Northstar

TWA 26 Oct 2010

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FEATURE www.travelweeklyweb.com But with the political problems in Thailand, their rates are not on the rise. Said Roger Haumueller, managing director, Asian Trails, "For Bangkok and Chiang Mai, they are definitely not on the rise. Every month we have new hotels opening in Bangkok whereas the demand has not picked up much. Chiang Mai also suffers a lot this year. Pattaya is doing well with the Russian market and the Andaman Region and Samui are pretty fine, so that there are some price increases expected." Evan Lewis, vice president communi- cations Accor Asia Pacific Evan Lewi s , vice pres ident communications Accor Asia Pacific is more optimistic, "Thailand is experiencing a strong recovery following the turmoil of 2009 that saw a retraction in demand due to political instability. Whilst the trading levels of hotels is still below that of 2008, business is returning and a solid high season is anticipated supported by a return of long haul leisure travellers." Thus we can see that rise in prices are not dampening demand, the upswing in hotel bookings is a 'blessing' for the industry that has been adversely affected by the economic situation in 2009. Said Rober t Bai ley, Abacus International President and CEO, "The economic crisis that has plagued the hotels seem to be firmly behind. We see a 60 percent growth in hotel bookings versus 2009. The growth spurts are particularly strong in Brunei, China, Hong Kong and South Korea. 2010 promises to be a www.travelweeklyweb.com record year for Abacus, we expect to exceed one million room nights in Asia alone." His view is seconded by Yap, "Global tourism is in general more optimistic and the Far East is still considered as an affordable destination. Bali always has that special appeal that attracts tourist; prices are still relatively low taking into account that they have suffered a number of years af ter the Bali bombing. Sri Lanka is a new trend, many have stayed away during the 'war' but with the present peaceful situation, it is not surprising that it has become the 'new kid on the block'. Indo China as an exotic destination is still 'undiscovered' for many and is rich with historical sites and heritage. Malaysia too has many plans from Tourism Malaysia and they are very aggressive in wanting to keep the numbers up. Most of these countries mentioned above, are still relatively good value for money even with the present pricing." Demand is still growing as there are many alternative destinations to choose from but demand can ebb at certain destinations when hotels go overboard with the rate increase. However demand is still up even though prices have increased. What about booking channels, is the Internet the best way to get good rates? The hotels abide by the rule that it is not necessarily the best way to get good rates. "It depends, it may seem so to many but most internet B to C portals practise taking things like breakfast and taxes out to have an at tractive price listed, while travel agents have many value- added inclusions. More and more travellers are open to web booking and this is the biggest threat for any traditional Tour Operators. Many travellers are also keen in DIY travelling arrangement and the best source will be internet and online provider. Easy, fast and can be cheap as well. However during peak season, internet prices are very high, without doubt." added Yap. Rates are expected to rise into 2011 as the economy gains ground in Asia-Pacific and the general trend is that travel in 2011 is on the increase. I think as long as the services, hardware and software of the hotel commen- surate with the value of the hotel price, it is reasonable... Yap Sook Ling, managing director of Asian Overland Services Tours & Travel "Yes we believe based on future demand and supply scenarios and market outlook, we are forecasting to see a continual rise in rates across most of the mature cities within which we operate," said Busato. However is it reasonable to expect rates to rise? Said Yap, "I think as long as the services, hardware and software of the hotel commensurate with the value of the hotel price, it is reasonable. Anyhow, guests are always looking for good hotels with the best services, i f there are no extra funds to invest into maintenance and training, the quality of hotels will only degenerate. For Malaysia as an example, we have never been a 'cheap' destination but prefer to be known as 'value for money' destination. Traditionally, there will be an increase every year but it is a reasonable increase. General ly, it is between US$5- US$10 per room, per night, which is quite small to compare with other destinations. I hope that when hotels make more profits with increased prices, they wi l l plough back a reasonable amount of money to the hotel, as one of the key problems of hotels in Asia is putting enough attention to maintenance of the rooms and building." The inaugural Amadeus survey on Asia Pacific hotel distribution trends shows that travel agents believe the ease of booking hotel inventory is on a near par with hotel price, when it comes to selecting accommodation for clients. Amadeus, revealed the research f inding s at the Web in Tr avel Conference. The survey examines travel agents' and travellers' perspec- tives on the hotel selection and booking process , and provides direct ion for br idging the g ap between agent s and hotel ier s . According to the hotel distribution research, travel agents continue to view price as a key consideration when selecting hotels. However, the ease of booking a hotel was also at the top of the list of criteria, with some markets listing it above price as their top priority. Brand loyalty was ranked the least important factor across the region. ■ TRAVELWEEKLY ASIA | 26 OCTOBER 2010 | 5

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