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Asia Pacific Hospitality Industry Crossed US$134.2 million with Avaya Leading

08-14-2008

Avaya announced that it has experienced double digit growth in the hospitality industry in 2007 of the company's fiscal year in Asia Pacific.

BEIJING, CHINA AND SINGAPORE — Avaya, a leading global provider of business communications applications, software and services, today announced that it has experienced double digit growth in the hospitality industry in 2007 of the company's fiscal year in Asia Pacific. This is reinforced by a recently published report (Enterprise Communications in the Hospitality Industry for Asia Pacific Region, 2008) by consulting company Frost & Sullivan, stating that Avaya Asia Pacific revenues of enterprise communication sales into the hospitality vertical was US$37.7 million for 2007, excluding Japan, representing a market share of 28.1%.

 

The current surge in growth has been aided by unprecedented levels of hotel and resort developments including, Singapore's Integrated Resorts, Macau's casinos, the 2008 Beijing Olympic Games, the 2010 Commonwealth games in India, as well as the influx of tourist arrivals to the region.

 

According to Lodging Econometrics, the Global Authority for Hotel Real Estate, forecast for new hotel openings shows approximately 209 hotels/53,545 rooms opened at the end of 2007, followed by another 329 hotels/84,544 rooms in 2008. The company states that a high 53% of all guestrooms currently in the Asia pipeline will be open by year end 2008.

 

Frost & Sullivan estimates that enterprise telephony solutions sales in the Asia Pacific (excluding Japan) travel and hospitality industry grew 34.9% in 2007, with a total market value of US$ 208.0 million. CAGR for 2008 to 2014 in this industry is 9.4 per cent, demonstrating growth for business communications providers in this sector.

 

Frost & Sullivan industry principal, Moaiyad Hoosenally said, "Enterprise communication sales into Asia's hospitality sector is expected to witness phenomenal growth. Asia is the centre of growth in the global tourism industry and is home to some of the most influential, bustling and largest economies. Rising domestic travel from within the region, the growing affluence of Asians, coupled with the entry of low-cost carriers is expected to encourage travel, especially to countries like China and India, thus boosting demand for hotel rooms.

 

"In addition, in some Asian countries like Singapore, the government has taken a firm stance in promoting the local tourism industry and branding the island republic as a tourist destination. Huge market potential exists in the newly-built hotels, including international chains and boutique hotels," he added.

 

Avaya has a variety of solutions for its hospitality customers. They include integrated solutions for unified communications like softphones, wireless, mobility, voice and IP telephony. These solutions provide a host of benefits such as consistent connectivity and mobility for guests and employees, increase in productivity and efficiency of employees, getting weather updates, city tour guides, navigation facilities, taxi booking etc on their devices. Some hotels are equipping their employees with wireless handhelds to more promptly serve guests, help staff understand a guest's likely preferences, and improve other operations. All of these solutions are on an open standard platform with an extensive partner ecosystem that includes top suppliers from the industry.

 

Hotels are also finding that providing some services on a self-service basis to guests not only eliminates costs, but also provides greater convenience to guests. Examples of self-service include virtual concierge, video checkout, automated wake-up calls, and web based reservations, information like entertainment, weather etc on their in room phones.

 

President of Avaya Asia Pacific, Mark Leigh said, "The Asia Pacific hospitality industry is seeing healthy growth. New large-scale projects, business and leisure travel are expected to boost traffic within and into the region. This has forced hoteliers to reconsider their business strategies as the adoption of technology will impact consumer expectations of their hotel experience. Avaya is seeing hoteliers view technology not only as a critical component of their business strategy, but also a critical part of guests' experience. Communications is no longer regarded as a mere utility. Our solutions give a myriad of competitive advantages that span revenue growth, cost efficiencies, and brand differentiation for the hospitality industry. There has been a significant trend towards offering guests more personalized services, as a differentiator."

 

Hoosenally acknowledges, "Avaya's strategy of integrating different technologies is well founded. The trend of evolving from a relatively isolated voice system to a communications portal, integrated with multimedia and room control functions for instance has added much value to communication systems. This is only possible if the system runs on a standard protocol, which is exactly what IP solutions aim to achieve."

 

Some of Avaya's customers who have begun implementing hospitality solutions include, Taj, Oberoi, Leela, Maureva Sheraton hotels in India; Ritz Carlton in China, Park Hyatt Shanghai, a number of hotels and convention centers within the Beijing Olympic Village are also deploying IP Telephony solutions from Avaya; Wynn Resort and Grand Lisboa in Macau; Burswood Entertainment Complex, Hyatt Regency Sanctuary Cove, Seaworld Nara Resort, Tangalooma Wild Dolphin Resort, Intercontinental Sydney in Australia; Pan Pacific Suites, Goodwood Park Hotel, Le Meridien and Four Seasons Hotel in Singapore. Regional Asia Pacific implementations include hotel groups such as Marriott International, Hilton International and Pan Pacific Hotels & Resorts.

 

Avaya's customer, Pan Pacific Hotels & Resorts' information technology head, Mark Fancourt, Vice President of IT said, "When Pan Pacific was considering a suitable solution, we were not just looking for a technological solution but a solid technology partner with an international presence. Avaya was very professional – the team understood what we required and proposed the solution to match our needs today and in the future. Avaya's technology helped us to enhance operational efficiency and improve customer service. We saved on operating costs which resulted in faster returns on our investment. More importantly, the solution enables our guests and business partners to enjoy more personalized and responsive customer service. They can now call and always reach the party they require, plus they have prompt access to any information they need, no matter what channel they use."

 

About Avaya
Avaya delivers Intelligent Communications solutions that help companies transform their businesses to achieve marketplace advantage. More than 1 million businesses worldwide, including more than 90 percent of the FORTUNE 500®, use Avaya solutions for IP Telephony, Unified Communications, Contact Centers and Communications-Enabled Business Processes. Avaya Global Services provides comprehensive service and support for companies, small to large. For more information visit the Avaya Web site, www.avaya.com

 

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