Rise in inquiries, bookings from Germany under vaccinated travel

German tourists seem to think Singapore might be the ticket for their next holiday, going by the inquiries for operators in the beleaguered hospitality industry.

The new Vaccinated Travel Lane (VTL) for visitors from Germany which kicked off earlier this month continues to draw substantial interest, say industry players.

Travel platform Expedia told The Straits Times that bookings made on the Expedia Germany platform for travel to Singapore grew by more than 70 per cent after last month's official VTL announcement, over the previous seven-day average.

Bookings made under the VTL arrangement also average stays of seven nights or more, said Ms Lavinia Rajaram, Expedia's head of communications for the Asia-Pacific.

"As travellers are more inclined to choose a longer length of stay, the hotel industry is also looking at ways to provide attractive packages for travellers, which include discounts on attractions around the island, or for its respective hotel services such dining or spa," she added.

"Hotels have also placed great emphasis on guest safety. Many are SG Clean-certified or have clearly published their health and hygiene protocols."

A spokesman for Trip.com said it has also seen an increase in inquiries and bookings from travellers in Singapore and Germany in recent weeks, reflecting a pent-up demand for leisure jaunts.

"We expect to receive more bookings in the upcoming months, and will work with our partners to launch packages aimed at promoting travel between both countries," he said.

A spokesman for the German Embassy said that it has experienced a "constantly high volume of queries" from potential travellers and travel agencies since the VTL announcement on Aug 19.

The embassy is also constantly updating its website to provide information and guidance, he said.

Singapore Hotel Association (SHA) president Kwee Wei-Lin noted: "The VTL is an important first step for the gradual resumption of quarantine-free travel.

"Although the impact is not significant at this early stage, SHA and our members welcome the announcement of these VTLs and the implication of growing international tourist arrivals soon.

"With the progressive easing of travel restrictions, we hope that more VTLs will be established in the weeks ahead."

SHA has also added a VTL page on its website to provide a one-stop resource for such travellers.

ST understands that the Pan Pacific Hotels Group has seen inquiries and bookings gradually coming from German travellers.

It is also working with third-party partners, travel agents and online platforms to develop exclusive rates for VTL travellers and extend various promotions to their guests from Germany.

Ms Cinn Tan, the group's chief sales and marketing officer, said: "Pan Pacific Hotels Group is looking forward to skies reopening, welcoming... travellers back to Singapore.

"This has been long awaited since the global lockdown more than 18 months ago."

She added that the hotel group is exploring a partnership with the Singaporean-German Chamber of Industry and Commerce to reach out to German corporate clients.

The group's hotels have created dedicated check-in counters and allocated floors for VTL guests.

Meanwhile, Wyndham Hotels and Resorts Asia-Pacific president Ooi Joon Aun said: "Our hotels in Singapore have managed to preserve jobs for our hotel team members, electing to redeploy them to other functions internally, and will be able to re-allocate them to suitable roles once travel demand picks up," he said.

The news of quarantine-free travel possibly opening up is welcome news for Singapore hotels, which have suffered low occupancy rates this year.

Due to the phase two (heightened alert) and restrictions on group sizes, occupancy averaged 52 per cent in June during the school holidays, according to the Singapore Tourism Board, a sharp drop from the 62 per cent last December.

Average occupancy rates also remained below 50 per cent in the first two quarters of this year, while they hit 58 per cent in the fourth quarter of last year, and 65 per cent in the third quarter after the circuit breaker was lifted.

Ms Kwee said: "Our initial optimism towards domestic demand during the June school holidays was negated by the recent restrictions.

"Instead of healthy occupancies, our members were faced with booking cancellations for both staycations and dining experiences alike."

Mr Arthur Kiong, Far East Hospitality chief executive, said: "We must bear in mind that domestic demand, even at optimistic projections, are very far off from letting hotels achieve pre-Covid-19 occupancy and capacity.

"The market is simply too small for the number of hotel rooms available.

"It may fill about 5 per cent to 10 per cent of total available rooms and inventory on an annual basis, while hotels, in general, require about 40 per cent occupancy at pre-pandemic rates to cover operating costs."

Hospitality firms are preparing for the new world of travel by launching concept-driven hotels and experimenting with digital tools to make the experience safer and more contactless.

Take Far East Hospitality, which opened Oasia Resort Sentosa this month, marking the group's first foray into the resort and spa category.

Chief executive Arthur Kiong said the group is looking at hotels that are concept-driven, instead of just buildings with rooms inside.

Starting with The Clan Hotel in Singapore, the group's expansion efforts have shifted to offer guests concept hotels in terms of location or theme, for instance.

The Clan Hotel is positioned as a modern luxury hotel with a nostalgic story to tell, by evoking the history of clans around the Amoy Street area.

Marriott International also opened a hotel, The Duxton Reserve, in February, and will open The Maxwell Singapore towards the end of the year.

Mr Rajeev Menon, its president for the Asia-Pacific excluding Greater China, said: "Hyper-localised strategies and an agile, forward-thinking approach will continue to be our focus. Last year, we signed a South-east Asia-wide partnership with Grab.

"We are working to integrate our offerings into Grab's platform in phases across food delivery, payment, transport, loyalty and rewards. In Singapore, Marriott Bonvoy features at least 17 restaurants and bars on GrabFood's platform."

Meanwhile, other hotels are using this slow period to beef up their digital capabilities to provide a safer experience for guests.

Dusit Thani Laguna Singapore recently launched a process that lets guests check into the hotel with their selfie on a smartphone's Web browser.

It is integrated with the Singapore Tourism Board's e-visitor authentication service and major hotel property management systems.

Singapore Hotel Association (SHA) president Kwee Wei-Lin said: "Although digital transformation of Singapore's hospitality services began a few years ago, the pandemic has accelerated the process.

"We are thankful that Singapore's infrastructure supports a smooth and rapid adoption of technological advancement in hotel operations.

"While battling the pandemic, SHA is relentless in our effort to continue the hotel industry's transition to cost-efficient operations without compromising service excellence."