The year 2024 has brought new challenges and opportunities for the Kingdom’s luxury tourism sector. This segment of the industry, according to business insiders, is witnessing a tremendous transformation in the country with a greater number of travellers preferring it along with sustainable tourism. Over the years, Cambodia has also seen a rise in the number of such properties across the country. Online reviews, social media visibility and online booking channels are crucial for attracting guests to these properties. Khmer Times takes a look into the emerging scenario as well as the challenges and possibilities for this important segment of the country’s tourism landscape.
The luxury tourism industry in Cambodia is witnessing significant changes in 2024, as businesses within the sector adapt to new market conditions and challenges, such as a rise in the importance of digital technologies as well as associated cybersecurity risks, and shifts in demand for more sustainable and environmentally friendly tourism practices.
However, some of these challenges also offer considerable opportunities for businesses within the industry to improve and raise awareness of Cambodia as a unique and vibrant global travel destination.
Khmer Times caught up with hotel owners and managers from across the Cambodian luxury tourism industry, to get their take on key trends influencing the sector this year.
Speaking with Khmer Times last week, Alexandre Rebibo, owner and operator of two resorts on Koh Rong, Anaya and Tamu Koh Rong, said that his business has witnessed a significant increase in cybersecurity threats this year compared to previous years, particularly with phishing attempts disguised as emails from guests or online travel agencies (OTAs).
“Additionally, fake bookings have posed operational challenges, leading us to implement new security processes,” he added.
While these processes have helped reduce the risks for his businesses, he said cybersecurity remains a significant challenge in maintaining secure operations in a digital age.
Alexander Scheible, General Manager of the Plantation Urban Resort and Spa located in central Phnom Penh, agreed that cyber security is becoming a more significant issue for the global hotel industry, as well as his own hotel’s operations in Cambodia.
Speaking with Khmer Times last week, Scheible said that, “As hotels, we handle a large volume of sensitive guest information daily, including personal details and, most importantly, payment data and credit card information, often collected through online channels.”
This makes hotel businesses particularly vulnerable and prime targets for cybercriminals, he said.
Standalone hotels, in particular, often lack the resources to invest in robust cybersecurity measures, even though they face near-daily threats in the form of viruses, trojans, and other cyberattacks, added Scheible.
Meanwhile, increasingly recognizing scammers is an ongoing challenge for hotel staff, who may not have had experience with more intricate online scams appearing this year and recent periods.
“Scammers are constantly evolving their tactics, making it difficult for hotel staff to recognize and address these threats,” Scheible said, adding that his business receives suspicious emails almost daily, meaning his management must stay ahead of increasingly sophisticated scams.
Since cybersecurity is not typically part of hotel management expertise, there now clearly exists a need to train staff to recognize threats promptly, said Scheible.
Even when working with major online travel agencies (OTAs), security threats persist via their platforms, with little to no support from these dominant players who control much of the online market share, he said.
Cybersecurity concerns regarding credit cards can also be particularly hard to solve in markets such as Cambodia, added Scheible.
Adding to other cybersecurity issues, in cases of credit card disputes, hotels in Cambodia, as merchants, have very limited recourse when filing claims through credit card institutions, making it difficult to recover lost revenue, he explained.
The challenges posed by the Cambodian banking system in an international context complicate matters further, he added.
Nonetheless, despite the risks, commentators agree that online channels are also increasingly critical to the hotel industry’s ability to attract customers in 2024, and is a trend only set to continue in coming years.
Hence, whether or not cyber risks are increasing, few businesses could survive without leveraging digital technologies.
As Rebibo stated, “A robust online presence is critical in 2024.”
While challenging, digital engagement is essential for hoteliers operations and growth, he said.
From reservations to marketing, a strong online presence is crucial in this day in age, he added.
Meanwhile, guests often book their stays, communicate with the hotel staff, and share feedback digitally, thus being accessible and responsive online is indispensable for a hotel’s reputation and business continuity, concluded Rebibo.
When asked whether a hotel can survive in today’s market without a strong online presence, Scheible replied that in his experience, digital technologies are absolutely essential for hoteliers in 2024.
“I do not believe any hotel (except maybe very few niche market products) can survive without a strong online presence,” he said.
Generation Y and Z are the primary travelers today, added Scheible, and they gather information online and base their decision-making processes on what they find.
This new digital-savvy generation expects seamless communication through various chat options, instant confirmations, and a smooth online booking experience, which often extends to mobile check-ins and on-location mobile services, he detailed.
That said, however, Scheible contended that technology should not replace personal and friendly service, especially in Cambodia where travelers expect a warm welcome and personalized hospitality.
“Rather, it should be seen as an opportunity to enhance the guest experience,” he said.
Utilizing data effectively also enables more personalized service, ensuring that guests feel valued and catered-to during their stay, he added.
He said that as Cambodia is renowned for its warm hospitality, this must continue to be a fundamental part of the guest experience.
Therefore, technology and personal service should complement each other, ensuring that hoteliers preserve one of Cambodia’s most charming attributes.
Online reviews, social media visibility, and online booking channels however are also crucial for attracting guests these days, noted Scheible.
He said that even smaller boutique hotels or resorts need to invest in digital marketing, social media engagement, and online booking systems in order to reach global markets effectively.
“Yet, for small hotels not affiliated with a global chain, it may not be worthwhile to invest heavily in direct bookings as very high costs are involved to do so,” he added.
This is due to the need for such operators to compete with well-established international chains for online visibility.
Instead, he recommended, smaller scale hoteliers should leverage the opportunities presented by third-party platforms, and focus on making the most efficient and profitable use of these resources.
AI to revolutionise tourism
Meanwhile, according to Scheible, advances in artificial intelligence (AI) are beginning to benefit the hotel industry already, and may be a technological trend influencing the industry more so in coming years.
“On the operational side, AI is already integrated into hotel operations, and we can expect many new developments in the near future in this area,” he contended.
AI is not only used for communications, he explained, but also forecasting, yield management, and revenue management.
Alongside digital tools, traveler’s behavior is also changing somewhat this year, said Scheible.
He said that following the covid-19 pandemic period, the trend of short-notice bookings has continued throughout this year, with more individual travelers opting to explore the country independently rather than in groups.
“Many travelers now prefer to make arrangements by themselves, either online ahead of time or upon arrival,” he explained.
They are also more cost-conscious and increasingly rely on online research to plan their activities, he said.
This behavior shift requires hoteliers and tourism operators to be flexible, and responsive to last-minute bookings and requests.
“Initially, offering basic, and more affordable options without extras is key to generating interest and staying competitive,” he explained, while the focus of the hotel operators can then shift to upselling additional services or experiences to guests once they arrive at the hotel.
In the future, Scheible wants to see visitors to Cambodia stay longer, engage in a wider variety of activities beyond just visiting the temples, and explore other provinces and attractions, recognizing Cambodia as a standalone destination.
Rebibo, who owns and operates two resorts on Koh Rong Island, said that improving the sustainability of his hotel remains a top priority this year, and a welcome trend for incoming travelers.
He added that sustainability is particularly important for businesses like his located on an island, where waste management and reducing plastic use are essential to preserve the serenity and beauty of the surrounding area.
“We’ve adopted measures like providing refillable water bottles to guests and educating them on the impact of single-use plastics,” he said.
Meanwhile, to engage his guests in the preservation of the surrounding area, his hotels also host weekly beach clean-ups, which, he said, have become a popular and rewarding activity.
Training on eco-practices
“Additionally, our staff receive continuous training on eco-friendly practices, from waste segregation to energy conservation, ensuring our operations remain sustainable while supporting the local community,” he added.
Rebibo said that because luxury travelers are drawn to Koh Rong island for its natural, unspoiled appeal, environmental sustainability is actually crucial to his hotel’s offerings.
“Our guests seek a retreat from their urban lives, favoring a quiet, authentic experience over something overtly luxurious or extravagant,” he said.
Guests also frequently mention wanting to disconnect and rejuvenate, choosing Koh Rong as a space to relax, hike, and experience the local island culture, he added.
As a result of this, his hotel’s offerings are more aligned with eco-friendly activities and experiences that highlight the environment without disturbing it, such as guided nature walks and local experiences.
However, Scheible, who manages a resort in downtown Phnom Penh, contended that while the demand for sustainable options by global travel consumers is growing, pre-covid the overall awareness and commitment to protecting the environment was stronger and more deeply ingrained among consumers.
“For example, while plastic-free initiatives were widely endorsed in previous periods, it seems that plastic has become normalized again since the pandemic, and we’ve accepted it – with exceptions of course,” he said.
It’s also important to note that awareness of sustainability and environmental concerns also varies by nationality, added Scheible.
He said that while European travelers consistently expect to see sustainable practices during their hotel stays, demand from the US and Australia guests is less pronounced.
For some Asian travelers, there is very little emphasis on sustainability at all, he added.
“So, in summary, yes, the demand for sustainable practices is becoming more important to travelers, but we want it to become even more so,” he said.
Practices such as recycling and plastic free cleaning services have been implemented in Scheible’s hotel operations to increase the businesses environmental sustainability, as well as supporting only “Made in Cambodia” products and artwork in the hotel’s gift shop and art gallery.
Sustainability presents a great opportunity for Cambodian-based hoteliers to take the lead, he said, showcasing its capabilities to the world, and enhancing its image as a travel destination.
However, there is still a long road ahead for this to become the norm across the industry, he said.
Meanwhile, “one must be cautious and not naive,” he added, noting that “there is still a lot of greenwashing taking place in the tourism industry.”