Editorial
Dear Insiders,
What do the small pentahotels from Germany and The Atlantis mega resort in Dubai have in common? Both of them embody existing and well-known brands. The old Penta Lufthansa hotel brand has reappeared on the European market as the lifestyle brand "pentahotels" after more than 15 years of absence. And Sol Kerzner is boosting his Atlantis resort brand known from the Bahamas to new superlative dimensions on the Gulf. Both of them want to benefit from brand power.
Dubai has made a strategy out of this, as can be seen ever more clearly each year. The boom town on the Gulf is collecting more and more renowned hotel, entertainment and lifestyle brands. A worldwide "copy & paste" strategy with an effect like a permanent magnet, bringing the newest hotels an average occupancy of more than 70% right from the start. Nonetheless: at this year's Arabian Travel Market in Dubai, one could feel for the first time that the hotel business is no longer defined through volume alone. Slowly, very slowly, the discussion is turning to real content.
The two Corinthia hotels in Budapest are currently experiencing what it is like when a location is no longer financially supported and city marketing becomes increasingly poor. Then the hoteliers are on their own. However, Corinthia is still lucky. They are getting a new impetus with Wyndham.
Utell would like to convince more hoteliers to sail with them energetically through distribution channels as well. The former reservation platform has completely changed into a marketing and service forum under the umbrella of the mighty parent Pegasus, similar to Worldhotels.
Enjoy reading today!
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
Dear Insiders,
This edition is brought to you directly from Dubai - hospitalityInside.com has been on location for the last ten days. During this time our first reader's tour "hospitalityInside Dubai" was successfully completed. Our concept of presenting Dubai in just 4 days by means of carefully planned visits to selected locations and many discussions with insiders was rewarded by participants at the end of the tour with the question: "And where are we going next year?" We'll let you know. More on this in following editions.
Since Tuesday, those interested in Arabia have been convened at the Arabian Travel Market. This event too, like many things in Dubai, has become increasingly professional and international from year to year. All are in an excellent mood, all figures and analyses are positive - but day to day chat as well as trade fair discussions are beginning to discuss Dubai's weaknesses and failings. Inflation is increasing, staff are demanding more money and the weak Dollar to which the Dirham is still bound hardly easing the problem. The first report from Dubai today describes the small changes in lifestyle and a few trends from the world of hospitality; more detailed news of Dubai's hotel industry will follow next week.
In Germany, meanwhile, André Witschi made his debut before the press as Steigenberger's new Chairman; my colleague Susanne Stauss was present and reports on the Group's new figures. Our Swiss correspondent, Silvia Pfenniger took a look at water savings, inspired by a speech of Nestlé president Peter Brabeck. She also asked Swiss hoteliers for their tips on saving water resources. A top report which will hopefully fire discussion concerning the environment in your hotel(s).
Have you already turned your attention to the subject of internet marketing? The large chains report on their experiences. The conclusion: Bye-bye print media!
Our press announcements this week focus a bit on Arabia, and they show one thing: The trends from here will quickly drift over to Europe. Who wants to stay on the ball in Europe should also learn to how people in Islamic countries think.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
If you are in full action as a GM, many things look and sound different. Fritz Schenkel heads the Kempinski Chengdu at the gate to Tibet and tried to bring across the "other side of the story" during his vacation at home in Switzerland. He considers the worldwide criticism of China and Tibet a disaster for both parties.
The money market crisis is also a disaster in a monetary as well as ethical and moral sense. Our real estate specialist Karin Krentz summarises the events of the past few months in understandable words and poses the absolutely legitimate question about the competence and supervision of rating agencies at the end.
The Swedish Scandic group, which has not been too present in our heads since its separation from Hilton, is now going its way full of determination - towards Germany and Eastern Europe for now. The group is backed by a fair amount of financial power.
Everybody who wants to become a partial owner at the Palace Residence Club in Florence needs to bring along money as well. The Italian Fingen Group is beginning to build up fractional ownership models with stylish residences in historical palaces in Europe. The group's premiere will be with Four Seasons in Tuscany.
Among our interesting news: IFH, a renowned training institute in Frankfurt with numerous international hotel groups in its client portfolio sold its majority to a British investment fund - further education is being driven by capital. The University of Applied Sciences Bad Honnef-Bonn has also been owned by an investment company for two years now. Slowly but steadily, Germany is following the international trend of treating professional training and further education as yield objects.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
For good things, you sometimes have to wait... But now we have a chat with Andrew Katz. The London based manager is responsible for Blackstone's hotel assets and although he was a little sparing with the figures, he did provide some interesting insights into the mentality of the media shy investment company.
Somewhat surprised by our knowledge of the two new TUI brands this week was TUI hotel boss Karl J. Pojer. Even though he managed to avoid confirming our information clearly - we know how reliable our sources are. New is: TUI is to make the move into the business hotel segment.
Meanwhile, the IMEX in Frankfurt has become a truly international meeting place. During the MICE fair, two presentations were introduced to the public. The "Meeting & Event Barometer" confirmed Germany's excellent position on the international market. Now applied for the second time, the barometer has become somewhat more precise in its formulation of MICE trends. On the fringes of the IMEX, we also talked to representatives from South African Tourism on the country's activities in preparation for the Football World Cup 2010. My feeling was: Officials tend to avoid giving concrete answers preferring instead to concentrate on the "Spirit of Africa" which is to stretch beyond 2010.
Among today's news, you shouldn't miss: Arkona plc separates resorts and city hotels; a benchmark company in Austria has developed a tool whereby hotels can compile their own bank rating, and Abu Dhabi corrects its hotel forecast. More in this regard is certain to follow next week after the "Arabian Travel Market" in Dubai.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Architecture and design may cause shocks or delight. The inhabitants of the tiny skiing municipality of Celerina near St. Moritz were shocked by the suggestion involving their town being "adorned" with a 70-metre high hotel tower. In a purely democratic way, they gave Swiss top architect Mario Botta a slap! A hotelier from Lucerne, however, is not willing to go without the "big names": even his second "modern" hotel is a success. The names of the architect and designer behind the Moevenpick Hotel Hamburg do not have the international reputation of Mario Botta, for example, but their sensitivity shown with the conversion of an historical water tower convinced the jury of MIPIM. The award was celebrated together last week. A background story.
In Istanbul, the design issue is probably not as important: the market still holds a lot of potential for hotels! 70 of them are currently under construction in Istanbul alone. But apart from the chains, there are also initial boutique jewels.
One of the major players, Hilton, sees a lot of space for its Garden Inn and Hampton medium-class brands all over Europe. Wolfgang Neumann reports about the details of their strategy for Europe.
Last but not least, a dry German topic: it is about exclusion periods from unemployment benefits after notice.
Our news section once again adds spice to this issue - enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
Dear Insiders,
Holiday Inn has really gone into overdrive, as I was able to see for myself this week in London. All today's and future hotels are to be renovated by the end of 2010 - some 4,000 hotels. "We are much more aggressive than the competition," CEO Andrew Cosslett says during the press conference. But are they better? As experienced hotel journalist, I really begin to ask myself this very question when I hear that a new Holiday Inn is marketed as a 4 star product, whereas a Holiday Inn Express as 3 star plus. The model hotel, which we were shown at London Heathrow, failed to convince me. All the same, my respect to this massive and up until now quite unique show of strength by the chain as they attempt to bring their core brand up to steam in just three years.
IHG is right on the cusp with its revamp of its middle sector brands. And should the Group, like Ritz-Carlton or Hilton, choose to determine rates by way of revenue management, it will presumably reap even greater benefit. A Cornell study took a look at revenue management. Our correspondent Susanne Stauss evaluated the findings with respect to the markets at home.
Guy Dittrich also listened attentively this week to a discussion at the International Hotel Investment Forum Berlin on budget hotels and learned of fine differences on the topics of environment and guest needs.
Hoteliers seeking to cut costs need not necessarily cross over to the budget segment. Instead they should keep an eye out for technology and progress in this field, as the discussion on hotel technology at the 3rd ITB Hospitality Day showed. This article is the last in a range of reports on the discussion rounds held at this year's ITB.
And two of the most interesting news items in recent days: A Russian has bought an Austria hotel group with most hotels in Germany. And that's only the start of Azimut's expansion in Europe. At the Kempinski headquarter in Geneva, CEO Reto Wittwer replaces his COO.
An interesting edition awaits. Enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Almost without a peep, the number of travellers along European river routes has all but quadrupled! And the swimming hotel still has potential. The river boat journey is booming, as are cruises. Our correspondent Macy Marvel has this week put together the market figures for Europe. Also, a small but just as number heavy insight into current business of the German shipyard Deilmann that alongside its famed cruise ship the "Traumschiff" MS Deutschland also operates nine river boats. Both Deilmann boat tour entrepreneurs were this January awarded the coveted hotelier's Oscar "Hotelier of the year"
A meeting with Wyndham's Senior VP Seán Worker in Berlin also gave an insight into the activities of the Group in Europe; Days Inn and Super 8 are on their way. Equally informative was also a short but intensive talk with Global Hyatt: the managers from Chicago have discovered the Mediterranean.
Old facets repackaged in the new term "service design" were discovered by participants at a talk round during this year's ITB Hospitality Day. In order to fulfil the expectation of the future traveller, a "new generation" of staff will be needed, they concluded...
Ritz-Carlton stay on the pulse of the times: The luxury hotel chain now has its guests work for social and environmental projects whilst on holiday! All for a small additional fee of course. A bright idea, as I see it, in that it goes some way towards bridging the every growing gap between luxury and destination.
A merger is underway among database providers: The American research company Smith Travel Research, The Bench and Deloitte and The Hotelbenchmark in London is to become "STR Global" - a database monopolist with 36,200 hotels in 94 countries. Here I can ask myself only one question: Will the hotel industry in future draw key figures from just one source? How much in the way of comparison will in future be possible?
We wish you a pleasant and successful week!
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
Dear Insiders,
The world of the hotel industry is a colourful one and the expansion plans and strategies of four international hotel groups presented today are a clear reflection of exactly this. Dusit, based in Thailand, is pushing further into the Asian market as well as into Arabia and Europe. The US based Park Plaza has its sights on North Africa and Orient-Express has plans for just about everywhere. Even consortia such as Relais & Châteaux have been whipped up by the winds of the boom markets, even where chain hoteliers may chuckle about 14-room hotels in India. Nevertheless, all hotels want a piece of international reservation pie.
The snap-shots of the four chains also show: All are following just one line. Only their profiles are different - from spa to art all the way to absolute individuality. PATA predicts robust growth for those concentrating on Asia, even for the next few years. Decisive factors are questions of distribution; and so the results of a recent Cornell study may well provide valuable information.
A hint towards the answer to the ever more pressing question of future personnel is given in the few lines in the "News Mix" column: Where do you get the staff? The famed hotelier Kurt Wachtveitl from Bangkok appeared before court - because he feared his staff were being poached. Tactics are becoming rougher - and they won't be without retaliation.
I hope Easter brought positive results. Have fun reading!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
There was still polishing, wiping and cabling everywhere when I was allowed to make a first tour through the new The Dolder Grand in Zurich last Monday. The most expensive hotel in Europe is on the brink of opening. And as usual in times of change, this legend will fire up the discussion about the tightrope walk between tradition and modernism. For my part, I`m not so sure whether I should hate or love this post-modern Grand Hotel. Anyway, it certainly is a unicum.
Concorde Hotels & Resorts interpret the concept of innovation a lot more moderately - but they are also planning to expand in global dimensions. I already met Marie-Béatrice Lallemand, the group`s dynamic COO, at the ITB. She is full of excitement and anticipation as she began setting the new course two years ago.
In Berlin, I also met David Fattal, founder of Fattal Hotels. He was even more resolute with his expansion plans, mainly with respect to Europe. The Israeli businessman wants to open 100 hotels of his Leonardo main brand within three years. We will certainly hear a lot more from this man. I`m quiet sure of that.
The performance of hotel employees over the Easter holidays will again decide whether guests will return or not. Tourist offices in Germany, Austria and Switzerland definitely give away indescribably many chances for winning over guests as they simply don`t answer the phone! This was revealed by a mystery check . Dear hoteliers, please make a test call at your local tourist office yourself... Their professionalism is, after all, part of your business.
A panel discussion on the 3rd ITB Hospitality Day explained how to attract good business from the Far East. The Outlet City Metzingen near Stuttgart and the Nuerburgring in Germany are two excellent examples of how to create value added by applying brand strategies. This also affects the hotel industry. After all, the audience witnessed a panel discussion prepared by Prof. Echtermeyer, offering many precise details about dealing with guests from Asia.
Of course, there is a lot of news to read as well. I wish you a lot of fun reading this issue, which is as colourful as an Easter shrub.
Wishing you a good holiday and successful Easter business!
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Thanks to the Verdi Trade Union, visitors to the ITB Berlin once go home with special memories of Germany: The beginning of the strike last Wednesday, just on time for the trade fair, brought public transport to a halt throughout the capital. At the same time, between 8 and 10 in the morning, a heavy snow storm befell Berlin - and tens of thousands of people stood in thin coats, suits and shoes in ice-cold snow. Some bus drivers, as trade fair visitors reported, were particularly abrupt: First the paying hotel guests were allowed on to the trade fair shuttle and only then were "the rest" permitted to follow. Especially the Indians with their thin saris, some waiting as long as 20 minutes in the snow, felt the brunt of Berlin's brutishness. A flexible and humane organisation of events was far from the reality. The World Cup motto of "A Guest among Friends" certainly begin to crumble at the edges in Berlin.
By Thursday, things had smoothed out and 25 percent more visitors arrived to the ITB congresses, which since 2004 have had a new image. The ITB Hospitality Day also took place this year for the third time - and once again enjoyed a great reception. Whereas last year around 1,000 visitors attended six talk rounds, this year 1,100 visitors were counted at 5 talk rounds. Now, trade fair management will need to consider how it can make more room for the congresses in future.
hospitalityInside.com, media partner for the Hospitality Day and body responsible for contents, would like to say thank you for the huge interest you have shown in the event - we also see it as welcome confirmation that the topics we selected were in fact of relevance both to the times and to business practice.
From my subjective perspective I can only say this: The 24 speakers were extremely competent and the contents of their speeches so strong that there was no rhetorical emptiness within the discussions. In the coming weeks we will summarise what was said in individual talk rounds - beginning today with the panel discussion on "Green Hotels".
The ITB itself is no longer a news forum for insiders, though still a place to obtain a feel for trends and background - as hospitalityInside.com will summarise for you. In this and the following edition, we will report from several meetings and discussions.
A talk on the fringes of the ITB forms the background to the "hottest" article today - the growing dispute surrounding the rights to the name "Adlon". Kempinski lawyers concede rights to the Fundus Group, the owner of the Adlon Berlin, only with respect to the hotel in Berlin. An international "Adlon Collection", as Fundus has announced, would thus be impossible. Fundus moves into the defence.
Less able to defend itself, on the other hand, was the online platform Tiscover in Austria. In view of the financial difficulties facing the company, its takeover by the German reservation system HRS now stands certain. A family certain to be without their financial problems, however, is a rich Greek shipping family. They are now set to build a mega resort with 11 luxury hotels, golf courses and super luxurious residences on the Peleponnes - and all of that as the world's first emission free resort.
Prior to the ITB in Berlin, our correspondent Guy Dittrich heard views from investors, consultants and hoteliers at the International Hotel Investment Forum in the InterContinental in Berlin. His conclusion: Hoteliers seem to view the credit crisis and its consequences with not quite the same concern as other experts. With 1,850 participants, however, the Investment Forum must now have reached a crucial limit, as much with regard to space as with regard to sense. On the fringes there were many negative comments, no least that amidst such turbulence it's not even possible to find the person forming the purpose of the visit let alone hold a meaningful conversation.
So much and more today - more exciting news next week!
Yours, Maria Puetz-Willems
Editor in Chief
Your comments? maria@hospitalityInside.com