Vol. 21: May - June 2009
Renard International

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ITB 2009 Comments / ATM Predictions / Quotes

COMMENTS ON THE ITB AND THE UPCOMING ATM

The atmosphere of “2009 ITB displayed little to predict the future.  Many companies acted like “Nero who played his violin while Rome burned down”.

Leading Traveler’s Magazine revealed “the best airline wines” (so what!) and the “Leading Hotels of the World” ITB booth was offering champagne cocktails at 10:30 am in the morning! 

Other companies showed restraint, such as Kempinski Hotels who did not put on a party for the first time in 30 years (since I have been attending the ITB)!  Hoteliers were disappointed as they looked forward eagerly to The “Kempinski get together” at the ADLON Hotel, to meet all their friends and see where they are now.

Hyatt Hotels decided to withdraw their presence this year and Mandarin Oriental Hotel Group quickly jumped into Hyatt’s spot in Hall 9 (Global Village), and as “quick as a bunny” Jumeirah jumped into Mandarin’s spot!  Too bad for Hyatt, as they lost one of the prime locations in the entire show (ITB is made up of over 28 massive exhibition halls that are at least 10 times larger than the WTM facility in London)! 

What really surprised me at the Investment Conference was that not a soul mentioned the fact that at last year’s conference, every speaker talked about the development boom going on for ever!  Not one of the industry leaders invited to speak in 2008, mentioned the possibility or the word “Recession”…… “strange”!  Of course, none of these people showed up for this year’s conference.  The least I expected was an apology from the investment conference organizers about last year’s invitees’ predictions, since the organizers claim to invite the leading authorities in our industry, and not just those who sponsor their events. In 2008, when they spoke about the never ending boom, we had already been in the recession for several months ……

The ITB visitors and exhibitors were down, which was not unexpected; but some hotel companies said “we are still signing good business”.

Probably the truth is that it was a dull, lifeless show and those who were happy and doing good sales, intentionally appeared with a grim demeanor in order not to seem out of place and to display a financially responsible attitude. 

In these trying times, being profitable, moving ahead and keeping your people seems like a bad thing share with people…strange times we live in!

Furthermore, everyone was talking about “energy conservation, protect the environment, use organic products, carbon footprint, recycle everything (including the guests)”, but no one has yet explained to me in depth as to how they are going to do this in the middle of an economic downturn and recession?  Who is going to pay?

I am hoping that the Dubai Investment Conference and the accompanying ATM exhibition on May 5th–8th, will be like a crystal ball to show us the future, although in all honesty, most expect the ATM to be a mirror image of the investment conference and ITB that has just passed uneventful!

In conclusion, I enclose a quote from a senior official of ATM:

“Everything has been going well for us.  We have experienced some fall out this year which is to be expected, but we still have every confidence that it will be a particularly strong show, with an even stronger sense of business focus.  Our pre-registered visitor figures are particularly improved”.

MY TRAVEL SCHEDULE IS

  • Dubai           :       May 04th to 07th
  • Bangkok       :       May 08th to 10th
  • Singapore     :       May 11th to 13th
  • Hong Kong    :       May 14th to 15th
  • Shanghai      :       May 16th to 17th
  • London         :       May 18th

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“QUOTES” FROM THE ITB INVESTMENT CONFERENCE 

I enclose a list of “quotes” from the ITB Investment Conference.  They were said by these people:

 You pick “who” said “what” and what they actually meant?

  •  Andrew Cosslett – Chief Executive Officer, Intercontinental Hotels Group or
  • Chris Nassetta – President & Chief Executive Officer, Hilton Hotel or
  • Frits van Paasschen – President & Chief Executive Officer, Starwood Hotels & Resorts Worldwide, Inc. or
  • Gilles Pelisson – Director & Chief Executive Officer, Accor or
  • Arne Sorenson – Chief Financial Officer & President, Marriott International Lodging

QUOTES

  •  The sign of a good leader is to Define Reality and Give Hope – Napoleon
  • A recession is Cause and Effect with extremely challenging, stabilization, stimulus
  • There are still some positive pockets of growth in the Middle East, North Africa and Brazil
  • Rationalize our business with a fabulous new platform by structuring sidewise and right sizing our business
  • The Market share pressures affect the hotel development pipeline now and in the future
  • There is only a small period of time when you can acquire the best brands that is why we bought Hilton when we did.
  • Accor is Discounting 1,000,000 Million room nites in Asia.  Customers look for value “sensible use of pricing”, discounting is part of business of marketing
  • Foolish decision making is to offer mid week discounts and we are actually looking for “Partners” as well.
  • Few hotel properties are selling as the sell to bid spread is too far apart, so no deals being made
  • We rationalize environment and Focus on what you do best – Froth
  • Is it a pipeline of development or a pipe dream these days?
  • We see more conversions rather than new builds in Europe.
  • We must drive customers through the front door and motivate by performance.
  • We are cutting relocation costs, cutting training, and internships are being postponed.
  • Like you folks my stock options are under water
  • We lag behind and so we don’t predict our future business.
  • The cost of all these changes and “environmental projects” is equal to the cost of purchasing a hotel company!
  • Protect “Energy Conservation” and find the right model for each country.
  • The difference between surviving and thriving often depends on how efficiently your technology and people can drive your business.
  • The technology of how you book customers will change in 10 years, as technology is moving now at the rate of 100 miles an hour!

At Renard, customer service is not a "Department" it's an "Attitude"!

Sincerely,

Stephen J. Renard
President

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