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Category: Tourism

Navigating New Horizons in Saudi Arabia

Posted on by Derek Kirk

In this exclusive Q&A, QUO CEO David Keen offers a unique perspective on Saudi Arabia’s extraordinary journey of transformation. His reflections provide a deep dive into the Kingdom’s evolving identity, from Vision 2030 to cultural renaissance. Discover the profound changes reshaping Saudi Arabia and why its future holds global significance.

Date palms in Wadi Sharma, Saudi Arabia

QUO: QUO has been present in KSA for almost four years now. What are your key reflections from the journey so far?

Is the destination itself set to to play a bigger role in customers’ travel planning?

DK: I’ve been blessed with an incredibly diverse life where I’ve spent much of the last 40 years living and travelling in different continents, from the western world to around Asia and Europe. During the last 35 years, I’ve based myself in Asia and I’ve watched several well known destinations go through economic, social, infrastructural and political changes. And those range from Hong Kong to Bhutan, Thailand, Singapore, Philippines and several others. I’ve visited those places on multiple occasions and lived in some of them.

However, I went to Saudi Arabia for the first time in 2020, and I have never seen any place – country or destination – embark on such a significant transformation. As an outsider, my first thought was to wonder what that change means for the global perception of Saudi Arabia, which as we all know has had its own challenges.

I learned something important during a trip to a meeting about 45 minutes outside of Riyadh. I ended up in a small village because I had entered the wrong address and arrived at the wrong place with a large suitcase. Several people at the meeting venue approached me to offer help. The correct location was a 10- to 15-minute drive away.

I accepted a ride from a lawyer from Riyadh who was incredibly kind, warm and engaging. During the drive, we talked about Saudi Arabia, and he explained that the change is not about external perception. It reflects how the Saudi people feel about their country. The internal perception of the change the Saudi people are going through is what truly matters.

And the penny dropped.

Like many other places in the world, and with many brands or concepts we create, success depends on internal acceptance. The people of the Kingdom are deeply engaged with Vision 2030, the development of NEOM, the Red Sea projects, and the fundamental changes in Medina and Mecca. Their engagement with what’s happening in the country will inevitably shape the future perception of Saudi Arabia.

QUO: What are the most promising changes you’ve seen emerge from Vision 2030?

DK: A roadmap. In 1991 or 1992, I was in Bhutan, a small kingdom in the Himalayas. I was then engaged with the Ministry of Tourism on the future of Bhutan and was heavily involved in shaping the Kingdom’s identity. And one of the conversations I had about the then Fourth King of Bhutan was fundamental to the country’s infrastructural changes.

He had implemented a five-year plan, a common strategy for many developing nations. However, the king personally drove this initiative by visiting every village to ask the residents what they needed most – whether it was a school, a hospital, or other essential services. He used this information to create the five-year plan, which has since been successfully implemented, leading to Bhutan’s exponential development over the last 30 years.

In 2018, Saudi Arabia articulated Vision 2030, a similarly ambitious roadmap. It was perhaps the most audacious and courageous plan any country had ever undertaken – a fundamental shift from an oil-based economy to a multisector economy.

“And the penny dropped. Like many other places in the world, and with many brands or concepts we create, success depends on internal acceptance.”

This roadmap included some of the most groundbreaking concepts known to mankind. The concept of NEOM, for instance, is a project for humanity, envisioning the future of civilization. Saudi Arabia is creating this vision as a gift for humanity, reimagining the future of water, food, hospitality, architecture and education. To my knowledge, no other country is engaging on this level for the benefit of humanity.

Reimagining the economy away from oil-based to one that focuses on tourism, entertainment and other sectors as envisioned by His Royal Highness goes to the core of what Saudi Arabia represents.

A close friend of mine works for the Culture and Development Fund, and the projects she is undertaking aim to highlight the richness, diversity, and magnificence of Saudi culture, bringing it to life as part of that vision. Architectural developments, be it in Riyadh or Jeddah or in smaller destinations like Khobar or in Yanbu, are being fundamentally reimagined to bring Vision 2030 to life.

We are fortunate to be involved in many different projects, all of which are founded on the principles of this vision. So it’s roadmap, a mandate, an aspiration.

QUO: The luxury segment is the fastest growing hospitality sector. What are luxury and high-net-worth Saudis looking for from hospitality and wellness brands?

DK: I think they’re looking to express their inner beauty and cultural richness, looking to engage – in a Saudi context – with the kinds of experiences they’ve been able to have in Paris, Rome, New York.

The Saudization programme, which aims to engage more with the Saudi workforce, is equally applied to projects like the Boutique Group’s magnificent palaces and the Red Sea development’s incredible hotels. It’s a new dimension for tourism, a new dimension for hospitality. It takes the bar and raises it and adds depth and purpose to it.

It’s not about creating greater experiences; it’s about offering different types of experiences, whether in wellness, historical tourism such as in Alula, or pilgrimage tourism, which is arguably undergoing the greatest change of all.

QUO: You have spoken on many occasions about your deep love and respect for Saudi culture and its people. How would you encapsulate it for someone who has never visited?

DK: I think it’s difficult. I’m still learning, and I learn every time I go. There are cultural mores of generosity, warmth, kindness and giving that I think are unparalleled. I’ve never encountered a culture whose core values are so focused on delivering warmth and hospitality – giving up your own bed or your last food – because that’s what the culture demands. The history of Saudi Arabia has ingrained this level of selflessness in the people. That generosity and warmth of human connection are how they live and operate.

What I’ve experienced, visiting almost monthly now, is that I learn something new each time. I am enriched by the beauty of the people and the incredible richness of intelligence and sensibilities that the Saudi people have shared with me. It’s like nowhere else.

What has been your personal favourite anecdote from your time spent in the Kingdom thus far?

My favourite experiences have been the journeys I’ve been fortunate enough to take. I’ve completed three significant journeys, all by car, traversing the Kingdom. These trips helped me understand how enormous Saudi Arabia is and how diverse it is geographically – with mountains, water, deserts and cities.

One memorable moment was driving from Alula to NEOM, where I encountered landscapes I couldn’t believe existed on Earth. The different colours of rocks and types of mountain experiences, the emptiness, and the vastness were unlike anything I experienced even driving across America. It felt like being in another world, sparking an endless curiosity almost to the breaking point. It’s also an incredible land of discovery in terms of the people I meet.

What would be your advice for any business wishing to develop relationships in the Kingdom?

I would give the advice I was given many years ago as a child by my late uncle: Go to Saudi Arabia. Find your place, find your vision and engage. Learn and understand the relatively simple complexities. There are complexities, but understand how your purpose and vision can fit into the Saudi context.

The ministries are fairly well connected and straightforward in terms of navigation. The opportunity that an entrepreneur or a larger organisation has in Saudi Arabia is as great as it could be and as great as you want to make it.

The Art of the Destination

Posted on by Derek Kirk

We asked QUO CEO David Keen about the evolving art of destination branding and what it means for locations aiming to position themselves as authentic, immersive travel experiences in today’s rapidly changing tourism landscape.

QUO: Every recent trend report on high-end tourism speaks to a growing desire for local immersion, cultural authenticity and enriching experiences.

Is the destination itself set to to play a bigger role in customers’ travel planning?

DK: I’ve been saying for years that in multiple destinations around the world, there’s a huge trend moving away from looking at old historic sites simply because we’re told we should. Instead, there’s a move towards total immersion in the city or village.

A global trend, very common in Bangkok, London and New York, is centred around food. Real local produce. People will no longer settle for ordinary. Travellers are becoming so globalised and well-travelled – particularly high-end travellers – that they know what good quality food is and what an incredible local dining experience entails. This could be a noodle shop on a corner in downtown Bangkok or a tapas restaurant on the outskirts of Madrid.

The experience, complemented by incredible local food and drink, is a trend that’s only going to grow. Initially desired by high-end tourists – who are now reaching outward and following backpackers into more unknown destinations – they’re searching for experiences that engage them with the destination, culture and truth of that place. This multi-dimensional nature of tourism is critical. It’s not just about what to see; it’s about what to feel, what to learn, and what to immerse in. The search for local immersion is not a search for authenticity; it’s a search for truth.

QUO: A destination could be anything from a sector of a city to an area of coastline or even an entire country. How does QUO approach the branding of such complex and multi-faceted entities?

DK: I think that if you take the Saudi Arabian context – which is a lovely example – or the Bhutanese, Sri Lankan, Maldivian contexts, or even somewhere like London, our approach is entirely individualised. The range of our experience and the depth of all our travels is possibly our biggest asset, and our greatest knowledge point and inspiration. We’re able to look at Bhutan as a country or Nine Elms as a dynamic borough of London, and crystallise the simple truths of the place by thinking of it as a dynamic human culture.

I often use the metaphor of a village on a hill. The visitor enters and is enraptured by a multitude of cultural points of reference – how they are greeted, the scent of the place, the rituals, its architecture, the way food is prepared, how people treat one another. Everywhere has these elements, whether a small part of a town or an entire country. Our job is to clarify them and shape them into what they would mean to a guest, a visitor. How do we want them to feel? We translate that emotion into something tangible, which we can then transmit so that our clients are able to leverage and build upon.

QUO: What winning conditions are needed for a destination to successfully brand itself?

DK: Truth. A sense of definition. A sense and understanding of the people. I believe all cultures have immense good within them, and all places have their own sense of hospitality. Their reason for human connection is real – if we can distil that reality into a format that we can transmit like any other brand, then we can clarify the greatest assets that destination has.

QUO: The pandemic has fundamentally changed tourism dynamics. Where is the impact most felt, and what can destinations do to be more appealing to post-Covid global travellers?

“Visitors are enraptured by multiple cultural points of reference – how they are greeted, the scent of the place, the rituals, its architecture, the way food is prepared, how people treat one another.”

DK: I’ve said this for a long time. I believe the pandemic – while it obviously had short-term tragedy and drove short-term change in how we travel – has had a much more dramatic impact on the longer-term perception of travel. Our learning is that life can be short, and because of that, just following the well-trodden trails that people historically went upon to find relaxation or enrich themselves doesn’t feel enough anymore. The pandemic has been a catalyst for a deeper human need to engage, that need for human connection – but without the crowds.

I’m here in Amsterdam and I commend the authorities for limiting mass tourism and restricting the number of hotels being built to control the number of visitors. I think that trend will probably expand. We will see a greater need for humanity to discover, explore, and experience rather than just sit on a beach or visit an ancient architectural site. People will want to immerse themselves more in a destination, living more like locals, eating like locals, and walking around easily and safely. The learnings mankind has taken from this period highlight that the yearning to learn more and understand different cultures – by living in them – is greater than it’s ever been.

QUO: How can an at-risk destination with a fragile ecosystem or a deeply preserved local culture and community balance the need for tourism growth with sustainability and preservation?

DK: Without being greedy. We must balance the responsibility of a destination to share its culture while ensuring that local populations and heritage are preserved and not homogenised. It’s a complex issue – more proactive actions should be taken to enrich the simple aspects of living a human experience there, rather than overwhelming local tourist attractions. This approach should pay dividends.

QUO: Where is a dream destination for you to work on?

I think of Sri Lanka. Despite suffering decades of political and economic disarray, it always seems to find a way to bounce back. I think it’s been misrepresented as a tourist destination when, in fact, on a relatively small island, you’ll find an incredible richness of culture in all its forms – historic, geographic, social, culinary, and the people. It has so much to give to the world, so much knowledge to share.

That’s the crux for me when it comes to the art of destination branding. For all types of tourists – particularly those well-travelled – the need we have is to gain knowledge. The need to learn more from cultures will become even greater for all of us. Through human connection, seeing, experiencing, eating, drinking, walking. All these experiences enable us to learn more. That yearning for knowledge is why we should expand our travel wisely. We should visit places we might have historically overlooked because there wasn’t a fancy hotel, but the trade-off is the invaluable knowledge we can gain.

Outperforming the OTAs: Harness the Power of Digital

Posted on by kithchayah k

Imagine a world where your ideal customers leave your property thrilled, return home and recommend you to all their friends and who thinks of you immediately when it’s time to book their next vacation. Sound too good to be true? It’s not.

Give your customers what they want online, make them feel important, leave a great impression of your brand, and they’ll spread the word to friends and family.

Your website is more than a pretty place to drop your logo and testimonials – at least, it should be. It has the potential to be your primary business development channel. Stay with me and I’ll share how you can take your site from place-filler to place-to-be.

First, a hard, cold dose of reality: more than half of website visits are made by bots, and a third of the money you pump into online ads goes to fraudulent companies lying about their statistics. Furthermore, half of online ad impressions in 2016 were never seen by human eyes, and – despite all this proven data – Expedia and Priceline still spend over US$8 billion a year in advertising.

Are you scandalised yet?

How are you supposed to develop your online business in these circumstances? The answer is that you need a trusted guide to navigate the myriad challenges and complex landscape of digital.

Fortunately, there are simple things you can do to reduce the complexity and realise the full potential of your website. The first, and most basic, is to make sure you and your visitors are secure from hackers by installing an SSL if you haven’t already. An SSL certificate ensures the safety of your most important asset – your guests. Without one, don’t even think about asking for the personal details or credit card information you need to maximise the potential of your site as a sales portal.

Second, your most important asset, after your guests, are your website visitors. They are already interested in your brand, but are you doing everything in your power to capture their direct engagement and convert them? My second suggestion is a strong conversion rate optimisation, or CRO, plan to get the most from your site visitors – ultimately turning them into guests and long-term advocates.

The third, and perhaps most important, thing is reading, understanding and harnessing the power of your own statistics and numbers. Accurate reporting of the right data is critical to pinpointing performance flaws and identifying opportunities.

Lastly is something that many business owners don’t like to hear: you must consider high-quality SEO services as a long-term strategic investment. If it helps, think of SEO and PPC as two equal line items in your traffic budget, one ushers in traffic organically while the other delivers traffic you’ve paid for with each click. In the end, SEO may prove the better investment, you pay for it once and the impact is long term. In the long-run, this expenditure will pay off for your business.

Playing with the big boys

Online travel agencies, or OTAs, are here to stay and have become the singular selling strategy for many brands. The services they offer to consumers are indisputable: a wide array of options, convenience, brand recognition, and competitive prices are among them. But they don’t have to own the guest experience.

By building a direct relationship with your guests – one that gives them a monetary and emotional reason to go to your site directly – you can bypass the big boys.

Begin by offering a best-price guarantee or other benefit for direct booking. Depending on the personality of your property, that could be an upgraded breakfast, a bottle of wine in the room on arrival, or a free 30-minute cooking course. Offer them rewards for coming directly to you rather than one of the big-name booking sites.

Next, develop a customer-relationship management, or CRM, strategy that starts the  moment one of the internet’s 4.2 billion users lands on your site. Do you have a game plan for mobilising engagement through your site; a way of ensuring the visitor experience is positive; and a plan for developing a long-term relationship with your new visitor? Without these, you can’t maximise the monetary potential of your site.

Finally, once you’ve pulled your site visitor in via your website and they’ve tried your property, incentivise future bookings from guests’ friends and family through your site via post-visit contact. Offer a future free night for a referral or discounted packages for birthdays and anniversaries – anything that works for your property.

In the long-term, your marketing and revenue teams will need to learn and develop new skills to manage and maximise the ever-changing and growing online travel market.

But you probably also need expert help in the fields of SEO, CRM, CRO, and data analysis. What are the most challenging parts of your online business? Drop me a line at brian.anderson@quo-global.com and I’ll see how we can help you. You can also give me a call on +66 2260 9494 ext. 128.

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QUO REPORT: Vietnam Rising

Posted on by kithchayah k

FACTORS SHAPING ASIA’S MOST EXCITING MARKET

All pundits are in agreement: the Vietnamese tourism industry is on the up in a big way. Vietnam has remarkable potential for growth – both in terms of tourist interest and projected revenue.

Last year, the United Nations World Travel Organisation (UNWTO) listed Vietnam among the top 10 fastest-growing tourist destinations. Jones Lang LaSalle also cast a vote of confidence, listing Ho Chi Minh City and Hanoi among the 26 most attractive cities for hotel investment worldwide.

But what is the word on the street? It’s easy to say ‘invest in Vietnam’, but the potential for growth is more nuanced than that. To take a closer look at what’s happening in the Vietnam market, and what might transpire within the next few years, QUO spoke with some of the country’s most prominent hospitality insiders.

Here are some of the key thoughts from the discussion.

  • Vietnam should be ranked higher in terms of potential growth. Vietnam offers fantastic opportunities for hotelier and investors, as hotel numbers are still low compared to other Asian tourism hotspots.

“I believe Ho Chi Minh City and Hanoi should be in the top 20 or 15 most attractive cities in the world for hotel investment,” said Michael Piro, COO of Indochina Land, real estate division of Indochina Capital. “If you look at other Southeast Asia countries like Thailand, Malaysia and Singapore, the number of hotels in Vietnam is still very small.”

 Jung Hyun Oh, GM of Novotel Ha Long Bay agreed. “The ‘next big thing’ here should be much more investment right across the country: Phu Quoc, Dalat, Nha Trang, Mui Ne need more luxury resorts, and Hanoi and Ho Chi Minh City need mid-scale brands.”

  • The luxury market may not be that attractive to investors. There are certain areas where luxury hotels are in short supply, but overall, it’s not the most profitable market in the country.

  “In Hanoi, there is still room for luxury products, but in general, this sector is not very attractive to investors in term of profitability,” said Olivier Do Ngoc Dung, Managing Director of Dynasty Investments. He remarked that the most interesting sector was that of international-standard budget hotels, currently only seen in HCMC and Hanoi. He also believes in the potential of coastal town Ho Tram, where Dynasty Investments last year signed a partnership agreement with Club Med.

  • The mid-scale market is promising, and could put pressure on luxury brands.

“You see local products with lower quality, but you rarely see internationally-managed, affordable luxury products,” said Michael. “I think the ‘affordable luxury’ concept is going to put pressure on 5-star hotels – it will change the market.” The big players will try to create similar brands, he said, or try to buy local brands to fulfil the affordable niche. “Local operators will also change, as you can start to see at Silverland and Liberty.”

  • Tech will play a role, but not a crucial one. Vietnam has some catching up to do in the tech sphere – will this be a problem in an industry increasingly turning to technology to individualise services?

“I don’t believe that much in the interruption of the artificial intelligence that people are talking about,” said Olivier. “In a country like Vietnam, small or boutique hotels are defined by culture and service. Travellers want human contact, so artificial intelligence will not be a threat. Regarding advances like mobile apps – now that OTAs dominate the market, I’m not sure if mobile applications for checking or planning the whole stay are right for small hotels.”

Michael, whose new project Wink Hotels will embrace technology, explains the millennial attachment to tech. “Today’s travellers want almost everything on their phone. Everyone now has their own Netflix, Apple music, Apple TV, Apple whatever and are now travelling with their own personal content. Everything is being streamlined to automatic devices.” For this reason, Wink will make it possible for guests to easily stream content from their phone to the in-room TV.

On the operations front: “Most hotel experiences that used to be handled by people can now be taken care of by technology,” he said. “There will be greater initial investment in hotels, but lower operating costs over time, because what you used to need 100 people to do, now you can do with 20.”

  • Design should play a more prominent role. While local brands strive to reach international standards, Western travellers are still looking for something authentically local.

“One thing we’re seeing now is that people are looking for hotels with personality. ‘Can I stay somewhere where I can experience something unique? Can I experience something that would create good memories about this place?’” said Luis Riestra, Cluster Director of Sales & Marketing, AccorHotels.

Olivier also believes there’s room for innovation in design – both from an aesthetic and a practical standpoint. “New builds and renovations can incorporate open floorplans, co-working spaces, workout facilities, bars and cafés – all of which are especially appealing to the much-sought-after millennial traveller.” There are some brands in Vietnam already doing this, he noted, such as Kafnu by Next Story Group.

  • Vietnam has changing traveller demographics that will influence the local hospitality scene. New markets such as China and India have for the moment replaced Western visitors as the main source of inbound tourism.

“There should be a re-thinking of the products and service offerings for those customers,” said Olivier. He noted that international guests’ behaviours have changed dramatically in the last few years. South Vietnam used to be seen as a cheap destination – mainly backpackers and recent graduates, but is now attracting higher spenders with more time for leisure and lifestyle experiences.

It should also be noted that Vietnam is hoping to increase the average tourist spend up to US$1,080 by 2020. Vietnam Airlines’ direct flights to Paris, Frankfurt and London and the US (from late 2018) may see traveller numbers from the West increase.

  • International hoteliers should not underestimate local players. Even though Vietnam is still catching up to the West, this is not necessarily a disadvantage.

“Don’t think ‘Oh, Vietnam will take years for that.’ Every day, people become better and faster and smarter,” said Michael. “There is so much money-chasing in Vietnam real estate right now, especially in the hospitality sector, it’s going to force innovation, because to be competitive to survive in the market, you have to be innovative.”

“So how should hotel owners and operators react? I would say ‘watch what’s going on and keep up, stay curve’.”

  • Overall, the success of the Vietnamese hotel and travel industry will be a ‘team effort’. Everyone sees the country’s potential, so interest is coming from a range of sectors.

  “Local owners and operators are really waking up to the opportunities on offer in their own backyard,” said Catherine Monthienvichienchai, Strategy Director at QUO. “There is huge optimism about the future of hospitality in Vietnam, and everyone wants a piece of it. Business owners who’ve made their money in other industries see it as a point of pride to diversify into hospitality; almost to showcase their success.

“Meanwhile, we’re seeing a wave of second-generation owners taking over with a much bigger and bolder vision – many have lived or travelled extensively overseas and have a clear understanding of the international landscape. Whether they create their own brands or work with international operators, they aim high and move fast.”

For periodic market updates, add the QUO blog to your bookmarks list – or subscribe and get all our news. 

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Bangkok: The Future of the World’s Most Visited City

Posted on by kithchayah k

In 2017, Bangkok was the most visited city in the world for the second consecutive year, according to the Mastercard Destination Cities Index.

The capital of Thailand has transformed into a megacity, a status confirmed by large-scale urban redevelopment and massive infrastructure projects.

The 50 billion baht (USD $1.5 billion) Icon Siam development is changing the skyline on the Thonburi side of the Chao Phraya river and will be the first project to integrate road, rail and river transportation. The BTS and MRT public transport networks are rapidly expanding, with the MRT Blue Line extension further opening up Thonburi while the BTS line to Don Muang airport will alleviate the delays and frustrations caused by traffic gridlock.

Other massive redevelopments underway in the Big Mango include One Bangkok, a 16-hectare mini-metro next to Lumphini Park, and the Grand Rama IX super tower, which at 615 metres will be one of the world’s tallest buildings and an unmissable landmark when complete. And these projects are just the beginning of Bangkok’s megacity makeover.

But what exactly is a megacity and how does Bangkok compare with other global urban conglomerations? Those questions and many others will be answered at the 2018 Thailand Tourism Forum (TTF), the country’s biggest annual hotel event. The 2018 TTF spotlight will shine on Bangkok and speakers from some of the largest Thai conglomerates will discuss Bangkok’s future growth in new districts as well as the reinvention of historic areas.

QUO CEO David Keen will moderate a TTF panel discussion about Bangkok’s brand and how the new economy will shape perceptions of the city. David will be getting the opinions of some highly respected names in the local hotel and development industries including Ingo Schweder, CEO at GOCO Hospitality; Thomas Schmelter, IHG Group’s Director of Operations for Thailand & Indochina; and Cobby Leathers, Head of International Business for Sansiri PCL.

Organised by the American Chamber of Commerce, TTF 2018 is a unique opportunity to hear Thailand’s hotel and hospitality heavyweights candidly discuss the economy, growth and other issues affecting tourism. Attendance at TTF is complimentary but advanced registration is required.

Date: Monday, 22 January 2018

Venue: Grand Ballroom, Level 4, InterContinental Hotel, Bangkok.

Registration: Send an email to TTF@amchamthailand.com or visit AMCHAM website

For more information and to register, go to www.ThailandTourismForum.com

QUO Global

22nd Floor, Ocean Tower II
75/41-42 Sukhumvit 19
Bangkok 10110
Thailand

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