Editorial
A clever management consultant calculated that the landlords earn about 25,000 euros each time a toast is pronounced by the bands in the tents at the Oktoberfest in Munich. Next Monday, right after the Oktoberfest, the commercial real estate fair Expo Real will begin in Munich. Many topics will be discussed at the fair. The financial crisis will be a mega issue and hopefully the "Hospitality Industry Dialogue" too, where hotel and investment experts meet in six panel discussions. Starting: 10 am! You can meet the hospitalityInside team in Hall B3/Special Real Estate Forum over the course of the whole day.
B&B thinks that it indirectly profited by the crisis: in hard times, budget concepts attract even more travellers, mostly more business travellers. An Amex survey confirms this. Therefore, the French group regards itself well established in Germany for the next few months. Its expansion is progressing.
Women progress too, but not as fast as men do. However, they are clearly on their way up to the top levels of companies. Gabriele Maessen, GM for the new Leonardo Royal in Berlin, devoted her dissertation to the subject "Women in leading positions," shedding some light on the question of women's rights in the German hotel industry and animating us to conduct a survey among international hotel chains: how do these chains regard women? A "must-read" for men, too!
If male executives are not able to sleep after reading the matter - just try the new high-tech pyjamas of Travelodge....
After two cheerful Oktoberfest weeks, I wish all of us successful trade fair weeks and conferences featuring interesting subject matter in October.
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
It is always exciting to see how new brands try to conquer Europe, and with what partly tiny differences they hope to assert themselves against competitors. Hilton is currently presenting its US brands Hilton Garden Inn and Hampton with a road show hoping to find enough investors and franchise partners. When a Hilton manager showed how many Hampton there are at a presentation in Berlin this week, it was primarily North America that was dramatically strewn with tiny spots for this brand.
Expectations are therefore quite big for Europe. Since the merger of Hilton & Hilton about two years ago, the managers in Europe have been working on the adaptation and market introduction. Now, the sportive competition with IHG and Starwood can begin.
I doubt whether the plans of hotel groups - and I mean all of them - can be realised as they have been so far. The first signals in this second week after the insolvency of Lehmann Brothers hinted instead that the worst is yet to come. We have collected further statements, figures and facts about the financial market crisis and its effects.
In a way, you can rely on women. They make 80% of all buying decisions. Our profile of this target group shows what tourist professionals and hoteliers should adjust to. And this is considerable: women have many facets... To put it soberly, this target group holds enormous potential!
PKF hotelexperts and hospitalityInside see a lot of potential in preparing fact-oriented reports as well. Your online magazine supported the hotel consultants from Munich in developing an database which allows you to gather fantastic profiles and market overviews over time. Our common goal is to provide first-hand objective, plain information instead of PR-intense reports with estimated figures or questionable secondary sources. At the Expo Real in Munich beginning on October 6, you can take a look at the first report "Hotel Company Profiles" at the PKF hotel experts' booth. The reports will be distributed as personalised e-books via hospitalityInside. For us, this initiative will mark the start of the planned "hospitalityShop", which will provide you with a large pool of studies, analyses and books over time. Get to know more about this after the Expo Real - we are just putting the final touches on the reports.
Yours, Maria Puetz-Willems
Editor in Chief
Any suggestions? Critique?
The financial inferno of New York makes everybody feel uneasy. How strongly will the most recent "black Monday" affect the world economy and the individual industries? It is all the more understandable that the financial heads of the major hotel chains refused to take part in our spontaneous survey. Who would want to spread additional scenarios of fear? Uncertainty sits deep anyway, and many are probably checking their involvement in international financial institutions. This is what we learned from the feedback. We will stick to this issue for you over the next few weeks.
As October will see a good many conferences, we have concentrated on "Eastern Europe" today. An experienced developer from Belgrade emphasised the situation of the Balkan countries, and our editor Fred Fettner provides a report on a booming Serbia and Belgrade. The conclusion: the path to hotel heaven is still long and winding.
In its recent survey, Deutsche Hypo considers hotel development in Mecklenburg-Western Pomerania, Germany positive but not euphoric. The market analysis featuring many figures and facts is part of the bank's first hotel survey, which also provides German-wide figures in a well-prepared form.
And finally, we will skip over to Asia once more, in order to draw your attention to the first "ITB Asia" five weeks from today. Head of the trade fair, Dr Martin Buck, explains the difference between the ITB in Berlin and in Singapore.
Two of today's three trade fair news reports refer to new events with a trade-fair character. But read for yourself...
Have an crisis-proof week.
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
Dear Insiders,
The announcement of the second new TUI hotel brand "Sensimar" sounds as poor as the announcement of the first leisure lifestyle budget brand "aqi" a few weeks ago. A clearly distinguishing profile from other already existing brands is not visible. And once again, TUI offers no details - as it probably doesn't know any itself. Thomas Cook does not sound stronger; yesterday the TUI competitor announced also a new hotel brand called "Sentido". This is no coincidence.
Both our wellness reports today show that competition in the well-being hotels has become reality. The Swiss industry association of hotelleriesuisse tightened its wellness criteria in order to provide transparency in the quagmire. For the successful hoteliers in the market, Bianca Spalteholz, our distribution expert, provides tips on how to increase their success with the aid of revenue and yield management. But seriously, did your spa manager ever try to sell treatments more expensively during peak times? What would your guests say to this? The results-oriented approach in the calculation of spa treatments is a real challenge.
Increasing turnover not cost savings is the approach of the Zarges von Freyberg Consulting in Munich, founded nine months ago. We introduce the "newcomers" of the upper hotel industry to you: they have been the first German consultancy as a partner of the Leading Hotels of the World for a week now.
At the small chain "Ghotel", all hell has broken loose: the former Posthotels are very agile. Either they want to expand or be bought. This is market-oriented thinking!
The Hospitality Alliance AG, only known as Ramada licensee up to now, is starting its own budget brand; Germany was a top holiday destination in the first half of the year, and Moevenpick and Scandic are happy about good results. Under the news, you will find more interesting reports.
And last, but not least: hospitalityInside invites you to a new special interest trip to Dubai! From January 9 to 14, 2009, we shall be combining sightseeing with expert discussions. Each day of the program has a special motto and, for our guests, we are inviting experts from the hotel industry and the economy to Dubai. Get to know "hospitality inside Dubai" and find valuable contacts. Read more in the column "readers' trip."
Yours, Maria Puetz-Willems
Editor in Chief
Any questions? maria@hospitalityInside.com
Dear Insiders,
The personnel roundabout was spinning this week at Starwood, Hilton, Wyndham, Worldhotels and Barwa.... The position of CEO is still vacant at Wyndham.
Alain Leibman has probably been performing some crisis management this week: A fire broke out at the showpiece resort Atlantis, probably due to construction works. Nonetheless, the hotel would open as planned in 19 days, said the General Manager. Dubai insiders doubt it.
In four weeks, the Expo Real Munich will open its gates once more - offering expanded exhibition space of eight halls and a hotel conference whose programme has been organised by hospitalityInside.com for the first time. Take a look at the programme of the "Hospitality Industry Dialogue" on the web and note the panel discussions. Industry experts unlikely to be met elsewhere have promised to come. The introduction into the topic will be a contribution about the investment trend in the first six months of 2008.
The "ITB Asia" is also approaching - in late October, the Berlin trade fair is venturing a beginning with an accompanying congress programme. hospitalityInside.com will be on site for you as media partners and will follow trends and developments.
In Germany, the busy consultant Stephan Gerhard found some time to give us a detailed report on the changes in his company. The Treugast is only a supporting pillar for him, as he is increasingly engaged in interests in hospitality companies.
Princess Helen zu Oettingen Wallerstein is also looking for a way into the hotel industry - this is why we are introducing to you the interior designer with a love for historical buildings in the "Newcomer" column.
In contrast to this, the report by our colleague Fred Fettner is almost frustrating. A survey in Austria has shown that nearly half of all entrepreneurs in the field of tourism have chosen their profession due to family reasons - and not due to passion or talent. I think this result can probably be transferred to Germany and Switzerland as well. This is maybe the reason why the medium-sized companies in these countries are so shy towards innovation and inflexible with respect to everyday business. On the other hand, they often invest millions in new concepts - without having analysed the market in detail beforehand.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Summer drama revolving around the Atlantic Kempinski Hamburg: thanks to the supposedly "lost 5th star", the run-down building of the luxury hotel has entered the limelight. Now Kempinski, the operator, is putting pressure on the owner Bock. And this brings us to the key question: how long are owners allowed to let their hotel buildings bleed white?
There is another drama behind the scenes at Best Western: supposedly eight million guest data were offered for sale in the cyber underground. Data theft has occurred at the Marriott Vacation Club in the US or Sol Kerzner as well in the past. The alarming fact though about Best Western is that the group does not tire to claim that the originator of this news is unreliable, and at the same time admit that there was a hacker attack at a German hotel. Best Western does not officially deal with the issue in detail.
The different explanations for the delay of the MBA for business travel management are just a minor summer drama. The Business Travel Association of Germany was seemingly informed too quickly and badly. Our editor Baerbel Schwertfeger received some strange answers.
Our real estate specialist Karin Krentz has had a sceptical eye on business methods of rating agencies. Although not too many hotel groups are listed at Moody's and similar agencies, you will get a highly interesting insight into the working methods and backgrounds of analysts who decide on the fate of real estate through a thumbs up-thumbs-down procedure.
And finally, we pose the question today as to whether life is better with or without the stock exchange. Stock exchange newcomer Rezidor thinks positively about it of course, while stock exchange veterans like Moevenpick or Four Seasons are of a different opinion.
And in the end, our smaller news show that the summer holidays seem to be truly over....
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Two industry greats celebrated their birthdays this week: On 15th August in London, Moevenpick founder Ueli Prager turned 92 - in Moevenpick's 60th anniversary year. Annemarie Steigenberger also celebrated her 80th birthday yesterday together with her family near Rome - in the 79th year of the Steigenberger hotel group. hospitalityInside.com wishes many happy returns!
Someone else congratulated Ted Teng, the new CEO of Leading Hotels, from New York: Fred Kleisner, CEO of Morgans Hotel Group, was Teng's superior at Wyndham. He sent the following to hospitalityInside.com: "Ted Teng is a perfect choice to take Leading Hotels to their next level - He has a broad rage of talent and should not be "branded" in any way. Ted is both a strategic and tactical thinker Leading Hotel is blessed to have him at the helm!" I was fortunate enough to meet Ted Teng for the first time in the informal surroundings of the last European meeting held by the Cornell Hotel Society in Vienna. This autumn, we'll meet again, this time in a more formal capacity. More then.
One reader, who grew up in the hotel industry and who today is a self-employed hotel marketing professional, commented on the serious complaints of "exploited" staff in our recent article on employer rankings with the words: "That was no different in my day either. The better the hotel, the worse the staff conditions."
Perhaps a few employers have learnt a thing or two from the article. Today, our correspondent Baerbel Schwertfeger takes a look at cross-industry employer competitions. And has found only two hotel groups willing to take part. Yet both of these speak of huge image improvements, also in respect of existing staff. All the same, colleagues urge caution in the choice of the right ranking.
Many speak of "green" or "environmentally friendly" labels. Today, we explain what exactly is behind the American label LEED and how the new quality certificate for sustainable in Germany will look like.
In this week's edition, we also take a look at a trend in real estate development: the three-way relationship between owner, lessee and franchisor. More and more global players concentrate efforts more closely on pushing their own brand - leaving the operation of the hotels to "nameless" hotel groups under franchise agreements. We took a look at the model and asked the parties involved for their opinions.
Enjoy the read!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Ted Teng is the 6th President of Leading Hotels of the World since the association was founded 80 years ago. Statistically, each President was in office for 13.3 years at the head of the marketing association. The face and origin of the American with Asian roots indicate new momentum. The 52-year old looks back on a classical chain hotel career: Sheraton, Westin, Starwood, Wyndham. In addition, he knows America and Asia like the back of his hand and he is an expert in brands and real estate. Therefore, everybody is anxious to know what "the new one" is planning to do with the individualist private hoteliers at Leading... Jean-Jacques Gauer, Chairman of the Leading Executive Committee, will familiarise Ted Teng with the association - and afterwards, he will think about his withdrawal, as the well-known Swiss hotelier revealed in an interview. Then it will become exciting once more; finally this position is among the subtly influential ones in the global luxury hotel network.
The concierge services also build on this network in the end. The "wish managers" know no limits, but they definitely feel new trends: ever more guests are willing to pay more for services. Leading Hotels observe this trend with respect to their Loyalty Club, and a concierge agency in Frankfurt construed an extensive business model for private and business customers based on it. Concierges are becoming "life coaches" - and are creating new customer relations beyond the hotel borders. A trend that is slowly taking shape.
Another quite negative trend is also on the rise: an increasing number of employees are complaining about their employers and hotels online and in public. They describe screaming housekeepers, talk about mobbing and exploitation. The hoteliers themselves react rather helplessly towards these anonymous accusations, as our editor Baerbel Schwertfeger found out. But what is permitted and what is contestable in legal terms? A complicated issue: read for yourself.
Compared to that, Seminaris Hotels are in rather calm waters. A new article in our "Small chain" series. And Managing Director Guenther Strube shows once again that it is possible to make a good living in the market niche with clearly distinctive seminar and conference hotels.
And you will find several interesting issues in the smaller articles, too...
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? maria@hospitalityInside.com
Dear Insiders,
Today, on 8th August 2008, the registry offices will be full and many hotels have arranged wedding parties. The unique combination of numbers is the reason for couples to get married and not superstition. This is different in China. For thousands of years, the number 8 has been dominated by mysticism in China: This is the reason why the Summer Olympic Games start today, on 8th August 2008, at exactly 8:08 am and 8 seconds. The magic number stands for "no problems" or "success" and also "wealth". As such, the hotels in the land of the rising sun still have the chance to improve their weak numbers. Latest US statistics report a decrease in occupancy and in RevPar for the first half of the year.
When there are hotels, there is also a need for staff. In the whole of Asia, millions of employees are needed, and the training of the junior staff as well as managers is a sensitive topic. Today, the Dean of the Cornell branch in Singapore speaks about the situation in Asia and the courses offered by her university, where a Master course is also suitable for western employees.
In October, Singapore will be the venue for the first "ITB Asia". As we are a media partner of this trade fair premiere, we would like to re-emphasise the added value of this trade fair week, which incorporates not only one but four events revolving around the topics technology, MICE, leisure and business travel.
A study carried out by the Lausanne Hotel School show that the ideas of a new generation of hotels can massively change the hotel product. The school's students "connected" the guests with each other and used the intranet to re-vitalize the hotel. This is brain food for established hoteliers!
Just as the students use technology as a vehicle to achieve a new quality in dealing with guests, spas already belong to the hotel sectors where the staff quality plays a decisive role when it comes to the turnover. Our editorial expert Judy Singer, international spa consultant for 25 years, gives concrete tips as to how hotel managers should deal with spa employees.
German health spas have not reached the "software" yet. The majority of them still are absolutely average when it comes to strategy, offers and infrastructure. This was the result of an analysis carried out by the Treugast consultancy: Its health spa ranking speaks volumes. Treugast presented its first ranking at the ITB; at that time, due to our ITB commitment, we only had little time to address the details of the ranking. We would like to provide this information in today's article. And the analysis of Treugast is more detailed and concrete today as well.
I wish you a good week filled with Olympic records!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Next Friday will see the beginning of the Olympic Games in Beijing. The Olympic torch has already cast many a shadow, and now it looks like expectations of the hotel industry will not be met either - at least from a western point of view. Beijing has too many beds, even if they should be sold out during the Olympic Games for many days at premium rates. Whist reviewing the individual elements of our article on China today, I get the impression that the Middle Kingdom will soon be a hotel kingdom of average, and hoteliers will probably be involved in price wars at dumping rates much quicker than elsewhere - due the general conditions for travellers in China being far more difficult. But it also illustrates the ever-returning madness that has investors building only due to a single event, and then probably putting all the blame on the operator.
Perhaps, the Chinese would have been better off building the mobile rooms of Travelodge from the UK. This new hotel type comes to where the guests are, i.e. the event. They cost less and probably cause less damage. Anyway, we will keep the bed in the box "under surveillance".
How flexible are investors and operators when it comes to designing an agreement? Hotour Consultancy tried to find out with a diploma thesis. The result is quite sobering, as you might have guessed. An investor remains an investor and an operator an operator. And the figures have confirmed this fact. Read for yourself!
In Austria, hoteliers have laid the foundations to ensure that the winter sport destination of Serfaus enjoys a successful summer season. At destinations that will definitely have to deal with climate warming, Serfaus proves to be a role model.
You can find further "hot" news in our small news...
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com