TTG Asia
Asia/Singapore Thursday, 5th February 2026
Page 1823

Trade optimistic as Duterte takes the helm

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Davao City Mayor Rodrigo Duterte speaks before the protesting residents in the city who are calling for the moratorium on housing foreclosure in several housing projects in the city. At least 5,000 homeowners coming from different subdivisions in the city and even from neighboring towns and cities marched around the city on Wednesday afternoon, Feburary 11, 2008 to oppose the transfer of an estimated P13 billion worth of housing loans with the National Home Mortgage Finance Corporation (NHMFC) to a private entity known as Balikatan Housing Finance Inc. (BHFI). AKP Images / Keith Bacongco

Davao City Mayor Rodrigo Duterte speaks before the protesting residents in the city who are calling for the moratorium on housing foreclosure in several housing projects in the city. At least 5,000 homeowners coming from different subdivisions in the city and even from neighboring towns and cities marched around the city on Wednesday afternoon, Feburary 11, 2008 to oppose the transfer of an estimated P13 billion worth of housing loans with the National Home Mortgage Finance Corporation (NHMFC) to a private entity known as Balikatan Housing Finance Inc. (BHFI). AKP Images / Keith Bacongco

Rodrigo Duterte

RODRIGO Duterte, the strongman of Davao whom Filipinos voted in as their new president on Monday’s election, may well foster a more robust tourism landscape in the Philippines, said those in the travel trade.

“He has a very good track record for promoting security, peace and order in Davao City. That’s very important for tourism and if he can bring that to the entire country, then it will positively impact inbound tourism,” said Edwin L Villanueva, general manager, Light Miles Travel.

Duterte, who had been Davao’s mayor for a long time, converted the city from one laden with drugs and killings into one that is now clean, safe and secure.

Concurring, Avelino Zapanta, president and CEO, Seair, said: “His avowed fight against criminality augurs well for tourism. It should add to tourists’ confidence in the peace and order of the country.”

Michelle Victoria, president, Philippine Travel Agencies Association (PTAA), said that Duterte was already “very supportive” of tourism and PTAA events even before his candidacy, and that “it would be very good for the industry if Duterte can make the Philippines safer”.

However, she notes that it’s too early to tell what Duterte’s presidency will mean for tourism. Angel Ramos Bognot, president and managing director, Afro Asian Travel and Tours, agrees that it is still early days.

“But when it comes to the culture of discipline that he is known for, it will help tourism,” said Ramos Bognot, pointing out how millennials who have recently entered the tourism industry lack the culture of discipline and Filipino hospitality.

Others interviewed say they hope Duterte will address daily issues Filipinos face that are also affecting tourists’ experiences, such as traffic and airport congestion, petty crime and rail faults.

Duterte’s plan for tourism is not yet known, but speculations indicate that he wants a woman to replace current tourism secretary Ramon Jimenez, Jr.

Meanwhile, Cynthia Ruano, president of the Davao Association of Tour Operators, noted that Duterte’s economic agenda, revealed yesterday, included plans to advance transportation infrastructure, reducing crime and corruption and promoting tourism in rural areas.

Photo of the Day: Sabre APAC Airline Conference 2016

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kelvin-woo_lydia-koceja_shelly-terry_abdul-razak-mh_chris-wilding(From left) Kelvin Woo, sales director, Lydia Koceja, principal, sales and contracts management, and Shelly Terry, vice president, travel product solutions at Sabre Travel Network; Abdul Razak, manager, GDS management at Malaysia Airlines; Chris Wilding, senior vice president, supplier commerce at Sabre Travel Network

Sabre Travel Network Asia Pacific hosted airline representatives from across the region in Ho Chi Minh City, Vietnam, this week at the Sabre APAC Airline Conference to drive dialogue around current travel trends facing airlines and agents today.

Asia’s next travel generation

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PATA’s second youth travel report reveals the travel traits of Asia’s millennials and how tourism stakeholders can benefit from their hunger to veer off the beaten track

Following its earlier The Rise of the Young Asian Traveller report, PATA’s second youth survey Stepping Out of the Crowd looks at the travel tastes and attitudes of over 1,000 millennials (16-35) from 13 source markets in Asia as this generation will be the main demographic behind region’s outbound tourism growth in the next 10-15 years.

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A high proportion of millennials (four out of five respondents) has taken an independent trip outside of their home country. However, overseas travel is still at a low level as only 47% of respondents had taken one trip away from their home country in the past 12 months and 20% had taken two overseas trips in the past year.

For these young travellers, free time is in short supply, making short breaks of between two to five nights the most popular option (47%), while longer holidays of one to two weeks were also common (30%). Given the high proportion of student respondents (66%), it is unsurprising that one in five stated time was more of a constraint on their travel plans than money.

Extended holidays of more than two weeks are rare though. This correlates with responses that respondents felt they did not have enough time in their destination. This may be due to the reason that the concept of extended travel periods such as a gap year is relatively uncommon in Asia, where cultural and family expectations of studying hard and climbing up the career ladder were more important than travelling.

As such, the lack of available free time is the biggest limitation to how much Asian millennials can travel. Limited budgets come in at a close second, and this influences the number of days that their money will last for food and accommodation.

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Millennials are tech-savvy and global curious, which is also driving the growth of free and independent travel. With the prevalence of mobile devices that can assist planning on the go, and a constant flow of travel inspiration and advice garnered from social media, millennials are well-prepared to travel freely.

More than half of the respondents expressed a major preference for booking all aspects of their trip independently, without the need for packaging by an OTA, or the assistance of a traditional desk travel agent. This is in line with the wider consumer trend in travel which is leaning towards booking tours without the middleman, as the Internet has allowed for rapid price comparison and the ease of online booking.

For the 16% of respondents that indicated that someone else booked the trip for them, this may be attributed to parents or family members. It is also significant that a mere 11% of respondents used the services of a traditional travel agent.

12-may-booking-method

Composing an itinerary while on the go is apparently the preferred way to plan – 83% Asian millennials said they will create a basic plan of what they want to see in advance, and work out the rest of the details when they arrive at the destination.

Looking at traveller review websites such as TripAdvisor was the most popular way of finding information on activities and attractions (27%), while one in five respondents said that they were inspired by what their friends posted on social media (20%).

This shows that social media is a very effective and useful tool in inspiring, informing and recommending travel options to Asian millennials. It also shows how peer groups play a part in influencing the decision of this demographic, significantly more than any official source of information such as local tourism board websites, visitor information centres, and advertisements in traditional media. It is also worth noting that the two trust sources of information for young Asian travellers were the printed guide book and professional travel blogs (both 13%).

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Time is of the essence for young Asian travellers when visiting a foreign city. They prioritised seeing the big attractions first, seeing the city with the aid of an organised tour (taking a bus or boat where possible) or following a pre-set tour individually, as such programmes are usually organised for a pre-defined amount of time, thus enabling easy scheduling and preventing wasting valuable travel time.

Spontaneity, or the notion of ‘discovering the backstreets’ are not very popular among Asian millennials, perhaps because they are not seen as a good use of time. Letting someone else take charge of the plans was the least favoured option, indicating that young Asian travellers like to take control of what they will be doing in order to ensure that they will get the most out of the trip.

Connecting with the city through its heritage, traditions, events and locally-produced items is a major priority. Asian millennials, similar with their global counterparts, like to seek out what makes a city’s past distinctive amid a globalised world.  Modern culture and ‘cool things to do’ for local youth are also a major attraction, with 85% indicating that they like to discover modern culture and fashion trends.

Food is fundamental – but in the streets and at the supermarket, rather than at the table. A significant 85% of respondents said that they love to visit a food market, and 72% liked to visit a supermarket when in a foreign city. Experiencing a city’s nightlife is not a priority for Asian millennials on the other hand. Perhaps in contrast to their counterparts in other regions of the world, going to bars and clubs is not rated so highly in terms of getting to know a new city.

This article was first published in TTG Asia, May 6, 2016 issue, on page 9. To read more, please view our digital edition or click here to subscribe

The Grand Ho Tram Strip guns for stronger international MICE bookings

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The property hosts corporate golf events at its award-winning golf course, The Bluffs (pictured)

The Grand Ho Tram Strip in Vietnam is unveiling a new brand campaign by early Q3 to grow its international MICE bookings, as it continues to grow its hardware three years on.

Director of sales and marketing Khanh Le, said the property has established a strong following among domestic vacationers since its opening in July 2013, and currently draws a 70-30 domestic-international split in corporate event bookings.

He said: “We are in the process of rolling out a programme to drastically increase and enhance our brand visibility in international markets, which we believe will raise our international bookings closer to a 50-50 split.”

Khanh believes that “being the first and largest international standard integrated resort” in Vietnam has given The Grand “a headstart” in attracting corporate events, particularly teambuilding programmes. It offers 541 keys, 10 F&B outlets, four swimming pools, a 2.2km stretch of private beach, a Grand Ballroom for 1,800 people and several break-out rooms, and award-winning The Bluffs golf course and clubhouse which houses additional meeting venues.

“The Bluffs has hosted countless corporate golf days and industry tournaments. It adds another arrow to the bow for MICE planners looking to host events at The Grand,” remarked Khanh.

In January the property unveiled new entertainment facilities which are expected to raise the fun factor for corporate events. These new hardware includes a 3D cinema, karaoke lounges, retail outlets and the Central Park, a one-hectare attraction that houses an 18-hole miniature golf course, a football field, a basketball court, a pétanque court and more.

The integrated resort will expand further, with plans for a second tower, a residential condotel and a vacation home close to The Grand as well as a luxury villa on the golf course.

“We will start to see these new developments coming on-line next year and rolling out steadily from then on. Later phases will see additional resorts, including one with an international standard casino,” shared Khanh.

Western Australia reinstates funding for Perth Convention Bureau

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The government of Western Australia has decided to retract the proposed cuts in state funding for the Perth Convention Bureau (PCB).

The move comes on the back of lobbying efforts by business events stakeholders in opposition to tightened funding announced in the state budget, which would have seen funding for PCB slashed by up to 30 per cent over the next three years (2017-19).

In addition, opposition party Western Australian Labor Party had in March jumped in to pledge an investment for the conventions promotion body, which works out to an estimated 60 per cent increase in funds.

Welcoming the state government’s decision, PCB CEO, Paul Beeson, said: “We are grateful to
the premier and state government for the reinstatement of this funding, particularly given the fiscally tight environment in which the government currently sits.

“It’s an important acknowledgement of the high return on investment PCB offers and recognition of the role of business tourism in the economy and fabric of our state.”

Elaborating on the “high ROI”, PCB estimated that it generates a return of over 30 times the amount invested by the state, far exceeding that seen in competing destinations such as Bureaux in the east coast.

Further entrenching the importance of the business events sector to Perth, PCB stated that conference delegates spend over five times more than leisure tourists.

Beeson concluded: “In the context of our state’s increasing reliance on the visitor economy and the expanding venue and accommodation stock, any cuts to such a successful organisation and industry are illogical.”

InterContinental Wellington introduces 360-degree virtual site inspection

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EVENT planners can now go on a site inspection of the InterContinental Wellington conference floor without taking a single step, thanks to a new Google Maps feature.

Instead of seeing static pictures, clients can now take a 360-degree view of the hotel’s six function rooms and pre-function lounge.

The hotel’s business development manager, Julien Albrecht, said that while the ability to show a 360-degree view is not new technology, using it as a room-space sales tool that can stand in for physically visiting a property appears to be relatively new for the MICE market.

Albrecht added: “Time constraints and geographical distance means a lot of decisions have to be made by the event planner remotely, with the client unable to visit a space before the day of the event. Rather than seeing static pictures, taking a virtual tour around the floor can give the client the reassurance that this (the function space) is the right fit for them.”

[PERSPECTIVES] Lowest Available Hotel Rates: A Friend or Foe?

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OWING to increased Internet penetration and the booming sharing economy, which has an impact on the lodging sector, the online travel market in Asia-Pacific has grown in recent years. Technology has made the travel search and booking process easier, spurring travellers to manage their travels on-the-go at the very last minute.

Arguably, the chief benefit of online travel agents (OTAs) – both generalists like Booking.com and Expedia, as well as specialists like Hostelword – is the convenience of choice that they bring to the table. Travellers are easily able to compare hotel rates and then select the lodging that best suit their preferences.

For corporates, this transparency and access to knowledge presents the opportunity to benchmark their negotiated rates. Other value propositions include boosting demand during periods of low hotel occupancy, and connecting hotels to travellers that did not initially have them in mind.

While OTAs can bring benefits, there are also several challenges in terms of value and flexibility. The cost of OTA commission for hotels has had significant impact on the cost of sale for hotels in this distribution channel; which – if the hotel is heavily reliant on OTA business – can influence rate levels. This means that buyers are not getting the best value for their money, and hotel guests are paying more for their room regardless of whether they use the online platform or not. It is no wonder that hotels like Hilton Worldwide and Marriott International are educating consumers on the benefits of booking direct, via global campaigns and awareness of loyalty benefits.

At the most fundamental level, a hotel’s objective is to fill its rooms with guests through a booking channel that does not significantly reduce its margins. But how does this go hand-in-hand with the priorities of corporates, which includes ensuring that hotels are of appropriate quality, are available at the lowest possible price and can be booked through the preferred channels?

At HRS, our contention is that the challenge lies not in finding the lowest hotel rate, but finding the best accommodation option, at the lowest acceptable price taking into account all the key criteria within any corporate travel policy.

Demand-based pricing by its nature is dynamic, and ever-changing, and it means that price does not necessarily equate to quality. It does not always follow that a better quality hotel costs more, and conversely, that the lowest-cost hotels are of lower quality. Additionally, the lowest rate may not be the most cost-effective rate, as negotiated rates often include corporate-specific criteria, such as airport or local transportation, breakfast, Internet, parking and other amenities.

Another key consideration is the flexibility in booking conditions required by the corporate. Generally speaking, the buying power and procurement expertise of larger corporates will demand the flexibility of Last Room Availability (LRA) to ensure access to availability when needed. This essentially means that corporates (or anyone) with an LRA clause has a right to buy any room at their contracted terms and prices – even if the hotel has only one matching room to sell.

In my opinion, a clear definition of LRA clauses must be agreed upon because it could include a higher category of room type, such as a suite – for which a premium is typically charged given that it displaces higher-paying businesses. To extract the best value, however, buyers can consider negotiating for LRA at no additional charge.

For corporate travellers, finding the lowest rate on a one-off basis, too does not leverage on the volume generated by their colleagues and the negotiation power that their companies possess. Having established earlier that OTAs have fuelled misunderstanding of rate mechanisms, corporate travellers should not be wasting their time in search of online ‘bargains’ and making bookings outside the corporate travel policy.

Turn your knowledge into savings.
todd_arthur_13
Todd Arthur is the managing director, Asia-Pacific of Hotel Reservation Service (HRS). HRS is a global hotel solutions provider and serves more than 40,000 corporate customers worldwide through its inventory of more than 300,000 hotels in 190 countries.
Arthur’s core responsibilities include setting the business direction, driving organic growth with new and existing customers across Asia-Pacific markets, establishing strategic partnerships and talent development.

Article by Todd Arthur

Pullman Bangkok Hotel G reels Singapore groups in with special meeting deal

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The foyer of The Library, a collection of four meeting rooms designed to resemble an architect’s studio

A FULL-DAY and half-day meeting package, priced at S$50 (US$37) and S$40 per person respectively, are being offered to Singapore groups hosting their gatherings at the Pullman Bangkok Hotel G in Thailand.

The hotel, which had unveiled a slew of updated event spaces late last year, is throwing in various complimentary perks such as one room upgrade to an Executive Room with Executive Lounge benefits for every 20 confirmed rooms per night, accommodation for the organiser during the event, group photo service, Wi-Fi access in the meeting room, and 10 per cent discount on hotel limousine service with a choice of BMW or Toyota Camry.

Meeting groups can also enjoy the hotel’s newly renovated G Deluxe Room at approximately S$160 per room night (non-commissionable), which comes with two free soft drinks from the mini bar each day and a welcome drink at Playground Bubble and Mixology Bar.

The offer is valid for bookings and stays made by September 30, 2016.

Other terms apply.

Call (662) 238-1991 for more information.

Sabre touts ability to find lowest fares globally

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flight-search

ACCORDING to Sabre, its air shopping platform returned the lowest fares globally when compared to other leading GDSs.

The finding was the result of research by Fried & Partner, a German marketing and management consulting company, in partnership with Sabre.

Results of the Low Fare Study showed that Sabre found the lowest fare 12 per cent more often than Amadeus and 9 per cent more often than Travelport.

This also led to substantial discounts, with Sabre fares saving travel buyers on average US$20.50 and US$11.40 compared to Amadeus and Travelport respectively.

Explaining why this was an important finding, Sean Menke, president, Sabre Travel Network, said: “Travellers want to know that no matter which airline, itinerary and services they choose, they are getting a good value for their money and the experience that is right for them.”

He added: “For travel agents especially, the ability to consistently find the lowest fare is foundational to improving their service quality and generating savings for the traveller at the same time.”

When contacted for comment, an Amadeus spokesperson said: “This study was commissioned by Sabre and does not reflect a neutral or objective view of Amadeus’ search results.

“We believe that search requires an understanding of the business practises of online travel players and airlines, and most importantly that search is about content. In comparison to other GDSs, Amadeus has more airlines with content agreements.”

Travelport similarly finds flaws in the study, noting that it was funded by Sabre, thus skewing results in their favour. “For example, the study compares fares in certain key markets such as the US, based on a Travelport pricing engine which is not even used there,” said a Travelport spokesperson.

“The data produced by Sabre’s marketing study is not in line with our data, or the feedback we receive from our customers who also monitor their performance very closely.”

More consolidation expected in China’s package tour market

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Chinese travellers pose for a photo in Brussels, Belgium

CHINA’s packaged tours industry will continue to consolidate, according to a study by Morgan Stanley Research, recognising the massive growth potential for vertical integrators in the highly-fragmented market.

The report showed that the packaged tours industry is seeing strong demand in the outbound segment, owing to language barriers, visa requirements and other complications in planning trips outside of China.

The industry saw a total transaction value of 500 billion yuan (US$76.7 billion) in 2015, up 19 per cent year-on-year, with the number projected to grow to about 700 billion yuan by end-2018.

OTAs are expected to be a chief beneficiary of this trend as online penetration for packaged tours are estimated to have only reached 13 per cent, compared to more than 50 per cent for air ticketing and about 20 per cent for hotel bookings.

The report cites leading Chinese OTA Ctrip as an example, which has been integrating the value chain since 2006 by investing in an airline, hotels, wholesalers and an offline retailer.

“Eventually 
we could expect a few vertically integrated travel 
companies to control a significant share of the
 mass market, and we expect upside in margins and
 market share, similar to what TUI and Thomas Cook 
have experienced historically,” stated the study’s authors.

Even smaller OTAs such as Utour, which accounts for less than two per cent of
 the market with a total revenue of
 8.4 billion yuan in 2015, could see its revenue increase by 60 per cent with just a one per cent expansion in the market.

It further added that the highly-fragmented online packaged tours market makes the segment ripe for consolidation.

The offline packaged tours market is even more fragmented, stated the report, with travel services revenue of China’s leading traditional travel agencies – CITS, CYTS and CTS – accounting for a combined market share of only 4.4 per cent in 2014.

This provides even greater opportunity for OTAs to integrate the value chain by acquiring its offline counterparts.

While both OTAs and offline travel agencies are trying to expand into each other’s areas, mainly by buying shares or via strategic collaboration, the stronger position held by OTAs, such as Ctrip’s more than 70 per cent market share, makes it difficult for traditional agencies to find an alternative collaboration partner.