Home' Hotel Management : HM FEB 2017 Contents This year, 2017, will be an exciting year for the hospitality industry. We typically look at
corporate demand as a strong indicator for business, given the tendency to book further
in advance. The good news is that corporate demand is strong and we are positive on the
outlook both globally but especially in the Asia Pacific region.
Asia Pacific is emerging as a dynamic, well-balanced MICE market. The demand for
MICE is growing steadily and particularly fast in China, in spite of its slower economic
growth, and is spreading to lower-tier cities beyond Beijing and Shanghai. Australia and
New Zealand continue to remain strong destinations for both domestic and inbound
Despite the growing demand, the economic slowdown will still have an impact on the
MICE industry – that is, luxury event planners will continue to be more cautious with
budgets. They ’re shifting their focus to bringing meaningful and enriching experiences
to their delegates. In response, we have moved MICE at our Park Hyatt and Grand
Hyatt hotels from ‘a function’ to ‘an experience’. We have trained our associates to ask a
completely different set of questions of our clients to ensure the luxury MICE experience
is designed with their business goals in mind.
We are positive about the outlook of the leisure travel market in the region. More
than 1.18 billion people travelled internationally in 2015 and several Asia Pacific cities
collectively claim nearly 25 per cent of those arrivals.
Along with expanding airline networks and better flight frequencies, we expect leisure
travellers to be looking at a wider range of destination options instead of their usual
choices. It’s about the authentic experiences, opposed to the traditional iconic attractions
that seem to be more popular among the leisure travellers.
Business travel in the Asia Pacific region is strong. Business travel spending in the
Asia Pacific region now comprises 40 per cent or USD$494 billion of the USD$1.2
trillion spent in the global market. By 2025, Amadeus expects corporate travel spending
in Asia Pacific will have doubled and will account for half of the world’s total spend.
Travellers today are more well informed than ever. They are more knowledgeable
because of the information available so readily in this digital world. Guests are looking
for constant stimulation from authentic experiences and interaction with the local
community at the destination they are travelling to. They want to benefit from cultural
immersion and to engage with the community in which they are in.
We want to be everywhere our customers are booking, and we know our customers
book in a number of ways, including through OTAs. OTAs play an important role in
offering choices and introducing Hyatt brands to new customers. But we are also focused
on building long-term relationships with our loyal guests, and our loyalty program helps
us do that by allowing us to get to know and care for our guests better. We believe we can
provide the best experience possible when travellers book with us directly.
Sharing economy models like those used by Airbnb and Uber bring consumers’
demand for authentic experiences to the forefront and are definitely impacting the
hospitality industry to re-evaluate their offerings.
That being said, I do not see a direct impact on our business from Airbnb – at the end
of the day, it is a different product than what we are offering.
Our focus on experiences is key to our growth, we want to connect authentically with our
guests and provide them with experiences that create memories – inside and beyond our walls.
Emerging markets like China and Southeast Asia have been one of the key drivers for
Hyatt ’s Asia growth strategy and we are optimistic about the outlook for these markets.
Despite China’s slowing economy, China’s inbound tourism maintained a steady
growth in the first half of 2016. Over 67 million overseas visitor arrivals were recorded,
which showed a 3.8 per cent rise compared to the same period of the previous year.
Domestic travel is also strong. In 2015, Chinese tourists took four billion domestic
trips, twice as many as in 2010 and significantly more than the 122 million journeys
abroad, according to government statistics. This supports our strategy of introducing
discerning quality and service in second-tier cities with
operations like Hyatt Place Shenzhen Dongmen, Park
Hyatt Hangzhou and Grand Hyatt Sanya Haitang Bay
Resort and Spa.
Airline capacity in Asia experienced strong growth at a
rate of 7.6% in the first five months of 2016 . Along with
the introduction of more budget airline options, travelling is
now more accessible than ever. Governments from around
the world are investing in new infrastructure and facilities to
prepare for the growth in Asia’s air travel market.
This growth will definitely bring opportunities for
the hotel industry and benefit us, as we are continuously
looking for opportunities to introduce hotels to places
where our guests are travelling as well as making sure we
are introducing the right brand to the right market.
We take a strategic and thoughtful approach to growth
that is focused on the key markets that are most relevant
to our target guests.
We are actively looking at the development
opportunities in key markets such as Australia and
We will be introducing our upscale Hyatt Centric
brand to Hobart, Tasmania. Hobart has been one of
the strongest performing hotel markets in Australia in
recent years – fuelled by a strong economy, strong tourism
arrivals from China, US and the UK as well as domestic
visitors from elsewhere in Australia.
Park Hyatt Auckland and Hyatt Place Melbourne,
Essendon Fields are scheduled to open within two years
and we’re looking at growing other key brands, especially
our select service brand Hyatt Place, in Australia thanks
to our guests and customers actively looking for these
SNAPSHOT: HYATT HOTELS
Number of hotels & rooms (Globally):
679 hotels, 172,575 rooms
Number of hotels (Asia-Pacific): 109
Number of hotels & rooms (Australia) :
6 hotels / 2452 rooms
Number of employees: 100,000 (Globally), 30,874
(APAC), 2085 (Australia)
Year first hotel opened (Globally): 1969 (Hyatt
Regency Hong Kong)
Year the company was founded: 1957
Brands in the organisation: 11 brands (Park Hyatt,
Grand Hyatt, Hyatt Regency, Hyatt, Andaz, Hyatt
Centric, The Unbound Collection, Hyatt Place, Hyatt
House, Hyatt Zilara/Ziva, Hyatt Residence Club)
Head office location (globally): Chicago, USA
Area Vice President - Pacific Region
Hyatt Hotels and Resorts
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