How to attract and retain business travelers in Asia

Did you know that Asia enjoys more than one-third of a share in the world's business travel pie?

And the growth is expected to continue increasing in the next few years. By the year 2020, business travel spend is expected to reach USD 1.6 trillion. Wouldn’t it be nice if even a small portion of this lucrative market consistently stayed at your hotel?

These are undoubtedly booming times for the Asian market, more specifically, the Asia-pacific market and if you want to know how to start experiencing some of that business travel boom at your hotel, keep reading, because I'm sharing some of the insights I've gained working in the luxury hotel market in Asia.

Business travel in Asia has grown so much that China is now the largest corporate travel market in the world, expected to be worth $434 billion by 2020.

According to research conducted by Mckinsey, Asia is the world's largest market for business travel accounting for more than a third of USD 1 trillion in annual spending globally. With such encouraging numbers as well as other positive projections being made about this region especially for business travelers, have you taken the time to get more strategic about how you attract, treat and retain these types of guests?

If your hotel is ideally located in any sizeable city, chances are, business travellers could potentially come across your property's website, social media and so on as they research on accommodation.

Before I share my insights on how you can draw in more corporate bookings, let me first share why I believe this is worth the effort.

Are corporate bookings really worth the effort?

Yes, it’s worth the effort. Especially if you are playing the long-term game.

Aside from the strong potential of generating return visits from a business traveller (which alone should raise your interests), you also have the additional revenue that comes from extra expenses, extensions and customized unique experiences. Here's what I've experienced at my hotel in just the last year alone...

In 2018, most of our in-house meetings came from the regional markets with Hong Kong, China, Singapore, and Japan leading our list. From our latest report where we were comparing Direct Bookings versus OTA’s, we've discovered that OTA’s ended overall lower in room nights and lower in room revenue terms whereas our direct bookings grew, resulting in an increase in ADR.

Truthfully, in the past I have relied much more on online travel agents (OTA's). But things are changing. Direct bookings now enable me to create dynamic on add on benefits and flexible rates. And it's working! Once the reservation is made, I am also able to upsell to my clients more effortlessly and provide personalized perks that would otherwise not be possible.

It is true corporate travellers need much more follow-ups and activities with Sales. But given the potential long-term ROI, the effort does pay off, especially if you deliver an exceptional guest experience. Whether you are dealing with a solo business traveler, small or large business groups, it is essential the sales team does everything possible to make the experience unique and personalized.

Why business travel is expected to continue increasing in Asia and why you should pay more attention to your corporate guests:

Most of the South East Asian economies are growing and are expected to accelerate somewhat, supported by robust domestic demand. Especially in luxury goods. The Association of Southeast Asian Nations (ASEAN) is originally created to focus on peace and stability in the region, motivated by a common fear of communism.

However, there's a lot more effort being made today to implement economic integration initiatives" to create a single market across ASEAN member states. By 2025, Asia alone will have at least 30 megacities, A study conducted by the UN predicts that by the year 2050 the population of Asia will reach 5.3 billion.

It’s also expected that in the not too distant future a small handful of countries, including India, Pakistan, and China, will be home to 50% of the earth’s total population.

There's no denying business travel won't be slowing down anytime soon. And as Asian business travellers begin to move around as well, it's of great necessity that we as hoteliers start to understand their needs and expectations.

We must make room for cultural diversity and recognize that our American and European business travellers will be quite different from the Asian business travellers.

For example.

Asian corporate travellers will very often stay in suites, order a limousine and have a strong need of service.

When it comes to corporate groups, Asians are willing to share their rooms with colleagues, whereas American and European travellers need their private room.

American or European corporate travellers will have different needs such as healthy eating, fitness and robust concierge services to help them out.

Due to cultural diversity, it's important you understand and distinguish your corporate clients, offering them solutions that resonate with their needs and preferences. This is perhaps one of the key differentiators that will turn a new business traveller into a long-term returning client.

Personal insights and tips on how you can start attracting and retaining more corporate travelers in your hotel:

- Location

Of course, this isn't in your control. Your current position may either make it easier for you to attract corporate bookings or not and you'll just have to make do with the hand you've been dealt. But it is a major deciding factor for business travellers for various reasons.

Business travellers look for proximity. Most cities especially in Asia have a lot of traffic, so the more ideally located your hotel is, the higher your chances of receiving that booking.

- Flexibility and high-value perks

You have complete control over the rates and the perks you offer, especially if you encourage direct bookings. Corporate accounts are like us, they mean business, they are very well aware of their bargaining power when it comes to rates. However, it is always difficult for them to commit to a certain number of room night production. This is where flexibility is required.

My advice is, stop thinking of the one contract ahead but the future business it can generate.

While the location of your property is essential, there are other perks that are equally valuable. Fast and free wifi is now the normal standard for any hotel that wants to do well. So go beyond these basics. Offer early check-in and late check-outs, free breakfast, pressing services, credit for F&B or spa treatments and get creative with your offers. These will go a long way in adding value and that feeling of VIP experience that many business travellers care about.

- High-quality content online.

Producing high quality valuable content is a must in today’s world. Tripadvisor is essential as people always look at comments and the way you engage on social platforms even if they end up using other channels to make the booking.

Another important aspect is to have high quality content such as videos, articles and aesthetically pleasing pictures of your property as well as what is happening around your hotel.

-Personalization.

For Asian business travellers especially, business usually blends in with some entertainment, and they love to impress their business partners.

Corporate travellers love to be recognized and acknowledged. Be sure to train your staff into simple things like memorizing the names of the guests and addressing them by name especially while serving them. It's these little things that make or break a relationship with corporate guests especially those in leadership positions.

Take note of the little habits that these leaders have and use this information to personalize their stays and all your online communication.

- Offer free room upgrades and craft special bleisure packages for the bosses.

Upgrade the top people of any corporate account whenever they stay. This is a small gesture which doesn't cost much and is very impactful. I also recommend getting more creative with the packages you offer especially for those business travellers who wish to combine business with leisure.

Bleisure travellers continue to grow and with a little creativity, you can offer guests unforgettable experiences that helps them enjoy the best of both worlds and cause them to become loyal brand ambassadors. A finding from the same Mckinsey study showed that Asian business travellers (excluding the Japanese market) are twice as likely to extend their stay through a weekend as their European counterparts. Your offer needs to be the one they say yes to!

- Build direct relationships leveraging the people and resources at hand.

Build a good relationship with the PA, offer priority bookings to the bosses of your top accounts. Give them quality and let them feel highly valued. I like to leverage my PA and have them build direct contact with the PA of our corporate accounts to ensure we deliver experiences that would otherwise not be accessed.

Conclusion:

As business travel increases globally, those of us in South East Asia have much to look forward to. However, it takes more than just statistics or the right location to attract and retain great corporate clients. In our digitally connected world, your creativity and strategy will play a big role in your success or failure.

Take your eye off the short-term gain and instead focus on long-term benefits when it comes to corporate bookings. Business travellers want recognition, they want quality and a feeling that they are respected and valued for the business they bring.

Extra resource: Download a copy of the Mckinsey "Asian Business Travellers"

Speak soon.

Franck Droin.