-purpose botnets and ransomware, says Dumas.

Cryptomining, which dominated the top-four most prevalent malware types and impacted 37 per cent of organisations globally in 2018, remains the most common threat in 2019.

Meanwhile, mobiles are a moving target for cyberattacks. Around 33 per cent of organisations worldwide were hit by mobile malware, with the leading three malware types targeting Android OS, the report notes. Multi-purpose botnets were the third most common malware type, with 18 per cent of organisations hit by bots, which are used to launch distributed denial-of-service (DdoS) attacks and spread other malware.

Last is ransomware, which impacted just 4 per cent of organisations globally.

To solve cyberthreats in organisations, the firm also provides cybersecurity solutions such as Maestro, which is the first hyper-scale network security solution. It is said to enable businesses of any size to enjoy the power of a flexible cloud-level security platform to protect their customers from fifth-generation cyberattacks from malware and ransomware, along with other targeted attacks.

“I think that Thailand rates in the top two for the security market, behind Singapore. Thailand also has a high potential for growth in the mid-market for cybersecurity,” said Dumas. The firm has appointed Yuvaluk Saenque as the first Thailand country manager, and expects to generate double-digit growth in the Kingdom, mainly through targeting banks, financial institutions and government.

Taco Bell eyes wider Southeast market

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Taco Bell eyes wider Southeast market

Corporate January 23, 2019 01:00

By   KWANCHAI RUNGFAPAISARN
THE NATION

YUM! BRAND INC, a Kentucky-based global leading fast-food company, yesterday said it would refocus on expanding its Taco Bell business in Southeast Asia.

The first Taco Bell restaurant in Thailand will open at the Mercury Ville mall in Bangkok tomorrow. In partnership with Siam Taco Co Ltd, the company aims to open 40 restaurants in Thailand over the next five years.

Thailand will be the first country for the relaunch of the Mexican-inspired quick service restaurant (QSR) brand in Asean after being paused for 10 years.

Taco Bell International president Liz Williams said that Taco Bell had opened its first restaurant in Southeast Asia about 10 years ago in the Philippines.

After 10 years, the company has relaunched the brand in the region, with Thailand chosen as the first country for the expansion.

Taco Bell Corp, a subsidiary of Yum! Brands Inc, is the world’s leading Mexican-inspired QSR brand. Taco Bell serves made-to-order and customisable tacos and burritos and other specialities. The company claims it serves 42 million customers weekly across the globe. The company said currently more than 450 Taco Bell restaurants operate across 28 countries outside the United States. The company and its franchisees operate more than 7,000 restaurants in the US alone.

Taco Bell is entering into a partnership with franchisee Siam Taco Co Ltd, which is a joint venture between Thoresen Thai Agencies and experienced food and beverage operators, the Mahagitsiri family.

“Thailand is one of the most vibrant countries in the world, so we are very excited to open and continue to grow. Over the years, we have seen a lot of demand in Thailand for Taco Bell, through social media and fans asking us to open in the country,” Williams said. “We feel given the demographic, it’s a perfect market to launch Taco Bell in a big way in Southeast Asia. In our research, we found fans loved the spice levels, types of spices we use, and the flavours, so it was a perfect match for the brand,” she added.

“Asia Pacific presents the biggest opportunity for international growth. The business model is ready for expansion across our key market. For example, India is our fastest-growing market outside the US. And we have new markets in the region we’re looking to enter over the next few years,” she said.

TTA president and chief executive Chalermchai Mahagitsiri said: “Our family fell in love with Taco Bell while in the US, and vowed to bring the experience to Thailand one day. Following our recent success in the acquisition of Pizza Hut from the same franchisor, Yum! Brands Inc and the great partnership thereon, we are very confident Taco Bell will be a great success in Thailand.

GHB APPROVED TO ISSUE BT30.6 BN IN NEW BONDS

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GHB APPROVED TO ISSUE  BT30.6 BN IN NEW BONDS

Corporate January 23, 2019 01:00

By The Nation

The Cabinet yesterday approved the Government Housing Bank’s (GHB) plan to issue Bt30.6 billion in debentures with the proceeds to be used for the buy-back of its existing bonds worth Bt18.6 billion which are due for maturity later in the year, government’s spokesman Puttipong Punnakanta said.

The remaining Bt12 billion will be used as cash flow and balance the book, he said.

Meanwhile, the Cabinet also allowed the Government Pawnshop to borrow Bt500 million as business cashflow to meet the demand of low-income people.

The cabinet estimated the number of people using the service to reach 1,339,419 this year, up 38,630 from last year. The Government Pawnshop expects total revenue of Bt795.39 million with Bt357.23 million in net profit this year, he said.

Dow heads alliance for plastic waste management

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Dow heads alliance for  plastic waste management

Corporate January 23, 2019 01:00

By The Nation

Dow Chemical Co Ltd is collaborating with 30 institutes to set up Alliance to End Plastic Waste (AEPW) to raise US$1 billion (Bt 32 billion) for the management plastic wastes globally under the concept of Circular Economy, the company’s chief executive officer Jim Fitterling said yesterday.

He added that the fund will increase to $1.5 billion (Bt46.5 billion) in the next five year.