India’s decision that hotel rooms charging above Rs5,000 (US$77.11) would be subject to the highest Goods and Services Tax (GST) bracket of 28 per cent has caught flak from the trade, who believes this will compromise the destination’s price competitiveness.

The tax council has pegged hotels with rooms priced Rs1,000-2,500 at 12 per cent, and 18 per cent for those between Rs2,500 and Rs5,000.

Ankur Bhatia, executive director at Bird Group, said: “The industry has already been severely impacted by the liquor ban and this GST rate comes as another shocker. The new tax structure will position India poorly as a destination in comparison to our international competitors with much lower taxation.”

“By increasing the rate to 28 per cent for mid-to-high class hotels, inbound tourism will take a hit by at least 10 per cent,” said Rishi Puri, vice president, Lords Hotels & Resorts. “More ironic is the zero tax on hotels priced below Rs1,000, which sends out the signal that India prefers backpackers and that those with more money should look for other destinations.”

Dilip Datwani, president, Hotel and Restaurant Association of Western India, added: “While neighbouring countries like Myanmar, Thailand, Singapore and Indonesia levy taxes ranging from five to 10 per cent, we cannot afford to have such kind of high taxation structure. Tourists will simply skip India.”

Not all hoteliers are unhappy, as budget chain OYO founder and CEO Ritesh Agarwal stated that lower tax brackets will spur higher standards for the lower-tier accommodation.

A better value proposition that leverages technology and the synergies from its recent acquisitions is what Hotelbeds expects to offer to its clients in a “competitive” and “fragmented” market, said managing director Carlos Muñoz.

Speaking to TTG Asia in an interview on the sidelines of its inaugural MarketHub Asia event, which took place in Bangkok earlier this week, Muñoz said: “There are many (bedbank) players like us in the market. We are the biggest player but we are only taking up about seven to eight per cent of the market share (prior to Tourico and GTA acquisitions).

“The B2B wholesale accommodation space is still very fragmented, while the OTA market is dominated by two big players (Expedia and Priceline). Our aim is to better support our tour operator and OTAs customers to succeed in this environment against the big OTAs, and if we’re fragmented it’s much more difficult to compete against them.”

The acquisitions of Tourico Holidays and GTA will enable Hotelbeds to take the best practices from each and combine them into “one single platform”, according to Muñoz. “The point (of the acquisitions) is not about getting market share, it’s about creating the conditions to provide more value proposition to our clients and help them face the challenges in the marketplace,” he elaborated.

While Muñoz feels that Hotelbeds has built up a strong global footprint – with Tourico a strong player in the US, and GTA in Asia-Pacific, the Middle East and Europe – he concedes that India still leaves room for further growth and is a market the company will focus on. China, on the other hand, is where Hotelbeds and GTA already have significant presence, he revealed.

When asked if a bigger Hotelbeds will curtail its responsiveness to the market, Muñoz feels it’s the contrary. “Being small is not an advantage in this business, because you need the size to be able to invest in the best technology, products and contracts… we were missing some size (earlier).”

Hotelbeds’ ownership change last year from TUI to two private equity companies Cinven and CPPIB has also given it “access to capital”, including opportunities in inorganic growth, which would enable it to pursue further organic growth, said Muñoz. Also, he does not rule out further acquisitions for Hotelbeds.

A better value proposition that leverages technology and the synergies from its recent acquisitions is what Hotelbeds expects to offer to its clients in a “competitive” and “fragmented” market, said managing director Carlos Muñoz.

Speaking to TTG Asia in an interview on the sidelines of its inaugural MarketHub Asia event, which took place in Bangkok earlier this week, Muñoz said: “There are many (bedbank) players like us in the market. We are the biggest player but we are only taking up about seven to eight per cent of the market share (prior to Tourico and GTA acquisitions).

Muñoz at MarketHub Asia event

“The B2B wholesale accommodation space is still very fragmented, while the OTA market is dominated by two big players (Expedia and Priceline). Our aim is to better support our tour operator and OTAs customers to succeed in this environment against the big OTAs, and if we’re fragmented it’s much more difficult to compete against them.”

The acquisitions of Tourico Holidays and GTA will enable Hotelbeds to take the best practices from each and combine them into “one single platform”, according to Muñoz. “The point (of the acquisitions) is not about getting market share, it’s about creating the conditions to provide more value proposition to our clients and help them face the challenges in the marketplace,” he elaborated.

While Muñoz feels that Hotelbeds has built up a strong global footprint – with Tourico a strong player in the US, and GTA in Asia-Pacific, the Middle East and Europe – he concedes that India still leaves room for further growth and is a market the company will focus on. China, on the other hand, is where Hotelbeds and GTA already have significant presence, he revealed.

When asked if a bigger Hotelbeds will curtail its responsiveness to the market, Muñoz feels it’s the contrary. “Being small is not an advantage in this business, because you need the size to be able to invest in the best technology, products and contracts… we were missing some size (earlier).”

Hotelbeds’ ownership change last year from TUI to two private equity companies Cinven and CPPIB has also given it “access to capital”, including opportunities in inorganic growth, which would enable it to pursue further organic growth, said Muñoz. Also, he does not rule out further acquisitions for Hotelbeds.

As the 3,883-guest Norwegian Joy last weekend pulled into Singapore, a month ahead of its first sailings in China, Norwegian Cruise Line Holdings (NCLH) shared that it is pursuing more than just a numbers game in China, with market understanding and brand loyalty also key to its strategy.

“It’s not our aspiration to be the largest brand in China, we just want to be the best… (the Norwegian Joy) builds on what’s been done to open up the Chinese market over the past years, providing a product that will resonate well with Chinese consumers,” said Harry Sommer, NCLH’s executive vice president, international business development.

NCLH’s partnership with Alibaba, which was announced earlier this month, is expected to not only widen the cruise line’s reach among consumers in China, but also deepen its understanding of the Chinese market.

“Alibaba controls 70-80 per cent of the online Chinese market for everything from paper towels to Maseratis and everything in between. The sheer amount of consumer data they have makes them a force to be reckoned and a partner that helps us understand consumer tastes, what drives purchase decisions, tailor marketing and sales messages and make onboard products valuable.”

NCLH’s senior vice president and managing director for Asia-Pacific, Steve Odell, cites customer loyalty as a “critical part” of NCLH’s larger business and will continue to be so as the company enters China.

In fact, past guests can make up 60 per cent or more of demand, according to Sommer.

The new ship was unveiled in its entirety for the first time last Saturday, as 800 guests in Singapore – including media, travel agents and their customers – were introduced to onboard features such as a Ferrari-branded go-kart track, gaming arcade, 28 dining options and retail brands counting Apple, Cartier, Bulgari and Starbucks.

Indonesian millennials are showing a greater thirst for discovery and spontaneity during their travels, according to an Agoda survey.

Gede Gunawam, country director of Agoda International Indonesia, said: “The survey shows a big shift from the relatively sedentary approach to travel in the past. We are seeing the emergence of a much more adventurous and independent-minded travellers here.”

Of the 1,000 independent millennials (travelling domestically or outbound) surveyed, 40.8 per cent were motivated by challenging experiences and 42.1 per cent the local culture.

Forty per cent indicate they do not need Google maps when travelling, preferring to walk the streets without a plan. In fact, 52 per cent of them take this further and take wrong turns on purpose.

Moreover, there is a growing demand for unconventional accommodation such as homestays with local cultural experiences or tented camps. Gede said the average accommodation spending in Indonesia is between 700,000 rupiah (US$53) and 800,000 per night, compared to 1.3-1.5 million rupiah in Japan.

Reflecting their active nature, the study reveals that as soon as they check into and step out of a hotel, 45 per cent of respondents will explore the destination and 36 per cent choose to find a place to eat.

They might not do it at home, but 67 per cent shop at the local markets, and 45 per cent like to haggle with the local shopkeeper.

While these millennials are independent travellers in many ways, they are also followers in other aspects. Forty per cent of respondents indicated they like to wear matching outfits with their friends. While travelling, 72 per cent take selfies, 64 per cent upload photos on the instagram and 50 per cent check in on Facebook.

The survey was a chapter of the ongoing #agodabasecamp campaign launched in Jakarta on May 17.

The Joint Terrorism Analysis Centre has raised the UK’s terror threat level from ‘severe’ to ‘critical’, the highest the nation has seen in a decade, following an attack in Manchester that left 22 dead and more injured.

The new threat indicator by UK security and intelligence agency Mi5 means another attack is not only highly likely but also “expected imminently”.

An explosion went off during a pop concert at Manchester Arena 

On Mi5’s website, UK prime minister Theresa May was quoted to have said: “The work undertaken throughout the day has revealed that it is a possibility we cannot ignore that there is a wider group of individuals linked to this attack.”

The prime minister has also activated the anti-terror Operation Temperer, a government plan to deploy troops to support police personnel in key locations following a major attack.

Nearly 1,000 members of the Armed Forces were being deployed as of May 24.

Meituan-Dianping, China’s largest service-focused e-commerce platform, has launched Meituan Travel, a new travel and leisure platform consolidating the company’s offerings across accommodation, domestic travel, outbound travel and transportation units.

A highlight of the newly unified platform is the company’s ability to cross sell multi-category products and services. Among all customers booking hotel rooms on the platform, 32 per cent also place dining or catering orders and 17 per cent tickets for activities.

According to a Meituan statement, the platform is already China’s leading online accommodation booking service provider in terms of room nights sold, recording more than 17 million room nights in April 2017.

Meituan Travel partners more than 340,000 hotels in China and 200,000 overseas. It also introduced a Hazelnut B&B application recently, with 150,000 accommodation listings expected in 2017.

It also touts having the largest online domestic attraction and excursion package ticketing platform offering 400 cities and 20,000 packages, with 67 million domestic sightseeing attraction tickets sold in 2016.

For outbound travel, a Meituan-Dianping application and travel guide covers 215 countries and regions. According to the company, it is among the top three most-used apps by Chinese tourists when travelling abroad, next to WeChat and Google Maps.

As of April, 2017, Meituan-Dianping is posting three digit year-on-year increases in revenue and is operating profitably.