What business travelers want

By: Roger Collis International Herald Tribune

Business travelers are not monolithic; we often travel in different modes, depending on the purpose of the trip and where we are going, and our attitudes and behavior when we are on the road often come down to cultural stereotypes - a notion that is confirmed by an American Express poll published two weeks ago of 1,400 international business travelers from 14 countries.

The biggest travel concern is loss of personal productivity, despite such portable technology as laptops and mobile phones. Fifty-four percent of respondents said that travel delays are the worst aspect of business travel, with those from the Asia/Australia region most likely to complain (57 percent). Being away from the office was what bothers North Americans most (22 percent). Seventy-one percent access the Web and check their e-mail each day, with Latin Americans, North Americans and Australians checking the most frequently; 22 percent of Europeans say they never check e-mails. While 72 percent of North Americans say access to their voice-mail is vital, 70 percent of Latin Americans don't bother.

After travel delays, the most annoying aspect of travel is getting behind in office work (16 percent). Germans were most concerned about this (29 percent), followed by Swedes (28 percent) and Americans (26 percent). The British were least concerned, with only 15 percent worrying about delinquent paperwork. Airline seating and service is a big issue for 11 percent of all respondents, and for 20 percent of Brazilians and Japanese and 15 percent of Britons.

What makes a good hotel? Internet access and free breakfast rates are nearly equal in appeal (29 percent and 26 percent respectively), followed by business facilities (16 percent), VIP check-in and checkout (13 percent) and health club access (12 percent). Americans (40 percent), Mexicans (39 percent) and Japanese (35 percent) are most concerned about being connected to the Internet in the room. Britons are the least concerned (16 percent). A free breakfast rates high among Swedes (42 percent), Germans (34 percent) and Britons (31 percent). Asians most value business facilities - Singaporeans (24 percent), Hong Kong travelers (24 percent) and Japanese (23 percent).

Sightseeing is the most popular way to unwind (67 percent), followed by getting together with colleagues or clients (60 percent). Canadians (39 percent), Americans (38 percent), and British and Mexicans (37 percent) are more likely than others to add vacation time before or after a business trip.

Travel is a matter of shifting priorities. There are times when the most welcome sight in the world is someone waiting at the airport holding a sign with your name on it. Getting through the airport and to and from your home, office or hotel is often the slowest (and most stressful) common denominator in air travel. Waiting in line for a taxi or worrying throughout a meeting whether the taxi will be waiting downstairs is when I envy folks on package tours with a courier to look after them at every stage of the trip. Uncertainty and loss of control are the main sources of travel misery.

Burgundy Global (www.burgundyglobal.com) promises to take some of the pain out of finding efficient ground transportation with a "one-stop shop" for chauffeur-driven cars around the world.

Mathew Hassell, managing director of Burgundy Global in London, says: "Most business travelers get great airline, hotel, maybe car rental deals but here is a massively neglected area of business travel. Getting to and from airports, meetings and hotels is a pain and it is something that travelers shouldn't have to worry about. We add value to the travel experience, not having to queue up at airports, having to pay in cash, making do with non-English-speaking drivers. We offer an airport transfer service, where you are met inside the terminal by an English speaking driver, and billed in your own currency, at 30 key business destinations."

Companies can log on to the site and see where their travelers are around the world, what sort of cars they are using - and how much it is costing.

Burgundy has targeted 300 organizations around the world that spend more than £10 million a year on ground transportation. New York and London are main markets, Hassell says.

Increased airport security has made travelers more sensitive to "people skills" and good food and retail services while waiting for flights, according to J.D. Power Associates' 2002 Global Airport Satisfaction Study published this month (www.jdpa.com).

The study, based on responses from 10,250 travelers in 12 countries, reports that while satisfaction with on-time flight performance has improved (74 percent compared with 66 percent in 2001) that is offset by increased waiting times and anxiety at security check areas. The number of travelers who are "pleased" with airport security has fallen from 39 percent before Sept. 11 to 32 percent in 2002.

"Changes in security procedures since 9/11 have had a marked effect on priorities and behavior of travelers," says Michael Taylor, senior director of travel services at J.D. Power and Associates, "dramatically increasing interaction between travelers and staff. People skills, such as courtesy and professionalism, have become crucially important to traveler satisfaction. And with increased waiting times, they are looking for something to do, such as shop, eat or drink.

Singapore's Changi and Hong Kong's Chep Lap Kok International rank highest in traveler satisfaction among 46 airports worldwide measured in the study.

Hong Kong's sophisticated multilevel design simplifies passenger flow, Taylor says. The airport has a state-of-the-art train service, a wide choice of shops beyond security checkpoints and attentive staff. Changi scores high in customer service training among its staff and making a "tremendous effort" to keep the "airport up-to-date and exceptionally clean."

In North America, Las Vegas, Phoenix, Minneapolis, Detroit Mayo, Denver, San Francisco and Dallas-Fort Worth perform "at or above industry average." Amsterdam Schiphol is the highest ranked European airport in the study.

Readers may contact Roger Collis by fax at (44-20) 7987-3451 or by e-mail at rcollis@iht.com. Please include city and country.

Jurys Doyle forecasts half-year profits rise

e-Tid.com  - In a trading update ahead of its interim figures, Irish hotel group Jurys Doyle today said profits in the six months to end-October 2002 would be ahead of the corresponding period of last year.

The group said its three-star Jurys Inns had performed well, with high occupancy rates across the brand and new properties in Croydon and Birmingham opening strongly.

Both of Jurys five-star Dublin hotels, the Berkeley Court and Westbury were also trading up on last year, while US properties were performing ‘satisfactorily’.

However, the group warned that the trading environment in both Dublin and London remained challenging. ‘These markets continue to be impacted by reduced corporate conference business and reduced tourist activity,’ it said.
Jurys’ outlook for the remainder of the year was also cautious. ‘…an improvement in the Dublin and London markets will be dependent on the timing and extent of the economic recovery – which is not now expected in the short term’.|

Following the update shares in the group remained flat at 420p.

Shangri-La launches its Meeting Promise to event organisers

Asian-based luxury hotel group, Shangri-La Hotels and Resorts, announced  a series of new initiatives to cater for the specific needs of the event organiser and to help ensure worry free and smooth running events.

Shangri-La’s ‘Meeting Promise’ is on offer to all event organisers booking events with over 30 rooms at any of the group’s 38 properties in Asia Pacific and includes a range of exclusive benefits in addition to a dedicated meeting services specialist assigned personally to each event.

This specialist coordinates between the event organiser and the various departments within the hotel on the planning and logistics, and follows up with a post-event guest satisfaction assessment.

Shangri-La’s ‘Meeting Promise’ comprises the following guarantees and benefits for the event organiser:

- a written proposal and quotation for the event on the next working day

- an events concierge to handle all messages and details for meetings upgrade to a larger room

- free mobile phone for local calls throughout the stay for easy communication

- free local telephone calls

- free in-room broadband internet access where available

- free in-room fax machine and printer

- 15% discount on all business centre services

- free delivery of left behind materials (excluding props) to a local office

In addition to these benefits, event organisers at Shangri-La’s hotels will be given a special pin to ensure even greater recognition and assistance from all hotel staff.

Commenting on these new initiatives, Carmen Lam, group director of sales and marketing for Shangri-La, said: 'Meeting Promise’ recognises the considerable effort that goes into planning a successful event. We have simplified and streamlined the event organising process to provide a hassle-free experience for the events organiser. Our all encompassing service through our dedicated meetings specialist allows the event organiser to concentrate on the important business at hand.

"This new package also ensures that event organisers can rest assured they will receive a consistent standard of service at all our extensive meetings facilities as any relevant information will be conveyed to the next Shangri-La hotel."

In addition, Shangri-La has relaunched its ‘Meeting Guide’ detailing its meeting and banquet facilities across all its hotels including room layouts and specifications. With most hotels in the group having over 500 rooms and the biggest ballrooms in the city, the guide provides event organisers a valuable reference tool for the wide range of meeting facilities that the group offers in 25 destinations.

With almost 20,000 rooms, Shangri-La has hotels located in mainland China, Fiji, Hong Kong SAR, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Taiwan and Thailand. It will be opening new hotels in Malaysia, China and the Gulf in the next few years.    

Bali shadow over IT & CMA meet

The implications of the Bali bomb blast figured widely at the 10th IT & CMA, Asia's biggest Meeting Incentive Convention and Exhibition (MICE) event, which concluded at the Impact Convention Centre yesterday.

The event was being held in Thailand for the first time, and this year's convention attracted 300 exhibitors from 30 countries - making it the biggest to date.

As CNN reported the possibility of terrorist attacks on bars and nightclubs in Thailand, delegates debated what measures were being taken regionally to ensure tourist security after the Bali incident. Santichai Euachongprasit, deputy governor of marketing at the Tourist Authority of Thailand (TAT), said more attention should be paid to security at the Kingdom's key tourist destinations.

Hyatt International director of hotel sales Marlene Poynder said the Hyatt group was reviewing security measures at all its hotels.

Robert Guy - managing director, Pacific World Destination Management - raised the idea of setting up a regional security committee, and Bandhula Ekanayake, director-general of Sri Lanka's Convention & Exhibition Centre, spoke of the need for a "sustained strategy" to combat terrorism over the next five years.

The presence of a large delegation from Bali itself gave the convention added relevance. "Our message is twofold," said John Daniels, president of Bali Discovery Tours. "We want to prove we are unbowed and resilient and we hope people will come home to Bali."

Starwood on track to expand its portfolio in Asia Pacific with at least 25 more hotels to be opened from 2002 to 2004

Singapore, 25th  October 2002 -- Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) has signed   its 20th property in China, the Sheraton Dongguan Hotel, which is scheduled to open by second quarter of 2003.  Starwood currently operates fifteen hotels in China, with five properties in the pipeline to open between 2003 and 2004. 

The 411-room Sheraton Dongguan Hotel will be operated under a management agreement signed with C M Enterprises Company Limited.  The Sheraton Dongguan Hotel is located in the central business district of Dongguan City, which is situated in southeastern China and approximately one hundred kilometers from Hong Kong.   Dongguan is approximately 2 hours flight away from Shanghai and Beijing.

Strategically located in the Guangzhou-Hong Kong Economic corridor, the city of Dongguan  is highly regarded as an international processing and manufacturing base in China for furniture, garments, footwear and technology based systems.  The city is also home to many multinational corporations and enterprises such as Samsung, Dupont, NEC, Philips, Nokia and General Electric.   For leisure travelers,  Dongguan is known for its historic attractions such as temples, museums and Chinese gardens.

The Sheraton Dongguan Hotel, will be the only five-star international hotel in the city and it will consist of the following facilities:

*       411 rooms, including 33 suites

*       Four restaurants and lounges, including an all day dining

restaurant, a Chinese restaurant, an international restaurant and a lobby lounge.

*       Meeting and banquet facilities of 1,500 sq.m

*       Business Center

*       Health Club facility with spa

*       Recreational facilities, including a swimming pool and recreation

center

*       Retail space

According to the World Tourism Organization, China ranked fifth in overseas tourist arrivals in 2001, hitting 33.2 million, an increase of 6.2% from 2000.  Its domestic tourism has remained robust since the mid 1980s, reaching 784 million in 2001, an increase of 5.3% from the year before.

"Starwood is focusing on China as a major player in the global hospitality industry.  We will participate fully in the growth and development of the economy," said Miguel Ko, President of Starwood Hotels & Resorts Worldwide, Inc. Asia-Pacific.  "With 85 hotels in Asia Pacific and 15 hotels in China   alone, we will continue expanding our portfolio in the regional and emerging destinations in China.  Starwood is committed to provide travelers with a choice of upscale and modern hotels wherever they travel in this vast country."

Sheraton Hotels & Resorts, the largest brand of Starwood Hotels & Resorts Worldwide, Inc., has more than 375 hotels in over 67 countries.  In China, Starwood's portfolio currently includes eleven Sheraton hotels in Suzhou, Xian, Beijing, Chengdu, Guilin, Nanjing, Shanghai, Tianjin, Shenyang, Wuxi and Hong Kong; two St.Regis hotels in Shanghai and Beijing; and two Westin hotels in Shanghai and Macau.   Other Starwood properties under development include the Sheraton Sanya Resort (end 2002), Sheraton Zhengzhou Hotel (early 2003), Four Points by Sheraton Shenzhen (end 2003) and Sheraton Dalian Hotel (early 2004).

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 750 properties in 80 countries and 110.000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchiser of hotels and resorts including: St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton and W brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For further information, please visit www.starwood.com.

Bali bombing could cost one in five jobs on the island

(AP) One in five workers in Bali could lose their jobs as tourists shun the Indonesian island after the Oct. 12 terrorist bombing, university experts said Friday.

Employment figures could drop as much as 22 percent the next 12 months, according to research conducted by The University of Nottingham's Tourism and Travel Research Institute.

An assessment based on an economic model developed at the university's business school says that Bali's gross domestic product, which is heavily dependent on tourism, could decrease by as much as 10.5 percent during the next year, 6.2 percent the year after and a further 2.1 percent the following year.

"Bali has long been considered a peaceful, tranquil island of the gods, but there is no longer such a thing as a safe place in the travel and tourism industry," said Prof. Thea Sinclair of the business school.

"This horrendous attack on tourists will have devastating effects on Bali's tourism industry and economy, especially given the fact that more than 80 percent of households depend on tourism."

Indonesia received 2.1 million tourists in 2001 and more than a quarter - 26.3 percent - used Bali as their point of entry.

Around half of all tourists to Indonesia last year visited Bali, but visitor numbers are expected to fall dramatically following the bombing at the Sari nightclub in Kuta that claimed at least 180 lives.

Thailand: MICE Industry Set to Grow

Inbound tourism to Thailand will be boosted with the setting up of a dedicated Convention and Exhibition Bureau. This bureau will act as a one-stop service centre and coordinate with Thai public and private agencies to market the country as a world-class venue for meetings, incentives, conventions and exhibitions (MICE).

Tourism Authority of Thailand (TAT) Deputy Governor for Marketing, Mr Santichai Euachongprasit, announced this initiative at a press conference/luncheon at the Incentive Travel & Conventions, Meetings Asia (IT&CMA) 2002 at IMPACT Convention Center today.

MICE is an area of high priority to the TAT, said Mr Euachongprasit. "In 2001, international convention delegates to Thailand totalled 89,677, an increase of 7.38% over 2000. During January-June 2002, MICE delegates totalled 52,102, up by 14.94% over the same period of 2001 - much higher than the 6.44% growth of total visitor arrivals to Thailand."

TAT has also launched a number of new marketing initiatives to promote Thailand as a superb MICE destination. The "Place to Meet, Amazing Thailand" campaign, for instance, includes special, complimentary services to qualifying events.

Several high-profile events are scheduled to be held in Thailand over the next few years, including the 20th World Scout Jamboree this December, the APEC Leaders Summit in 2003, the 15th International AIDS Conference in 2004 to be attended by 14,000 delegates, and the Lions Clubs International in 2008, the world’s largest convention which will bring 30,000 delegates.

Mr Euachongprasit said: "One very important thing for MICE planners is the quality of our infrastructure. Thailand is making significant improvements, especially the mass rapid transit systems in Bangkok, which are making it much easier for delegates to move around. This system will be further supplemented by an underground transit system that is due to open on 12 August 2003, Her Majesty the Queen’s birthday, and will link many more parts of the city."

Citing Thailand’s colourful culture, extensive range of fabulous cuisine, great golfing facilities and elegant spas as other strong reasons to visit the country, he added: "Our goal is to become the Tourism Capital of Asia."

Commenting on IT&CMA’s 10-year history, TTG Asia Media’s Managing Director, Mr Darren Ng, said that from the early years in Hong Kong, through its five years in Malaysia, the event had grown in status and standing.

"I am glad to say that the size of the show and number of participants this year is the biggest ever, and a wonderful testimony to our faith and perseverance as we commemorate 10 successful years in this niche segment.

"We have 280 exhibiting companies from 30 countries, many organised in national pavilions and others at corporate booths, spread over a gross floor area of 5,000 sq metres. There are 265 hosted and trade buyers from 37 countries as well as 70 members of the media, half of them from overseas," he said.

Mr Ng added that despite the recent tragic terrorist bombing in Bali targeted at innocent tourists, only two buyers had cancelled their visit to IT&CMA 2002 because of that. "As organisers of IT&CMA, my team and I are naturally concerned about safety and security. Together with host country Thailand, we have taken extra precautions to maximise security, including additional checks, patrols and the deployment of the Thai special police at the opening ceremony and exhibition venue."

He also complimented the Bali exhibitor contingent - the largest ever - for their courage and resilience in continuing with the show and urged the media to show their support by giving fair and balanced coverage to Bali and the rest of Southeast Asia.

"All of us in the travel and tourism industry have been affected by the dastardly terrorist activities. We must not be cowed but show our tenacity in meeting the challenges that confront us. Let’s start at this show, IT&CMA 2002, to show our resolve. Thank you all for coming and I wish everyone a fruitful event."

For more information and text of speeches, please contact:
Gerardine Donough-Tan or Tee Yen Ching at the Media Centre, Level 1, Room 11, IMPACT Convention Center, Bangkok from 23 to 25 October 2002.

South-east Asia still hot - But Australians told to leave Indonesia

Australian wholesalers and travel agents remain positive about outbound travel to South-east Asia despite large cancellations to Bali after the bombing on October 12.

Wholesalers in various Australian states reported travel cancellations predominantly to Bali, with more expected to follow in the early days after the incident.

However, Creative Holidays managing director, Mr Justin Montgomery, said: “We have received 500 cancellations to Bali and Lombok. But other destinations in South-east Asia have not suffered.

Unfortunately, at press time, Australia’s Department of Foreign Affairs and Trade had upgraded Brunei, Cambodia, East Timor, Laos, Malaysia, Myanmar, the Philippines, Singapore and Thailand to a “high risk” status.

“It’s hard to say how travel to South-east Asia in the next six months would be affected. It depends on how travellers perceive it as being safe. Right up until 1997, most Australians didn’t realise that Indonesia, Singapore, Malaysia and Thailand all made up South-east Asia.

“They saw each country as destination specific. But people will be conscious about incidents such as the Abu Sayyaf kidnappings in Sipadan (in Borneo) and in the Philippines.”

Mr Montgomery added Creative Holidays would be calling its agents about bookings made to Bintan, following the travel advisory issued by the Australian Department of Foreign Affairs and Trade following a call for Australians in Indonesia to leave the country because of “information concerning new threats”.

While some Australians have decided to travel domestically and to the Pacific such as Vanuatu and Fiji, others are still confident of Asia.

A major operator in Perth, New Horizons Holidays, General Manager, Mr Don Cooper, said: “Some 30 percent of those who have cancelled their plans to travel to Bali in 2002 have asked to go to Penang, Langkawi and Phuket. They still want to visit Asia.”

However, Australian operators and agents said it was vital South-east Asian destinations worked together to fight negative perceptions formed after the attack in Bali.

Mr Montgomery said: “As Bali is the main destination in South-east Asia for Australians, it is fundamental for the NTO to underpin the safety aspect of the destination and show they are reviewing terrorism so as to put minds at ease.

“Big destinations such as Singapore, Bali and Thailand need to band together to show efforts have been made to curb terrorism.” The UK and New Zealand have issued travel advisories on South-east Asia, which are similar to the ones Australia has issued. 

Thomas W. Higgins Named President and CEO of Best Western International

The board of directors at Best Western International, THE WORLD'S LARGEST HOTEL CHAIN(R) has appointed Thomas W. Higgins as the hotel chain's new president and chief executive officer.

Higgins, a 30-year lodging and travel industry veteran with extensive operations, marketing and business development experience, comes to Best Western from Days Inn Worldwide, where he most recently served as president and CEO. Days Inn is a division of Cendant Corp. (NYSE:CD).
Before he joined Days Inn, Higgins was with Sun Country Airlines, Minneapolis, one of the nation's largest air charter companies where he held the position of chief people officer. Prior to that, he was senior vice president of LaQuinta Inns Inc., San Antonio, where he developed improved property management, pricing and marketing strategies. He also had oversight for the nationwide renovation of more than 225 LaQuinta Inns. Higgins has also held executive positions with Motel 6 and General Mills' restaurant division.

Tom is a dynamic leader with a proven track record. He has a solid hotel background that includes travel industry experience which will be of great benefit to both our brand and our members as we move forward, said Ken Smotherman, Best Western board chairman. During our extensive nationwide search we narrowed the list to a dozen extremely qualified and very talented individuals, but Tom was the board's unanimous choice. We are delighted to have him on the team, he added.

Best Western is a solid and highly regarded brand that has always been a formidable competitor among the other mid-market hotel chains, said Higgins. Initially my charge is to learn as much as I can from both the management team and our Best Western members. There are a lot of things this brand has done very well over the years and it's truly a privilege to be a part of this great global hotel chain, he added.

Best Western is THE WORLD'S LARGEST HOTEL CHAIN(R) with more than 4,000 independently owned and operated hotels in over 80 countries and territories. It is a membership association of independently owned and operated hotels that provides marketing, reservations and operational support to its members.

Have You Revised Your Marketing Plans and Strategies?
Conduct Your Sales and Marketing Audit

Written By:  Leora Halpern Lanz   HVS International

A year ago, in an article with this same title, I asked hotel marketers to immediately revise their marketing plans to respond to the re-focused travel expectations we were facing. And naturally, all of us have learned so much in these past 12 months.

As we know, the Marketing Plan is a living, breathing document that needs to be flexible and open to revision as we proceed with its execution.  How are the various elements of the marketing plan continuing to evolve in this (still) very interesting and uneasy period?

1. Sales – Hopefully, your sales staff has now had sales training.  Last year, sales people didn’t need training; all they had to do was pick up a phone.  By now, the sales staff should be comfortable making calls, and should understand the intricacies of prospecting, networking, and all of the “work” that comes with selling.  Attitudes, persistence, encouragement, and resourcefulness should be prevalent in your sales staff.  There are endless books, lists, and tips for successful sales people.  Has your sales team crafted its “elevator pitch” – the selling sentence that would get a prospective client’s attention if the seller only had two minutes in an elevator with the prospect?

2. Sales Action Steps – Have specific goals been documented so that your sales staff knows tactically and specifically what it needs to accomplish and how it needs to do so?  Have you actually executed any of these steps?  If not, why are they still on your plan?

3. Advertising and Direct Mail – Did you assemble and work your databases? Did you collect e-mail addresses? Are you e-mailing your best customers with great values to keep their loyalty returning?  Is your advertising more localized or more regionalized?

4. Public Relations – Did you do any?  Have you had experts help package values and appealing offers, and execute the publicity to promote them?  It’s been a competitive period for everyone; publicity and third-party endorsements will only help your company remain one step ahead.

5. A Sales and Marketing Audit – Have you reviewed your position and mission statements to see if they are still valid?  Does your plan meet the objectives of the mission, and communicate the messages of the position statement?  You’d be surprised how many of us have not conducted this critical exercise. This audit must be completed before we even begin to think about the various tactics indicated above.

6. An Operations Review with Respect to Your Sales Effort – This past year was ideal for evaluating your operation – the front office and its communications with sales and reservations, or housekeeping and engineering and how they deliver the service promise.  Managers and Sales Directors need to insure that the operation is living up to the hotel’s position statement.  Sometimes, internal staff and management members are so close to the operation that they cannot see the operational challenges or hidden revenue opportunities that are obvious to others.

7. Communication with Your Brand – Over the past year, it has been interesting to note the number of general managers who shelve the books provided to them by their own franchisor.  These books or directories of graphic standards, marketing opportunities, and/or cooperative advertising initiatives are invaluable to hotel managers who may not have marketing professionals on site.  When an owner pays fees to a franchisor, those fees may cover the cost of the promotional and advertising involvement; so why wouldn’t you participate?  Unfortunately, many hotels don’t take part in these plans because the managers simply do not read the book.  Talk to your brand area directors.  Read these manuals and ask questions so you can participate in your co-op initiatives, RFP processes, or other goal-oriented programs.

8. Using the Internet to Your Best Ability – Many of us utilized the consumer-targeted travel web sites to participate in the rate game of the past year.  Now, how do we bring our average rates back up, while still befriending those travel web sites that we so loved these past 12 months?

If you have not yet addressed any of these items, or if you need assistance fine-tuning any portion of your sales and marketing strategies, consider a fuller sales and marketing departmental audit with an operations review. For a set of fresh eyes to review your efforts, HVS Marketing Communications can help guide you.

Contact:
Leora Halpern Lanz
HVS International
372 Willis Avenue 
Mineola, NY 11501
1-516-248-8828, ext. 278
1-516-742-3059 Fa

Banyan Tree Hotels’ Chairman KP Ho :  the brand champion

By Yeoh Siew Hoon   TravelWeeklyEast.com

Of late, the chairman of Banyan Tree Hotels & Resorts, KP Ho, has been making the headlines a lot. The sudden burst of publicity has prompted some to wonder if the man credited with building up Banyan Tree into a global brand is preparing the company for a public listing. There are, of course, many other reasons why Ho is enjoying the limelight – Banyan Tree was recently named the third top brand in the world by Interbrand in a Financial Times publication, after Virgin and Pizza Express. Yeoh Siew Hoon talks to Ho on what’s next.

Q: There is a lot of talk in Singapore about local companies creating global brands – you see Banyan Tree in the same global light?
Ho: We do see ourselves as aspiring to be a global brand – out of choice, not ego – in the small space we occupy. If we are not global, we won’t survive in the long time. Our market is global, our customers global, our competitors global. Our customers are as comfortable in Ecuador or Costa Rica or Bali or Philippines. They are of that income group and segment that sees the world as the place for their holidays. We have to think in their mindsets.

Q: If this was a full-length branding race, what part of the race would you say you were at?
Ho: One-third. We are relatively strong in Asia/Pacific but not that exposed to the European and North American markets.

My goal is not to be in every place like a Starwood but to string a necklace of properties around the world. Our strategy is not to go into high cost areas due to capital limitations but to go for countries with international room rates and development country costs. For instance, if we want to get into Europe, there is no need to go into London or France, but we might go to Tunisia or Morocco, the playgrounds of Europeans. Our resort in Seychelles is within three hours of Europe – that’s our first breaking out of Asia. We have also signed in South Africa for several properties, one will be a Banyan Tree.

Q: You cite capital limitations but surely, you can expand through management contracts?
Ho: We are not terribly interested in doing pure management contracts, neither consistently 100 percent ownership unless like Bali, there is strategic interest. Our preference is minority equity in the asset with a strong local partner.

Q: Where else are you eyeing?
Ho: We finally got into North-east Asia. We are opening a spa in Hong Kong, an Angsana City Club and Spa in Taichung and a Banyan Tree spa in Shanghai. Our strategy is where we can do hotels, we will but if there are places where there are no obvious hotel opportunities, we will go in with a spa or city club. It’s the fastest way with lowest risk to enter a market. Taichung will be our first city club and spa. The opportunity came for the city club and we jumped on it.

Q: You don’t see it as diluting your core competence?
Ho: We are very clear about our core competence. We have been offered a lot of things that we wouldn’t do, for example, factories that supply our resorts or wineries. That would be getting out of our core competence – and our three areas are gallery, spa and resort. Previously, the spa and gallery depended on the resort for business but both are standing on their own now.

Q: You talked about capital limitations – is that holding you back from growing faster?
Ho: If we always go in as minority shareholder, that limits us to two a year.

Q: Are you contented with that?
Ho: It is part of our brand strength. We haven’t grown for growth’s sake but according to our capabilities. We have done no acquisitions but designed everything from scratch. The advantage is the product is strong; the disadvantage is it is very slow.

Q: But you are a man in a hurry?
Ho: I am always in a hurry but in this business, you can’t go for numbers. There is a trade off between brand strength and development.

Q: What’s the new business landscape?
Ho: I see a lot more consolidation. The weaker players, the less differentiated, will be absorbed. We are seeing that already. Six Continents, Starwood, Accor and Marriott – we have a core of truly global players. They will grow more rapidly and grow stronger.

Other hotel chains will have a problem – I am not sure of the space the Kempinski and the Meridiens of this world will play in. Tiny players will do well.

Q: But even your space is getting crowded?
Ho: Yes, more and more people are getting into the boutique business. In any business, once it matures, the only way is to continue to have a point of differentiation so that you stand above the noise.

Q: Is it an advantage that you started earlier or a disadvantage being first-mover in this space as it were?
Ho: We’ve had time to establish a brand and build brand loyalty. This business doesn’t move as fast as the dot.com world – the product cycle for spas is longer. But I am very well aware that change is part of life and I have no illusion that the spa boom is driven by demographics – the same way that discos were the big thing when baby boomers discovered it. The disco generation has grown up into the spa generation. If spas evolve into something else, we will take that person along with us – we have to be there.

Q: What is the next wave in spa development? More health-focused as in Europe?
Ho: It’s not where we are going. We might go into a destination spa concept – there is no real destination spa in Asia except for Chiva Som. So maybe we will do a Chiva Som but not so clinical – perhaps more of a spa retreat.

Q: Your definition of a destination spa?
Ho: A place where the spa is the major reason to go instead of the spa as an amenity.

Q: There’s been a lot of debate in Singapore lately about foreign talent – what’s your stance?
Ho: It’s a non-issue. We have 4,500 staff with 32 nationalities. Talent rises to the top.

Q: You’re playing an active role in the education of young minds with your chairmanship of the Singapore Management University. What’s your vision with SMU – how will you encourage more creativity and entrepreneurship?
Ho: At SMU, we want students to have the ability to think critically and independently, link it to considered judgement, and then express their views. This is absolutely vital for the next generation. Our lecturers are facilitators and students are out in an environment when they end up talking. Projects are done on a group study basis like in real life.

People say Singaporeans are non-creative and passive but that’s because they are products of a system. You change the system and you bring out something else.

Shotgun approach for association market

TravelAsia.com  -  Speakers at the ‘Whither the State and Shape of the MICE Business’ seminar at the IT&CMA 2002 in Bangkok agree on how the segment can move forward in the light of New York-September 11 and Bali-October 12 – events will come back to Asia. There has been a slew of postponements, not cancellations, so far. Particularly in association meetings, says ICCA representative Martin Kinna.

After the shock and the finger-pointing of a crisis such as Bali, there must be recovery, and increased promotion of the destination. Not in terms of advertising dollars by the NTOs and “bigger and better brochures”, but by finding the “right focus, the right clients and working with them,” says Kinna, with reference to the association market. “Not the scattergun approach, but the shotgun approach.” On the other hand, the corporate market will need some nurturing, and a lot of reassurance with regard to security, particularly if organization is done largely through a third party.

For SITE Singapore Chapter Robert Guy, security is not an issue of luck, nor third party assurance. It’s something which needs to be done yourself. There is thus a need to review security activities with regard to the event itself. “Times have changed and the structure of your event changes with them,” he says. And this includes not just the event venue, but also what’s being done at the airports, hotels, roads and infrastructure.

PATA’s Peter Semone reveals that the statistics of the association indicate a certain resilience in intra-regional travel. And he’s hopeful of a recovery from within. The diversity in Asia, viewed often as an attraction, is also increasingly seen as a threat and “will keep longhaul away”. But in a region which is used to these differences, Semone believes travel will not be affected.

Six Senses Spas ‘Best in Asia-Pacific’ in TTG Asia Annual Awards

Six Senses Spas was last night named Asia Pacific’s ‘Best Spa Group’ in TTG Asia Media’s Annual Travel Awards 2002. The award was presented at a gala dinner ceremony held in Bangkok.

Over the past decade, Six Senses Hotels, Resorts & Spas, a fast-growing group of innovative resorts for whom the spa experience is paramount, have carved a unique reputation for outstanding holistic spa treatments at the various Six Senses Resorts stretching from the Maldives to Thailand and Vietnam.

The group’s “beyond stars” flagship resort, Soneva Fushi in the Maldives, was also recently voted '3rd Best Spa in the World' by the discerning Gallivanters' Guide to luxury hideaways.

The Annual Travel Awards are presented to outstanding travel trade performers in the Asia Pacific. Launched in 1989, they have gained the distinction of ranking among the most coveted and influential awards in the region’s travel industry.

Contenders in various categories are nominated by more than 28,000 readers of TTG Asia and TTG China. The 14^thTravel Awards 2002 awards ceremony & gala dinner was held for the first time in conjunction with IT&CMA (Incentive Travel & Conventions, Meeting Asia), an important international travel trade show in Bangkok from 22 to 25 October 2002 at IMPACT.

“The Six Senses Resort experience is very much about rejuvenation amid pristine nature, beneath clear blue skies and surrounded by turquoise waters, seemingly thousands of miles from the rat race, and the Six Senses Spa is very central to it,” said Six Senses founder and CEO, Sonu Shivasdani.

“These are not spas of the makeover/facial variety; neither are they rigorous regimes or medical treatments. Six Senses Spas are instead designed to compliment the resorts with pampering and healing therapies focused on health, relaxation, beauty, stress release and recuperation from the everyday pressures of an increasingly hectic world.”

Six Senses Spas are run according to a shared holistic philosophy at five Six Senses Resorts: Soneva Fushi and sister property the all over water Soneva Gili in the Maldives; Evason Hua Hin and Evason Phuket in Thailand; and the luxury Ana Mandara in central Vietnam.

The next to open will be at a new Six Senses ‘Hideaway’ Resort in Koh Samui, Thailand, due for completion in early 2004.

Spa Manager at the Soneva Resorts Johanna Osterbladh said: “It is not a coincidence that many guests come to these relaxing spa sanctuaries several times during their stay for the wide array of massage therapies and healing treatments on offer.”

“These are serious holistic spas and much attention is paid to the individual requirements of guests.”

From a Robinson Crusoe-style “castaway” island and a “Water World” where you can watch the fish swim below your stilted villa, to idyllic palm-fringed beaches and back-to-nature “Cocoon Rooms”, Six Senses Spas offer a smorgasbord of options; milk and honey baths, rose petal baths, Swedish, Thai or energy massages, head and foot massages, detoxifying treatments, stress management, beauty, pampering and much, much more.

The renowned Six Senses “Sensory Journeys” include jet lag revival; the ‘Oriental’ including massage, body glow and acupressure; the ‘Indulgence’ with two therapists; the ‘Rejuvenation’ and the ‘Pampering’.Massages range from the familiar Swedish, Deep Tissue, Thai and Thai Oil to the Holistic “free-style” therapy using essential oils and a variety of techniques to suit personal tastes or requirements.

In South East Asia, the Area Spa Manager is British-born Anna Keen, who has directed some of the region’s leading resort spas.

About…

Soneva is a “beyond stars” boutique brand of luxury resorts whose “Intelligent Luxury” philosophy is to offer luxuries of the highest international standard together with a sensitivity and local feel in design, architecture and service.

Evason is a five star category where attention to detail is also a driving force and whose philosophy of “Redefining Experiences” results in very innovative properties.

Six Senses Spas, a key element of all Six Senses properties, offer a wide range of holistic wellness, rejuvenation and beauty treatments for ‘Balancing Senses”, administered under the guidance of expert therapists.