Hotels in the Asia-Pacific region reported negative results across the three key performance metrics during 2Q2019, new market data has shown.
According to STR analysts who sample more than 65,000 hotels and 8.8 million hotel rooms around the globe, total occupancy in the region is down 1.0% to 69.1%. Meanwhile, the average daily rate (ADR) has dipped 0.7% to US$97.32, while the revenue per available room (RevPAR) has declined 1.6% to US$67.25.
Limited impact of recent events on Jakarta’s quarterly performance
Jakarta, Indonesia
STR analysts note that the Indonesian general election period in April and May protests and riots had only a limited impact on quarterly performance. Due to the Ramadan calendar shift, May was the worst-performing RevPAR month of the quarter (-17.3%), whereas June produced significant RevPAR growth (+25.3%).
Manila, Philippines
Although occupancy fell slightly due to supply growth (+4.6%), strong demand (+3.5%) helped hoteliers push room rates. According to the Philippines Department of Tourism, the country saw a 9.8% increase in international arrivals during the first five months of 2019.
Additionally, STR analysts note that the Tourism Promotions Board Philippines picked Metro Manila as a MICE location, which will help boost performance levels.
This year’s ITB Asia at Marina Bay Sands, Singapore will adopt Bold Thoughts, Bold Moves as its conference theme, and bring together thought leaders from across the MICE, leisure, corporate, and travel tech sectors.
Across the three-day conference, attendees will have the opportunity to experience over 100 sessions featuring insights from more than 260 speakers including representatives from American Express Global Business Travel, Traveloka, Hotelbeds, and Thomas Cook China.
Bold Thoughts, Bold Moves will feature a range of themed sessions, including Corporate Travel, Travel & Tech, Destination Marketing and Muslim Travel, with keynote discussions conducted in the Knowledge Theatre.
In response to its popularity last year, Knowledge Theatre will also see the return of C-Suite talks. Senior representatives from AKARYN Hotel Group, GCP Hospitality, Intrepid Group, Lonely Planet, THE RIDE and Travelzoo, will share their perceptions on vital issues facing the travel industry today.
A Corporate Travel showcase will also be carved out of the ITB show floor to cater to the growing number of corporate participants. As well, ITB Asia’s corporate partner, ACTE, will again be organising its exclusive Corporate Travel Day on Day Two of the show.
On the Travel & Tech front, leading travel players will identify trends and cutting-edge technologies that are driving the travel industry.
Finally, Destination Marketing and Muslim Travel sessions will feature top practitioners in these sectors dishing out insider tips on getting the most from social media to promote travel destinations; utilising destination brands to attract interest; best practices in developing Muslim-friendly destinations; and reaching out to the modern Muslim millennial.
Kathmandu Marriott Hotel, Nepal
Located 15 minutes from Tribhuvan International Airport, the 10-storey property features 214 guestrooms with all the mod-cons expected of a business hotel. Recreational facilities on-site include the M-Wellness spa with four treatment rooms, an outdoor infinity pool and a fitness centre.
The flagship property also boasts a club lounge with views of the Himalayan Mountains, as well as 740m2 of function space. Guests will be able to choose from four dining venues, ranging from the all-day dining Thamel Kitchen to the in-house patisserie Kathmandu Baking Kitchen.
Twinpalms MontAzure, Thailand
This luxury beachfront hotel in Phuket features 46 suites and penthouses, many of which offer sea views and private pools. Suites range between 70m2 and 220m2 of space with one or two bedrooms, separate living and dining areas, fully-fitted kitchens, and private balconies. Penthouses, measuring from 110m2 to 300m2 in size, also come with one or two bedrooms, but with extra bells and whistles like a wine cellar, bar and private pool. Other facilities on-site include seven F&B options, two swimming pools, a fitness centre, library and retail boutique.
Hotel Oriental Express, Japan
Guests staying at this nine-storey hotel in the Japanese capital will be able to experience a range of Ginza artwork, created in collaboration with galleries in the district. For instance, the lobby doubles as a gallery space, and guests will be able to purchase artwork – revolving around the four seasons of Japan – on the spot. There are 103 rooms across four categories, all decorated with wall art depicting Japan’s seasonal flowers. A restaurant on-site serves daily breakfast in the mornings, and transforms into a cafe later in the day.
Swiss-Belhotel Bogor, Indonesia
The 20-storey property in West Java has 150 rooms and suites, where all rooms come with free Wi-Fi and IPTV systems. The hotel, located on Jalan Salak, also offers facilities such as an outdoor swimming pool with a cafe on the eighth floor, a fitness centre, an all-day restaurant on the seventh floor; and a business centre. Event planners may avail the 14 flexible function spaces, able to host a variety of events for groups between 12 and 800 delegates.
Wolfgang Kiesel has joined Pullman Kuala Lumpur City Centre Hotel & Residences in Malaysia as general manager.
The hospitality veteran – with over three decades of experience – has held senior management positions in Jakarta, Xiamen, Heifei, Kuala Lumpur, Kota Kinabalu, Abu Dhabi, Singapore, Hong Kong, Taipei and most recently, Jinjang in China. He was previously involved in rebranding Pullman Jakarta Indonesia.
Kiesel will be taking the lead in moving the hotel’s financial performance forward and setting a new direction for the enhancement of operations.
The effects of a worsening dispute between South Korea and Japan over trade and historical issues is spilling over into the tourism sector, with South Korean travel firms reporting a sharp decline in bookings and a spike in cancellations for Japan-bound vacations amid a widening boycott of Japanese products and services.
More than 54 per cent of Koreans are participating in a widespread boycott of Japanese products and services, according to the Hankyoreh newspaper. The number of South Korean tourists to Japan fell 3.8 per cent in the first six months of 2019, according to government data. It’s the first decline in five years, with that figure expected to rise in light of the growing intensity of the bilateral row.
Travellers throng the Dotonbori district of Osaka, Japan
If the dispute drags on – neither side is showing hints of giving ground – Japan may fall short of its ambition of welcoming 40 million visitors next year, when Tokyo plays host to the Olympic Games.
Since July 8, there have been a mere 500 bookings from South Korea to Japan per day – less than half the 1,200 daily average recorded previously – according to a report from The Korea Herald.
Similarly, package tours to Japan sold through Gmarket have tumbled 12 per cent between July 8 and 14 from the same period one year ago, the JoongAng Daily reported. Oh Chang-hee, the Korea Association of Travel Agents president, told the paper that the industry expects the number of South Koreans visiting Japan to drop 20 per cent to 6.5 million.
Japanese travel agencies say the first signs of a downturn in the inbound market from South Korea are becoming apparent, but the full impact of the boycott of Japan remains to be seen.
“We are beginning to feel (the effects),” said an official of domestic travel giant JTB Corp, who declined to be named. “We do not ask customers why they are cancelling their reservations. But there is a visible trend of more South Korean travellers cancelling trips to Japan from last year.”
Tatsuki Miura, corporate planning head at HIS, said South Koreans typically account for the second largest number of inbound travellers – behind the Chinese – but in recent weeks, that number has declined to “a couple of percentage points”.
Mark Morimoto, a Japan Airlines spokesman, said figures on Japan-South Korea routes were up seven per cent last May and that there are no indications of a decline at present, though that may change when next month’s figures are released.
“It’s really too early to see any trends, but we are watching the monthly numbers very closely and we are ready to look at campaigns for that market if we feel they are needed,” he told TTG Asia.
Johta Takahashi, a spokesman for the Universal Studios theme park in Osaka, echoed that thought. “It’s much too early to say because we lack specific numbers,” he said.
He added: “Osaka is popular with Koreans, but travel companies will simply switch their attention to other markets and make more flights and hotel packages available to travellers from Hong Kong or China.”
It seems that Japanese travellers, however, do not share the same sentiments as their South Korean counterparts. A JTB official said there has been “no change” in the numbers of Japanese travellers to Korean cities over the coming weeks.
“We are not seeing any impact on outbound reservations to South Korea later in the year either. All the trends appear to be steady at the moment,” he said.
That observation was echoed by Gina Piao, the senior sales official of Jane Tour in Busan. “We have not seen any Japanese cancellations at all. We know that Koreans are cancelling trips to Japan but we are not seeing the opposite happening. And I don’t think we will,” she said.
She added: “This is a question of history and things that happened decades ago. There are so many Japanese who visit Korea and there should not be these feelings any more. I hope things will get better soon.”
The series of recovery efforts and tightened security measures that Sri Lanka has launched in the wake of the Easter Sunday attacks are beginning to bear fruit, as travellers from overseas markets are displaying greater confidence and interest to visit the destination.
At a trade briefing session yesterday, the high commissioner of Sri Lanka to Singapore, Sashikala Premawardhane, said: “Sri Lanka is safe for travel. The government has taken significant measures to ensure a safe and secure environment. In recognition of this, tourists are coming back to the country. Many countries – including the US, China and Japan – have relaxed their travel advisories.”
An aerial view of Goyambokka beach in Tangalle, Sri Lanka
EasterShangri-la Hotel Colombo, which was targeted by the bombing, is now back in business, while national carrier Sri Lankan Airlines is joining outreach efforts to regional agencies.
Mohan Meegolle, Sri Lankan Airlines’ regional manager of South-east Asia, said: “Tourism (to Sri Lanka) has started to pick up, now that security is a bit tight to ensure safety. Visitors can enjoy good (hotel) rates at this point as well.”
And while there were initial concerns among travellers, particularly Singaporeans, the demand has not diminished greatly.
Maleha Maarof, Prime Travel & Tour sales manager, told TTG Asia: “I just came back from a tour with customers. They’re not worried at all. In fact, they say that they feel safe because security is really tight. I have another group leaving (for Sri Lanka) in the first week of August.”
Meanwhile, Airelated Travel is biding its time for more attractive promotions and campaigns to sell to travellers, shared the company’s managing director Margaret Loh.
As part of its outreach efforts, the high commission of Sri Lanka will spotlight three areas of tourism interest: pristine nature, history and island life. The latter will see the introduction of new attractions, such as hot air balloons and scuba diving, in tour packages.
Tourism is an important and growing pillar of Sri Lanka’s economy, with the country seeing a year-on-year growth of 10.3 per cent in arrival numbers from 2017 to 2018. India, China and the UK currently sit in the top three markets.
Malaysia’s Islamic Tourism Centre (ITC) has launched the Muslim Friendly Accommodation Recognition, a form of accreditation for Shariah-compliant accommodation targeting Muslim tourists in the country.
The accreditation, the combined work of the Department of Standards Malaysia and ITC, is said to be the only recognition of its kind in the world issued by a government agency.
Movenpick Hotel & Convention Centre KLIA
ITC’s director general, Abdul Khani Daud, said: “The Muslim Friendly Accommodation Recognition is a continuation of the Star Ratings conducted by the Ministry of Tourism, Arts and Culture (MOTAC). Most of the Muslim-friendly components already existed in the Star Ratings criteria. It emphasises elements such as the hotel providing at least one halal-certified restaurant; conducive facilities such as prayer mats, qibla direction, and daily prayer time information; and segregated swimming pools, spa and gymnasium.”
During the launch, ITC also recognised 12 Muslim-friendly hotels in Malaysia which it had rated earlier this year. The hotels are: Movenpick Hotel & Convention Centre KLIA; Hotel Grand Bluewave Shah Alam; The Light Hotel Penang; Adya Hotel Langkawi; PNB Perdana Hotel & Suites On the Park Kuala Lumpur; PNB Perdana Kota Bharu; TH Hotel & Convention Centre Terengganu; Zenith Putrajaya; Tamu Hotel & Suites Kuala Lumpur; PNB Ilham Resort Port Dickson; Hyatt Regency Kota Kinabalu; and Grand Darul Makmur Hotel in Kuantan.
By the end of this year, Abdul hopes that all hotels in the Klang Valley will be rated. He was also quick to point out that most hotels in Malaysia are already Muslim-friendly, but have yet to be given the Muslim Friendly Accommodation Recognition.
“The Muslim Friendly Accommodation Recognition by MOTAC through ITC is one of the strategies in assisting hoteliers to market their premises to the Muslim market,” Abdul added.
Malaysian minister of tourism, arts and culture, Mohammadin Ketapi, said: “The implementation of the Muslim Friendly accommodation recognition is an important initiative to empower the tourism industry, especially the segment on Islamic tourism. It would give Malaysia an edge in attracting more tourists from the Middle East, which are the biggest spenders in Malaysia, as well as Muslims from elsewhere.”
The tourism minister views the Islamic tourism sector as “one of the high potential market segments” for Malaysia, which welcomed an estimated 5.2 million Muslim tourist arrivals in 2018.
Mohammadin noted: “Malaysia has been in pole position for nine consecutive years in the Global Muslim Traveller Index by MasterCard and Crescentrating, (both reports which study) the patterns and trends of Islamic tourism globally.
The index estimates that Muslim travellers will reach 160 million worldwide by 2020, and will increase to 230 million by 2026.
Choice Hotels Asia-Pac, one of the largest hotel franchise groups in Asia-Pacific, will expand its presence in the region under a new hotel management agreement.
The hotel franchise group has signed an agreement appointing Bangkok-based hotel management company, Krest Hospitality, as its preferred management company in South-east Asia.
Quality Hotel Marlow in Singapore, which is operated by Choice Hotels
With local market expertise spanning hotel management and international branding, Krest Hospitality – an affiliate of Kosmopolitan Hospitality – expects to further develop and expand the property portfolio across Choice Hotels Asia-Pac’s Comfort, Quality and Clarion brands. Krest Hospitality’s responsibilities include identifying new properties, negotiating contracts, implementing staff training and providing marketing services.
Choice Hotels Asia-Pac CEO Trent Fraser said the deal with the local hotel management company will help realise the franchise group’s growth strategy.
“With extensive knowledge and a successful track record in South-east Asia, Krest Hospitality is ideally placed to assist us in expanding our presence in the region,” he said.
Since launching in 2015, Krest Hospitality / Kosmopolitan Hospitality has experienced impressive growth, and currently manages more than 18 hotel properties worldwide.
The strategic alliance will cover Singapore, Malaysia, Indonesia, Vietnam, Thailand, Philippines, Cambodia, Sri Lanka, South Korea, Maldives, Laos, Myanmar, Bangladesh and Bhutan.
Choice Hotels Asia-Pac currently has several properties in the South-east Asia region, and, as a result of this alliance, hopes to see this number further increase by more than 20 properties over the next five years.
The international lodging franchisor also has more than 300 hotels across the Asia-Pacific region.
Think about the last time you booked a flight. Did you visit your preferred airline’s website or call a travel agent? Did you compare prices using a third party’s online platform and then shop around for the best deal?
If you’re like the majority of consumers, you booked your flight online only after you compared the costs of the same flight from different airlines. Indeed, recent research on flight pricing found 56 per cent of travellers cited price as the primary influence on flight booking decisions. What’s more, they conduct a lot of research before booking a flight – McKinsey estimated travellers go through up to 100 touchpoints before making a purchase.
Because travellers booking holidays online are willing to put in lots of research time to get a great price on a flight, it’s no wonder third-party booking platforms like Expedia, Kayak and Skyscanner have become a preference and have transformed the air travel industry.
It’s easy to see why they’ve been successful: these sites considered the customer journey and worked to provide a user-friendly, one-stop price comparison and shopping experience that reduces the number of touchpoints and makes finding the right deal much simpler for customers.
In addressing the customer’s pain points, these third-party websites have outpaced airlines in capturing today’s digital consumer. In fact, these disruptive competitors have done such a great job that many airlines have been unable to keep up with them technologically – including mobile platform offerings and personalisation – and now fail to meet customer expectations altogether.
The tech challenge
The digital challenges facing airlines are multifaceted, but can generally be traced back to a common issue: outdated technology.
While the majority of airlines’ desktop websites are serviceable, they are not nearly as streamlined and user-friendly as the sites from the third-party competitors. A lacklustre, clunky interface can immediately prompt customers to leave, opting for a more user-friendly site.
As for mobile options, many airlines do not presently have mobile-optimised websites, leading to slow page loading times, unappealing interfaces and hard-to-use features. These inefficiencies, coupled with the amount of touchpoints required during the customer journey, cause many travellers to lose patience and head to another site.
Getting an upgrade
Not all hope is lost – there are ways for airlines to implement newer technologies to meet customer expectations, but it does require them to retool their thinking and to make vast changes to their digital presence.
The first shift is to develop mobile-first strategies. In 2017, McKinsey found that 43 per cent of travel-related searches were made on smartphones, and it’s likely this percentage rose over the past year. This means airlines should invest in their mobile channels more heavily than their desktop options to meet customers on the channels they already use. Then, brands need to provide fast, efficient and simple customer interactions by creating mobile-optimised websites and applications.
Aside from booking a flight, the rest of the air travel experience occurs offline, but there are ways to enrich that offline experience with digital tools that provide real-time offers based on location and a 360-degree customer view courtesy of personalised customer data.
For example, when Singapore Airlines revamped its mobile app, the airline added features like loyalty programme user management, Android Pay and Apple Pay, connectivity with tablets and smart watches, and full integration with entertainment systems. Additionally, the app provided customers with travel suggestions and maps when they reached their travel destinations. These changes boosted the app’s ratings by 2.5 stars, and led to 4.6 million downloads and 17 number one rankings on app stores globally.
Let data be your pilot
By implementing digital tools such as automation and machine learning, airlines can easily store customer data such as seat, meal, and entertainment preferences and auto-populate these fields for the customer’s next booking, providing a more personalised user experience – something travellers have said they want.
A study by American Express found a staggering 83 per cent of millennials would allow travel brands to track their digital patterns in exchange for a more personalised experience. And they weren’t alone – 85 per cent of all respondents said customised itineraries based on their personal interests were more desirable than mass-market offers.
Airlines can also boost personalisation through customised prompts for offers and upgrades in the lead-up time to the customer’s flight. Then on the day of the flight, digital boarding passes, reminders of gate numbers, and special in-airport shopping or dining deals based on the customer’s individual data can be sent via push notifications or emails.
By shifting thinking towards the end-to-end customer journey, airlines can not only overcome digital challenges, but exceed customer experience expectations. Though the changes required are extensive, and even overwhelming, they are necessary steps that airlines must take in order to be competitive in the crowded digital travel space.
Eva Air to fly to Milan from next year
Eva Airways will commence a regular service between Taipei and the Italian city of Milan starting February 18, 2020.
The carrier will operate four flights weekly between Taiwan Taoyuan International Airport and Milan Malpensa Airport, utilising a Boeing 777-300ER.
Outbound flights will depart Taipei at 23.00 and arrive at 06.30 the next day in Milan, with a flight time of around 13 hours and 50 minutes. Return flights will leave Milan at 11.00 and arrive in Taiwan at 06.30 the next day, taking around 12.5 hours.
Air Canada to resume full India schedule
Air Canada will resume its Vancouver-Delhi flights on August 1; its daily, non-stop Toronto-Delhi flights on October 1 (eastbound) and October 3 (westbound); and its Toronto-Mumbai seasonal flights will return on October 27.
The Toronto-Delhi flights will be operated initially with Boeing 787 Dreamliners, but beginning October 27, additional capacity will be added to this route with 400-seater Boeing 777-300ER aircraft, featuring three classes of service.
Air Canada’s seasonal Toronto-Mumbai flights will operate four times weekly from October 27, 2019 until March 28, 2020 with a Boeing 777-200LR aircraft.
The airline will have up to 18 weekly flights connecting North America to Delhi from both Toronto and Vancouver, and to Mumbai from Toronto.
Vietjet links up Busan and Nha Trang
Vietjet has launched its latest international route that connects the beachside Vietnamese city of Nha Trang with Busan, South Korea’s second largest city.
The Nha Trang-Busan route operates four return flights per week on Mondays, Wednesdays, Saturdays and Sundays. With a flight time of around four hours and 40 minutes per leg, the flight departs from Nha Trang at 23.50 and arrives at Busan at 06.30. The return flight departs from Busan at 08.05 and arrives in Nha Trang at 10.45.
Vietjet is the first carrier to operate a direct route between the two destinations, making this the airline’s ninth service between Vietnam and South Korea.
Scoot will soon scoot over to Changi Airport’s Terminal 1
From October 22, 2019, Scoot will operate from Singapore Changi Airport’s Terminal 1, moving over from its current space in Terminal 2.
Terminal information on Scoot flights departing and arriving on October 22 will be available on changiairport.com and the iChangi app. All Scoot customers will be progressively updated from late July.
Think about the last time you booked a flight. Did you visit your preferred airline’s website or call a travel agent? Did you compare prices using a third party’s online platform and then shop around for the best deal?
If you’re like the majority of consumers, you booked your flight online only after you compared the costs of the same flight from different airlines. Indeed, recent research on flight pricing found 56 per cent of travellers cited price as the primary influence on flight booking decisions. What’s more, they conduct a lot of research before booking a flight – McKinsey estimated travellers go through up to 100 touchpoints before making a purchase.
Because travellers booking holidays online are willing to put in lots of research time to get a great price on a flight, it’s no wonder third-party booking platforms like Expedia, Kayak and Skyscanner have become a preference and have transformed the air travel industry.
It’s easy to see why they’ve been successful: these sites considered the customer journey and worked to provide a user-friendly, one-stop price comparison and shopping experience that reduces the number of touchpoints and makes finding the right deal much simpler for customers.
In addressing the customer’s pain points, these third-party websites have outpaced airlines in capturing today’s digital consumer. In fact, these disruptive competitors have done such a great job that many airlines have been unable to keep up with them technologically – including mobile platform offerings and personalisation – and now fail to meet customer expectations altogether.
The tech challenge
The digital challenges facing airlines are multifaceted, but can generally be traced back to a common issue: outdated technology.
While the majority of airlines’ desktop websites are serviceable, they are not nearly as streamlined and user-friendly as the sites from the third-party competitors. A lacklustre, clunky interface can immediately prompt customers to leave, opting for a more user-friendly site.
As for mobile options, many airlines do not presently have mobile-optimised websites, leading to slow page loading times, unappealing interfaces and hard-to-use features. These inefficiencies, coupled with the amount of touchpoints required during the customer journey, cause many travellers to lose patience and head to another site.
Getting an upgrade
Not all hope is lost – there are ways for airlines to implement newer technologies to meet customer expectations, but it does require them to retool their thinking and to make vast changes to their digital presence.
The first shift is to develop mobile-first strategies. In 2017, McKinsey found that 43 per cent of travel-related searches were made on smartphones, and it’s likely this percentage rose over the past year. This means airlines should invest in their mobile channels more heavily than their desktop options to meet customers on the channels they already use. Then, brands need to provide fast, efficient and simple customer interactions by creating mobile-optimised websites and applications.
Aside from booking a flight, the rest of the air travel experience occurs offline, but there are ways to enrich that offline experience with digital tools that provide real-time offers based on location and a 360-degree customer view courtesy of personalised customer data.
For example, when Singapore Airlines revamped its mobile app, the airline added features like loyalty programme user management, Android Pay and Apple Pay, connectivity with tablets and smart watches, and full integration with entertainment systems. Additionally, the app provided customers with travel suggestions and maps when they reached their travel destinations. These changes boosted the app’s ratings by 2.5 stars, and led to 4.6 million downloads and 17 number one rankings on app stores globally.
Let data be your pilot
By implementing digital tools such as automation and machine learning, airlines can easily store customer data such as seat, meal, and entertainment preferences and auto-populate these fields for the customer’s next booking, providing a more personalised user experience – something travellers have said they want.
A study by American Express found a staggering 83 per cent of millennials would allow travel brands to track their digital patterns in exchange for a more personalised experience. And they weren’t alone – 85 per cent of all respondents said customised itineraries based on their personal interests were more desirable than mass-market offers.
Airlines can also boost personalisation through customised prompts for offers and upgrades in the lead-up time to the customer’s flight. Then on the day of the flight, digital boarding passes, reminders of gate numbers, and special in-airport shopping or dining deals based on the customer’s individual data can be sent via push notifications or emails.
By shifting thinking towards the end-to-end customer journey, airlines can not only overcome digital challenges, but exceed customer experience expectations. Though the changes required are extensive, and even overwhelming, they are necessary steps that airlines must take in order to be competitive in the crowded digital travel space.