The space between economy and luxury is hotting up as a string of new mid/upscale hotel brands hits the region and jostles to be the most relevant to value-minded Asians. By Raini Hamdi

Brand name ATRIA HOTEL & CONFERENCE
By Parador Hotels & Resorts, Indonesia

Positioning Four star

Competitive set Other four star brands with MICE facilities, such as Mercure, Santika Premier, Novotel, Aston and Harris Hotels

Rate Atria Hotel & Conference Gading Serpong, Tangerang (off Jakarta) from US$100

Why it is needed According to the Central Statistics Agency, Indonesians undertook about 236 million domestic trips in 2011 and this number will continue to rise with the promising middle class market. The increasing number of budget airlines will certainly increase the number of domestic travellers in the country. Therefore, our future development focus will be on midscale brands such as Atria or our three-star Ara Hotels.

How it reinvents mid/upscale A conference hotel focusing on MICE. We accommodate individual business traveller needs by providing value such as free WiFi connection of up to 10 Mbps.

We aim to become a leading conference hotel in the region, and have dedicated staff to achieve this with a ‘warmth & comfort’ service philosophy.

How many in operation Four in Tangerang (off Jakarta), Magelang (Central Java) and Malang (East Java)

Expansion plans Five more hotels to open in stages up to 2019

Ricky Theodores
Vice president
Parador Hotels & Resorts, Indonesia

Brand name AVANI HOTELS & RESORTS
By Minor Hotel Group, Thailand

Positioning 4.5 star

Competitive set Includes Aloft, Angsana, Pullman, Andaz and Hotel Indigo

Rate Lead in price in Sri Lanka tends to be about US$150++ and Vietnam US$100++

Why it is needed Launched in 2011 to complement the five-star Anantara brand. Avani offers relaxed comfort and contemporary style in city and resort locations to guests who value details that matter.

How it reinvents mid/upscale The name stems from the Sanskrit word, ‘earth’, which Avani expresses through a grounded personality and simple sense of style. Each resort exhibits a passion for design, an emphasis on tailoring details to deliver complete satisfaction, and service that is genuine and spontaneous.

How many in operation Three resorts, two in Sri Lanka and one in Vietnam

Expansion plans 2014 will see new additions to the brand in Malaysia (Sepang), Vietnam (Hai Phong), Thailand (rebranding of Amari Atrium Bangkok) and Seychelles Barbarons.

In the pipeline are Avani properties in Bali, Ambalangoda (Sri Lanka) and a second property in Bangkok. We expect to shortly make an announcement on developments on the African continent.

We plan to grow the brand across Asia, Africa and the Indian Ocean and in the Middle East.

Dillip Rajakarier
CEO
Minor Hotel Group, Thailand

Brand name BEST WESTERN PLUS

By Best Western International, US

Positioning Four star

Competitive set Novotel

Rate On average US$90

Why it is needed Best Western has traditionally offered customers hotels based on the core values of comfort, value for money and excellent service. But as we expand into new markets, especially in Asia and the Middle East, there is a need to cater for customers who want these qualities, but also that little extra. Best Western Plus offers more upscale amenities and facilities such as a fitness centre, business centre, spacious in-room work areas and a range of products tailored to the needs of each market.

How it reinvents mid/upscale Many international hotel companies operating today start in the upscale sector, then try to expand into other segments. Best Western, on the other hand, has a proud 66-year history in the midscale segment and understands the needs of the everyday hotel customer.

How many in operation 11 in Asia and the Middle East, with just over 1,200 rooms. Thailand and India are our biggest markets for the brand (three hotels each); two in the Philippines and two in Saudi Arabia.

Expansion plans 10 more are set to open in Asia and the Middle East, adding a further 1,700 rooms. Indonesia and Malaysia will see three new Best Western Plus hotels. Firm plans for two hotels in Bangladesh.

Glenn de Souza
Best Western International’s vice president,
International Operations Asia & Middle East,
Thailand

Brand name COUNTRY COMFORT

By SilverNeedle Hospitality, Singapore

Positioning 3.5 star

Competitive set Best Western Plus, Country Inn & Suites, Hampton Inn, Holiday Inn Express, Premier Inn, Travelodge (Australia), Wyndham Garden Hotel

Rate A$100 (US$89) to A$150 in Australia and New Zealand under the existing brand

Why it is needed Country Comfort, a well-known  brand in Australia and New Zealand, was recently rebranded and updated with a fresh identity and look. The 28-year-old brand will spearhead new franchising business in its existing ANZ markets and the broader Asia-Pacific region. The target market comprises travelling sales people, small business owners and mid-level managers that spend more than half their time on business on a limited per diem budget. The refreshed brand promises convenience, quality and value.

How it reinvents mid/upscale By delivering what road warriors need the most and removing what they don’t, so they avoid unnecessary expenses. Guests will still enjoy an excellent stay, including the best-in-category sleep experience with superior amenities including a high-quality bed, an invigorating shower experience and a nutritious breakfast. Apart from competitive rates, a Fair Value Promise includes free Wi-Fi, local calls and mini-bar items priced 30 per cent above local convenience stores. Laundry and dry cleaning will also be just 20 per cent above street pricing.

How many in operation None under the refreshed Country Comfort brand; 23 under the existing brand

Expansion plans Aggressive expansion planned for the next five years. Actively pursuing opportunities to manage, lease or franchise Country Comfort in South-east Asia, North Asia, South Asia and Australia/New Zealand.

Brand name NEXT HOTELS

By SilverNeedle Hospitality, Singapore

Positioning 4.5 star

Competitive set Aloft, Crowne Plaza, East, Pan Pacific, Radisson Blu, Traders

Rate From A$230 (US$205) at Next Hotel Brisbane

Why it is needed Next Hotels is a game-changing concept created specifically for the modern business traveller. Guests demand full control over their time, particularly when they are travelling in unfamiliar cities, often on a budget and busy schedules. At Next Hotels, that control rests with guests as cutting-edge technology puts them in charge of everything they do, from reservations to check out. Using the Next Hotels mobile app, guests can check in before arriving through an encrypted code and access their rooms, bypassing the reception desk.

How it reinvents mid/upscale By committing fully to the core concept of having services work according to the guests’ wants, needs and more importantly, schedule. Along with the technology aforementioned, Next Hotels will also feature smart spaces and intuitive service. The Club Lounge, another innovation, is an exclusive space designed to work around each guest’s schedule. It features the ‘in transit zone’ comprising full shower facilities, luggage storage lockers and recliners. Guests can relax during early check in, use free Wi-Fi, or freshen up for late flights after check-out without disrupting their plans.

How many in operation The first Next will open in Brisbane in mid-2014

Expansion plans The second will be in Colombo in a mixed-use lifestyle centre that includes a lifestyle mall and high-rise residential tower.

Iqbal Jumabhoy
MD/group CEO, SilverNeedle
Hospitality, Singapore

Brand name DORSETT; SILKA HOTELS

By Dorsett Hospitality International, Hong Kong

Positioning Dorsett (four star); Silka Hotels (three star)

Competitive set Dorsett: Novotel, Traders; Silka: Ibis

Rate Dorsett’s ADR Jan-Nov 2013: HK$900 (US$116); Silka HK$600

Why it is needed The market is dominated by international hotel chains from outside Asia and this is where we make a difference. Being a true Asian-based company, we have a better understanding of the needs of our Asian travellers, in particular, with regards to hospitality and service.

How it reinvents mid/upscale Dorsett are contemporary midscale hotels in carefully chosen urban locations, providing business and leisure travellers with instant, easy access to city centres and business centres. Anchored in Asian traditions of hospitality with flashes of eclectic British touches, these hotels are energetic, innovative, dynamic destinations designed to create a more energised business and leisure travel experience.

Silka Hotels Designed with the value-savvy and smart traveller in mind, Silka Hotels offer the best in convenience and comfort, providing hassle-free hospitality essentials.

Quick, easy and efficient, Silka targets customers who are looking for the basics done right, with great service and value.

How many in operation Seven Dorsett hotels (two in China,  three Hong Kong and one each in Singapore and Malaysia)
Five Silka Hotels (three in Hong Kong and two in Malaysia)

Expansion plans Eight Dorsett and one Silka are in the pipeline. The group has a strong appetite to grow all its brands, which also include Dorsett Grand and a boutique brand d.Collection, in South-east Asia, with an eye on Australia, more in the UK and Continental Europe.

Philip Schaetz
Senior vice president sales & marketing,
Dorsett Hospitality International, Hong Kong

Brand name EATON

By Langham Hospitality Group, Hong Kong

Positioning 4.5 star

Competitive set Our aspirational competitive set (based on design) includes Ace Hotel, Nolitan, Casa Camper and Mama Shelter.  Actual depends on location

Rate From US$150

Why it is needed Eaton hotels are for the cosmopolitan, adventurous, culturally savvy traveller interested in a lifestyle, fun and affordable stay. This brand bridges the gap between a four-star and five-star.

We understand that different travellers have different needs. So we came up with options like the Smart Room and Family Room, in addition to conventional rooms and suites, all within a reasonable price range and done with great style and design, together with great service and eco-chic hospitality solutions.

Eaton hotels are located in the heart of the city and local experiences. For example, in Eaton Hong Kong, guests can explore the local culture by participating in a series of free hotel activities such as local tours to the nearby tourist spots and daily tai-chi classes.

How it reinvents mid/upscale ‘Cool living’ with style and sustainability is what Eaton is about.  Guests get great value in well-designed, functional rooms with all the essentials, and honest, reliable, dynamic service.  Our Social Hub brings people together to work and play. Eaton’s Affordable Art programme is our way to help new artists to showcase their art using our public spaces as an open gallery. There is a trendy bar with fantastic cocktails and remarkable DJs.

Our design-led rooms are created for guests seeking a more flexible option of a guestroom. These open-plan rooms are suitable for guests travelling alone for leisure or business.

How many in operation Five (Hong Kong, Toronto, New Delhi and two in Shanghai)

Expansion plans We are looking at expanding and increasing our Eaton hotel footprint globally at the right location, with the right partner and opportunity.

Simon Manning
Vice president, sales and marketing,
Langham Hospitality Group, Hong Kong

Additional reporting from Mimi Hudoyo, Rohit Kaul and Rosa Ocampo

This article was first published in TTG Asia, January 17, 2014 on page 11. To read more, please view our digital edition or click here to subscribe.

Travel companies in the region share their projections

Inbound
Inbound operators are hopeful for a stronger performance in 2014, barring any greater fallout from the political unrest in Thailand.

“It’s hard to predict the performance for 1Q2014, especially with the current protests and upcoming elections (in February),” said Hans van den Born, managing director of Diethelm Travel (Thailand). “However, my outlook is not negative at all. Thailand’s inbound market looks set to be steady, based on past experience. We have invested a lot in mature markets, which have been quite steady for inbound (demand).”

This year also brings higher expectations for business volume and profits, said van den Born, as Diethelm will sharpen its focus on the high-end segment, invest more sales efforts in existing consultants worldwide and maximise revenue from mature markets such as Germany, France and Australia. “We expect 10-15 per cent growth for 2014, which is a challenging but realistic goal for us,” he added.

Destination Asia’s Thailand managing director, Addie Hirunkate, also painted a rosy outlook for 2014. She commented: “We are projecting more market share and revenue this year. We will continue to expand market share in our historic markets – Australia, the UK/Europe, the US/Canada – as well as South Africa, Scandinavia/Nordic and Latin America, which are potential growth markets.”

Since opening its doors, neighbouring Myanmar is offering a trove of opportunities for Destination Asia, which is currently developing numerous multi-country itineraries combining Thailand and Myanmar as well as Indochina, Addie pointed out.

But with greater regional integration also comes more competition. Said van den Born: “Many DMCs and (consultants) just want to capture market share by competing on price, pushing down prices which may compromise the quality of service. Margins are already low in Thailand compared with neighbouring countries; quality of service remains my top concern.”

Outbound
Neither the political crisis nor a weakened Thai baht in recent months will dampen Thais’ desire for overseas travel, said Thanapol Cheewarattanaporn, managing director of Quality Express.

He said: “This year, we are projecting an overall 20 per cent increase for outbound travel to South-east Asian countries, with growing media coverage prompting greater travel interest among Thais as the AEC 2015 approaches.”

“Within the region, Myanmar is netting the strongest attention among Thai travellers – a growth of 20 per cent for this market is likely this year,” he added.

Thailand’s political turmoil aside, rising competition poses a key challenge. Said Thanapol: “Our business volume is likely to grow this year, but we do not expect a huge jump in profits; instead we project a revenue growth of between five and seven per cent.”  – Xinyi Liang -Pholsena

Inbound
Hong Kong’s inbound tourism players have a mixed outlook for the market this year.

China Travel Services (Hong Kong), general manager for sales centre – Hong Kong and Macau, Ng Hi-on, said: “It’ll be a better year for shorthaul markets, especially South-east Asia, but longhaul markets like Europe and the US are still not good. Last year, Indonesia performed well with more than 10 per cent growth and this trend will continue in 2014.

“With additional new hotel supply and a more flexible rate strategy adopted by hoteliers due to diminishing Chinese group business, we are able to tap more (inbound) traffic so volume will be up by more than 10 per cent while yield is estimated at a single-digit growth,” Ng added.

Holiday World Tours, managing director, Paul Leung, was less optimistic. He said: “I don’t expect a good year for 2014 as a couple of my key markets like Thailand and the Philippines are suffering from political issues. Indonesia is the only one doing okay.

“Rattled by years of fierce competition, I hardly see the chance to grow yield. Operations costs keep escalating as our suppliers raise their prices.”

However, new infrastructure such as Hong Kong’s Kai Tak Cruise Terminal and the Xiamen-Shenzhen high-speed railway could spur more inbound traffic, especially in the FIT segment. Leung said: “We may be able to pick up some business from overseas travellers flying into Hong Kong to board the cruises.”

China Travel Services also hopes to make stronger waves among Chinese cruise travellers, having entered talks with Hong Kong’s MTR Corporation to roll out a cruise package that includes Guangzhou-Kowloon through-train tickets. “We’ll invest more resources in regular online promotional offers and additional FIT packages through partnerships with Chinese travel consultants,” Ng added.

Outbound
Hong Kongers’ interest in regional destinations will likely stay robust, said Jason Wong, general manager of Hong Thai Travel Services.

“In 2013, we recorded eight per cent growth in volume, with turnover up 15 per cent. Overall, growth in 2014 may not be the same as last year owing to an uncertain global economy,” he said. “Still, consumers continue to spend more, especially for Japan, which has recovered while the yen has depreciated.”

Wong expects the new Xiamen-Shenzhen high-speed railway to boost outbound traffic to China, while the debut of Chimelong Group’s latest theme park on Hengqin Island in January 2014 is a potential new hotspot.

He added: “In 2014, we will reinforce our online platform with more in-depth products and tour options. Since launching our first flagship retail store in Shenzhen last November, we are able to market Hong Thai’s outbound products to mainland Chinese (travellers).” – Prudence Lui

Inbound
With growing air connections into second- and third-tier cities, inbound operators are seeing opportunities in lesser-known destinations and experiential travel.

“Visitors are moving towards experiential holidays, since many have done the New Delhi-Agra-Jaipur route. Kerala, Goa and new destinations in south India are emerging, which are likely to yield higher revenues for us,” said Koushik Goswami, general manager of Travelcorp. “We have received enquiries from new markets like South America and greater interest from Australia and Turkey.”

For Survottam Travels, which expects 10 per cent growth in revenue this year, business models must be built on special interest groups, said managing director, Rajendra Churiwala. “We also expect MICE events to increase as a result of more international flights into the country, and pre- and post-event tours can be a sizable market to lean on.”

The Kolkata-based operator is crafting special programmes in high-yield niche segments such as wildlife, Buddhist, LGBT, medical and women-only tours, Churiwala revealed.

Similarly, Travelcorp has created Ayurveda healing and Muziris heritage packages in Kerala, tea tourism packages in Darjeeling hills, cultural packages in former colonial destinations like Kolkata and Puducherry, plus wine and gastronomy tours, according to Goswami.

While emerging cities may “give higher yield”, the less-developed infrastructure and lack of skilled human resources in these destinations could result in “higher costs to put a good package together”, he added.

Churiwala urges airlines to reintroduce commissions to boost domestic revenues for inbound agencies. “IndiGo has already confirmed two per cent commission for (consultants). We expect other airlines to follow suit as trade representations are being made by IATA Agents Association of India.”

Outbound
Gainwell Travel & Leisure’s general manager, Seema Ahmed, is projecting a stronger business outlook on the premise of greater political stability in India following the upcoming elections this year.

“Based on conservative estimates, 2014 should yield 20 per cent growth in real volume and nett yield with rationalised airfares and more competition in the (Indian) skies,” he said.

Gainwell will promote more cruise offerings and roll out more multi-country tours. “We will focus on more customised tours for small- and mid-size groups, honeymoons and weddings. Other niche segments like 25th wedding anniversaries and 50th birthday celebrations are emerging as lucrative business,” Ahmed added.

On the other hand, the expected withdrawal of AirAsia’s flights from Kuala Lumpur and Bangkok this March and the current turmoil in Thailand may crimp Indians’ desire to travel overseas, he shared.  –  Shekhar Niyogi

This article was first published in TTG Asia, January 17, 2014 on page 1. To read more, please view our digital edition or click here to subscribe.