TTG Asia breaks for Lunar New Year
TTG Asia will be taking a break from February 12-15, 2021, for the Lunar New Year holidays. News will resume on Tuesday, February 16, 2021.
From all of us at TTG Asia Media, we wish all of our readers a happy and prosperous Lunar New Year!
SIA welcomes new GM for China market
Singapore Airlines has appointed Ng Boon Kiat Melvin as its general manager for China, effective since February 8, 2021.
Based in Beijing, Ng is responsible for the airline’s strategic planning and market expansion in China.
Having been with the airline for nearly two decades since 2002, Ng has successively held several positions including sales and distribution executive, corporate account manager, regional marketing manager for North Asia, and manager for Northern China.
He has also taken on the general manager role across several markets, namely, Sri Lanka, Russia, Vietnam, and Taiwan.
Tang’s Living Group bolsters senior management team
Tang’s Living Group has appointed two new group general managers to its senior management team.
Henry Tse, current general manager of Hotel COZi, steps into his new role as the group general manager – hotel operations & brand development of Hotel COZi, Bay Bridge Lifestyle Retreat and Commune. His new role will see him managing five hotels and a co-living space.
Prior to joining Hotel COZi as hotel manager and serving as part of the hotel’s pre-opening management team back in 2017, Tse has over 30 years of hospitality experience. He previously held management positions at hotels such as Dorsett Tsuen Wan Hong Kong and Silka Far East Hotel.
Meanwhile, Alfred Chan, also a 30-year hospitality veteran, assumes the position of group general manager – hotel operations & brand development of Hotel Ease, Hotel Ease Access and Minimal Hotels. In total, he will be managing 10 hotels.
Chan joined Tang’s Living Group in 2018 as the general manager of Hotel Ease‧Tsuen Wan and Hotel Ease Access‧Tsuen Wan, where he helped to enhance brand awareness and development. He has also held leadership roles in Metropark Hotel Kowloon and Kew Green Hotel Wanchai.
Singapore delays segregated travel lane
Delays have set in for a new segregated travel lane allowing short-term business travellers to stay, work and meet at dedicated facilities in Singapore.
According to national papers, The Straits Times, the Connect@Singapore initiative has been delayed at least until February 21. It was scheduled to launch last month, with the first travellers under the scheme arriving in Singapore from the second half of January.
The first dedicated facility these travellers will be put up in under the scheme is now expected to open for check-in only from February 21, sources told The Straits Times.
The Ministry of Trade and Industry (MTI), which is overseeing the Connect @ Singapore scheme, did not say why the scheme has been delayed.
An MTI spokesman would only say that the start date for applications for the scheme will be “broadly aligned with the estimated operational start date of the first Connect @ Singapore facility”.
Singapore Tourism Board’s executive director for infrastructure planning and management, Chew Tiong Heng, told the broadsheet that assessments on the first facility – Connect @ Changi facility at Singapore Expo – are in the final stage and no reservations have been taken from the travellers yet.
Indonesian tourism players split on government recovery plans
Government directions to salvage Indonesia’s ailing tourism industry by speeding up development of five super priority destinations as well as nursing Bali back to health have inspired debate among industry stakeholders.
At a recent Reviving the Tourism Industry Webinar, minister of tourism and creative economy Sandiaga Uno stressed the importance of Bali as a critical contributor to the country’s tourism and creative economic sector. As such, he intended to share his recovery focus on both Bali as well as the five super priority destinations, being Lake Toba in North Sumatra, Borobudur in Central Java, Labuan Bajo in East Nusa Tenggara, Mandalika in West Nusa Tenggara and Likupang in North Sulawesi.
Objecting the approach, Hariyadi Sukamdani, chairman of Indonesia Hotel and Restaurant Association, opined that the government should focus solely on Bali first in its recovery efforts.
“(Doing both at the same time) will require (too much energy) and may not be effective,” Hariyadi explained.
He asserted that Bali alone can restart Indonesia’s tourism industry quickly, as the destination has complete infrastructure and attractions while the five super priority destinations are still in development.
Citing some examples, Hariyadi said Lake Toba still needed hotels and restaurants with “decent service” while Borobudur Temple Ground and Komodo Island, which have a capacity limit, needed more events and attractions in the surrounding areas to stimulate demand.
Likupang also lacks infrastructure and tourist attractions as traffic pullers,” he added.
On the other hand, Viktor Laiskodat, governor of East Nusa Tenggara (NTT), supports the government’s move, saying that the current travel downtime presents an opportunity to develop new destinations such as Labuan Bajo and Komodo National Park.
“(Now) is the right time to develop facilities, infrastructure and connectivity (to allow) NTT to catch up with the other provinces. When the pandemic is over, tourists can see NTT’s transformation,” he said.
Nurdin Abdullah, governor of South Sulawesi, also hopes that the national tourism authority will consider developing his region, which boasts popular attractions such as Toraja, Selayar island and Taka Bonerate National Park. He added that South Sulawesi’s new airport aids accessibility and is capable of accommodating ATR-72 aircraft.
What could have Chinese New Year travel looked like?
There were high hopes for travel during this typically popular period, especially after a strong travel recovery in the domestic sector by the end of 3Q2020. But local Covid-19 outbreaks have resulted in official policies throughout the country requiring people not to leave the areas where they live, and as such travel bookings have dropped dramatically.
The outlook is quickly deteriorating for Chinese New Year domestic travel.
Nan Dai, China market expert at ForwardKeys, noted that the number of tickets issued to travel within China for the Chinese New Year monitored throughout December 2020 was down 57.3 per cent from the same period in 2019.
As of January 28, issued tickets plunged 75.9%.
Travel agencies have been restricted from selling group tours or packages to high- or medium-risk areas, and some tourist attractions have closed.
Sienna Parulis-Cook, associate director of communications at Dragon Trail Interactive, added that as of January 18, air and rail departures from Beijing over the Spring Festival period were already down by 43 per cent compared to 2020, and 69 per cent compared to 2019.
The National Railway Group has shared dismal results: tickets for the three days from January 28-30 were only a quarter of what they were in 2020, and tickets for January 31 were down by 75 per cent.
What could have happened?
Looking at WeChat marketing for international hotel brands (as tracked weekly by Dragon Trail Interactive) over the past two months, the main promotional theme was “Sun or Snow.” This means the very extensive promotion of wintery, ski-oriented destinations in north-eastern China, as well as the tropical island climate and tax-free shopping in the south, in Hainan.
This was demonstrated by the issued tickets leading up to the Chinese New Year, before the new strains of Covid-19 appeared and drew travel restrictions between provinces.
“Travel to southern parts of China with warmer weather and fewer new cases witnessed the most advanced bookings. Guangdong tops the list and Hainan jumps to the second place with 33 per cent recovery in ticket volume as of 14 January,” said Dai.
The team at Dragon Trail monitored online a host of activities by five-star hotels promoting the south or north. Marriott published an article on WeChat in January recommending the Harbin Ice and Snow Festival, skiing in Changbaishan and Chongli, and winter beauty in Changchun. A recent report by travel website Qyer.com listed Changbaishan, a mountainous area in Jilin Province, as 2020’s eighth fastest-growing travel destination in China.
Shangri-la also promoted hotels in Harbin in December, while Ibis promoted Changchun and Harbin. At the same time, Hilton publicised its extensive selection of properties throughout China, as well as dreamy holidays in Sanya, Hainan.
The international hotel brand to promote this “Sun or Snow” concept most heavily for winter tourism was IHG Hotels & Resorts. In December, it published posts offering a choice between a tropical winter break in Hainan, and snowy travel in the north of China. On January 4, it again integrated this concept into an interactive post showing how much better 2021 would be compared to 2020. Through illustrations, it shows consumers stuck at home in 2020 but out surfing or learning to ski in 2021.
The optimism was unfortunately premature.
The Great Spring festival staycation
There is still some push for Hainan travel – on February 1, the Sanya government announced that travellers from low-risk areas with a green Hainan health QR code will be able to skip the PCR test before coming to the island.
At the end of January, Marriott was still promoting little family reunions in Hainan, and Shangri-la Sanya rolled out Chinese New Year family packages while stressing its high hygiene standards.
However, travel from other provinces seems increasingly unlikely, despite the desire to do so. The most up-voted comments on an Agoda Chinese New Year promotion for Sanya published on a WeChat travel blog in mid-January included: “Schools, work units, and organisations are all forbidding travel outside the city – who would dare to go?” and “It’s so cheap! But we’re not allowed to leave our area.”
Parulis-Cook predicts that staycation will lead the Chinese New Year travel trend in 2021.
“As of January 22, the Trip.com Group reported that Spring Festival staycation bookings were up 260 per cent, with searches for local travel up by 40 per cent. 80 per cent of their users will stay local over Chinese New Year, they said, with increases all over the country,” she shared.
At the same time, OTA Tongcheng reported that cancellations had become more common, with a trend to stay local, stay isolated, and do slow travel in the area. They also identified a trend of staycations in hotels, with customers booking family suites and high-tech offerings like e-sports rooms or audio-visual rooms popular. They reported that in the previous 10 days, searches for local travel products had increased eight-fold, with a six-fold growth in searches for local accommodation plus sightseeing packages.
Dai added: “Indeed, this is the holiday period when families most often travel together. Our issued tickets back this further by showing that on February 13, passengers travelling in family size (two to five people per booking) represents around 60 per cent of all departures, and the share of passengers travelling alone represents only 10 per cent, down by 20 per cent from the day before the holiday.”
Hotels have had to be quick to adapt their marketing. As late as January 19, IHG was still promoting skiing holidays in Jilin and Hebei. By January 27, the messaging had changed. “Not going home for Spring Festival? You can still have a great celebration where you are,” read the WeChat article’s headline, with suggestions for short, local trips to quiet places should travel plans be cancelled.
The summer outlook
“One thing we have learned from this pandemic is that the Chinese travel market is resilient and that the domestic travel market will be the first to bounce back when it can,” said Dai.
Looking at 2H2020 to predict the future potential for domestic travel in China in terms of issued air tickets, the most resilient destination provinces (or destinations with the fastest recovery rates) were Tibet, Hainan and Chongqing.
“Nostalgic travel is having a comeback. Strolling in ancient laneways, eating traditional cuisine typical to a region is really in among the younger generation at the moment,” added Dai. Another trend to keep in mind is Red Tourism, particularly for the older generation as the Chinese Communist Party celebrates its 100th birthday this year.
Chinese New Year travel has not stopped this year; it has had to take a different turn. It is clear that pent-up demand exists, and many await the moment when the dormant Dragon awakens to shake up the travel industry again.
“The Chinese government has more experience in dealing with the outbreak situation now and people have started to administer the vaccine… I believe when the winter’s gone, the outlook for Chinese domestic travel in summer is still looking optimistic,” Dai concluded.
InterContinental turns IHG in brand refresh
InterContinental Hotels Group has entered the new year with a refreshed identity – IHG Hotels & Resorts – to better reflect its family of 16 brands as well as new brand visual to resonate with a younger demographic of consumers and business partners.
Identifying itself as a “Family of Hotels and Resorts” in a press statement, the company has categorised its variety of brands into four collections.
The Luxury and Lifestyle Collection comprises properties that are defined by timeless legacy bound together by distinctive design and unforgettable service. Brands within this collection are Six Senses Hotels Resorts Spas, Regent Hotels & Resorts, InterContinental Hotels & Resorts, Kimpton Hotels & Restaurants, and Hotel Indigo.
The Premium Collection gathers properties that focus on purposeful travel and convey a sense of belonging and well-being. Brands within this collection are HUALUXE Hotels & Resorts, Crowne Plaza Hotels & Resorts, EVEN Hotels, and voco Hotels.
The Essentials Collection takes in Holiday Inn Hotels & Resorts, Holiday Inn Express, and avid hotels.
And finally, The Suites Collection, which targets long-stay guests, comprises Atwell Suites, Staybridge Suites, Holiday Inn Club Vacations, and Candlewood Suites.
The brand refresh also conveys the hotel group’s purpose of True Hospitality for Good, its evolving story, portfolio and the needs of hotel owners, consumers, and communities around the world.
At the same time, IHG has updated its loyalty programme, now named IHG Rewards. The word ‘Club’ has been dropped from the programme name to reflect a warm welcome to all. Members are able to enjoy exclusive rates, special benefits and point redemption at all IHG hotels and partner locations, including the Mr & Mrs Smith collection. IHG Rewards benefits will be enhanced going forward.
Commenting on the rebranding campaign, Claire Bennett, chief customer officer, IHG Hotels & Resorts, said: “The travel industry has faced challenges like never before, and while adapting to new realities we’ve also stayed true to our roots. We have an incredible family of brands, centred around connecting people – strengthening family bonds, forging business partnerships, uniting far-flung friends and engaging with our communities.
“Our evolved brand articulates how we bring our purpose of True Hospitality for Good to life for our guests, hotel owners, colleagues and communities. So, as we continue to lead through and beyond the pandemic, we’re clear who we are, what we stand for and how we can help guests open up their world again when they’re ready to travel. And we all feel we need that more than ever, because travel not only opens doors, it opens minds and hearts. That’s why our hotels are more than just a backdrop to life’s special moments, they are a collection of welcoming experiences.”
Thailand gets SEXY to restore travellers’ confidence
The Tourism Authority of Thailand (TAT) is planning a four-layer tourism concept under a cheeky abbreviation, SEXY, which promotes safe and sustainable travel in the Covid-19 era.
The concept, built on S – Safety and Hygiene, E – Environmental Sustainability, X – Extra Experiences and Y – Yield, is expected to “help restore travellers’ confidence, while driving recovery for both the Thai economy and the tourism industry to make a comeback stronger than ever”, said TAT governor Yuthasak Supasorn.
SEXY is expected to run in 2021 and 2022.
TAT will demonstrate Safety and Hygiene through the country’s Amazing Thailand Safety and Health Administration (SHA), a public-private sector co-operation to promote health and well-being for residents and visitors. Since Amazing Thailand SHA’s launch in May 2020, more than 8,000 businesses and entrepreneurs in 10 key sectors across the country have been certified under the programme. New certified players are joining the programme every month, according to TAT.
Environmental Sustainability will be fulfilled by TAT’s past and present efforts on sustainable tourism development, such as wildlife conservation, the Upcycling the Oceans Thailand clean-up effort, and Thailand Reduce Waste campaign.
Extra Experiences will play up TAT’s ongoing push for brand new tourism products as well as additional public health safety measures that have served to contain the spread of Covid-19 in the country.
The last of SEXY concept focuses on Yield, which will be fulfilled by the NTO’s strategy to move the Thai tourism industry out of mass tourism and towards responsible tourism with an emphasis on revenue-generating quality tourists.
Yuthasak said: “In implementing this tourism concept, TAT will be closely aligning its strategies with the policies and plans of the related public and private sector organisations. Together, TAT and Thai tourism stakeholders will reshape the image of Thailand with core messages highlighting the importance of safe and sustainable travel.”
Wellness tune-up
Amanbagh, India
A hidden sanctuary in the Aravalli Hills of rural Rajasthan, Amanbagh’s scalloped sandstone arches are an echo from the resplendence of the Mughal Empire. Here, operator Aman will launch its new Ayurveda Traditional Medicine Immune Support Retreat, available on select dates. Guests can receive an initial wellness consultation from the resort’s resident Ayurveda physician, followed by a tailored wellness programme for a stay of at least four nights.
Each day, guests will enjoy an immunity-supporting shot, a selection of restorative herbal teas, a daily private movement session, a bespoke Ayurveda spa treatment, guided walks at sunrise and morning group yoga sessions.
Healthy daily breakfast will be served, with recipes using the freshest produce from Amanbagh’s organic garden.
Almost 80 per cent of the produce used in the resort’s cuisine is grown here, and some are also incorporated into the spa treatments.
Chai Talay, Thailand
Luxury private villa estate Chai Talay on Thailand’s Koh Samui has reopened following an extensive refurbishment, and one of its highlights is its sprawling wellness facility.
The estate boasts a 372m2 indoor and outdoor gym that is set amid manicured yoga lawns and organic gardens, where wellness professionals conduct fitness groups, team training, yoga, Pilates and other activities that mend the body, mind and soul.
Chai Talay also harnesses its decade-long experience of hosting multiple annual fitness retreats to deliver popular wellness programmes for up to 40 people.
Its close partnership with nearby Anahata Wellness and Orion Retreat Centre allows guests to join yoga or mediation classes, juicing or healing retreats as well as consult specialist practitioners such as acupuncturists. For guests preferring complete attention and privacy, fitness trainers from Anahata Wellness and Orion Retreat Centre will take their lessons right into a Chai Talay villa.
Wellness tune-ups at Chai Talay extend beyond the gym. Resident chefs will whip up healthy farm-to-table dishes, using more than 20 varieties of home-grown fruit and vegetables, as well as conduct in-villa cooking classes that are fun for all ages.
Dusit Thani Laguna Singapore
In December 2020, Thailand-based Dusit International opened its much-awaited Dusit Thani Laguna Singapore, a wellness-focused retreat within the grounds of the Laguna National Golf & Resort Club.
With 198 rooms and suites, the luxury resort touts Dusit’s signature Devarana Wellness brand, under which several transient and holistic spaces on the premises host educational classes and workshops – such as stress management and nutrition – as well as activities like meditation, yoga, personal training and massages.
The Dusit Wellness programme also provides plant-based “power foods” – from vegetables harvested at the Laguna Organic Farm to low-carb options – and a Sleep Well menu that allows guests to personalise their sleep experience.
The property boasts three swimming pools, and three outdoor tennis courts will be opened in 1Q2021.
Kai Suites, Singapore
Specially caring for moms-to-be and their newborn, luxury confinement hotel Kai Suites in Newton offers a menu of packages that include a seven-day stay or more, a three-month pre-natal programme and another three-month post-natal course.
New moms may attend workshops on infant care, breastfeeding, pregnancy and post-partum exercises as well as indulge in traditional Javanese wraps that tone the abdominal area after birth.
A butler is on hand to take care of guests with salon sessions, facials and meditation, while experienced staff previously from hospital maternity wards attend to the infant.
One Farrer Hotel and Spa, Singapore
As part of its S$2 million (US$1.5 million) refurbishment, One Farrer Hotel and Spa has launched the new Mint Hotel, offering 176 rooms designed with cutting-edge materials and intelligent design principles, as advised by medical professionals from Farrer Park Hospital. These include antiviral wall-coverings, moveable furniture and the use of antimicrobial blind fabrics and custom gapless vinyl flooring in place of carpets.
It will also debut the Pillow Lab in early 2021, enabling guests to personalise their sleep experience through a pillow menu for varying firmness and sleeping postures. The Lab will use an Ultraviolet-C Chamber to remove all pathogens, natural microbiota, molds, and yeasts, and the pillows will be available for purchase as well.
RAKxa Fully Integrative Wellness and Medical Retreat, Thailand
Newly opened in December 2020, RAKxa Fully Integrative Wellness and Medical Retreat is a 32ha escape created by operator Minor Hotels, M.K. Real Estate Development and VitalLife Scientific Wellness Centre. It is located on the Chao Praya River in Bang Krachao, and boasts a cluster of clinics and facilities.
VitalLife’s Scientific Wellness Clinic houses internationally trained doctors creating hyper-personalised health programmes. The Holistic Wellness Centre offers comprehensive treatments such as Chinese medicine, Thai medicine, Ayurveda and energy healing.
At the Medical Gym, guests can participate in individualised training programmes with physiotherapists and exercise physiologists.
For utmost relaxation, the RAKxa Jai is a therapeutic spa overlooking a lagoon and offers massages, healing treatments and therapies.
The retreat dishes up healthy cuisine centred on seasonality and sustainable eating, and which adopts anti-inflammatory philosophy.
SAii Phi Phi Island Village, Thailand
Launching on February 1, 2021, SAii Phi Phi Island Village, a lifestyle property by Thailand’s S Hotels & Resorts, presents a fresh escape for eco-conscious travellers and wellness seekers.
Lèn Be Well at the resort takes a personalised approach to well-being through five core pillars: Romance, Relax, Culture, Adventure and Family. Blending bespoke leisure activities, body treatments, gastronomic offerings and more, this customised concept is already delighting guests at sister property Santiburi Koh Samui. Guests can expect an enhanced selection of spa journeys, immersive excursions and culinary specials such as floating breakfast in the pool villas.
It’s not often you see an industry that’s been around for decades and carved a place for itself, come of age. In the last three years or so, tours and activities is one such industry that has moved up the ladder and is now recognised as a major player in the travel business. A player worth an estimated US$180 billion annually, and as such, travel retailers and investors have shown a great deal of interest in this sector.
Then along came Covid.
Following a horrendous year, the travel industry is now feeling the very early signs of recovery, but as tourism starts to grow it will need to adjust to a world where everything we do, including all activities, will change. As travellers start to explore the world again, the desire to book tours, theme parks and trips will feature in their plans, however the likelihood is that they won’t be experienced in quite the same way as before. Heading into the new year and beyond, tour providers will need to make changes to future-proof their business and in order to do so they will need to focus on three key areas – product offering, pricing and sales channels.
Product
Many regional businesses compare prices with local competition. Two operators offering similar boat trips are likely to price their product at the same or possibly slightly lower level. But tours are about experiences and there are many opportunities to make your tour stand out at little or no extra cost – add a lunch or refreshment to the trip or a bit of theatre into the commentary and you have made a difference.
As tours and activities reopen for business, many will need to be managed in a very different way from what they have known before. Crowds are expected to be much smaller – and more controlled. In a coronavirus era, tours will be Covid-friendly, with smaller or private groups enjoying experiences in the open air. Theme parks may include mandatory temperature checks; visitors and guides in masks and seats spaced to allow for social distancing. Whether families, students, more mature or retired, know your market. Create products that these groups value and make the changes necessary to ensure trust and safety.
Pricing
In recent years, tour operators have penetrated the OTA industry, but while this has been a leap forward for many, they need to be cautious. Every business should understand its costs and profit margins, debts and so on. Selling product requires an understanding of the market, and tour operators are no different. However, they may struggle to market their product(s) to what could be a very diverse and disparate market. Distribution costs, fixed and variable costs and post-pandemic smaller group sizes are just a few areas that need to be factored into the cost of a tour, especially for operators that sell through third parties and not through direct sales channels.
Sales channels
According to a report last year by Arival, the percentage of bookings made online still sits below 30 per cent but continues to grow at a rapid rate. Walk ups will no longer work, and as people plan ahead and research the safety of tours, more sales channels will go digital.
New solutions are available, enabling tour providers to manage their inventory and sell directly online or through third parties – including OTAs.
They connect activity providers with travellers who have become accustomed to planning and securing their travel needs online. Some of the more advanced systems, such as our own reservation system TripAdmit Thrive, also enable operators to administer seasonal pricing variables.
Systems like these are designed to enhance online sales and distribution capabilities and are helping tour operators reach markets on a global scale. Great news for this multi-billion dollar industry whose shift to online is reminiscent of the early days of online hotel and airline booking.
The tours industry is fragmented, with the majority of businesses run by small teams of two to 10 people. These businesses are longing for travel to return to a sense of normality, as we all are, but in many ways, they are better equipped to deal with this crisis. With little monthly costs, many can sit tight and wait for the recovery to start. As most predict that this will be driven in the order of local, regional and international travel, tours and activities are best placed for each stage of the recovery.
Those businesses that are digitally focused, are adaptable and offer outstanding and safe experiences will succeed and secure their future when this crisis comes to an end. The operators that are also strategic in their product pricing will be the ones making a very healthy profit on top.