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Business Name Generator (BNG) has revealed how much 28 cities around the world pay their employees in four employment sectors – marketing, HR, creative, as well as tech.

Tech

After analysing annual salaries for five job roles* in the tech industry in 28 cities across the globe, BNG has found that Doha is the highest-paying location for tech heads. In Doha, employees in tech receive an average annual salary of £127,888, with the highest earning salary analysed in the study being that of a data scientist - data scientists earn an average of £361,877 per year.

While salaries are all very well, overheads eat into the money, making disposable income a better indicator of quality of life. The annual cost of living in Doha is £26,382 (including rent and utilities), resulting in the highest disposable income for workers in the tech field overall (£101,506 per year, or £8,459 per month).

Abu Dhabi is ranked 3rd, with average annual salaries of £97,231.61, and an annual cost of living pegged at £24,094.32. Hong Kong comes in 6th (average annual salaries of £88,202.61, and an annual cost of living of £33,882.84), while Singapore is 10th (average annual salaries of £78,072.96, and an annual cost of living of £43,009.08).

HR

Hong Kong is paying HR professionals the most**, with an average salary of £83,818. The highest paying job role analysed in the study is for a Recruitment Manager, who can expect to earn £163,568 per year on average. Average annual salaries were calculated to be £83,818.09, and disposable incomes.

Ranked No. 2 was Abu Dhabi, with annual average salaries of £80,923.03 and average annual disposable incomes of £56,828.71. Singapore was in 4th place, with annual average salaries of £66,229.17 and disposable incomes of £23,220.09. Beijing is 5th (annual average salary £63,844.04, and corresponding disposable income of £48,538.40). Dubai is 7th and Doha is 10th for HR (annual average salaries of £59,426.20 and £56,290.56 respectively, with disposable incomes of £30,004.96 and £29,908.68 respectively).

Seoul, on the other hand, took 2nd place in the list of lowest-paying cities for HR professionals. In Seoul, HR professionals can expect to take home £28,793 per year on average.

Marketing

Dubai marketers have the best life of all, with salaries*** reaching £107,352 on average. BNG suggested that the high salaries are due to the city trying to attract international talent. Product Marketing Managers are at the marketing pinnacle, earning £224,200 on average per year. Average annual disposable income comes up to £77,930.

The top three cities for marketers are all in the APME region. In No. 2 place is Hong Kong (average annual salary £79,155.27, average annual disposable income £45,272.43), followed by Abu Dhabi (average annual salary £78,997.55, average annual disposable income £54,903.23). Singapore is ranked 6th (average annual salary £70,223.04, average annual disposable income £27,213.96).

Creative

When it comes to creatives, APME cities only make 8th, 9th and 10th in the top 10 list. In Dubai, average annual salaries amount to £49,488.86, followed by £47,676.25 in Hong Kong and £47,355.26 in Singapore. Disposable income for Dubai came to £20,067.62, then £13,793.41 for Hong Kong. With annual cost of living pegged at £43,009.08, Singapore creatives were left with £4,346.18 per year for disposable income.

Despite coming in 11th overall with an average annual creative salary of £46,027, Beijing is where creatives can expect to enjoy the highest disposable income. Beijing has a fairly affordable cost of living of £15,306 per year, leaving creatives with a disposable income of £30,721 on average.

Another Asian city is in the top three for disposable income. Tokyo comes in third with an annual disposable income of £26,773. The yearly cost of living there is estimated to be £17,485.

Bangkok tops the list of lowest paying cities for creatives. Residents take home £17,531 on average per year against a fairly low cost of living of £13,110 a year, including rent and utilities. This leaves creatives in Bangkok with an average disposable income of £4,420.

BNG suggests entrepreneurs and digital nomads who are thinking of relocating to:

Do the groundwork

Every country will have its own rules and regulations around things like business tax, import and export costs, and visa requirements.

Consider demand

Make sure to look at the competitiveness of your offerings in your target market, and undertake a feasibility study to understand if this is the right place for your company and whether it makes commercial sense to set up there.

Expand your network

Once you’ve established the right location for your business, it could be beneficial to meet with other businesses which have already set up in your target market. They may be able to provide you with some practical advice, and it’s always good to have a support network around you.

Hire the right experts

Work with local lawyers, accountants, and banks to understand the legal and financial regulations in your chosen country before setting up your business.

If you plan on expanding the company, you’ll also need to think about what kind of staff you’ll need. Surrounding yourself with a local team of specialists is going to be really important for the success of your business. When it comes to the hiring process, it’s important to be aware of any cultural differences that might be in play.

Start on your checklist

To prevent a backlog on your checklist, start with the easier items first, thinking of your new business name for example. BNG's AI-powered business name generator can to help you come up with ideas.

Be patient

Success doesn’t happen overnight, but believing in yourself and your business is the first step to achieving it. By researching, planning, networking, and persevering, you’ll be able to lay a solid foundation on which your business can grow.

*The salaries analysed for tech professionals were data scientist, software developer, information security analyst, computer systems analyst and web developer.

**For HR, the five positions analysed were recruiter, recruitment manager, HR assistant, HR coordinator and HR specialist.

***Marketing assistant, brand ambassador, marketing manager, product marketing manager and PR specialists were polled for the research.

****BNG researched salaries for illustrators, architects, copywriters, graphic designers and web designers.

Cards are 52% of payments in Asia, but new tools are emerging

An omnichannel payments strategy is key to creating a seamless customer experience for 79% of merchants and retailers according to benchmark data in 2017 Global Payments Insight Survey: Merchants and Retailers from ACI Worldwide and Ovum.

The study* revealed that although the EMV card standard has lowered fraud prevention costs, fraud continues to shift online. And while merchants and retailers plan to considerably increase investment in payments to improve customer experience (by 50% compared to 2015), more than three quarters of these organisations view security, compliance and fraud management issues as the biggest barriers to their investment decisions.

Principal findings include:

· Cards continue to dominate the payments market for retailers and merchants, making up 52% of payments in Asia

· New and alternative payment tools now account for 10% of global merchant transactions, with contactless cards now accounting for near 2% of transactions in Asia as high sales-volume merchants embrace quick and convenient means of payment

· Six in 10 (59%) of merchants and retailers plan to increase their payments investments during the next 18 to 24 months, up from 50% in 2015

· Payments investment is high in all sectors, with 65% of travel and accommodation companies reporting an increase in investment levels

· Merchants and retailers increasingly expect payments investment to improve the customer experience, but more than 75% indicate security and compliance are the biggest barriers to payments initiatives

· Although 52% of merchants and retailers say their card not present (CNP) losses are growing, 70% say they are satisfied with their CNP fraud prevention tools.

“As commerce becomes increasingly digital, payments technology is critical to improving customer engagement and reducing costs—with 79% of global merchants and retailers noting that an omnichannel approach is key to creating a seamless customer experience,” said Lynn Holland, VP, ACI Worldwide.

“Although there isn’t one path to payments modernisation for merchants and retailers, the benefits of investing in new and alternative payments methods are increasing—in terms of both merchants’ bottom lines and overall improvement of customer experience,” said Matthew Heaslip, Analyst, Ovum. “To stay competitive in this changing retail market, merchants and retailers must foster strong payment partnerships with companies that not only understand their market verticals, but can also help them both improve their omnichannel capabilities and reach new customers.”

Interested?

Read the 2017 Global Payments Insight Survey: Merchants and Retailers report

*For the 2017 Ovum Global Payment Information Survey, which includes merchant, biller, and retail banking components, ACI and Ovum created a 23-point questionnaire, looking at the following criteria for key payments players: significant aspects of existing payments infrastructure; forecasts for spending; areas for investment and perceptions of where payments fit within their broader strategic objectives. This survey was sent to payments decision makers globally in December, 2016—January, 2017. It provides a snapshot of payment perceptions among merchants, financial institutions, and scheduled billing and payment- taking organisations such as higher education, consumer finance and insurance. Overall, 1,475 executives across 15 industry sub-verticals in 25 key global markets responded, resulting in more than 144,000 separate data points on perceptions and expectations of payments among critical payment enablers globally.

Industries surveyed include general merchandise, food service and restaurants, grocery, fuel and convenience, and travel and lodging, based in countries in the Americas, Asia Pacific (APAC) and Europe, Middle East and Africa (EMEA).

posted from Bloggeroid

Avaya identifies gaps in the guest experience

Avaya has announced the findings of its first annual Hospitality Industry Survey, where 72 global hotel brands identified market trends and room for improvement.

Survey respondents aligned around three particular issues as they seek to improve the guest experience: guest engagement, communication and services. Many companies, however, are seeing significant opportunities by taking advantage of mobile, multichannel communications for both guests and staff, and updating standard, in-room devices with cool new applications and capabilities.

Various gaps in the guest experience were identified through the survey:

Engaging guests - more than half (55%) of hospitality companies say they struggle to engage their guests during the booking process, while 70% say they struggle during and after the visit.

Communication between guests and staff leaves a lot to be desired - 60% of survey respondents say the inability of their staff to effectively communicate with guests is a “main factor” diminishing the guest experience at their properties.

Services - six in 10 (62%) of global respondents said the quality of the guest experience at their properties would be significantly improved by enhanced in-room and on-property guest services.

Technology to the rescue

Since most guests are on the move during their stay - as well as a large portion of the staff dedicated to serving them - respondents recognised that mobile apps offer the most compelling opportunity for improving service of any technology (48%). In fact, 81% of respondents are planning to create high-functioning apps over the next five years.

“The guest experience is more important than price when it comes to repeat customers and recommendations. The big question is how do we improve the experience at a reasonable cost, when nearly everything about a hotel has high capital and operating expenses? With Avaya, our hospitality industry customers are finding exciting new ways of engaging guests, creating efficiencies and delight that will help ensure their properties are booked to capacity,” said Frederick Sabty, VP, Hospitality Worldwide for Avaya.

Avaya provides solutions to more than 2,500 hotels worldwide and has existing relationships with nine out of 10 of the world’s luxury hotels.

Mastercard Well-Being Index reflects optimism in Asia Pacific

The latest Mastercard Well-Being Index* has revealed that people in Asia Pacific remain optimistic towards their overall wellbeing (score of 62.1), with those in emerging markets (65.5), led by India, Philippines and Indonesia, showing higher resilience and satisfaction than others in developed markets (56.7).

The Mastercard Well-Being Index surveyed 9,123 people across Asia Pacific about their economic, social and financial outlook, covering four key components: work and finances, safety from threats, personal and work satisfaction as well as personal wellbeing.

Leading the region with an overall wellbeing index score of 75 is India, the only market to have reached a very optimistic level in this survey series’ history. India’s optimism is likely driven by consumers’ upbeat sentiment over the robust pace of economic growth and stable macroeconomic fundamentals, as well as their ability to deal with stress and challenges. Other optimistic markets include Philippines (73) at second place and Indonesia (71.4) in third.

Conversely, Asia’s developed economies have struggled to advance out of neutral territory, owing to deep entrenchment in a culture of overtime and high levels of work-related stress. Japan (50.4) and Korea (52.1) rank the lowest for overall wellbeing, which is reflected in consumers’ consistently downbeat sentiment towards their personal wellbeing related to family stress, work stress, financial stress and health.

According to the study, it seems that a stress-free life with strong work-life balance is key to happiness. Overall, out of the four components, consumers in the region felt most satisfied with their personal and work life (65.5), buoyed by strong fulfilment amongst consumers in emerging markets such as India (83), Philippines (78.2), Myanmar (75.4), Vietnam (72.7), mainland China (71.3), Indonesia (71.1) and Thailand (70.2).

Georgette Tan, Senior VP, Communications, Asia Pacific, Mastercard said, “Findings from this study show that consumers’ outlook on their overall wellbeing is invariably shaped by the reality of their everyday lives, as well as social, economic and political conditions. In addition, we also see that strong opportunities for growth can imbue optimism and hope for the future as exemplified by Asia’s emerging economies like India, China and Indonesia, where their higher wellbeing scores correlate with growing GDP rates. Such insights are crucial to Mastercard’s work in the region where we’re committed to driving inclusive growth. It gives us a holistic view that complements economic activity, and provides us with a clearer understanding of the progress to be made.”

Across the board, of all four components, people in Asia Pacific were most concerned about their safety from threats (57.6), with those in Myanmar (43.5), Bangladesh (46.6) and Japan (46.9) having felt the most vulnerable. This apprehension was caused mainly by fear of cybercrime (54) and financial crime (55). On the other hand, people in emerging markets, led by India (78.7), Philippines (64.5) and Indonesia (64.3) are the least concerned about their overall safety.

Overall Well-Being Index, country scores

1. India	75.0	6. Thailand	66.1	11. Hong Kong	58.6	16. Taiwan	54.3
2. Philippines	73.0	7. Myanmar	64.6	12. Singapore	58.6	17. Korea	52.1
3. Indonesia	71.4	8. Cambodia	63.9	13. Sri Lanka	56.6	18. Japan	50.4
4. Vietnam	71.4	9. New Zealand	63.5	14. Bangladesh	55.5
5. China	68.2	10. Australia	59.6	15. Malaysia	54.9

Average for Asia Pacific	62.1
Average for developed Asia Pacific	56.7
Average for emerging Asia Pacific	65.5

Well-Being Index – Work & Finances component, country scores

1. Vietnam	81.5	6. New Zealand	71.7	11. Australia	60.4	16. Singapore	52.7
2. Philippines	79.2	7. Myanmar	66.9	12. Japan	59.5	17. Malaysia	51.9
3. Indonesia	77.2	8. Thailand	65.9	13. India	56.0	18. Sri Lanka	50.3
4. China	75.3	9. Bangladesh	65.0	14. Korea	53.9
5. Cambodia	71.8	10. Hong Kong	61.3	15. Taiwan	52.9

Average for Asia Pacific	64.1
Average for Developed Asia Pacific	58.9
Average for Emerging Asia Pacific	67.3

Well-Being Index – Safety from Threats component, country scores:

1. India	78.7	6. Thailand	63.1	11. Cambodia	56.8	16. Japan	46.9
2. Philippines	64.5	7. China	60.3	12. Taiwan	55.5	17. Bangladesh	46.6
3. Indonesia	64.3	8. Australia	59.8	13. Sri Lanka	51.8	18. Myanmar	43.5
4. Singapore	64.2	9. Vietnam	59.4	14. South Korea	50.9
5. New Zealand	63.4	10. Hong Kong	57.9	15. Malaysia	48.5

Average for Asia Pacific	57.6
Average for Developed Asia Pacific	56.9
Average for Emerging Asia Pacific	57.9

Well-Being Index – Satisfaction component, country scores

1. India	83.0	6. Indonesia	71.1	11. Sri Lanka	61.7	16. Taiwan	56.8
2. Philippines	78.2	7. Thailand	70.2	12. Singapore	60.8	17. South Korea	55.7
3. Myanmar	75.4	8. Cambodia	68.3	13. Malaysia	60.4	18. Japan	49.7
4. Vietnam	72.7	9. New Zealand	65.4	14. Hong Kong	59.2
5. China	71.3	10. Australia	62.7	15. Bangladesh	57.1

Average for Asia Pacific	65.5
Average for Developed Asia Pacific	58.6
Average for Emerging Asia Pacific	69.9

Well-Being Index – Personal Well-Being component, country scores

1. India	82.6	6. China	65.7	11. Singapore	56.7	16. Taiwan	52.2
2. Indonesia	73.2	7. Thailand	65	12. Hong Kong	56.3	17. South Korea	47.9
3. Myanmar	72.6	8. Sri Lanka	62.7	13. Australia	55.2	18. Japan	45.7
4. Vietnam	72	9. Malaysia	59	14. New Zealand	53.6
5. Philippines	70.1	10. Cambodia	58.9	15. Bangladesh	53.4

Average for Asia Pacific	61.3
Average for Developed Asia Pacific	52.5
Average for Emerging Asia Pacific	66.8

The Mastercard Index suite in Asia Pacific includes the long-running Mastercard Index of Consumer Confidence, as well as the Mastercard Index of Women’s Advancement, Mastercard Index of Financial Literacy, and the Mastercard Index of Global Destination Cities. In addition to the indices, Mastercard’s research properties also include a range of consumer surveys including Online Shopping, Ethical Spending and a series on consumer purchasing priorities (covering travel, dining & entertainment, education, money management, luxury and general shopping).

*The latest Mastercard Well-Being Index is based on a survey conducted between November 2016 and December 2016 on 9,123 consumers aged 18 to 64 in 18 Asia Pacific countries. Consumers were asked 17 questions pertaining to four components. The results of their responses were converted into sub-indices, which were subsequently averaged to form the Mastercard Well-Being Index score. The scores range from 0 to 100 where 0 represents the maximum negative response, and 100 represents the maximum positive response and 50 represents neutrality. 

Singapore firms mulling hires of senior tech PMETs to address talent crunch

Although there is growth in the job market, the Singapore infocomm Technology Federation’s (SiTF) latest 2017 business outlook survey* shows that the infocommunications (ICM) industry continues to be hampered by difficulties in hiring talent with the right IT and business technical skills.

In a poll with 181 companies, 75% of respondents ranked their top concern as being unable to recruit the right talent. Startups faced the most pressure in this area, with 91% listing recruiting the right talent as their gravest concern, followed by small and medium sized enterprises (SMEs) at 76% and multinational corporations (MNCs) at 75%.

Source: SITF. The talent situation in Singapore for ICM.

Companies of all sizes said they are particularly challenged in getting qualified local candidates, especially for:

· Programmers (52%)

· Business development (50%)

· Cyber security specialists (40%)

· System architects (38%)

· Engineers (36%)

The next two concerns after shortage of talent are the economic slowdown (70%) and increasing manpower costs (57%).

To cope with the shortfall, 61% respondents said they are employing more contractors, part-timers or freelancers. More than half of the companies polled, or 56%, will upgrade their existing workforce so that they can handle more work and 49% plan to deploy technology to reduce their manpower needs. Other measures include reviewing work processes to reduce work, employing foreigners and moving more work offshore.

Another option is to tap the pool of senior professionals, managers, executives and technicians (PMETs), defined as those who are over 45 years old. Three quarters or 75% of companies surveyed said they do not have concerns hiring senior PMETs. Of the remaining 25% that expressed some concerns, the fears were that senior PMETs might not be equipped with the right knowledge and capabilities; remuneration packages which might be too high, and that they may not be able to cope with the pace and workload of existing jobs.

To raise the employability of PMETs, two-thirds or 65% of respondents believe that more can be done to help older PMETs find jobs. Among some of the suggestions include providing grants to make them easier to hire, funding their reskilling so they can become more efficient and productive, and developing a freelance or part-time talent pool that the industry can rely on whenever required. Other ideas include creating paid internships or training courses for senior PMETs, and making the rules of hiring them more flexible (such as relaxing some MOM laws and reducing the need for long-term commitments).

Saw Ken Wye, Chairman of SiTF said, “The talent crunch is not just a concern in Singapore, but a global problem which can hamper our ability to grow and affects Singapore’s drive towards a smart nation. This shortage could become more acute as companies go digital.

“The SkillsFuture initiative and recommendations by the Committee on The Future Economy to ‘deepen’ our skillsets are positive steps taken by the government. At the same time, the ICM industry must continue to be proactive and aware as to how we can enlarge the talent pool and alleviate the shortage. Job seekers must play their part by learning new skills and upgrading themselves.”

On the technology front, the five hottest trends identified by respondents are:

· Big data and data analytics

· Cyber security

· Artificial intelligence (AI)

· Nano sensors and the Internet of Things (IoT)

· Cloud/client computing

The top three business opportunities this year were ASEAN, investment by Singapore-based companies in technologies as well as government procurement.

*The annual business outlook survey allows SiTF to get a sense of the market and a perspective of the issues impacting the industry, so that SiTF can represent members' concerns accurately. A total 181 companies comprising MNCs, SMEs and startups took part in the survey, which was held in December 2016.

Sabre dissects Asia Pacific travel market

The four different types of travellers in Asia.

• Travel becomes mainstream: four in five Asians see travel as a ‘necessity’ today, not a ‘luxury’.
• One in three Asians to travel for leisure three or more times per year.
• A small majority of Asian travellers are more ‘self-oriented’ (56%) in their travel and seek to take control of their trip (58%).

A study by Sabre Corporation, a technology company serving the global travel industry, reveals a series of highly contrasting traveller preferences behind the growing Asian Pacific travel market.

Four out of five Asian travellers surveyed state that travel is no longer a luxury for them, but a necessity. Over one in three say they would travel for leisure three or more times per year.

“Barriers to travel in the region are breaking down – strong macroeconomic performance, rising personal incomes, a surge in affordable travel options and increased government support are all driving growth – meaning traveller volumes are undisputedly on the rise. But traveller preferences are also evolving,” commented Todd Arthur, VP, sales and market development for Sabre Travel Network Asia Pacific. “Those who work in the industry are observing that serving travellers based on a traditional trip category alone, such as business or solo or senior travel, has limited value in today’s more dynamic market.”

Andrew Herdman, Director General, Association of Asia Pacific Airlines, noted: “It’s hard to segment consumers across the markets, but you may be able to identify some common themes based on the values of travellers and psychographics. No one has approached it this way yet.”

Using a psychographic assessment of travellers, the study finds that major polarisation exists across two key dimensions around the region: ‘motivation’ – whether a traveller is motivated by ‘self’ or ‘others’ in their travel choices – and ‘behaviour’ – specifically the level of control a person wants to exert over their trip.

However a small majority of travellers are more likely to be motivated to travel by self-oriented reasons (56%), seeking to build their own individuality and life experiences rather than the opportunity to gain experiences to share with others (44%). When it comes to behaviour, more travellers would rather exert control in their trip (58%) over letting someone else take charge (42%). This reflects a growing sense of consumer empowerment and willingness to invest more effort in personalising the travel experience; pre, mid or post trip.

Mapping these polarisations across both behaviour and motivation gives rise to four distinct Asian traveller types. They are: the Explorer (38%), Connector (20%), Follower (23%) and Opportunist (18%), depending on whether they prefer to be taken care of or take control on one axis, and if they are more self-orientated or more other-orientated on the other axis.

Taking more control of a trip does not come at the expense of external support and trip guidance offered by travel providers and agents. In fact the study finds that over three in five Asians (64%) expect to use a travel agency for their next trip.

Sabre is working with travel companies in the region to introduce new technologies that help them adapt and respond to these changing traveller types. “We’re encouraging our customers in the travel industry to ask, ‘how do I evolve my offering to connect with these travellers in the way they want?’ That’s how they’ll capture their attention, and credit cards,” said Todd.

“Take the Explorers, for example. They are the traveller type most likely to want to plan their trip on the go, so there’s a great opportunity today for the industry to provide consumers with technology platforms that offer on-demand trip planning and travel shopping services.”

One in three Asian travellers fall into the ‘Explorer’ category, making this the most common traveller type around the region. Notably though, after this there is an almost even split of travellers, by volume, between the three remaining traveller types.

After Explorer, which is the top traveller type for all 11 Asian markets surveyed, the following groupings were recorded:

• Connectors tend to go to Australia, Indonesia, Korea and New Zealand.
• Followers are gathering in Hong Kong, India, Japan, Malaysia and Singapore.
• Opportunists are ready to go in mainland China and Taiwan. 

Source: Sabre. The four categories of Asian travellers, in-depth.

“Sabre’s study provides a fresh take on Asian travellers today. By going beyond traditional traveller segmentations to map the evolution of our customers at a more granular level we can hone our services to keep adding value to the travel experience,” commented Allen Leng, Corporate Office Director, Chan Brothers Travel & Director, Chan Brothers Lab.

Sabre Travel Network’s Senior VP, Asia Pacific, Roshan Mendis, said, “Asia Pacific’s travel industry is booming. Not only are we the world’s largest travel market today but we are also one of the regions with the highest levels of projected growth. With this comes rapid evolution in the way people travel; their expectations, choices, likes and dislikes. We need to understand these changes to keep the travel industry players we serve at the forefront of this evolution.”

Sabre is bringing more data-driven decision support tools to market this year that will help airlines, hotels and travel agencies track and understand their customers’ evolving profiles in order create more personalised and relevant experiences for travellers. This includes the new Sabre Red Workspace.


*The report was conducted by The Futures Company for Sabre Corporation between June and August 2016, based on a quantitative survey of 3,233 travelers from the Asia Pacific region, comprising both business and leisure travellers.

Waves in China to impact M&A: Intralinks APAC respondents

Respondents from the Asia Pacific region (APAC) have predicted that economic and market events in China will have the most impact on mergers and acquisitions (M&A) activity in the region over the next six months.

This is according to the results of a survey of over 1,600 global dealmakers involved in M&A released by Intralinks, a global provider of M&A deal management and secure content collaboration solutions. The survey was carried out between October 4 and 11, 2016 and covered the Asia Pacific (APAC), Europe, the Middle East and Africa, North America and Latin America regions.

“There’s clearly an overwhelming consensus among dealmakers that Hillary Clinton will be the next US President and that Donald Trump would be bad for global M&A,” said Philip Whitchelo, VP Strategy & Product Marketing at Intralinks. “However, factors other than US politics are also dominating dealmakers’ attentions, with the UK’s Brexit vote, monetary policy changes and the impact of China on the global economy being top of mind for many,” he added.

APAC results from the survey include:

· More than half (51%) of respondents expect to participate in more deals in the next six months than the previous six months

· Nearly nine in 10 (86%) respondents think Hillary Clinton will win the US presidential election

· About six in 10 (59%) respondents believe the impact of a Trump presidency on the M&A market in their region would be negative

· Two thirds (66%) of respondents believe a Clinton presidency would have no impact on the M&A market in their region [28% positive, 6% negative]

At a global level, 56% of respondents believe that a Trump presidency would have a negative impact on M&A activity, and 15% believe that he will win. Conversely, 57% of respondents globally believe a Clinton presidency would have no impact on M&A activity, with 26% of dealmakers stating a Clinton presidency would have a positive impact on M&A activity.

The digital hoarding struggle is real

Source: Veritas infographic. More than two thirds of office professionals give up on organising their files.

Veritas Technologies, the information management provider, has released research* showing that 79% of IT decision makers (ITDMs) in Singapore admit they are hoarders of data and digital files.

Following its Data Genomics project, which analysed tens of billions of files and their attributes from many of its customers’ unstructured data environments, Veritas conducted a study to analyse the data storage habits of ITDMs and global office professionals.

Source: Veritas infographic. What makes a data hoarder?

The research, commissioned by Veritas, was conducted among office professionals and ITDMs globally, with 1,000 respondents from Singapore, to look into how individuals manage data. Significant concerns regarding data hoarding were highlighted, with 82% of all respondents indicating that they store data that could be potentially harmful to their organisations.

These include: unencrypted personal records, job applications to other companies, unencrypted company secrets and embarrassing employee correspondence. Major issues highlighted in the research include:

The findings highlighted that digital hoarding ITDMs keep 52% of all the data they create. They also concede that the oldest files on their computers are six years old, on average.

While this indicates that data hoarding behaviour is common across organisations, many office professionals, 57%, admit that they wouldn’t trust a data hoarder to turn in a project on time, higher than the global average at 48%. And nearly one in three (32%) digital hoarding office professionals have never followed through on a plan to delete old files.

Respondents are also willing to do the unexpected in order to keep the files they’ve hoarded, giving up their clothes and weekends rather than deleting their files. Close to half (45%) would rather get rid of all their clothes than their digital files while 37% would rather work weekends for three months than get rid of all their digital files.

A significant majority of ITDMs were also overwhelmed by the extent and amount of data that they are hoarding. However, while 76% of ITDMs feel that digital hoarding is one of the biggest IT problems at their company – 86% said they feel that non-IT executives don’t understand how big of a problem it can be.

More than three quarters (77%) of ITDMs frequently have to take time away from their daily responsibilities at work to solve problems caused by digital hoarding – and on average, they encounter four issues per week. On average, ITDMs feel that 44% of the employees at their company are digital hoarders, whereas 70% of office professionals self-identify as digital hoarders. What is clear is that employees struggle to determine if data has long-term importance or value. As a result, 47% of them are afraid they will eventually need to refer to the data again and they are not sure which files should be kept or deleted.

The amount of data their company stores would increase the time it takes to respond to a data breach, according to 83% of ITDMs. Moreover, what is being retained could itself be harmful, with 73% of office professionals and 91% of ITDMs in Singapore admitting they save ’harmful’ files – which is significantly more than office professionals (62%) and ITDMs globally (83%). These include: unencrypted personnel records, job applications to other companies, unencrypted company secrets and embarrassing employee correspondence. Personal files also make up quite a bit of the ‘junk’ saved, with 91% of ITDMs admitting to saving unnecessary personal files.

In May 2018, the European Parliament will implement the European General Data Protection Regulation (GDPR), a set of EU-wide laws that also affect those outside the EU doing business
within it. Maximum non-compliance fines are at the higher end of US$22.3 million, or up to f4% of worldwide turnover.

“As Singapore moves towards becoming a digital society, virtually every organisation struggles with the challenges brought on by exponential data growth. As a result, office professionals and IT departments have the tendency to safeguard all the information on hand for ‘potential’ use in the future,” said Victor Cheng, MD, Asia South Region, Veritas. “To make matters worse, employees do not view data hoarding as a threat, thus placing data cleanup on the low priority list. It’s time to make data cleanup a priority while causing minimal disruption within the organisation in order to prevent breaches in the future.”

Interested?

Explore the Data Genomics Index

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*This research was conducted by Wakefield Research on behalf of Veritas Technologies across 13 countries and more than 10,000 office professionals and ITDMs.

The Veritas Data Genomics Index is the first data benchmark that accurately details real environments – from the file type composition and average age distribution, to the size proportions of their individual files. Veritas analysed tens of billions of files and their
attributes from many of its customers’ unstructured data environments in 2015 to get a better understanding of what their environments really consisted of. Over 8,000 of the most popular file type extensions were considered in the analysis. Generally, this data is a representative subset of the entire file system environment of a respective customer.

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A third of consumers in Singapore have seen card fraud in the past five years: ACI Worldwide

Source: ACI Worldwide infographic. Nearly a third of consumers have experienced card fraud in the past five years.

Thirty-six percent of consumers in Singapore have experienced card fraud in the past five years, according to new global benchmark data* from ACI Worldwide and Aite Group. Singapore has the sixth highest rate of card fraud globally, and the third highest in Asia Pacific, according to new ACI Worldwide Global Consumer Fraud Survey.

ACI Worldwide powers electronic payments for more than 5,100 organisations around the world. Its global fraud study of more than 6,000 consumers across 20 countries revealed that, compared to ACI’s 2014 benchmark study, card fraud rates —unauthorised activity on three types of payment cards (debit, credit and prepaid)— has risen 8% in Singapore.

Fourteen out of the 17 countries surveyed both years reported an increase in card fraud between 2014 and 2016. Risky behaviours, such as leaving a smartphone unlocked when not in use, have a direct correlation to fraud—and the overall risk for fraud is rising due to the global increase in smartphone and tablet usage.

In the Asia-Pacific, Australia, India and Singapore experience the most card fraud:

· In 2016, Australia leads the way at 40%, followed by India at 37% and Singapore at 36%.

· Consumers in Thailand, India and Indonesia exhibit the riskiest behaviours among countries in the Asia-Pacific, compared to their counterparts in Australia, New Zealand and Singapore:

• Over a third (36%) in Thailand, 34% in India and 31% in Indonesia left smartphones unlocked when not in use.
• Four in 10 (43%) in Thailand, 30% in India and 29% in Indonesia banked or shopped online on computers without security software or on public computers.
• A quarter in Thailand, 20% in India and 19% in Indonesia responded to emails or calls asking for bank details.
• One in five (21%) in Indonesia and 19% in India and Thailand respectively kept a PIN with the card.

· The lower percentages of risky behaviour among consumers in Australia and New Zealand more closely resemble consumers in the Americas and EMEA.

“Card fraud rates are on the rise in the majority of countries included in the survey,” said Ben Knieff, Senior Research Analyst, Aite Group. “The data shows that consumer education and customer service remain a challenge for financial institutions globally, as risky behaviour has a direct correlation to experiencing fraud.”

With 2,260 confirmed data breaches in 2015 alone, security remains top-of-mind within the financial services industry and among consumers. Despite the adoption of fraud analytics solutions by financial institutions and merchants—along with EMV in most countries — card fraud rates are on the rise in many parts of the world.

“This study confirms that card fraud remains an issue of deep concern for consumers around the globe,” said Andreas Suma, VP and Global Lead, fraud and data, ACI Worldwide. “It’s no surprise that there is a direct correlation between fraud and lower consumer trust and card loyalty, including a primary contributor toward ‘back of wallet’ behavior. And as this data illustrates, it’s more critical than ever for financial institutions to implement and actively maintain effective fraud prevention solutions that address fraud, security and customer experience needs.”

“In the Asia-Pacific region, there is a clear correlation between risky behavior and fraud incidents,” said Giselle Lindley, Senior Fraud Consultant, ACI Worldwide. “This reveals an opportunity for consumer education focused on how consumer behavior affects the potential for fraud to occur. This will not only help reduce the incidents of fraud, but also empower consumers to gain confidence in their ability to protect themselves from fraud.”

Consumer trust is improving, but loyalty continues to lag

· Four in 10 consumers globally who received replacement cards as a result of a data breach or fraudulent activity use their replacement card less than they used their original card, resulting in lost interchange and interest revenue from decreased usage. This ‘back of wallet’ behaviour is especially prevalent in Asia-Pacific countries: 69% of consumers in Indonesia opt to use cash or an alternative payment method over credit or debit card following the card fraud incident

· Consumers in Singapore and Thailand (13% each) express the highest lack of confidence in financial institutions’ abilities to prevent fraud, compared to other Asia-Pacific countries.

· Consumers in the Asia-Pacific, especially those in Singapore, are most concerned about identify theft, data breaches resulting in compromised account numbers and online banking fraud.

· About half (48%) respectively in Thailand and India, and 44% in Indonesia switch financial institutions after a fraud experience. These high rates of customer attrition are costly to financial institutions

· Surprisingly, countries with higher fraud rates and lower levels of customer aftercare do not show high rates of moving cards to back of wallet. Seven in 10 (69%) in Indonesia, 58% in India and 56% in Thailand choose to use cash or alternative payment methods following card fraud only in some situations.

Interested?

A detailed analysis of the 2016 Global Consumer Fraud Report will be presented via webinar at 9am and 10pm July 27 Singapore time. Register for one of the webinars or to receive a complimentary copy of the two-part report.

*ACI Worldwide conducted online quantitative market research in Q216 and surveyed 6,159 consumers. The study was conducted in 20 countries in the following regions:

· The Americas (North and South America): Brazil, Canada, Mexico, and the US
· EMEA (Europe, the Middle East, and Africa): France, Germany, Italy, the Netherlands, South Africa, Sweden, the UAE, and the UK
· The Asia-Pacific: Australia, India, Indonesia, New Zealand, Thailand and Singapore.

Singapore still popular as a regional hub, fourth-most expensive city globally

• Hong Kong is the most expensive city globally, with four other Asian cities in the global top 10 
• With a weaker RMB, all Chinese cities surveyed dropped in the rankings – Shanghai (7) and Beijing (10) 
• Singapore remains in fourth place, followed by Tokyo, which climbed from 11 to fifth 

Mercer Cost of Living Survey – Worldwide Rankings 2016 (The Mercer international basket, including rental accommodation costs)
Rank as of March		City	Country
2015	2016
2	1	HONG KONG	Hong Kong
1	2	LUANDA	Angola
3	3	ZURICH	Switzerland
4	4	SINGAPORE	Singapore
11	5	TOKYO	Japan
13	6	KINSHASA	Dem. Rep. of the Congo
6	7	SHANGHAI	China
5	8	GENEVA	Switzerland
10	9	NDJAMENA	Chad
7	10	BEIJING	China

Mercer’s 22nd annual Cost of Living Survey* finds that factors including currency fluctuations, cost inflation for goods and services, and instability of accommodation prices, contribute to the cost of expatriate packages for employees on international assignments.

“Despite technology advances and the rise of a globally-connected workforce, deploying expatriate employees remains an increasingly important aspect of a competitive multinational company’s business strategy,” said Ilya Bonic, Senior Partner and President of Mercer’s Talent business. “However, with volatile markets and stunted economic growth in many parts of the world, a keen eye on cost efficiency is essential, including a focus on expatriate remuneration packages. As organisations’ appetite to rapidly grow and scale globally continues, it is necessary to have accurate and transparent data to compensate fairly for all types of assignments, including short-term and local plus status.”

According to Mercer’s 2016 Cost of Living Survey, Hong Kong tops the list of most expensive cities for expatriates, pushing Luanda, Angola to second position. Zurich in Switzerland and Singapore remain in third and fourth positions, respectively, whereas Tokyo, Japan is fifth, up six places from last year. Other Asian cities appearing in the top 10 of Mercer’s costliest cities for expatriates are Shanghai (7) and Beijing (10).

Mercer's survey is one of the world’s most comprehensive, and is designed to help multinational companies and governments determine compensation strategies for their expatriate employees. New York City is used as the base city for all comparisons and currency movements are measured against the US dollar. The survey includes over 375 cities throughout the world; this year’s ranking includes 209 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.

“Maximising return on investment with fewer resources and talent shortages worldwide makes growth initiatives more difficult for multinationals,” said Bonic. “Organisations must ensure they can facilitate the moves they need to drive business results by offering fair and competitive compensation packages.”

Bonic added that costs of goods and services shift with inflation and currency volatility making overseas assignment costs sometimes greater and sometimes smaller. Low levels of inflation have translated into fairly steady cost increases around the world.

Asia Pacific

This year, Hong Kong (1) emerged as the most expensive city for expatriates both in Asia and globally, as a consequence of Luanda’s drop in the ranking due to the weakening of its local currency. Singapore (4) remained steady, while Tokyo (5) climbed six places. Shanghai (7) and Beijing (10) follow. Shenzhen, China (12) is up two places, while Seoul, Korea (15) and Guangzhou, China (18) dropped seven and three spots, respectively.

Mario Ferraro, Global Mobility Leader for Asia, Middle East and Africa (AMEA) at Mercer, said, “Many Asian cities remain amongst the world’s most expensive places to deploy expatriates. However, this has not hindered companies from relocating talent here, as the region continues to offer growth potential and the demand for top talent remains high. With the ASEAN Economic Community (AEC) becoming official on January 1 this year, the region represents a US$2.6 trillion market and this continues to attract companies to Southeast Asia. Companies tend to choose Singapore as the regional hub for this huge collective market, because of its talent pool and established infrastructure.”

“The strengthening of the Japanese yen pushed Japanese cities up in the ranking,” said Nathalie Constantin-Métral, Principal at Mercer with responsibility for compiling the survey ranking. “However, Chinese cities fell in the ranking due to the weakening of the Chinese yuan against the US dollar.”

Mumbai (82) is India’s most expensive city, followed by New Delhi (130) and Chennai (158). Kolkata (194) and Bangalore (180) are the least expensive Indian cities ranked. Elsewhere in Asia, Bangkok, Thailand (74), Kuala Lumpur, Malaysia (151) and Hanoi, Vietnam (106) plummeted twenty-nine, thirty-eight, and twenty places, respectively. Baku, Azerbaijan (172) had the most drastic fall in the ranking, plummeting more than one hundred places. The city of Ashkhabad in Turkmenistan climbed sixty-one spots to rank 66 globally.

Australian cities have witnessed some of the most dramatic falls in the ranking this year as the local currency has depreciated against the US dollar. Brisbane (96) and Canberra (98) dropped thirty and thirty-three spots, respectively, while Sydney (42), Australia’s most expensive ranked city for expatriates, experienced a relatively moderate drop of eleven places. Melbourne fell twenty-four spots to rank 71.

The Middle East

For the Middle East, Dubai, UAE was ranked 21st, while Abu Dhabi, UAE (25), and Beirut, Lebanon (50) were also in the top 50. Jeddah, KSA (121) remains the least expensive city in the region despite rising thirty places. “Several cities in the Middle East experienced a jump in the ranking, as they are being pushed up by other locations’ decline, as well as the strong increase for expatriate rental accommodation costs, particularly in Abu Dhabi and Jeddah,” said Constantin-Métral.

Interested?

Mercer produces individual cost of living and rental accommodation cost reports for each city surveyed. Get more information on city rankings. 

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*The figures for Mercer’s cost of living and rental accommodation costs comparisons are derived from a survey conducted in March 2016. Exchange rates from that time and Mercer’s international basket of goods and services from its Cost of Living survey have been used as base measurements.

Investors more confident about FDI placement in Singapore

Singapore is in the top-ten list in the 2016 AT Kearney Foreign Direct Investment (FDI) Confidence Index*. The city-state jumped five places – the biggest rise in rankings - to take the 10th spot in this year’s index.

The index is a forward-looking analysis of how political, economic, by  regulatory changes will likely affect FDI inflows into countries in the coming years. Since its inception in 1998, the study has reliably pointed toward firms’ top choices globally for FDI, with the countries ranked in the index tracking closely with the destinations for actual global FDI inflows.

The index is constructed using primary data from a proprietary survey administered to senior executives of the world’s leading corporations. In this year’s survey, 31% of the respondents said they were more optimistic about Singapore’s economic outlook over the next three years, compared to a year ago.

“Singapore has established itself as a regional financial hub. Its robust economy, stable political environment, corruption free establishment and an educated talent pool have made it an attractive destination for global firms,” said Soon Ghee Chua, Partner and Head of Southeast Asia at global management consulting firm AT Kearney.

“Singapore is consistently ranked as one of the easiest places to do business. That has seen major global companies set up their regional headquarters here. Singapore is also a member of the Association of Southeast Asian Nations (ASEAN) further adding to its lure for companies looking to tap into the 10-nation economic bloc’s growth potential. All of this has contributed to the growth in FDI into the country.”

The results of the index also show that domestic market size, cost of labour, regulatory transparency and lack of corruption are among the top factors that executives look at when making decisions about investing in a country.

Overall, five Asian countries feature in the top-ten rankings in this year’s index, highlighting the confidence global business leaders have in the region:

• China: Ranked second for the fourth year in a row.
• Japan: Continues to rise in the rankings, up one spot this year to 6th place.
• Australia: Jumped three spots to take 7th place.
• India: Jumped two places to re-enter the top 10 at the 9th spot.

The US tops the FDI Confidence Index, holding its first-place position for the fourth year in a row. Global business executives are also more bullish on the US economic outlook than for any other economy. China claimed second place, also for the fourth consecutive year. However, investor expectations about the Chinese economy turned more negative this year, and executives say they will reduce their FDI in China if market volatility persists.

“The US and China have held steady at the top of the index in the face of significant changes in the global operating environment over the past four years,” said Paul Laudicina, founder of the FDI Confidence Index and chairman of AT Kearney’s Global Business Policy Council.

“Executives’ sustained interest in investing in the US and China demonstrates the undeniable and enduring attractiveness of the two largest economies in the world. Over the 18 years of this assessment we have observed consistent investor preference for large markets with robust economic prospects.”

Global executives are increasingly turning to FDI to ignite growth opportunities, despite the overall trend of slowing globalisation. Global FDI flows jumped 36% to an estimated US$1.7 trillion in 2015 - the highest level since 2007 - and the vast majority of executives also believe that FDI will become more important for corporate profitability and competitiveness in the near term. Accordingly, more than 70% of firms in the survey plan to increase their level of FDI over the next three years. A likely reason for this is the rise of protectionist sentiments in many countries - creating greater need for a local presence to do business in those markets.

Interested?

Read past editions of the FDICI

*The 2016 AT Kearney Foreign Direct Investment (FDI) Confidence Index is constructed using primary data from a proprietary survey administered to senior executives of the world’s leading corporations. The survey was conducted in January 2016.

Respondents include C-level executives and regional and business leads. All companies participating in the survey have annual revenues of US$500 million or more. The participating companies are headquartered in 27 different countries and span all sectors. The selection of countries from which to survey senior executives is based on data from the United Nations Conference on Trade and Development (UNCTAD), with the 27 countries represented in the FDI Confidence Index accounting for more than 90% of the source of global FDI flows in recent years. Service-sector firms account for 45% of respondents, while industrial firms account for about 35% and IT firms account for about 15%.

The index is calculated as a weighted average of the number of high, medium, and low responses to the questions on the likelihood of making a direct investment in a market over the next three years. Index values are based on responses only from companies headquartered in foreign markets. For example, the index value for the US was calculated without responses from US-headquartered investors. Higher Index values indicate more attractive investment targets.

FDI flow figures are the latest statistics available from the UNCTAD, and all 2015 figures are estimates. Other secondary sources include investment promotion agencies, central banks, ministries of finance and trade, and other major data sources.

Dissecting Chinese luxury traveller behaviour

Source: Marriott International. Peggy Fang Roe, Chief Sales and Marketing Officer, Asia Pacific, Marriott International (left) and Rupert Hoogewerf, Chairman and Chief Researcher, Hurun Report (right).

• China’s young luxury travellers go abroad every three to four months, mainly for leisure
• They spend RMB420,000 (US$65,000) on tourism per year and RMB220,000 (US$34,000) on shopping while travelling
• They demand personalised luxury experiences, Wi-Fi, and next-generation guest services on smart devices as standard
• Japan is the top destination for shopping, France is the most popular destination in Europe and Australia is the top destination for leisure

Marriott International and the Hurun Research Institute have shared the first Chinese Luxury Traveler 2016 study, marking the first-of-its-kind collaboration between an international hotel company and an authority on Chinese luxury travel.

The report’s key findings reveal a shift in travel habits among travellers aged 18 to 36. The research shows that they want a more personalised luxury experience and added value throughout the entire hospitality ecosystem – from planning a trip, to requesting guest services, to selecting which loyalty programme to join.

The report reaffirms that when it comes to services and information, China’s young luxury travellers prefer to do it digitally. Interactive guest services on smart devices are far more popular than traditional guest services, and travellers also expect this smart technology to record and manage their personal preferences.

China’s young luxury travellers also conduct their research on digital platforms. WeChat emerged as their primary source of travel information, obtained from official WeChat accounts and the accounts of friends and professional travel advisors. Third-party apps are also important information channels.

China’s young luxury travellers are seeking a wider choice of unique and novel travel experiences. They are interested in adventure travel, polar exploration and road trips take them further afield to a wider range of destinations around the globe. With greater opportunities at their fingertips, this group of young luxury travellers feel underwhelmed by loyalty programmes.

“This is a key focus area for Marriott,” said Peggy Fang Roe, Chief Sales and Marketing Officer, Asia Pacific at Marriott International, which in the first quarter of 2016 saw a 7% increase in domestic travelers in China and a 25% increase in Chinese outbound travelers.

Fang Roe continued, “We are responding to the desire for personalised luxury and services by evolving our loyalty programme Marriott Rewards, which goes far beyond hotel-level perks. Elite Member benefits now include tailored VIP access to rewarding experiences such as culinary demonstrations, concerts and catwalks, the NBA Global Games in China, and lots more. We are also piloting a new hospitality programme called Li Yu (礼遇) which is tailored specifically for our Chinese guests, with Mandarin-speaking personalised assistance and service across our hotels to make them feel at home, wherever they go.”

Rupert Hoogewerf, Hurun Report Chairman and Chief Researcher, said, “Despite the economy slowing, the impact on outbound travel from high net worth individuals seems to have steadily grown. The young luxury travellers have developed significant spending firepower, minted on the back of the recent boom in Chinese entrepreneurship, together with a growing class of second generation ‘rich kids’.”

Key findings from the research:

Experienced travellers with high spending power

This year’s report focuses on young, luxury travellers born after 1980. Relatively wealthy, these Generation Y travellers spend an average of RMB420,000 (US$65,000) on tourism per household, per year, and an average of RMB220,000 (US$34,000) on tourist souvenirs, primarily clothing, bags, watches and jewellery. Their average hotel budget is RMB3,100 (US$500) per night. Experienced travellers, they have been to an average of 13 countries and have been abroad 3.3 times in the past year for approximately 25 days, 69% of which was leisure travel.

Popular destinations

Europe is the destination of choice for young luxury Chinese travellers, with 61% of respondents visiting that region in the past year and 65% planning to visit in the next three years. Japan was the most memorable destination for Generation Y luxury travellers in 2015 and their most visited destination over Chinese New Year 2016. Travel to Japan was strong last year due to its close proximity to China, coupled with convenient shopping, attractive dining experiences, and a modern, sophisticated culture.

Shopping and food in Japan are popular with young luxury travellers while the US is seen as an important destination for business travel. France is the most popular destination in Europe and known as a shopping paradise. Australia is the top leisure destination, while the UK is the top destination for visiting friends and family.

Travel time: flexible, family-oriented

More than half (55%) of young luxury travellers said that in the next year, they are most likely to travel whenever it fits their schedule. National Day Golden Week (黄金周) in October was the second most popular period, with 36% of respondents claiming this as their preferred travel period. It is interesting to note that most Generation Y luxury travellers have either very young children or no children at all, and that only 20% are interested in travelling over the summer (Q2 to Q3). Family travel peaked during Chinese New Year (which falls anywhere in between January or February depending on the year), with 56% of young luxury travellers going abroad last year over this period. Almost all (90%) travelled with family or friends, in a party of four people on average, and stayed abroad for 8.5 days.

Diverse reasons to travel

Compared to 2015, young luxury travellers are expected to seek more diverse travel experiences in the next three years. Leisure and vacation are still the most popular reasons to travel, but young travellers also cite new and more challenging reasons to go abroad. Global travel, adventure travel, polar exploration and road trips have captured their imaginations, and each category is expected to rise by 25%, 52%, 38% and 75% respectively over the next three years.

Choice of accommodation

Although 41% of general travellers say that room cleanliness is their top concern when choosing a hotel, 42% of young luxury travellers with a household net worth over RMB100 million cite personalised service as their most important consideration. Luxury amenities are also important, including new facilities and cozy lighting. They seek a tailored guest experience, including a selection of pillows, and personalised service through a butler or interactive digital channels. They favour hotels that provide high-tech digital equipment, like Wi-Fi (73%) and Smart TVs (55%), which offer a more enjoyable stay as well as bespoke, convenient service. They prefer brands and hotels with unique art and design that make the travel experience feel unique and fun.

Loyalty and travel programmes

In terms of frequent flier programmes, Air China is the clear winner (51%), followed by China Southern Airlines and China Eastern Airlines. For international travel, Lufthansa is the top choice due to a diverse selection of European routes and convenient transit (19%). In general, awareness of hotel loyalty programmes is low among young luxury travellers, who say that many membership programmes don’t offer unique or high value benefits.

Information channels

Young luxury travellers receive information primarily through official WeChat subscription accounts (48%), WeChat Moments shares from friends (47%), and websites (42%). Male travellers tend to obtain information from websites while female travellers prefer WeChat shares and friends’ recommendations. Third-party apps are also important information channels, with C-Trip, Qunar, and Tuniu being the most popular platforms.

Interested?

Read the report in English or in Chinese

Compare against 2015 Chinese luxury travel trends