DESTINATION Resorts & Hotels (DRH) has disbanded its hotel management arm Archipelago Hotels & Resorts but its plans to export “the art of Malaysian hospitality” lives on through Datai Hotels & Resorts.

The brand, whose roots lie in the sole Datai property in Langkawi, will soon enter Johor as part of DRH’s integrated development Desaru Coast, which comprises four hotels, two golf courses, two ocean themeparks, a waterfront retail and lifestyle village and a hospitality, tourism and culinary arts school.

General manager of The Datai, Langkawi, Anthony Sebastian, has been seconded to oversee the opening of two Datai hotels in Desaru Coast – the five-star Datai Desaru and four-star family-oriented theme hotel, Anak Datai. The Daily understands a new GM is being sought for The Datai, Langkawi. The other two hotels in Desaru Coast are an Amanresort and a Sheraton, the latter with an adjoining convention centre.

But tour operators said it is debatable if The Datai, Langkawi, with its unique architecture, secluded beach and lush rainforest, can be replicated and if the name Datai has enough recall beyond its loyal following to be a global brand. Sixty per cent of The Datai, Langkawi’s clientele are upmarket UK visitors.

Sebastian, who is also DRH’s senior vice president-hotel management, said: “Datai’s DNA is not difficult to transport. The Datai, Langkawi is not just about location. Its core value actually is the staff – they make the resort what it is today. I’ve seen this for myself and I’ve heard this feedback from every single guest. So, it’s a question of transporting the service culture (to other Datai resorts) through having the right people and through training, so that there is consistency.

“Of course Datai Desaru will not have the same setting as The Datai, Langkawi but clients will find the same peacefulness and tranquility as in The Datai, Langkawi, and the same treatment by staff who know how to care for them and make them feel they are at home.”

Sebastian added he has been helping to set up policies and procedures for the two properties, while training and trial runs have started. Apart from the two Datai hotels in Desaru Coast, DRH is looking at other destinations, including London and Dubai, for potential expansion of the brand.

Asked why there are so few Malaysian hotel brands with regional or global footprint, Sebastian said it might be due to a lack of confidence and difficulty in finding talent.

DRH, owned by Khazanah Nasional, the investment arm of the Malaysian government, seeks to redress that with Datai Hotels & Resorts and by being the catalyst for the development of premier integrated resorts such as Desaru Coast. The project will open in phases, beginning with the golf courses in April, up to 2016.

For other stories, go to TTG Official Daily – ITB Berlin 2014

OLD rivals Bali and Phuket are seeing that their competition for Australian travellers is now not one another but longhaul destinations such as Hawaii and South Africa.

“Bali and Phuket are usually competitors when it comes to attracting the Australian market, but due to aggressive marketing by the US and competitive promotions from Hawaii, we are seeing more Australians heading to Hawaii instead,” said Allamanda Laguna Phuket general manager, Femke Beekers, who sustained a 20 per cent drop in Australian business last year.

The Samaya Bali still sees “good” business from Australia, with increasing traffic from Melbourne and Perth although business from Sydney and Brisbane dipped slightly by three to four per cent last year, said general manager Ray Clark.

“For a few years in the past, we were running head to head with Thailand, but it’s no longer the case now – competition (for the Australian market) is no longer regional but worldwide,” said Clark. “Australians are getting more adventurous and travelling further afield to Europe, plus with more flight connections such as South African Airways, more Australians are heading to South Africa too.”

Likewise, Ron Nomura, director of marketing at Grand Hyatt Bali, said: “We are seeing more meetings and incentives from Australia heading to Hawaii; planners will often reveal they are considering Hawaii too.

“Australians have been to Bali too many times, plus they want to make use of the current favourable exchange rate of the Australian dollar versus the US dollar. Longhaul destinations always pick up (in demand) among the Australians when the Aussie dollar is strong,” he said.

Bali’s proximity to Australia is a double-edge sword as it is typically viewed as a “common” destination among Australians, opined Dewi Trisnawati, vice president sales & marketing of Waka Hotels & Resorts. “Australians look at Bali as their own backyard,” she said.

“Hence it’s more important for Bali to maintain its uniqueness and novelty for the Australians.”

Asked if longhaul destinations will lose its appeal among Australians, Nomura quipped: “When China stops buying raw materials from Australia.”

For other stories, go to TTG Official Daily – ITB Berlin 2014

THAILAND’S protracted political turmoil is throwing 2015 contracting out of the windows, with hoteliers bracing for pressure on rates the moment some stability is in sight.

Some European buyers are said to be delaying contracting in order to swoop in on lower rates later – although all tour operators interviewed by the Daily said they are not doing so.

Premier Holidays UK, head of longhaul product, David Carlaw, said: “Due to the changing nature of our business, we are pretty much negotiating all the time on tactical promotions so (delaying contracting) is irrelevant to us.”

But as fresh bookings slow down, hoteliers are expecting the worst.

“Past experience would suggest that some operators will try to use the current Bangkok situation as a means to negotiate better deals for the whole country,” said Duncan Webb, chief commercial officer of Onyx Hospitality Group.

“The longer this political impasse continues, the harder operators will push for lower rates. To do effective contracting at this juncture will be challenging.”

Likewise, Centara Hotels & Resorts’ senior vice president sales and marketing, Chris Bailey, is bracing for rate pressure to set in later.

“I expect (rate) pressure to come when stability returns” he said. “The Tourism Authority of Thailand will have comeback campaigns and that’s when there will be expectations for Bangkok to ‘buy business back’. We just don’t know when that period will be.”

Already, buyers show they do harbour those expectations. David Kevan, partner, Chic Locations UK, said: “Once the situation is resolved, I think Bangkok will have to look at a short-term discount plan to restore client confidence.

“But I don’t think there will be countrywide discounts, unless the political (turmoil) spreads beyond Bangkok.”

Nyhavn Rejser Denmark’s direction of production (leisure), Jakob Ro Jorgensen, does not rule out pushing Bangkok hotels for lower rates, although he will “try to close contracts as soon as possible” due to the high number of requests for next season and “if needed renegotiate at a later stage”.

But Hans van den Born, managing director of Diethelm Travel Thailand, said the onus should not just be on Bangkok hotels to reduce rates, urging other stakeholders to play a part to drive longhaul traffic to Bangkok.

“Airlines are key too. Right now, I’m only seeing fare promotions for Thai outbound travel to European destinations. Airlines need to lower rates from Europe to Bangkok too,” he said.

For other stories, go to TTG Official Daily – ITB Berlin 2014

Additional reports from Xinyi Liang-Pholsena.

INDIA has lost ground in the German market as a result of the rape cases which have tarnished the destination’s image.

Marco Polo Reisen suffered a 15 per cent drop to India last year, with managing director Holger Baldus saying “the drop has not reached the bottom yet”. Michael Frese, CEO of REWE Touristik, reported a “substantial decrease”. Thomas Tischler, president, Tischler Reisen, said on average, India is down 25 per cent for German tour operators.

Said Frese: “This is the sort of issue that spoils the reputation of a country. It’s a disaster.”

“The (negative) image people have right now of India is unfair as India is a super country, its people very welcoming. India should do something,” he said.

Frese said German travellers to India are a different clientele from the beach holiday market to places such as Bali and Thailand. “They go on roundtrips for the culture and for education. I don’t think they are afraid (of being raped). They are not comfortable or do not want to support the destination. It’s all about perception,” Frese said.

Making matters worse, departures cannot be done when the minimum number of pax is short even by a few. “If 10 people are secured and 15 is the minimum number, you can’t run the tour. A retail agency then tells his client, well, the last tour was cancelled, so there is no guarantee if this one would go, I recommend you go somewhere else.”

Baldus said: “Sales are down despite a weak rupee and lower hotel rates. Prices are down at least 10 per cent; India is such fantastic value for money, yet travellers feel it’s not the right time. They don’t feel safe.”

India’s DMCs are feeling the impact even though, as Ashish Sehgal, senior general manager-sales, Creative Travel, said: “In our history, not a single customer of ours has faced this because we use licensed guides, reputable hotels and drivers.” The DMC is doing an education series with partners on guidelines for travelling in India and inviting them on fam trips.

Amaresh Tiwari, managing director of AT Seasons & Vacations Travel Delhi, said: “India Tourism should do more. It needs to hire PR companies and engage the international media to write about India as a destination. It is poor in handling the media and PR; it should consider PR not as an expense but an investment to improve the image of the country.”

Girish Shankar, additional secretary, Ministry of Tourism, Government of India, said reported decreases in tourists are “abberations”, pointing out that there has been a four per cent or more increase in arrivals, with female travellers comprising 40 per cent of total visitor numbers.

He said India is working to dispel perceptions of the country as unsafe for women under the ongoing Incredible India campaign by addressing queries of tourism partners at its roadshows, increasing the number of ladies invited on fam trips to India and issuing a general advisory on the Incredible India website with guidelines for travellers to follow. A press conference on Tuesday also saw a German travel writer brought in to share her experiences travelling in India. “Is that not enough?” he asked.

For other stories, go to TTG Official Daily – ITB Berlin 2014

Additional reports from Hannah Koh.