Aventri announces new CEO

January 9, 2020

Meeting and event technology software provider, Aventri, has appointed Jim Sharpe as CEO, taking over from Oni Chukwu who has been at the helm for six years.

Chukwu in the meantime, has been elevated to executive chairman, and will remain on the board for Aventri.

Sharpe brings extensive executive experience in high-growth technology-enabled businesses. Prior to joining Aventri, Sharpe spent six years as general manager and managing director at Gerson Lehrman Group (GLG), a platform for connecting top professionals for sharing expertise. He managed the firm’s largest and most profitable business unit, Financial Services, greatly expanding the user base toward revenue north of $200 million.

Prior to GLG, Sharpe was CEO of Standard Purification, a private equity-backed manufacturing business where he led the growth, expansion and successful exit to a strategic buyer.

Riots fail to strip Hong Kong of her business hub status

By Caroline Boey

January 7, 2020

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Hong-Kong-skyline — Hong Kong is not out of the woods yet

Negotiated hotel rates to hold
“No major impact” on Informa Markets’ B2B events the past months
HRS projects growth for business travel to Hong Kong this year

Despite months of ongoing protests and companies enforcing stricter travel policies on Hong Kong – to the point where some MNCs have banned business trips there, confidence in the city and its status as a vital business centre remains, according to corporate travel managers and suppliers alike.

With contracts for air and hotel programmes locked in place for anywhere between one and more years, one corporate travel manager in the pharmaceuticals sector told TTGmice that “there is no change” and “no renegotiation of hotel rates”.

“In the early days (Hong Kong protests started in June 2019), one meeting was evacuated and the hotel waived the cancellation charge,” he recalled, but added that “business fallout has been limited”.

He continued: “We will go back to Hong Kong and it will be business as usual. Our programmes start in April, and depending on what RFPs we are negotiating, we will do what is right by the company. That means we will negotiate harder and work with our consultants if the market generally is soft.”

For Informa Markets – an organiser of numerous consumer and tradeshows in Hong Kong – none of its events were cancelled, according to Benson Tang, executive director, corporate travel.

While consumer show attendance did drop some 10 to 15 per cent because of MTR closures and resulting traffic congestion, there was no major impact on Informa Markets’ B2B events, he noted.

Tang commented that compared to leisure travel, where numbers were down some 50 per cent and average occupancy was “significantly affected”, five-star hotels in the central exhibition and convention district were less impacted, and “softened maybe between 10 and 20 per cent”.

“Business is still ongoing. Business is not running away from Hong Kong and I do not see a drop in confidence,” he observed, pointing to the successful secondary listing of Alibaba in Hong Kong at the end of November 2019.

“There may be isolated cases (of event cancellations), but I do not see a trend where businesses are considering doing less in Hong Kong or moving their regional headquarters in China. The doors remain open,” Tang noted.

Dumoulin: believes that international corporate travel will soon resume business trips to Hong Kong

Summarising 2019’s performance, Frederic Dumoulin, Asia-Pacific senior vice president of Hotel Solutions at HRS, said there was a downturn in the cumulative volume “we would typically see from clients in the second half of the year”. But he noted the impact of the downturn was mitigated by the relatively strong first six months of 2019.

Dumoulin added: “The crisis has presented the seedlings of opportunity for both the hotels and corporates we work with. Hotels, facing uncertain forecasts, are much more willing to engage in conversation, be flexible about room rates, and consider RFPs from a larger number of corporates. The vast majority of our clients that travel to Hong Kong still plan to do so in 2020, and this environment has served to open doors of communication on rates and amenities that may not have been available in years gone by.”

He opined: “Frankly, hotels are more concerned about trade issues impacting both global metrics and China/US specifically. Hoteliers are hopeful there will be an end to the protests in early-2020, and they are positioning themselves to be ready to welcome back the traditional volume of corporate travellers as soon as possible.

Hence, HRS does not see any wide-scale reduction in projected volume for international clients going to Hong Kong in 2020. “In fact, we are projecting growth,” Dumoulin stated.

At press time, CWT’s general manager, South-east Asia and Hong Kong, Sim Kian Peng, said the TMC still sensed caution among companies in allowing business travel to Hong Kong, and booking meetings and events in the city.

Sim commented: “For 2020, companies are in a wait-and-see mode – but given Hong Kong’s importance as a business destination, there is a high degree of hope that tensions will de-escalate.

Expressing confidence in the new Hong Kong Tourism Board leadership, Tang told TTGmice the NTO and industry partners have been working together on a “revival plan”, but launching the programme was a matter of timing it right to maximise the investment.

For now, the 2020 outlook for Hong Kong remains cautiously optimistic.

CTC charts expansion plan across the Asia-Pacific

By Caroline Boey

January 7, 2020

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CTC screenshot — A screenshot from the CTC website

Corporate Travel Community (CTC) – an exclusive corporate travel buyers-only club created nine months ago – has reached 500 members in Asia as of 2019, but is continuing its outreach effort at the upcoming SATTE 2020 tradeshow (January 8 to 10) in New Delhi, India.

During the show, SATTE and CTC have partnered to stage a Corporate Travel Day on January 9, with some 50 corporate travel managers already signed up. Forum sessions will include discussions on NDC, outlook on accommodation outlook, and technology innovations.

CTC also made its debut in Sydney last year, held in conjunction with the CAPA Australia Pacific Aviation & Corporate Travel Summit. The event attracted some 320 participants.

For its Australasia expansion, CTC will be creating events in Brisbane, Adelaide, Melbourne and Perth, as well as Auckland and Christchurch this year, Benson Tang, CTC’s executive director, revealed.

CTC is part of Informa Markets, which organises travel events, and it has been increasing the presence of corporate travel buyers at events such as Vietnam’s ITE HCMC – attended by some 40 locally-based participants in September – and 83 Singapore-based and international participants at the CAPA Asia Aviation & Corporate Travel Summit in Singapore.

Other corporate travel initiatives CTC has launched include the training of more than 100 corporate travel managers on the Route Capacity Analyser (RCA) system, which they can use for free for a year to manage their company’s air programme. RCA is based on IATA’s findings and benchmarked against CAPA – Centre for Aviation.

“With better data, an MNC which spends say US$100 million a year globally, can get a better airline deal. A one per cent airline discount translates into a US$1 million saving,” Tang pointed out, adding that it would make sense for corporates with such huge spends to consider investing in RCA in the future.

Tang shared that a number of banks with aviation investments in Singapore, Tokyo, Seoul, Hong Kong, Beijing and Shanghai were using RCA. He continued: “Data is power. Data can now offer corporate travel managers a better solution, which was not possible in the past, and also helps them grow in their career.”

With the corporate travel industry worth some US$1.5 trillion annually – according to GBTA (Global Business Travel Association) – Tang believes there is room for more corporate travel associations to serve the industry’s needs.

Getting ready for Muslim MICE

By TTGmice

January 7, 2020

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Event planners from Muslim-majority countries are urging destinations and event suppliers to quickly broaden their understanding of Muslim travellers if they wish to benefit from the burgeoning segment.

According to the Mastercard-CrescentRating Global Muslim Travel Index 2018, South-east Asia will welcome more than 18 million Muslim visitors by 2020 – accounting for 15 per cent of total visitor arrivals in the region.

Buyers at IT&CMA 2019 said that necessities for Muslim MICE groups go beyond halal-certified food.

A buyer from Dubai who has requested anonymity, said a place to pray in between meetings, and a meeting or conference programme that provisions for prayer breaks on Friday are important as well.

These needs are echoed by Willy Sihombing, CEO of Sedona Holidays Touri & Travel based in Medan, Indonesia. He added that some Indonesian Muslims even prefer staying in a Syariah hotel should there be such an option in the event destination.

“Otherwise, the minimum requirements are halal food and guestrooms with the Qibla sign (indicating the direction to pray),” Willy said.

While hotels are generally more aware of Muslim needs, convention centres (in non-Muslim destinations) have some catching up to do, opined Andre Christian, managing director of Talenta Tour, Malang, Indonesia.

When asked which destinations have done well in welcoming events with majority Muslim participants, Willy and Christian named Japan and South Korea.

Willy said both destinations have been “very serious” about attracting Muslim travellers.

“There are more and more halal-certified restaurants, and you can easily find prayer rooms at public places such as the airport as well as mosques in the city,” he said.

Muslims currently make up of about 20 per cent of Japan’s total arrivals, and most tend to visit for leisure. Regardless, Susan Maria Ong, MICE director, Asia-Pacific, Japan National Tourism Organization, said Japan’s keenness on capturing the Muslim MICE segment is evident, having opened an office in Kuala Lumpur in March 2017. The office has published a Muslim guidebook detailing restaurants and hotels in commonly visited locations in the country.

Taiwan, which has stepped up efforts to draw Muslim travellers, was recently ranked third in the world for being Muslim-friendly, up from the fifth position in 2017.

Jerchin Lee, executive director, Taiwan External Trade Development Council, said: “Taiwan has done a lot to promote itself as a Muslim-friendly country; we have everything from restaurants and halal vending machines to prayer rooms in convention centres.”

Lee shared that Taiwan welcomed 60 per cent more Muslim leisure and MICE travellers in 2018 than the previous year. Recently, a 1,300-pax incentive group from an auto parts company in Indonesia visited Taiwan, and Lee said they felt “very comfortable” when travelling around the island.

“Muslims make up about one-fifth of the global population, and we are keen to capture the market, especially outbound travellers from Indonesia, Malaysia and the Middle East,” he noted.

Another destination that has made significant progress in this capability is Thailand, according to Christian. He found Thailand to be a convenient destination for his travellers and one where Muslim-friendly hotels can be found in the popular downtown Pratunam area.

This year, Thailand’s Ministry of Sports and Tourism hosted a series of halal-tourism training sessions with tour operators, tourism-related government and private agencies. The Institute of Asian Studies at Chulalongkorn University has also been recruited to research on specific market demands.

Senior lecturer Ismah Osman of Malaysia’s Universiti Teknologi Mara pointed to Chiang Mai as an example of how a destination can become more Muslim-friendly. The province is preening itself as a prime Muslim MICE hub, offering 12 Muslim-owned hotels.

The Thailand Halal Tourism Association is carrying out training with a range of tourism-related organisations. Halal food advisors are also on hand to concoct more creative menus at events and conferences.

“Halal food doesn’t have to be just chicken biryani and oxtail soup. We need halal catering companies to join hands with MICE centres. Caterers need to understand clearly how to respect halal food and understand the availability of varied options,” remarked Korakod Kanongnuch, president of Thailand Halal Tourism Association.

Products are being developed in Chiang Mai to appeal to the Muslim MICE market. This includes Ping Luang village, home to a Thai Muslim community. The community-based tourism project will welcome guests this year, and boasts a bamboo meeting room as well as a range of community-driven activities – such as halal cooking classes, traditional weaving and fishing – aimed at incentive and teambuilding groups.

This article is written by Mimi Hudoyo, Rachel AJ Lee and Marissa Carruthers

Japan’s return to whaling could hurt growing whale-watching business: tour operators

By Kathryn Wortley

January 7, 2020

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Whale-watching-Okinawa-Japan-2019-January-10 — Japan’s return to commercial whaling comes at a time when the whale-watching business is gaining traction; whale-watching in Okinawa pictured

Japan’s thriving whale watching industry faces upset following the country’s resumption of commercial whaling after a 31-year ban, according to tour group operators.

Tokyo withdrew from the International Whaling Commission and began whaling in its coastal waters (up to 22km from land) on July 1, in a controversial move that has sparked criticism from activists and anti-whaling countries.

Japan’s return to commercial whaling comes at a time when the whale-watching business is gaining traction; whale-watching in Okinawa pictured

The move is at odds with Japan’s whale-watching industry, which is estimated to have grown 20 per cent annually since it began in the 1980s, according to the International Fund for Animal Welfare (IFAW). In 2015, whale watching across the country generated US$8 million, of which 20 per cent came from overseas visitors, including corporate incentive groups.

Tour operators fear that Japan’s resumption of commercial whaling threatens not only the whale watching industry but also wider tourism in departure ports.

Tomoyo Yamada of South to South in Okinawa’s Urasoe City told TTG Asia that any drop in group numbers would adversely impact tourism in the city.

“Whale watching is a winter activity so marine tourism operators here rely on it during the off season,” he said.

Similarly, tour operators in Rausu, a fishing village on the island of Hokkaido, fear that the move will hurt business, at a time when the whale watching business is beginning to gain traction and business from overseas groups for the town’s five operators is growing year on year.

Masato Hasegawa, captain of Shiretoko Nature Cruise, told TTG Asia that 10 per cent of his bookings hail from overseas groups from Singapore, Hong Kong, the Philippines, Hawaii and Germany, but he fears for the future.

“I am worried about the reaction of customers who are sensitive to whaling. We expect that the number of reservations from current groups will fall, particularly those from Europe and the US,” Hasegawa said.

He added that it is “necessary to train English-speaking staff to respond effectively to questions about Japan’s commercial whaling from overseas customers in the future”.

Patrick Ramage, IFAW’s director of marine conservation, said: “Coastal whaling threatens to kill the geese that literally lay the golden eggs. (Japan’s commercial whaling) puts Japanese whalers on a collision course with their country’s economic interests and committed businesspeople in coastal communities who are benefiting from this new relationship with whales.”

Stable air prices amid global uncertainty: AMEX GBT

By TTGmice

January 7, 2020

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Boarding-pass — Annual air price analysis predicts only minor rise in air fares globally due to increased volatility and slowing capacity

The Air Monitor 2020 – published by American Express Global Business Travel (GBT) – predicts that political and economic uncertainty across the globe will contribute to a continued slowdown in demand growth for air travel in 2020.

Despite rising costs for oil, labour and infrastructure, fierce competition in the sector indicates that airlines will have minimal scope to raise fares.

AMEX GBT’s air price analysis predicts minor rise in airfares globally due to increased volatility and slowing capacity

Joakim Johansson, vice president, global business consulting at GBT, said: “While uncertainty looks to be a key theme in the coming year, in this report we see several factors likely to affect buyers of business air travel in 2020, such as airline retailing strategies, growing fare segmentation and increased focus on sustainability.

“With a range of changeable elements impacting corporate air programmes, it is important for buyers to equip themselves with the best available insights, data and advice, to support successful outcomes for their organisations.”

Airfare rate movements by region
North America: Trade tensions continue to cause drag on economic growth across the continent, also impacting the Canadian economy. A large capacity increase means airfares within North America are predicted to rise by only 1.5% across both business and economy. Fares to European destinations could also increase, due to a reduction in capacity from Norwegian Air. However, Brexit uncertainty has the potential to dampen any rises. Meanwhile, political volatility in South America looks likely to cause a fall in fares of around 1%.

Europe: The Monitor forecasts that fares will remain flat, against a background of sluggish growth, with prices rising by less than 1% on flights within Europe. Airlines are under pressure on a number of fronts, with concerns about over-capacity, strong competition in the open aviation area, high regulatory costs and inefficient infrastructure. The flygskam (‘flight-shame’) phenomenon has been most prevalent in Europe, driving increasing competition from rail routes.

Asia-Pacific: The region remains the growth engine of the global economy, but the gradual slowdown predicted in last year’s monitor will continue in 2020. Fares on flights within Asia are expected to rise by 2.9% in business class, and 1.8% in economy. The grounding of India’s Jet Airways has removed a significant chunk of capacity from the region, and this will see modest upward pressure on some fares.

Other air industry trends for 2020
Fare segmentation continues to grow as a way for carriers to simultaneously meet the different needs and budgets of their passengers and respond to the competitive challenge posed by low-cost carriers (LCCs).

Fare segmentation (‘unbundling’) is not limited to economy fares: Emirates recently became the first airline to offer unbundled business class fares, and other carriers may follow suit. The availability of cheaper business class seats could open up new opportunities for corporations in their negotiations with carriers.

Low-cost, longhaul carriers have previously looked poised to have a major impact. However, except for those providing inter-regional services in Asia Pacific, longhaul LLCs have largely floundered. It’s a different story on shorthaul routes where traditional LCCs continue to thrive, putting pressure on mainline carriers.

Sustainability comes to the fore
Airlines, regulators and travellers are taking a growing interest in sustainable travel. Many of the world’s largest airlines have already introduced, or are planning to introduce, carbon emission offsets or biofuel surcharges. Governments, especially in Europe, have introduced proposals to raise taxes on aviation, while reducing tax rates for alternative modes of transportation.

‘Nimble’ air contracting can give corporations the agility they need to manage their air programmes effectively in an unpredictable world. The Air Monitor 2020 includes an overview of building a nimble air programme from the GBT Global Business Consulting air practice team.

For comprehensive data and analysis of the conditions impacting airfares over the coming year, insights into airfare trends including fare segmentation, sustainability, airline retailing strategies and an introduction to nimble air programmes, download the Air Monitor 2020 here.

Travelogix boosts STA Travel’s travel management capability with partnership extension

By Karen Yue

January 7, 2020

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Data management specialist Travelogix has updated its partnership agreement with STA Travel for 2020 and beyond, which will come with enhanced data support and an upgraded Analytix suite that grants STA business travel account managers access to new services to drive management and company policy decisions by highlighting industry trends, current spend and cost-saving opportunities.

Chris Lewis, founder and CEO of Travelogix, told TTGmice that “while STA will continue to receive the same fantastic levels of service provided by our product and operations teams, the new agreement will see us increase the volume of the data we handle for STA in order to support the impressive growth that they have achieved to date and have forecasted for the next three years”.

Lewis: Travelogix will provide STA business travel account managers with on-demand access to real-time data

Lewis said: “The agreement also includes a complete upgrade to the newest version of the Analytix suite which is due to be released in 1Q2020, following 2.5 years of investment and development.”

The next-generation AnalytixX2 comes with a host of additional functionalities including multiple user dashboards, responsive criteria selections for quicker report creation, smart filters, ‘slice and dice’ facilities, a brand new DataMine application and a complete upgrade to both DataShare and DataPublisher. It is supported by a new database engine that can handle larger and more extensible data sets.

“The upgrade to DataShare will make sharing data faster and more secure, while the new DataPublisher will make the creation of data publications much more efficient and will deliver much more detailed and visually impressive data publications,” he added.

While Ellen Rayner, director of Travel Management (UK) at STA Travel, was not available for an interview, she said in a press statement: “Effective data management and analysis is a critical process which helps us reach our targets because it allows us to continuously monitor travel changes and trends.”

The Travelogix data management suite will enable STA Travel to analyse key performance data such as spend by department or individual traveller, and multi-level drill-down views show immediate trends with reports that can be shared instantly with colleagues.

Outrigger Laguna Phuket Beach Resort grows its event venue offering

By TTGmice

January 7, 2020

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The Outrigger Laguna Phuket Beach Resort, a TCEB-certified MICE venue in Laguna Phuket, has opened its newest standalone meeting and events centre.

The two-storey complex has six function rooms amounting to 1,000m² of space. The largest venue is the 448m² Similan Ballroom on the first floor, which is pillarless and boasts six-metre-high ceilings and movable partition walls. It is good for 330 guests theatre-style, or 290 in a banquet setting.

Three smaller breakout rooms are on the second floor, with the largest being the 80m² Tongfah and can hold a maximum of 70 people theatre-style. Regardless of chosen space, the entire complex is equipped with the latest audiovisual technology and complimentary high-speed Wi-Fi.

Events can also make use of a spacious pre-function area and VIP lounge, while a private entrance to the left of the resort lobby will be appreciated by event planners needing privacy for VIP guests.

Meanwhile, there are other four meeting venues ensconced within the resort’s main building, comprising the 716m² Andaman Ballroom and three smaller spaces.

Green events will be central to Outrigger Laguna Phuket Beach Resort’s MICE offering. The property has removed all single-use plastics, and depending on the objectives of the meeting, guests have the option of participating in CSR initiatives. For instance, Outrigger has a long-term community relationship programme with Baan Khok Wat Mai primary school nearby.

Park Regis Singapore names new GM

By TTGmice

January 7, 2020

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Henry Lim has been appointed general manager of Park Regis Singapore.

In his new role, Lim will be responsible for overseeing the hotel’s business performance and spearheading key initiatives.

The hospitality veteran brings with him over three decades of experience in hotel and apartment operations, product innovation, portfolio expansion, talent development and owner relations.

His previous stints include roles at several international hotel chains including Sheraton, Hilton, Regent, Shangri-La, Crowne Plaza; and serviced apartment brands such as the Ascott and Oakwood; in countries like China, Japan, South Korea, Myanmar, the Philippines, Thailand and Singapore.

Nannucci joins Shangri-La’s Mactan Resort & Spa, Cebu as GM

By TTGmice

January 3, 2020

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Christian Nannucci has been named the new general manager of Shangri-La’s Mactan Resort & Spa, Cebu.

The Italian native has 25 years of hospitality experience, with an extensive background in hotel operations and sales. Nannucci’s career has taken him to some of the world’s top cities, including London, Paris, Abu Dhabi, and most recently, Kuala Lumpur.

Aventri announces new CEO

Riots fail to strip Hong Kong of her business hub status

CTC charts expansion plan across the Asia-Pacific

Getting ready for Muslim MICE

Japan’s return to whaling could hurt growing whale-watching business: tour operators

Stable air prices amid global uncertainty: AMEX GBT

Travelogix boosts STA Travel’s travel management capability with partnership extension

Outrigger Laguna Phuket Beach Resort grows its event venue offering

Park Regis Singapore names new GM

Nannucci joins Shangri-La’s Mactan Resort & Spa, Cebu as GM

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