Tran Thanh Nam

Vietnam-headquartered HG Travel is rebranding itself as it seeks to better reflect the company’s business today compared to when it first started 20 years ago.

It will take on the new name Asia DMC to highlight its presence as a regional player rather than as a local DMC. To solidify its claim, the company has made known plans to massively expand throughout Asia.

Local offices will be opening in Indonesia, Malaysia, China, India, Sri Lanka and the Philippines over the next 12 months, adding to its currently established presence in Vietnam, Cambodia, Myanmar, Laos and Thailand.

“The transition from HG Travel to Asia DMC represents our growth from a local destination management company to expanding into Indochina over the last five years when we opened in Cambodia, Laos, Myanmar and Thailand and now to a continental player offering innovative, new products throughout Asia,” said its CEO Tran Thanh Nam.

“The change of name is also the consolidation of our commitment to the B2B model we have honed for the past two decades as we now look to the future.”

In conjunction, Asia DMC will also open a sales and marketing office in the US on the west coast to better serve its North American clients.

And to mark the rebranding, the company is launching a non-profit foundation as well. Called People of Asia, the organisation is meant to highlight Asia DMC’s commitment to sustainable tourism and to local communities.

Tottori Prefecture

Plans are underway to lure tourists back to Japan’s Tottori Prefecture in western Honshu after a magnitude 6.6 earthquake on October 21 led to widespread trip cancellations there.

Kurayoshi City, situated near the epicenter of both the quake and the 4.6 magnitude aftershock, was worst affected by the disaster, but loss in arrivals has been felt across the entire area.

Kenichi Taki of Tottori Prefecture’s tourism strategy division says about 10,000 people have cancelled their hotel reservations since the quake. As well, according to Miho Kuwana, spokesperson for Nippon Travel Agency, one third of its bookings to Tottori were cancelled after the quake.

Now, while nine hotels remain closed in Tottori, of which two are ryokans located in the central Kurayoshi area, according to Koichi Tomiyoka of the Kurayoshi City Hotel Ryokan Association, many in the prefecture are springing back into business.

A representative of Hotel New Otani Tottori said that they had to close and had received cancellations immediately following the quake. But the hotel has opened for business the very next day. Tottori City Hotel too has resumed normal operations after suffering some cancellations.

“Most of the hotels are fully operational,” said Taki, adding that the prefecture is working on encouraging tourists to return. “We are planning to provide subsidies such as discount coupons to people who reserve a trip through travel agents such as JTB and Rakuten Travel.”

Kuwana agrees that this type of scheme could be successful and wants to cooperate with the prefecture to reinvigorate travel to the region.

The Maldives, already hit with sliding arrivals from China, its biggest source market, suffered another setback after Chinese authorities issued a Zika warning against travel to the nation of resort islands.

In an advisory dated November 1, Chinese authorities warned its citizens against travelling to the Maldives due to the Zika virus epidemic there. The notice will remain in effect for the next three months.

The warning follows a World Health Organisation announcement on September 29 adding the Maldives to the Zika virus epidemic list.

The Chinese advisory is cautioning “travellers to take strict precautions against mosquitoes, such as wearing light-coloured, long-sleeved clothes, spraying mosquito repellent and applying mosquito nets.

“Pregnant women or women planning to become pregnant have been advised to avoid the island entirely. The virus is especially dangerous to pregnant women and can cause microcephaly and other severe brain defects in children.”

According to official data, arrivals from China have fallen 11.3 per cent in the January to September 2016 period compared with the same period last year to 259,679 visitors.

Offline travel agents are having mixed reactions in the wake of the recent merger by Indian OTA giants MakeMyTrip and Goibibo.

The merger has resulted in the creation of a company that has more than 50 per cent of the market share cornered with no close competitor.

While some expect the combined entity to now have a more sustainable pricing strategy, others think the competition will only get more intense.

“Both these companies were earlier competing with each other and offering heavy discounts to customers,” said The Oasis Xpress Travel & Tours director Teddy Thomas. “With these companies now merged, it may result in less discounts, which then allows more yield for traditional travel agencies.”

MakeMyTrip and Goibibo agreed to merge in a stock transaction without indicating the value of the combined entity last month. The brands are expected to retain their identity once the transaction closes.

“I don’t see any effect on traditional agents. The merger happened as these companies were concerned about their losses because of unsustainable discounts they were offering. We as offline travel agents will continue to bank on our expertise and liaising directly with suppliers,” said Praveen Chugh, managing director at Business Travels.

However, some offline agents do expect tough competition post merger. Said Pradip Lulla, CEO of Cupid Travels & Tours: “The merger of MakeMyTrip and Goibibo will only make it more competitive for travel agents as the joint entity is expected to be more aggressive about their growth in India.”

Hoteliers meanwhile think that the merger is good for them and will drive customers back to the hotel’s own direct channels.

“In my opinion, the business model of Goibibo was a suicidal model and is an example of unethical business. Travel agents, tour operators and Indian OTAs suffered losses because of their heavy discounting. This merger will bring back healthy business practices but will surely result in stiffer competition for other OTAs,” said Sanzeev Bhatia, general manager, The Metropolitan Hotel & Spa New Delhi.

“Moreover, we expect that both companies will stay away from heavy discounting which will make tariffs on our website at par, resulting in more bookings for us through our own website.”

Thailand-based Akaryn Hotel Group (AHG) will open three hotels this December, its biggest expansion move since establishment in 2007.

The three hotels are Akyra Beach Club Phuket; Akyra Thonglor Bangkok, the group’s first hotel in the Thai capital; and The President by Akaryn, its first hotel outside Thailand.

“It is AHG’s biggest move so far, but we believe in the growth potential of these three locations,” said Anchalika Kijkanakorn, the group’s managing director.

AHG spent more than 200 million baht (US$5.7 million) on Akyra Beach Club Phuket located on Natai beach in Phang Nga province. This hotel will help to support its sister property, Aleenta Phuket Resort & Spa, as a leisure and dining destination for guests.

Meanwhile, the 140-key Akyra Thonglor Bangkok and The President by Akaryn located in Vientiane are under management contracts.

The owner of Akyra Thonglor Bangkok has allocated a budget of 300 million baht for refurbishment to be carried out and will replace the site occupied by Pan Pacific Serviced Suites Bangkok on December 1.

The hotel is positioned as a luxury boutique property to compete with chain hotels such as Marriott Executive Apartment Bangkok, Somerset Sukhumvit Thonglor Bangkok and Hilton Sukhumvit Bangkok.

Anchalika added that although the Thai capital is home to a plethora of hotels, there is still room for growth. Besides, AHG is targeting a different group of travellers who are more independently minded.

Overseas, the 32-key President by Akaryn will pave the way for the group’s expansion to potential destinations such as Luang Prabang, Yangon and Hanoi.

AHG currently operates three hotels, namely the Aleenta Phuket Resort & Spa, Aleenta Hua Hin Resort & Spa and Akyra Manor Chiang Mai.

The Strand Yangon hotel will unveil the result of a six-month renovation and restoration project alongside a rejuvenated team when it reopens on November 15.

Restored elements at the colonial heritage building include original architectural details, from teak panelling and antique bedsteads to traditional Myanmar lacquerware and marble flooring.

As well, the hotel’s 31 rooms and suites feature new vintage-inspired textiles and original artwork, modern air conditioning systems and the latest in-room technology.

Commented Olivier Trinquand, vice president, The Strand Hotel & Cruise: “The Strand Yangon was one of the first luxury colonial outposts to open in South-east Asia, founded in 1901 by the famous hoteliers, the Sarkies brothers, and it remains one of the most architecturally beautiful landmarks in the region.

“This latest project has preserved the heritage at the heart of the hotel and honours the Strand’s part in Myanmar’s history, whilst creating a more relaxed, refined and glamorous setting for 21st century travellers and explorers.”

During the closure, the entire team underwent service training led by the hotel’s new operations manager, Mark Murraybrown, who has a track record of developing restaurant teams in London.

As well, the hotel’s Strand Restaurant has taken onboard as its new executive chef Christian Martena, who had trained in Michelin-star restaurants before running his own restaurant in Bangkok.

The restaurant will open from December 1 for dinner four nights a week and serve a seasonal menu of classic Mediterranean dishes enhanced with locally sourced ingredients.

Luang Prabang Film Festival. Courtesy: Luang Prabang Film Festival

This year’s edition will feature films such as A Yellow Bird (Singapore), Banana Pancakes and the Children of Stick Rice (Laos), and Before The Fall (Cambodia), among others.

Daytime films will be screened at the Sofitel Luang Prabang’s screening room which can seat 75 people. On the property is also a short film screening room that can seat 20 more. At night, films will be screened outdoors at the Handicraft Market, which can accommodate over 1,500 pax.

Villa Maly, a four-star boutique hotel in Luang Prabang is currently running a package promotion – available to all ASEAN members – from December 2-7. At US$490 for two people, it includes a three-night stay in the hotel’s Superior Room, return airport transfers, daily breakfast, and a lunch cruise to Pakou Cave.

For every package booking, Villa Maly is also offering a 20 per cent commission for agents.

The US embassy in New Delhi issued a security message for US citizens in India yesterday citing local reports of plans by ISIS to launch an attack in the country.

“Recent Indian media reports indicate ISIL’s desire to attack targets in India,” stated the advisory, using a different acronym to refer to the jihadist group.
Mumbai skyline

It continued: “The US embassy warns of an increased threat to places in India frequented by westerners, such as religious sites, markets, and festival venues.

“All US citizens are reminded to maintain a high level of vigilance and take appropriate steps to increase their security awareness.”

Eric Ricaurte

A new alliance aimed at spurring sustainable hotel development in Asia by going straight to the roots – i.e. the owners who build the properties – has been launched.

Spearheaded by Greenview and a few launch partners including Marriott International, Hotel Owners for Tomorrow (HOT) is possibly the first coalition of sustainable-minded Asian hotel owners, coming at a time when the region continues to see a robust pipeline of hotels.

Eric Ricaurte, founder/CEO of Greenview, which is based in the US and has an office in Singapore, believed Asia is “the battleground for sustainable development as more hotels are going up in Asia than the rest of the world put together”.

HOT welcomes all owners to join, start the conversation among one another on sustainability, share best practices and get recognised for their efforts.

HOT is asking its members to commit to five actions for building a sustainable future: incorporate sustainability from the beginning of investment decisions; evaluate one renewable energy project and one efficiency project per property per year; routinely monitor and benchmark sustainability performance; support brand efforts; and share best practices.

Thus far, apart from Marriott, Wyndham Worldwide, Hyatt Hotels, Six Senses, TAJ Hotels, Resorts and Palaces, AKARYN Hotel Group, PATA, Horwath HTL and the International Tourism Partnership and the Global Sustainable Tourism Council are signatories of HOT. TTG Asia Publishing has also signed up as media supporter.

“By becoming a signatory, owners will not only receive distinction for helping shape the industry in their destinations, they will also benefit by avoiding the future costs of regulation, identifying opportunities for increased ROI on investments, and by gaining access to capital from equity partners which require strategy, disclosure and action on environmental, social and governance issues in order to do business,” said Ricaurte.

In an interview during the recent HICAP (Hotel Investment Conference Asia-Pacific) in Hong Kong, Ricaurte, when asked what Asian owners were not doing about sustainability, said “they are not talking about it” but added this was the same in the US years ago.

He recalled introducing sustainability to US hotel clients and they went “ya ya ya” – until they got pressed by institutional fund shareholders about their sustainable practices. “Then they really started getting into it and now you see teams that are engaged and want to find the best opportunities as there is so much innovation (in sustainable development) out there,” said Ricaurte.

In Asia, where the market is dominated by individual or family owners, a coalition like HOT is even more critical. “Some owners may be building a hotel for the first time…they may spend a lot to build an opulent lobby, but won’t spend money on, say, solar panels because they may not understand that if they look longterm, building an efficient hotel is going to save them money. Not only that, since it is family money and they want to leave a legacy for the family, how best to leave a legacy than this? So we want to make that kind of connection with them, not talk about sustainability in too technical terms,” he said.

According to Ricaurte, younger hotel owners are “the biggest opportunity”. “They get it, they are hungry and they want to make their mark,” he said.

Daphne Tan, vice president, head of development planning/feasibility & owner relations Asia-Pacific of Marriott International, said what she liked about the coalition was the chance to engage owners before they build. “A lot of times we look at how to improve waste management, energy efficiency, etc, oftentimes because it’s triggered by the need to save costs. In India a few years ago, our owners were eager to incorporate sustainable measures as energy costs were soaring, for example.

“What we like about this coalition is, why don’t we start from the beginning? It takes three to five years to plan/develop a hotel, why not look at the full spectrum and see how owners can adopt sustainable practices early on? I don’t think they think about that so the coalition can help educate owners and raise their awareness.”