hospitality management intro

8/3/2019 Hospitality Management Intro

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• International Tourism Management WiSe 2008/2009

I n t r oduc t ion – H osp i t a l i t y



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Con t en t

Hospitality and Management: Knowledge, Experiences, ExpectationsEverchanging Tourism – Basics of HospitalityExpansion strategies in international hotel operationManagement in hospitalityMarketing in hospitality

Production and Management in hospitalityControllingBrand-building in hospitalityWellness in hotelsStarting a business in the hospitality sector

AbbrevationsSourcesInternet adresses



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Know l edge – E xpe r i en ce s - E xpec t a t i on s

• 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



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1 . E ve r chan g i ng Tou r i sm – Ba s i c s o f

hosp i t a l i t y

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 companies1.6 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



C o w b o y s

„The travel industry, according to everybody outside it, is run bycowboys. 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 productwhere the gap between perception and reality is huge. Mass-market holidays are often sold as a dream vacation when they areoften anything but.“

(Quelle: www.travelmole.com Issue 226 (Sept. 2002), zitiert in Page2003)



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Customer

potentialCompetitors

Substitution markets(Leisure, Consumption)

Concentrationprocess

Newtechnologies

worldwideCRS/GDS

Internationa-lisation of competition

End of closedshop distribution

agreements

Positioning of Travel

agencies

Less severeprice fixation

Changes inLeisure

behaviour

uncommittedincome

development

Income andWealth

development

speeding up of life

Internationalisation of

customers

changedconsumption

patterns / values

soziodemo-graphic

development

Producers of services

- Hotels

- Restaurants- Attractions- Transport- Excursion programs

etc.

Tour Operator

Travel Agency

Demand Side

Supply Side

Ge ne ra l deve l opm en t Tou r i sm m a rke t



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Econom ic imp o r t an ce o f ho sp i t a l i ty

Germany (DeHoGa, 2004)

Employees Total, of whichAccomodationFood and beveragesCanteen, catering services

1.002.000321.000598.00083.000

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

97.126

Hospitality companies Total, of which Accomodation

Food and beveragesCanteens, catering services

247.86148.543

190.7608.558

Turnover Total, of whichAccomodationFood and beverages

Canteens, catering services

55,1 Mrd. €18,4 Mrd. €32,6 Mrd. €

4,1 Mrd. €



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Segm en ta t ion ho sp i t a l i ty

hospitality (Major company goal)Profit-orientated, main source of income, open to everybody, for longer period

Pub (Schankwirtschaft) Restaurant(Speisewirtschaft)

Accomodation company(Hotel, Pension, B&B etc.)

Drinks are offered and areconsumed on thepremises

Food is offered andconsumed on thepremises

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, notnecessarily open for everybody

Railroad workers holidayhome

Union home „Müttergenesungswerk“



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Segm en t a t io n F ood an d b e v e r age s

Restaurant companies(Bewirtungsbetriebe)

Entertainment companies(Unterhaltungsbetriebe)

– Restaurant

– Non-licenced Restaurant

– Vegetarian / Vegan Restaurant

– Pub (Wirtshaus)

– Café – Railway station Restaurant

– Highway Restaurant

– Fastfood Restaurant

– System gastronomy

– Bars

– Dance Clubs

– Discotheks

– Night Clubs

– Cabarets – Varietés



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Segm en ta t ion Ca t e r i ng /Res t au ran t s

Service gastronomy(Versorgungsgastronomie)

Experience gastronomy(Erlebnisgastronomie)

– Train station Restaurants

– Motorway Restaurants

– Snack bar / Take away

– Kiosk (Trinkhallen)

– Fast-Food Restaurant – Cafés without seating

– Juice bars

– Sandwich Shops

– Milk bars

– Canteens

– Catering (Banquet and Parties, Industrial,Event)

– System gastronomy

– Ethnic Restaurants

– Bars, Dance and Entertainment clubs

– Diskotheques

– Bistros

– Pubs – Rock-Cafés

– Performing art clubs

– Video and Karaoke parlours

– Ice bars

– Cafés

– Local style restaurants(Gastwirtschaften)

– Beer gardens

– Heurigen Restaurants (Strauss- undBesenwirtschaften)



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Segm en t a t io n A c c om oda t io n c om p an i e s

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

Nichtgewerbliche Beherbergung bzw.Unterkunftsgewährung

Gewerbliche Beherbergung bzw.Unterkunftsgewährung

– bis 8 Betten, privat

– Raumvermietung privat mit Möbeln undBettwäsche

– für längere Dauer, mit Kündigungsfrist

– Miete im voraus zahlbar,Sicherheitsleistung kann verlangtwerden

– Kennzeichnung nicht vorgeschrieben

– i.d.R. ohne oder mit nur eingeschränkter Dienstleistung

– Mitnahme des Schlüssels durch denMieter beim Verlassen der Wohnung

– Mietvertrag

– ab 9 Betten, Hotel ab 20 Betten

– für jedermann zugänglich

– vorübergehende Unterkunftsgewährung für die Dauer der Bestellung und für kurze Zeit

– Kennzeichnung der Zimmer durch Symbole

– allgemeine Dienstleistung insbesondereReinigung

– Berechnung tageweise, zahlbar bei der

Abreise – Beherbergungsvertrag



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Segm en t a t io n A c c om oda t io n c om p an i e sHotellerie = Traditional Accomodation

companies

Parahotellerie = Additional

Accomodation companies – Hotel (Individual, Chain)

– Hotel Garni

– Hotel pension

– Pension

– Road side hotel (Rasthof) – Rural hotel (Gasthof)

– Motel

– Motorway hotel

– Wellness hotel

– Aparthotel / Boardinghouse

– Hospiz

– Appartement

– Holiday resorts

– Holiday flats / houses

– Youth Hostels

– Farm – Camping, Caravaning

– Holiday camp

– Homes of Associations (Vereinsheime)

– Guest houses

– Recuperation institutions (Sanatorien)

– Bed & Breakfast – Private rooms

– Collective forms of accomodation likehay hotels

– Ski and hiking huts



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De f i n it io n A c com oda t i on comp an i e s

• In Germany: „Ein Hotel ist ein Beherbergungsbetrieb mitangeschlossenem Verpflegungsbetrieb für Hausgäste und Passanten. Er zeichnet sich durch einen angemessenen Standard seines Angebotes unddurch entsprechende Dienstleistungen aus.“ (DeHoGA und DTV)

• Necessary conditions: – At least nine guest beds

– Majority of rooms with en suite bath and toilet

– Reception existing

• Parahotellerie – Others form of accomodation (can be commercial or non-commercial)

• Commercial accomodation companies have to be – Profit-orientated, main source of income, open to everybody, for longer

period



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1 . 6 M in im um r equ ir emen t s Ho t e l r o om

According to DeHoGa, DIHK, DTV, IHA, DRV (gilt nur in Deutschland)

Größe Ohne Nasszelle gerechnet 8 qm Grundfläche für ein Einzelzimmer Mehrbettzimmer zusätzlich 4 qm pro Bett

Ausstattung/Lage Ein Bett pro Gast (1,80 m x 0,90 m) mit Ablage und LeuchteGetrennt von anderen Räumen mit eigenem Zugang

Von innen und außen abschließbar Eine Sitzgelegenheit pro Bett, Papierkorb, Kleiderschrank, TischAusreichende Lüftung, mind. ein Fenster,VerdunkelungsmöglichkeitenHygienisch einwandfreie, anderen Gästen nicht zugänglicheWaschgelegenheit, 2 Handtücher pro Gast, WC auf der selben

Etage (Anzahl nach Bettenzahl gestaffelt)Zimmer beheizbar und fortlaufend nummeriert

GesetzlicheAnforderungen

PangVO: Zimmerpreisverzeichnis mit Angabe über Preis für Frühstück, Telefoneinheit, Internetzugang und Pay-TVBrandschutzhinweise und Verhalten bei Gefahr



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Ac t o r s in t he a c com oda t i on ma r ke t

• Structural forms in accomodation market – Individual hotels

– Chain hotels

– Franchise hotels

– Management hotels

– Leased hotels – Cooperation hotels

• Cooperations – For instance Best Western, Ringhotel, Romantic-Hotel

• Reservation service companies

– For instance Utell, HRS, hotel.com• Marketing rings

– For instance Summit Int., Preferred Hotels, Relais & Châteaux, Four

Seasons, Leading Hotels of the World



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Sy s tem a t ic v i ew on c om p any f o rm s

Hotelunternehmungen

Individualhotels

Branded hotels

HotelCooperation

Chain hotels

Branch system Franchisesystem

Conglomerate

One unit Several units

Legally andcommercially

independenthotel company

Horizontalcooperation of

legally andcommerciallyindependenthotel companies

Unified companywith several non-

independentbranch hotels

Verticalassociation of

legally andcommerciallyindependent hotelcompanies

Legallyindependent

hotel companiesunder unifiedleadership



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B randed ho t e lsHotel brand in Germany – some examples (2004)

Nr. Company Brands No. of hotelsin Germany

No. of hotelsinternationally

1 ACCOR HotellerieDeutschland GmbH

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

278 3.916

2 ArabellaSheratonHotelmanagement GmbH

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

Luxury Collection (8)

19 13

3 ARKONA AG Arkona (5), A-ROSA (1),Steigenberger (5)

10 1

4 CHOICE Hotels GermanyGmbH

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

57 4.810

5 DERAG Hotel and Living AG Derag Hotel and Living 9 1

6 DORINT AG Dorint Hotels & Resorts 79 17

7 FOUR SEASONS Hotels &Resorts

Four Season Hotel 1 59

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

Golden Tulip Hotels (15), TulipInns (5)

20 242



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Nr.

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

10 Hospitality Alliance AG;siehe auch MARRIOTT

International, Inc.

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

72 10

11 HYATT International Hotels& Resorts

Hyatt Regency (2), Park Hyatt,Grand Hyatt

4 210

12 IFA Hotel & Touristik AG IFA-Hotels 4 16

13 INTERCONTINENTAL HotelsGroup

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

69 3.454

14 JOLLY Hotels DeutschlandGmbH

Jolly Hotels 2 50

15 KEMPINSKI AG Kempinski Hotels & Resorts 12 22

16 MANDARIN ORIENTALHotel Group

Mandarin Oriental 1 20



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Nr.

17 MARITIM HotelgesellschaftmbH

Maritim 36 9

18 MARRIOTT International,

Inc.; siehe auch: TREFF HotelsAG Services & Reservations

Marriott (9), Courtyard by Marriott

(15), Ramada (4), Renaissance(9), Ritz Carlton (2)

39 2.600

19 MÉRIDIEN HotelsDeutschland GmbH

Le Méridien 7 143

20 MILLENNIUM &COPTHORNE Hotels Ltd.

Millennium Hotels, CopthorneHotels

2 91

21 MINOTEL Deutschland e.V. Minotel (63), Suntime (6) 69 514

22 MÖVENPICK Gesellschaftfür Hotel- u. Restaurant-betriebe u. -beteiligungenmbH

Mövenpick Hotels & Resorts 13 37

23 NH HOTELES DeutschlandGmbHNH Hotels 52 196



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Nr.

24 NIKKO Hotels International Nikko 1 51

25 PARK PLAZA Germany

Holdings GmbH

Park Plaza (6), art‘otels (3) 9 >100

26 QUEENS GruppeDeutschland

Queens Hotels (8), Holiday Inn(16)

24 69

27 RAFFLES International Ltd. Raffles, Swissôtel (2) 3 33

28 RELAIS & CHÂTEAUXDeutschland

Relais & Châteaux 29 441

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

25 868

30 RIMC International HotelResort Management andConsulting GmbH

RIMC-Hotels, Golden Tulip, TulipInn, Quality Choice

17 2

31 ROBINSON CLUB GmbH Robinson 1 24



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1 .7. co n t i nued

Nr.

32 SOL MELIÁ DeutschlandGmbH

Tryp Hotel 12 350

33 SORAT Hotel Consult

GmbH

Sorat, Partner of Sorat Hotels 20 0

34 SRS Hotels Steigenberger Reservation Service GmbH& Co. KG

SRS-Worldhotels 106 350

35 STARWOOD Hotels &Resorts Worldwide, Inc.;compare: ArabellaSheraton

Hotelmanagement GmbH

Sheraton (2), Westin (3) 5 745

36 STEIGENBERGER HotelsAG

Steigenberger Hotels, InterCityHotels

66 12

37 THE RITZ-CARLTON HotelCompany

The Ritz-Carlton 2 55



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B rand coo pe ra t ion s

Hotel cooperations in Germany (2004)

Nr. Company HotelsGermany

Hotelsinternationally

1 AKZENT Hotelkooperation GmbH 58 0

2 BAYERWALD Hotels 9 0

3 DESIGN Hotels 8 108

4 FAMILOTEL AG 21 14

5 FLAIR Hotels 132 13

6 „HOTEL‘S MIT HERZ“ GmbH Hotelkooperation 36 2

7 EUREGIO BODENSEE e.V. Hotelkooperation 101 27

8 MINOTEL Deutschland e.V. 69 514

9 MÜNCHNER HOTEL VERBUND GmbH 42 0

10 RELAIS DU SILENCE – Silencehotels D. GbR 37 229

11 RINGHOTELS e.V. 155 0



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Nr.

12 ROMANTIK Hotels & Restaurants GmbH & Co.KG

88 99

13 SMALL LUXURY Hotels of the World Ltd. 3 305

14 SRS Hotels Steigenberger Reservation ServiceGmbH & Co. KG

106 350

15 SUPRANATIONAL Hotels k.A. 750

16 The LEADING Hotels of the World Ltd. 25 390

17 THEATER-Hotels Deutschland e.V. 8 018 TOP INTERNATIONAL Hotels GmbH 90 60

19 VIABONO GmbH 230 0

20 WELLNESS-Hotels Deutschland GmbH 43 0



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Fo rms o f s egm en ta t ion o f ho t e l s

• Completeness of services offered – Hotel, Hotel Garni, Full hotel

• Location – City, Resort etc.

• Connection to transport infrastructure – Motel, Airport hotel

• Quality – Star rated, other categories

• Duration of stay – Hours, days, weeks, seasons

• Legal form of company – Single company, Limited, etc.

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

• Profit orientation – Profit-orientated, non-profit-orientated, communal, social institution, learning hotel,

minor part of company



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D i ff e r en t t y pe s o f a c com oda t i on

• Class L – Luxury hotels – Hotel, Congress hotel, All-Suite-Hotel

– Accomodation, breakfast, food and beverages offered

– International Standard, luxurious, modern

– Greetings of guests in front of the house

– High level of technical and personal services – Meeting point, modern communication equipment

– Outside Germany often big shopping center included

– Price high

• Class 1 – First Class Hotel – Convention hotel

– Accomodation, breakfast, food and beverages offered – High Standard of comfort

– Good level of technical and personal services

– Price medium to high

– Mostly large number of beds, chain hotels



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• Class 2 – Middle class hotel, Aparthotel – Accomodation, breakfast, food and beverages offered

– Practical, solid level of basic services

– Price medium

• Class 3 – Hotel Garni – Accomodation and breakfast, only some food and beverages only for guests

– Little city hotels, not much staff, often family run

– Price lower medium



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• Class 4 – Pensions, Hotel pensions – Accomodation and breakfast for longer stay guests, fixed menu food at

specific times

– Simple, no special comfort, often close to spa institutions

– Without special services

– Prices dependent on length of stay

• Class 5 – Rural hotel „Gasthof“ – Mainly restaurant, few beds mainly for restaurant guests

– Simple, rural, no special comfort

– Often family run with own butcher or fish farm

–Price low, except Star-restaurant places

• Others – Motels, Resorts, Highway hotels, holiday homes etc.



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1 . 10 DeH oGa Ge rm an H o t e l A s s o c ia t io n

• DeHoGa Association = Deutscher Hotel- und Gaststättenverband• 17 Provincial associations (HoGa‘s)• 3 special associations

– IHA-Hotelverband Deutschland

– UNIPAS-Union der Pächter von Autobahn-Service-Betrieben

–VIC-Verband der Internationalen Caterer in Deutschland

• 4 special departments – Systemgastronomie

– Gemeinschaftsgastronomie

– Bahnhofsgastronomie

– Diskotheken• 80.000 members in Germany



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Ho te l c l a s s i f i c a t ion – a c r i t i c a l v i ewCountry Official Hotel

classification

Level Compulsory Controlled by

Belgium Y National Y Government

Germany Y National No Association

Finnland No - - Government

Italy Y 21 regionalsystems Y -

Malta Y National Y Association

Schweiz Y National Y for members Association

Spanien Y Regional Y Government

UK Y four regionalSysteme

No Automobil clubsand Government



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Sy s t em o f Ge rm an ho t e l c l a s s if ic a t io n

• Why Classification? – Better sales, better product positioning

– Reliable quantitative indicator for potential guests

– Better categorization of services offered (not: quality of services)

• German hotel classification of DeHoGa –

Since 1996 unified German system – Evaluation of objective, not subjective criteria

– Enjoys legal brand protection

• Development of criteria – By sub-group hotels of DeHoGa



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• Basics of classification – Voluntarily: Entering and exit always possible

– Transparency: Every hotel company can learn beforehand into which

category it will be put

• Participants – All accomodation companies with more than eight beds

• Criteria of Classification – 19 criteria, higher level of fulfillment needed for each star level

– Further minimum levels of points for a star level from the criteria

• Building/rooms

• Interior decoration/Features

• Service / Leisure offers

• Form of product offer

• In-house conference facilities



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• Categories – Five star categories

• Tourist * (Garni)

• Standard * * (Garni)

• Komfort * * * (Garni)

• First Class * * * * (Garni)

• Luxus * * * * * (Superior)

• Evaluation process – HoGa‘s on provincial level themselves or by other organisations like CoCs)

– Regular random controls

– Classification by document and representative sign



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D i s cus s i on

• In 1996 Germany and Denmark started a hotel classification program. 2003Sweden adopted the Danish system. Through this process now allimportant European countries have classification systems. How about aEU-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 Spanishcoast and islands).



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Cultural as well as climatic differences result in different criterias for quality:

- Slippers and oneway-tooth brush important in Japan, not in Austria- Good and diverse range of wines offered – necessary in Austria, not in

Britain- Baked breakfast available – important in Britain, not in Portugal- Tobacco shop in the hotel necessary in Portugal, not in France- Bidet necessary in France, not in Netherlands- Many towels positive in Netherlands, not in USA- Ice machine on each floor important for USA



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

• It is therefore not suitable to have a harmonized system all over the world.The 5 Star system is established internationally (Middle East 7 Star hotelsonly marketing gag), not easily abandoned

• Even now star rating criteria lead to useless investments (Sauna in 4 Star hotel in Malta)



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2 . E xpa ns i on s t ra t eg i e s o f b i g ho t e l g r oup s



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2 .1 F a c t s and F i gu r e sThe ten biggest hotel groups in the world (rooms, 2005)

Rooms Hotels

InterContinental Hotels Group 534.202 3.540

Cendant 520.860 6.396

Marriott International 478.000 2.600Accor 463.427 3.973

Choice 403.806 4.977

Hilton Corporation 358.408 2.259

Best Western 309.236 4.114Starwood 230.667 733

Carlson Hospitality Worldwide 147.093 890

Global Hyatt 111.474 356



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Die three hightest hotels in the world (2005)

1. Grand Hyatt 421 m Shanghai, China

2. Burji al Arab 321 m Dubai City, Dubai, VAE

3. Emirates Towers Hotel 309 m Dubai City, Dubai, VAE

Planned (year of opening)

1. Burji Dubai (2008) 560 m Dubai City, Dubai, VAE

2. Ritz Carlton (2009) 480 m SAR Hong Kong, China

3. Federazjia (2007) 440 m Moskau, Russland4. Emirates Hotel (2008) 350 m Dubai City, Dubai, VAE

5. Shangri-La (2009) 310 m London, GB



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2 .1 Som e exam p le s o f the bes t ho t e l s in t he

wo r l d

• Best hotels in different categories 2006 according to the readers of „Traveland 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_Ho

• „The best hotel in the world“:

• http://www.burj-al-arab.com /

• http://www.jumeirah.com/

http://www.lhw.com/

http://www.hotelchatter.com/story/2007/3/14/112953/930/hotels/Best_Geek_Hotels_in_the_World

http://www.burj-al-arab.com/

http://www.jumeirah.com/


http://www.burj-al-arab.com/

http://www.hotelchatter.com/story/2007/3/14/112953/930/hotels/Best_Geek_Hotels_in_the_World

http://www.lhw.com/



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2 .3 P r e con d i t io n s o f e xpan s ion

• 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






























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2 .4 B ran d i ng & D i ve r s if ic a t i on

• 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















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2 .4 B ran d i ng & D i ve r s if ic a t i on

Hotel groups and their brands (examples)

Company Economy Midscale Upscale / Luxury No. of brandsMarken

Accor IbisFormule 1EtapRed Roof InnMotel 6

NovotelMercureSuite Hotel

Sofitel 9

Marriott Courtyard byMarriott

Ramada

Ritz CarltonRenaissance

Marriott

5

Sol Melia Sol Inn HotelsSol Hotels

Melia ComfortSol Elite

Gran MeliaMelia Hoteles

6

Maritim Maritim 1

Best Western Best Western 1









































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2 . 5 E xp an s io n a s m anagem en t p o l ic y

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



















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2 . 5 E xp an s io n a s m anagem en t p o l ic y

• Different forms of contracts – Rent

– Management

– Franchise

– Buy

• Different levels of – Risk sharing

– Taxes

– Revenue opportunities

– Duration


























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2 .5 Co n t ra c t f o rm s

• 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, long-

term 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
























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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 (8–12 % 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 manyregions, therefore growing

- financial engagement of management companies

- involvement of investors in company policy with regard to expansion plans,

budgets, human resource decisions


























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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 theagreed 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 developedby 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


























http://www.accorhotels.com/de/franchise/index.shtml




51

2 D i s cu s s ion

Hotel franchise contracts are much morecommon in the USA than in Germany.

What reasons could be responsible for this fact?










53

3 . I n t r oduc t i on : L aw and ho sp i t a l i ty

Als deutscher Tourist im Ausland steht man vor der Frage, ob man sich anständig benehmenmuss oder ob schon deutsche Touristen da

gewesen sind.

Kurt Tucholsky 1890-1935












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Tourism and hospitality are the subject of laws and regulations in almostall countries. However, the extent and goals of regulation are widelydifferent.

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













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Tourism Law development: Example Ecuador (Source: Ecuador Ministry of Tourism)

“The new Ecuadorian Tourism Law is designed to develop one of the mostprosperous industries in the world and protect the tourist as the

consumer. Highlighted is the fact that Ecuador is competing in aninternational arena with other countries that offer good connections,excellent roads, competitive prices, quality facilities, and greataccommodations. The priority is to work with a functional infrastructureand with the people.

The President of the Republic and the Congress have recommended toupdate legislation and redefine the role of the State so that it becomesmore of a facilitator and controlling body, thereby paving the way for theprivate sector to have more responsibility for tourism.




















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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 countryand encourage others to visit it, instead of avoiding Ecuador. A satisfiedtourist will lead to one new visitor, whereas an unsatisfied one willconvince seven potential visitors not to come.

• The simplification and delegation of control, supervision, and monitoringto decentralized bodies in order to increase transparency in Statetransactions.This will also cut down on public entities’ discretionaldecision-making when applying sanctions, giving licenses, and carryingout all other administrative procedures related to the tourism industry.

• The application of tax incentives to attract foreign investment in thetourism sector. This is indispensable for developing infrastructure as well

as introducing higher quality products and services.



























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In order to protect tourists as “end consumers”, the Tourism Fiscal Office,dependent on the Attorney General’s Office, was established. This bodywill deal with civil and penal matters and will liaise with the Ministry of Tourism. Another aim of this project is to eliminate the bureaucratic andlegal 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 privatesector: an advisory committee, which will be a consulting body for theMinister, and the Federation of Tourist Chambers, which will represent the

private sector and publicity. Short-, medium-, and long-term planning isnecessary to sell Ecuador to the world as a “green country”.”



















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Ma nage m en t i n the h o sp i ta l i t y s e c t o r

The Hotel Manager

The Hotel Manager is a man from the distant future who opens up a restaurant in the distant past. Theguests 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 millionyears 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 replacehis waitstaff. Tick manages to overthrow the hotel staff and return his tribe to freedom andrestore himself and Arthur to the 20th century.

















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Ma nage m en t o r im p rov is a t ion

• Planned and managed:• Fixed „normal“ ways of doing things, management by exception• Job descriptions, workflow descriptions• Differentiation between operational and strategic management

• Improvisation:• Management by experience: good for stable situation only


















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H u m a n R e s ou r ce M a n a g e m e n t

• Hospitality is a People industry

• Human Resource Management among the most importantfunctions – Finding and retaining staff

– Coordinating staff

– Controling staff

– Supporting staff

– Leading staff





















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C l a s s ic a l HR O rgan i g ram – S i ng l e ho t e l






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Cus t ome r o r ie n t a t ed HR M anagem en t

• End of Column structure – Process orientation

– Problem solving instead of Zuständigkeit

– Empowerment

– Moments of Truth Concept

• Abilities Matrix – Data Mining of abilities of staff

– Competence cluster

– Example Accor Ibis Hotels: 15 Minutes Total Zen: How can it work?



























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Qua l i t y m anagem en t

• Quality ≠ Expensive

• Quality: Hardware, Surroundings, Software

• Quality: Ongoing process












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TQM – To t a l Qua l ity M anagem en t

• Customer point of view: How important is the serviceoffered and how was the quality of the serviceperceived?

• Producers point of view: How good was the qualitymanagement?

• TQM as a never-ending upward spiral (Kaizen)















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E c o lo g y m a n a g e m e n t

• Based on:

• Laws and regulations• Customer demand• Staff demand

• In Germany:• DeHoGa Eco Criteria• Government subsidies from

– European Recovery Program (ERP)

– Deutsche Ausgleichsbank (DtA)

– Kreditanstalt für Wiederaufbau (KfW)

– Bundesländer Subsidies




























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• Labels:

• Many Ecology labels worldwide on different levels

• Example Bavaria:

http://www.stmugv.bayern.de/umwelt/wirtschaft/siegel/index.htm

• Other examples:

• Blaue Flagge, Grüner Koffer

• Top label in Germany: Viabono














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• Discussion:

In the 1990s the hospitality companies in Germany

could not agree on a label like „Grüner Koffer“.

Today Viabono is supported by DeHoGa etc.

Is ecological engagement in hotels just a marketing

gag or will we see a real „greening“ of the hospitality

industry?

hospitality management intro

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