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International Tourism Management WiSe 2008/2009 Introduction – Hospitality.

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1 International Tourism Management WiSe 2008/2009 Introduction – Hospitality

2 2 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

3 3 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

4 4 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

5 Cowboys The travel industry, according to everybody outside it, is run by cowboys. Despite the abundance of professionally run companies, both big and small, the perception is still that holiday firms rip off unsuspecting customers. … But the biggest problem is that operators are often selling a product where the gap between perception and reality is huge. Mass-market holidays are often sold as a dream vacation when they are often anything but. (Quelle: Issue 226 (Sept. 2002), zitiert in Page 2003)

6 6 General development Tourism market

7 7 Economic importance of hospitality Germany (DeHoGa, 2004) Employees Total, of which Accomodation Food and beverages Canteen, catering services Apprentices, Total, of which Cook, Restaurant/Hotel/Hotel economics expert, Expert for system gastronomy Hospitality companies Total, of which Accomodation Food and beverages Canteens, catering services Turnover Total, of which Accomodation Food and beverages Canteens, catering services 55,1 Mrd. 18,4 Mrd. 32,6 Mrd. 4,1 Mrd.

8 8 Segmentation hospitality hospitality (Major company goal) Profit-orientated, main source of income, open to everybody, for longer period Pub (Schankwirtschaft)Restaurant (Speisewirtschaft) Accomodation company (Hotel, Pension, B&B etc.) Drinks are offered and are consumed on the premises Food is offered and consumed on the premises Guests are accomodated hospitality (Minor company goal) Hospitality part of a non-hospitality company, or non-profit hospitality company, offering services for social, political or religios purposes, not necessarily open for everybody Railroad workers holiday home Union homeMüttergenesungswerk

9 9 Segmentation Food and beverages Restaurant companies (Bewirtungsbetriebe) Entertainment companies (Unterhaltungsbetriebe) –Restaurant –Non-licenced Restaurant –Vegetarian / Vegan Restaurant –Pub (Wirtshaus) –Café –Railway station Restaurant –Highway Restaurant –Fastfood Restaurant –System gastronomy –Bars –Dance Clubs –Discotheks –Night Clubs –Cabarets –Varietés

10 10 Segmentation Catering/Restaurants Service gastronomy (Versorgungsgastronomie) Experience gastronomy (Erlebnisgastronomie) –Train station Restaurants –Motorway Restaurants –Snack bar / Take away –Kiosk (Trinkhallen) –Fast-Food Restaurant –Cafés without seating –Juice bars –Sandwich Shops –Milk bars –Canteens –Catering (Banquet and Parties, Industrial, Event) –System gastronomy –Ethnic Restaurants –Bars, Dance and Entertainment clubs –Diskotheques –Bistros –Pubs –Rock-Cafés –Performing art clubs –Video and Karaoke parlours –Ice bars –Cafés –Local style restaurants (Gastwirtschaften) –Beer gardens –Heurigen Restaurants (Strauss- und Besenwirtschaften)

11 11 Segmentation Accomodation companies 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 und Bettwäsche –für längere Dauer, mit Kündigungsfrist –Miete im voraus zahlbar, Sicherheitsleistung kann verlangt werden –Kennzeichnung nicht vorgeschrieben –i.d.R. ohne oder mit nur eingeschränkter Dienstleistung –Mitnahme des Schlüssels durch den Mieter 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 insbesondere Reinigung –Berechnung tageweise, zahlbar bei der Abreise –Beherbergungsvertrag

12 12 Segmentation Accomodation companies Hotellerie = 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 like hay hotels –Ski and hiking huts

13 13 Definition Accomodation companies In Germany: Ein Hotel ist ein Beherbergungsbetrieb mit angeschlossenem Verpflegungsbetrieb für Hausgäste und Passanten. Er zeichnet sich durch einen angemessenen Standard seines Angebotes und durch entsprechende Dienstleistungen aus. (DeHoGA und DTV) Necessary conditions: –At least nine guest beds –Majority of rooms with en suite bath and toilet –Reception existing Parahotellerie –Others form of accomodation (can be commercial or non-commercial) Commercial accomodation companies have to be –Profit-orientated, main source of income, open to everybody, for longer period

14 Minimum requirements Hotel room 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 Leuchte Getrennt von anderen Räumen mit eigenem Zugang Von innen und außen abschließbar Eine Sitzgelegenheit pro Bett, Papierkorb, Kleiderschrank, Tisch Ausreichende Lüftung, mind. ein Fenster, Verdunkelungsmöglichkeiten Hygienisch einwandfreie, anderen Gästen nicht zugängliche Waschgelegenheit, 2 Handtücher pro Gast, WC auf der selben Etage (Anzahl nach Bettenzahl gestaffelt) Zimmer beheizbar und fortlaufend nummeriert Gesetzliche Anforderungen PangVO: Zimmerpreisverzeichnis mit Angabe über Preis für Frühstück, Telefoneinheit, Internetzugang und Pay-TV Brandschutzhinweise und Verhalten bei Gefahr

15 15 Actors in the accomodation market Structural forms in accomodation market –Individual hotels –Chain hotels –Franchise hotels –Management hotels –Leased hotels –Cooperation hotels Cooperations –For instance Best Western, Ringhotel, Romantic-Hotel Reservation service companies –For instance Utell, HRS, hotel.com Marketing rings –For instance Summit Int., Preferred Hotels, Relais & Châteaux, Four Seasons, Leading Hotels of the World

16 16 Systematic view on company forms Hotelunternehmungen Individual hotels Branded hotels Hotel Cooperation Chain hotels Branch system Franchise system Conglomerate One unitSeveral units Legally and commercially independent hotel company Horizontal cooperation of legally and commercially independent hotel companies Unified company with several non- independent branch hotels Vertical association of legally and commercially independent hotel companies Legally independent hotel companies under unified leadership

17 17 Branded hotels Hotel brand in Germany – some examples (2004) Nr.CompanyBrands No. of hotels in Germany No. of hotels internationally 1 ACCOR Hotellerie Deutschland GmbH Etap, Formule 1, Ibis, Mercure, Novotel, Suitehotel, Sofitel ArabellaSheraton Hotelmanagement GmbH ArabellaSheraton Hotels & Resorts (18), Four Points Hotels (6), The Luxury Collection (8) ARKONA AG Arkona (5), A-ROSA (1), Steigenberger (5) CHOICE Hotels Germany GmbH Clarion (2), Comfort (31), Quality (24) DERAG Hotel and Living AG Derag Hotel and Living91 6DORINT AGDorint Hotels & Resorts FOUR SEASONS Hotels & Resorts Four Season Hotel159 8 GOLDEN TULIP Hotel, Inns & Resorts B.V. Golden Tulip Hotels (15), Tulip Inns (5) 20242

18 18 Nr. 9 HILTON InternationalHilton (14), Scandic (3) Hospitality Alliance AG; siehe auch MARRIOTT International, Inc. Ramada-Treff (42), Treff (17), Ramada (8), Ramada Plaza (4) HYATT International Hotels & Resorts Hyatt Regency (2), Park Hyatt, Grand Hyatt IFA Hotel & Touristik AGIFA-Hotels INTERCONTINENTAL Hotels Group InterContinental (5), Crowne Plaza (7), Holiday Inn (49), Express by Holiday Inn (8) JOLLY Hotels Deutschland GmbH Jolly Hotels KEMPINSKI AGKempinski Hotels & Resorts MANDARIN ORIENTAL Hotel Group Mandarin Oriental 120

19 19 Nr. 17 MARITIM Hotelgesellschaft mbH Maritim MARRIOTT International, Inc.; siehe auch: TREFF Hotels AG Services & Reservations Marriott (9), Courtyard by Marriott (15), Ramada (4), Renaissance (9), Ritz Carlton (2) MÉRIDIEN Hotels Deutschland GmbH Le Méridien MILLENNIUM & COPTHORNE Hotels Ltd. Millennium Hotels, Copthorne Hotels MINOTEL Deutschland e.V. Minotel (63), Suntime (6) MÖVENPICK Gesellschaft für Hotel- u. Restaurant- betriebe u. -beteiligungen mbH Mövenpick Hotels & Resorts NH HOTELES Deutschland GmbH NH Hotels52196

20 20 Nr. 24 NIKKO Hotels International Nikko PARK PLAZA Germany Holdings GmbH Park Plaza (6), artotels (3)9> QUEENS Gruppe Deutschland Queens Hotels (8), Holiday Inn (16) RAFFLES International Ltd. Raffles, Swissôtel (2) RELAIS & CHÂTEAUX Deutschland Relais & Châteaux REZIDOR SAS Hospitality Radisson SAS (16), Country Inns & Suites by Carlson (2), Park Inn (6) RIMC International Hotel Resort Management and Consulting GmbH RIMC-Hotels, Golden Tulip, Tulip Inn, Quality Choice ROBINSON CLUB GmbHRobinson124

21 continued Nr. 32 SOL MELIÁ Deutschland GmbH Tryp Hotel SORAT Hotel Consult GmbH Sorat, Partner of Sorat Hotels SRS Hotels Steigenberger Reservation Service GmbH & Co. KG SRS-Worldhotels STARWOOD Hotels & Resorts Worldwide, Inc.; compare : ArabellaSheraton Hotelmanagement GmbH Sheraton (2), Westin (3) STEIGENBERGER Hotels AG Steigenberger Hotels, InterCity Hotels THE RITZ-CARLTON Hotel Company The Ritz-Carlton255

22 22 Brand cooperations Hotel cooperations in Germany (2004) Nr.Company Hotels Germany Hotels internationally 1AKZENT Hotelkooperation GmbH580 2BAYERWALD Hotels90 3DESIGN Hotels8108 4FAMILOTEL AG2114 5FLAIR Hotels HOTELS MIT HERZ GmbH Hotelkooperation362 7EUREGIO BODENSEE e.V. Hotelkooperation MINOTEL Deutschland e.V MÜNCHNER HOTEL VERBUND GmbH420 10RELAIS DU SILENCE – Silencehotels D. GbR RINGHOTELS e.V.1550

23 23 Nr. 12 ROMANTIK Hotels & Restaurants GmbH & Co. KG SMALL LUXURY Hotels of the World Ltd SRS Hotels Steigenberger Reservation Service GmbH & Co. KG SUPRANATIONAL Hotelsk.A The LEADING Hotels of the World Ltd THEATER-Hotels Deutschland e.V.80 18TOP INTERNATIONAL Hotels GmbH VIABONO GmbH WELLNESS-Hotels Deutschland GmbH430

24 24 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

25 25 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

26 26 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

27 27 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.

28 DeHoGa German Hotel Association DeHoGa Association = Deutscher Hotel- und Gaststättenverband 17 Provincial associations (HoGas) 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 members in Germany

29 29 Hotel classification – a critical view Country Official Hotel classification LevelCompulsoryControlled by BelgiumYNationalYGovernment GermanyYNationalNoAssociation FinnlandNo--Government ItalyY 21 regional systems Y- MaltaYNationalYAssociation SchweizYNationalY for membersAssociation SpanienYRegionalYGovernment UKY four regional Systeme No Automobil clubs and Government

30 30 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

31 31 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

32 32 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

33 33 Discussion In 1996 Germany and Denmark started a hotel classification program 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).

34 34 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

35 35 -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)

36 36 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

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38 38 2. Expansion strategies of big hotel groups

39 Facts and Figures The ten biggest hotel groups in the world (rooms, 2005) RoomsHotels InterContinental Hotels Group Cendant Marriott International Accor Choice Hilton Corporation Best Western Starwood Carlson Hospitality Worldwide Global Hyatt

40 40 Die three hightest hotels in the world (2005) 1.Grand Hyatt421 mShanghai, China 2.Burji al Arab321 mDubai City, Dubai, VAE 3.Emirates Towers Hotel309 mDubai City, Dubai, VAE Planned (year of opening) 1.Burji Dubai (2008)560 mDubai City, Dubai, VAE 2.Ritz Carlton (2009)480 mSAR Hong Kong, China 3.Federazjia (2007)440 mMoskau, Russland 4.Emirates Hotel (2008)350 mDubai City, Dubai, VAE 5.Shangri-La (2009)310 mLondon, GB

41 Some examples of the best hotels in the world Best hotels in different categories 2006 according to the readers of Travel and Leisure: Leading Hotels of the world Group: Special Interest: Best Geek Hotels in the World: Hotels_in_the_Worldhttp://www.hotelchatter.com/story/2007/3/14/112953/930/hotels/Best_Geek_ Hotels_in_the_World The best hotel in the world:

42 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

43 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

44 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

45 Branding & Diversification Hotel groups and their brands (examples) CompanyEconomyMidscale Upscale / Luxury No. of brands Marken Accor Ibis Formule 1 Etap Red Roof Inn Motel 6 Novotel Mercure Suite Hotel Sofitel9 Marriott Courtyard by Marriott Ramada Ritz Carlton Renaissance Marriott 5 Sol Melia Sol Inn Hotels Sol Hotels Melia Comfort Sol Elite Gran Melia Melia Hoteles 6 Maritim 1 Best Western 1

46 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

47 Expansion as management policy Different forms of contracts –Rent –Management –Franchise –Buy Different levels of –Risk sharing –Taxes –Revenue opportunities –Duration

48 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, 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

49 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 (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 many regions, therefore growing - financial engagement of management companies - involvement of investors in company policy with regard to expansion plans, budgets, human resource decisions

50 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:

51 51 2 Discussion Hotel franchise contracts are much more common in the USA than in Germany. What reasons could be responsible for this fact?

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53 53 3. Introduction: Law and hospitality Als deutscher Tourist im Ausland steht man vor der Frage, ob man sich anständig benehmen muss oder ob schon deutsche Touristen da gewesen sind. Kurt Tucholsky

54 54 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:

55 55 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.

56 56 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.

57 57 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.

58 58 Management in the hospitality sector The Hotel Manager The Hotel Manager is a man from the distant future who opens up a restaurant in the distant past. The guests travel there via time machine (yes, just like The Restaurant at the End of the Universe by Douglas Adams). He's pretty funny as he's very evolved, but he's still a stupid jerk. Appearances: Tick vs. Prehistory: This episode is featuring a restaurant located about 3.5 million years ago. The Tick and Arthur wind up stuck in the distant past, but they're 'saved' when The Hotel Manager kidnaps their tribe of human-ape ancestors and takes them to the hotel to replace his waitstaff. Tick manages to overthrow the hotel staff and return his tribe to freedom and restore himself and Arthur to the 20th century.

59 59 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

60 60 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

61 61 Classical HR Organigram – Single hotel Management Food and Beverages (Buying/Storage) 1 Chef 2 Kitchen staff 5 helpers Service 1 Restaurant Manager 1 Hote Manager Reception Administration Accounting 1 Receptionist 2 General staff Accomodation 1 Matron (Hausdame) 3 chambermaids 3 helpers

62 62 Customer orientated HR Management End of Column structure –Process orientation –Problem solving instead of Zuständigkeit –Empowerment –Moments of Truth Concept Abilities Matrix –Data Mining of abilities of staff –Competence cluster –Example Accor Ibis Hotels: 15 Minutes Total Zen: How can it work?

63 63 Quality management Quality Expensive Quality: Hardware, Surroundings, Software Quality: Ongoing process

64 64 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)

65 65 Ecology management Based on: Laws and regulations Customer demand Staff demand In Germany: DeHoGa Eco Criteria Government subsidies from –European Recovery Program (ERP) –Deutsche Ausgleichsbank (DtA) –Kreditanstalt für Wiederaufbau (KfW) –Bundesländer Subsidies

66 66 Ecology management Labels: Many Ecology labels worldwide on different levels Example Bavaria: Other examples: Blaue Flagge, Grüner Koffer Top label in Germany: Viabono

67 67 Ecology management Discussion: In the 1990s the hospitality companies in Germany could not agree on a label like Grüner Koffer. Today Viabono is supported by DeHoGa etc. Is ecological engagement in hotels just a marketing gag or will we see a real greening of the hospitality industry?

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