• International Tourism Management WiSe 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)

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Customer

potential Competitors

Substitution markets (Leisure, Consumption)

Concentration process

New

technologies

worldwide CRS/GDS

Internationa- lisation of competition

End of closed shop distribution

agreements

Positioning of Travel

agencies

Less severe price fixation

Changes in Leisure

behaviour pattern

uncommitted income

development

Income and

Wealth development

speeding up of life

Internationalis

ation of customers

changed consumption

patterns / values

soziodemo- graphic

development

Producers of services

- Hotels - Restaurants - Attractions - Transport - Excursion programs etc.

Tour Operator

Travel Agency

Demand Side

Supply Side

General development Tourism market

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Economic importance of hospitalityGermany (DeHoGa, 2004)

Employees Total, of whichAccomodation

Food and beverages

Canteen, catering services

1.002.000321.000

598.000

83.000

Apprentices, Total, of whichCook, Restaurant/Hotel/Hotel economics expert, Expert for system gastronomy

97.126

Hospitality companies Total, of which Accomodation

Food and beverages

Canteens, catering services

247.86148.543

190.760

8.558

Turnover Total, of which Accomodation

Food and beverages

Canteens, catering services

55,1 Mrd. €18,4 Mrd. €

32,6 Mrd. €

4,1 Mrd. €

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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“

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Segmentation Food and beverages Restaurant companies (Bewirtungsbetriebe)

Entertainment companies (Unterhaltungsbetriebe)

– Restaurant– Non-licenced Restaurant– Vegetarian / Vegan Restaurant– Pub (Wirtshaus)– Café– Railway station Restaurant– Highway Restaurant– Fastfood Restaurant– System gastronomy

– Bars– Dance Clubs– Discotheks– Night Clubs– Cabarets– Varietés

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Segmentation Catering/Restaurants Service gastronomy

(Versorgungsgastronomie)Experience gastronomy (Erlebnisgastronomie)

– 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

– 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 (Strauss-

und Besenwirtschaften)

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Segmentation Accomodation companiesHotellerie = Traditional Accomodation

companiesParahotellerie = Additional 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

– 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

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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

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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

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Systematic view on company forms

Hotelunternehmungen

Individual hotels

Branded hotels

Hotel Cooperation

Chain hotels

Branch system

Franchise system

Conglomerate

One unit Several units

Legally and commercially independent hotel company

Horizontal cooperation of legally and commercially independent hotel companies

Unified company with several non-independent branch hotels

Vertical association of legally and commercially independent hotel companies

Legally independent hotel companies under unified leadership

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Branded hotels Hotel brand in Germany – some examples (2004)

Nr. Company BrandsNo. of hotels in Germany

No. of hotels internationally

1ACCOR Hotellerie Deutschland GmbH

Etap, Formule 1, Ibis, Mercure, Novotel, Suitehotel, Sofitel

278 3.916

2ArabellaSheraton Hotelmanagement GmbH

ArabellaSheraton Hotels & Resorts (18), Four Points Hotels (6), The Luxury Collection (8)

19 13

3 ARKONA AGArkona (5), A-ROSA (1), Steigenberger (5)

10 1

4CHOICE Hotels Germany GmbH

Clarion (2), Comfort (31), Quality (24)

57 4.810

5DERAG Hotel and Living AG

Derag Hotel and Living 9 1

6 DORINT AG Dorint Hotels & Resorts 79 17

7FOUR SEASONS Hotels & Resorts

Four Season Hotel 1 59

8GOLDEN TULIP Hotel, Inns & Resorts B.V.

Golden Tulip Hotels (15), Tulip Inns (5)

20 242

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Nr.

9 HILTON International Hilton (14), Scandic (3) 17 400

10Hospitality Alliance AG; siehe auch MARRIOTT International, Inc.

Ramada-Treff (42), Treff (17), Ramada (8), Ramada Plaza (4) 72 10

11HYATT International Hotels & Resorts

Hyatt Regency (2), Park Hyatt, Grand Hyatt

4 210

12 IFA Hotel & Touristik AG IFA-Hotels 4 16

13INTERCONTINENTAL Hotels Group

InterContinental (5), Crowne Plaza (7), Holiday Inn (49), Express by Holiday Inn (8)

69 3.454

14JOLLY Hotels Deutschland GmbH

Jolly Hotels2 50

15 KEMPINSKI AG Kempinski Hotels & Resorts 12 22

16MANDARIN ORIENTAL Hotel Group

Mandarin Oriental1 20

19

Nr.

17MARITIM 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

19MÉRIDIEN Hotels Deutschland GmbH

Le Méridien 7 143

20MILLENNIUM & COPTHORNE Hotels Ltd.

Millennium Hotels, Copthorne Hotels

2 91

21MINOTEL Deutschland e.V.

Minotel (63), Suntime (6) 69 514

22

MÖVENPICK Gesellschaft für Hotel- u. Restaurant-betriebe u. -beteiligungen mbH

Mövenpick Hotels & Resorts 13 37

23NH HOTELES Deutschland GmbH

NH Hotels 52 196

20

Nr.

24NIKKO Hotels International

Nikko 1 51

25PARK PLAZA Germany Holdings GmbH

Park Plaza (6), art‘otels (3) 9 >100

26QUEENS Gruppe Deutschland

Queens Hotels (8), Holiday Inn (16)

24 69

27RAFFLES International Ltd.

Raffles, Swissôtel (2) 3 33

28RELAIS & CHÂTEAUX Deutschland

Relais & Châteaux 29 441

29 REZIDOR SAS HospitalityRadisson SAS (16), Country Inns & Suites by Carlson (2), Park Inn (6)

25 868

30RIMC International Hotel Resort Management and Consulting GmbH

RIMC-Hotels, Golden Tulip, Tulip Inn, Quality Choice

17 2

31 ROBINSON CLUB GmbH Robinson 1 24

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Brand cooperations

Hotel cooperations in Germany (2004)

Nr. CompanyHotels

GermanyHotels

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

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Nr.

12ROMANTIK Hotels & Restaurants GmbH & Co. KG

88 99

13 SMALL LUXURY Hotels of the World Ltd. 3 305

14SRS 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

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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

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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

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• 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

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• 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.

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Hotel classification – a critical view

CountryOfficial Hotel classification

Level Compulsory Controlled by

Belgium Y National Y Government

Germany Y National No Association

Finnland No - - Government

Italy Y21 regional

systemsY -

Malta Y National Y Association

Schweiz Y National Y for members Association

Spanien Y Regional Y Government

UK Yfour regional

SystemeNo

Automobil clubs and

Government

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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

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• 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

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• 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

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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).

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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

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- 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)

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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

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.

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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

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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

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Classical HR Organigram – Single hotel

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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?

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Quality management

• Quality ≠ Expensive

• Quality: Hardware, Surroundings, Software

• Quality: Ongoing process

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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)

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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

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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

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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?