TTG Asia
Asia/Singapore Saturday, 28th March 2026
Page 1850

Hotel consolidation: Businesses should cast a wider net

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2015 was a year of consolidation for the hotel market – we saw three major hotel group consolidations: Marriott’s acquisition of Starwood, AccorHotel’s acquisition of Fairmont, Raffles Hotel and Swissôtel, as well as IHG’s acquisition of Kimpton. More recently in March this year, Marriott amended its agreement to acquire Starwood, boosting its initial bid made in November 2015 to US$13.6 billion.

In this new environment of mega hotel groups, the ability for other smaller hotel brands to preserve their bargaining capacity in client negotiations has been put to question. Amidst this current consolidation saga, Commune Hotels & Resorts announced plans for a merger with Destination Hotels – suggesting that smaller hotels may be going down the merger route as an antidote to being bought, or sold.

todd-arthur
Todd Arthur, managing director, Asia-Pacific, HRS

No doubt, chain hotels are able to improve their competitive positioning and negotiation power through size with OTAs like Expedia and Booking.com becoming strong competiton for the hotels. As such, consolidation may be an immediate solution to harnessing value by combining distribution strength. While hefty acquisitions like Marriott’s will see it taking top spot as the biggest hotel chain, it too carries implications; they will either have to compensate by cutting costs, increasing Average Daily Rates (ADR), or likely by doing both.

Consequently, when planning their executives’ travels, corporations may want to work on a plan B; look for alternatives and shift volume to fortify themselves against this disruption. Despite having consolidated chains, there are many private brands and independent properties that fall outside their distribution systems. This means that there is still a long way to go before the iron grip of OTAs on the hospitality industry is completely loosened.

In such an environment, having full transparency of the market and available rates becomes even more important. This level and depth of content on properties allows customers to tap into more choices. For instance, with a portfolio of 300,000 hotels globally, including 180,000 independent hotels, HRS has the scale to source on a global level – taking the fuller market into account instead of individual chains. After all, chains only make up a fraction of the total market in most regions.

Beyond the access to a wide range of hotels to optimize value, corporations should also tap on end-to-end services that go well beyond content alone. Flexible, streamlined booking conditions, corporate discounts and content-rich user experience are also made available through a platform like HRS. As HRS’ content becomes further integrated into systems of Travel Management Companies (TMCs), Online Booking Tools (OBTs) and Global Distribution Systems (GDSs), corporates are able to enjoy a holistic view of the whole process and make better-informed decisions when selecting a hotel. This will minimize both direct and indirect costs, allowing room for providing better services, upselling other products and increasing contribution to the company overall.

The trend of consolidation in the hotel industry is expected to continue, with hotels eager to improve their bargaining position with OTAs, and companies will need to look to independent hotels to drive savings to their programs and move their business forward.

By Todd Arthur

Todd Arthur is the managing director, Asia-Pacific for Hotel Reservation Service (HRS). HRS is a global hotel solutions provider and serves more than 40,000 corporate customers worldwide through its inventory of more than 300,000 hotels in 190 countries.

Todd Arthur’s core responsibilities include setting the business direction, driving organic growth with new and existing customers across Asia-Pacific markets, establishing strategic partnerships and talent development. 

Fun times ahead

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Malaysia
A boost to secondary locales
S Puvaneswary
Fast becoming the theme park capital of South-east Asia, the growing crop of theme parks in Malaysia  has enhanced the country as a family-friendly destination and spread tourist footfalls out from Kuala Lumpur to secondary destinations.

Ally Bhoonee, executive director at World Avenues, said: “The opening of new theme parks in Perak and Johor have helped us to sell Malaysia to overseas partners with itineraries that go beyond Kuala Lumpur.

“Theme parks such as Legoland Malaysia Resort and Sanrio Hello Kitty Town have helped promote Johor to families. In the past, Johor used to be a passing destination into Singapore,” noted Bhoonee.

“The Lost World of Tambun in Perak has helped us develop one- and two-night itineraries in the state, whereas in the past Ipoh used to be a stopover lunch destination for tours heading to Penang,” he added. “With Movie Animation Park Studios (MAPS) opening in July, it will give us another major attraction to sell in Perak.”

Developed to a tune of RM450 million (US$111.6 million), MAPS is the first  animation theme park in Asia with attractions and characters entirely based on cartoon animation themes, according to CEO Darren McLean.

Calvin Ho, senior general manager of Sunway Theme Parks, welcomes the complimentary effect the upcoming MAPS will bring to business at Sunway’s Lost World of Tambun and Sunway Lagoon.

He explained: “More marketing dollars invested in attracting tourists to the country can only be good for the economy. Tourists may want to visit more than one theme park during their entire stay.”

As well, John Chan, business development director, Kris International Traveltours, said the recent growth of theme parks linked to international brands such as Nickelodeon (see Tried & Tested on page 16), Legoland and Hello Kitty Town will grow a new segment of tourists who do not see shopping as a main draw.

Singapore
Building on family-friendly reputation

Paige Lee Pei Qi
While the cosmopolitan Singapore is renowned to be a shopper’s paradise, its appeal as a theme park destination rocketed when Universal Studios Singapore (USS) in Resorts World Sentosa (RWS) debuted in 2010.

According to Michael Chong, manager of global business at Star Holiday Mart, travellers who enjoy theme park attractions in Singapore are mostly families from South-east Asia and China.

Judy Lum, group vice president for sales and marketing with Singapore’s Tour East Group, share similar observations: “Most visitors are groups of young people travelling together or multi-generation families from India, China, Taiwan, Hong Kong and regional countries.

“Singapore’s close proximity allows them to have holidays at theme parks of international standards as most Asian working class do not have long annual holidays to travel to the US or Europe to enjoy such theme parks,” she elaborated.

Apart from USS, the eight-hectare Marine Life Park in RWS has pulled in large numbers of tourists too.

Leong Yue Weng, general manager of interactive indoor edutainment centre KidZania Singapore, which just opened at Palawan Beach on Sentosa Island last month, said theme park operators are enticed by Singapore’s positioning as a family-friendly destination.

However, competition is just at bay. Said Star Holiday Mart’s Chong: “Singapore faces regional and destination competition for theme parks – an example is the upcoming Shanghai Disneyland which will compete with Singapore for theme park tourists.”

Hence, to sustain Singapore’s appeal as a theme park destination, Lum urged theme parks to always “reinvent and refresh” their attractions and keep costs “affordable for surrounding countries” as the Singapore dollar is just too strong against the regional currencies.

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Japan
Regular updates fan domestic love affair

Julian Ryall
The Japanese love affair with theme parks started with the opening of Tokyo Disneyland in 1983. Since then, theme parks have grown to become a key part of the domestic tourism industry, with three parks – Tokyo Disneyland, Tokyo DisneySea and Universal Studios Japan – in the world’s top five attractions by attendance.

Japan witnessed a boom in theme parks in the 1980s, Motohisa Tachikawa, spokesman for JTB, pointed out, but not all the smaller ones survived the economic downturn of the following decade.

“Parks need to open something new every year or, at most, every two years because that is what keeps visitors returning regularly,” he said. “Repeat visitors are critically important and if someone feel that one visit was sufficient, they won’t want to return.”

Universal Studios Japan has experienced just that surge in visitor numbers. The opening of the Wizarding World of Harry Potter in 2014 led to a 28 per cent increase in admissions over the following year. To meet the demand, work has recently begun on a new high-rise hotel.

Huis Ten Bosch, the Dutch theme park in Kyushu, will introduce the new Kingdom of Robots attraction this year, a move that “will definitely bring in new visitors”, said Kotaro Takada, director of the corporate planning department.

“Last year, around 200,000 of our guests were from overseas and we’re seeing foreign visitor numbers increasing by as much as 10 per cent a year,” said Chanmum Om, who oversees the park’s foreign promotion efforts. Key to that has been the establishment of offices in South Korea and Taiwan to bring in guests.

Foreign visitors have also helped to increase overall numbers to Japan’s theme parks, Johta Takahashi, USJ’s spokesman said, with the sector in general benefitting from an increase in LCCs flying into Japan, relaxation on visa regulations and the relative weakness of the yen in recent months.

At the same time, more Japanese have been visiting after being dissuaded from travelling abroad due to recent terrorist incidents, primarily in European cities.

China
Theme park boom

Caroline Boey
International theme park operators continue to make a beeline for China as the country becomes a key target market, with Italian luxury car manufacturer Ferrari the latest to announce plans to build a branded theme park in China.

For now, all eyes are on the June 16 opening of the Shanghai Disney Resort, which is three times the size of the 28ha Hong Kong Disneyland Resort (HKDL).

This will this set a new benchmark for theme parks and add a new international dimension to China’s offerings, according to Joy Liao, sales director, Inbound Center, Century Holiday International Travel Group.

Kris Van Goethem, managing director, Asian Trails China, said it would be logical for the domestic market to shift focus to the Shanghai Disney Resort.

“It is the first park of such high international standard to open here. It is also more expensive for the Chinese to travel (to Hong Kong for HKDL) compared with domestic flights to Shanghai.”

A Legoland park is currently being built in Shanghai by Merlin Entertainments, which already has five attractions in China, with another two (Madame Tussauds and Sea Life aquarium in Chongqing) due to open soon.

Opening in 2019 will be the Universal Studios in Beijing – the third in Asia after Osaka and Singapore – and at 120ha, it is reportedly the biggest in the world, according to a China National Tourism Administration report.

The homegrown theme park scene, meanwhile, is dominated by Chimelong Group and Overseas Chinese Town (OCT) Group.

Guangzhou Chimelong Tourist Resort is the group’s first world-class comprehensive resort housing several of China’s top theme parks such as Chimelong Paradise, Chimelong International Circus, Chimelong Water Park and Chimelong Safari Park.

OCT has established a network of theme parks across China over the past two decades, including Shenzhen’s Window of the World (which showcases replicas of world-famous icons) and China’s first amusement park chain under the Happy Valley brand.

Violet Wang, destination manager at Pacific World, opined that China’s massive domestic market will assure business for the various theme parks in southern China and the Yangtze River Delta.

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Hong Kong
Buckling up for rollercoaster ride
Prudence Lui
Hong Kong Disneyland Resort (HKDL) and Ocean Park Hong Kong saw visitor numbers drop last year, but players are downplaying speculations that the opening of Shanghai Disney Resort may further dampen business.

HKDL’s sales director for Hong Kong and International, Martin Leung, said: “We see the opening of new theme parks in the region as advantageous because their presence will help create top-of-mind awareness of theme parks and the Disney brand among guests.”

Similarly, chief executive of Ocean Park Hong Kong, Tom Mehrmann, believes that more theme parks in China will cater to the rising number of the Chinese middle class while strengthening the region’s appeal for longhaul tourists.

“A critical mass of attractions will actually (improve the appeal) of tourist destinations, which is exactly what has been happening in southern China that includes Hong Kong and Macau,” he said.

Still, it seems the industry senses competition from neighbouring destinations and has sought to add new attractions to keep visitor experience fresh.

For instance, HKDL’s Star Wars-themed special events will be introduced this summer, offering rides such as Hyperspace Mountain.

Ocean Park recently launched free Wi-Fi service and has in the pipeline, two new hotels – Hong Kong Ocean Park Marriott Hotel and The Fullerton Hotel @ Ocean Park; scheduled for completion by 2017 and 2020 respectively – and the 64,381m2 Ocean Park Water World (2H2018).

W Travel, managing director, Wing Wong, feels that the theme park market is already mature. “There is not much room for big expansion given (Hong Kong’s) shortage of land. I believe there won’t be any dramatic growth of visitors but new facilities may help to drive more visitors.”

Macau
Casinos still primary attraction

Prudence Lui
The theme park industry is unlikely to exist of get off the ground in Macau, as the small territory – with a minuscule population of just 650,000 – is already dominated by the gaming industry and its integrated resorts, said observers.

John Ap, visiting professor at the Institute for Tourism Studies, said: “The current lull in the casino business would not provide the impetus or likely business environment to warrant development of any large-scale theme park that would be financially viable.

“What potential exists for Macau are family entertainment centres (FECs). Studio City is one of the first casinos to introduce this concept with its current Batman Dark Ride, Golden Reel ferris wheel and Warner Bros Fun Zone. It is expected other casinos will follow suit.”

However, FECs remain secondary, not drawcard attractions, and this is what Macau will be primarily limited to, he added.

Things might change with the debut of Macau’s first theme park, Planet J. Armed with Magic Scroll – a smartphone loaded with apps and connected to a master computer – participants can adopt fantasy personae to act out a series of customised challenges to drive away malevolent forces from the mythical Stone Kingdom.

On the other hand, CITS Macau’s international department manager Cooper Zhang thinks Macau could have emulated Hong Kong in the theme park field. “Macau needs (theme parks) to draw more youth and family visitors. Since land is scarce here, the scale can’t compare to Hong Kong but in terms of creativity, it’s possible to focus on educational and cultural element given the existing commercial tourism offers,” he said.

Gray Line Tours, managing director, Andy Wu, concurred: “In the past, all attention went to the fast-growing gaming industry and other business sectors were neglected. Now, the pace of the gaming industry has slowed and the government stressed on diversification of tourism offerings so I believe more opportunities for theme park development in future.”

This article was first published in TTG Asia, May 6, 2016 issue, on page 15. To read more, please view our digital edition or click here to subscribe.

Kurt Otto Wehinger takes on dual role at PPHG

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PAN Pacific Hotels Group (PPHG) has appointed Kurt Otto Wehinger as both area general manager Oceania and general manager of Parkroyal Darling Harbour, Sydney.

In his role as area general manager Oceania, Wehinger will be responsible for driving the financial performance and operations of PPHG hotels in the Oceania region. As general manager for Parkroyal Darling Harbour, Sydney, he will oversee all operations of the 340-room property.

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Wehinger was most recently the general manager of Marina Mandarin Singapore, and prior to that, the first general manager of Grand Millennium Beijing.

During the course of his hospitality career spanning more than three decades, the Austrian national has also worked under other international brands such as Kempinski and InterContinental.

First GM named for Premier Inn’s Singapore debut

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PREMIER Inn has appointed Pedro Mendes as general manager of Premier Inn Singapore Beach Road to oversee the UK brand’s first Singapore property.

Originally from Portugal, Mendes was previously based in the UK and served as cluster general manager for Premier Inn, and has covered all aspects of hotel operations in his 10 years of experience with the chain.

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Due to open in 3Q2016, the 300-room Premier Inn Singapore Beach Road will boast facilities including a locally themed all-day dining restaurant and bar as well as a rooftop pool.

Philippines tourism collaborates with top travel influencers

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Various shots from Philippine destinations from Jaypee Swing (@JaypeeSwing) and Rod Ruales (@ninjarod) that were also featured on @BeautifulDestinations

THE Philippine Department of Tourism (PDOT) is collaborating with five of the biggest travel influencers from creative technology agency Beautiful Destinations to drive interest in destination Philippines.

According to the PDOT, this is the first time a South-east Asian NTO is collaborating with the Beautiful Destinations team.

The team working on this project will comprise Beautiful Destinations founder and CEO Jeremy Jauncey; head of brand partnerships and travel drone pioneer Tom Jauncey; community manager and London’s top Instagram travel photographer and videographer Jacob Riglin; iPhone-only photographer James Relf Dyer; and videographer Sam Kolder, who filmed for American DJ Duo The Chainsmokers.

Some of the destinations that the team will travel to include Cebu, Bohol, Palawan, Manila and Pangasinan.

As part of the deal, the team will share moments throughout each day of the trip on Beautiful Destinations’ Snapchat, Instagram, and Facebook channels, as well as on the PDOT’s Instagram and Facebook accounts. Videos captured will also stream outside the Philippine Center in New York.

Additionally, the PDOT will host an InstaMeet event in Manila where the Beautiful Destinations team will meet up with local travel and lifestyle influencers.

“As the social media landscape continues to develop at a rapid pace, we have to adapt to changing times in order to stay ahead of the curve,” said the Philippines’ tourism secretary Ramon Jimenez, Jr.

“Collaborating with Beautiful Destinations, which has already set the global standard for creating social content, is surely an effective way to make our country’s presence in the digital space more felt by travelers who are highly reliant on social media.”

Singaporeans still willing to splurge on travel

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Departure hall at Changi Airport, Terminal 3

DESPITE a softening global economy, Singaporeans indicated that they are still willing to spend more on travel, according to a study by Wyndham Hotel Group’s loyalty division, Wyndham Rewards.

While 68 per cent stated that they are becoming increasingly cost-conscious in their personal finances this year, 81 per cent indicated that they will still travel about the same or more than the previous year.

Another 36 per cent were also willing to spend half of their discretionary spending budget or more on travel.

Additionally, the survey found 44 per cent of respondents were planning for big trips and about a third were intending to travel domestically or around the region in 2016.

As well, the findings show that travellers prefer midscale hotels followed by economy ones when choosing accommodations.

Amadeus now supports bidding for better seats

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airplane-seats

AMADEUS has partnered with Plusgrade to enable the bidding of preferred seating arrangements on flights via the Altéa Suite.

After purchasing an airline ticket, passengers or agents can proceed to bid online for an upgraded seat class or for free seats next to them. They are then informed of the status of the bid 24 to 72 hours before their departure time.

According to Amadeus, the technology benefits both passengers and airlines – passengers can pay for a premium service at a price of their choosing, subject to availability, while airlines get to generate more revenue by capitalising on empty seats and filling costlier seat classes.

At present, over 20 Altéa airlines are also Plusgrade customers, and through this partnership, Altéa customers will be able to implement the merchandising solution much quicker than before.

Genting Hong Kong signs order for 10 cruise ships

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(From left) Rüdiger Pallentin, managing director, Lloyd Werft Group; Uwe Beckmeyer, state secretary of maritime affairs; Tan Sri Lim Kok Thay, chairman and CEO, Genting Hong Kong, Erwin Sellering, prime minister of German state Mecklenburg-Vorpommern; Edie Rodriguez, president and CEO, Crystal Cruises; and Martin Günthner, senator for economics and port affairs of Free Hanseatic City of Bremen in Wismar, Germany

GENTING Hong Kong has signed an order for 10 ships under the Lloyd Werft Group, comprising two mega cruise ships for Star Cruises and eight vessels for Crystal Cruises.

The new Star Cruises ships fall under the Global Class and will each measure 201,000 gross tons. They are purpose-built for the contemporary Chinese market and delivery of the ships will commence between 2019 and 2020, with one delivered a year. Plans are in place for more orders.

“With the first two ships, we are focused on delivering a world-class vacation experience for Chinese cruise passengers at an affordable price,” said Lim Kok Thay, chairman and CEO of Genting Hong Kong.

Genting Hong Kong had recently purchased four shipyards in Germany to form the Lloyd Werft Group. It also acquired Norwegian Cruise Line 16 years ago.

As well, its stable of brands include Crystal Cruises for the international luxury cruise market, Dream Cruises for the Asian luxury cruise market and Star Cruises for the contemporary cruise market.

Zambia conducts first ever roadshow in India

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Aerial view of Victoria Falls

ZAMBIA Tourism organised its maiden roadshow in India last week in the cities of Mumbai and New Delhi, on the back of a 30 per cent surge in Indian arrivals recorded last year over 2014, which had 25,000 Indian visitors.

The NTO entered the Indian market three years ago with the appointment of Blue Square Consultants as local representatives, but it is now looking to boost efforts.

“We have earlier participated in trade fairs in India. However, these roadshows mark the beginning of our aggressive approach to increase tourist arrivals from India, our fastest growing market in Asia. We are keen to grow the number of leisure and incentive tourists from India,” said Felix Chaila, CEO, Zambia Tourism.

“Our aim is to organise at least two to three roadshows annually starting next year and reach out to more cities. Zambia is one of Africa’s friendliest and safest countries with unique tourism products and a happening nightlife. This is the message we want to spread through our trade partners,” added Chaila.

The NTO is also coming in strong at a time when the main barriers for entry have been lifted.

Chaila explained: “Our interaction with trade partners in the past revealed that the requirement for yellow fever vaccination and a cumbersome visa application process were (the two main impediments) for India’s leisure tourists.

“Both of these concerns have been addressed as yellow fever vaccination is now not required to visit Zambia and visa processing time (has now been reduced from three weeks to three days).”

Bali inbound travel fair urged to go big

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Tanah Lot, a rock formation, in Bali

INDONESIA’s tourism authority wants Bali and Beyond Travel Fair (BBTF) to grow from an inbound travel mart into an international marketplace by next year.

BBTF, which will take place from June 22 to 26 this year, was initially launched in 2014 to promote destinations in Indonesia using Bali as a gateway.

Speaking at the launch of BBTF 2016 last night, Arief Yahya, Indonesia’s minister of tourism, said: “I understand the organiser’s fear (of competition with international exhibitors), but trust me, the bigger and the more choices a marketplace offers, the more buyers will come and the busier the mart will be.

“These travel industry players need places to sell their products. If we do not provide the place, other countries will and that means a loss for us. Besides, many buyers are also sellers (as they do inbound and outbound businesses), so it is better for us to provide space for them here.”

The show last year generated 5.2 trillion rupiah (US$400 million) and is expected to generate 9.3 trillion rupiah this year.

According to Arief, “this is higher than the potential transaction Indonesia generated from ITB Berlin this year,” stating that ITB Berlin 2015 generated 4.2 trillion rupiah and grew to 6.5 trillion rupiah this year.

As such, the minister said BBTF was ready to open up for international travel suppliers and consolidators to come as sellers.

I Ketut Ardana, chairman of BBTF’s organising committee, said there were 309 buyers from 42 countries registered for this year’s fair as of yesterday, higher than the expected 275.