Tours sector hots up in Asia

October 27, 2017

Gnock Fah: going mobile-first

The online tours and activities segment hots up in Asia with Hong Kong’s Klook completing near US$60 million in Series C funding, the largest ever for an in-destination service booking platform, just months after Singapore’s BeMyGuest closed a Series A in July that gave it a total equity funding to-date of US$8.5 million.

Whether B2C as Klook mainly is, or B2B which BeMyGuest has pivoted to, tours and activities in Asia is in for a shake-up as investors begin to hanker after a market that is being buoyed by the rise of Asian FITs and their adoption of mobile booking.

Gnock Fah: going mobile-first

Klook’s president and co-founder Eric Gnock Fah told TTG Asia: “For the most part, B2B and B2C will usually coexist and, in some cases, go hand in hand. Looking at market players, we see that B2C currently presents a bigger opportunity.”

Klook has 30,000 tours and activities on its platform. Fifty per cent of users book upon arrival, 70 per cent via mobile. Gnock Fah wants to cement its mobile-first and instant confirmation solutions, and create personalised experiences with AI.

The company has launched a visual search function, allowing travellers to use pictures taken during their travels to gain activity suggestions nearby. It will soon enable voice search function, as well as other new functions by mid-2018.

BeMyGuest on the other hand believes B2B is the space to be in. “Asia has overtaken Europe in tours and activities, said to be worth around US$33.3 billion now, and only 11 per cent is booked online,” said Graham Hills, chief commercial officer, a new position at BeMyGuest.

Hills said the business is still “very much in its infancy”, fragmented with small or mom-and-pop players in the region with a low adoption of technology.

Added Kei Shibata, CEO of Venture Republic Global, who is now on the board of BeMyGuest: “Aggregating them as quickly as possible is important and that’s the strength BeMyGuest has as (first mover).”

Clement Wong, CEO of BeMyGuest, said Klook’s Series C funding, led by Goldman Sachs and existing investors Sequoia Capital and Matrix Partners, is “a positive reaffirmation of the rapid growth that the tours and activities sector is experiencing in Asia”.

“Asia has overtaken Europe this year in terms of market size for tours and activities, and being the hottest sector in travel, we expect this investment trend to continue,” said Wong.

Meanwhile, Sam Turner who leads wholesale and sourcing for Hotelbeds Group, said the growth in tours and activities has been twice faster than in bedbanks that the group has created a separate division for it.

“Asia is currently the smallest proportion but we’re seeing an 80 per cent jump,” said Turner.

“I expect more consolidation in the space. It has created a lot of excitement as historically the distribution has been very offline. Consolidation is inevitable.”

Even hotels are now getting into the act, by being resellers of tours. GTA, now part of Hotelbeds Group, has tied up with Ireland’s Bokun, using its content and technology to allow hotels to resell tours and activities, then everyone will earn commissions.

Stefano Zeni, GTA head of commercial management and destination services, said this would be launched in the Middle East and Europe, and he is here at ITB Asia to propose to hotel partners in Asia to resell tours & activities to guests.

reporting live from ITB Asia 2017

TAT shows off the many facets of Thailand

By Mimi Hudoyo

October 27, 2017

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The Tourism Authority of Thailand (TAT) has soft-launched at ITB Asia 2017 a new marketing concept which focuses on new source markets, new traveller segments and new ways to enjoy the kingdom.

Named The Million Shades of Thailand, the new concept is set for an official launch this November at World Travel Market London and again in January 2018 at ASEAN Tourism Forum when it heads to Chiang Mai.

In his soft launch presentation on October 25, Tanes Petsuwan, deputy governor for Marketing Communications of TAT, explained the concept’s three areas of focus, “the 3Ns, which are New Destinations, New Segmentation and New Product”.

New Destinations, which refers to target source markets TAT is keen on courting, include Canada, Latin America and China’s secondary cities.
Tanes said: “It was not feasible in the past to promote Thailand (to travellers in) Latin America because (the journey) was too long for them and air connectivity was lacking.

“These days, airlines such as the Middle Eastern carriers offer good connections and use new aircraft that can fly a longer distance, and are equipped with (extensive) onboard entertainment that make for a more enjoyable journey.”

As for New Segment, TAT will reach out to millennial travellers who are lured by digital social media and customer-focused activities.

And finally, for New Product, TAT is spotlighting Gastronomy, Nature and Beach, Arts and Craft, Culture, and Way of Life.

In an interview with TTG Asia, Santi Chudintra, deputy governor for TAT’s international marketing (Asia and South Pacific), said he hopes that the new marketing concept will “invite the world to travel to Thailand, and open their minds and perspectives (so that) they will find new things (and) interesting stories.”

Santi explained that there are different ways to enjoy Thailand’s many different destinations.

Drawing a food analogy, he said: “Take pad thai for instance. You’ll find it at a street vendor and at a high-end restaurant. You’ll find it wrapped in a leaf or in an omelette.”

He pointed out that local food, handicraft, souvenirs and other products come in different variations across the country, festivals are celebrated in unique ways in different locations, and the beach experience is different everywhere.

The Million Shades of Thailand is expected to help Thailand maintain its competitive edge in the travel industry. International arrivals to Thailand in 2016 totalled 32.6 million and the number is expected to rise to 34.5 million.

Meanwhile, tourism revenue is expected to hit US$50 billion, up from 2016’s US$42 billion.

reporting from ITB Asia 2017

[Sponsored Post] Leading Companies Better At Collaborating To Reach Their Simplification Goals

By TTG

October 27, 2017

0

With new technology proliferating and business traveller needs and expectations evolving, travel managers are struggling to manage complex, multi-layered travel programmes. According to new research from the Association of Corporate Travel Executives (ACTE), underwritten by HRS, travel managers recognize this challenge and understand that simplifying their programmes could yield benefits—but simplification initiatives face competing priorities.

The new study, Simplifying Managed Travel, finds that traveller safety trumps the agenda: Most buyers (94 per cent) say duty of care is a key priority; 82 per cent say it is their top priority. With 72 per cent rating it is a key priority for their managed travel program, simplification follows behind cost reduction (88 per cent), data security (84 per cent) and improving traveller satisfaction (75 per cent).

However, travel managers recognize that simplification initiatives can support their other strategic priorities. For example, 47 per cent of travel managers say that simplification will improve duty of care, and 39 per cent believe it will reduce the overall cost of their travel policy.

Travel Managers Struggle to Translate Priority into Action

Despite recognizing the importance of simplification, travel managers see a gap between intention and execution. Reflecting the strategic importance placed on traveller safety, duty of care is the travel buyer’s top priority for simplification: A majority (83 per cent) say duty of care requires immediate action (62 per cent). Data security appears second on buyers’ list of simplification targets.

Disconnects between buyers’ simplification priorities and their actual behaviour, however, indicate barriers to pursuing strategic goals. The execution gaps for duty of care and data security are large relative to other priorities, with more than one-in-five buyers saying they are not currently translating their traveller safety (23 per cent) and data security (24 per cent) concerns into action.

Suppliers and Internal Stakeholders Must Become Partners in Simplification

Today’s complex travel programmes encompass multiple partners and stakeholders—internally and externally. To be effective, simplification initiatives often require support from these parties. While nearly one-in-five buyers do not get support from peers in other departments, most report that internal stakeholders are on board with simplification initiatives:

Procurement is most often regarded as a partner in simplification (57 per cent);
Internal risk/security and communications staff follow (40 per cent);
IT support (36 per cent) and human resources (28 per cent) lag other departments.

Third parties can supply relevant tools and expertise, providing support to travel buyers’ simplification initiatives. Buyers welcome this assistance: More than half of buyers not currently receiving help from travel providers say they want it. Internally and externally, the data suggests that the travel buyers who say simplification is a top strategic priority are better at collaborating to reach their simplification goals.

“The value travel management provides to a company is increasingly measured in optimised processes and cross-department collaboration,” explained HRS CEO Tobias Ragge. “The study shows this close collaboration is vital and that leading companies build on their internal stakeholder network, but they also rely on the data, advice and support of external partners to reach their strategic goals.”

Driving Effective Simplification

Simplification is a key route for travel managers to achieve their business objectives. However, facing the hurdles of limited resources and differing levels of support from internal and external stakeholders, buyers must ramp up communication with suppliers, other departments within the organization and with the travellers themselves.

The study can be downloaded https://corporate.hrs.com/int/simplify.

[Sponsored Post] Leading Companies Better At Collaborating To Reach Their Simplification Goals

By TTG

October 27, 2017

0

With new technology proliferating and business traveller needs and expectations evolving, travel managers are struggling to manage complex, multi-layered travel programmes. According to new research from the Association of Corporate Travel Executives (ACTE), underwritten by HRS, travel managers recognize this challenge and understand that simplifying their programmes could yield benefits—but simplification initiatives face competing priorities.

The new study, Simplifying Managed Travel, finds that traveller safety trumps the agenda: Most buyers (94 per cent) say duty of care is a key priority; 82 per cent say it is their top priority. With 72 per cent rating it a key priority for their managed travel program, simplification follows behind cost reduction (88 per cent), data security (84 per cent) and improving traveller satisfaction (75 per cent).

However, travel managers recognize that simplification initiatives can support their other strategic priorities. For example, 47 per cent of travel managers say that simplification will improve duty of care, and 39 per cent believe it will reduce the overall cost of their travel policy.

Travel Managers Struggle to Translate Priority into Action

Despite recognizing the importance of simplification, travel managers see a gap between intention and execution. Reflecting the strategic importance placed on traveller safety, duty of care is the travel buyer’s top priority for simplification: A majority (83 per cent) say duty of care requires immediate action (62 per cent). Data security appears second on buyers’ list of simplification targets.

Disconnects between buyers’ simplification priorities and their actual behaviour, however, indicate barriers to pursuing strategic goals. The execution gaps for duty of care and data security are large relative to other priorities, with more than one-in-five buyers saying they are not currently translating their traveller safety (23 per cent) and data security (24 per cent) concerns into action.

Suppliers and Internal Stakeholders Must Become Partners in Simplification

Today’s complex travel programmes encompass multiple partners and stakeholders—internally and externally. To be effective, simplification initiatives often require support from these parties. While nearly one-in-five buyers do not get support from peers in other departments, most report that internal stakeholders are on board with simplification initiatives:

Procurement is most often regarded as a partner in simplification (57 per cent);
Internal risk/security and communications staff follow (40 per cent);
IT support (36 per cent) and human resources (28 per cent) lag other departments.

Third parties can supply relevant tools and expertise, providing support to travel buyers’ simplification initiatives. Buyers welcome this assistance: More than half of buyers not currently receiving help from travel providers say they want it. Internally and externally, the data suggests that the travel buyers who say simplification is a top strategic priority are better at collaborating to reach their simplification goals.

“The value travel management provides to a company is increasingly measured in optimised processes and cross-department collaboration,” explained HRS CEO Tobias Ragge. “The study shows this close collaboration is vital and that leading companies build on their internal stakeholder network, but they also rely on the data, advice and support of external partners to reach their strategic goals.”

Driving Effective Simplification

Simplification is a key route for travel managers to achieve their business objectives. However, facing the hurdles of limited resources and differing levels of support from internal and external stakeholders, buyers must ramp up communication with suppliers, other departments within the organization and with the travellers themselves.

The study can be downloaded https://corporate.hrs.com/int/simplify.

Germany needs image reform to pull South-east Asian crowds

By Pamela Chow

October 27, 2017

0

In response to German National Tourist Board’s (GNTB) promotions in South-east Asia, agents are optimistic that Germany can become a viable off-the-beaten-track mono-destination for the region’s travellers.

However, it is held back by the lack of awareness and a more exciting image in the region, opined both agents and stakeholders in the Germany tourism industry.

Lesser known cities like Wiesbaden can be better marketed, agents say

A main grouse is that the country is limited by common associations such as business, Oktoberfest and beer, when other aspects of the country can be marketed.

Alan Ang, managing director of EU Holidays, said: “Singaporeans’ perception of Germany is very skewed towards Bavaria, Munich and Berlin.”

He added that not many know about Germany’s “hidden gems”, which can be better marketed and have the potential to draw in bigger crowds from South-east Asia.

Examples of this are the historic operational Roman baths of Wiesbaden and the country’s oldest beer brewery, located 35 minutes and 40 minutes respectively by train from Frankfurt Airport.

Deeming awareness of the country insufficient, tourism stakeholders have taken marketing into their own hands. Frankfurt Airport has stepped up to exhibit at roadshows to promote the city and its surrounds, said its director of international tourism markets, Stefan M Kopp, and also launched an online portal to engage with travel agents and familiarise them with the airport’s services.

However, things are starting to look up for trade players with GNTB’s latest efforts, said Hanne Lim, deputy general manager, operation centre, travel business division, Kaytrip.

The Munich-based agency, which specialises in bringing Chinese-speaking tourists into Europe, has begun developing Germany-specific tours that ply routes like Southern Germany.

Lim said that although the country has to vie with crowd favourites like Iceland and Northern Europe, Germany can woo customers who are looking for “in-depth sight-seeing”, and that more needs to be done to build awareness in Asia.

The board in late-October wrapped up a week-long South-east Asian Roadshow, which stopped in Bangkok, Kuala Lumpur, Jakarta and Singapore, and connected local agents with German tourism operators.

The board earlier identified these four markets as South-east Asian economies with the most growth potential, and will be increasing mono-destination promotions in these markets.

By 2030, GNTB hopes to grow its overnight stays in Germany by two million to 3.2 million.

Hotelbeds Group on the prowl for new blood

By Raini Hamdi

October 27, 2017

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Hotelbeds Group, which completed its acquisition of GTA on October 4 and Tourico Holidays in June, is on a recruitment drive for Asia, with Tourico’s director of global recruitment Kieran Le-Petit being present at ITB Asia to suss out potentials, especially in bedbanks contracting.

“People usually assume that three companies that are consolidating will mean layoffs. We’re absolutely the opposite. Not only are we not retrenching, we are talent mapping, creating a new organisation structure, and have a five-year recruitment plan with Asia specified as the first place (for recruitment) because of the growth prospects in the region,” said Le-Petit.

In Asia, the departments of the three products – Hotelbeds, Tourico and GTA – have been integrated, paving the way for fresh recruitment, he said.

Only three per cent of Tourico staff in Asia left as a result of the integration, he said. “When Expedia bought Orbitz in Australia, it was 60 to 70 per cent. I know because I recruited a lot of them. Usually I smell ‘blood’ in the water. There is no blood in the water around us – we’re the sharks circling for blood (laughs).”

Some 60 vacancies are available for Asia, primarily people experienced in negotiating contracts with hotels. The recruitment drive is consistent with an earlier interview with executive chairman Joan Vilà. He said: “The primary driver of consolidation is growth. Hotelbeds was market leader but its market share was not big enough. Now there’s plenty of business and we should capture the growth.”

A source said Hotelbeds Group is aiming for €10 billion (US$11.6 billion) in revenue post-integration, although the figure cannot be confirmed.

As of now, the group has 8,300 employees – 1,600 from GTA, and 800 from Tourico.

reporting from ITB Asia 2017

Aman gets prime NYC location

By TTG Asia

October 27, 2017

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Luxury hotel group Aman is slated to open within New York City’s iconic Crown Building, marking the brand’s second urban location after Tokyo and third US property after Amangiri and Anangani.

This will see the Crown Building – formerly the first home of the Museum of Modern Art –undergo what Aman calls a monumental transformation – involving both restoration and redesign – ahead of its centenary in 2021.

A rendering of the spa at the upcoming Aman New York

Aman New York will occupy the entire Crown Building excluding the retail space on the first three floors.

Situated at the heart of Manhattan at the crossroads of Fifth Avenue and 57^th Street, Aman New York will comprise 83 guestrooms and suites, which starting from 70m² in size are among the largest in the city, and each have a functioning fireplace, another rarity in the city.

The property will also house the first urban Aman Residences, comprising 19 private units on the upper floors, plus a five-storey penthouse at the building’s apex overlooking Central Park.

Facilities at the Aman New York include the Aman Spa – covering 2,000m2 over three storeys – complete with a 25m-long indoor swimming pool. The spa will be reserved for hotel guests, residents and club members.

Another highlight is the 10^th-floor wraparound Garden Terrace, encompassing a bar that provides panoramic views of Central Park, and a Cigar Bar. The hotel’s Sky Lobby will house two restaurants – including Aman’s recently introduced Japanese culinary concept, Nama; Wine Library, which will be available for private wine tastings and events; and a subterranean Jazz Club.

New hotels: Swiss-Belsuites Pounamu Queenstown, Sheraton Petaling Jaya, and more

By TTG Asia

October 27, 2017

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Swiss-Belsuites Pounamu Queenstown
Swiss-Belhotel International has opened the Swiss-Belsuites Pounamu Queenstown on New Zealand’s South Island. The property offers 64 self-contained, serviced en-suite studios and apartments, all of which come with a washing machine, dryer, under-floor heating and complimentary Wi-Fi. Apartments come with floor-to-ceiling windows, open-plan living spaces and fully equipped kitchens, while studios feature a kitchenette. Facilities on-site include a children’s playground, BBQ facilities, a heated spa, a bike rental service, as well as a complimentary concierge service to organise trips and activities.

Sheraton Petaling Jaya
Sheraton Hotels and Resorts has opened the Sheraton Petaling Jaya in Malaysia. Located 20 minutes away from Kuala Lumpur, the new-build offers 253 guestrooms, all of which are come with specially-created Le Grand Bain bath amenities. Club Room guests have exclusive access to the 300m2 Club Lounge and can enjoy views of the city from its 31st floor perch. Recreational facilities include a fitness centre, and outdoor infinity pool on the 33rd floor. The property is also home to six F&B venues, as well as 3,000m2 of flexible event space across 14 meeting rooms.

Le Méridien Suzhou, Suzhou Bay
Le Méridien Hotels & Resorts has made its debut in Suzhou with the opening of of Le Méridien Suzhou, Suzhou Bay. Offering 285 rooms including 20 suites, rooms in the property offer panoramic lake and city views through floor-to-ceiling windows. There are also six villa rooms that boast a hot spring. Facilities include a gym, 25m-long indoor swimming pool, spa, yoga rooms, kids’ club, three restaurants, and a lobby lounge. For meetings and events, the hotel offers nearly 4,000m2 of meeting and banquet facilities across two pillarless ballrooms, four function rooms, and an outdoor lawn.

Fairfield by Marriott, Coimbatore
Located in the business hub of Coimbatore, this hotel by Marriott International features 128 guestrooms. Amenities on-site include a fitness centre, an all-day dining restaurant serving Indian and Western cuisines, a 24/7 Market for drinks and snacks, business centre and three event spaces. Nearby tourist attractions include the Anamalai Tiger Reserve; Monkey Falls, a natural waterfall and popular swimming spot; and 34m-tall Adiyogi Shiva statue.

Hotel Ease
Young hospitality company Tang’s Living Group has brought its second hotel brand to Hong Kong. The 160-room Hotel Ease Tsuen Wan is the first hotel under the Hotel Ease brand. Room sizes range from 20m2 to 30m2, and each room provides a smartphone for guests to stay connected via free international calls and Internet access. Guests can also enjoy a meal or indulge in a cocktail at Eat@ease, the hotel’s all-day dining restaurant with an industrial chic interior design.

Three new hotels to rise in Sentosa

By TTG Asia

October 27, 2017

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sentosa-palawan-beach — The hotels will be located in the Palawan area

Recognising the lack of mid-tier hotels in Singapore’s Sentosa, Far East Hospitality will add to the island attraction three new hotels, targeted to open mid-2019.

“With these three new properties, we hope to fill the gap of the mid-tier segment, while catering to the growing category of discerning travellers and Singapore’s robust staycation market,” said Arthur Kiong, CEO, Far East Hospitality.

The hotels will be located in the Palawan area

The company has signed a term sheet with Fontaine Investment to operate Village Hotel Sentosa, The Outpost Sentosa and a yet-unnamed third hotel, all located at Artillery Avenue in the Palawan area.

Village Hotel Sentosa, with 606 keys, targets the mid-tier market, including travellers from regional and international markets and Singaporeans looking for a family weekend getaway. Far East stated the hotel is also well suited for business meetings, networking events, as well as company retreats, with team-bonding activities such as cooking and fitness classes available.

The 193-key Outpost Sentosa, the debut Outpost property, will cater to young couples, while the third hotel will feature 40 keys and geared towards the upscale market. The properties are expected to offer activities such as aqua-based fitness classes, outdoor movie screenings, kids carnival and pool games.

How Chinese luxury travellers rate travel agents services

By TTG Asia

October 27, 2017

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Customised travel services are experiencing a surge in popularity, forcing China’s travel agencies to place a strong emphasis on the quality of travel itineraries to retain customers, according to the latest Hurun Report.

More than half of luxury travellers (58 per cent) surveyed have experienced customised travel services. Fifty-five per cent of travellers report that the provision of such services is why they chose one agency over another.

Luxury travellers are partial to travel agencies that provide well-designed itineraries, personalised services, and are actively problem-solving, placing 59 per cent, 55 per cent and 49 per cent of the emphasis on each aspect respectively. The emphasis placed on the problem-solving ability of travel agencies has experienced an 11 per cent increase in two years.

Aspects that respondents felt least satisfied with include poorly-organised itineraries (29 per cent), bad food (24 per cent) and tour guides not meeting expectations (21 per cent).

Best China/Hong Kong/Taiwan outbound luxury travel agencies 2017
Agencies in the Hurun Mainland China Outbound Luxury Travel Agencies 2017 Top 12 ranking include 8 Continents, Diadema, D-Lux*, CITS Amex, HHtravel, My Tour, Magic Travel, Ctrip, Zanadu, CITS, CTS and CYTS.

Agencies in the Hurun Hong Kong Outbound Luxury Travel Agencies 2017 Top 6 include Wincastle Travel, Cathay Pacific Holidays, Charlotte Travel*, American Express, Swire Travel, and Westminster.

Agencies in the Hurun Taiwan Outbound Luxury Travel Agencies 2017 Top 6 include One Style Tour*, Seascape Escape, Let’s Travel*, American Express, International Travel Information Services and Lion Travel.

Agency names are listed alphabetically; * denotes newcomers

Tours sector hots up in Asia

TAT shows off the many facets of Thailand

[Sponsored Post] Leading Companies Better At Collaborating To Reach Their Simplification Goals

[Sponsored Post] Leading Companies Better At Collaborating To Reach Their Simplification Goals

Germany needs image reform to pull South-east Asian crowds

Hotelbeds Group on the prowl for new blood

Aman gets prime NYC location

New hotels: Swiss-Belsuites Pounamu Queenstown, Sheraton Petaling Jaya, and more

Three new hotels to rise in Sentosa

How Chinese luxury travellers rate travel agents services

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