Week 11 - Singapore Secures Exclusive Taylor Swift Concert, Envy Across Neighboring Countries
Hilton enters new markets, Sleep Tourism, Shift in EU Corporate Travel and more!
TLDR: Too Long Didn’t Read
Meanwhile, in the industry, Singapore's investment in Taylor Swift's concert sparks debate 🇸🇬🎤, Hilton expands aggressively in India and acquires Graduate Hotels 🏨💼, and sleep tourism emerges as a luxury trend 😴🌍. MSC Cruises integrates SpaceX's Starlink for faster internet 🚢🛰️, and Germany considers abolishing registration forms for hotel guests 🇩🇪📝.
In externalities, Emmanuel Macron's stance on Ukraine differs from Paris and Berlin 🇫🇷🇺🇦, and academia explores what attracts guests to grand hotels 📚🏨. For business travelers, BCD Travel's report highlights Amsterdam and New York as top destinations in 2023 ✈️🗽. If you're interested in the latest hospitality reads, check out Amazon's newly released books in the field 📚🌐.
0. News snippets
Not important enough to expand on, but worth hearing about
There Might Be a ceasefire in the Israel-Gaza Conflict | Russian Presidential Elections in Pictures |
0.5 Follow up
Where we follow up on news from previous weeks
Remember when we discussed Airbnb ratings going down?
Well, I have recently used AirB&B for a 2 night trip with friends in Tagaytay Philippines. The city is located on the verge of a semi-sleeping Volcano and offers delicacies like the traditional “Buko Pie”, a coconut pie and the famous “Bullalo Soup”, a soup with vegetables and beef. After reviewing all the choices available, my choice landed on a high-rise condo facing the volcano. After booking, I received a very, very long automatic message from the host, giving me all the information I needed for my stay.
And for me not to contact him. When I dared to ask for an early check-in, I was answered the following.
Dropping my luggage in the room a few hours before official check-in hours costs money. I’m not talking about using the room. I’m talking about dropping luggage to be able to roam freely. There shouldn’t be a cost for such a simple service. It goes against what Hospitality stands for.
Last time we discussed this subject, I argued it is regrettable that Airbnb hosts turned from kind locals, sharing their passion for their cities and tips for clients to enjoy as much as possible to mighty real estate barons not interested in meeting or communicating with their clients.
I keep believing this decrease in human customer service and the surge of prices are the reason why travellers don’t grade their stays as positively as before.
1. Main Hospitality News
Core news related to the industry
Tailor Swift & Singapore: a risk for popular arts?
Singapore defended offering undisclosed incentives to Taylor Swift for her Southeast Asia concert, dismissing exaggerated speculations. Minister Edwin Tong emphasized confidentiality, refusing to disclose figures. Speculation arose after claims by the Thai Prime Minister about $3 million subsidies per show, though Channel News Asia suggested $2-$3 million for all six concerts. Tong justified the investment citing significant economic benefits like increased tourism and local spending. Concert partnerships, like with United Overseas Bank Ltd., led to a 66% surge in credit card fees due to pre-sale ticket promotions. Criticism from Thailand and the Philippines was dismissed, with Singapore stressing the need to maintain competitiveness in the region.
Swifties storm Singapore, all the Hospitality sector smiles
During Taylor Swift's concert in Singapore, hotels like The Fullerton Hotels and Resorts and Fairmont Hotel experienced a surge in bookings. Marina Bay Sands introduced luxury packages named after Swift's songs, including the SG$50,000 ($37,230) "Wildest Dreams" package, featuring VIP tickets, fine dining, a hotel suite, limousine transfers, and tourist attraction passes. All packages at Marina Bay Sands were sold out. These offerings attracted a wave of Swift fans, with Malaysian travellers eagerly crossing into Singapore for the event. Additionally, Cebu Pacific renamed its flights to Singapore as "1989" during the concert period, reflecting Swift's birth year and her album title.
Hilton buys a new hotel brand and expands into India
Hilton has made the news twice this week. On one side Hilton is on a fast-track expansion in India, aiming to double its presence with a hotel opening every two to three months. This growth targets diverse markets, from state capitals to emerging cities, due to India's infrastructure boom. Zubin Saxena, Hilton's senior VP and country head for India, emphasizes a mix of luxury and mid-market offerings to cater to India's dominant domestic market. On the other side, Hilton's strategic move to purchase Graduate Hotels for $210 million marks a significant expansion into university-anchored towns across the US and UK. This acquisition not only enriches Hilton's portfolio but also underscores its commitment to the lifestyle space, tapping into the dynamic energy of academic communities. A new brand with a new market. For more details, visit Business Traveller's full article here.
Sleep Tourism: A New Wave of Restful Retreats
"Sleep tourism" is rising, focusing on deep, restorative sleep in unique settings worldwide. From Madrid's scientific approach to sleep at BLESS Hotel to Lake Como's Grand Hotel Tremezzo offering nature-infused sleep rituals, and London's Zedwell providing serene, soundless cocoons, this trend emphasizes sleep as a luxury experience. The article provides quite a few more examples from different parts of the world. That doesn’t mean this is now a whole entire sub-sector of our industry, yet a new creative way to upsell your way to new clients.
When it comes to the Internet: the faster the better
MSC Cruises has integrated SpaceX's Starlink technology onto 15 out of 22 ships in its fleet, with plans for further expansion. This move comes in response to increasing onboard bandwidth demands from guests' connected devices and applications. Starlink promises faster internet speeds, improved WiFi coverage, reduced latency, and lower operational costs. The first ship upgraded was MSC Magnifica in December 2022, with others like MSC Divina, MSC Grandiosa, and MSC Seaview now equipped. This technology ensures MSC Cruises can meet current and future digital needs. Sister company Explora Journeys has also adopted Starlink on EXPLORA I, with plans for its forthcoming luxury ships, including EXPLORA II, to feature this connectivity from August 2024 onwards.
No more registration forms for German hotel guests?
Germany is on the brink of a bureaucratic revolution, with the Cabinet propelling the Bürokratieentlastungsgesetz, aiming to relieve the economy by €944 million annually. A cornerstone of this legislation for the hotel industry is the anticipated abolition of the registration form requirement for German citizens. Now awaiting the Bundesrat's endorsement, this change heralds a significant shift. Markus Luthe of the Hotel Association Germany welcomes the move but remains cautiously critical, highlighting the continued registration mandate for foreign guests as a thorn in an industry seeking broader deregulation. Big Brother has decided to give us just a little room to breathe.
2. Externalities
Economics, finance, geopolitics. All have an impact on the hospitality sector.
Boots on the ground in Ukraine, Paris & Berlin disagree
Emmanuel Macron remains resolute on Ukraine, despite earlier remarks about potential troop deployment receiving European criticism. During discussions in Berlin, Macron highlighted France's readiness for action but stressed a preference for dialogue. He contrasted France's stance with Germany's cautious approach. Macron reiterated openness to dialogue with Putin, emphasizing Russia's economic stature. Regarding the upcoming Russian election, he stated he won't congratulate Putin due to opposition suppression, questioning the election's legitimacy.
3. Academia
Scientific papers related to the topics above. For those who want to know for sure ;)
Why do guests choose “Grande” hotels over others?
Why do grand hotels attract guests? What makes them unique in the eyes of the general public? Everybody has an opinion on this, usually formed right after being asked the question, but we at Le Portee appreciate academic sources, where opinions are usually put aside (at least to some extent). A study interviewed employees of the Grande Hotel do Porto and these are the results. Hotel history, tradition, its facilities and quality of service were the categories mentioned that not only attract guests but also keep employees (some) working there for over 20 years. This study unfortunately does not go to guests themselves and compare their reasons for staying, which would be a great attempt to see whether employees understand their guests well.
4. Readables
Books, podcasts & the big stuff.
Amazon “Newly Released” books in the hospitality sector
This week we wanted to recommend a list instead of a specific book. A list of new releases on Amazon of books in the field of Hotels & Gastronomie. What we might find interesting is not necessarily interesting for you, but over on this list you can whatever new readable has come out and choose for yourself. We sure have!
5. Tips & Tricks Tools & SaaS
Any new software you can use? Industry tricks you missed?
Business Travel: Navigating New Horizons
BCD Travel's Cities & Trends Report unveils Amsterdam and New York as the leading destinations for European business travellers in 2023, China is low on the list (a change from pre-Covid times). With Germany and the United States topping the list of countries, the landscape of international business travel exhibits “resilience”, still not reaching pre-pandemic levels. This evolution reflects the intricate interplay of geopolitics, sustainability, and technological advancements shaping corporate travel policies. Hence, if you are planning to invest, advertise or generally attract business travel, this might be a great info to look at.