International Tourism Management Wi Se 2008 2009

• International Tourism Management Wi. Se 2008/2009 Introduction – Hospitality

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 6

Economic importance of hospitality Germany (De. Ho. Ga, 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 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 (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. “ (De. Ho. GA 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 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 Gmb. H Etap, Formule 1, Ibis, Mercure, Novotel, Suitehotel, Sofitel 278 3. 916 2 Arabella. Sheraton Hotelmanagement Gmb. H Arabella. Sheraton 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 Gmb. H 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 Inter. Continental (5), Crowne Plaza (7), Holiday Inn (49), Express by Holiday Inn (8) 69 3. 454 14 JOLLY Hotels Deutschland Gmb. H 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 mb. H 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 Gmb. H 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 mb. H Mövenpick Hotels & Resorts 13 37 23 NH HOTELES Deutschland Gmb. H NH Hotels 52 196 19

Nr. 24 NIKKO Hotels International Nikko 1 51 25 PARK PLAZA Germany Holdings Gmb. H 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 & CH TEAUX 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 Gmb. H RIMC-Hotels, Golden Tulip, Tulip Inn, Quality Choice 17 2 31 ROBINSON CLUB Gmb. H Robinson 1 24 20

Brand cooperations Hotel cooperations in Germany (2004) Nr. Company Hotels Germany Hotels internationally 1 AKZENT Hotelkooperation Gmb. H 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“ Gmb. H Hotelkooperation 36 2 7 EUREGIO BODENSEE e. V. Hotelkooperation 101 27 8 MINOTEL Deutschland e. V. 69 514 9 MÜNCHNER HOTEL VERBUND Gmb. H 42 0 10 RELAIS DU SILENCE – Silencehotels D. Gb. R 37 229 11 RINGHOTELS e. V. 155 0 22

Nr. 12 ROMANTIK Hotels & Restaurants Gmb. H & Co. KG 88 99 13 SMALL LUXURY Hotels of the World Ltd. 3 305 14 SRS Hotels Steigenberger Reservation Service Gmb. H & 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 Gmb. H 90 60 19 VIABONO Gmb. H 230 0 20 WELLNESS-Hotels Deutschland Gmb. H 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 De. Ho. Ga – Since 1996 unified German system – Evaluation of objective, not subjective criteria – Enjoys legal brand protection Development of criteria – By sub-group hotels of De. Ho. Ga 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 – Ho. Ga‘s on provincial level themselves or by other organisations like Co. Cs) – 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). 33

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 34

- 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) 35

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 36

Management in the hospitality sector 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 20 th century. 58

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 59

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 60

Classical HR Organigram – Single hotel Management Food and Beverages (Buying/Storage) 1 Chef 5 helpers Accomodation 1 Restaurant Manager 2 Kitchen staff Service Reception Administration Accounting 1 Receptionist 1 Matron (Hausdame) 1 Hote Manager 2 General staff 3 chambermaids 3 helpers 61

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? 62

Quality management • Quality ≠ Expensive • Quality: Hardware, Surroundings, Software • Quality: Ongoing process 63

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) 64

Ecology management • • Based on: Laws and regulations Customer demand Staff demand • In Germany: • De. Ho. Ga Eco Criteria • Government subsidies from – – European Recovery Program (ERP) Deutsche Ausgleichsbank (Dt. A) Kreditanstalt für Wiederaufbau (Kf. W) Bundesländer Subsidies 65

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 66

Ecology management • Discussion: In the 1990 s the hospitality companies in Germany could not agree on a label like „Grüner Koffer“. Today Viabono is supported by De. Ho. Ga etc. Is ecological engagement in hotels just a marketing gag or will we see a real „greening“ of the hospitality industry? 67