Moving their game online

May 3, 2013

Surprise, surprise. Customers seeking longer stays are shopping on the web too, and serviced residences are quick to accommodate by making their rooms bookable. Lee Pei Qi reports

Both Frasers Hospitality and Ascott have launched mobile-optimised websites over the last one year, catering to consumers on the go

Believing that online channels are the way to go, Asia-based serviced residence operators have been scuttling to extend their footprint in the space in recent months.

Having unveiled its mobile-friendly website and online chat facility last year, Ascott opened up its global inventory to major OTAs through a web-based connection in April.

Meanwhile, Frasers Hospitality rolled out its mobile website in February, while Far East Hospitality’s (FEH) brand website went live late last year.

Pan Pacific Hotels Group is also intending to relaunch its website by June, targeted to drive more business for both its hotels and serviced residences.

Shifting importance
Frasers Hospitality group director sales and marketing, Joanne Ang, said: “Our shift towards online channels has been substantial over the past three years, and is expected to increase further in tandem with the industry.”

She revealed that among all channels, direct reservations currently rank first, contributing 35 per cent of Frasers’ business. However, website bookings are catching up, with a close 30 per cent. The GDS, which is utilised by travel consultants and TMCs, stands at 10 per cent.

“Using e-channels forms a big part of our marketing strategy, and we have benefited greatly from working with OTAs and our brand website,” said Ang, adding that the company also receives a handful of corporate bookings from travel agencies’ web portals, which have started to feature serviced apartments in packages.

“This will enable users of OTAs to view real-time availability of our serviced apartments and receive instant booking confirmation.
Our focus is to ensure customers can make bookings as conveniently as possible.” – Anthony Khoo, Ascott’s senior vice president, brand and marketing, on sharing inventory with OTAs

Ascott, on the other hand, declined to reveal percentage breakdowns. Its senior vice president of brand and marketing, Anthony Khoo, would only let on that the performance for each distribution channel differs according to market demand.

He said: “For example, in Europe, where we have more guests on shorter stays, the bookings are mainly through OTAs and GDS. In Vietnam, however, where most of our guests are on long stays, bookings come mainly directly from the companies through phones or emails.”

At FEH, even though over 90 per cent of bookings come from email and phone enquiries, building awareness of its online sales channel remains a key initiative, shared COO, Raphael Saw.

He said: “The bigger online footprint has given rise to greater awareness of our serviced residences offerings. As a result, take-up rate through our website has grown noticeably.”

In addition, Saw pointed out that business had been coming in from OTAs too.

According to Andrew Donadel, general manager of Pan Pacific Serviced Suites Beach Road, the two Pan Pacific-branded serviced suites in Singapore receive more than half of bookings from corporates by phone and emails, 15 per cent from their websites and five to 10 per cent from OTAs and GDSs.

Despite the reliance on offline channels, he shared Saw’s sentiment. “The website is an important channel and we aim to drive more business through the website,” said Donadel.

From Left: Oakwood Premier Joy~Nostalg Center Manila, Ascott Huai Hai Road Shanghai, Far East Hospitality’s Orchard Scotts Residences Singapore

On screen attraction
Cost, convenience and the opportunity to gain new markets were reasons cited for wanting to pursue a more aggressive online strategy.

Oakwood Asia-Pacific senior manager, revenue management, Maybelline Teo, found the brand website to be the most effective channel.

From 2011 to 2012, Oakwood’s website saw booking volume jump by 99 per cent. To boost traffic further, an interactive campaign was launched last month to offer online exclusives.

“Not only are distribution costs lower than other e-channels, the opportunities for branding, cross-selling and upselling are easier and within our control,” said Teo.

“Online channels appeal to transient leisure travellers and the more IT-savvy corporate bookers. We are able to enhance their experiences with us at a lower cost and with a wider reach.”

Similarly, FEH’s Saw noted that direct bookings through the website or through calls/emails “generated more in terms of revenue percentage” compared to other channels.

The ability to move sales round the clock is another draw of online. Said Ascott’s Khoo of the group’s tie-up with OTAs: “This will enable users of OTAs to view real-time availability of our serviced apartments and receive instant booking confirmation. Our focus is to ensure customers can make bookings as conveniently as possible.”

Frasers’ Ang added: “The market currently favours both brand websites and online travel portals as they are always available and have their own host of unique navigational experiences.”

From Left: Joanne Ang, Group director sales and marketing, Frasers Hospitality / Raphael Saw, COO, Far East Hospitality / Maybelline Teo, Senior-manager, revenue management, Oakwood Asia-Pacific

In its early days
Despite the eagerness among brands to turn on the online tap, it seems the bulk of business still lies in offline for now.

FEH’s Saw explained: “As the duration of each stay is usually for an extended period, especially for longer-term stays which can be up to a few years, bookings are generally confirmed after enquiries are made over email or phone. Some clients will also need to view the serviced residences first.”

Donadel concurred. “Our focus is more on the longer-staying guests who can stay from one to three months and they tend to prefer contacting our sales managers first. GDSs and OTAs are mostly used by the travel (consultants) and FITs who are mostly short-stay guests.”

However, this situation is likely to evolve, given that more apartment operators are making inroads into the short-stay market and consumers are becoming more comfortable with web bookings.

When this happens, agencies with an online presence will be best suited to ride the wave, providing a comparison shopping option for residences.

From Left: Fraser Residence CBD East Beijing, Pan Pacific Serviced Suites Beach Road Singapore

This article was first published in TTG Asia, May 3 – 16, 2013 issue, on page 8. To read more, please view our digital edition or click here to subscribe.

Indian carriers’ fare unbundling may not result in lower prices

By Shekhar Niyogi

May 2, 2013

INDIA’S Ministry of Civil Aviation has given the green light for Indian carriers to unbundle certain services and charge separate fees for each of them, including check-in baggage, seat preference, selection of meals and beverages, and carriage of sports equipment.

The government rolled out the new guidelines on the assumption that the basic fares will be kept low for price-conscious clientele, while enabling airlines to develop more sustainable operations in an increasingly competitive aviation environment.

To ensure transparency of charges, the ministry’s acquiescence also comes with a corollary that carriers will have to fix and announce their charges in advance.

Sanjay Maniar, director of Kolkata-based Travelaid, said: “With the abnormally high cost of aviation turbine fuel in India and state taxes ranging from five to 30 per cent, the ability to find alternate sources of revenue is paramount for the survival of the Indian carriers.”

Welcoming the move, IndiGo president, Aditya Ghosh, said in a media release that “this step will align India with global practices in the airline industry.”

However, Ravi Luthra, director, New Delhi-based Landmark Tours & Travels, was not optimistic about lower fares. “Eighty per cent of an airline’s costs are fixed so they have very little room to reduce fares. We hope that paying for the additional usage that has been unbundled will not raise the total payout for a flight for the traveller,” he said.

Garuda posts bigger Q1 loss

By TTG Asia

May 2, 2013

NATIONAL carrier Garuda Indonesia recorded a net loss of US$33.7 million in the first quarter of 2013, which was over 200 per cent greater than the same period last year.

Attributing this to lesser domestic and international passenger demand in the first quarter, Garuda president and CEO, Emirsyah Satar, said: “All airlines (in Indonesia) have experienced a similar downturn in traffic demand. It is actually part of an airline cycle to have a slow first quarter.

“However, the flooding in Jakarta in the beginning of the year and the (regional) extreme weather in the first three months of the year made it worse.”

Despite the loss, the airline’s revenue in the first three months rose 12.5 per cent from US$717.4 million to US$807.2 million.

As a group – including Citilink – Garuda’s passenger market share increased from 30.3 per cent to 35.2 per cent while total passenger numbers grew 20.7 per cent to about 5.6 million during the period.

Having received four Airbus A320 aircraft for Citilink and two Bombardier CRJ1000 NextGen aircraft for Garuda in the first three months, the group now boasts a 112-aircraft strong fleet.

Emirates ramps up Bangkok, Hong Kong services

By TTG Asia

May 2, 2013

EMIRATES is set to boost its capacity to South-east Asia with the introduction of a fourth daily Hong Kong flight and a second daily A380 service to Bangkok come October.

From October 27, Emirates will add a fourth daily service from Dubai to Hong Kong on an Airbus A330-200 aircraft in a three-class configuration before upgrading the route to a Boeing 777-300ER later in the year.

Operating as EK386, the flight will depart Dubai at 21.00 and arrive in Hong Kong the following morning at 08.05. The return flight EK387 will depart Hong Kong at 09.40, arriving in Dubai at 14.55.

The Dubai-Hong Kong route is presently operated with A380 and B777-300ER aircraft, and the fourth daily flight will enable Emirates to serve more than 10,000 passengers between the two cities each week.

“Since the launch of the third daily service in October 2012 (TTG Asia e-Daily, October 23, 2012), we have witnessed a huge demand in passenger capacity and flight frequencies,” said Edwin Lau, vice president, Emirates Hong Kong.

Also starting October 27, Emirates will also launch a second daily A380 service to Bangkok. EK372 will depart Dubai at 09.40 and arrive in Bangkok at 19.15, while the return flight EK373 will depart Bangkok at 21.20 and arrive in Dubai the following day at 00.30.

Salem Obaidalla, Emirates’ senior vice president, Commercial Operations Far East & Australasia, said: “Earlier this year we launched our fifth daily flight to Bangkok, and the passenger demand has led to the decision to upgrade one of the services to the second A380 on the route. Thailand has been part of the Emirates network for over 20 years, and in last December we added Phuket as our second Thai destination (TTG Asia e-Daily, December 14, 2012).”

First DoubleTree by Hilton in Bangkok takes root

By TTG Asia

May 2, 2013

HILTON Worldwide opened the DoubleTree by Hilton Sukhumvit Bangkok on April 30, marking the brand’s inaugural debut in the Thai capital and the company’s 100^th property in Asia-Pacific.

Situated 400m from Phrom Phong Skytrain station on Sukhumvit Soi 26, the 23-storey hotel features 177 rooms and suites ranging between 28m² and 58m².

The hotel boasts such leisure facilities as an outdoor swimming pool and a 24-hour fitness centre, while meeting and event facilities include a 351m² conference room, a 56m² multi-purpose room and a business centre.

F&B outlets include Dee-Lite, an all-day dining restaurant serving Thai, Vietnamese and Western fare, and Mosaic, a poolside lounge and cocktail bar.

The company’s other upcoming properties in the Thai capital include Hilton Sukhumvit Bangkok, launching in July 2013, and Waldorf Astoria Bangkok, due to open in 2015.

Hilton Worldwide has more than 170 hotels and over 50,000 rooms in its pipeline in Asia-Pacific, and expects to triple its current portfolio in the next five years.

Malaysian association builds on hospitality training programme

By S Puvaneswary

May 2, 2013

THE Malaysian Association of Hotels (MAH) will conduct a six-month training programme targeted at school leavers and hospitality workers to ease the manpower shortage and reskill service staff.

Known as the National Dual Training System, the training programme will be conducted from June in the four cities of Kuala Lumpur, Selangor, Negeri Sembilan and Sabah.

This will be the second year that MAH is conducting these courses for the Ministry of Human Resources. The programme’s inaugural launch last year saw an intake of 200 apprentices.

Said MAH CEO, Reginald T Pereira: “We expect to train about 500 apprentices. The programme comprises 20 to 30 per cent theory while the rest is practical, with courses on housekeeping, food and beverage, kitchen and front office (operations). Upon completion, participants will be awarded the Malaysia Skills Certificate issued by the Ministry of Human Resources under the Skills Development Department.”

Apple Vacations & Conventions group managing director, Desmond Lee, said: “This is a good move that will not only address the manpower shortage but also create interest among trainees as they learn more about the hospitality industry. The staying power to be part of the industry will be stronger for those who have interest.”

Global leisure and corporate bookings in Q1 outpace 2012

By TTG Asia

May 2, 2013

HOTELIERS worldwide welcomed a promising first quarter as leisure and corporate travel bookings grew over the previous year in general, according to data from Pegasus Solutions.

Rates also delivered, with Q1 figures in the business and leisure sectors climbing past 2012 levels to rise 1.7 per cent and 1.4 per cent respectively.

Leisure travel bookings grew 5.1 per cent through the end of March, helped by an early Easter holiday and despite a shorter February (TTG Asia e-Daily, April 3, 2013). Global volumes in March increased 5.9 per cent year-on-year while rates grew 0.5 per cent. Length of stay and booking lead times were either on par with or gaining on prior year worldwide, indicating a promising consumer trend towards more international and longhaul travel.

“The stabilising or improved performance evident in leisure market indicators suggests hotels should emerge from daily survival mode to actually focus on the future,” said David Millili, CEO of Pegasus Solutions.

“When volume grows with rates, it means hotels aren’t pandering to win bookings by discounting. Instead, they are implementing and maintaining solid rate strategies with an eye to the future, making sure they are both available and bookable to seize a portion of growing demand.”

Corporate travellers also booked 2.4 per cent more reservations globally in 1Q2013 year-on-year, while staying within negative 0.3 per cent of March 2012. Rates for the segment also sustained, increasing by 1.7 per cent for the quarter and still growing slightly by 0.6 per cent in March. Average length of stay and reservation lead times exhibited marginal increases overall, which have held steady year-to-date.

Starwood lures meeting planners with more rewards

By TTG Asia

May 2, 2013

STARWOOD Hotels & Resorts Asia Pacific has rolled out a More Rewards meeting offer with more than 200 participating hotels across Asia-Pacific.

Under this promotion, participating properties will offer five per cent off the Master Account, a signing bonus of 1,000 Starpoints for every 10 roomnights booked and a choice of two value-adds from a selection that includes complimentary high-speed Internet in guestrooms, complimentary welcome reception with selected beverage and canapés for an hour, and two Starpoints for every US$3 spent.

Meeting planners who book at least 150 roomnights will also bag a two-night stay at the new Sheraton Macao Hotel, Cotai Central.

Besides offering additional rewards for holding events at Starwood properties in the region, the hotel group now allows members of the Starwood Preferred Planner (SPP) programme to combine group roomnights consumed in 2013 with those earned through the Starwood Preferred Guest programme. This move will speed up status upgrades for SPP members.

Pacific World hires Mark Searle to grow business to EMEA

By TTG Asia

May 2, 2013

PACIFIC World has appointed Mark Searle as its UK-based sales manager focusing primarily on the development of business to Europe, the Middle East and Africa (EMEA).

Searle took up his position on April 29, reporting to Maria del Campo, head of sales in EMEA. He was last business development manager, UK with AlliedPRA Destination Management.

Shaun Casey, EMEA regional director, said: “The combination of (Searle’s) MICE agency background and the knowledge he has gained of the DMC offering in EMEA will strengthen our presence in the UK market. The timing of this appointment is significant given the arrival of a number of new senior management staff at Pacific World, including Hannelore Carzon in Barcelona, who are already well known in the UK marketplace for their DMC expertise.”

New club opens at Grand Hyatt Macau

By TTG Asia

May 2, 2013

ONCE located on the ground floor, the club lounge at Grand Hyatt Macau now enjoys a prime location on the 37^th floor of the Grand Club Tower and boasts greater comfort and a wider selection of unique event venues.

The exclusive Grand Club takes on a Portuguese-inspired design, using a blend of black walnut wood, precious marble and soothing pastel colours. Floor-to-ceiling windows showcase spectacular views of Cotai.

Besides the main lounge area where breakfast, all-day refreshments and evening cocktails are served to club floor guests, the Grand Club also features four private dining rooms that are available for private event hire. Measuring between 15m² and 40m², these private dining rooms can accommodate eight to 12 guests.

Ideal for dining events and meetings, each private dining room is fitted with a built-in LCD projector or flat-screen TV, entertainment system and audiovisual and lighting that can be controlled via an iPad supplied by the hotel.

Two of the private dining rooms are equipped with video-conferencing capabilities, while the other two has a portable kitchen.

Event planners can also take their functions to the Grand Club’s terrace, a 200m² space that can fit eight banquet tables.