What does recovery look like for the global incentive travel sector for 2022?
Following the initial positive traction in early 2021 with the advent of the vaccine, we’ve been knocked off course again with the onset of new variants. Programmes planned for late 2021 have now been pushed into 2022, causing even more congestion there.
As of late November in Europe, we’re in a precarious situation filled with uncertainty, with a stop/start momentum once again dominant. Many corporations have extended their work from home edict well into 2022, and this will definitely impact resumption of corporate travel and incentive trips.
Assuming case numbers stabilise as booster jabs are more widely administered, some programmes will certainly operate in 2022 but we’ll continue to see business events recover first locally, then nationally, then regionally. International travel will only revert to pre-pandemic levels in 2023/2024.
Meetings, incentives and events are already taking place in domestic contexts around the world, and this will continue with restrictions and interruptions likely for as long as variants persist.
Singapore, in particular, has played a leading role in allowing events to continue with Covid-19, providing realistic, workable guidelines to ensure stakeholder and delegate safety. In many ways, this is the way forward – managing and living with Covid – and Asian countries have shown great global leadership in demonstrating how this can be done.
How much has the pandemic changed the value organisations and travellers attach to incentive travel?
Scarcity drives value, and the value and appreciation of a travel reward has undoubtedly sky rocketed as a result of its scarcity.
As humans, being denied something makes us want it even more and travel, for most of us, has not been possible for 20 months or more, meaning that since we want it desperately, we yearn for it.
Travel has always been prized as part of a corporate reward and recognition programme, but it’s more prized than ever now and will play an even more effective role for corporations in ensuring that their associates are engaged and motivated.
What trends do you foresee in the incentive travel industry in the next few years?
As expected, there will be a focus on safety, and massive attention will be paid to travel risk management. There is also a rise in reluctance to commit and sign contracts due to the uncertainty of travel rules and restrictions that constantly change.
Domestic incentives, or motivation travel experiences in one’s own backyard, will still remain as top choice, alongside smaller groups of participants per trip, and the increased use of individual incentives.
There will also be preference for rural over urban, resorts over city hotels, and the great outdoors over metropolises.
What keeps you awake at night in relation to the pandemic, and its impact on incentive travel?
The biggest challenge is uncertainty. It was almost easier to deal with outright lockdowns, as you knew there was nothing you could do for a given amount of time. Uncertainty means you need to have a number of backup options available at any given moment.
I’m also concerned about building back better. I believe the pandemic has given us an opportunity to reset and I hope we take this opportunity to do so, guided by a clear vision for how things should be.
What is SITE doing to rebuild the incentive travel sector?
For the past 20 months our focus has been
entirely on our members. We’ve worked hard to keep them engaged and implemented initiatives to help fund their ongoing participation in the association.
Through SITE Foundation, we’ve extended our research docket significantly in the belief that data is vitally important for resumption. We’re in the midst of a serial piece entitled Corporate inSITEs, and have just embarked on a joint research project with Southern Methodist University in the US called Leadership inSITEs. Both of these will also contribute to getting the incentive travel engine started again.
We will continue to run association events, obviously respecting the protocols of the destinations where they take place, but also asking for additional measures to ensure the safety of all participants.
Frasers Hospitality will open its first property in Phnom Penh come October 2022, the first of three openings slated for Cambodia over the next few years.
By 2026, Frasers Hospitality will have three properties in Cambodia – the 88-room Capri by Fraser, Phnom Penh in October 2022; the 78-room Capri by Fraser, City Centre in 2024; and the 200-room Fraser Residence Sen Sok, Phnom Penh in 2026.
Tonya Khong, senior vice president, head of Asia-Pacific at Frasers Hospitality, said: “Our three properties will be operational in the next few years and ready to accommodate the return to travel, as well as the anticipated boost from regional events such as the 2023 Southeast Asian Games and the RCEP. Moving into Cambodia signals our long-term ambition to grow our presence in the country and South-east Asia.”
Both Capri by Fraser properties are located in the heart of the Cambodian capital, and only a five-minute drive from each other. Both properties will have a mix of hotel rooms, studio apartments and one-bedroom units, designed to cater to transient business travellers and mid-level executives on extended stays.
In the vicinity are banks, finance, real estate and pharmaceutical companies, as well as non-profit organisations. The properties are also within walking distance of government offices, embassies, malls and F&B outlets.
Guests can expect the hallmarks of the Capri by Fraser brand such as the Spin & Play concept, where they can utilise self-service laundrettes while having a go at video games on the latest consoles, and a 24-hour gymnasium. Another signature social space is The Den, a large communal and versatile space fitted out with the latest technology.
Meanwhile, Fraser Residence Phnom Penh is in Sen Sok, an up-and-coming district on the north-west fringes of the city centre. Slated to accommodate expatriates on extended stays, the serviced apartment is part of an integrated development that includes a retail mall, medical centre and an office tower. It is also close to amenities such as international schools, malls and a golf course, and a 15-min drive to the CBD and industrial parks.