Home' Hotel Management : HM February 2018 Contents Several predictions suggest there is room for optimism in 2018.
he IMF has raised its most recent forecast for global GDP growth to 3.1%
as more than half of economies started recovering. Asia Pacific, which
outperformed the rest of the world in 2017, is expected to grow 6.2% this
year, moderated by China’s transition to slower but more sustainable growth.
Intra-regional travel will continue to rise in the region, which also sees outbound travel
growing at an average rate of 6% to 8% annually .
Compared to last year, people are prepared to travel more for business and leisure
this year. In the first quarter of 2018, international bookings by American Express are
up 44%. Corroborating this interest in international destinations is another survey where
one in four respondents cite learning about history, art and culture across the globe
as their most important travel goal for 2018. Experiential travel is the buzzword for
2018 as people seek to be inspired and transformed by travel. This is particularly true
of Millennials and Post-Millennials and the centre of this growth will be Asia, where
approximately 60% of the world’s Millennials reside.
In terms of travel, the Chinese made 4.44 billion domestic trips in 2016, an increase
of 11% from the year before. Revenues from tourism grew 14% according to the China
National Tourism Administration. At the same time, outbound travel went up by 4.3%
to reach 122 million trips. This is projected to increase to 234 million by 2020 , and
China will surpass the United States as the country with the highest propensity to travel
overseas by 2022.
As a region, Southeast Asia markets are forecast to grow at 5% in 2018 while the
strong demand for travel to this region will generate a 6.3% growth per annum in the
next ten years. Five major destinations – Singapore, Thailand, Vietnam, Indonesia,
and Malaysia – together account for over 80% of ASEAN’s international arrivals and
tourism contribution to GDP, and our footprint has also expanded in tandem with the
development of the tourism sector in these markets. With China’s One Belt One Road
initiative, Singapore and other countries along the Belt will enjoy greater connectivity,
giving the tourism sector a further boost.
Excluding our Singapore headquarters, China is one of our largest operating regions
with one-fifth of our portfolio. We opened Pan Pacific Beijing in the capital city last year
and will continue to seek opportunities to expand our presence in other first-tier cities this
year. Our priority is to reach out to and to engage Chinese consumers on platforms where
they are most active such as WeChat and Fliggy (formerly Alitrip), where we made hotel
vouchers available for purchase on Singles’ Day, and looking at ways to make our Chinese
guests feel comfortable when they stay with us (e.g. providing services such as in-house
TV channels in Chinese, offering Chinese items on our daily breakfast menu).
Vietnam is an important piece in our wider strategy for Indochina and now that
we already have a presence in its two largest cities (Pan Pacific Hanoi in Hanoi, and
Parkroyal Saigon in Ho Chi Minh City) we plan to venture into key resort destinations
such as Danang and Nha Trang. We have plans to
introduce two more Parkroyal resorts in Malaysia,
bringing the total number of resorts we operate in this
market to three including Parkroyal Penang Resort. In
the later part of the year, we will debut our Pan Pacific
brand in Malaysia with the opening of Pan Pacific
Serviced Suites Puteri Harbour in Iskandar, Johor, just
a ten-minute drive from Singapore via the Tuas Second
Link. In 2020, we will launch Pan Pacific Serviced Suites
Jakarta in the Thamrin area right in the city centre.
We debuted our Pan Pacific brand in the global cities of
Beijing and Melbourne, and launched Pan Pacific Yangon
in the historical and cultural heart of Myanmar. We’re
refurbishing our Parkroyal hotels in Penang and Beach
Road, Singapore, elevating their market positioning to serve
guests who are accustomed to quality full service stays.
To capture customers who are increasingly researching
and making purchases on their mobile devices, we
enhanced the mobile sites for Pan Pacific and Parkroyal
with the latest technology to shorten the booking process.
We intensified engagement with Chinese consumers
through platforms such as Fliggy (formerly Alitrip)
such as making hotel vouchers available for purchase on
Singles’ Day, the biggest online shopping event in the
world. To strengthen our global sales network, we opened
our first Global Sales Office in Hong Kong to cover the
Hong Kong, Shenzhen, Guangzhou and Taiwan markets.
The hotel industry will have to leverage the right
technology resources to meet the needs of a younger set
of consumers through mobile technology and online
channels. These consumers want greater personalisation
in terms of recognition, and increasingly demand for
more sophisticated levels of service. Great service to them
isn’t just about stunning spaces, impressive facilities, or a
fantastic location, but customisation and flexibility.
While technology has allowed greater efficiency
(through faster check-in times) and higher levels of
customisation (selection of rooms), many opponents will
argue that service will become less personal as human
interaction is reduced. Ultimately it is up to the hotel
to make technology an enabler in order to free up time
for personal interaction with guests and create more
meaningful work for its employees. This means hotels
must attract the right employees through the ranks with
the right service mindset as part of their people strategy.
Many airlines are investing in new aircraft and better
passenger experiences, with the net result being more
options for consumers. This expansion in air travel will
open up new markets and bring in new guests and room
nights for the hotel industry; particularly so in Asia
Pacific where the International Air Transport Association
(IATA) has forecast an extra 1.8 billion annual passengers
by 2035, for an overall market size of 3.1 billion.
Regional airlines, which carry one-third of world
passenger traffic, will play an increasingly bigger role in
the development of the aviation industry in Asia Pacific
as China, India, and the Southeast Asia markets drive
the economic growth of the region. The aviation industry
in Asia is being reshaped by different business models
and airline strategies, with low cost carriers in particular
helping to increase accessibility within Southeast Asia.
This has benefitted us as many of our hotels are located
in key cities – from Kuala Lumpur to Ho Chi Minh to
Yangon, which are within a three-hour flight radius from
Singapore, the region’s hub for air travel.
Chief Executive Officer
Pan Pacific Hotels Group
Asia Pacific Leaders
Links Archive HM December 2017 HM April 2018 Navigation Previous Page Next Page