Hotrec Presentation by Susanne Kraus Winkler

Geneva, 17 April 2015

EHMA 42nd Annual General Meeting

Susanne Kraus-Winkler

President of HOTREC

© HOTREC. All Rights Reserved

Susanne Kraus-Winkler

Member of HOTREC Executive Committee since 2004, Vice-President from 2010 and President since 1st January 2015. Long standing entrepreneur and expert in the Tourism and Hospitality industry, partner and president of the board in several hotel management and consulting companies in Austria, founding partner of the LOISIUM Wine & Spa Hotel Group, active positions in the Austrian Chamber of Commerce.

Geneva, 17 April 2015 © HOTREC. All Rights Reserved

Umbrella organisation

Representing hospitality industry at European level

42 National

Associations

in 28 European countries

What is HOTREC?


Organisation of HOTREC

Executive Committee President: Susanne Kraus-Winkler Vice-President: Ákos Niklai Treasurer: Marinus Cordesius Members: Danny van Assche Agni Christidou Adrian Cummins Ramón Estalella Markus Luthe Paolo Rossi

Secretariat CEO: Christian de Barrin


Hospitality sector in economic terms:

• 1,8 milion businesses

• 91% micro enterprises • (employing less than 10 people)

• 99% SMEs

• → Hospitality industry employs more than 10 million people in the EU!



HOTREC main policy areas:

Online Distribution Shadow hospitality economy Tourism Standards Hotel Classification Quality Accessibility Food related issues:

• food hygiene; • food labeling

Health related issues:

• alcohol

• smoking; Social Affairs Taxation – VAT Fire safety Sustainability Consumer Protection and many others …


Communication revolution – challenges for the hospitality industry

• Online Distribution • Shadow hospitality • Use of ICTs Other challenges: • Visa code • Package Travel Directive


Online distribution:

150.000 hotel and similar enterprises

vs.

3 booking giants in control of 90% of

OTA bookings Result: • Imbalance in market power

• Similar terms and conditions including parity

clauses (demanding best prices, full availability,

etc.)

• Loss of control over the business

© HOTREC. All Rights Reserved Geneva, 17 April 2015

Online Distribution

MFN clauses

Several national competition cases ongoing, European Commission coordinating

• Germany: Decision of Competition authority against HRS No parity clauses from 1 March 2014 Reasons: elimination of competition + barrier for new market

entrants Appeal by HRS: Regional Court of Dusseldorf rejected appeal Investigations also opened against Booking.com and Expedia

• Other cases in Italy, France, Sweden, Switzerland, etc.


Online Distribution

MFN clauses

Attempt by Booking.com - Putting forward commitments

• Allowing hotels to offer different prices to other OTAs • Keep up rate parity between Booking.com and hotel’s own

channels • Offering lower commission to hotels complying with some criteria

(e.g. sales level on Booking.com) – uncontrolable and deprives of offering lower prices elsewhere

Committments were rejected by the hotel industry in January – final decision of authorities awaited


Online distribution:

Issue of online Comparison Tools:

• Authorities questioning correct information provision

• Reliability of user reviews to be tackled seriously

• Ensure trustworthy content from both the consumer

and the business point of view

• European Commission to propose key principles for

such tools to comply with



“Sharing” (or shadow) economy

• New business models facilitating development of unregulated market

• Rules applying to such new players not clear –

regulations usually at national / local level

• Unbalanced conditions for operation for different types of hospitality businesses

http://www.hoteliertv.net/international/airbnb-the-hotel-disruptor-unconstrained-by-real-estate


















“Sharing” (or shadow) economy

Rented properties / ‘Private restaurants’ not belonging to the commercial hospitality sector cause problems for:

Consumers Residents

Authorities (grey activity – often not declared)

Established businesses (unfair competition)

Regulation and de-regulation in order to achieve a level playing field



Use of ICTs in hotels:

• 94% of hotels have an own website

• 70% have a facebook page

• 42% a website adapted to mobiles and tablets

• 37% an updated front office system (not older than 5 years)

• Smaller and individual hotels have a much lower rate of ICT use than hotel chains

• Similar observations can be made on the use of mobile applications


Better take-up of ICT encouraged through:

All classified hotels in HSU

to have a website + incentive for own booking engine

HOTREC participation in the TourismLink project to facilitate digital connection between smaller local service providers

Promotion of already existing tools

Funding possibilities for the uptake of ICTs in the tourism sector


Visa Package

Commission proposals - Revision Visa Code - Touring Visa Objective: Facilitate visa procedures while maintaining security for citizens HOTREC position: Full support for Commission proposal in order to facilitate entry of third country tourists to Europe Difficult negotiations in European Parliament and Council – all support is welcome


Package Travel Directive

Commission proposal: - aim is to modernise legislation for package holidays - bring OTAs and airlines in the scope Problem: Directive will raise costs and liabilities for rooms sold with extra services (e.g. spas, opera, bike rental, etc.) HOTREC advocates workable solutions: Directive should not apply to services provided inside hotel Difficult negotiations with European Parliament and Council – all support is welcome


Thank you for your kind attention!

www.hotrec.eu


http://www.hotrec.eu/

http://www.hotrec.eu/

Presentations & Public Speaking

Hotrec Presentation by Susanne Kraus Winkler