Editorial
Dear Insiders,
Two industry greats celebrated their birthdays this week: On 15th August in London, Moevenpick founder Ueli Prager turned 92 - in Moevenpick's 60th anniversary year. Annemarie Steigenberger also celebrated her 80th birthday yesterday together with her family near Rome - in the 79th year of the Steigenberger hotel group. hospitalityInside.com wishes many happy returns!
Someone else congratulated Ted Teng, the new CEO of Leading Hotels, from New York: Fred Kleisner, CEO of Morgans Hotel Group, was Teng's superior at Wyndham. He sent the following to hospitalityInside.com: "Ted Teng is a perfect choice to take Leading Hotels to their next level - He has a broad rage of talent and should not be "branded" in any way. Ted is both a strategic and tactical thinker Leading Hotel is blessed to have him at the helm!" I was fortunate enough to meet Ted Teng for the first time in the informal surroundings of the last European meeting held by the Cornell Hotel Society in Vienna. This autumn, we'll meet again, this time in a more formal capacity. More then.
One reader, who grew up in the hotel industry and who today is a self-employed hotel marketing professional, commented on the serious complaints of "exploited" staff in our recent article on employer rankings with the words: "That was no different in my day either. The better the hotel, the worse the staff conditions."
Perhaps a few employers have learnt a thing or two from the article. Today, our correspondent Baerbel Schwertfeger takes a look at cross-industry employer competitions. And has found only two hotel groups willing to take part. Yet both of these speak of huge image improvements, also in respect of existing staff. All the same, colleagues urge caution in the choice of the right ranking.
Many speak of "green" or "environmentally friendly" labels. Today, we explain what exactly is behind the American label LEED and how the new quality certificate for sustainable in Germany will look like.
In this week's edition, we also take a look at a trend in real estate development: the three-way relationship between owner, lessee and franchisor. More and more global players concentrate efforts more closely on pushing their own brand - leaving the operation of the hotels to "nameless" hotel groups under franchise agreements. We took a look at the model and asked the parties involved for their opinions.
Enjoy the read!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Ted Teng is the 6th President of Leading Hotels of the World since the association was founded 80 years ago. Statistically, each President was in office for 13.3 years at the head of the marketing association. The face and origin of the American with Asian roots indicate new momentum. The 52-year old looks back on a classical chain hotel career: Sheraton, Westin, Starwood, Wyndham. In addition, he knows America and Asia like the back of his hand and he is an expert in brands and real estate. Therefore, everybody is anxious to know what "the new one" is planning to do with the individualist private hoteliers at Leading... Jean-Jacques Gauer, Chairman of the Leading Executive Committee, will familiarise Ted Teng with the association - and afterwards, he will think about his withdrawal, as the well-known Swiss hotelier revealed in an interview. Then it will become exciting once more; finally this position is among the subtly influential ones in the global luxury hotel network.
The concierge services also build on this network in the end. The "wish managers" know no limits, but they definitely feel new trends: ever more guests are willing to pay more for services. Leading Hotels observe this trend with respect to their Loyalty Club, and a concierge agency in Frankfurt construed an extensive business model for private and business customers based on it. Concierges are becoming "life coaches" - and are creating new customer relations beyond the hotel borders. A trend that is slowly taking shape.
Another quite negative trend is also on the rise: an increasing number of employees are complaining about their employers and hotels online and in public. They describe screaming housekeepers, talk about mobbing and exploitation. The hoteliers themselves react rather helplessly towards these anonymous accusations, as our editor Baerbel Schwertfeger found out. But what is permitted and what is contestable in legal terms? A complicated issue: read for yourself.
Compared to that, Seminaris Hotels are in rather calm waters. A new article in our "Small chain" series. And Managing Director Guenther Strube shows once again that it is possible to make a good living in the market niche with clearly distinctive seminar and conference hotels.
And you will find several interesting issues in the smaller articles, too...
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? maria@hospitalityInside.com
Dear Insiders,
Today, on 8th August 2008, the registry offices will be full and many hotels have arranged wedding parties. The unique combination of numbers is the reason for couples to get married and not superstition. This is different in China. For thousands of years, the number 8 has been dominated by mysticism in China: This is the reason why the Summer Olympic Games start today, on 8th August 2008, at exactly 8:08 am and 8 seconds. The magic number stands for "no problems" or "success" and also "wealth". As such, the hotels in the land of the rising sun still have the chance to improve their weak numbers. Latest US statistics report a decrease in occupancy and in RevPar for the first half of the year.
When there are hotels, there is also a need for staff. In the whole of Asia, millions of employees are needed, and the training of the junior staff as well as managers is a sensitive topic. Today, the Dean of the Cornell branch in Singapore speaks about the situation in Asia and the courses offered by her university, where a Master course is also suitable for western employees.
In October, Singapore will be the venue for the first "ITB Asia". As we are a media partner of this trade fair premiere, we would like to re-emphasise the added value of this trade fair week, which incorporates not only one but four events revolving around the topics technology, MICE, leisure and business travel.
A study carried out by the Lausanne Hotel School show that the ideas of a new generation of hotels can massively change the hotel product. The school's students "connected" the guests with each other and used the intranet to re-vitalize the hotel. This is brain food for established hoteliers!
Just as the students use technology as a vehicle to achieve a new quality in dealing with guests, spas already belong to the hotel sectors where the staff quality plays a decisive role when it comes to the turnover. Our editorial expert Judy Singer, international spa consultant for 25 years, gives concrete tips as to how hotel managers should deal with spa employees.
German health spas have not reached the "software" yet. The majority of them still are absolutely average when it comes to strategy, offers and infrastructure. This was the result of an analysis carried out by the Treugast consultancy: Its health spa ranking speaks volumes. Treugast presented its first ranking at the ITB; at that time, due to our ITB commitment, we only had little time to address the details of the ranking. We would like to provide this information in today's article. And the analysis of Treugast is more detailed and concrete today as well.
I wish you a good week filled with Olympic records!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Next Friday will see the beginning of the Olympic Games in Beijing. The Olympic torch has already cast many a shadow, and now it looks like expectations of the hotel industry will not be met either - at least from a western point of view. Beijing has too many beds, even if they should be sold out during the Olympic Games for many days at premium rates. Whist reviewing the individual elements of our article on China today, I get the impression that the Middle Kingdom will soon be a hotel kingdom of average, and hoteliers will probably be involved in price wars at dumping rates much quicker than elsewhere - due the general conditions for travellers in China being far more difficult. But it also illustrates the ever-returning madness that has investors building only due to a single event, and then probably putting all the blame on the operator.
Perhaps, the Chinese would have been better off building the mobile rooms of Travelodge from the UK. This new hotel type comes to where the guests are, i.e. the event. They cost less and probably cause less damage. Anyway, we will keep the bed in the box "under surveillance".
How flexible are investors and operators when it comes to designing an agreement? Hotour Consultancy tried to find out with a diploma thesis. The result is quite sobering, as you might have guessed. An investor remains an investor and an operator an operator. And the figures have confirmed this fact. Read for yourself!
In Austria, hoteliers have laid the foundations to ensure that the winter sport destination of Serfaus enjoys a successful summer season. At destinations that will definitely have to deal with climate warming, Serfaus proves to be a role model.
You can find further "hot" news in our small news...
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
Are your BBQs in demand, too? Barbecues are becoming increasingly popular this summer, says the Institut Allensbach in a new survey... But that is only a marginal note. There is some news from Choice Hotels concerning expansion and brand development. In order to cover some more ground, the franchise chain is following various approaches. The drawback: even for insiders, things are getting ever more confusing.
A survey of the Munich University of Applied Sciences confirmed findings in the development of the luxury hotel market. An interesting fact: when it comes to defining luxury, chain hotels put more emphasis on technology, while individual hotels set greater store by personal service. Burkhard von Freyberg, who has been working as a freelance consultant since the turn of the year, analysed this in collaboration with the Munich University of Applied Sciences.
hospitalityInside.com introduces the new "Newcomer" column today: in this section, we will introduce people who have changed positions or slipped into a new role or who have newly entered the market. They may be company consultants, real estate developers or even young chairmen - like Markus Semer: 32 years old and Strategy Chairman of Kempinski Hotels since May. He "translates" the visions of CEO Reto Wittwer incorporating them into the planning of the group.
A newcritical view of existing tourism architecture in our cities and towns would benefit all parties involved, says leisure time researcher Felizitas Romeiss-Stracke. She knows that the travellers have increasing demands regarding the architectural design of travel destinations. She calls it "depression architecture" which confronts travellers nowadays. In her new book, she demands that the design of buildings, places and areas lead to a plus in competition for tourists.
And as summer time is also holiday time, we are presenting a new judgment about an old question: Are parents allowed to take unused holiday even after parental leave? Our legal expert knows the answer.
Have a successful week.
Yours, Maria Puetz-Willems
Editor in Chief
Ideas? Comments? maria@hospitalityInside.com
Dear Insiders,
The gas coupon was only meant to be a PR gag, but now it turns out to be attracting guests in weak times. With this idea, a hotelier is tapping the pulse of the guests. We have asked tour operators and hotel groups about the effects of the increasing gas and kerosene prices on German travel behaviour. 2009 seems to become a tough year for resort hoteliers.
The next summer season is to confirm the new "Hideaways" concept of A-rosa Resorts. After separating from its city hotels, the resort hotel group of Horst Rahe is restructuring its marketing policy starting from scratch. A-rosa's focus on health is reduced.
For the designers of the new 25hours in Frankfurt, the design of the new, unpretentious hotel next to the main station was almost self-explanatory. Their partner, Levi's, gave clear guidelines. The famous jeans brand was customised for young guests and for those who have stayed young; the result is the first Levi's hotel in the world. How do you convert this cult brand into a lobby or hotel room? The Managing Director of Levi's gives an explanation.
The visual appearance of the 25hours by Levi's is the result of an inspiration of creative designers. Big chains opening new hotels "on the assembly line" subject to the constraint of company standards always have strict guidelines for designers. They can select individual modules from so-called "construction kits". Among others, Le Méridien, Best Western and IHG explain their strategies.
The autumn conferences are coming: the International Hotel Conference in Rome is booked up once more. And as a consequence, there will be much accolade for Georg Rafael, who will receive this years "International Hotelier Global Citizen" award. Again, hospitalityInside.com will be media partner of this event.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
Dear Insiders,
A question from an Austrian reader about "the Lindner who is so quickly expanding in Austria" gave me cause to talk with one of the most creative German hoteliers about the dry topic of finance. And so I learned how the family run hotel group had made the transition from lease to management company and had profited from synergies within its own company network - e.g. fund finance. Otto Lindner is among the most communicative hoteliers in the country; a man who speaks freely and with an open hand. Lindner Hotels & Resorts has tripled in size over the last eight years; now the German first class chain has set its sights on expanding abroad.
The biggest hotel group in Austria, Austria Trend Hotels, profited greatly from the Football European Cup and plans on expanding more rapidly abroad - also with partner Motel One at its side. Although ATH's attention falls again and again to the resorts, the Group sees its focus firmly fixed on city hotels in the future, also in Eastern Europe.
That the expansion desires of the luxury chains surpass market needs is being felt quiet markedly by Elmar Greif in St. Petersburg. He first got to know the Tsar city as Kempinski GM; today, he lives and works for the second time in St- Petersburg. Now he intends setting up his own hotel academy.
Quite apart from Russia's St Petersburg, the Ukraine has a dearth of hotels. International brand names are few and far between. Our correspondent Macy Marvel, Professor of Economics at the Hotel Academy in Lausanne takes a look at the hotel market in the Ukraine.
Until next Friday!
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com
The summing up of the European Football Championship in Switzerland clearly shows one thing: the event brought a lot of PR for those who were involved, but hardly better business compared to last year. The exact statistics have not yet been determined either in Austria or in Switzerland five days after the final whistle, but the conclusion of the hoteliers clearly resembles those of the Germans after the Football World Cup two years ago. Hotels in the vicinity of the stadiums were lucky, or hotels, as in the case of the Giardino in Ticino, which served as the team hotel of the Germans and was able to protect itself by contract.
The dribbling of the players has come to an end, and all eyes are now fixed on South Africa and the next World Cup. Well, this is not quite the reach of the world's biggest tour operator TUI with its new resort hotel brand of "aqi". The 3 letters represent 3 stars, but TUI calls it budget. This contradiction will need to be solved just as TUI needs to let its new low-cost hotels not look like too meagre business hotels. After all, it derived its new concept from the success of budget hotels in the cities. The partner gives reason to hope for escape from the cool chain standards: an Austrian family company that has been equipping noble yachts and jets. It remains to be seen whether it will become a dream team or a parallel to the unequal pair of Bill Marriott and Ian Schrager: after the initial euphoria regarding the common new boutique brand, they are kissing and beating one another.
Despite a four-year plan, the pilot project of the CitizenM container hotel in Amsterdam shows that not everything was taken into account from a guest point of view. Guy Dittrich, our architecture and design specialist, stayed at the new luxury budget hotel one day longer than me, and took a close look at the building and interior.
"After years of rising transaction volumes, it seems that we have reached the limit," resumes Markus Beike, Director Germany of Christie + Co. one year after the beginning of the credit crunch. He draws a conclusion in figures. In the reports, the most recent statistics about the current hotel real estate development in Europe fits perfectly to this: the pipelines of hotel chains are decreasing!
The GDI-Institut in Switzerland is also closely following the trends. We have talked with one of the two authors of the new "Statusfaction" study: as the social levels are increasingly drifting away from each other, it is all the more difficult to cope with a guest "like Bill Gates". For my part, I find another point highly interesting: the institute exposes bonus programmes to be discriminating! Clear words are still the best... We hope that we managed to point out how things are connected this week as well.
At hospitalitySolutions, you can read today how the IT specialist MICROS-Fidelio sets the course for the future with connections to reservation portals. Enjoy reading!
Yours, Maria Puetz-Willems
Editor in Chief
Your opinion? maria@hospitalityInside.com
Germany qualified for the final of the European Football Championship Wednesday evening. This is the reason why we are summing up the first part of the mega event: What did the European Football Championship bring the tourism and hotel industry in Austria? Disillusionment, noted our correspondent Fred Fettner. We will find out for you by next week what things look like in Switzerland at the time of the final.
The twitching of the Swiss Rosebud Group could be described as a long lasting, clumsy flank game. It finally sold two of its hotel pearls to an Arabian company. In doing so, the way for these hotels could be clear for a game with definite strategies.
The psychological pressure of taking a penalty is comparable to the efforts of the team of CitizenM. For four years now, the company from the Netherlands has worked on the concept of this fascinating luxury-budget design hotel. One year ago - as it was mentioned to us on the sidelines - bad boys of the industry tried to steal the know-how. No wonder the management is not willing to publish detailed figures about the development and building. But I am sure: this penalty found its target!
The concept of Elke Schade, Managing Director of the Neue Dorint GmbH, resembles the tactics of a highly sensitive coach. She wants to win through consolidation, consolidation and consolidation again. And all this without losing touch of the needs of the single player.
The kick-off for more intense thoughts about business travel costs is provided by the most recently published business travel analysis 2008 of the Business Travel Association of Germany. This should be all right with the hotels: they profited from the development of the business market last year.
I only hope that we are not in the offside with this week's issues!
Yours, Maria Puetz-Willems
Editor in Chief
Comments? maria@hospitalityInside.com
Dear Insiders,
What kind of funding programmes are suitable for companies in Germany with respect to renovating buildings? Finally, the federal government wants to reduce carbon dioxide emissions by 40 percent by 2020 compared to the base year 1990. Our colleagues of the "hotelbau" magazine looked into the matter of funding heating and insulation of buildings. Today's article including an overview chart stating the funding programmes also marks the beginning of a new content partnership between hospitalityInside.com and hotelbau.
Hotels aiming at increasing the value of their property through quality should also trust in collaboration based on partnership of all parties involved. A discussion panel at this year's "ITB Hospitality Day" already discussed this issue, and Deloitte has now brought it to the table in detail again. Many hoteliers already take the right decisions based on intuition, while the potential for an increase in value is still far from exhausted.
The same is true of two completely different issues, which are rather emotional: marketing via human senses and strategical observation of sleeping as such. Learn from London's noble department store Harrods, which has engraved itself in the hearts and souls of its customers with its unique "Senses" campaign. Brand consultant Kerstin Bestmann took part and comments on the new trend. The British Travelodge chain has hired the first Sleep Director of the world and found out interesting details as a result of analysing sleeping and sleeping habits. This is why a "cuddly cushion" has been recently offered.
The first major spa market study presented at the "Global Spa Summit" in New York a few weeks ago, also deals with the relation between reality and perceived reality. The approach of tackling this issue is worth praise, but caution is advisable with regard to the market figures.
Furthermore, today's colourful issue is complemented by colourful pieces of news.
Yours, Maria Puetz-Willems
Editor in Chief
Questions? maria@hospitalityInside.com