TTG Asia
Asia/Singapore Monday, 29th December 2025
Page 1899

JLL expects more hotel chain consolidation

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Tasos Kousloglou.

JONES Lang LaSalle (JLL) Hotels & Hospitality Group expects the Marriott-Starwood deal to herald more hotel chain consolidation in 2016, citing the increasing strength of OTAs and the emergence of disruptive companies such as Airbnb as key driving forces.

Tasos Kousloglou, executive vice president, Strategic Advisory & Asset Management, and president of Hospitality Asset Managers Association of Asia-Pacific, said: “Marriott’s announcement to acquire Starwood and create the largest hotel company could spur more M&As in the hotel industry and set a precedent for other groups to follow suit.”

Tony Ryan, hotel industry lawyer and soon-to-be managing director, Global Mergers & Acquisitions, said: “At JLL Hotels & Hospitality Group, we have identified local and international consolidation of hotel management companies as a key feature of the hotel landscape in 2016 and beyond. This development (Marriott-Starwood) confirms the intensity and magnitude of this potent trend.

“The hotel industry landscape has changed dramatically over the last few years, largely thanks to the arrival of powerful OTAs and sharing platforms such as Airbnb. The Marriott-Starwood deal responds to that trend by creating a truly global company with market-leading loyalty programmes and an eye-watering distribution platform across continents. Scale and growth are the drivers for this transaction so as to provide a compelling proposition to owners and guests and, at the same time, challenge the industry disruptors.”

Kousloglou pointed out that the hotel industry remained highly fragmented compared with other industries in the travel space such as OTAs, airlines or others such as technology that are normally dominated by fewer players.

“The merged hotel group dominates the upscale segment and gains a strong competitive advantage in marketing and distribution against other hotel companies. Its size also gives it a much stronger negotiation power with OTA giants such as Expedia. In addition, the increasing strength and consolidation of the OTAs, emergence of disruptive companies such as Airbnb and fewer opportunities for organic growth in certain hotel markets, are putting additional pressure on its competitors to consider inorganic growth in an effort to save costs, grow a pipeline of new hotels and loyalty customer base and attract talent.”

Kousloglou foresees that the scale and breadth of brands of the combined Marriott and Starwood company could prompt several other hotel groups such as Hilton, IHG, Accor, Hyatt and Fairmont Raffles joining forces either with each other, or with smaller operators to remain competitive.

[Sponsored post] Bali Tourism partners with IT&CM events for Singapore roadshow

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IN a first-ever partnership with IT&CM Events, Bali Tourism Promotion Board is reaching out to Singapore MICE buyers through a targeted roadshow that takes place on 18 November 2015, in Singapore.

Through this partnership, the Bali Tourism Promotion Board aims to connect with some 30 Singapore buyers comprising of Association Executives, MICE intermediaries, corporate incentive travel, destination buyers and decision makers to promote Bali as the ideal meeting destination for MICE activities.

The roadshow will spotlight Bali’s high MICE appeal and facilities through detailed presentations. Bali Tourism Board and their partnering representatives will be on-hand to participate in focused business discussions with buyers on their requirements for holding their next business event in Bali.

sponsored-post-bali-tourism-partners-with-itcm-events-for-singapore-roadshowSingapore-based buyers at the roadshow. Credit: TTG Asia

“Bali has hosted 168 international and domestic meetings, conferences, incentives and exhibitions, contributing to around 3.77 million foreign visitor arrivals in 2014; and approximately 3 million foreign visitor arrivals as of August 2015. The MICE industry in Bali is indeed very promising.

“Also, Bali has held some successful conferences and summits such as the notable United Nations Climate Change Conference and ASEAN Summit. The recent World Chinese Entrepreneur Congress in September 2015 has brought more than 3,000 delegates from around the world to Bali”, said Ida Bagus Ngurah Wijaya, Chairman of Bali Tourism Promotion Board.

Wijaya continued, “We are confident that IT&CM Events’ credibility and ability to deliver our targeted buyers from both the associations and greater MICE market via their extensive industry network will enable us to fulfil our objectives at this roadshow.”

Shangri-La to debut in Saudi Arabia

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THE first Shangri-La branded property in Saudi Arabia will be opening in the city of Jeddah in early 2018.

The Shangri-La, Jeddah, will be a 236-room hotel and 122-apartment serviced residences housed in a 65-storey mixed-use development on Jeddah Corniche Road.

Facilities include function areas totaling 2,118m², luxury spa and fitness areas, a swimming pool, children’s club and several lounges as well as four restaurants.

HK Express jets to Yangon and Mandalay

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HK EXPRESS will be launching four flights weekly to Yangon and two flights weekly to Mandalay on February 17 and February 21 respectively next year.

For Yangon, flights depart from Hong Kong at 18.05 and will arrive at 20.05 on Wednesdays. On Mondays, Fridays and Sundays, it will depart at 16.25 and arrive at 18.25.

Return flights will leave Yangon at 20.50 on Wednesdays and land in Hong Kong at 01.45 the following day. Meanwhile, on Mondays, Fridays and Sundays, return flights depart from Yangon at 19.10 and will land in Hong Kong at 23.55.

For Mandalay, flights will depart from Hong Kong at 12.05 and arrive in Mandalay at 14.05 on Wednesdays and Sundays. Return flights will be scheduled on the same days, leaving Mandalay at 15.10 and landing in Hong Kong at 19.35.

Additionally, HK Express is offering a special inaugural single trip fare of HKD$180 (US$23) to be booked on or before November 19 this year for flights on February 17 and 21, 2016 to March 26, 2016.

Zhengzhou promotes kung fu tourism

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IN KEEPING with its formidable reputation as the home of warrior monks, Zhengzhou, the capital of Henan province, is promoting kung fu tourism to attract martial art enthusiasts.

According to Zhengzhou Tourism Bureau’s vice general manager, Liu Xiao Fei, martial arts movies like The Shaolin Temple in 1982, which featured Jet Li, and the more recent 2011 film Shaolin, which starred Chinese stars like Andy Lau and action hero Jackie Chan, have sparked off international interest in kung fu tourism.

Liu said: “Although many international tourists still may not have even heard of Henan province, there is definitely more recognition with those movies. It is the hometown of Chinese kung fu and Shaolin has become a household name.

“Shaolin Temple is one of China’s most famous temples, and I know that learning kung fu there can be considered one of the top things to do in China because of its originality,” he added.

Tourists were welcomed to watch the students perform their daily kung fu show at the centre during CITM. Those keen to learn more about Chinese martial arts can opt for immersion programmes – which can last from a day to a year – that include meals and lodging.

Apart from the Shaolin Temple, Zhengzhou also boasts other scenic attractions including the Bodhidharma Cave and Pagoda Forest, which is a UNESCO World Heritage site.

While domestic travellers currently comprise 80 per cent of arrivals to the province, Zhengzhou Tourism Bureau is training its sights on international tourists by participating in more trade shows.

Expedia enters rail business

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EXPEDIA has signed up technology provider SilverRail, which will enable people to book train tickets on the OTA by next year.

Akin to its flight booking platform, the new service will offer options from multiple rail providers, according to Greg Schulze, senior vice president, global tour and transport at Expedia.

“The growth of rail, and the significant business opportunity it presents, is a trend we can no longer neglect; we look forward to begin selling rail tickets and learning more about the nuances of this unique product,” he added.

Japanese cancel trips to France

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TRAVEL agencies in Japan have received cancellations on a number of tours to France in the aftermath of last Friday’s terrorist attacks in Paris.

JTB has cancelled all tours that were scheduled to depart between Saturday and Monday, affecting about 500 clients, said company spokesman Motohisa Tachikawa. Meanwhile, travellers booked on tours departing between Tuesday and Friday this week have been given the option to cancel their holidays with no charge.

“Paris is one of the most popular destinations in Europe for our clients so we are watching to see how this affects client numbers,” he added. “One measure we have taken is to offer clients who no longer want to go to Paris alternative destinations in Europe, such as Italy, Norway or Germany.”

H.I.S. similarly permitted customers to cancel their vacations scheduled to depart on Saturday and Monday for free.

Japan Airlines (JAL) and All Nippon Airways (ANA) have similarly reported a significant number of cancellations from both business and leisure travellers.

“We estimate that our load factor is down around 20 per cent, with some passengers changing their schedules and others simply cancelling their flights,” Jian Yang, of JAL’s public relations office, told TTG Asia e-Daily. “We are monitoring the situation, but it is not clear at this point whether there will be a longer-term impact on our flights to Paris.”

ANA also reported its load factor was down around 30 per cent.

New World Langfang Hotel gets new GM

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NEW World Hotels & Resorts has appointed Tony Chick as the new general manager of New World Langfang Hotel, set to open in late 2016.

Chick was most recently the resident manager of New World Beijing Hotel where he played a role in the successful opening of that hotel.

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Tony Chick.

Prior to that, he was part of the opening teams of BC Hotel & Residence in Beijing and East Beijing. Chick also worked at East Hong Kong and Hyatt Regency Tianjin as well as having held various positions at Shangri-La Hotels & Resorts and The Regent Hong Kong.

Sail away with the game changers

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Asian cruise agents are spoilt for choice in 2016/2017 as cruise companies unleash new-gen ships, debut at exotic ports and unveil new innovations.

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Royal Caribbean’s Quantum of the Seas

COSTA CRUISES
China is set to become a focal point for Costa Cruises as the Italian cruise line has unveiled plans to introduce sister brands, Carnival Cruise Line and AIDA Cruises, to the Middle Kingdom come 2017.

Furthermore, when Costa Fortuna becomes Costa Cruises’ fourth ship to be deployed to China in April 2016, it will boost capacity in the region by 49 per cent.

Homeported in Shanghai, Costa Fortuna will visit various popular port cities in North Asia, including Fukuoka, Kagoshima and Nagasaki in Japan, plus Incheon, Jeju and Busan in South Korea.

The 1,358-cabin ship is equipped with four restaurants, 11 bars and a 1,300m2 wellness centre, in addition to such recreational facilities as a theatre on three levels, casino, water slide, shopping centre, library and disco.

Also known as “The Museum at Sea”, Costa Fortuna features close to 5,000 world masterpieces and antiques, and is filled with exhibits and decor that hark back to its Italian seafaring traditions.

“In addition, we will launch a 46-day trans-Pacific cruise with Costa Atlantica on November 30, 2016 from Tianjin, bringing guests to explore various islands in the Pacific and Oceania,” a Costa Crociere spokesperson told TTG Asia.

CRYSTAL CRUISES
The luxury cruise line this month launches the all-inclusive Crystal Yacht Cruises, fielding the new Crystal Esprit with just 31 suites, personal butlers, Michelin star-level cuisine and even a private submersible.

20-nov-crystal-symphony-cs_antarctica_cmykThe 3,000-ton yacht’s maiden seven-day voyage will explore the Seychelles when it sets sail on December 23, 2015, ending with an inclusive, post-cruise New Year’s Eve celebration at the Taj Dubai Hotel.

“The overnight package in Dubai for the New Year is a fantastic addition for the Christmas/New Year’s Seychelles voyage. We’ve included this as most clients will be using commercial air via Dubai, but if guests are using their own private jet to join us and prefer not to avail of the overnight adventure, we will offer a tour credit,” said Marnie Whipple-Tarsinos, regional sales manager Asia-Pacific, Crystal Cruises.

Come 2017, Crystal will enter into river cruising with Crystal River Cruises, bringing its all-inclusive service onto the waterways.

Crystal Luxury Air will also mark the company’s foray into air travel on board a specially configured Dreamliner, which flies 60 guests in fully reclining business class seats to destinations where major airlines do not offer nonstop service.

New parent Genting Hong Kong has also just bought Lloyd Werft, a shipyard in Bremerhaven, Germany, with which it earlier this year signed a letter of intent to build Crystal’s Exclusive Class ocean vessels, which are polar class cruise ships expected to debut in late 2018.

CUNARD
Travel agents can look forward to new designs and experiences on Queen Mary 2, the world’s biggest ocean liner and the only cruise ship with regular transatlantic service between New York and its homeport in UK’s Southampton, following a 25-day dry dock refurbishment from May 27 to June 21, 2016.

Richard Meadows, president, North America, Cunard, said: “Guests will enjoy new designs and experiences that reflect the changing needs of today’s passengers, including 15 Single Staterooms, 30 additional Britannia Club Balcony Staterooms, and an expansion to the ship’s dedicated kennels.”

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Cunard’s Queen Mary 2

While the Single Stateroom supports passengers travelling alone, the Britannia Club Balcony Staterooms offer flexibility in dining arrangements, allowing guests to dine at a time of their own choosing. As well, Queen Mary 2 will be the only cruise liner in the world to offer dedicated kennels, carrying up to 12 dogs and cats.

Another bright spot will be Cunard’s 2017 World Cruise Programme, as the global ocean line has planned five calls to ports that none of its three ships – Queen Mary 2, Queen Elizabeth and Queen Victoria – have ever visited before.

“Queen Victoria will visit South America, venturing into the Amazon River for a five-night exploration, which will not only be a first for the current Cunard fleet, but will also break the record for the largest cruise ship ever to transit the Amazon. Queen Mary 2 will also sail a unique set of round-trip voyages including full round-trip New York, as well as Hong Kong and Shanghai sailings,” said Meadows.

NORWEGIAN CRUISE LINE
Norwegian Cruise Line (NCL) will return to Asia and Australia for the first time next year since Norwegian Wind Fall/Winter 2001-2002.

According to William Harber, NCL’s senior vice president & managing director Asia, there will be new ports to choose from in 2016 and 2017, including cruises to Asia onboard the Norwegian Star, with itineraries departing from Istanbul, Dubai, Singapore, Hong Kong, Sydney and Auckland, and first-ever visits to The Gulf and India.

In 2017, the company will introduce a purpose-built ship customised for the China market, which NCL’s CEO Frank Del Rio hopes will be a game-changer. “Our new purpose-built ship for China will have characteristics that are authentic to (NCL) and yet distinctively Chinese in all of its sensibility. With this new ship, we will introduce a new standard of innovation and excellence into the marketplace, with an unrivalled level of customisation for the Chinese consumer.  It will perfectly suit what modern Chinese travellers value from an upscale cruise experience.”

The new ship will be the second of NCL’s Breakaway Plus class and will feature the line’s Freestyle Cruising concept. With a capacity of 4,200 guests, it will provide the same sense of freedom and flexibility found on all NCL ships, but with experiences and amenities designed specifically with the Chinese guest in mind.

PRINCESS CRUISES
Princess Cruises will base a new ship, Majestic Princess, in China year-round, beginning in summer 2017. The ship, which is being built now, will incorporate a blend of international and Chinese features.

Homeported in Shanghai, carrying 3,560 guests on cruises to Japan and South Korea, the 143,000-ton vessel’s innovations will include a dramatic multistorey atrium serving as the social hub of the ship; a unique over-the-ocean SeaWalk (a glass-floor walkway extending 8m beyond the edge of the ship; the Princess Live! interactive studio; and Chef’s Table Lumiere, a private dining experience

that surrounds guests in a curtain of light. The ship will also offer Princess’ signature Movies Under the Stars, with the largest outdoor screen at sea, and Princess Watercolor Fantasy fountain and light show.

“We’re excited that Shanghai will be welcoming this newest, most advanced addition to the Princess fleet, as it represents our brand’s long-term commitment to the continuing growth of the China market,” said Jan Swartz, president, Princess Cruises.

Meanwhile, Princess Cruises has sealed several partnerships to enhance onboard experiences. This includes a multi-year agreement with three-time Oscar-winner and composer of Wicked, Pippin and Godspell, Stephen Schwartz, who will oversee the creative development of four new musicals to debut across its fleet over the next few years.

As well, in partnership with Australia’s celebrity chef Curtis Stone, the cruise line has unveiled SHARE by Curtis Stone, his first restaurant at sea. SHARE is scheduled to debut aboard Ruby Princess and Emerald Princess this December.

And travel agencies with clients who love to sing can entice them with The Voice of the Ocean. As with the popular international singing competition, The Voice, the show comes to life throughout the cruise with auditions, mentor rehearsal sessions, the iconic spinning chairs, three charismatic team coaches and a live finale performance where guests choose the winner.

ROYAL CARIBBEAN INTERNATIONAL
Look out for Ovation of the Seas, a Quantum Class vessel that is being built in Germany, and is particularly exciting for Sean Treacy, Royal Caribbean International’s (RCI) managing director Singapore and South-east Asia, “because it is the first new-build ship to come straight to Asia for our brand. Its sister ship Quantum of the Seas is fairly new too, but it spent a season in New York before coming to Asia”.

With a capacity of over 4,000 passengers, the ship’s fun facilities include the RipCord by iFly air machine that lets your clients soar in a safe, controlled environment and the North Star capsule that ascends over 91m above sea level. There are also more family-friendly interconnected modular staterooms and venues that transform throughout the day to serve different purposes.

Ovation of the Seas will kick off its inaugural season from Southampton in April, offering several European cruises before journeying to Asia. Ports of call along the way include Aqaba, Muscat, Cochin, Penang, Singapore, Ho Chi Minh City, Hong Kong, Xiamen and Seoul. Three-night round-trip cruises from Singapore to Port Klang will also be offered, as will two New Zealand cruises from Sydney on December 15, 2016 (15 nights) and Jan 9, 2017 (14 nights).

Further afield, Harmony of the Seas, an Oasis Class ship, which is also under construction currently, will begin its maiden journey in May 2016. Based out of Barcelona, the ship will offer cruises around Europe and the Caribbean. Innovations include robotic bartenders and a wonderland of slides, water cannons and waterfalls to keep children busy.

Meanwhile, Royal Caribbean has increased the frequency of sailings from Singapore to over 40 a year, by deploying its 3,807-guest Mariner of the Seas from October to early April next year.

The deployment of more cruise programmes in Asia through Ovation of the Seas and Mariner of the Seas helps to attract first-time cruisers, Treacy said.

“We have noticed around the world that a lot of first-time cruisers like to stay close to home. Our programmes out of Singapore allow these first-timers to sample the cruise product and still stay close to home,” he explained, adding that thematic cruises are instrumental in getting new customers onboard.

Mariner of the Seas will host RCI’s first cosplay-themed cruise. Cosfest at Sea will set sail January 8, 2016 from Singapore to Port Klang over three nights. Treacy expects demand to come from all over the Asian region.

SILVERSEA CRUISES
A new flagship, Silver Muse, described by Silversea Cruises’ regional director-Asia as a game-changer in luxury cruise concept, will sail the seas in April 2017.

Built by Italian shipbuilding company Fincantieri, the 40,000-ton ship will accommodate 596 guests in spacious all-suite cabins.

The addition of the Silver Muse will expand Silversea’s fleet to nine. Additional details and specifications of the new ship will be announced in the near future.

Meanwhile, travel agents can cast their eye on the Silver Discoverer which will visit Bangladesh in 2017 – a first in the luxury segment, according to Yap.

Although the Bangladesh sailing, which has not been officially published, will only depart in February 2017, 50 bookings on it have been made “just by talking to our regular guests”, said Yap, adding: “There is a hunger for new destinations.”

STAR CRUISES
Genting Hong Kong is anticipating the arrival of its first of two newly-built mega cruise ships, scheduled to be homeported in Asia in fall 2016.

The new class of ships expands its fleet in Asia to meet growing demand across the region, said Ang Moo Lim, executive vice president of sales, marketing & hotels, Genting Hong Kong.

Travel agents can expect innovations such as “a shopping paradise at sea”, as Ang put it, a mammoth 1,000m2 of designated retail lifestyle shops featuring international luxury brands.

The new ships will also be outfitted with state-of-the-art deep-sea submersibles for guests to gain new perspectives of rich undersea landscapes and wildlife.

“To further strengthen the Star Cruises brand and offerings in North Asia in 2016, Star Cruises will also review the possibility of expanding its homeport footprint to new destinations such as to the Pearl River Delta in China,” she added.

Innovations last year included Beatship, a revolutionary series of beach club parties taking place aboard Superstar Virgo’s newly-renovated nightclub, ACES, to attract a younger, more lifestyle driven group of guests. Featuring world-class DJs and performers, Beatship has been an unqualified success in bringing this new segment on board its ships and through collaborations with international club brands such as Zouk. Beatship is ongoing in 2016.


RIVER CRUISES

AQUA EXPEDITIONS
A collection of new bespoke excursions by the Aqua Mekong has been launched. Offering nine-to-five adventure, they take guests to undiscovered areas of the river to enjoy experiences unlike any other found along the Mekong River, according to Aqua Expeditions.

“The latest experiences to be added to the Mekong itinerary truly embrace the Cambodian and Vietnamese cultures, and allow guests to really immerse themselves into the local environment and experience a different way of life at their own pace,” a spokesman said.

For example, to explore parts of the river not accessible by larger vessels, guests will climb aboard Aqua Mekong’s private skiffs and paddle through floating markets, where more than 400 sampans gather every day, starting in earnest from 05.00. Guests can continue their day adventures by bicycle or local rickshaw ride for more up-close encounters with Mekong River inhabitants.

The 20-suite Aqua Mekong departs weekly from either Ho Chi Minh City, Siem Reap or Phnom Penh, and itineraries are available for three, four or seven nights.

The whole vessel can also be chartered.

PANDAW
The company has unveiled a new seven-night river recce itinerary on the Upper Mekong River sailing from Thailand’s river port town of Chiang Saen through Myanmar and Laos, and will – for the first time – cross the border into China to the city of Jinghong in Yunnan Province.

20-nov-laos-pandaw_cmykPandaw’s founder, Paul Strachan, said: “It has been a long-held dream to sail the length of the navigable sections of the Mekong River; now we can. There is much to explore in this undiscovered region; travellers need to be up for a real adventure as the daily itinerary might change, but with a flexible attitude, they will have the adventure of a lifetime.”

The recces will sail aboard the 20-pax Laos Pandaw, specifically designed and built for sailing on the Upper Mekong with 10 main deck staterooms, low draught and extra powerful engines.

Pandaw also operates cruises in Myanmar, Laos, Cambodia, Vietnam and India.

UNIWORLD BOUTIQUE RIVER CRUISES
Uniworld Boutique River Cruises goes to Asia with a 12-night sailing through India’s most popular destinations and its sacred river, the Ganges, beginning 2016.

The India’s Golden Triangle & the Sacred Ganges tour begins in New Delhi and ends in Kolkata on the new all-suite Ganges Voyager II. The ship has a maximum capacity of 56 guests.

The itinerary covers Delhi, Jaipur, Mother Teresa’s 20-nov-ganges-voyager-ship-india-uwgveastindiadiningroomperspective31_cmyktomb and former home in Kolkata, a Vedic temple in Mayapur, and fully hosted excursions to five UNESCO World Heritage sites including Delhi’s Red Fort and Humayun’s Tomb, Agra’s Taj Mahal and Agra Fort, and Jaipur’s Jantar Mantar.

Guests will stay at Oberoi Hotels and Resorts Collection in New Delhi, Agra and Jaipur during the five-day land portion of the itinerary.

Travellers can also opt for a two-night extension to the holy city of Varanasi, known in India as the holiest spot on its holiest river.


This article was first published in TTG Asia, November 13, 2015 issue, on page 16. To read more, please view our digital edition or click here to subscribe.

Additional reporting from Karen Yue, Xinyi Liang-Pholsena, S Puvaneswary

A new breed of road warriors

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As millennials join the workplace in droves, the different travel patterns and desires of this new generation are also changing the face of business travel.

20-nov-26495967_cmykMillennials are quickly becoming a force to be reckoned with. Currently in their 20s and early 30s, these tech-savvy digital natives are expected to account for nearly half of the workforce by 2020, bringing with them vastly different travel habits and preferences from previous generations.

According to new study by GBTA, millennials are more likely to want to travel for business than baby boomers (45 per cent vs 26 per cent respectively).

On the road, this mobile-first generation care more about having access to Wi-Fi at airports and hotels, express a greater preference for using corporate cards over personal ones, and more likely to use social networking for a variety of purposes than their older cohorts.

At the same time, the rising appeal of the sharing economy has caught the eye of the millennial business traveller as an alternative mode of accommodation, sources revealed.

A rapidly changing workforce dynamic
Kevin O’Sullivan, CEO of travel technology provider Open Destinations, said: “What we have seen with our clients is a shift in their customers’ booking patterns. The millennials want hotel properties that are more casual and offer amenities like in-room music entertainment, free Wi-Fi and an environment that reflects their lifestyle.

“Many (millennial) customers expect their business travel to mirror their personal travel experience,” he added.

General manager of FCm Travel Solutions, Bertrand Saillet, remarked: “Millennials today are familiar with alternative options like Airbnb, which are appealing because they offer local experience and interaction when staying within the community.

“The different characteristics of the millennials obviously pose some challenges to companies, but also present opportunities to make travel policies more relevant,” Saillet said, urging companies to adopt greater flexibility in their corporate travel policies as millennial employees increasingly look towards vacation rentals as accommodation choices.

He added: “Companies must acknowledge that the sharing economy is here to stay. There is a need to move away from the traditional format of preferred hotels and airlines and consider flexibility.”

Alvan Aiau, vice president, global sales & program management, Asia-Pacific at Carlson Wagonlit Travel, agreed: “Sharing economy services are likely to gain in popularity, and what we see now is just the beginning. Whether they like it or not, companies should be mindful that corporate travellers are probably already using these services.

“Whether or not companies are comfortable integrating sharing economy offerings into their programmes ultimately depends on their culture. The more traditional, risk-averse companies may decide that the risks outweigh the benefits,” added Aiau.

Capturing the business and loyalty of a new generation
In June this year, Airbnb expanded its Business Travel programme to start a worldwide roll-out of tools that will make it easier for companies to book accommodation for business trips through the short-term room rental service.

The expansion of these tools brings Airbnb closer in line with the traditional hotels, as it helps to promote their service as a viable alternative for business travellers. For instance, this new suite of tools provides visibility into employee travel itineraries and help track financial data to improve the business travel experience for travellers and travel managers.

Chip Conley, head of hospitality, Airbnb, said: “Airbnb offers inspired spaces in memorable places to make the most of any type of travel. Nearly 10 per cent of Airbnb’s customers already travel for business and we have heard from customers that this type of offering is high on their wish list.”

According to Conley, Airbnb for Business is “gaining a lot of traction”, and there are over 1,000 businesses including Google and SoundCloud in more than 35 countries which have signed up to use its business service.

Meanwhile, Airbnb’s business travel tools have found takers, particularly from the technology sector.

Darragh Ormsby, global travel manager of Google, said: “Our employees worldwide appreciate the choice and flexibility that Airbnb listings provide them when they are on the road – whether for conferences, meetings, or team offsites.”

Kelly Cammer, travel manager for Twilio, said: “Not only are we able to get better insights into how and when our employees are using Airbnb, but travellers are able to choose a place that feels like home at a price that fits our travel budgets (as well).”

Skepticism, challenges remain
However, TMCs and corporate travel managers do not entirely trust the sharing economy when it comes to meeting corporate travel criteria.

FCm’s Saillet noted that the majority of companies are not looking to change policies yet. “Most companies continue to stick with standard travel policies focusing on cost control and working with traditional providers. So far, companies have put in some effort and work with their partners to upgrade their technology without a real shift in paradigm,” he said.

“Clearly, there is more that can be done to tailor their travel policy to strike a balance between flexibility, accountability and safety of the employee,” he added.

Amarnath Lal Das, general manager, India Travel, Accenture, said: “To meet corporate travel requirements, certain standards need to be met. The big challenge we have seen with the corporate (sector) is data security and privacy.”

While Airbnb has come up with various categories of accommodations, they are not integrated into GDSs, said Lal Das. “You have got to integrate it with your programme. Integrating their technology and ours can be a challenge.

“In the meantime, while we are not officially open to (the shared economy providers), we do allow people to use with some do’s and don’ts,” he added.

To aid companies on this front, Simon Akeroyd, vice president, corporate strategy and business development, Amadeus Asia-Pacific, said: “The key is collaboration across the industry and an openness to doing things differently. While not all sharing economy content would fit into our distribution business, there is a great opportunity to cooperate – be it with these new players expanding our online travel accommodation offers or them potentially becoming new distributors of our already existing GDS content.”

While Amadeus does not currently collaborate with Airbnb, Akeroyd said the company is “leading this charge” through partnerships with players in the same space such as BookingPal, a distribution and booking platform for vacation rental properties.

By plying to the travel preferences of this millennial generation, companies will be able to build their travel programmes into a staff retention strategy as well, and that reaps more benefits for the companies in the long run, said FCm Travel Solutions’ Saillet.

He said: “With so much online activity and the millennial travellers leaving a massive cyber trail, there are opportunities for suppliers to use the big data available to track traveller patterns and predict their needs to provide the best travel solution that meets their expectations.”

Additional reporting from Mimi Hudoyo