An improved business environment in Asia Pacific means more travellers on the road, according to a regional chief at HRG.
James Stevenson, HRG’s executive vice president for Asia Pac, said that while the Asian economy was resilient through the recession, business travel had declined like everywhere else.
However, now the economy is more vibrant travellers are on the move again, with the travel management company (TMC) reporting a “massive growth” in the volume of bookings in the region.
Some areas are almost reaching 2008 levels, said Stevenson: “Now we are seeing increased business travel to countries such as Singapore, with second quarter GDP growth figures of over 20%, and increased business travel is reflecting this.”
At HRG’s Singapore offices, staff numbers have increased by 25% and in countries like India and China the TMC is increasingly offering its staff as “implants” working from within clients’ offices.
Stevenson’s comments were supported by Aiden McAuley, Swissôtel’s regional vice president, Asia Pacific.
McAuley said: “As the industry picks up from the slowdown, our properties in Asia are seeing positive growth from business travellers again.”
The largest growth in guests staying on business has been seen in Singapore, Sydney, Shanghai and Beijing, he said.
“These hotels have been experiencing an increase in business travellers in the last quarter,” said McAuley, “and we anticipate strong demands for 2011, especially for our premium rooms and suites.”
The hotel group has been able to increase its average room rates and the volume of sales, pushing an increase in revenue per available room (RevPAR).
McAuley added a word of caution for 2011, however: “Overall, 2011 looks positive but the growth rate year on year may not necessarily see the same pace, as 2010 was emerging from a lower base in 2009.”
HRG’s Stevenson said the upturn in business travel in 2010 was supported by business culture in the region, where the “true value” of face to face meetings is highly respected.
He also said that technology is fast developing in “tech savvy” Asia Pac – smartphone use is high and so mobile solutions are popular. The use of online booking tools is also growing.