HVS Monday Musings: Technology Adoption will reduce Manpower costs, the single largest operating cost for hotels in India

By Mandeep Lamba and Dipti Mohan
Efficient usage of technology will help the hospitality sector reduce labor costs, the single largest operating cost for hotels, while enhancing guest experience going forward.

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China and Australia Visitors Allowed Entry into Singapore from 6 November

Singapore has announced that travellers from mainland China and the state of Victoria in Australia will be able to enter Singapore without quarantine. Upon arrival, travellers will have to undergo a Covid-19 polymerase chain reaction (“PCR”) test and will not be required to be quarantined if the result is negative. Visitors from mainland China and Australia made up a quarter of total visitor arrivals to Singapore in 2019, with China as the top source market, accounting for one-fifth of total visitor arrivals and SGD4.1 billion in receipts.  To facilitate the arrivals, the Singapore Hotel Association (“SHA”) created a one-stop reference on its website. The Civil Aviation Authority of Singapore (“CAAS”) mentioned that travellers from these areas can apply for an Air Travel Pass from 30 October onwards to enter Singapore on or after 6 November. Singapore citizens, permanent residents and long-term pass holders returning from these areas do not need to apply for this pass. To qualify for the pass, applicants must have remained in mainland China or Australia in the last 14 days prior to their entry.  As of 29 October noon, 1,375 applications from these areas were approved, and 602 visitors were received. None were tested positive for Covid-19.

Japan Eases COVID-19 Travel Curbs for Nine Countries and Regions

Japan’s Minister of Foreign Affairs, Toshimistu Motegi, announced that Japan has lowered its infection risk advisory from Level Three to Two against nine countries including Australia, Brunei, China, New Zealand, Republic of Korea, Singapore, Taiwan, Thailand and Vietnam. However, Japanese citizens are advised to avoid non-essential trips towards these countries. On the contrary, Japan raised its travel advisory against Jordan and Myanmar, which advises citizens to avoid all forms of travel. There are currently 152 countries and regions issued with Level Three advisories. In addition, Japan and Vietnam have agreed to implement a business track, where reciprocal short-term business travel could be resumed. Travellers could negate the 14-day quarantine order, should they test negative for the coronavirus upon arrival. Vietnam would be the third country that Japan authorises reciprocal business travel, following South Korea and Singapore.

RedDoorz Launches New Design-led Hotel Brand, SANS

Singapore-based economy hotel operator, RedDoorz, has launched a new economy lifestyle hotel brand, SANS, as part of its strategy to build the largest new-age hospitality company in South-east Asia. SANS, inspired from the Indonesian word “santai” which means to “chill”, aims to provide a vibrant and cosy stay experience at an affordable cost, with properties to feature trendy furnishings and amenities. The brand will debut in Indonesia next month, with an expansion of five more new properties targeted by year end. RedDoorz will also embark on a major rebranding exercise in 2021 to reposition the company as a multi-brand accommodation platform. The company said that it plans to add new accommodation products to its platform across economy lifestyle, mid-scale and extended stay segments, on top of its existing budget hotel brand and co-living service, KoolKost. As part of the rebranding, the company will also roll out a new redesigned app and rebranding campaign in the first quarter of 2021. The new app will allow users to browse the company’s portfolio of accommodation brands, and will also be complemented by a new loyalty programme, which can be used to earn and redeem discounts, and access exclusive partner offers and benefits.

Azumi Brand by Aman Founder to Debut in Japan

Aman Founder, Adrian Zecha, has partnered with Japan-based hospitality group, Naru Developments, to launch a new Ryokan-inspired hospitality brand, Azumi. The first Azumi property is slated to open on one of the islands in the Setouchi Region, in southern Okayama Prefecture of Japan, coming spring 2021. Named after the Azumi people, one of the ancient seafaring tribes who crossed the ocean and settled in Japan, the brand is anticipated to showcase the right harmony between traditional design and modernised comfort. Each Azumi property will serve as a medium of expression for each locale and its climate by charting the diverse and dynamic roots of Japan's cultural background.

Absolute Share Price Performance, as on 6 November 2020