HOTEL BUSINESS REVIEW

SEPTEMBER FOCUS: Hotel Group Business

 

Hotel Group Business for 2014

An in depth analysis on more flexible pricing policies and new technologies from Great Hotels of the World and three of its member properties

By Armand Guillemot Director of MICE, Great Hotels of the World | September 2013

There has been a significant shift in the meeting and events market. Many hotels are re-examining their pricing structures to institute more flexible pricing policies. Business rates are now being adjusted according to foreseeable demand as the lead time for bookings has dramatically shortened. We have noticed that the more luxury hotels are less likely to budge on pricing whereas the four star properties are more likely to be flexible with their pricing. We have also seen a shift within the booking patterns. Periods that have traditionally been slow seasons for meetings and events have become higher in demand, due to the client’s are more conscious of pricing – giving organizers better value for their money when booking in these traditionally lower booking periods. Hotel Altis is a recently renovated business and conference hotel, ideally situated in the center of Lisbon, a short walk from Avenida da Liberdade and the historical quarters. They have implemented new procedures to cope with the new trends within the market. Whereas previously last-minute business only applied to individual travelers, the hotel is experiencing this for group business too. Decisions on whether or not to conduct the event, as well as the figures concerning the number of delegates who will attend, are only made shortly before the event takes place – implicating a shorter time frame between request for proposals and in making the final decision. They have emphasized the importance of this time issue, gaining or losing out on business due to RFP response times within a matter of hours. The hotel has given a recent example of a phone call received from a DMC on a Saturday morning, requesting a dinner for 70 people for the Monday evening. They sent the proposal and received confirmation before noon.

![alt text][1]
*Deluxe Guest Room - Hotel Altis*
Ruben Paula, General Manager of Hotel Altis, comments that this last-minute trend within business travel is occurring because companies feel that they have stronger negotiating power if they request services with a shorter notice period, because those who have availability will be more flexible with their rates as they would prefer to fill their rooms at a lower price rather than not filling them at all. As the market continues to grow, Altis Hotels believe these trends will have to change for the major destinations, as companies face problems finding suitable places to conduct their events. Their Group Coordination team, dedicated to groups and events, now has to be faster and more accurate with their answers in order to secure business. They also have had to be more flexible on rates according to availability and seasons, not only with regard to accommodation rates, but also with regard to rates for meeting rooms and F&B. To help combat this issue, Hotel Altis has created new and more flexible menus, where organizers can build menus at different prices, according to their budgets as well as upgrading guests to better meeting rooms or by way of including some value added extras, such as a complimentary cocktail or an upgraded coffee break during low season. They have also had to become more attentive to demand on peak days or during high season, ensuring that they have the right product for the right guests. In terms of user experience, Hotel Altis has also commented on the fact that guests are looking more and more for a unique experience within their meetings or incentives. Local touches and flavors have become a must and they have experienced an increased demand for local Portuguese products as well as healthy, energizing coffee breaks. To provide a unique experience for guests and respond to this demand, the hotel has created a dedicated team for in-house groups, similar to guest services for individual travelers, to ensure that every detail for each group is taken care of. Director of Business Development at Hotel Okura Amsterdam, Femke Groeneveld-Weller takes an alternative opinion. Hotel Okura is the most complete five-star deluxe conference hotel in the Netherlands, with a touch of Japan, close to all major cultural attractions. For Okura, discounting room rates has not been part of their sales strategy. They believe that reduced pricing will lead to devaluation in their business. They have commented though that of course their prices will fluctuate according to the needs of the market, the season and the day of the week. Due to historical knowledge gained from being in business for 41 years, business rates have been adjusted to match these demands so that they can place the right business at the right rate.
![alt text][2]
*Grand Ballroom - Hotel Okura*
However, given the challenges within the market, hotels are still investing within the group business sector. Driven by new technologies, our member properties are consistently responding to the market and demand in updating their properties to ensure that they have the best technology to better facilitate MICE and business travelers. Opened May 2013, our newest member property, Hotel Xenia is a 99-roomed design-led contemporary boutique hotel located in South Kensington. Mario Ovsenjak, General Manager for the property would certainly agree with the sentiment that cautious optimism seems to be the prevailing attitude in today’s marketplace. Having recently opened, they have been pleased already with the level of interest from the corporate market. They have stressed the importance in ensuring their rates are competitive while remaining flexible to suit their client’s budgets. Ovsenjak comments that whilst technology is becoming a prerequisite for corporate groups, the process of implementing and managing groups does require a personal approach – naturally they expect each client’s requirements to be different so that they can provide a tailored offering - which is why they have implemented a team dedicated to this area of business. Hotel Xenia is offering its guests in-room tablets, which guests can use not only as an in-room concierge facility but also to access the internet – to perhaps check latest news from the stock market or access their e-mail. To make it more conducive to business and group business activity, they can also be used throughout the hotel and they are always keen to ensure client’s presentations run smoothly by assisting in printing documents and the like. While they are pleased to offer corporate groups access to the latest in conference technology – such as their 84” 3D television, which is ideal for screen presentations, as well as private screenings - they can additionally offer access to IT support if required to ensure client’s specific requirements are met and to place confidence in the fact that their conferences will run smoothly.
![alt text][3]
*Hotel Guest Room - Hotel Xenia*
For their business groups, they can also facilitate various corporate entertainment offerings, such as summer team gatherings in the herb garden of their Living Wall Bar or canapés on their rooftop terrace with stunning views of the London skyline. Additionally, they can accommodate wine tasting in the cellar, cigar samplings in the cigar lounge and for the more competitive, they also have a host of games, including a pool table in our games room, ensuring they cater for groups looking to host informal get-togethers, discuss serious business matters or both. In addition, Ruben Paula comments on the importance of technology to Hotel Altis’s business. They have invested in a fiber-optic internet connection, a dedicated IT team that has the technical know-how to anticipate groups’ needs and meets with the meeting organizer before the event to ensure that all IT needs are fulfilled. The hotel has also signed a partnership with technology providers in order to guarantee that the latest state-of-the-art technology is available for guest’s meetings. Currently, they are installing an in-room TV guest-system, a tool that will help the hotel to communicate with their MICE and corporate guests. Through the TV, guests will have the ability to access their meeting timetables, activities along with other high-tech functionality. The digital signposts within the hotel will also become more interactive, with more than just their logo, but also inclusive of meeting timetables and further information. Furthermore, Femke Groeneveld-Weller at Hotel Okura states that today, guests have greater expectations of the conference venue than they had before new technology made its entry. Free and high speed Wi-Fi is considered a basic and is no longer considered an added value. On the contrary, when the internet connection fails, this immediately has a negative impact on the guest experience. On the other hand, the property does continue to strive to add value to their product, by including personal touches that are not only functional, but which can also be a nice gimmick. They were the first of the luxury hotels in Amsterdam to implement an iPhone app, purely to provide extra service to its guests. The iOkura-screen, a 55-inch iOkura multi-touch screen at the center of the foyer on the conference floor, provides information, innovation and interaction. In touching the screen, guests can view all the outlets of the hotel, including floor plans and pictures and it can be customized with logos and images for events. In addition, events can be made as interactive as the guest wishes. The hotel often provides iPads on meeting tables with not only the menu, but many other applications for an interactive platform during any type of event. However, it must be noted that the hotel does place importance in the belief that technology will not compete with the value of a personal touch. Every event has a dedicated team at its service and a banquet concierge is always proactively available on the floor, dedicated to create memorable experiences for its guests. To conclude, it can be seen from the comments above and within our experience that hotels have become more flexible in their pricing policies to respond to the more competitive marketplace. However, hotels are still continuing to improve their services to compete further in winning business by providing state-of-the-art technology to ensure the smooth running of events. Contributors to this article: ![alt text][4]Ruben Paula, General Manager of Hotel Altis has been General Manager of Hotel Altis, Altis Prime and Altis Suites for 6 years. He previously worked as General for Vila Gale Hotels and worked for Group Sonae in the tourism sector. He also has an MSC in International Hotel Management from the University of Surrey and degrees from Ecole Hoteliere de Lausanne and Universidade Internacional (Lisbon). Mr. Paula is also a Professor in Strategic Marketing and in Rooms Division Management (with a strong focus on Revenue / Yield Management). Mr. Paula’s main goal at Hotel Altis is to reposition the property after its major renovations. Since 1973, Hotel Altis has stood as an emblematic five-star hotel within the city. ![alt text][5]Femke Groeneveld-Weller, Director of Business Development for Hotel Okura was born and raised in the Netherlands. She received a bachelors degree from the International Hotelschool in The Hague. Ms. Groeneveld-Weller was drawn to an international career path. She started with an internship for Ian Schrager hotels in New York and although this started as a six month program her stay abroad extended to 21 years. From New York Ms. Groeneveld-Weller moved to Curacao and worked for Sonesta Hotels & Resorts in several food and beverage functions, including serving on the pre-opening team for US, Caribbean and Middle East-based properties. From Curacao, after a project for Sonesta in Bahrain, she moved to Puerto Rico and then to Miami working for Ritz-Carlton where she made the switch from operations to Conference & Events. With the company she moved to Miami. After a few years Ms. Groeneveld-Weller moved to The Biltmore Hotel, a member of Leading Hotels of the World, and held the position of Director of Conference & Events. Ms. Groeneveld-Weller moved back to the Netherlands, 5 years ago and joined the Hotel Okura Amsterdam. She started as the Director of Conference & Events. In January of 2011 Ms. Groeneveld-Weller was named Director of Business Development. Her role is to oversee all commercial departments for the most unique five star hotel in the Netherlands. ![alt text][6] Mario Ovsenjak General Manager, Hotel Xenia. Mr. Ovsenjak began his hospitality career in London with Thistle Hotels, where he served as Food & Beverage Manager at both the Thistle Piccadilly and The Royal Trafalgar Mr. Ovsenjak has also worked as Operations Manager at InterContinental Hotels Group and at Corus Hyde Park where he re-focused the hotel’s food and beverage offerings, maximized HOD team efficiency and demonstrated his passion for customer service. A step into boutique hotels and the luxury sector followed when Mr. Ovsenjak joined the Eton Collection at The Colonnade. Keen to continue to develop smaller properties, he now heads up the team at the independently-owned Hotel Xenia. He looks forward to working with the growing and dynamic team as they launch Hotel Xenia. [1]: http://www.hotelexecutive.com/images/business_review/HOTEL_ALTIS_DELUXE_ROOM_(8).jpg [2]: http://www.hotelexecutive.com/images/business_review/Okura_Grandballroom.jpg [3]: http://www.hotelexecutive.com/images/business_review/xenia.jpg [4]: http://www.hotelexecutive.com/images/business_review/Ruben_Paula_Co-author.jpg [5]: http://www.hotelexecutive.com/images/business_review/Femke_Groenveld-Weller__Co-author.jpg [6]: http://www.hotelexecutive.com/images/business_review/Mario_Ovsenjak_Co-author.jpg

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Any and all disputes or controversies of any kind, including but not limited to any performance, duty, obligation or liability arising under or related to this Agreement which are not first resolved informally, shall be determined by binding arbitration in San Francisco, California, in accordance with the rules of the American Arbitration Association. The final award in any such arbitration proceeding shall be subject to entry as a judgment by any court or competent jurisdiction, provided that such judgment does not conflict with the terms and provisions hereof. The jurisdiction of the arbiter (or arbiters) with respect to legal matters shall be limited only by the statutory and common law of the State of California and the United States.

Notwithstanding the foregoing, any and all disputes, which the parties cannot informally resolve, regarding the scope of issues or matter with the jurisdiction of the arbitrator, shall be resolved by a separate dispute resolution process whereby HotelExecutive, in its sole discretion shall elect the dispute to be resolved by either (1) a court of competent jurisdiction in the State of California or (2) a panel of three new arbitrators.

This Agreement shall be governed by and construed in accordance with the laws of the State of California notwithstanding any conflict of laws provisions. You and HotelExecutive agree that the venue for all legal disputes, controversies, actions of any kind arising under or related to this Agreement shall be San Francisco, California. You and HotelExecutive further agree that in case of any litigation regarding this Agreement, you irrevocably and unconditionally (i) consent to submit to the exclusive jurisdiction of the state and federal courts in the County of San Francisco, California for any litigation or dispute arising out of or relating to this Agreement, (ii) agree not to commence any litigation arising out of or relating to this Agreement except in the California Courts, (iii) agree not to plead or claim that such litigation brought therein has been brought in an inconvenient forum, and (iv) agree the California Courts represent the exclusive jurisdiction for all litigation relating to this Agreement.

11. MEMBERSHIP FEES

Hotel Business Review Subscriptions

If you choose to purchase a subscription, member subscription payments can be made in U.S. Dollars, as well as a variety of international currencies. Membership terms are Annual Recurring, and Monthly Recurring. The Annual Recurring subscription is an annual commitment and subscribers will be charged each consecutive billing cycle. Annual Recurring subscriptions can be cancelled after the first billing cycle and within 30-days of the billing date for a full refund. Monthly Recurring subscriptions are ongoing and subscribers will be charged each consecutive monthly billing cycle. Monthly Recurring subscriptions can be cancelled after the first month and within 7 days of the monthly billing cycle for a full refund.

12. PAYMENT AUTHORIZATION

Payment for the services provided to you in, at, through or in association with HotelExecutive may be made by automatic credit card, debit card, direct debit, bankwire or Paypal and other approved payment means offered in, at, through or in association with HotelExecutive, and you hereby authorize HotelExecutive and its agents to transact such payments on your behalf.

You hereby authorize HotelExecutive's Internet Payment Service Provider to charge your credit card to pay for your membership to HotelExecutive. You further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card for any and all purchases of products, services in association with HotelExecutive. You agree to be personally liable for all charges incurred by you in association with your access or other use of any content provided by HotelExecutive or any third party in association with HotelExecutive. You acknowledge and agree that your liability for all such charges shall continue after termination of your access or any type of membership arrangement with HotelExecutive.

In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

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