Offers from Paradise
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Issue ITB Berlin, Germany March 5, 2015 Preferred retires Summit, Offers from paradise Sterling in a restructure Resorts in Maldives turn competitive amid arrivals slide By Raini Hamdi consultants will find the new By Raini Hamdi hotels have been discounting 20- est market to the Maldives and it PREFERRED Hotel Group portfolio to be “much simpler, TOUR operators are seeing 30 per cent since January and are seems that 2015 will be the first (PHG) has restructured its entire streamlined and intuitive”. “very attractive offers” and dis- planning more discounts for sum- year when the year-on-year strong portfolio, a move which sees its “In addition, we are layering counts of 20-30 per cent com- mer. He said this would growth of visitors so en- established brands Summit Ho- on new experiences like art and ing through from the Maldives, help bring back the vol- joyed over the last dec- tels and Resorts and Sterling Ho- culture, wellness, food and wine, which recorded a 7.8 per cent de- ume, particularly trav- ade will have been dras- tels being retired effective today adventure, which will enable cline in arrivals in the month of ellers who have stayed tically reduced and some (Thursday). consultants to better cater to cli- January – the fourth consecutive away because of prices. say may even contract,” In the biggest change since ents. Today, travellers don’t just month a decrease was recorded. Holidays in paradise he said. the Ueberroth family acquired say ‘I want to go to Hawaii’. They China, which in recent years have never been cheap. Industry officials the company 10 years ago, all say ‘I enjoy wellness or food and edged out Europe to become the Said Kevan: “We are up- said the decline in tour- 650 member hotels have wine, and I’m open Maldives’ top source, has been in front and tell clients the Riyaz: discounts ist numbers was caused been moved to one mas- (to ideas)’. We have the doldrums since September, Maldives is an expen- will help by an anti-corruption ter brand, Preferred Ho- 650 hotels that cater declining by 1.7 per cent in Sep- sive destination and they need to drive in China triggering cautious tels & Resorts, under five to those experiences.” tember, 3.5 per cent in October, budget US$300 daily if the book- spending, newer rival destinations, collections: Legend, LVX Asked if Summit 4.9 per cent in November, 12.2 per ing includes breakfast only.” and Maldives becoming a less af- (luxury), Lifestyle, Con- and Sterling are up for cent in December and a whopping Andrew Drummond, general fordable holiday spot. Speaking nect and Preferred Resi- sale since they have 33.1 per cent in January. Adding manager of Maalifushi by COMO, on the condition of anonymity, dences. brand equity, she said: to the woe, Russia unsurprisingly believes a real luxury market will an airline executive said: “People President and CEO Ueberroth: clarity “Right now we have was the worst performing market remain for the Maldives. “There are careful about spending while Lindsey Ueberroth, told no plans to sell them, in January, dipping 38 per cent, is no question the Maldives has companies are cautious on spon- the Daily yesterday that chang- but who knows what might hap- latest figures from the Maldives experienced a slowdown. Having soring overseas tours (due to the ing consumer trends, and hotel pen down the road.” Ministry of Tourism shows. said that, Maldives has positioned anti-corruption drive). There is chains moving into the space by She admitted there was “a bit All this saw Europe back as the itself as a luxury destination and downward pressure on all out- launching collections that cater of sadness” among Summit and number one market to the Mal- because of this, there will be a size- bound traffic from China.” to independent hotels, triggered Sterling partners to part with a dives, its market share rising from able section of the market which is The head of a travel company the restructuring. brand they have had for 25 years 43.9 per cent in December to 54.1 going to be relatively impervious said hotels impose a seven-night “We thought it was the perfect “but once we communicated it per cent in January. Italy rose 16.9 to some of the currency varia- minimum stay rule during peak time for us to clarify our brand, to them, all our partners thought per cent in January, the UK 6.6 per tions,” he said. “Many of the visi- European travel seasons, Novem- take a legacy brand, Preferred this was really a good move”. cent and Germany 8.7 per cent. tors who holiday at the deluxe end ber-December and March-April, Hotels & Resorts, which is the The challenge now is to com- With Lufthansa looking to oper- of the market will themselves be a disincentive to Chinese visitors most well-known, and elevate it municate it as well to consumers ate twice-weekly Frankfurt-Malé operating in different parts of the who average four nights. The with a strong consumer aware- and the travel trade, she said. flights, Europe is likely to hold on world and will have spread their question also is whether the Mal- ness,” said Ueberroth. Aloysius Lee, CEO of South to its regained position. currency risk, if not their wealth, dives has a real hold on Chinese “By taking one master brand Beach hotel in Singapore, a new David Kevan of Chic Locations globally to minimise the impact of holidaymakers. The ministry’s vis- and creating five collections un- Preferred member, said the de- UK, said the offers, in the form of exchange rates.” itor survey 2014 suggests not. Less der it, it would be more intuitive velopment will be under the extra free nights, room or meal But he noted that resorts heav- than 10 per cent of Chinese tour- for consumers, who look for dif- LVX collection. “We perceive this upgrades, etc, help as the British ily dependent on markets such as ists are repeat visitors. In contrast, ferent styles of luxury when trav- (move) would allow PHG to fo- pound has fallen against the US China have already started to put more than 25 per cent of British, elling. When you’re travelling cus on different market segments dollar, the hotel currency in the out strong offers in the market, Italians and Germans have visited with your family, it is different for the respective properties. We Maldives. “diluting the value of potential the Maldives two to 10 times. – from when you travel with your expect PHG to drive better re- Mohamed Riyaz, managing business prospecting for a bar- Additional reporting by Feizal spouse, for example.” sults as a result of the rebranding director of Lets Go Maldives, said gain”. “China is the single larg- Samath Ueberroth also believes travel exercise,” said Lee. 5column (236mm) x 90mm 5.3.2015 TTG Show Daily ITB Berlin 2 News/Snapshots PICC peddles Too good to give up new MICE area Putrajaya International Convention Cen- Indonesia is not giving up on Europe; ‘We’ll be here next year’, says minister tre (PICC) is making its debut at ITB Ber- lin this year with the aim of promoting By Mimi Hudoyo “I believe that this will stimulate busi- Indonesian trade and hotel industries, Putrajaya as a one-stop centre for business THE Indonesian government will not ness into Indonesia and, with the market especially those handling European events and leisure. abandon Europe in its marketing and growing, Garuda Indonesia will also im- market. The venue aims to secure “a few” meet- promotional efforts in favour of other vol- prove its network in Europe.” Ratih Ning, president director of ings and incentive groups from Europe, ume-generating markets closer to home, He reassured the trade: “We will con- Pacto, said: “In terms of numbers, the each below 2,000 delegates. said tourism minister Arief Yahya. tinue to participate at big events in Eu- European market may be smaller than Badlishah Ahmad, CEO of PICC, said: Speaking to the Daily, the minister rope such as ITB Berlin, WTM London, Indonesia’s neighbouring countries, but “Our main intention is to attract more sought to address concerns among the and will also do sales missions.” Europeans stay longer and spend more.” meetings and conferences from Europe. Indonesian trade and hotel industries, Participation at ITB Berlin last year Magnus Bauch, owner of Matahari At this show, we are targeting European especially those handling European was estimated to have materialised Rp3.9 Beach Resort & Spa Bali, said: “We PCOs and outbound MICE players with markets, that the government was not trillion (US$300 million) worth of busi- should not only think about volume but our offerings of being a one-stop centre giving up on this longhaul sector. ness for Indonesia, and Arief expects an how much they bring in to the economy. for travel.” Having looked at tourism statistics, increase of 10 per cent for this year. “One European traveller’s spend can “Our strength is in our location and our Arief acknowledged that the European At the ASEAN Tourism Forum in Jan- be equal to 10 Chinese tourists’.” value-for-money proposition. We are less traveller’s average spend is twice that of uary this year, the minister had told TTG Rocky Praputranto, operations direc- than an hour’s drive from Kuala Lumpur. other tourists. Asia that the ministry would allocate its tor of Panorama Destination, pointed There are fewer distractions and less traf- He observed: “While the number of promotionate budget proportionately to out: “Other Asian countries’ promo- fic in Putrajaya.