Home' Hotel Management : HM February 2018 Contents Looking at 2017 in the rear-view mirror, the breadth
of change has been amazing.
hange has affected the hotel industry in areas of technology, artificial
intelligence, the sharing economy and customer evolution, changing the look
and feel of 2018.
2017 global trends impacted hotel revenues as well as driving business
change through new opportunities. There’s no denying geopolitical and economic
uncertainty has impacted travel demand and hotel pricing within the US, and I’ve seen
some statistics that tout reductions in hotel pricing by up to 39% in certain International
tourist hotspots which is a huge impact.
Fortunately travel demand and airline growth has remained positive within APAC,
which has helped carve the way for our own business developments this year including
the purchase and transformation of two new properties.
Reports suggest international visitor demand into the Asia Pacific region is forecast
to grow at an average rate of 4.6% each year to reach in excess of 657 million by 2020
which is exciting to consider in line with our growth plans. We’ve also seen a growth
in production from emerging markets with China in particular showing a significant
increase of over 20%.
There’s obviously a few key changes that have had a significant impact.
Technology powerfully influences the hotel industry, and the rise of mobile is
significant with consumers now expecting to make immediate decisions using mobile
devices. We’ve noticed a 5% increase in mobile bookings over the year.
Advances in artificial intelligence have led to consumer interest in a variety of AI
solutions. I believe natural user interfaces like voice and gesture represent the next
evolution of this technology given they put the user experience first. With this in mind
we’ve just invested in Amazon Alexa voice activated speakers and have rolled these out
within our Ovolo Woolloomooloo and Ovolo 1888 properties with plans to further
expand across the group.
The sharing economy, like Airbnb, is having an impact, but notably that the impact
is non-uniform, with lower-priced hotels and hotels not catering to business travelers
being the most affected. As a boutique hotel brand, we’re in a fortunate position as our
price positioning and assured high service and luxury product standards offer a different
proposition to that of Airbnb.
With economic fundamentals for consumer spending looking solid moving into 2018,
I’m optimistic for high consumer travel demand leading to new growth opportunities
Ovolo Hotels will be starting 2018 with a disruptive outlook and vision to change the
perception and definition of hotel service and experience. The modern customer wants to
be a creator and collaborator as opposed to just a consumer. We are tapping into this and
calling it the Customer Evolution.
The ability to ‘remote in’ is transforming business, lifestyle and community by
enabling the rising tide of digital nomads. They ’re working professionals characterized
by not having a fixed home location, instead moving from job to job, place to place over
time. Nomads are attracted to the co-living ethos, unite around their common interest to
collaboratively manage a space and share resources.
On December 22, 2017, we officially launched our new brand Mojo Nomad, with the
opening of our first Mojo Nomad property in Hong Kong’s Aberdeen Harbour. Mojo
Nomad is a new co-habitation concept for global nomads
that combines travel, lifestyle and community at its core.
Mojo Nomad fulfils the modern nomad, who seeks
new ways of living as a community, appreciating the
experience of exploring the local lifestyle and values
openness and collaboration. It departs from the
traditional rigid hotel model that requires a direct quid-
pro-quo benefit against every square metre in favour of
Return on Experience.
Instead, we’re focusing on offering collaborative
and fun environments that will expose our residents to
new experiences that inspire them to be active creators
and contribute creatively and intellectually to the world
We’re excited to be one of the first brands to shake
up the Hong Kong hospitality industry and are looking
forward to bringing our new concept to other markets
across APAC into 2018 and beyond.
The Mojo project and design teams visited 36 existing
establishments around the world during the brand
conceptualization process. Learning from the best design-
led hostels and boutique hotels in Europe, evaluating
pricing models, value added services, ancillary income
generators, guest facilities and characteristics of these
popular properties, we created Mojo Nomad. The result is
a constantly evolving co-living Mojo Nomad brand that is
driven by the sharing economy.
In addition to the new Mojo Nomad developments,
the Ovolo Hotels brand will also further strengthen into
2018 as we look to expand with some additional product
announcements to be expected early in the year. We are very
positive about Ovolo Hotels brand growth in all markets
and I can’t wait to announce more developments soon!
SNAPSHOT: OVOLO GROUP
Number of hotels & rooms (Globally): 9
Number of hotels & rooms (Asia-Pacific): 9
Number of hotels & rooms (Australia, New
Zealand and South Pacific): 5
Number of employees (Globally / APAC /
ANZSP): 175 employees – HK + 230 employees – AU.
Total 405 with an increase expected in 2018.
Year first hotel opened (Globally / APAC /
Year the company was founded: 2002
Brands in the organisation: Ovolo Hotels, Mojo Nomad
Head office locations (Global): Hong Kong
Founder and CEO
34 HM The Business of Accommodation
Asia Pacific Leaders
Links Archive HM December 2017 HM April 2018 Navigation Previous Page Next Page