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Juha Mähönen: Baltic memories

EU supports fishing tourism

Spa and wellness trends for 2012

Outbound market: who are the Baltics?

No.4/2011

Jan Petter Eilertsen: Pan-Baltic hotel focus

2 3No.4/2011 No.4/2011Baltic Stand By Baltic Stand By

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Top stories

Gone fishingThe European Union funds a unique incom-ing tourism project in a protected part of the wild wetlands of Finland. The private investors only have to find 10 percent of the money.

10

Brand businessRezidor Hotel Group’s regional director for the Baltic countries, Jan Pet-ter Eilertsen, talks to Baltic Stand By about the integration of the former Reval hotels to fit the Radisson Blu and Park

In by Radisson brands, as well as about the hotels’ strong RevPAR growth.

12

Looking backJuha Mähönen gives an exclusive insight into nine years in the Baltics, in which he has battled against indifference and intransigence to help create some of the best accommodation experi-ences in the region.

16

Spa trends 2012Social spa-going, holidays with health gurus, age-adapt-ed spas and the importance of nutrition are all new aspects to health and wellness tour-ism in 2012, according to a new forecast.

19

travel news

Nordic visionSAS boosts its presence in Palanga and unveils more than 20 new routes for 2012, despite cost-cutting measures.

6Skype check-in

Estonian Air will soon become one of the first airlines in the world to offer check-in via Skype video call. It’s also launching new routes.

7Travel reps

The Estonian general sales agent Airline Management is rebranding to AVIAREPS Airline Management. We talk to director Leela Lilleorg about what this means.

8Rail dreams

A new European-gauge rail line linking Tallinn, Riga, Kaunas and the Polish border would cost €3.7 billion, according to a new study.

9

accommodation

Russia expansionThe world’s biggest hotel group by number of rooms, IHG, plans to have 100 hotels open throughout Russia and the CIS by 2020.

14Tourism optimism

The international travel and tourism market continues to show resilience despite ongo-ing economic crises, according to forecasts for 2012.

18

transport

Future nowHeathrow Airport has unveiled the pod, an innovative transport system with low-energy, battery-powered, driverless, zero-emission vehicles, each carrying four passengers and their luggage.

20Airbus in Vilnius

An Airbus A320 Full Flight Simulator, the first of its kind in the Baltic countries, has been launched at the Baltic Aviation Academy in Vilnius.

20

Sat NavThe first satellite to be developed in the Baltic countries, Venta-1, is ready for launch into space. It will be monitor shipping traffic and navigation in the Baltic Sea.

21Ferry capacity

Scandlines has reported sharp growth in demand to the Baltic region and has upped capacity. We speak to Karsten Reddmann, the company’s director in the Baltics.

22Air expansion

Flybe is a name that Baltic and Nordic pas-sengers will be seeing much more of in future. It is opening a range of new routes, many of them in Finland and Estonia – for now.

22

features

Facebook agentsTravel agents use social media to reach new clients; and the need for more sustainability in the travel industry – two messages that emerged from this year’s World Travel Market.

24Adventure paradise

Construction work hasn’t yet begun on “Europe’s second Disneyworld”, but it’s pos-sible to see images of what the €400 million Adventure World Warsaw will look like.

30

contents

Representative in the Baltic States: Check-in Baltic Ltd, Palasta Street 10, LV-1050, RigaWebsite: www.standbynews.info E-mail: [email protected] Phone: +37129207271 +4570259700Editor-in-Chief: Howard Jarvis, [email protected] Project Manager: Maris Jekabsons, [email protected]: Guntis Gvozdevs Printing: SILVERPRINT Publisher: Scandinavian Travel Media ApS. Contributing photos: Anatol StevenBaltic Stand By is distributed to travel agencies, tour operators, airlines, hotels, coach, bus and rail companies, and foreign tourist representatives. Distribution covers the three countries of Estonia, Latvia and Lithuania, plus key travel / tourism business decision-makers throughout Scandinavia and Europe.Baltic Stand By bears no responsibility for unsolicited editorial material. Circulation: 8 000

Travel and tourism trade magazine

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Juha Mähönen: Baltic memories

EU supports fishing tourism

Spa and wellness trends for 2012

Outbound market: who are the Baltics?

No.4/2011

Jan Petter Eilertsen: Pan-Baltic hotel focus

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travel news


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Asia Pacific flourishesThe Asia Pacific (APAC) market is thriv-ing, leading the way in many economic indicators and, correspondingly, in busi-ness travel volumes.

However, the region’s travel prices will be flatter in 2012 on a quarter-over-quarter basis, given that the region was not as affected by the economic down-turn as other parts of the world, and has already been experiencing strong growth rates throughout 2011.

CWT forecasts airline pricing in APAC to increase by 3.1-3.8% in 2012 as a dynamic mix of legacy airlines and a growing group of low-cost carriers com-pete for travellers, holding down fares in the region.

Average daily hotel rates in the region will range from a 1.9% decrease to a 2.1% increase in the first half of 2012, and a 0.9 decrease to remaining flat for the second half of the year.

APAC’s business hubs currently boast the highest occupancy rates in the world, which will present travellers with contin-ued challenges in securing available rooms.

Even so, strong supply growth across the region as a whole will keep overall ADR growth there more modest than one might expect.

Car rental rates in the Asia Pacific market will remain relatively flat, rang-ing from a decrease of 1.7 to an increase of 3.9% in 2012 in Australia and New Zealand, two of the primary rental car markets in the region.

North America uncertainIn 2012, the United States will continue to struggle with high unemployment rates and the ongoing effects of the housing crisis that originated during the economic downturn. Canada’s economy, meanwhile, has been and is expected to remain rela-tively stable.

CWT forecasts airline pricing in North America to increase by 3.5-4.1% in 2012, due to suppliers’ disciplined efforts to manage capacity even in the face of demand, ultimately resulting in fuller planes and rising prices overall.

Average daily hotel rates in the US will increase modestly in 2012, with very limited growth in Canada. As always, rates will vary widely across both countries based on geography and property type.

Overall, CWT forecasts a 2.4-3.1% increase in the first half of 2012 for the North America region, and a 2.6-3.4% increase during the second half of the year.

Car rental in North America is highly consolidated with intense com-petition for the business traveller, which forces suppliers to reduce or keep prices flat to retain corporate clients. Given this, CWT forecasts pricing to range from a 1% decrease to a 2.5% increase for 2012.

Meetings and events will continue its steady recovery throughout 2012, with a 1-4% increase in average group size for all meeting types, and a 5.5-6.5% increase in cost per attendee per day, due

to strong demand and limited supply in related travel categories.

Europe’s flatter pricingA tenuous economy throughout Europe, the Middle East, and Africa (EMEA) is resulting in much flatter overall pric-ing expectations across the main areas of travel spend for 2012 in this region versus any other.CWT forecasts airline pricing in the EMEA region to increase by 2.1-3.7% in 2012, attributing the modest increase to ongoing economic challenges.

Average daily hotel rates will increase slightly in 2012, with a 0.2-0.9% increase in the first half of the year and a 0.1-0.8% increase during the second half. Rates will vary by market depending on local demand and occu-pancy rates.

Car rental and high-speed rail are both viable ground transportation options. CWT anticipates rail pricing to increase by 3.6-4.2% in 2012, and car rental pricing to fluctuate by carrier due to a high level of competition, with the average ranging from a decrease of 1.9% to an increase of 2.9%.

For meetings and events, the report estimates that the cost per attendee per day will decrease by 5-6% as more meet-ings are held domestically rather than internationally, reducing overall costs for attendees. Average group sizes will remain flat or down by as much as 3% for the region. n

Global business travel forecast for 2012

Lufthansa’s new Senator Lounge, FrankfurtnTough negotiations are ahead for

business travel companies as the landscape increases in complexity and amid economic uncertainty. This is the main conclusion of a new report forecast-ing how the world of business travel will look next year.

Carlson Wagonlit Travel, a leader specialised in worldwide business travel and meetings and events management, has released its 2012 Travel Price Fore-cast. The report projects supplier prices for airlines, hotels, ground transpor-tation providers and meetings and events spending.

The 2012 forecast provides projec-tions for every region of the world, as well as country-level expectations for those markets to which CWT’s clients most fre-quently travel.

Analysis confirms that prices in most geographic areas and for most categories of spending are expected to rise in 2012, with the most substantial increases to occur in the booming Latin America region.

“Travel buyers in most parts of the world are facing tough negotiations as the

landscape increases in complexity,” said Nick Vournakis, vice president at CWT Solutions Group.

“At the same time, economic uncer-tainty continues in some parts of the world and has resurfaced in others, prompting increasing questions on exactly what 2012 holds in store for organisations and, by extension, for business travel.”

He continued: “CWT will keep a close eye on the evolving situation with supplier pricing, and will advise our clients accordingly on how to navigate the challenges and opportunities they’re presented with as 2011 concludes and 2012 begins.”

Vournakis added, “CWT is com-mitted to assisting clients worldwide in negotiating and managing their supplier relationships and will continue monitor-ing the many developments that impact travel, updating forecast projections as necessary to ensure that our clients have the most up-to-date informa-tion possible.”

Carlson Wagonlit Travel serves com-panies, government institutions and non-governmental organisations of all sizes in

more than 150 countries and territories. In 2010, sales volumes for wholly owned operations and joint ventures totalled US$24.3 billion.

Latin America grows rapidlyLatin America will experience some of the most substantial price increases of any region across the main areas of travel spending, although a closer look reveals disparate conditions country by country. Some local economies are clearly prosper-ing and others are suffering from political uncertainty and economic instability.

CWT forecasts airline pricing to increase by about 5.8% in 2012, with increases in Colombia topping the charts at 7.9-11.4%. This is primarily due to rapidly increasing demand and limited supply in the region.

Average daily hotel rates during the first half of 2012 are expected to increase by 9-11.8% and rise by a further 10.1-12.2% during the second half of the year.

Brazil could see increases of more than 24% in the first half of 2012 and up to a 34% increase during the second half of 2012.

"There are increasing questions on what 2012 holds in store for business travel."

6 No.4/2011 No.4/2011Baltic Stand By Baltic Stand By

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India_204_camel-ayurveda_68x285_GB.indd 1 20.10.2011 10:31:34 Uhr

nScandinavian Airlines has added three weekly non-stop flights from

the Lithuanian coastal resort of Palanga to the Norwegian capital Oslo – in addi-tion to a capacity increase on its double-daily Palanga-Copenhagen flights. SAS will also add a considerable number of other new routes in 2012.

The new Oslo-Palanga service oper-ates every Monday, Wednesday and Fri-day with a Boeing 737-600 aircraft with a capacity of 110 passengers and a flight time of 1 hour and 20 minutes.

“The new flights will be especially attractive and convenient to our Lat-vian customers residing in Liepaja and Kurzeme Region, due to Palanga Air-port’s proximity”, Marek Pedersen, the airline’s district manager for Latvia and Eastern Europe, commented.

“This new SAS service will give excellent connections to Scandinavian, Nordic, European and US destinations via the modern Gardemoen Airport in Oslo, our major hub in Norway.”

Scandinavian Airlines has also announced that it will launch its new Copenhagen-Shanghai route on 1 March 2012. The five-weekly service will offer short connection times from all over Scandinavia and European destinations such as London, Munich, Paris, Berlin, Warsaw, Vienna and the Baltic capitals to Shanghai.

From Shanghai, both of SAS’s part-ners Air China and Shanghai Airlines offer a wide range of onward destina-tions, specifically in southern China, but also across Asia.

“The demand for traffic to China is again growing significantly and we see

the need for an additional route, com-plementing our successful Copenhagen-Beijing route and other Asian routes,” Robin Kamark, Scandinavian Airlines’ chief commercial officer, said.

“This new service also offers a mul-titude of smooth transfers at both ends, making it an accessible and quick route for many European and Asian travellers.”

The Copenhagen-Shanghai route will be served by an Airbus A340-300, the biggest aircraft in the SAS fleet, offering 245 seats in a three-service class set up of Business, Economy Extra and Economy.

The A340 used on this route will be SAS' eleventh long-haul aircraft, enter-ing the fleet after having been leased to another airline for the past two years.

Departures from Copenhagen on SK997 will be on Tuesdays, Thursdays, Fridays, Saturdays and Sundays at 18.25, arriving the following day in Shanghai at 11.35. Departures from Shanghai on SK998 will be at 13.25 on Mon-days, Wednesdays, Fridays, Saturdays and Sundays.

SAS is also launching a range of other new destinations when the 2012 summer schedule comes into operation in March 2012 (see table). The airline has already launched 17 routes in 2011. Tick-ets for the new destinations are already on sale at flysas.com and at travel agents.

Cost-cuttingParadoxically, the new routes come in the face of sweeping cost reductions for the carrier. Targeting a reduction in unit costs of up to 5 percent a year until 2015, the airline is in discussions with

unions over whether it can achieve such a decrease.

SAS says it is working with the unions to ensure that salary increases and labour costs do not rise faster than inflation. In addition to direct cost-cut-ting by reducing staff wages and benefits, the airline is not ruling out redundancies.

Aviation analysts at Denmark’s Syd-bank say that they do not expect direct cost-cutting at SAS to be more than $226 million, while other cost reductions must be facilitated by efficiencies and growth.

They add that a problem for SAS is that it is “up against one of the best competitors in Europe, Norwegian, which is growing massively and earn-ing money.” n

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New SAS routes 2012New routes from Copenhagen

First flight

Copenhagen-Shanghai March 1

Copenhagen-Kaliningrad March 25

Copenhagen-Katowice March 26

Copenhagen-Malaga March 31

Copenhagen-Split May 12

Copenhagen-Dubrovnik July 4

New routes from Norway

First flight

Oslo-Antalya May 12

Oslo-Faro June 26

Stavanger-Nice June 24

Stavanger-Split June 25

Stavanger-Barcelona June 28

Stavanger-Palma June 29

Bergen-Manchester January 6

Bergen-Malaga June 23

Bergen-Split June 25

Bergen-Barcelona June 28

Bergen-Palma June 29

New routes from Stockholm

First flight

Stockholm-Barcelona March 25

Stockholm-Dubrovnik March 25

Stockholm-Malaga March 31

Stockholm-Reykjavik June 22

Stockholm-Alicante June 26

Estonian Air to launch Skype check-innEstonian Air says it will soon

become one of the first airlines in the world that will offer, in cooperation with Moscow’s Sheremetyevo Airport, check-in service via Skype video call. The new service is currently at the test-ing stage.

The Internet-based video call ser-vice will enable passengers to call from their Skype account, whether at home or in the office, to Moscow Sheremetyevo by using the airport’s “svo_checkin” Skype username.

During the video call, passengers will be asked to state their last name, flight details and display their passport. At the end of the session, they can print out their boarding pass.

Rauno Parras, Estonian Air’s com-mercial manager, said that checking in via Skype provides a more person-al touch that many airline customers will appreciate.

The service is like a traditional check-in procedure, but what differs is that you can do it at home, at work or wherever you use Skype.

“We plan to analyse how our cus-tomers receive the new service and decide whether to expand it to other airports as well,” he added.

In addition to the new video check-in and the traditional check-in, Estonian Air passengers are also using internet-based check-in kiosks. In last two years,

the number of people doing this has doubled. In 2009, only 11.5 percent of passengers were using this check-in possibility, whereas now it’s already 21 percent.

More than 37 percent of all pas-sengers travelling to Estonia now use self-service check-in. The most active check-in kiosk users are in Scandina-via, were 70 percent of all passengers are using them.

Home marketMeanwhile, Estonian Air has announced that it plans to strengthen its presence in its home market. In order to strengthen its position in the Baltics and achieve sustainable growth, the airline is re-launching routes to both Riga and Helsinki and increasing frequencies to nearby markets like Stockholm, St Petersburg and Vilnius.

The flag carrier will reopen its route between Tallinn and Riga with 17 weekly flights from 25 March 2012. The follow-ing day, it is scheduling the re-launch of its flights to Helsinki, with 18 flights a week.

Estonian Air will increase its fre-quencies on the Tallinn-Stockholm route to 30 a week from 25 March, and to 17 weekly flights on Tallinn-Vilnius. From 26 March it will increase its frequencies on Tallinn-St Petersburg to 12 weekly flights. n

SAS flies to Palanga and Shanghai

Estonian Air Boeing 737 at Tallinn Airport

"There's a multitude of smooth transfers at both ends."


travel news


nThe Estonian general sales agent Airline Management has signed an

agreement with the world’s leading avia-tion and tourism representation company, AVIAREPS. As a result of the merger, the office in Tallinn has been rebranded as AVIAREPS Airline Management.

AVIAREPS Airline Management covers all three Baltic countries by providing sales, marketing and PR ser-vices for aviation and tourism company accounts. It has been representing ten cli-ents – the airlines Etihad Airways, Air Mauritius, Air Namibia, Air Seychelles, Jet Airways and Condor, as well as Carni-val Cruise Lines and Wyndham Hotels (all of them in Estonia, Latvia and Lithuania), plus LOT Polish Airlines and Brussels Air-lines in Estonia only.

Founded in Germany in 1994 with an office network in over 35 coun-tries, AVIAREPS Group has more than 85 airlines and 90 tourism clients in its portfolio.

In addition to its core businesses – passenger GSA services and tourism mar-

keting – clients can also make use of the company’s public relations, advertising, IT solutions, financial services and air-port marketing divisions.

Michael Gaebler, chairman and chief executive of AVIAREPS, commented at the time of the merger that “Estonia and the Baltic states through their growing

economic markets have proved that a merger is a proactive way forward for the continuous and widespread provision of global services for our industry.”

He added: “With Airline Management we have found a reliable and established partner to adhere to our high quality stan-dards and service concepts.” n

Airline Management merges with AVIAREPS

nA new European-gauge rail line link-ing Tallinn, Riga, Kaunas and then

Marijampole in southern Lithuania close to the Polish border would cost €3.7 bil-lion, according to a new study.

Speaking in Helsinki at a confer-ence dedicated to the Rail Baltica proj-ect, European Commission for Transport Siim Kallas said that the study con-cluded that it would be economically and financially feasible to build a new railway linking Tallinn and Marijampole with the European standard 1435mm gauge, instead of the existing Soviet-era one.

“The analysis shows that it would require about €2.5 billion in EU co-fund-ing,” Kallas added.

He urged governments, the pri-vate sector and investment banks in the Baltic countries to cooperate more on developing the north-south trans-port corridor.

According to the preliminary study on the feasibility of Rail Baltica, made by

Aecom Ltd, there are four possible routes for the Tallinn-Warsaw line.

The shortest would be 728 kilo-metres long and go through Panevezys in Lithuania. On this line, passenger trains could travel up to 200 km/h, and it would take just over four hours for a passenger train to cover the dis-

tance and just over ten hours for a freight train.

The longest of the possible lines is 885 kilometres long, on which it would take 6.7 hours to cover the distance. The key questions, of course, remain funding and the securing of the commitment of the countries involved. n

Q&A:Leela Lilleorg, General Manager, AVIAREPS Airline Management

Leela Lilleorg, founder of Airline Management, is now the respon-sible general manager of AVIAREPS Airline Management. The former vice president commercial of Estonian Air is said to have a profound business and market acumen, successfully set up her own business in 2005.

For those who are not familiar with your work, can you describe in a couple of paragraphs what you do? How does the represen-tation process work?

In the tough economic environ-ment we’re facing all of us have to closely monitor our costs and look for additional revenue earning possibilities. And so do the airlines. Instead of establishing own physical offices and hiring their own staff, it’s more cost efficient to outsource rep-resentation services to General Sales Agencies (GSA).

In addition to cost reduction, such outsourcing usually transfers costs for the airline from fixed to variable ones. At the same time this model creates motivation for revenue growth which will also benefit the airline.

By using a GSA solution, the airline in principle buys from the agency a part of their time, office space and human resources. It’s important to note that via such a deal the GSA becomes the airline’s official representation and point of contact for travel agencies, the press and final consumers.

The task of a GSA is exactly the same as the task of an airline’s own office would be – to generate as much in the way of sales from the region onto the airline’s flights as possible.

Also the tools – sales work ori-ented to the travel industry and cor-porate companies, advertising, press actions – they’re exactly the same.

A difference comes only in the fact that a GSA represents more than one client. For example, AVIAREPS Airline Management represents eight airlines, one cruise line and one hotel chain.

So we could say that a GSA’s staff act like chameleons – when the phone rings with a specific airline number, we switch our minds to this airline and act 100 percent as this airline’s employees. The next moment we might need to switch over again.

I love this. This is first of all extremely interesting as we work with so many different parts of the world and so many different cultures. Secondly, it’s also educational as the business models and target custom-ers of all of the clients are different and require a different approach. And I love my work as I am addicted to the world of aviation and tourism.

How does your day-to-day work change now that you’re part of the AVIAREPS network?

The day-to-day work will not change a bit – the same office, same staff, same activities. Being part of a worldwide professional network will, however, help us to offer even better services to our customers. Such a positive influence will be the result of know-how and support from our head office in Germany.

At what stage in the future does this mean that rather than representing your original 10 cli-ents, you represent many more?

Client agreements are always bilat-eral and signed market-by-market. Even if Aviareps AG represents more than 85 airlines, these are served in about 35 countries all over the world based on the airlines’ requirements.

This means that additions to the client portfolio will not happen automatically. However, being part of the worldwide-strong GSA chain has put a quality stamp on our company. This will definitely be an argument that helps us grow. In the medium perspective, say in three to five years, we aim to be representing quite a few more clients.

Pan-Baltic rail to cost €3.7 billion

ICE 3 train in Germany


travel news


nFishing tourism has become a pri-ority for Finland and local entre-

preneurs are obtaining European Union funding to develop it and attract tourists from abroad.

Kvarken Fishing, for example, is an EU project and website that provides up-to-date information about fishing and tourism-related services to anyone who wants to get away from it all and knows about the excellent quality of this popular pastime on the west coast of Finland.

Based in the Kvarken archipelago, with Vaasa as the central town, the com-pany uses its website, kvarkenfishing fi, to post advice about fishing, fishing guides and suitable accommodation in the area. There is also information about both national and local fishing regulations.

People looking for a guided fishing tour for their company or for a family holiday can obtain these services from local companies that offer everything from a few hours of fishing to extended holiday packages.

Pike paradiseThrough fishing it is possible for visi-tors to fully experience the beautiful and isolated Ostrobothnian archipelago and nature close at hand. The shallow and rocky sea studded with islands provides excellent conditions for fishing.

Streams of salty seawater from the Atlantic and freshwater from the northern rivers meet here and bring both freshwa-ter fish and seawater fish. Land masses rise at a record speed of approximately 8 milimetres per year. As a result, the archipelago is under continuous change and new fishing grounds are constantly created. The ice age which shaped the area and the natural processes it started make the region especially distinctive.

The islands and water channels of the archipelago, part of which forms a UNESCO World Heritage Site, are ideal in particular for pike fishing. Pike and perch are the most plentiful fish in the area. Ostrobothnia’s varied shoreline and its many islets, islands and skerries give the best possible living conditions for pike.

There is no shortage of shoals full of nutrition for the fish in this rocky archipelago. From the inner archipelago to the shallows at the edge of the open sea, there are plenty of pike in these waters. The rivers and lakes also provide good catches.

Shallow waters and post-glacial rebound have created thousands of flads and gloe lakes, typical of areas where coastal land is rising, where pike spawn in early spring. Following pike spawn-ing is an experience. Large female pike migrate up narrow, shallow streams to

One of the most pleasant ways of getting to Scandinavia or Germany is on one of our ferries. Enjoy the fresh sea air and arrive completely relaxed. Scandlines offers three routes via the Latvian ports Ventspils and Liepaja to Germany and Sweden. Welcome on board! Telephone +371 6 77 96 900.

The easiest way toScandinavia and Germany

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the spawning areas, splashing the water with their powerful tails.

As the pike accelerate, they may miss a turn and find themselves out of water, on dry land. But after bouncing around a little, the pike rejoin their com-panions to continue the migration.

In the spawning areas you can wit-ness a spectacle – female pike, swimming quietly side by side around the shallow waters, may each be followed by three or four males. Occasionally the surface of water breaks, revealing the location of the spawning pike.

The spring sun quickly warms the shallow waters and the young fish begin their lives in an environment that offers good protection and abundant nourish-ment. Such fine places for fish to spawn and grow up can be found all around the archipelago.

After growing sufficiently, the pike begin to expand their living area. The shallow archipelago is very rocky. Sker-ries that occasionally break the surface of water, and continue below it, create a greatly varied aquatic environment.

The abundant aquatic vegetation provides many prowling places for pike. Rocky islands and small islets form excellent headlands and straits close to which the pike wait for passing shoals of fish. The water here is clean as it is continuously replaced by the current running through Kvarken.

Other fish, including large stocks or perches and roaches, also enjoy the

brackish mixture of freshwater and sea-water. As a result, a pike's well-being is increased because nutrition is never in short supply.

The optimal opportunities for reproduction in this clean and versa-tile aquatic environment, together with fishing ethics and respect for the catch, ensure an abundant supply of pike in the region.

Ice fishingMost fishing tourists choose to visit Ostrobothnia in summer. But for many, late winter is the high point of the fish-ing year. What could be better than a beautiful winter’s day for going out on the ice to try your luck at fishing? This time of year offers stable weather con-

ditions, while the sun is already warm enough to set life in motion under the ice.

When the waterways freeze, pike can be caught in shallow water. The edges of weedy areas are the best places, as pike are still foraging for winter and hit lures relatively easily.

As the winter progresses, the pike return to deeper water and bite more rarely and in midwinter they do not really move. It is absolutely necessary then to know where they lie.

Late winter will see the pike become more active. When the snow on the ice starts to thaw and lets the light through, this is the second season for the pike-jigger and it lasts exactly as long as the ice cover. nQ&A

Carina Rönn, Kvarken Fishing’s project coordinatorWill Vaasa continue to be con-

nected with the Baltics by a direct air route during the winter season?

Yes, Riga will be connected to Vaasa as far as I know. There will also be a connec-tion from Tallinn to Vaasa next year.

Are you working with agents in the Baltic region to attract fishing tourists?

No, we are not working with agents from the Baltic region, but we would welcome an agent and would like to get in contact. We recently started to develop our area and companies are now setting products that are suitable for agents. We have very good waters for pike fishing. We are a new area and fishing tourism is just about to start.

Besides fishing and accommoda-tion, are there any other services you offer?

It’s possible to go hiking, canoeing and berry and mushroom picking. Vaasa offers cultural events too, for instance a music festival, museums and also for children an amusement park.

What nationalities of tourists tend to visit the archipelago for fishing and for nature?

The area is popular among French fish-ing tourists, also from Canada, the USA

and Austria we have fishermen. These are countries where fly fishing for pike are popular and they come here for that.

The Unesco World Heritage site is visited by a lot of nationalities. We host a lot of people from Germany and the Netherlands and also from the other Nordic countries.

Fishing tourists are not that common yet, although the big industries in the region, such as Wärtsilä, ABB, Vacon and Citec, of course use the opportunities for fishing for their customers and partners, which means that we have fishermen from all over the world.

When do you recommend ice fish-ing — only in late winter?

You can go ice fishing from January to April, but the best time is March and early April when the fish move around. The fish are more difficult to catch in early winter, but you can certainly go fishing, you just have to move around more yourself s the fish stay still.

Kvarken Fishing is an EU project. What’s the budget?

Developing fishing tourism is important for Finland and a priority. Our budget is €193 261, 10 percent of which is financed privately and the rest 50-50 by the Finnish government and the EU.

Fishing tourism strengthens in Finland

"We have fishermen from all over the world."

"Our budget is €193 261, 10% of which is financed privately."


travel news


campaigns and promotional campaigns, participate in international trade fairs and organise fam-trips and press trips.

The consequences of the recession are still being felt across the region, for example with the rocky fortunes of air-Baltic. How optimistic are you for the Bal-tic countries and their tourism potential?

If 2011 can be seen as a basis for development and growth, then I’m opti-mistic. But we can’t close our eyes to what’s happening in the rest of the world, especially in Europe. Things are changing rapidly day to day and it’s hard to predict what will happen.

Here, at all of the Rezidor hotels in the Baltic countries, the booking pattern has definitely changed. Whereas meetings and events were once planned months in advance, now they’re booked much closer to the function date.

But 2011 has been positive, in Esto-nia, Latvia and Lithuania. We can see positive growth in volumes and in the average daily rate. It’s true that these have been growing from very low levels, but still the growth is positive.

Do you have any figures to show this?

Taking the Riga market first of all, for the year up to and including Sep-tember, we’ve seen volume growth of 16 percent and average daily rate growth of 11 percent, giving revenue per avail-able room (RevPAR) of 29 percent, which equals €8.

In the Tallinn market, the combina-tion of being European Capital of Culture in 2011 and adopting the euro at the start of the year has produced a very positive effect. Growth in volumes has been 18 percent and average daily rate growth is

almost 12 percent, providing for 32 per-cent RevPAR growth, which equals €9.

Lithuania has benefited from lower VAT this year and from hosting the Euro-pean Basketball Championship, although visitor numbers were not up to expecta-tions. In the Vilnius market, volumes were up 16 percent, the average daily rate rose by 16 percent, and RevPAR growth was 35 percent, or €9.

So the picture has been very good in all three Baltic capitals. The main feeder markets – the Nordic countries and Fin-land, also Russia, then Poland, Germany and Belarus – are all doing quite well and are mostly not visibly affected so far by the global slowdown this year.

Are there any further plans for expanding Rezidor’s brands in the Baltics?

The Park Inn by Radisson and Radis-son Blu brands are continuing to grow rapidly especially in Eastern Europe, Rus-sia, the Middle East and Africa. In the Baltics, there are now 13 properties in the region and there is for the time being more supply than demand. So there are not many new openings expected, but there are possibilities for independent hotels seeking international branding.

But we are always open to new proj-ects, or conversions. Our new lifestyle brand Missoni is not represented here, and that could be interesting.

You mentioned Russia. The CIS countries now appear to represent an attractive part of the world for hotel groups’ expansion, as seen with IHG’s recent announcement of 100 new proper-ties in Russia and the CIS. What are Rezi-dor’s plans for that region of the world?

We have 34 projects (7228 rooms) in the pipeline for Russia and the CIS. Our

presence in Sochi is strong, in preparation for the 2014 Winter Olympics. We were one of the very first international brands to enter the region.

It depends partly on how the region develops. We see improved performance levels, but a longer development process for emerging markets. I can’t confirm IHG’s specific plans, but international hotel companies have to have targets to work to.

Are there any recent develop-ments with your existing properties in the Baltics?

We’re working closely on some reno-vation projects, improving the products. Renovation at the Radisson Blu Hotel Lat-vija has started and 95 rooms are already finished. Another 95 are being renovated between October 2011 and January 2012, and by the start of 2013 the hotel will be complete.

The recently unveiled Park Inn by Radisson Vilnius North was a very suc-cessful renovation. It really has the feel of a Park Inn property.

That’s an interesting property, situ-ated right on the outer edge of Vilnius near the highway to Riga. What’s the market there?

It’s already proving popular with meetings. The hotel has a lot of walk-ins – the highest percentage of all our hotels in the region. Guests include corporate business partners of companies located in the area.

It gets lots of leisure groups in summer that don’t need to stay in the centre, and also guests from Russia and Belarus, and it acts as an overflow when the hotels in the centre are full in peak periods. n

Rezidor: Positive results for 2011 so far

Radisson Blu Hotel Daugava, Riga

Jan Petter Eilertsen, Regional Director, Baltics, Rezidor Hotel Group

nJan Petter Eilertsen has been regional director for the Baltics at

Rezidor Hotel Group, one of the world’s fastest growing hotel companies, for 20 months. Based in Riga, he is responsible for the operational business of all of Rezidor’s properties in Latvia, Lithuania and Estonia.

This is a new position, created in the context of a deal with the Norwe-gian company Linstow AS in which the region’s popular Reval hotels were rebranded to either Radisson Blu or Park Inn by Radisson.

It has been a year and a half since the rebranding of the former Reval hotels in the Baltic countries to Radisson Blu or Park Inn. Are they now every inch Radis-son Blu and Park Inn properties?

Yes, but there’s still work to do. We can see the positive verdict of the guests when they check in at the Radisson Blu hotels, at Park Inn by Radisson too. Such a comprehensive changeover means con-verting the reservations and IT systems and dealing with all sorts of technical and behind-the-scenes issues.

It also means retraining staff so that compliance with Rezidor service standards is met. The vision and service philosophy “Yes I Can” worn on every staff member’s uniform means that our people must have the same kind of service attitude that we aim to achieve for the brands. Now, when a guest arrives, he can instantly recognise that he is walk-ing into a Radisson Blu or Park Inn by Radisson hotel.

There is hardware and design ele-ments we have to change over time, to give the hotels a fully Radisson Blu or Park Inn by Radisson feel, but that’s mostly an investment issue.

There are now four Radisson Blu hotels in Riga, up from just one two years ago. Has it been easy for the guests – and also for the general managers – to differentiate each hotel from the others?

From a market perspective it has gone quite smoothly. Initially you’d book a taxi to or from the Radisson Blu, and they’d ask, “Which one?” So we’ve worked closely with bus and taxi drivers and with the public, informing them about the dif-ferences between the four properties.

As for the general managers and the hotels’ employees, we’ve worked together as one family. It’s certainly a challenge to be the only Radisson Blu hotel in the city, and then suddenly there are four. It takes time, of course. There are things you can’t achieve overnight.

The four hotels in Riga have a total of 1,255 rooms. Over time, how we utilise

the synergies between the four hotels and all 13 of our properties in the Baltics will become clearer. We have regular meetings where we discuss what can be done.

We organise bigger get-togethers too, for the staff, usually twice a year – in summer and Christmas and New Year – and sometimes, one of the Radisson Blu hotels uses another as a venue.

Each of the hotels is distinguishable and with unique selling points when a client looks at them on the web, and each will fit different segments.

Rezidor conducts a lot of destination marketing, where we operate often in close cooperation with other key market players to promote the destination. Among other activities, we conduct global marketing

“Meetings are now booked much closer to the func-tion date.”

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14 15No.4/2011 No.4/2011Baltic Stand By Baltic Stand Bywww.standbynews.info www.standbynews.info

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nThe world’s biggest hotel group by number of rooms says it sees Russia

and the Commonwealth of Independent States as a huge growth opportunity. InterContinental Hotels Group, which operates well-known brands such as Crowne Plaza and Holiday Inn, plans to have 100 hotels open throughout the region by 2020.

Angela Brav, chief executive officer for IHG in Europe, announced on a visit to Moscow that these new hotels would create more than 8,000 new jobs for local people, in addition to the 2,500 employ-ees already working at hotels from the IHG family of brands across Russia and the CIS.

IHG currently has just 16 hotels across Russia and the CIS, including 11 in Russia, so the additional 100 properties will mark a substantial rise in the group’s presence there.

IHG first entered Russia in 1998 when it opened the Holiday Inn Vino-gradovo in Moscow. Thirteen years later, it is expanding into regional centres and, it says, “new fast-growing cities with well-established business communities and tourist attractions such as Samara, Ekaterinburg, Chelyabinsk, Novosibirsk and others”.

The company also pledges to contin-ue to grow in Moscow and St Petersburg, as well as work with local investors to introduce managed and franchised hotels across the country, where there is a need for internationally branded hotels.

“We see a huge opportunity to grow our hotel brands, such as Crowne Plaza and Holiday Inn, in Russia,” Brav explained. “We want to help bring people from around Russia and the rest of the world to experience the country's rich cultural heritage and natural wonders, from Red Square and the Kremlin in Moscow to the stunning Lake Baikal in Siberia.”

Even though Crowne Plaza and Holiday Inn are already established in Moscow and St Petersburg, there is still a lot of room for growth according to IHG.

“In Moscow alone, there are just over 9,000 international standard rooms, which is equivalent to around ten per cent of the hotel rooms in London. So there is still a terrific opportunity for internation-al hotel operators with a presence here.”

The group is working with the Rus-sian firm Crocus Group to build Europe’s biggest Holiday Inn in Moscow, with 1,000 rooms, due to open in 2014.

IHG also plans to introduce its newest brand, Hotel Indigo, to Russia in Moscow and St Petersburg where the company sees significant potential for growth. Hotel Indigo has been designed

in an effort to cater for guests who want a boutique hotel experience without sac-rificing the reassurance and benefits of booking with a big hotel company.

“We aim to grow our presence in Russia by more than six times in the next decade,” Aron Libinson, IHG’s vice president for development in Russia and CIS, said.

“We believe the demand for all our brands will continue to grow over the next 10 years as domestic travel increases and greater numbers of businesspeople and tourists travel to Russia from overseas.”

IHG operates seven hotel brands – InterContinental Hotels & Resorts, Hotel Indigo, Crowne Plaza Hotels & Resorts, Holiday Inn Hotels and Resorts, Holi-day Inn Express, Staybridge Suites and Candlewood Suites. It franchises, leases, manages or owns, through various sub-sidiaries, a portfolio of over 4,400 hotels around the world and has more than 1,100 hotels in its development pipeline.

Hotel academyIHG has also announced that it will open a Moscow branch of the IHG Academy in February 2012 in an effort to deliver international-standard hospitality train-ing in Russia.

There will be 15-20 places on the three-year course, which will see students spending four days a week in hotels from the IHG family of brands and one day a week at the Moscow State University of Tourism.

The course will also include a three-month work experience placement where students will work in a hotel outside Russia. Once qualified, students have the chance to apply for jobs at supervi-sory level.

Around the world, through the IHG Academy, the company works with local education providers to help people gain real experience of working in a hotel and to improve their chances of finding jobs in the hotel sector. This creates local eco-nomic opportunity and a talent pipeline for hotels from the IHG family of brands.

The IHG Academy is a public-private partnership that launched recently in the UK and is now being established in the US, China and Australia as well as Russia.

Besides its 11 hotels (3,397 rooms) in Russia and five (1,123 rooms) in the CIS, IHG has eight more hotels (2,636 rooms) in the development pipeline in Russia that are due to open in the next three to four years, and two (435 rooms) in the pipeline in the CIS.

In November 2011, IHG's luxury InterContinental brand returned to Russia after a decade away, with the opening of the InterContinental Moscow Tverskaya.

This 203-room hotel has opened on Rus-sia’s most famous street.

Turning indigoThe 119-room Hotel Indigo St Petersburg Tchaikovskiy is set to open in summer 2012. Vega Ltd owns the 101-year old townhouse, previously an unbranded hotel, which will also house a restaurant and a bar.

The hotel is on Tchaikovskovo Street in the east of the city centre, 20 minutes by road from Pulkovo InternationalAir-port and five minutes from Moskovsky train station.

It’s next to the Summer Gardens and the Stieglitz Museum of Decorative and Applied Arts, ranked one of the most important museums in St Petersburg. A short walk from the Hermitage Museum, the Russian Museum and the Winter Palace and with easy access to famous Nevsky Prospect, the hotel is in an ideal location for guests wanting to take advan-tage of the city’s heritage.

Because each Hotel Indigo is unique, this makes it ideally suited to conversion properties. Conversions are attractive to developers because they require less financing than new builds and can be up and running in a shorter period of time.

The Hotel Indigo rollout across Europe is gathering pace. It began in January 2009 with the opening of the Hotel Indigo London Paddington. There are now four properties with the brand open in Europe and nine more in the pipe-line, due to open in the next few years.

But as many as 38 Hotel Indigo prop-erties are already open around the world with 60 further hotels in the development pipeline. The Hotel Indigo Berlin Centre Hardenbergstraße, the first Hotel Indigo property in continental Europe, opens early in 2012. n

Dance club at the Holiday Inn Chelyabinsk Riverside

Holiday Inn Moscow Sokolniki

Russia is “huge” expansion opportunity

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“In Moscow, there are just 9,000 inter-national stan-dard rooms."


nJuha Mähönen is a well-known per-sonality in the hospitality and travel

industries right across the Baltic region. Often seen faithfully representing his company at meetings and events, both business and social, he has an outgo-

ing demeanour and honest opinions that always leave a positive impression on those who meet him.

Now he’s the leaving the Bal-tic countries after nine years working here. After almost a decade in positions

Radisson Blu GM looks back on Baltics

accommodation

Juha Mähönen

Hotel Haikko Manor & Spa

that have included, most recently, gen-eral manager of the Radisson Blu Hotel Olümpia in Tallinn and regional director for Estonia and St Petersburg for Rezi-dor Hotel Group, and before that Reval Hotels’ country manager for Estonia and for Lithuania and general manager of the Reval Hotel Lietuva, Juha Mähönen starts a new stage in his professional life from December.

Vuoristo Corporation, a well-known Finnish hotel and restaurant company running the award-winning Hotel Haikko Manor & Spa (haikko.fi) has for the first time in its 60-plus year history chosen a managing director who is from outside the Vuoristo family.

Veikko Vuoristo, the current head of the company, becomes chairman of the board while Juha Mähönen has been appointed as the new managing director from 1 March 2012. The three months before then is to prepare for the position.

A Finnish national with a long career in the hotel industry in Finland as well as abroad also working for Inter-Continental, SAS International Hotels, Penta and Scandic, Juha sees this move as a return home.

He retains his position as councillor and national delegate for the Nordic & Baltic countries and Russia in the Euro-pean Hotel Managers Association.

The Hotel Haikko Manor & Spa certainly seems like the ideal place to work, with a conference centre, villa and 14-hectare seaside park besides the hotel and spa. Finland’s first manor-house hotel and the one with the biggest number of national hospitality awards, it was con-verted into a hotel in 1966, but the first known reference to the manor dates back to the year 1362.

In 1917, after the outbreak of the Russian Revolution, Grand Duke Kiril Vladimirovits escaped to Finland and settled down at Haikko where a son was born to the family. He was given the name Vladimir and christened at Haikko. He became the head of the Romanov family, spread all over the world.

There are 199 rooms in the Spa Hotel, which was built in 1974, and 27 rooms and three suites in the manor house. The Conference Centre, which has a total capacity of 400 people, opened in 1983 and was extended in 1989.

A Japanese-style Yorokobi pool area was opened in 1999 to provide exclusive spa services. Villa Haikko, a beautiful house by the sea for banquets and meet-ings for up to 230 people, was built four years ago.

The historic Manor House has two spacious, elegant dining halls and several charming smaller rooms. The relaxed atmosphere in the Manor Club and the Spa Café is well suited for more casual events.

The company is preparing to expand next spring to the nearby town of Por-voo, where it will cater at the so-called Taidetehdas, or “Art Factory”, a cultural centre with congress and banqueting facilities for up to a thousand people. This seems destined to become one of the most sought-after places for large meetings and events in southern Finland. n

manager opened the hotel in a rather hos-tile market. But, based on good product, location and the determined management of Vilija Radzvilaviciene the property now, re-branded as the Park Inn Kaunas, scores the highest ranks in customer satisfaction.

In Tallinn, the Olümpia 30-year anni-versary festivities were something special. Also, working through a very successful and trouble-free conversion from Reval to Radisson, thanks to the dedication of the management team and the staff, was an achievement.

For people asking “what did eventually change?” I tell them that we passed a master conversion plan with close to 900 different activities.

These are proud moments. But what are your fondest memories of the last nine years?

There are so many of them. That’s why I am writing a book about my Baltic experi-ence. Hopefully I’ll get it published one day.

The year 2003 stays in my mind as some-thing special. I opened the hotel Lietuva, my daughter was born and at the end of year I finally finished my Executive MBA.

Were there any times that were especially challenging for you, any difficulties that were particularly hard and tiring to battle against?

Challenges are part of the business, especially when opening a new hotel. I have nothing against fair competition, but it frustrates me to see that not everyone is playing by the rules.

The grey economy and corruption make me mad. Lack of transparency and parties that manipulate the market are the sign of an unhealthy business environment.

When moving to Tallinn in January 2010 the situation in the hotel market, and especially at the hotel Olümpia, was very difficult. Unfortunately I had to take some quite drastic measures – streamline the organization, change managers and staff, close outlets – to rectify the situation. I am not particularly proud of that but it warms my mind that business and results have improved greatly ever since.

You have a perspective on the Baltic hotel and incoming tourism market as both an insider and, com-ing from Finland, and with experience of markets outside the region. If we can speak collectively about Estonia, Latvia and Lithuania, what do you think are their strong points and the weak points as they continue to market themselves as a destination in competition with so many other attractive places?

For the past nine years I have been fol-lowing with amazement how poorly the national tourism authorities in three Baltic countries have been doing their job. Yes, I know there has been lack of funds, but also lack of competence.

Can you believe that in 2003 Lithuania was planning to promote itself in Finland as “the country of 1000 lakes”? Well, Finland has some 60,000 lakes and the Finns will never travel to Lithuania because of the lake lands and rural tourism; they’ll go there because of the medieval cities, the culture, etc.

Tallinn, with its proximity to Helsinki, has of course become a regular visiting place for many Finns and its success as European Capital of Culture in 2011 will market the destination also in the future.

Riga is the airline hub – despite all the controversy surrounding airBaltic – and has done a lot of good for Latvia as tourist destination. Riga is kind of a “Paris of the Baltics”, a bit of a sin city, whereas Vilnius would be the “Rome of the Baltics”.

Still I believe that the three Baltic coun-tries should try to sell themselves under a joint Baltic countries brand when compet-ing against, for example Nice, Barcelona or southern Turkey.

The longer I have lived in the Baltics the more I understand how different these countries and their capitals are. Yes, each capital has its own strengths – and weaknesses – but they are all unique destinations.

The Hotel Haikko Manor & Spa looks like a fantastic place to stay. What are its main selling points?

Q&A:Juha Mähönen

What are your reasons for mov-ing away from the Baltics and away from Rezidor?

This is entirely for family reasons – I have been a “weekend dad” for the past two years, and realizing that my two eight-year-old kids need me right now helped the decision.

You’ve had a number of prominent positions in Reval Hotels and then Rezidor Hotel Group over the last nine years. What are your proudest achievements from this period?

There were quite a few proud moments. Starting everything from the scratch in Vilnius in September 2002 was the ultimate challenge, but opening the doors in time and hosting over a thou-sand people in the grand opening party in June 2003 was an emotional moment.

Our owners, the Wilhelmsen family from Oslo, were there as well. Eventually the Reval Hotel Lietuva came out as a product much better than anticipated. Everyone was saying it was too large and impersonal, or on the wrong side of the River Neris, but very soon, with the fast development of the new busi-ness district around it, it became clear that the hotel was on the right bank of the river.

After HM Queen Elisabeth II stayed in the hotel – yet another memorable moment to meet her – everyone real-ized that if it was good enough for the Queen it was good for anyone else as well, so we hosted many more heads of state and celebrities. This success has continued; my successor Kestutis Kazlauskas with his team has done a ter-rific job there.

It was an adventure to take over the Baltpark hotels in Lithuania, transforming two rather mediocre highway inns into efficient mid-market hotels. As always in the hotel business, it was the sincere smiling care and service that made the difference – as in Klaipeda, where the commitment of Robertas Lukosius and his team has been fantastic.

Also, I should mention the painful birth of the Reval Hotel Neris in Kaunas where Audrius Ruksenas as general

to page 18

"There has been a lack of funds, but also a lack of competence."


nGoing against the general economic trends and despite numerous local

crises around the world, the international travel industry continues to grow.

In 2011, travel and tourism are now back in shape and will post record figures for this year. Next year too, according to leading economic researchers survey-ing the travel sector, despite the ongoing debt crisis the signs in the global tourism industry point to growth.

In his closing speech at the 19th World Travel Monitor Forum in Pisa, Rolf Freitag, CEO of the consultancy IPK International World Travel Monitor Company, emphasised these points.

“Providing that over the coming weeks no serious political mistakes are made which might unsettle the public, in 2012 we can expect the international travel industry to grow in the order of

two to three percent around the world, in Europe as well.”

In his view, Germany will be among the market winners in the bid to attract tourists from around the world.

“In terms of value for money and the diversity it has to offer, Germany is outstanding, and the higher-class tour-ists which it attracts are largely unaf-fected by crises,” he said.

In 2012, Asia and the emerging markets will again be driving the glob-al travel industry forward. By contrast, according to the IPK International’s forecasts, it will take some time before the Arab countries regain their visitors’ confidence.

“As a result of the Arab Spring, Mediterranean countries such as Greece, Portugal, Spain and Italy – that is, even those countries currently buffeted by

the European debt crisis – are currently benefiting from a mood of uncertainty among tourists,” Freitag said.

“The political upheavals and changes affecting society through-out the Arab world are playing into the hands of European countries on the Mediterranean.”

According to the IPK International chief executive, Greece must take care not to squander the good reputation it enjoys as an attractive holiday destination.

“Footage of violent demonstra-tions and striking airport employees is not conducive to improving a tourism destination’s image,” he said.

In such difficult times, Greece will only be able to compete as a tourism des-tination with other countries by lowering its prices. However, due to cost struc-tures and new taxes, that is something

Travel and tourism trends in 2012

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Top wellness travel trends for 2012

the country’s tourism industry will have difficulty achieving.

According to IPK International, the volume of travel abroad in 2011 has increased year-on-year by five percent, with domestic trips worldwide rising by 2.5 percent.

ITB involvedLaunched by the IPK International con-sultancy and sponsored by ITB Berlin, every year at the World Travel Monitor Forum in Pisa 50 tourism experts and scientists from around the world present

nHealth and Fitness Travel, a leading active and wellness holiday travel

agency based in the UK, has uncovered its top wellness travel trends for 2012.

The specialist agency provides tai-lor-made active and wellness holidays worldwide. Holidays offer active holidays for customers to learn a new activity, such as kite-surfing, mountaineering, diving, tennis or kickboxing, or simply relax in a spa, meditate or participate in a yoga class.

The experts at Health and Fitness Travel say they are constantly research-ing and forecasting what are going to be the next big trends in this niche travel sector, making sure their clients always know the latest and most up-to-date information. Here are their latest pre-dictions for 2012.

Spa and cultureMore spas around the world now enable you to dip your toes in another country’s culture and experience your destination on a holistic level.

Combining a healthy getaway with culture is a way to experience spa thera-pies that are indigenous to the country you are visiting. More innovative spas have created treatments based on their local culture and customs.

Soul bootcampFor a holistic approach to fitness, there is a new wave of active and wellness retreats that help you wind down and tone up at the same time, with a little bit of luxury. More holidays offer a gentler approach in how to exercise with dedi-cated tailor-made wellness programs and much needed time for relaxation.

Age-adapted spasHealth and Fitness Travel expects more generation spas to appear in 2012, adapted to the needs of specific age

current statistics and the latest trends in international tourism.

Dr Martin Buck, vice president of the Competence Centre for Travel and Logistics at Messe Berlin, added to Fre-itag’s comments.

“It is impressive to note how resil-ient the global travel industry has been, faced with all kinds of crisis scenarios,” he said.

“The public is clearly prepared to cut back on travel spending and adapt. However, in Germany, as in many other countries as well, it seems that less and

groups. Age-adapted spas targeting younger groups will be focusing on the preventative aspect of healthy ageing, whereas 55+ spas will be incorporating rehabilitation treatments and looking at how to prevent age-related diseases such as osteoporosis.

Holidays with gurusTop health and fitness experts now work at some of the leading resorts around the world. More people want to receive dedi-cated support and guidance from the best in the industry.

Wellness retreats are bringing in the top yoga teachers, nutritionists, doc-tors, personal trainers and more health gurus to raise their game. Clients want to be inspired and informed so that they can lead a healthier and more fulfilling lifestyle when they return home.

Nutrition foundationSpas will start to focus more on nutrition with follow-up consultations in order for clients to make healthy changes to their lifestyle. It is imperative that more spas stress the importance of nutrition as we cannot expect to see proper results

less people are willing to forfeit their travel plans altogether.”

The full details of the studies will be available in the ITB World Travel Trends Report, which is due for release in December and can be found at itb-berlin.com. The report is based on the assessments of 50 tourism experts from 30 countries. The findings reflect trends that have emerged during the first eight months of 2011. Rolf Freitag will present the findings for the entire year, as well as current forecasts for 2012 at the ITB Berlin Convention in March 2012. n

from spa treatments without the spa-goer making the necessary adjustments to their diet.

The body needs to be looked after as a whole, with nutrition being the most powerful way of working on the body, skin and mind.

Health consultationsWellness retreats are introducing com-prehensive health and fitness consulta-tions to analyse clients’ needs in order to create a lifetime goal-driven tailor-made program.

This could range from losing weight to comprehensive post-recovery from an injury to building strength or flexibility.

Social spa-ing2012 will continue to see a rise in com-munity spas, where socialising is a major aspect. The spas will be designed in ways that allow spa-goers to socialise and receive treatments at the same time.

The growing trend for ham-mam rituals and treatments is a great illustration of this, building on the traditions of communal bathing and cleansing. n

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In Finnish we say the 3 K’s: “kartano, konferenssi, kylpylä”, meaning the manor, the conference and the spa.

The old manor house is absolutely unique. It was the first manor-house hotel in Finland, converted into a hotel in 1966, and has won the most awards. But the first historical reference to the manor dates back as far as 1362.

It’s also known as the birthplace of one of the Romanovs. After the outbreak of the Russian Revolution in 1917, Grand Duke Kiril Vladimirovits escaped to Finland and lived at Haikko, where a son was born to the family. The boy, Vladimir, was chris-tened at Haikko, and he became the head of the Romanov family.

The conference centre has helped Haikko win the Best Conference Hotel in Finland award 10 times. It’s the unique location, facilities and service that make Haikko such a success.

You’ll be the first managing direc-tor of this exclusive hotel in more than 60 years to come from outside the family that owns it. Why has the family decided at this point to hire from outside?

They wanted to get international knowl-edge from outside and ensure that the high-level service standards would even be improved on in the future, while the next generation of the family wanted to focus on other things. My arrival is probably a

bigger culture shock for the family and for the staff than for me (Juha smiles).

In an era that seems to be filled with an increasing number of interna-tional chains, why did you choose to move to a hotel that is independent?

Yes, consolidation is a phenomenon of our time. Big ones become bigger in all areas of business. The success of Rezidor, the mother company of the Radisson Blu brand, is a great example. When I worked for SAS International Hotels, as it was called back in the early 1990s, the com-pany was about the size of Reval Hotels. Clear vision, a business idea and manage-ment determination has made it as one of the world’s fastest growing hotel chains. You can only admire that achievement!

My move back to Finland was strongly motivated by pulling my family back together, but professionally I want to be the true decision-maker. I want to use my experience, create my own opinion and make decisions accordingly.

In some large hotel chains the strict orders come from the top and the general manager becomes a kind of order-taker and facility manager – you just do what you’re told to. In this bureaucracy the cus-tomer might be forgotten... and for me the customer comes always first; he’s the king.

As a privately owned place, Haikko might be a bit smaller pond, but there I’ll be the big fish.

from page17


nAn Airbus A320 Full Flight Simu-lator has been launched inside the

aviation centre premises of the Baltic Aviation Academy in Vilnius. It is the first full-flight simulator of this type in the Baltic countries.

Before its instalment at the acad-emy’s headquarters, practical A320-type training had to be executed in South-ampton in the UK.

The launch ceremony, held on September 16, was attended by over 100 representatives from airlines, embassies government institutions and journalists from across Europe, Japan, India, Russia and the countries of the CIS.

“The decision to relocate Airbus A320 to Vilnius is focused on leverag-ing the demand of the Central, Eastern European and Russian aviation markets,” Egle Vaitkeviciute, the Baltic Aviation Academy’s chief executive, said.

“Pilots from neighbouring countries will be able to execute their training in a very close geographical location in Vil-nius. Due to the current deficit of pilots in Russia and the fleet expansion of only western aircraft types, the relocation will increase the academy’s operated A320 training hours by 25 percent a year.”

The Baltic Aviation Academy oper-ates the 17 Full Flight Simulator network and this is its second full-flight simula-tor at its headquarters in Vilnius, after a Boeing 737 full-flight simulator was installed in 2008.

The instalment was carried out in partnership with the company Canadian Aviation Electronics, which accounts for

around 75 percent of simulator manu-facturing and around 50 percent of the aviation training market.

The Canadian company has become the provider of choice for additional requirements for the academy’s full-flight simulator as well as for training services for selected aircraft types.

The Baltic Aviation Academy’s says that the Airbus A320 simulator is the result of the academy’s planned growth for 2011. During the first half of the year, its num-bers doubled as more than 1,500 aviation specialists studied there spending 7,000 hours in its full-flight simulator network.

Despite the economic downturn, the academy says it has managed to stay focused on its 2009-2014 plans for investment in infrastructure develop-ment and new training programs.

The Airbus A320 is, of course, one of the best-selling commercial airliners in aviation history, best known as the first aircraft type to introduce a “fly-by-wire” flight control system. To meet the A320 family’s growing worldwide demand, Airbus is due to increase its output rate to 42 aircraft per month in the fourth quarter of 2012, compared to 36 per month at the moment. n

Aviation academy launches A320 simulator

transport

First Baltic satellite close to launchnThe first satellite to be developed

in the Baltic countries, named Venta-1, has been constructed and is currently being tested in Latvia. It is due for launch into space by the end of this year.

Negotiations are now underway with companies in the U S, India and Russia to launch the satellite into orbit, according to Indulis Kalnins of the Uni-versity of Applied Sciences Bremen, one of the experts involved in building it.

Venta-1 is a new, light type of sat-ellite, weighing just 7.5 kilos. It will be used to monitor ship traffic and naviga-tion in the Baltic Sea, receiving ships’ identification signals and transmitting them to navigation services on the ground. Equipped with a camera and laser reflector, it will also be able to send short text messages to ships.

Since Latvia has never built a satel-lite before, Venta-1 is being developed largely as an educational project, imple-mented by Ventspils High Technology Park, Ventspils University College and the University of Applied Sciences Bre-men, with a little help from specialists from the University of Latvia and Riga Technical University.

With Bremen taking a leading role in the technical work together with the German aerospace technology company OHB Systems, Latvia’s main contribution is 10 to 12 specialists and students to acquire the necessary skills. The proj-ect’s total expenses are comparatively low, unlike much bigger satellites that require many millions of euros. n

Heathrow pods take passengers to future

improving passenger facilities at Heath-row, while reducing the overall environ-mental impact of the airport’s operations.

Fraser Brown, managing director of Ultra, said that he was “very excit-ed” about the benefits that the Heath-

When waiting for a passenger, the pods recharge themselves at battery points, so they are always ready to go.

Carbon cuttersThe Heathrow pods, which can travel at up to 40 kilometres per hour, are expected to eliminate around 50,000 bus journeys that currently take place on the roads around Heathrow each year.

The journey time to and from the terminal is congestion-free and around ten minutes less for the average passenger compared to the original buses. The service runs 22 hours every weekday, 21 hours on Saturdays and 20 hours on Sundays.

More than 100,000 passengers have already used the pods since a preliminary service started in April. The pod system has taken six years to develop, at a cost of €35 million.

This is in addition to the airport’s existing €5.6 billion investment into

Weight 5 kg

Dimensions 40cm x 40cm x 5cm

Power of solar battery 10W

Data transmission rate 80MB in 24 hours

Planned launch 2011

Orbital altitude approximately 600 km

Planned duration of flight 12-24 months

Expenses of elaboration LVL 350 000 (€500 000)

Satellite stats

row pod can offer to passengers. “Its service is predictable, reduces waiting time and offers reduced journey times,” he added. “It’s also an environmentally sustainable form of transport that ensures reduced emissions.”

John Holland-Kaye, Heathrow Air-port’s commercial director, said: “We love watching people’s reactions when they see the pods for the first time and then again when they step off five minutes later at their destination.”

He continued: “The Heathrow pods offer a personal, comfortable and reliable ride that is free of emissions. That’s why our excitement for this pioneering British technology is being shared by town plan-ners, architects, other airports, business parks, campuses, retail and residential destinations from the US, Europe, India, Mexico and the UK, who believe that this system could revolutionise transport in urban environments.” n

nHeathrow Airport has unveiled the Heathrow pod, the London hub’s

most innovative transport system and, the airport says, the first new example of transit technology in 100 years.

The unique pod system, which started life as a university project in the city of Bristol, consists of 21 low-energy, battery-powered, driverless, zero-emis-sion vehicles capable of carrying four

passengers and their luggage along a 3.8-kilometre guided road.

The pods, developed by the UK company Ultra and the British Airport Authority, now carry the 500,000 pas-sengers who travel between the Heath-row Terminal 5 Business Car Park and the main terminal each year, giving them a smooth and virtually silent five-minute ride.

The journey takes place on demand and is non-stop from start to destination at the touch of a computer screen.

Each temperature-controlled pod allows passengers to choose their own direct destination. There are no time-tables – and no waiting – because a cen-tral computer ensures that the pods are distributed at each station according to passenger demand.

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Latvia in winter, showing ice-free for ferry traffic


nScandlines has reported sharp growth in transport demand to the

Baltic region over the last two years. To cope with this resurgence in demand, the shipping company has deployed another new ship.

The chartered RO/PAX ferry M/V Watling Street will sail the Trave-munde-Liepaja-Ventspils line together

with the M/V Urd, offering four depar-tures a week. The sister ship to M/V Scottish Viking, which now sails the Nynashamn-Ventspils line, M/V Watling Street replaces M/V Ask, which previ-ously served the route between Germany and Latvia.

The new ship, which was built in 2008 at the Visentini shipyard in Italy,

has double the passenger capacity and around 30 percent more freight capacity. It is 186 metres long, has space for 195 cars and 489 passengers and can reach a speed of 24 knots. Passengers can choose from a total of 109 cabins in different classes. The vessel also offers comfort-able and modern onboard facilities with a restaurant, bar and shop. n

One of Flybe's new Embraer E175s

New ferries with “improved services”

transport

Flybe boosts Baltic and Nordic presence

for the Flybe brand and moves us one step closer to creating more Flying Finns and to becoming the preferred regional airline for the Nordic and Baltic region.”

Juha-Pekka Pystynen, CEO of Finavia and airport director of Helsinki

four more Finnish domestic routes – Hel-sinki-Enontekio, Turku-Kittila, Tampere-Kuusamo and Seinajoki-Kittila. All of these seasonal routes had previously been operated by Finncomm.

“The Flybe experience is one that offers quality, friendly service at afford-able prices. We hope that the passengers’ first flight will become the first of many as they realise the benefits of convenient, point to point travel and become valued frequent fliers,” Mike Rutter, managing director of Flybe Europe, commented.

“We have all been working hard to ensure that everything is ready for our first passengers. We also recognise that we have had to make some tough decisions to ensure that we can give as many passengers as possible access to the services they need.

“We assure our customers that we remain committed to providing schedules that are both economically and environmentally sustainable. This marks yet another important milestone

Airport, added: “Flybe not only provides important regional services from Helsin-ki to other airports in Finland but also strengthens Helsinki Airport’s position as a popular transfer hub between Europe and Asia.” n

nThe rapidly growing airline Flybe has opened two new routes from Tallinn

and a Tartu-Helsinki route. The recently created Finnish-UK carrier is aiming for a much stronger presence in the Baltic and Nordic countries.

This winter season it is operating two new routes from Tallinn, to Tampere twice daily and to Stockholm Bromma three times daily, as well as a new daily Tartu-Helsinki route, all as part of what it calls an extensive new regional schedule.

It is also possible to fly Flybe from Tallinn to Turku twice daily and to both Oulu and Vaasa daily except Saturdays – all launched in mid-November.

Flybe officially took over Finncomm – abbreviated from Finnish Commuter Airlines – this autumn with the assistance of Finnair and has rapidly expanded its services from the Finnish and Estonian capitals. The name Finncomm now ceases to exist as the flights become operated under the Flybe name.

Flybe and Finnair bought 60 percent and 40 percent of the company, respec-tively, earlier in the year together with its fleet of 16 planes.

With the beginning of the winter season, Flybe has launched five new routes from Helsinki – to Jyvaskyla and Mariehamn in Finland, Umea in Sweden and Trondheim in Norway as well as the Estonia routes.

In mid-December, it will add Tam-pere-Kittila and, in mid-February 2012,

Flyb

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Q&A:Karsten Reddmann, Director, Baltics, Scandlines

Are we right in saying that Scandlines currently operates three lines to and from the Baltic countries: Nynashamn-Ventspils, Travemunde-Ventspils, Travemunde-Liepaja?

That is correct.

What are the specific characteristics of these lines and the vessels that operate on them, compared to Scandlines’ other lines?

The main characteristics of these routes is their focus on specific corridors. Nynashamn-Ventspils is obviously targeted towards traffic between Scandinavia and the Baltic countries. And from Travemunde we can offer two routes servicing ports with excellent hinterland connections to the Baltic states and Russia.

So wherever you want to go you will always be able to choose from excellent options. Both Ventspils and Liepaja have ports free of ice, which is very important for the reliability of our service.

The vessels we operate on these routes have a stronger focus on freight compared to our ferries on Rodby-Puttgarden and Gedser-Rostock. But the new ferries we have introduced in 2011 – M/V Scottish Viking and M/V Watling Street – have significantly increased our passenger capacities and improved onboard services for travellers to the Baltic states.

What trends are you seeing generally in Baltic Sea passenger traffic in 2011 and into 2012?

Traffic to the Baltic countries is growing con-stantly and accordingly services are improved. We are expecting this trend to continue in 2012. While the focus earlier has been predominantly on freight, passengers are becoming a more and more important factor for the business.

Most operators on Baltic routes have introduced larger and more modern tonnage. This is also due to the fact that travellers have high expectations for the level of service onboard. Scandlines meets both demands for capacity and service quality with the new vessels we have brought to our Baltic routes.

What are the capacity changes that Scandlines has implemented on its Baltic routes in 2011?

M/V Scottish Viking and M/V Watling Street have increased freight capacities by 30 percent and passenger capacities by more than 50 percent on their respective routes.

Can you provide passenger figures for 2011 so far?

The response from passengers has been positive, but at this point in time I can’t yet comment on current figures.

Will there be any further changes in 2012?For the time being the introduction of two

new, larger vessels on our Baltic routes should be sufficient to cover the demands of our customers in 2012.

Is it correct that Ventspils has been the Baltic port you’ve operated to for the longest period? Do you have any passenger or freight statistics carried to and from Ventspils since the line started? What is it about Ventspils in particular that makes it so popular?

We have serviced both Ventspils and Liepaja for a long period of time now and the routes have been growing steadily. I cannot, however, comment on absolute figures for the number of passengers and freight units.

Ventspils has two main advantages. The port is free of ice even in wintertime, and there is a huge hinterland covering the northern part of the Baltic states as well as parts of Russia.

Why did Scandlines cancel its route from Klaipeda? Will it return?

Freight is still our core business on our Baltic routes. And it’s just a fact that Ventspils and Liepaja are better positioned with regards to hin-terland connections and transit traffic. We sail from and to where the market wants us to be.

Actually, our Servicecenter that provides infor-mation about our Baltic routes to passengers is located in Klaipeda. Will Klaipeda become part of the route-network again? That is not on our agen-da, but who knows what the future brings.

Q&A


nTravel agents are increasingly turn-ing to social networks to market

to new clients, according to research released at the World Travel Market in London in November. Social media is now the third most popular marketing tactic to reach new customers, after email and agents’ own websites.

nOne in four senior travel execu-tives from around the globe claim

that their government is not doing enough to help tourism, reveals the World Travel Market 2011 Industry Report.

The World Travel Market polled more than a thousand buyers and exhibitors at this year’s event about a number of issues affecting the tour-ism industry. The report offers a global perspective from industry leaders.

Travel and tourism is one of the largest industries in the world, sup-

The trends were revealed during a seminar on the travel industry in the US, but they are clear for Europe too.

Arnie Weissmann, editor-in-chief of Travel Weekly, presented the findings, detailed in the Travel Industry Survey 2011. He said that social media tech-niques in marketing are pushing down

porting more than 258 million jobs worldwide and generating some 9.1% in global gross domestic product, according to the World Travel &Tour-ism Council.

Despite tourism’s importance to the global economy, more than half the respondents (55%) said their gov-ernment only supported tourism “to a limited extent”. However, the balance is polarised between the 22% who said their government was greatly behind tourism and 24% who said there was no support at all.

marketing by email, which has declined from being used by 85% last year to 73% this year.

“Social media is now being used by 39% of agents and that really picks up among home agents. It is not only really efficient and inexpensive in terms of reaching into large communities but, as a home agent, it is really something you would have time to do and could focus on.”

Weissmann also touched on recent consumer travel trends to reveal that “family and friends” are still more impor-tant than every other source people rely on when it comes to finding out about a holiday.

According to a survey from the YPartnership, 52% of consumers in the US consult family in the initial idea stages of a trip.

The figure jumps to 54% when it comes to the advice and insight phase followed by travel guidebooks at 44% and travel experts at 38%. The internet is also gaining in influence as a source with 38% using search engines and 37% consulting destination websites.

However, in the third stage, pric-ing and comparing, the web becomes the most prominent resource for 56% of consumers consulting online travel agency giants such as Expedia and Travelocity. n

Nearly two hundred ministers and aides attended this year’s WTM Sum-mit, the fifth time it has been held.

The World Travel Market 2011 Industry Report also found that many senior travel bosses were concerned about government-imposed levels of taxation, while its poll of British holidaymakers found that taxes are having a profound impact on holiday choices. Over the past year, many city authorities have added local tourism taxes on top of government charges, increasing costs for domestic and international visitors alike. n

Travel agents use social media to reach new clients

Travel execs blame poor government leadership

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Gay travel market worth $165 billion in 2012

nThe travel industry needs to become more forward thinking if it is to

survive the tests thrown at it in the future, delegates at the World Travel Market heard.

That was the message of Leo Hick-man, journalist and author of “The Final Call”, a book that examines the travel trade’s attitudes to responsible tourism and sustainability. Hickman was in the “hotseat” during the World Responsible Tourism Day at this year’s World Trav-el Market.

With the travel industry predicted to explode in numbers as the Chinese and Indian markets emerge, he said that the industry must be better prepared to cope with such huge numbers and pro-tect destinations.

He said: “I can't emphasise enough how little evidence there is about what people are doing for the future. To me that is indicative of an industry that totally lives in the present. It doesn't look to the future.

“It’s incredibly short-term thinking, to totally believe everything is going to be fine. They [travel companies] all have their responsibilities. If you are going to

nNew research released at the World Travel Market 2011 by the world-

wide marketing specialist Out Now Con-sulting reveals that the global market potential of the lesbian, gay, bisexual and transgender (LGBT) market is set to reach almost USD$165 billion in total spending on leisure travel in 2012.

The findings are based on the LGBT2020 research program, which is the world’s biggest ongoing LGBT market research program. They show that despite a current challenging global economic environment, the LGBT leisure tourism sector globally is still growing.

Data collected in the sample include information on emerging Latin American countries such as Brazil and also includes relevant market research from India for the first time.

sustain that growth there are going to be some big decisions needed to be made.

“If the industry is to preserve itself it has to protect the people and the natural habitats in the destinations. The industry needs to be more honest with itself. There are some very potent examples of bad practice.”

Nor does Hickman believe that many of the sustainable travel and responsible tourism schemes set up by the industry are as effective as are claimed.

“Of all the industries that I've studied, tourism is the guiltiest of green wash,” he added.

He also said that journalists have a role to play in asking more difficult questions of the travel industry to ensure it is doing everything it can to protect the very product it sells.

However, Hickman admitted this will be difficult in practice due to the expense in sending reporters on trips, which means they are mostly paid for by the travel industry and which compro-mises the journalist's objectivity.

“If you pick up any of the travel supplements, newspapers or travel maga-zines it is simply advertorial,” Hickman

As well as compiling information on the value of the global LGBT travel market, the study covers important ques-tions on key factors that motivate such travellers to choose particular goods and services. Overwhelmingly, the number-one most important factor globally was how welcome LGBT people were made to feel when they used particular products or services. The most important factor affecting this was how well staff are trained to understand the travel concerns of their lesbian and gay guests.

"There have been a rash of pro-grams established in recent years that purport to confer gay-welcoming status on their membership,” says Ian Johnson, founder and CEO of Out Now. “LGBT cus-tomers, however, are rarely influenced by such membership programs, which they

said. “Because it is such an expensive business, the industry has to be the gatekeeper. You have to end this prac-tise otherwise you're not going to be impartial.” n

perceive to be little more than money-making schemes by their promoters.

“That’s a shame for the hotels that join them in good faith, trying to con-vince customers to part with their travel dollar. Our research this year shows over-whelmingly that the most important fac-tor in meeting a consumer's expectations of delivering a genuine 'gay-welcome' is how well staff are trained to understand their LGBT guests' travel concerns."

Out Now says it is important for staff working in hotels and destinations to understand and meet the travel con-cerns of their LGBT guests. Important issues include how to address a same-sex partner, debunking stereotypes and how to help LGBT guests with travel needs, such as the best ways to locate the nearest gay and lesbian nightlife scene. n

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Travel industry must boost sustainability


nTravel companies based around the world that are interested in attract-

ing the Baltic region’s outbound market often lack basic information about the Baltic countries. What are the differences between Lithuania, Latvia and Estonia? Do they have any particular characteris-tics or preferences when it comes to lei-sure holidays and business trips? What are the economies like, and how much do people spend on outbound travel?

To answer some of these questions we spoke to a number of travel agents and tour operators in each of the three

Baltic markets and drew up a summary. Of course, many of the characteristics outlined in each country are common to all three, but we hope the article creates a broad picture.

Latvia: outbound reboundThe geographically central of the three Baltic countries, Latvia has Riga, the region’s biggest city, as its capital. Riga International Airport boasts excellent con-nectivity, a development that fits logically with the city’s position as a fast-emerging business and entertainment centre.

The Latvian economy showed the fastest growth in the EU for several years leading up to the 2008-09 reces-sion, which became by most accounts the biggest post-war contraction on record. Unofficial estimates put unemployment well above 20%, while emigration reached new heights.

However, a strong rebound begin-ning in the first half of 2010 could result in Latvia achieving its long-term goal of adopting the euro in 2014.

In Latvia, as elsewhere, the sever-ity of the recession forced many people

Outbound travel:an overview of the Baltic market

tourism

who had previously enjoyed one or more vacations per year to stay at home. Many travel agencies claim that they lost 40% of their clients or more.

But in 2011, outbound agencies saw something of a rebound. While young people are certainly using the internet to book travel and accommodation, tak-ing advantage of what appear to be cheap tickets offered from Riga by Ryanair, Wizz Air and airBaltic, the majority of people seeking to vacation again are returning to agencies.

Riga International Airport saw 4.66 million passengers in 2010, a large number of them using airBaltic’s care-fully nurtured possibilities for transit via “North Hub Riga”.

The stronghold of Turkey and Egypt over outbound travel has altered with the changes in North Africa, and Spain, the Canary Islands, the Greek islands, the UAE, Thailand and Bali have all bene-fited from this shift. Charter flights once a week this year have taken tourists from Riga to Bangkok via Tashkent.

Travel agencies tend to agree that a typical customer could be described as over the age of 35, urban-based and

travelling as a couple as much as with a family. They are interested in beach holi-days in summer and beach or ski breaks in winter. Culture and a little adventure are sometimes requested by clients, but only by a minority.

A number of pensioners are eager travellers too; pensions vary from person to person but can be enough for one trip abroad per year.

In the fragile post-recession envi-ronment many customers continue to look for discounts, especially if they are taking children. The average price they are looking for in summer is LVL 400 (€570) per person in a band of LVL 250-500 (€350-700) – though rather more in winter – while LVL 1000 (€1430) is a com-mon psychological spending barrier for families, with further barriers being LVL 1500 (€2150) and LVL 2000 (€2850).

Leisure trips tend to last for seven or 10 days, with a week being the most popular. Trips to more distant places usu-ally last at least 15 days. The upmarket segment for families and couples requires greater agency input, including hotel selection, airline partners, car rentals and standards of service quality.

Outbound business travel is cur-rently seeing slightly better prospects in Latvia than leisure travel. Business trips abroad usually last two to three days, and while businesspeople once liked to add on a few extra days for leisure travel, now leisure and business trips tend to be separate.

Riga International Airport offered more than 80 direct destinations in sum-mer 2011, although that may diminish with the ongoing financial difficul-ties of the national airline airBaltic. So if air travel via a hub is necessary for trips abroad, the choice of hub varies according to price. For long-haul leisure destinations, tour operators may use less typical hubs such as Kiev, Berlin or Tashkent.

Latvia is fairly distant geographi-cally from the rest of Europe, so air travel is by far the most favoured mode of transport for both business and leisure travellers. However, leisure trips by bus have not diminished in popularity, to Scandinavia and even as far as Turkey. Riga also has a passenger port, with fer-ries taking increasing numbers of people, mostly to Stockholm.

Central Vilnius

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Some specialist agencies are min-ing a stable niche in attracting individu-als and couples to form groups of 10-25 people for more exotic destinations. It is possible for Latvian residents to easily find tours to, for example, China and Tibet, Peru or Uzbekistan departing on a fairly regular basis. Seven-day trips to Uzbekistan or Armenia are priced at around LVL 800 (€1150) per person. Local guides speak English or Russian.

There is less demand for these types of tours than in 2007, of course, but niche

agencies report growing demand in H2 2011, around 15% more than last year. A small minority of people in Latvia buy holidays that combine distant destinations that are still very new for local people, such as small groups of friends wishing to see New Zealand and Bora Bora.

Lithuania: desire for economyThe biggest of the three Baltic countries, Lithuania is located to the south of Latvia and Estonia, bordering Poland. The Lithu-anian outbound travel sector grew rapidly

during the economic boom leading up to 2008, but took a battering when the econ-omy then endured a deep contraction.Unemployment approached 20%, although a smaller proportion of workers were laid off than in Latvia as compa-nies opted to pay much-reduced salaries rather than lose touch with large numbers of employees.

However, the recovery in 2010 and 2011 has been strong and the economy is growing quickly again. Lithuania wants to adopt the euro in 2014.

Agencies that are focused on busi-ness travel are seeing resurgence in demand, especially from international companies with offices in Vilnius as well as from companies operating the increasingly visible call centres and ser-vice centres in the Lithuanian capital, such as Barclays, Western Union and IBM. More conference and incentive trips are being organised to countries in Asia. Business clients prefer to work with reliable suppliers that are part of an international network.

Business trips tend to last two to three days and agents are usually asked to keep overnights to a minimum. The presence of airlines like Lufthansa, which launched a second daily flight to Frank-furt this year, SAS and LOT help agencies a great deal in the planning of business trips from Vilnius.

The leisure market was dominated for many years by Turkey and Egypt. But this has changed, not only with the recent events in North Africa but also with the arrival of low-cost airlines in Kaunas and, from 2010 when VNO reduced landing fees, in Vilnius too.

This latter development has put additional strain on struggling outbound agencies as well as tour operators, as many Lithuanians are booking flights and accommodation themselves online.

The low-costs have opened up and facilitated travel to more intriguing des-tinations such as the Greek islands, Italy, France and – for large numbers of people seeking work – the UK. Ryanair now flies, with full planes, to multiple destinations from both Kaunas and Vilnius. Young people are able to fly inexpensively and stay with friends.

While low-cost airlines are hardly reliable partners, they do expand the list of destinations offered by agencies – but ultimately a low percentage of sales. For business travellers, the low-costs’ irregu-lar twice-weekly flights are inconvenient.

Nevertheless, the arrival of low-cost carriers and their stress on marketing and ostensibly low prices have unmistakably stimulated travel from Lithuania.

Some travellers who have been truly bitten by the travel bug fly from Europe’s hubs to South America or Asia, and this combination is something that travel agency expertise can assist with.

However, the effects of the reces-sion are still current even for wealthier customers, many of whom now travel once a year instead of two or three times, although that single trip is often longer than before.

Among the best prospects for the Lithuanian outbound market are Thailand

featuresand Vietnam for the winter season and Bulgaria, Rhodes and Kos for the sum-mer period.

Air continues to be by far the most common mode of transport out of Lithu-ania. VNO saw 1.37 passengers in 2010, Kaunas International Airport 810,000, Palanga International Airport 103,000.

Lithuanians are longing for easier travel overland through Poland, but as long as the Polish roads remain abomi-nable and Rail Baltica a distant project, there are no real alternatives to air travel.

Some couples and families are choosing to expand their choice of des-tinations, to Cyprus for example, by ordering travel online with Polish agen-cies and driving overnight to Warsaw Chopin Airport.

Besides Warsaw, popular hubs for air travellers from Lithuania include Frankfurt – thanks to Lufthansa – and, to Asia, Helsinki with Finnair. As long as Austrian Airlines continues to fly to Vilnius, Vienna is also an option.

Riga has been increasingly used as it is easily reachable from all parts of Lithuania by car and RIX has a direct bus connection from Vilnius.

SAS’s hubs offer less connections than in the past, while Czech Airlines no longer provides long-haul flights from Prague. Since British Airways stopped flights to Vilnius in 2006, London’s major airports are now inconvenient as a transit hub for Lithuanians as they are time con-suming to reach from Stansted and Luton.

A small number of leisure travellers drive by car or minibus with friends or family to, for example, ski resorts in Italy and France or to the fjords in Norway via ferry from Klaipeda or ports in Latvia.

Bus tours are a small but stable segment for clients to see a number of different countries at the same time. They are a popular option for school groups on cultural trips, but also for older couples, as long as each night is a hotel overnight.

Uncertainty about the future and fears of rising inflation and fuel bills restrict the overwhelming majority of Lithuanians from travelling further than Europe. Beach holidays are by far the most popular type of vacation, although around half of customers want mixed tailor-made trips combin-ing a beach with sightseeing and cul-tural activities.

A dedicated minority of customers regularly asks for resorts where tennis, golf, skiing, snorkelling, diving, etc., are available.

It is not true to say that OTAs are stealing all of the agencies’ custom in Lithuania. The majority of Lithuanians have stressful lives and long working hours with little spare time to arrange trips online. This keeps travel agencies busy, and those that are visible on the high street are seeing a large number of walk-in enquiries.

Leisure trips tend to last a week, with weekend breaks and journeys of two to three weeks for long-haul destinations also being purchased.

Because tour operators are see-ing fewer customers their prices have

increased significantly and their range of choices has decreased. Before the reces-sion, a customer could buy a week’s break at a four-star hotel in Turkey for LTL 1000 (€290). Now prices start at LTL 1500-2000 (€450-580).

The average price being paid in Lithuania for a beach holiday is currently around €550. Agency customers in Lithu-ania are always looking for discounts of even just a few euros. The average price for early bookings for the 2011-12 winter season is around €680.

A travel agency’s typical customer is aged 30-55, with a family, socially active, residing in Lithuania’s bigger towns and cities and placing value on time, comfort, quality and new experiences.

Estonia: market focusThe smallest of the Baltic countries, Esto-nia is also the most northerly, with Fin-land a close neighbour geographically and economically. Like its Baltic neighbours, Estonia achieved astonishing economic success in the years leading up to 2008.The economic contraction that fol-lowed pushed unemployment towards 20%. However, the stability of Estonia’s political and economic policies impressed investors, who continue to show their faith in the country’s future and, cap-ping a remarkable turnaround, Estonia managed to adopt the euro as its currency on 1 January 2011.

Most travel agencies in Estonia report that clients in Estonia prefer pack-age holidays. The type of holiday that people are choosing continues to focus on sunny and warm destinations with easy access to a beach and warm seawa-ter. A majority of people also want a small variety of activities, from sightseeing to sports to games for children.

As most Estonians see themselves as having more Nordic than Baltic charac-teristics, cross-country skiing is hugely popular and in winter many people travel to ski resorts.

The most regularly chosen length of stay for outbound leisure travel is seven nights and eight days, with 10-day stays in second place. The average cost of a holiday is around €650 per person, with a range of €550-€800 in peak season and €500-€600 in the low season, depending on the destination.

A minority are happy to spend much more than this, such as around €1500, on long-haul destinations. Estonian resi-dents benefit from being close to Helsinki,

Finnair’s northern European gateway to Asia. Agencies with a focus on these further destinations see their client base as being aged 40 to over 70, as younger people lack the money for a less conven-tional holiday.

Although the euro zone is enduring a challenging period, leisure and business travel from Estonia are both currently showing good prospects for the future. Leisure travel in particular has rebounded quickly since the slump of 2008-09. Busi-ness trips tend to last between one and four days.

Because of Estonia’s geographical location, flights and ferries are the most popular modes of outbound travel. Lenn-art Meri Tallinn Airport, named after the country’s late former president, saw 1.385 million passengers in 2010.

For trips by plane, Helsinki, Riga and Copenhagen are all popular hubs, followed by Frankfurt. Showing the large number of passengers who go on to transit through another airport, the top three destinations from TLL in 2010 were Helsinki, Riga and Copenhagen.

As with the other airports in the Baltic region, f lights to London are dominated by low-cost carriers flying to secondary airports, ruling out Lon-don’s airports as hubs for further travel from Tallinn.

The most popular direct charter flights operated from Tallinn are to Tur-key (Antalya), the Canary Islands (Tener-ife), Egypt (Hurghada, Sharm el Sheikh) and Crete (Iraklion).

The Port of Tallinn is the Baltic region’s biggest passenger port, with the Tallinn-Helsinki line seeing more than 620,000 people in 2010.

For bus tours to Europe there is cer-tain niche, but it has decreased a great deal in the last 20 years. A minority travel by car for shorter breaks to more reason-ably accessible destinations, such as the Estonian islands and spa resorts.

Travel agencies’ client base tends to include all market segments, but broad-ly encompasses travellers who want a comfortable and guaranteed holiday with charter flights. These clients tend to include families with children, older couples and also groups.

Out thanks to the following com-panies for their assistance in compiling this article: Baltic Clipper; Berger Reisid, Estravel, Impro Celojumi, Jekaba Agentu-ra, Kaleva Travel, Latvia Tours, Novaturas, Tez Tour, Wris. n

Essential data on Baltic market Lithuania Latvia Estonia

Population (2011) 3.2 million 2.2 million 1.34 million

Airports with scheduled international flights

3 (Vilnius, Kaunas, Palanga)

1 (Riga) 2 (Tallinn, Tartu)

EthnicityLithuanians (84%), Poles (6.6%), Russians (5.4%)

Latvians (60%), Russians (27%)

Estonians (69%), Russians (25.5%)

GDP per capita (PPP; 2011)

€13,574 €10,752 €13,770 (2010)

Walking in Tallinn

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Leisure and business travel are currently showing good prospects

30 No.4/2011 Baltic Stand By www.standbynews.info

features

nConstruction work has yet to begin on what is being described as

Europe’s second Disneyworld, but it is already possible to see the fantasy images of what it will look like online.

Adventure World Warsaw, Poland’s first theme fun park, will be under con-struction from next spring. Images and a movie on its website, adventureworld-warsaw.com, reveal the arrangement of all of the elements on the 240-hectare plot, where the biggest fun park in Central & Eastern Europe will be developed and opened in early 2014.

Adventure World Warsaw will con-sist of an all-year part as well as open-air attractions that are open from April to November. The website movie shows that the entrance to the park will lead through an “entertainment village” where visitors can watch art performances or visit bars, restaurants and stores.

Passing by the attractions of this part of the compound, guests will arrive right in front of the impressive Grand Resort Hotel – a building with highly stylised architecture.

Under the hotel there will be a pas-sage to the open-air part of the park and to the so-called winter zone, the all-year section of the theme park.

Turning left before the hotel, visitors will arrive at the Aqua Park and nearby Aqua Hotel. The water slides, swimming pools and other water attractions, so far unprecedented in this part of Europe, all located under a gigantic dome, will be accessible 365 days a year.

Using the passage under the Grand Resort Hotel, visitors will enter the Theme Park – the core of Adventure World Warsaw. The first part of the park will be the Adventure Harbour – a market-place filled with stores, restaurants and other attractions.

The park will also have five dif-ferent theme islands. Two of them will belong to the all-year part of the park –

the Lost Kingdom, to the right of the har-bour, where the visitors will be exposed to such powerful experiences as an earth-quake and a volcanic eruption.

On the left will be the Polish Square, whose architecture will be reminiscent of the old towns to be found in the country’s cities. Here you’ll be able to meet charac-ters from Polish legends and fairytales, such as Pan Twardowski, inviting guests to visit his moving palace, or experi-ence an adventure in a flying vehicle, among other reanimated Polish fairytales and legends.

With a view across the adventure park, the Creature Lagoon will perhaps be the most joyful of all, as it will be full of mythical creatures who love having fun and playing pranks. At the same altitude but on the other side of the Adventure Harbour, there’s the Land of Legends, referring to ancient civilisations such as the Mayan and Egyptian civilisations.

Castle Island, located on the out-skirts of Adventure World Warsaw, will provide an opportunity for visitors

to meet Merlin, King Arthur, witches and dragons.

The Adventure World Warsaw proj-ect and its movie blueprint are the work of Las Palm, the company involved with the coordination of the theme park’s con-struction and eventual operation. Inves-tors from Luxembourg have said they will pump €400 million into the construction of the theme park, for which land has been set aside in Grodzisk Mazowiecki, a town 40 kilometres southwest of the Pol-ish capital. The names of the individual investors behind Las Palm have not been disclosed, causing a certain amount of concern in Poland.

“We are counting on 2 million visi-tors a year,” the company’s chief execu-tive Peter Jan Mulder, told the website thenews.pl. “The consortium comprises of people who have money.”

Adventure World Warsaw will have 25 special rides in its five thematic zones. Las Palm is reported to be in its second planning phase, which involves the construction of additional facilities such as a luxury spa, conference centre and entertainment centre, worth a further €350 million. n

Massive “adventure world” in Poland

“We are counting on 2 million visi-tors a year.”

32 No.3/2009 Baltic Stand By www.standbynews.info

www.tourismthailand.org

baltic stand by november'11

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