Editorial
Dear Insiders,
Digitalisation is turning employees into throw-away goods. The fear of losing one's job means greater insecurity, increasing project work means more stress. This puts health at risk. "This is even true for highly-qualified IT experts in Silicon Valley, e.g. in the gaming industry. They work themselves almost to death until the game is finished. Then, a new team is put together," Stanford Professor Jeffrey Pfeffer criticises of the meanwhile dramatic trend. Companies protect polar bears, but not their own employees! Baerbel Schwertfeger returned to interview the inconvenient expert who two years ago complained to us of the misinterpretation of disruption.
If you read Sarah Douag's article on the first European Sabre Exchange Event in London last week, you'll learn a lot about the new tools the tech company intends to keep ahead with. It is working towards ensuring the guest experience takes place in real time – by ensuring that the guest receives his or her personalised offer ad hoc.
Hotel assets have finally made their way into the heads of the real estate giants! At the recent German real estate summit, the sector was praised, also because it is helping to push the trend towards increasing urbanisation, e.g. with extended stay and serviced apartment offers. Beatrix Boutonnet reports.
AccorHotels can be relied upon! The French hotel group announces new hotel concepts and makes headlines almost on a weekly basis. "Flying Nest" is the name of the shoe box surrounding the bed which is now celebrated as new pop-up brand. Have you noticed that almost every AccorHotels innovation – like this one again – is the result of collaboration with French partners? AccorHotels meanwhile has its fingers in many pies – now also in neuromarketing! Yesterday's headlines said: Now they're taking the pulse of their luxury guests in order to find out what these want... WOW. What have they done up to now? I will once again have to take Accor's pulse...
Austria's pulse is racing because the government has again cut VAT to 10%. At the same time, hotel transactions are again rising in the Alpine country. The global Serviced Apartment market continues to grow, and Dorint Hotels – boosted by more capital from its parent company Honestis AG – is able to look forward to expansion; Honestis Chairman Dirk Iserlohe reports the details and Dorint presents its new Director for the Nassauer Hof in Wiesbaden.
This and much more in this week's edition; as the first half of the year comes to an end, we also have lots of news on job changes. For the coming week, I hope you can find a few quiet minutes to think more about your employees and less about polar bears…
Maybe next week we'll know more about HNA and Radisson Hotels. Now the Chinese suddenly want to sell all shares. The tragic, fatal accident of HNA's co-chairman Wang Jian in the Provence, France this week certainly does not contribute to speeding up the processes. The 57-year-old fell off a 15-meter-high cliff while taking pictures. He held 15% of the HNA Group shares.
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 UNWTO has just announced that tourist arrivals have again beaten forecasts for the first four months of the year - in particular in the Asia-Pacific region, immediately followed by Europe. UNWTO had expected 4-5%.
Overtourism therefore remains a hot topic. The buffeted island of Mallorca has now set the course – towards luxury and quality tourism. Susanne Stauss reports on old town villas and finca hotels, magnificent hotels without golden bath taps, but with a whole lot of charm. This attracts a very different sort of tourist than seen at the nightlife area "Ballermann".
Travellers are becoming more demanding everywhere. The buyers of large bed contingents are also finding this out. Two important incoming professionals, DTS and Eurotours create travel packages for mega clients from their base in Western Austria. Here too, everything is becoming a lot more complex, including short-term bookings, Fred Fettner has found out.
Italy looks forward to a new super season after a mega travel year. The problems remain the same though. Hoteliers' chief complaint remains the immense tax burden, which meanwhile consumes up to 70% of income. Massimiliano Sarti once again listened patiently to the industry association Federalberghi and was told of the small progress.
Italy's Costa Smeralda is the home of some trophy assets par excellence. The owners are now embarking on a million-heavy facelift and fine-tuning exercise of the four hotels and are also investing in the infrastructure of the paradise once created by Aga Khan.
The fruit still hangs high for the German Dorint Hotels, but with its turnaround after the years of crisis, the 4-star group can again hope for rosier times. After many years, Dorint again invited journalists to a press conference on Wednesday. It’s good to see that the new manager duo Karl-Heinz Pawlizki and Joerg Boeckeler – unburdened by the group's history – have just rejected an excessive lease offer on the hotly contested Munich market.
Hacker attack on Fastbooking: Hundreds of thousands of customer data have been hacked on AccorHotels' booking platform, it became public yesterday. Sarah Douag spoke with Fastbooking on reaction and defence. The hotel industry is one of the "soft" targets.... It can affect anybody any time.
The French network of small hotels, Logis, is a big name in France because of its presence with 2,200 members. In Germany it's just 20. Now, the new boss wants to close the gap and at the same time is also focusing on Spain and Great Britain.
The EU Package Travel Directive, which enters into force this Sunday, has annoyed lots of people, especially the Austrians. They have not been able to enact legislation to implement the directive into domestic law on time for 1 July. Business travel life is less complicated. Never before have German companies spent so much on business travel as they did in 2017. But: All in all, there are fewer travellers and fewer overnight stays inland. In the News Mix: Fattal Hotels officially confirmed the takeover of the Dutch Apollo Hotels yesterday afternoon; we had announced the deal.
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 colourful fountains in the hotel's own lake are 30 metres high at Kempinski Gravenbruch/Frankfurt – the Dubai Fountains send their regards. Yesterday, the water, light and colour spectacle was activated. The new attraction can be accessed publicly.
Data and especially the flood of data are pushing hoteliers over the brink … But they can no longer do without them either. The Vice President & Chief Technologist at IBM Watson from New York differentiates between quantity and quality of data and encourages people to learn more about them. The synergies become apparent quickly, also in the hotel industry. And he advises inexperienced hoteliers, which technology they should use at the beginning. Rob was also the source of inspiration at our HITT Think Tank in Berlin, two weeks ago. This was the ideal opportunity to ask this top-class and rarely available expert some questions after the event.
Since June 1, AccorInvest and AccorHotels are officially separated. Laurent Picheral, Deputy CEO Europe & CEO Central Europe with AH, wanted to explain some details about the new role of AH only afterwards – which you will be able to read today. AH provides recommendations now and is no longer an operator. The employees and the outside world have to realise this from now on.
Because of the topicality, we have to take a close look at AccorHotels today. Bazin, a big fan of Airbnb, opened a backdoor to the sometimes hated and sometimes loved rental platform: Airbnb and the channel manager Availpro started a partnership for the distribution of boutique hotels. Availpro is a subsidiary of AccorHotels. The hotel chain provides its statements, but we have our own thoughts concerning this topic.
If Alexa for Hospitality is to move into hotel rooms now, what will become of privacy in these rooms? Most media hype the initiative launched by Amazon and Marriott; we, however, remain more reserved concerning this digital hospitality assistant after we did our background research.
A novelty in the much sought-after and highly competitive market of Serviced Apartments is a rate radar now. At Austria Trend Hotels, a new and expanded management body indicates an upcoming expansion; and some new figures about how World Cup tourists are stimulating the Russian hotel market during the World Cup.
Have fun "deep learning" – to put it in tech language …
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 HospitalityInside Think Tank has been launched! After a relaxed start in the 25hours Hotel Berlin on Sunday evening, our excursion into the world of Emerging Technologies was accompanied by sun and a fresh wind on Monday. As the seminar ship docked again in Moabit in the evening, a lively and engaged group enjoyed heated discussions and were burning to continue debating the issues in future.
The HITT concept was successful and the anticipated "creative chaos" was certainly there... More in our short summary today with the first photos and videos from the event. HospitalityInside thanks the eager participants, high-calibre speakers and the open-minded and experimental sponsors! Only together was this unique event possible. We will continue with the HITT.
From an editorial perspective, this was a short week for us. All the same, we're back today with interesting news: From an editorial perspective, this was a short week for us. All the same, we're back today with interesting news: The article this week from our regular contributers on legal matters at Arnecke Sibeth Dabelstein looks at the subject of digitalisation.
Through the "Tenancy Contract by the Click of a Mouse", the legal procedure for concluding a tenancy agreement can now be sped up online, also in Germany.
The online world makes many things simpler, even the search for a pet-friendly hotel. Take a look at the sites of the two specialised dog OTAs which our correspondent Macy Marvel presents today. You can collect bonus points with the "Petpoints" loyalty programme, reserve dinner for you and your dog and shop for pet accessories online. Everything is possible.
This is what Hotelbeds must also be saying. The global bed bank which today connects 170,000 hotels with 60,000 intermediaries intends to gain even more customers from the large hotel OTAs through customised products and services for the hotelier and the customer – and not only for the customer. CEO Joan Vila is even thinking about a blockchain-based database, Sarah Douag has found out.
AccorHotels want to revitalise their own ageing low budget brand F1 through the French Dalmata Hotels. IHG has already given birth to a new brand through which conversions can be accelerated. I didn't know that conversions only work depending on a brand.
And another funny idea is that of taking your car with you to your hotel balcony. Susanne Stauss has asked about the new CarLoft hotel details. Also interesting is the study finding that interest in travel to developing countries is again on the rise.
We wish you a creative 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,
Germany and Dubai today have something in common: In both markets, the boom has forced out wild shoots, and both are suffering from a flood of brands and oversupply. In Germany, Susanne Stauss and I have also noticed a certain amount of uncontrolled growth: Not in every business using the description Serviced Apartments are Serviced Apartments actually to be found. The same is true for hotels. Investors/operators do what they like.They produce "miracle mixes" – we'd describe them more as deceptive packaging. We present three such examples today.
Poor guest, how deceived you will be... But in the end, the investor and operator only deceive themselves. Such brand chaos and false promises place the value of the real estate at risk, our expert Prof Christian Buer from the University of Applied Sciences, Heilbronn, says. The next crisis will be bad.
The new Kempinski Emerald Palace on the Palm in Dubai will be a copy of the Palace of Versailles, a palace of gold and marble complete with restaurant by star-chef Alain Ducasse and a concert lobby. With this clear "statement" for an absolute high-end product in Dubai, Kempinski sharpens its profile among luxury hotels and prepares itself for the anticipated crisis – just as Jumeirah is doing with its recently officially presented its upscale Zabeel brand and 3-star Zabeel MINI House. Especially the colourful, cheerful and uncomplicated MINI shows the change in Jumeirah and in the destination. That's crisis protection in Arabic.
WeHotel is still developing its market. The common booking and loyalty platform of Jin Jiang and Pateno Hotels already serves 100 million customers – an ideal pool to test new technologies and services, e.g. with self check-in or the sale of extra-services such as purified air in the room. WeHotel is working on the application of new technologies – also to save on labour costs.
The knot that had previously surrounded HNA/NH has been untied this week. The Thai company Minor will have to put billions on the table if it's to achieve its target and acquire the Spanish hotel chain completely, which is more than twice its size. This week, it has acquired a 25.2% stake – for 619 million.
At the same time, AccorHotels CEO shocked with the statement that talks are underway with Air France regarding an equity participation... Why should AccorHotels be interested in a loss-making airline with terrible reputation? Is Bazin looking to burn money instead of multiplying it?
Airbnb, on the other hand, is doing everything to keep its money – that is, to not pay tax. Sarah Douag has summarised the deals the platform has concluded with various cities and talked to Airbnb-critic Murray Cox. He says the company remains just as opaque as it always was, despite all the talk.
This and more in today's edition. Enjoy reading!
We look forward to our first Think Tank in Berlin which will begin on Sunday evening and will dive deep into the subject of "emerging technologies” together with some of 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,
In future, man and machine will be a pair. The bosses of the Sabre Lab, based in Dallas, are certain of it. The experts are working on ensuring that both get on well. Philip Liken, Director of the Lab, and the Research Director Timothy Hagues together with Richard Wiegmann, the CCO EMEA from Sabre Hospitality, explain today just how their own work has changed and why they sometimes hesitate as regards many start-ups and certain new technologies.
The interview is also an introduction to subjects which will form the focus of our first think tank on 10/11 June in Berlin. I must say, I find it extremely pleasant that we have partners on board – like Sabre – who are prepared to discuss and propose contents without an attempt at product PR. Only this brings investors, operators and suppliers forward in their search for solutions. In the sense of transparent, faithful reporting, in the context of HITT we refer to the respective role of the conversation partner in focus articles.
What would an event be without last minute changes? Bryson Koehler from IBM Watson had to cancel. He will be replaced by his colleague Rob High, Vice President & Chief Technology Officer from IBM Watson and Cloud Platform portfolio in New York. More on this on page 1.
Again and again, experts stress that success is about not missing a trend, about finding the right timing and benefiting from this. Data reveal here the enormous potential harboured by the business guest looking to expand his business trip into a leisure experience. Sarah Douag interprets market data from Phocuswright.
The potential is also great in Romania. Using tables and assessments from market experts, Macy Marvel makes clear what hotel operators are present and where and where there is still room for new projects. There is meanwhile also a demand for new quality hotels outside Bucharest.
And in the news this week: According to the STR Data Analysis, Europe has come through the year 2017 well. Tourists have returned everywhere. Germany remains stable. Despite the falling number of transactions, the hotel market continues to grow and with it the average value per room, as one large investment company has noteld.
Business travellers love bonus points and at the same time fear intruders in their hotel rooms. This was the finding of a global survey. Austria is making headlines with the next theme hotel group: Waldness ("forestness"). And last but not least, Deutsche Ferienhausverband is pleased to announce huge revenue increases among its members. TUI, on the other hand, is less pleased by the recent negative headlines on its flagship resort Castelfalfi in Tuscany.
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 holidaymakers are happy about it, the industry is not: In Austria, chalets, alm and stadl villages are just popping out of the mountain meadows. Real estate and construction companies are joining the business, also from Germany. This way, the competition for pure hotels is increasing even if some hoteliers are building chalets themselves as an addition to their offer. The number of overnight stays of commercial holiday apartments, which are second homes in many cases, increased twice as much compared to the other accommodation segments in Austria in the last winter.
This sounds very similar to what we reported last week – that the real estate and construction industry is also heating up the segment of Serviced Apartments, also with dumping rates. If you look at the examples and the websites and especially the pictures of the chalets and mountain villages presented today by Fred Fettner, you can see immediately, where a dedicated hotelier and host is in charge and where a yield-driven builder-owner.
Many are talking about start-ups, a study provides figures now: In the last 10 years, more than 1,600 start-ups were globally founded in tourism, one third of them in Europe. The hospitality industry is the most wanted among start-up founders, but Europe is not the most preferred region for investors. Sarah Douag explains the development of the start-up scene and also presents three new start-up businesses.
Foreign investors love Germany, because they love the clear legal framework. This is, what I hear repeatedly. By the same token, lawyers tell me about totally frustrated newcomers to the market, who are dumbfounded, when they learn the details of German employment law, for example. For them, our expert Dr Anton Ostler from the law office Arnecke Sibeth Dabelstein has summarized German employment law today.
While Airbnb approaches the hotel segment, Booking.com attacks Airbnb's apartment segment with its newly founded Home Division. In order to do so, the OTA simply headhunted the Airbnb's EMA Director. Sarah Douag heard Olivier Grémillon, master of five million flats and apartments at Booking.com, talk in public for the first time.
It is hard to understand why Minor International only slightly increased its stake in NH Group; this only leaves room for speculations right now. The "European Tolerance Talks" in Carinthia had a slight touch of a spectacle, where the topic of overtourism was being discussed. It became obvious that this topic ends – very intolerantly – where the self-serving mindset of hoteliers and destinations starts. Food for thought for the upcoming hot travel season.
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 EU Data Protection Regulation, effective from June 2018, is keeping everybody on their toes. We asked the experts of the US franchise chain Choice Hotels how they have dealt with regulation up to now and how it will now organise data communication between two continents seemingly at odds as regards data protection. Meanwhile, HOTREC has asked the EU for mercy and to delay compliance for medium-sized hoteliers.
These are times in which entrepreneurs and top managers need daily massage breaks to ease the tension of their souls. That really would be luxury. "Soul luxury" is indeed the name for the new luxury trend, and so we have asked luxury and lifestyle consultant Claudia Roth and the Horwath HTL consultant Emanuel Tutek how business can be conquered with this mega trend. Both have together compiled a report which explains the core of soul luxury – and have today made this available to our readers ahead of general publication.
Just how hectic things have become on the market is clear for Serviced Apartments. Residential housing has now pushed forward into the segment with mega complexes and compact micro-apartments at dumping prices. The niche is taboo. Now the big players are in on the game. And so also lots of people who have no idea about operations. Anett Gregorius explains the new and dramatic changes in the Serviced Apartment sector; the annual Market Report compiled by the Berlin-based consultancy will appear once again over the next few days. The hype regarding transactions also fits well here: Of the EUR 525 million that investors have invested in Serviced Apartments in Europe, almost half of it will be spent in Germany.
In Italy, tourism outperformed national economic growth last year and even Greece is posting new records. In Essen, Germany's hyper-dynamic Novum Hotels officially launched its lifestyle brand niu, a colourful playground for the new generation. Zurich Tourism has now also concluded a tax deal with Airbnb: The platform will automatically levy a City Tax on guests and forward this to Zurich Tourism. Whether Airbnb invoices correctly, Zurich Tourism is not able to check. I can't believe it! And even worse: In return, Airbnb also becomes a member of Zurich Tourism.
I wish a few actors had taken more time for consideration!
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world
Dear Insiders,
Today, it's all about chances, opportunities, possibilities... The world seems full of them, most of which are driven by the enormous progress in technology. In future BNP Paribas will present real estate to its customers by Virtual Reality; the initial tests were a great success. Researchers believe VR will be the next big revolution after the smartphone. But caution: VR impacts on people's behaviour because the brain can't separate reality from fiction. Though this can also boost revenues, especially in the dream factory tourism. Baerbel Schwertfeger describes the trend - how you can now sit on the sofa next to a monster, whilst robots fall out of the ceiling...
Italy still hasn't reached 2007 levels as far as real estate prices are concerned. This screams with potential. Indeed, Italy is only slowly attracting powerful capital providers from abroad. In parallel, more and more hotel operators are presenting their concepts, as a forum in Milan made clear. Behind the scenes, there's a lot happening, our Italy correspondent Massimiliano Sarti says.
China's new Culture and Tourism Ministry sees its opportunities in outbound tourism. By allowing its citizens to make more trips abroad, the state is increasing its soft influence outside China – and again sees where it can make new hotel and tourism investments. Recent regulation has admittedly brought the costly hunt for trophy assets to an end, but not the desire to make investments, our China expert Prof Wolfgang Arlt says.
From the news this week: The MICE market in Germany is growing, as the annual study before the IMEX in Frankfurt next week revealed; technology means even smaller meetings are becoming even smaller here. Mallorca's tourists pay twice as much tax in high season, Austria's luxury hotels in winter sport destinations have increased their RevPAR massively in 2017, and TUI announces that "all trends are intact" in its semi-annual report. Also, the many mergers play into Global Hotel Alliance's hands in establishing a stronger brand alternative. And our news mix from the Middle East reveals what huge possibilities the hotel industry has there.
The next big opportunity to understand the possibilities offered by technology will come from our HITT Think Tank in exactly four weeks' time. Our seminar ship in Berlin will set sail with representatives from renowned companies from all across the world of hotel operations and hotel real estate. Would you like to be on board? All information on our Page 1 and at www.hitt.world.
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,
Moevenpick Hotels will not be AccorHotels' last acquisition. The new deal worked because the two shareholders of the Swiss brand currently have other problems. Billionaires are also thankful for pocket money in difficult times, it seems. The bridge from Paris to Zurich passes through Riyadh, to Prince Al-Waleed. Meanwhile, it's become part of the monthly routine for Accorians to keep lookout for "new business". This not only means new hotel groups for acquisition, but also tech and service companies which supplement the hospitality industry, Laurent Picheral, Deputy CEO AccorHotels Europe, explained to us yesterday. CEO Sébastien Bazin already has new ideas – and still EUR 1.5 billion in the war chest. Hopefully he won't forget the operational implementation of the new sister hotel out of sheer creative distraction!
Marriott, the giant from Bethesda in the US, has been almost silent since the Starwood acquisition. Over recent months, staff have partly left little uncriticised when it comes to Marriott, which otherwise refers to its employees so lovingly as "associates". Even more informative then was the conversation with Reiner Sachau, COO Europe for Core Brands in Munich. "These are not normal conditions for us," he says of the situation since the merger. His region gained 176 hotels overnight from Starwood. Since then, Sachau has been "on the road” and in 18 months has managed to speak with all owners. I take my hat off! His words also show what an acquisition ultimately means. AccorHotels should speak to its colleagues.
Hoteliers that don't have operations under control will be whisked off on a rollercoaster ride. This is the fear in Dubai: RevPAR there is pathetically low, supply is growing and growing and there is no end in sight. So the success-spoiled Arabs are keeping quiet again. Where there's no sparkle, there's no communication and no critical questions. Although – a few superlatives were again announced, but the city urgently needs these as bait. Otherwise, the beds and the cash registers will remain empty before 2020 – because fixed costs consume profit. By the way, food waste is 50% higher during Ramadan, an expert has found out. He recommended waste management as part of the future cost control strategy. Astounding that he was allowed to speak about this at the ATM.
And other news: The EU is contemplating charging every British national entering the EU a fee. If this happens, the tables will presumably be turned again... This and more in today's edition, whose contents move between ecstasy and fear of the future.
And an aside on a personal note: Our HITT community is growing, we look forward to the Think Tank on 10/11 June in Berlin – and also to your registration. I'm still missing a few names.
Yours, Maria Puetz-Willems, Editor-in-Chief
Your opinion? maria@hospitalityInside.com
Follow us on LinkedIn / The Think Tank www.hitt.world