TFE Hotels has launched a new global leadership structure which comprises three new global officer roles.
Amanda Hoolihan takes on the role of global revenue officer and will work to enhance TFE’s revenue management practices and drive innovation and results for the group.
From left: Amanda Hoolihan, Katia Giurtalis, and Shahnaz Bakhshay
Katia Giurtalis has been named the new global marketing officer and will be responsible for steering the global growth of TFE’s brands, and ensuring guest experiences are enhanced through digital technology.
Shahnaz Bakhshay is the new global sales officer, and will focus on developing and implementing global (and local) sales strategies and driving cross pollination of client coverage.
The youth travel segment is growing and has the potential to support tourism’s positive impact on cultural longevity, sustainability and local businesses – yet it is often overlooked, said tourism players.
Many assume that youths lack disposable income, explained Wendy Morrill, head of research & education, WYSE Travel Confederation.
Youths are a segment to watch as they prioritise meaningful connections that support local communities
In 2019, youths – loosely defined as a segment aged 18 to 29 – made up about 23 per cent of international arrivals, translating to 336 million travellers. This is equivalent to US$333 billion in tourism receipts, where 60 per cent of their travel budget is spent in the destination.
Travel with meaning and purpose
According to Morrill, this segment does not travel for weekends and short holidays. Instead, they seek “educational” experiences and “some form of cultural exchange”. Trips are “purposeful and meaningful, both economically and socially”, and can be formal, such as a study programme at a university, or informal like a working holiday.
Pedro Lucena, partnerships manager with accommodation specialist Selina, told TTG Asia that young travellers at its properties have opportunities to make “meaningful connections”.
“For example, in our Lisbon hotel, we have a meetup every Thursday, where locals come to the hotel to network with guests from all over the world,” he said.
Lucena added that such connections can lead to enriching local experiences. For instance, the same property offers a workshop with a local craftswoman, where participants can paint a tile using a traditional Portuguese method dating back to the 17th century. They get to fire their tile and take it home as a souvenir.
Agreeing that youths drive demand for purposeful travel, Chanjira Khadseesai, spokesperson for The Green Lion, said: “(On our programmes), these youths learn about themselves, learn how to support each other, learn how to share, and learn to respect other cultures. This is very important now.”
The B2B company works with travel agents to promote meaningful programmes filled with local culture and volunteerism. These programmes run from a week up to six months for travellers aged 18 to 25 in 32 destinations.
“Most of our travellers are from Europe on their gap year break, and their top three destinations are Indonesia, Thailand, and Costa Rica. Their average programme length is around four weeks,” shared Chanjira.
Growing independence
Youths obtain their travelling stipend from their parents, who are more open-minded these days about letting their children experience meaningful travel, she added.
While gap year breaks funded by parents are common in Australia, the UK, and parts of Western Europe, Michael Ebert, director of Tourism Adventure Group (TAG), said the rest of the world is slowly catching on.
TAG supports youth travellers visiting Australia and New Zealand with trip planning. The group also supplies accommodation and offers services to help working holidaymakers settle in.
Ebert elaborated: “We notice that these working holidaymakers would stick with one employer for six months, save up all their money, and (spend the remaining duration of their travel visa) travelling around the country. When they find a place they really like, they stay there for four or five months to experience what it’s like being a local.”
When asked whether Asian youths are doing the same, Ebert said the trend had weakened in recent years. He hopes that Asian demand will return soon.
For destinations and travel businesses keen to attract the youths, Carylann Assante, CEO of SYTA The Voice of Student & Youth Travel, said an even younger group – those aged 12 to 18 – is the one to watch now.
Assante said many of them travel to assess potential colleges and universities overseas, and will continue to explore destinations once they begin to study abroad.
This segment has strong spending potential too.
“We have a study that showed that while adults might spend US$500 in a week in New York City, students will spend US$1,000 because they will shop and buy gifts for friends and family,” she said.
Morrill concluded: “Youth travel is a stable segment that will only continue to grow. This group will also make more responsible (and sustainable) choices, which can become life-long habits.”
Khiri Travel has restarted offering tours to Myanmar in a bid to save livelihoods destroyed by a lack of international tourists.
“Tourism is a force for good and that’s our mission. While there’s definitely an issue with a very repressive government, it doesn’t involve tourism or tourism locations,” said Khiri Travel CEO and founder, Willem Niemeijer, who visited the country recently.
Niemeijer:Yangon and Inle Lake have had zero tourists since Covid
He said while there are many areas that are dangerous to visit, the main tourist destinations of Yangon, Inle Lake, Mandalay, Bago, Ngapali Beach and Mergui Archipelago are safe.
“I understand that for a lot of tour operators this might be an issue, but we know that some people want to travel to Myanmar. As long as it’s reasonably safe, and it’s more than reasonably safe if you stay in the highlights, then it’s fine. Of course, there are places you shouldn’t be going and we know where they are,” Niemeijer added.
He said during his visit to Yangon and Inle Lake, he met with tour guides and other tourism-related businesses, whose livelihoods have been destroyed due to lack of tourists.
“They’ve had zero tourists since Covid – it’s unfair and heart-breaking. Boat drivers depend on it, guides depend on it, so do small businesses that have set up over the 10-plus years (like) bike rentals, home cooking on the lake, all of these things,” he said.
Niemeijer added that while concerns may be made about tourism funding the regime, Khiri only deals with locally-owned businesses, including hotels, transport and guides.
He remarked that most of the money goes to visas and domestic flights, however, it would be better “if 80 per cent of the money goes to the locals” while the government, which has no issues with money, receives 20 per cent instead.
He added that Khiri has teams on the ground who are able to monitor the situation constantly.
According to BDEX, in October 2022, the average monthly salary in Myanmar for companies with fewer than 15 employees was US$117.
“They don’t ask for a massive number of tourists, just a few to keep morale going. Our strategy is not asking for everyone to put Myanmar back on their programme – that’s unrealistic. But we need specialist tour operators to keep this in mind.”
Sabah Tourism Board (STB) has rebranded its destination to Feel Sabah, North Borneo in a bid to emphasise the location of Sabah in the northern part of Borneo Island, and attract more European tourists.
Launching this rebranding exercise at ITB Berlin 2023, minister of tourism, culture and environment, Christina Liew, said: “The name ‘North Borneo’ (now Sabah) sounds exotic and evokes nostalgic feelings of yearning for this destination. It is also of historical significance as the state was then known as ‘North Borneo’ prior to gaining our independence in 1963.”
Sabah Tourism Board has rebranded the destination to emphasise its location in the northern part of Borneo Island
She explained that there are people around the world who have not heard about Sabah despite years of promoting the destination and its “diverse natural attractions and iconic wildlife”.
“However, we are aware that at the mention of Borneo or North Borneo, it rings a bell. Europeans in particular associate Sabah with Borneo. Hence, we are determined to rebrand this tourist destination with Feel Sabah, North Borneo to create a new identity in the travel marketplace,” stated Liew, adding that Sabah is home to natural wonders such as Mount Kinabalu, Maliau Basin and Tip of Borneo.
With the recent resumption of international direct flights, cruise tourism and optimism about mounting regular or chartered flights from new destinations, Liew said Sabah targets 2.2 million arrivals for 2023 and will work towards attaining 2.5 million arrivals.
“If we succeed in hitting the 2.5 million mark, this would indicate an increase by 45.35 per cent compared with 1.72 million arrivals in 2022.”
She shared that based on data from 2019, the top feeder markets comprised visitors from Taiwan, China, Brunei, Singapore and South Korea, while the top inbound tourism markets from Europe came from Germany, France, Netherlands and Italy.
Liew added that plans are afoot to explore prospects of luring tourists from new tourism markets in the US, Australia, Japan and India via tourism roadshows by STB.
While Asia’s Covid-19 recovery has been slower than the rest of the world, Accor is pinning hopes on the region driving the group’s development into 2024.
Jean-Jacques Morin, group deputy CEO, group CFO and premium, midscale and economy division CEO, said while Asia’s recovery from the pandemic lags behind other regions due to it being the last to reopen borders, he remains confident that full recovery will be met in 2024 – and growth will be exponential.
Morin: Asia has a very good story ahead
“I’m not sure Asia will have recovered as well as Europe or the US by the end of 2023 – there is a lag. But we will see the largest acceleration in Asia by early 2024,” he said, adding 50 per cent of Accor’s openings globally are within the region.
Morin said limitations on airlines – according to data from IATA, global airlines to Asia at the end of 2022 sat at 80 per cent capacity compared with 2019 levels – are one factor hampering recovery levels. “They’re still not at 100 per cent, but because of that, Asia has a nice path ahead,” he added.
In addition, the region is awaiting the “Chinese phenomenon”.
“Ninety percent of Chinese travellers stay in Asia,” Morin noted. “Once this Chinese phenomenon is unwrapped, it will flow throughout the continent. Asia has a very good story ahead.”
Another trend Morin has noticed in the region is that while occupancy rates hover below 2019 levels at an average of six per cent, pricing has risen.
“We’ve been able to push prices significantly,” he said. “People who have the money are really going overboard to get to where they want to go. The question these days isn’t, ‘do you have a room available?’ It’s, ‘give me your best room’.”
In addition, Asian travellers are now seeking experiential hotel stays, a trend Morin predicts will grow into the future.
“The way they look at a hotel is as an experience compared to other pleasures they used to have, which is to own something. I don’t need to own five cars but I want a vacation no one else can have,” he said.
“I believe the future for those with richness of (the) middle-class in Asia will continue to significantly grow, which is another very positive story.”
Hilton Garden Inn is set to triple its footprint in Greater China in the coming years with the opening of its 50th property in Greater China, Hilton Garden Inn Beijing Haidian Daoxiang Lake.
Building on the brand’s success in Greater China, Hilton will also ramp up expansion of Hilton Garden Inn across Asia-Pacific, including Thailand and Australia.
Hilton Garden Inn Beijing Haidian Daoxiang Lake marks the brand’s first hotel in China’s capital
For owners looking to capture demand from both business and leisure travellers, Hilton Garden Inn’s operating model makes it highly adaptable for mature and emerging hospitality destinations, as well as across city and resort locations.
Clarence Tan, senior vice president, development, Asia-Pacific, Hilton, shared: “Owners drawn to the profitable focused service segment gravitate towards Hilton Garden Inn for its efficient build, strong investment returns, greater flexibility through franchised and managed hotel agreement options, as well as the ability to leverage Hilton’s powerful commercial engine.
“Owners also value how we regionalise the brand for Asia-Pacific as that keeps us close to evolving guest preferences and positions us all for long term success.”
Hilton’s continued investment in Hilton Garden Inn has also driven a thoughtful and deeply researched regionalisation of the brand, such as innovating and optimising the guest experience.
“Travellers today have more exacting demands for quality, design, comfort, and value,” said Jenny Milos, vice president, brand management, suites & focused service, Asia-Pacific, Hilton.
Hilton Garden Inn has a global footprint of more than 970 hotels in 57 countries and territories, with 65 Hilton Garden Inn properties in operation, and over 100 in the pipeline in the Asia-Pacific.
PATA is set to organise two events this year – PATA Annual Summit and Mart 2023 in Pokhara, Nepal, as well as PATA Travel Mart 2023 in New Delhi, India.
Hosted by the Nepal Tourism Board (NTB), the PATA Annual Summit will run from May 29 to June 1, and will include a travel mart component this year.
The PATA Travel Mart 2023 will be held in New Delhi from October 4 to 6
The PATA Travel Mart will be held later in the year from October 4 to 6, and will be hosted by the Ministry of Tourism, Government of India.
Both events were announced during ITB Berlin 2023.
Citadines Connect Rochester Singapore, Singapore Citadines Connect Rochester Singapore is located in an integrated development at the Rochester Commons, occupying levels four to seven of the building, with convenient access to nearby train stations, parks, dining and entertainment.
With 135 rooms catering to both short and long stays, the property features a mix of studio units, including premier units with a kitchenette and washer-dryer as well as deluxe units with garden access.
Facilities include a lounge, F&B, swimming pool, gym, and a self-serve coffee kiosk in the lobby on level two. Guests can also opt for curated programmes to explore within the neighbourhood.
Danang Marriott Resort & Spa
Danang Marriott Resort & Spa, Vietnam
Danang Marriott Resort & Spa is nestled on Non Nuoc Beach, close to downtown Danang. It features 200 rooms and suites, and 39 villas.
The hotel offers F&B outlets, five infinity pools, including a kid’s pool, spa, fitness centre, kid’s club and event venues. Bicycle rental is also available.
Nearby the property are beaches, golf courses and UNESCO World Heritage sites such as Hoi An and My Son Sanctuary, Ba Na Hills and Son Tra Nature Reserve.
Regala Skycity Hotel
Regala Skycity Hotel, Hong Kong
The Regala Skycity Hotel boasts 1,208 rooms, as well as facilities like the rooftop sky deck, fitness centre, jogging track, outdoor pool, and 2,800m² of meeting and events space.
For dining, there is an all-day dining restaurant, bar and grill, and Chinese restaurant.
Located within the Skycity development next to Hong Kong International airport, the hotel is directly connected to the Asiaworld Expo convention and exhibition facility.
INNSiDE by Meliá Kuala Lumpur Cheras
INNSiDE by Meliá Kuala Lumpur Cheras, Malaysia
Situated in the vibrant commercial hub of Cheras, surrounded by shopping and nightlife, is INNSiDE by Meliá Kuala Lumpur Cheras.
With facilities like an infinity pool and meeting venues, the 238-room hotel has also implemented a range of eco-measures including solar-powered LED lighting, and a plastic-free environment.
Sheraton Phu Quoc Long Beach Resort in Vietnam has launched two family-friendly stay packages: The All-Inclusive and The World of Wonders.
Starting from four million dong (US$168) onwards per night, the All-Inclusive package is valid for stays between March 1 and November 20. Based on a double occupancy, it includes accommodation, three daily meals, complimentary roundtrip airport transfers, complimentary shuttle service to Vinpearl Safari and VinWonders Phu Quoc, the country’s largest wildlife conservation and theme parks.
Sheraton Phu Quoc Long Beach Resort offers two new packages for the whole family
The World of Wonders package is also based on a double occupancy, inclusive of accommodation, three daily meals, complimentary roundtrip airport transfers, complimentary shuttle service and tickets to Vinpearl Safari and VinWonders Phu Quoc. Valid for stays until June 22, the package starts from three million dong per night.
For more information, visit Sheraton Phu Quoc Long Beach Resort.
Persistently high airfares, which are not expected to ease, are eating into travel budgets
Travellers looking for savings by joining small group tours, downgrading accommodation
Heightened price watch does not come at the expense of destination experiences
Travellers are seeking more immersive experiences
Having quenched their thirst for travel in 2022 and exhuasted previously unused travel budgets, travellers are now scrutinising their travel plans and spend for 2023.
A recent Skyscanner travel and tourism outlook report found that while global travellers plan to spend on average 31 per cent more on travel in 2023 compared to 2022, they are also looking to make their money go further this year as the rising cost of living impacts trip decisions.
When thinking about where they would go and how they would spend during their trip, 36 per cent of respondents would pick a destination where their currency goes further, 32 per cent would seek savings from hotel accommodation, and 32 per cent would cut general expenditure.
Travel and tourism sellers told TTG Asia that since airfares – which have continued to trend high despite improving capacity – are an unavoidable travel expense, adjustments can only be made to land components to help travellers afford holidays this year.
Chunky fares
While industry watchers have said pricey airfares would ease with the return of usual flight routes and capacity, airline representatives now say airfares are not slated to decrease any time soon due to surging fuel surcharges and taxes.
Ngai Hoang, deputy director of Vietnam-based Vietravel, which operates Vietravel Airlines, said despite a “boom” in demand since the end of the pandemic, with the airline operating at 80 to 85 per cent capacity, airfares will remain high.
“I think fares will continue to increase,” he said. “This is due to high fuel surcharges, which are out of our control.”
Echoing Ngai, Marion Karsten, key account executive at Thai Airways, said: “Fuel surcharges remain very high, and this is an issue all airlines currently face.”
Karsten noted that fuel surcharges combined with taxes currently sit at between US$400 and US$500.
Despite Thai Airways’ capacity returning to pre-Covid levels at almost 100 per cent, Karsten said until fuel prices drop, airfares will continue to rise. Yet, dips in fuel prices will unlikely move airfares much, as “these fuel surcharges are always increasing and even if fuel gets cheaper”, she remarked.
Karsten believes that a slight reprieve may come as overall flight capacity into Asia increases, driven by Middle Eastern carriers such as Qatar Airways and Emirates adding more services to the region.
Le Thi Thu Thuong, deputy general manager of Hanoi-headquartered IndochinaTravelland, told TTG Asia that airfares are a “big problem” for travellers, particularly for those travelling from far away to Asia and to destinations without many direct flight access.
“Airfares can make up about 30 per cent of a traveller’s total budget,” said Le.
Spreading budget out
To maximise available holiday budget, travellers are spending smarter.
Dai Nguyen, marketing manager with boutique travel agency Saffron Travel, which has operations in Vietnam, Laos, Cambodia and Myanmar, said travellers who used to favour private tours before are now happy to join others to share the cost of a good escorted programme. As a result, Saffron Travel is doing brisk business with small group tours of no more than 10 travellers.
Similarly, Laurent Granier, co-founder & general manager of Laos Mood Travel, has observed a growing awareness among consumers that travelling in larger groups can attract “substantial savings”.
“People (realise that rates) decrease when the travel party is bigger. So, they talk about their plans to their relatives, friends and colleagues, and sometimes the confirmed party is bigger than the original request,” said Granier.
Granier also sees customers taking only English-speaking guides, which are cheaper than guides leading in other languages.
Similar to Skyscanner’s findings, Le said travellers are turning to more affordable hotel options for savings instead of cutting back on tours and activities.
Indeed, Lufti Pristiawan, director of sales with Courtyard by Marriott Bali Seminyak Resort in Indonesia, said his mid-range hotel has done very well among value-conscious travellers.
Nguyen: travellers are now happy to join others to share the cost of a good escorted programme
To earn amid cost pressures and price scrutiny, sellers say volume and duration are critical.
“We cannot raise the price of tours, neither can we switch experiences for cheaper ones. So, to make sure that the itinerary remains affordable while allowing us and our partners to make money, we have to drive greater volume,” said Le.
IndochinaTravelland has committed to retaining pre-pandemic prices for trade partners who had signed up with them before the Covid-19 disruption and are looking to materialise their trips this year. Doing so has helped to bring in much needed volume. However, Le said maintaining these prices for 2024 programmes would be a tough stretch.
To entice travellers to stay on longer, Courtyard by Marriott Bali Seminyak Resort runs a popular long-stay promotion where a minimum six-night stay gives the guest access to special room rates plus add-ons like complimentary laundry and one-time dinner.
Meaningful adjustments
However, the heightened price watch does not come at the expense of destination experiences, find industry players.
“Value is all about the perception of what your money can get you,” said Granier.
“When travellers are ‘forced’ to spend more on what is perceived as ‘not valuable’, like air tickets, which is an unavoidable travel expense, then they certainly want to make sure that what they do in the destination will be worth it,” he reflected.
DMCs themselves are doing their part to build programmes reflective of the times and current concerns.
Laos Mood Travel has “lightened up on some inclusions” – meals are recommended, not included, for example, unless the dining experience is an essential element of the activity. Such cases would be a Laos cooking class, meals at homestays, and picnics during hikes or treks.
“We also carefully plan itineraries that balance escorted content with a guide and free time”, he shared, adding that bicycles and trains are also used to get around, which adds flavour to the experience.
Granier believes that tours that “go slow” are meaningful and of great value to travellers today. By avoiding tours that “check-in and check-out every day just so people can see as much as possible of the country”, travellers get a more immersive experience of the destination.
At Saffron Travel, the team prioritises business with close partners who are happy to extend special rates as well as small-and-medium-sized local suppliers that “tend to charge slightly lower fees than the big boys”, revealed Nguyen.
Supporting small local business owners also allows Saffron Travel to feature homegrown ideas and operators while channelling earnings into the pockets of local people – something travellers today value.
Dominic Ong, general manager, Tour East Singapore emphasised that value-focused travellers are not simply looking for cheap deals. To present Singapore as a destination worth travellers’ time and money, Ong’s company is pushing for longer stays in the same hotel, which will grant travellers better hotel offers, and provide at least two unique activities per itinerary that offer a deeper look into the country.
Singapore Tourism Board’s new SingapoRewards programme, launched globally on March 7 at ITB Berlin 2023, is a timely initiative that answers to the value scrutiny. The programme provides international visitors with a chance to try one of nearly 40 new or undiscovered experiences for free.
The experiences are curated across various precincts and categories – Novelty and excitement; Food and dining; Sustainability; and Wellness.
Examples of what international visitors can expect include discovering the origins of Singapore Dry Gin at the Brass Lion Distillery Tour, and taking a behind-the-scenes tour of Changi Airport and Jewel.
The range of featured experiences will expand, as STB evaluates and approves more programmes for SingapoRewards, STB CEO Keith Tan told TTG Asia.
STB will fund the programme and reimburse experience operators for their participation.
Tan expects these experiences to offer new perspectives of Singapore, even to returning visitors who are familiar with the city-state.
To qualify for SingapoRewards, the visitor must be a short-term visitor arriving by flight and redeeming for the first time. Redemption is a fuss-free process via the programme’s microsite or VisitSingapore app. – Additional reporting by Marissa Carruthers
