International Tourism Management WiSe 2008/2009

Introduction Hospitality

Content
Hospitality and Management: Knowledge, Experiences, Expectations Everchanging Tourism Basics of Hospitality Expansion strategies in international hotel operation Management in hospitality Marketing in hospitality Production and Management in hospitality Controlling Brand-building in hospitality Wellness in hotels Starting a business in the hospitality sector Abbrevations Sources Internet adresses

Knowledge Experiences - Expectations

Hospitality Why am I interested in this part of the tourism system (even though it has the biggest human resource fluctuation of all?)? Which experiences I already have in this field - as a customer - as an employee
3

1. Everchanging Tourism Basics of hospitality

Basic situation and development of the tourism sector 1.1 Economic importance of hospitality 1.2 Segmentation hospitality 1.3 Segmentation Food and Beverages sector 1.4 Segmentation Accomodation sector 1.5 Definitions Accomodation companies 1.6 Minimum levels of hotel room offers 1.7 Actors in the accomodation market 1.8 Segmentation of hotels 1.9 Different types of accomodation 1.10 DeHoGa German Hotels Association 1.11 Hotel classification in Europa a critical view

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. Massmarket holidays are often sold as a dream vacation when they are often anything but. (Quelle: www.travelmole.com Issue 226 (Sept. 2002), zitiert in Page 2003)

General development Tourism market

Supply Side Concentration process Internationalisation of competition Positioning of Travel agencies End of closed shop distribution agreements Less severe price fixation

New technologies

worldwide CRS/GDS

Substitution markets (Leisure, Consumption)

Tour Operator

Producers of services

- Hotels - Restaurants
Travel Agency potential Competitors Attractions Transport Excursion programs etc.

Customer

soziodemographic development

changed consumption patterns / values

Internationalis ation of customers

speeding up of life

Income and Wealth development

uncommitted income development

Changes in Leisure behaviour pattern

Demand Side

Economic importance of hospitality

Germany (DeHoGa, 2004) Employees Total, of which
Accomodation Food and beverages Canteen, catering services

1.002.000
321.000 598.000 83.000

Apprentices, Total, of which

Cook, Restaurant/Hotel/Hotel economics expert, Expert for system gastronomy

97.126

Hospitality companies Total, of which

Accomodation Food and beverages Canteens, catering services

247.861
48.543 190.760 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.
7

Segmentation hospitality
hospitality (Major company goal)
Profit-orientated, main source of income, open to everybody, for longer period Pub (Schankwirtschaft) Drinks are offered and are consumed on the premises Restaurant (Speisewirtschaft) Food is offered and consumed on the premises Accomodation company (Hotel, Pension, B&B etc.) 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 Mttergenesungswerk
8

Segmentation Food and beverages

Restaurant companies (Bewirtungsbetriebe)
Restaurant Non-licenced Restaurant Vegetarian / Vegan Restaurant Pub (Wirtshaus) Caf Railway station Restaurant Highway Restaurant Fastfood Restaurant System gastronomy

Entertainment companies (Unterhaltungsbetriebe)

Bars Dance Clubs Discotheks Night Clubs Cabarets Variets

Segmentation Catering/Restaurants
Service gastronomy (Versorgungsgastronomie)
Train station Restaurants Motorway Restaurants Snack bar / Take away Kiosk (Trinkhallen) Fast-Food Restaurant Cafs without seating Juice bars Sandwich Shops Milk bars Canteens Catering (Banquet and Parties, Industrial, Event) System gastronomy

Experience gastronomy (Erlebnisgastronomie)

Ethnic Restaurants Bars, Dance and Entertainment clubs Diskotheques Bistros Pubs Rock-Cafs Performing art clubs Video and Karaoke parlours Ice bars Cafs Local style restaurants (Gastwirtschaften) Beer gardens Heurigen Restaurants (Strauss- und Besenwirtschaften)

10

Segmentation Accomodation companies

Abgrenzung nach den Empfehlungen des: DIHK, DTV, DeHoGa, DSFT
(diese Empfehlungen gelten nur fr Deutschland)

Nichtgewerbliche Beherbergung bzw. Gewerbliche Beherbergung bzw. Unterkunftsgewhrung Unterkunftsgewhrung

bis 8 Betten, privat Raumvermietung privat mit Mbeln und Bettwsche fr lngere Dauer, mit Kndigungsfrist Miete im voraus zahlbar, Sicherheitsleistung kann verlangt werden Kennzeichnung nicht vorgeschrieben i.d.R. ohne oder mit nur eingeschrnkter Dienstleistung Mitnahme des Schlssels durch den Mieter beim Verlassen der Wohnung Mietvertrag ab 9 Betten, Hotel ab 20 Betten fr jedermann zugnglich vorbergehende Unterkunftsgewhrung fr die Dauer der Bestellung und fr kurze Zeit Kennzeichnung der Zimmer durch Symbole allgemeine Dienstleistung insbesondere Reinigung Berechnung tageweise, zahlbar bei der Abreise Beherbergungsvertrag

11

Segmentation Accomodation companies

Hotellerie = Traditional Accomodation companies
Hotel (Individual, Chain) Hotel Garni Hotel pension Pension Road side hotel (Rasthof) Rural hotel (Gasthof) Motel Motorway hotel Wellness hotel Aparthotel / Boardinghouse Hospiz

Parahotellerie = Additional Accomodation companies

Appartement Holiday resorts Holiday flats / houses Youth Hostels Farm Camping, Caravaning Holiday camp Homes of Associations (Vereinsheime) Guest houses Recuperation institutions (Sanatorien) Bed & Breakfast Private rooms Collective forms of accomodation like hay hotels Ski and hiking huts
12

Definition Accomodation companies

In Germany: Ein Hotel ist ein Beherbergungsbetrieb mit angeschlossenem Verpflegungsbetrieb fr Hausgste 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

13

1.6 Minimum requirements Hotel room

According to Gre
DeHoGa, DIHK, DTV, IHA, DRV (gilt nur in Deutschland) Ohne Nasszelle gerechnet 8 qm Grundflche fr ein Einzelzimmer Mehrbettzimmer zustzlich 4 qm pro Bett Ein Bett pro Gast (1,80 m x 0,90 m) mit Ablage und Leuchte Getrennt von anderen Rumen mit eigenem Zugang Von innen und auen abschliebar Eine Sitzgelegenheit pro Bett, Papierkorb, Kleiderschrank, Tisch Ausreichende Lftung, mind. ein Fenster, Verdunkelungsmglichkeiten Hygienisch einwandfreie, anderen Gsten nicht zugngliche Waschgelegenheit, 2 Handtcher pro Gast, WC auf der selben Etage (Anzahl nach Bettenzahl gestaffelt) Zimmer beheizbar und fortlaufend nummeriert PangVO: Zimmerpreisverzeichnis mit Angabe ber Preis fr Frhstck, Telefoneinheit, Internetzugang und Pay-TV Brandschutzhinweise und Verhalten bei Gefahr
14

Ausstattung/Lage

Gesetzliche Anforderungen

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 & Chteaux, Four Seasons, Leading Hotels of the World

15

Systematic view on company forms

Hotelunternehmungen Individual hotels Hotel Cooperation
One unit Legally and commercially independent hotel company Horizontal cooperation of legally and commercially independent hotel companies

Branded hotels Chain hotels

Branch system Franchise system
Several units Unified company with several nonindependent branch hotels Vertical Legally association of independent legally and hotel companies commercially under unified independent hotelleadership companies

Conglomerate

16

Branded hotels
Hotel brand in Germany some examples (2004)
Nr. Company
1 2 ACCOR Hotellerie Deutschland GmbH ArabellaSheraton Hotelmanagement GmbH ARKONA AG CHOICE Hotels Germany GmbH

Brands
Etap, Formule 1, Ibis, Mercure, Novotel, Suitehotel, Sofitel ArabellaSheraton Hotels & Resorts (18), Four Points Hotels (6), The Luxury Collection (8) Arkona (5), A-ROSA (1), Steigenberger (5) Clarion (2), Comfort (31), Quality (24)

No. of hotels in Germany

278 19

No. of hotels internationally

3.916 13

3 4 5 6 7 8

10 57 9 79 1 20

1 4.810 1 17 59 242
17

DERAG Hotel and Living AG Derag Hotel and Living DORINT AG FOUR SEASONS Hotels & Resorts Dorint Hotels & Resorts Four Season Hotel

GOLDEN TULIP Hotel, Inns Golden Tulip Hotels (15), Tulip & Resorts B.V. Inns (5)

Nr.
9 HILTON International Hilton (14), Scandic (3) Ramada-Treff (42), Treff (17), Ramada (8), Ramada Plaza (4) 17 72 400 10

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

11 HYATT International Hotels Hyatt Regency (2), Park Hyatt, & Resorts Grand Hyatt 12 IFA Hotel & Touristik AG IFA-Hotels 13 INTERCONTINENTAL Hotels InterContinental (5), Crowne Plaza Group (7), Holiday Inn (49), Express by Holiday Inn (8) 14 JOLLY Hotels Deutschland Jolly Hotels GmbH 15 KEMPINSKI AG 16 MANDARIN ORIENTAL Hotel Group Kempinski Hotels & Resorts Mandarin Oriental

4 4 69

210 16 3.454

2 12 1

50 22 20

18

Nr.
17 MARITIM Hotelgesellschaft Maritim mbH 18 MARRIOTT International, Marriott (9), Courtyard by Marriott Inc.; siehe auch: TREFF Hotels (15), Ramada (4), Renaissance AG Services & Reservations (9), Ritz Carlton (2) 19 MRIDIEN Hotels Deutschland GmbH 20 MILLENNIUM & COPTHORNE Hotels Ltd. Le Mridien Millennium Hotels, Copthorne Hotels 36 39 9 2.600

7 2 69 13

143 91 514 37

21 MINOTEL Deutschland e.V. Minotel (63), Suntime (6) 22 MVENPICK Gesellschaft fr Hotel- u. Restaurantbetriebe u. -beteiligungen mbH Mvenpick Hotels & Resorts

23 NH HOTELES Deutschland NH Hotels GmbH

52

196

19

Nr.
24 NIKKO Hotels International Nikko 25 PARK PLAZA Germany Holdings GmbH 26 QUEENS Gruppe Deutschland Park Plaza (6), artotels (3) Queens Hotels (8), Holiday Inn (16) 1 9 24 3 29 25 51 >100 69 33 441 868

27 RAFFLES International Ltd. Raffles, Swisstel (2) 28 RELAIS & CHTEAUX Deutschland 29 REZIDOR SAS Hospitality Relais & Chteaux Radisson SAS (16), Country Inns & Suites by Carlson (2), Park Inn (6) RIMC-Hotels, Golden Tulip, Tulip Inn, Quality Choice Robinson

30 RIMC International Hotel Resort Management and Consulting GmbH 31 ROBINSON CLUB GmbH

17

24

20

1.7. continued
Nr.
32 SOL MELI Deutschland GmbH 33 SORAT Hotel Consult GmbH Tryp Hotel Sorat, Partner of Sorat Hotels 12 20 106 350 0 350

34 SRS Hotels Steigenberger SRS-Worldhotels Reservation Service GmbH & Co. KG 35 STARWOOD Hotels & Sheraton (2), Westin (3) Resorts Worldwide, Inc.; compare: ArabellaSheraton Hotelmanagement GmbH 36 STEIGENBERGER Hotels AG 37 THE RITZ-CARLTON Hotel Company Steigenberger Hotels, InterCity Hotels The Ritz-Carlton

745

66 2

12 55

21

Brand cooperations
Hotel cooperations in Germany (2004)
Nr. Company
1 AKZENT Hotelkooperation GmbH 2 BAYERWALD Hotels 3 DESIGN Hotels 4 FAMILOTEL AG 5 FLAIR Hotels 6 HOTELS MIT HERZ GmbH Hotelkooperation 7 EUREGIO BODENSEE e.V. Hotelkooperation 8 MINOTEL Deutschland e.V. 9 MNCHNER HOTEL VERBUND GmbH 10 RELAIS DU SILENCE Silencehotels D. GbR 11 RINGHOTELS e.V.

Hotels Germany
58 9 8 21 132 36 101 69 42 37 155

Hotels internationally
0 0 108 14 13 2 27 514 0 229 0
22

Nr.
12 ROMANTIK Hotels & Restaurants GmbH & Co. KG 13 SMALL LUXURY Hotels of the World Ltd. 14 SRS Hotels Steigenberger Reservation Service GmbH & Co. KG 15 SUPRANATIONAL Hotels 16 The LEADING Hotels of the World Ltd. 17 THEATER-Hotels Deutschland e.V. 18 TOP INTERNATIONAL Hotels GmbH 19 VIABONO GmbH 20 WELLNESS-Hotels Deutschland GmbH 88 3 106 k.A. 25 8 90 230 43 99 305 350 750 390 0 60 0 0
23

Forms of segmentation of hotels

Completeness of services offered
Hotel, Hotel Garni, Full hotel

Location
City, Resort etc.

Connection to transport infrastructure

Motel, Airport hotel

Quality
Star rated, other categories

Duration of stay
Hours, days, weeks, seasons

Legal form of company

Single company, Limited, etc.

Size of company
Individual hotel, family hotel, chain hotel, major hotel

Profit orientation
Profit-orientated, non-profit-orientated, communal, social institution, learning hotel, minor part of company
24

Different types of accomodation

Class L Luxury hotels Hotel, Congress hotel, All-Suite-Hotel Accomodation, breakfast, food and beverages offered International Standard, luxurious, modern Greetings of guests in front of the house High level of technical and personal services Meeting point, modern communication equipment Outside Germany often big shopping center included Price high Class 1 First Class Hotel Convention hotel Accomodation, breakfast, food and beverages offered High Standard of comfort Good level of technical and personal services Price medium to high Mostly large number of beds, chain hotels
25

Class 2 Middle class hotel, Aparthotel Accomodation, breakfast, food and beverages offered Practical, solid level of basic services Price medium Class 3 Hotel Garni Accomodation and breakfast, only some food and beverages only for guests Little city hotels, not much staff, often family run Price lower medium

26

Class 4 Pensions, Hotel pensions Accomodation and breakfast for longer stay guests, fixed menu food at specific times Simple, no special comfort, often close to spa institutions Without special services Prices dependent on length of stay Class 5 Rural hotel Gasthof Mainly restaurant, few beds mainly for restaurant guests Simple, rural, no special comfort Often family run with own butcher or fish farm Price low, except Star-restaurant places Others Motels, Resorts, Highway hotels, holiday homes etc.

27

1.10 DeHoGa German Hotel Association

DeHoGa Association = Deutscher Hotel- und Gaststttenverband 17 Provincial associations (HoGas) 3 special associations IHA-Hotelverband Deutschland UNIPAS-Union der Pchter von Autobahn-Service-Betrieben VIC-Verband der Internationalen Caterer in Deutschland 4 special departments Systemgastronomie Gemeinschaftsgastronomie Bahnhofsgastronomie Diskotheken 80.000 members in Germany

28

Hotel classification a critical view

Country
Belgium Germany Finnland Italy Malta Schweiz

Official Hotel classification

Y Y No Y Y Y

Level
National National 21 regional systems National National

Compulsory
Y No Y Y Y for members

Controlled by
Government Association Government Association Association

Spanien UK

Y Y

Regional four regional Systeme

Y No

Government Automobil clubs and Government

29

System of German hotel classification

Why Classification? Better sales, better product positioning Reliable quantitative indicator for potential guests Better categorization of services offered (not: quality of services) German hotel classification of 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

30

Basics of classification Voluntarily: Entering and exit always possible Transparency: Every hotel company can learn beforehand into which category it will be put Participants All accomodation companies with more than eight beds Criteria of Classification 19 criteria, higher level of fulfillment needed for each star level Further minimum levels of points for a star level from the criteria
Building/rooms Interior decoration/Features Service / Leisure offers Form of product offer In-house conference facilities

31

Categories Five star categories

Tourist * (Garni) Standard * * (Garni) Komfort * * * (Garni) First Class * * * * (Garni) Luxus * * * * * (Superior)

Evaluation process HoGas on provincial level themselves or by other organisations like CoCs) Regular random controls Classification by document and representative sign

32

Discussion
In 1996 Germany and Denmark started a hotel classification program. 2003 Sweden adopted the Danish system. Through this process now all important European countries have classification systems. How about a EU-wide harmonized system? In 2004 the European Association of hotel associations HOTREC decided to start working on a europe-wide classification system. Arguments against: Regional differences, high costs Most major markets are dominated by domestic guests (Germany, France, Italy, Japan, USA) or specific source markets (Germany/UK at Spanish coast and islands).

33

Cultural as well as climatic differences result in different criterias for quality: Slippers and oneway-tooth brush important in Japan, not in Austria Good and diverse range of wines offered necessary in Austria, not in Britain Baked breakfast available important in Britain, not in Portugal Tobacco shop in the hotel necessary in Portugal, not in France Bidet necessary in France, not in Netherlands Many towels positive in Netherlands, not in USA Ice machine on each floor important for USA

34

Beds have to be longer in Northern Europe than in Southern Europe Rooms are smaller in a 5 Star hotel in Tokyo than in a cheap motel in USA Lobby in 4 Star hotel in Beijing much bigger than in 5 Star hotel in Europe Swedish 3 Star hotels do not need to have a window Even bigger differences for African, South American destinations

It is therefore not suitable to have a harmonized system all over the world. The 5 Star system is established internationally (Middle East 7 Star hotels only marketing gag), not easily abandoned Even now star rating criteria lead to useless investments (Sauna in 4 Star hotel in Malta)

35

Most important criticism: Star rating only looks at single quantitative criteria set. No clear distinction between business travellers and holiday makers needs No recognition of the most important fact: service QUALITY

36

2. Expansion strategies of big hotel groups

38

2.1 Facts and Figures

The ten biggest hotel groups in the world (rooms, 2005) Rooms InterContinental Hotels Group Cendant Marriott International Accor Choice Hilton Corporation Best Western Starwood Carlson Hospitality Worldwide Global Hyatt 534.202 520.860 478.000 463.427 403.806 358.408 309.236 230.667 147.093 111.474 Hotels 3.540 6.396 2.600 3.973 4.977 2.259 4.114 733 890 356
39

Die three hightest hotels in the world (2005) 1. Grand Hyatt 2. Burji al Arab 3. Emirates Towers Hotel 421 m Shanghai, China 321 m Dubai City, Dubai, VAE 309 m Dubai City, Dubai, VAE

Planned (year of opening) 1. Burji Dubai (2008) 2. Ritz Carlton (2009) 3. Federazjia (2007) 4. Emirates Hotel (2008) 5. Shangri-La (2009) 560 m Dubai City, Dubai, VAE 480 m SAR Hong Kong, China 440 m Moskau, Russland 350 m Dubai City, Dubai, VAE 310 m London, GB

40

2.1 Some examples of the best hotels in the world

Best hotels in different categories 2006 according to the readers of Travel and Leisure: http://www.travelandleisure.com/worldsbest/2006/ Leading Hotels of the world Group: http://www.lhw.com/

Special Interest: Best Geek Hotels in the World: http://www.hotelchatter.com/story/2007/3/14/112953/930/hotels/Best_Geek_Hot

The best hotel in the world: http://www.burj-al-arab.com/ http://www.jumeirah.com/

41

2.2 Reasons for Expansion

Brand and Strength help acquisition Reputation and training programs help with Human Resource Acquisition, HR Retention, HR Expansion Reservation system already existing

Goals: Economy of scale, Synergies, risk sharing: More growth, more revenues Brand strengthening through increased visibility especially if high level of standardisation Synergies by cost reduction in backstage operations Synergies by cost reduction and quality control in housekeeping, food and beverages, renovation Increased bargaining power in sourcing Central marketing and reservation Regional risk sharing
42

2.3 Preconditions of expansion

In destination
Positive economic trend in local economy Stability Existing infrastructure Favourable laws (taxes, ecology, entrepreneurial freedom etc.) Resources (physical and human) Attractive for target group (business people, tourists, VFR, transit travellers)

In hotel group
Standardisation Organisation geared to expansion Brand value Clear division between investment and management functions

43

2.4 Branding & Diversification

Brand the most important part of the immaterial value of company Brand difference between book value and market value Brand part of Shareholder Value Goodwill

44

2.4 Branding & Diversification

Hotel groups and their brands (examples)
Company Economy Midscale Upscale / Luxury No. of brands Marken
Sofitel 9

Accor

Ibis Formule 1 Etap Red Roof Inn Motel 6

Novotel Mercure Suite Hotel

Marriott

Courtyard by Marriott Ramada Sol Inn Hotels Sol Hotels Melia Comfort Sol Elite

Ritz Carlton Renaissance Marriott Gran Melia Melia Hoteles Maritim

Sol Melia Maritim Best Western

6 1 1
45

Best Western

2.5 Expansion as management policy

Expansion forms Buying of existing hotels / hotel groups Fast growth, need of capital Fusion of hotel groups Synergies in different markets Joint Ventures Minority stakes to enter new markets Alliances Close cooperation in different markets Licencing of use of name Different forms of contracts

46

2.5 Expansion as management policy

Different forms of contracts Rent Management Franchise Buy Different levels of Risk sharing Taxes Revenue opportunities Duration

47

2.5 Contract forms

Rent User pays monthly or yearly rent to investor Based on RoI of investor Different levels of risk and profit sharing: - Fixed rent: Fixed amount (plus inflation index) regardless of results, longterm contract - Fixed rent with reduction in first years, or main part fixed rent, minor part tied to economic result - Turnover based rent with minimum guarantee - Risk and profit sharing rent, balance sheets accessible for investor

48

2.5 Contract forms

Management Long term contract Management companies operates by order and for account of investor but using own brand Financial and image risk stays with the investor Management company gets turnover-based management fee (2-4%) and marketing fee (1,5 %) plus incentive fee (812 % of gross operating revenue) Most common form of hotel contract, almost all hotels not run by the owners are based on management contracts Trends: more management companies, saturation of hotel market in many regions, therefore growing - financial engagement of management companies - involvement of investors in company policy with regard to expansion plans, budgets, human resource decisions
49

2.5 Contract forms

Franchise Franchise grantor provides for a fee brand and know-how to franchisee Franchisee is independent company acting in own name but has to keep the agreed standards of grantor Grantor gets RoI of brand and know-how development Franchisee gets material and immaterial support of grantor, however is dependent on policy of grantor while having the complete risk of his business Franchisee pay Entrance fee, royalties, marketing fees Franchise most common form of contract in USA, in Europe only 25% Different forms of franchise agreements in hotel business: real estate developed by grantor or franchisee, franchise to existing hotel etc. Closer connection compared to cooperation of independent hotels Example: http://www.accorhotels.com/de/franchise/index.shtml
50

2 Discussion

Hotel franchise contracts are much more common in the USA than in Germany. What reasons could be responsible for this fact?

51

3. Introduction: Law and hospitality

Als deutscher Tourist im Ausland steht man vor der Frage, ob man sich anstndig benehmen muss oder ob schon deutsche Touristen da gewesen sind.
Kurt Tucholsky 1890-1935

53

3. Introduction: Law and hospitality

Tourism and hospitality are the subject of laws and regulations in almost all countries. However, the extent and goals of regulation are widely different. A database for all tourism laws, regulation and legislation in the world is provided by UNWTO: http://www.world-tourism.org/doc/E/lextour.htm

54

3. Introduction: Law and hospitality

Tourism Law development: Example Ecuador
(Source: Ecuador Ministry of Tourism) The new Ecuadorian Tourism Law is designed to develop one of the most prosperous industries in the world and protect the tourist as the consumer. Highlighted is the fact that Ecuador is competing in an international arena with other countries that offer good connections, excellent roads, competitive prices, quality facilities, and great accommodations. The priority is to work with a functional infrastructure and with the people. The President of the Republic and the Congress have recommended to update legislation and redefine the role of the State so that it becomes more of a facilitator and controlling body, thereby paving the way for the private sector to have more responsibility for tourism.

55

3. Introduction: Law and hospitality

The new law is based on four fundamental principles: A transition from a focus on satisfying supply (those offering the service) to one focused on satisfying demand (the tourist as a client and consumer who should be given quality service). The establishment of mechanisms designed to protect tourists and increase their level of satisfaction so that they will return to the country and encourage others to visit it, instead of avoiding Ecuador. A satisfied tourist will lead to one new visitor, whereas an unsatisfied one will convince seven potential visitors not to come. The simplification and delegation of control, supervision, and monitoring to decentralized bodies in order to increase transparency in State transactions.This will also cut down on public entities discretional decision-making when applying sanctions, giving licenses, and carrying out all other administrative procedures related to the tourism industry. The application of tax incentives to attract foreign investment in the tourism sector. This is indispensable for developing infrastructure as well as introducing higher quality products and services. 56

3. Introduction: Law and hospitality

In order to protect tourists as end consumers, the Tourism Fiscal Office, dependent on the Attorney Generals Office, was established. This body will deal with civil and penal matters and will liaise with the Ministry of Tourism. Another aim of this project is to eliminate the bureaucratic and legal barriers which prevent citizens, whether a legal entity or individual, from becoming involved in the tourism industry. This is the recommendation made by the World Code of Tourism Ethics. The law also establishes two representative bodies from the private sector: an advisory committee, which will be a consulting body for the Minister, and the Federation of Tourist Chambers, which will represent the private sector and publicity. Short-, medium-, and long-term planning is necessary to sell Ecuador to the world as a green country.

57

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.
58

Management or improvisation
Planned and managed: Fixed normal ways of doing things, management by exception Job descriptions, workflow descriptions Differentiation between operational and strategic management Improvisation: Management by experience: good for stable situation only

59

Human Resource Management

Hospitality is a People industry Human Resource Management among the most important functions
Finding and retaining staff Coordinating staff Controling staff Supporting staff Leading staff

60

Classical HR Organigram Single hotel

61

Customer orientated HR Management

End of Column structure
Process orientation Problem solving instead of Zustndigkeit Empowerment Moments of Truth Concept

Abilities Matrix
Data Mining of abilities of staff Competence cluster Example Accor Ibis Hotels: 15 Minutes Total Zen: How can it work?

62

Quality management
Quality Expensive Quality: Hardware, Surroundings, Software Quality: Ongoing process

63

TQM Total Quality Management

Customer point of view: How important is the service offered and how was the quality of the service perceived? Producers point of view: How good was the quality management? TQM as a never-ending upward spiral (Kaizen)

64

Ecology management
Based on: Laws and regulations Customer demand Staff demand In Germany: DeHoGa Eco Criteria Government subsidies from
European Recovery Program (ERP) Deutsche Ausgleichsbank (DtA) Kreditanstalt fr Wiederaufbau (KfW) Bundeslnder Subsidies

65

Ecology management
Labels: Many Ecology labels worldwide on different levels Example Bavaria: http://www.stmugv.bayern.de/umwelt/wirtschaft/siegel/index.htm Other examples: Blaue Flagge, Grner Koffer Top label in Germany: Viabono

66

Ecology management
Discussion: In the 1990s the hospitality companies in Germany could not agree on a label like Grner 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?

67