Winning the wallets and minds of Chinese

November 14, 2014

THE “Chinese wallet” strategy has paid off for Dorsett Hospitality International, leveraging mainland China’s voracious travel appetite powered by its rising income levels.

“The ‘Chinese wallet’ strategy for us is simply pursuing Asian travellers, in particular the Chinese,” said Philip Schaetz, senior vice president sales & marketing of Dorsett Hospitality International.

“We are in a sweet spot as we focus on the midscale and value-led hotel segments. We believe there is room to grow this market, especially with Chinese travellers now being more ‘conscious’ when travelling.”

Schaetz added that Dorsett’s over 30 hotels in China, Hong Kong, Malaysia, Singapore and the UK are “located in cities that are of choice with the Chinese traveller”, and that the group has also adapted its marketing strategies to the mainland Chinese’s changing preference from guided tours to independent travel.

“As most of (Chinese travellers’) research is done online, we try to influence them while they are in their dreaming stage to direct them to a destination where we are – done primarily in the social media world,” he added. We focus more on hard-selling destinations and attractions then soft-selling our hotels in that particular destination.”

In China, Dorsett currently has two hotels in the pipeline – the 200-key Dorsett Grand Zhuji (opening 4Q2014) and the 416-room Dorsett Zhongshan (opening 1Q2015).

Seeking meaning in China

By Paige Lee Pei Qi

November 14, 2014

VISIT Finland is courting the Chinese market with its new Meaningful Encounters campaign launched this year, the first time the NTO is investing in an image campaign for China.

This three-year, one million euro (US$1.2 million) campaign leverages the unique winter attractions found in the northern European country.

Anna Leikkari, editor-in-chief, VisitFinland.com, the primary marketing channel for the NTO, said: “The exotic Finnish winter with the northern lights and the one and only Santa Claus are something the Chinese are keen to experience.”

To entice Chinese travellers, the NTO launched a new VisitFinland Chinese campaign page, which has attracted over a million visits since its launch a few months ago.

The features-rich website aims to give a hint of the real experience in Finland by integrating the use of videos on a parallax scrolling page as well as a rich mix of images and videos of the destination.

According to Nina Hilden, marketing manager of Visit Finland, there were 100,075 Chinese overnights in registered accommodation facilities in Finland in 2012. This number increased to 126,495 in 2013.

As of end-August, there were 90,818 Chinese overnights, an approximate 5.8 per cent increase over the same period in 2013. Hilden said: “The amount of Chinese visitors is still relatively low compared to many other nationalities.

“The biggest challenge is the lack of information about Finland in the Chinese market. Due to stiff competition among all destinations of the world, it is not easy to get the message across about Finland’s uniqueness.”

Seeking to change that, the campaign includes print, online media and outdoor advertising, plus product campaigns, for which the NTO will partner with suppliers and Finnish national carrier Finnair for roadshows in China.

A buyer at CITM, Ding Hong Bo, general manager of Shanghai Youqin Information, who led a leisure group to Finland for the first time earlier in August, said: “It was a refreshing experience for all of us because the culture and lifestyle there is something very different for the Chinese.

“I am sure there will be greater interest in this destination now as the younger Chinese travellers especially are looking for unique holidays.”

Delhi-NCR may get second international airport

By Rohit Kaul

November 14, 2014

THE Indian government is mulling a second international airport in Delhi-NCR, through the amendment of an existing clause within India’s airport infrastructure policy which disallows airports to be built within 150km radius of one another.

The plan was revealed to the press on Wednesday by Mahesh Sharma who took over as the new minister of state for Tourism, Culture and Civil Aviation.

“The new airport at Jewar is in the wider interest of the country. Considering the industrial growth in Noida and Greater Noida belt, there is a need to develop infrastructure, like a new airport.

“We will discuss the proposal within the civil aviation ministry and with prime minister Narendra Modi before moving ahead with it,” said Sharma.

The proposal to have a greenfield Taj International Airport and Aviation Hub at Jewar was first mooted in 2001 by the state government of Uttar Pradesh, and land spanning 35 villages was acquired in 2003 for the purpose.

However, the state government had scrapped the project, citing the restrictive airport infrastructure clause.

“If needed more land can be acquired for the project. Delhi-NCR’s population is projected to increase to 2.4 million by 2030 from the current 1.6 million.

“Considering the growth of air traffic at Indira Gandhi International Airport, a new airport near the Indian capital is needed,” Sharma added.

A decision is expected to be made by year-end.

Emirates chases Singapore market, especially corporates

By Gracia Chiang

November 13, 2014

EMIRATES Singapore is shifting into high gear in order to grab a bigger slice of the corporate market, creating a new global sales position here to drive demand for the airline’s five daily flights to Dubai, the most recent of which was launched in August.

Country manager Singapore and Brunei, Andrew Bunn, said that the opportunity to develop the local market had only materialised in December 2012 when Emirates introduced an A380 for one of its daily services permanently, which pumped up capacity by 46 per cent.

The airline now has 35 flights a week between Dubai and Singapore, with 28 of them nonstop and seven via Colombo, in addition to daily services from Singapore to Brisbane and Melbourne.

He commented: “Before my time (Bunn came onboard in April after 17 years at Lufthansa), we would be crying out for seats from inventory control for point-of-sale Singapore. Our connectors from Brisbane and Melbourne were always operating with very high loads, with seats being sold by Australia and the UK, or other markets.”

While only 15 to 20 per cent of revenue from Singapore is corporate, Bunn wants to grow this by reaching out not just to TMCs and business travel agencies, but also travel managers and end-users by building up loyalty through Emirates’ frequent flyer programme.

The new global sales executive hired a month ago would target Singaporean companies that have a regional footprint or South-east Asian companies that may not have a global deal in place.

Bunn elaborated: “What Emirates has traditionally done is focus more on the volume market. But over a period of time, especially with such a great business class product, we can go directly to the corporates. That also protects the yield.

“Singaporean companies have always traditionally picked one carrier, but that is changing. We’re able to position ourselves right up against the competition because of our network and product…Why not take a big aircraft into and out of Dubai and have product consistency all the way rather than connecting somewhere in Europe onto a small aircraft? As our network grows, we’re able to offer that.”

Emirates has no doubt been rapidly expanding its network, with routes launched in recent months including Boston, Chicago, Brussels, Budapest and Oslo. Next March, it is also stepping up frequency on New York (JFK) with a fourth daily flight using an A380.

Calling the new destinations a game changer in being able to attract the leisure market as well, Bunn said: “It’s been almost a little surprising how well received Budapest and Oslo have been with Singaporeans. There’s a real desire to travel and explore. They want to see the Northern Lights and also sail up the Danube.”

These have helped turn Singapore, which has traditionally been strong in transit traffic, into a market in its own right, he added. From a “high percentage” before, transit passengers now generally account for 35 to 40 per cent across all flights.

More Indians heading to Germany for leisure

By Rohit Kaul

November 13, 2014

GERMANY is witnessing fast growth in leisure travel from the Indian market, which was previously largely corporate-focused, according to the latest statistics of the German National Tourism Office (GNTO).

For January-August 2014, leisure and business travel shares stood at 42 and 58 per cent respectively, compared with last full year’s 30 and 70 per cent respectively.

GNTO India director of sales and marketing, Romit Theophilus, said: “Earlier, Indian tourists didn’t consider Germany as a holiday destination, but now they realise there is a lot to explore in Germany for leisure. Stuttgart, Munich, Frankfurt and Berlin are now hugely popular among Indians as leisure destinations.”

GNTO kicked off yesterday in New Delhi a multi-city roadshow that will also cover Bengaluru and Mumbai. More than 10 suppliers from Germany are participating in these roadshows.

Maritim Hotels director of international sales, Mark Spivey, shared: “We are seeing an increase in leisure business from India.

“Indian leisure traffic is predominantly South Germany-centric. Families who have done Switzerland and Austria are looking at Germany as a great value-for-money destination. Indian leisure business has also picked up for theme parks.”

The hotel group has recorded 30 per cent year-to-date growth from the Indian market.

“The demand for leisure travel is coming from markets like New Delhi, Mumbai and Gujarat. However, we are also looking to tap other markets like Chennai, Hyderabad and Bengaluru,” he added.

South Korea welcomes first Ibis budget

By TTG Asia

November 13, 2014

ACCOR’S no-frills brand has landed in South Korea with the opening of the 195-unit Ibis budget Ambassador Seoul Dongdaemun.

The most affordably priced in the Ibis umbrella of brands, this Ibis budget in the centre of Seoul is near Dongdaemun Design Plaza, Myeong-dong District, Cheonggyecheon Stream, shopping malls, and subway lines 2, 4 and 5.

Rooms come with twin-, double- or triple-sized beds, a bathroom with shower, a TV with a multimedia hub, Wi-Fi, a working table, a safe, a mini-refrigerator and a tea/coffee-maker.

Other facilities include a restaurant, a sauna room, a gym, a laundry room, an indoor car park, and a business corner with free internet access and printing services.

Patrick Basset, COO for Accor Thailand, Vietnam, South Korea, Cambodia, Laos, Myanmar and the Philippines, said: “With the successful opening of our Ibis hotels in Seoul and Busan, we are proud and excited to introduce the first Ibis budget hotel in South Korea.

“We saw an increasing demand in Seoul for international-standard accommodations coupled with affordable pricing. We therefore believe this hotel will become a favourite among domestic and international travellers visiting this vibrant city.”

Lufthansa launches Premium Economy ahead of time

By TTG Asia

November 13, 2014

LUFTHANSA will launch its Premium Economy Class this month, nine days ahead of its original scheduled date due to early completion of the new cabin.

The new travel class will be available on November 22, on all routes flown by a Boeing 747-8.

Passenger benefits include free baggage allowance double that of Economy, access to the Lufthansa Business lounges prior to take-off for 25 euros (US$31) and a welcome drink on board.

Each seat in the cabin comes with travel accessories, a water bottle, a power socket and 50 per cent more seating space than Economy. Meals will be served on china tableware.

The airline is offering 15 per cent discount for booking of the Premium Economy seats, up to December 9. Economy passengers can also upgrade to the new class for a fee prior to their flight.

ATPI acquires Griffin Travel

By TTG Asia

November 13, 2014

GLOBAL travel management and events company ATPI Group has announced its second acquisition in less than 12 months – the purchase of Griffin Travel, for an undisclosed sum.

In January, the Group had bought Australia’s largest independent travel management company, Voyager Travel.

The purchase of Griffin, which has an international operation of wholly owned offices in 13 countries and joint ventures in a further nine, increases the Group’s global office footprint to over 100 locations around the world.

CEO Graham Ramsey said: “In 2013, the ATPI Group business delivered gross sales of over £720 million (US$1.1 billion), and achieved its third successful MBO deal in six years. With the acquisition of Griffin, coupled with our significant business growth, in 2014 this will reach in excess of £1.2 billion.

ATPI’s business is funded in partnership with specialist asset manager ICG, and seven major banks comprising Lloyds, ING, HSBC, RBS, Investec, Aimco and Bank of Ireland.

Manathai debuts with four resorts in Thailand

By Greg Lowe

November 13, 2014

INDEPENDENT Thai hospitality management brand, Manathai, has entered the market with the launch of four properties across the kingdom.

Manathai is currently focusing on rebranding and repositioning its refurbished properties, according to COO Christopher Berger.

Berger said that while the brand will ensure a consistent level of service across its portfolio and its F&B brand Pad Thai, care will be taken to ensure each hotel remains unique.

“Customers appreciate that no two properties are alike. All the properties are located in prime Thailand resort locations – Surin beach Phuket, Lamai beach Koh Samui, Bangsak beach Khao Lak, and Hua Hin,” he said.

He added that the company is aiming to provide “a genuine Thai experience” in resort locations, and that target source markets are Thailand, Australia, Scandinavia, the UK, Germany, Russia, China, Singapore and Hong Kong.

“We will also be targeting honeymooners, families and young couples, depending on the hotel, through traditional travel agency channels, as well as social media,” said Berger.

The company is currently offering reduced pre-opening rates for its Samui and Khao Lak properties that are due to open later this month.

Hua Hin is already operational while Phuket will be closed for refurbishment until next July.

Manathai has also acquired Royal Phuket Yacht Club, which is set to come online towards the end of next year.

Value for money

By Paige Lee Pei Qi

November 13, 2014

While considered to be a more economical option for budget-conscious travellers, P2P accommodation booking sites, in actual fact, are also capturing the higher-end of the market. But are they catching the interest of travel agencies?

PandaBed
Lester Kang, co-founder & marketing head

Background
On one of our trips in Europe, co-founder James and I discovered B&B accommodation and were able to stretch ourbudget compared to friends staying in hotels. We also met a friendly local who was able to show us a different side of Europe. Having returned to Asia, James and I saw immense potential to promote such accommodation experiences here. We quit our cushy corporate careers in 2012 to launch PandaBed.

Content
Single rooms, entire homes, villas, serviced apartments and guest houses in popular Asian destinations including Bali, Bangkok, Hong Kong, Koh Samui, Kuala Lumpur, Manila, Phuket, Seoul and Singapore. Over 5,000 homes in the inventory, with this number set to double by end-2014 through the addition of more homes in China, Japan, India and Taiwan.

Pricing
Varies vastly in different cities. However, guests can expect savings of up to 50 per cent compared to a standard hotel and a space that is twice as big.

Demand
Most of our enquiries and bookings are for major capital cities like Hong Kong, Singapore and Bangkok. Increasingly, we are also seeing more enquiries for beach holiday homes in Koh Samui, Phuket and Boracay. Fifty per cent of our guests are from Asia, and the rest come from Australia, the US and Europe. Our average length of stay is 10 nights.

How it works
Guests send a booking request to the host who has 24 hours to confirm the booking. To protect our guests, we will only transfer the funds 24 hours after check-in to ensure there is no issue with the property. Hosts, on the other hand, can request for a security deposit in cash in the unlikely event of damages.

What sets us apart is our PeerMatch option, allowing homeowners to indicate their guest preferences using four major religions in Asia, nationality and age group. Likewise, guests can book a home that is hosted by an owner of similar cultural background. For example, Muslim travellers can stay in a Muslim-friendly home that has a halal kitchen. In addition, while most of our peers levy a 10 per cent booking fee on guests, we do not. Only homeowners are charged 10 per cent for bookings received.

Trade partnerships
We have established partnerships with agencies who do not have access to holiday homes, and we have seen success in this as they are typically managed by direct owners and are not listed on any major OTAs.

Growth plans
As Asia is a highly fragmented region, we plan on localising our website, marketing and payment. This means that apart from cross-border travel (like Hong Kong to Tokyo), we are looking at local domestic travel (like Hanoi to Ho Chi Minh City), and how PandaBed can enable local homeowners and travellers to participate.

Travelmob
Turochas Fuad, CEO and co-founder

Background
The company was officially launched in 2012 by me, formerly the managing director of Skype Asia Pacific, and my co-founder, Prashant Kirtane, ex-senior director of engineering at Yahoo!. The idea is for property owners to rent out their available spaces to travellers looking for a richer local experience. We were acquired by NASDAQ-listed HomeAway in 2013.

Content
Focused on Asia-Pacific destinations, our inventory includes rooms, apartments/houses, villas, houseboats and even private islands. The majority of our properties are considered as secondary or investment homes. Our hosts (suppliers) are mostly property investors, managers or micro-entrepreuneurs. Our properties differ from hotel rooms as most come with a fully equipped kitchen, washer/dryer and Wi-Fi.

Pricing
Listings range from US$15 per night for a budget room, to a private villa (with a full staff and private helipad) that cost more than US$15,000 per night. In other words, we cater to travellers of all budgets. We recently initiated a concierge service to help travellers find their ideal villas in Bali (at any price range). This service will soon be offered to other destinations.
Many travellers find our prices value for money – a group of travellers or family can stay together under one roof and pay less than booking multiple hotel rooms.

Demand
Close to 70 per cent of our travellers are from Asia-Pacific. However, as our properties are also available to HomeAway’s core markets, a growing number of travellers from the Americas and Europe are discovering Travelmob. Popular destinations include urban cities like Hong Kong, Tokyo, Sydney, Kuala Lumpur, Seoul and Singapore. Traditional vacation rental destinations like Bali, Phuket, Goa and Pattaya are also very popular.

How it works
Travellers can quickly locate ideal accommodations and communicate directly with hosts through a private messaging system. For hosts, we provide them with a calendar system, cancellation policies, seasonal pricing tools and an integrated messaging system to offer private discounts (and even last-minute deals). We also facilitate a secure payment/booking platform that caters to their currency of choice. We support 14 local languages.

Trade partnerships
We have integrated our inventory on Tigerair.com and a few global meta-search companies that specialise in P2P rentals. We are also partnering with Dwidaya Tour, allowing travellers to book our properties at the agency’s branches across Indonesia. Our parent company also recently started distributing its vacation rental properties on Expedia’s network.

Growth plans
We are targeted to wrap 2014 with year-on-year bookings growth of more than 300 per cent. With HomeAway as our parent company, we are also looking at offering Europe and Americas properties to our travellers in the very near future.

Roomorama
Jia En Teo, co-founder

Background
Roomorama was launched in 2009 by Federico Folcia and myself. Caught between professional obligations and perpetual wanderlust, we would rent out our New York apartment to friendly folks with a similar desire to live like locals whenever we travelled. At the same time, as avid travellers, we were always on the lookout for unique yet affordable places to stay, but the process was cumbersome and not always safe. We founded Roomorama to make it easy for people to find and book hotel alternatives around the world.

Content
Over 120,000 unique vacation rentals across 6,000 destinations worldwide from waterfront condominiums in Miami to houseboats in Amsterdam and beach villas in Thailand. Popular destinations are North American cities like New York, San Francisco, Toronto as well as European cities like Paris and London. These are mid-range to high-end properties, most of which are professionally managed.

Pricing
Prices differ based on property location and size, but the average price on Roomorama is US$120 per night. Typically, our properties offer a 30-40 per cent discount as compared to hotels of an equivalent standard.

Demand
Most popular destinations are large cities in North America, Europe, and Asia. Our users come from all over the world and are mostly aged between 29 and 35. Most bookings are for nine to 10 nights.

How it works
Once travellers have browsed through available properties and found the one they like, they need to submit an enquiry for the desired dates of travel and card details to pre-authorise payment. Once the host confirms availability, the enquiry becomes a booking. For the safety of users (hosts and guests), this communication happens entirely on the Roomorama platform.

However, Roomorama is one of the very few short-term rental platforms that has also been able to ‘hotelify’ the vacation rental booking process and offer an instant booking service, allowing guests to make a booking and receive their confirmation immediately. This is currently available for a large selection of European properties.

Trade partnerships
Roomorama is open for partnering with OTAs and travel agencies, if they are looking for more properties to offer to their customers. We are working with a selection of OTAs worldwide and offer an attractive CPA model.

Growth plans
By the end of the year, the company plans to roll out more instant bookings for properties in the US and Asia. Within Asia-Pacific, instant bookings are possible in Bali, Phuket and Melbourne for now.homeowners and travellers to participate.

TripAdvisor Vacation Rentals
Laurel Greatrix, spokesperson

Background
TripAdvisor Vacation Rentals began in 2008 with the acquisition of US-based FlipKey. FlipKey powered the initial experience, which has grown since its inception with the acquisitions of Holiday Lettings, Niumba and Vacation Home Rentals.

Content
More than 630,000 vacation rentals in around 190 countries, from city-centre studio apartments to 15-bedroom rural homes. Though we have a large collection of unique properties like boathouses, treehouses, windmills and even castles, the majority of the properties we list are more traditional holiday homes – houses, villas, condos, apartments, cabins, etc.

Pricing
Extremely varied. In Bali, for example, it’s possible to rent a studio for around S$200 (US$154) a week, while the large, luxury properties at the higher end – often with private pools, large gardens, dedicated staff, beach access and more – can cost thousands per night.

Demand
Properties in European capital cities, like Paris and London, see some of the highest demand globally, as do homes in beach destinations like Florida, Bali and Hawaii. Within Asia, beach destinations tend to be the most popular, with Bali and Phuket seeing the greatest interest.

How it works
Travellers enter their destination, dates and property size. They can then further filter results by more specific wants and needs, for instance, price range, and if the property has a private pool, is pet-friendly or has outside space. They can either reserve and pay through TripAdvisor, or contact the home owner or manager. Any property that has a Book Property button can be booked through TripAdvisor and automatically receives our Peace of Mind protection to safeguard the booking. Otherwise, travellers can contact the homeowner or manager via Make Enquiry for more details.

Trade partnerships
Property managers who manage five or more listings can connect their database to TripAdvisor (via FlipKey) through more than a dozen of the most popular reservation management systems. A custom solution can also be developed. Property managers also get insights into modifications that can be made to their listings to maximise exposure, increase enquiries and conversion to bookings with the assistance of a dedicated account manager.
We do not currently work with OTAs or travel agencies.

Growth plans
We’re constantly advancing our business by adding more properties, growing our user base and providing new functionality, such as the relatively recent additions of protected online bookings and payments for travellers, and an option for homeowners to list with us for free and pay only when their property receives a booking.

Airbnb

Background
Founders Brian Chesky, Joe Gebbia and Nate Blecharczyk were the first hosts on Airbnb. When rent in San Francisco went up and they couldn’t afford it, they blew up air mattresses and hosted guests in their apartment. Not only did they make enough money to pay the rent and made three new friends, they soon realised that travel will be more about the experiences rather than the places visited. This gave birth to Airbnb in 2008.

Content
More than 800,000 listings in over 34,000 cities in 190 countries. Accommodation offerings range from rooms and whole apartments to villas, castles, treehouses and islands.

Pricing
Airbnb has something to offer at any price point and for any taste and occasion.

Demand
Having achieved strong success in the US and Europe, Airbnb is experiencing dynamic growth in Asia. Over 20 million guests have booked on Airbnb so far.

How it works
Travellers enter a destination and travel dates into the search bar. Results can be narrowed using filters such as type of accommodation, price, location, etc. Once a place is decided, travellers have to complete their profile and book the space by either using the Instant Book function to confirm their stay without having to wait for a host’s approval or click the Contact Host or Request to Book buttons.

Users have to provide payment details to make reservations, although users booking through the Request to Book button won’t be charged until the host accepts the reservation – a host has 24 hours to respond.

Trade partnerships
In July, a Business Travel on Airbnb portal was rolled out to help business travellers search and book accommodation, and manage their expenses. The site has also entered into a partnership with Concur to enable business travellers to book Airbnb listings directly and have their expense reports automatically linked to Concur’s TripLink service. Airbnb is also working closely with Salesforce and Facebook to reinvent business travel, and more than 30 companies including Evernote, Eventbrite and Lyft have already signed up.

Additional reporting by Hannah Koh, Xinyi Liang-Pholsena, Prudence Lui and S Puvaneswary

This article was first published in TTG Asia, November 14, 2014 issue, on page 16. To read more, please view our digital edition