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Double-digit growth for AP enterprise communication

Ross O. Storey | Aug. 19, 2008
Technology forces the hospitality industry to reconsider strategies.

SINGAPORE, 19 AUGUST 2008 - IP Telephony and Unified Communications provider Avaya has announced double-digit growth within the hospitality industry sector in Asia Pacific, which earned it US$37.7 million for fiscal year 2007.

The company says that its Asia Pacific revenues for enterprise communication sales into the hospitality vertical, represented a market share of 28.1 per cent, leading competitors Nortel and Cisco by 7.9 per cent and 20 per cent, respectively.

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, plus the influx of tourist arrivals to the region.

According to Mark Leigh, President of Avaya Asia Pacific, new large-scale projects, business and leisure travel are expected to boost the region's traffic, forcing hoteliers to reconsider business strategies.

Enhancing guest 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, said Leigh.

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.

According to Lodging Econometrics, the Global Authority for Hotel Real Estate, about 209 hotels (53,545 rooms) opened at the end of 2007, with another 329 hotels (84,544 rooms) opening in 2008. The company states that 53 per cent of all guestrooms currently in the Asia pipeline, will be open by year end 2008.

Frost & Sullivan estimates that Asia Pacific enterprise telephony solutions sales in the travel and hospitality industry grew 34.9 per cent in 2007, with a total market value of US$ 208.0 million. The forecast compound annual growth rate (CAGR) for 2008 to 2014 is 9.4 per cent.

Phenomenal growth expected

According to Frost & Sullivan industry principal, Moaiyad Hoosenally, enterprise communication sales into Asia's hospitality sector are 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, said Hoosenally.

He also added that the government in some Asian countries like Singapore has taken a firm stance in promoting the local tourism industry and branding the island republic as a tourist destination. As such, huge market potential exists in the newly-built hotels, including international chains and boutique hotels.


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