Keys to hospitality success

Hotel operators say the keys to success in the tourism industry are offering the right products, having a good location, a strong brand and network and emphasising human resources.
Three top executives of The Oriental Hotel Thailand, Minor International and Accor Group contributed their management secrets and some strategies to investors at a "world-class hotel" seminar organised by Bangkok Bank and attended by 400 operators and developers. The seminar aimed to improve competitiveness of key industries, strengthen networks and help hotels achieve international standards. Accor Group vice president for business development Victor Pang said success in hotel management required operators to pay attention to changing business environments. According to Pang, the keys to success are a good location, investment costs and returns on investment. He believed a strong brand with individual characteristics as well as international standards would help operators meet targets. "For instance, BMW, McDonald's and Starbucks have achieved in all corners of the world due to building a standard and making it different from competitors," Pang said. Accor operates several hotels using different brands in Thailand. It plans to open more than 10 new properties. The emergence of low-cost airlines in the region is creating demand for low-cost hotels, too. Backpacking continues to be popular in Asia. Pang said hotel operators in Thailand would be challenged by competition from emerging markets such as Vietnam and India. Singapore is developing casinos. Minor Group chairman and CEO William Heinecke said the group was operating hotels using three brands. He said Thai tourism was number three in Asia in terms of international arrivals after Malaysia and Hong Kong. Tourism in the whole of the region is expected to grow due to low-cost carriers; the booming meetings, incentives, conventions and exhibitions trade; new-product development; its 300 airports and massive infrastructure development. His group manages Four Seasons, Marriott and Amantara hotels. "Minor is driving Amantara as its main management company. We are creating new hotels overseas, all aimed at the high-end market," Heinecke said. Oriental general manager Kurt Wachtveitl discussed how to become the "world's best hotel". He said the three pillars of management at the Oriental were staff loyalty, the quality of human resources and Thai hospitality. Wachtveitl said the hotel offered all levels of training and activities for staff. It claims to have the best employees in the country. "During low season we keep them awake by training them in what they should know. They need to learn more languages, do yoga and meditation and participate in sports days and internal parties. "At the same time we send them overseas to learn and practice how to take care of guests. We teach them never to say 'no' and to take a proactive approach to guests," he said. Wachtveitl added that the hotel was "more than a luxury hotel. We are making our staff the best so people view the hotel like brands Bulgari, Versace, Louis Vuitton or Prada". Hotels, services and restaurants generate more than 50 per cent of tourism revenue, said Bangkok Bank president Chartsiri Sophonpanich. The bank wants to improve Thailand's competitiveness by helping hotel-operators and developers upgrade operations to world-class standards. "To provide an opportunity for hotel businesses to meet and exchange their knowledge, Bangkok Bank has invited leading hotel-industry experts to share their experience at the seminar," Chartsiri said. Chartsiri said the bank played a role as the "thinking partner" for key industries, helping businesses achieve world-class standards amid intensifying competition brought on by trade liberalisation and deregulation. The seminar is a part of its customer-service strategy. "Hotels in some locations depend on tourist seasons. The bank can provide advice to help them manage payments and cash flow efficiently during the difficult periods," he added. Tourism and Sports Minister Suvit Yodmani explained the ministry had a three-year plan that focussed on "quality tourists instead of quantity". He said the ministry would seek an additional Bt500 million in spending to boost tourist numbers during the second half of this year. Of that, Bt300 million is for marketing and advertising overseas and the rest for domestic promotion.
Suchat Sritama
The Nation
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