News & Stories

Wiesbaden. The hospitality industry has concluded its budgeting for 2010. Never before has there been as much insecurity as this year. In Europe, the cost-saving measures taken give reason to hope for increasing income while economic conditions remain unchanged. Therefore, the industry rather does not expect revenues to grow. Between the lines of this international survey by hospitalityInside.com there is a clear message: the financial crisis has intimidated hotel managers even more, and everyone fears damaging "shareholder value" through honest statements.

Berlin. At the beginning of October, the Spanish hotel group Abba opened its first hotel in Berlin, which is the first hotel in Germany; a second one is to follow in Munich in 2011. The small chain remains faithful to its goal and relies on top locations. "Even if the name Abba suggests Swedish connections, the new hotel in Berlin and the hotel group have Spanish roots," says Juan Ramón Acín, Managing Director of Operations of Abba Hotels.

Vienna. "Now the ball is in the government's court!" Max Linder declared, President of the Austrian Tourism Committee in a motion for a resolution and demands a further reduction of value added tax. Austria's hotel industry fears competition from Germany after the new coalition government announced a drastic cut in VAT rates.

Berlin. The joy with which German hoteliers received the news of the VAT reduction from 19 to seven percent is great across the country, even if the very cautious among them prefer to hold back with their celebrations until the decision is finalised. The German Business Travel Association VDR has appealed to hoteliers to reduce rates as of 2010 and even Austria and Switzerland worry that competition with Germany will increase.

Westlake Village. Overall hotel guest satisfaction in Europe has increased notably from 2008 to achieve a five-year high in 2009, with improvements occurring in all ranked brands and across all segments, according to the J.D. Power and Associates

Berlin. The rate of VAT applicable to overnight stays in the German hotel industry is to be reduced by 12 percent effective as of 1 January 2010. The sector is very pleased and relieved at the success which comes thanks to the persistent efforts of the German Hotel and Restaurant Assocation Dehoga and the Hotel Association Germany. Now, investments are to be made in hotels and their staff. The move also provides an opportunity to plug the financial holes which have grown in size in the crisis-buffeted industry. For hotels in border regions to countries where a lower VAT rate applies, competitive disadvantages will be smoothed. The catering industry, however, will not benefit from the reduction.

Salzburg. After a decade of two-digit growth, the Austrian Einkaufsgenossenschaft Hogast is currently idling at the previous year's level - despite increasing membership figures. Hoteliers are holding back in terms of purchase.

Bonn. For a short while, eight former Telekom conference hotels with a total of 1,552 rooms have operated in Germany under the name "Commundo Tagungshotels". It's hoped than the new name will break down barriers to the hotels and that demand will increase from external companies as well as from private overnight guests. In spite of the crisis in the meeting market, the group expects to record sales growth this year.

Berlin. Joseph A. Michelli is used to success. That can be said with confidence about the author of "The Starbuck's Secret" which sold 400,000 copies and made global bestseller lists. All the more sobering it was then, that it took him a whole year to win Ritz-Carlton's trust. After that, he was able to write "the" Ritz Carlton book: "The New Gold Standard". The title sounds banal, but whoever knows the luxury chain also knows: Its philosophy is anything but banal and for this reason difficult to copy. Dr Joseph A. Michelli from Colorado Springs was previously not particular well acquainted with hotels. Now, he's a hardcore luxury hotel and service fan. In an interview in Berlin, he spoke about his Ritz-Carlton research. Insider reading which appears right on cue: Amidst a world financial and economic crisis, for many, the quality promise is the hotel chain's only chance of survival.

Amsterdam/Turracherhoehe. The contrast couldn’t be greater: in Amsterdam, a woman and a team of seven controlled communication with 102,000 employees of Shell distributed across 100 countries and to the remotest drilling platforms until September 2009. On the other side, the idyll of Carinthia in Austria is the home of a 110-room spa hotel with 110 employees who all have direct personal contact to their General Manager. Both companies have thoroughly structured communication. But what are the most successful "channels"? An unusual comparison between the language of a(n) group and a family.