IN ANTICIPATION of the changing preferences of a new generation of travellers, Best Western International (BWI) yesterday introduced its new chic boutique hotel concept, Vib, to international developers and media in Bangkok.
“It is widely forecast that Millennials will account for a third of all travel spend in the very (short term) and 75 per cent of travel spend in 10 years’ time,” said BWI president & CEO, David Kong, on the company’s motivation to develop a new product.
“They look for new experiences that are not cookie-cutter, and want hotels to be engaging and empowering. And today’s travellers are looking for different experiences as well.
“While the economy is recovering in most parts of the world, value is still king – many people are looking for affordability, coupled with stylish design and experience,” he said.
To stand out from competitors in the boutique hotel market, Kong added that BWI has done extensive research on existing boutique and lifestyle brands to come up with a different product, and as a result, Vib hotels will highlight features such as a big and vibrant lobby, smaller rooms and functional technology.
He elaborated: “From a developer’s (point of view), hotel investment is an expensive undertaking and they want to be ahead of the curve, so (Vib) is not just for today’s travellers but selling for success in the future as well; they want a hotel that will be inexpensive to construct but also cost-efficient to operate.”
When asked about the Vib expansion strategy, BWI senior vice president, brand management & member services, Ron Pahl, commented: “We are hoping to sign three Vib projects this year and grow five projects a year. Bangkok is a key focus and we will consider all urban markets with high foot traffic and population.”
He also shared that Vib is envisioned as an “upper middle (scale) project” and will be positioned closer to Best Western Plus. “We don’t see a lot of middle to upper-midscale products, not just in Bangkok but also other cities, so we see opportunities.”
The first Vib hotel is expected to debut in Seoul’s Gangnam district in 2017, featuring 150 rooms, a bar, F&B outlets and a swimming pool.
Meanwhile, BWI is keen to grow its Asian portfolio from the current 128 hotels to 200 properties by end-2016. In the development pipeline are Thailand, Myanmar, Malaysia, Indonesia, the Philippines and Bhutan.
During the press conference, BWI’s senior vice president, marketing & sales, Dorothy Dowling, also announced new strategic partnerships with Agoda.com, Ctrip.com and UnionPay – the latter two being critical to tapping the potential of the immense Chinese outbound market.
A VISION to represent and provide one voice for the emerging Indian wedding market in Thailand is what prompted a group of industry suppliers and hoteliers to come together to establish the Thai Indian Wedding Association (TIWA).
Ram Sachdev, CEO of Premier Thailand, who is spearheading the launch of TIWA, said: “The Indian wedding industry is still in its infancy and very misunderstood by most people (as a low-cost and price-conscious market). I want to overcome these misconceptions as I’m convinced that Thailand has the potential to become a premium Indian wedding destination.
“Our initial task step is to encourage airlines, hotels, venues, restaurants, wedding planners and other suppliers to join TIWA as we seek to create a body that sets and maintains the highest possible standards for Thai Indian weddings.”
Currently in the set-up stage, TIWA is expected to be officially launched within the next two months and the executive committee will be formed in the next fortnight, informed Sachdev. The association is already formally registered in Thailand and has also received support from the Tourism Authority of Thailand (TAT), he added.
Welcoming the launch of TIWA, David Barrett, executive director of events at Amari Watergate Bangkok and Amari Orchid Pattaya, who is also a founding member of the association, said: “It is an opportunity for us as the Indian wedding industry in Thailand is so fragmented. If we can use the voice of TIWA to secure greater support from the Thai government via TAT and talk with other industry bodies, it will be good.”
To assist hoteliers, the new association will produce detailed guidelines and plan educational workshops, as well as sharing important know-how on managing key aspects of an Indian wedding.
TIWA is aiming to register 150 to 200 members for the first year, according to Sachdev. Membership is open to organisations based outside Thailand, as long as they are involved in the Indian wedding industry.
I believe there’s a history between Zitan and InterContinental Hotels Group (IHG)?
I developed a contemporary luxury brand during my IHG days and asked to keep it as part of my retirement. At the time, around seven years ago, there was a restructure at IHG and no one really knew what to do with the brand, then called ‘Huadi’, grand noble house.
Edmond Ip
I sold my brand to Pansy Ho’s (managing director, Shun Tak Holdings) Artyzen (Hospitality Group). She’s very fond of Chinese art and culture, collects art and has in-depth knowledge of Chinese history and literature. She liked what she saw. We explored how we could work together to inject this brand (into the industry), create new ones and recruit a team to run the business.
So what’s your idea of a China brand?
I won’t say Zitan is a ‘China’ brand but a contemporary lifestyle brand based on Chinese fine living. Luxury hotel brands have been based on Western fine living but China, with 5,000 years of history, has its own fine living. Have we ever tried to express it in a contemporary form, so that everyone, be it a Westerner, Asian or Chinese, can enjoy it, just as we have enjoyed Western fine living?
Give me an example of how you would express it.
For example, in the olden days of multi-generation living, there’s a chief-of-staff and a team of people who really look after the family: if it’s cold weather, they put a scarf around you; if you are unwell, they get the cook to prepare a herbal soup for you. The guanjia service is an expression of luxury hospitality, where guests are taken care of like family.
What made you create the brand?
I saw that everyone developed the same brands – if you shuffled these brands, the DNA was similar. Only the logo was different.
In the last 50 years, Western brands were powerful because Americans could afford to travel, thus hotels were built to suit their lifestyle. Now, if China is the biggest economic power, shouldn’t I do something for these people who can afford to spend?
The younger generation of travellers overall also want to have a new experience.
As well, this may sound a bit noble, but we’ve done brands for other people, why not do something for us, a brand which we can be proud of, which represents Chinese art, culture, way of living.
Since then, there have been only a few China-oriented brands. Why?
It’s easier to launch a brand with a common denominator. The people who operate it are used to operating the standard hotels so, when they run the hotel, they always fall back on the traditional Western way.
Secondly, you may not have the entire vision – a girl wearing a cheongsam does not make a luxury lifestyle brand. A concept is not exclusive. I can’t stop anyone from doing a Chinese, Japanese or Western brand, but it is how much you really understand it that makes a difference.
And unless the person who develops it is hands-on to ensure the DNA of his brand is properly executed, you’ll fall back again. Not every company wants to invest to that degree and often, there is time and financial pressure to prevent you from running things differently. That’s life.
The handful of global China brands to date have been created largely by Westerners, unlike Zitan. Why aren’t more Chinese entrepreneurs doing it?
I’m not sure if there aren’t. I’m sure there are a lot of creative people out there. But you also need experiences and an understanding of the business. Fortunately, my team and I have done this for a long time and we have been around. I am a Chinese. Although I have lived everywhere, and appreciate different cultures, I still like my soup. And I have spent enough time in China and have lots of contacts with people on the ground, owners and government people.
Are prospects better now for your brand than when you first created it?
In China, for luxury brands, it is more challenging. Seven years ago, the market was booming – you could launch any brand, as we did with the previous company (IHG). But China is still strong, it will come back.
A lot of people love the idea of Zitan when we share it with them. But if you love it, it does not mean you’ll do it. There is, for example, the risk of ‘Am I the first one?’, no matter how reputable the team backing it is. But there are people who are willing to do it and we are talking to them. We’re also looking at our own investment to create a hotel.
Getting the right location is also a problem. The brand needs to match a location and client base that can afford to pay the rate; places like Shanghai, Beijing, Hong Kong, Singapore, Jakarta – the major gateway cities. Indonesia has big economic growth, driven by domestic consumption, so I think its future is really good.
Pansy has deep pockets. Why can’t she build the first Zitan or do a conversion with Shun Tak-owned Grand Lapa and Grand Coloane in Macau, for instance?
Pansy may have deep pockets herself (laughs) but she has a business to run. We can’t expect her to just come up with x million dollars to build a Zitan and I would be the first to object if it will not bring a reasonable yield. We did one exercise in Hong Kong, for example – we can’t even bring returns for 20 years because of such factors as high land cost.
We will be renovating Grand Lapa and Grand Coloane, which we (Artyzen) are managing. It depends on how much the owners are prepared (to invest in the renovation) that we may convert them to one of our brands. But they may not be a Zitan.
Editor’s Note: Artyzen’s other three brands are Artyzen, a five star emphasising the artistic and cultural enclave; Artyzen Habitat, a 4.5 star catering to extended and short stay, with the first, in Beijing, opening end 2016/early 2017; and CitizenM (TTG Asia e-Daily, October 10, 2014).
This article was first published in TTG Asia, March 13, 2015 issue, on page 10. To read more, please view our digital edition or click here to subscribe
WHOGrowing up in upcountry Thailand, the exposure to the ingenuity of rural cultures from young drives Somsak Boonkam, founder and CEO of Local Alike, to address socio-economic inequalities among less advantaged communities.
Following an MBA on sustainable management in the US, the trained engineer gave up a stable career to work in the non-profit sector, which subsequently led to his founding of Local Alike in September 2012.
WHATLocal Alike is a social enterprise that provides a platform for authentic experiences in community-based tourism (CBT) while helping to preserve local culture and generate income to local villages. Its portfolio of immersive experiences range from joining southern Thai fisherman in Koh Yao Noi for their early morning catch to meeting with hill-tribe tea planters in Mae Salong, Chiang Rai and learning about tribal culture.
On the Local Alike website (www.localalike.com), each listed trip clearly states the itineraries available, costs and a breakdown of how fees contributed will be channelled into the village income and development fund respectively. Each trip also details the village background, location, suggested activities and amenities, alongside photos.
Since its official launch in March 2014, Local Alike has received 660 bookings from within Thailand and abroad, including travel agencies and corporate companies.
WHY“There are some 200 established CBT (providers) in Thailand but they lack reliable channels to connect them directly to prospective customers,” shared Somsak. “My goal is to share the wisdom of indigenous people to the mass market, (and) develop sustainable products and services with a positive impact on society.
He added: “Local Alike can change city dwellers’ perspectives of looking at local villagers.”
TARGETSomsak envisions Local Alike to become a “showcase” for sustainable tourism in the region, while growing into a reliable long-term partner for CBT suppliers.
“We plan to expand to at least 100 communities (from the current 15) in Thailand and neighbouring countries,” he said, citing Laos and Myanmar as the next targets in the enterprise’s growth plans. “Our ultimate goal is to help our communities achieve self sustainability.”
NICCOLO Chengdu is opening its doors on April 15, the first Niccolo by Marco Polo hotel and China’s maiden Ultratravel Collection property.
Located within the International Finance Square Shopping Mall in the centre of town, the hotel is 25 minutes away by car from Chengdu Shuangliu International Airport and is easily accessible by subway.
Scheduled to open in stages from March 28, Niccolo Chengdu will offer 230 guestrooms and suites when fully operational.
The hotel is furnished with a gym, pool and sauna, while F&B options at the hotel include the Tea Lounge, Niccolo Kitchen, Yue Hin Chinese restaurant and The Bar.
For event planners, there is the Niccolo Ballroom on the seventh floor and the Conservatory on the eighth floor, as well as a host of medium and small function venues.
Niccolo Chengdu is China’s first property under the Ultratravel Collection, which will see it share in benefits such as an integrated global platform for guest recognition and loyalty rewards, the Discovery programme from partner Global Hotels Alliance as well as other founding partners Travel Leaders Group and Ultratravel.
A LOCAL DMC has launched tour packages tailored to the needs of persons with disability (PWD), a first in the Philippines.
This comes after Blue Horizons Travel and Tours’ partnership with Wheel Mobile, which is a Filipino transport service for PWDs and funded by non-profit organisations.
Wheel Mobile’s vans, which will be used to shuttle travellers about, can carry two persons in wheelchairs, two additional lightweight wheelchairs that can be folded and secured, and two companions/caregivers. The newest vans have a special holder for a small oxygen tank.
As Gregor Zajc, general manager, Blue Horizons Travel and Tours, told TTG Asia e-Daily: “We have been lacking this product in the Philippines and had been striving for the last three years to put it together.”
Itineraries of the 4D/3N Manila: PWD Tours feature historical areas like the walled city of Intramuros and a day tour to the highlands of Tagaytay. Suppliers including hotels, restaurants and operators have been carefully assessed as suitable for PWD travellers.
Zajc expects demand to come mainly from South-east Asia. “We will not only focus on pure leisure travellers but also businessmen and people attending different kinds of events,” he said.
Blue Horizons is already aiming to offer such tours beyond Manila. Said Zajc: “As pioneers in PWD tourism in the Philippines, we want to go further to make provinces like Cebu, Bohol and Boracay accessible for PWDs.”
AS OF July 8 this year, Scoot will fly 10 times a week to Bangkok’s Don Mueang airport.
Three extra flights will depart from Singapore for Bangkok’s downtown airport on Wednesdays, Fridays and Sundays at 08.45 and arrive at 10.10.
Return flights leave the Thai capital at 03.30 on Mondays, Thursdays and Saturdays starting July 9, to touch down in Singapore at 06.45.
The additional services will be operated on Boeing 787 aircraft that Scoot will begin deploying to Thailand from May, offering in-flight Wi-Fi.
Scoot is offering an early-bird special starting today, with one-way Economy fares priced at S$10 (US$6.80) with a free return ticket. The sale lasts until 14.00 Singapore time tomorrow, for travel period July 8 to October 24.
TOURISM Selangor this month unveiled a series of tour packages showcasing the Malaysian state’s heritage and culture, sports, and ecotourism aspects, and is inviting the trade to spread the word.
The packages are targeted at domestic and international markets and were created by Tourism Selangor Travel & Tours, a division of Tourism Selangor. Travel consultants who sell the packages will be able to earn commissions.
Noorul Ashikin Mohd Din, Tourism Selangor’s general manager, said the packages were rolled out in conjunction with the year-long Visit Selangor Year campaign, which itself rides on the national Malaysia Year of Festivals 2015 (MyFest 2015).
The state tourism body has increased its annual marketing and promotional budget by 30 per cent, with allocations for travel consultant support, fam trips to Selangor for trade and media, and advertisements.
This year, Tourism Selangor is aiming for seven million tourists, up form the 6.1 million in 2014.
THE Japanese government has extended the deadline for the sale of Kansai International Airport until July after no companies or consortiums agreed to meet the US$18 billion asking price.
The government is selling off the airport, which was completed on an artificial island in Osaka Bay in 1994, in an effort to reduce Japan’s national debt, but the price has put off potential investors.
A number of companies and consortiums have expressed interest in purchasing the 45-year lease on the airport, including: IFM and AMP Capital, the owners of Melbourne Airport; and Macquarie Capital, another Australian infrastructure investor, Changi Airport Group, and Ferrovial, a Spain-based multinational.
More than 19.4 million passengers used the airport for international and domestic flights in 2014, up nine per cent from the previous year, but the colossal construction costs incurred in the project have weighed heavily on the operator’s bottom line.
Nevertheless, the operator is pushing ahead with plans for a third terminal on the island, dedicated to LCCs, scheduled to open in 2017.
A hub for All Nippon Airways, Japan Airlines and budget carrier Peach, Kansai International operates 780 flights a week to destinations in Asia and Australia, around 60 per week to Europe and the Middle East, and a further 80 to North America.
INDONESIA welcomed the first Raffles Hotels & Resorts property with the launch of Raffles Jakarta earlier this week.
The 173-key property is part of the Ciputra World super block development, which includes offices, shopping mall, and residences, and linked to art centre Ciputra Artpreneur Centre that opened last year.
It pays homage to the iconic Indonesian artist Hendra Gunawan, and guests will find his works incorporated into hotel décor in both guestrooms and public areas.
The entry of the brand in Indonesia is part of the Raffles Hotels & Resorts and Fairmont Raffles Hotels International’s (FRHI) expansion programme, bringing Raffles’ portfolio to 12 strong.
Richard Schestak, general manager of the hotel, said the hotel is opening at a time when the luxury market is growing for Jakarta, despite the unstable current exchange rate. “Indonesia has good potential, it has strong growth of trade within the country.
“We believe the fluctuation of the rupiah will not impact international travel as we quote in the US dollar, while for Indonesian weekenders, we are offering special weekend rates,” he said.
Artadinata Djangkar, president director of Ciputra Adigraha, the owning company, said some Rp1.2 trillion (US$91.6 million) had been invested in the hotel and he expects an ROI within 12 years.
Jakarta has become an international business city like Singapore and Hong Kong, and Artadinata predicts that 90 per cent of Raffles Jakarta hotel guests will be international travellers.
FRHI also has plans to double its Fairmont Hotels & Resorts portfolio from its current strength of 114 properties within the next five years – with the spotlight largely on Asia-Pacific and particularly China.
