14:40 28/04/2023

Ascott riding the travel rebound

Ms. Lew Yen Ping, Regional General Manager of Ascott in Vietnam, Cambodia & Myanmar, discusses Vietnam’s tourism sector and the company’s plans for the future.

Ms. Lew Yen Ping, Regional General Manager of Ascott in Vietnam, Cambodia & Myanmar
Ms. Lew Yen Ping, Regional General Manager of Ascott in Vietnam, Cambodia & Myanmar

How do you see the current state of Vietnam’s tourism sector and also the behavior of tourists?

Riding on the recovery in international travel, we have seen a significant rebound in tourism in 2023. Vietnam’s tourism industry showed great promise in the first two months of this year, with a good number of tourists coming to the country, indicating a positive outlook for the tourism and service sectors. The continued rebound in travel and tourism spending is bolstered by the relaxation of travel restrictions and the normalization of flight frequencies to pre-pandemic levels.

Furthermore, the Vietnamese Government plans to improve its visa policies, by extending e-visa validity to 90 days, increasing temporary residence to 45 days for visa-exempt individuals, and relaxing entry rules for foreign tourists. These changes are anticipated to create favorable conditions for the growth and competitiveness of Vietnam’s tourism industry.

The pandemic has fundamentally changed the way individuals live and work. Flexibility has come to the fore, with guests seeking refreshed, well-rounded hospitality experiences. We have also observed that guests are now more mindful of their social and environmental responsibilities and aspire to contribute positively to the communities they visit. There has also been a rise in the number of “bleisure” travelers opting to stay in our serviced apartments, allowing them to work while also enjoying leisure activities.

Family vacations, multigenerational trips, and small group travel will be popular ways to see the world in the time to come. Families will also turn to travel as a way to reconnect post-pandemic. Multigenerational travel and skip-gen vacations were a growing trend even before the pandemic and are expected to continue in the years ahead.

How has The Ascott Limited (Ascott) been preparing to adapt to this travel rebound and the new circumstances?

As a dominant lodging player, we have been taking steps to adapt Ascott for a new tourism landscape, with the pivoting of Citadines’s core values and the refreshment of the Somerset and Oakwood brands.

On September 22, 2022, Ascott announced a brand refreshment campaign for Citadines, Ascott’s fastest-growing brand, to be implemented in 80 buildings across 56 cities worldwide. With its new tagline “For the Love of Cities”, Citadines combines the comfort of a serviced apartment with the convenience of a hotel, allowing travelers to enjoy the best of both worlds. The brand’s renewed focus is on its commitment to providing guests with the best of city living while inspiring them to live, work, and play in infinite ways.

As part of the refreshed brand and its ambition to promote a well-balanced lifestyle, called “activ∞” (activate), Citadines is introducing activ∞ as a key brand signature across all properties. Activ∞ will feature a range of curated amenities and programs designed to facilitate city living and allow guests to seamlessly live, work, and play both within the property and in the surrounding city. We believe this shift in brand positioning and product value could adapt to the booming trend of “bleisure” and “workation”.

In the first quarter of this year, Ascott also launched a brand refreshment program for Somerset, aiming to create a closer connection between the brand and its primary target audience of small and extended families. Somerset celebrates the coming together of people in an inviting, inclusive, and homely environment, a place where families of all sizes and generations share happy moments and create lasting memories.

The future of travel is being shaped by sustainability, which is also an integral part of Somerset’s core values. One of the key brand signatures is the Sustainability Passport Program, which will be applicable to all its properties globally. This program offers guests exclusive stay packages, bonus perks, and stay discounts that are added to their Ascott Star Rewards member accounts.

The Sustainability Passport Program positions Somerset as a preferred choice for those who wish to support the green travel movement. By incentivizing guests to make sustainable choices during their stay, the program encourages them to be responsible travelers and contribute towards a more sustainable future for the planet.

In addition to that, business and leisure travel are both equally important to the vibrancy and rejuvenation of the hospitality sector. As in-person meetings and events become the norm, business travelers are also combining work and leisure travel to maximize their trip. Targeting this rising demographic of “bleisure” guests, the refreshed Oakwood brand will focus on curating “better than home” experiences for bleisure travelers to enjoy the comforts of home and beyond.

Loyalty remains a key strategy and a driver of our business into the future. To date, over 70 per cent of systemwide sales are delivered by our direct channels. Our longstanding relationships with many global corporations, which have been carefully nurtured over many years, continue to feed a large proportion of longer-stay demand for our properties.

As for the more transient market, ASR has grown exponentially since its start in 2019 to a solid base of almost 3 million members today, for growth of 36 per cent against last year. With an active rate of over 60 per cent, it has contributed approximately S$200 million ($149.8 million) to our properties, representing more than triple year-on-year growth in ASR revenue.

How do you view the prospects for serviced apartments in Ascott’s development?

Beyond the initial travel rush, the growth of the hospitality sector is on a positive and sustainable trajectory. Ascott has a resilient and differentiated business model and we will continue to build on our strength as an integrated lodging player across the real estate value chain. Our portfolio of brands caters to different types of travelers, from short-stay to long-term guests, and our strategy is to focus on unlocking their full value potential.

In 2023, Ascott expects to open approximately 13,500 units across 70 properties in key travel destinations in fast-growing markets in Asia-Pacific and Europe. The launch of these properties comes at an opportune time, as Ascott recognizes the need to address emerging trends in today’s post-pandemic travel landscape, marked by evolving traveler demands and renewed appetites for fresh experiences.

This robust pipeline of property openings covers all brands and will contribute to the ongoing rebound in travel and tourism spending, which has been boosted by the relaxation of travel restrictions and the return of flight frequencies to pre-pandemic levels. Concurrently, changes in traveler expectations and preferences are emerging alongside this upwards growth trajectory.

With a diversified portfolio of distinct brands, we are capable of catering to diverse travel preferences, ranging from co-living and solo travel in a new destination to multi-generational travel and relocation for work. Ascott will also redefine the guest experience to take advantage of emerging trends such as the increased popularity of working from home, deeper health and safety concerns, and a rapidly digitizing world.

We are currently evaluating every aspect of the living and workspaces provided by our apartments. In addition, we are enhancing our digital solutions and exploring the use of advanced technologies to ensure that guests receive both value and safety.

Moreover, Ascott holds the distinction of being the first hospitality firm worldwide to offer their guests access to a comprehensive suite of telehealth, tele-counselling, and travel security advisory services. We also signed a global agreement with Bureau Veritas to provide independent audits and certification for the hygiene and safety standards of Ascott’s properties worldwide. This is to reassure our guests and staff that we have stringent cleanliness and hygiene measures in place as we welcome new and returning guests’ home.