Home' Hotel Management : HM February 2018 Contents Last year, 2017, marked the start of an exciting new era for
our company, following our acquisition by HNA Tourism Group,
which closed in December 2016.
his historic agreement was highly strategic; as part of HNA Group, a Fortune
Global 500 company with over US$90 billion in assets, Carlson Rezidor will
be able to secure our position as one of the world’s largest hotel companies and
leverage opportunities for accelerated future growth across all areas of our business.
So, what opportunities and challenges lie in store for Carlson Rezidor in Asia Pacific
in 2018? First of all, the economic outlook for our region remains positive; according to
the latest forecast from the IMF, Asia Pacific will experience estimated economic growth
of 5.5% in 2018, led by China, Japan, South Korea and the ASEAN region.
With consumer confidence in China – the world’s largest travel market – still
buoyant, the prospects for the tourism and hospitality industry remain strong.
International travel is accelerating rapidly. The seven per cent increase in cross-border
arrivals seen in 2017 (revealed in a recent report by the UNWTO) is well above the
average growth rate of previous years. China is playing a crucial role, with outbound trips
made by Chinese tourists expected to exceed 150 million for the first time in 2018.
This vast outbound market is the main driver of intra-Asian travel to short- and medium-
haul markets such as Japan, Thailand, Cambodia, Vietnam and Indonesia, all of which are
enjoying record visitor arrivals. With Carlson Rezidor’s Asia Pacific hotels now catering to the
needs of Chinese guests, and HNA offering us extensive exposure in this all-important source
market, we are perfectly placed to capitalize on this growth 2018 and beyond.
Another key market for Carlson Rezidor is India, which is also registering rapid
tourism growth. Inter-state tourism trips by Indian domestic travelers now exceed 1.6
billion per year, and we will continue to accelerate our expansion plans to capture demand
from the huge pool of Indian domestic tourists and the rising number of inbound
international travelers. Having signed 14 new hotels in India last year, Carlson Rezidor
will pursue further opportunities across India in 2018.
Of course, the blue-skied business outlook for 2018 is not entirely free of clouds.
Competition is strong and over-supply of rooms in many markets is hindering hotel
performance. The average daily rate (ADR) in Asia Pacific has increased by less than one
per cent in 2017 and occupancy remains relatively subdued in many areas, including parts
of Southeast Asia and India.
This issue of over-supply has been partially blamed on alternative accommodation
providers such as Airbnb. But while these operators are becoming increasingly integrated into
the mainstream, research suggests that they present only a minimal amount of disruption
to traditional hotels. Instead of trying to compete with these companies, it is important for
Carlson Rezidor to retain the core values of hospitality and service excellence that have helped
us establish such a strong reputation and loyal customer base over the last 75 years.
It is also vital however, that we anticipate and address new consumer trends, especially
those driven by the now well-established millennial market. Many of our customers in
Asia Pacific now demand complete technological convenience and interaction, which
we are delivering through the development of personalized solutions that manage every
step of their journey, from the initial online search to the post-stay experience. We will
continue to develop our ageless hotel concepts, such as Radisson Red, plus cutting-edge
solutions for the benefit of our guests.
Other challenges that could impact Asia Pacific destinations include ‘forces majeure’,
unforeseeable events such as volcanic eruptions in Indonesia, cross-border disputes and
potential political upheavals. What is reassuring however, is that the overriding appetite
for travel, especially within the Asia Pacific region, appears to remain stronger than ever.
Many countries are reducing administrative barriers to travel, including the expansion
of e-visa and visa-on -arrival programs, and airlines – including low-cost carriers – are
facilitating travel by launching new routes all across the region.
Asia Pacific’s airlines continue to enjoy sharp demand growth, especially on domestic
and intra-regional routes. According to data from IATA, traffic on Asia Pacific-based
airlines has seen double-digit growth in 2017, with domestic routes in India and China
proving especially popular.
As travel continues to thrive in the world’s most populous region, Carlson Rezidor is
well positioned to capture demand from all key sectors of the market with an expanding
portfolio of brands and hotels. We now have a pipeline of approximately 80 hotels across
Asia Pacific, which will boost our overall regional portfolio to almost 200 hotels.
Come March 2018, exciting changes will be unveiled, Carlson Rezidor is set to
embark on one of the most exciting years in its history, and Asia Pacific will continue to
be at the forefront of this growth.
President - Asia Pacific
Carlson Rezidor Hotel Group
SNAPSHOT: CARLSON REZIDOR
Number of hotels & rooms (Globally): 1,435 / 226,558
Number of hotels & rooms (Asia-Pacific): 198 / 31,018
Number of hotels & rooms (Australia, New Zealand
and South Pacific): 5 / 1,047
Number of employees (APAC): 124
Year first hotel opened (APAC / ANZSP): Radisson
Blu Beijing – 1995 / Radisson on Flagstaff Gardens
Melbourne & Radisson Hotel & Suites Sydney open in 1998
Year the company was founded: 1990 in Asia Pacific
Brands in the organisation: Quorvus Collection,
Radisson Blu, Radisson, Radisson RED, Park Plaza, Park
Inn by Radisson, Country Inn & Suites by Radisson
Head office locations: Minneapolis Minnesota, U.S.A
(global), Singapore (APAC)
Asia Pacific Leaders
28 HM The Business of Accommodation
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