Asia/Singapore Thursday, 1st January 2026
Page 893

Over coffee with… David Peckinpaugh

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US demand for meetings and incentive travel is strong and continues to grow, according to David Peckinpaugh, president, Maritz Travel, based in Missouri. He shares with Caroline Boey his outlook on growth drivers and the sharing economy

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“I feel that education and relationships are at the core of the market. The more Asian destinations educate and build relationships with US buyers, the better the results.”

What is the current outlook on US meetings and incentive travel demand and what are key factors affecting travel locally and internationally?

The outlook for the US meetings and events industry continues to be strong. All metrics have rebounded to above what they were in 2007-2008 and we expect that this trend will continue for the next two years.

The key factors at play right now are the lack of supply, which is creating an issue with availability, and the ever-increasing rates with flat budgets. This is especially true in the US.

Internationally, the key factors playing into buying decision continue to be air lift/air fares, economic stability of the destination as well as health and safety.

How is the US presidential election impacting meetings and incentive travel demand?

A change in administration always leaves the potential for change.

The passing administration was very supportive of the travel industry as evidenced by the expansion of the visa waiver programme, improvement with TSA (Transportation Security Administration) and investments in organisations like Brand USA.

We will be diligently watching the ensuing administration’s approach and will be engaging our Meetings Mean Business Coalition accordingly.

In your view, will a Republican or Democratic win in the election be a better outcome for the meetings and incentive travel industry and why?

I don’t think party affiliation makes a difference. Rather, it will come down to each candidate’s views on the global economy and if they embrace policies that will spur growth or restrict it, including those on travel. I think both parties have, at times, demonstrated to be both a friend and a foe and it’s too early to tell where each currently falls. Stay tuned!

What can Asia expect from US meetings and incentive travel looking ahead? Which countries/cities in Asia are hot and why?

I think the APAC region will continue to experience steady growth in demand in the coming years. The investments made by governments and hotel companies have been unprecedented, and the quality and appeal of many existing and emerging destinations are on the rise.

I might be leaving out some but certainly Hong Kong, Macau, Singapore and Shanghai continue to be stars with the noted emergence of Malaysia and Vietnam.

What must suppliers and CVBs do to make Asia more competitive?

I feel that education and relationships are at the core of the market. The more Asian destinations educate and build relationships with US buyers, the better the results.

Working with airline partners to improve the travel experience and creating “edufams” for US buyers are critical steps.

Online (digital) information is also key, and should include accurate and current updates on health and safety issues.

It will also help for suppliers and CvBs to explore ways to insulate buyers from currency fluctuations and assist with tax issues, such as VAT for group organisers.

Finally, creativity is a great differentiator. The days of cut-and-paste proposals is a thing of the past and US buyers are looking for truly unique experiences for their attendees. That will put a lot of pressure on the supply chain from convention centres to hotels and DMCs.

With regard to Airbnb, Uber and other sharing economy services, what is your outlook for Asian corporate buying behaviour heading West? How should suppliers in Asia react to this development?

The impact of the shared economy on the meetings and incentives industry is minor at this time but we’d be foolish to ignore it. That’s why Experiment (a Maritz sister company) is working with Airbnb to help our clients – citywide associations primarily – with room block and history metrics.

Attendees will not only be shopping for hotels online but also for alternatives like Airbnb. This will impact hotel contracts, block performance and the financials of the events. It is important that Asian groups heading West have an awareness of this and measure the impact. Selecting the right meeting management firm, or PCO, to assist them in their event execution could be a way to avoid surprises.

Buffalo Tours launches MICE arm

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BANGKOK-BASED leisure specialist Buffalo Tours is leveraging its 22 years of destination management experience across Asia to court the corporate events market, with the establishment of a MICE division.

At a trade party last week to present the new Buffalo Events to its corporate clients and business partners, Sarah Randall, regional MICE manager of the division, told TTGmice e-Weekly that the business events specialisation was formed in response to rising demands from clients to provide such support, especially for events that require unique experiences and CSR elements.

Buffalo Events will focus on delivering teambuilding and incentive programmes and on providing corporate transfers and unique venues for dinners, meetings and other gatherings.

Attention will also be paid to connecting clients with sustainable tourism products and services.

In a press statement, Randall said: “Our team of experienced MICE staff is committed to providing excellent customer service and delivering bespoke tailored events that are on point for our clients’ needs, while maintaining our commitment to responsible tourism.

“With a wealth of experience in the region, Buffalo Events is excited to offer engaging and impactful events which fit client agendas but also have a positive effect on the community in which we operate.”

Matt Masson, managing director of Buffalo Tours, pointed out that corporate clients can benefit from the company’s “own operations across 11 countries in Asia” as well as partnership with ” a large volume of hotels, tours and venues (which offer) competitive rates”.

Deloitte University sets up regional institution at Amara Sanctuary Resort

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MICE Block at Amara Sanctuary Resort

LUXURY hotel Amara Sanctuary Resort, Sentosa has become the permanent base for Deloitte University’s first Asia-Pacific campus where Deloitte employees will receive enriching learning experiences.

Building upon the success of its flagship Deloitte University Leadership Center in Westlake, Texas, the US, the Deloitte University Asia Pacific (DU AP) campus will offer a tailored curriculum that suits this region’s business needs.

Albert Teo, CEO of Amara Holdings, revealed in a media statement that the hotel had undergone an enhancement exercise to rejuvenate its facilities in preparation for the Deloitte University appointment.

Teo said: “This is our first time providing a permanent base for a university. Although Amara Sanctuary had always been equipped with MICE facilities, we’ve spruced up the resort’s interiors and adapted our MICE offerings to meet the DU AP requirements (and) to transform the resort into an integrated ‘entrenched learning’ space where individuals can hone their leadership skills, network and socialise in an inspired, luxurious and relaxing setting.”

Renovation works had lasted six months and saw improvements made to the lobby and guestrooms while MICE equipment and network infrastructure were enhanced. More spaces were also added to encourage social networking, such as the extended Tier Bar, a new lounge and the newly renovated rooftop infinity poolside which now comes with increased seating capacity.

F&B offerings also received a shake up, with new and innovative menus now on the table at Shutters and Tier Bar.

Both DU AP’s appointment of the resort as training grounds and the refurbished hardware will serve to boost usage of the resort’s MICE facilities, according to Teo.

When asked if the resort’s special arrangement with the university would mean fewer opportunities for other events planners to use the property, Teo explained that “facilities are still being reserved on a first-come-first-served basis”.

Moreover, DU AP “is flexible in their approach as to the number of classes to be held and will make arrangements with Amara Sanctuary ahead of time”, he added.

Brexit spares impact on business travel and MICE into Asia for now

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GLOBAL stock markets may have been shaken by the Brexit vote last Thursday, but the state of business travel and MICE appears to have escaped unscathed despite worries of an impending financial crisis with the UK’s economic instability.

Leading global travel management companies told TTGmice e-Weekly that UK clients did not approach business travel and event plans with caution in the lead up to the historical Brexit vote on June 23, nor did they cancel or postpone any trips already made.

However, most opined that this is still early days.

A spokesperson with Carlson Wagonlit Travel said: “The vote has no immediate impact on CWT’s business in the UK or the EU. We will continue to monitor the situation as it evolves.”

Greg O’Neil, president – Asia-Pacific for BCD Travel, said: “Globally, we are preparing for some volatility – but at this time we are not adjusting annual projections for volume.”

He added: “We expect to see a conservative approach to internal travel and small meetings. Most of our clients are multinational, so their bookings are not isolated to the UK. Generally, our UK-based clients have been reluctant to share plans to curtail travel far in advance, so we may have to wait a few weeks to learn if that could happen.”

Also bracing for impact later is Linda Low, manager for strategic partnership & product marketing at Pacific World Singapore.

“We expect to see unscheduled business travel in the near term being held back, pending more clarity on the UK currency and economic prospect,” Low said.

Arokia Das, senior manager at Luxury Tours Malaysia, too, thinks a slowdown in corporate bookings is on the horizon, as companies will be cautious about spending and may wait until the economy and political situation stabilise.

And should demand for corporate meetings be impacted, O’Neil said small meetings would be first to be hit.

“Companies tend to drop small internal meetings first because those are planned closer to the time of the event and often can be (replaced) using virtual collaboration technology. Larger meetings typically include costly cancellation policies, so we expect them to proceed,” O’Neil explained.

However, he was quick to point out that as “summer is historically a bit slow for business travel”, any decline in corporate traffic now would likely be “independent of the Brexit vote”. What would happen is the usual summer slowdown occuring “a few weeks early”.

“By September, businesses often see a need to travel more to meet goals for growth, so we normally expect strong volume in Q4,” he added.

Offering a more optimistic view of the situation is HRS, whose spokesperson said that corporate travel is essential and will carry on, although UK clients will now, more than ever, seek cost-savings.

The spokesperson also suggested that the weakened pound might lead to increased inbound demand for the UK, as the cost of business trips and meetings will be lower.

MICE travel to Langkawi unlikely to be dented by new tax

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Overwater bungalows in Langkawi 

INBOUND agents are unfazed by the new tourism promotion fee which will be imposed on all tourists checking into hotels in Langkawi.

From July 1, domestic and international tourists will be charged an additional RM3 (US$0.73) per room per night in three- or four-star hotels and RM5 in a five-star property.

Arokia Das, senior manager at Luxury Tours Malaysia, said: “It will not affect MICE into Langkawi as we (agents) will either absorb the cost or include it into the quotation.”

Saini Vermeulen, executive director, Within Earth Holidays, likewise stated that the tax was an insignificant amount and “common practice” in destinations worldwide.

Agreeing, Adam Kamal, CEO of Olympik Holidays, said: “The amount is insignificant. Moreover, groups don’t stay long as Langkawi is usually a two- or three-night incentive destination.

“If the funds are properly channelled, it will make it easier to promote the destination.”

According to Mohd Rawi Abdul Hamid, Kedah state tourism committee chairman, “the collections would reduce Langkawi Municipal Council’s dependency on state funding to carry out projects such as beautification of the island and enhancements of public facilities and services”.

With around three million tourists to Langkawi annually, the new levy could translate to over RM5 million in tourism revenue (this year), he added.

UFI elects new chief

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CORRADO Peraboni, CEO of Fiera Milano, has been elected UFI president for 2018 by the Board of Directors at a board meeting during the recent UFI Open Seminar in Basel, Switzerland.

The UFI Presidential Trio for the 2016-2017 term now comprise Andreas Gruchow (Deutsche Messe), president 2016-2017; Peraboni, incoming president; Sergey Alexeev (ExpoForum-International), outgoing president.

They will assume these roles at the conclusion of the 83rd UFI Annual Congress, which runs from November 9 to 12, 2016 in Shanghai.

According to a media statement from UFI, Peraboni has played a very active role within UFI for many years. He assumed the position of vice-chair of the European Chapter more than fifteen years ago before becoming chair from 2004 to 2008, and has been a member of the UFI Executive Committee since 2004.

His extensive knowledge of the industry and dedication to UFI over the years has proved instrumental in enabling the association to become the global voice of the exhibition industry that it is today.

“I am honoured by this appointment,” said Peraboni.
“UFI is a true global brand of quality in the trade fair sector and I will do everything I can to strengthen it even further. The exhibition sector is seeing continual, rapid change. The current transition stage deserves great attention because our future depends on it, and I think this future holds at least one constant: physical fairs will continue to be an irreplaceable channel for promotion and internationalisation, especially for SMEs, because they guarantee maximum advantages in terms of cost-benefit.

“Together with my colleagues and the UFI team, we will do our best to launch this message to the business community and public institutions”.

SITE top incentive award welcomes applications

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APPLICATIONS are now open for the 2016 Crystal Awards programme by SITE, which aims to recognise exceptional incentive travel events.

The Awards is open to companies and organisations worldwide that are involved in the sales, planning, marketing and/or operations of incentive travel events, and they need not be a SITE member.

Events held between May 1 2015 and April 30 2016 are eligible.

Entries will be evaluated by an independent panel of judges in areas including return on investment, creativity, mechanics, sustainability, cost management and overcoming implementation challenges.

The following categories are available for entry:
• Distinctive Destination: Best Destination-Based Incentive Travel Program
• Excellence in Incentive Travel: North America
• Excellence in Incentive Travel: Latin America & Caribbean
• Excellence in Incentive Travel: Europe
• Excellence in Incentive Travel: Asia Pacific
• Excellence in Incentive Travel: Africa/Middle East
• Best Business Solutions: Most Effective Incentive Marketing Campaign
• Responsible Experiences: Most Impactful Effort Toward Corporate Social Responsibility as Part of an Incentive Travel Program or Most Environmentally Sustainable Incentive Program

To submit an application, fill out the online application form (https://app.reviewr.com/s1/site/crystalawards).

Applicants will be notified about their status in August and winners will be announced at the Crystal Awards Ceremony, sponsored by IMEX Group, during the SITE Global Conference, November 5-7 in Panama.

Corporate travel trends that shape the world

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CORPORATE travel has long been an important cornerstone of the travel industry, signifying a large revenue stream for its industry players. The boon and bane of the industry is dependent on a multitude of factors, the most significant being oil prices and the safety of travel.

However, as we progress towards an increasingly global economy, corporate travel has become inevitable. As such, it is vital for organisations to equip themselves on the latest corporate travel trends in order to make informed decisions before embarking on their next destination.

Mild turbulence

In light of the economic slowdown in 2016, the Global Business Travel Association (GBTA) predicts a 12 per cent growth in total business travel spend in 2016, a decrease from the 14.2 per cent experienced in 2015 .

However, the Asia-Pacific region is experiencing a boom. China is expected to overtake the US and clinch pole position in terms of business travel spending in the 2016. Closer to home, Singapore is set to register a higher growth for its business Ttavel and MICE industry. The Singapore Tourism Board has also decided to extend its In Singapore Incentives & Rewards (INSPIRE) programme to Europe and North America in a bid to attract the anticipated rise in international outbound travel.

Business or pleasure?

The rise of Bleisure is the latest trend to take hold of this industry. The portmanteau Bleisure, refers to the mixing of business with leisure. As a perk to business travellers, companies have recognised the benefits of accommodating employees to travel with their families during corporate trips, at the expense of the employee. Coupled with the increasing use of technology to manage their business travel, employees are beginning to better integrate their work-lives, instead of merely trying to achieve a balance of two separate entities.

Duty-free not

Conventionally, an employer is legally obliged to educate their staff on the inherent risks in business travel. However, the rise of Bleisure travel has blurred the distinction between work and leisure, raising new issues in the area of Workplace Safety and Health (WSH). Until companies can strike a balance between Bleisure and WSH, they will have to be mindful in giving their employees more leeway.

Technology take-off

Technology has disrupted every aspect of our lives, including business travel. Today’s business travellers have the world at their fingertips; once their itinerary is booked, they are able to access a plethora of information and real-time updates that will help make their trip a seamless experience. Along with the rise of Bleisure, technology allows business travellers to be more productive, ranging from the ability to make real-time expense claims, to immediately reacting to unforeseeable circumstances at their destinations.

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Bertrand Saillet is the general manager of FCM Travel Solutions, responsible for the South-east Asia region. As a veteran in the travel and technology industry, Saillet brings with him a wealth of extensive knowledge and experience. He is tasked to take FCM to the 3.0 travel management sphere – making sure the company delivers amazing travel experience and meeting the needs of all travellers across all generations.

Prior to joining the FCM family, Saillet held various management positions with Amadeus.

This article is written by Bertrand Saillet

Work to enhance links around Adelaide Riverbank to flow into next phase

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Artist impression of Festival Plaza’s Art Space

REDEVELOPMENT of the Adelaide Riverbank precinct will enter its next phase with A$220 million (US$165.5 million) works on the 25,000m2 Festival Plaza commencing in August.

The full project is aimed at making the Riverbank region “the most connected and easily accessible business, events and entertainment precinct in Australia”.

In line with this, the ensuing phase will involve the expansion of existing green space and result in promenades that connect major city streets to the plaza, the Adelaide Oval footbridge and through to the Adelaide Convention Centre.

South Australian premier, Jay Weatherill, imagines the upgrades will see the plaza become “a unique world-class hub for the arts, culture, tourism and entertainment”.

“(The Festival Plaza) will be defined by a number of key places including the new square, the northern promenade, integration with King William Street, the Art Space Plaza, a reimagining of Station Road and a new (entrance) to Adelaide Railway Station,” he said.

Following these developments, two private projects will get underway – a A$430 million office building, retail area and car park upgrade by the Walker Corporation due for completion in 2020 and the A$300 million Skycity Adelaide Casino expansion set to commence end-2017.

Commenting on the overall city redevelopment and its impact on MICE activity, Damien Kitto, CEO of Adelaide Convention Bureau, said: “It eliminates travel time and its associated costs for event planners while providing an exceptionally attractive and full package offering for delegates.”

All Riverbank facilities as well as 3,500 hotel rooms are situated within five minutes’ walk of the Adelaide Convention Centre which sits in the heart of the Riverbank Precinct.

Taipei Marriott Hotel flashes hot summer deals

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A SUMMER Meeting Package is now on offer at the 320-room Taipei Marriott Hotel.

The deal includes a night’s stay in a Classic Room which comes with views of the iconic Taipei 101 building, international breakfast at the Garden Kitchen restaurant and a full-day meeting package.

Rates begin from US$265++ per person.

Promotion ends September 30, 2016.

Email catering@taipeimarriott.com.tw for reservations.

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