Singapore overtakes Hong Kong as the business traveller’s top destination: Accor

In the third annual Accor Asia-Pacific Business Traveller Research, Singapore has emerged as the region’s most popular business travel destination, beating Hong Kong, which shared the top spot last year.

Singapore was also listed among the top three destinations visited in the first half of 2012 by business travellers from all countries surveyed, whereas Hong Kong only made the cut among travellers from Mainland China (45%), Thailand (26%) and Australia (16%).

“This year more travellers are going to Singapore, indicating the strength of the Southeast Asian economies and perhaps, the slowing in North Asian economies,” commented Evan Lewis, vice-president communications, Accor Asia-Pacific, during a presentation of the report in Hong Kong yesterday.

“That said, Hong Kong remains an important gateway for travellers doing business in Mainland China—and for Mainlanders engaging in business travel,” Lewis said.

The report, conducted by the international hotel operator in partnership with ORC International, was based on an online survey of 2,500 respondents from nine countries in Asia-Pacific. Respondents were members of Accor’s loyalty rewards program, Le Club Accorhotels, who had made at least one trip primarily for business in the first half of 2012.

Across the region, Accor found that business travellers took an average of 10 business trips in the first six months of 2012, an increase from the six trips recorded in the Accor Asia Pacific Business Traveller Research 2011. The increase was driven largely by a greater number of domestic trips this year.

Chinese business travellers, for example, took the highest number of business trips (14) while Hong Kong and Singapore (understandably) took the highest number of international trips with eight trips and seven trips, respectively. The survey also found that frequency of travel differed by gender and seniority, with men taking more trips than women (12 versus 7) and C-Suite and director job titles taking 13 trips ahead of managers (11) and owner/partners (8).

More than a third (35%) of Asia-Pacific professionals report an increase in travel, with the top reasons cited being a change in role that required more travel (38%), an increase in business year-on-year (35%) and increased sales and marketing efforts (28%). About 20% are also attending more conferences and seminars (MICE).

In fact, MICE travel accounted for 28% of all business trips in the first half of 2012, with the aim of business development and networking opportunities. The main purposes for the majority of business trips, however, were internal company meetings and external sales visits.

An important factor to note for hotels is that the majority of business travellers preferred to do their bookings themselves (57%) with just over a third having their accommodation arranged by their secretary or office manager. Among those who handle their own bookings, nearly six in 10 book directly with the hotel online and a quarter turn to online travel websites. Only 5% use an offline travel agent.

Key drivers for handling their accommodations themselves are convenience (73%) and access to special offers (61%). Ease of management (50%), instant confirmation (48%) and the ability to see what the facilities and rooms look like (42%) are also factors behind the decision.

Allocated budget for business travel hotel accommodation averages US$125 per night, with some variance across the region: respondents from Australia (US$173), Singapore (US$156) and India (US$133) spend the highest amount and those from Indonesia (US$81) and China (US$98) spend the least. Overall, average spend has increased slightly compared with 2011 (US$121), driven by increase in budget for Australia, Singapore, and India. Business travellers choose their hotels based on proximity to where they’re conducting business (53%), free Wi-Fi (49%) and competitive pricing (46%). For business travellers from China, loyalty club membership also influences choice.

When asked what improvements they would like to see, business travellers indicated that they would like a special check-in/check-out desk for loyalty club members (62%), amenities and products from their home country (52%) and the option of a fully personalised service, from room setting to food selection (44%).

A key takeaway hotel marketers can glean from this insight is that personalisation will be a competitive space in future, observed Lewis. “The smaller touches matter to them,” he said.

A hotel’s commitment to environmental issues can also influence choice, with 40% of business travellers saying they would choose one hotel above others because it is more environmentally conscious. But of paramount importance is location, with 66% agreeing that location is more important than environmental commitment.

The most important service from hotels (and therefore, potential deal-breakers) for these travellers are comfortable beds (67%), free internet (47%) and a great bathroom and shower (41%).

This is understandable considering that for more than five out of 10 typical Asia-Pacific business travellers, using the bath is the greatest ‘extravagance’ they allow themselves. “Hong Kong business travellers are the most dedicated workers on business trips, with 66% admitting to working in their hotel rooms between 9 pm and midnight, and 14% still working between midnight and dawn,” Lewis said. “Hong Kongers are followed by Singaporeans, 50% of whom are likely to be burning the midnight oil.”

In fact, Hong Kong business travellers are so busy that the only time they have a chance to shop for the family is at the airport. “Quite a few said the one thing they wished hotels would do is provide them with a gift pack they can take home as a gift,” Lewis said.

Travellers from Indonesia and Thailand, however, are less stressed and are more likely to be enjoying the hotel’s restaurants and spas, with travellers from China the most likely to include tours and souvenier shopping in their trips.

With these power-workers checking in, Accor learnt that the top electronic gadgets they tote with them are the company laptop and a personal laptop, and of course the smartphone. Tablets are also increasing in popularity. “Which means they require a minimum of two internet connections in their rooms,” commented Lewis.

Unfortunately for these business travellers, they are most likely to forget their power cables and chargers. “It’s a good idea for hotels to have extras ready to avoid their guests getting into a panic and having a meltdown,” he added.

Hotels won’t be able to learn if they’re getting things right for their business travellers from social-media forums, however. Nearly half do not provide commentary on their hotel stay via social media. Instead, they prefer direct contact with their hotels via comment cards (50%) or an email or letter (44%).

“Again this indicates a strong preference for individual, personalised treatment,” Lewis said.