• International Tourism Management WiSe 2007/2008
Introduction – Hospitality
Content
Hospitality and Management: Knowledge, Experiences, Expectations
Everchanging Tourism – Basics of Hospitality
Expansion strategies in international hotel operation
Management in hospitality
Marketing in hospitality
Production and Management in hospitality
Controlling
Brand-building in hospitality
Wellness in hotels
Starting a business in the hospitality sector
Abbrevations
Sources
Internet adresses
2
Cowboys
„The travel industry, according to everybody outside it, is run by
cowboys. Despite the abundance of professionally run companies,
both big and small, the perception is still that holiday firms rip off
unsuspecting customers. …
But the biggest problem is that operators are often selling a product
where the gap between perception and reality is huge. Mass-market
holidays are often sold as a dream vacation when they are often
anything but.“
(Quelle: www.travelmole.com Issue 226 (Sept. 2002), zitiert in Page
2003)
General development Tourism market
Supply Side
Concentration
process
New
technologies
worldwide
CRS/GDS
Substitution markets
(Leisure, Consumption)
Internationalisation of
competition
Positioning of
Travel
agencies
Tour Operator
End of closed
shop distribution
agreements
Less severe
price fixation
Producers of services
- Hotels
- Restaurants
-
Travel Agency
potential
Competitors
soziodemographic
development
Attractions
Transport
Excursion programs
etc.
Customer
changed
consumption
patterns / values
Internationalis
ation of
customers
speeding up of
life
Income and
Wealth
development
uncommitted
income
development
Changes in
Leisure
behaviour
pattern
Demand Side
6
Economic importance of hospitality
Germany (DeHoGa, 2004)
Employees Total, of which
1.002.000
Accomodation
Food and beverages
Canteen, catering services
321.000
598.000
83.000
Apprentices, Total, of which
97.126
Cook, Restaurant/Hotel/Hotel economics expert, Expert
for system gastronomy
Hospitality companies Total, of which
Accomodation
Food and beverages
Canteens, catering services
Turnover Total, of which
Accomodation
Food and beverages
Canteens, catering services
247.861
48.543
190.760
8.558
55,1 Mrd. €
18,4 Mrd. €
32,6 Mrd. €
4,1 Mrd. €7
Segmentation hospitality
hospitality (Major company goal)
Profit-orientated, main source of income, open to everybody, for longer period
Pub (Schankwirtschaft)
Restaurant
(Speisewirtschaft)
Accomodation company
(Hotel, Pension, B&B etc.)
Drinks are offered and
are consumed on the
premises
Food is offered and
consumed on the
premises
Guests are accomodated
hospitality (Minor company goal)
Hospitality part of a non-hospitality company, or non-profit hospitality
company, offering services for social, political or religios purposes, not
necessarily open for everybody
Railroad workers
holiday home
Union home
„Müttergenesungswerk“
8
Segmentation Food and beverages
Restaurant companies
(Bewirtungsbetriebe)
–
–
–
–
–
–
–
–
–
Restaurant
Non-licenced Restaurant
Vegetarian / Vegan Restaurant
Pub (Wirtshaus)
Café
Railway station Restaurant
Highway Restaurant
Fastfood Restaurant
System gastronomy
Entertainment companies
(Unterhaltungsbetriebe)
–
–
–
–
–
–
Bars
Dance Clubs
Discotheks
Night Clubs
Cabarets
Varietés
9
Segmentation Catering/Restaurants
Service gastronomy
(Versorgungsgastronomie)
–
–
–
–
–
–
–
–
–
–
–
Train station Restaurants
Motorway Restaurants
Snack bar / Take away
Kiosk (Trinkhallen)
Fast-Food Restaurant
Cafés without seating
Juice bars
Sandwich Shops
Milk bars
Canteens
Catering (Banquet and Parties,
Industrial, Event)
– System gastronomy
Experience gastronomy
(Erlebnisgastronomie)
– Ethnic Restaurants
– Bars, Dance and Entertainment
clubs
– Diskotheques
– Bistros
– Pubs
– Rock-Cafés
– Performing art clubs
– Video and Karaoke parlours
– Ice bars
– Cafés
– Local style restaurants
(Gastwirtschaften)
– Beer gardens
– Heurigen Restaurants (Straussund Besenwirtschaften)
10
Segmentation Accomodation companies
Hotellerie = Traditional Accomodation
companies
–
–
–
–
–
–
–
–
–
–
–
Hotel (Individual, Chain)
Hotel Garni
Hotel pension
Pension
Road side hotel (Rasthof)
Rural hotel (Gasthof)
Motel
Motorway hotel
Wellness hotel
Aparthotel / Boardinghouse
Hospiz
Parahotellerie = Additional
Accomodation companies
–
–
–
–
–
–
–
–
–
–
–
–
–
Appartement
Holiday resorts
Holiday flats / houses
Youth Hostels
Farm
Camping, Caravaning
Holiday camp
Homes of Associations (Vereinsheime)
Guest houses
Recuperation institutions (Sanatorien)
Bed & Breakfast
Private rooms
Collective forms of accomodation like
hay hotels
– Ski and hiking huts
12
Definition Accomodation companies
•
•
•
•
In Germany: „Ein Hotel ist ein Beherbergungsbetrieb mit
angeschlossenem Verpflegungsbetrieb für Hausgäste und Passanten. Er
zeichnet sich durch einen angemessenen Standard seines Angebotes und
durch entsprechende Dienstleistungen aus.“ (DeHoGA und DTV)
Necessary conditions:
– At least nine guest beds
– Majority of rooms with en suite bath and toilet
– Reception existing
Parahotellerie
– Others form of accomodation (can be commercial or non-commercial)
Commercial accomodation companies have to be
– Profit-orientated, main source of income, open to everybody, for longer
period
13
Actors in the accomodation market
•
•
•
•
Structural forms in accomodation market
– Individual hotels
– Chain hotels
– Franchise hotels
– Management hotels
– Leased hotels
– Cooperation hotels
Cooperations
– For instance Best Western, Ringhotel, Romantic-Hotel
Reservation service companies
– For instance Utell, HRS, hotel.com
Marketing rings
– For instance Summit Int., Preferred Hotels, Relais & Châteaux, Four
Seasons, Leading Hotels of the World
15
Systematic view on company forms
Hotelunternehmungen
Individual
hotels
Branded hotels
Chain hotels
Hotel
Cooperation Branch
Franchise
system
system
One unit
Legally and
commercially
independent
hotel company
Conglomerate
Several units
Horizontal
cooperation of
legally and
commercially
independent
hotel
companies
Unified
company with
several nonindependent
branch hotels
Vertical
association of
legally and
commercially
independent
hotel
companies
Legally
independent
hotel
companies
under unified
leadership
16
Branded hotels
Hotel brand in Germany – some examples (2004)
Nr. Company
Brands
No. of hotels
in Germany
No. of hotels
internationally
1
ACCOR Hotellerie
Deutschland GmbH
Etap, Formule 1, Ibis, Mercure,
Novotel, Suitehotel, Sofitel
278
3.916
2
ArabellaSheraton
Hotelmanagement GmbH
ArabellaSheraton Hotels &
Resorts (18), Four Points Hotels
(6), The Luxury Collection (8)
19
13
3
ARKONA AG
Arkona (5), A-ROSA (1),
Steigenberger (5)
10
1
4
CHOICE Hotels Germany
GmbH
Clarion (2), Comfort (31),
Quality (24)
57
4.810
5
DERAG Hotel and Living
AG
Derag Hotel and Living
9
1
6
DORINT AG
Dorint Hotels & Resorts
79
17
7
FOUR SEASONS Hotels &
Resorts
Four Season Hotel
1
59
8
GOLDEN TULIP Hotel,
Inns & Resorts B.V.
Golden Tulip Hotels (15), Tulip
Inns (5)
20
242
17
Nr.
9
HILTON International
Hilton (14), Scandic (3)
17
400
10
Hospitality Alliance AG;
siehe auch MARRIOTT
International, Inc.
Ramada-Treff (42), Treff (17),
Ramada (8), Ramada Plaza (4)
72
10
11
HYATT International
Hotels & Resorts
Hyatt Regency (2), Park Hyatt,
Grand Hyatt
4
210
12
IFA Hotel & Touristik AG
IFA-Hotels
4
16
13
INTERCONTINENTAL
Hotels Group
InterContinental (5), Crowne
Plaza (7), Holiday Inn (49),
Express by Holiday Inn (8)
69
3.454
14
JOLLY Hotels
Deutschland GmbH
Jolly Hotels
2
50
15
KEMPINSKI AG
Kempinski Hotels & Resorts
12
22
16
MANDARIN ORIENTAL
Hotel Group
Mandarin Oriental
1
20
18
Nr.
17
MARITIM
Hotelgesellschaft mbH
Maritim
36
9
18
MARRIOTT International,
Inc.; siehe auch: TREFF
Hotels AG Services &
Reservations
Marriott (9), Courtyard by
Marriott (15), Ramada (4),
Renaissance (9), Ritz Carlton
(2)
39
2.600
19
MÉRIDIEN Hotels
Deutschland GmbH
Le Méridien
7
143
20
MILLENNIUM &
COPTHORNE Hotels Ltd.
Millennium Hotels, Copthorne
Hotels
2
91
21
MINOTEL Deutschland
e.V.
Minotel (63), Suntime (6)
69
514
22
MÖVENPICK Gesellschaft
für Hotel- u. Restaurantbetriebe u. -beteiligungen
mbH
Mövenpick Hotels & Resorts
13
37
23
NH HOTELES
Deutschland GmbH
NH Hotels
52
196
19
Nr.
24
NIKKO Hotels
International
Nikko
1
51
25
PARK PLAZA Germany
Holdings GmbH
Park Plaza (6), art‘otels (3)
9
>100
26
QUEENS Gruppe
Deutschland
Queens Hotels (8), Holiday Inn
(16)
24
69
27
RAFFLES International
Ltd.
Raffles, Swissôtel (2)
3
33
28
RELAIS & CHÂTEAUX
Deutschland
Relais & Châteaux
29
441
29
REZIDOR SAS Hospitality
Radisson SAS (16), Country
Inns & Suites by Carlson (2),
Park Inn (6)
25
868
30
RIMC International Hotel
Resort Management and
Consulting GmbH
RIMC-Hotels, Golden Tulip,
Tulip Inn, Quality Choice
17
2
31
ROBINSON CLUB GmbH
Robinson
1
24
20
Brand cooperations
Hotel cooperations in Germany (2004)
Nr. Company
Hotels
Germany
Hotels
internationally
1
AKZENT Hotelkooperation GmbH
58
0
2
BAYERWALD Hotels
9
0
3
DESIGN Hotels
8
108
4
FAMILOTEL AG
21
14
5
FLAIR Hotels
132
13
6
„HOTEL‘S MIT HERZ“ GmbH Hotelkooperation
36
2
7
EUREGIO BODENSEE e.V. Hotelkooperation
101
27
8
MINOTEL Deutschland e.V.
69
514
9
MÜNCHNER HOTEL VERBUND GmbH
42
0
10
RELAIS DU SILENCE – Silencehotels D. GbR
37
229
11
RINGHOTELS e.V.
155
0
22
Nr.
12
ROMANTIK Hotels & Restaurants GmbH &
Co. KG
88
99
13
SMALL LUXURY Hotels of the World Ltd.
3
305
14
SRS Hotels Steigenberger Reservation
Service GmbH & Co. KG
106
350
15
SUPRANATIONAL Hotels
k.A.
750
16
The LEADING Hotels of the World Ltd.
25
390
17
THEATER-Hotels Deutschland e.V.
8
0
18
TOP INTERNATIONAL Hotels GmbH
90
60
19
VIABONO GmbH
230
0
20
WELLNESS-Hotels Deutschland GmbH
43
0
23
Forms of segmentation of hotels
•
Completeness of services offered
– Hotel, Hotel Garni, Full hotel
•
Location
– City, Resort etc.
•
Connection to transport infrastructure
– Motel, Airport hotel
•
Quality
– Star rated, other categories
•
Duration of stay
– Hours, days, weeks, seasons
•
Legal form of company
– Single company, Limited, etc.
•
Size of company
– Individual hotel, family hotel, chain hotel, major hotel
•
Profit orientation
– Profit-orientated, non-profit-orientated, communal, social institution, learning hotel,
minor part of company
24
Different types of accomodation
•
•
Class L – Luxury hotels
– Hotel, Congress hotel, All-Suite-Hotel
– Accomodation, breakfast, food and beverages offered
– International Standard, luxurious, modern
– Greetings of guests in front of the house
– High level of technical and personal services
– Meeting point, modern communication equipment
– Outside Germany often big shopping center included
– Price high
Class 1 – First Class Hotel – Convention hotel
– Accomodation, breakfast, food and beverages offered
– High Standard of comfort
– Good level of technical and personal services
– Price medium to high
– Mostly large number of beds, chain hotels
25
•
Class 2 – Middle class hotel, Aparthotel
– Accomodation, breakfast, food and beverages offered
– Practical, solid level of basic services
– Price medium
•
Class 3 – Hotel Garni
– Accomodation and breakfast, only some food and beverages only for guests
– Little city hotels, not much staff, often family run
– Price lower medium
26
•
•
•
Class 4 – Pensions, Hotel pensions
– Accomodation and breakfast for longer stay guests, fixed menu food at
specific times
– Simple, no special comfort, often close to spa institutions
– Without special services
– Prices dependent on length of stay
Class 5 – Rural hotel „Gasthof“
– Mainly restaurant, few beds mainly for restaurant guests
– Simple, rural, no special comfort
– Often family run with own butcher or fish farm
– Price low, except Star-restaurant places
Others
– Motels, Resorts, Highway hotels, holiday homes etc.
27
Hotel classification – a critical view
Country
Official Hotel
classification
Level
Compulsory
Controlled by
Belgium
Y
National
Y
Government
Germany
Y
National
No
Association
Finnland
No
-
-
Government
Italy
Y
21 regional
systems
Y
-
Malta
Y
National
Y
Association
Schweiz
Y
National
Y for members
Association
Spanien
Y
Regional
Y
Government
Y
four regional
Systeme
No
Automobil
clubs and
Government
UK
29
System of German hotel classification
•
•
•
Why Classification?
– Better sales, better product positioning
– Reliable quantitative indicator for potential guests
– Better categorization of services offered (not: quality of services)
German hotel classification of DeHoGa
– Since 1996 unified German system
– Evaluation of objective, not subjective criteria
– Enjoys legal brand protection
Development of criteria
– By sub-group hotels of DeHoGa
30
•
•
•
Basics of classification
– Voluntarily: Entering and exit always possible
– Transparency: Every hotel company can learn beforehand into which
category it will be put
Participants
– All accomodation companies with more than eight beds
Criteria of Classification
– 19 criteria, higher level of fulfillment needed for each star level
– Further minimum levels of points for a star level from the criteria
•
•
•
•
•
Building/rooms
Interior decoration/Features
Service / Leisure offers
Form of product offer
In-house conference facilities
31
•
Categories
– Five star categories
•
•
•
•
•
•
Tourist * (Garni)
Standard * * (Garni)
Komfort * * * (Garni)
First Class * * * * (Garni)
Luxus * * * * * (Superior)
Evaluation process
– HoGa‘s on provincial level themselves or by other organisations like CoCs)
– Regular random controls
– Classification by document and representative sign
32
Discussion
•
In 1996 Germany and Denmark started a hotel classification program. 2003
Sweden adopted the Danish system. Through this process now all
important European countries have classification systems. How about a
EU-wide harmonized system?
•
In 2004 the European Association of hotel associations HOTREC decided
to start working on a europe-wide classification system.
•
Arguments against: Regional differences, high costs
•
Most major markets are dominated by domestic guests (Germany, France,
Italy, Japan, USA) or specific source markets (Germany/UK at Spanish
coast and islands).
46
Cultural as well as climatic differences result in different criterias for quality:
-
Slippers and oneway-tooth brush important in Japan, not in Austria
Good and diverse range of wines offered – necessary in Austria, not in
Britain
Baked breakfast available – important in Britain, not in Portugal
Tobacco shop in the hotel necessary in Portugal, not in France
Bidet necessary in France, not in Netherlands
Many towels positive in Netherlands, not in USA
Ice machine on each floor important for USA
47
-
Beds have to be longer in Northern Europe than in Southern Europe
Rooms are smaller in a 5 Star hotel in Tokyo than in a cheap motel in USA
Lobby in 4 Star hotel in Beijing much bigger than in 5 Star hotel in Europe
Swedish 3 Star hotels do not need to have a window
Even bigger differences for African, South American destinations
•
It is therefore not suitable to have a harmonized system all over the world.
The 5 Star system is established internationally (Middle East 7 Star hotels
only marketing gag), not easily abandoned
•
Even now star rating criteria lead to useless investments (Sauna in 4 Star
hotel in Malta)
48
Most important criticism:
• Star rating only looks at single quantitative criteria set.
• No clear distinction between business travellers and holiday
makers needs
• No recognition of the most important fact: service QUALITY
49
2. Expansion strategies of big hotel groups
51
2.1 Facts and Figures
The ten biggest hotel groups in the world (rooms, 2005)
Rooms
Hotels
InterContinental Hotels Group
534.202
3.540
Cendant
520.860
6.396
Marriott International
478.000
2.600
Accor
463.427
3.973
Choice
403.806
4.977
Hilton Corporation
358.408
2.259
Best Western
309.236
4.114
Starwood
230.667
733
Carlson Hospitality Worldwide
147.093
890
Global Hyatt
111.474
356
52
Die three hightest hotels in the world (2005)
1.
Grand Hyatt
421 m
Shanghai, China
2.
Burji al Arab
321 m
Dubai City, Dubai, VAE
3.
Emirates Towers Hotel
309 m
Dubai City, Dubai, VAE
Planned (year of opening)
1.
Burji Dubai (2008)
560 m
Dubai City, Dubai, VAE
2.
Ritz Carlton (2009)
480 m
SAR Hong Kong, China
3.
Federazjia (2007)
440 m
Moskau, Russland
4.
Emirates Hotel (2008)
350 m
Dubai City, Dubai, VAE
5.
Shangri-La (2009)
310 m
London, GB
53
2.2 Reasons for Expansion
•
•
•
Brand and Strength help acquisition
Reputation and training programs help with Human Resource Acquisition,
HR Retention, HR Expansion
Reservation system already existing
• Goals: Economy of scale, Synergies, risk sharing:
 More growth, more revenues
 Brand strengthening through increased visibility especially if high level of
standardisation
 Synergies by cost reduction in backstage operations
 Synergies by cost reduction and quality control in housekeeping, food and
beverages, renovation
 Increased bargaining power in sourcing
 Central marketing and reservation
 Regional risk sharing
55
2.3 Preconditions of expansion
• In destination
–
–
–
–
–
–
Positive economic trend in local economy
Stability
Existing infrastructure
Favourable laws (taxes, ecology, entrepreneurial freedom etc.)
Resources (physical and human)
Attractive for target group (business people, tourists, VFR, transit travellers)
• In hotel group
–
–
–
–
Standardisation
Organisation geared to expansion
Brand value
Clear division between investment and management functions
56
2.4 Branding & Diversification
• Brand – the most important part of the immaterial value of
company
• Brand – difference between book value and market value
• Brand – part of Shareholder Value  Goodwill
57
2.4 Branding & Diversification
Hotel groups and their brands (examples)
Upscale /
Luxury
No. of
brands
Marken
Company
Economy
Midscale
Accor
Ibis
Formule 1
Etap
Red Roof Inn
Motel 6
Novotel
Mercure
Suite Hotel
Sofitel
9
Courtyard by
Marriott
Ramada
Ritz Carlton
Renaissance
Marriott
5
Melia Comfort
Sol Elite
Gran Melia
Melia Hoteles
6
Maritim
1
Marriott
Sol Melia
Sol Inn Hotels
Sol Hotels
Maritim
Best Western
Best Western
1
58
Management in the hospitality sector
The Hotel Manager
The Hotel Manager is a man from the distant future who opens up a restaurant in the distant past.
The guests travel there via time machine (yes, just like The Restaurant at the End of the Universe
by Douglas Adams). He's pretty funny as he's very evolved, but he's still a stupid jerk.
Appearances: Tick vs. Prehistory: This episode is featuring a restaurant located about 3.5 million
years ago. The Tick and Arthur wind up stuck in the distant past, but they're 'saved' when The
Hotel Manager kidnaps their tribe of human-ape ancestors and takes them to the hotel to replace
his waitstaff. Tick manages to overthrow the hotel staff and return his tribe to freedom and
restore himself and Arthur to the 20th century.
88
Management or improvisation
•
•
•
•
Planned and managed:
Fixed „normal“ ways of doing things, management by exception
Job descriptions, workflow descriptions
Differentiation between operational and strategic management
•
•
Improvisation:
Management by experience: good for stable situation only
89
Human Resource Management
• Hospitality is a People industry
• Human Resource Management among the most important
functions
–
–
–
–
–
Finding and retaining staff
Coordinating staff
Controling staff
Supporting staff
Leading staff
90
Classical HR Organigram – Single hotel
Management
Food and
Beverages
(Buying/Storage)
1 Chef
2 Kitchen staff
5 helpers
Service
Reception
Administration
Accounting
Accomodation
1 Restaurant
Manager
1 Receptionist
1 Matron
(Hausdame)
1 Hote Manager
2 General staff
3
chambermaids
3 helpers
91
Customer orientated HR Management
• End of Column structure
–
–
–
–
Process orientation
Problem solving instead of Zuständigkeit
Empowerment
Moments of Truth Concept
• Abilities Matrix
– Data Mining of abilities of staff
– Competence cluster
– Example Accor Ibis Hotels: 15 Minutes Total Zen: How can it work?
92
Quality management
• Quality ≠ Expensive
• Quality: Hardware, Surroundings, Software
• Quality: Ongoing process
93
TQM – Total Quality Management
• Customer point of view: How important is the service
offered and how was the quality of the service
perceived?
• Producers point of view: How good was the quality
management?
• TQM as a never-ending upward spiral (Kaizen)
94
Ecology management
•
•
•
•
Based on:
Laws and regulations
Customer demand
Staff demand
• In Germany:
• DeHoGa Eco Criteria
• Government subsidies from
–
–
–
–
European Recovery Program (ERP)
Deutsche Ausgleichsbank (DtA)
Kreditanstalt für Wiederaufbau (KfW)
Bundesländer Subsidies
95
Ecology management
•
Labels:
•
Many Ecology labels worldwide on different levels
•
Example Bavaria:
http://www.stmugv.bayern.de/umwelt/wirtschaft/siegel/index.htm
•
•
•
Other examples:
Blaue Flagge, Grüner Koffer
Top label in Germany: Viabono
96
Ecology management
• Discussion:
In the 1990s the hospitality companies in Germany
could not agree on a label like „Grüner Koffer“.
Today Viabono is supported by DeHoGa etc.
Is ecological engagement in hotels just a marketing
gag or will we see a real „greening“ of the hospitality
industry?
97