TTG Asia
Asia/Singapore Tuesday, 30th December 2025
Page 1481

Hostel market booming in SE Asia: C9

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Established hospitality chains moving into hostel markets
Established hospitality chains moving into hostel markets

South-east Asia’s hostel market experienced “skyrocketing growth” in 2017, surging 32 per cent in bed inventory, according to the latest Hostel Market Update by C9 Hotelworks.

The surge brings the bed count in the region to 63,632 across 1,766 properties, led by Thailand with a 41 per cent share.

Thailand now has 722 hostels and 25,207 beds, up 28 per cent year-on-year. Other hostel market leaders in the region are Vietnam, with 221 hostels and 7,763 beds, a bed supply increase of 41 per cent year-on-year.

Top five hostel markets in the region

Bill Barnett, managing director of C9, observed “no sign of deceleration as investment is being embraced by an increasing number of hospitality groups and institutional investors”.

Indeed, the report shows conventional hotel companies investing in hostels, highlighted by Lub d, the region’s largest and fastest-growing hostel group.

Despite the influx of capital into branded hostels, independent hostels continue to dominate the regional market, with 1,532 properties representing 87 per cent of total supply.

C9 further reported that year-on-year market-wide ADR per bed (ADRB) declined with bed supply rising sharply. Singapore has the highest ADRB, followed by Myanmar and the Philippines.

Meanwhile, Barnett observed: “In past years, hostel developers maximised profits by developing properties with high bed inventory and no private rooms. However, micro-private rooms in hostels are becoming essential and impactful to rate yields. This can best be seen in the growth of hostels with private rooms in Indonesia, Thailand and Vietnam which now exceed 50 per cent of overall room inventory.

Going forward, C9 expects privacy will become more indispensible for hostels, prompting an exponential growth in private rooms.

C9 also foresees hostels will increasingly come under government scrutiny due to the growth of shared economy products such as Airbnb.

“Despite an elevated growth of supply, one considerable complication to the hostel market is the ambiguous rules and regulations; these have become a major concern in leading destinations such as Thailand, Malaysia and even Japan. While government regulation is starting to evolve, this remain a key sector issue,” Barnett said.

Trade euphoria short-lived as Sri Lanka restores archaic liquor laws

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Sri Lanka’s tourism sector was thrown into disarray this week as lawmakers flip-flop on plans to relax laws concerning the sale of alcohol in the country.

The country’s finance minister last week issued an order to extend the opening hours at bars, pubs and small restaurants. At the same time, he moved to scrap an archaic law, in force since 1955, which prohibits women from selling or buying alcohol.

Lawmakers flip-flop on plans to relax laws concerning the sale of alcohol

But just three days later on Sunday, president Maithripala Sirisena told an election rally that he was not happy about the changes, which he said the powerful Buddhist clergy was opposed to, before ordering for the old laws to be retained. The notification cancelling the finance minister’s extended opening hours rule is expected to be issued once the latter returns from abroad.

“There is some confusion,” Harith Perera, president of the Sri Lanka Association of Inbound Tour Operators commented. “We were happy and welcomed the (initial) decision,” he said, adding that many tour operators would have already informed their clients of the new opening hours.

Sanath Ukwatte, president of the Hotels’ Association of Sri Lanka, told TTG Asia that they were awaiting the new gazette notification as ordered by the president to ascertain its contents.

“We welcomed last week’s rule allowing extended opening hours for bars and pubs and permitting women to sell liquor. But with the president’s decision to revoke that move, we need to wait and see what the new gazette would say,” he said.

Tourist hotels were unaffected by the old rule as they were permitted to sell alcohol till midnight, and in some cases up to 02.00, but would have benefitted from being able to hire female bartenders.

A state-appointed tourism committee seeking to increase arrivals to Sri Lanka from the current two million to four million pointed to the early closing hours of pubs and restaurants, alongside a lack of entertainment options and night events, as one of the barriers in making Colombo a more lively destination.

Mövenpick bids adieu to seasoned exec Andreas Mattmüller

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Andreas Mattmüller, Mövenpick Hotels and Resorts’ COO for Middle East & Africa, will retire on January 31, 2018.

One of Mövenpick’s longest standing executive team members, Mattmüller spent over 16 of his 43 years in hospitality in senior positions within the Switzerland-headquartered company.

When he joined Mövenpick in 2001, he was charged with the task of building the brand’s presence in the Middle East where its modest portfolio included four hotels in Jordan.

Under his guidance, the company rapidly expanded its footprint and today manages 30 properties across the region, with 15 more under development.

Beyond the Middle East, he has also contributed to developing and establishing the Mövenpick Hotels & Resorts portfolio in both Asia and Africa.

Details of Mattmüller’s replacement will be announced later this month.

New bedbank management structure at Hotelbeds

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Hotelbeds Group has unveiled the new departmental structure of its bedbank business following the integration of Tourico Holidays and GTA into the group.

Following a strategic review, Hotelbeds has created a new departmental structure, with different functions headed by existing senior management from all three companies as well as external hire.

Asi Ginio, most recently CEO of Tourico Holidays, is now director of commercial strategy & strategic partnerships.

Alex Brändle, formerly the SVP of business transformation at GTA, becomes director global business services.

Peter Mansour, appointed as director of product management, has worked in senior roles at companies such as Microsoft and eBay.

Alistair Roger, now director retail travel agencies, very recently joined GTA from Laterooms, where he was chief commercial officer.

Sam Turner, previously the director of sales at Hotelbeds, is now director wholesale & sourcing.

Gareth Matthews will continue as the director marketing & communications, but with his scope now increased to include the Tourico Holidays and GTA brands as well as taking on responsibility for sponsorship partnerships.

All of them will report directly to Carlos Muñoz, managing director of Hotelbeds Group’s Bedbank. They are also be members of the Executive Committee.

Muñoz commented: “In just over three months the integration has progressed significantly. Cross-selling is already underway across the various businesses and already we’re recruiting an additional 200 roles in the Contracting and Yield teams – who will fulfill our objective of directly contracting 10,000 new hotels over the coming three years.”

Yotel launches serviced apartment brand Yotelpad

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Yotel unveils a new extended stay brand

Yotel is making its first foray into the extended stay segment with the signing of five properties under its new Yotelpad brand.

Joining existing brands of Yotel and Yotelair, Yotelpad is meant to marry the essence of luxury serviced apartments with “Yotel’s signature design DNA of making the most out of compact spaces” to meet the requirements of the global citizen at an affordable price.

Yotel unveils a new extended stay brand

Standard Padss will start from 20m2, but larger Pads will also be available and feature Yotel’s adjustable SmartBed, work and relaxing areas, en-suite bathrooms, fully equipped kitchenettes and storage space. Yotel’s signature Technowall will also enable guests to connect and personalise the space to create a homely atmosphere.

Moreover, areas and amenities will be programmed to the local environment and can include 24/7 gyms, bike and gear storage, Amazon lockers, laundry, home cinema and library as well as a club lounge, ideal for co-working, meetings and entertaining friends or colleagues.

Yotelpad will launch globally with five projects already confirmed in North America, Europe and the Middle East. The first is Yotelpad Park City, located at Park City Mountain, the largest ski resort in the US, while the second is in Downtown Miami and will form part of a mixed-use development including 250 Yotel cabins and 208 Pads.

“The added benefit of introducing Yotelpad to our portfolio, is that it not only allows us to enter a new market segment, but also enables us to operate in new locations, not naturally suited to our Yotel and Yotelair brands. Our recent partnership with Replay has been extraordinary – realising just how much potential there is for our new brand in the destination resort market,” said Hubert Viriot, Yotel CEO.

Khiri ventures farther into Indonesia with new Sulawesi office

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Hoven: new office allows Khiri to run own itineraries to Kalimantan, Sulawesi, Moluccas, Papua and more

Khiri Travel has launched an office in Makassar, Sulawesi, opening up itinerary options that include destinations from Kalimantan through Sulawesi, to the Moluccas and Papua.

Sulawesi is Khiri Travel’s fifth office location in Indonesia, after Lombok, Bali, Labuan Bajo (Flores) and Yogyakarta (Java).

Hoven: new office allows Khiri to run own itineraries to Kalimantan, Sulawesi, Moluccas, Papua and more

Khiri Travel Indonesia’s general manager, Herman Hoven, said the new office would allow the DMC to create and operate its own itineraries and signature experiences to its own standards.

Apart from its existing FIT clients, Khiri Travel Indonesia will be running its first-ever group tours in Kalimantan in 2018 for a major UK operator.

Trips to remote Papua will also eventually be created from the Khiri Sulawesi office.

Meidinger returns to Grand Hyatt Taipei as GM

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Grand Hyatt Taipei has appointed Jan-Hendrik Meidinger as its new general manager. He was hotel manager of the property in 2006.

Most recently, he was general manager of The Excelsior in Hong Kong. The German hotelier has more than 25 years of experience in the hospitality industry.

He began his career with the Hyatt Group in 1999 as assistant front office manager at Grand Hyatt Hong Kong, rose to hotel manager of Grand Hyatt Taipei in 2006, then to general manager of Hyatt Regency Guam in 2010, from where he moved to helm Park Hyatt Saigon in 2014.

Scott Dunn ups Asia presence with Country Holidays acquisition

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Scott Dunn now operates in San Diego, London and Singapore

Luxury tour operator Scott Dunn has acquired Singapore-based tailor-made travel specialist Country Holidays as it pursues a global expansion plan.

Over the next 12 months, Country Holidays will be rebranded as Scott Dunn and Country Holidays’ founder, Theng Hwee, will become Scott Dunn’s new CEO – Asia, reporting to group CEO Simon Russell. The existing Scott Dunn Singapore and Country Holidays teams will also be merged and share a common headquarters in Singapore.

Scott Dunn now operates in San Diego, London and Singapore

With the deal, Scott Dunn will have a global team of over 300 staff offering 24-hour service, as well as an expected turnover of S$290 million (US$219.5 million) in 2018.

The London-based luxury travel company had kicked off its global expansion plan in April 2016 with the acquisition of Aardvark Safaris’ US operation, based in San Diego. In September 2016, it opened a sales office in Singapore to service the growing Asian market.

Commenting on the acquisition, Simon Russell, CEO of Scott Dunn, said: “Following our success in North America, we are turning our attention to Asia. Acquiring an operator as established… as Country Holidays step-changes our access to a market with a huge demand for luxury travel experiences.”

Country Holidays is based in Singapore with sales offices in Hong Kong, Beijing, Shanghai and Dubai. The company offers tailor-made trips to over 100 destinations worldwide including to Iran, Ethiopia, Guatemala, Mongolia and Madagascar.

AirAsia Philippines eyes millennial demand with maiden Indonesia service

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AirAsia Philippines inaugurated flights to Jakarta

AirAsia Philippines has launched its first services to Indonesia as part of its South-east Asian network expansion plans, eager to tap outbound demand from Jakarta’s millennial entrepreneurs.

The carrier on January 9 commenced daily flights between Manila and Jakarta, serviced by an 180-seater Airbus 320, while its Manila-Bali flights are scheduled to launch on January 19.

AirAsia Philippines inaugurated flights to Jakarta

With the Jakarta route, the airline will build demand by targeting Jakarta’s entrepreneurs, millennials and digital nomads, according to Jansen Aldrich T Ngo, marketing commercial of AirAsia Philippines.

As part of a promotional activity to kick off its maiden flight to Jakarta, the airline carried young entrepreneurs, startup communities and Philippine CEOs. Jansen added that more start-up events will be held in Manila to bring more CEOs from Jakarta to the Philippine capital.

However, Pauline Suharno, managing director of Elok Tour, urged stronger promotion of Philippine destinations to generate the anticipated demand on the new flights.

Beyond its inaugural flights to Indonesia, AirAsia Philippines is eager to expand to more South-east Asian cities, according to Dexter Comendador, CEO, AirAsia Philippines. He said: “After introducing Manila-Ho Chi Minh City (our first flights to Vietnam, and the two Indonesian services), we plan to launch a new route to Thailand this year and continue expanding to more South-east Asian cities.”

From adventure junkie to travel entrepreneur

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Ken Lau turned his passion into a business when he founded Adventoro, tapping on his dual role as adventure enthusiast and entrepreneur to solve the pain points of fellow travellers.

After checking eight of Malaysia’s 10 water rafting spots off his list and summiting Mt Kinabalu, Lau would in 2015 find his next big adventure in launching his own company, Adventoro Travel Technologies.

He then developed Adventoro, which went live in April 2017 as a portal for soft and hard adventure activities in Malaysia. To date, the portal lists over 500 activities, with the number continuing to grow as Lau teams up with more inbound agents and tour operators.

Much of the thought that went into the portal is based on Lau’s past experiences booking tours and activities online. He said: “I like doing detailed research online as I plan my itinerary. It took me six months of research when I was planning my itinerary to New York!

“What I find lacking on many online travel booking sites is information about the destination and the tours. Like any other (visiting) destination or experiencing an adventure (for the first time), they will always have questions while preparing for the trip,” he elaborated.

Lau tries to remove this pain point of users by incorporating detailed explanation of tours on the portal. Adventoro also offers concierge service, via email, telephone, WhatsApp and a web-based live chat for clients who have questions pre- or post-trip. All bookings also come with instant confirmation.

Going ahead, Lau wants to expand the business beyond Malaysian shores. He hopes to go regional by 1Q2018, but this all depends on getting the right suppliers.

His previous work experience has also proven useful, he told TTG Asia. He was formerly head of partnerships and offline marketing at e-retailer Zalora Malaysia. And at the Malaysian Global Innovation & Creativity Centre (MaGIC), he served as acceleration director where his duties included mentoring and working with start-ups.

He revealed: “I used to mentor start-ups, but now I have started my own. It seems like I have gone through a cycle, but in reverse. If there is an important lesson I have learnt at Zalora, it is not to make assumptions and conclusions about the market. Always test the market through online campaigns, learn from it and move on. You’ll see us doing more of this in 2018.

“When we first started, I assumed clients were looking for half-day and one-day activities. I assumed gender would be balanced and the average client would be in their 30s and 40s. All these assumptions have proven false. Popular tours are three to five days, our clients are more males, and the average age of our clients are between 20 and 30.”