Editorial
Dear Insiders,
There is great confusion in the world of tourism: Sweden is opening up again, Luxembourg is closing its borders again, and Mallorca is closing a party zone. You can travel to Island without a test now, and Latvia registers every visitor. Who can keep up with this? Travellers must be getting even more confused. From an inside perspective, this smells much more like ruthless egoism and jealousy, if borders get opened or closed and tourism-dependent countries warn against staying in neighbouring countries ...
Restricting hotspots is fine, but creating such chaos across Europe under the guise of the corona-infected confuses people even more. No wonder that they are dispensing with their mouth and nose protection, ignoring bathing bans andfrequenting beach bars when they are "finally on holiday".
In other words: Politics is going too far out of overburden. Maybe this is the reason why it no longer wants to get involved in the hotel industry. This is why Dirk Iserlohe, Chairman of Honestis AG, parent company of Dorint Hotels, lists the mistakes politics is making, arguing with hard facts, particularly against the critical paragraph on "disruption of purpose", and making new proposals to politicians. As a trained banker, he knows the pitfalls of financing and continues to fight, not only for Dorint. His findings: "Bridging loans are the 'Trojan horse' of insolvency" and "The state's intervention was only palliative for our industry". By the way, one Dorint hotel is owned by the Free State of Bavaria that is turning its back on it.
For Italy, the truth is currently even harder than expected: Today, it is already clear that the hotel sector will lose 16.3 billion euros of turnover this year. This means that the season is virtually over. Our Italian correspondent Massimiliano provides an update. By the way, until yesterday evening, it was not clear how long the emergency state will be extended.
Meanwhile, the open hotels in Germany continue to work with tiny steps, massive power and lots of creativity to achieve meagre occupancy rates – but there is no sign of any cost recovery yet. Read how Success Hotel Group, SV Hotel, Bierwirth & Kluth, Deutsche Hospitality, H Hotels, Motel One and Vienna House have experienced the re-start so far.
The new Serviced Apartment Report is available including the latest corona figures. The previous year's "Rising Star" is losing momentum, but performed better than the classic hotel industry during the corona months – even though occupancy dropped from 90 to 70 and later down to 40%.
Real estate brokers provide additional analyses on the 2nd quarter of 2020. Deutsche Hospitality introduces its initial – already coordinated with Huazhu – loyalty programme. Caravanning is booming even stronger than expected.
And Expo Real is waiting to see what will happen. It announced further details on entry fees, conferences and the exhibition booths this week. We, the organisers of the "World of Hospitality", would at least like to try flying the flag for and with the industry. Talk to us! You can find more on page 1 and inside the magazine as well as lots of additional content in this well-filled issue.
See you next Friday!
Yours, Maria Pütz-Willems
Editor-in-chief
Ihre Meinung? maria[at]hospitalityInside.com
Dear Insiders,
It's still the small hotels and rather unknown names about whose insolvency you can read in the daily newsletters. Yet, it's only a matter of time for the rest. The leisure business is "okay", but beds are still available. And what happens from September? Event and business bookings are quite simply not coming in. Trade fairs are once again permitted almost everywhere – as in Cologne, for example, yet the first ones scheduled to take place are being cancelled anyway. Quite simply, not enough exhibitors are registering. The industry finds itself on an emotional rollercoaster: Joy over the summer is immediately clouded by forecasts for the autumn, fear of unemployment, insolvency and a second wave of infection.
Sylvie Konzack has looked into this, while Susanne Stauss asked again six hotel groups to comment on the ever present issue of rent. The three-month protection period regarding termination for the tenants/leaseholders is over and will not be extended. H-Hotels, Deutsche Hospitality, Motel One, Vienna House, the SV Group and Bierwirth & Kluth report on their own hardships and solutions. Their appraisal of politicians and industry associations are not the best.
Fred Fettner spoke this week with the hotel association in Croatia about the coming summer season: Director Veljko Ostojić expects no mass tourism this year. But the planes heading south are only just beginning to take off again, and this year four times as many Croats go for staycation. At the same time, the number of infected people is rising sharply these days.
Kempinski is also struggling with problems, but they seem to be more home-made. CEO Martin Smura has now been in this position for one year already, together with his CFO colleague Michael Pracht. Yet Pracht has refused to extend his one-year contract, we have learned, due to differences of opinion with CEO Martin Smura. A company in the corona era with an interim CFO is not a stable set-up. Smura is making plans to bind the new expansion partner 12.18, respectively its capital provider Versorgungswerk der Zahnärztekammer, a pension fund for German dentists. Since the CEO has so far only announced individual projects but no notable strategy, I have been asking questions of trustworthy sources.
The German hotel investment market has suffered unprecedented losses due to corona, JLL Hotels & Hospitality Group reported this morning. It will be a modest year for transactions.
This and more interesting news in our edition today. Until next Friday!
Yours, Maria Pütz-Willems
Editor-in-chief
Ihre Meinung? maria[at]hospitalityInside.com
Dear Insiders,
In its brave but ultimately failed exceptionalist response to corona, Sweden has meanwhile cut itself off from the rest of the world. Travel warnings for Sweden are taking effect: The vast majority of foreign guests will stay away. The summer season is thus likely to be lost, only domestic tourism can help heal the wounds in 2020. Sylvie Konzack spoke with Scandic and Radisson, among others, as well as with the industry association Visita Sweden.
For tourism businesses everywhere, their primarily concern is limiting losses, not increasing sales. In Austria, professional voucher marketers are again increasingly shaping the discussion, and in May the ÖHV also launched its own website for vouchers with 1,000 participating hotels. On specific analysis though, even this model does not appear to be a resounding success, Fred Fettner reports.
In order to reduce costs, the first US chains are already planning or implementing the first large-scale redundancies, including at headquarters. How will the global players change as a result of this? Where can jobs be cut and where must they be saved? Thomas Mielke from the international HR consulting company Aethos explains in an interview with Susanne Stauss why a sensitive approach to employees and especially to those with "institutional knowledge" in the company requires particular tact these days.
Those who, in the boom years, rhetorically and euphorically described their employees as "talents", "ambassadors" or "associates" and now – in these economically challenging times – radically write them off as "human capital", will not find enough "human resources" in the market when they come to rehire as the economy recovers. After all, the industry will continue to earn money only through its services – and this will be all the more true after corona and with increasing digitalisation.
While half of the hotels in Vienna are still empty and there are clear signs of price dumping, Falkensteiner Hotels in Italy is pressing ahead with its expansion: Revenue targets are also ambitious. Meanwhile we have launched a small survey among 12 chains to find out how business is getting back up and running in different cities. The answer: cautiously. At the moment, leisure-focused hotels are leading the way, and this will remain so until the end of the holiday season in September.
This makes it all the more important, for the Swiss hotel industry for instance, that the state offers support, for example with short-time work schemes. But here too, everyone is still waiting for the urgently needed cash injections. This and more, including interesting personal details, in today's issue.
Ihre Maria Pütz-Willems
Chefredakteurin
Ihre Meinung? maria[at]hospitalityInside.com
Dear Insiders,
In order keep the situation in good view, we asked Martina Fidlschuster from Hotour Hotel Consulting to describe the current state of play for the German hotel industry. In a nutshell, in my words: Virtually no core issue has been resolved and bridging loans for medium-sized hotel groups is still outstanding. Parliament will retire for the summer recess at the end of next week. It will be the end of August before they're back. After that, the government money tap turns off, voices from Berlin tell me.
It's set to get pretty damn tight. In today's edition, the hotel consultant sets out the facts and figures for our readers making clear what will happen in the coming months: "Even if costs are reduced to the absolute minimum, many companies could become insolvent before demand and sales have risen to workable levels."
And so the industry is drifting towards insolvency, while the mood in Germany in general – also thanks to the holiday season – is becoming more relaxed and positive among end consumers and company managers in many other sectors. At the same time, popular federal states such as Bavaria are trying to remain virus-free: They are allowing guests from identified corona hotspots into the state only if they can show a negative Covid-19 test. Scientists warn: Such test results give a false sense of security!
Holidays at home remain popular, but for the future, travellers also want more flexible bookings. Because OTAs have been a particular annoyance for hoteliers through the corona crisis, Corsican hoteliers will take a break in August: Their hotels will then not be bookable on Booking.com.
HRS is now also – as announced briefly last week – officially introducing its own hygiene seal, as is the EHL in Lausanne – via its consulting channel.
Speaking of cash: Only a few countries have money left over for the implementation of sustainability strategies. The EU Green Deal is in jeopardy as politicians are now focused on saving human lives first and foremost. That you can do both is demonstrated today by Sarah Douag in her article: She looks at the range of responsibility from the EU, UNWTO, OECD to banks and tourism/hotel industry. Two very different managers explain why they see the corona crisis as an opportunity for sustainability: Peter Cole, CEO of Desgin Hotels, and Dimitris Manikis, EMEA President of Wyndham Hotels.
We ourselves have known since Tuesday: Our HITT was also a great success as the first digital conference, thanks to top content and dedicated, honest speakers who helped broaden horizons, even across industries. In our summary on page 1 you will find inspiring statements from our 3rd HITT.
But a THINK TANK can't be transferred 1:1 to an online format. What's missing is the personal interaction, the finer jokes, the beer together with the person opposite, the passionate discussion at the bar... In 2021 we will return to our ship to let the wind of digitalisation fill our sails again.
Yours, Maria Pütz-Willems
Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
Rent reduction or moratorium remains a difficult topic as two articles show today: David Etmenan, CEO Novum Hospitality, has found a solution with two thirds of his lessors, the rest shows little mercy. "But we need the collaboration with the lessors," he says – and created his own lease model for bridging purposes until the end of 2021. Apart from the short-time working benefit, Novum cannot expect any government assistance – as many other groups of this size – as the requirements do not fit. He still has high hopes in the association.
There is only little movement between open-ended real estate funds and hotel operators. The funds are obliged to their investors; therefore, they are unwilling or unable to negotiate with the operators. But what will they gain from an empty hotel in the end – at an economically good location? In the last few years, hotels have enriched funds immensely; now, they have become Cinderella for the lords of money. One thing is clear: the yields on funds will decrease further. Therefore, it would be advisable, to reach a settlement with the lessees. Only few funds managers are willing to talk.
Concerning hygiene, operators are in agreement. They are cooperating with hygiene experts and certifying, in order to convince travellers via a "Clean & Safe" label. Incidentally, nobody is talking about these costs. And the operators are not willing to charge extra for more hygiene. We have outlined for you, who is using which seal. By the way, these are not only hotels, OTAs and destinations are also participating – with their own labels, of course.
On Tuesday, Germany introduced the "Corona-Warn-App" – with an open outcome. After two months, the Austrians are already tired of their app. Instead, they are somewhat pleased that the value added tax has been reduced for gastronomy, introduced for a limited time only, and they are even more enthusiastic about a national survey, which shows clearly that an increasing number of fellow countrymen will remain in their country during their vacations!
Meanwhile, Mallorca fans know no risks. On Monday, the first of the 10,900 holidaymakers boarded the Lufthansa flights to Mallorca, with facemasks but ZERO distance – to start their corona test holidays. No middle seats were empty. This picture of symbolic importance with faces behind masks in the crowded Economy class will go down in history.
I repeat: It was a packed plane. How is that legal? The crane, which in no time at all has skimmed off 9 billion in state aid alone and now announces up to 22,000 instead of the original 8,000 redundancies as a thank-you, must - understandably - earn money.
But what about the hoteliers? Neither in Spain nor anywhere else are hotels and restaurants allowed to have full tables. Do we need to comment on this? Apparently, the hotels all pulled their face masks up over the eyes. However, we did not and we asked a German hotelier in Mallorca to tell us about his impressions since the start of the corona outbreak.
Next Wednesday, we – HospitalityInside – will already have the feedback on our Think Tank. Therefore, this is the last call for Tuesday's HITT 2020: "Boost your Service Delivery!" is our motto. The virtual service for the guest will increase future turnovers, even prior to their arrival. How does this work? Listen to great experts and progressively thinking insiders! You can still register last-minute, until Monday evening at www.hitt.world. And we would like to take this opportunity today to thank our five sponsors Sabre Hospitality Solutions, Accor, Langham Hospitality, Drees & Sommer and Expo Real. Four of them have placed their trust in us since the launch three years ago. More on our page 1.
Yours, Maria Pütz-Willems
Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
When it comes to their holiday decision, this year, twice as many Germans as last year are hesitant. The large core won't be held back though. "More than half of the population will still travel," Prof. Martin Lohmann reports happily for this summer. In the "FUR Travel Analysis" in May, he added further questions to the representative survey in order to investigate travel behaviour in response to corona. Today, we have the first results exclusively for you.
So finally some good news! The mood among consumers seems to be excellent! Well, not quite, as Fred Fettner found out in a detailed conversation with the renowned analyst: Those who have booked will set off by car, as they did 30 years ago – without a guilty conscience as regards the environment, but with a keen awareness of high hygiene standards. Very few people are afraid of contact with strangers...
Within the industry, the pleasure involved in travel raises the mood, but economic worries continue to weigh heavily – in Germany, Austria and of course in Italy, which has been placed under even greater strain. Luca Boccato, CEO of HNH Hospitality, based in Venice, describes the hardships of life in the shadow of Covid-19 and also complains about 'economic support' which has failed to support. Of three packages, only one has any effect, and it's slight. Massimiliano Sarti presents these packages in detail today; No. 3 is just a few weeks old.
Luca Boccato also complains: We have to find out why our industry is not being listened to! That makes me sit up and take notice. Does hospitality have the same image problem everywhere? Where are the lobbyists? What kind of industry is this? One that is experiencing the biggest crisis in its history and yet can’t even organise a demonstration? Surely it can do more than gasp "please please" and accept the decisions of virologists and politicians that are driving its head first into insolvency?
From Monday, 15 June, the borders in the EU and Schengen area will open again. But travel to countries outside of this region will be restricted: Travel to more than 160 countries are to remain "blocked" until 31 August. The "pulls the rug from under hundreds of medium-sized companies," Jochen Szech warned yesterday, President of asr – the alliance of independent travel companies. Germany has more infections in total than some other countries, he criticizes sharply – and now plans take legal action against the Foreign Office. Finally a man with courage again! The global restart is tough.
Surveys of both operators and investors now give an impression of the asset class 'hotel' in free fall. Advice for the industry is to pull itself up by the bootstraps of digitalisation and sustainability.
This year, Expo Real Munich could make a significant contribution to this. It will be "hybrid" – with a much smaller presence on site in Munich and conferences by livestream. The date of the event has also been postponed to 14-15 October. The trade fair presented the new concept, and the final green light is expected to come from Bavaria’s state government and from public health authorities on 20 June. HospitalityInside as stand organiser plans to continue to fly the flag of the industry at Expo Real. More on the Expo Real this our page 1.
Digitalisation certainly works, even on a small scale, as I found out myself during a visit to Ahaus in Münsterland. There, the software company Tobit is using it to network its Smartels as are restaurateurs and the city... A real laboratory that delivers real results – exciting.
Corona also accelerates the mega-chains' handling of digitalisation. This development is increasingly becoming a differentiator, even for global hoteliers. At the 3rd HITT, Accor-COO Europe, Duncan O'Rourke, and Jamie Cole, Senior Vice President Global Channels at IHG, will initiate the discussion on "Acceleration on the digital frontier". Thanks to virtual format, we still have room for you. All information and registration at www.hitt.world.
Enjoy reading today, where its all about the ups and downs of travelling. With tourism and the hotel industry caught between heaven and hell.
Yours, Maria Pütz-Willems
Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
This is how I imagine the "apocalypse": The inner voice says that the state is just distributing the last funds. The new economic stimulus package of the German government, presented on Wednesday, encompasses 120 billion euros. But who will get how much? And more importantly, when? Everything is open again, not defined clearly, even though we got the first clues late yesterday evening. The tourism associations such as Dehoga mainly criticise the periods and the amounts, which are much too modest. Again, this smells like acid rain, which will probably just delay some of the pending bankruptcies…
The Austrian state is also being criticised in a survey initiated by ÖHV's President Michaela Reitterer. In an interview, she says today: Some businesses have already received first loans and tax deferrals, but many have obtained nothing yet. The equity capital is already shrinking, in three to five years, nobody will have any money for investments. Therefore, already in 2023, the market adjustment will start in the tourism country of Austria. Fred Fettner has done some in-depth research in a second article.
This is bitter news, more indicators for the approaching "end" of an industry, which is simply supposed to make people happy. Against this background, the race to open the borders seems even more cynical: Because Germany lifted the travel warnings for 31 countries on Wednesday, Austria lifted all restrictions at the same time and spontaneously – with the exception of Italy. What uncoordinated chaos in Europe – not a single trace left of the former "union". The driving force behind all this is not sense or reason but the pressure of earning money in the summer as the governments' horns of plenty will not be sufficiently full to save all. Everybody can feel it. See above.
Given these circumstances, I do not understand why the hotel industry does not impose a surcharge for hygiene. Every hairdresser does it, the railways and airlines will do it without talking about it! Sylvie Konzack describes the creative and committed fight against the virus with sprays, spray mist and UV light, and the hiring of new hygiene and lobby managers to win over the trust of travellers. I permit myself to comment on the industry's lack of courage.
We are heading into a different kind of summer, where one event will follow the next, developments might be overhasty and then stopped again rigorously. In the next few weeks, the entire world will be looking at Europe – the largest experimental field in tourism of all times concerning corona. A region with various cultures and disciplines, with millions of people keen on travelling and one single virus looming above all and everyone.
Our goal is June 23: The day of our virtual Think Tank. And as an appetizer for the 3rd HITT, I'll serve you some insights from our "retail" session, where the shopping mall expert Dr. Volker Kraft of the ECE Group will discuss online and offline sales as well as digital sales increases with Langham Hospitality and Sabre for 90 minutes. A fascinating continuation of last year's lecture on retail brands. Have a look on page 1 and sign up at www.hitt.world.
Yours, Maria Pütz-Willems
Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
Around this weekend, hotels are re-opening in many countries. But at what cost? Everyone who opens gives the impression of being a dying swan… Too much turnover to die, too little to live on. The Dehoga survey among the newly opened German restaurants is frustrating: 78% of the businesses achieved a maximum of 50% of their usual turnover in the first few days.
But where is the rescue fund? Even the German Hotel Association does not seem to believe in a rescue from Berlin any longer. In yesterday's blog, IHA's Chairman Otto Lindner und Managing Director Markus Luthe enumerated the obstacles: The aid is said to be arriving in July now – which is too late. Once again, the money flow will not be falling on the businesses with more than 249 employees – and will thus not reach the majority of hotel groups. The targeted non-refundable aids do not even cover the leases and rents in many cases – the debt keeps growing. We quote from the IHA blog.
Tourism depends on politics and virologists. Minister-Presidents are fighting their battles at the costs of travel agencies and restaurants/hotels. And the balance is lacking: a life belt for TUI and Lufthansa, but water boarding for hospitality? Until today, politics has not understood the business models and does not see the domino effect a collapse of broad structures in this industry will have for recipients of lower and medium income, mini jobbers and many helping family members. Every effort has been useless, time is running out, the bankruptcy clock is ticking.
Now everyone is looking forward to June 3 and Angela Merkel's next statement. She will decide whether the German travel warning will be prolonged or cancelled. The summer season depends on this in large parts of Europe. Germany's neighbouring countries are acting much more pragmatically ... In the report on the EU borders we briefly summarise the status of hotels in an overview by countries.
All that remains is to look ahead: In the business travel segment, we are certainly pleased with the latest news that there will be a Frankfurt Book Fair in mid-October. That's a good signal, there is movement in MICE and business travel, subject to conditions of course.
On the positive side: Travel managers see no reason to put hotels under pricing pressure, Sylvie Konzack found out – and thus the opposite of what HRS recently tried to suggest to the industry. With regard to hygiene standards, one travel expert says: "Hotels are not a risk during the journey." Nevertheless, the experts know that this entire segment will face dramatic changes, most strongly through virtual meetings.
It's time to cut out some dead wood: The city of Amsterdam is once again taking a bold step forward, led by its mayor Femke Halsema. It is putting its marketing budgets on hold and only wants to target the "right" type of tourist: no more cruise ships in the city, no more Airbnb, no more drunken tourists ... From over-tourism to no-tourism: The city is now cleaning up which does not appeal much to the hotels.
How can we emerge stronger from the Corona crisis? With less silo mentality and more agility, with permanent monitoring, which allows anticipating the vibrations of the future similar to a seismograph. Tim Davis of Pace Dimension, London, former hotelier and now a technology expert, explains why fundamental changes are now taking place and why top managers in the hotel industry need to train a new management muscle.
Tim is also actively taking part in our virtual HITT 27 days from now: Not only will he act as a moderator to guide you through the day, but he will also provide a more detailed introduction to the content himself. His impulse shows how the competitive environment has changed, what the new standards and opportunities are. Have you already seen the programme? www.hitt.world
In addition: Bavaria will allow trade fairs again from 1 September. This also means that the planning for Expo Real on 5-7 October continues. Talk to us about the new requirements and the solutions under the umbrella of the "World of Hospitality". More on our homepage.
Yours, Maria Pütz-Willems
Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
From empathy down to antipathy: Booking.com is under fire. The European puzzle provided by Sarah Douag is proof for this claim. The business lost 85% of its turnover of the previous year and has to fight a tsunami of complaints: customers who were not able to go on vacations due to corona, want their money back. Booking remains stubborn and continues to reject their request – Airbnb has already given in. In addition, there is competition from the French state: France wants to create its own, new internet platform for tourism, including the possibility to make bookings, of course. In addition, a class action case by 2,000 hoteliers is currently forming in Germany.
Within months, corona has encouraged trends, which would have lain dormant for years otherwise. One of the lessons learned is: People have to learn faster and react faster to short-time trends. Hoteliers are able to make their plan for July only in June. The forecast made in 2019 is useless. Therefore, the American AI specialist Tom Seddon has dedicated himself to the development of useful AI, which will generate more profit for businesses.
Tom made a career in the hotel industry – and he will be one of our fascinating keynote speakers at the HITT Think Tank on June 23. Today's interview is very gripping. You will find an excerpt on the front page of www.hospitalityInside.com. You will find all details on the HITT 2020 at www.hitt.world. Did you already register?
The Chinese will return! The renowned China expert Prof. Dr. Wolfgang Arlt is 100% sure about it. Those who are able to generate anticipation and show in concrete terms, how corona-safe travelling is possible as well as safe sleeping and eating in hotels, will win these customers back anew. This is a big opportunity for everyone, says Arlt, who has been travelling in China for 40 years and knows the Chinese culture very well. In addition, Stefan Leser, CEO of Langham, and Michael Henssler, COO Asia of Kempinski, describe their impressions.
Meanwhile, the German hospitality industry already suffered revenue drops of 45% in March – the April turnover could even decrease by 90%, according to the association. The promised emergency aid fund has still not arrived yet.
Dorint Hotels will sue in every German state that limits the operator's occupancy. Since Monday, the first case is pending in a court in Mecklenburg-Western Pomerania. Bavarian hoteliers are able to book fully, starting on May 30, as announced on Tuesday.
Yesterday evening I spontaneously asked Rolf Seelige-Steinhoff, with his 16 Seetel Hotels on Usedom the biggest employer, how big the rush was since the opening for the locals on Monday and especially on yesterday's holiday, Father's Day. His answer "dance of death"! A few more people on the beach, but all day visitors. Eight rooms booked at Strandhotel Atlantic Hotel. The brewery, otherwise hotspot of the fathers, almost empty. From May 25 the rest of the republic may travel to the Baltic Sea. Then it will be exciting, because there are no more rooms available.
The processing of the corona misery has begun. The state of shock has been overcome. With the reopening, new perspectives are arising. The only thing remaining are mega debts and zero emergency aid.
Concerning the latter, politics have left the industry alone. There is no other industry, which includes all social levels of society in such a bandwidth – from dishwasher to top manager. Doesn't anybody see the importance of 2.4 million jobs, in Germany only?
We, for our part, will keep asking and criticising.
Yours, Maria Pütz-Willems
Editor-in-chief
Your opinion? maria[at]hospitalityInside.com
Dear Insiders,
Germany is setting the pace for border openings in Central Europe. This week's decisions are eyewash: they mainly help commuters, but keep tourism at a distance until June 14. The summer business is not yet guaranteed!
It seems to me that some politicians are slowly enjoying their "new power": Who else would come up with the idea of demanding 5 square meters of space per person for meeting breaks? Social distancing is fine, but then you would have to rent half a ballroom for 50 people...
It makes me all the more angry when the EU Commission gives in to airlines and no longer insists on freeing up seats, as was reported yesterday across the news agencies. So you can still cuddle up with coronavirus on a plane and shout at each other in the hotel? The airlines' arguments are brazen: If they limited capacity as demand for flights increases, they'll have even more trouble making money. At this point, the associations should quickly shout out in plain language! Are double standards being applied once again?
Thomas Willms, CEO Deutsche Hospitality, took us on a tour d'horizon through the corona themes. Although the group is debt-free, he is also very concerned about both group and business travel, which is not likely to pick up pace for a long time. He doesn't believe that under the current conditions and perspectives, a hotelier will make any profit this year at all. There will be no more growth as we knew it, he says. He prepared the 2021 budget with a crystal ball.
Along with the first re-openings, the marketing machinery has started again. Will the hoteliers be forced into price cuts again by OTAs or will they use this opportunity to price in additional hygiene measures, for example? The hairdressers are doing this right now.
The answers of Prof. Dr. Werner Pauen provide some orientation, although not all will like them. The former CFO of Accor and Dorint works as real estate expert and financial expert today. After our discussions about rents in the last edition, he states clearly: contract is contract. And those who are unable to reach an occupancy of 60% will only drag themselves from one emergency situation to the next. Therefore, it is most important to ally with all stakeholders!
We are providing you with a list of all current border openings, we updated the requirement sprees of the individual states in Germany, we describe the new "tavern package" of the Austrian federal government, and are surprised by a small table showing the decline of inns and bed & breakfast establishments in Germany.
Despite all, we are looking positively into the future – especially on June 23, with the participants of the HITT. Starting today, we will introduce different players every week – starting with Michael Struck, CEO Ruby Hotels, and Jens Gmiat, COO Zoku, who are conducting a discussion about the "new norms" in customer experience, and who took the first steps towards new operator models as young brand groups. You will find all this on our page 1 – and you are able to book at www.hitt.world. This event is pinning its hopes on in-depth content, competent initiators and new future perspectives.
On Tuesday, I will be able to gain some digital experience as co-host in the session about the first Hospitality PropTech Awards, awarded by the start-up platform GermanTech and its partner Union Investment. You are still able to participate in the three-hour event.
Yours, Maria Pütz-Willems
Editor-in-chief
Your opinion? maria[at]hospitalityInside.com