Raffles Holdings net profit tumbles 94%

Channel NewsAsia  -  Hotel group Raffles Holdings said its first nine months' net profit tumbled 94 percent to about S$ 19 million.

But the plunge is mainly because the previous nine months' net profit was boosted by a S$ 356 million exceptional gain from divesting the office and retail space of Raffles City.

Turnover, on the other hand, was up 6 percent to S$ 281 million.

Raffles said operating conditions in its Singapore hotels continued to be difficult as visitor arrivals from the major Japanese and US markets slowed down.

For the full year, Raffles expects to remain profitable, even though operating conditions are still likely to be challenging.

Host Marriott Loss Widens on Slowdown

Bethesda, Maryland-based Host Marriott, a hotel real estate investment trust, or REIT, reported a third-quarter loss of $47 million, or 18 cents per share, compared with a loss $16 million, or a loss of 6 cents per share, the year before.

Revenue totaled $789 million, down from $848 million a year before.

Third-quarter funds from operations, a common measure of REIT operating performance, totaled $41 million, or 15 cents per share, down from $75 million, or 28 cents per share, a year earlier. Analysts polled by Thomson First Call had estimated funds from operations of 9 cents to 12 cents per share.

World Tourism Organization condemns Bali attacks

The World Tourism Organization yesterday condemned, in the most vigorous terms possible, the recent attacks in Indonesia's island of Bali, a favourite tourist destination for numerous international visitors.

WTO Secretary-General Francesco Frangialli, who is at an official visit to Mexico City, has expressed his condolences and sympathy in a letter to the Minister of Tourism of Indonesia, Gede Ardika, and has assured him that the World Tourism Organization is at his disposal to help in dealing with this situation.

"On behalf of the World Tourism Organization, its Member States and the entire international tourism community, we wholeheartedly condemn the violent incident which took so many lives. It was an act of cowardice, committed against innocent tourists who were engaged in recreational activities. Terrorism has once again hit at the very root of tourism, a peaceful industry which is beyond political and religious considerations and whose very objective is to promote international peace and understanding," WTO Secretary-General wrote in his letter.

Indonesia is one of the great countries of tourism, receiving a total of 5.2 million international tourists in 2001, and Bali is undoubtedly one of the archipelago's most attractive destinations.

"In the light of past experience with similar acts, such as those that took place in Luxor, Egypt and in Djerba, Tunisia, we know that Bali and Indonesia will inevitably suffer the consequences of this act over the next several months. However, the flow of long-haul tourists to other countries of Asia and the Pacific could also be affected," Mr. Frangialli stated in his message.

During the next meeting of the Tourism Recovery Committee to be held in London on 12 November, with the attendance of Leticia Navarro Ochoa, the Tourism Secretary of Mexico, among other participants, the World Tourism Organization shall mobilize all of its resources to minimize the impact of this heinous act on tourism in Indonesia, Asia and the world.

The participation of Mexico in this collective action is especially important, as yesterday it was appointed Chairman of the WTO Market Intelligence and Promotion Committee.

PKF alliance with Cornell will produce studies to help improve bottom line for hotels

What makes some hotel companies more profitable than others? Do strategies for investing in employees actually improve a company’s bottom line and, if so, which strategies do this best?

Soon hoteliers will get answers to key questions like those and others affecting their profitability thanks to a new strategic alliance between the top hotel school in the United States and PKF Consulting, a firm that manages the most comprehensive proprietary database on the financial performance of U.S. hotels.

The new alliance between the Center for Hospitality Research (CHR) at Cornell University’s School of Hotel Administration and PKF is the only one ever made between the consulting firm and a research university.

Hotel School Professor Cathy Enz, director of the CHR, said: “PKF’s database reaches back many years and offers detailed information that is unparalleled, particularly that on same-store sales. With access to that database, our researchers will be able to explore key hospitality topics, such as the new study we are undertaking on firm performance and labor-related investments.”

Twelve Hotel School faculties are currently research fellows with the CHR, which sponsors research aimed at improving the hospitality industry’s fundamental operating knowledge. Their recent studies range from measuring how safe and secure U.S. hotels are to proving that when gas prices rise, hotel room occupancy drops, to determining how food-service operations can improve their relationship with suppliers.

The CHR also has strategic alliances with firms that collect data on lodging (Smith Travel Research) and dining (Gazelle Systems). All studies are posted on the CHR web site: http://www.hotelschool.cornell.edu/CHR

For information, call 1 (607) 255-9780. 

PATA cancels Sustainable Tourism Conference which was scheduled to take place in Indonesia

The Pacific Asia Travel Association (PATA) today cancelled the 1st PATA Sustainable Tourism Conference which was scheduled to take place at the Imperial Century Hotel in Banten, Western Java, Indonesia, October 23-26.

PATA Events staff this morning e-mailed, faxed and phoned confirmed delegates, speakers and media to inform them of the unfortunate decision. 

PATA President and CEO Mr. Peter de Jong, said: "While PATA’s first inclination after the Bali attacks was to fully commit to operating the event as planned, the upgraded travel advisories imposed on Indonesia by Australia, Germany, UK, and the US governments have caused a significant number of our speakers and delegates to cancel their participation. This affected our ability to deliver a quality forum for discussion, learning and networking."

Ninety international delegates plus 77 from Indonesia had registered for the conference. PATA Managing Director-Events, Ms. Sheila Leong, said: "The cancellation is a bitter disappointment, after we worked so hard to set up the event with a cast of distinguished international speakers."

Mr. de Jong said PATA remained fully dedicated to helping Indonesia rebuild its tourism sector. 

PATA Vice President-Development, Mr. Peter Semone, is in Bali helping Indonesia tourism officials implement crisis management policies. PATA in consultation with the Ministry for Culture and Tourism in Indonesia and will create a Recovery Task Force to help the country’s medium- and long-term tourism revival.

Mr. de Jong said: "The unfortunate cancelling of the 1st PATA Sustainable Tourism Conference in no way affects our proactive plans to hold the 52nd PATA Annual Conference in Bali in April next year." PATA Annual Conference will take place April 13-17, 2003 in Bali.

Expedia books itself a hotel deal

Hotels could soon find it easier to sell rooms online, thanks to an acquisition announced on Tuesday by online travel company Expedia.

CNET News.com   -  Expedia is purchasing Newtrade Technologies, a Montreal-based software development company. Newtrade is developing an XML-based system that will allow hotels to send information about their room availability and pricing to various distribution networks via the Internet. Expedia and Newtrade plan to introduce the new technology early next year, the companies said.

"We felt there was a need for a solution to improve connectivity between hotels and their distribution partners, including Expedia. We felt Newtrade was the leader in developing this technology," said Marj Charlier, director of investor relations for Bellevue, Wash.-based Expedia.

Travel has been one of the biggest and fastest growing areas of e-commerce. On the Internet, hotel bookings have long trailed behind airline ticket sales, but that may be changing. A recent research report from Bear Stearns, for instance, projected that use of Web sites to book hotel rooms is poised to surge in the next few years.

Part of the problem hotels have faced is that unlike airfares, which are largely distributed online, lodging information has generally been distributed via fax to companies such as Expedia or to global distribution systems, said Jared Blank, an online travel analyst for Jupiter Research. It's been done that way for a long time, and the distribution companies have had little incentive to change, he said.

Newtrade's system may not be an immediate incentive for distributors to change their ways, but it could help Expedia itself get access to a wider selection of rooms and rates, Blank said.

"This will improve the relations they have with their hotel partners," he said.

But Newtrade's technology will work with other companies besides just Expedia, Charlier said. Because it is based on XML (Extensible Markup Language), Newtrade's software will be able to connect the various systems used by hotels to manage their room inventory with the systems used by the various distribution networks, she said.

Despite its acquisition of Newtrade, Expedia does not plan to use Newtrade's technology exclusively, Charlier said. Although Expedia has not figured out the business model, it doesn't plan to generate significant revenue from the move, she said.

"We acquired this as a tool to improve hotel distribution. We did not acquire it as a revenue-generating business," Charlier said. "The whole concept is that this will make our connection with hotels more efficient and less labor-intensive, both on our side and on the hotels' side."

Charlier declined to say how much Expedia agreed to pay for Newtrade, calling the all-cash deal "immaterial." Expedia expects the acquisition to close within the next month, she said.

Newtrade has about 65 employees, Charlier said. Expedia does not plan to have any layoffs at Newtrade as a result of the acquisition, she said.

Newtrade representatives were not immediately available for comment.

TIA Forecast Shows Slow Road to Recovery for Travel and Tourism Industry

Dr. Suzanne Cook, senior vice president of research for the Travel Industry Association of America (TIA), gave her much anticipated industry overview and forecast at TIA's Marketing Outlook Forum in Hollywood, Florida. After falling nearly 6 percent last year, domestic and international travel spending continues to be soft and isn't expected to recover to record 2000 levels until sometime in 2004.

Domestic and international travel expenditures dropped $33.3 billion in 2001 to $537.2 billion (-5.8%). Expenditures are forecasted to decline another $1.9 billion in 2002 to $535.3 billion. The industry will see a 5 percent gain in domestic and international travel spending in 2003, to $560.1 billion. Another 5 percent gain is projected for 2004, to $588.2 billion, finally exceeding 2000's record level of spending ($570.5 billion).

Already depressed, business travel continues its downward spiral. After experiencing a 3 percent decline in 2001, business travel is forecasted to fall another 4.3 percent this year. It's expected to stabilize in 2003 with a gain of less than 1 percent, followed by a 1.5 percent gain in 2004. However, even by 2004, business person- trips are likely to remain about 6 million below the levels of 2000.

There were a few bright spots in the industry's struggle to recover, including cruising, RV travel and a slowly increasing domestic travel volume. 

UK business travellers less optimistic for 2003 than Americans

e-Tid.com  -  A study from American Express shows that only 9% of international business travellers expect to travel less in 2003, with the UK respondents slightly less confident with 15% expecting fewer trips.
Amex has issued its International Business Traveller Survey for the first time. Its methodology sees 100 business travellers from 14 key countries questioned on a number of topics. Amex provides global, regional and country-specific data.

North Americans are the most optimistic about business travel in 2003, with only 6% expecting a drop. The UK’s 15% showing exceeds the European average, where 11% of respondents foresee less overnight trips abroad.
And while North Americans are more confident about the amount of business travel they are also more confident about the travel itself. Overall, 88% of respondents feel safe flying, with North America registering a 97% confidence level compared with 94% from the UK. Asian and Australian business people dropped the average, with only 79% feeling secure.

More than seven in ten travellers check their emails on a daily basis, with the Latin Americans the most reliable. Some 22% of European business travellers don’t bother at all.

A question about IT provision during the flight invited respondents to select one cant-manage-without in-flight amenity: 38% would keep hold of the in-flight entertainment system compared with 31% who would keep their lap-top.

Japan’s optimistic new of Japanese economy & Travel sector prompts major expansion plans

Accor is to add its second deluxe Sofitel hotel in Japan following agreement for the rebranding of a prominent hotel in the heart of Nagoya, Japan's fourth-largest city and a highly significant commercial and industrial centre.

Hotel The Cypress in Nagoya will join Accor's prestige brand from 4 December 2002.and will be rebranded Sofitel The Cypress Nagoya.

The hotel enjoys a highly convenient location in the centre of the city, just a few minutes walk from Nagoya Railway Station (where the bullet train stops) and close to Nagoya Congress Centre, Citizen's Auditorium and Nagoya Dome.

Originally launched as the Century Hyatt Nagoya, the hotel is owned by Nakamo Sun Route K.K. and offers 115 contemporary-styled rooms and suites with full facilities for business and leisure travellers.  There are two restaurants and bars, catering for western and Japanese cuisines, and a variety of meeting and function facilities for up to 100 delegates.

Accor Asia Pacific Chairman, David Baffsky, said that the hotel would be a significant addition to Accor's Japan and global hotel networks.

"With a population of over two million, Nagoya is one of Japan's most important commercial and industrial cities and caters for a large number of domestic and international business travellers," said Mr Baffsky. "We believe that with the addition of international branding, there will be considerable benefits for the hotel, especially in these difficult economic conditions "

Mr Baffsky said it was particularly pleasing that from just one hotel in Japan at the beginning of 2001, Accor had increased its portfolio to five in less than two years. In September, Accor launched the Novotel brand in Koshien (Osaka West) and two Formule 1 hotels have been launched on major arterial routes outside Tokyo. Mr Baffsky said the group was looking at a number of other potential hotel developments and partnerships in Japan and expected substantial growth for all of Accor's well known international brands

Managing Director, Michael Issenberg, said that the hotel will benefit from having a 'sister' hotel in Tokyo, as well as Sofitels in key cities in China, Thailand, Korea, Australia and elsewhere in the Asia Pacific region.

"There is also excellent potential for building inbound leisure business from countries in north Asia and from Australia, North America and Europe, where Sofitel is one of the leading deluxe hotel brands," said Mr Issenberg. "We will also be able to market the hotel more extensively
 through the Accor global distribution network.

"There are some early optimistic signs for Japanese tourism and travel, in particular the start of direct flights between Australia and Nagoya by Australian Airlines, and we will be working closely with the hotel to maximise the potential of these opportunities."

Sofitel is Accor's prestige hotel brand, with 160 hotels and resorts around the world.

With 147,000 employees in 140 countries, Accor is one of the world's largest groups in travel, tourism and corporate services, with two major international activities:

*  hotels: more than 3,700 hotels (425,000 rooms) in 90 countries, casinos, travel agencies, and restaurants;

*  services to corporate clients and public institutions: each day, 13 million people in 32 countries use a broad range of services (food \ vouchers, people care and services, incentive, loyalty programs, events) engineered and managed by Accor.