INSIGHT Radisson Blu Resort Maldives
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Issue No. 1 2021 INSIGHT The Pulse of Radisson Hotel Group Radisson Blu Resort Maldives INSIGHT BY RADISSON HOTEL GROUP 1
Contents 04 Message from the President 10 Technical Services: Helping 16 India: Leveraging hotels adapt to the “new the strength of our Katerina Giannouka, normal” partnerships President, Asia Pacific Zubin Saxena, Greg Farrell, Vice President, Managing Director and Design and Technical Services, Vice President, Operations, Asia Pacific South Asia 06 Industry Outlook 02 Brands: New brand and guest 18 South East Asia & Pacific: experience concepts for a Laying the foundations Brighter skies appear bright future for a bright future through the clouds Andre de Jong, Esther Van Bemmelen, Vice President, Operations, REFERENCES Vice President Brand Strategy, South East Asia and Pacific Guest Experience, PR & 1. unwto.org Communications, Asia Pacific 2. iata.org 3. str.com/str-asia-pacific-hotel-performance 4. globalwellnessinstitute.org 08 Development: Driving 14 China Operations: Leading the 20 Commercial Outlook: 5. relocatemagazine.com growth with innovative global recovery Spirit of innovation drives 6. uk.reuters.com concepts in key markets success 7. unwto.org Ramzy Fenianos, Gary Ye, Vice President, Hannes Bos, Vice President, Chief Development Officer, Operations, China Commercial, Asia Pacific 8. str.com/str-apac-markets Asia Pacific 9. globaltourismforum.org INSIGHT BY RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP
Message from the President At the end of 2020, we can reflect on the most the global recovery; occupancy and RevPAR challenging year in the history of the hospitality in October 2020 were the highest for any industry. While we have experienced setbacks month since January³, and China’s October’s in the past, never before have we encountered occupancy was only 3% down year-on-year. This an almost complete shutdown of cross-border gives us renewed confidence as we enter 2021. travel. Our development momentum continued in Adversity drives innovation, and I am immensely 2020 reaching a new milestone of 84 signings proud of our team’s ability to create solutions and new hotel openings in Maldives, China and to the short-term challenges we face, without India. We also launched Radisson Individuals, losing sight of our long-term strategy. From the our new soft brand which will enable us to roll-out of COVID-19 compliant procedures in work with independent hotels and small chains. partnership with SGS and SafeHotels, to fresh This puts us in a strong position to achieve our food and beverage concepts, such as home aggressive expansion plan, which will see us delivery services and hybrid meetings. Our grow to over 2,500 hotels by 2025. teams have shown a wonderful willingness to adapt and maintain a positive outlook. As part of the world’s second largest hotel group, Radisson Hotel Group is perfectly There is no disguising the fact that the positioned to lead the recovery of the world suffered an immense setback in 2020; hospitality industry in the post-COVID era. international tourism arrivals fell by 70%¹ and air passenger numbers are back to 2003 levels². However, it appears that Asia Pacific may drive 4 THE PULSE OF RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP 5
Industry outlook Brighter skies appear through the clouds While the global travel and hospitality industries Based on the findings of the UNWTO’s Panel of suffered a considerable downtown in 2020, Experts¹, the rebound of international tourism there are signs that brighter skies could lie on a global level is likely to occur in Q3 2021. ahead in 2021. According to the latest UNWTO But Asia Pacific could lead the way; the cautious Travel Restrictions Report, 70% of global approach of many regional governments has led destinations have eased their COVID-19 travel to low infection rates (relative to other parts of restrictions⁷, and initiatives such WTTC’s Safe the world), and this could help these countries Travels Stamp, bilateral travel bubbles and, of gain traveler confidence in the post-pandemic course, the global vaccination programme, will era. Companies and destinations could even tap help the world to return to normal. into the rising trend for “safecations”⁹. In terms of Asia Pacific’s hotel sector, the Naturally the recovery depends upon many recovery has started; according to recent data external factors, but it seems likely that intra- from STR⁸, strong domestic demand and public regional travel between Asia Pacific countries holidays in key markets have driven continued with low COVID figures could provide the performance improvements from COVID-19 catalyst for tourism’s revival. lows. In China, occupancy during the Golden Week holiday peaked at 83% - almost as high as 2019 levels. Radisson Blu Resort Cam Ranh 6 INSIGHT BY RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP 7
Development: Driving growth with innovative concepts in key markets Ramzy Fenianos Chief Development Officer, Asia Pacific Radisson Hotel Group Asia Pacific’s its subsidiaries in China will add 8,965 rooms development strategy continued to gain and suites to our nationwide inventory, covering momentum in 2020, despite challenging four core brands: Park Plaza, Radisson RED, conditions. Our Development team signed Park Inn by Radisson, and Country Inns & Suites 12 new hotels and resorts across the region by Radisson. These agreements will continue and expanded the brands’ footprint in China to drive the success of our five-year expansion with 72 properties under the master brand strategy. Other key markets will include development agreements, bringing our total India, where we are the country’s leading expansion footprint to 84. international hotel group, as well as Vietnam, Thailand, Indonesia and the Philippines. Key signings in China included two properties in Nanjing: a 151-key Radisson Collection resort With respected core brands such as Radisson, and a 300-room Radisson Blu hotel. In South innovative new concepts like Radisson East Asia and the Pacific, our rapid expansion in Individuals, and a fresh focus on high-growth Vietnam continued with the signing of the 309- sectors such as serviced apartments, we are key Radisson Blu Resort and Spa Van Phong confident of accelerating our development in Bay as well as 84-key Radisson Resort Phan 2021 and beyond. Thiet, and we sealed eight new deals in India, including our first Radisson Individuals hotel, a 196-room hotel in Katra, along with the 180-key Radisson Blu Jaipur. The 72 signings with Jin Jiang International and 8 INSIGHT BY RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP 9
Technical Services: Helping hotels adapt to the “new normal” Greg Farrell Vice President, Design and Technical Services, Asia Pacific 2020 created many unforeseen challenges in developed intuitive new spaces for “bleisure” terms of hotel design and operations, however, (business & leisure) travelers, based on the it was very pleasing to see how the Technical concept of converting the plain hotel lobbies of Services team stepped up to help our hotels the past into vibrant social spaces. adapt to the “new normal”. Collaborating with our global team, we successfully identified the Moving forward, we envisage that many of standards and solutions required for COVID- our COVID solutions will not be necessary compliant operations. We enhanced our air in the long-term, but some will undoubtedly filters and circulation for all guestrooms, have lasting benefits for our hotels and guests meeting rooms, public spaces and back-of- alike. We can look back on the last 12 months house areas, implemented cutting-edge UV with considerable pride about the way we filtration and “nano photon” air purification responded to the unprecedented difficulties we systems, and implemented enhanced cleaning have all faced. and disinfection routines, as part of the Radisson Hotels Safety Protocol. We also strongly recommend the use of Cu-Film Antimicrobial Copper Film for high-touch areas. This helps us to eliminate 99.9% of viruses and bacteria in less than half an hour. Our Food & Beverage strategy has reflected a 360-degree approach in line with latest trends for local and community dining. We have also 10 INSIGHT BY RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP 11
We will be rolling out a fresh SPA Brands: CONCEPT New brand and across all brands to tap into the US$45 trillion⁴ global wellness economy. Esther Van Bemmelen guest experience A unique spa philosophy and signature therapies will appeal to new generations of wellness-seeking travelers while also for a bright future expanding our development appeal. Vice President Brand Strategy, Guest Experience, PR & Communications, Asia Pacific A NEW The Asia Pacific PR, Communications and Brands team was able to move forward with its global strategy in 2020, achieving several major milestones. These include FITNESS the launch of the Radisson Hotels Safety Protocol in the wake of the pandemic and the following exciting initiatives. CONCEPT will take advantage of the global Getting back to normal will take some time, and events will look different in the trend for health and fitness. Many interim. To bridge that transition, we have developed our hybrid meeting services travelers want to stay in shape while on the road, so we are redefining in collaboration with expert technology providers to deliver professional, engaging, our fitness concept to provide extra effective, and highly interactive meetings. workout facilities. THE SERVICED APARTMENT sector is one of the fastest-growing areas of New brand: Radisson Individuals has capitalized on the hospitality, with supply surging 15% in 2019⁵ rising demand for soft-branded hotels in the upscale This is no longer solely for corporate travelers and upper upscale sectors. This is a win-win situation, or long stays; units are also now booked by as it allows hotels and small chains to benefit from leisure guests and families. Radisson Hotel Radisson Hotel Group’s global support and reach, while Group foresees strong opportunities for this also attracting experience-seeking travelers. concept in Asia Pacific. Radisson Hotel Group already operates exceptional BEACHFRONT RESORTS IN ASIA PACIFIC including key locations such as Bali, the Maldives, Radisson Collection has debuted in China with Radisson Vietnam and Fiji. We are now expanding into new Collection Hotel, Xing Guo Shanghai, the brand’s first location markets, including Sri Lanka, creating compelling guest in a gateway city in Asia Pacific, and Radisson Collection Resort, experiences that reflect the essence of their destination. Nanjing, which forms part of an integrated resort. We foresee strong potential for this brand in China and across Asia Pacific. 12 INSIGHT BY RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP 13
2020 results improvement from previous year China operations: Leading the +0.9% GRI +0.23% GSS global recovery Gary Ye Vice President, Operations China As one of the first countries to emerge from lockdown, and the world’s largest domestic tourism market, China is in a strong position to lead the recovery of the global hospitality sector. The launch of Radisson Collection Hotel, Xing Guo Shanghai is set to mark the brand’s debut in China, and the first Radisson Collection hotel in a gateway Throughout 2020, Radisson Hotel city and financial hub of Asia Pacific – Group has effectively managed Shanghai. We will follow up this milestone In October 2020, hotel occupancy in all cost streams including payroll, in Q2, 2021 with the opening of Radisson mainland China was only 3% down year- energy, contract services and Collection Resort, Nanjing. on-year³, boosted by the Golden Week beyond. In total, we managed to holidays. save hotel operations costs by 18% compared to the previous year. We also achieved a phenomenal improvement in our brand quality scores for China in 2020, which can be attributed to the best practices we put in place. RevPAR levels for October 2020 were the highest for any month since November 2019, and ADR was the highest since January 2020. The China market has suffered in 2020; domestic tourism numbers are expected to slump 43% in 2020⁶, but the latest data provides cause for optimism. 14 INSIGHT BY RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP 15
To enhance our operations in the COVID era, we introduced the “India Unification Plan”, an operational blueprint that features more than 20 forward-thinking initiatives. Using our extensive network, the “Radisson Accelerates Cross-Sell Engagement” (RACE) connected over 6,000 business partners in more than 50 cities with 180+ hotel sales associates in a virtual format. This generated leads for over 14,500 room nights and confirmed bookings for approximately 4,600 room nights for our hotels in India – a vital uplift in this difficult period. India: Leveraging Unification Initiatives 2020 Zubin Saxena the strength of Operations F&D Initiatives our partnerships Managing Director and • Focus 40 • Food Delivery Vertical Vice President, Operations, • Flowthrough Management • New Retail Concept: South Asia • Operations Blueprint “Meetha” sweets • Epicenter Hotels • Outdoor Catering Vertical • Housekeeping Program • EazyDiner: Corporate Tie-up • Radisson Concierge Service • Radisson Signature Dishes • Centre of Excellence • Guest Experience SOPs • Food & Drink Initiatives Despite a challenging • Subject Matter Experts year, Radisson Hotel Group leveraged its strong relationships and local network to bolster our People Procurement leadership position in India, • Centralized Procurement • Cluster General Manager Program signing seven hotels and Program • General Manager Lead Referral opening three: Radisson Program • ‘Owners for Owners’ Blu Mumbai International • Manning Blueprint Procurement Program Airport, Radisson Blu Towers Kaushambi and Park Inn by Radisson Gwalior. Another silver lining to the COVID cloud has been how we stayed innovative and created many new initiatives, such as “Meetha”, which highlights traditional Indian sweets, and a collaboration with EazyDiner to offer table booking and home delivery services. Our hard work is paying off; RHG was recognized as the “Best Frontline Support/CSR” hotel group at Travel + Leisure India’s Best Awards. 16 INSIGHT BY RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP 17
South East Asia & Pacific: Laying the foundations for a bright future Andre de Jong Vice President, Operations South East Asia and Pacific Countries in South East Asia and the Pacific In 2020, we successfully opened two new are among the most desirable tourism properties in the region, Radisson Blu Resort destinations in the world, but this made Maldives and Park Inn by Radisson Putrajaya. them more susceptible to the unprecedented Looking ahead 2021, we are excited to launch travel disruptions that arose in 2020. Many of our first two hotels in Sri Lanka this year, Radisson Hotel Group’s properties in the SEAP including a Park Inn by Radisson in Colombo region were unable to welcome international and a Radisson Collection property in Galle. visitors since the start of market lockdowns, Our brands continue to expand their footprint but the spirit of innovation and ability to adapt as we plan to open four new properties in to the “new normal” of tourism have been truly Vietnam, putting us in a great position for the inspiring. resumption of international travel. Radisson Blu Plaza Hotel Sydney converted to a government quarantine hotel, with extremely good feedback from guests about the quality of service. Radisson Blu Resort Fiji Denarau Island continued operating despite the inbound travel restrictions and became a popular choice for the local market, creating a lot of goodwill in the community. Our resorts in Vietnam, Radisson Blu Resort Cam Ranh and Radisson Blu Resort Phu Quoc also stayed open during this period, catering for domestic tourists, steering us towards growth and our planned expansion strategy. 18 INSIGHT BY RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP 19
Commercial: Spirit of innovation drives success Hannes Bos Vice President, Commercial Asia Pacific The global pandemic did not slowdown our commercial activities in 2020. We managed to maintain our growth by promptly reengineering our strategy around five key focus areas: Development of market share growth through our third party online strategic partners Creating “one sales force” Sales business development - combining hotel sales and a focused plan for key associates and Radisson Hotel These rapid markets Group Corporate actions enabled us to deliver rapid results and lay firm foundations for Redirecting our Asia Pacific 2021. Pivoting our sales strategy to partnerships to focus tap new segments in the post- on domestic marketing COVID-19 era campaigns The four-day Radisson Connect virtual Trip & Staycation”, “China Q3 MICE Campaign roadshow brought together 400 customers and 1,000 Meetings Partnership”, and “APAC from 13 countries, while our Radisson Get Flex” MICE campaign, which uses flexible Accelerate Cross Sell Engagement (RACE) policies to boost all areas of our business, led to 6,000 sales calls in five days. In terms post-COVID-19. We also launched Radisson of loyalty, we conducted the “1,000 Point Hotels WeChat Mall, which has generated Appreciation Bonus” offer and paused US$230,000 in revenue since May. the expiration of points and tiers. We also suspended our hotels’ monthly enrolment Distribution-wise, our OTA Business Recovery goals to let teams focus on our new priorities. and Best Practices Checklist will help hotels capture more bookings. We encourage hotels Our Marketing team rose to 2020’s challenges to leverage the revised REACH and Hotelbeds with innovative campaigns, including “Pay rate plans to support their recovery. Now Travel Later with Mastercard”, “India Road 20 INSIGHT BY RADISSON HOTEL GROUP INSIGHT BY RADISSON HOTEL GROUP 21
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