HI+

Between capital and human capital

27.1.2022

Dear Insiders,

A few days ago, the Prime Minister of Spain, Pédro Sánchéz, described Madrid’s FITUR as the "most important tourism fair in the world" - ahead of the ITB. Their success in the transition from corona year 2 to corona year 3 gives the long-suffering Spaniards, who are now breathing a sigh of relief, a fresh boost. In Berlin, the ITB has now been cancelled for the third times.

This is a mistake, believes Christian Andresen, President of Dehoga Berlin and a hotelier himself. In our interview with Sylvie Konzack, he calls on the city of Berlin and the trade fair to make a completely fresh start. The particular model Berlin used for the trade show up to now is no longer fit for purpose. The Spanish have long since recognised this: Time for new times, they say to themselves, and create new facts.

I think it's outstanding that Andresen is openly fighting against the slow, reticent and sometimes cowardly nature of German civil servants in the capital. His word carries weight in Berlin and he has already sensitised Berlin’s state government to the needs of the MICE industry. Berlin will have to set an example! Otherwise, even the last of the mega congresses will soon be gone. Since the start of the pandemic, the trade fair/MICE disaster in Germany has resulted in a loss of some €46.2 billion.

Choice Hotels also wants to set a new focus and get the EMEA region afloat from Amsterdam. Yet this one wasn't that slow. EMEA CEO Jonathan Mills has meanwhile put together a 50(!)-strong team that is truly pan-European, and now wants to steadily push the four main brands in Europe more strongly, to talk more to franchisees, and bring more first-class tech tools from the USA across the Atlantic to Europe. Sarah Douag tried to get details out of him.

Both the EU and the UNWTO express optimism, but the figures still betray the truth: The lean period is still long. 4% more tourism in 2021 is de facto only 15 million more travellers. Every country is missing international travellers. Overnight stays are still 72% below what they were in 2019. Facts and figures that show the way.

The investors and real estate traders are the ones who still believe in the future. L+R of London is in the process of setting up a €1 billion fund for European hotels. It is understandable that they want to use the crisis to do good business. L+R chief Desmond Taljaard wants only "added value" returns.

Oyo, on the other hand, wants everything. Through the pandemic, the already opaque company laid off 20,000 of its 30,000 global employees, has problems everywhere, but is still looking forward to its upcoming IPO, which is expected to value Oyo at $12 billion. Can someone please put me in touch with a psychologist who understands how analyst and VC minds work?

The biggest problem in the industry will not be finances, but human resources. Technology is supposed to help here, as we know. For example, "Automated Personalisation”. But a red-hot study says: More than 80% of chains are overwhelmed with this technology. Why? Even for this, there is a lack of qualified personnel.

The classic hotel industry, and with it the destinations, are struggling for every step to make tourism attractive again - for employees as well as residents and the tourists. Barcelona is now approaching this goal with modified criteria in the new city plan. The hoteliers are probably swallowing, but they are going along with it.

As usual, we say goodbye with interesting personalia and a wealth of market news, in which the next hotel closures stand out. But corona is not to blame for everything.

Till next Friday!

Yours, Maria Pütz-Willems
editor-in-chief

Your opinion? maria[at]hospitalityInside.com

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