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Events organisers and suppliers to the MICE sector who haven’t heeded China’s latest outbound tourism numbers or what its travellers ask for most commonly in hotels (free wifi and kettles) could miss out on revenue in a major way.

Young Couple ShoppingThat’s the key message, again, in Hotels.com’s latest Chinese International Travel Monitor, published last month. The fifth annual survey of its kind shows that despite a slowdown in the growth of Chinese overseas travel, 92% of travellers from the country plan to increase or maintain spending, and one-third plan to spend more on travel in the coming year.

A staggering 120 million Chinese travelled overseas in 2015, up from 117 million in 2014, the year when the milestone of 100 million was first passed. There were over a million (1,023,600) to Australia alone – up 22 percent on the previous year. And down under remains at the top of the Chinese traveller wish list for the third year in a row as the most desired destination to visit in the next 12 months.

A rough measure of the still-untapped potential of this market could be that only 5% of the 1.4 billion people in China hold passports, yet it’s already the top global spender on travel. The expenditure is expected to equal Finland’s GDP and exceed the size of the Greek economy in five years.

Chinese millennials – 18 to 35-year-olds – spend over a quarter of their income on travel. Two-thirds of travellers from China consider travel an essential part of life, and are prepared to spend nearly a quarter of their income on it.

Kettles and slippers

While the top requests in hotels by Chinese travelers were for free wi-fi and kettles in their rooms, requests numbers three and four were Chinese breakfast and slippers. However, one-size-fits-all perceptions of the Chinese as group tour travellers wanting only Chinese breakfasts and Mandarin translators are outdated, according to Abhiram Chowdry, Vice President and Managing Director APAC for Hotels.com.

“Our research shows that the industry needs to move decisively to develop new products and marketing strategies for the far more sophisticated Chinese travellers of today,” he says.

“An analysis of our research data has revealed that Chinese travellers fall into one of five travel personas [which] open the way for targeted marketing to attract these segments and cater to their specific needs.”

Read the report  here.

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Soon after Flavie Thevenet first visited Cambodia from her native France more than 20 years ago, she walked past a family eating lunch outside their home on the outskirts of the capital, Phnom Penh. It was obvious that they were desperately poor, yet the family insisted she share their food, and she accepted.

Flavie, pictured below, reflects on that small act of generosity often. She’s experienced such unconstrained hospitality many times over the years – more than a decade in total – that she’s lived in the southeast Asian nation and in her current role as country manager for the tour operator Khiri Travel.

IMG_9814Though still poor and relatively underdeveloped, Cambodia has moved on and is recovering well from its nightmarish past, says Flavie, who loves the country. “People here want to move forward,” she says enthusiastically over coffee at a Siem Reap café. “So many have started from absolutely nothing, having been through terrible times in their history, and they’re making real progress, as you can see in the standards of many businesses and hotels.”

Flavie is passionate, too, about responsible tourism, which means that Khiri Travel, which is active in supporting local communities (tagline: people, planet, profit) is proving to be an excellent fit for her.

Typical of the company’s embrace of sustainability is its pledge this year to donate to youth development 2.5% of its revenue from new educational travel group bookings visiting southeast Asia. It also supports Khiri Reach, a charity to help disadvantaged people through community development, conservation and other projects.

Established in 1993, Khiri is headquartered in Bangkok and specialises in tailored inbound tours to Cambodia, Laos, Myanmar, Thailand, Vietnam, Sri Lanka and the Maldives with staff support in each: 14 in the capital Phnom Penh and four in the smaller city of Siem Reap, which is close to the Twelfth-Century Angkor Wat temple complex, below, the largest religious monument in the world.

One of its key offers is incentive experiences – at a wide variety of price points – ranging from community-based tourism and city escapes to country “immersions” throughout Indochina.

angkor-wat-3-1566714Each incentive trip that Khiri people organise is customised, and many are innovative, Flavie says. They can range from a trip on a private jet to a wedding in a preferred hotel, dinner on a private island, afternoon tea in a royal palace and a private caving expedition in the karst mountains of Vietnam.

 

A great attraction for organisers on strict budgets is that Cambodia is, in the parlance of some experts and enthusiasts, fantastically cheap. As the 1.5 million tourists who visited it last year know, this is reflected in hotel prices. According to the most recent hotels.com index that compares room rates internationally, Cambodia topped the list of cheapest hotel destinations for Aussie travellers in 2014, at an average nightly rate of AUD73, followed by Vietnam at AUD91 and Thailand at AUD113.

“The potential for incentives is wonderful here because as a MICE destination it’s really affordable as well as being authentic,” adds Flavie. “It’s not commercialised, it’s exotic and has great history; what’s more you can feel comfortable in Cambodia, it’s safe and easy to find your way around.”

IMG_9885Day on the lake

To experience a Khiri Cambodia adventure first-hand, I accompany Flavie and her colleague Bunseun You, Khiri’s branch manager based in the provincial capital of Siem Reap, on a day trip to “Komphong Khleang” in August. It’s one of several fishing villages set along the shoreline of Tonle Sap Lake, a freshwater system in the 13,000 square kilometre Cambodian floodplain about an hour’s drive from Siem Reap. It’s a hot, sunny day as we set off in a diesel-powered wooden boat to explore the vast lake, whose tea-coloured waters teem with fish.

As we chug along a narrow canal leading to the main body of the lake, we spy fishermen, their heads bobbing in the water, arranging circular nets at regular intervals. As we watch, one small group hauls a glittering catch of several hundred into a canoe.

“They get a lot here; the lake is very productive,” says Bunseun. “It’s one of the richest ecosystems in Asia.”

Soon we pass a floating community, which consists almost entirely of fishing vessels and home-made houseboats kept afloat by oil drums lashed together, moored close to each other. People in these floating villages are mostly Vietnamese, Flavie says. They’ve been living like this for centuries, since they migrated to Cambodia, and their livelihood depends mostly on their proximity to fish – fresh, smoked or salted – which they also sell at markets.

IMG_9964These villagers seem to do everything on or in the water. Next to one floating home, its deck lined with colourful flowerpots, young kids are diving and swimming. Then we pass by what appears to be a community hall afloat.

In another houseboat, whose sides are open to catch a cooling breeze, a family is gathered round a table having a meal, and a man is asleep in a hammock. Almost all the vessels have antennas, and most people we pass smile and wave, even though tourists must be a common sight here.

“It’s typical,” says Flavie. “Cambodians are so enthusiastic about sharing their food and customs and hosting visitors. It’s contagious.”

Stilt village

This is demonstrated further after we end our lake cruise and arrive at another small village. At this one, which is land-based, Flavie and Bunseun lead me to the foot of an extraordinary timber dwelling, perched on ten-metre-tall stilts. This is a necessity in the wet season when water levels can rise dramatically. Scores of these spindly homes flank a dusty street, resembling a bizarre lakeside forest.

IMG_0084The lady of the stilt house greets us shyly, her eyes curious, as we clamber up a steep flight of steps to the first level. Bunseon introduces her to us as Bun Kimheang, his mother-in-law. Bun, pictured in her home, left, bustles about, serving us a simple but delicious Khmer lunch of braised pork, rice and fresh local vegetables, which include yellow pumpkin-like portions, as well as ice-cold Angkor lager.

In the wet season the water can lap at the floorboards of these houses, says Bunseon, pictured below, and in such times travel is limited to wooden canoes and makeshift craft in which children paddle to and from school. People on some Khiri tours can actually stay overnight here, Bunseon explains. He shows me a curtained-off section of the next floor up, where mattresses line the floor. It’s minimalist and spotlessly clean.

Flavie, Bunseun and their colleagues pride themselves on being able to introduce visitors to experiences like these, and on their local knowledge. “We know the best restaurants, hotels, and transport companies by heart in Siem Reap and Phnom Penh, and many of our team possess exceptional training,” she says.

“We choose our clients and agents carefully, because our priorities are to meet customers’ expectations while always protecting the destination; we love being in Asia for the right reasons, not only for profit or because it represents a cheaper option.”

IMG_0091Other Cambodia tour options from Khiri include “Cambodian Island Paradise,” “Exotic Capital, Local Delights,” where visitors can sample Khmer food on a walking tour through the heart of Phnom Penh, and “Banteay Chhmar Tented Camp”.

The latter involves overnight stays at Khiri’s luxury tented camp surrounded by massive temple ruins in the northwest of the country, a three-and-a-half-hour drive from Siem Reap. This one-night, two-day trip starts from USD422 per person. See the video and get more information here:

https://youtu.be/N6DPSi0xhXg.

Many visitors to Siem Reap aiming to see Angkor Wat also take a drive, an hour by tuktuk or 45 minutes by cab, to the landmine museum. This is a facility started by Aki Ra, a former Khmer Rouge soldier who cleared landmines with a stick and at one stage lived in a house full of ordnance. Today the museum cares for poor children who live on the site.

How much?

Khiri packages for hotels, tour guides, transport and lunch start from around USD60 per person per day, says Flavie. Five-star hotels in Cambodia, like Hyatt, Raffles and so on start from USD150 a night in the low season from about March to October, and good four-star hotels, like the Somadevi, whose pool and gardens are pictured below, in Siem Reap, cost around USD40.

Operators’ advice

Flavie Thevenet: “I recommend that travellers to Cambodia do not limit their exploration to Siem Reap and its temples. Angkor Wat and the majesty of the Khmer Empire are mesmerising, a must-see, but many other historical and scenic places are equally appealing on a smaller scale and without the distraction of huge crowds. By spending time in the countryside, travellers have more opportunity to interact with local people. Hearing their stories is equal parts charming and inspiring.”

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Hotel operators and events organisers who don’t actively encourage tourists from mainland China could miss out on the opportunity of the century, especially in the luxury and “super-luxury” end of the market.

That’s evident from this year’s Chinese International Travel Monitor, recently released by online booking giant Hotels.com.

One of the revelations in the 2015 edition, the fourth, of the annual report into China outbound tourism is the growing financial muscle of the top 10% of spenders.

On average they shell out RMB 13,800 (AUD 2,817) a day, more than four times the spend of the average Chinese outbound traveller. But the top 5% spend even more: an astonishing RMB 20,896 (AUD 4,265) a day – indicating the emergence of a “super-luxury” class of traveller.

Chinese couple reading map on trainHotels.com’s latest report is a reminder for countries like Australia to pull out all stops to accommodate Chinese travellers and tailor their services for this market, as the potential is huge,” says Katherine Cole, Regional Director, Australia, New Zealand & Singapore for Hotels.com.

Katherine does not exaggerate. According to a Bank of America Merrill Lynch forecast, outbound Chinese travellers could number 174 million in four years’ time, spending about US$264 billion annually. That compares with around 107 million travellers in 2014. The forecast revenue is roughly equivalent to the GDP of a developed country like Singapore. “Clearly, the Chinese dragon is still building steam,” says Abhiram Chowdhry, Vice President and Managing Director APAC for the Hotels.com brand.

Australia came out on top, for the second year in a row, as the most desired destination for Chinese travellers to visit in the next 12 months. Sydney, Melbourne and Brisbane were named among the world’s top 10 cities they intend to visit.

Millennials’ growing influence

The report reveals the growing influence of Gen Y travellers, tech-savvy “millennials” aged 18 to 35. Fifty-nine per cent of hoteliers surveyed say they’ve experienced an increase in Chinese guestsaged 35 or under in the past year and they expect this trend to continue.

Meantime the use of mobile phones for planning and booking travel has skyrocketed. In the past 12 months, 80% of Chinese travellers used an online device including mobiles, desktops and laptops to plan and book, compared with only 53% last year.

The top three countries they actually visited last year were the US, Thailand and Hong Kong. The top 10% of spenders paid an average of 2,723 RMB (AUD556) per night on hotels alone.

Top 10 countries Chinese travellers say they would like to visit in the next 12 months 

Rank Country
1 Australia
2 Japan
3 France
4 Hong Kong
5 South Korea
6 US
7 Maldives
8 Germany
9 Thailand
10 Taiwan

 

To read the full report, visit www.CITM2015.com.

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Asia’s a better deal than ever. It’s the only region in the world where the prices of hotel rooms dropped for Australian travellers in 2014. Admittedly, some of the falls can likely be attributed to the weakening of the Aussie dollar, which has hit a six-year low, but the results will doubtless be of interest to most organisers seeking to run an event offshore – and not just Australians.

The latest hotels.com index, which compares Asian prices, shows that they were in fact only slightly higher than they were 10 years ago, and fell for a second consecutive year.

In Vietnam, Thailand and Sri Lanka prices paid for hotel accommodation in cities like Hanoi, Phnom Penh, Chiang Mai, Ho Chi Minh and Bangkok all fell – some quite substantially – in 2014. These ranked among the best-value cities in the world for hotel stays. The only exceptions to the slump were China, Hong Kong and Japan, where prices rose modestly last year.

20150220_Hotels.com_ACCESS Resort & Villas_Phuket  (2)Conversely, says Regional Director for hotels.com, Katherine Cole, hotel rooms in Rio, Honolulu, San Francisco, London, Dublin, Berlin, Madrid, Milan and Paris were all subject to double-digit price rises. Prices rose by 15% in New Zealand, 12% in Fiji and 11% in New Caledonia. The city where Australian travellers paid the most for a hotel room in 2014 was New York, where the average price was $317.

In Australia prices increased on average by only 1% in the past year. They rose slightly in Sydney (1%), Brisbane (2%) and Melbourne (1%). They fell in Darwin (-4%) and Perth (-3%).

Best-value hotel destinations for Australian travellers in 2014:

 

Destination Average price paid in  2014 (AUD)
Cambodia $73
Vietnam $91
Thailand $113
Poland $116
Egypt $117

 

Countries where hotel prices fell the most for Australians:

Destination Average price paid in  2014 (AUD)
Oman -18%
Russia -7%
Sri Lanka -5%
Croatia -5%
Taiwan -4%

 

Top five international destinations where Australian travellers paid the most for hotels in 2014:

Destination Average price paid in  2014 (AUD) % change on 2013
New York $317 7%
Rio de Janeiro $299 14%
Cancun/Riviera Maya $282 19%
Honolulu $281 10%
Boston $272 10%

 

Top five international destinations with the highest growth in hotel prices for Australian travellers in 2014:

Destination Average price paid in 2014 (AUD) % change on 2013
Morocco  $169 41%
Mauritius  $277 25%
Greece  $196 18%
Qatar  $197 17%
New Zealand  $162 15%

 

Change in Australian hotel prices for domestic travellers in 2014: 

Destination Average price paid in 2014(AUD) % change on 2013 
Hobart $176 6%
Adelaide $153 6%
Canberra $185 4%
Brisbane $172 2%
Sydney $200 1%
Melbourne $177 1%
Perth $184 -3%
Darwin $200 -4%

 

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