THE hotel industry and its MICE sector in Shanghai are fiercely competitive businesses. Here, three top hoteliers share insights into how they look to stay on top of the game, with the help of everything from tailored services to a kung fu master.

Q: How large is your current portfolio in Shanghai and how do you expect it to grow over the next few years?

Richardson: Shanghai is a very important market where Accor operates 13 hotels under different brands, from luxury to economy. We are expanding rapidly in this highly competitive market and more new hotels of Pullman, Grand Mercure and ibis will join our network. They will open doors to host our guests in the next three years as we keep the momentum of development.

Butt: We have recently opened our very first city hotel in Shanghai positioned as an "Urban Resort" - Banyan Tree Shanghai On The Bund presents stunning views of the Shanghai skyline across the Huangpu River. Even in a busy city like Shanghai, the hotel features elements of resort living, such as our award-winning Banyan Tree Spa and relaxation pool in our suites, so guests can escape into their private sanctuary while they stay with us.

In addition we are managing three spa outlets in the city under the Banyan Tree and Angsana brands, namely Banyan Tree Spa Shanghai On The Bund; Banyan Tree Spa Shanghai in the Westin Hotel and Angsana Spa Hotel Nikko.

We are very excited to showcase other projects in the pipeline over the next two years. The first of these projects, another Banyan Tree branded urban resort, will open toward the end of this year. Located in Pudong on the banks of Huangpu River, Banyan Tree Shanghai Riverside is set to feature a combination of traditional Jiangnan villas and a trendy block hotel with modern decor. Also under development is the Angsana Zhujiajiao in one of the most famous watertowns in southern China. Over the next year and a half, we are scheduled to open six resorts in China, and we strongly believe that domestic Chinese guests will contribute the most business for the new openings.

Barton: We now have 30 hotels in Shanghai - three InterContinental hotels, eight Crowne Plaza, one Hotel Indigo, nine Holiday Inn and nine Holiday Inn Express. We are expecting the opening of InterContinental Shanghai Ruijin this year, together with two more Holiday Inn hotels, which makes us the biggest among all international hotel groups in Shanghai. With all these assets, IHG will further offer our guests multiple choices to hold events/exhibitions depending on their budget and purpose. In China, we now have 187 hotels (61,601 rooms), with 160 in the pipeline.



Q: As competition among internationally branded hotels continues to intensify, with more hotels being opened across the city, are you going to launch any campaigns this year to further strengthen your brand image?

Richardson: We are one of the very few hoteliers that provide a diversified hotel network to leverage our expertise and the beauty of Accor brands that cover the whole spectrum, from true economy to absolute luxury. In 2013, Pullman launched a global campaign that responds to the needs of business and leisure travellers as well as MICE organizers with the touch of Pullman Artnight, an exclusive and original event taking guests into the heart of the Pullman brand.

In the meantime, most ibis hotels in China have already adopted the brand's new "pillow" logo, demonstrating the brand's spirit of simplicity, modernity and well-being. Other brands under Accor such as Sofitel, Grand Mercure, Mercure and NOVOTEL are also undertaking brand oriented promotions and campaigns to attract and retain the interest and loyalty of our guests. All brands feature MICE products tailored to the hotel facilities and service level offerings.

Butt: What sets Banyan Tree apart is our focus on delivering personalized services to our guests that will bring them back to stay with us time and time again. Our guests, who have enjoyed their stay and have memorable experiences at a Banyan Tree or Angsana property, will choose to stay with us during their next visit.

We've also just launched our first 2013 campaign titled "The Credit Goes To You," indulging our guests with dining, spa and gallery credits worth every second night's stay. This group-wide promotion is a special way to express our appreciation to the guests for their continued support.

Barton: IHG will celebrate the launch of its 200th hotel milestone in China, with the opening of InterContinental Shanghai Ruijin, a landmark hotel sitting in the heart of Shanghai with over 100 years' history. Also, the year 2013 marks the 30th year of IHG's operation success in China.

We will further carry out InterContinental Insider Collections to provide local knowledge to guests, which provides a range of delegate experiences rooted in the destination and draw on our unrivalled local knowledge to create truly engaging, personalized meetings and events. These are carefully chosen to energise delegates with authentic experiences, while ensuring the high service levels that people have come to expect from InterContinental Hotels & Resorts. The Insider Collection is part of a global initiative by InterContinental hotels to bring a new dimension to MICE guests.

Moreover, Crowne Plaza has undergone a brand transformation during the past two years to re-target "the strivers" who are travelling for business to reach their goals. At Crowne Plaza, our promise to meeting planners is "Your Success Matters" and we are focusing on providing seamless service from the first phone call to the post event wrap up. Our dedicated Crowne Meetings Director provides a single point of contact while our two-hour response guarantee ensures you are never left waiting for a proposal. During your event, a daily meeting debrief helps you keep track of expenses and easily make modifications and updates to your program.



Q: What do you think of the supply-demand situation in the city's upscale and luxury hotel market? What challenges are you encountering at the moment in order to maintain long-term solid growth in Shanghai?

Richardson: While we saw the opening of many new hotels in 2012, the demand for upscale and luxury hotel market remains positive, thanks to the city's fabulous business opportunities, heavy demand for MICE organization and increasing interest in domestic travel. To ensure our business levels are sustainable, we are keen on hearing what our guests have to say to customize their needs, should they visit Accor hotels for business, leisure or events. This initiative is based upon our deep understanding of the market, varied guest preference and wishes, backed up by extensive and triggering market research in each segment where we operate. When it comes to the hospitality sector, we are not just talking about hotel facilities, as it is the care and the rapid and attentive response to guests' feedback and needs that make us stand out and grow in an organic approach.

Butt: It is true that with the recent economic downturn and soft demand along with an explosive growth of the luxury hotels in the market, the operating landscape is extremely competitive. We are cautiously optimistic that the worst of the economic issues is behind us and we will start to see stabilized global markets followed by a healthy recovery. We are confident that Banyan Tree's strong brand in Shanghai and throughout China, our product offerings and service delivery to ensure the best customer experience, will keep us ahead of our competition.

Barton: It is predicted that in 2025, the number of rooms that IHG has in China will be the same as it has in the United States. During the process, mid-scale and high-end hotels will experience the largest growth, due to the fact that China has a steadily expanding middle class, together with a growing number of both inbound and outbound travelers. This change is crucial for the lodging industry because the two main trends in the coming years are expansion of market demand and growing brand recognition.

I often think about the question of what brand image means in the service industry. A brand with history needs a modern look, just like a diamond needs to be polished. Here's an example: Holiday Inn undertook a global relaunch program dating back to 2007, removing more than 1,200 hotels from the Holiday Inn system, which did not meet the new standards, and opening 1,500 new Holiday Inn hotels. We are polishing our brands image to maintain and strengthen our global leadership.

I am never afraid of competition. Just as in the late 1990s everyone was talking about the "dotcom industry," now everyone is talking about China. But many people do not understand China, and will not stay here very long. We are different; we invest in people and an entire infrastructure system. We are "in the know."

In 2010, InterContinental launched Insider Collection, a series of customized experiences offered at InterContinental hotels worldwide that connect meeting delegates with what's special about the destinations they visit. It offers a carefully researched selection of activities that reflect the local expertise and knowledge of the people that work at the resort hotel. It comprises of five elements such as Insider Location, Insider Speaker, Insider Community, Insider Interaction and Insider Breaks.

Tailored to each occasion, these can range from interactive off-site team-building activities through to stimulating local speakers, or the opportunity for delegates to contribute to projects that benefit the surrounding community and environment. All of these provide a unique experience to our guests.



Q: Do you consider MICE business an important engine for future revenue/profit growth? How do you expect the overall MICE market in Shanghai to expand over the next couple of years, and how do you anticipate it impacting on your business?

Richardson: Absolutely. MICE is a very important part of our business and we are an expert in working with MICE organizers and planners to make their project a success. As we have seen over the recent years, MICE has become one of the fastest-growing travel segments in China and the demand for MICE centered services in Shanghai continues to look good in the marketplace. At Accor, our Co-meeting solutions will cope perfectly with the seamless execution of events as our dedicated teams consist of event specialists. Pullman brand, for instance, has event managers and IT solution managers dedicated to each event. We foresee MICE business increasing its contributions to Accor hotel revenues as we celebrate the new hotels opening in Shanghai as per our three-year plan.

Butt: The global economic outlook continues to improve. As a result, MICE business has strong potential to show healthy growth for Banyan Tree Hotels & Resort in addition to high-end leisure and group travelers. We will soon be launching a dedicated MICE website. This will facilitate an easy buying platform for meeting planners in search of conducting think tank sessions, holding strategic planning sessions or just recognizing their top performers. Shanghai's plan to become an international financial center, shipping hub and economic and trade center by 2020 is well under way. We are very confident that over the next few years, Shanghai will keep playing an important role in the global MICE market.

Barton: Yes, definitely. MICE is an industry which has generated significant revenue for IHG.

We are very optimistic about the China market, especially about Shanghai. The city attaches great importance to developing international MICE industry. However, compared to Hong Kong and Singapore, there is still some room for Shanghai to develop to be a MICE center in Asia. With deep insight into the market, IHG will bring the best meeting services and facilities across all of our brands to fully tap the potential of the market.

IHG issued a trend report recently, indicating that 1.4 billion domestic trips are now taken annually by the Chinese alone and mixing business with pleasure, 57 percent of Chinese travellers invite family to join them while on business. MICE will surely be one of the impulses of our development. And that's why we will carry out a MICE summer promotion from May to August. Those who book half-day or full-day meeting package will enjoy special group room offer. Furthermore, those who book from May 1 to June 1 will enjoy double Priority Club Rewards points.

Another great initiative to enable us to have a long-term development in China is the IHG Academy. In January, we celebrated the launch of its 150th IHG Academy in China. The global IHG Academy Program partners with community organizations and education providers in local markets to offer skills development and improve employment prospects of the local population. The IHG Academy Program has grown rapidly since its inception and now operates in 37 countries and regions. In China, where the program began in 2006, the 150th IHG Academy is being delivered with Pu'er University in southwest China's Yunnan Province. The university has partnered with Crowne Plaza Xishuangbanna to train and develop hospitality and tourism managers and develop the right skills to support IHG's rapid growth in China.