Face-to-Face: Adrian Brown
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Travel Daily chats with Adrian Brown, general manager of the Chatrium Hotel Riverside Bangkok…
Q) How is the local hotel industry performing, and what trends do you expect to see for the rest of the year?
Following a very positive growth in 2013, it was expected that 2014 would show even greater growth. As a lead in to 2014 and prior to the political unrest, the level of forward bookings was indicating an additional growth of between 6-8% in bookings for 2014. As the political situation become a more permanent issue, the pace of forward bookings dropped away. However, while first quarter budgets were not reached, year on year growth was achieved all be it small.
The impact of the political unrest and the declaration of martial law has perhaps had its greatest impacted on the second and third quarters of 2014 where travel warnings were issued by many countries and the impact of international travellers not able to gain travel insurance while martial law has been declared. Collectively, hotels here in Bangkok especially have experienced a drop in occupancy of up to 25-30% during this period as a result of the political instability.
With the international markets developing a better understanding of the impact the political situation is having on Thailand and as the regular international travellers to Thailand report back to their respective countries through the various social media avenues, the overall confidence in the international traveller to come to Thailand is building again and as reflected in our forward bookings for the rest of this year and from what we see in the pick-up trend in the first quarter of 2015.
Q) What trends are you seeing with regards to specific travel segments (FIT, business, group, MICE etc)? How do you account for these trends and do you regard these as long- or short-term?
It is true that the more traditional channels of booking a holiday through ones local travel agent is being replaced by the various on-line channels. I believe this trend is being enhanced through the various social media channels, such as TripAdvisor, in which the guest uses now to make their decision on the destination and hotel they will stay in.
With online selling channels being so much more dynamic than the more traditional marketing and sales channels, it is important today to utilise such vehicles to market/expose your brand to the forever growing online guest, but to combine this with strategies to convert these guests to become loyal to your brand/ property.
With respect to group , mice and more specifically corporate FIT’s, it still remains that to win their business one still needs to build a relationship and to seek an understanding of the specific needs, wants and desires of that guest.
Q) What are your hotel’s main guest source markets, and are you seeing a rise in demand from the world’s emerging markets, like Russia, India or China?
Source of market remains seasonal and I could not imagine that changing in the foreseeable future. Yes the emerging markets for Southeast Asia do include Russia, India and China, however there still remains significant growth within the more traditional markets sources such as England, Germany, Australia and America. Within the region, I believe Indonesia still remains one of the most untapped sources of business for Thailand given the population and wealth of that country.
Q) What strategies are you putting in place to adapt to these new trends, both from an operational and marketing standpoint?
The implementation of structured sales calls visiting key decision makers within these specific countries and with the core focus on developing an understanding of the needs, wants and desires of those countries people when travelling overseas. With such feedback, we then develop/ tailor appropriate products and services according to those needs and then utilize the channels in which we have sourced that information from to on sell us. We combine this approach with conducting fam trips for the various key decision makers within those countries we seek their business.
Q) The NCPO and TAT are introducing a raft of changes to boost international arrivals. Do you feel these policies will have a meaningful impact, and what else might authorities do to achieve this?
While these specific activities will certainly help drive more business, there are I believe more key issues to resolve that will have a greater impact in driving more arrivals and that includes the lifting of martial law.
For the longer future of sustainable tourism here in Thailand and with the majority of overseas guests visiting the various resort style destinations, maintaining an environment that is free of garbage/ rubbish is critical. In order to achieve this, one must start by educating the population of Thailand of the appropriate disposal of garbage and to develop a recycling culture. In the same manner in which Australia approach the same problem in its country back in the ’70s and ’80s .
With a growing population and ever increasing tourist arrivals, transportation infrastructure will need to be addressed. With the old international airport, Don Mueang, located north of Bangkok and Suvarnabhumi International Airport located south of Bangkok combined with the relocation of low-cost carriers to Don Mueang, a public transport link between the two airports will be a must.
Educating public transport providers and set minimum standards to align their services according to international traveller expectations. This would include the maintenance of vehicles, the driving skills of drivers, drivers knowledge of the road system (knowing were to go), registration of all drivers and where they would be required to attend formal training before being allowed on the road and to enforce taxis to use their meters.
Safety is a key issue amongst international travellers. While crime and corruption is part of everyday life in every country in the world, authorities need to look at how to eliminate these sporadic and senseless killings of overseas tourists.
To further develop niche markets targeting honeymooners, special interest groups and associations, international weddings and film makers. Further to this, Bangkok needs to develop a world class event that will draw a large cross section of international tourists to it. Whether that be musically based, culturally based or even technology based, the destination needs a significant event to reposition itself as the most exciting and diverse city destination in Southeast Asia.
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