Foreign and local operators alike are eyeing India’s hospitality gold mine

The Westin Sohna Resort & Spa

Starwood Hotels & Resorts Worldwide, Inc

Who Starwood has 1,071 properties in 100 countries and territories across nine brands: St. Regis, The Luxury Collection, W Hotels, Westin, Le Méridien, Sheraton, Four Points by Sheraton, Aloft and Element.

In operation Starwood currently operates 33 hotels in India. The Luxury Collection is the largest Starwood brand in India, which is also the brand’s second-largest market after the US.

Under development There are over 20 hotels under development in India, all scheduled to open by 2015. In 2012, Starwood will open the ITC Grand Chola, Chennai, a Luxury Collection hotel; Westin Chennai; and two Aloft hotels. W Hotels (Mumbai, Goa, Delhi NCR) and St. Regis (Delhi NCR) will be introduced to the market in 2015 and 2016 respectively.

Investment Mostly management contracts. It has also franchised a part of its Luxury Collection to ITC Hotels such as ITC Maurya and ITC Grand Central.

Adapting to the market To meet the demand generated by the increasing number of Indian customers, Starwood opened its first Customer Contact Centre (CCC) for the market in Gurgaon earlier this year. This is Starwood’s ninth global CCC and its fourth in Asia-Pacific.

Average rate Rs8,000-20,000 (US$162-406) a night

Comment “Indian consumers continue to enjoy double-digit growth in per capita income, while the population of high net-worth individuals has grown over 80 per cent in the last five years…We have a significant opportunity to grow our luxury brands.” – Dilip Puri, managing director of India and regional vice president of South Asia

The Leela Palace Udaipur

The Leela Palaces, Hotels and Resorts

Who The Leela is a luxury hotel group with properties across India, including palace hotels in several cities. The chain exemplifies Indian hospitality and international standards of service excellence.

In operation The Leela has seven operating hotels throughout the country.

Under development Its eighth hotel is due to open in Chennai in March, while a ninth will open in Jaipur by year-end.

Investment Although the majority of its properties are built and owned, the group is now pursuing an asset-light strategy. Most of its hotels opening over the next few years will operate under management contracts.

Adapting to the market Indian business travellers need a more elaborate and efficient room service/in-room dining menu. For leisure, Indians take quicker and more frequent breaks; look for family and couple accommodation with more hotel activities; and have a lesser need for sightseeing. They sleep late, get up late, want to have late dinners and enjoy an overdose of service.

Average rate Rs15,000-25,000 a night

Comment “I am very bullish about the Indian hospitality industry as we have just scratched the surface. The government now understands the employment potential of this industry, and this is resulting in measures that will impact investment and make it easier for foreign nationals to visit India.” – Sanjoy Pasricha, vice president, sales and marketing

Sofitel Mumbai BKC

Accor

Who Accor is present in 90 countries with 4,200 hotels. Its broad portfolio of hotel brands include Sofitel, Pullman, MGallery, Novotel and Ibis, providing an extensive offer from luxury to budget.

In operation Accor has 10 hotels in India.

Under development Accor’s luxury brand debuted in India last year with the Sofitel Mumbai BKC. There are two more Sofitels committed for India. Accor has also reaffirmed plans to open around a dozen more hotels in India by the end of 2012 – double its current number – and remains on track to have 90 properties in the market by 2015.

Investment A mixture of owned and managed hotels.

Adapting to the market Guest services and F&B are designed with an accent on Indian travellers’ needs such as a suitable buffet spread, relevant TV channels and multilingual reception staff.

Average rate Rs7,000-18,000 a night

Comment “Accor is focused on India as a core growth market…While we are placing a significant emphasis on the mid- and economy sectors, we are also expanding in the upscale segments.” – Michael Issenberg, chairman and chief operating officer, Accor Asia-Pacific

CGH Earth’s Chittoor Kottaram

CGH Earth

Who CGH Earth develops and operates properties in India, with a strong focus on nature and the environment. A family-owned enterprise, CGH defines its properties as luxurious – both in comfort and experiences.

In operation CGH Earth has 12 resorts, heritage hotels and boutique hotels across southern India.

Under development There are plans for properties in the Andaman Islands, Puducherry and North Karnataka. CGH Earth’s properties will increasingly have fewer rooms, offering customised experiences for guests.

Investment All properties are owned and managed.

Adapting to the market Guests engage with the destination and the local communities. They are served fresh produce cooked in local flavours and styles. Core values such as sustainability and community involvement are promoted.

Average rate Rs10,000-12,000 a night (winter) Rs6,000-8,000 a night (summer)

Comment “Our customer is the ‘alert independent traveller’. He is on a voyage of discovery, and luxury is determined by the quality of his experience rather than ostentatious buildings. We expect growth to be much larger than our available capacity.” – Jose Dominic, managing director

This article was first published in TTG Asia, February 24 issue, on page 8. To read more, please view our digital edition or click here to subscribe.

Do travel marts – and the trade – still matter? NTOs weigh in

Singapore

Shrinking presence

THE National Association of Travel Agents Singapore intends to take over the lead in giving the country a face at some major travel trade shows, following the Singapore Tourism Board’s (STB) decision to skip events such as WTM and ATM.

According to STB, as of January, only five shows were confirmed for 2012. It exhibited in at least eight shows last year.

STB’s executive director, exhibitions & conferences and conventions & meetings, Jeannie Lim, said while trade shows were important marketing platforms, criteria such as industry interest and audience profile were key considerations too.

However, inbound operators, worry that this may be symptomatic of the NTO’s gradual withdrawal of local trade support. Said Tour East Group’s senior vice president of sales and marketing, Judy Lum: “STB is now overtly consumer-centric to the detriment of the trade.”

Malaysia

Becoming selective

TRADE show participation will continue to be a part of Tourism Malaysia’s marketing and promotion efforts, although the NTO is “becoming selective”.

Said its spokesperson: “We are certainly moving towards the direction of an industry which is driven by the private sector. Tourism Malaysia will then be able to focus more attention on exploring new markets.”

Acting director general Azizan Nordin outlined that plans for this year included participating in more consumer events to promote and ‘hard sell’ directly. However, Tourism Malaysia would also expand cooperation with the trade through joint tactical campaigns, highlighting both traditional and niche products, he said.

Indonesia

A strong anchor

SOME 90 per cent of the Ministry of Tourism and Creative Economy’s marketing programmes involve the trade, calling its strategy ‘below the line’.

The ministry’s deputy minister, Sapta Nirwandar, said a limited marketing budget meant that “supporting the trade in participation at travel marts and sales missions” was key as such platforms were well-targeted.

“We need to involve the private sector as much as possible to help them meet their counterparts as many times as possible,” he explained.

The ministry fully pays for the exhibition space, spending between 30-40 per cent of its yearly budget on this. “A number of trade members can afford to have their own booths at travel marts, but there are many more who cannot,” said Sapta.

He added that separate table tops were organised at marts to offer in-depth business talks, while such B2B sessions were also held during consumer events within the country.

Thailand

Trying out new methods

THE Tourism Authority of Thailand (TAT) will continue to embark on traditional marketing strategies involving the trade, such as having a prominent pavilion at major shows, said Juthaporn Rerngsonasa, TAT’s deputy governor of international marketing-Europe, Africa, Middle East and Americas. It will also organise road shows.

“We will kickstart our mart-within-a-mart at ITB Berlin, where niche market specialists will be hosted to participate in a special table top session. Sellers wanting to join will be charged an extra fee besides the normal participation cost,” she added.

The niche market is seen as resilient in the face of an anticipated slowdown in longhaul markets, Juthaporn explained.

Hong Kong

Maintaining focus

THE Hong Kong Tourism Board (HKTB) is sticking to the number of trade shows it is participating in for 2012/2013 (a dozen), although it is penetrating new markets such as the Netherlands (Vakantiebeurs), India (SATTE), Russia (MITT) and the Middle East (ATM).

Executive director, Anthony Lau, said the NTO had “always been participating actively at overseas trade shows” due to the networking and business opportunities offered.

He added that HKTB would co-organise more spin-off events, including on-stand activities with destination partners such as Macau and Hainan. It hopes to facilitate more multi-destination programmes and joint product creation.

Additional reporting from N. Nithiyananthan, Mimi Hudoyo, Prudence Lui

This article was first published in TTG Asia, February 24 issue, on page 2. To read more, please view our digital edition or click here to subscribe.

More Asian travel firms are offering local food tours, hoping that what is currently a starter becomes the entree in future

While culinary tourism continues to serve up great interest across Asian countries keen to appeal to the stomachs of travellers, the reality is that only a small segment of the market is hungry for such itineraries.

Regional tourism organisations like the Singapore Tourism Board (STB), Tourism Malaysia and more recently, Indonesia’s Ministry of Tourism and Creative Economy, have all come to recognise the untapped potential of travelling gourmands, rolling out an increasing number of initiatives in recent years.

Indonesia, for example, is embarking on an exercise to select iconic dishes to be highlighted in its destination marketing, in addition to developing ‘culinary centres’ across the country. Its official data shows that international tourists’ spending on food in Indonesia ranked second after transportation expenditure, while spending on food by domestic tourists ranked third after transportation and non-food purchases.

Minister of Tourism and Creative Economy, Mari Elka Pangestu, said: “Local cuisine is one of the main things travellers want to try when visiting a destination.”

Singapore, armed with a host of new fine-dining establishments helmed by celebrity chefs at the Resorts World Sentosa and Marina Bay Sands integrated resorts, has also set its sights firmly on the top-end of the food chain by organising a series of culinary headline acts on an annual basis.

The Singapore Food Festival is now the biggest food event on the destination’s tourism calendar, registering a record attendance of over 354,000 foodies during last year’s edition. There is also the World Gourmet Summit, which showcases upmarket restaurants around the island.

In addition, STB helped launch the inaugural Singapore International Culinary Exchange one year ago to champion local cuisine, culinary talents and food products globally. As part of this initiative, a mobile kitchen named the Singapore Takeout travelled to nine cities over a one-year span, dishing out flavours of the Lion City.

Not to be outdone, neighbouring Malaysia is also jostling for attention through the promotion of culinary events under its Fabulous Food 1Malaysia branding. Its month-long Malaysia International Gourmet Festival (MIGF) saw the introduction of Gourmet Tours Malaysia itineraries in 2010, offering four nights of accommodation, complimentary limousine transfers, a choice of four meals in MGIF-featured restaurants and a half-day city tour of Kuala Lumpur.

Reaching for a slice

Inbound operators have gotten in on the act, although they receive only a handful of groups annually.

Kuala Lumpur-based Asian Overland Services Tours & Travel (AOS) offers seven-day, six-night and three-day, two-night Malaysian Gourmet Tour itineraries, which allow travellers to dig into Indian, Malay, Chinese and Peranakan cuisine across three of Malaysia’s main food hubs: Kuala Lumpur, Penang and Langkawi. Besides visiting markets and learning how to create local dishes, guests are also taken to popular street stalls and restaurants for food sampling.

The company handled three focused gourmet travel groups last year, including a 15-pax incentive from Canada that spent two nights in Malaysia and Singapore, and a 12-pax group from Sweden.

However, AOS’ assistant director, business development, Noor M Ismail, said most of the company’s gourmet travel business was generated on an ad hoc tailormade basis. Thus, it has no plans to expand its culinary offerings. “There has not really been growth (in this segment). Gourmet travel is not for everybody. It’s a niche, special interest segment, plus Malaysian food is not really exotic,” he explained.

Kuala Lumpur-based Discovery Overland Holidays is also seeing a limited number of bookings for specialised gourmet tours, according to its manager, product development, Kingston Khoo. The company takes two to three ad hoc groups to Sabah and Penang every year, from markets such as Hong Kong and the Philippines. Each consists of four to 10 friends, combining sightseeing and food sampling elements. They stay an average of three nights.

A spokesperson from RMG Tours, which last year handled a 60-pax group from Germany for two nights in Singapore and Bali, as well as a 30-pax group that stayed three nights in Singapore and Thailand, shared the same sentiment.

“It’s not often that we get travellers coming solely for food. Most food trips are held in conjunction with meetings and incentives. We only receive one to two such groups a year, and requests are mostly from culinary magazines and associations,” the spokesperson said.

Meanwhile, others like Bangkok-based Exotissimo Travel continue to make efforts to expand the market. It recently added a eight-day, seven-night Myanmar Culinary Delights package, which promises an in-depth introduction to Burmese cuisine, lessons on preparing local delicacies, food and beer sampling, and activities such as a teashop visit. Under its Culinary Journeys banner, there are already food-related packages to Thailand, Laos, Vietnam and Japan.

Who’s biting?

Demand has been trickling in. Peter McGahey, a UK-based branch representative of the International Wine & Food Society and a first-time buyer at the recent ASEAN Tourism Forum TRAVEX, cited a growing interest in Asian cuisine among his European members due to the number of Asian restaurants opening on the continent.

According to McGahey, the average budget for a five-day gourmet travel trip to Asia is between US$750-US$1,000, including accommodation at a four-star hotel and airfare. There is a separate food budget of about 100 euros (US$131) a meal, with some participants willing to spend up to 150 euros.

“It’s also fairly normal to arrive earlier or leave later,” he said, adding that dining and sightseeing itineraries are usually arranged with the help of DMCs and tourism boards, while members sometimes book hotels on their own.

Attending the mart to source for interesting gourmet travel experiences, McGahey said: “Major destinations like Singapore, Hong Kong and Kuala Lumpur are popular…(as they are) places that (our members) are familiar with. Singapore is especially sellable because of the variety of cuisine that you can find and because everybody there speaks English.”

This article was first published in TTG Asia, February 24 issue, on page 10. To read more, please view our digital edition or click here to subscribe.