Hotels & Culinary Asia-March April 2015

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How International Hospitality Enterprises Encourages More Direct Bookings

By Doug Kennedy, Kennedy Network Training & Columnist HCA

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I n T h e P a g e s 4 Hotel Marketing Tips For Better Managing 800...

8 Expedia’s Hong Kong bookings skyrocketed 658%...

10 HOFEX Brings You 5 New Highlights in May 2015!

12 How Indian Tourism Can Be Increasingly Incredible

23 Hotel Expo 2015 set to capture hospitality’s growing demand in Asia –Pacific 28 Changi Airport crosses 54-million passenger mark...

30 Business travel in China continues to grow

34 What will 2015 bring for Chinese tourism in the US?

38 Luxury player Chic Outlet Shopping joins IT&CM China 2015 for the first time

Like most hotel companies, International Hospitality Enterprises is looking to reduce the costs of customer acquisition by encouraging more direct bookings. IHE, which operates 7 upscale and luxury hotels in Puerto Rico under flags such as Marriott’s Renaissance and Courtyard, Hilton’s Doubletree, and BEST WESTERN as well as 3 independents, works hard to foster direct relationships with its guests. “We strongly value our OTA relationships and work closely with all of the major providers,” says Peter Hopgood, Vice President of Sales & Marketing, “Yet we also do all we can to encourage our frontline colleagues to convert more direct bookings.”

Unlike most hotel companies, IHE still maintains its own dedicated hotel reservations teams at each location, even though most brands have encouraged managers to forward calls to CRO. “We have found that many callers ask directly to speak with in-house reservations,” says Hopgood, “So we have actually increased our on-site staffing in recent years. We refer to them as Tele-Sales agents to emphasize that their role is more sales than administrative.” Besides fielding phone inquiries, Tele-Sales agents at IHE also provide personalized responses for all email inquiries. “We recognized that many guests prefer to send their inquiries via email instead of calling, for whatever reason, so last year we decided to encourage more inquiries by posting the biographical profiles of each of our Tele-Sales agents to foster personalized connections with guests who have common interests. This has not only improved our conversion, but we also find guests like to email their questions prior to arrival,” added Hopgood who noted that most of their hotels are in the top rankings at TripAdvisor.

IHE also invests heavily in the proper training and incentives for its Tele-Sales representatives.

“We have definitely found that the Hotel Sales quest program has given our teams the contemporary tools they need to convert callers of today who have already researched heavily online prior to calling. Doug has trained them to ask just the right line of questioning to determine what they need to hear to make a commitment.” All IHE agents are also on an incentive program that rewards their efforts to convert callers and to upsell to higher-rated rooms and suites.

40 Tradition meets cake: sweet congratulations at Ambiente 2015 44 48 49 50

Besides focusing on voice reservations, IHE has also trained and incentivized its front desk guest reception staff to convince in-house guests to book directly next time. They have provided the G Hotel Kelawai opens on 16 Feb 2015 staff with business cards that can be used to invite them to contact the GSA directly next time Be My Host: an international observatory on the Ho.Re. for future reservations. “We also recognize that the front desk teams also play an important Ca. industry role in profit optimization,” said Hopgood. “The KTN training has reinforced the tools they need to take advantage of sales opportunities from upselling to capturing more walk-ins and ITE & MICE Hong Kong 2015 Wyndham Hotel Group Acquires Dolce Hotels & Resorts return reservations.” Recently IHE looking at implementing a per-call incentive for after-hours bookings converted by its front desk colleagues.

52 ProWein: Wine retail channel trends

EDITORIAL: Reny, Sarvjit, Vishwapreet & Amrita (India), Anna (Sweden), Mike (UK), Liza (Singapore), Upi (Indonesia), Ying & Adrian (China), Arvi (Australia). Columnist: Carolyn Childs, (MyTravelResearch.com); Doug Kennedy (Kennedy Network Training) Public Relations Director: Winnie. Advisor: Rajiv Sanghavi. Design, Art & Web Development: Diamond Infomedia. Publisher: Milinia Inc. Founded by: Late Mr N.S. Kanwar.

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Published, printed, & owned by Vishwapreet Kaur on behalf of Milinia Inc. at , D-182, PR House, Anand Vihar, 110092, New Delhi, India and printed by her at Technical Press, D-182/C, Anand Vihar, 110092, New Delhi, India.

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Hotels & Culinary ASIA | March-April 2015 | 3

Hotel Marketing Tips For Better Managing 800 Numbers

By Doug Kennedy, Kennedy Network Training & Columnist, HCA - For full service hotels, have separate 800 numbers for revenue generating outlets such as restaurants, spa, golf and/or ski calls. These numbers can bypass the reservations or phone operators and bring callers straight to the person who can assist. Having separate numbers also allows you to track activity.

- Avoid having too many 800 numbers. While some hotels are still using only a single 800 number, a few others have so many 800 numbers that it is difficult to manage and track ROI. Generally, having more than a dozen creates information overload.

While much of the focus of hotel marketing these days is on managing electronic channels, there is still a significant amount of business coming in via voice channels. What’s more, with the interplay of voice and electronic channels many who search online call to book, while others who call end up booking online. Even those who search and then book exclusively online often call just to reconfirm that the reservation came through. Therefore it is important for hotel marketers to effectively manage their 800 numbers.

Doug Kennedy While much of the focus of hotel marketing these days is on managing electronic channels, there is still a significant amount of business coming in via voice channels. What’s more, with the interplay of voice and electronic channels many who search online call to book, while others who call end up booking online. Even those who search and then book exclusively online often call just to reconfirm that the reservation came through.

Therefore it is important for hotel marketers to effectively manage their 800 numbers. Here are some tips.

origins of calls, which helps for marketing purposes, and the peak times of day and days of week, which helps for staffing. Others will also provide you with a web-based call recording of the actual calls, which provide an excellent tool for training, coaching and also for verifying guest honesty. The costs of inbound 800 access through such providers is not much more than what most hotels are already paying if they are using a traditional phone company.

- Still other companies are offering long distance services that integrate with a CRM or lead tracking tool, allowing your inbound reservations and hotel sales department staff to turn calls into leads, attaching the recordings to the customer record and allowing the staff to generate a follow-up action step on their task list. (Contact me directly if you would like more details on companies that are offering this type of upgraded long distance service.)

- Move beyond having just one “legacy” 800 number. Many hotels still fixate on having one traditional 800 number, which is often a vanity number that allows guests to dial by letters that spell out the hotel name. Yet with mobile searches soon to exceed desktop searches, more guests simply click to call versus dialing anyway. It is better to have several different 800 numbers that can allow you to track calls generated by different channels, such as website, print, paid search, etc…

- Post your 800 number prominently on your website. Too many hotels hide their phone numbers in a small font size that is difficult to read at the bottom of the page, or have a “click here” button that you have to press to display the 800 number.

Instead, post your 800 number prominently to encourage direct bookings. While there is certainly a cost to field a call versus a website booking, it is still far less than the commission you might have to pay to an OTA or other third party.

Also, for some famous “legacy” properties there are what I call “cyber squatters” who will purchase paid advertising listing your hotel name and a prominently displayed 800 number in an effort to syphon off business that they will then intercept and book for you while charging back a travel agent commission.

- If you do have a vanity number, be sure to also post the numerical version as some mobile phone keypads no longer show the letters on the keys.

Harness new innovations in 800 number tracking.

One question I frequently hear my clients ask is if they are able to keep their same inbound 800 numbers if they change carriers. Many feel locked-in to their current provider out of a fear of the unknown.

According to all of the providers I have spoken to, you can “port over” an 800 number to a new carrier much in the same way you can with your mobile phone number when you change providers. (I recommend checking with the carrier you are switching to for a confirmation on their process.)

- Have a separate 800 number that appears in mobile search ads. One reason why the conversion might appear to be so low from mobile searches is that many guests are simply pressing the number to auto-dial the hotel instead of booking the reservation on their device. By having a separate 800 number just for mobile search ads you can better track the ROI on these channels.

- These days there are numerous companies that provide detailed tracking of inbound 800 traffic.

Most all carriers will tell you information about the geographic

Some charge a fee, but the ones I recommend do not. When I searched online I found three related articles posted by the FCC with more details.

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Understand that you own your 800 numbers, not your phone company.

IATA Premium Traffic Monitor

Overcoming China’s tourism growing pains Now more than ever, it is critical for brands to be prepared, as Chinese tourism is here to stay. By 2020, the number of mainland Chinese traveling abroad each year will nearly double to 200 million.

In recent years, many luxury brands, retailers, malls and department stores have seen a wave of Chinese tourist-shoppers unlike any before. Motivated by easier and longer visas, lower prices, the prestige of shopping abroad, and better service and selection, Chinese tourists have become a regular sight from Ginza to Beverly Hills, Bond Street to Madison Avenue.

But alongside the clear opportunity (and rising sales), many, if not most, brands have had to face a new challenge: the unique behavior and demands of these tourist-shoppers.

Growth so far this year in premium and economy class air travel has equalized. As a result, there has been no further increase in premium’s share of total traffic, which could suppress growth in premium yields and revenues.

Key points: - Growth in international air passengers rose 3.6% in October compared to a year ago. This is in line with growth year-to-date, and stronger than the September rise of 2.3%. Premium passenger numbers were up at a slower rate (2.9%) in October than economy class passenger numbers (3.7%); - Growth so far this year in premium and economy class air travel has equalized. As a result, there has been no further increase in premium’s share of total traffic, which could suppress growth in premium yields and revenues; - Several markets showed improvement in October compared to a year ago.

The within Far East market recorded a stronger rise in October, up 2.9%, compared to the trend so far this year (0.4%). Trade in emerging Asia has been growing solidly over recent months, which has provided a boost to business related air travel; - In addition, despite the recent weakening of the Eurozone economy, air travel within the region rose 4.7% in October year-on-year, almost a percentage point above the trend growth so far this year; - The outlook for international air travel remains positive overall, but recent slowdown in major economies like China and the Eurozone could place downward pressure on demand in coming months; - Moreover, although growth in world trade has been supportive of businessrelated air travel over recent months, a lack of improvement in business confidence since mid-2014 suggests further gains in international trade could be limited.

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Having only joined the global travel club in a meaningful way over the past decade, mainland Chinese tourists range from seasoned, independent pros to newcomers on budget-priced group packages, straddling a wide educational and cultural spectrum. Now more than ever, it is critical for brands to be prepared, as Chinese tourism is here to stay. By 2020, the number of mainland Chinese traveling abroad each year will nearly double to 200 million.

Regardless of the inevitable headaches, the upshot for retailers is clear -- Chinese tourists currently allocate around one-third of their total travel budget to shopping (triple that of the French). In 2014, Chinese outbound travelers spent an estimated $155 billion abroad, much of it on luxury goods, health and beauty products, and consumer electronics.

Being prepared to receive and serve Chinese tourist-shoppers doesn’t have to be a big production, and -- despite the tone of some media coverage -Chinese tourists are far from a monolithic group. Each Chinese traveler is different, and serving them requires the same nuanced approach any luxury brand should be taking to every customer anyway.

One requirement that does apply to every Chinese tourist is patience. Sales staff should be prepared to explain aspects of the brand story and history to shoppers -- in Mandarin when possible -- and guide the shopper down the path to purchase without condescending. For brands lacking Mandarin speakers, it’s always helpful to create Chinese-language pamphlets or brochures and keep them on hand at all times.

Patience is also a virtue when dealing with more challenging Chinese tourists or tour guides, who may demand discounts or other perks. Calmly and patiently explaining your policies, and perhaps offering an alternative brandappropriate incentive, is an effective way to defuse awkward situations and ensure a face-saving outcome.

Despite nightmare articles suggesting otherwise, Chinese tourists are gradually getting over their “growing pains” and becoming global travelers in much the same way as the Japanese, Korean, and even American tourists who preceded them. By remaining patient and understanding, brands can avoid tough situations and make a customer for life, whether that customer is a travel newcomer or sophisticate.

Expedia’s Hong Kong bookings skyrocketed 658% in 2014 Accommodation is always an important travel consideration and Hong Kongers surveyed feel that when it comes to choosing a hotel location is the most significant factor (80%), followed by price (72%), free Wi-Fi (65%) and bathroom hygiene (42%).

Hong Kong people are embracing online travel agencies with Expedia recording a 658% increase in bookings during 2014. But while travel booking are on the increase, 64% Hong Kongers feel that limited annual leave allocations will affect their ability to enjoy long-haul travel in 2015.

The findings come from a survey commissioned by Expedia to uncover the 2015 travel aspirations of Hong Kong people.

The survey found that in 2015 Japan will again be the most popular travel destination for Hong Kong people.

Short-haul destinations are forecast to be the most popular across the board with Japan in the top spot followed by Taiwan, Thailand and South Korea.

In terms of travel frequency and spending, Expedia’s 2014 sales report and the survey found that:

· In 2014 Hong Kong people travelled 1.7 times per year · In 2015 Hong Kong people intend to travel an average of 2.6 times per person · In 2014 each traveller spent HKD10,732 per trip (inclusive of airfare and hotel) · In 2015 Hong Kong people intend to spend up to HKD HKD12,400 per trip · The majority of travellers purchase travel 1-2 months prior to departure The biggest travel concern for Hong Kong people surveyed was their prohibiting annual leave allocation.

Around 64% of people think that they don’t receive enough annual leave and around 79% think that their lack of annual leave restricts their ability to plan a long-haul trip.

The majority of people surveyed felt that they should be entitled to 22 days of annual vacation.

Accommodation is always an

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important travel consideration and Hong Kongers surveyed feel that when it comes to choosing a hotel location is the most significant factor (80%), followed by price (72%), free Wi-Fi (65%) and bathroom hygiene (42%).

When it comes to travel companions, Hong Kongers prefer to travel with their ‘other half ’ (59%) followed by friends (40%) and parents (35%). Travelling with parents is popular with 42% of those aged 35-44 are considering travelling with their parents in 2015.

In 2015 Expedia can expect to see a significant increase in Hong Kong people choosing to fly with low cost carriers (LCCs). In 2014 nearly 30% of travellers booked flights with a LCC and 86% of respondents said that they are likely to fly with an LCC in 2015. Further, 74% of respondents said they would book their LCC flight with an online travel company which shows a boost

of confidence in both LCCs and online travel booking platforms that is sure to benefit the local travel industry.

Expedia Hong Kong Marketing Manager, June Tsang said: “Our 2014 results are very encouraging with a better than expected performance. Even more encouraging is the recent survey results showing that in 2015 there will be an increase in travel products booked through online travel agencies.”

“To cater for this growing demand Expedia.com.hk will introduce more travel promotions, offer more choices of hotels and airlines, and increase the variety of LCCs available as a priority. The feedback on our recently launched tablet app has also been very strong and we will continue to invest in the development of this technology to make booking with Expedia.com.hk even more convenient.”

HOFEX Brings You 5 New Highlights in May 2015!

HOFEX 2015 – the leading food and hospitality tradeshow in Asia to be held from 6 – 9 May 2015 at Hong Kong Convention and Exhibition Centre - is launching 5 new highlights this year to provide a more comprehensive, value-adding and exciting experience for industry players. Coupled with over 2,400 local and international companies showcasing the latest F&B products, catering equipment and hospitality technology, HOFEX 2015 is a prestigious sourcing and networking event you cannot afford to miss!

Please pre-register at www.hofex.com/register now to get your buyer’s badge!

Hong Kong Café of the Year: In addition to the highly-anticipated Grand Barista Championship, a new competition for coffee and food pairing will also be held at Bean2Cup @ HOFEX. Contestants have to showcase their knowledge and creativity in coffee brewing as well as coffee and food pairing. The highly sought-after title of the first ‘Hong Kong Café of the Year’ will be garnered by the café of which barista obtains the highest final score in the competitions.

Meat @ HOFEX – First Prime Meat Tradeshow in Asia:

ACE Awards – Asian Catering Equipment Award: Foodservice Consultants Society International (FCSI) has teamed up with HOFEX to organise the first Asian Catering Equipment Awards to pay tribute to the talented designers and producers of kitchen equipment. Selected products will be judged by renowned chefs, F&B Directors of hotels and restaurant chains and industry experts alike, and the winning products will be showcased at Hall 1E during the show days.

Over 80 meat suppliers from UK, US, Japan, Spain, Denmark, Poland, Hungary, Wales, Scotland and etc. will showcase their top-notch meat products in the newlyexpanded Hall 5E. In addition to the 4th Spanish Ham Slicing Competition, a series of seminars and workshops will be led by specialist and experts on topics such as meatpie making, sausage making, Japanese Wagyu cutting and food safety on meat handling.

The First Butchery Skills Challenge in Hong Kong: To enhance the butchery knowledge and skills in Asia, Hong Kong International Culinary Classics (HKICC), a WACS (World Association of Chefs Societies) endorsed culinary competition, has debuted Butchery Skills Challenge, which allows the audience to see butchers break up carcasses up front and gain exposure to special skills, cuts and merchandising techniques.

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Whisky @ HOFEX: The newly-added section in ‘Wine & Spirits @ HOFEX’ will present a wide range of premium whisky produced from Scotland, Japan and Canada. The organiser will also invite experts in the field to guide you through a sensory adventure of wine tasting and appreciation.

Sneak Peek at HOFEX 2015 Exhibits!

Product: Meyer Natural Angus Beef Exhibitor: SUTHERLAND CO LTD

Product: JURA Fully-Automatic Coffee Machine – GIGA X3C Exhibitor: JURA

Product: Cornerstone - Own Wine Range Exhibitor: CORNERSTONE DISTRIBUTION (HK) LTD

Product: Spanish Iberian Hams Montesano Exhibitor: MONTESANO EXTREMADURA, S.A.

Product: Vitamix Blender Exhibitor: WALTON POSSESION LTD

Product: Champagne Tarlant Reserve Brut NV (RP:93) Exhibitor: SENS WINE CELLAR LTD

Product: CT Express Combi Oven Exhibitor: ALTO-SHAAM INC

Product: Pasta-Spaghetti Exhibitor: MUTLU MAKARNACILIK SAN VE TIC A.S.

Product: Power Plus Blast Chiller Freezer Exhibitor: FRIULINOX ALI SPA

Product: Prosciutto di Parma Black Label Exhibitor: ELI PROSCIUTTI SPA Hotels & Culinary ASIA | March-April 2015 | 11

How Indian Tourism Can Be Increasingly Incredible?

by Carolyn Childs

a tourist with new visas on arrival available for people from many countries.

It has a clear strategic focus on areas of strength such as medical, wellness, luxury and heritage tourism.

Its ‘Incredible India’ campaign is both highly emotive and has been given the chance to grow and evolve over more than 12 years. Thus the government has avoided the trap of reinventing the wheel, choosing instead to capitalise on the brand equity it has already built.

N

o longer a slumbering giant, Incredible India is thoughtfully attracting varied tourism markets with an increasingly sophisticated marketing strategy. But there’s always room for more ‘incredibleness’

What are the drivers of increasing tourism to India?

I’m feeling guilty. Since returning from Australia Business Week in India in mid January I’ve written a lot about how Australia can profit from the source market opportunity that India represents.

But I didn’t join the trade mission for that reason. Our purpose was to extend the reach of our business into India by connecting with the visitor economy there. We’ve always conceived of our business as a global one – after all Bron and I have conducted research in more than 40 countries for clients everywhere. Coming under the auspices of Australia’s largest-ever trade mission represented an unprecedented opportunity to position our business for success. So now it’s time to put something back by looking at how India could grow her tourism faster.

India will be building from a strong foundation As I thought about it, it seemed hard. Actually, India is doing a pretty good job of tourism already. According to the Indian Brand Equity Foundation, India ranks 13th out of 184 countries for the contribution that tourism makes to its GDP. The tourism sector will become more important in the future. The IBEF study quotes WTTC research that says between 2014 and 2024 tourism in India is forecast to grow at 6.4% per annum compared to a world average of 4.2%.

It is easing its VISA processes to make it easier to visit as 12 | March-April 2015 | Hotels & Culinary ASIA

Its latest iteration has been segmented into a domestic version (Go Beyond) and an international version ‘Find what you seek’. The thinking behind the campaigns appears powerful. The government recognises the importance of domestic tourism and the need to ‘spread the love’ across more locations as the market matures.

In the international campaign, it recognises that people want to come to India for many reasons and many different types of experience.

Golden Temple, Amritsar (Punjab) India

It needs to broaden the appeal of its brand assets, without diluting them..

However on deconstructing the campaign assets my feeling is that, whilst it showcases many types of experience, the iconography and the talent still seem to focus very much on one type of traveller. India doesn’t put its target customer profile into the public domain, but the traveller shown is what Canada (who has one of my favourite segmentation tools) would classify as the Authentic Explorer.

This is a great segment for India and constitutes around 8-12% of the market in some of its main inbound markets like the UK, USA etc., However, by reaching out to a segment like CTC’s Cultural explorers (who want the history but want to be less deeply embedded in the current day country) or to Nature Lovers – India has the potential to double or treble its potential reach with many of its existing branding and communications assets. These groups would probably find images such as those boarding a bus with

President House in New Delhi, India, at night

local people a bit confronting. It simply requires a greater focus on the experiences and less on immersion.

The same would be true for targeting luxury travellers.

Where these travellers and Authentic Explorers would overlap would be in the focus on unique and tailor-made experiences. Although those experiences themselves might differ. A couple that struck me from my visit that might actually appeal to both with a bit of tweaking: • Whilst I had a business meeting, my fellow cultural stream delegates were taken on a private tour of the National Museum in Delhi and given a special tour of the jewellery collection. The feedback from fellow delegates (including men who freely admitted that jewellery under normal circumstances was not their most motivating experience) was that this was a truly amazing experience.

• Similarly, CSMVS is a pioneering museum in Mumbai which has really turned around its visitation.

Again, as trade delegates we got a ‘behind the scenes’ tour of their workshops and the privilege of seeing them capture the work of traditional craftsmen. I think tours like this could make a significant commercial contribution to the work of the museum. Including curated content around it on their website would be a powerful marketing tool.

It can better leverage its fans to do the heavy lifting on tourism marketing One under-potentiated asset for the industry are its advocates both within India and beyond it. It has an

impressive marketing campaign and a country whose growing middle class are highly adept at social media. Yet I noticed relatively little attempt to use social media to drive conversations about the country on the Indian Tourism Board’s website (or elsewhere). Initiatives like wifi hotspots at key locations or viewpoints can drive inspiration to consider India afresh, but also in triggering a more active planning behaviour. Building engagement via social media is also very important in moving India up the search rankings.

If you already know you want to go to India that might not matter, but if you are searching by experiences then this again puts India in front of people who may not be considering it or only doing so as part of a ‘long list’

It can speed up or expand its sector focus a little There are also some specific sectors that could do with a greater focus in driving tourism. Firstly, the cruise industry. Indian tourism is beginning to embrace the cruise industry and we think this is an area that has real

potential for India both coastal and river-cruising (at the right times of year). I’d urge them to move this up the list as cruising provides a great way to give visitors a ‘taster’ of India (and encourage repeat visitation).

A fast-developing trend in cruising is ‘cruise plus’- combining cruising with land-based experiences.

Pursuing these type of opportunities should be high on India’s agenda.

The second is the business extender market India’s economic success is also bring a flood of business travellers to the country who can be encouraged to stay and enjoy the destination. Visit Britain has been a pioneer in recognising the economic value of ‘Business Extenders’ – especially those from countries where visa processes are a barrier to selection like China and (before the application of sanctions) Russia.

Encouraging business extenders at the time of visa application to extend their stay is a common theme and needs to target both the traveller and the corporation. The wish of extending was very common in our delegation and I am sure many other business travellers feel the same way.

Hotels & Culinary ASIA | March-April 2015 | 13

Lansdowne, Uttranchal, India

(Easing visa restrictions for business visitors would also be a good incentive to more such trips.)

Wise investment on the ground is needed – and now is a great time to do it Changes in India’s Corporate Social Responsibility (CSR) laws now require businesses earning more than $100m to put 2-3% of their pre-tax profit into CSR. This is potentially creating an opportunity for cultural and heritage institutions to maintain India’s mind-boggling array of cultural locations and artefacts. I see two major opportunities for tourism here.

The first is expanding the network of community-based tourism opportunities. This sits nicely within the CSR framework as it meets other needs beyond tourism in areas like economic sustainability and capacity-building.

Indeed, as such initiatives compete against broader health and social agendas for support this ‘triple bottom line’ benefit is important.

But an observation that both I and other delegates on my stream with a tourism background made, is that many places have a ‘fabric first, interpretation later’ mentality.

Whilst preservation of these amazing assets is vital, building in interpretation, visitor management practices and practical details like toilets from the beginning will secure the future of these assets and make them viable and self-supporting from an early date (which again will 14 | March-April 2015 | Hotels & Culinary ASIA

make them attractive from a CSR perspective). Many cultural sites in India are still active as places of pilgrimage – just one fort in Rajasthan has to face 1.5 million visitors over one three-day period each year. We also heard that the marble at the Taj Mahal is being damaged by being ‘loved to death’. But closing or restricting access to sites that have previously been open is damaging to visitor engagement. Intelligent site management including different interpretation paths either by theme or time schedule. For example, for many visitors especially those from emerging markets a single photo or selfie) might be enough so routing them to a great viewpoint with simple interpretation may dramatically increase the carrying capacity of a location. So taking this 360° view from the beginning actually enhances the cultural work undertaken – and provides opportunities to build engagement and support for conservation from happy visitors.

“India is oozing with rich heritage and experiences,” says New Delhi based Stuart Rees of the Austrade (Australian Trade Commission).

“We hope to assist India maximise it’s appeal in the international tourism market by introducing new approaches from Australia that are designed to work at both home and abroad.”

For any tourism destination a critical question is often whether to focus on a ‘drivers’ strategy (identifying what makes people want to come) or a ‘barriers’ strategy (overcoming the challenges to visitation). In the case of India, I think both are important but in different ways.

In consumer marketing drivers should be foremost, but in policy, product development and consumer advocacy I think India has to deal with its ‘Elephants in the Room’ – the factors which prevent those who would otherwise fall in love with this amazing country from discovering it at all. I’ll focus on these in my next blog piece.

To engage Chinese consumers, go for the gut However, it’s not just luxury brands that are getting in on the Chinese New Year action. Destination restaurants, too, have “gone for the gut” to attract China’s international tourist-shoppers in Europe and the US.

For the better part of a decade, most major luxury brands have used the Lunar New Year holiday as an opportunity to engage Chinese consumers through localized, limitededition items. However, owing to plummeting luxury consumption within mainland China - which has only been worsened by the ongoing anti-corruption crackdown - and a decidedly more low-key turn among a growing number of urban consumers, the red-and-gold dragonthemed Ferraris of 2012 are a far more difficult sell in 2015.

As CLA previously pointed out, this year more luxury brands have opted instead for subdued “red envelope” campaigns, and those that are creating limited-edition items are doing so in a more subtle way. Despite a wellpublicized online backlash to its Chinese New Year scarf, Burberry showed admirable restraint in its tasteful sheepthemed “Lunar New Year” display at its Bond Street store, indicating that brands can be low-touch and effective in their holiday marketing.

However, it’s not just luxury brands that are getting in on the Chinese New Year action. Destination restaurants,

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too, have “gone for the gut” to attract China’s international touristshoppers in Europe and the US. (An easier sell, given the central importance of food in Chinese culture, particularly around the holidays.) An example is London’s Hakkasan - which operates branches in cities like New York, Dubai, and Las Vegas - which is currently running a Chinese New Year “Wishing Tree and Festive Feast.” Comprising a nine-dish menu and “wishing tree” activity (in which guests are invited to write new year’s wishes on special ribbons that are hung throughout the restaurant), Hakkasan infuses Chinese cultural elements rather than awkwardly shoehorning them in. Sister restaurant HKK is also holding a 10-course “Culinary Journey Through China” this month,

inspired by the cuisines of a range of Chinese provinces, which engage guests via professionally designed one-off menus they are encouraged to take home after the meal.

Like afternoon tea - which has become a major selling point among Chinese tourists at shopping and hotel destinations in Europe and the US - themed culinary efforts like those launched by Hakkasan and HKK reflect the kinds of tailored gestures that China’s affluent traveling consumer actually appreciates (and spends on). While everyone can see a flashy Year of the Dragon Ferrari, gold Year of the Rabbit Tiffany necklace, or Year of the Sheep Panerai, cuisine is both private and highly culturally resonant, giving upscale restaurants worldwide an edge amid China’s current “stealth wealth” climate.

THAIFEX – WORLD OF FOOD ASIA: BIGGER, FOCUSED AND IMPROVED The comprehensive F&B exhibition for serious industry players

T

he finishing touches are being made to THAIFEX – World of Food Asia, returning in May 2015 with a more comprehensive, more focused programme for the F&B industry.

Bigger

THAIFEX – World of Food Asia 2015 has increased the exhibition area by 15%, now covering 70,000 sqm over four halls.

Building on the success of previous editions, international and local participation is expected to grow by more than 10%. More than 35,000 18 | March-April 2015 | Hotels & Culinary ASIA

visitors will be making their way to THAIFEX – World of Food Asia to see what 1,500 exhibitors, representing 35 countries, are bringing to Southeast Asia. With a showcase of over 34 country and regional pavilions, and THAIFEX – World of Food Asia’s collaboration with the 3rd Partner Country – Turkey, visitors will undoubtedly find the right partners to grow their business.

Under the umbrella of THAIFEX – World of Food Asia, the organizers will also be hosting approximately 300 exhibitors for World of Coffee & Tea, World of FoodService and for World of Seafood.

fine food companies will be focusing on confectionery, flour, pasta, beef products amongst others.

Focused The F&B industry covers varied areas and sectors. A strong line-up of supporting programmes provide a focused approach amidst the diverse segments of the F&B industry.

Global Chefs Challenge: THAIFEX – World of Food Asia will be hosting the culinary world’s most prestigious competition – The Worldchefs Global Chef Challenges. Visitors can expect a remarkable display of expertise as chefs compete in three categories – the Global Chefs, the Global Pastry Chefs and the Hans Bueschkens Young Chefs Challenge.

Expect nothing but the best as chefs vie for the opportunity to represent their countries at the Worldchefs Congress 2016 in Athens.

Thailand Ultimate Chef Challenge: Held in the new wing of THAIFEX – World of Food Asia, this annual competition is a favourite with visitors. Employing an open kitchen concept, all challenges are held in full view of spectators, and is bound to enhance the sensory experience and encourage creativity.

Asian Food Franchising Forum: With an illustrious panel of speakers, this forum brings franchisors, franchisees, licensees, and entrepreneurs together for an intensive session on the latest developments and opportunities in the food franchise industry.

THAIFEX – World of Food Asia remains committed to inviting the best of the best to be part of this annual industry gathering. New country groups – Germany, Mexico and Turkey – bring their finest to Asia. Germany, represented by Ministry of Agriculture, will be bringing agricultural produce unique to the German culture, while Mexico, led by Mexico’s Commission of the Ministry

of Agriculture will be focusing on processed food. Turkey, being the 3rd Partner Country, will showcase both fine food and seafood products.

Its rich aquaculture will feature companies with seafood products of Mediterranean species and freshwater farming varieties, and the

Boncafe Training Sessions: Coffee professionals can look forward to training sessions with trainers from the Academy, who will be holding training sessions during THAIFEX – World of Food Asia.

Celebrity Coffee Bar: Visitors are in for a treat as the most talented and creative baristas from around Asia gather at the Celebrity Coffee Bar. Be part of the fun and laughter while

Hotels & Culinary ASIA | March-April 2015 | 19

being inspired by the creative techniques and fragrant brews.

Out of the Box by La Marzocco: A special one-day event, visitors can enjoy live music, international key-note speakers, fragrant brews and more. This popular event has already been held in Stockholm, Athens, Berkeley, Milan and now, Bangkok!

SCAE Certified Coffee Trainings: Food safety and high preparation standards inspire consumer confidence. SCAE trainers will be holding training sessions to educate participants on the SCAE standards, and share how they contribute to and maintain coffee excellence around the world.

Improved THAIFEX – World of Food Asia is proud to introduce THAIFEX, the official exhibition app. THAIFEX is designed to be the savvy visitor’s exhibition assistant.

It is fully loaded with the complete exhibition directory, along with convenient categories that only include relevant exhibitors. The “Favourite” function also makes it easier for visitors to narrow down the exhibitors they want to visit.

“The lateral growth in the number of exhibitors and hall space, and the vertical growth in the depth of our supporting programs is a testament to the incredible level of the confidence the industry has in this show as an important trade event.

THAIFEX-World of Food Asia has successfully created an optimal business platform for opportunities within Thailand, as well as the international market. We are certain that the diversity in programmes will allow both exhibitors and visitors to find countless opportunities to network and build new partnerships.” says Michael Dreyer, Vice President Asia Pacific, Koelnmesse Pte Ltd. THAIFEX-World of Food Asia 2015 will return to IMPACT Exhibiton and Convention Center from 20 to 24 May 2015.

For more information on THAIFEXWorld of Food Asia 2015, please visit www.worldoffoodasia.com 20 | March-April 2015 | Hotels & Culinary ASIA

Air fares, the advent of “seamless” travel and social media: The changing face of the global travel industry WTCE, 14 - 16th April, Hamburg Messe, Hamburg

Passenger comfort, convenience, exclusive menus, advanced entertainment and a general increase in onboard services available are just some of the main trends affecting the global travel industry today. With more passengers than ever before, travel operators must understand these issues and respond accordingly.

The World Travel Catering & Onboard Services Expo (WTCE) is set to address these trends, plus many more - from personalised meals to ethically-sourced cutlery - when it returns to Hamburg on 14 ñ 16th April 2015.

the increasing use of upgradeable airfares and the fact that economy fares tend to rise more quickly than premium anyway.

Premium cabin fares are no longer as expensive as travellers assume ñ on some routes the difference is ‘negligible’ with tickets providing more value-for-money than economy when all the overall experience, extras and service are taken into account, according to latest insight and statistics from travel specialist Expedia and the Airlines Reporting Corporation (ARC).

However, customers paying the very highest fares can expect the bar to be raised again as airlines try to out-do each other in the luxury stakes. Emirates and Etihad boast studio-like suites, butlers and private bedrooms, while lie-flat beds, a la carte menus and sophisticated entertainment systems, increasingly including Wi-Fi are commonplace both in the air.

Expedia reports that on North American short-haul routes the premium fare gap has shrunk to 89% from 138% of the economy seat price, while in Europe the premium fare difference dropped to 53% from 66% of the economy seat price.

In the APAC region the difference was even more marked ñ dropping by nearly half - from 120% of the economy seat price to just 55%.

But even before passengers get into the air, convenience and comfort are beginning to play a bigger role as technology and infrastructure advances create the possibility of ‘seamless travel’.[i] The ‘seamless’ ideal would be for a single booking to take the passenger from their home to and through the airport, onto and off the plane and to their destination hotel ñ preferably using ticketless, smartphone technology.

Expedia puts these changes down to several factors, including a tightening of purse-strings on business travel,

Interestingly, Expedia even suggests that social media could be playing a part in the narrowing fare gap.

It says the change could be part of a marketing ploy to entice more ‘average’ travellers to experience premium service with the hope they’ll Facebook, Instagram or Tweet from 35,000sqft and spread the word about what to expect at the front of the plane.

Oxford Economics’ report Shaping the Future of Travel, says that

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seamless travel exists in selective ‘bubbles’ ñ for instance Schiphol and London Heathrow airports both boast their own rail terminals.

Similarly, Singapore Airlines recently struck a deal with the Heathrow Express rail service and First Great Western trains for a fly-rail partnership. Schiphol also uses Bluetooth signals from mobile phones to determine how busy the airport is and whether it needs to take action to reduce check-in queues.

WTCE is the world’s largest event dedicated to travel catering, passenger comfort and buy-on-board products, making it the principal meeting place for professionals from across the air and rail travel industry to network and discuss new business partnerships.

The 2015 show brings together specialists offering a wide variety of products and services from across the globe, with over 50 new exhibitors already confirmed meaning visitors have the perfect opportunity to expand their business networks.

Catering and onboard services represented include food and drink, passenger comfort, hygiene products, travel retail, packaging, galley equipment and more.

This year also sees the launch of the new Travel Retail Zone, reflecting the huge growth this sector has experienced in recent years. In this area buyers can meet with suppliers of sale-on-board items such as wines & spirits, cosmetics, perfume and toys, and discuss how they can boost their offering to appeal to the modern traveller. A company trail will also lead attendees to other exhibitors at the show with a travel retail offering, making it

easy for delegates to target their visit and come away with plenty of inspiration.

Visitors can also take advantage of the Taste of Travel theatre where they can stay up to date with advancements in onboard services and travel catering. Some of the industry’s most sought after names will host live demonstrations, interactive presentations and sampling and tastings. Insights into key topics will also be explored, including vegetarian and vegan meals onboard, a tea masterclass and African cuisine.

The Passenger Experience Conference - Europe’s premier conference and networking forum for travel sector professionals - also returns to explore strategic issues around airline cabin innovation, traveller experience & expectations, and strategies to maximise onboard revenue.

WTCE is co-located with Aircraft Interiors Expo, the world’s largest event dedicated to sourcing the latest innovations, technologies and products for the cabin interiors, inflight entertainment and passenger comfort industries.

Register now for free entry to WTCE and also gain access with your badge to Aircraft Interiors Expo.

For more information on the event visit: http://www. worldtravelcateringexpo.com/ Follow WTCE on twitter: https:// twitter.com/wtce_expo #wtce2015 ‘Like’ WTCE on Facebook: https:// www.facebook.com/wtce.expo Join us on LinkedIn: http://www. worldtravelcateringexpo.com/ linkedin

Hotel Expo 2015 set to capture hospitality’s growing demand in Asia –Pacific

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otel Expo is set to be an ideal sourcing platform and venue for a variety of fascinating events. Being held during November 25-27, 2015 at the Venetian Macau, it is the most comprehensive exhibition showcases an array of hospitality products, hotel facilities, equipment & supplies as well as fine food & beverage.

exhibition, creating a perfect trade exchange platform to the exhibition.

Exhibition highlights include:

Strategically located in the thriving Macau, Hotel Expo is well placed to serve the growing demand of not only the local buyers but also those from the Greater China.

The hosted buyers programs also bring delegations from the hotel associations of various Asian countries including Korea, Malaysia, Thailand, The Philippines etc. Hotel Expo 2015 is expected to attract more than 20,000 buyers from the globe which includes hotel general managers, hotel & resorts owners & operators, restaurant & bar owners & operators and many more.

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An ocean of fascinating activities will be held during the 3-days

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Asian Hotel General Managers Forum Seminar on Co-operation between Hotels & SMEs Spa & Wellness Forum Best Hotel Furniture Suppliers Award Asian Best Hotel Suppliers Award Distinguished Hotels & Restaurants Parade Macau International Lotus Cup Hotel Furniture Design Competition Asia Green Award Coffee Culture Workshop Asia Culinary Contest

What’s new at Hotel Expo 2015?

Hotel Expo in Macau would advocate the concept of “Combining Business with Leisure” as a carnival to let the attendants enhance networking opportunities in a relaxing atmosphere with fun. New

• • • • • • • •

attractions will be added in this year: Theme Nights Distinguished Hotels & Restaurants Parade Wine Tasting Chocolate Academy Pastry Workshop Green Zone Business Matching Investment Talks

Hotel Expo is definitely a mustattend event for all the operators and suppliers of the hotel, catering, hospitality & tourism industries.

REGISTER NOW at www.hotelexhibition.com to seek new market, products & services and to gain latest industry information and trend.

For further information, please contact: Coastal International Exhibition Co., Ltd. Email: general@coastal.com.hk Website: www.hotel-exhibition.com www.coastal.com.hk

Hotels & Culinary ASIA | March-April 2015 | 23

Going for Gold at Bevtec Asia Sidel sponsors exhibition for Asia’s fast expanding brewing and beverage manufacturing industries

the cost of production - and the use of resources - yet maximises the integrity and shelf life of the beverages it contains.

Come a see Sidel’s latest industry solutions at booth #E1 at Bevtec Asia 2015 from 6-8 May, BITEC, Bangkok.

Beer Innovations The beer and spirits industry is continuously reshaping itself due to society, consumer and industry dynamics. This situation pushes players to launch an important number of innovations each year.

Sidel, the leading global provider of PET solutions for liquid packaging, will be exhibiting at Bevtec Asia 2015 in Bangkok. Sidel, this year’s Gold Sponsor of the biennial exhibition and conference, provides equipment and production lines for the PET packaging of many different liquid foodstuffs.

These include: beer, wine and spirits; sensitive products like juices, isotonics and teas; milk and liquid dairy products; carbonated and non-carbonated soft drinks (both traditional and sensitive); water, edible oils and other foodstuffs.

PET is the preferred material for the packaging of many of today’s leading beverages. Like glass, it is strong, hygienic and chemically safe. Stable and inert, PET is resistant to attack by micro-organisms, does not react with foods and will not biologically degrade. However, unlike glass and other packaging materials, it is extremely lightweight, simple to transport and will not break.

Consumers like its convenience, re-sealability and recyclability. Producers will appreciate the cost-saving and environmental benefits it delivers.

The anticipated high demand for ready-to-drink beverages caused by growing urbanisation, increasing populations and environmental factors, will have a major impact on the region’s liquid packaging market. Sidel understands that customers need the productivity and flexibility to meet changing consumer demand, to differentiate their brand and to manage multiple products on the same line. The company knows they also require the reliability to provide a consistently safe high-quality output, to use limited resources more efficiently, to comply with legal regulations and to compete effectively in an increasingly competitive market.

With a complete portfolio of beverage packaging solutions to fulfill all these requirements, Sidel has the market and design expertise to support customers in creating attractive and effective PET packaging. Packaging that minimises 24 | March-April 2015 | Hotels & Culinary ASIA

The key trends differ from beer and spirits but the key drivers of change are the same, namely society, consumer, industry and innovations, each with different regional highlights. Strong trends for all drink types has been the iconization of brands through design, marketing and ‘look & feel’. National Pride positioning has played an important role for beer more recently as has craft authenticity, gourmet appeal and refreshment value, this differs from the spirits sector that has strongly marketed the sophistication, premiumization, flavouring, and connoisseur appeal of their brands.

How and where these drinks and brands are marketed has been equally dynamic in its adaptation with digital media, legislative restrictions and consumer shifts all playing a vital role in driving innovation.

A Bt.20 billion bottled drinks market The bottled drinks industry in Thailand, to include bottled flavoured drinks, water and minerals waters, have reached a market value of 19.882 billion Baht, according to the National Food Institute under the Ministry of Industry.

The industry is divided into 3 categories with bottled water and mineral water valued at Bt. 14,178 million, functional beverages (excluding functional essence or shot) has a market capitalization of Bt. 5,602 million and the flavoured carbonated drinks’ market value stands at Bt. 102.4 million, representing a combined market value of more than 15% of the non-alcoholic drink sector with the growth rate to the current market levels. The functional beverage is the key driver of the growth at 33.25% for the period since 2010.

“The highly competitive market is the bottled functional drink that is experiencing rapid market growth within the challenge of the new players jumping into the crowded market”

The Most Public Holidays Countries!

Wego, the leading travel search site in the Asia Pacific and Middle East, reveals which countries around the world have the most public holidays

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n the pursuit of a more successful life/work balance (and more time to travel!), Wego, the leading travel search site in the Asia Pacific and Middle East, reveals which countries around the world have the most public holidays.

“There’s no better remedy for the post-holiday blues and start of a new year than to look ahead and plan your next holiday,” said Joachim Holte, Chief Marketing Officer of Wego. “Depending on where you live however, some of us have a lot more days off to play with than others!”

“India has the most number of public holidays at around 21 days each year, even more depending on which state you live in,” he observed. “In the Asia/Pacific region, the Philippines follows with 18, 17 for China and Hong Kong, Thailand receives 16, 15 in Malaysia and Vietnam, 14 for Indonesia, 13 in Taiwan and South Korea, 11 in Singapore and 10 in Australia and New Zealand.”

“China is not only one of the fastest growing travel segments in the world, their government makes it easy for workers to take longer breaks. Should the year’s public holidays fall on a weekend the government swaps the official dates with weekdays, maximising time off,” said Holte. “So this year, the total of 17 public holidays equates to 28 days off. Similarly the Taiwanese total of 13

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public holidays results in 29 days off inclusive of weekends.”

Europeans don’t fare too badly with Sweden and Lithuania offering the most at 15 (the latter with an additional 28 days of paid leave), followed by 14 in Slovakia, 13 in Austria, Belgium and Norway and 12 in Finland and Russia. Spain and the UK are not so holiday minded, with only eight. In the United Arab Emirates, another fast developing travel market, you can expect 11 public holidays in 2015.

“Mexico has the lowest in the world with only seven public holidays each year although the government permits a few more ‘optional’ public holidays, at the employer’s discretion.”

“Some countries however provide a little more in the way of statutory holiday leave which can top up public holidays nicely,” Holte continued. “The Philippines public

holiday count of 18 is increased with an additional five days mandatory holiday leave, and while Australian workers receive around ten public holidays depending on which state you live in, annual holiday leave entitlement totals an additional 20 working days.”

“Travel is like a reward for all those hard working days we spend at the office but the amount of paid leave is what restricts us from making the most of those opportunities,” added Holte. “Combining public holidays with your annual leave is the best way to maximise time off, take trips and preserve a healthy life/work balance.”

“With this in mind we’ve developed a downloadable public holiday calendar for APAC, India and the UAE, so travellers can plan ahead, and by having something to look forward to, ease back into a brand new working year.”

eRevMax shares key insights on Chinese Travel Industry

BESydney enlists operatic talent to help Sydney shine

The increase in high disposable income and rise BESydney was able to profile the harbour city’s of middle class has influenced the purchasing behaviour and travel decisions of young, educated breadth of talent, services and experience that make it one of the world’s favourite places to meet. and technologically skilled Chinese travelers.

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IME 2015 International delegates will benefit from some of the best cultural experiences that Australia has to offer after Business Events Sydney (BESydney) announced that it would join forces with Opera Australia in a new strategic partnership.

eRevMax has released an infographic shedding key insights on the Chinese traveler and their online booking behaviour. Based on several key market studies, the infographic shows that hotels need to overcome the language barrier to reach out to 100 million international travelers in China.

The increase in high disposable income and rise of middle class has influenced the purchasing behaviour and travel decisions of young, educated and technologically skilled Chinese travelers. The Internet is the primary source of travel planning with 95% of Chinese travelers beginning their search at Baidu, the 800 lbs Gorilla of China Search. The steady economic growth in the country has increased the consumption power, but the middle class Chinese traveler still remains price sensitive and compares rates on meta-search channels before booking.

An increase in disposable income, a broadening middle class, and an improved road and rail network has encouraged more people to travel.

The amount of money spent on travel in China has been growing at 20% compound rate for the last few years, and has made Chinese

travelers the big spenders.

Digital media and e-commerce have moved into the mainstream of Chinese Internet users’ lives with them spending about 1 billion hours online each day, more than double the daily total in the United States.

When it comes to online travel Ctrip, eLong and Ly.com dominate the market.

The internet penetration in the country is being led by smartphones, and this has led to an exponential rise in mobile travel bookings.

A whopping 89% travellers use smartphones to access websites and 45% of business travellers use mobile for travel arrangements.

When it comes to booking decisions, Chinese travelers trust online reviews more than friends or families. The volume of reviews posted nearly doubled in 2013, and peer recommendations influence not only where travelers go, but also where they shop for travel products.

The Infographic notes that 48% of travellers use social media in trip planning and 89% of luxury travelers write reviews after the trip.

Sina Weibo, the local micro-blogging site rules in the social space with over 550 million active users.

BESydney CEO Lyn Lewis-Smith said it was important to the bureau to be able to showcase the depth and texture of Australia’s creative, commercial and cultural capital. Through its partnerships with businesses outside the events industry, she explained, BESydney was able to profile the harbour city’s breadth of talent, services and experience that make it one of the world’s favourite places to meet. “Sydney is an inspirational place. Everywhere you look there is example of innovation or entrepreneurism but that is just one aspect of a great global city.”

“Cultural experiences particularly music, are emotive and have the ability to transcend the barrier of language,” she explained. “Expanding our strategic partnership to include every aspect of the Sydney experience ensures delegates are truly captivated and moved by the city.”

Opera Australia is the country’s national opera company and presents more than 700 performances and plays to more than half a million people around the country each year. In Sydney, Opera Australia presents 200 performances a year at the Sydney Opera House and once a year, for a four-week season the company stages Handa Opera on Sydney Harbour – an outdoor opera experience unlike any other.

Opera Australia’s Director Corporate Partnerships and Events, Helen Hall, said Opera Australia looked forward to working with BESydney to showcase its award-winning productions and to offer a wonderful new entertainment dimension to large-scale groups coming into the city.

“Opera at the Sydney Opera House is sure to be an unforgettable experience for any delegate coming into this beautiful city,” said Ms Hall.

Looking ahead, Darling Harbour’s urban revitalisation, which includes the construction of International Convention Centre Sydney (ICC Sydney), is kicking ahead. In less than two years, ICC Sydney will form part of an exciting creative and innovative precinct that will become part of Sydney’s ‘cultural ribbon’, extending from the Powerhouse Museum and the University of Sydney, through Chinatown and finishing at the city centre.

“This whole precinct has immeasurable potential for visitors and locals alike.

It will be a creative hub, where visitors can collaborate and innovate with our intellectual capital, while at the same time, providing a global stage for our local talent to shine,” Ms Lewis-Smith said.

Hotels & Culinary ASIA | March-April 2015 | 27

Changi Airport crosses 54-million passenger mark in 2014 The airport ended the year by handling a total of 5.09 million passenger movements (-0.7% on-year), 158,600 tonnes of cargo (+1.4%) as well as 29,710 landings and takeoffs (-3.9%) in the month of December.

Singapore Changi Airport managed 54.1 million passenger movements in 2014, the most in its 33-year history. This was a 0.7% increase compared to the whole of 2013. Cargo volumes were stable at 1.84 million tonnes while flight movements dipped 0.7% to 341,390 for the year.

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hangi Airport’s busiest day last year was the Saturday before Christmas (20 December 2014), with 186,500 passengers passing through during the 24 hours. The airport ended the year by handling a total of 5.09

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million passenger movements (-0.7% on-year), 158,600 tonnes of cargo (+1.4%) as well as 29,710 landings and takeoffs (-3.9%) in the month of December. The monthly breakdown for passenger, airfreight and aircraft movements at Changi Airport in 2014 is in Annex A. Travel to and from Thailand and China continued to show signs of recovery, registering a year-on-

year increase of 6.6% and 1.0% respectively in December 2014, the third consecutive month of passenger traffic growth for both countries. In Thailand’s case, seat capacities and flight frequencies to Bangkok have also been restored to end-2013 levels, before travel to the country was impacted by the political situation.

Resilience in a challenging environment

Despite overcapacity issues and depressed yields facing the aviation industry in the region, passenger traffic at Changi Airport grew, albeit at a more moderated rate compared to previous years. While traffic to the South Asia and Northeast Asia regions rose 6.0% and 4.0% respectively, this was offset by weaker performance on European and Southeast Asian routes.

Accounting for more than 7.5 million passengers in 2014, Indonesia continued to be the airport’s top country market, followed by Malaysia, Australia, Thailand and China. In terms of Changi’s busiest routes, the top 10 destinations remained unchanged with Jakarta, Hong Kong, Kuala Lumpur, Bangkok and Manila taking the top five spots (see Annex B). For the second year in a row, Denpasar-Bali was the fastest growing among the top 10 routes, enjoying a robust 15.7% growth on-year.

Changi Airport welcomed six new carriers in 2014. The arrival of MIAT Mongolian Airlines and Uzbekistan Airways enhanced Changi’s connectivity to Central Asia, with the launch of new services to Ulaanbaatar and Tashkent respectively. Jetstar Pacific, Malindo Air, Tigerair Taiwan and VietJet rounded up the list of new additions to Changi’s family of airlines.

Besides the new links to Mongolia and Uzbekistan, Changi Airport also added new services to Lanzhou and Xi’an in China, Okinawa in Japan, Seattle in the United States and Phu Quoc in Vietnam, bringing the total number of new destinations in 2014 to seven.

Stable cargo volumes Changi Airport’s total cargo throughput for 2014 increased 0.3% compared to a year ago, as higher imports and exports offset lower transshipment volumes. Airfreight shipments between Singapore and Japan rose 7.5% on-year, boosted by the commencement of a new Okinawa-Singapore freighter service operated by ANA Cargo.

Two of Singapore’s key trade partners – Australia and China – also exhibited positive growth of 5.7% and 1.3% respectively.

During the year, Changi Airport also enhanced its reputation as a trusted transhipment hub for temperature-sensitive cargo

when SATS Coolport received the world’s first ‘Centre of Excellence in Pharmaceutical Handling’ certification by IATA.

Enhanced support for airline partners Mr Lee Seow Hiang, Chief Executive Officer, Changi Airport Group (CAG) said, “2014 was a challenging year for the aviation industry, especially in Southeast Asia. Several unforeseen events depressed travel demand, creating a difficult operating environment for many airlines in the region. CAG responded quickly to the external situation, by introducing the Growth and Assistance Incentive (GAIN) programme to provide temporary cost relief for our airline partners as well as to encourage them to collaborate with us to explore new ideas to stimulate passenger traffic or boost operational efficiency at Changi Airport.”

“The spirit of innovation that has driven our development plans for Jewel Changi Airport and Terminal 4 will continue to underpin our strategy to anchor Changi Airport’s position as a world-class destination for all our passengers to enjoy.”

“We are hopeful that 2015 will be a better year for aviation in the region. Travel demand is recovering steadily for markets like Thailand and China. Lower fuel costs will also help to alleviate cost pressures for

airlines. The new year has started on a positive note for Changi Airport, with Air New Zealand commencing its services to Singapore on 6 January. As we announce more new airlines and destinations in the coming months, we stand ready to work with our airline and industry partners to capture growth opportunities and strengthen Changi Airport’s air hub position.”

Another 24 Best Airport Awards Changi Airport continued to be viewed favourably among travellers when it was voted the World’s Best Airport for the second consecutive year at the 2014 Skytrax World Airport Awards, an honour that Changi has now achieved five times. In total, Changi received 24 best airport awards during the year, including Business Traveller’s Best Airport in the World award for the 27th year running. The full list of accolades received in 2014 is available at www.changiairport.com.

In recognition of its excellence in route and network development, CAG was honoured by airline representatives with the Routes Airline Marketing Award in the ‘Over 50 million passengers’ category, at the 2014 World Routes Conference. CAG was also recognised for ‘Best Overall Use of Social Media’ by Travel + Leisure Magazine and ‘Best Social Media Presence – Airport’ by Skift.com in 2014.

Hotels & Culinary ASIA | March-April 2015 | 29

Business travel in China continues to grow, albeit at slower rates than in previous years CITS American Express Business Travel 2014 China Business Travel Barometer also finds an increased awareness of the importance of business traveler safety, security and comfort.

According to the Barometer, fewer organizations (34%) plan to increase T&E budgets in 2015, compared with 2014 (40%) and 2013 (49%).

Larger organizations seem to be more conservative than smaller ones.

On average, small organizations, characterized as having up to 200 employees, anticipate an increase in their T&E expenditure of 5%, versus 2.5% for the largest organizations.

International travel growing in popularity

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ecelerating economic growth and the increased cost of compliance in China both have contributed to lower than expected travel and expense (T&E) spending in 2014. Though business leaders had predicted 4.3% growth this year, business travel spending actually grew by 1.6% this year-todate. Although mindful of the challenges ahead, business leaders and travel managers remain optimistic and still expect to grow their T&E budgets in 2015 by 3.5% on average.

These findings were reported today within the American Express Business Travel 2014 China Business Travel Survey (the Barometer) during the tenth annual China Business Travel Forum (CBTF), held in Shanghai. The Barometer is an annual report detailing the current status of, as well as forecasts for, the China business travel market. The 2014 Barometer surveyed executives from 230 companies with more than 100 employees each. The organizations are located in major economic areas in China, such as Shanghai, Beijing, Guangzhou, Shenzhen and Wuhan. Eighty two percent of these organizations were Chinese owned, and the rest were joint ventures or wholly owned foreign enterprises.

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The number of employees within organizations who are travelling for business appears to be increasing.

According to the Barometer, 38% of the employees of an average organization have traveled on business this year, versus 33% in 2013 and 28% in 2012. Not only are more employees travelling, but the Barometer results show that the number of travelers who take either purely international trips or mixed domestic and international trips has increased by 3% to 36% in 2014. The number of travelers taking only international trips has increased to 13% up from 8% two years ago (2012). The trend towards an increase in international trips is likely to continue as 34% of the interviewed organizations report plans to expand their operations outside China in the next three years, up from 19% in 2012.

“Despite concerns about the softening rates of economic growth, and the increasing cost of doing business in China, it appears as though company leaders remain

optimistic and still recognize the value of their business travel investment,” Marco Pellizzer, Vice President of American Express Global Business Travel and General Manager of CITS American Express Business Travel. “There is a strong indication that companies in China expect to grow their T&E budgets again next year. Further, evidence suggests business leaders are increasingly broadening their business focus beyond China by expanding internationally, either with their manufacturing operations or marketing and sales efforts.”

Focus on hotel spending This year, spending on airfares accounted for 23% of the average T&E expenditure, down from 25% in 2013 and 33% in 2013.

Conversely hotel accommodation expenditure increased by 2% this year, to reach 23% of the average T&E expenditure.

“The decrease of air spending relative to other travel categories has been observed for several years and is similar to the trends reported in Europe. This year companies have been more focused on mandating the use of ‘lowest logical fares’, and have marginally increased usage of economy over premium class fares for certain sectors and routes.

Also, train travel is becoming an increasingly popular option for business travelers in China,” said Mr Pellizzer.

Perhaps in recognition of the fact

that spending on hotel accommodation is increasing proportionately, there is a growing trend for organizations to have negotiated rates in place for hotel properties or chains (83% of organizations in 2014 versus 78% of organizations in 2012) to try to reduce costs.

Travel managers have actually focused on driving adoption of corporate negotiated fares across all categories this year, in a further effort to drive costs down. When asked about the most important levers used to optimize their travel budget, ‘increased use of preferred suppliers’ ranked number one, which was a significant increase from last year when it ranked fifth. ‘Best buy’, ‘usage of fares with less flexibility’, and ‘advanced booking’ also continue to be among the top optimization levers.

Focus on the traveler When reporting on their travel management priorities over the next three years, ‘traveler safety and security’ ranked number one. Some high-profile travel incidents, political instability in certain countries around the region and disease outbreaks across the world during 2014 have most likely contributed to an increased awareness amongst travel managers regarding their responsibility for their travelers’ safety and security. In addition, ‘travelers’ satisfaction’ jumped to the number four priority this year, up from the number six ranking last year.

Positively engaging with travelers and educating them on the importance of travel policy compliance has also increased in importance this year. When ranking travel policy compliance drivers, respondents have ranked ‘proactively communicate and educate travelers’ number one over more forceful and mandated approaches including ‘centralize T&E program management’ and ‘secure an executive sponsor’, which were respectively number one and two in 2013.

The value of business travel The perceived value of the importance of traveling for business seems to be increasing with 33% of the interviewed organizations reporting they believe travel is a strategic investment, up from 25% of two years ago. Travel tends to be viewed as a strategic investment more so when the senior management is based in China (34%), compared to when management is based abroad (26%).

As for the primary purposes of business travel, most of them appear to be customer-centric, with 23% of business travel in 2014 done to maintain existing client relationships, and 23% to develop new clients. Corporate incentives and seminars (10%) and internal meetings (14%) are the least common reasons for business travel.

Mr. Pellizzer concluded, “As the internal and external business environment in China becomes more complex, leaders continue to recognize the importance of travel, and the return on investment it can bring their business. Though business leaders predict an increase in T&E budgets of 3.5% next year, it is clear they are continually looking for ways to maximize their business travel investment. Companies should continue to work with travel specialists and travel management companies who can advise on policy, help negotiate preferred rates, deliver reporting and data insights, and help realize travel program efficiencies.”

Hotels & Culinary ASIA | March-April 2015 | 31

ITB Berlin: Asia takes the lead in

the international tourism market The figures produced by the World Travel Monitor impressively demonstrate that in recent years Asia has gradually become the most important driving force in the international tourism market. From 2009 to 2013 outbound trips from Asia increased by 53 per cent.

among Asians’ preferred destinations.

Business travel in decline – city breaks and beach holidays more and more popular

Asia continues to be the driving force in international tourism. This is one of the findings of the ITB World Travel Trends Report which every year is commissioned by ITB Berlin, the world’s leading travel trade show. According to its figures, during the first eight months of this year the number of outbound trips from Asia rose by eight per cent, which was double the global growth rate. Further growth is predicted. According to the latest forecast of the tourism consultancy IPK International, in 2015 Asian citizens will undertake aboveaverage numbers of trips and, with growth still at eight per cent, will easily overtake other nations in the outbound travel market.

The figures produced by the World Travel Monitor impressively demonstrate that in recent years Asia has gradually become the

most important driving force in the international tourism market.

From 2009 to 2013 outbound trips from Asia increased by 53 per cent. That is more than twice the average global growth rate (22 per cent). China easily came out ahead, while Japan’s share of the market declined considerably, due to deflation. Together with China it still accounted for more than half of all outbound trips from Asia. Travellers from South Korea, India and Taiwan displayed an increasing lust for travel and these countries reported steady growth.

As far as destinations were concerned the majority of Asians (75 per cent) preferred to holiday on their own continent. The next most popular countries were Europe and North America (15 and nine per cent respectively), in contrast to the Australia and Pacific region, South America and Africa, which were not

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Foreign business trips were slightly in decline, whereas in 2013 holiday trips occupied an increasingly large share of the market (72 per cent).

In terms of the types of holidays being taken it was possible to note certain changes. In 2013 round trips to several countries continued to be popular with many Asians. However, the market share here fell to slightly below 40 per cent, while the number of city breaks and beach holidays in the sun increased. The internet became an increasingly important booking tool. Since 2009 online bookings have almost doubled and currently stand at 60 per cent, while bookings by travel agencies are in decline. All the same, for Asians they remain an important source of personal advice when making bookings.

Steady rise in inbound trips to Asia The number of trips to Asia also increased. According to the World Tourism Organization (UNWTO), during the first six months of 2014 international tourism arrivals in the Asia/Pacific region rose by five per cent, which is lower than last year’s growth rate (seven per cent).

Economic growth in Asia remains stable Commenting on the economic situation in Asia at the 22nd World Travel Monitor Forum in Pisa Dr. Gernot Nerb said: “Economic growth in Asia remains stable.“ This

year the economic expert at the Munich ifo Institute for Economic Research expects the region’s GDP to rise by 4.7 per cent and in 2015 by 4.6 per cent.

All the findings are based on information from papers held at the World Travel Monitor Forum in Pisa, which is sponsored by ITB Berlin. Every year the consultancy IPK International invites more than 50 tourism experts and researchers from around the world to present the latest statistics and trends in international tourism.

Other results of the January to August 2014 trend surveys conducted by IPK as well as the assessments of more than 50 tourism experts from over 20 countries and the core data of the World Travel Monitor will be published exclusively by ITB Berlin. Detailed information will be available in the ITB World Travel Trends Report in early December at www.itb-berlin. com. At the ITB Future Day of the ITB Berlin Convention Rolf Freitag, president of IPK International, will present the findings of the World Travel Monitor for the entire year, as well as the latest forecasts for 2015.

The World Travel Monitor is based on the findings of representative interviews carried out with more than 500,000 people in over 60 global travel markets. It has been published regularly for more than 20 years and is recognised as the most widescale continuous survey examining global travel trends.

What will 2015 bring for Chinese tourism in the United States?

Chinese travelers took an estimated 115 million outbound trips in 2014, a more than 18 percent increase over 2013, when around 97 million trips were taken!

2014 was an eventful one for watchers of the Chinese tourism industry. Despite the damper that the continued crackdown on corruption from the Chinese government placed on government travel and spending, growth in Chinese tourism remained stronger than ever. Chinese travelers took an estimated 115 million outbound trips in 2014, a more than 18 percent increase over 2013, when around 97 million trips were taken.

Last year also marked the much-anticipated Alibaba IPO, making China’s e-commerce powerhouse a household name in the US. The digital juggernaut also rolled out a suite of new products in the US market in 2014, among them the online storefront 11Main, and the cross-border payment and logistics solution Alipay ePass. With these developments, Alibaba has made progress in helping brands sell to Chinese consumers – whether they’re in China or the US – who are seeking authentic American products.

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However, arguably the most significant event related to Chinese tourism in 2014 was a surprise announcement by President Obama during his November visit to the APEC Summit in Beijing. The new reciprocal visa agreement reached by the US and China extended business and tourist visas from one to 10 years, and student visas from one to five years. Data from the Chinese online travel site Ctrip.com indicated that applications for US visas shot up 50 percent shortly after the announcement.

The agreement was welcome news for the hospitality and retail industries in the US, both of which expect a continued influx of Chinese guests. According to a statement released this fall by the White House, “as a result of this arrangement, the United States hopes to welcome a growing share of eligible Chinese travelers, inject billions in the US economy and create enough demand to support hundreds of thousands of additional U.S. jobs.”

As 2015 kicks off, China Luxury Advisors predicts the following five Chinese tourism trends to gain pace in the United States: 5) Chinese Tourism to the US Will Outpace Europe and Other Destinations.

Heartened by easier (and longer) visas, more Chinese outbound tourists will opt for trips to the US over popular destinations such as Paris or London. Already seen as an aspirational locale for shopping, education, and real estate, the US will be a major beneficiary as Chinese travelers take more than 200 million outbound voyages by 2020.

By 2021, the US expects the number of Chinese tourist arrivals to more than triple to 7 million, contributing more than $85 billion per year to the economy.

4) Chinese Investment in the United States Will Gain Pace.

Expect Chinese companies to buy at least one major Hollywood studio in 2015, and continue to make large-scale investments in other US companies and industries.

Some of China’s wealthiest and most powerful businessmen – among them Alibaba’s Jack Ma and Dalian Wanda’s Wang Jianlin – have made clear their intentions to acquire US businesses, particularly in the cinema industry (with Wang of Dalian Wanda purchasing the AMC movie chain in 2012). As Ma put

it, “In ten years, I want five of the top ten global movies to be made by Alibaba.”

Outside of China, in Line With Chinese Tourism Destinations and Trends.

Look for Chinese companies to also intensify their focus on acquiring high-profile hotels or hotel chains in 2015, coming off of the heels of this fall’s purchase of the iconic WaldorfAstoria hotel by China’s Angbang Insurance Group for $2 billion.

Already the most relevant platform to reach and influence Chinese users, Tencent’s mobile messaging app WeChat is here to stay. Currently with more than 400 million users, WeChat has steadily increased its global footprint, and now boasts some 40 million users outside of China. For many Chinese tourists, WeChat has become an indispensable resource for pre-travel research, and via innovative new features has become a way to interact with travel destinations – and even book trips. For brands, WeChat is arguably the easiest way to interact with Chinese fans worldwide, to provide tools such as global store locators and live-chat customer service to globetrotting shoppers.

3) 2015 Will Be the Year of Mobile Innovation for Chinese Tourism.

This year, the number of smartphone users will exceed PC users in China. Younger Chinese consumers in particular have established themselves as highly mobilesavvy, in many cases preferring mobile commerce (m-commerce) to traditional e-commerce, and spending an increasing amount of time using mobile apps such as WeChat to communicate with peers, shop, and interact with brands.

This growing reliance on mobile devices has also extended to the tourism industry. Currently, 40 percent of bookings on the Chinese online tourism-booking site Qunar are made on mobile, and the company’s mobile revenue skyrocketed 400 percent in 2014.

This year, look for Chinese travel sites to invest heavily in innovation as a means to remain relevant and compete in a cutthroat market.

2) WeChat Will Extend its Reach

This year, look for WeChat to continue its overseas expansion efforts, extending new advanced functions and m-commerce to make it easier than ever for international brands, retailers, hoteliers, and malls to get Chinese travelers in the door and increase conversion rates.

1) 2015 Will Be the Year of the Individual Chinese Tourist.

Building on trends seen over the past several years, 2015 will be the year that the individual Chinese tourist becomes more important to brands and retailers than their

group-travel counterpart. The ongoing anti-corruption crackdown has crimped organized group travel among government officials – trips that invariably included high-end shopping excursions. The rise of the independent traveler – typically young, educated, and relatively wealthy by Chinese standards – has been noted by Chinese travel sites such as Ctrip, Caissa, and Qunar, all of which have put more emphasis on tailored experiential travel packages in recent years.

Young tourists have increasingly fueled the emergence of independent Chinese travel. Thirty-eight percent of outbound Chinese travelers are between the ages of 25 and 34, and 67 percent plan to make their own travel arrangements. Additionally, independent travelers have often engaged in group travel in previous years and now opt to go it alone, with greater confidence in their itinerary-building abilities. (A fact that has led to a strong increase in Chinese visits to places off the beaten track.)

Independent travelers are not just important to brands and tourist destinations – they’re increasingly critical, because they influence friends and family, and spend on experiences and accommodations – whereas group travelers typically spend only on shopping trips, skimping on accommodations, food, and experiences.

Hotels & Culinary ASIA | March-April 2015 | 35

Which city’s hotel cuisine reigns supreme in Southeast Asia?

“Hotels that deliver memorable dining experiences will attract more of these foodie travellers. These ranks allow destinations to see where they stack up to the competition in order to improve and market their culinary offerings to travellers,” said Benjamin Jost, CEO of TrustYou. Breaking down the reviews, Kuala Lumpur listed highest in the restaurant and bar category (91.61 per cent), with Singapore and Jakarta tying at 90.7 per cent.

The city that received the most mentions specifically about food was Kuala Lumpur (82.6 per cent), followed closely by Jakarta (81.2 per cent) and Singapore (79.03 per cent).

J

akarta, Kuala Lumpur and Singapore have more in common than close proximity and easy flight connections, they’re also renowned for their distinctive culinary flavours which attract foodie-loving travellers from right around the world.

Wego, the leading travel search site in the Asia Pacific and Middle East, along with big data review partner TrustYou, examined hotel culinary review comparisons for the three Southeast Asian capitals, for the past 12 months. The reviews were split into a variety of categories that received the most mentions from millions of verified guest reviews collected by TrustYou. The data is applicable to hotel restaurants, bars and food in each city.

“These three cities pride themselves on their individual culinary specialities and have a natural and neighbourly, competitive nature,” commented Joachim Holte, Chief Marketing Officer for Wego.

“Internationally these Southeast Asian hubs have 36 | March-April 2015 | Hotels & Culinary ASIA

become renowned as culinary tourism hotspots, with local delicacies perfected by talented hotel chefs who have the additional pressure of competing with the rising talent of food experiences among the increasingly high standards of hotel dining,” he added.

“Singapore won out with an overall total quality rating of 86 per cent, with Kuala Lumpur and Jakarta following with extremely decent scores of 83 and 82 per cent respectively,” said Holte.

“We know that food can be a singular motivation for travel in itself, especially popular with Malaysians, Indonesians and Singaporeans who really appreciate the tradition and experiences that food contributes to a trip,” continued Holte.

Jakarta rated highly in the fruit and dessert category (81.2 per cent), with Singapore’s beef and poultry receiving the most dish mentions rated at 76.02 per cent. Kuala Lumpur’s famed fish and seafood rated high at 77.89 per cent and breakfasts were very popular with reviewers, rating 79.14 per cent.

Bar and beverage mentions saw Jakarta leaping to a rating of 75 per cent, an increase from 64 per cent in the previous quarter, edging up to Singapore’s rating of 76 per cent in the same category.

“Culinary tourism is thriving in Southeast Asia,” Holte continued.

“As the world’s leading low-cost carrier region with an enormous diversity of quality accommodation to suit every budget, the competition between these great cities is hotting up. More travellers are taking the affordable opportunities to discover the food, culture and colourful traditions of all three with great convenience.”

Luxury player Chic Outlet Shopping joins IT&CM China 2015 for the first time Wang Lei, Director of C.I.T.S International MICE shared insights from the Chinese clientele he serves, “There is a rising trend of Chinese travellers heading to such shopping destinations. Suppliers like Chic Outlet Shopping® are in a prime position to ride on this trend with their unique offerings.”

F

resh from a successful stint at IT&CMA and CTW Asia-Pacific 2014, Chic Outlet Shopping, a unique outlet shopping concept created by Value Retail, has confirmed its participation at IT&CM China 2015.

Chic Outlet Shopping will showcase its unique MICE offer which combines luxury brand shopping with incentives, meetings and events in bespoke packages for businesses. Home to leading luxury fashion and lifestyle brands with savings of up to 60%, the ten Villages in the Collection across Europe and China are ideally situated for inclusion on business travel itineraries due to its locations in regions of cultural and historic renown.

Marcelo Molinari, Deputy Tourism Director – Global Marketing Team of Value Retail underscored the unique setting of Chic Outlet Shopping® for business meetings, “Shopping is becoming an increasingly popular choice for Business Tourism events. Each unique destination, with architecture inspired by the region of its location, offers luxury shopping from internationally-renowned brands in a safe, secure and atmospheric ‘village’ setting. Defined by high fashion, superior service and hospitality, a calendar of celebrated events and exceptional value for money, the Villages have become international tourist destinations in their own right.”

He went on, “There are on-site experts in each Village who will create tailored programmes based on clients’ individual objectives. Event organisers can fully utilize the exclusive hire of the Village and use of VIP facilities, extensive

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bespoke branding opportunities to fully customize guests’ experience, valet parking on arrival, private boutique viewings and private dining in VIP suites or restaurants.”

The World Tourism Cities Federation reports that the volume of expenditure by Chinese tourists has hit a new high, with an increase of 26.8% from 2012 to 2013.

Of particular interest to IT&CM China delegates will be the latest Village in the Collection and the brand’s first in China, Suzhou Village, near Shanghai. Opened in May 2014, Suzhou Village is located on the picturesque shores of the Yangcheng Lake and has a distinctive selection of international and Asian brands. With extensive facilities for Business Tourism groups, including a private lounge, rooftop terrace and multi-function rooms for business presentations, Suzhou Village makes the perfect setting for groups and events of any size. A Shanghai village – the 11th in the collection – is scheduled to open in October this year.

Tradition meets cake: sweet congratulations at Ambiente 2015 As international as Ambiente are the companies who were surprised with a sweet trade-fair highlight to mark their anniversaries as Ambiente exhibitors. This year, they came from Germany, Ecuador, Great Britain, Italy, Japan, Portugal and the Ambiente Partner Country 2015, the United States of America.

The presentation of the skilfully decorated and tasty cake creations by the Ambiente Team is now a tradition at the world’s leading trade fair for the consumer-goods sector in Frankfurt am Main. “This is a small token of our appreciation for a great entrepreneurial achievement. At Ambiente, we consciously take the time to personally honour special anniversaries and the personalities behind the companies”, says Nicolette Naumann, Vice President Ambiente/Tendence.

T

he design of these masterpieces by the confectioners of Sweet Art in Frankfurt is inspired by the product lines and trademarks of the exhibitors. This year, the cakes were presented to Creando Estilos S.A. Ecua-Andino (25th anniversary), Eurographics IWP GmbH (25th anniversary), Gasper

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GmbH (50th anniversary), Gibson Overseas Inc. (35th anniversary), Kögler GmbH & Co. KG (80th anniversary), Master Cutlery Corporation (30th anniversary), Risolì di Montini A. s.r.l. (50th anniversary), SPAL - Sociedade de Porcelanas de Alcobaca (50th anniversary),T&G Woodware Ltd (40th anniversary), Weimar Porzellan (225th anniversary), Wendt & Kühn KG (100th anniversary) and the German Hardware Trade Association (Zentralverband Hartwarenhandel e.V. – 25th anniversary).

The next Ambiente will be held from 12 to 16 February 2016.

Ambiente, the leading international trade fair Ambiente is the world’s leading

international trade fair for products for the table, kitchen and household, gift articles, jewellery, wellness and fashion requisites, as well as decorative products, interior design concepts and furnishing accessories.

Ambiente is ‘The Show’ for the entire sector and, thanks to its unique horizontal and vertical range of products, unrivalled worldwide.

For five days in early 2015, more than 4,800 exhibitors showed their new products and innovations for the coming season to 135,000 trade visitors from over 150 countries.

The world’s leading consumergoods fair is also distinguished by a wide variety of events, promotional programmes for young people, trend presentations and awards ceremonies.

Impressions! - AMBIENTE 2015!

Hotels & Culinary ASIA | March-April 2015 | 41

Impressions! - AMBIENTE 2015!

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Impressions! - AMBIENTE 2015!

Hotels & Culinary ASIA | March-April 2015 | 43

G Hotel Kelawai opens on 16 Feb 2015 2 Persiaran Maktab, 10250 Penang, Malaysia 44 | March-April 2015 | Hotels & Culinary ASIA

G Hotel Kelawai opened its doors today and welcomed the first guest from across the region, Brunei Darussalam.

Mr. Kenny Yew, Managing Director of Azure Technologies checked in at G Hotel Kelawai today with his wife and two children at 1.30 pm.

Hotel Gurney’s gym, Infinity pool and food & beverages outlets. Cross signing and cross usage between G Hotel Kelawai and G Hotel Gurney are available.

Before the first guest’s arrival, Mr Phuah; Director of G Hotel, Mr. Michael Hanratty; General Manager of G Hotel, Mr. Kevin Cheah; Executive Assistant Manager Sales and Marketing, Ms. Punitha Mary; Resident Manager of G Hotel Kelawai together with Head Of Departments took group pictures at the entrance of the new hotel to mark the opening day of G Hotel Kelawai.

Along with the opening of G Hotel Kelawai, we are introducing complimentary six seater buggy services from G Hotel Kelawai to G Hotel Gurney and vice versa. G Hotel Kelawai provides 24-hours reception counter at the hotel lobby and guest just need to approach the counter with their buggy request and our associates will assist accordingly.

Upon the first guest’s arrival, Mr. Michael Hanratty, Ms. Punitha Mary and Mr. Kevin Cheah along with the Head of Departments welcomed the first guest at the G Hotel Kelawai’s entrance and lobby and then ushered them to the reception counter. Mr. Michael presented a flower bouquet to Mrs. Kenny Yew, Ms. Punitha Mary presented “fortune cookies’ to Mr Kenny Yew and Mr Kevin Cheah presented G Teddy Bears to Mr Kenny Yew’s children as a token of remembrance and a sign of a warm welcome to our newly opened hotel. Mr. Kenny Yew and family also had the privilege to enjoy the welcome ice-cream which is a signature welcome from G Hotel.

G Hotel Kelawai’s Lobby, Concierge, Reception Counter, Spoon, Guest Rooms, Forum, Business Centre and B1 Parking Area started its operation while 2 PM, Infinity Pool, Gravity and Gym are still in progress and targeted to complete soon. However guest are allowed to access to G

G Hotel Kelawai tagged as “Style...

Redefined” is where iconic design and cutting edge lifestyle set the stage for exclusive and extraordinary experiences. The hotel houses rooms that are uniquely inspired by innovative design to create energizing space for guests to play or work by day or mix and mingle by night. In addition to that, it will also accommodate three trendy and stylish food and beverage outlets – Spoon; a coffee house, 2PM; lobby lounge and Gravity; a 24rd floor rooftop bar that are set to fulfil

guests’ gastronomic appetites.

There are a total of 208 rooms namely 143 Deluxe rooms that are 35sqm, 20 units of Executive Room at 35sqm, 43 units of Executive Premier at 45sqm and 2 units of Executive Premier Suite at 82sqm of which all are crafted to be elegant yet casual. The rooms aim to personify an opulence that is bespoke from its clean architecture, to its interior design and even the thread count in the sheets. Feel right at home, and at the same time, in worlds apart.

For the first time, G Hotel is proud to introduce the Serta Bed, the world’s best mattress, providing superior support for the best sleep experience ever. In addition, Herman Miller work chair, designed for comfort, inspired by innovation & created for the environment.

Amongst others, Appelles products for your showering comfort, 55’ Smart LED TV, infinity swimming pool & many other new services and products to complement your stay.

Also to make your stay better, G

Hotels & Culinary ASIA | March-April 2015 | 45

Hotel Kelawai offers a fully equipped gymnasium, business centre and roof top infinity pool. The gymnasium also allows you to use state-of-the-art equipment to break that sweat. You can enjoy the scenic view while working out with our personal trainers should you need any assistance or guidance.

For those who have the love for water, the infinity pool on the 24rd floor gives you a chance to take in what Penang has to offer while having a dip. Fathom in the picturesque Penang when you go for a swim as there is a 360° view of the island including the view of the iconic Penang Bridge.

At the same time, guest can enjoy a night out with drinks to match and view that intoxicate at the rooftop bar – Gravity. Poised at a vantage point, visit the pinnacle of luxury and bring your lifestyle to the peak with panoramic views of Penang’s heritage past. Jive to the coolest tunes, sip on the newest mixes and party the night away.

Make your special event a memorable one with the meeting facilities available. For small groups such as company meetings, there are classroom seating rooms being named ‘Forum’. They can be used for separate functions or events that are organized by different organizations. If there is a large group gathering, these meeting rooms may be combined for a bigger space in order to accommodate everyone. Meanwhile, the business centre gives guests a chance to go online and do daily tasks.

Excite and awaken your senses at our café – Spoon that plays host to a myriad of cuisines. Whether it is a casual 46 | March-April 2015 | Hotels & Culinary ASIA

brunch or a quiet dinner for two, enjoy a wide variety of food cooked fresh. With no compromise to quality ingredients, embark on a culinary adventure set to tantalize your taste buds with culinary fare from around the globe.

Carefully crafted and delicately decorated, the lounge – 2pm is the spot that appeals to everyone. Whether it is a cup of freshly brewed coffee with a quiet book, or maybe something stronger to take the edge off after a long day, the lounge is poised to appeal to all. So sit down, relax, and live in the moment in your own cosy and quiet spot.

G Hotel Kelawai is located at the prominent location on the bustling Jalan Kelawai, noted to be one of the busiest streets in Penang. Jalan Kelawai is famous for a diverse array of attractions ranging from traditional temples and local eateries to upscale restaurants, boutiques and jewellers. Located within walking distance from the hotel, Gurney Plaza and Gurney Paragon, just about everything Penang has to offer is right at your doorstep for unimaginable convenience. Within mere minutes is also Gurney Drive, home to the congregation of roadside iron chefs. Allow these local fare maestros to take you on journey of gastronomical proportions and sample almost all that Penang is famous for. Open for 24 hours round the clock stomach stuffing, you’ll be screaming for reprieve before the week is out.

About G Hotel Ultra chic and unmistakably stylish, G Hotel Gurney emerges as an urban icon in the hustling, busy Gurney Drive of Penang and boasts 312 tastefully designed rooms that offer you the best in quality during your stay. G Hotel Kelawai, on the other hand is where iconic design & cutting edge lifestyle set the stage for exclusive & extraordinary experiences. With 208 rooms, G Hotel Kelawai is uniquely inspired by innovative design to create energizing space for guest to play or work by day or mix & mingle by night. Both are located in a prominent location next to upscale shopping malls and renowned hawker eateries with UNESCO world heritage sites and beaches nearby. Enjoy complimentary internet broadband and Wi-Fi, non-alcoholic minibar, stateof-the-art fitness center and infinity pool usage while exploring Penang with our G Mountain Bikes. Cross usage & signing facilities are available between G Hotel Gurney & G Hotel Kelawai.

Please visit www.ghotel.com.my or contact +604 - 238 0000 for more information about G Hotel Kelawai & bookings.

Hotels & Culinary ASIA | March-April 2015 | 47

Be My Host: an international observatory on the Ho.Re.Ca. industry through the eyes of our “Host Ambassadors” and the expertise of Host

will offer real-time news about the current main Ho.Re.Ca. trends with regard to the countries of origin of the influencers taking part.

Thanks to an editorial plan in line with market requirements, Be My Host will expand and integrate the wealth of information on the Host website and in the newsletters, using the typical language and tools of social communication, multimedia content and interaction across the board.

H

ostMilano is also information, communication, a showcase for new trends on a global scale. In order to keep you constantly up to date on the effervescent world of food and its satellites, Host2015, scheduled at the Fiera Milano fairground in Rho from Friday 23 to Tuesday 27 October, has involved 10 top global influencers from five countries – Italy, France, Spain, the United States, Germany, the UK, China, Japan, Russia and Brazil – who will become ambassadors for the event in the name of the invitation ‘Be My Host’.

Our ambassadors are all internationally renowned journalists and influencers, who write professionally about food, catering and lifestyles for prestigious journals (some specialized, some not) (The Wall Street Journal, Wired, Der Feinschemecker, Forbes, to mention just a few), on food and wine websites and blogs. The Host Ambassadors will become pro-active hunters of news on the hottest topics in the sector, topics which will be established jointly with the social team of HostMilano.

“Increasingly, HostMilano is a place where people discover new formats and new trends in lifestyles, as well as the most innovative

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technologies,” commented Simona Greco, Exhibition Manager of Host at Fiera Milano. – “Be My Host is a fundamental link in this strategy, because it brings together the viewpoints of the exhibitors and other trade professionals of the industries attending Host, those of some of the world’s greatest influencers--who represent a link with the viewpoint of final users who, today, are ever-more aware and well-informed—and with the world of the media and the culture of the sector.”

The Be My Host project will take the form of a web magazine which, through the various viewpoints put forward by the Host Ambassadors,

Analysis, in-depth coverage and conversations with a focus on lifestyles will cover all the industries present at Host2015, gathered in the three macro-areas of the exhibition: Food service equipment with Bread-Pasta-Pizza; Coffee, Tea with SIC – the International Coffee Exhibition - Gelato-Pastry, and Bar, Coffee machines and vending; and Furniture and Tableware.

For information about Host: www. host.fieramilano.it.

ITE & MICE Hong Kong 2015 Travel Fair facilitates exhibitors Meeting MICE/Trade Buyers & Affluent FIT

ITE & MICE, Hong Kong’s only international travel fair, is attended in the two trade days by 2588 visitors from MICE & Corporate Travel and 6522 from travel agents. In all, it draws some 12000 buyers and trade visitors, with 74% from Hong Kong and 19% from China mainly its southern provinces like Guangdong!

seminars, some of which by exhibitors while others by the organizer in cooperation with trade associations such as the Association of Corporate Travel Executives (ACTE) on Corporate Travel, and the Wedding Management Association on Overseas Wedding. Also, the organizer helps promoting exhibitor seminars by sending invitations for online pre-registration.

Its next edition, ITE & MICE 2015, co-locates the 29th ITE (leisure) and the 10th ITE MICE for synergy, as MICE trips often include leisure components and a significant number of travel agents engage in both types of travel.

The Expo highlighted various travel themes and survey held at ITE & MICE 2014 found their popularity with both trade and public visitors. (Table 1) Table 1: Themes popularity among Trade & Public Visitors

Online survey held last November by the organizer found 83% of the MICE and corporate travel trade visitors seek destination information in ITE & MICE. Also, these buyers / visitors seek info and suppliers of hotel and accommodations (52%), travel agents / DMC (44%), and Tourism Boards / Convention & Meeting Bureau (38%). And they travel frequently for business, with 31% made two to four business trips and another 17% five times or more in past year.

The combined ITE & MICE features nearly 700 international exhibitors (85% from abroad) from around 50 countries and regions all over the world, and therefore offers more destinations, products and suppliers thus more attractive to visitors!

The annual ITE & MICE will next be held from June 11 to 14, 2015 at Halls 1A to 1E of the Hong Kong Convention & Exhibition centre. Its first two days open only to trade, and the second trade day designated MICE / Corporate Travel Day. In trade days of ITE & MICE are Business Matching and around 20

THEMES HOW

Wellness Sport Cruise & Medical

Travel & Medical

Trade Visitors Public Visitors

14% 12%

21% 54%

24% 14%

22% 30%

29% 34%

ITE & MICE 2015 is supported by China National Tourism Administration, Hong Kong Tourism Board, Travel Industry Council of Hong Kong, Macau Government Tourist Office etc. In addition, ITE MICE 2015 is supported by MICE industry associations in the region, and several chambers of commerce / professional bodies help distributing invitations to members etc.

Reflecting a worldwide trend that FIT (traveling individually instead of package tour), especially among the affluent and the enthusiast, now contribute more travel business, 83% of the 75000 public visitors of ITE & MICE prefer travelling in FIT / private groups. That over 45% of them had university education underlines their high quality.

Survey in ITE & MICE 2014 found they like travel, 59% two to four times and 19% five times or more in past year. Nearly 25% of them had country in Europe, Americas, Africa or Oceania etc as destination of their longest holiday in past year. The percentage under-estimates the actual visit frequencies as those been to Europe twice would have only been counted once.

For more details of the Expo or trade visitor registration, please visit trade website of www.itehk.com. For exhibiting or general enquiry, please email to travel@tkshk.com or contact the Organizer, TKS Exhibition Services Ltd by phone: (852) 31550600.

Hotels & Culinary ASIA | March-April 2015 | 49

Wyndham Hotel Group Acquires Dolce Hotels and Resorts Acquisition Grows Asset-Light Managed Business and Complements Existing Portfolio of Brands equity, Dolce is a respected leader in the group space with outstanding destination properties and some of the best meeting product offerings available in the market today. In addition, Dolce has a long, successful history of award-winning innovation in conference planning and management. We look forward to continuing the growth of the Dolce brand and leveraging these Dolce attributes across the Wyndham global system while enhancing the Dolce owner and guest experience.”

This acquisition is consistent with Wyndham Worldwide’s core asset-light strategy, and allows Wyndham Hotel Group to expand its managed portfolio by nearly 40% with a significantly larger presence in the group and meetings segment. Dolce’s exceptional brand recognition among global meeting planners enhances Wyndham Hotel Group’s portfolio with significant group and transient cross-selling opportunities across Wyndham’s existing managed and franchised operations. Wyndham Hotel Group plans to maintain and grow the Dolce brand along with its signature service, technology and F&B products as part of its existing portfolio of brands.

“Steven Rudnitsky, our president and chief executive officer, and I have consistently looked for strategic opportunities to grow Dolce in a way that preserves the brand, continues our focus on meetings and benefits our property owners,” said Philip F. Maritz, chairman of Dolce Hotels and Resorts. “When Wyndham Worldwide agreed to just such an approach with Dolce, Rudnitsky and his Senior Leadership Team concurred that the acquisition would achieve our objectives and provide the best future for all our stakeholders. Our Founder Andy Dolce and the rest of our board supported this approach.

Also, speaking as a continuing owner of two Dolce-managed properties through Broadreach Capital Partners, I am confident of incremental benefits under the Wyndham Hotel Group umbrella and its dynamic plans for the brand and its properties.”

“Dolce is a terrific strategic fit for us,” said Geoff Ballotti, president and CEO, Wyndham Hotel Group. “With over three decades of established brand

Morgan Stanley & Co. LLC acted as exclusive financial advisor to the seller in connection with the

W

yndham Hotel Group, a subsidiary of Wyndham Worldwide (NYSE: WYN), today announced it has acquired Dolce Hotels and Resorts, a leading provider and manager of group accommodations with a portfolio of 24 properties and over 5,500 guestrooms across seven countries in Europe and North America, for $57 million in cash.

50 | March-April 2015 | Hotels & Culinary ASIA

transaction.

ABOUT DOLCE HOTELS AND RESORTS Regularly outperforming competitors in guest and meeting planner satisfaction, Dolce’s portfolio of hotels, resorts, conference centers and day meeting centers offer 750,000 square feet of meeting space, host approximately 100,000 events and welcome four million meeting clients each year.

The Dolce system includes meeting and resort destinations around the world in markets such as the Napa Valley and Aspen in North America and international locations such as Barcelona, Brussels, Munich, Frankfurt, Paris and Provence.

These locations will complement the expanding presence of Wyndham Grand meeting destinations in markets such as Chicago, Miami, Berlin, Doha, Hangzhou and Xian, China, giving meeting planners a wide array of options within the same system.

Many properties are certified by the International Association of Conference Centers (IACC).

Properties are distinct in design and feature freshly sourced culinary experiences and inspiring environments that bring people together for events. Dolce pioneered the Complete Meetings Package (CMP), a concept designed to address all of the elements planners need when arranging meetings. The CMP is now embraced by many hotel companies and is considered the standard by the IACC.

ABOUT WYNDHAM HOTEL GROUP

ABOUT WYNDHAM WORLDWIDE

Wyndham Hotel Group, part of Wyndham Worldwide Corporation (NYSE: WYN), is the world’s largest and most diverse hotel company with approximately 7,600 hotels and over 655,000 rooms in 71 countries under the hotel brands: Wyndham Hotels and Resorts®, Ramada®, Days Inn®, Super 8®, Wingate by Wyndham®, Baymont Inn & Suites®, Microtel Inn & Suites

by Wyndham®, Hawthorn Suites by Wyndham®, TRYP by Wyndham®, Howard Johnson®, Travelodge® and Knights Inn®.

One of the world’s largest hospitality companies, Wyndham Worldwide (NYSE: WYN) provides a wide range of hospitality services and products through its global portfolio of world-renowned brands. The world’s largest hotel company based on the number of properties, Wyndham Hotel Group is home to many of the world’s best-known hotel brands, with approximately 7,600 franchised hotels and over 655,000 hotel rooms worldwide. Wyndham Exchange & Rentals is the worldwide leader in vacation exchange and the world’s largest professionally managed vacation rentals business, providing more than 5 million leisure-bound families annually with access to over 107,000 vacation properties in over 100 countries through its prominent exchange and vacation rental brands.

The industry and timeshare ownership market leader, Wyndham Vacation Ownership develops, markets, and sells vacation ownership interests and provides consumer financing to owners through its network of over 200 vacation ownership resorts serving approximately 907,000 owners throughout the United States, Canada, Mexico, the Caribbean, and the South Pacific. Based in Parsippany, NJ, Wyndham Worldwide employs approximately 32,800 associates globally.

All hotels are independently owned and operated excluding certain hotels which are owned or managed by an affiliate of Wyndham Hotel Group.

Wyndham Rewards®, the guest loyalty program of Wyndham Hotel Group, is the world’s largest lodging loyalty program as measured by number of participating hotels. It offers more than 38 million members the chance to earn and redeem points for stays at over 7,000 hotels throughout more than 50 countries worldwide. In addition to free stays, members may redeem their points for hundreds of reward options. For more information, visit www. wyndhamrewards.com.

Wyndham Hotel Group is based in Parsippany, New Jersey, U.S. Additional information is available at www.wyndhamworldwide.com.

For more information about hotel franchising opportunities visit www. whgdevelopment.com.

For more information, please visit www.wyndhamworldwide.com.

Hotels & Culinary ASIA | March-April 2015 | 51

Survey Summary:

Wine retail channel trends It’s a widely accepted fact in the global wine trade that the retail channels through which wine gets sold to consumers are in an unprecedented state of flux. A more urbanised and wired global wine drinking population are changing their shopping habits, and these demands are reshaping the way retailers operate and merchandise in the wine category and more generally. The core question is how these changes are manifesting in terms of observable trends in key markets. Which channels are winning and losing? Which retailers are doing better than others? And perhaps the most important question of all: are there discernible patterns in the channel trends across different 52 | March-April 2015 | Hotels & Culinary ASIA

markets which would allow us to draw more broad conclusions about the way wine is sold globally?

Study scope: markets representing 50% of world’s wine consumption The organisers of ProWein, the leading fair for the international wine and spirits sector, commissioned Wine Intelligence to address these questions. The scope of the report encompassed 8 markets which, between them, represent a substantial and meaningful cross-

section of the world wine market.

Using existing published data, plus Wine Intelligence’s own databases, this report publishes for the first time estimates of growth trends in retail channels. Data from the United States, the world’s largest market for wine, and from Germany and the UK, respectively #1 and #2 in terms of imported wine volumes, were analysed. Add to this Japan and Australia, both of which have been showing healthy wine volume growth of late; and finally three markets where wine has traditionally sold in huge volumes, but are in long-term decline: France, Spain and Italy.

Between them, these 8 markets account for over 12 billion litres of wine consumed in 2013 (source: IWSR), or around 50% of the approximately 24 billion litres of wine consumed globally (source:

short term.

The convenience revolution: frequent shopping, smaller baskets Having thus recalibrated expectations, there are some interesting multi-country trends that have been uncovered by this report. Perhaps the most noticeable in several of the key markets is the consumer trend towards buying groceries more often, in less quantity, and including wine in this behaviour. Broadly speaking (because channel definitions at a country level tend to have subtle differences) this has meant the “convenience” channel has been growing in importance for wine in countries like the UK, United States, France and Spain.

OIV). It follows therefore that any changes in these markets, either suddenly or over time, will feed back into the global supply chain and eventually affect both producers and consumers.

8 markets: some themes, many differences

The drivers of this trend are reasonably well known, and arise chiefly from the increasing urbanisation of population, falling car ownership and car usage levels in some markets (itself driven by rising oil prices and motoring taxes).

This urbanisation-austerity model is especially true in Spain. In some markets, the beneficiaries of this trend are the same retailers who already dominate other channels.

This is especially true in the UK and France, where “local” versions of the main supermarket brands have migrated back into towns and cities

over the past 10 years, having spent the last decades of the 20th Century persuading consumers that grocery shopping was best done at large out of town stores with car parking. In other markets, such as the USA, recent liberalisation of Prohibition era laws to allow drugstores (in effect, a convenience store which also contains a pharmacy) and grocery stores to sell beer and wine have boosted the “convenience” channel.

Online models proliferate Another multi-country trend worth noting is the growth of direct-tohome, or online-based shopping models. These also come in several guises, from the UK’s advanced online grocery shopping networks, to the growing “click and collect” systems in France, and the specialist direct-to-home retailers (including wineries) in the USA. In these countries and, to a certain extent, in countries such as Australia and Spain, the new communications technology has spurred a change in consumer channel usage to the more remote, but information rich, zone of the online shop.

Consolidation remains a strong trend A long-standing trend in global retail - consolidation – remains a force in some markets. The displacement

Those looking for a single, unifying theory of wine retail trends may be initially disappointed by the content of this report. Each of the countries under scrutiny appears to be its own ecosystem, with different regulatory and business climates. Popular business notions of globalisation and “convergence” of business models don’t quite square with the reality of wine retail environments which are subject to different legal structures and different consumer expectations. While in most cases changes are taking place, some of far-reaching proportions, the pace of change is generally quite slow. This should not come as a surprise: consumers are creatures of habit, and tend not to go in for radical shifts in where they buy their groceries and beverages. Equally, the “installed base” of incumbent retailers have a natural advantage over any new channel or retailer type: they occupy the best sites, have the greatest legacy brand awareness, and benefit most from consumer inertia. In this climate, traditional business models can persist, while new ones can struggle to gain traction in the Hotels & Culinary ASIA | March-April 2015 | 53

and /or acquisition of owner operator and small chain wine retailers by national, or trans-national chains, often supermarkets, remains influential in markets such as Germany and Italy. In Germany powerful hard discount chains have been the main driver, however recently the trend has developed a new aspect, which is the drive by mainstream supermarkets to occupy more premium market space, and put specialist wine shops under pressure.

Conclusions: polarisation of needs between convenience and information-rich channels What, then, are the implications of these multi-country trends for producers and brand owners? The first, more general point, is for them to recognise that retailers are having to balance two arguably divergent changes in their consumers’ behaviour. On the one hand, the growth of convenience purchasing could mean that this channel needs a smaller range of wines in general, with a greater proportion being strong, visible and reliable wine brands, which lend themselves easily to a quick, low-involvement purchase decision. On the other hand, the growth of online and remote shopping suggests a corresponding need for a broader and more information-rich range in this channel – less brand, perhaps, and more about the provenance and story.

In terms of specifics, the trends suggest that wine businesses need to adopt differing product and service strategies to these growing channels, while recognising that in some markets, the same customers that have dominated the routes to market of 10-20 years ago are also controlling the newer channels. In other markets, such as the USA, there are new channels and new 54 | March-April 2015 | Hotels & Culinary ASIA

supply chain customers (chiefly the convenience store chains) which are looking to grow their share of market at the expense of liquor stores and traditional supermarkets.

A summary of the report will be presented to participants in this year’s ProWein on Monday, March 16 at 10.15-11.00am in the ProWein Forum in Hall 13. A printed version of the report will be available for purchase following the presentation, at the cost of 249 Euro plus VAT (199 Euro plus VAT for exhibitors of ProWein 2015).

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