p12 Conf mar20 18/3/09 19:04 Page 12
news convention report
ttglive.com
ITB 2009 • Berlin
POST-DOWNTURN.
REGULATION.
‘Big brands better
after a recession’
Red tape key to survival
Rupert Murray.
choices were increasingly being
THE GLOBAL recession offers large hotel HOTELS face a “regulation ava- made by professional travel buyers.
chains an opportunity to expand their market lanche” in the next five years which “And those travel buyers have to
share, claimed Marriott International president will threaten independents and tick boxes for things like due care
Ed Fuller. chains that fail to adapt quickly. and ethical sourcing and supply. If
He said the economic downturn did not spell IHG chief executive Andrew a hotel does not pass the criteria it
bad news for all hotels, and chains “always” Cosslett said the biggest changes simply won’t be on the list,” he said.
emerged from recessions stronger. the hospitality industry faced Worldhotels chief executive
“We have been able to grow through these centred on safety, hotel liability and Michael Ball (pictured) predicted
patches and in every previous downturn we have the environment. “ticking boxes” to meet regulatory
increased our market share; being a big brand is “You have no idea how much criteria would become increasingly
an advantage during recession.” environmental legislation will come out in the important and that midmarket properties could
Fuller also said independents would find it next five years – it is going to be incredible and find it hardest to keep up, particularly three and
tough because they did not have big machines it’s probably the right thing,” he said. four-star hotels in provincial towns.
behind them promoting and selling. “I worked in the food industry for many years “If you don’t tick the boxes you are in trouble
IHG chief executive Andrew Cosslett admitted and huge numbers of businesses disappeared and some middle market players will be taken
that all brands had seen declines but agreed with because it was uneconomic to invest enough to out,” he said.
Fuller that a big system provides shelter. comply with all the regulations. Jumeirah Group executive chairman Gerald
“Banks need to start lending money again but “We haven’t even seen the start of the legisla- Lawless expressed concern that discerning
it is a good thing that the lunacy of everyone tion avalanche centred around safety, security guests would move away from larger luxury
breathing being able to get a loan has ended,” he and risk assessment; if you don’t have a risk hotels in favour of smaller, more personalised
said. assessor you are going to be in a spot.” properties that they believed to have more
“The world is on a detox and although it is Cosslett also pointed out that customers’ hotel responsible policies.
never nice to do a detox, we will feel better
for it.”
Cosslett said the timing of the relaunch of
IHG’s Holiday Inn brand’s 3,200 properties would
help attract business at a crucial time.
SOCIAL MEDIA.
Excuse me, I need to blog!
MARRIOTT International chairman Bill Marriott
is a committed blogger who rushes out of
meetings to write his online updates.
The hotel chain’s managing director, Ed Fuller,
cited his boss’s online savvy as evidence of how
Facebook and Twitter were becoming the new
word of mouth communication.
“I was with him recently at a meeting in New WAX LYRICAL: An ITB delegate admires former German sports stars Boris Becker and
Orleans and he whispered that he needed to ‘get Oliver Kahn, who graced the show as part of an exhibition from Madame Tussauds Berlin
out of here and write my blog’,” said Fuller.
“He takes time out to make sure he is active
because he believes it is an important way to
HOTEL SALES.
communicate.”
‘Copy airline booking model’
change my mind if I like. So why can’t I go on to
However, IHG chief executive Andrew Cosslett a hotel website and choose the room I want?”
warned that fashions in online communication THE HOTEL industry needs to catch up with air- Lawless also said the hotel industry knew more
could change very fast. lines in the online options it offers customers, about its customers than any other but didn’t
“Eighteen months ago, MySpace was a global delegates were told. use it effectively to boost a guest’s experience.
phenomena. But last week my 17-year-old daugh- Jumeirah Group executive chairman Gerald “We should know what guests want, such as if
ter told me ‘it’s dead, you wouldn’t touch it with Lawless said: “On an airline’s website I can select they want their bags grabbed from the taxi and
a barge pole – it is for losers and sad people’.” the seat I want and then three days later I can taken to their room,” he added.
12 20.03.2009
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