Tuesday, November 17, 2015

Starwood deal means more points for customers: Marriott CEO

Starwood deal means more points for customers: Marriott CEO

[NEW YORK] Marriott International Inc Chief Executive Officer Arne Sorenson said hotel customers would get "more and more points" as a result of its US$12.2 billion acquisition of Starwood Hotels & Resorts Worldwide Inc. 
The deal "will be hugely positive for consumers," Sorenson said Tuesday in an interview on Bloomberg Television. He didn't provide further details on how the companies' loyalty programs will be managed.
Sorenson emphasized the importance of maintaining customer loyalty as it creates the world's largest lodging company. Starwood's popular rewards program was part of what made the acquisition attractive, Sorenson said Monday during a conference call to discuss the deal with investors. The combined company will operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide. The properties are operated under 30 brands, including Marriott's Ritz-Carlton, Courtyard and SpringHill Suites, and Starwood's W, Westin and St Regis.
Scale is becoming more important as online travel services make it easier for consumers to book rooms and Airbnb Inc eats into hotel revenues by enabling people to rent out their homes to travellers. Still, the vast majority of people prefer to stay at hotels rather than apartments, Sorenson said in the TV interview.
BLOOMBERG

Wal-Mart earnings beat expectations; shares up

Wal-Mart earnings beat expectations; shares up

[NEW YORK] Wal-Mart Stores Inc reported stronger-than-expected quarterly earnings on Tuesday as it booked its fifth straight gain in same-store US sales, sending its shares more than 2 per cent higher in premarket trading.
Net profit attributable to Wal-Mart fell to US$3.304 billion, or US$1.03 per share, in the third quarter ended on Oct 31 from US$3.711 billion, or US$1.15 per share, a year earlier.
Analysts on average had expected 98 cents per share, according to Thomson Reuters I/B/E/S.
REUTERS

China plans tighter e-commerce checks to tackle shoddy goods

China plans tighter e-commerce checks to tackle shoddy goods 

[BEIJING] China will ramp up inspections of goods bought online, a regulator said on Tuesday, seeking to root out low-quality goods that have plagued firms like Alibaba Group Holding Ltd as well as the country's broader image.
The State Administration for Industry and Commerce (SAIC) plans to step up random quality checks for goods bought online, according to a statement on the regulator's website. The SAIC will take into account consumer reports, and press for cooperation from e-commerce platforms.
Companies like Alibaba, rival JD.com Inc and a plethora of others are frequently castigated by China's regulators for enabling the sale of low-quality goods as well as counterfeit products. But authorities are also keen to shake off China's broader reputation as a market plagued by consumer safety scares and rampant intellectual property infringement.
The issue has affected e-commerce leader Alibaba in particular. China's biggest Internet company has feuded in the past with the SAIC over the dubious nature of goods sold on the firm's platforms, with Alibaba's shares tumbling after one unusually public spat earlier this year.
Merchants found to be selling goods that don't meet the regulator's standards will be made to stop sales, the SAIC said. The e-commerce platforms on which they operate will also bear responsibility for removing the products, it said.
Platforms that don't cooperate will have the matter referred to their local regulator, according to the SAIC. "Anything that protects Chinese consumers is good news,"said a Beijing-based spokesman for JD.com, the country's second-biggest e-commerce firm.
Alibaba declined to comment.
Earlier this month, China's cabinet said it planned to eradicate intellectual property rights infringement on the Internet within three years.
REUTERS

China to expand quota, number of shares investors can trade on HK-Shanghai Connect

China to expand quota, number of shares investors can trade on HK-Shanghai Connect

[BEIJING] China will expand the trading quota and number of shares investors can trade on the Hong Kong-Shanghai Stock Connect, a securities regulator official said on Tuesday.
The regulator will also continue to push forward with the proposed Hong Kong-Shenzhen Stock Connect scheme, said Fang Xinghai, vice chairman of the China Securities Regulatory Commission, according to a statement on the watchdog's website.
REUTERS

Rail commuters will have 'almost new' North-South, East-West lines in 2018: Khaw

Rail commuters will have 'almost new' North-South, East-West lines in 2018: Khaw

TRANSPORT Minister Khaw Boon Wan has promised that Singapore will have "almost new" North-South and East-West rail lines (NSEWL) when upgrading works are completed by 2018.
In his blog post dated Nov 17, Mr Khaw outlined seven principal elements that are key to restoring NSEWL's reliability.
The first is to replace, overhaul and upgrade, said Mr Khaw, who added that the NSEWL are nearing their 30th year.
And while such works including the replacement of old electric motors and upgrading of power supply system will be costly, he said they are necessary to improve safety and reliability.
So far, all the sleepers for the entire North-South Line have been replaced while the replacement on the East-West Line began in May.
Mr Khaw said replacement of the third rail - which provides electric power to trains - has also started, as has the upgrading of the signalling system to allow trains to run at shorter intervals and in turn increase capacity by up to 20 per cent.
The second element is to ramp up maintenance, and SMRT and SBS Transit have agreed "to significantly ramp up their maintenance resources, including manpower", said the minister.
Having said this, he noted that building a strong engineering core with deep skills is something that will take time.
To overcome the lack of skilled manpower, he said the organisations need to retain existing professionals and up-skill them at every opportunity.
Mr Khaw also sought commuters' support so the service providers can carry out maintenance works.
"Currently, the maintenance crew has a limited window of engineering hours to carry out routine maintenance and major overhauls. They have asked for more time, during off-peak periods, to be set aside for maintenance. Examples include early Sunday mornings and especially during school holidays. If revenue service can be reduced by even half an hour during such off-peak periods, it will mean a lot to the maintenance crew, especially for the inspection and repair of tunnels and tracks."
The fourth element, he said, is to have clear corporate and top management focus on engineering excellence.
"SMRT's top leadership have expressed strong commitment to me, to raise rail reliability. Frequent rail disruptions tarnish their reputation and demoralise their staff too. Shareholders too, must, first and foremost, realise that they are buying into a specialised engineering company," said Mr Khaw.
On the authorities' part, the Land Transport Authority (LTA) will formulate a stringent set of maintenance performance standards, with more prescriptive, process-based requirements for the operators.
The minister admitted that until recently, the stakeholders have "taken a more outcome-based approach", which he said is too late.
The intensified regulation will complement the current outcome-based approach, he noted, adding that a stronger maintenance culture cannot be cultivated overnight, so LTA will drive this by embedding dedicated teams in the NSEWL for a start, to provide engineering expertise.
He listed the set up of an integrated team as the sixth element.
"We need an enlightened approach of transparency and open collaboration amongst all parties, and I am insisting on such a culture."
Finally, Mr Khaw said the industry structure needs to be integrated.
"There is room to improve the integration in the current MRT industry structure, with the regulator, designer and builder, working even more closely with the operator and maintainer. We will have to consider whether to rework the structure or perhaps implement new processes to realise the ideal outcome. This is a strategic issue which we are currently thinking through."
Pointing out that the combination of the seven elements is a multi-year effort, Mr Khaw said commuters can "experience distinct improvements in rail reliability in the coming couple of years".
He added that the seven-element strategy applies to the NSEWL, as well as the other lines run by the SMRT and SBS Transit, and this approach will be applied in starting the new Thomson-East Coast Line.

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