Editorial
Today, the brand new information on staff issues and projects is hidden in many short bits of news... Read for yourself!For example: Carsten Rath is doing Kameha Hotels.
At the beginning of the year, we took the opportunity to talk to the German-speaking COO of a new design hotel group in Dubai. Apart from the crisis, the group plans to open - would you believe it - up to 100 hotels around the globe in ten years! Europe is also on the expansion list; however, Germany is not. A Bavarian would nonchalantly say: "We'll see what happens..."
Accor introduced a new loyalty programme, which also rewards guests of 2-star hotels for the first time. This is a new dimension in the big hotel chains' fight for customer loyalty. What is more interesting is that a critical Cornell report does not rate these bonus programmes as very important marketing programmes.
Behind the scenes, the staff issue is becoming increasingly important. Every hotel group in the world is already facing an undeniable challenge. They are not only looking for low-level staff members but also for qualified staff members at management level. Thus, the universities are in the focus now. Today, our author Baerbel Schwertfeger describes the subject of university marketing from the hotel groups' point of view. Moreover, she interviewed the new university marketing commissioner of the Kempinski Hotels. In the meantime, Kempinski is looking for 20,000 staff members all over the world.
In the next few weeks, various industry events will be taking place. hospitalityInside.com will be there to inform you about the current mood in the industry at the beginning of the year. Enjoy a great week!
Yours, Maria Puetz-Willems
Editor in Chief
Your comment? maria@hospitalityInside.com
Dear Insiders,
hospitalityInside.com would first like to wish everyone a happy and successful new year - whatever the financial analysts predict. Just how dominant the financial crisis has been over the second half of 2008 is seen in our annual review. Nevertheless, there have been individual movements and news which have consolidated existing trends or introduced new ones. Read our summary of the most important events. Throughout 2009, finance will of course remain a hot topic. The conference market was the first to publish its figures and these are all but encouraging. Even the current "ITB World Travel Trends Report" expects a bad year for travel.
The start of a new year also brings with it new personnel news, some quite surprising: The new Leading CEO made surprise dismissals before Christmas letting go three long term management staff. HRS, on the other hand, has extended its management team. Consistency also seems to have made a return to the Schoerghuber Group with a new appointment for the top job. The move sends positive signals to the hotel division which this year needs a new CEO.
Hotel spas looking to arm themselves for the battle of 2009 are well advised to take a look at current trends: Although these were determined in the USA, they are certain to provide relevant impetus and orientation here in Europe.
Until next week and the 2nd edition 2009, best wishes,
Maria Puetz-Willems
Editor in Chief
Any ideas for the new year? maria@hospitalityInside.com
For hospitalityInside.com a fast-moving and good year is coming to an end. Many new readers from the hotel industry as well as from the supplier industry, banks, project developers and universities placed their trust in us; therefore, hospitalityInside.com was able to register a new visitor record - which is an enormous encouragement to the team. Our claim to offer high-quality information to the industry's decision makers has been a new challenge with every single issue. Therefore, I want to especially thank our international team of editors and experts for their commitment - without their involvement, this interesting mix would not have been possible.
In 2008, we were able to improve and develop the profile of hospitalityInside further. Our Friday issue is still the core of our portal where more and more important synergies and partnerships are developing. We started new projects: our first readers' trip to Dubai in May was a complete success. The hotel conference at the Expo Real in Munich got best marks from the participants and the Munich International Trade Fair too. And we accompanied the Messe Berlin as a media partner at its first "ITB Asia" in Singapore. After issuing the first brand report in November with our partner PKF hotel experts in Munich, the next most up-to-date budget report is waiting. If you want to order these publications as print versions, please contact us. The ebook versions of the reports are still under preparation.
In 2009, the two hotel conferences at the ITB Berlin and at the Expo Real in Munich will remain our congress focal points. Both conferences reflect the focus of hospitalityInside.com: they are focused on international issues, they concentrate on high-quality values, they have top-class participants and they are constructive and critical platforms. We will provide you with up-to-date subjects, high-quality panels - and many new ideas! We are waiting for you in Berlin and Munich.
There are many dismissals in the global publishing industry at present, which concern editorial staff as well. In the US, traditional publishing houses are affected, such as the media group Tribune and the New York Times, and most leading publishing houses in Germany, too. A decline of the editorial level might be imminent now; however, up-to-date and well-founded pieces of information are essential in difficult times.
You can still rely on hospitalityInside.com as we will enlarge our team in 2009. As we are an advertisement-free media, we are able to fully concentrate on the content. And these substantiated pieces of information will not be found in any Google machines.
Dear Insiders, after last weeks' permanent crises reports, we want to end this year with a "crisis-free" but nevertheless interesting and up-to-date issue.
We hope that you will read our issues next year - and that hospitalityInside.com remains your "information network" in the future!
The next issue of hospitalityInside.com will be published on January 9, 2009.
Today, we try once more to get to the bottom of the effects of the crisis. Our correspondents in Austria and Switzerland interviewed leading hoteliers and experts; initial concrete forecasts in terms of figures are slowly coming in from the US. Here, it seems that it will become a "perfect" winter season for resort hotels, while city hotels are already suffering from the reduction in business travels. The negative news from the US should nonetheless be considered against the backdrop of rate and occupancy levels that were already substantially high.
All in all, the situation is quite confusing in all its detail, and nobody is able to look into the future through a crystal ball. From my point of view, all those extremely negative reports about the threatening economic disaster issued by the mass media every single day are psychologically devastating and partially irresponsible. If you listen closely, every forecast comes with critical dissenting voices - but the effects on consumers are depressing. We don't want to join in this type of reporting, but rather follow the developments in 2009, in an even more differentiated manner - and deliver background information exactly in the way our article about the problems of the open real estate funds mirrors it today.
In Munich, Alexandra Schoerghuber took over the management of Schoerghuber Unternehmensgruppe two weeks after the death of her husband. This early clarification of circumstances signals willingness to take decisions and continuity to both employees and partners - something the group urgently needs. Even if there are no details known about the future of the hotel division, it is positive to hear that the new head of the company is a friendly, active and analytical woman. And she learned her profession in a hotel.
Hilton is leaving everyone in the dark once again - you only learn about their new lifestyle brand via the media. Hotel Cipriani in Venice successfully defended its name in court, and the Alps see the beginning of a new collaboration.
Have a great final advent week.
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
The terror attacks on the Taj Mahal and the Oberoi-Trident Hotel in Mumbai are a superlative in the most negative sense of the word. It is one of the biggest disasters ever affecting hotels. The collapse of the Marriott World Trade Center New York in September 2001, the attacks on the Radisson SAS in Amman in November 2005, and the devastating explosion in the Marriott Islamabad in September 2008 are of course not to be played down. People died in all these cases, and there was a great deal of bloodshed. Of course, one cannot foresee such incidents, but in cases of crisis it is clear as to whether companies are prepared at all for such catastrophes. We took the incident as an opportunity to analyse the crisis communications measures of the two hotel groups. Dear hoteliers, "Crisis management has to be put to the test now at the latest!" says our editor Baerbel Schwertfeger - and she is right. We provide you with a concise checklist. Mumbai could take place everywhere today.
The financial crisis has grasped the entire globe, and therefore, the celebrations on the occasion of the 80th birthday of Leading Hotels of the World in Boston were accompanied by discussions and worries. The convention in the city of immigrants also revealed the different ways in which various mentalities cope with crises: the Europeans assumed a more confident and composed stance facing the threatening insecurity, while numerous Americans seemed rather helpless. Leading Hotels seemed prepared for the "run 2009".
At the Leading Hotels gala night, I was lucky to have Hans Bruland sitting right next to me. He has managed the legendary hotel The HayAdams in Washington - the "President's hotel" of the city with the absolutely unbeatable view of the White House - for almost ten years now. Bruland, a German native, talks a little about the "night of nights", the election night on November 4. And he explains why his hotel is normally "crisis-proof".
Such encounters are among the bright and happy moments for journalists, who are normally busy tracking crises nowadays. Our correspondent in Austria, Fred Fettner reports about the effects of the financial crisis on the alpine republic. Applications for loans are dropping, investments have been brought to a halt, and a lot more equity is required.
If you would like to treat yourself or friends and colleagues to an exciting read as a Christmas gift, you should take a glance at the review of Stefan Loipfinger's reckoning with the fund sector. This is crisis management à la journalistique. At Starwood Hotels, the crisis is already taking its toll - dismissals. Other chains will probably follow suit, I presume.
A thrilling issue awaits you. Read for yourself!
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com
The hotel group ArabellaStarwood is probably the smallest problem in the business empire of Stefan Schoerghuber. His sudden death last Tuesday places his family and the staff of the Schoerghuber group before new and enormous challenges in times that are already turbulent anyway. The head of the company died far too early at the age of 47 right in the middle of the reorganisation of the holding. The German hotel industry has lost a great investor who put his heart and soul into his business. He purchased Schloss Pichlarn in Austria just last Friday.
The news of his death became known during the Dehoga Branchentag industry event in Berlin. There, the participants were struggling against burdensome fees and for a decrease of the VAT from 19 to 7%, but the day's star guest, the German Chancellor, did not submit to promises. She did, however, give the hoteliers the feeling that the industry's interests were being heard at the highest political level.
During the coffee breaks, the real economy was visible: The hotel managers and caterers talked about the banks' credit crunch, about decreasing prices and the year 2009, about which nobody knows what is in store. Our colleague Susanne Stauss intensely dedicated herself to the price issue and compared hotels via online booking systems.
The opening of the 15-million euro spa in the wellknown Wald & Schlosshotel Friedrichsruhe, so far only known as the gourmet temple, is counter-cyclical to these times. The hotel's aim is to attract the "stable" and well-off clientele between Hamburg and Dubai. In the course of its changes, the owner has dismissed the star chef Lothar Eiermann.
And there many more exciting bits of news this week.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
I've known it since last week: the super-rich in this world have their own "misery". They need cash, but facing the current financial crisis, they remain sitting on their villas, yachts and paintings. Apart from two highly interesting talks on the decreasing luxury level in the US at the Leading Hotels Convention in Boston, today's article about the changed leisure time behaviour of Austrians also shows that the crisis has effects everywhere. Even the "broad masses" are showing a reaction - they are reducing their parties, shopping, wellness and breathing in fresh air instead. It is for free.
The Austrians, Europe's seismograph for tourism developments, live in the fear that a snow crisis might come in the next few years. Their winter sport is worth 11 billion euros after all! An enormous amount for such a small country. They are therefore taking immediate action looking for an alliance with winter sport partners.
At the Design Hotel Conference in London, Guy Dittrich learned that a huge gap lies between the desires of designers and those of the hotel operators. That is nothing new for realists, but in times of crisis, this is becoming critical. At the moment, there seems to be hardly any leeway for experiments.
Accordingly, the engagement of the famous Sacher Hotel in the mountains of Austria can be seen as a small experiment. As of December 1, the grand hotel dynasty will manage the domicile of a rich Russian. 19 rooms "all inclusive". But: the oligarch lost a lot of money. Despite this, the Sacher remains true to him. The famous cake is to be exported to Russia in the long term.
Today's top news: our staff reports - mainly on Wolfgang Neumann and Moreno Occhiolini. Two big managers have new plans. And Wyndham's Rudnitsky has turned up again as well...
Enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Singapore wants to push on. The Asian city state is improving its tourist offer. Ageing hotels are to be renovated and top integrated resorts are to be built in the city and the island of Sentosa. Singaporeans of course are a little concerned than billion-strong investors may renege at short notice, but for the moment everything is in order and the construction cranes are growing higher and higher on the skyline.
The picture is different in Europe. Here, banks and car manufacturers have discovered the State as saviour in respect of their economic failings and they withdraw unashamedly beneath its protective wing. SMEs, on the other hand, continue to struggle alone against the full force of the crisis and are even confronted by new restrictions, an injustice which led the European hotel and restaurant association Hotrec to make an appeal to European politicians at its annual congress in Prague recently, to finally change their course in such hard economic times: away from the glut of excessive regulation and towards real support for the industry in the form of reduced VAT rates and subsidy for training. But such appeals are likely to fall on deaf ears.
In such a situation, a modicum of solace might be found in predictions from Dr Volker Boettcher, Head of the tour operator TUI Germany. According to him, 2009 won't be too bad a year for tourism. Boettcher is convinced that the holiday is considered important in Germany and that in 2009 too, Germans won't be too willing to do without their "nicest weeks of the year". TUI's strategists have extended the number of four and five star hotels in their portfolio for their financially strong clientele.
Guests whose belts have had to be tightened in the wake of the financial crisis, however, can also expect a large selection of all inclusive trips. "2009 will be an all-inclusive" year, Boettcher said firmly at the presentation of TUI's summer programme for 2009 at Agadir in Morocco. Further focuses of the programme - in line with trends - are to be found on best agers and environment. Expensive air fares which may ruin the tour operator's business, have been pushed back by way of caution. And: TUI has not been afraid to announce price increases for the coming year.
Modified concepts in this edition of hospitalityInside.com are not only presented by TUI though. Fairmont, Raffles and Swissôtel - meanwhile all united in one single parent company - also announce their new strategies. Further articles bring us to Switzerland's top class hotels and to sensitive takeover negotiations: Starwood Capital plans the sale of numerous luxury hotels, among them the 33 Concorde Hotels and JJW Hotels. Have fun on our journey across the globe.
Susanne Stauss
Senior Editor
Questions? susanne@hospitalityInside.com
Kurt Ritter and Barack Obama have something in common: With the slogan "Yes, I can", the Rezidor CEO has been trying to motivate his team for years, and with "Yes, we can", the American President Elect has this week managed to mobilise an entire country. Both have to struggle against the economic downturn and Rezidor wasn't the first this week to announce falling figures. But more on this and on other ramifications of the global financial crisis next week.
Today's edition of hospitalityInside.com moves a little away from the topic of financial turmoil. Guy Dittrich once again summarises statements from the International Hotel Conference in Rome where positive approaches for boutique and budget hotels are found despite the financial crisis. And the tenor was similar at the hotel discussions during the ITB Asia. Here, it was reassuring for visitors from "good old Europe" to hear that the boom continent has now found itself subject to exactly the same market mechanisms as have long established themselves here at home. That is, competition between sectors, brands and prices.
In almost all discussions in which I have listened this autumn, an appeal can be made out to set oneself apart from the competition through "differentiation". The Fraunhofer Institute in Duisburg may be able to help here. It has recently completed the first two "experimental rooms of the future" and invites all those curious to know more to come and test them. How does it feel when a robot brings room service to your door? Or when the bidet disappears into the floor at the touch of a button?
The Swiss have once again proved their sense for hyper-progressive architecture: In Bern, the Westside - a mixed use project by star architect Daniel Libeskind including shopping, spa, entertainment, hotel and residences - has opened. The modern building hides a smart concept and the Holiday Inn is part of it. This hotel is once again living proof that the classic "stand alone hotel" isn't the ultima ratio. Here it's about concept synergies.
And last but not least, I'd like to present a row of current personality portraits and to point the Cornell alumni among them to a corresponding article. Here, you will find all dates for 2009 on which you can meet your international colleagues.
Because the year is slowly coming to a close, hospitalityInside.com would like to know from its readers how you view our magazine. For this reason, from this day on we will include testimonials. These are a huge motivation to us in giving you our best week for week.
Yours,
Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Could it be that the rumour of the week about the imminent sale of Steigenberger to Marriott was a retaliation campaign of former employees? Even Dr. Ralf Corsten, Chairman of Steigenberger's supervisory board, who is rather considered a mastermind in the background, allegedly knew nothing about this rumour let alone activities of that kind.
Consequently, the floodgates have been opened to speculation. And in the middle we have the dynamic Chair André Witschi, who allows a short glimpse at the strategy he is following with Steigenberger for the first time after this week's events. And it says: tidying up! The investment crunch puts too much strain on the hotel group, and it is only able to divorce itself from old agreements very slowly. Anne-Marie Steigenberger and her daughters have lived on the "gold rush" for many years. Now they have to use all the more money in order to make their company attractive again.
Last week saw humming business in Singapore: the first ITB Asia was a complete success. Messe Berlin, the Berlin trade fair company, is pleased about 24% more visitors than expected as well as positive comments from both exhibitors and buyers. The trust in the ITB brand and the German organisational talent is amazingly big in Asia. As a German in Asia, you perceive this with respect. Being a media partner, hospitalityInside.com was on sight throughout the entire week: for starters, we will describe our impressions from the fair, and next week you will read more about the current hotel situation and up-to-date discussion topics in Singapore and Asia.
In Switzerland, the hotelleriesuisse industry association has drawn conclusions from a guest survey. By 2010, demands of guests will change criteria for awarding hotel stars. And based on the motto of "less industry sleaze, more objectivity", the association is filling its committees with external experts.
"Green meetings" remain wishful thinking, as our editor Simone Spohr found out. The hotel offers in this segment are far from being applicable.
Enjoy surfing and reading,
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com