Thailand Convention & Exhibition Bureau (TCEB) has recently intensified its marketing efforts, via the launch of campaigns, in China’s second- and third-tier cities.

Traditionally, TCEB’s marketing efforts were concentrated on first-tier cities such as Beijing, Shanghai and Guangzhou, but Nooch Homrossukhon, director of meeting and incentive promotion department at TCEB, said that she has seen a growing interest from other cities.
Citing examples, she said Thailand attracts direct selling companies from Shenzhen and Qingdao, and IT and finance companies from Hangzhou. As well, businesses in China, from third-tier cities including Suzhou, Xi’an, Chengdu and Nanjing, are growing tremendously and companies have travel budgets for incentives.

“Over the years, we have developed a Chinese client base and (cultivated) a good relationship with Chinese intermediaries, and this helps to bring back repeat business. (One example is) Infinitus (China) Company, a health firm focused on traditional Chinese medicine. The company will return to Thailand for the 14th time this year, and hold their event in Bangkok and Pattaya in May,” said Nooch. Around 8,000 delegates are expected, and as of press time, it will be China’s largest outbound incentive group to Thailand.
Aside from TCEB, the trade is putting in relevant efforts. For instance, Chiang Mai International Exhibition and Convention Centre’s marketing development and research manager, Kantarath Jirakittirath, said the four-year-old convention centre is targeting businesses from Beijing, Shanghai and Hangzhou due to direct air accessibility. She added that the facility was “planning to organise a fam trip for MICE organisers to Chiang Mai this year”.

On March 31, 2017, TCEB, together with allied Thai partners, kicked off Thailand’s MICE United IV campaign in Beijing, as well as launched the country’s brand campaign, Thailand CONNECT: Your Vibrant Journey to Business Success. Both campaigns were presented to more than 150 business event players at the Thailand CONNECT: China Business Events Road Show 2017.

Thailand’s MICE United IV, now in its fourth edition, features 10 alliances, two of which are new – Airport of Thailand Public Company (AOT) and King Power International Company. The two new partners contribute to the Thailand CONNECT Welcome Packages, through discounts and perks for business event delegates.

Another campaign, Thailand Big Thanks, which runs until December 31, 2017, is particularly popular with Chinese direct selling and multi-level marketing companies as it provides a financial subsidy of up to two million baht (US$58,055) for group sizes of at least 2,000 delegates and a minimum stay of three nights.

Nooch said: “The subsidy allows organisers to use the money to upgrade menus, or enhance the entertainment.”

Another campaign running until December 30, 2017, is the Meet Double Cities which offers a subvention of 100,000 baht per group of at least 200, and staying at least four nights in more than one destination.

“This campaign is to encourage groups to extend their events beyond Bangkok, for economic distribution to the regional level,” said Nooch.

Meanwhile, the Meet the Sustainable Way campaign provides a financial subsidy of up to 100,000 baht for events held at venues in Thailand that have been certified as Thailand MICE Venue Standard and/or meetings that incorporate CSR activities.

Caiyan Qin, assistant sales manager at Royal Cliff Hotels Group and Pattaya Exhibition and Convention Hall, said: “Subventions offered are important as MICE organisers are always asking for support. As other countries offer it, we stand to lose the group if there isn’t.”
Benjamin Krieg, general manager at Novotel Bangkok Sukhumvit 20, added: “Subventions will help attract repeat business. Thailand is good value. It is favoured by overseas business events organisers because you get good experiences for very good value.”
Sydney Yang, sales representative (China) for Sukosol Hotels said many corporate companies in China have been cutting their budgets since 2015 as company profits have dipped.

Regardless, he said: “Thailand is seen as an affordable and accessible destination. Subvention support makes the destination even more appealing. There are many beach destinations such as Pattaya, Phuket and Samui which interest the Chinese.”
Through these efforts, the bureau is targeting to grow Chinese business event arrivals by five per cent this year.

China has been the top international business events market for Thailand ever since it overtook India in 2013.

The millenial generation has been credited – or blamed, depending on which side you take – for many new business travel and event trends today, including the growing acceptance and demand for venues in design-driven hotels, properties that were often not built with events in mind.

Cvent, Inc. has reported a “marked increase in the number of planners looking to use design or boutique hotels – up 15 per cent in 2016 compared to 2015”, said Kevin Fliess, vice president of marketing for Cvent’s Hospitality Cloud.

“Gone are the days when traditional mass hotels won all the corporate business,” remarked Fliess, adding that clients use design hotels for various types of events such as meetings, conferences, conventions and educational seminars and workshops.

“Our data also reveals that 33 per cent of these bookings are for a duration of three days, and 26 per cent for one day,” he added.

Although Carlson Wagonlit Travel (CWT) does not track the use of design hotels by its clients – at least for now, due to the lack of sufficient critical mass to warrant such an effort, senior director, meeting and events for Asia-Pacific, Michael Chiay, told TTGmice that the trend is worth watching.

“There is definitely a rise in the use of design hotels for business events, and I believe this is a result of the growing presence of millenials in the workplace. They have a different motivation when attending meetings and events. And as a generation that will dominate the workforce demographic in the next few years and take on leadership roles in buying positions, you can expect to see them drive even greater use of quirky venues for business events,” said Chiay.

Joost de Meyer, chairman and CEO of US-based First Incentive Travel, agrees.
“The clientele is getting younger and this group does not want the big, corporate hotels. They prefer the smaller, trendy hotels that allow them to feel at home. This is why you will find that lobbies (of such hotels) resemble living rooms where guests can meet fellow guests,” said de Meyer.

A well-travelled society is also influencing the acceptance of design hotels as event venues. Gerhad Aicher, general manager of The Mira Hong Kong – a member of Design Hotels, a global network of properties with thought-provoking design and architecture, among other features – said: “As travellers get more experienced they become attracted to design-driven hotels, each with a unique identity reflecting their location which is often widely recognised as a hip and happening destination.”

Caitlin Flynn, director of sales and marketing with The Warehouse Hotel, Singapore – also a member of Design Hotels – said she is seeing “big demand” in non-traditional, creative industries such as media, fashion and technology, and clients are hosting product launches, industry networking parties and influencer marketing events at the hotel which was once a spice warehouse.

Another contributing factor, according to Chiay, is the growing popularity of lifestyle events. “Lifestyle and luxury events conducted by businesses that emphasise on experience and service are more likely to use design hotels, as their event objectives are in line with the promise and forte of such hotels.”

A serious matter
Can quirky hotels work for serious corporate events? Definitely, according to Chiay.
Citing an example, he said a client had chosen to launch his new London property at The Upper House in Hong Kong because the design hotel has a luxury, British vibe that resonated with the product. The event was conducted in the hotel lounge which had indoor and outdoor spaces, something Chiay said few other traditional hotels in Hong Kong offered.

Further driving home his point that “serious events can be delivered in a not too serious manner to encourage interaction” and to emphasise key messages, Chiay shared that a recent financial technology conference held at the Singapore Expo’s Max Atria turned a traditional conference room into “a very cool and laidback space with beanbags and other lively setups”.

“Now, I understand that the venue is not a design hotel, but this shows that how a serious event is presented depends on the attendee profile. In this case, the attendees were young entrpreneurs who needed to be engaged differently,” Chiay explained.

The allure of small, beautiful hotels
The flexibility and exclusivity of design hotels, made possible by their often smaller-than-usual size and independent management, have come up repeatedly as winning factors.
Fliess opined: “Design hotels have the advantage of being able to offer a very personal and dedicated service. At the same time, they can offer the wow factor when it comes to setting, aesthetics and ambience.”

It is easier to do a property buy-out with a smaller hotel, according to de Meyer who has also found that small-sized, high-end incentive groups take well to design hotels.
“It is typically small, luxury incentive groups that (go for design hotels) to reward their staff, not so much business (meetings),” observed Rosanna Leung, head of MICE & business development with Towa Tours Hong Kong.

The location of such hotels is a draw too. “Design hotels tend to be in upcoming new districts which could be undergoing (an exciting) revival programme, such as in areas like New York’s Meatpacking District,” de Meyer said.

Chiay agrees. “They are often in a less commercialised neighbourhood which is rich in local culture and history. This adds flavour to events,” he said.

He added: “Design hotels tend to offer facilities that set them apart from traditional hotels. For instance, in space-starved cities, new-age hotels have to find unique ways to present their facilities and thus you are more likely to find chic rooftop bars in a design hotel. They make great venues for corporate gatherings. Hong Kong, perhaps for this reason, is at the forefront in design hotel offerings.”

China, according to Chiay, said is now seeing a design hotel revolution, especially in the city fringes.

“Shanghai’s quieter, less developed Northern Bund is becoming rather hot for designer properties, like The Water House,” said Chiay, adding that attractive design hotels opening in cities unusual for business events will lead to a rise in corporate demand for such locations.

There is also cost savings to be had.

Jezz Goh, head of meeting and events with Pacific World Singapore, said: “Instead of going for luxury hotels, clients are now more inclined to (use) less expensive boutique-style properties that can enhance delegate experience through their unique (interiors and funishings). The small size of design hotels also often bring about a more exclusive experience.”

Chiay added that “design hotels are almost always luxurious but are priced competitively against similar high-end traditional hotels of international brands”.

When it is not a good fit
Of course, design hotels are not for everyone. Companies that take a more traditional view on meetings and events are unlikely to venture out with a quirky property, while space limitations in terms of guestroom inventory and meeting room capacity can cause planners with a more complex programme or larger group to turn away.

“Events with more intricate requirements and need careful setup are unlikely to go for a design hotel. A designer space can be restrictive, as opposed to blank canvases that are the typical hotel ballrooms,” said Goh.

Hotel policies play a part too, opined Fliess. “Some companies will stipulate use of hotels that satisfy a certain budget or grade, or are a certain distance from the city centre. Design hotels need to recognise that in these circumstances, they cannot compete with traditional business hotels,” he said.

The misperception that design hotels are pricey and “troublesome to manage in a normal contract” is also a hurdle, added Chiay.

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