SHORTER TRIPS, HIGHER SPENDING
Choe said rising travel costs and geopolitical uncertainty are changing how affluent travellers plan their holidays, with more opting for destinations closer to home.
“We’re beginning to see a lot of luxury travellers … are taking shorter haul (trips),” he said, adding that more Asian travellers are holidaying within the region.
But travellers cutting back on longer journeys are not necessarily spending less on accommodation and experiences, he said.
“People are willing to pay for experience, not just a bed to sleep in,” Choe said, noting that hotel club lounges remain popular among guests prepared to pay more for premium offerings.
Travellers are also increasingly drawn to hotels offering distinctive experiences, including properties that incorporate nature and sustainability into their design, he added.
SOUTHEAST ASIA BENEFITING FROM SHIFTING TRAVEL FLOWS
Within Southeast Asia, Choe highlighted Vietnam, Malaysia and Singapore as markets experiencing particularly strong demand.
Vietnam’s tourism growth is extending beyond Ho Chi Minh City and Hanoi to resort destinations, he said, while the expansion of high-tech industries is also drawing more business travellers.
Pan Pacific’s properties in Kuala Lumpur, Penang, Langkawi and Malacca have meanwhile recorded strong occupancy and average room rates.
Choe said the group’s Singapore properties recorded double-digit growth in the third quarter, benefiting from major international events such as the Formula 1 Grand Prix and business conferences.
He added that changing Chinese travel patterns are also benefiting Southeast Asia, with tensions between China and Japan diverting some travellers towards the region.
“It’s now no longer just tour groups. It’s a lot of affluent free independent travellers from China and India coming through,” Choe said.
“We’re beginning to see a lot of that growth in our region: shorter haul, spending more money, experiencing Instagrammable Southeast Asia.”
