An appetite for luxury
Australia
Australians are satisfying their luxury travel needs with domestic getaways that were traditionally glossed over in favour of overseas experiences.
They are also getting used to a different kind of luxury than they were accustomed to – one that is more rustic and often defined by the remoteness of the location.
“Luxury in Australia is different to staying in a magnificent hotel in the centre of Paris, for example,” said Claudia Rossi Hudson, owner of Mary Rossi Travel.
“This is because the experience or the definition of luxury that we can give in Australia includes the tyranny of distance. So, you might be staying in Lizard Island where the lodges are very comfortable but they are not gilt taps and marble floors.”
“(Instead) they are luxury on a lodge that is on an island, an hour and a half’s flight in a private aircraft from the nearest international airport. There are no local food sources and it’s expensive to stay there. And when you’re there, you realise that the luxury element is its uniqueness and remoteness, and the fact that you had that entire beach practically all to yourself and that portion of the Great Barrier Reef,” she explained.
Luxury travel agents are also finding that Australian preferences are quite different to those of the international visitor, desiring locations with dramatic landscapes over local wildlife and city experiences.
“The Kimberley in Western Australia is incredibly popular,” said Kirsty Siekmann, CEO at The Tailor. “International clients would come to Australia with a lot of boxes to tick but Australian clients are doing two weeks just exploring that region.”
“Demand is very strong as they have the dry and warmer season so along with Queensland and much of the Top End, their bookings are completely full this year,” she continued.
Also popular are five-day safari trips in the north, food and wine region visits, treks in the Flinders Ranges, and a breathtaking journey and dining experience on The Ghan.
However, the trend is expected to turn at the end of the year when the summer heat pushes domestic tourists to Australia’s cooler southern parts. Seikmann projects that travel bookings for Margaret River, Tasmania, and Victoria will skyrocket, following patterns from last year. – Adelaine Ng
India
While India’s wealthy were able to explore the world inlate-2020 and early part of 2021, their travel freedom was curtailed when a second wave of Covid-19 infections swept across the country this April.
Indian travel consultants dealt with numerous cancellations, triggered by international destinations slapping entry bans on travellers from India.
Summer 2021 was supposed to be a good travel season but with infections still raging in India, outbound travel possibilities and demand continue to be suppressed.
Prior to the latest cancellations, Luxe Escape had clients who booked a month-long stay in London and private jets to Dubai, shared founder Aditya Tyagi.
Demand for summer breaks in the Maldives hit its peak for Tour Passion, said founder Naveen Manchanda, before Covid-19 returned to wreck bookings.
“We also had good enqueries for Europe for high-end cruises and experiences like spa and (dining). However, the second pandemic wave changed the entire scenario,” said Manchanda.
Hopes are now pinned on 2022.
Tyagi said: “Most of our clients are now desperate to travel out of India. We already have a small VVIP group request to Saint Tropez, and demand for destinations like Greece, Italy, France, Spain and Nordic countries (are back).”
When outbound travel is once again possible, Tyagi said clients would be drawn to small luxury boutique hotels where mingling with other people could be avoided.
Wellness tourism would also be top of mind amond India’s well-heeled.
“Wellness retreats in Europe and South-east Asia will be high in demand in 2022. Luxury travellers will opt for longer stays in an absolutely safe environment,” said Ajay Jaipuria, founder, Travel Oyster India.
Echoing the prediction, Tyagi has crafted a week-long yoga cruise in Croatia, led by a yoga master who will also conduct other wellness programme onboard.
In fact, Tyagi is so confident in the potential of post-pandemic wellness tourism that he has launched a new brand, Well Escapes. – Rohit Kaul
Japan
Japan’s wealthy consumers are likely to spend on domestic jaunts rather than overseas trips in the coming months amid a slow Covid-19 vaccine roll-out and government advice to avoid “unnecessary and non-urgent” travel abroad.
Luxury travel providers are expecting an uptick in sales for the rest of 2021 based on consumer sentiment and behaviour since the outbreak.
Makarim Salman, founder and lead guide of high-end private tour company Maction Planet, anticipates further growth in domestic travel “from autumn 2021, once the Olympics is over and more people have been vaccinated”.His high-end hotel partners in Kyoto are already reporting full bookings for autumn.
Private suites or remote locations that can accommodate greater social distancing are likely to be a hit.
Hoshino Resorts is also anticipating growth in micro-tourism, which involves travel within an hour’s drive from home. In 2020, the luxury hotelier enjoyed 90 per cent occupancy at its Kai Enshu in Shizuoka Prefecture, where 60 per cent of guests were locals keen to experience the renowned tea baths and tea fields.
According to credit card company Luxury Card, suite room occupancy in Japan in 2020 was more than five times higher than in 2019.
In anticipation of more business, hotels are being bullish with openings and renovations. Hotel the Mitsui Kyoto, adjacent to Nijo Castle, opened in late-2020 with a Presidential Suite costing 1.3 million yen (US$ 11,723) per pax per night. Shiroyama Hotel Kagoshima opened its 200m2 Imperial Suite, which offers stunning views of active volcano Mount Sakurajima and costs 1.1 million yen per night.
Private jet bookings are expected to soar too, as luxury domestic travel demand improves. In June 2021, Matsuzakaya Nagoya Travel Center and ANA Business Jet began offering trips from Nagoya International Airport to Niseko, Hokkaido, and Nagasaki, Kyushu, for two million yen per person for a booking for four passengers.
Takayuki Suzuki, representative of Matsuzakaya Nagoya Travel Center, told TTG Asia that “sales are strong among the wealthy at the moment” while ANA Business Jet’s president Jun Katagiri said wealthy travellers are choosing private flights because of their low infection risk.
Due to limited travel since the outbreak of the pandemic, Salman also predicts splurges by middle and upper-middle class consumers on luxury travel products, giving a further boost to Japan’s high-end sector. – Kathryn Wortley
Singapore
Bespoke itineraries and exclusive destinations that allow for privacy and space, slow travel and are family-oriented constitute luxury travel trends in 2021 and 2022 for the Singapore market, according to four specialist travel operators.
Nico Heath, co-founder and director of Lightfoot Travel, explained: “The first is a desire for private islands and private island resorts. The Maldives, where each resort is on its own island and you are whisked from airport to resort immediately after landing, has been exceptionally popular. Once airlines start running routes more regularly, there has also been an upswing in interest in more far-flung destinations such as Fiji and French Polynesia.”
An uptick in private jet holidays also arose due to the desire to reduce risk by avoiding commercial air travel.
“There’s a shift to slower travel options and more in-depth travel instead of hopping around to see as much as possible within a certain amount of time,” observed Mike Harlow, general manager for Scott Dunn Asia.
Think single destination country, or keeping inter-country travel to a minimum, according to co-founder and managing director of Quotient TravelPlanner, Javiny Lim.
Harlow noticed that East Asia remains top choice as it is still closer to home while offering a wide variety of experiences which can be done in a single location.
Heath observed the desire for road trips as they give travellers greater freedom, the ability to slow the pace of their journey, and with a lot less risk.
Rugged landscapes and the freedom to go on long driving journeys in expansive destinations, such as New Zealand and Ireland, are of interest to luxury travellers in Singapore, Lim added.
“Travellers are more willing to explore deeper at a destination and want to be wowed by extraordinary experiences on their holiday, from astounding nature to award-winning architecture to exclusive interactions with esteemed custodians.”
Locations like Antarctica and the Galapagos Islands with unsurpassed natural beauty and native wildlife continue to be a draw in 2021 and beyond.
Besides, there is also robust demand for family holidays and private villas to house the extended family in destinations such as Sri Lanka, Thailand, Italy and Greece in 2022. African safaris are popular with families with older children.
It comes as no surprise that affluent travellers are prioritising safety, and are willing to pay more for hygiene reassurances and preferring the flexibility to amend their travel plans with zero or minimum penalty.
Founder and director of Intriq Journey, Jess Yap, said: “Guests are starting to enquire and book for luxury travel for last quarter of this year and into 2022. For instance, we have a small group journey that is departing to Saudi Arabia in December 2021. We also have some bookings to Antarctica for the year-end.” – Serene Foo
Thailand
An unusual luxury travel trend is emerging in Thailand, where – despite having more complex post-pandemic travel procedures to grapple with – billionaires are choosing to skip assistance from travel agencies to achieve utmost privacy for their holidays.
Anake Srishevachart, president of UniThai Trip, said an increasing number of high net worth customers are choosing to book their own private jet and charter resorts on their own. For those who have continued to rely on travel agents to customise travel packages for family or friends, resorts that are exclusive to members are favoured.
Anake said: “The pandemic has taught well-heeled people to change their lifestyle and leisure activities. Many now value even more true exclusivity and privacy during their trips.”
However, a complete departure from travel agencies is not possible when special interest trips need to be made, such as vaccination tours.
Outbound travel specialists in Thailand that are still retaining luxury accounts say destinations close by are in favour, such as places within Thailand or Singapore and Hong Kong in South-east Asia.
Industry veteran Pornthip Hirankate said Thailand’s own Phuket and Phi Phi islands are attracting many Thai residents with spending power.
Den Mahavansanandana, managing director of Inspirit Holidays, said exclusive tours to Singapore, Laos, Cambodia and Bali are selling well, while there is also demand for parts of Europe. He believes that governments will be watching how Thailand conducts her Phuket Sandbox tourism reopening. If done well, governments will gain confidence to welcome Thai residents into their own country. – Suchat Sritama
Hong Kong tourism starts to make a comeback, but recovery still far off
Hong Kong’s tourism industry is showing tentative signs of revival, with the country’s successful containment of the Covid-19 pandemic and the national vaccine rollout gaining steam.
As of August 3, Hong Kong has seen a 57-day streak of zero locally transmitted Covid-19 cases. Meanwhile, nearly 50 per cent of the city’s population has received their first vaccine dose.
Cruise operations in Hong Kong have restarted with more than 1,000 passengers joining Genting Dream’s inaugural voyage on July 30. Meanwhile, the EU has put the city in a safe list with some states allowing quarantine-free travel for vaccinated Hong Kong visitors.
Nearly 18 months after the pandemic halted inbound and outbound travel, homegrown agency Miramar Travel has resumed its outbound business by sending its first small private group tour to Germany on a 10-day trip last month, shared general manager Alex Lee.
Members of the group had their quarantine period shorten from 14 to seven days, with the presentation of a positive serology antibody test, he added.
Lee shared that people love travelling to longhaul destinations, especially to quarantine-free places. “We have received enquiries on itineraries longer than 20 days – most of them are from retired civil servants who used to travel several times a year but got stuck (in Hong Kong) for the last 1.5 years so the demand is there. It’s a sort of ‘revenge travel’,” he said.
“This segment will be our target from the outset as they have money and time to spend. As long as we sort out routes and prices, they are ready to go.”
Small group travel and mono-destination trips are also gaining popularity among travellers, observed Lee. “Our clients prefer not to travel with someone whom they don’t know in a tour group,” he said.
As well, more travellers are seeking out boutique hotels and countryside itineraries over city breaks and five-star properties, according to Lee. He also noted that these new preferences mean clients would have to fork out 30 per cent more than the usual tour prices.
“Thankfully, our suppliers in Europe could deploy a smaller, 15-19-seater coach to accommodate (smaller tour groups),” he said, adding that this vehicle type was not utilised for group tours in Europe until growing demand surfaced among mainland Chinese travellers for private group travel in the continent a few years ago.
Predictions on travel recovery were mixed among outbound operators in Hong Kong.
Regina Mak, general manager of Jointwell Holidays which specialises in European itineraries for small groups, told TTG Asia: “The pent-up demand will drive the rebound and consumers accept the fact that new travel patterns mean higher costs in terms of airfare, hotels, tour guide and coaches.”
However, Hong Kong Outbound Tour Operators’ Association chairman, Johnny So, opined that Hong Kongers would be deterred from travelling unless they were exempted from quarantine upon their return home.
“What’s more, international flight connection is still limited and some destinations are no longer covered,” he said, adding that people may also shun travel due to the spread of the highly contagious Delta variant.
So further said that the only hope for the revival of tourism in Hong Kong is for the city to reopen its borders to China as mainland Chinese travellers are the “bread and butter of inbound and outbound travel business”.
Inbound-wise, there is no light at the end of the tunnel yet, especially with the government announcing that it will tighten border control measures for inbound travellers from August 9, in view of recent imported Delta variant cases.
Hong Kong Association of Travel Agents consultant, Richard Willis, pointed out that within the sector, inbound business has been the most severely impacted, with several roadblocks laying in its path to recovery.
He elaborated: “As most recent Covid-19 cases are imported, the government remains very cautiously (about border controls). We have a strict quarantine rule so if we want to reactivate inbound traffic in future, there is a need to recognise some vaccine passports.”
He also noted that a lot of longhaul visitors to Hong Kong opt to travel to multiple destinations within the region, so travel restrictions in other parts of Asia will impact inbound demand. For short-haul, the main deterrent to travel to Hong Kong is that travellers have to serve quarantine upon return to their home countries. Hence, the key to stimulate tourism will depend on the loosening of quarantine rules imposed by governments.
Willis said: “The pent-up demand is there and I see that Asians in particular want to travel. However, there is still too much uncertainty at this point in time and people generally want to travel in their own region for now. We hope that borders will reopen soon – not just Hong Kong’s but also those within the region, as lots of people take multi-destination trips.”
Thailand on track to reopen Krabi and Phang Nga to vaccinated foreign tourists from mid-August
The Tourism Authority of Thailand (TAT) has confirmed plans to reopen Krabi and Phang Nga to fully vaccinated international tourists are set to start within this month.
Krabi and Phang Nga are scheduled to reopen selected areas under a 7+7 model. This will allow foreign tourists under the Sandbox programme to reduce the mandatory stay in Phuket from 14 to seven days, after which another seven nights can be spent in Krabi (Ko Phi Phi, Ko Ngai, and Railay Beach), and Phang Nga (Khao Lak and Ko Yao).
The 7+7 model aims to provide international tourists with more options to visit multiple destinations during their trip to Thailand. Krabi and Phang Nga are ideal for this given their proximity to and ease of access from Phuket.
At the same time, TAT also reiterated that both the Phuket Sandbox and Samui Plus programmes are going ahead as usual.
Thanakorn Wangboonkongchana, spokesperson of the Centre for Economic Situation Administration, said Thailand’s prime minister Prayut Chan-o-cha had been keeping a close watch on the Phuket Sandbox and Samui Plus programmes, and voiced confidence that the country’s reopening plan could proceed in a way that ensures the health and safety of both the tourists and local people.
TAT said that the new Covid-19 cases in Phuket were mostly detected among locals, construction camp workers and domestic travellers; with only a small number of cases found among international arrivals.
From July 1 until August 1, Phuket recorded 14,910 international arrivals under the Sandbox programme. Of these, 34 tested positive for Covid-19 and had been sent for medical treatment. To contain local transmission, Phuket has stepped up screening measures on domestic travellers, effective from August 3-16.
Phuket, Krabi, and Phang Nga are declared among the 11 Controlled Areas or orange zone provinces in Thailand’s expansion of the Covid-19 restrictions from August 3-31.
Meanwhile, the recently-reported 54 new cases on Koh Samui from a restaurant cluster has been brought under control, TAT said, adding that none of the infections were related to foreign tourists under the Samui Plus scheme or those who continued their journey from the Phuket Sandbox programme.
From July 15 to August 1, Surat Thani recorded 137 international arrivals under the Samui Plus programme, with one person testing positive for Covid-19. In addition, there were 211 tourists from the Phuket Sandbox programme. Surat Thani has since stepped up virus control measures.
IHG signs Holiday Inn & Suites in Ballarat
A 110-key Holiday Inn & Suites branded property is coming to Ballarat, heralding a new chapter in IHG Hotels & Resorts’ expansion into regional Victoria and a new partnership with hotel owners, Forte Group.
Expected to open in 2024, Holiday Inn & Suites Ballarat Goldfields will offer 400m² of flexible meeting space including a large ballroom with rural views, alongside a 90-seat restaurant and bar, day spa, gym and outdoor pool.
IHG’s Holiday Inn brand has undergone a global transformation over the last 18 months and its next-generation design includes open lobbies, as well as F&B and suite offerings. Holiday Inn Werribee, which just opened last week, boasts Holiday Inn’s next-generation brand hallmarks.
Raffles Hotels & Resorts marches on with global expansion
Raffles Hotels & Resorts continues to grow its global footprint, with the planned opening of flagship properties in Dubai, Udaipur, Bahrain and Macau later this year.
Set to open its doors in 4Q2021, Raffles the Palm Dubai will be the first Raffles resort on the Palm Jumeirah – the world’s largest man-made island and archipelago. Located across 100,000m² of landscape on the West Crescent, the 389-key property will feature eight bar and restaurant concepts.
Raffles Al Areen Palace, Bahrain is located near the island’s protected wildlife park and reserve, and will offer 78 opulent pool villas, and a spa. A collection of one- and two-bedroom villas will feature living and dining areas, an office, and master bedrooms with ensuite bathrooms.
Raffles Udaipur, India’s first Raffles hotel, is set to open this year on a 8.4ha private island in Udai Sagar Lake. Surrounded by spectacular hills and a view of the 400-year-old temple in the background, the property has 101 rooms, each with a private pool.
Located on Galaxy Macau’s east promenade, Raffles at Galaxy Macau is an architectural landmark featuring a glass airbridge that connects the two towers on every floor. The property will be home to 450 suites, with some featuring private pools and gardens.
In 2022, Raffles will debut flagship locations in Doha and Jeddah.
A cultural tribute to Qatar’s heritage, the Iconic Towers in Lusail, a representation of Qatar’s national seal, will be home to the new Raffles Doha. A property with 132 suites and 49 apartments, the combo hotel will feature entertainment and recreational facilities, boutique shopping, movie theatres, restaurants and a cigar lounge, as well as meeting spaces.
Inspired by the rich history of Saudi Arabia and Jeddah’s old town architecture, Raffles Jeddah will have 181 guestrooms – including a wedding suite and penthouse suite – and 188 branded residences. Alongside six restaurants and lounges, there will be a library, spa and fitness club. The hotel’s meeting facilities include a 1,500m² ballroom overlooking the corniche and 1,000m² of conference rooms.
Cloudbeds partners with Rakuten Travel Xchange to extend reach
Hospitality management platform Cloudbeds has inked a partnership with Rakuten Travel Xchange, the hotel wholesale and travel technology division within the Rakuten Group, to drive global hotel distribution.
The collaboration connects Cloudbeds with Rakuten Travel, a major Japanese OTA, and more than 400 B2B partners connected worldwide through API connections, travel agent portals, and websites. These distribution channels allow Cloudbeds to extend its reach to the Rakuten Travel Xchange customer base through a single connection.
In addition, Rakuten Travel Xchange adds Cloudbeds’ inventory of properties that use its technology platform to manage all aspects of their business, from booking engines to payments.
Anna Tsujihata, head of hotel contracting and connectivity, of Rakuten Travel Xchange, said: “We are always seeking high-value partners to complement our expanding platform. With Cloudbeds now part of our global distribution platform, we expand our offerings to travellers seeking unique properties with superior guest experiences.”
Sebastian Leitner, vice president of partnerships for Cloudbeds, added: “As global travel reopens, we want our properties to be available to the largest customer base possible. By partnering with Rakuten Travel Xchange, a major global player and distribution channel in Japan; we significantly increase our global footprint.”
Pascal Bertrand helms Anantara Iko Mauritius Resort & Villas
Anantara Iko Mauritius Resort & Villas has appointed a new general manager, Pascal Bertrand.
Bertrand brings over 35 years of luxury hospitality experience from around the globe, having worked with international hotel brands globally.
The French national got a taste for the hotelier life when he started his career in F&B, as sous-chef for Eleven Maple Street Restaurant in Florida. He continued his career in F&B by joining The Ritz Carlton in Atlanta as assistant banqueting manager, followed by The Ritz Carlton Cancun and The Ritz Carlton in Florida.
He progressed through the ranks of hotel operations before taking his first general manager position at the Legends Hotel Mauritius, in 2010.
Vietjet reports higher year-on-year revenue
Vietnamese budget airline Vietjet has recorded higher year-on-year revenue, earning VND127 billion (US$5.5 million) in the first half of 2021, despite the pandemic.
According to financial statements released by the Vietjet Aviation Joint Stock Company, Vietjet’s air transport revenue reached VND2,973 billion in 2Q2021, recording a 51 per cent year-on-year growth thanks to high travelling demand in April.
The airline has also sought ways to lift the cargo sector despite the impact of the fourth wave of Covid-19 in Vietnam this quarter.
Vietjet’s consolidated revenue totalled VND4,337 billion in 2Q. Revenue in passenger transport for 1H2021 was recorded at VND5,818 billion, generating a post-tax profit of VND13.7 billion. The airline’s consolidated revenue and consolidated post-tax profit were reported at VND8,386 billion and VND127 billion, respectively – both higher compared to 2020.
Amid the aviation slowdown, Vietjet has expanded its business portfolio by venturing into financial and project investments which has raked in more than VND1,756 billion of revenue. Vietjet’s total assets reached VND44,000 billion by the end of June.
Vietjet has transported more than 4.8 million passengers on 34,000 flights over the first six months of the year. The airline has also focused on refining operation protocols and boosting its cargo operations, resulting in a 40-45 per cent year-on-year growth.
Club Med promotes Rachael Harding to CEO ESAP
Club Med has appointed Rachael Harding as the CEO of East, South Asia and Pacific, succeeding Xavier Desaulles, who led Club Med Asia Pacific Markets for the past five years.
In her new role based in Shanghai, Harding will lead the stewardship of the Asia Pacific (excluding Greater China) region as they navigate the current market dynamics and prepare for an aggressive rebound. She will also drive the advancement of a profitable growth strategy focused on nurturing matured markets and elevating the emerging markets.
Harding joined Club Med in 2018 as the general manager for Club Med Pacific (Australia and New Zealand). Over three years, her leadership led to the successful growth of the Pacific market by 26 per cent.
Harding possesses over 20 years of experience in the travel sector, spanning multiple sectors of the tourism industry across retail, corporate & wholesale in the Australian, New Zealand, UK and European markets.
Prior to joining Club Med, she spent 15 years working with The Travel Corporation on brands including Trafalgar and Contiki in various sales, distribution and marketing roles.
Visit Maldives has kicked off a year-long marketing campaign with Qatar Airways to promote the destination as a safe-haven for travellers from Europe, the Middle East and the Americas.
Scheduled to run from July 2021 until June 2022, the campaign will consist of a combination of digital and offline activities.
Qatar Airways support in the new campaign reflects its faith in the destination. It was the first airline to land when the Maldives reopened borders to international travellers on July 15 last year, and has increased flight frequency to the Maldives since July 1 this year.
To promote the Maldives, the airline will feature the destination in tactical campaigns, newsletters and on its homepage. It will also target industry members and promote the Maldives through destination newsletters, destination push-through sales, joint advertising with trade partners, trade webinars, trade workshops and so on.
Familiarisation trips are also on the cards.
Since restarting international tourism in 2020, Visit Maldives has launched major global campaigns with organisations such as SkyScanner, TripAdvisor, Expedia and TripZilla to target key and emerging markets. As of July 7, 2021, the Maldives has welcomed over 528,157 travellers.
Visit Maldives believes that welcoming over half a million travellers ensures that the destination is on the path to achieving pre-pandemic arrival figures.