Editorial
Dear Insiders,
AccorHotels is transforming itself into a real estate company with operations attached. As of today, HotelInvest will officially become AccorInvest and HotelServices will become AccorHotels. That doesn't exactly sound logical, and is indeed difficult to understand – even for those at Accor. Armies of consultants are flooding the company. Susanne Stauss and I have done our best to explain the fundamental changes brought about through this Booster project; lots of questions remain unanswered – though everything is in the shareholder's best interests.
Louvre is now sprucing up its core brand Golden Tulip – strategically clear and with a few catchy ideas. As of immediately, a food truck will be located in front of the hotel and inside guests are able to choose the amenities they require for their rooms personally. Sarah Douag was at the premier in Marseille.
No, it isn't all the Chinese's fault – at least not as far as "overtourism" is concerned. Meanwhile, various destinations are struggling against mass tourism with extremes. For this reason, our China expert Prof Wolfgang Arlt looks at the issue from the non-Chinese perspective, knowing only too well that the Asians aren't making the problem any smaller. He fears an image problem for the entire sector across the globe.
Italy has now introduced an Airbnb tax, much to the delight of the hotel industry, as well as a number of other tax reliefs. France has fined Expedia one million euros for its illegal practices – next to this, Booking.com now looks like the good child. At the Arabian Travel Market in Dubai at the end of April, Qatari officials told us about the imminent visa relaxation; two days ago, they have now made the official announcement to this effect. Upon request, we have now also received an official statement from Qatar on the current political and diplomatic challenges.
In Germany, the accommodation sector drives tourism, which is unlikely to change anything of the core concerns of the sector here – just as in Austria, where OEHV and Deloitte have recently determined hoteliers' main concerns in a survey. Yesterday, the state agreed to pay a bonus for additional workforce. This and much more in our announcements today.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
The Web is learning to speak. "Alexa" and her friends will stand ready to help us as personal virtual assistants on everyday tasks. Privacy becomes an illusion – and many young people, who only go online with their mobile phones, will no longer know about the existence of a World Wide Web. And: Platforms like Booking.com will disappear! Why that will be and why we now stand before the next huge technological leap forward is explained today by Prof Dieter Fensel from the University of Innsbruck in an interview conducted by Fred Fettner.
In a second article, Fred also shows: In future, Artificial Intelligence will determine the room rate! In distribution in the tourism sector – among the tourism associations, the "Destination Management Organisations", the technological fight for travellers has begun. Here too, it's fundamentally about algorithms, which are to drive business. Tourism associations want to form the counterweight to booking portals like Booking.com today.
Corporate PR managers or their PR agents are today on permanent look-out for the flower in the swamp of bloggers. Though they wouldn't choose such negative language the non-professionals convey emotion and provide attractive images of hotels, thereby doing part of the hotel(group)'s marketing work. Follower numbers are for most PR professionals not the decisive factor though. And the boundary between blogging and surreptitious advertising is quite fluid, as Baerbel Schwertfeger found out.
And in other news: Following the acquisition of the Finnish Restel Hotels, Scandic becomes Scandinavia's chain giant. The EU Commission once again makes recommendations for the Sharing Economy. STR and Google have analysed the correlation between search and bookings. TrustYou has discovered what communication channels guests prefer. And German companies have never spent as much on their business travellers as they did in 2016, but they continue to save on hotel costs. Nevertheless, hotels continue to expand. And last but not least Novum has now presented its new signature brand "niu".
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
The real estate scouts are running – from A to B to C. The real estate bottleneck in top cities has prompted interest in smaller regionally important locations. And these need special concepts and specialist operators, developers and consultants report today. Certainly local expertise, local capital and local franchisees can only have a positive impact.
Italy too is attracting investors – those looking for a ROI of three percent and more. That can certainly boost demand, not only because returns are falling everywhere, but because operators in Italy are waking up and breathing new life into their concepts – and are even prepared to discuss contracts.
A turn of an era, also in OTA business: "Europe has the highest online bookings rate in the world," Simon Lehman said, President of Phocuswright at the Amsterdam Conference of the renowned data research company. In three years already, 33% of online bookings will be made via smartphones; today it's 20%. The revolution is underway: The customer has the power!
Just what challenges the sector faced in 2016 is revealed in the new annual report of the European umbrella organisation HOTREC. Its President expressed her thanks on Tuesday evening at the German International Hotel Association for its commitment – and IHA Chairman Otto Lindner appealed to all hoteliers to fight back and to shape their own futures. There were strong words at the IHA's 25th anniversary.
As of this week, TrustYou is blazing a new trail: A gigantic Japanese internet and media company has acquired 100% of the review platform. Co-founder Benjamin Jost is satisfied. With the additional financial resources from the new owner, TrustYou will now be able to grow faster.
The EXPO REAL Munich also continues to grow. This coming October, it is set to burst at the seams. The joint stand "World of Hospitality" is nearly full. For this reason, we again offer a limited number of logo partnerships. The new packages are ideal for all those who want to communicate their brand(s) and need a quiet space for meetings with their guests at the trade fair. Those interested should contact our Managing Director Michael Willems.
And a correction from our last edition: The Dusit Thani Bangkok will not close this June, but in June 2018. Sorry. And: Many thanks for all your positive comments on our reaction to a declined interview with Trump Hotels! We are all agreed!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
hospitalityInside author Macy Marvel was on his way to Washington – and in contact with Trump Hotels – for an interview. The response: rejection. The reason: only if we write that the Trump Hotel in Washington was the "best hotel in the world", we get the interview. Otherwise: "No deal!" And because we are writing this, we will certainly be branded "fake media" from now on. This almost seems to have become a commendation! We look forward to it.
Meanwhile, hoteliers can no longer get away with false decisions in the distribution jungle. This is why it is all about multitasking on multi-channels. And direct marketing. But such campaigns don't work as well in Europe as in the US. Sarah Douag gathered voices from real-life practice at the Phocuswright conference in Amsterdam.
Castelalfi Resort in Tuscany went a long way towards its final concept – a project of TUI, which managed to burn millions of euros over ten years. The main hotel has now opened finally. Massimiliano Sarti took a look.
I was not in Thailand, but the new CEO of Dusit Hotels was in Germany. Suphajee Suthumpun, a career changer from the world of IT, tells us how the both traditional and financially strong luxury hotel group is repositioning itself on its own: the Dusit Thani Bangkok legend will be torn down this month, joint ventures were signed with Japan and China, and there are new models allowing for massive expansion: 48 hotels are in the pipeline. The Thai flower will soon be blooming all over.
Hotel investments in Germany take the biscuit again in Europe in the first quarter of 2017 – fully anticyclical with respect to the overall development. Trump Hotels make a name for themselves with a planned third brand, too. Qatar has been hitting the headlines since Monday due to its current political isolation – and the effects on the country's tourism industry are inevitable. Austria Trend Hotels from Vienna owe their positive development to better reviews in online portals, while Best 3 Star Hotels from Switzerland are first trying to gain ground at home, but also fancy expansion. Germans also managed to modify the EU Package Travel Directive in a way that both travel agencies and hotels can live with.
Have a nice week without fake news!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Marco Nussbaum, Chief "Enabling" Officer of the prizeotel budget design group just hired two "kids" and made them responsible for human resources. The first measure of the 24-year-old was: good-bye to old-fashioned job ads and hello Gen Y speech! This is why prizeotel is attracting its future employees solely with emoji language and via social media. A real move in the conservative hotel world. Please tell me how long it took you to decrypt the new advertising slogan using emoji wording. Good luck!
I brought an article about Emaar Hospitality along with me from Dubai, where Olivier Harnisch has been CEO since March. Compared to Europe he seems to have a pretty laid-back situation: in terms of expansion, he has the green light to take quick measures. His first action was to modify the management agreement model that is typical for the industry. He is looking for investors.
Italy's hoteliers are eagerly awaiting a more efficient and decisive government that would grant them certainty in terms of legal decisions and actions. Business has been performing well in 2017 so far, but basic nuisances like Airbnb, rate parity, taxes and job vouchers are still unsolved. At the Federalberghi annual meeting the hoteliers even wore defying t-shirts to get across their message.
Individual hotels in Vienna are significantly smaller than chain hotels, but more profitable as revealed by a new survey. Gambino hotels opened their first budget hotel under their own brand – a small gem with an experiment: F&B is reduced to a new snack machine that can be operated solely via an app. Those who wish to insert money will starve right in front of this metal box.
AccorHotels is hungry for junior employees: the chain is looking for young people willing to take on a three-year vocational training programme in several brand hotels. A smart idea of the expansionist multi-brand group. In addition, we received a letter to the editor regarding our article on the sustainability year of UNWTO in our last issue: a call to attend more to this topic.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Pierre-Frédéric Roulot, CEO of Louvre Hotels Group, is successfully exporting French savoir vivre to China and wants to bring Chinese flair to Europe. "We have a number of things planned, most of it in Asia, but also in France and Germany," he says. Yet the parent company, the Chinese Jin Jiang Group, wants to wait until autumn before making its decisions – until the elections in Germany are over. A year ago, he spoke with Sarah Douag, now he provides further insights into strategy and market assessments.
B&B Hotels Germany will upgrade its breakfast offer and will make fine adjustments in other areas too, optimising its product and shoring up profitability. The increasing competition in the budget segment – in which many chains already have a stake, some of which have long since no longer provided budget services – demands a more sensitive observation of market and customer behaviour. Managing Director Max Luscher with news.
A land full of opportunities in Georgia. A country blessed by nature and rich in attractions, Georgia, which is roughly the size of Austria, managed to triple the number of visitors it attracted last year. This positively screams for more hotels and rooms, though critical voices are also heard. Macy Marvel with current figures on the hotel landscape and opinions on market potential.
UNWTO has declared 2017 the Year of Sustainable Tourism Development. Sounds good. One academic sees an absolute contradiction here though: After all, the point of the UNWTO is to encourage growth in tourism. Yet at least it sounds like the UNWTO is turning attention to the issue. Fred Fettner's article leaves behind an odd impression.
People meanwhile show no signs of stopping travelling – and so a new study identifies the profiles of the next travel generation. Dubai has announced a new 1.3 billion euro destination and entertainment project - the Marsa Al Arab. Unfortunately, this is directly adjacent to the Burj Al Arab, which in my opinion places the exclusively of the pearl necklace of Jumeirah Hotels in jeopardy.
After the successful start for the first Capri by Fraser, EMEA CEO Guus Baker continues to focus on Germany, France and UK. The German recruitment agency YourCareerGroup has begun to establish an employer portal; we provide details. And HRS has set up a new "Market Place" for hotels and travel managers.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Is the photo from the Hotel Provocateur in Berlin sexist or creative? Will it bother developers and investors or not? The half-naked woman in leather and the grumpy-looking man have prompted us to carry out a small survey: What impression does this picture have on you? The marketing strategists of the recently opened boutique hotel will be pleased that we too contribute to the conversation surrounding the hotel name today – Mission accomplished?
The hostel panel at the ITB hotel conference was an audience magnet; for this reason, we asked Generator and A&O about the profitability of this segment. Invesco Real Estate and Treugast comment on the hostel boom, Max Luscher from B&B relativises it.
Although the skiing season is already over, at least in Austria the discussion surrounding it continues. Whether the marketing methods of American cable car and ski region operators can be copied? Can ski and wintersport fans be converted into summer mountain fans by giving them a season card and extras? Since the glaciers are melting, marketing too must evolve in these matters. And fitting here: In Austria, the first Chinese delegation spoke at a congress in the hope of attracting experts and cable car operators for their aggressive wintersport expansion in China.
For a week already, flights can also be booked via AccorHotels in France. The hotel chain takes off the gloves. Sarah Douag took a serious look and is moderately impressed.
And in other news: Dehoga has let the lawyers clear up as regards improper use of stars and the EU subsidises a study on the health-related aspects of hiking and therapeutic spas in Bavaria and the Salzburg region. And last but not least: with the MICE trade fair IMEX in Frankfurt this week, the German market is once again likely to shine with exceptional results, high demand and its high international standing as number 1 MICE destination.
Personnel news: CEO Stefan Leser of Jumeirah Group is about to leave the company after 15 months only; Frederik Korallus, CEO of Generator Hostels has already left the company as we were told yesterday shortly before our editorial deadline for today's hostel article.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
The hotel world continues to shake itself up and redefine its limits. France shows courage and has passed legislation to force Airbnb hosts to register officially online. Only then, when in possession of their ID number, will they be able to rent property in future. Victory!! The hotel associations celebrate. Amsterdam, on the other hand, is finding it difficult; its recent measures won't have enough of an impact, Sarah Douag says today in her current summary on the topic of Airbnb.
With their new young President Emmanuel Macron, the French have voted in a man who made hoteliers happy with his Macron Law – which forbade rate parity clauses. A new wave of courage appears to be sweeping across France! Let it continue! Here, I extend my heartfelt congratulations, also in the name of all those who are afraid of making a clear statement and decisions.
Such clear statements aren't a trait of HNA, in fact HNA doesn't make statements at all. And so we can only stand back in surprise at the company and affiliate network that the Chinese conglomerate has established and draw our own conclusions from events such as those that have recently occured at Carlson and Rezidor. An update on HNA and a short conversation with the former CEO Wolfgang Neumann, who officially stepped down exactly a week ago.
The hotel industry was the talk of everybody at the Urban Leader Summit in Frankfurt: The current political chaos in the world prompts investors to focus increasingly on security – and more than ever before attention has turned here to the stable asset class 'hotel'. Who would have thought that five years ago?
Europe and Germany remain hot. Also the US third party hotel operator Interstate is forming initial alliances for continental Europe. We reactivate this article from April 28th today, after discussions with Interstate about the handling of leases.
As known for a long time already, AccorHotels is preparing for the sale of its real estate division this summer. Now, it seems a few more shares than originally anticipated will be sold, and rumours are that they will go to Saudi investors. But everything is still open. Venice is seriously thinking of measures to control mass tourism to the city. This and more interesting news today, including some interesting personalia.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
New breaking news from Brussels this morning: Wolfgang M. Neumann leaves Rezidor. His position as President & CEO of Rezidor will be taken by the former NH CEO and today's Carlson CEO Federico González-Tejera. Neumann remains on Rezidor's Board of Directors. Will the merger of Rezidor and NH now become reality?
For those who missed our breaking news yesterday: Kempinski Hotels announced its new management structure giving its regional executives much more responsibility.
Dubai is a phenomenon: From such professional optimists, the Europeans could learn a thing or two. Perhaps Angela Merkel could also provide us with a Minister for Happiness?
Okay, so it doesn't change the facts, not even in Dubai. The entire region is suffering from a fall in RevPAR, only slowly is the fall becoming slowing, though the room supply – especially in Dubai – is growing. And so the city – even in difficult times – is still doing best among the emirates. The glitzy city never stops to attract guests – with superlatives, theme parks, water shows, the new opera and the launch of the first passenger drones... Behind the scenes though, hoteliers are dismissing staff and in 2018, Dubai will introduce VAT for the first time. No wonder that in this bizarre situation, Dubai's marketing company DTCM didn't want to speak to media at the Arabian Travel Market this year; I took an empty USB stick back home with me, no joke...
The Chinese are now to learn to ski: It will be a school subject! The government is spending billions in order to build hundreds of new ski resorts in preparation for the Olympic Winter Games 2020. And so also millions of new skiers might populate the half-empty ski slopes of the world. Professor Wolfgang Arlt, our China expert, describes in his new column the current drive for ski slopes.
A more serious subject is Safety & Security. The corresponding panel at the ITB hotel conference was attended by hundreds of guests. On the podium was Paul Moxness, Vice President of Corporate Safety and Security at Carlson Rezidor Hotel Group, one of the best positioned experts in this field. In a comprehensive interview today, he calls on hotels to fully integrate the issues into day-to-day business. "If people don't think you are safe then it doesn't matter if you have free wifi, people will simply not come", he says. What chains can do – read for yourself the advice from a security professional.
A survey also confirmed that security now also has high priority for corporate travellers. And Italy's hoteliers are worried about the summer season in the wake of signs of Alitalia's insolvency. Austria's Alpine regions complain this winter from a privileged position. And Hilton CEO Chris Nassetta spoke at the "Arabian Hotel Investment Conference" on plans and focal points.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Dear Insiders,
Europe remains hot for investors and operators from all over the world. Two current examples: The US third party hotel operator Interstate is forming initial alliances for continental Europe. Aaron Greenman, Executive VP Acquisitions & Development, provides details. In China, meanwhile, the Dossen International Group has an eye on Central and Eastern Europe. With 1,000 hotels, it is one of the rather unknown regional players active in the West.
Interest in Europe is still high with terror attacks only affecting the specific destinations in which they have occurred. Unfortunately, Paris has just seen another such attack, this time on the Champs Elysées. Yet bookings have not slumped for the moment at least. The city continues to fight and is now focusing on improving its image with a multi-million euro budget and a new strategy.
Developments at Alberghi Diffusi reveal a very special phenomenon. Up to now, Italy has counted around 130 of these hotels which allow guests to reside in restored ancient buildings off the beaten tourist track. All the framework conditions appear to be right, though the Alberghi don't appear to quite be getting off the ground all the same. Massimiliano Sarti explains why.
Maria has fled Europe's variable April weather for the sun of Dubai and reports today on the notable and nervous mood at the "Arabian Travel Market" as well as at the "Arabian Hotel Investment Conference". Dubai is preparing for EXPO 2020. The city remains a huge building site – and continues its romance with luxury. Only a few investors are driving the urgently needed midscale hotels. For this reason, there are discussions – because the gigantic entertainment parks now demand masses of visitors.
Yours, Susanne Stauss, Senior Editor
Your opinion? susanne@hospitalityinside.com