The city of Shanghai will host ITB China from May 2017

AGREEMENTS are being signed today for the birth of another ITB offshoot, an annual ITB China to be held in Shanghai in May from next year onwards.

At press time full details are not yet available but the China show is expected to be under the charge of Messe Berlin Singapore, which has been organising ITB Asia in Singapore since 2008.

An official press release dated yesterday only had the following details buried in the ninth paragraph: “Starting in May 2017, ITB China will take place annually in the pulsating mega city of Shanghai. The world’s leading travel trade show will provide China’s fast-growing travel market with its own platform, which is the combined product of strong partners. Corresponding agreements will be signed on March 9, day one of ITB Berlin.”

TTG Asia also understands that PATA is in discussion with Messe Berlin Singapore for a possible co-operation on the show, given the association’s strong ties and involvement in China’s tourism industry.

At press time, Singapore Tourism Board’s CEO Lionel Yeo did not respond to an email query on any likely impact ITB China might have on ITB Asia in Singapore.

Meanwhile, Messe Berlin said travel technology companies from China were well represented at this year’s show. A number of Chinese online services providers, including Baidu, newcomer Tuniu, Marco Polo Travel and hotel consolidator Shenzen Dida Travel are at the show.

As well, more and more Chinese companies are having independent stands in Hall 26, where China is, including for the first time China Southern Airlines and several Asian tour operators. ITB Berlin is organising an ITB Chinese Night, a networking event.

See the latest update on this story here.

Bailey: Shift to online?

ASIAN players are hopeful of a strong German market this year despite summer bookings at travel agencies in Germany in January – traditionally the strongest month for summer bookings – showing a sea of red.

GfK, which analyses some 340,000 bookings made at 1,200 travel agencies, shows a 12 per cent YOY fall in sales in January, wiping out 260 million euros of revenue for tour operators and travel agents. The drop followed an eight per cent fall in December. Summer 2016 sales are around 8.6 per cent behind last year’s cumulative total.

Asian sellers interviewed however suggest that the region is holding up as a destination. For some, GfK’s data also points to a shift – or the start of one – by German travellers to book online than using the traditional tour operating booking system.

Centara Hotels & Resorts’ COO, Chris Bailey, said: “Germany is a mature market to a destination like Thailand, so it is quite feasible that with the right communications and inducements, customers are booking online, thus the decline.

“As I view various data, all suggest that German outbound is actually set to grow, although small, from 1.5 to four per cent. The point here is it’s growing, so the question is: does the traditional travel sector in Germany still deliver what the customer wants to buy, in terms of product, flexibility, price and speed to market?

“Many European markets have changed, just look at Scandinavia, where the majority of customers are now booking online through one channel or another.”

Centara is seeing a five per cent rise in German bookings YTD. Tourism Authority of Thailand also shows a 7.14 per cent rise in German arrivals in January, over January 2015, to 86,428.

“That communicates that business is still out there but certainly the market has become much more late-booking as customers are prepared to wait for the best deal. The introduction of low-cost longhaul Eurowings and aggressive online air deals, also fuel a different booking mechanism,” added Bailey.

AccorHotels Asia-Pacific’s chief marketing & distribution officer Graham Wilson said terror attacks in Bangkok and Paris last year might have dampened bookings during December and January.

“Our key German market hotels in Thailand, Australia and Bali actually saw some increase in December and January,” said Wilson. “This is backed by figures from the Indonesian Ministry of Tourism showing German arrivals into Bali were up 14.11 per cent last year, including a stronger December, and Tourism Australia figures showing German arrivals into Australia were up 1.7 per cent in 2015.

Wilson: Confidence will return

“Last year was an extraordinary year for travel to Thailand because most of the main operators had hedged a good rate on the baht to the euro, which gave them a competitive edge when the baht dropped. While the slump in the euro has dampened market sentiment, Asia still represents great value for German and European travellers.”

“There is a lot of change in Germany at the moment which may be impacting travel sentiment but we believe confidence will return through the year.”

Judy Lum, senior vice president sales & marketing of Tour East Group, did see a slowdown in Germany/Swiss markets by 3Q and 4Q2015 after a slight improvement at the start of last year, which for Tour East was offsetted by a spike in UK arrivals.

“While Germans are known to value their holidays, issues of an unstable euro, several unstable European economies still, the threat of terror attacks and then the Zika pandemic are just too much to ignore. Nevertheless, we are optimistic of the European market overall and are confident of a slight improvement at the close of the 2015/16 season.”

Willem Neimeijer, founder, Khiri Group

THAILAND-BASED Khiri Group is rebranding itself as Yaana Ventures as it moves to expand its other businesses while Khiri Travel retains its name and remains a vital DMC division.

Having roped in former Diethelm Travel CEO Richard Brouwer as CEO of Khiri Travel, founder of Khiri Group, Willem Neimeijer, has stepped up as chairman of Yaana Ventures and will be focusing on growing travel products that develop communities and the environment.

While the company is synonymous with the DMC-side of the business since Neimeijer founded it 22 years ago, less is known that it also operates GROUND, which arranges educational trips that develop communities, and the Anurak Community Lodge in Khao Sok, Thailand, and the Banteay Chhmar Tented Camp in Cambodia. As demand for authentic and meaningful travel products continue to rise, Neimeijer believes it’s time to expand GROUND and develop more lodges and tents.

Said Neimeijer: “At the core we are passionate about delivering authentic travel experiences. As a DMC, Khiri Travel has specialised in delivering this to tour operators but increasingly we find that we need to go further in the pursuit of this passion.

“For example, we co-founded and manage the Anurak Community Lodge simply because there was no property in the region that respects nature, the local community and delivers a good product at a reasonable price that we could use.

“We look for synergies in all our ventures, but are aware that each needs a separate, dedicated focus. In short, as entrepreneurs in the travel and hospitality sector, we have ambitions that required a new brand.”

On why the rebranding, which is done by QUO, is necessary, Neimeijer said: “First, it clarifies our aspirations in the travel and hospitality industry in Asia above and beyond the Khiri brand. Second, it frees Khiri Travel, with 22 years of experience, to focus on destination management. Third, Yaana gives space for each of its brands to take the lead and grow.”

Logo of Yaana Ventures

Yaana in Sanskrit embodies ‘journey of discovery’ and ‘entrepreneurial explorers and experienced partners’.

“There is a pattern among our ventures: they are all in the tourism and hospitality sphere, all focused on Asia and all with a distinctive company culture,” said Neimeijer.

Meanwhile, new CEO of Khiri Travel Brouwer aims for quality growth in light of a changed marketplace that demands experiential travel. “We prefer to commit the next five years to strengthening the foundation that has made Khiri Travel what it stands for today.

“Enabling growth for the tour operator today means that the ground partner must ensure that travellers who are leaving their holiday destination have experienced that destination to the fullest. Those experiences are different for each client, therefore a rich variety in product is absolutely essential.

“In plain economic terms, that should bring us a 100 per cent gain over the next five years.”