New hospitality firm to drive sustainable growth for Thai hotels, restaurants
As the tourism and hospitality industry in Thailand looks to welcome back international guests under a phased reopening plan, a Bangkok-based boutique hospitality consulting start-up wants to give local hotels and restaurants a leg up on the competition.
Launched in March 2021, WaiThai Hospitality is led by veteran hotelier Thomas Pfordte, who has 25 years of senior leadership experience in hotel and restaurant operations in Asia, the Middle East and Europe.
Speaking to TTG Asia, Pfordte said the idea to launch the company was born prior to the pandemic, and has been further developed during the long lockdown phase. The team also comprises marketing manager Jantana Tanprasit and senior advisor Bob James – both internationally experienced hospitality professionals.
With the pandemic posing challenges to a large swathe of hospitality businesses, WaiThai Hospitality aims to drive the long-term profitability and sustainability of hotels and restaurants launching or reopening in Thailand.
Explained Pfordte: “The hotel and restaurant sector in Thailand has experienced many years of unprecedented growth, until its peak in 2019. Such a business environment often makes entrepreneurs less critical about their own operations.
“For instance, (manpower) levels and efficiency, as well as sustainability and procedures in general were not questioned to the level needed to sustain a healthy profit over time. Now is the time (for) hoteliers and restaurateurs to look into details, (and) challenge expenses and how things are done.
“My key point, however, is not to just reduce (manpower) levels, but look at smart solutions without ever compromising the guest experience.”
With international tourism staring at sustained headwinds ahead, operating a hotel or restaurant in the post-Covid era comes with a fresh set of challenges.
Pfordte said that while reduced tourist flows could mean a revenue hit for hotels and restaurants, these establishments would be “judged more than ever by the experience they offer, and at what price”.
He added: “Hence, managing expenses without ‘cutting corners’ is crucial. The intelligent usage of systems, in regards to guest related as well as administrative functions, becomes even more relevant. Guests will want to experience high levels of creativity and the sense of culinary adventure.”
Pfordte noted that one of the most immediate challenges faced by many hotels and restaurants in Thailand is a severe cash flow issue after almost 18 months with drastically diminished demand.
In cutting back on payroll, the highest cost component in hospitality businesses, companies may see manpower being stretched while performing the usual tasks. In such cases, WaiThai Hospitality is able to step in to support F&B or hotel senior management functions at hotel companies as well as assist on small, specific projects for hotels and restaurants, such as redesigning menus, conducting productivity studies and analysing manpower guides.
The company is currently in negotiations with large and small companies to become potential partners, shared Pfordte. Once travel rebounds, he plans to expand the firm internationally, beginning with other South-east Asian countries and the Middle East.
A proponent of sustainability, Pfordte also sees “big opportunities” to promote environmentally-friendly practices among Thai hoteliers and restauranteurs.
“The country grows some of the best agricultural products on earth. Why do (restaurants in Thailand) have to fly in food items from the other end of the globe? Why is a bottle of imported mineral water (being sold) for an inflated price in restaurants, when still and sparkling water (can be bottled) on-site, eliminating the transport while still serving a premium product to guests? Some of the world’s best restaurants in the US, Europe and elsewhere, have adopted this practice,” he said, adding that restaurants in Thailand can achieve the same.
Airlines prepare to resume Phuket flights
Major airlines are scheduling flights to Phuket, as the resort island gears up to welcome vaccinated travellers without quarantine beginning next month.
Thai Airways International (THAI), Qatar Airways, Emirates, Singapore Airlines, and Israel’s carrier EL AL are the first batch of airlines to take advantage of Phuket’s reopening, after 1.5 years of border closure.
THAI’s CCO Nond Kalinta said the national flag carrier plans to operate direct flights to Phuket from Copenhagen, Frankfurt, Paris, London, and Zurich from July to September this year.
In addition, its subsidiary THAI Smile will be operating four round-trip flights per week between Phuket and Hong Kong every Monday, Wednesday, Friday, and Sunday, beginning July 2.
Singapore Airlines has added one more flight on the Singapore-Phuket route since June 1, up from two existing flights per week.
Qatar Airways is planning to operate four-weekly flights to Phuket, starting July 1, according to Akbar Al Baker, CEO of Qatar Airways Group. This will augment the Middle Eastern airline’s existing 12-weekly flights to Bangkok.
The airline plans for Phuket-bound services from Europe, the Middle East, and the US, given that the resort town is a popular holiday destination for tourists from these continents.
Another carrier from the gulf region, Emirates, is also starting direct flights from Dubai to Phuket four times a week, beginning July 2. The airline has also since last September resumed daily flights to Bangkok from Dubai.
In addition, Israel’s carrier EL AL will resume daily non-stop flights on the Tel Aviv-Phuket route from next month.
Accor signs second MGallery resort in Phu Quoc
Accor is further expanding its presence in Vietnam, following the signing of a new MGallery hotel in Phu Quoc, set for a 2023 debut.
Developed in partnership with Trung Son Group, MGallery Phu Quoc will feature 94 hotel rooms and 37 villas, alongside two restaurants, a meeting room and wellness facilities including a swimming pool, gym and spa.
Located in Suoi Lon, Duong To, 15 minutes from Phu Quoc international airport, the 60ha resort will draw inspiration from the National Park of Phu Quoc to offer a secluded experience alongside forests and beaches.
MGallery Phu Quoc will join Accor’s seven properties in Phu Quoc, and is the hospitality brand’s second MGallery on the island. Currently, Accor has 39 hotels operating in Vietnam, with 40 projects in the pipeline.
Hotels keep pace with booming wellness trend
- With wellness tourism poised for exponential growth post-pandemic, more hotel brands are keen to get in on the act
- From introducing wellness butlers to forging partnerships with wellness-related businesses, hotels are stepping up their wellness game
- Wellness-boosting initiatives by hospitality brands expand into the digital space to support guests remotely
Wellness is slated to become part of a hotel’s core DNA post-Covid, and industry experts predict it will delve much deeper than yoga and a spa to sharply focus on mental and emotional wellbeing.
While the wellness movement has been rapidly gaining momentum even before Covid-19, it is predicted to vastly accelerate post-pandemic as travellers seek respite from long periods of uncertainty, lockdowns and restrictions on everyday life.
At the virtual Arabian Travel Mart, Emlyn Brown, global vice president of Accor well-being luxury and premium brands, said in 2019, 80 to 85 per cent of luxury guests were making conscious daily steps to incorporate health and wellbeing into their lives.
He added: “This will vastly accelerate post-Covid. People now understand more the importance of taking care of their health and wellbeing, boosting immunity and looking after themselves.”
Once largely the preserve of luxury brands, Brown said the pandemic has seen the wellness movement start to trickle down to eco- and mid-scale brands.
He noted: “Millennials and Gen Z are looking for that fitness, health and wellness element; they expect it. This generational shift will drive demand into the eco- and mid-scale sector, whether its Ibis Styles encouraging outdoor exercise (or) mid-scale hotels like Novotel encouraging mindfulness.”
Brown observed wellbeing is already being integrated into some hotel brands’ core ethos. For example, Accor’s Raffles Hotels and Resorts introduced ‘wellness butlers’. They are on-hand to see to guests’ every wellbeing-related need in-room.
This forms part of the Emotional Wellbeing by Raffles programme that offers curated experiences based around the pillars of harmonious design, nutrition for pleasure and serenity rituals.
Accor’s M Gallery brand hotels have formed partnerships with wellness-related businesses and experiences close to properties. Wellness concierges are trained to be able to assess guests’ needs and make tailored recommendations.
Said Brown: “This engages people in unique locations and experiences. The idea of concierges now adding a wellness element is going to be something all hotels need to consider.”
Mandarin Oriental Hotel Group is also enhancing its wellness experiences in response to the pandemic.
Jeremy McCarthy, director of spa and wellness, said: “We see people looking for programmes to develop themselves. They (not only) want to build physical strength and make sure their immune system is strong, but also (cultivate their) inner strength. This is about building mental resilience because of living through this time of great uncertainty, stress and anxiety.”
The group started by crafting a four-week, online Inner Strength, Outer Strength training programme that encompasses physical wellness, vitality and mindfulness. This was initially delivered to employees.
Noted McCarthy: “If we want our colleagues to really be able to take care of our guests, they have to be strong themselves.”
The concept was then rolled out across its spas. The programmes allow guests to tap into the knowledge of expert trainers and practitioners, such as traditional Chinese medicine specialists, kung fu masters and meditation teachers.
The hospitality brand has also developed a series of virtual assessments and online tips to support guests remotely. This marks another emerging trend within the sector that sees the wellness and digital worlds collide.
Elsewhere, Pullman Hotels and Resorts has teamed up with Les Mills, the world’s largest creator of group fitness classes, to launch Pullman Power Fitness Fuelled by Les Mills. This gives guests access to multiple workouts and training sessions via on-demand videos that can be accessed from anywhere for a certain time.
Novotel is also working with popular sleep app, Calm, to offer guests who stay in an Executive Room a 60-day pass.
Said Brown: “Another big shift is towards the sixth pillar, the digital adoption of wellness and wellbeing, and how we can do that in a good way.”
KrisShop set to launch initiative providing passengers air-to-ground connectivity
In a bid to rejuvenate inflight retail, Singapore Airlines’ (SIA) online shopping platform KrisShop has an upcoming initiative designed to allow passengers a seamless e-commerce experience through the integration of KrisShop into the airline’s inflight entertainment system KrisWorld.
A collaboration between SIA, AirFree/Thales and Panasonic, the offering also provides an express fulfilment service, whereby pre-order lead-time to flight down is shortened to a mere 60 minutes.
Chris Pok, CEO of KrisShop, explained: “The initiative entails an industry-first air-to-ground connectivity technology, which will allow KrisShop to achieve real-time updates of stock availability, and enable passengers to shop inflight and have their purchases delivered directly to their next flight or straight to their homes.”
Covid-19 may have upended the travel industry and greatly affected KrisShop as inflight sales contributed significantly to its overall revenue, but it deftly turned challenge into opportunity through its omnichannel strategy by strengthening its flagship e-commerce store, KrisShop.com, to capitalise on the pandemic-induced e-shopping boom.
KrisShop expanded the assortment of brands and products available on its site, fast-tracked the onboarding of new partners, reduced local delivery times to as early as the same day upon check-out, as well as gave consumers the option of redeeming miles earned through their purchases.
Throughout the year, it also launched a number of campaigns and promotions for both local and international shoppers as many remained landbound.
The move paid off handsomely with one of the best campaigns during the pandemic period, Anniversary Fiesta, performing twice as good as other campaigns in the same quarter. KrisShop also more than doubled its sales compared to the year before.
Pok added: “Beyond e-commerce, we’re also developing new ways of working with existing inflight partners. We understand that the future of inflight retail will need to exemplify new customer engagement approaches based on the current climate, and making a comeback will require all parties involved to exercise their core strengths to collectively deliver experiences like never before.”
Malaysia Airlines scales down operations amid MCO 3.0
Malaysia Airlines (MAS) has reduced its services by 85 per cent across its network during the nationwide movement control order, from June 1 to 14.
However, the airline will continue to facilitate essential domestic and international travels as well as cargo movement, it said in a statement.
MAS said due to travel uncertainty, it has also extended its rebooking travel flexibility by a year, offering customers longer ticket validity until December 31, 2022 with a one-time fare difference and service fee waiver.
Eligible customers can rebook their travels on or before June 30, 2022 for travel to be completed by December 31, 2022.
Previously, the airline offered customers the flexibility to rebook their travels on or before June 30, 2021 for travel to be completed by December 31, 2021.
Group CEO of Malaysia Aviation Group, Izham Ismail, said: “The recent spike in Covid-19 cases in Malaysia has moved us to prioritise further the safety and health of our passengers and employees. With customers being the centre of gravity, we hope the extended travel rebooking flexibility regardless of the class fare will provide the certainty and peace of mind that their tickets remain eligible for future travel with us.”
As Malaysia continues to impose quarantine order for international arrivals, MHholidays, the tour operating arm of MAS, has recently started offering quarantine packages at hotels approved by Malaysia’s Ministry of Health. These packages include complimentary transport from the airport.
Hilton hires new SVP for APAC
Hilton has appointed Clarence Tan as senior vice president, development – Asia Pacific.
In his new role, Tan is in charge of leading the company’s development strategy in the region, deploying Hilton’s brands across Asia-Pacific and continuing to deliver best in class financial returns for owners.
With more than 20 years’ industry experience, Tan joins Hilton from international hotel management and development company, Valor Hospitality, where he served as the principal and corporate advisor.
Prior to this, he was group CEO at Millennium & Copthorne after serving at IHG in several senior leadership positions.
A Singaporean by birth, Tan is based in Hilton’s Asia Pacific headquarters in Singapore, reporting to both Alan Watts, president, Hilton Asia Pacific, and Kevin Jacobs, CFO and president, global development for Hilton.
Majority of Singaporean travellers desire to travel more sustainably
The pandemic has pushed the concept of sustainable tourism to the forefront of travellers’ minds, with new research released by Booking.com showing that 74 per cent of Singaporean travellers believe that immediate action is required to save the planet for future generations.
As the world of travel starts to open up again, Booking.com’s 2021 Sustainable Travel Report revealed that Singaporean travellers are more committed than ever to do so in a mindful way, with over two thirds (70 per cent) stating that the pandemic has influenced them to want to travel more sustainably in the future.
This research comes at a time where Singapore is doubling down on sustainable tourism. As travellers become more conscious about the environment and discerning in their choice of service providers, Singapore is preparing itself to seize these opportunities by pumping in S$68.5 million (US$51.7 million) into its Tourism Development Fund, for travel businesses looking to test-bed sustainable tourism offerings.
According to the findings, Singaporean travellers’ day-to-day sustainable commitments are consistent with their intentions for future trips, with 83 per cent wanting to reduce general waste, 81 per cent wanting to reduce their energy consumption (e.g. by turning off air conditioning and lights when they are not in a room) and 77 per cent wanting to use more environmentally-friendly modes of transport.
Respect for the local community is also high on the list as almost three quarters (73 per cent) want to have authentic experiences that are representative of the local culture when they travel, 84 per cent believe increasing cultural understanding and preservation of cultural heritage is crucial, and 78 per cent want to ensure the economic impact of the industry is spread equally in all levels of society.
Furthermore, 70 per cent of Singaporean travellers will go as far as avoiding popular destinations and attractions to ensure they aren’t contributing to overcrowding challenges and helping do their part to disperse the positive benefits of travel to less frequently visited destinations and communities.
These good intentions are inspiring action too. Many of these sustainable pledges are coming to fruition, with Singaporean travellers revealing that while on vacation in the past 12 months, 47 per cent made a conscious decision to turn off their air conditioning/heater in their accommodation when they weren’t there, 43 per cent took their own reusable water bottle rather than buying bottled water while on vacation, and 30 per cent did activities to support the local community.
In fact, over half (55 per cent) have admitted that they get annoyed if somewhere they are staying stops them from being sustainable, for example, by not offering recycling facilities. However, there is still room for improvement as more than half of travellers are not yet thinking about the local community during their trips or taking these small steps to minimise their impact.
While a vast majority (90 per cent) of Singaporean travellers say they want to stay in a sustainable accommodation in the upcoming year, 59 per cent still believe that in 2021, there simply aren’t enough sustainable travel options available. In fact, 77 per cent of Singaporean travellers would be more likely to choose an accommodation if it has implemented sustainability practices, with a similar amount (75 per cent) thinking travel companies should offer more sustainable choices.
In terms of awareness and intentions, travellers and properties do appear to be on the same page, with new research revealing that 82 per cent of Booking.com’s accommodation partners surveyed view sustainability in the hospitality industry as being important. This mirrors the 84 per cent of Singaporean travellers who also believe sustainable travel is an important issue.
However, although three out of four accommodation partners say they have implemented sustainable steps at their property, only one-third (31 per cent) actively communicate about their efforts proactively to potential guests, with this mostly happening at the time of check-in (59 per cent), indicating that significant challenges remain to making sustainability information easy to access for travellers at earlier stages of the booking process.
To make sustainable choices easier for travellers, Booking.com is rolling out a programme to better support properties on their green journey. This includes sharing guidance, insights and best practices with properties via various educational opportunities, including handbooks and dedicated content, all available via the Booking.com Partner Hub.
In connection, Booking.com is also currently displaying over 30 certifications officially approved by the Global Sustainable Tourism Council, Green Tourism and the EU Ecolabel, as well as multiple hotel chain sustainability programmes. The company is sourcing this information directly from the certification bodies and displaying it on the property pages of partners who hold one of these established third-party certifications. To complement this, Booking.com is also encouraging its accommodation partners to update their sustainability information.
Maldives invites bids for development of tourist resorts
The Maldives has invited bids to operate tourist resorts in 16 uninhabited islands, with the offer closing on June 24.
Tourism deputy minister Assad Riza said that local authorities are confident of garnering some positive response for the 16 islands which allows for the construction of resorts with a minimum total of 3,120 beds. Currently, the Maldives has over 50,000 beds in operation at 152 resorts, 12 hotels and 618 guest houses across more than 150 resort islands.
According to the bid document, the government is hoping to raise a total of US$15.4 million from the leasehold rental of the 16 islands, with the lease period being 50 years and construction to be completed within 36 months after the signing of the leasehold agreement.
Among the stipulated conditions in the bid offer is that 70 per cent of the resort staff must be local Maldivians with a minimum of 5 per cent being local females, and that up to 70 per cent of power generation should come from renewable energy. It also entails the discouragement of unsustainable practices including the removal of natural vegetation on the islands.
The Maldives is home to more than 1,100 islands, many of which remain uninhabited.
Tourism in the country has been on the mend, after the pandemic forced a brief closure of its borders last year. According to officials, arrivals have slowed down due to various outbound restrictions placed in key source markets in the west.
“This is not a problem as this is the traditional off-season,” said Maldives Marketing and Public Relations Corporation managing director Thoyyib Mohamed. “The main thing is that we are open for tourism.”
Arrivals up to May this year were 454,383, an increase from the 382,816 arrivals in the year-ago period, but a significant drop from the 749,114 arrivals in January-May 2019. Arrivals dropped to 64,613 in May 2021, from 91,200 in April. Russia, India, Germany and Ukraine were the top source markets.
As of June 5, the Maldives has reported 64,396 Covid-19 infections, with 161 deaths.
Krabi’s tourism sector has remained resilient despite the Covid-19 pandemic, with the province’s gateway airport trafficking over one million domestic passengers in 2020, according to a C9 Hotelworks’ report.
The hospitality consulting group’s latest Krabi Hotel Market Update revealed that unlike the Southern Thai resort markets of Phuket, Khao Lak, and Koh Samui which are highly foreign dependent, nearly half of the tourists staying in Krabi in the pre-Covid year of 2019 were domestic.
Outside of Bangkok, the destination had the fifth-highest airport passenger tally in the country.
C9 Hotelworks’ managing director Bill Barnett said in the report: “While hoteliers are looking at the reopening of international markets in October as a second-phase of Thailand’s Sandbox initiative, many wonder how long is the next cycle back to stabilised trading of the pre-Covid 2019 era?
“In the South of Thailand, with Phuket firmly encamped in mass tourism and Samui hampered by airlift limitations, Krabi is reaching a critical intersection on what market model to pursue. In contrast to Phuket, Samui or Phang Nga, Krabi had the highest level of domestic guests at accommodation establishments, with Thais accounting for 43 per cent in 2019.”
According to STR’s area director of Asia Pacific Jesper Palmqvist, Krabi capitalised the most of any Thai market during the extended long weekend over Songkran in mid-April, peaking at just over 80 per cent occupancy on April 11, well above that of other islands like Koh Samui and Phuket, that also saw an increase over the holidays.
“Amidst the gloom and doom of low domestic demand, vaccine conversations, and no international tourism – there is perhaps some solace in the fact that pent-up demand is alive and kicking for pandemic-weary travellers looking for open spaces,” Palmqvist said.
Echoing the sentiment of many Krabi hotel owners and tourism operators, Barnett pointed out that “the industry is looking back at 2019 as a gauge of looking towards the future”.
He added: “That year, Krabi hosted over four million guests at tourism establishments. Mainland China was the largest single international source market representing 14 per cent, followed by Europe which was highlighted by the UK, Germany, and France.”
According to C9 Hotelworks’ report, the existing hotel supply in Krabi is highly concentrated with unbranded mid-scale properties. In the pipeline, the incoming key properties are affiliated with international hotel brands which is a sign of destination maturity. With more upscale and luxury properties entering the market, Krabi will benefit from growing destination awareness and greater diversified market segments.
Looking forward, the upgrade and expansion of the existing Krabi Airport including a new terminal and runway will attract airlift and grow capacity.