Vacation rentals have not infringed on growth of traditional travel players in China.

The rise of sharing economy in China has given birth to homegrown players like Didi Chuxing and Tujia while home-sharing giant Airbnb has doubled down its investment in the country, but industry members interviewed do not see threats arising from such platforms for the time being.

Safety and security are the greatest differentiators between traditional hotels and home-sharing accommodation, observed Creamy Chen, general manager, Century Holiday International Travel Service (Guangzhou) Branch.

She said: “Clients prefer reliable hotel brands when planning trips to China. Under Chinese regulation, hotels have to scan foreign guests’ passports for registration but if they opt to stay in local residences, it’s necessary for them to inform a nearby police station.

“In fact, we have agreements with hotels to guarantee guests’ personal and food safety during their stay but I doubt home rentals could offer the same confidence.”

Chen also believes that local agents catering to the domestic travel market are more affected than inbound operators handling foreign visitors.

And while Tujia has joined forces with agencies like Nanjing China Comfort Travel Service to enable agents to offer home rentals to their clients, she does not think that such partnerships will become a trend “given the service limitations”.

Shanghai Jin Jiang Tours’ operations department manager Rong Rong, meanwhile, sees home rentals as a popular option only for FITs and small groups. She added: “It’s a kind of distribution channel targeting a different type of audience and will not compete head to head with our group business.”

Hoteliers, likewise, are unfazed with the growth of vacation rentals in China.

Hilton Shanghai Hongqiao, general manager, Joseph Zitnik, contended: “There is a place for Airbnb in the overall hotel market and distribution system but the traditional hotel business and reservation systems will remain strong. Most guests trust that international hotel brands can ensure them high-quality facilities, service standards and F&B.”

Pudong Shangri-La, East Shanghai, area general manager, Mark Kirk believes that Airbnb tends to attract budget-sensitive travellers, which makes the impact on luxury hotels minimal.

Johnny Li, founder and managing director of Gateway Group, which represents resorts and hotels in Asia and China, surmised: “The mainland market is not mature enough with many domestic travellers still sticking to traditional booking channels.

“Unless Airbnb aggressively goes for the niche market or dangles attractive perks like best offers or affordable rates, it’d be hard to get domestic Chinese travellers to switch from the OTAs that they have patronised for years.”

This article was first published in TTG Asia May 2017 issue. To read more, please view our digital edition or click here to subscribe.

Macau brandishes a robust calendar of events round the year to attract international visitors and give them reasons to stay longer.

Positioning Macau as a City of Events is one of the main ways that Macao Government Tourism Office (MGTO) plans to attract visitors and encourage them to stay longer.

A MGTO spokesperson commented: “Macau has been enhancing the city’s events, as well as ensuring they are distributed throughout the year, so that visitors may plan holidays to experience all these during their stay.”
MGTO, together with travel trade partners, has been leveraging event-themed packages, such as the Macau Grand Prix or the Macao International Marathon, as “windows for visitors to experience the destination”.

In line with MGTO’s efforts, integrated resorts (IRs) are also bringing to Macau “high-profile performances and events”.

“Some players bring big names from the regional and world entertainment industry, and stage resident shows for long seasons. Their calendar of performances usually comes along with special packages (that aim) for longer stays,” the MGTO spokesperson said.

Examples of shows currently running at IRs include the indoor ice sculpture showcase and other activities by Kung Fu Panda Adventure Ice World with the DreamWorks All-Stars at The Venetian (through July 9); magician shows scheduled for the House of Magic at Studio City (year-round); the Monkey King – China Show at Sands Cotai Theatre (through December 31).

“This favours not only the host hotel-resorts but the overall destination, since visitors also tend to visit other attractions while in town,” shared the MGTO spokesperson.

Echoing the sentiment that events across the city can bring collective benefits to the industry, Artyzen Hospitality Group, Macau, area vice president, Rutger Verschuren, said: “Considering how small Macau is, and the relative short time since we came on the international travel map, we cannot complain. We are lucky to benefit from Macau’s (events) treasure chest and its efforts to reach out to an international crowd.

“Our hotels, like the entire city, feast on large events by receiving more exposure as a destination, and by generating extra RevPAR during events,” he added.

Meanwhile, entertainment is at the heart of Sands China’s business. Its six venues have hosted a total of 60 different live entertainment events over 144 event days in 2016, attracting more than 228,000 visitors. The theatres offer a variety of ticketed events – everything from Broadway-style musicals to magic shows to classical ballet.

Said senior vice president of marketing and brand management, Ruth Boston: “The live entertainment programme at our properties is a key traffic driver… The diversity of entertainment offered by Sands Resorts Macao sets it apart from other gaming destinations.”

Welcoming Macau’s new positioning is Metropole Hotel’s general manager, May Wong, who looks forward to grow the vast potential in events tourism.

“Apart from local culture and customs, the city also celebrated Thailand’s Songkran Festival. Why don’t we expand in this direction by blending other nations’ festivals in addition to our homegrown ones?”

This article was first published in TTG Asia May 2017 issue. To read more, please view our digital edition or click here to subscribe.