Hotel segments and the laws of economics

The opportunity to examine hundreds of hotel markets and thousands of competitive sets because of joining STR Analytics, we have observed that the hotel industry operates some counter to other sectors of the economy.

During a severe economic recession, most of industries find products which cater to the budget-conscious lose less or even increase demand relative to those that appeal to the luxury segment. But STR data indicates the opposite occurs in the hotel industry.

In other industries, customers continue or even increase demand for products offered by the likes of McDonalds, Wal-Mart and Hyundai, while Ruth’s Chris, Neiman Marcus and Cadillac suffer lower demand than ever. But in the hotel world, the economy and luxury segments both lost 8.8% in occupancy from 2008 to 2009 based on the 2009 year-end results. Something inverted is going on here.

Journey To Hanoi

The day I have been looking forward to for the last three months has arrived.  With all bags properly packed, I rode a taxi to the airport.  It had been raining heavily for days so I figured it was better to start the trip as early as possible in order for us to get to the airport at least three hours before our scheduled flight.

It's important to remember that the Ninoy Aquino International Airport (NAIA) in the Philippines has three airport terminals. Terminal 1, the old airport, handles all international flights except those under Philippine Airlines and Cebu Pacific.  Terminal 2 is allocated for the exclusive use of Philippine Airlines, serving both international and domestic flights.  The newest terminal, Terminal 3, operates flights under Cebu Pacific as well as several subsidiaries of Philippine Airlines. There is also a terminal fee of PhP 750 for international flights which must be paid before going through Immigration.

Beijing hotel development is booming

2 years on from the Olympic Games and the city-wide frenzy of hotel building that went alongside it, Beijing hoteliers are celebrating a strong recovery despite fears of oversupply and competition from the Expo in Shanghai.

The hotel market in Beijing and China as a whole has improved significantly since 2009, that has helped galvanise the global hotel sector from crisis mode to slow growth. STR Global report occupancy rates in Beijing nearly doubled during June 2010 from the previous year, up 33.5 percent to 66.3 percent, while revenue per available room was up 41.2 percent to US$63.52 during the same period.

"The increase is due to a number of factors: the recovering Chinese and world economy, the stabilising supply increase and an increase in demand," said Konstanze Auernheimer, director of marketing and analysis at STR Global.

Novotel Lombok Coralia

Exquisitely secluded on the exotic southern shores of Lombok, Indonesia, lies a unique tropical oasis. The Novotel Lombok that a delightful cluster of rustically thatched bungalows is perched upon a stunning white sandy beach with a crystal clear lagoon. It is the ideal place from which to explore the parts of Lombok that remain entirely untouched by time, the unique culture of the indigenous people and the natural beauty of the island.

The Novotel Lombok evokes a luxuriously appointed traditional 'Sasak' village. Whimsical architecture, natural stone, coconut wood and local artworks create a delightful holiday environment.

A pool is perched right on the the edge of the idyllic white sandy beach. Dine at the open air 'Empat Ikan' restaurant and 'Kafe Chilli' coffee shop or sip exotic cocktails at the Papaya Bar with its splendid ocean views.

At the Novotel Lombok you will be able to revel in traditional herbal spa treatments and massage, or participate in our wide range of daily water sports, diving and fishing.

Innovative recreation programs are available around the clock, and discovery excursions to some of the most untouched destinations in Asia are readily available.

All the rooms at the Novotel Lombok have individually controlled air conditioning, private shower or bathtub in bungalows, international direct dial telephone, mini bar, safety deposit box, satellite television, complimentary water, tea and coffee.    

AirAsia launches Major Branding Campaign

AirAsia has launched a major branding campaign in Hong Kong which includes a series of activities across Causeway Bay, Central, major beach areas and MTR trains.

The Hong Kong public can expect AirAsia giant floating billboards across major beach areas such as Stanley, Repulse Bay, South Bay and Clear Water Bay with promoters at the beach clad with iPads to sign people up for AirAsia’s RedA!ert email and AirAsia’s Hong Kong Facebook Page. The public also stand a chance to win a surprise from AirAsia when they snap photos with the AirAsia team throughout this campaign by the beach.