Sojern publishes unique destination marketing report for travel industry players
Digital marketing platform Sojern has launched the State of Destination Marketing 2024 report for destination marketing organisations (DMOs). It is said to be the first-of-its-kind, produced through a partnership between Sojern and Digital Tourism Think Tank (DTTT), and supported by Brand USA, Destination Canada, and the European Travel Commission.
The new report sheds light on the latest industry trends and challenges, particularly related to the future of destination marketing, drawing insights from nearly 300 DMOs, government departments and affiliated tourism entities worldwide.
Sojern commissioned the report to ensure its global destination clients have access to the most comprehensive marketing insights.
The report found that economic uncertainty, inflation, and the cost of living are all having a significant impact on strategies, with more than 50 per cent of respondents considering these to be areas that require careful planning.
“As the travel industry undergoes rapid transformation, we remain committed to empowering destinations to navigate these changes effectively,” said Noreen Henry, chief revenue officer, Sojern.
“The insights uncovered in our report highlight destination marketers’ strategic priorities and overall approach to digital marketing, while also highlighting the significance of promoting sustainable and diverse tourism and meeting consumers’ increasing desire for unique experiences. Working with strategic technology-powered partners like Sojern ensures success in an increasingly dynamic and competitive environment.”
Some interesting observations made in the report include growing adoption of AI and the impact that has on destination marketing. According to the findings, DMOs anticipate that AI’s impact will be most pronounced in content creation, with nearly half (49%) foreseeing significant impact. A growing number of AI tools are transforming creative processes, from long-form content to social media posts.
In addition, 40% of DMOs see significant potential in AI for predictive analysis and forecasting, 38% for data analysis and interpretation, and 37% for marketing content personalisation. However, 71% are currently less confident and see little potential impact in AI’s ability to shape their teams’ web, app and platform creation, and 63% in conversational marketing.
The report also determined greater priority on digital paid media. Ninety-six per cent of DMOs are making significant investments in paid media as an essential component in achieving their marketing objectives. Notably, 58% take an always-on approach, investing year round, while 38% invest seasonally and only 21% invest when specific opportunities arise. Social media advertising maintains its prominence, as does Search Engine Marketing (SEM), with 96% and 95% of DMOs rating them as having a high or average importance, respectively.
Data use and privacy are also top of mind among respondents, with 54% saying that data provides the most value in marketing planning. Demographic data (88%) is used most frequently to guide decisions, followed by behavioural data (79%). However, increased reliance on data also brings its challenges – lack of data integration across channels (52%), the high cost of acquiring data (46%), and limited access to quality data (42%).
With Google’s deprecation of third-party cookies scheduled for mid-2024, 37% reported a significant impact, while 15% of respondents said that these changes have a small impact on their current strategies. DMOs are taking actions to mitigate the effects of these data privacy changes, with 60% planning to focus on social content and 58% prioritising obtaining more first-party data.
More findings and full survey methodology can be found in the full report, accessible here.
Airbnb searches in Thailand surge in lead up to festive period
Searches for Airbnb stays in Thailand among international travellers during Loy Krathong, which will be celebrated on November 27 and 28, have risen by 17 per cent.
Based on Airbnb booking data, Bangkok is the most visited destination in Thailand for the coming water festival that will segue into the year-end festivities, followed by Chiang Mai and Pattaya in the second and third position. The rest of the city ranking is made up of Phuket, Koh Samui, Hua Hin, Koh Pha-ngan and Krabi.
Airbnb has seen an approximately 88 per cent spike in searches by Chinese travellers for November to December. In fact, Thailand is the most searched destination for China guests on Airbnb ahead of the upcoming winter holidays, with Phuket and Bangkok getting the most attention.
Australians are also looking to escape the winter, and Thailand is on their radar as searches among Airbnb guests in Australia for travel to Thailand in the last two months of 2023 increased almost 16 per cent.
“Thailand’s international appeal remains strong with travellers from all around the world keen to experience the country’s world-famous hospitality, cuisine and cultural highlights,” said Amanpreet Bajaj, Airbnb’s general manager for Southeast Asia, India, Hong Kong and Taiwan. “Airbnb has seen a more than 30 per cent growth in nights booked in Thailand this year over last. (Based on) the volume of Airbnb guest searches for stays in Thailand during the end of 2023 holiday period, Thailand looks set for a bumper festive season.”
PAL, SIA sign new codeshare partnership
Philippine Airlines (PAL) and Singapore Airlines (SIA) have signed a new codeshare partnership agreement, which will allow the airlines to enhance flight options for their customers travelling between the Philippines and Singapore, as well as to other domestic and international destinations via their respective hubs.
The codeshare agreement will start on SIA’s and PAL’s flights between Singapore and Manila, the Philippines, by 4Q2023, subject to regulatory approvals. SIA will also codeshare on PAL’s flights from Manila to 27 destinations within the Philippines, while PAL will codeshare on SIA’s flights to six destinations in Europe – Copenhagen, Frankfurt, Milan, Paris, Rome, and Zurich.
These European codeshare sectors will be rolled out progressively across PAL and SIA sales channels as well as travel agents over the coming weeks.
The codeshare services to Copenhagen and Milan will represent a historical milestone – the first-ever air links to the Danish capital and the Italian commercial hub by a Philippine carrier.
PAL is making a comeback, albeit through codeshare services, to Frankfurt, Paris, Rome, and Zurich, which were previously served by the Philippine flag carrier in the 1980s and 1990s.
Both airlines will also explore an expansion of the codeshare agreement to include SIA’s flights to additional points in Europe, as well as destinations in Australia, India, New Zealand, and South Africa.
Stanley K Ng, president and COO, Philippine Airlines, said: “We are happy to offer our Philippine Airlines passengers a wider range of flights between Manila and Singapore through this codeshare partnership, affirming our promise to keep building new connections and opportunities for our customers. The partnership is the product of a strengthened relationship with our fellow ASEAN mainline carrier, Singapore Airlines, and an enduring commitment to expanding our presence in Singapore, a top PAL destination that we have been serving for 58 years and counting.
“We also look forward to offering increased connectivity to several cities across Europe, home to many overseas Filipinos and to a growing number of tourist and business travellers whom we invite to discover the wonders of the Philippines.”
Goh Choon Phong, CEO, Singapore Airlines, added: “This agreement enables Philippine Airlines and Singapore Airlines to work more closely together, and find ways to offer our customers enhanced travel connections between Singapore and the Philippines. This will support the growing demand for both business and leisure travel between the Philippines and Singapore, and beyond that to our key markets around the world.”
Further East 2023 wins more hearts
Further East 2023, an annual invited-only luxury travel trade event, has seen a 30 per cent growth in attendance as the Australasian travel market rebounds.
Now into its fourth year, the event in Bali’s Seminyak, Indonesia, welcomed 165 exhibitor stands, 75 per cent of which were repeat, and 185 international buyers, 40 per cent of which were new.
Serge Dive, founder and CEO of event owner This is Beyond, said: “It is a good demonstration of the resurgence of the Australasian market. In many ways 2023 (has been) the year the world finally opened and there is a huge desire to travel. There is also a huge desire among travel industry players to shape up.”
Dive noted that the industry has been “rebooting” themselves by evaluating the way they do business, and Further East has been able to provide a platform for them to elevate their brands and to see what the future holds for the luxury travel industry.
Participation interest in the exclusive event is up, but the organising team maintains high standards in the qualifying process, according to Dive.
Sophia Asghar, project manager of Further East, said she had received a lot more interest from industry members to join the event this year, thanks to the success of last year’s event, which was held just after borders started to reopen.
Dive said: “We need to make sure that Sophia and the team are finding only the very best buyers and sellers, and that we bring some new buyers and sellers to the show.”
Building on the success of last year’s edition, Further East 2023 birthed a new element – the Further East Leadership Summit together with NIHI Sumba. The three-day summit from November 10 to 13 brought together just 10 people, of which eight were Asia-Pacific’s most influential travel leaders. Behind closed doors, they discussed ideas to shape the future of travel in the region. Ideas generated will be shared with the wider Further Easy community early 2024.
Dive was confident that Further East will rise along with the uptrend in Asia-Pacific’s luxury travel, with participation likely to cross the 500 mark in the next five to six years.
Further East 2024 will return to Alila Seminyak on November 4 to 7.
Commenting on the Further East 2024 commitment, Christiane Ferger, general manager of Alila Seminyak, said: “(The hotel) has been home to Further East since its beginnings in 2018, and we are very grateful to be chosen. The show brings exhibitors, buyers and media together, and allows for open minds to exchange ideas.
“The event not only benefits our hotel and Seminyak as a global destination but also extends its impact by fostering exposure among exhibitors, buyers, media worldwide, beyond the event itself.”
Sabreena Jacob, general manager of Ta’aktana, a Luxury Collection Resort and Spa, which is set to open 1Q2024 in Labuan Bajo, said the event provided a timely platform for her to “start the conversation about our unique resort”.
First-timer Romy Strang, director of The Resort Villa, Rayong Thailand, added that the event helped her to connect with international buyers, allowing her to expand her sources beyond her dominant Scandinavian market.
Expedia’s Unpack ’24 casts light on 2024 travel trends
Come next year, travellers are expected to make trip decisions based on screen inspirations, affordable duplicates, concert draws and AI assistance, say Expedia Group’s Unpack ’24 study that involved 20,000 respondents worldwide.
Set-jetting
For 2023, Expedia predicted travellers would turn to television sets and movie screens for travel inspiration. They did, and the trend shows no signs of stopping in 2024. More than half of travellers say they have researched or booked a trip to a destination after seeing it on a TV show or movie, and one in four admit that TV shows and films are even more influential on their travel plans than they were before. In fact, travellers say TV shows influence their travel decisions more than Instagram, TikTok and podcasts.
Expedia search data indicates a similar trend. Following the release of Wednesday on Netflix, Expedia saw a 150% increase in travel searches for Romania. Searches to Paris increased 200% after Emily in Paris debuted its previous season.
Given the popularity of this travel trend, Expedia compiled its first-ever Set-jetting Forecast predicting what entertainment-inspired destinations travellers will head to in 2024, based on upcoming show and film releases and travel data from the Expedia Group platform.
- Romania inspired by Wednesday season 2
- Paris inspired by Emily in Paris season 4
- South Korea inspired by Squid Game season 2
- Thailand inspired by The White Lotus season 3
- Malta inspired by the new Gladiator 2 film
- Scottish Highlands inspired by the remaining seasons of Outlander
- London, Bath and Windsor, UK inspired by the new season of Bridgerton and The Crown season 6.
Destination dupes
Expedia’s 2024 destinations of the year are destination dupes — places that are a little unexpected, sometimes more affordable, and every bit as delightful as the tried-and-true destinations travellers love.
The 2024 destination dupes all experienced a notable uptick in searches over the past year. In fact, global searches for the Top 5 destinations on the list more than doubled YoY.
- Taipei (dupe for Seoul) – 2,785%
- Pattaya (dupe for Bangkok) – 250%
- Paros (dupe for Santorini) -195%
- Curaçao (dupe for St. Martin) – 185%
- Perth (dupe for Sydney) – 110%
- Liverpool (dupe for London) – 95%
- Palermo (dupe for Lisbon) – 90%
- Quebec City (dupe for Geneva) – 60%
- Sapporo (dupe for Zermatt) – 40%
- Memphis (dupe for Nashville) – 15%
Tour tourism
In 2023, the cultural impact of the Eras and Renaissance tours was undeniable, driving ticket sales as well as travel and tourism. Expedia predicts that tour tourism will continue to thrive in 2024. Nearly 70% of survey respondents say they are more likely to travel to a concert outside their own town, with over 40% saying they’d travel for a concert as an excuse to visit a new place. In a new twist to tour tourism, perhaps driven by ticket prices, 30% of travellers say they would travel outside of their home city for a concert because tickets were cheaper elsewhere. Unexpected places on Expedia’s list of top tour tourism destinations are Kuala Lumpur, Edmonton, Canada, and Mexico City.
Gen gen AI
While generative AI tools like ChatGPT took centre stage in 2023, only 6% of travellers used it to plan their trip. In 2024, Expedia predicts the generation of generative AI travellers will come of age and fully embrace this tech throughout their travel journey. In fact, survey data reveals that half of travellers are interested in using generative AI to plan their next trip, and the percentage is even higher among Singaporeans (68%).
What drives this trend is generative AI’s ability to simplify planning and shopping through a conversation. Nearly 40% of travellers say they would use this tech to find the perfect stay, 35% would plan activities and things to do, 33% would compare flight options, and 20% of travellers would change or cancel their travel plans.
Saudi intensifies investments in tourism talents
Saudi Arabia is expanding its efforts to develop talents for its growing travel as well as business events sectors, with a specialist school and new training programmes for professionals and businesses in the events ecosystem all in the works.
The Riyadh School of Tourism and Hospitality, set to open in 4Q2024, is co-founded by the tourism ministry and Riyadh-based entertainment mega project Qiddiya in collaboration with the UNWTO. The institute will offer a range of educational programmes, from diplomas to Master’s degrees, and intends to welcome 25,000 students annually by 2030.
Training sufficient human resources to work in tourism and hospitality roles is an important part of the country’s Vision 2030, an ambitious programme that aims to diversify the economy and open up Saudi Arabia, including through tourism, by the end of this decade. The Kingdom aims to create one million new jobs in tourism across the country by 2030.
The Ministry of Tourism had earlier allocated US$100 million to the Tourism Pioneers programme, which enabled 100,000 young people from its second-largest city, Jeddah to study at top institutions in France, Spain, Italy, Switzerland, the UK and Australia in 2022. On completion, participants will be equipped to “secure employment opportunities in leading hospitality companies in the Kingdom,” to help “create a skilled and ambitious workforce to support the tourism sector,” said the ministry in a statement.
Most graduates are likely to return to Jeddah due to employment opportunities in its historic Al Barad district, a UNESCO World Heritage Site recognised for its unique architecture and historic role as a major port for Indian Ocean trade and gateway for pilgrims to Mecca who arrived by the Red Sea.
An estimated 1,800 hotel units, as well as recreational and commercial spaces, are earmarked to be built in the 2.5 million square-metre district by 2030, alongside the restoration of historic buildings.
On the business events front, Saudi Conventions and Exhibitions General Authority is investing in brand equity promotions for the local meetings and events industry, relevant education to build a pool of events professionals, and training packages for business in the events ecosystem.
These efforts are meant to make Saudi Arabia an even more attractive destination for meetings, according to Amjad Shacker, CEO, Saudi Conventions and Exhibitions General Authority.
Amjad said: “(A destination needs) human capital because without it, none of the infrastructure for meetings – the venues, the regulations, the bylaws and the standards – will be possible.”
He shared that work to “educate the masses on this industry” is ongoing, and it has resulted in many “young female and male Saudis eager to participate” as well as the emergence of start-ups in the events ecosystem.
Saudi Conventions and Exhibitions General Authority is collaborating with educational institutions to make “courses at various levels” available to anyone keen on a meetings and events profession, and providing educational packages to help SMEs and start-ups in the business events sector grow to a bigger scale. – Additional reporting by Karen Yue
Tourism Tropical North Queensland launches global campaigns to boost visitation
Tourism Tropical North Queensland (TTNQ) has launched its first global trade campaigns for the Cairns & Great Barrier Reef brand with partners Expedia and Trip.com, targetting seven key international markets.
TTNQ chair John O’Sullivan said the new campaigns are part of some 20 that are being supported by federal government’s A$15 million (US$9.8 million) International Tourism Recovery Program funding.
O’Sullivan noted that the funding has seen good initial yield.
“This level of investment will drive the region’s recovery with the International Tourism Recovery Program funding already delivering more than A$3 million in gross sales after just three trade campaigns in Japan, which ran from June to July,” he said.
TTNQ CEO Mark Olsen said the campaign activity was closely aligned with Tourism and Events Queensland’s international initiatives, such as its campaign, A Beautiful Way to Be, in China.
“Partnering with influential brands like Expedia and Trip.com will ensure our region is penetrating a highly competitive travel marketplace and leveraging Tourism and Events Queensland’s activity,” he said.
The Trip.com partnership will be live in the UK, China, Singapore and Japan at various times until May 2024, and will include activities such as live streaming promotion via WeChat in China through online travel agent Ctrip.
The Expedia partnership will target the UK, Japan, the US, Canada and New Zealand, and will see tactical activations such as discount coupons in the US market and engagement of some 40,000 travel agencies in Japan and New Zealand through the Travel Agent Affiliate Program.
Travel deals sustain Indonesian outbound demand
Despite the devaluation of the rupiah against the US dollar, appetite for outbound travel among Indonesians remains high, thanks to attractive offers presented at numerous travel fairs that have surfaced this year.
At the recent Garuda Indonesia Travel Fair 2023, hosted in multiple cities across the country – Jakarta, Medan, Surabaya, Palembang, Denpasar, Makassar and Jayapura, consumers were able to enjoy discounts of up to 80 per cent along with cash-back worth up to 4.3 million rupiah (US$272).
The fair has a target of 105 billion rupiah in transaction, with 30,000 flight tickets sold. The final transaction is not yet available at press time.
Indonesian outbound specialists told TTG Asia that consumers may be unperturbed because they are now used to the fluctuating conditions of the rupiah.
Furthermore, Indonesians now perceive travelling as a necessity.
Edhi Sutadarma, director at Golden Rama Tours and Travel, added that the ability to travel abroad is “like a status symbol”.
Even with rising costs of travel, affordable destinations remain, opined Davy Batubara, Group COO Smailing Tour. He pointed to Malaysia and Thailand as being good options.
“Even with the current rupiah value, hotel prices in Malaysia and Thailand are still cheaper than in Bali while air ticket prices are not much different,” Davy said.
Both Davy and Edhi noted that the affordability of South-east Asian destinations is a strong pull factor for Indonesians, while Japan and South Korea have risen steadily to become leading destinations among their customers.
Daissy, acting vice president of outbound tour at Wita Tour, is optimistic that outbound travel demand will continue to grow due to back-to-back festive seasons. “The timing is right – the end of year holidays is followed by the Chinese New Year and Eid al-Fitr holidays,” she said.
Golden Rama Tours and Travel as well as Smailing Tour have committed to keeping prices in the face of rising costs and depreciating rupiah, as they would rather reduce profits than lose clients.
However, Edhi admitted that holding out cannot be a long-term solution. “If the rupiah doesn’t strengthen next year, there will have to be a little adjustment,” he said.
Philippine company takes Hotel101 brand to the US
Filipino company DoubleDragon Corporation has secured a site in Los Angeles, the US for its first Hotel101-branded property in the country.
The site is in the Westlake North District, five minutes to downtown, 10 minutes to Hollywood, and 20 minutes to Beverly Hills and the Los Angeles International Airport.
The hotel is expected to offer 622 rooms, subject to entitlement and zoning approval, as well as an all-day restaurant, a business centre, pool, gym, 24-hour convenience store, and event venues.
Hannah Yulo-Luccini, CEO of Hotel101 Global, a subsidiary of DoubleDragon Corporation, said: “This step completes the first three strategic overseas sites of Hotel101 located in Japan, Spain and the US, and is set to enable Hotel101 to transcend as a truly global brand.”
The Hotel101 brand adopts a hybrid condotel business model where rooms are intended to be typical or similar in size and look, so as to cater to the mid-end market.
Yotel, partnership with High Steet Holdings, will bring the 290-key Yotel Kuala Lumpur to the heart of the Malaysian capital’s central business district.
Projected to open in 2025, the hotel will be steps away from Petronas Towers, Kuala Lumpur City Centre, Kuala Lumpur Convention Centre, and shopping centre.
Plans for the hotel, which will be part of a mixed-use development, include a rooftop pool and bar offering views of the city skyline, as well as signature Yotel amenities, such as the multi-functional dining and co-working space, Komyuniti, a fitness centre, and Grab + Go snack station.
Daniel Yip, partner, High Street Holdings, said: “Yotel has proven that with its modern and sustainable smart design as well as creative use of technology, it is a very attractive brand for guests and real estate owners alike.”