Louis Sailer is the new senior executive vice president of The Imperial New Delhi.
He brings with him an extensive multi-cultural business management background, having turned around global luxury hospitality brands and operations in Germany, Japan, Singapore, China, London, California, Hawaii, the Caribbean and India.
Travel disruptions posed by the pandemic have present opportunities for airlines to demonstrate that they are more than just a mode of transport, and are also means to facilitate connections and link people with their families, friends and businesses, opined industry specialists on the CMO (chief marketing officer) Panel at the Aviation Festival Asia 2022 held last week in Singapore.
Marketers from AirAsia India, Malaysian Airlines and Japan Airlines also discussed a range of topics from digitisation, to building trust and leveraging new opportunities. Suren Gunatillake, managing director, APAC of EveryMundo, sat in as moderator.
The consensus was that despite disruptions to air travel, the industry has lived up to its reputation of being resilient. It has been able to adapt and even take a step back to understand where it is flying towards.
“I think what we have learnt is to be really agile… (to) innovate and do new things,” said Lau Yin May, group chief marketing and customer experience officer of Malaysian Airlines.
“That is how you continue to engage with the customers and get them so excited to continue that association with the brand.”
Personalisation is the way forward
Siddhartha Butalia, chief marketing officer of AirAsia India, was candid in his sentiments about how the industry has done a disservice to itself over the last 30 to 40 years: “We have commoditised travel into transportation.”
Undoing this would mean explicitly expressing how airlines add meaning into consumers’ lives. One way to do so, he opined, is through personalisation. For this, digitisation is an enabler, not just in the business process but in the mining of data – everything from travel duration, destination, and the types of trips.
“It’s really important to make sure that we’re collecting data and using it to add value to that customer,” noted Jonathan Wan, Japan Airlines’ director of global marketing.
Wan added that customers would “have certain expectations” of the airline now that it possesses their information. “There is this understanding that ‘hey, I’ve given this information freely, and I expect this personalisation’,” he elaborated.
Butalia agrees that consumers are now more conscious than ever of the data they are sharing and if they are doing it, brands must provide something in return.
Drawing upon an example of a recent loyalty campaign AirAsia India ran, Butalia said it invited consumers to “join the family” and conveyed the point that “being part of a family is supposed to be a rewarding experience”.
“What we’re also saying is that you can share a lot of personal information… because we are a brand that you can trust,” he said.
Wide ranging data application
Panellists reflected that data collection and understanding can bring multiple advantages to airlines and set them down paths to new business opportunities.
Data led Japan Airlines to focus on repatriation support for business travellers, and to strengthen its position as a carrier between Asia and the US.
In analysing data, Malaysian Airlines created 257 new products since the start of the pandemic. Of these, seven are still in use today, including the MHexplorer, a fully digitalised travel programme for students.
Lau reflected: “We know two things. One, our team is really good, they can do this stuff overnight. Two, we have a much better understanding of our consumers, what appeals to them, and how we can use this (experience) as a learning (point for) future product development.”
Understanding data obtained from organic searches during the pandemic also helped airlines to better respond to consumer needs.
“We were able to look at what people were searching for and make quick inclusions of these keywords,” said Wan.
For instance, in the early days of the pandemic, consumers were looking for things like “flexible ticketing” and “free changes”. Japan Airlines immediately saw to it that these key words were added to its web pages.
Over at AirAsia India, it was observed that traffic from online check-ins had tripled, informing the airline of changes to website usage and a growing preference for more direct engagement with the brand, shared Butalia.
Elaborating on the value of direct customer engagements, Wan said Japan Airlines partnered with Chinese online travel agents to create flagship stores in China that allow customers to purchase a ticket without friction.
Booking.com launched its inaugural APAC Travel Confidence Index, providing a snapshot of how confident consumers feel about exploring the world again, as well as whether they would welcome inbound travel. The commissioned research polled 11,000 travellers from 11 countries and territories across Asia and Oceania between April and May 2022, combining this with the company’s proprietary data and insights over the past 25 years.
The Travel Confidence Index explores the overall comfort levels, motivators and concerns of consumers across the Asia-Pacific and how this varies across the region. While there is a strong overall desire to travel more sustainably, the research also showed the more pragmatic considerations of travellers, such as cost and variety of sustainable stays, which impact whether sustainable intent ultimately translates into action.
As Asia starts to emerge from several years of strict border closures and lockdowns, the diversity in terms of consumer travel sentiment and confidence across the Asia-Pacific has certainly become more pronounced.
Travel confidence market ranking
Across the 11 markets polled, India emerged most confident with 86% of India travellers stating they intend to travel in the next 12 months; followed closely by Vietnam and China. South Korea, Taiwan and Japan ranked lower on the index in terms of overall confidence, although travel intent among respondents remained above 60%.
The research indicates that Indian, Vietnamese and Chinese respondents were most willing to put up with and/or overlook key travel deterrents in order to travel, such as enduring disruptions and travel costs; as well as confidence with their home countries/territories in receiving inbound travellers. However, 82% of Japanese respondents expressed uncertainty with their country’s preparedness to safely receive international travellers and border reopening (75%).
Singapore ranked sixth on the Travel Confidence Index despite having some of the most eased border restrictions in comparison to many markets across the region. Key factors that impacted Singapore’s standing in the index included general aversion towards any disruptions to their travel (65%), sharing personal information for public health and safety (57%) and personalisation (45%).
When it came to looking at how far Singaporeans would travel, 69% of respondents stated that they planned to take trips (of up to eight hours’ flight) to popular holiday destinations closer to home, such as Thailand and Indonesia.
Top travel motivators
The desire to travel remains strong among Asia-Pacific travellers overall, with ease of planning and booking travel as well as cost being the top two considerations. Both ranked consistently high across all markets, even as restrictions continue to ease around the region.
The desire to “just get away” (46%) also emerged as the top motivator to travel for Asia-Pacific consumers after two years of lockdowns and a rapidly evolving travel landscape; followed closely by a “getaway to recharge mentally” for 36% of respondents. In fact, for Thailand, such retreats were the prime motivator for an overwhelming 76% of respondents, a percentage far higher than any other market.
Across the region, only 13% indicated that work was a reason for them to book a trip, despite many employees having returned to the office across the Asia-Pacific, which could bode a slower revitalisation in corporate vs leisure travel. In fact, for Australia, work was the least common reason for travel at 6%.
Top travel deterrents
The uncertainty due to the constantly evolving Covid-19 situation is evident among travellers, who shared their top concerns and what would prevent them from booking a trip. “Travel cost” was listed as the number one deterrent by 38% of all respondents. This was followed by the “fear of having to undergo quarantine” (37%) and the “possibility of getting stuck because of frequently changing border regulations” (37%).
Top concerns for several destinations varied quite significantly. In Singapore, China and Hong Kong, the top concern was the possibility of getting stuck at the destination because of new border regulations (61%, 53%, 55% respectively), while in Japan the top concern of 47% of respondents was falling ill while travelling.
When asked whether travellers accepted disruptions as being part and parcel of travel now, 47% of Japanese and 32% of South Korean respondents said no – the only two markets to do so.
Sustainable travel remains important
According to Booking.com’s 2022 Sustainable Travel Report, 81% of global travellers affirm that sustainable travel is important to them, with 50% stating that recent news about climate change has influenced them to make more sustainable travel choices.
India once again topped the index in terms of intent to travel sustainably, with 93% of respondents agreeing on the importance of making sustainable travel decisions.
On the other hand, for travellers from Australia, New Zealand and Japan, cost and a wide variety of sustainable stay options are core considerations when it comes to making sustainable travel decisions. Singapore showed a strong belief in the need to prioritise sustainable travel, with 77% of respondents indicating its importance.
However, the Travel Confidence Index found that for the Singaporean traveller, a combination of having a variety of sustainable options conveniently accessible at a good price point, together with sustainability measures undertaken by properties transparently displayed would go far in empowering them to make sustainable travel decisions.
Staycations look set to stay for Singaporeans
Staycations as an escape from daily life look to become part of the permanent vacation roster with 36% of Singapore respondents indicating that they would continue to book staycations for events such as family trips (46%), milestone celebrations (38%) or even as part of their self-care regimen (23%).
Cruises, however, look set to sail into the sunset with just 9% of respondents indicating that they would book one as their next trip, potentially hinting at the desire for Singaporeans to take flight and rediscover both new and old destinations.
With the country slowly shifting toward endemic living with Covid-19, Singaporeans look determined to make up for lost time and are ready to do their part to care for the places they visit.
IHG Hotels & Resorts (IHG) and Unilever are collaborating to replace bathroom miniatures with bulk amenities in over 4,000 hotels globally.
As the first global hotel company to commit to all of its hotel brands removing bathroom miniatures in favour of larger-size amenities in 2019, the move is a key step in IHG’s pledge to eliminate single-use items throughout the guest stay by 2030, and part of its 10-year Journey to Tomorrow responsible business plan.
Unilever’s largest brand, Dove, will supply full-size hand wash, body wash, shampoo, conditioner, and body lotion to IHG Essentials and Suites Collection hotels, including Holiday Inn, Holiday Inn Express, avid hotels, Staybridge Suites and Candlewood Suites.
The roll out of full-size Unilever products across IHG’s mainstream brands, which accounts for around 80 per cent of IHG’s portfolio, follows the recent launch of larger-size bathroom amenities into InterContinental Hotels & Resorts properties.
Yasmin Diamond, executive vice president, global corporate affairs, IHG Hotels & Resorts, said: “IHG has pioneered the move to minimal waste in the hospitality industry and we’re excited to spell the end of bathroom miniatures through our collaboration with Unilever.
“Our guests are increasingly mindful of the impact their travel choices have on the environment and our colleagues, investors, owners and suppliers all expect us to act responsibly.
“We’ll continue to find innovative solutions for operating more sustainably to deliver our purpose of True Hospitality for Good.”
Umesh Shah, CEO Unilever International, added: “Unilever is committed to making sustainable living commonplace, and we have ambitious targets across every part of our business. Through this collaboration, IHG’s guests will enjoy a range of products from Dove during their stay, while reducing their use of plastic.”
The group is also working to eliminate single-use items, minimise food waste and adopt circular solutions for major hotel commodity items by 2030.
This June, visitors can look forward to Night Safari’s first walk-in exhibit for its civets, as well as the debut of two new unique nocturnal mammals, the Brazilian Porcupine and Grey-handed Night Monkey.
Nestled in the Leopard Trail, the walk-in civet exhibit is the new home for the common palm civets and the small-toothed palm civets. Guests can explore the habitat and observe the civets’ feeding and foraging behaviours up close while staying safe on the designated pathways.
Meanwhile, two species new to Night Safari – the Brazilian Porcupine and Grey-handed Night Monkey – have come from zoos in Europe to take up residence here in the new mixed-species habitat located at the Fishing Cat Trail. The Kinkajou, a small mammal relat-ed to raccoons and coatimundis, will also be sharing the exhibit.
For more information, visit Mandai Wildlife Reserve.
G Adventures released its trip departure list for July featuring 1,300 trips in more than 50 countries, as well as a 20 per cent off trips departing before July 31, 2022 when booked by July 5.
Also, the reopening of G Adventures’ popular Indochina loop experiences in Asia this July takes travellers to Cambodia, Thailand, Laos and Vietnam in one trip.
Trips eligible for the 20 per cent discount this June and July include a five-day Northern Thailand Hilltribes Trek beginning in Chiang Mai; a 12-day Classic Peru trip starting from Lima to Cusco, and cruising Lake Titicaca; an eight-day Morocco Kasbahs and Desert trip from Casablanca to Marrakech, traversing the dunes atop a camel for an authentic way to experience the Sahara; and a nine-day Costa Rica Quest trip to explore the region with a trail to the base of a waterfall or to melt away in thermal springs.
A 15 per cent discount is also available on trips scheduled for August and September departures.
For more information, visit G Adventures.
The Maldives is looking to promote travel to differently-abled people and other niche traveller segments as it continues to rebuild tourism.
Speaking at a press conference this week that coincided with the UNWTO Global Summit on Community-based tourism and the golden jubilee celebration of tourism in the Maldives, tourism minister Abdulla Mausoom said: “We are expanding our markets and not relying only on our traditional sources.”
The destination has lost its main source market, China, as a result of the pandemic. China made up 16.7 per cent of arrivals to the Maldives in 2019, or 284,029 travellers, but between January and March 2022, there were only 971 Chinese visitors.
Since reopening to international travellers in July 2020, the Maldives has become one of the most successful tourist destinations today. Average length of stay among visitors to the Maldives has risen from 7.5 nights pre-Covid to 8.5 nights.
Despite the Ukraine invasion, Russian travellers showed up strongly for the Maldives, recording 52,235 arrivals in January-March 2022 compared to 26,284 for the same period in 2019.
Thoyyib Mohamed, managing director/CEO of the state-run Maldives Marketing and Public Relations Corporation, also shared that the UK and Italy are performing well, bringing 50,584 and 52,848 travellers respectively to the destination in January-March 2022. For the same period in 2019, the two markets recorded 36,116 and 30,036 footfalls respectively.
“We are doing well in comparison to other (destinations),” Abdulla said, adding that the government is targeting 1.4 million to 1.6 million arrivals this year – higher than 2019’s arrival records of 1.48 million.
To build towards that ambition, the Maldives will grow business travel arrivals, facilitate travel for differently-abled people, as well as promote business events, sports tourism, culture tourism, shared deputy tourism minister Naushad Mohamed.
According to Ahmed Nazeer, secretary-general of the Maldives Association of Tourism Industry, resorts across the destination are working towards welcoming corporate groups of 30 pax and more.
“While Maldives is perceived as a holiday destination, there is a market out there for business travel and event engagements,” he remarked.
The Maldives’ tourism recovery is supported by a continuous stream of new products. Some 23 resorts are in various stages of development, and will soon join new properties that have recently opened.
Velana International Airport opened a new VIP/CIP complex earlier this year as part of the facility’s US$800 million expansion programme, which will add a new runway, passenger terminal, seaplane terminal, a 45-million-litre fuel farm and a cargo facility when the project is complete later this year.
ForwardKeys latest data released June 16 shows visitors from the US are returning in substantially greater numbers to South-east Asia despite the region lagging behind the rest of the world in its recovery from the Covid-19 pandemic.
From January 1 to May 31 this year, travel to South-east Asia reached just 18 per cent of pre-pandemic levels, whereas travel to Europe reached 55 per cent, to the Americas 66 per cent, and to the Middle East and Africa 64 per cent.
For the summer months (June 1 to August 31), flight bookings for South-east Asia are at just 43 per cent of pre-pandemic levels, whereas bookings for Europe are at 70 per cent, for the Americas 78 per cent and for the Middle East & Africa 85 per cent.
Analysis of longhaul flight bookings this summer reveals that travel from the US is set to reach 75 per cent of where it was in 2019, followed by Australia at 60 per cent of 2019 levels. The UK, Germany and France follow at 47, 58, and 57 per cent respectively.
The Philippines, Singapore, and Indonesia are the most popular destinations for US visitors. As high spenders, 17 per cent of US tourists fly in the front of the plane, compared to nine per cent in the equivalent months in 2019.
Destinations that relaxed restrictions earlier have shown stronger recovery, such as the Philippines and Singapore, with summer flight bookings for the former currently at 70 per cent of pre-pandemic levels, and the latter at 58 per cent. Summer flight bookings for Thailand, Indonesia and Vietnam stand at 35, 41 and 32 per cent respectively.
While airlines flying to South-east Asia have provided more than enough seat capacity to accommodate passenger demand throughout the pandemic, the acceleration in demand started to outstrip capacity in May 2022, causing the spike in air fares.
Olivier Ponti, VP Insights, ForwardKeys, said: “The recovery of air travel in South-east Asia is lagging because travel restrictions there have been tougher. China, which used to be South-east Asia’s largest source market, is still effectively closed; Japan, another major market for travel, is reopening very cautiously and (constrained) seat capacity is leading to higher air fares, which in turn dampens demand.”
PATA has partnered with travel data platform OAG to provide wider insight and intelligence to the Asia-Pacific visitor economy, through events, analysis and further data collaboration.
The new agreement will also provide PATA members with continued access to unique and reliable aviation data through the PATAmPOWER platform.
PATA members can benefit from OAG’s vast flight information, which covers the whole journey from planning to customer experience. The data helps businesses source new revenue streams, drive growth across operations, and deepen the relationship with customers.
Santosh Kumar, PATA’s director of business development, said: “Strengthening our partnership with OAG ensures we can provide members with the highest quality, most reliable aviation data including historical data (back to 2018) and 12-month forward frequency and seat capacity data. This will enable them to make smarter and more insightful decisions as they plan their recovery strategies.
“I look forward to leveraging OAG’s data and insight to assist us in our mission for the responsible development of travel and tourism to, from and within the Asia-Pacific region.”
Mayur Patel, OAG’s head of sales, Asia, added: “Our deeper partnership with PATA will provide richer data insights to facilitate market recovery and future investment in the region. As Asia-Pacific air travel embarks on its own come back journey, having access to data, networks and knowledge through this collaboration will equip PATA members will vital insight to get ahead of the curve.”
A reorganisation of the government structure under the leadership of chief executive-elect, John Lee Ka-chiu from July 1, 2022 has resulted in the formation of a new Culture, Sports and Tourism Bureau (CSTB).
Currently, tourism is overseen by the Commerce, Industry and Tourism Branch of Commerce and Economic Development Bureau.
Taking the helm of CSTB is Kevin Yeung, the former secretary for education since 2017. He joined the government as an administrative officer in 1992.
According to the Legislative Council, the restructure will accelerate the development of Hong Kong into an East-meets-West centre for international cultural exchange under the 14th Five-Year Plan. Members have been urging the government to refresh its cultural policy by widely consulting stakeholders in various sectors and develop innovative cultural objectives. In their view, culture and sports should no longer be regarded as money-generating items but as a complement to and reinforcement for the development of tourism and creative industries.
Meanwhile, aviation veteran Algernon Yau has switched over to public service, taking on the role of secretary for commerce and economic development. He was last board director and CEO of soon-to-launch Greater Bay Airline.
Hong Kong’s tourism leadership has seen other recent changes too. The Travel Industry Authority (TIA) will be in place from September 1, 2022 to take over the supervisory role of licensing and regulating travel agents, tourist guides and tour escorts from the Travel Industry Council. TIA will be headed by Annie Fonda, who retired from Hong Kong Police Force after 27 years. She was the director of operations and professional development with the Estate Agents Authority between 2014 and 2020.
In May, the Hong Kong Association of Travel Agents (HATA) elected a new chairman – Andy Lau, managing director of 360 Holidays, replaced out-going chairman Ronald Wu after his second two-year term.
