ASPAC-Market Update- Q2 2017

Mark Your Diary

Date / Type / Days / Location / Segments
11 Jul 2017 / RS / 4 / Singapore/Kuala Lumpur / Corporate/Leisure/MICE
23 Aug 2017 / RS / 2 / Hong Kong / Corporate/Leisure/MICE
28 Aug 2017 / RS / 3 / Seoul / Corporate/Leisure/MICE
11 Sep 2017 / RS/CE / 4 / Sydney/Melbourne / Corporate/Leisure/MICE
19 Sep 2017 / RS / 4 / Shanghai/Beijing / Corporate/Leisure/MICE
25 Sep 2017 / RS / 5 / Japan / Corporate/Leisure/MICE
30 Jan 2018 / RS / 2 / Hong Kong / Corporate/Leisure/MICE
05 Feb 2018 / RS/CE / 4 / Sydney/Melbourne / Corporate/Leisure/MICE
07 Feb 2018 / RS / 2 / Singapore / Corporate/Leisure/MICE
12 Feb 2018 / RS / 4 / Brisbane/Perth/Adelaide / Corporate/Leisure/MICE
06 Mar 2018 / RS / 4 / Singapore/Hong Kong /Taipei/Shanghai / FHR
12 Mar 2018 / RS / 2 / Seoul / Corporate
15 Mar 2018 / RS / 2 / Tokyo / Corporate
20 Mar 2018 / RS / 4 / Shanghai/Beijing / Corporate/Leisure/MICE
09 Apr 2018 / RS / 5 / Shanghai/Beijing / Group/MICE
21 May 2018 / TS / 4 / ILTM Asia-Singapore / Corporate
06 Jun 2018 / RS / 4 / Chengdu/Chongqing / Group/MICE
26 Jun 2018 / RS / 4 / Singapore/Kuala Lumpur / Corporate/Leisure/MICE
10 Sep 2018 / RS/CE / 4 / Sydney/Melbourne / Corporate/Leisure/MICE
18 Sep 2018 / RS / 4 / Shanghai/Beijing / Corporate/Leisure/MICE
24 Sep 2018 / RS / 5 / Japan / Corporate/Leisure/MICE

RS: Roadshow/ CE: Client Event/ TS: Trade show

LEISURE TRAVEL

Australia

  • Cruise Lines International just released 2016 figures for the Australian cruise market and there was 21% growth YOY. 82% of cruise passengers were from the states of New South Wales or Victoria with New South Wales showing huge growth (up 24%) which was a 6% market penetration meaning 1 out of every 15 persons in New South Wales took a cruise last year. Hotels should note that this market has great potential so they should also offer pier transfers as well as airport transfers in order to try to attract this segment. It would also be a good idea to load a rate that included a pier transfer on the GDS and all Preferred Hotels and Resorts channels so that the agents can see straight away. Cruising is now the fastest growing sector of the economy and contributes 5 billion $ in economic activity and supports 20,000 jobs in Australia.
  • Australians are booking already for the European summer season 2018 so hotels should ensure that rates are loaded across all channels at least until end of June 2018 as otherwise hotels show “not available” so agents book an alternative property.
  • The Manchester terrorist incident did not affect travel to the UK noticeably as the Australian leisure market is quite hardy with most already fully committed to their travel plans or already on their way. However if London hotels have any offers to encourage travelers particularly for longer stays then they should share with us
  • Spain and Italy have been hugely popular again this year particularly for pre and post cruise in Barcelona as well as Amalfi Coast in Italy.
  • Qantas announced nonstop flights from Perth to London which will commence in March 2018 so this should encourage more to use London as a gateway / hub rather than using middle eastern carriers.
  • As always we get many multi-generational/ family booking enquiries. We are compiling a “family travel brochure” and the Excel for completion is in Lanyon. If hotels have not provided details to the Sydney office already on interconnecting / roll away and extra person charges then they should do so as soon as possible so that we can include them

Contact for this market is Carolyn Holmes based in Sydney, Australia

CHINA

  • The Japanese tour operator JTB plans to introduce Alibaba's mobile payment Alipay to around 2,000 partner businesses in Japan within the next 3 years. In addition Alibaba aims to make Alipay available at 45,000 supplier locations across Japan by the year-end making it more convenient for travelers from China to make paymentswhile travelling Japan. Japanese hotels may wish to solicit more Chinese business as we expect it to increase when this becomes available.
  • Chinese leisure traveller arrivals to Thailand declined by 7.50% to 3.18 million in the first four months of 2017 according to Thai Tourism data. Despite the slowdown Chinese travelers remain the biggest source of overseas visitor and tourism revenue for Thailand with a contribution of USD 4.71 billion. Thai hotels may wish to target this market in order to increase sales.
  • Chinese outbound travel should continue to increase during the coming months because of the summer holidays. Thailand, Indonesia, The Philippines, Malaysia and Japan are the top 5 hot destination and Africa and Eastern Europeare up and coming destinations. Again hotels in these locations may wish to attend our roadshows to specifically target Chinese travellers
  • Australia and Canada are in high demand for leisure travelers partly due to the China / Australia Year of Tourism 2017 and the 150thanniversary of Canada. Both countries have had many promotions and lots of exposure through TV, Social media and street advertising so hotels may also wish to promote with us any special offers.

Contact for this market is Amy Pang based in Shanghai, China

HONG KONG

  • Hongkongese tend to travel during public holidays due to the average worker only having 10-14 days of annual leave. 2017 outbound travel has increased by just over 5% year on year so hotels should target our market with any promotions especially coming up to any holiday periods.
  • Hotels should note the next traveling seasons areschool summer holidays and the public holidaysof National Day / Mid-Autumn Festivalon October 1 & October 5.
  • Summer school holidays usually attract more families to long-haul destinations so again hotels that are interested in the leisure segment should please ensure that all packages are uploaded and bookable through PH&R channels.
  • The summer months of July and August roughly account for 30 percent of Hong Kong outbound travel to the United States.Various published statistics indicate that independent travelers account for the largest portion with themed-tours for groups and prepaid package tours and cruises also quite popular.
  • Wine country tours are becoming more popular especially among the Chinese travel market. Other specialty tours for diving, golfing, horseback riding and skiing have also been quite successful. Hotels in locations where these activities might be included should let our office know so that we can help you to promote any offers.
  • Key outbound locations from Hong Kong still remain Japan, South Korea, Thailand & Taiwan.

Contact for this market is Sylvia Mak based in Hong Kong

INDIA

  • As of 1 July a GST (good and services tax ) will apply in India.. It is the biggest new indirect tax reform since Indian independence and will bring transparency on taxes levied as hotels, airlines and tour operators will only be able to charge one tax now. It is currently too early to predict the effect on outbound travel so it’s a “watch and wait” scenario but international hotels should be aware that this may affect international travel patterns short term.
  • Mid July-August is the second largest holiday season for travelers because of the long summer vacation in schools and colleges and also because of some public holidays. Hotels should share their best available rates and packages targeting leisure FIT & families as the travelers look for best deals during this time and they should also ensure these rates are loaded on all PH&R booking channels.
  • The national airline Air India has announced direct thrice-weekly flights between New Delhi and Copenhagencommencing September 16 which will open up Denmark and other Scandinavian destinations to the Indian leisure traveller. Northern Europe awareness is growing so member hotels located in this area should target the key cities of New Delhi and Mumbai.
  • AirAsia Xthe long-haul budget arm of AirAsia commenced flying from Mumbai to Bali in May. The route will provide better connectivity between two sibling countries as well as cater to increasing demand of tourists from India to Bali.
  • Since most Indian leisure business is still booked via travel agencies wholesalers and tour operators should consider attending the India Roadshows in 2018 to meet with the travel trade to help promote your property.

Contact for this market is Gaurav Sindhwani based in New Delhi, India

JAPAN

  • The Japan National Tourism Organization (JNTO) announced that outbound traveller numbers remined almost the same for April as the year prior so 1.26 million.
  • Travel to South Korea dropped for the first time in eleven months and travel to Taiwan decreased slightly this quarter while travel to Hong Kong and Macau increased slightly. Top resort destinations were Hawaii and Guam.
  • The Japanese government assesed that “the Japanese economy is in moderate recovery” this quarter. However even though the employment situation in Japan is improving they also advised that the recovery is subject to what happens in other world economies as these external markets were subject to fluctuation and uncertainty.
  • According to the JNTO inbound travellers to Japan in April grew by 24% to 2.6 million which was the highest number in recorded history. The accumulated figure for the year reached 9.1 million and was expected to exceed 10 million by end of May. Travellers from South Korea inreased by 56% , Hong Kong travellers increased by 64% the USA by 23% and Australia by 41%.
  • A “Premium Friday” campaign was recently trialled in Tokyo suggesting that people should finish work early on the last Friday of the month to shop, dine out and take part in other evening activities. It was succesful so is now being rolled out across Japan. According to the research by Hakuhodo the number one reason to take advantage of the early closing was to travel, and many major travel agencies are promoting “ Premium Friday tours” featuring short-haul destinations.
  • Terrorism incidents and volatile political situations have still been a concern in Q2 2017 and have demotivated some Japanese leisure travelers from traveling abroad especially to Europe. If hotels have any special offers to encourage travelers then please share with us for distribution.
  • Just to remind member hotels that the main wholesaler brochures are issued twice a year. (April-Oct and then Oct – March). It is critical that member hotels have a year round contract with the local tour operators handling the Japanese market to capture business in the leisure segment. Once the year round contract is established the local tour operators will accept promotional offers as well, such as bonus nights, meal included offers during the off season.
  • Please contact if you have promotional offers so that the Japan office can promote.

Contact for this market is Hideki Seguro based in Tokyo, Japan

SOUTH KOREA

  • Summer holiday bookings for July and August are similar to those last year as many will keep some holidays to use in October as there is a 10 day break scheduled. Outbound travel to China dropped by 40% due to political and safety reasons and travel to The Philippines also declined. Travel to Japan doubled and travel to Thailand & Indonesia also increased.
  • Easter Air a low cost carrier now operate daily flights between Incheon and Danang. Mongol Air operate Busan to Ulaanbaatar twice a week and Air Seoul will commence direct flights to Hong Kong, Osaka, Narita & Guam. Hotels in these locations should take note as these destinations will now have increased awareness.
  • The number 1 South Korea travel fair – Hana Tour International Travel Show has been held total of 100,000 visitors and USD 400,000,000 revenue.
  • A new low cost carrier Aero K has applied for a license. They are based in Chengdu and will focus on short haul international routes to South East Asia.
  • Major travel agents are promotingspecial theme tours with cooking , photography and Michelin restaurants the main themes. These are to places such as Danang, Mongolia and Hong Kong and target 20 – 30 year old travelers who currently aren’t interested in package tours.

Contact for this market is Alice Choi based in Seoul, South Korea

SOUTH EAST ASIA

  • Improved provision of Muslim-friendly facilities such as prayer rooms and halal food has seen a surge in Muslim travelers to South Korea from South East Asia. Hotels targeting this segment should ensure rates are available in all channels including PH&R booking engines. They should also work with key inbound tour operators like Stunning Korea, HanaTourITC, Korea eTours for leisure groups
  • Attractive airline packages and a growing middle class with expendable income has seen long haul European travel increase from places such as Indonesia, Cambodia, The Philippines & Vietnam. Popular destinations are Italy, France, Switzerland & Germany, Scotland, Central & Eastern Europe. Hotels in these locations are encouraged to have packages loaded and bookable on both Hotel and PH&R websites.
  • Despite the terrorist attacks in the UK this year demand from Singapore to Europe is still strong and there seems to be a ‘carry on as normal’ culture in response to terrorism. According to Chan Brothers Travelone of the top 5 agencies in Singapore, “demand for Europe remains consistently strong as one of the top three choices for Singaporeans". There has been a 30% increase year on year from their travelers which is in part due to the British Pound slumping against the Singaporean dollar making everything cheaper. Hotels in London which have promotions please share your offers and we will distribute to key travel agents.
  • Conversley the terror attacks in London and Manchester have had a negative impact on Thai travelers with passengers now choosing other European destinations instead such as The Netherlands, Russia and Italy. Hotels in these 3 destinations that are targeting the Thaimarket please kindly ensure rates & packages are loaded and bookable on both Hotels’ websites as well as PH&R.
  • United Airlines announced non-stop flights between Singapore and Los Angeles effective October 29 making it the longest scheduled service operated by any US carrier at 14,000km

Contact for this market is Steven Fam based in Singapore

COrporate/Business Travel

AUSTRALIA

  • A new global partnership started with Flight Centre Global Product which encompasses their brands around the world including Stage and Screen, CT Traveller, FCm and Campus Travel. There are nearly 2000 IATAS worldwide that will now have increased GDS biasing as long as hotels participate in the FCM consortia hotel programme. If hotels have not participated in the past then they may wish to consider this year as PH chain coded hotels will now get “platinum” visibility and will have “top billing” within the GDS. In some cities hotels may also be invited to join “Smartstay” which increases their GDS positioning right to the top and also shows them on a Smartstay mobile app. Please check with Preferred Sydney office Carolyn Holmes for further information
  • RFPs for ANZ Bank , Macquarie Bank and Telstra were launched this quarter and all are asking for flat rates year on year , increased value adds as well as 2 year rates. Preferrenet.net has been updated so hotels should take a look as if they are getting any traction and haven’t been invited then they should let our Sydney office know ASAP
  • 70% of all corporate travel is domestic with the balance mainly to Asia so long haul hotels should be aware that opportunities are limited.

Contact for this market is Carolyn Holmes based in Sydney, Australia

CHINA

  • Huawei – a leading global information and communications technology solutions provider has launched their RFP for their 103 top cities. They provide solutions and services now to more than 170 countries and have 180,000 employees globally. They will choose maximum 10 hotels per city and will include up to 2 5 star hotels while the balance will be 3 – 4 star properties. Hotel locations should be within 5km of their local offices
  • Amway has just signed up with CWT to manage their RFP as they wish to consolidate and qualify all4 & 5 star hotels. Currentlythere are 188 China hotels with “local” contracts and previously contracting has been done separately by each country. To be included hotels should be within 5 to 10 mins walk from their local office. If you do have a local contract please let us know so that we can be sure to try and get you invited properly. The RFP is expected to launch in September.

Contact for this market is Amy Pang based in Shanghai, China

HONG KONG

  • The 2018-2019 RFP season is approaching so hotels that are interested in any corporate business should please ensure any relevant business cases are all updated on the Corporate Survey which is on the preferrednet.net portal. A strong local relationship with accounts is encouraged and hotels should also include this information in the business case if available.
  • AIA is going to launch their RFP late July early August.
  • LVMHwill launch theirs in July which we understand will be a 2 year programme.
  • We will have more direction and an update on the Morgan Stanley 2018 RFP after a global call 3rd week of July.
  • Goldman Sachs Taipei will be assisting Goldman Sachs Singapore on their RFP solicitation so hotels should be aware.
  • Please continue any promotions available for UBS and Morgan Stanley via the GDS as both corporates have very strict booking compliance. Hotels which are accepted for the first time are encouragedto draw brand awareness by offering tactical promotions which will be circulated monthly among the Asia Pacific region.

Contact for this market is Sylvia Mak based in Hong Kong