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  • HITEC Special: Revenue Strategy: Not Just a Fancy New Name for Revenue Management

    By Cindy Estis Green. A strategic view of revenue calls for proactive business mix planning and decision-making around deployed resources, well beyond reacting to what comes over the transom. Excerpt from the 2018 HITEC Bytes Special Report.

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    By Jill Wilder. Forward-looking, continuously updated statistical trend analysis is emerging as a strategic tool that performs the practical magic of creating an accurate forecast you can take to the bank.

  • Members Only: IT Spending in the Lodging Industry

    HFTP Research Report: The new USALI Schedule 6 — Information and Telecommunications Systems and the effects thus far on the industry. An analysis of IT spending data in the industry and compliance practices by lodging executives.

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    Survey results identify which metrics are most often used to determine performance. By Agnes DeFranco, Ed.D., CHAE; Tanya Venegas, MBA, MHM, CHIA; and Amanda Belarmino

Globalization: On the hunt to keep rank

Hospitality ON ·13 June 2018
In this age of here and now, the customer wants to spend as little time as possible looking for and buying the right product. In the age of big data and the exponential development of algorithms, we know our customers better and better, and can even begin to anticipate their needs and expectations. In order to meet the same needs for the same customer, it seems clear that we must work on synergies and build a real path where we can respond better.The timing is right, everything converges to give meaning to this bold and necessary position that is in line with customer expectations, needs and habits. It will also strengthen the positions of global hospitality players. We are facing a kind of logic based on marketing and community. In short, we are entering the future of our profession that is undergoing a transformation as it changes dimension and the ecosystem changes as well. Some American, Chinese, Indian and Middle Eastern groups already have a foothold in this logic of total control of the customer experience. Because the real battle is situated on a completely different terrain than that of territorial or monetary supremacy, the real battle is about knowing, satisfying and building customer loyalty. To achieve this, we must invest massively and constantly, and ask ourselves the right questions before others do the same.We must face the facts, the government does not know how to deliver efficient and quality services, it is unable to adapt to the global economy. The example of Air France, which was managed by civil servants, shows that it is time for real entrepreneurs to take the lead, streamline and effectively manage this company with a truly global strategy and vision as well as results objectives to be achieved. Paralyzed by outdated processes, social benefits as well as excessive taxes, the French airline is in full free fall. Not to mention the SNCF, which severely handicaps the small and medium-sized businesses that make up the vitality of the economy.In France, the world's leading tourist destination, the airports of Roissy Charles de Gaulle and Orly are ranked 128 and 138 respectively, far behind destinations with a much lesser international influence... It is time to get back to work, to push entrepreneurial and motivated forces, to change habits and regain a path to success. Air France is a brand, but it is also expertise and know-how, and these treasures must not be wasted, but grown! However, the transformation will only happen with a real global vision that is free from the political and territorial problems that currently lead to decisions that are in total opposition to the management and good health of corporations.Finally, the State favors the company's strategy and wishes to give new life to its national flagships; it would seem that it has become aware of its impotence with respect to globalization and has decided to entrust the reins to those who can hold them. This is to be welcomed, but they should not be passed on to the industry's captains without being given the means to restore the company's competitiveness in relation to other European airlines. Disposing of its 14% shares must obscure the need to lighten heavy charges. This also applies to the hotel business; we have often said that the State and the Caisse des Depots have not really helped companies to modernize and have not financed real development centres or sufficiently favored the repositioning of the offer in relation to current competition.Donald Trump's strategy has prompted Emmanuel Macron and other world leaders to respond and bring the battalions together to continue to count and exist globally. Just as Americans, Chinese, Qataris, Saudis... are welcome in the European Union, it goes without saying that they must offer European companies the same welcome when entering their markets and developing our products there. Globalization is opening its doors, for our companies to enter at the same level.
Article by Georges Panayotis

The monkey moved to someone else's back...

Hospitality ON · 8 June 2018
What we are seeing, however, is that the responsibilities are shifting... the monkey is changing backs... brand owners no longer own both the walls and the business. Today, franchisees support investment costs and must make up for years of backlog. Meanwhile, rather than invest to modernize and maintain the supply, operators have chosen to invest in faraway markets or other types of accommodation. But within this squaring of the circle, we can only observe that the problem has grown more complex. Owner operators will have to break away, and within this metamorphosis what will happen to brands? In France, the economy and budget supplies represent more than 60% of the chain hotel and independent supply combined, if we include the midscale that accounts for close to 90% of the total room supply.But some operators are turning to the high-end market with an aim to offset distribution and maximize their EBITDA. What about this economy and midscale offer? How will it remain profitable and competitive? New hybrid concepts have been appearing on the market for about ten years now. Hannes Spanring announced at the Global Lodging Forum last April that he has no less than 120 projects underway in promising destinations as well as 25 properties in the pipeline in the United States.More than 2500 years ago, Heraclitus made this observation: "The only thing that is constant is change", one cannot say they were unaware of it. The offensive is there and well established, but who will retaliate and how? New-generation concepts offer products that are cheaper to produce (such as Qbic, which is developing a technology that allows it to build quickly and at low cost), where much of servuction is digitized with strong and differentiating products, very carefully selected locations (no more under-serviced suburban areas) and staff reduced to the strict minimum for the most part. Guests check themselves in, digital tools follow them, guide them and even encourage additional sales. The staff, for their part, develops skills but also, and above all, know-how and all this at the service of the sacrosanct customer experience. In the end, it is the customer who works and is delighted to do so!Competition between destinations will intensify, not only to attract tourists, but also to attract new projects, and it will become necessary to attract all stakeholders, from the investor to the operator. To do so, it is imperative to federate all the players in the territory, to communicate effectively and also to provide potential investors and managers with effective monitoring tools for the destination. The appeal of destinations, and therefore their tourist income, is at stake. To ensure that they hold all the cards, resources must be decentralized to the territories so that each tourist destination can work alongside professionals to develop creative and relevant communication methods and promote the DNA of our territories.
Article by Georges Panayotis

It takes two to build, but only one to destroy

Hospitality ON ·23 May 2018
How can we imagine developing a product and a brand that are disembodied, cut off from their source of inspiration, with no link to what should feed them and help them progress? Today, large companies suffer from two major ills: a brutal and merciless transformation that does not wait for latecomers, the rupture that is on everyone's lips; and obvious management problems.Managers have been sidelined, in favor of robotisation, financiers and great strategists without anticipating in the medium term the devastating effects of a lack of management. Because those managers who are operational, who are the lines of communication between decision-makers and teams who bring down information and also pass it on to strategists, are the key to maintaining cohesion and staying the course. The revenge that strategists wanted to gain against managers by turning to digital cannot work.News from Air France and the SNCF clearly shows that a company cannot function without the support of its staff, inspired by a real manager who is there to steer the transformation. While the strategist may set the course, it is the manager who follows it, steering the ship through pitfalls and other obstacles. It would be a mistake to do without either of them as companies need both profiles to perform. Good strategists to guide but also good managers to accompany, federate and make employees adhere to the values and goals of the company.Yet, two worlds are evolving in parallel, sometimes confronting one another when they should be collaborating, management and its local vision in the face of strategy and its global vision. Only these two universes are totally interdependent. The top needs the bottom in our business to perform. To constantly transform and adapt its service but also the definition of its products and to be really in phase with the expectations of customers. Properties must be firmly rooted in their destinations because that is what customers expect. They don't just want a bed and breakfast, they want an experience both in the establishment and in the destination. Differentiation is not only between one property and another but also between one destination and another.Until now, the shortage of supply and strong demand linked to globalization have driven financiers to increase their selling prices. The quality/price ratio was greatly unbalanced. Employees have not been paid at their fair value, they have not been given the desire to stay and progress in contact with customers. And yet, we know that an inadequate and demotivated labour force is a fortiori detrimental to servuction in our professions! The other sectors do not deprive themselves of recruiting hotel professionals who are fond of their skills and their know-how.The breakup doesn't wait, it is necessary to adapt, to restructure and above all to know how to preserve its assets because a company is nothing without its living forces. We have never seen a successful company without employees who are involved, invested, motivated and federated, each of whom contributes their stone to the building by supplying the engine room with innovative ideas or simply by lending their smiles and faces on a daily basis and giving the establishments they work for a soul.
Article by Georges Panayotis

Those Who Adore Detesting, Are Now in Over Their Heads

Hospitality ON ·18 May 2018
Much progress has been made over the past 40 years in the accommodations sector! The new chain concepts have enabled the hotel business to develop considerably in France and Europe and, for some, in the rest of the world. Hotel groups are now number 1 on the old continent and the French hotel industry is one of the largest in Europe. This industry is thriving with very positive growth prospects and it is in full development. More tourists are arriving from all horizons and going to all destinations, what could be better!Our sector has become a magnet for young graduates. The days when the hotel business was a guild of innkeepers are over. The tourism industry offers opportunities to make any investor or entrepreneur dream. And to top it all off, this little world is collaborating and boundaries are being broken down.Real estate companies are working closely with franchisors to redefine products, franchisees are looking at a variety of brands to choose the right one based on potential demand and the location of their properties. Even builders are contributing their expertise to define their orders as they have a more complete view of technological developments. Professionals are clearly gravitating towards our sector. This is demonstrated by the success of our events that has forced us to push the walls in order to welcome them all. It is our great satisfaction to see participants exchange, share, celebrate innovation and all the transformations taking place in the sector. While some still lag behind, the movement is clearly underway.All these professionals who come together to share, debate and react are the driving forces of our sector. While their interests may diverge, the debate moves us forward and, in the end, everything is resolved as a family. The hotel business, once Colbertist in character, is now an open universe that while it certainly includes hotels in the strict and historical sense of the term (independent and undersigned) now also includes residences, residential leisure parks, hostels, hybrid establishments, a host of new concepts and so on... This is because of upheavals in recent decades, we agree, but the observation remains. The sector is changing and so much the better! It will come as no surprise that those specializing in decline are on their way out since there is no decline and, in our opinion, there will not be one.Investors are present, they have changed their image; while they sometimes shun France a little, they have a few years to catch up in terms of CAPEX, but they are there. Whether they are owners or single or multi-brand franchisees, all are ready to take risks and roll up their sleeves to create and progress. Professionals are also ready to roll out the red carpet for the Caisse des Depots, or any other French and foreign investor that effectively accompanies this changeHowever, it is our duty to promote the talents, imagination and creativity of our employees. It is thanks to them that we will be able to remain competitive by constantly developing our businesses and especially our products and concepts. We must make the new generations feel the potential for happiness and fulfillment in our professions and make our industry sexy and attractive. We must encourage employees at the bottom of the ladder to invest themselves in a long-term career in the hotel business and give them a glimpse of boundless career prospects. Many of the sector's managers and executives began at the bottom and have patiently climbed their way up to positions where they are now thriving.Edouard Philippe has established the Inter-ministerial Tourism Council to bring together accommodation providers, tour operators, destinations... Minister Jean-Baptiste Lemoyne announced he would draw inspiration from our work to inform the government's deliberations. We would be delighted to welcome the Prime Minister at the next Global Lodging Forum to present a plan of action to effectively support our profession and promote its development and profitability.We are undergoing a metamorphosis and are certainly not in our last molt. Many changes have already been made, but we will not go over them here. Make way for the future, for the development of our collaborations; We will always be there to gather, learn, analyze, debate and exchange, in short to detect, defend and accompany all these changes because we adore loving and building.
Article by Georges Panayotis

The Visitors 5: The Return

Hospitality ON ·24 April 2018
A recovery is wafting over Europe's economy, indicators are in the green, the time has come to reinvest. Our European destinations will fully benefit from this recovery. Less unemployment, better revenues, positive growth perspectives, all the ingredients are at hand to boost arrivals in tourism destinations.Experience shows that in recovery periods, it takes 3 to 5 years before the effects are felt on tourism activity, but cycles are shortening and the economic problems experienced by destinations in North Africa and the Middle East will naturally favor the transfer of tourist customers to our European destinations that are considered safer.All indicators converge to push us to reinvest in supply. Worldwide, the number of tourists is growing exponentially to reach 1.3 billion in 2017. In addition to such favorable development, which we should be delighted with, we should also be pleased with the growth prospects, and the very rapid development of digital technologies that enable us to know our customers better and serve them better.Although we work in a secular industry, we are fortunate to be in an ecosystem that, like the society whose trends it has always followed, is currently experiencing profound upheavals. These upheavals offer us infinite prospects that it is up to us to seize.Imagine Jacques Maillot, Gerard Bremond, Gilbert Trigano, Paul Dubrule and Gerard Pelisson as young entrepreneurs in 2018. Mr Booking, founder of the Tour Operating a la francaise with Nouvelles Frontieres, Mr Airbnb, founder of time shared second homes with Pierre&Vacances, Messieurs "servuctors" inventors of hotel and resort products including innovative leisure activities and services. They each revolutionized tourism between the 1960s and 1980s by breaking codes, providing complete and different offers with a strong identity and very good value for money. People came to Club Med to find heavenly destinations, leisure activities and out of the ordinary activities, conviviality and a strong spirit. They bought Nouvelles Frontieres products for a risk-free escape, they relied on the tour operator's expertise for exceptional destinations and to build an exotic and reassuring trip and stay at the right price.What would these "founding couples" of cruise products think? Cruise passengers invest billions of euros in the constant development and modernisation of their fleets. At the Global Lodging Forum, MSC Croisieres shared its 10-year investment plan (2017-2026) to the tune of 10 billion euros for the construction of 12 new ships, each capable of handling an average of 3,000 to 4,000 passengers. Costa Croisieres announced 7 ships under construction, including a very large carrier that will be able to accommodate up to 6,600 passengers. Who in the hotel business can boast such dynamism and confidence in the future? Especially when you know that ships must be 100% full to make their operation profitable. Let us recall here that cruise customers represent 27 million people transported each year, including 7 million Europeans and only 500,000 French. Products are constantly evolving and modernizing, each ship that leaves the shipyards is more efficient, less polluting, with services that are constantly evolving to satisfy customers to the maximum. The cruise product is booming and, no secrets, companies in the sector have never stopped investing and innovating.Meanwhile, if one of these founders were to go on holiday to a campsite, he would find that there too customers are the primary concern and the product has been focused on their needs.These great gentlemen would find palaces that are popular today with an ever-growing population of millionaires, but they would also find that the middle class has not evolved much and that much remains to be done for this segment. But as they are only passing through, a warning to the new generation. Because if nothing is done, the mid-range offer is likely to find itself sandwiched between the super-economy and the high-end, and invested by other products such as those from the sharing economy.The economy and mid-range offer, which has enjoyed its heyday, must be quickly revisited. Notice to the amateurs to take the torch and write the history of this category that represents more than half of the global offer.

Brand, management, and strategy: Craving M&Ms!

Hospitality ON ·18 April 2018
M&MS these are three magic letters to keep as a mantra. M for marque -brand- an image and notoriety that are indispensables to any company. M for management because without people, without their skills, a company is nothing. And, finally, S, for strategy, because without any long-term vision, a business cannot survive.To keep brands alive, it is necessary to be surrounded by designers, marketers, disruptors, chief digital officers who can develop brands and attractive products. Thanks to the creativity of the human mind they will find a way to speak to the client more readily than any algorithm or computer. It is also necessary to invest to build their renown, create a buzz and maintain their notoriety and their image. Lately, there has been a growing belief that with distribution, brands had become unimportant and unnecessary. That's a big mistake. Success is not just about market shares, leadership and product performance, it is also measured in terms of the emotional value of brands, which is indispensable in our profession where the competition is increasingly harsh.The world's hotel industry has major brands that have been established in the minds of consumers for many years, but some lose their aura because they have not been sufficiently refreshed. It comes as a surprise that distribution asks high commissions, but it must not be forgotten that it is the distribution that brings the customer, and no longer the brand. OTAs could have needed to create white label accommodations, as the food retail sector has done, but we offered them ours ready to go.Our little world has changed, and at the end of the day it's all for the better because these changes offer us new opportunities. Nonetheless, watch out for the disaster looming before us. No brands, no visibility, no voice in the chapter and no potential loyalty. If we ask guests how they choose their accommodations, it will come as no surprise when Booking, Expedia or Airbnb is the answer.Management is one of the cornerstones to business success. The new generation of millennials looks at their professional life differently than previous. It is important to adapt training and management to new generations. Pyramid structures are no longer adapted to the decision-making speed that is now required in the corporate world. Everyone must be able to develop their maximum autonomy and improve their skills.Nonetheless, we must ask ourselves the right questions. How is it possible for a sector as dynamic as ours, in full growth, with years of profitability behind it, to be struggling to recruit, to be so poorly valued? Maybe we haven't done everything to please.It is unthinkable to not have an integrated corporate strategy that is developed, visionary and shared with collaborators. It is impossible to create a short-term financial strategy that only weakens the company and its assets.The asset-light policy adopted by hotel groups is perfectly understandable for them to concentrate on their development and their core business that is the customer experience. But in a major industry like ours, it is necessary to look far ahead. It is necessary to have property owners that can make major investments to develop and modernize the supply to meet customer needs. Some foreign investors have been granted tax breaks, why not also offer them to French investors? This would make it possible to implement a dynamic and attractive supply policy, since landowners only ask to finance new projects and renovate existing ones when there is sufficient profitability. This must go hand in hand with the strategy of operators, brands, concepts and products, which must also be strong, attractive and perform well. Some concepts are no longer up to date and should disappear.
Article by Georges Panayotis

The French Hotel Supply Market: Nothing begets nothing!

Hospitality ON · 4 April 2018
While depending on the method - including listed hotels or not, those closed for works, in liquidation, permanently closed or even seasonally closed - figures for the hotel supply may differ... one thing is certain: the long-term trend is indisputable. In the best of cases there is stagnation, in the worst case a decrease, but in all cases, there has been a sharp drop in the hotel supply in suburbs and in small towns due to lack of demand and because of the heavy expenses these hotels must support. France, the world's leading tourist destination, with many treasures and many opportunities, is clearly under duress. Not only is the hotel supply not growing, but the destination is attracting fewer and fewer investors. The rise in property prices, the shrinking of hotels' operating accounts, the difficulty finding credit and the CDEC law back in its day, largely explain investors' disenchantment with this profession. Rather, we have witnessed its financialization with short-term operations that do not allow for the maintenance, development and healthy growth of the French hotel portfolio.Destinations such as the Cote d'Azur and Ile-de-France are becoming less attractive to tourists who are heading towards more "in" destinations such as the Catalan coast or cities such as London or Berlin. Because the rest of the world will not go on hold and continues to progress, to innovate, radiating with a dynamism that attracts increasing numbers of visitors.This year, the suburban budget hotel sector has fallen sharply. Old, out of breath, lacking brand image, this sector is no longer profitable and is sold for social housing. Neighborhoods with a bad reputation (whether usurped or based on reality), difficult access, or services unsuited to the current needs of customers, have gradually got the better of these properties. As for supplies in rural areas, it continues to shrink, visibly threatening the vitality of our countryside because these are sometimes the only economic activities that persist in areas often deserted. Victims of the suppression of signs leading to them, and sometimes badly managed, these truly French pearls are dying a slow death.The shortage of supply has greatly favored Airbnb in certain destinations. The arrival of the sharing supply and the development of hostels that make commercial accommodations in city centers more affordable are unforgiving. Why travel miles to sometimes underserved neighborhoods to sleep in unattractive establishments when you can stay in the latest fashionable establishment or right in the middle of a trendy neighborhood and have a different experience?There are no bad tools but bad craftsmen. It is time for everyone to roll up their sleeves and participate in the collective effort get busy. If we do not invest in our destinations, they will not survive. If we do not revitalize our hotel supply with attractive concepts adapted to the needs of our customers, tourists will no longer stay with us. It's obvious, why do basic when you can do simple, accessible, economical and innovative?It's quite clear: why stick to basics when it is possible to do simple, accessible, economical and innovative?Who will take matters into their own hands? Who will seek and find solutions to the French sickness? Is the government ready to mobilize all actors that stand a chance of boosting supply? Everyone must assume their responsibilities, state agencies must support hotel and tourism entrepreneurs instead of abandoning them, as the Caisse des Depots et Consignation was able to do by withdrawing from the capital of AccorHotels Group, Belambra, and Club Med for the benefit of Chinese investors. Let's bet that the French know-how which I hope will serve the development of hotel infrastructures in China will continue to prosper in its country of origin. As for the Qataris, who have invested well in French palaces, which we can only be satisfied with, why not offer facilitate things for French entrepreneurs as well? Why the double standards?Hoteliers need help playing their role, which is to constantly create and invent to attract customers. One thing is certain, if nothing begets nothing, with no new offer and no new investments, there will be no new market shares in sight and a great risk of losing those we have!
Article by Georges Panayotis

Make the hotel the most beautiful place on earth... opportunities to seize!

Hospitality ON ·28 March 2018
In order to attract and develop the loyalty of these clients, today it is all the more necessary to tell a story, make them dream, make them want to stay at your hotel... what could be more logical for a major group than to rely on its brands and reputation. Seems obvious, doesn't it? And yet, we question ourselves; we even sometimes worry when we see the direction some are headed in as they leave behind their brands' values to die after decades of renown.In today's consumer society one can get anything they want or need virtually immediately, anywhere and for (almost) anyone, so there is nothing worse than banality. It is precisely this banality that will kill the hotel product as surely as it caused the loss of other things that are now obsolete. The hotel industry has major brands built up in the consumer imagination for many years, but some have lost their aura as they are no longer fed. They are available in infinite varieties and lose all their substance. It is urgent to give creators and marketers back the opportunity to create and strengthen the brand universe; to do so it is necessary to strengthen their image.A not so distant horizon is looming where artificial intelligence will play an increasingly important role in our societies. It will take on many tasks carried out by humans until now and will also guide the consumer towards those products that correspond to him best thanks to big data diagnostics. It is therefore essential to work on one's brands to build their awareness and a strong image. Only a product, a concept, a hotel with a strong identity can stay afloat in the middle of a pool of accommodations that algorithms will sort through for the consumer. Vey soon that same algorithm will very soon send consumers offers selected from their information trails left on the web. It will no longer be about asking the consumers "what do you want?" but rather for hotel groups to look at their strengths and assets and create the right experience and product to fit these details.It is thus important to surround oneself with creative people, marketers, professionals who will be able to build attractive brands and products. Who thanks to the creativity of the human brain will discover how to address the customer with more assurance than an algorithm or a machine. Henry Ford rightly remarked, "If I had asked people what they wanted, they would have told me faster horses." Indeed, looking to the customer alone for suggestions is not how we innovate. Market research exists to finalize the product and complete its positioning, but without the initial impulse of creative people whose human genius has already advanced businesses, mediocrity rises, substance is lost and brands are weakened. Some groups (Accor, IHG, Marriott...) have repositioned their brands by creating megabrands especially on the economy segment. This same work on image and notoriety needs to be done for superior categories. There is still a long way to go and there are many things to create to remain competitive against hybrid products that speak the 2.0 (or even 4.0) language much better than the dinosaurs in the hotel industry that are less agile. Some of their products (Formula 1, Balladins...) located on the outskirts of cities are closing because they are no longer up to date due to product repositioning. These hotels, which no longer satisfy customers, are taken over by social organizations, as the insecurity in these destinations accentuated the collapse.However, hotel groups nonetheless retain the strength of their reputation, the skills of their employees and years of experience in the hotel business. Now it is necessary to develop and maintain the small spark that will allow them to shine on the national and international scene by offering attractive products that meet the ever more diverse needs of an increasingly demanding and better-informed clientele. This is an exciting challenge for those who are up to it!

The Sharing Economy: In Europe, we made a "Bang" but it wasn't "Big"

Hospitality ON ·21 March 2018
The sharing economy is a generous concept, but it is one with which Latin societies are not very familiar. Latin populations are rather attached to their properties, and have a difficult time sharing them with others. The company Gobee Bike which drew from the French market in a blatant illustration of the lack of respect in France (where the population is more accustomed to associative operations) for things that do not belong to them.Uber entered full throttle, suffered violent setbacks from the taxi corporation in France, and is suffering in Greece. The outcry is also heard from its drivers. Meanwhile, the company has sought to diversify its activity by offering Uber Eats - whose economic balance has yet to be demonstrated in the face of competitors who have been established for longer - and, recently, a service to take patients to the hospital.And how about Airbnb, which will celebrate its 10th anniversary next August and is now valued at $30 billion. It is shifting from a concept of private rentals, to a discreet and marginal use of the platform by accommodation professionals, to finish with the recent announcement of a section dedicated to boutique hotels. The company even offers a quality guarantee via an "Airbnb Plus" label paid for by the owners (120EUR) for which an auditor goes on site and checks the standing of the accommodations. In short, Airbnb is losing his soul. Will this change be successful? Nothing could be less certain considering the results of Trip Advisor's transfer. The change in the platform's business model from an online review site to one that monetizes the rankings of hotels and restaurants on its pages has not been successful. The online advisory firm has gone from a valuation of nearly 12 billion dollars in October 2015 to barely 4.5 billion dollars at the end of 2017. A word to the wise...These so-called sharing economy companies are setting up and growing in a legal vacuum by proposing innovative or even revolutionary concepts in certain cases. But few manage to swivel around within their concept to adapt to new regulations and to lobby groups that take shape... In a desire to become ever bigger, entrepreneurs lose their souls as they forget their fundamental concept and philosophy.These so-called sharing economy companies are setting up and growing in a legal vacuum by proposing innovative or even revolutionary concepts in certain cases. But few manage to swivel around within their concept to adapt to new regulations and to lobby groups that take shape... In a desire to become ever bigger, entrepreneurs lose their souls as they forget their fundamental concept and philosophy.This pitfall can only be beneficial for traditional commercial accommodations that work in compliance with regulations and develop an economic model and products that have long met their customers' expectations. This does not mean, however, that we should rest on our laurels; on the contrary, it is necessary to fight, to improve properties again and again, as well as operations, to seek profitability by relying on the tools now available thanks to the development of digital... The real problem is to know who will invest the necessary CAPEX and what a brand without CAPEX is worth.An economic war is brewing, as we shift from a period of open borders - which has resulted in increased imbalances - to an era of exacerbated protectionism. As it withdraws into itself, Europe finds itself in an uncomfortable position because its very essence is the opening up of the single market both internally and externally. Web giants are American or Chinese and they have growing influence on the consumer. Google, for example, absorbs 89% of searches through its search engines alone; Amazon, Apple, Facebook and Google together weigh over $3 trillion. But it would be wrong to believe that all is said and done, there is still time to act and to anticipate the crisis that is brewing. Make no mistake, in the end the consumer will decide. Faced with increasingly expensive products, he will look for substitutes.Protectionism, taxation, inequalities, compensation of unskilled workers, the race for profit, dividends, inflation... all these ingredients combine perfectly to create an unstable and dangerous cocktail. Long-established companies, with solid business models, should have all the cards in hand to win, but the battle will be tough and merciless. Right now, the answer to these issues can only come from the European Union.

Growing a small business: Fruit bearing trees must be tended to!

Hospitality ON ·13 March 2018
Agriculture represented 714,000 jobs in 2014 compared to 899,000 jobs for hotels and restaurants. France's granary brings in 32.1 billion euros per year, or 1.5% of the GDP, compared to 7.2% for tourism, which brings in 160 billion euros of domestic consumption. The agriculture sector - which is essential to the health of our economy and to our health in general - has been subsidized since the birth of the common agricultural policy more than 50 years ago, while hotels and restaurants generate foreign exchange and taxes which are used to finance the state budget. In 2015, 282.6 million euros were paid to municipalities and local authorities via the tourist tax. Don't throw any more...While global groups are able to absorb debt, implement tools and processes to make economies of scale, and have an international base that allows them to withstand periods of crisis in certain destinations, independent hotel and restaurant owners must maintain their activities alone, against all odds. More than 95% of companies in France have less than 20 employees. Hoteliers and restaurateurs operating in rural areas, produce value for a region, hire and train locally and often find themselves alone to manage their business and maintain it with respect to market competitiveness standards.Hotels and restaurants are long-term investments in a territory. They support the dynamism of a tourist destination that can build a coherent offer around a coherent offer of accommodations. It is a workforce trained in French excellence that has seen the birth of the cuisine of star chefs. The culture of French gastronomy has now been exported but its reputation is international and the whole world envies us. We must not forget the importance of our sector. While it is laudable to come to assist the weakest, it is dangerous to only turn to those who are loudest and forget about an industry that is less significant from an electoral point of view despite being much more important for the vitality of our economy.Why is it that cafetiers, hoteliers and restaurateurs who spend their days in the kitchen are taxed more than large companies? Why is it that independent accommodations and restaurants receive so little help for the day-to-day management of their business? Why is a small property taxed on the same basis as a multinational? Is it not possible to relax certain regulations for small craftsmen, as is the case in other sectors? It is not a question of asking for less from independent properties, but rather of asking for better and for helping them to maintain their activity that is vital to the quality of our reception. Indeed, we are not talking about the hotel groups that are established in rural areas where tourists go for a just few weeks a year, but rather about independent properties are active most of the year with an open cafe, the organization of events...The time has come to consider the sector for its true value and to accompany it in its transformation for its sustainability and for the attractiveness of our destinations. The hotel and restaurant industry is a sector that is thriving; it has reinvented itself and continues to evolve. If we continue taking advantage of the beast instead of accompanying it as it evolves, we risk cutting off its wings.
Article by Georges Panayotis

Unlearning to learn also means inventing

Hospitality ON ·21 February 2018
The model of Fordism, based on a virtuous cycle of improved mass production, resulting in markedly improved results and therefore better remuneration for employees, was the first step towards drastic changes in the working world. The quality circles introduced in Japan in the 1960s by Kaoru Ishikawa, and which arrived in Europe in the 1980s, have allowed the Land of the Rising Sun, through mastery of manufacturing and strict quality control, to develop exponentially in terms of productivity and to considerably expand their catchment area due to the quality and competitiveness of the products offered. In the United States, once again, another milestone was reached with the development of Silicon Valley, the cradle of the digital industry, which has been transformed through the fertile ground of the electronics industry. Apple was born in 1976, Amazon in 1984 and Booking in 1996; in short, the digital empire did not grow over night.Humans are the driving force behind all these transformations. Well-trained operational staff are sentinels who can help companies adapt their strategy, development plans, products to underlying trends.... While quality continuing education is essential to the good health of groups, the same is true for initial training. Schools and universities have offered training for several decades and even more than 100 years for some; but have they all kept abreast of changes in professions, the skills and needs of our companies in order to train tomorrow's professionals so they can contribute something through their vision, knowledge, dynamism and passion to the groups they will join? The question deserves to be asked.Likewise, hoteliers should not remain spectators of the changes taking place within their trades and environments, they should embrace them. They must also give their employees the opportunity to incubate projects that could become the strength of groups tomorrow. Some have understood it, such as Marriott with its Testbed program. Marriott has been encouraging start-ups to come to their doorstep since last year through a competition organized with the possibility of testing their concept in Marriott hotels in Europe or the Lab Canvas for catering. The French group AccorHotels has been investing in digital for 4 years now by buying high-potential companies and hiring executives who are experienced in digital technology. They are developing partnerships to bring digital technology into their properties, such as the Business Check project in conjunction with Linkedin, which enables business travelers to connect with one another at the group's properties. It is also introducing chatbots through the PhilWelcome application, which communicates with the group's clients in French and English. The sale of part of its assets will enable AccorHotels to boost its investments in the park's development and intensify its digital efforts.No one knows his or her job and its needs better than a hotelier to direct young start-ups to develop products, interfaces, software and whatever else is needed to facilitate the work of operational staff, decision making and even create a real competitive advantage by creating a "wow" effect to boost an offer that may be outdated and far from cutting edge. By cultivating difference and excellence, new products and new concepts will emerge that will be able to conquer tomorrow's clientele.
Article by Georges Panayotis

Rights need a helping hand

Hospitality ON ·13 February 2018
More than 400 years ago Moliere said: it is not always enough to be on the right side; sometimes a little extra help is needed, a little nudge that makes it possible to go further and succeed. The tourism industry reports an impressive bill of health with 20 years of steady growth that can be expected to continue for years to come. Just over 60 years ago, 50 million travelers journeyed the world around. Today, there are more than 1.3 billion.The tourism sector represents 5% annual growth on average, 1 in 10 jobs worldwide and 8 to 15% of the GDP of developed countries. In France in 2016, the sector accounted for 49 billion euros in revenues and 2 million direct and indirect jobs. An iron constitution, steady growth, a development of the offer which is far from compensating for the growth in demand, trades covering all the chains of skills: from the technician to welcome staff, middle management and even the company's boss.... What could be better? So why does this sector, which is such a driving force for the global economy and so in tune with the changes in our society, receive so little consideration from our governments?What have our governments done to support our industry and increase its development potential? Why was it slow to protect companies from raids by pension funds? Why didn't we protect hoteliers from the internet giants? How are we helping territories maintain quality and renew the supply? How is investment promoted? How are entrepreneurs in the sector encouraged? How do we make tourism sectors attractive to young graduates? How do we restore pride in the profession? How can we promote jobs in hospitality? How do we support VSE entrepreneurs to facilitate management of businesses with a strong need for manpower? How are regulations streamlined to support the sector and maintain its competitiveness?The results are poor, because for decades we have passed from do-nothing committees to meetings among ourselves, forgetting to address tourism entrepreneurs. We define great strategies, we launch great studies, we extract fabulous figures from them - when they are not erroneous - but to what end? If each individual tries to make more noise than the person next to them, to announce good numbers first and pretend to be an expert in the tourism sector, the machine is exhausted because resources are scattered, actions are not coordinated and the sector is divided. Turf squabbles and other selfish battles are murderous.The United States, China and the Middle East are investing and developing their offer very actively, while in France the hotel supply is stagnating in volume and ageing badly. If we are able to attract foreign investors, why can't we encourage French investors to participate in the development of their economy? Are we on the move to listen to the profession? Are we proud and do we value successful companies? Do we agree to give them back their role so they can innovate, create jobs and develop a new supply? This is the way to remain competitive on the international stage; if everyone stays on their own turf and if objectives are not shared and clearly defined, France will continue to lose its splendor as a destination. Although tourist numbers in France are still high, it is also true that French destinations are losing market shares compared to their international competitors, and yet destinations continue to brag while resting on their laurels. The danger is that companies in the sector are becoming less and less profitable, and they are unable to make the CapEx investments necessary to renovate their products, let alone re-launch a supply in the quantity and quality needed to restore the industry to its rightful position on the international scene.
Article by Georges Panayotis

Change is good

Hospitality ON ·23 January 2018
Today, the situation has changed. No matter what we say, the hotel sector is not a priority for our government. On the one hand, the welfare state is no longer there and the consumer society has changed drastically. To adapt to the current context, hotel groups have sold their assets to investors with longer-term profitability objectives. The owner of the trademark is no longer the owner of the walls. On the other hand, the giants of the web have absorbed distribution, which in turn offers a turnkey solution to hotel owners by giving them the power of the Internet network to reach new customers. Although the transition has not been smooth, there is no doubt about the role played by online booking platforms.It is no longer a question of hotel chains orienting their franchised hotels, but rather a customer/supplier relationship. As each owner-operator has invested considerable sums of money, he expects his franchisor to provide concrete logistical assistance and support that will help his property become more profitable. Hotel operators are no longer passive, they have become active, they must be convinced and will choose the products, solutions and services adapted to their properties. Hotel chains must innovate once again, they must rework the product/market pair so that it corresponds well to the reality of the needs of the end customer and also of their business partner, the franchisee. It is important to give the operators not only tools but also a strong brand that stands out for the customer by tapping into their imagination. The facts of the equation have changed in a few decades, it is no longer a question of reassuring the guest but of making them dream to develop a strong attachment to a brand that must resonate with their own values and encourage them to remain faithful to the brand's products.By innovating in terms of products, promoting economies of scale to regain productivity, training staff in new technologies, and providing the robotization necessary to give vitality to operating accounts... the brands will justify their remuneration. The change in the way that hoteliers have served their customers with increasingly individualized proposals has been gradual. Groups would be wise to consider their ties with franchised properties in a similar way.The real competition and production of service happens locally. It is vital for groups to get back in touch with the field to be more responsive and provide each of the properties under their banner with useful answers to maximize profits and facilitate day-to-day management. It is indeed the product manufactured on this scale that will give hotel owners new impetus to win back their clientele.Hotel chains can take destination marketing back under their control, by way of operational marketing and training hotel staff. Because only the field teams know their territory well and bring a relevant offer to the hotel's clientele.The hotel business has not completed its transformation and if cycles repeat themselves, they nonetheless change. It's worth the risk, but we need to put our cards on the table and renew with the culture of a partnership that is profitable for both parties in the long term. In the end, change is good.

Renovate to innovate

Hospitality ON ·16 January 2018
This productivity issue must therefore be faced head-on and reinvent ourselves, because today's hotel owner can no longer be a mere innkeeper. He must rethink how space and time are used, especially during the day, with day use and coworking among other things... the time has come to export - on the franchisee side as well - just as the big names in French cuisine have done for a long time now. Why are French hoteliers so reluctant to globalize, when success just may be accessible?In order to succeed in a world where value for money is being restored to its rightful place, it will be necessary to work on concepts. All that is "collaborative" has been widely criticized lately, but its legitimacy is partly due to the fact that we have not innovated enough in our sector. France is full of exceptional heritage (such as castles, public buildings, monuments, museums, etc.) that tourism and hotel operators could put to better use if they were able to reach new customers and offer new experiences - which the new platforms can make possible. At a time when sustainable development is a fundamental trend, what could be better than to be able to "recycle" the existing buildings that consitute the charm of our regions?In all areas, new concepts and new niches are just waiting to emerge. One example lies in the evolution of public opinion regarding medicines, systematic care through chemistry, and the rise of alternative approaches where food often plays a central role. This is, of course, an opportunity to develop F&B concepts (naturalness, vitamins, organic...), and perhaps even revive entire industries and territories. Look at our spas or tourist resorts: in many cases, time - and the Capex - seem to come to a standstill somewhere in the last century. Perhaps these new concepts will rejuvenate them tomorrow. All that is old once held life and we would be well advised to capitalize on our roots and those of our customers who are a powerful engine when it comes to building and innovating on solid foundations and bringing strong differentiation to our products.Socialisation and artificial intelligence are the two legs on which the new concepts must be based. Creating interaction between empathy and the effectiveness brought by artificial intelligence will allow us to better respond to customers' desires and expectations.In order to succeed in this endeavour, it will not only be necessary to recycle old recipes, but also to find, for all products, the new key factors that will make the difference for each customer profile. In short, it is time to open up a new cycle in which "socialization" and "customer experience" will no longer be peripheral services but core services of our products.
Article by Georges Panayotis

2018, a fresh start for France's tourism industry!

Hospitality ON ·10 January 2018
As the new year begins, it's not a bad idea to look behind us. Such moments of introspection can help us get ahead. A look at Paris illustrates all we need to do to improve France's tourism development.Paris's supply has long been insufficient in light of the destination's appeal and the constant increase in the number of tourists traveling worldwide. For many years, for example, it was difficult to find rooms in Paris during major events. This has had its consequences on the development of collaborative hosting and price increases.To complete introspection, we must recognize that the image of our destination has been gradually spoiled. Terrorist attacks, mediocre reception, purse-snatching, rudeness of Parisians who see tourists as intruders... are as many filters that have slowly conspired to veil the brilliance of the City of Light.France, which has exported new hotel concepts for the past forty years, is now being overtaken by England, the Netherlands and Germany. What policies and incentives should be implemented to stimulate innovation and creativity in the hotel and tourism industry? New concepts are essential to renewing and completing the French and Parisian offer and to developing the appeal of its territories.Tourists' have many expectations and these evolve very quickly. Until now the City of Paris has prioritized the demands of its residents, meaning its voters, with little concern for satisfying its tourists. Was this a good policy? Was it realistic to want to make tourism a national priority without listening to the needs of tourists?In order for the destination to have a positive and attractive image worldwide, it must change how it welcomes tourists; in comparison to other European capitals the difference is gradually increasing. Entertainment and events are important for attracting tourists and making them come back. They are also positive for residents who see their cities differently and benefit from the financial windfall generated by tourist spending. They must be developed while ensuring cohabitation is harmonious and beneficial for all.We must work together to improve the visitor's experience from the moment of their arrival to choosing accommodation options in terms of range and type, and the leisure activities available. Transportation also requires extensive improvement, and increasingly connected tourists require Internet access... Supply and infrastructure must be renovated, improved and developed to meet the current standards of international tourists' expectations. The refurbishment of the area at the foot of the Eiffel Tower is one of the countless projects that must be carried out to restore the capital to its former glory. It has just been launched with the project "Grand site Tour Eiffel: Discover, approach, visit" but the City of Paris must not stop there.It is time to prepare ourselves for battle to win back the favor international opinion, tourism development policies are infinite. The fact the Olympic Games in 2024 will be held in Paris is a strong and very positive signal that must be exploited to the fullest extent. This sector allows us to gather and build together in spite of differences and adversity, as the President of the Republic has urged us to do.I would like to wish all an excellent year of recovery, and set off full sail with our sights set on the 100 million tourists around the world!

Pulling on the grass won't make it grow...

Hospitality ON ·19 December 2017
Desperate times call for desperate measures. The planet is overheating and each and every one of us plays a role in this battle against climate deregulation. The French government wishes to be a forerunner leading the battle to preserve our ecosystems. In the meantime, hoteliers can do their share of the job and participate in the attack, but for that to happen they need some concrete assistance that is useful and can be mobilized.Of course, there are measures to promote the energy transition but they are not enough, the hotel loan is capped at 400,000 euros for example, a drop in the bucket when it comes to the expenses that go into renovating or creating a property. Professionals in the sector did not wait for the government to make progress on these fronts. Reduction of energy consumption, waste reduction, insulation, the development of shorter circuits and the use of automation are all levers for substantial savings.Sustainable development is a driving force for innovation, development and communication. The sector has everything to gain by rushing into the rift to become the flagship of an "ecologically correct" nation and showcase leading edge and attractive destinations. Hotels have long been forerunners in terms of housing, offering comfort standards and state-of-the-art facilities, but this period is over thanks to the democratization of consumer products. Investing in sustainable development will make it possible to regain the advantage and recover the "wow effect".A great deal of progress has already been made, with operators, manufacturers and suppliers working together on new solutions. The "Village Nature" program developed by Pierre&Vacances Center Parcs near Eurodisney is a good example of the profession's desire to move towards increased sustainability. But what did it take to develop the complex? From the birth of the idea in 2003 to the laying of the first stone in 2014 and the official opening a few months ago - when it was originally planned for the end of 2016 - some 15 years passed.The hotel industry is a highly employment-intensive sector, generating significant economic windfall as well as taxes. Our sector faces competition from digital companies that do not play by the same rules, and must go to war on unequal terms. The threat has also arrived on other fronts with the strong crises that have passed through several tourist destinations as a result of the terrorist attacks that have shaken the world. While the sector has come out of the slump in Europe, it has been weakened, undermined by months and months of declining activity. The machine has started again but will never be able to make up for months of shortfall. The decline in the hotel supply in France, while it is growing rapidly elsewhere in the world, gives rise to questions. Where will we house the 100 million tourists expected by 2020?The government can rely on a dynamic and well-structured sector to anchor and grow sustainable development in the territory, but to do so it must invest the resources and firmly support the sector in this direction. As with any large-scale project, the key is to launch it and implement concrete actions to encourage the development of a hotel supply that will have fully completed its energy transition. The hotel business is not grass, which can be mowed at will and which always grows back. New seeds will have to be brought in and patiently watered to improve the image of France as a destination for tourists and make it more appealing.
Article by Georges Panayotis

L'Envie d'avoir envie, or the Desire to desire: the Johnny syndrome

Hospitality ON ·13 December 2017
One was an accomplished intellectual, crowned and praised, who spoke with his spirit. He excelled in the handling of words, ideas and concepts. The second one spoke with his guts and heart. He lived strong moments of communion with his audience and shared an immense love with his fans. Like the Greek gods, he possessed intense powers although he was not free of defects which are only all too human. One concerned himself with the knowledge of being, the other with the desire to be.At a time of experience and remembrance, the relationship between customer and brand has changed dimension. What is important is not the price, but the pleasure and memories that can be drawn from an experience, one no longer consumes, one experiences. At the last minute, we crave sunshine, an escapade, family moments and a return to our roots. We want to be recognized, familiar and indigenous everywhere. These new motivations, expectations and behaviors cause us to question certain achievements and revise how we operate.It is important to speak to your guest's heart, share a part of yourself with them and tell them a story. For this, it is imperative to develop the human qualities of staff in addition to their skills. It is necessary to teach them to build unforgettable moments for their guest with respect to their personality, their tastes, their knowledge, their preferences...Knowledge lies mainly in the hands of the elite who define the strategy. Know-how is a set of skills that any well-managed and trained person can potentially acquire. It is the acquisition of the right gesture, the knowledge of the tool. Knowledge of being is sometimes intangible, but it is essential. It is a mixture of listening, availability, service sense for and with the other, and it is more complex to master. To find the right moment, the right words, reassure, guide, render the service expected ... it is also to develop human qualities and increase the guest's loyalty to the brand or establishment. Because let's never forget it, hospitality is to welcome the other, to offer him lodging and food, as well as conviviality and human warmth.Marketing, which has been a revolution based on technology, target concepts, markets and segments, must now be directed more towards the humanity of those who produce and manufacture services. It will no longer be enough to know the targets, it will be necessary to know the hearts of men and women to better meet their expectations. By putting a soul back into the production of our services, the properties regain strength that has been missing because very often productivity has dehumanized our services.We will rebuild efficiency and re-create value by giving our employees the desire to inspire. The key to tomorrow's success will result from developing our employees' human qualities. It is imperative for our sector to create, build and retain value with its employees in order to recreate conviviality. Initially, hospitality was based on philoxenia, a word full of meaning: "philos" the friend and "xenos" the stranger. We must offer our visiting guests friendship. It is possible we have forgotten a little bit about the friendly and human side of this relationship.

Trip Advisor: The fox who believed himself judge

Hospitality ON · 5 December 2017
The growing adolescent reached its peak in the summer of 2014, but failed to stay on track. Instead of consolidating and expanding on the foundations of its original business by increasing its revenues through advertising, the platform sought to monetize its database. It wanted to turn customers who posted comments online about hotels into gold by selling their data. Price comparison platforms are no exception to this race for profit.Slowly but surely, errors and inconsistencies are corrected by the laws of the market and consumer democracy. The initial idea was praiseworthy on paper, allowing everyone to express their opinion regarding the services provided for one and offering a global vision of the offer on the web for the others. But it becomes a problem when they want to be both judge and parties.It offered its partners the opportunity to sell their products online while installing a smoke screen between online notification management and consumers. From the moment the platform began to evolve in turbulent waters by "offering" referenced companies increased visibility for a fee, the worm was in the fruit. By trying to monetize its core business, it sawed off the branch that was its base, thus weakening its economic model.The threat is growing with the latest legislative changes that prohibit any modification or deletion of online notices submitted by consumers without prior request. This new law should cut short the small arrangements between friends that had become too common in the race to maximize profits. It should also be remembered that deceptive advertising is punishable by law, but nevertheless remains unpunished for the sites of online comparators.It is much more reliable to consider opinions sought from a wider and more representative user group. Everyone knows that unsolicited opinions come from the happiest and most dissatisfied customers.Ralph Nader burned his own wings when he entered politics in an attempt to shine even brighter on the international scene. He was unable to find the right model to take advantage of the notoriety gained from the work he had done in consumer protection.Today this consumer has many ways to find transparency when it is not available at the source. It is therefore no longer possible to drown the fish and take advantage of a dominant position to monetize data at all costs. Price comparators also need to review how they work in order to really serve the customer. It is not permissible for a particular product to be placed at the top of search results in exchange for compensation paid to the comparison platform.As during the reconstruction period after any tsunami, there is a return to fundamentals, the offer refocuses on a strong and attractive product, often under pressure from the consumer. Everyone must be in place and play their role to perfection, or be subject to sanctions from their peers, investors or the client.
Article by Georges Panayotis

When everything is worthwhile, nothing is...

Hospitality ON ·29 November 2017
Today's clientele refuse obligations. They want to experience their stay in accordance with their needs and habits with comfort at least equal to home. Both in the hotel and outside, they want to have ready access to restaurants, services and leisure. Moreover, the new concepts did well to open groceries in their lobbies and offer snacking locavore services. It may be necessary to go even further and accept deliveries to rooms and giving guests access to the equipment they need to be autonomous during their stay without depending on the hotel's restaurant. Room service and restaurant need to be among the considerations of hotel directors. What should be done with this service? How might it be adapted and turned to profit? How could it be positioned in light of increased competition that is just a click away?What would happen to the budget to mid-scale segment on the outskirts of cities where tourists no longer wish to go? How will good locations be determined in the future? Jobs are making a comeback to urban centers to the detriment of business parks. Consumers are returning to what is authentic and local.Restaurants fave gone from prepared products to sous-vide to return to fresh products, which are a gauge of quality and taste. Customers want to know what they are eating, and more generally what they buy into. They will no longer accept standardized offers no matter how complete they are if we are unable to off er that little something that makes the difference. The extra bit of soul that makes them come back and share us with others.Ecosystems change in addition to the accommodations themselves. It is important to be aware of these changes in order to make good long-term investments. The second breath that can be given to aging properties may not be enough. It is imperative to think of the hotel within this ecosystem if it is expected to perform.In the absence of strong products, banalization has resulted in hotel brands being identified by the consumer through Opodo, Trivago, Google, Expedia, Booking, Trip Advisor, Airbnb... Tomorrow, the accommodations that will be able to exist in the face of these giants will be those that are able to provide experiences, products, services with a strong identity, savoir-faire, a recipe and a unique flavor. The competition will be harsh and innovation permanent because in terms of service, the word "copy" is but a banality. These experiences will not belong to a brand or a label, but to a team of local managers able to manage their reputation directly using digital tools. Hotel nights will no longer sell like hotcakes, the experience will be created with hotel staff with the client in real time.Let us consider that the changes will be radical and the market will not be light handed with those who are unable to anticipate and have not wanted to see the new needs and lifestyles of our consumer society.
Article by Georges Panayotis

Hospitality Giants: Making a lot of noise

Hospitality ON ·22 November 2017
One might wonder about the strategies adopted by tourism professionals. For example, carriers that also offer accommodations, leisure, transfers, car rentals and even packages in addition to their core business. But did they focus on the experience they offer their customers during the trips they offer, whether by train or plane? Have we really asked ourselves the right questions? Have we made the right decisions? Our doubts are raised when we think about punctuality, whether it is trains or flights, or about the professionalism of navigation crews for certain services. Let's not forget the cleanliness of certain unavoidable spaces during 4 hours of journey or the quality of the food service as well as the conformity and quality of products. As for the value for money, it has long since been forgotten in favor of yield management, which, rather than managing rates according to demand, has led to a galloping inflation of prices. How is it possible that a trip from Paris to the Cote d'Azur in full summer costs the same as a flight Paris-New York? What is true for transporters is true for all sectors of hotel tourism.If we look at all these aspects, it is clear that the customer experience can be unforgettable, but not in the right sense of the word. As Winston Churchill said, "However beautiful the strategy, you should occasionally look at the results." In the end, it is the customer who chooses.The tourism, transport and hotel industry with the hotel industry in the lead, maintained its margins by inflating its rates instead of improving productivity. Companies that have been in an oligopolistic situation for a long time have developed a Malthusian method for controlling supply, with the complicity of the conservative government, which wanted to preserve its companies, focused on their needs and gains, while remaining completely disinterested in the expectations and needs of their customers. A few years later, the bill is high for both the customer and the operator, who did not anticipate the benefic arrival of the GAFAs and collaborative strategies. It makes it possible to correct the excesses that must be eliminated in order to get back onto healthy and profitable footing for everyone. End the inflation of prices that no longer correspond to customers' wallets, offer qualitative and differentiating products: this is how we will move forward.The evolution of the market shows us that the new generations alone are in a position to offer products that really break away from the existing offer. The market shares of this supply are eroding slowly but surely in favor of newcomers, simply because it no longer meets customer expectations and is unable to reinvent itself. If the market does not resist erosion, it is precisely because the products cannot withstand the pressure. If the liberalization of bus lines, carpooling and AirBnB has taken off so fast, it is because the products available no longer meet expectations and must be reformed.Many suffer from blank sheet anxiety; they are paralyzed by the comfort in which they have evolved for decades and are unable to see the precarity of their position on the world stage where Priceline , owner of, is valued at more than 90 billion dollars against 43.4 billion dollars for Marriott, the number 1 which operates more than 1.1 million rooms worldwide. Warren Buffet clearly summed it up: "When you're in a hole, it's best to stop digging."So what should we do, keep making noise with our mouths hoping to hide the void and lack of ambition of some, or start from scratch? Rupture does not wait, it has already largely reshaped the sector and redistributed the cards. Maybe it's time to pass some of the revenue through profit and loss to give the industry a breath of fresh air and blow a little oxygen back into our little world. In a few years, let's check back to see the results of the strategies each has chosen.

Hospitality is and will remain a heartfelt industry

Hospitality ON ·15 November 2017
We are now faced with an infinite set of possibilities. The range of our products will be constantly redefined by the predictive model, which will enable us to anticipate and fulfil almost all of our customers' wishes. Hotel performance will also depend on brand strength and customer experience. This customer, who is increasingly present and whose requirements and needs are multiplying. This same client, now has a major influence on the e-reputation of our accommodations and expects an unforgettable experience: the memory that we offer him must mark his heart and mind.In order to cope with these inevitable developments, it will be necessary to reinvest in human resources and transform the organisational structures and missions, but also rethink reception and provide services. In short, constantly redefining service, which is nothing more than the interaction between clients, staff and physical support.By putting people back at the heart of the company, by valuing its missions, skills, motivations, know-how and enthusiasm we will progress in providing the service. So far we have invested in training our employees' brains, in learning, in execution, in transmission, in management. Their hearts must now also be educated and we must help them develop their humanity.At the headquarters of our companies, we need great strategists, but also great managers to make decisions on a daily basis, because in our business, one cannot do without the other. The right balance between operational staff, knowledge and power is the key to the success of our business. It is also in these areas that the desired and announced breakthrough must be achieved.There is one thing that artificial intelligence will probably never be able to match. The Greeks called it phantasia: our exceptional ability to dream, imagine, enjoy, improvise, to take an opposing position... in short, to create the conditions for progress. By combining human intelligence and artificial intelligence, we will enable our industry to enrich its soul, avoid the disasters that await us and return to prosperity. It is this right balance between intelligence, nous and phantasia that will determine our ability to make dreams come true.

Hospitality: You sleep, you dine

Hospitality ON · 7 November 2017
Here again, digital companies such as Deliveroo, are multiplying the catchment area of restaurateurs without forgetting to take a substantial commission - any resemblance to hospitality players is not accidental.The sector faces many significant challenges. Employees dislike this demanding line of work, with its far from administrative hours, devaluation of the restaurant trades and their know-how. The exponential development of takeaway catering parallels changes in customer habits. The power of catering groups stands in the face of restaurant craftsmen who find it difficult to comply with regulatory and fiscal requirements that are sometimes totally inappropriate to their structure. All these pitfalls must be overcome by deploying the skill of a seasoned captain.Some of them change courses by proposing new concepts that surf the wave of new trends and customer expectations. Friendly spaces where kitchens open onto the dining room offer a show skillfully orchestrated by chefs who are increasingly becoming media personalities.Menus and supplies are also evolving for more local, organic products that answer the demand for authenticity and healthy cooking. Special diets based on choice or health concepts are increasingly taken into account. However, this return to the origins - after many years of using processed products - has a cost in terms of raw material purchase but also in terms of working time and preparation, which requires very precise organisation, a bursar and management as well as qualified personnel.The arrival of digital technology in the catering industry will, and for some already does, make it possible to streamline and simplify management between the dining room and the kitchen, for example with orders placed on a tablet in real time. Some hotels invite their guests to order their meals directly from their smartphones with the possibility of picking them up whenever they want.Flexibility, authenticity, healthy cuisine and an original image are the watchwords for an increasingly informed, health-conscious customer who wants to respect his dietary habits. Restaurateurs must find the concept that works and adapt quickly or die.After having long considered the sector a necessary evil, an important cost item that is difficult to turn to profit, hoteliers now give it the importance it deserves.A real living space in the hotel, where all customers meet in more porous and flexible spaces at any time of the day, relaxation and catering areas become a tool for differentiation and an additional argument at the service of the property's identity. Combined with a permanently available grocery store offer at certain brands - notably hotel apartments and tourist residences - the restaurant area occupies a central position in shared living areas and plays an active role in the evolution and growth of hotel products.It is open to local customers and contributes to the life of the destinations where accommodations are located. Sushi shop, tapas bars, finger food.... these rapid and user-friendly consumption patterns meet current consumer expectations.

Real estate: AirBnB builds a new strategy

Hospitality On (by MKG Hospitality)·Requires Registration ·23 October 2017
The US based company has announced the construction of an apartment block being built in partnership with a property developer in Kissimmee, Florida. By embarking on such a development, is the giant starting what could be a strategic turning point?

HR and Career Development: The Best Hospitality Initiatives at #WHA17

Hospitality On (by MKG Hospitality)·Requires Registration ·20 October 2017
A few weeks ahead of the 2017 Worldwide Hospitality Awards ceremony, meet the 12 candidates for the award of "Best Human Resources and Career Development Initiative", and vote for your favourite. Ressources humaines et développement de carrière Ressources humaines et développement de carrière This year, no less than 12 candidates have been shortlisted for the title of "Best Human Resources and Career Development Initiative" at the Worldwide Hospitality Awards. Candidates presented a variety of submissions, which can be grouped into several categories:

Worldwide Hospitality Awards: prestigious guests!

Hospitality On (by MKG Hospitality)·Requires Registration ·19 October 2017
This 18th Worldwide Hospitality Awards ceremony will welcome Sébastien Bazin, Luc Chatel, Jean-Baptiste Lemoyne, Gérard Pélisson and Sir David Michels. This notable guests will be at the Intercontinental Paris le Grand on November 8, 2017.

Reinventing Grand Paris: Focus on new hotel projects [Interactive Map]

Hospitality On (by MKG Hospitality)·Requires Registration ·19 October 2017
The winners of the call for projects for the metropolis of Grand Paris have been announced. Among the 51 designated sites, more than ten include innovative hotel projects. Location, design, capacity, operator... what characteristics will these new hotels have?


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