Editorial
Dear Insiders,
Millennials are already marketing history. In future, the focus will be on the "nomads"; people who travel a lot, who are self-employed and work when travelling. The places they stay will be just as trendy and relaxed – like Selina. This young company, founded by two Israelis, counts 27 hotels in South and Central America. Now, it is scouting out Europe, especially Britain and Germany.
Their concept is fully scalable and their processes are data-driven, process-optimised and lean. Whether their leisure-heavy approach works in more urban markets, remains to be seen: The money is to be made with beds and not with rooms. And with more services for which the guest is happy to pay. Selina is another hybrid on the market: "A boutique hotel with the power of a hostel". Selina's self-confidence is great.
You have to be ready for new competitors, just as you are for IFRS 16. From January, the new EU-wide standard shall apply for lease contracts. Listed companies will then be obliged to amend their accounts. Non-listed companies should consider doing this voluntarily, Jeroen Krijnen from PwC Netherlands says. He regularly draws attention when he asserts: The new regulation will raise the debt ratio by 22% in general! Sarah Douag interviewed him.
Entrepreneurs feel a shudder run down their spine here. Guests, on the other hand, love phases of hot and cold – such as those you might experience when you step out of a hot pool and into a cold natural lake, for instance. This combination has meant record visitor numbers for thermal spas in Austria this summer. As well as more revenue. Fred Fettner dived into the reasons.
Will TripAdvisor become the Facebook of the world of travel? Stephen Kaufer’s vision goes some way in this direction. He wants to turn the ratings platform into a community and content platform. In contrast, Wimdu is leaving the sharing economy race: Its owner is shutting down the platform, once a rival to Airbnb. Though young people need places to stay.
As regards the "panic button" the large US chains are now introducing to protect their housekeeping staff, we in Germany can only shake our heads. For this reason, we will refer only briefly to the issue, to document it and to show that although the leap from one continent to another has become easier, but not every culture is the same. In addition: Vienna International and UBM hotels are united by joint venture: Vienna CEO Rupert Simoner now also wants to franchise international third-party brands.
We find ourselves in the home straight for preparations for the Expo Real, which will take place in 10 days in Munich. For this reason, we start today with the annual "Investment Barometer" in collaboration with Union Investment. Anyone can take part in the survey: You can begin immediately with our tool. Click on this link. Take part online! You can also take part at our stand terminal at "World of Hospitality" and have a coffee with us.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Carry on!
Dear Insiders,
The "real estate autumn" has begun and with it increased speculation as to the anticipated economic downturn. It will certainly come, as figures quoted by one CBRE investment professional last week in Amsterdam seem quite unsustainable: In 10 years, from 2007 to 2017, investments in hotels in Europe have tripled from EUR 7.5 to 22 billion. Of all of the world's markets, Colin Low believes Europe to be the only one in which market conditions are round about right. His appeal: Carry on, invest!
Bulwiengesa doesn't see the current situation quite so euphorically. In all asset classes, yields are tanking, only logistics and the hotel industry are holding out. The hotel sector still makes a good figure when it comes to ROI, though is under pressure nonetheless as many new players arrive on the scene. Beatrix Boutonnet compared all asset classes: Decisions for or against the desired asset class must be taken by many investors in the dark...
Tourist destinations and hotels have meanwhile made their way out of the E-mobility fog. After E-bikes on holiday, an increasing number of travellers and holidaymakers are now asking for E-cars and E-fun-vehicles. And Switzerland has created the first holiday road which can be travelled completely by E-car – along a route with more than 20 lakes. And the best thing: You can even earn money with the new E-offers. We have collected some examples.
Choice Hotels has become the first chain in the hotel sector in the US to present virtual payments for corporate clients. A trailblazing step, even if the introduction of such technology in Europe is still awaited. Austria's Supreme Court has handed down judgement: Anybody subletting their home through a sharing platform risks his or her own tenancy. At the same time, Italy has Airbnb & Co in its sights and like other countries now also demands an ID code for short-term rental. The desire for new destinations is growing and growing. Meanwhile, city trips have overtaken the popular sun and beach holiday.
Alibaba from China is now launching a service robot for the hospitality industry - an all-round talent that allegedly can do everything from delivering meals to washing laundry. And it also talks to the guests.
We can no longer shake off China. That is why I recommend you to take a look at the new m2C - marketing to China Conference for Digital Marketing & E-commerce which will take place at the end of January in Prague, though which already deserves your attention. Learn more about Chinese thinking and get to know new partners if you want to build contacts in China, a country with huge travel potential. More on this on page 1.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
There's hardly any other company that so cleverly opens the side door like Airbnb. Now, the profit-seeking "sharing economy" platform has closed a deal with the Paris-based real estate office Century 21. Century 21 is to list the apartments for sub-letting – landlord, tenant and real estate office then share the booking income. Experts place a huge question mark behind the plan though, mainly as regards insurance. The mood at Paris town hall has also changed: As well as pursuing Airbnb through legal channels, it is now also considering an outright Airbnb ban in several arrondissements.
A cross-sector discussion round between "3H" properties gives cause for hope: healthcare, housing and hospitality. There are numerous interfaces here and the desperation as regards digitalisation is similar. Project manager Drees & Sommer got the roundtable up and running. In the end, it was the conservative construction industry that was the bogeyman.
Beach holidays are easy and safe. Alpine holidays are expensive and perhaps also dangerous. These are the images in the heads of many travellers. This was the finding of a survey conducted by the Austrian Tourist Board. In response, the ATB has now come up with inspiring ideas for tourist companies and hoteliers as a means of helping them prevent the mountain holidays fall into irrelevance.
The hot summer drove business in Great Britain, Italians received a cold shower when it came to the beach holiday though – the figures at "Sun & Beach" contracted. Booking.com is pushing its "Experiences" in the US and is catching up on Airbnb. The Spanish Hesperia Group is now provoking Minor in the acquisition process for NH. And Steigenberger Hotels is still busy with the two British deaths in Egypt, a case that still leaves many open questions despite publication of the autopsy results; the media are still doing somersaults.
For us, the Real Estate and Investment Fair, Expo Real in Munich, is moving ever close. Appointments are piling up on all sides. For this reason, we publish today the profiles of our 31 exhibitors and the stand plan for our joint stand "World of Hospitality”. We round off with a mix of colourful personnel and short news. Till next Friday!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
The research carried out by our correspondent Sarah Douag can be compared to a leap into unknown waters: Her first blockchain article submerged her into the dark. She then surfaced to catch breath and went to a pure blockchain conference in Amsterdam. There she spoke to start-ups offering solutions in specific subject fields, e.g. how to check a person's identity, how to link locals up with each other, how to avoid intermediaries, how to track goods and products and, of course, how you can pay with blockchain. She recommends hoteliers to remain attentive and informed and even perhaps make a few tests. Take some time for this compact report.
Compared to this, Hammerle and Huber Hotels are much more familiar subject matter. These family names stand symbolically for committed hoteliers which have evolved into influential mini-groups in smaller destinations. Here, not only children and grandchildren help out, but the owners also have crystal-clear and strict concepts – like the chains. Fred Fettner talked with such multi-hoteliers in Tyrol.
Klaus Lengefeld has given his life to the subject of sustainability, and has assessed destinations and hotels around the globe in this regard. Today, he is an independent consultant and will question future concepts and initiatives for us. We begin with a comparison between sustainability standards for farmers and hoteliers.
Collaboration between hotel groups continues – fear of losing market share is enormous. Now, Louvre Hotels Group is collaborating with the luxury hotel group Lucien Barrière: Both want to expand luxury and attract Chinese guests. Egypt and Greece have this year ensured that tourism figures in Spain have stagnated.
Marriott Vacations is growing – just like Marriott Hotels – through acquisitions: The acquisitions of the Interval Leisure Group is now complete. This move is also newsworthy. AccorHotels has also officially concluded the acquisition of Mövenpick: CEO Olivier Chavy is thus no longer in office. He will now take a year off. The Germans too take too much time off and suffer – from leisure stress! This is the finding of a recent study.
On Tuesday, 13 think tank members met for the 1st post event at Sabre Hospitality in Frankfurt. The discussion surrounding the networked real estate and the networked processes in hotel operations was lively and very open again! Thoughts from the starter event in Berlin could be refined – and have revealed a whole range of exciting topics for the HITT 2019. We are sticking with it!
I wish you a good week, without work or leisure stress....
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Two deaths at the Hotel Aqua in Hurghada have revealed the turbulent media times we live in and how quickly a franchisor can get caught in the line of fire internationally. Press articles in tabloid style and a self-centred tour operator are not helping to calm the situation in this time of crisis. We asked a lawyer how a non-involved franchisor can avert damage from the company. It is still not clear why the British couple died in Egypt.
1+1=3. This formula stands for innovation, at least for Vienna House CEO Rupert Simoner. In autumn, the construction for the first tribrid brand R.evo will start in Munich. Behind the scenes, many discussions are taking place about how to meet the demands of the various target groups of hotel, living, and serviced apartments – via app, via chat, with an individual fridge and croissants, which can be bought at the bar and consumed in the hotel room. A first glimpse into a new concept.
Employer competitions? The business with the seals is flourishing. In the end, it is only about more marketing than substance, as Baerbel Schwertfeger found out. Scandic and Lindner Hotels explain why they participate nonetheless, other groups such as Motel One or AccorHotels are rather tight-lipped. The lack of talents fuels the business in HR, and vanity opens the wallets of hoteliers – just like with most awards.
These pieces of news also concern staff members: After a survey among non-academics, the so-called "Blue-Collar-Kompass" asks companies to describe the team spirit in job advertisements too. If the spirit is not right later on, 36 percent will quit afterwards only because of that. And the Italian Parliament has approved the reforms in employment law, as expected.
The Chinese, who are fond of travelling, set new records in the first half of 2018: 80 million crossed the borders, which is 16.4 percent more than in the same period last year. And Portugal experienced how direct flights to Lisbon caused the figures of Chinese arrivals to explode. Every mobile picture of a trip abroad increases the people's social media status; this is very important to the Millennials, as another survey reveals. Finally, there are new figures and statistics about chains and market developments in Switzerland: The pressure is growing.
Have a successful week!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
We launch into a busy autumn fully recharged after the summer break. 31 exhibitors will once again comprise our joint stand "World of Hospitality" at Expo Real Munich this year, with a destination represented for the first time. We are pleased with the new partners, the colourful mix and the loyalty our partners have invested in us for years. Important: The entire hospitality segment is moving – from Hall C2 into Hall A2. Our stand number is 240. The exhibitor names, further details, also on the conference programme, can be found on our home page and on the HospitalityInside exhibitor profile on the trade fair page.
We are also pleased to be able to announce our next SAVE THE DATE: After the successful premier of the HITT Think Tank in June in Berlin, the second event will take place on 19/20 May 2019 – again in Berlin and again on the ship. You can register for this on the website www.hitt.world or send us an eMail. Our first HITT participants will meet at the beginning of September for the first post-even workshop... The community is working! Expo Real was sponsor partner at HITT and welcomes the fact that we will take up part of this discussion on digitalisation at the Expo Real hotel conference.
In addition to this, those with a special interest in China should make note of another date: On 29/30 January 2019, the first "marketing to China" Conference will take place in Prague. We will support the event as media partner. It will bring together experts from various sectors, East and West, to speak on digital marketing and eCommerce. hospitalityInside subscribers and HITT participants will receive a 20% discount on the conference price. More on this on page 1.
The Chinese are meanwhile part of day-to-day business, also in the hospitality sector. Their strategies are difficult to interpret, which is why Sarah Douag asked China experts why HNA cannot acquire Radisson Hotels whilst Jin Jiang can. That looks like Chinese chequers. We were not allowed to quote every source as various experts fear for their contracts and reputation when expressing critical opinions of the Chinese government.
Tim Davis, moderator of our HITT Think Tank, is himself a specialist for technology and digital economy. He will in future stand at our disposal as editorial expert. He introduces himself today by describing the digital maturity of the hotel sector and listing five technologies which will have or already have a great impact on the hospitality sector.
In the new The Student Hotel Florence, Massimiliano Sarti met the founder of the group, Charlie MacGregor – and learned more about how the young group conceives, calculates and expands its hybrid model. It has no problems with capital, quite the opposite.
And among our news this week there are certainly some that you already know about. As always after the summer break, we catch up on important news in order to keep our archive up to date. New today: Airbnb guests are flooding into China, conversely the Chinese are turning their back on the US. In Germany, the city of Hamburg has introduced a rule "contra Airbnb & Co", including some hefty penalties. Tourism will continue to boom, as the current statistics on the German market shows. This and more today in an especially full edition.
We again look forward to next Friday with you!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
This summer, over 13 percent more Chinese tourists will visit Europe than in the previous season. More and more come as individual travellers – and in future will only head to places where WeChat Pay, Alipay or UnionPay are accepted and where bookings are taken beforehand. Queueing in front of Neuschwanstein Castle for a ticket? That just provokes laughter. Those in this part of the world not accepting the mobile payments used in China will be scrubbed from tour lists. All experts agree here.
Sarah Douag describes who is behind the three payment providers, how their systems work and how difficult hoteliers are finding their incorporation. Louvre Hotels are the most advanced in their use, followed by Marriott and AccorHotels. Sarah also interviewed the Amsterdam-based company NextportChina about how Western companies can expand their online presence in China. Before the Chinese book their trip at all, they read about the experiences and tips from all their friends on the net. "Social commerce" is the magic word in this new game that is placing many western hoteliers under pressure.
And did you know? Conservatives spend more money on their status. Tests with luxury cars, eyewear, headsets – these products all revealed large differences to liberals. Empirical research in France now for the first time shows how political ideology determines the purchase of luxury goods.
And here the weekly AccorHotels news: Sébastien Bazin has acquired yet another brand – this time not in France, but in the US. Not a large, but certainly an important deal. At least he’s keeping his hands off KLM.
The twist in the Hyatt NH Minor game last week seemed odd: Just as Hyatt makes a 100% takeover offer for NH, the former buyer Minor International surprisingly confesses that it had purchased further shares in NH. Is that really coincidence? Hyatt is neither short-sighted nor naive. But it is always creative: Hyatt’s loyalty programme members can as of immediately fall back on the boutique hotel pool of Small Luxury Hotels.
Design Hotels, Hyatt, Meliá and Motel One have published their results for Q2 and H1 2018. Current figures are also available on the new hotel real estate transactions in Rome. And Horwath looks at the underestimated wellness hotels in a study, whilst HRS offers SMEs a free booking platform. Big news from the messenger world: From 2019, WhatsApp will introduce advertising and make companies pay for communicating with their customers.
With this diverse range of subjects, we say goodbye today before our two-week summer break.
Our office will be open again from 20 August, the next edition will be published on 24 August. Because then it’s Friday again.
Yours, Maria Puetz-Willems & the hospitalityInside team
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Eleven months ago, Puneet Chhatwal left Deutsche Hospitality as CEO in order to take on a post in India; a position which is very much in the spotlight: He became CEO of the historic Indian Hotels Company Limited with its flagship brand Taj Hotels. The "German-speaking Indian" has since then been observed very carefully, as our Indian correspondent, Hoihnu Hauzel, reports. At the end of her long interview, we know: Puneet arrived to find lots to do. With a five-year plan as basis, he is now cleaning things up, in particular as regards distribution and digitization. He himself feels likely he's arrived, he is "at home", with Taj and his mother.
Europe and Israel will remain the home of the Fattal Hotel Group and its Leonardo Hotels for the time being. This week, Fattal Hotel Group presented the new lifestyle boutique brand NYX in its core market Germany. A relaxed, colourful and high quality concept that includes burger grill, cinema and music to entire guests and locals alike. The two top managers in Europe, Daniel Roger and Yoram Biton, provided additional facts and figures on the group's strategy.
The new world of work could also improve a lot if companies and employees could put aside old beliefs and define opportunities. The young generations have certainly expressed their demands; in a representative study presented today, Generation Z have revealed themselves to be the most demanding of all. The "beautiful new world of work" has still to be created though. The finding of the American consultancy association ISHC fits well here. According to a survey of its members, the hotel industry should change its recruiting process and invest more in awareness of the sector as employer.
In other news today: In Italy, after five years, new wage contracts have been concluded, in Spain, the KPIs confirm the continued upswing in the hotel industry, and American Express as well as the Global Business Travel Association forecast rising prices for 2019. AccorHotels, Radisson, Scandic as well as the Munich-based Schoerghuber Group/Arabella Hospitality present their current financial results, and last but not least we also have some personalia alongside the usual selection of small news in our mix.
We wish you a good week!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
The keyword "Neigbourhood" is on everyone's lips, the 25hours Hotel Hamburg Hafenamt is now implementing the idea: Starting Monday, the boutique hotel will have a "Conciergerie" and young men in grey-chequered uniform to meet the wishes of guests and neighbours. From its own concierge box, the hotel now provides services – from babysitting and bike repairs to the "restaurant at home". However, the 25hours does not charge money for arranging these services. It is about anchoring the hotel brand in the head of the neighbours.
AccorHotels CEO Sébastien Bazin has placed the idea of neighborhood effectively in the industry over the last two years. Forerunner Claus Sendlinger and his Design Hotels have already talked about it intensively in 2011; our headline at that time was "The pleasant neighbour".
For years I have also been following developments in Qatar on the basis of our regular visits to the Middle East. After the World Cup in Russia ended on Sunday, Doha is now the venue for the 2022 FIFA World Cup, which was the start of my current conversation with Hassan Al-Ibrahim, Acting Chairman of the Qatar Tourism Authority.
For the Qatari, however, the World Cup is only one component of a long-term strategy in which they rely on a diversified hotel industry, on eco-lodges and beach resorts as well as on cruise ships and business events. The tourists should experience the small country authentically; therefore meetings and experiences with locals belong to the program. For the otherwise shy Arabs this is certainly a courageous step. But Qatar must rethink – because the political dispute with Saudi Arabia and the UAE has not yet been resolved.
In Italy, too, the Italians believe, foreign investors should rethink and focus on a long-term strategy. The hotel operators, national and international, at least are pushing into the market – gladly also into the south, where the hotel gap is still large. Massimiliano Sarti has analysed the current worry lines – as well as the latest figures on the congress market in the country and the government's recent attempts to influence illegal layoffs and fixed-term employment contracts.
The EU is now also pressing Airbnb, just as Austria demands a nationwide Airbnb regulation. It is also incomprehensible in Germany that cities like Frankfurt agree to an automated tourism levy with Airbnb, but do not want explain how they control the levy. In New York, the City Council terminated discussion two days ago and condemned Airbnb to release the names or pay hefty fines.
With the slogan "Make Europe Even Greater" AccorHotels has once again set the personnel carousel for Europe in motion – and appointed five new COOs for five new geographical zones. This and more today, enjoy reading.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Five years ago the lean luxury brand Ruby Hotels was launched on the German market. Now its first hotel in Shanghai is under construction and the Munich-based company is 20%-owned by a renowned Chinese partner – and thus by a powerful entity around the fund Ocean Link and Plateno Hotels founder Alex Zheng. Just how Ruby will multiply in Asia without giving up its DNA is explained today by Ruby-CEO Michael Struck in an exclusive with hospitalityInside.com.
With this, Struck implements a further piece of his vision; for what's happening on the German market at the moment though, all you need is a little skill. Horwath HTL Berlin has calculated RevPAR scenarios for the 7 top locations in the overheated and oversaturated hotel market Germany. A few things could begin to tumble here... The sector should therefore get ready! The consultants at Hotel Affairs recommend: analyse, adjust or exit!
Such thought experiments won't please some people, as the transaction figures from the large brokers yesterday confirmed big and expensive hotel deals in the second quarter. The German market stays hot! So why predict doom?
Tourism-dependent countries like Austria are much more sensitive and must question lots of things. Professionals there, for instance, don't like how tourism's contribution to the economy is calculated. Calculations carried out on a volume basis under the motto "the more the better" are now beginning to be questioned. The existing system does not allow international comparison. Professionals demand new and more sensitive indicators.
Marriott is now testing facial recognition, a new Spanish company wants to predict online customer behaviour... As regards guest analysis, more and more things are being set in motion. AccorHotels breathes a sigh of relief: They have now merged their different loyalty programmes for their luxury brands and also announce a new element. The Austrian budget lifestyle brand Harry's Home continues to expand, now also by way of franchise. And purchaser Progros is increasingly turning into a consultancy and now also project manager.
We wish you an exciting week and exciting reading.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world