Is the clock ticking for the sharing economy?

“The clock could be ticking for businesses like Airbnb, Wimdu, 9Flats and HouseTrip (they forgot Roomorama) as new regulations gradually being introduced in some cities around the world begin to threaten their core business – but the problem is bigger than that.

In new York

While stories like Airbnb’s future in New York being questioned as a result of short-stay regulations have made headline news in the past, there’s a growing backlash against the sharing economy that could spread to other industries.

In New York, Airbnb’s major problem is a rule that clearly defines hotels and apartments (stays of 30 days or longer) as different things. Hotels have to comply with fire regulations and other safety rules while apartments do not. It’s not restricted to the US either, Airbnb has attracted its fair amount of attention in Amsterdam for renters letting out their properties without the appropriate permit.

A domino effect ?

The problems and scrutiny is not new and not entirely unexpected – new models of bringing a service to market have disrupted entire industries, and the incumbents in those markets, so a certain amount of resistance is unsurprising. But what started in New York two years ago is quickly becoming a domino effect.

With it, the pressure on companies like Airbnb, Wimdu, 9Flats and HouseTrip is intensifying; new laws that effectively cut off large swathes of their business, or worse, render them completely banned.

In Berlin

On Thursday, one of these new laws passed the first rung of approval in Berlin. It will specifically limit the number of apartments that will be available for holiday rental within the city. Why? Because it said it wants to secure apartments for Berlin residents; the fear is that an influx in the number of people renting out their apartments in the short-term will drive up rental and housing prices in the long-term. Another clause in the law would mean that apartments could not be left empty at all, too.

The proposal is next expected to go to the senate for approval, before being passed into law officially.

Following the expected introduction, the city’s roughly 9,000 holiday rental properties will be reduced to around 3,300. Clearly the impact on these businesses is significant. Bear those figures in mind, 3,300 apartments in a city that has 1.9 million of them, that’s only a fraction of a percent of the total apartments available, quite how that could affect long-term rents in the city is a curious question.

The decision to crack down in this way is even more curious when you consider how Berlin has grown into a booming and recognisable tech hub, but Ryan Levitt, a spokesperson for HouseTrip told TNW that locals’ patience for outsiders was wearing thin:

They believe that there are too may people for too few apartments. The reality is the success of the tech industry in Berlin is bringing in 40,000 new people to move to the city each year, combined with the success of the German economy and the repositioning of Berlin as the capital of Europe. You cannot put investment into a city, establish a new capital of Europe, drive a new tech industry that brings in lots of people and then turn around and say ‘we don’t want you foreigners’… The tech hub is now a bit of a bubble.

It’s a more complex and delicate situation though. The truth is that house prices are rocketing in Berlin, and local residents that don’t have a foothold in any of the thriving industries are paying the price. And as is the case in other cities, politics can play a big part in the level of tolerance a city has. If it’s election year and your local residents don’t like the influx of new people, there’s a good chance that concern will be addressed, even if it doesn’t seem to make sense or really address the problem.

Berlin’s drivers have been the government, tourism and now tech. So yes, it is getting more expensive for the everyday Berliner who doesn’t have a tech education, who doesn’t work in the government, who is just trying to get by – yes, they see on the surface that the rents are going soaringly up but they’re not reaping the benefits of this tech investment, of this government investment.

What they see is [foreign] people coming in and buying apartments, and then selling them a year later because the price of residences has gone up [so much] … It’s like London was six years ago.

As was seen in New York though, where there is demand, there will still always be supply. So prohibitive regulation will simply drive the economy underground and into murkier areas; not a helpful situation for either party, as Roman Bach, a spokesperson for 9flats noted in a statement:

Considering how important tourism is for Berlin, we consider this new law incredibly short-sighted as it is trying to regulate a booming market that is driving a lot of Berlin’s new wealth. Driving this economy underground and into the shadowy areas of the legal system is not productive and takes a potentially great source of tax revenue away from city coffers.

A Parisian thing

The focus on regulation of holiday apartment rentals in Europe may have grown out of scrutiny in New York, but it landed first in Europe in Paris. One of the most visited cities in the world.

On the surface of things, the freshly amended proposals to the short-term rental law in Paris look more open than in say, New York, but it is in fact equally unworkable for anyone wanting to just rent out there apartment now and again. Like Berlin, the clarifications of the existing law have passed the first layer of government – with the next step set to be the debate of any amendments in December.

Key to the tweaked regulations is the necessity for a permit, if you get one, holiday rentals are legal. Simple! Not so much. If you get your permit, your property is declared a commercial property instead of a residential one but in order to be allowed to do this, you have to find a commercial property within the same area of the city that can be turned from a commercial property into a residential one. So, while you’re free to rent out an apartment if you get a permit, actually getting one could be a bit trickier.

The concern driving the clarification of existing regulations is the same as stated in Berlin: there are too many rental properties on the market, meaning higher rents and too few apartments for locals. While this position is arguably more relevant in Paris – it has far fewer overall apartments than Berlin, so percentage-wise the number of holiday apartments is higher – it’s also arguable whether the proposed measures will do anything to appease the disgruntled locals and manage to return rental rates to a lower level. Housing is always a hot topic in an election year.

To sprinkle a little irony on the situation, the city of Paris also has aspirations of catching up on the tech game with the 1000 Startups @ La Halle Freyssinet project providing the largest digital incubator in the world.

It’s not just Paris, or Berlin either, Spain too is now taking a long, hard look at how it deals with holiday rentals.

Until May this year, there was no national law covering short-term holiday rentals. Instead, each region decided what was appropriate. By May 2014, a working group from four regions of Spain will have to come up with the new national law, but currently, HouseTrip’s Levitt tells TNW, the four regions are not talking to each other due to a difference in opinion on how it should be approached. On one side you have advocates for a simple registration and taxation system, and on the other you have representatives from areas that traditionally draw a lot of their income from hotels, like the Canary Islands – which already has complex holiday home rules. Make of that what you will.

Levitt told us that there are also now rumblings coming from places like Vancouver, Quebec and Malta about whether they need to look into regulation of services such as these.

A better way

All is perhaps not lost though, Amsterdam, as we mentioned right at the start, currently operates a permit-based system. However, it seems that the city has recognised that it’s an outdated system that’s not appropriate if it wants to make the most of the new opportunities, Levitt explained:

Amsterdam realised that the power of social travel is unstoppable and past the point of no return. They know people want this travel experience. So they decided to appoint a social travel specialist [who is] now sitting down with all of the platforms to find ways to make social travel work effectively for their city, that’s from nuisance complaints to taxation and finance to safety and security. Their view is ‘we can’t ban this’ and that it’s stupid to.

If you create laws that make it workable for the city and platform and the tourists and the locals, everyonecan benefit. The city can benefit from taxation. You can benefit because you’ll have a standardized [system] … If there is a problem with an apartment, or a noise complaint, it can be dealt with easily, as opposed to hiding it underground.

Currently though, right now you still need a permit in Amsterdam while they work through this process of adjustment to the new market models.

A bigger threat

Most of the attention to this point has focused on housing and short-term holiday rentals, but the threat to the wider sharing economy is writ large. You only have to look at the amount of resistance other services like the taxi-cum-ride-sharing service Uber has faced in some of the cities in which it operates to see that we’re likely to see the growth of new and more specific regulations to govern all sorts of different services. Levitt agrees:

This is just the first step. Housing is first, the next will be cars and car rentals and it’s just going to go on and on. It all plays into the hands of companies that want you to keep buying more and more and more stuff. What it always boils down to is money, what these governments want is cash. We’ve always said we’re willing to sit down to find answers and solutions, but because those solutions would probably require some time and some sort of investment from the city they just don’t want to deal with it.

With big business, local politics and all sorts of other pressures bearing down, companies operating within the sharing economy right now face an uphill challenge, but as has already been demonstrated by Amsterdam’s approach to holiday rentals, by consulting with all parties involved these services can bring benefits for government, travellers, and locals alike”.

Source : http://thenextweb.com

Accor studies online habits of Asia Pacific travelers

Thai and Chinese travelers are the most active social media users in the Asia Pacific region, and Australians and New Zealanders are the least active, according to the inaugural Accor Hotels Asia Pacific Social Media Monitor, which studied the social media habits of travelers from across

Asia Pacific.

Accor worked with ORC International to survey more than 5,400 travelers across 11 countries in Asia Pacific (APAC) who had stayed in a hotel at least once in the past 12 months and who use social media at least once a week.

Specific findings from the survey include:

Facebook is the most universally used social network in APAC, with the top users being in Thailand (72%), the Philippines (60%) and Singapore (55%).

Facebook is only challenged by strong local players in some specific markets: WeChat and Sina Weibo in China, and Line in Thailand.
Even in China where Facebook is not readily accessible, 15% of respondents said they used it and checked it several times a day, almost as often as local site RenRen.

Google+ is gaining traction in the region, with 24% of respondents using it multiple times daily. Despite this overall growth, its usage remains very limited during (13%) and after (4%) trips.

Instagram gained somewhat low scores, with just 12% of overall respondents saying they use it at least once a day.
Indian guests are the most likely to interact with hotels after their stay (79%), while people from North Asia, Hong Kong and the Pacific are the least likely.

Completing guest satisfaction surveys is still the most popular after-stay interaction (29%), with comment cards not far behind at 19%, especially for older guests. Only 14% of respondents actually posted a review online, with Indians and Singaporeans the most likely to do so.

Overall, direct communication with hotel staff is the preferred way of interaction with hotels, whether for a negative (34%) or positive (28%) experience.

Source : http://www.hotelsmag.com

Vacation Rentals Startups Are Hot, But How Real Is the Market?

Get ready for the next glut of travel startups: The allure of the vacation rental market is calling.

If you search AngelList for vacation rental companies, you can compile a list of nearly 100 companies ranging from Rentini (“A blend of Airbnb and HomeAway spiced up with Vayable”) to Pinocular (“Kayak for vacation rentals”), and BookingPal (“Next generation vacation rental management”).

Some of the startups, such as Turnkey Vacation Rentals, have attracted funding from high-profile investors.

There are definitely plenty of reasons to be excited about the potential of the vacation rental market, which is transforming the lodging industry.

Market leader HomeAway notched $280 million in 2012 revenue, and just partnered with Expedia, and this has the potential to help make vacation rentals even more mainstream than they are becoming today.

And, there is talk about Airbnb, with its peer to peer rentals, generating a $2.5 billion valuation.

These developments, coupled with a new report from PhocusWright that pegs the U.S. vacation rental market alone as a $23 billion industry, are stoking the imaginations of the next batch of entrepreneurs looking for good startup ideas.

But that seemingly huge $23 billion number may be a little misleading because that vast majority of vacation rentals owned by individuals as second homes are still booked offline.

While professionally managed properties are transitioning to online booking, a huge swath of vacation homes are owned by individuals who may have not have much interest in transacting business online, especially if it brings increased scrutiny from tax authorities.

There are some parallels between the vacation rental, and tours and activities markets.

PhoCuswright estimated that the tours and activities sector was a $27 billion market in the U.S. in 2009.

Both markets — tours and activities, and vacation rentals — are highly fragmented, and despite the very enticing sound of their respective market dimensions, there are huge portions of the tours and activities, and vacation rentals markets that aren’t addressable by the current crop of startups.

In both tours and activities and vacation rentals, there is plenty of potential, but it may take an extended period for the markets to take shape to the extent that there would be substantial pool of customers looking for solutions.

There has been a substantial shakeout among tours and activities companies, particularly the peer-to-peer variety, and with more vacation rental startups drafting business plans as we speak, there may be bitter disappointments in this arena, as well.

It will be the challenge of vacation rental startups to help accelerate online adoption by vacation rental owners, but like the many of tours and activities that have crashed and burned, the vacation rental startups may find some heavy lifting there.

One silver lining in the vacation rental startup trend is there does seem to be a relatively high percentage taking a business-to-business tack, offering marketing services and software for owners and professional property managers rather than merely going after consumers.

Still, big players, such as HomeAway, are offering both B2B and consumer services for vacation rentals, so there will be very tough competition for the ever-growing number of startups.

Following is an Infographic on key findings from the PhoCusWright vacation rental study:

 

Source : http://skift.com

Ascott Serviced Apartment : more and more in Thailand !!

Ascott has extended its footprint to Thailand’s Eastern Seaboard economic region, winning a contract to manage a 133-unit serviced residence in Sri Racha district,

 Scheduled to open in 2014, the new Citadines Grand Central Sri Racha will enhance Ascott’s position as one of the largest international serviced residence owner-operators in Thailand with over 1,800 apartment units across 10 properties.

Citadines Grand Central Sri Racha will be located close to retail outlets such as Robinson department store, restaurants, international schools and medical facilities. It will also be a 30-minute drive from the popular beach resort of Pattaya.

The serviced residence will offer a choice of studios, one and two-bedroom apartments that come with a fully-equipped kitchen, separate work and living areas, as well as modern amenities.

 Residents will be able to enjoy a refreshing workout at the gymnasium, take a leisurely swim in the pool or relax at the onsen in the property.

Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said, “Thailand is ranked amongst the world’s best emerging markets for investors. Its resilient economy, pro-investment policies, skilled workforce and business infrastructure continue to be attractive to foreign investors. In 2012, total foreign direct investment in Thailand reached more than THB980 billion, the highest in the past 10 years. Besides having a strong presence in Bangkok, Ascott sees significant potential in expanding to Thailand’s Eastern Seaboard where many multinational companies are based. By bringing Citadines to Sri Racha, Ascott will have 76 Citadines-branded properties in 45 cities globally.”

Mr Arthur Gindap, Ascott’s Regional General Manager for Thailand and Philippines, added, “Sri Racha is home to the Laem Chabang port, the fourth busiest container port in Southeast Asia. It is situated amidst thousands of hectares of industrial estates which house multinational companies involved in automotive, electronics, petrochemical and steel manufacturing such as Fujitsu, Sony, ExxonMobil and Bridgestone. As Citadines Grand Central Sri Racha will be the first international branded serviced residence to open in Sri Racha, Ascott will enjoy first-mover advantage in catering to the strong demand for quality accommodation from expatriates and business travellers working in the region. Citadines will offer guests the flexibility to choose the services they require to customise their stay.”

In Thailand, Ascott currently operates nine properties in Bangkok. They are Ascott Sathorn, Citadines Sukhumvit 8, Citadines Sukhumvit 11, Citadines Sukhumvit 16, Citadines Sukhumvit 23, Somerset Lake Point, Somerset Park Suanplu, Somerset Sukhumvit Thonglor and Vic3.

Serviced apartment reach 12-19% annual yield on investments

Serviced apartments are fast becoming a hot real estate avenue with as much as 12-19% annual yield on investments, against 10-12% returns in the commercial segment.

According to experts, developers, primarily from the hospitality sector, are targeting NRIs, expats and now even domestic investors in the serviced apartment space. It offers both capital value appreciation as well as rental returns to investors.

Hotel Leela, Grand Hyatt and Marriott International are among the major

hospitality chains with serviced apartments.

Ascott, one of the largest serviced residence owner-operator, has a tie up with Ireo to offer such apartments in Gurgaon and is expanding in rest of the country as well.

There are many firms based out of Gurgaon, which offer only serviced apartments of various developers including DLF, Unitech and others, to corporates, tourists for short as well as long term stay.

Ashutosh Limaye, Head – Research and REIS, Jones Lang LaSalle India says, “Of late, domestic investors along with NRIs are more keen to invest in serviced apartments as realty segment – residential and commercial –are not offering very good returns. It is pretty much possible that the returns are as high as 12-19% in serviced apartments space.”

He said the capital appreciation in residential segment is around 5-7% while it is less than 5% in commercial space. In yields, residential offers minimal 2.5-2.75% returns to an investor, while it stands at over 12% in commercial space.

Serviced apartments are fully furnished studio or 1, 2 & 3 BHK apartments with a kitchen managed by a service operator. The construction cost for such apartments is much higher compared to other residential apartments, and is generally at par with any five star hotel in terms of amenities and other facilities such as meeting rooms, housekeeping, swimming pool, gym. Many multinational firms also have serviced apartments as their guest houses.

Even Samir Jasuja, Founder and CEO, PropEquity agreed that serviced apartments are the next best promising option for investors.

“The capital price appreciation and the rental yield offered by a serviced apartment is typically higher than commercial and residential property. This segment offers ultra-luxury lifestyle, services and great opportunity for investors who look for both regular income and additional upsides. Currently, this segment is receiving a lot of interest from NRIs and HNIs,” Jasuja says.

Serviced apartments concept is a big hit in the US, Europe and other developed markets and is now fast catching up in India as well. These are ideal for an extended stay by a tourist or for employees who are on a relocation or project assignment, an executive from a leading developer says.

Source : http://www.business-standard.com

Frasers Hospitality : 39 International Awards in 9 Months

Frasers Hospitality (serviced apartments and hotel residences), has garnered 39 coveted international awards in only nine months, making it one of the most highly awarded serviced residence providers across Asia, Europe and the Middle East.

Frasers was most recently named Corporate Housing Provider of the Year for the second consecutive year at the Expatriate Management and Mobility Awards (EMMA) held in Singapore. The award was voted by a judging panel of professionals from multinational organisations within the mobility field, whose feedback was: “Frasers’ constant strive for service excellence and innovation to meet the evolving needs of the corporate traveller is fantastic.”

This comes hot on the heels of winning five World Travel Awards, which were conferred in recognition of its commitment to excellence. The group was named Middle East’s Leading Serviced Apartment Brand and Leading Serviced Apartments accolades were awarded to its properties in Bahrain, Dubai and Doha. In Europe, Fraser Residence Budapest was named Hungary’s Leading Serviced Apartments. Frasers also holds the current title as the World’s Leading Serviced Apartment Brand, as voted by travel and tourism officials worldwide.

Distinguished by the World Consulting and Research Corporation, not only as Asia’s Most Promising Brand 2012/2013, but also for Asia’s Most Promising Leader 2012/2013 for Chief Executive Officer Mr Choe Peng Sum, Frasers continues to receive recognition from the most influential organisations in the international travel industry as well as directly from travellers. Clear consumer endorsement of its exceptional service is reflected in the numerous Travellers’ Choice Awards and Certificates of Excellence it has garnered from TripAdvisor.

Among some of the notable awards this year are Best Serviced Apartment Provider of Singapore by Business Destinations, Best International Serviced Apartment in China by Golden Horse Award and Indonesia’s Leading Serviced Apartment and Suite by Indonesia Travel Tourism Awards.

Of particular note also are the awards that have been won by Frasers’ new urban-inspired hotel residence brand, Capri by Fraser, for its flagship property, Capri by Fraser, Changi City/Singapore, within just a year of opening. It has been named Best Airport Hotel and Top 5 Most Loved Hotels by AsiaRooms Hotel Awards and received the Green Hotel Award from Singapore Hospitality Association.

“We are very honored to be the recipient of so many industry accolades. Recognising management and service excellence, these awards not only endorse the hard work of our entire team but also our continued commitment to delivering Gold Standard services. We also see these as the valuable benchmarks that we measure ourselves against as we continue in our quest to grow Frasers’ global footprint,” said Mr Choe Peng Sum, Chief Executive Officer of Frasers Hospitality Pte Ltd.

Frasers Hospitality Pte Ltd’s current portfolio, including those in the pipeline, stands at 86 properties in 44 key gateway cities, and more than 15,000 apartments worldwide.

Why The Destination Marketing Organization Model Is Broken

A Destination Marketing Organization (DMO), also known as Convention & Visitors Bureau (CVB), looks after the promotion of a territory and its key constituents: accommodations, restaurants, attractions, events, transportation, guided tours and any other retailers catering to travelers in some shape or form. Less than a year ago,

Troy Thompson wrote a must-read piece on his blog, titled 3 reasons why the DMO will not survive. It certainly struck a nerve among travel industry peers, in great part because it highlighted a reality among DMOs which is that many are not adapting to the fast-evolving environment in which we now live.

While I don’t believe DMOs will die anytime soon, at least not a majority of them, I do however strongly believe there is a serious need to rethink their business model and role within the travel ecosystem at this point in time and moving forward. Here a five important reasons why I feel their model is broken.
4 Key Disruptors
Today, destinations are facing a much different reality with traveler behaviors and decision-making processes shifting like never before. This is due in great part to four important disruptors shaking the foundations of the industry.
1. The collaborative economy

Also known as the peer-to-peer (P2P) movement, we are know seeing individuals taking steps to creating their own travel ecosystem. Many have heard of AirBnB, HoweAway, Roomorama, Wimdu or Couchsurfing, yet there are countless sites now enabling people to rent out a room, a sofa or the whole apartment or house, either through home-swapping schemes or via transactional sites. Vacation rentals are one of the hottest segments in the travel sphere, with listings increasing both in the key markets as well as emerging economies, demonstrating its universal appeal. But while this opportunity (or threat, depending on your point of view) is often associated with accommodations, truth is it impacts every aspect of the travel experience once at the destination:

Transportation: Through sites like GetAround, Parkatmyhouse or Zimride, folks can share a ride, find a place to park or even rent out your own car to someone else you may need, i.e. RelayRides (see video below)

Restaurants: New platforms such as Cookening allow locals to host travelers to a home-cooked meal, thus bypassing the traditional restaurant scene, while tapping into the “do it like local” vibe that is a growing trend worlwide. Then there are review sites such as Yelp,

Chowhound, Foodspotting or Forkly that will also connect with user reviews about favorite spots to eat & drink.

Experiences: Are you familiar with the concept of “greeters” in a city? Born in New York City during the 1990s, we are now seeing more and more of these volunteers show you around the city, in particular in France and withing French-speaking Europe. Then you have services such as Vayable, Uniiverse, or GetYourGuide that basically address the core of your trip, that is: the experience once at the destination. Would you prefer to hop on a classic 3-hour GrayLine Tour by bus, or spend a couple of hours with a local who will share his or her favorite spots?

Thus, the collaborative economy presents as much potential as it is a threat to the DMO model right now, since none of these new players will tend to become members and partake in marketing efforts for the destination. It is also hurting accommodations who do bother to follow regulations yet get bypassed by these new and aggressive competitors.
2. The rising importance of UGC and social platforms

Social media and the incredibly fast adoption rates of smartphones and tablets by today’s travelers have made the information-seeking process much faster and complex. Conversations about a future, ongoing or past trip are taking place simultaneously on numerous platform, for example when someone checks-in on Foursquare while connected on Twitter, or by taking an Instagram pic that’s automatically shared via a person’s Facebook’s feed. Leading DMO have embraced sophisticated tools to monitor the chatter, with an active presence on all key platforms: Pinterest, Instagram, Tumblr, Google+, Linkedin, Foursquare, Tripadvisor, Facebook, Twitter, not to mention various forums where a brand may be mentioned, i.e.

WikiVoyage, Google Reviews, etc. But a majority of destinations are struggling with this challenge, where monitoring these conversations is a daunting task, let alone trying to chime in and engage with potential travelers or those at the destination having questions or complaints.

 

Travel planning is dominated by online resources
Source: Tripadvisor, TripBarometer, March 2013

As for user-generated content (UGC) sites, their importance keeps growing, surpassing the age-old influencer that parents & friends were traditionally. Indeed, more and more studies and research tend to demonstrate that we trust peer reviews or reviews from strangers more than those from friends or colleagues. Yet, few destinations incorporate a tactical plan with Tripadvisor, for example, as part of their digital marketing strategy.
3. The dominance of OTAs in the distribution system

Here’s a question for you: Should a DMO have a booking platform on its website? When was the last time you ever went to a destination’s web site and booked your accommodation from there, perhaps along with your flights and some attractions or activities to complement it all? Never, that’s right… Okay, so maybe I’m exaggerating a bit here, but this example highlights another age-old question: what should the role of the DMO be in the distribution system right now? Big hotel chains, and independent hotels in particular, are struggling against the ever-growing dominance of online travel agencies (OTA), in particular Expedia and Booking.

But since many travelers start with a destination in mind before they shift over to the accommodation options, how could the DMO steer more bookings towards hotel members directly, rather than onto third parties?

The region of Eastern Townships, in the province of Quebec (Canada), recently inked a deal with Booking.com to become their de facto booking option on their destination site, figuring “if you can’t beat them, might as well join them”.This won’t help more small property owners getting transactional, but the gamble here is to bring in more marketing power and spotlight to the destination and beef up the transactions. Will it work? Too early to tell, but we’ll be monitoring closely.

4. Mobile, mobile, mobile

The last major disruptor is the omnipresence of mobile, through smartphone or tablet devices. In June 2013, it was esteemed that more than 40% of all online research for travel came from a mobile device – up from 25% at the end of 2012! Yet, the greatest challenge this brings to the DMO is in the real-time access, how we can engage with the traveler while at the destination. Of the six elements required to make it as a digital destination, one is often under-looked: the need to have a separate mobile site for travelers at your destination. We tend to forget that our behavior at the destination is much different than while at home or the office, researching and planning the trip. So why should the site be the same?

A great example of a travel destination that went mobile is Singapore, with its Handy project. By providing smartphone for a small daily fee, the destination is giving value with what travelers seek out the most: wifi connectivity, unlimited local and international calls, and apps answering most sought-after queries, i.e maps, translation, currency, showtimes, transportation details, etc.
BONUS DISRUPTOR: Who’s the client?

At the end of the day, all these new technologies have created an open forum where information becomes readily accessible, yet curating it all is the utmost challenge and opportunity for the DMO. But in order to properly answer this need, the DMO must first answer the most basic question: who’s the client? The traveler or the member, constituent or political representative?Because you see, this is where the biggest problem lies (at least in Canada). Most, if not all, DMOs get their funding in great part from government, and in variable proportions from a membership. Hotels, for example, might pay in some instances an amount according to the number of rooms, which can mean substantial amounts on a yearly basis, in the tens of thousands of dollars. Just for their membership.

Other cities or regions will collect a tourism tax, but only with registered members of the Chamber of Commerce or Hotel Association for that area. This explains why, when the DMO seeks to build a marketing and communications plan, their ultimate client is not the traveler, but their member. Sure, there are exceptions to this model, but it is a very common one across the country. So if you pick up a brochure once at a destination, will you see everything it has to offer? No, you’ll see what all the members have to offer in that city. This was fine up until a few years ago, but with the above four mentioned disruptors, how long can this go on without creating dissatisfaction with travelers?
One thing is for sure: The DMO will need to adapt or die, and its business model will certainly need to be revisited to take into consideration the changing landscape of the industry.

 

Source Frederic Gonzalo : Senior marketing and communications expert & speaker with 18 years expertise in the travel and hospitality industry. Consulting since early 2012, I provide strategic planning, social media & mobile development counseling to small and medium businesses alike. Reach me at frederic@gonzomarketing.biz

Ascott Is First Serviced Residence Company to Be Conferred Business Superbrands Status

The Ascott Limited (Ascott), has been conferred the coveted Business Superbrands status in Singapore. Business Superbrands is an internationally recognised accolade which pays tribute to the best and most valued business-to-business brands around the world. Ascott is the first serviced residence company to receive this recognition.

The accolade is presented to brands that have met the stringent standards set by the Superbrands organisation in the areas of achievement, innovation, market share, reputation and corporate social responsibility. Brands were evaluated by Superbrands’ independent panel of marketing and branding experts as well as senior business leaders. Some of the notable brands that were accorded Business Superbrands status last year were SAP, IBM, Microsoft, Canon, SingTel and Singapore Airlines.

Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said: “Being the first serviced residence company to be recognised as a Business Superbrand has further cemented Ascott’s position as the industry leader. Ascott pioneered Asia Pacific’s first international-class serviced residence with the opening of The Ascott Singapore along Scotts Road in 1984. We have since grown to be the world’s largest international serviced residence owner-operator. Our target is to increase our brand footprint to 40,000 apartment units globally by 2015.”

Mr Lee added: “As we expand, we ensure that we give back to the local communities in markets where we operate and we also launch various innovative initiatives to enhance the Ascott experience for our customers. This Business Superbrands accolade goes to our staff for their dedication and hard work, and we will continue to strive to do better.”

Mr Mark Pointer, Chief Executive Officer of Superbrands Singapore, said: “To achieve Business Superbrands status, companies must have established the finest reputation in their fields, gain significant market share and attain a high level of brand recognition to be able to qualify. Achieving Business Superbrands status means that Ascott is seen as more trustworthy, of higher quality and has a better reputation.”

“Ascott is a renowned global serviced residence provider that offers high quality serviced residences across many of the world’s most vibrant cities. We are delighted to recognise Ascott as one of Singapore’s leading business brands and we pay tribute to the management and all of the people who work behind the scenes to build the business and the brand,” added Mr Pointer.

In Singapore, Ascott currently operates more than 700 apartment units in seven properties. Ascott opened Ascott Raffles Place, its premier serviced residence in Singapore, in 2008 after a S$60 million restoration effort.

Ascott had carefully preserved unique features of the former Asia Insurance Building which was Southeast Asia’s tallest building in the 1950s while transforming it into Ascott Raffles Place. In 2009, Ascott brought its Citadines brand to Singapore with the opening of Citadines Mount Sophia. Citadines is an established chain of apart’hotels in Europe which Ascott acquired in 2002. Besides Ascott Raffles Place and Citadines Mount Sophia, Ascott also operates Somerset Bencoolen, Somerset Liang Court, Somerset Orchard, The Heritage and Riverdale Residence in Singapore. The company will be opening another prime serviced residence in the premier shopping and lifestyle district of Orchard Road in 2017.

Source PR

Pan Pac opens second serviced apartment in Singapore

PAN PACIFIC Hotels Group will launch the 180-key Pan Pacific Serviced Suites Beach Road on May 7, in a lively district rich in Islamic history and culture.

Andrew Donadel, general manager, said: “This location will present the authentic cultural aspect of Singapore to our guests, which is unlike what they commonly see in the CBD area.

“Moreover, we are still located at the fringe of the CBD area so accessibility is not an issue at all.”

Within walking distance of Nicoll Highway and Bugis MRT stations, Pan Pacific Serviced Suites Beach Road has rooms starting from 45m2. The building houses a rooftop swimming pool, meeting room with facilities, gym and spacious living room, which can double as a lounge. Complimentary Wi-Fi access is also offered throughout the residence.

Pointing out the difference between this new property and the 126-room Pan Pacific Serviced Suites in Orchard, Donadel said: “There will still be people going for the Orchard belt for the luxurious shopping and city life. But this new one in Beach Road will appeal to those who want somewhere slightly quieter, yet still vibrant enough.”

He revealed that top source markets were Indonesia, Malaysia and China, with most guests staying between one and three months.

Donadel said Pan Pacific Serviced Suites Beach Road had been receiving a “steady flow” of bookings from corporate clients and the target is an 80 per cent occupancy rate.

Source : http://ttgasia.com/

Ascott enhances operational efficiency with worldwide roll-out of protel’s first global property management system

Singapore-based The Ascott Limited (Ascott), the world’s largest international serviced residence owner-operator, has engaged Xn Hotel Systems to implement protel’s Multi-Property Edition (MPE) property management system globally across its three brands of serviced residences – Ascott, Citadines and Somerset. Ascott is the first serviced residence company to implement this system on a global scale.

The new protel MPE, together with the suite of system enhancements developed specifically for Ascott, sets the stage for Ascott to further accelerate its growth with a next-generation technology platform that facilitates the delivery of Ascott’s unique brand of high touch services.

Following a detailed product and vendor evaluation process and successful trial site implementation of protel MPE conducted for Ascott in Singapore, Xn Hotel Systems was selected to supply and implement the property management system globally. Spanning all of Ascott’s three brands of serviced residences, the software changeover was completed in just over eight months. Given its pace and geographical spread, the project was the fastest and largest rollout of protel MPE ever undertaken.

With the new system, Ascott’s serviced residences in Asia Pacific, Europe and the Gulf region can now process reservations seamlessly worldwide. As a result, processing time for call reservations has been reduced by approximately 30%. Furthermore, Ascott’s properties can now track guests’ requirements and preferred timing for housekeeping services through the enhanced scheduling function.

Robert Adam, Ascott’s Vice President for Infocomm Systems, said: “Ascott has invested extensively in upgrading our technology to enhance operational efficiency so that we can focus on delivering personalised services to our guests. The successful implementation of the protel MPE property management system across our properties worldwide sets the path for Ascott to adopt new technological initiatives that will further enhance our guests’ experience. Initiatives include enabling our staff to use mobile devices to handle our guests’ requests anytime, anywhere.”

Greg Spicer, Chief Executive Xn Hotel Systems, stated: “We are delighted to have been selected as a systems and services provider by Ascott and are especially proud that the Xn project team and its partners delivered the first phase of software implementation in a timely and efficient manner. Given the global span of the installation, Ascott was one of our largest projects to date. Over 100 sites rolled out protel MPE successfully, averaging 14 properties per month. We look forward to providing services to Ascott for the next phases of the project and in the years ahead.”

Manfred Osthues, Managing Partner protel hotelsoftware, commented: “We are absolutely exhilarated to welcome Ascott among our clients. With over 31,000 apartment units, Ascott is the world’s largest international serviced residence owner-operator. Having switched to protel MPE, Ascott now constitutes the first live multi-property environment across Southeast and North Asia, India, Australia, Europe and the Gulf region. We are proud and happy to contribute to Ascott’s continued growth, and look forward to a fruitful and beneficial partnership.”

 

Source : http://www.hospitalitynet.org