TTGmice’s e-news will be taking a break from Friday, February 9, 2024, for the Lunar New Year holidays. News will resume on Wednesday, February 14, 2024.
From all of us at TTG Asia Media, we wish all of our readers a happy and prosperous Year of the Dragon!
Is the cost of corporate travel expected to fluctuate a little or a lot in 2024?
While travel demand is growing and positive, the increases have moderated for a third quarter due to additional air seat capacity. As such, airline tickets, hotels, and car hire rates have also levelled.
We anticipate increased business travel for 2024 pending economic conditions and longer-term outcomes of the current conflicts and visa issues.
China has started easing visa entries for several nationalities, but the big unknown is between India and China – the two largest economies in the region. This has a huge impact on corporate travel.
What is the outlook for airfares?
Fuel, cost recovery, sustainability and fleet upgrades, which require investments from airlines, will continue to impact the sector and FCM Consulting has forecasted an average fare rise of between three and seven per cent in 2024.
After the pandemic, due to the lack of air seat capacity and the need to travel for face-to-face meetings, airfares skyrocketed. But this has started to level as airlines add capacity.
Popular routes in Asia, however, have seen an increase in economy class fares by 21 per cent and 17 per cent in business class fares year-to-date 2023 versus 2019.
For example, Mumbai to London has seen the highest increase of 24 per cent in economy class fares, followed by Mumbai to Delhi. Business class fares from Mumbai to London saw a 14 per cent increase in 2023 versus 2019.
Both airports from Shanghai to Singapore have also seen an increase in business class fares, where Shanghai Hongqiao International Airport saw a 24 per cent increase in fares and Shanghai Pudong International Airport saw a 20 per cent increase.
How will cost impact corporate travel policy and what changes do you foresee in programmes?
Cost is the number one priority when it comes to travel, and we do not expect that to change.
As an average indicator of the increases for goods and services, inflation forecasts can be a good way for companies to budget for the year ahead.
Economists estimate that inflation in 2024 will be five per cent (IMF July 2023 report), compared to the global average of 8.7 per cent in 2022 and an estimated 6.8 per cent in 2023.
Asia has seen key cities’ occupancy growth of between 108 and 153 per cent year-to-date in 2023 compared to 2022. Growing demand is now fuelling the rate increase this year.
Average room rates in Asia have gone up by US$33 to US$173 from 2022 versus 2023, which is why 3Q2023 saw a nominal increase of just one per cent due to the steep jump earlier in 1Q2023.
Tokyo leads with the highest average room rates of US$281 a night, followed by Seoul at US$277, Singapore at US$265 and Hong Kong at US$246. In India, Bangalore is US$143, Mumbai US$148, Delhi US$135 and Chennai US$96.Meanwhile, Hong Kong leads at US$246 a night, Beijing averages US$166 and Shanghai US$141.
Nonetheless, corporate travel programmes should budget for moderate increases.
Is corporate commitment to sustainable travel still going strong and what factors are likely to influence them to step it up?
We have been helping companies gain full visibility of their carbon emissions through our partnership with the Centre for Aviation-CAPA and Envest Global.
As part of their commitment to sustainability, we see the trend becoming a priority for businesses and we have a suite of solutions for corporate travellers to travel better.
In Europe, there are incentives that promote shorter travel via train instead of air, and airports have been forced to reduce their domestic flight capacity when rail is an alternative. There is also pressure on corporates to reduce carbon emissions and we are working with travel managers to find solutions such as choosing energy-efficient carriers.
Crowne Plaza Phu Quoc Starbay, an IHG hotel in Vietnam, is offering a special promotion for event planners until March 31, 2024, for bookings of 10 rooms or more.
Half-day meeting packages start from US$24++ per person, and full-day meeting packages begin at US$38++ per person.
These packages, subject to specific T&Cs, include complimentary rooms, upgrades to suites, AV system and LCD projector/screen usage in the ballroom, free-flow soft drinks, lunch, access to the beach venue for team-building activities, and for gala dinners, a complimentary firework display featuring company letters, and more.
The 308-key resort offers a range of versatile event venues, such as the 416m2 pillarless Orchid Ballroom which can seat up to 260 diners at 10 guests per table, three separate meeting rooms, and a pre-function area. There is also a beachfront area that can be utilised.
Facilities on-site include a spa, 24-hour gym, Olympic-size swimming pool, games room, the Amber Sands Beach Club, and Horizons Restaurant & Bar. Complimentary shuttle service to the resort from the Phu Quoc International Airport is also available.
Additionally, visits to the theme park, animal safari, night market, or golfing can be arranged.
Last month, New York City Tourism + Conventions – the destination marketing organization (DMO) and convention and visitors bureau representing the five boroughs of New York City – undertook a joint sales mission to Indonesia, Singapore, and the Philippines.
The joint sales mission was led in person by Makiko Healy, senior vice president for tourism market development of New York City Tourism + Conventions.
In a separate interview, Watson Li, New York City Tourism + Conventions’ regional director international MICE, told TTGmice that they were the only US DMO to embark on such an effort, underscoring the importance of the South-east Asia region.
Four representatives from Hudson Yards, New York Hilton Midtown, SUMMIT One Vanderbilt, and Tour America, also participated in the sales mission which included events, appointments, and meetings to reengage with the travel trade in South-east Asia.
This joint sales mission is only the beginning. Li shared that the DMO is planning to organise more fam trips for event planners and agents; conduct in-market sales activities through attendance at regional conventions and tradeshows; as well as hold a series of MICE Education Seminars across key regional cities.
“Singapore is the first entry point into the South-east Asian region, but we are seeing tremendous potential in Malaysia, Indonesia, Philippines, Thailand and Vietnam,” said Li.
Since reinstating New York City Tourism + Conventions’ in-market business events representation in the region in May 2022, the state has successfully hosted six incentive groups from South-east Asia. Groups – from the banking, insurance, direct-selling and manufacturing industries – ranged from between 30 and 1,200 people, and programmes lasted an average of three to five nights in New York City. Business delegates also tended to extend their stays after the incentive trip.
When asked what was New York City’s largest draw for business events groups, Li pointed to the city’s myriad skyscrapers and observation decks.
“Beyond spectacular views, Top of the Rock at Rockefeller Center, SUMMIT One Vanderbilt, Edge at 30 Hudson Yard, One World Observatory at One World Trade Center, the Empire State Building, and the Statue of Liberty Crown all offer various immersive experiences and are capable of handling events and groups of up to 2,000,” he elaborated.
With all its marketing plans in place, Li shared that New York City expects to welcome approximately 140,000 leisure and business travellers from South-east Asia in 2024, nearly recovering from its pre-pandemic visitation levels.
Revenues for the exhibitions industry for 2024 are expected to reach 115% of pre-pandemic level on average globally, and more than 52% of companies plan to increase staff numbers in the coming six months, according to UFI’s 32nd edition of its flagship Global Exhibition Barometer research.
The results highlight that in most markets around the world the exhibition industry fully recovered from the pandemic slump in 2023, with revenues reaching a comparable level to 2019, on average. The outlook for 2024 is very positive, with revenues expected to grow by an average of 15%, setting the industry up to record the highest-ever revenue levels in 2024.
Globally, 52% of companies declare that they plan to increase their workforce in the coming six months, and 45% declare that they will keep current staff numbers stable.
There is also an overwhelming consensus that AI will affect the industry, with 91% of companies stating this, up from 87% in the previous edition.
Key findings include:
Operations
The level of operations has picked up in 2H2023, with a large majority of companies from all regions (77% in the Middle East and Africa to 57% in North America) declaring an increase.
This trend will continue in 2024 with, on average, a percentage of companies reporting an increased activity ranging from 66% in North America to 64% in the Middle East and Africa, 55% in Asia-Pacific, and 54% in Central and South America and Europe respectively.
Turnover and operating profits
The year 2023 witnessed the full recovery of exhibitions, with revenues reaching a comparable level to 2019, on average. The outlook is very positive, with 2024 revenues expected to grow by an average of 15%.
These general trends vary from one country to another:
In terms of operating profits compared to 2019 levels, around half of the companies are declaring an increase of more than 10% for 2023, and one in four a stable one. Compared to 2022, six companies out of ten are declaring an increase of more than 10%.
The highest proportion of companies expecting a profit increase of more than 10% when compared to 2019 are in the UAE (91%), Saudi Arabia (80%), India (71%), Brazil (67%), and Mexico (64%).
Workforce development
Globally, 52% of companies declare that they plan to increase their staff numbers in the coming six months, and 45% declare that they will keep current staff numbers stable.
The highest proportion of companies planning to add staff are identified in Saudi Arabia (100%), the UAE (82%), India (80%), Greece (73%) and Malaysia (67%).
Most important business issues
This edition highlights significant shifts when compared to the previous edition of the Barometer released six months ago:
An analysis by industry segment (organiser, venue only and service provider) shows no differences regarding the three most pressing issues for organisers and service providers, which remain “State of the economy in home market”, “Global economic developments” and “Geopolitical challenges”. For venues, “Geopolitical challenges” are preceded by “Internal management challenges” and “Competition from within the exhibition industry”.
The analysis of the trend around top business issues over the 2016-2024 period identifies several important shifts:
Generative AI applications
For a second time, the 32nd Barometer survey asked a specific question on the impact of generative AI on the exhibition industry, to shed light on this emerging digital transformation. The survey aimed to assess the current utilisation of AI across various business functions and gauge future expectations.
As mentioned above, 91% of respondents consider that AI will affect the industry, up from 87% in the previous edition.
The areas expected to be most affected by the development of AI are: “Sales, Marketing and Customer relations” and “Research & Development” (both 80%) and “Event production” (65%). These are precisely the areas where generative AI applications are mostly used already (37%, 35%, and 20% respectively).
Size and scope
This latest edition of UFI’s bi-annual industry survey was concluded in January 2024, and includes data from 419 companies in 61 countries and regions.
The study also includes outlooks and analysis for 19 focus countries and regions – Argentina, Australia, Brazil, China, Colombia, France, Germany, Greece, India, Italy, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, Thailand, the UAE, the UK, and the US – as well as five additional aggregated regional zones.
The full results can be downloaded here. The next UFI Global Exhibition Barometer survey will be conducted in June 2024.
The Melbourne Convention and Exhibition Trust (MCET), operators of the future Nyaal Banyul Geelong Convention and Event Centre, has unveiled the venue’s new brand.
The brand draws upon the name gifted by Wadawurrung Traditional Owners, Nyaal Banyul, meaning ‘open your eyes to the hills’. MCET has engaged with Wadawurrung Traditional Owners Aboriginal Corporation throughout the brand development process, creating a shared vision for the future venue.
Nyaal Banyul invites all who visit to seek a new perspective, through the shared knowledge and ideas events held at the venue foster, and experience the venue design influenced by Wadawurrung stories of Country. Nyaal Banyul invites people from around the world to connect and exchange transformative ideas, inspired by the waterfront landscape of Geelong/Djilang.
The brand mark, created by brand agency The Contenders, is influenced by the hills and layers of Country that come together to form an eye, symbolising enlightenment and perspective. It encourages a deeper appreciation and renewed viewpoint, through iconic, playful and bold symbology.
The colour palette reflects the ever-changing natural light of Sky Country that floods the region from sunrise/Pilk Purriyn, sunset/Tali-talik and into night/Murrkal.
Nyaal Banyul’s brand pays homage to the site’s history as a gathering place. For thousands of years, the Wadawurrung People have come together, to yarn, celebrate, share songs and dance, trade, make decisions, solve problems and pass on knowledge, aligning with the purpose of the future convention and event centre.
Pre- and post-event, attendees will have access to Australia’s best craft breweries, local wineries, farm gates and provedores, and a vibrant creative scene all on Nyaal Banyul’s doorstep.
Nyaal Banyul Geelong Convention and Event Centre is part of the Geelong City Deal, a collaborative partnership to transform Geelong and the Great Ocean Road by the Australian and Victorian Governments with the City of Greater Geelong.
Construction of the new centre is underway with completion and opening in 2026.
The Asia Pacific Incentives and Meetings Event (AIME) has revealed the theme and location for its 2024 Welcome Event on February 19, AIME Neon Carnival at Grazeland.
Grazeland is an outdoor foodie playground with an extensive array of bars and food stalls featuring the flavours of Melbourne’s multicultural population. For one night, this dining destination will be transformed into a neon playground exclusively for AIME Welcome Event attendees.
The Welcome Event will mark the opening of AIME 2024, which is expected to welcome 1,600 guests. Guests can expect interactive live entertainment, trending food, and unique drinks, alongside vibrant characters and numerous photo moments.
AIME’s event director, Silke Calder, said: “Let us inspire you! We are so excited to offer this colourful foodie haven for the business events industry to network, dance and have fun. Embrace the different, feel uplifted and find your event inspiration at AIME’s Neon Carnival.”
“While we are keeping some details under wraps, I can guarantee there will be food, drinks, dancing and a few surprises for those who stay till the end. Watch this space!”
Grazeland’s director John Forman added: “Food is at the heart of so many cultures, which is why food-driven events are the perfect setting for building connections while having fun. Grazeland’s multitude of stalls means we can customise menus for all needs, so every function can be as unique as this one…”
AIME 2024 will run February 19-24, 2024, at the Melbourne Convention and Exhibition Centre.
The Malaysian Association of Convention & Exhibition Organisers & Suppliers (MACEOS) signed a Memorandum of Understanding with Yayasan Hijau Malaysia – an agency under the Ministry of Natural Resources, Environment, and Climate Change – to drive sustainability forward in business events industry.
This signing took place at the Malaysia Business Events Awards and Gala Dinner last week.
The partnership will see the implementation of a series of sustainability awareness and training programmes for MACEOS members to equip them with the tools and knowledge needed to foster sustainability within the industry.
MACEOS’s president, Francis Teo, added: “To drive the agenda forward, we will align all our association’s activities around sustainability, and we expect our members to consciously implement sustainability efforts in all their business activities.”
MACEOS has also been on a journey with Jabatan Standards Malaysia to develop standards and regulate the industry. The standards were developed for three categories namely, (i) convention, exhibition centre and event space requirements; (ii) professional congress organiser requirements; and (iii) professional exhibition organiser requirements.
Teo said: “These standards will ensure quality benchmarks are in place to instil trust and confidence in our potential clients, enable us to strengthen Malaysia’s branding as a business events destination and allow us to expand into new markets globally.”
Teo went on to share about MACEOS’s upcoming signature event, BE in Sabah. Jointly organised by the MACEOS Sabah Chapter and Sabah International Convention Centre, the inaugural conference will be held from February 29 to March 1.
Langham Hospitality Group (LHG) welcomes Lawrence Ng as its new senior vice president – sales & marketing.
Stationed at the company’s corporate headquarters in Hong Kong, Ng will spearhead and orchestrate all sales and marketing endeavours globally while also serving on LHG’s executive committee.
As the former vice president of sales & marketing, Greater China at Marriott International, he brings a wealth of knowledge and insights to the intricacies of market dynamics and consumer preferences.
Daniella Foster has been appointed as vice chair of the Sustainable Hospitality Alliance (SHA).
The executive board member and global senior vice president of public affairs, market access and sustainability for Bayer’s Consumer Health Division joined the board as a trustee in May last year, and will now work alongside Wolfgang Neumann as vice chair, supporting SHA as it works towards implementing its new five-year strategy.
She has a background working across private and public sectors, from Hilton and Mars to the White House in the US, as well as experience in embedding sustainability into business models across the private and public sectors.
