Airworld diversifies into hotel, cruise business
KOTA KINABALU: Airworld Travel and Tours Sdn Bhd is poised for growth by diversifying into the hotel and cruise business and forming alliances with strategic partners.
Its managing director, Jacky Liaw, has teamed up with the operator of a Michelin-rated hotel in Taiwan to establish a four-star boutique hotel in Kota Kinabalu.
Airworld, through its subsidiary, Team World Star Services Sdn Bhd, is also collaborating with KK Cruise Seafood Restaurant Sdn Bhd to offer what the company claims to be the largest floating restaurant in Malaysia.
The company was recently accorded Sabah Top Achievers Award 2019 under the Tourism and Travel category.
The inaugural award was jointly organized by The Leaders International and Borneo Pro Event at Hilton Kota Kinabalu on March 22 this year. Deputy Chief Minister, Datuk Seri Panglima Wilfred Madius Tangau, represented the Chief Minister, Datuk Seri Panglima Shafie Apdal, to officiate at the award ceremony with Deputy Home Minister, Datuk Azis Jamman, also present. The ceremony saw 35 aspiring leaders, entertainers and outstanding companies being honoured with top achievers awards in their own category.
Jacky said, Airworld is proud and honoured to receive the award, given the strict criteria whereby the company was evaluated on its revenue growth, profit margin, company culture, connection with staff, vision, achievements and goals.
He said Sabah Top Achievers Award would enhance the company's credibility.
“The award will show that we are a stable company that offers fair pricing and a company that does not cheat its customers,” Jacky said.
Airworld Travel and Tours Sdn Bhd was founded by Datuk John Lim in 1986. In 1995, Datuk Seri Winston Liaw took over the company from T.S. Yong and is now chairman of Airworld.
“Airworld started with outbound business, followed by charter flights to China. We are now focusing on reaching better and greater markets as well as the inbound business,” Jacky said during an interview yesterday.
Jacky has joined his father, Winston, in the company since 2009.
“We are not just doing business. We are dealing with people internal staff, external clients and suppliers. I feel the best way to manage the company is to do so with heart because it reflects the organization's culture,” he said, when explaining his business philosophy.
Airworld achieves its target of 10 percent revenue growth annually, the highest was close to 20 percent in 2012 and 2013 when demand for charter flights was high.
“Our revenue has more than doubled compared to 10 years ago,” he disclosed.
The company's outbound clients are mostly heading for South East Asian countries, Middle East and Europe, while inbound customers are mostly from China, Taiwan and West Malaysia.
He said, Airworld has also established a Kuala Lumpur branch last year to promote Sabah to West Malaysians.
“We have found that although we are all Malaysians, West Malaysians have minimal understanding of our State,” he revealed.
Despite growth in revenue, Jacky said, the figure may not reflect an increase in profit due to stiff competition in the market.
“Now, in order to grow, we need to invest in the hotel business, tour operations and partner up with restaurants,” he said.
As part of the expansion strategy, Jacky, in his personal venture, has engaged the operator of Michelin-rated HomeHotel in Taiwan to establish The Luma, a four-star boutique hotel at Sutera Avenue. The hotel, which is expected to open by the end of this year, would have 116 rooms incorporating designs inspired by the local ethnicities in Sabah.
By getting the Taiwanese partner on board, Jacky hopes that The Luma too, would attain the coveted Michelin recognition in the future. On the other hand, Team World Star Services Sdn Bhd, a subsidiary of Airworld, is teaming up with KK Cruise Seafood Restaurant Sdn Bhd to establish a cruising seafood restaurant.
Winston said, the cruise ship is currently under renovation and is expected to go into operation by the end of this year.
“The total cost of renovation amounts to about RM15 million,” he disclosed.
The four-storey cruise ship will house a buffet restaurant, Chinese restaurant, Western restaurant and a bar. It can accommodate up to 500 people on board.
“This will be the biggest floating restaurant in Malaysia,” he said.
In addition, Airworld has also established partnership with Pak Andi's Seafood Restaurant located at Tanjung Aru Plaza to serve tourists, especially Koreans and Chinese, quality Sabah seafood.
The restaurant, which began operation on January 14 this year, can sit 1,000 diners. The restaurant owner, Andi Arsid, said, the seafood at the premises is sourced locally from Semporna, Beaufort and Lahad Datu. Andi, who hails from Sandakan, owns eight smaller restaurants all over Sabah serving Indonesia fusion food.
“We provide fresh seafood at cheaper price compared to other restaurants,” he said.
Team World Star Services Sdn Bhd and Airworld Travel and Tours Sdn Bhd have signed a Memorandum of Understanding (MoU) and Memorandum of Agreement (MoA) with KK Cruise Seafood Restaurant Sdn Bhd and Pak Andi's Seafood Restaurant respectively during the Sabah Association of Tour and Travel Agents (SATTA) Night yesterday.