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march 2011 SPECIAL i TB ed i T i o n F o r eX P e rT S in h o S P i Ta L iT Y & Tou ri Sm

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March 2011 hospitalityINSIDE Special ITB 201 1 Dear hospitalityInsiders and guests of ITB Berlin 2011, This edition is the first special issue of hospitalityInside at ITB. Since 2006, hospitalityInside and Messe Berlin have been working together in a successful partnership: the title "Hospitality Day" already existed when the Berlin trade fair contacted us and entrusted us with the content arrangement for the congress. Consequently, hospitalityInside became the exclusive media partner of the ITB Hospitality Day. Similar to the entire "ITB Kongress" with its many different forums, the ITB Hospitality Day also recorded increasing visitor numbers. In 2010, about 1,400 listened to the discussion rounds about hospitality. All in all, 155 top executives from the areas of hospitality, tourism and investment participated in the panels in Hall 7.1 and about 5,500 visitors were recorded in the first five years. This makes the Hospitality Day one of the most frequented events of the ITB Convention programme. For us, these figures mean an incentive for the 6th ITB Hospitality Day this year! As in previous years, you will be able to follow the reports on the conference's panels on our website at www.hospitalityInside.com. Just click on the "Network" button. There you will find advance information and reports on all the events we support or carry out ourselves. In this magazine, we focus on the content of the ITB Hospitality Day and other hotel-related events taking place at ITB, such as the Experts Forum Wellness. On the following pages, you will find, among other things, an interview with the responsible ITB managers on the development and the forthcoming changes round about the trade fair. Furthermore, you will also find expert articles and excerpts from the hospitalityInside.com online magazine. This special edition is also available online in German and English on our homepage at www.hospitalityInside.com and at ITB Berlin's eLibrary. I wish you all a successful ITB 2011! Maria Pütz-Willems Editor-in-chief hospitalityInside.com Do you have questions or suggestions? Please contact us via: Editing department: editor@hospitalityInside.com Publishing company: office@hospitalityInside.com

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hospitalityINSIDE Special ITB 201 1 March 2011 INHALT Editorial Meeting Point ITB Grand old lady or aging granny? 45 years of ITB: Dr. Martin Buck and David Ruetz on old and new things 6th ITB Hospitality Day ­ Programme and Panellists Hotels are simply sexy The annual ITB hotel conference is among the tops ITB Experts Forum Wellness & other panels Networking, online and offline hospitalityInside in action: Spa workshop, Real estate topics Demand for better resort hotels on the rise GfK now analysing hotel reservations 3 5 6 8 10 11 12 13 14 15 17 18 20 23 25 27 Google Streetview leaves the industry cold Poor and old photographs aren`t good marketing for hotels In the Marriott pond: Ritz-Carlton Co-Founder Hervé Humler is now President ­ An update Massively overestimated? Critics: Social Media must be viewed and used in differentiated ways Call of the desert: Abu Dhabi`s Hotel Fort Qasar Al Sarab has to cope with many challenges The new face of Andermatt: How the idea of value appreciation has stirred up a sleepy Alpine valley With a steady hand: The Ifen Hotel opens as new Travel Charme flagship hotel in Kleinwalsertal People are the winners: 10 years after the spa boom things become clearer Social Media: Warning, Dazzler! IMPRINT Publisher: hospitalityInside GmbH, Paul-Lincke-Strasse 20, 86199 Augsburg, Gemany, www.hospitalityInside.com // Editorial office: Maria PützWillems, Editor-in-chief, hospitalityInside.com // Articles: The articles published in this Special are written on the occasion of ITB 2011 or are extracts of articles published in the online magazine www.hospitalityInside.com // Authors: Maria Pütz-Willems, Susanne Stauss // Title: fotolia.de // Photos were kindly provided by the hotels and persons mentioned // Other photos by Maria Pütz-Willems and pixelio.de // Advertisements: This Special is kindly supported by Lefay Resort & Spa, Living Hotels, Messe Berlin, Ronnefeldt, Schletterer und Thalgo // Layout: Cornelia Anders, www.blueorangeblue.de // Print: Druckerei Steinmeier, www.steinmeier.net // Copyright: hospitalityInside GmbH. This content is protected by law. Publishing this content or parts of it in print or online media requires the written permission of hospitalityInside GmbH. In case of violation we will charge current market fees. Beyond, we reserve the right to take legal action and claim damages.

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March 2011 hospitalityINSIDE Special ITB 201 1 Meeting Point ITB Travel Giant: ITB Berlin Expert Meeting Point No.1 Network: hospitalityInside.com s a driving force in the travel industry, ITB Berlin gives important impulses to a continuously growing market. Exhibitor sales of about 5 billion Euro and an exhibitor satisfaction rate of 92 percent are evidence enough that supply and demand meet at the right place. ITB is the world`s biggest travel fair. With more than 180,000 visitors, among these 108,000 trade visitors, and over 10,000 exhibitors from 180 countries ITB Berlin is the leading B2B-Platform of all tourism industry offers. In addition, the world's largest tourism convention Market Trends & Innovations provides unique opportunities to benefit from the leading think tank of the global tourism industry. All levels of the value added chain are present: Tour operators, booking engines, destinations, airlines, and hotels right through to car rental companies. Despite its size, ITB Berlin is clearly structured. ITB Berlin enjoys worldwide media recognition (7,000 journalists are attending) and offers comprehensive support for all marketing questions exhibitors might have. Finally, ITB Berlin is organized by an experienced exhibition management company. ince 2004 the ITB Berlin has hosted the world`s largest tourism convention, the ITB Berlin Convention. Over the past seven years over 60,000 experts from every source and destination country in the world have been catching up on the latest industry trends and have been discussing business strategies at the ITB Berlin Convention. The record attendance of over 12,500 participants in 2010 proved that the ITB Berlin Convention was able to further extend its lead as "The Leading Travel Industry Think Tank" (www.itb-convention.com). The topics ­ concentrated in "Days" ITB Future Day: The ITB Future Day portrays the future in the fields of economy, society and travel patterns. ITB Hospitality Day: International experts discuss the challenges in the hotel industry at the ITB Hospitality Day. ITB Eco-Mobility Day: Experts discuss environmentally friendly strategies for the future and their relevance for the tourism industry at the ITB Eco-Mobility Day. ITB CSR Day: The ITB CSR Day provides suggestions for the implementation of CSR in the travel industry. ITB Marketing and Distribution Day: The ITB Marketing and Distribution Days will discuss the latest strategies and practical examples of marketing tourism. ITB Destination Days: Visitors to the ITB Destination Days will be able to find out the latest about culture, city and river tours. The emerging markets in Asia are another key topic. quick access to reliable information has always been the decisive element in the success of any person or business. Today, new media produce a constant flood of data, yet reliable sources are hard to come by. More and more, users invest in research time while doubting the quality of information available. Hence, hospitalityInside was born in 2005 on the vision of a information network between expert journalists and hotel executives. Clear rules, transparent price structures and information headings differentiate information fields, currently subdivided into the editorial "magazine", into "Solutions" for specific information by the industry`s service providers and suppliers, and in "Network" for conferences, events and all future social media activities. · hospitalityInside.com is a purely editorial independent magazine with focus on the international hotel industry. · Online distribution ensures rapid and reliable delivery of important news to all corners of the globe (inter alia, by way of "Breaking News"). · The target group comprises of managers in the hotel industry and associated industries. · The magazine is published every Friday (48 times per year). · It completely appears in two languages (German/English). · The online magazine is entirely free of advertisements. The aim of the magazine is to bring transparency into the hotel market. The geographical focus of reporting is currently on Europe and the Middle East, though does include international hotels, hotel groups and associated markets and players. The editorial team provide their own research based contributions with in-depth articles, background reports and further interest links. Statistical Details (2010 ­ Figures as of 12 March 2010) Exhibition area: overall 160.000 sq.m. Exhibitors: in total 11.127 (including 3.887 additional companies represented), of which foreign exhibitors: 8.490 German exhibitors: 2.637 Visitors: in total 179.351, of which trade visitors 111.133 The "Specials" of ITB Berlin Convention Business Travel Days Travel Technology

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hospitalityINSIDE Special ITB 201 1 March 2011 45 YEARS of ITB: DR. MARTIN BUCK AND DAVID RUETz oN oLD AND NEw THINGS Grand old lady or aging granny? Berlin (March 9, 2011). 45 years ago, Messe Berlin initiated the "Internationale Tourismusboerse" (ITB) Berlin. Today, it is the biggest tourism fair in the world ­ bigger than any other tourist meeting point in the United States or Asia. Year after year it maintained its position thanks to rising numbers of exhibitors and visitors and even came through the recent financial and economic crisis. Critics say such trade fairs no longer have a future. But Dr. Martin Buck, Director KompetenzCenter Travel & Logistics of Messe Berlin, and David Ruetz, Senior Manager and Head of ITB Berlin have a different opinion. "Life only starts at 45", they say with a smile and talk about the status quo and future plans. Is ITB a grand old lady or an aging granny? Dr. Martin Buck: Life only starts at 45... ITB is far from joining the aged and infirm members of the trade fair landscape. Quite the contrary: since its birth in 1966, it has proven it has the right genes to remain fit up to a ripe old age. Back then, it already followed its three-tier philosophy ­ a "trade pillar", an "audience pillar" with the people of Berlin as testers of what the trade fair has to offer, and the segment of knowledge transfer. With the separation into professional and public days and the growing "ITB Convention", ITB 2011 is celebrating its heyday. How has the ITB changed in terms of structure? David Ruetz: There has been a clear shift from product innovation towards process innovation. Today, it is no longer about selling finished travel products, but all aspects that contribute to creating these products or making it more attractive. This is why travel technology has significantly gained in importance ­ and this year, we even combine travel technology and social media, as user behaviour can no longer be separated between these two fields. Moreover, eTravel World will be another new segment in the discussion about the future of travel. ITB thus reflects the changes in our society continually. Martin Buck: At the World Economic Forum (WEF) in Davos, five trends were identified this year ­ and we are proud that ITB provides offers and congress topics for all these trends, namely demography, decarbonisation, digitalization, shift in dynamics and penetration of social spheres. "There has been a clear shift from product towards process innovation." ITB managers David Ruetz (left) and Dr. Martin Buck. To what extent has the mix of exhibitors and guests changed throughout the years? Martin Buck: I'll refer to the exhibitors. Supply has been as colourful as demand. When there is an international football event in the Ukraine and Poland, they also need more space at ITB ... Basically, I can say that the country halls have continuously grown, whereas topical segmentation has grown even faster: accordingly, tourist offers for gays and lesbians, for example, had been allocated to the individual city booths, whereas today, it is a standard segment on its own. In addition, ITB is increasingly being discovered by companies of other non-tourist industries. For example, there will be a Vodafone booth for the first time in 2011. Such developments are proof of the shift from product to process innovation mentioned before. Please don't get me wrong, though: the segments have become more versatile, but this does not mean that there are fewer exhibiting countries now! David Ruetz: As regards visitors, we are recording gradual internationalisation. One fourth of professional visitors have come from abroad and now they make up one third. And on days open to the public, we are happy to observe that there are no longer just people from Berlin looking around: during the weekend, 12 percent of the private visitors at the ITB come from Western Germany. Trade fairs have a very long preparation period. How up-to-date can ITB be after all? Martin Buck: Very up-to-date! Facing the current upheavals in Tunisia and Egypt, we will have a dedicated Middle East panel in the course of the ITB congress! Details can only be announced via www.itb-convention.com, but it shows how flexible we are. Apart from that, there are more debuts concerning explosive and future-oriented topics such as the Eco-Mobility-Day. Critics claim that trade fairs like ITB were much too inflexible and conservative and no longer corresponded to people's communication behaviour. What do you think about that? David Ruetz: Today's trade fairs are complementary building blocks for every company and are no longer substitutional. Tho-

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March 2011 hospitalityINSIDE Special ITB 201 1 3RD ITB ASIA: fAST BEATS SLow Singapore (october 29, 2010). After a six-percent increase in the number of exhibitors, the 3rd ITB Asia closed with a plus of visitor numbers too: This year, there were 6,606 visitors ­ 7.4% more than the previous year. These figures show that the ITB Asia in Singapore is slowly being accepted as a travel trade fair in the far East. Three years after the launch, the organiser, Messe Berlin (Singapore), is delighted about the new dynamics in the trade fair segment: the mixture of expert panels, the attractive outbound demand in Asia, and more quality among the purchasers were the driving forces for the 3rd ITB Asia. This has already led to first early bookings: "we already have a great number of `Early Birds` for the ITB Asia 2011," reported Nino Gruettke, ITB Asia Executive Director, at the end of the trade fair. The trade fair operator was already in the black with the 3rd ITB Asia, explained Dr. Martin Buck, Head of ITB Berlin to German journalists in Singapore ­ even without the initial subsidies of the city of Singapore. "However, our learning curve is still steep in Asia," he put his statement into perspective: every year, the trade fair tried out something new, in order to come closer to the exhibitors` and (hosted) buyers` expectations. for example, the ratio of European and Asian purchasers had to be adjusted and the quality of the purchasers had to be increased. And globally renowned names were partly still missing among the exhibitors. Nevertheless, the ITB Asia is one of the largest travel trade fairs in Asia, says Buck: it is two times larger than the PATA Travel Market, which permanently changes location and only has half the number of exhibitors, despite its longer history; the much smaller IT&CMA Bangkok and the CJTM in China, alternating between Shanghai and Guangzhou, rate among them as well. "our concept is outgoing," says Buck, "the ITB Asia is an outgoing trade fair. This is the difference to other trade fairs." In Singapore, business travels and MICE are the core subjects; in Berlin, touristic travels predominate. // Today`s trade fairs are complementary building blocks and are no longer substitutional. se able to calculate use ITB: a survey by Messe Berlin carried out among Germany's 100 largest tour operators revealed that their representatives stay an average 3.5 days at ITB, handling about 30 appointments at the booths as well as taking advantage of additional contact opportunities at countless events in the evening. This saves considerable expenses ­ and that is what company heads appreciate about it. There is no telephone conference system that is able to bring across the sound of ITB, its smell and "taste"... Meeting points like trade fairs are also emotional worlds and as such they create a balance with respect to the anonymous virtual world. How strong is ITB Berlin's activity regarding social media? Martin Buck: Two years ago, we entered the world of social media at a good time. We are active at Twitter and are represented at platforms such as Facebook, Xing and Linked-in. We have an increasing number of fans, but we don't have a mega community at the moment. There are people in the USA or Asia who still don't know ITB. What are you doing to increase your popularity? David Ruetz: The United States and Latin America are markets with great potential for us; that is true. But Eastern Europe is also a target. We are currently planning a survey on how the 20 markets in Eastern Europe can be addressed most effectively. In Asia, we have initiated ITB Asia in Singapore in 2007. It has become a successful and well-respected trade fair after the third time and will support our good reputation in Berlin. And what are your plans for your home, Berlin, in order to maintain attractiveness? Martin Buck: The trade fair area will grow, our halls are being continuously modernised. Hall Germany, which has had only one exhibition floor, will be demolished and replaced by a modern hall with two floors. This will add another 20,000 sq. m., which is more than ten percent of the gross surface area. The hall will be finished in 2013 and serve as a temporary home of the ICC, which will also be renovated and re-opened in 2016. So ITB Berlin will see some lifting ... Martin Buck/David Ruetz (laughing): No, it's not a superficial cosmetic repair, but an improvement of its condition. After all, ITB wants to gather a few more years. Thank you very much for the interview! The interview was conducted by Maria Pütz-Willems.

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hospitalityINSIDE Special ITB 201 1 March 2011 6th ITB Hospitality Day Programme & Panellists on Thursday ­ March 10, 2011, Hall 7.1b, Auditorium London, 10.30 ­ 18.00 hours 12:15 ­12:45 Hotels 2020: Beyond Segmentation Moderated by: Prof. Dr. Christian Buer, Head of Tourism/Hotel Management, Heilbronn University Speakers: Jérôme Destors, Director Hotel IT, Amadeus; Rohit Talwar, CEO, Fast Future Research 13:00 ­14:00 CEo Panel: Priorities on Hospitality or Real Estate? Conversation with the CEOs of two different hotel groups Moderated by: Maria Pütz-Willems, Editor-in-chief, hospitalityInside.com Panel guests: Christian Windfuhr, Chief Executive Officer, Grand City Hotels & Resorts; Reto Wittwer, President & CEO, Kempinski Hotels & Resorts 14:30 ­15:30 ow much influence do current social and tourism issues have on the hotel industry? The ITB Hospitality Day discusses markets and people, concepts and contradictions, trends and counter trends ­ and helps the industry to position itself in the international environment. hospitalityInside.com is the exclusive media partner of the ITB Hospitality Day. Hosted by: Maria Pütz-willems, Editor-in-chief, hospitalityInside.com The End for Mom-and-Pops? Succession issues and franchise brands make the future difficult for private hotels Moderated by: Steffen Weidemann, Chief Executive Officer, IFH Institute For Hospitality Management Panel guests: Guglielmo L. Brentel, President, Hotelleriesuisse; Prof. Stephan Gerhard, Chief Executive Officer, Treugast Solutions Group; Marcus Smola, Managing Director, Best Western Hotels Germany; Susanne Weiss, CEO, Ringhotels Germany 15:45 ­16:45 10:30 ­11:30 Hotel Markets in Eastern Europe ­ Real Perspective or Mirage? Developments in Poland, Croatia, Romania and Russia Moderated by: Martin Schaffer, Managing Partner, Kohl & Partner Panel guests: Friedrich W. Niemann, General Manager, Waldorf Astoria Berlin & former GM Hilton Bukarest; Laurent Picheral, CEO, Orbis SA Poland; Kristian Sustar, Executive Director, HUP Zagreb & President of the Croatian Hotel Association; Thomas Willms, Vice President & Regional Director East & Central Europe, Starwood Hotels & Resorts Social Media & Hotel Evaluation Platforms ­ friends for Life? How networks interlink Moderated by: Gabriele Schulze, Owner, marketing4results Panel guests: Juliane Cray, Industry Head Travel Germany, Google Markus Luthe, Managing Director, German Hotel Association (IHA) Marco Nussbaum, Chief Executive Officer, Prizeotel Management Group; Christine Petersen, President, TripAdvisor for Business Jörg Trouvain, Chief Executive Officer, holidayCheck 17:00 ­18:00 11:45 ­12:15 Environment & CSR ­ Concepts & Assessments Moderated by: Prof. Dr. Christian Buer, Head of Tourism/Hotel Management, Heilbronn University Speaker: Xavier Font, Co-Director International Centre for Responsible Tourism, Leeds Metropolitan University Low Budget Hotels & Hostels: A Good Night`s Sleep for Peanuts? The new trend in between youth hostel and budget hotel Moderated by: Martina Fidlschuster, Managing Partner, Hotour Hotel Consulting Panel guests: Franz-Josef König, Managing Director, Gesellschaft für Systemisches Management; Mark Lankester, CEO, Tune Hotels Andrea Mehanna, Managing Director, hostelslcub.com; Oliver Winter, CEO, A&O Hotels und Hostels

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March 2011 hospitalityINSIDE Special ITB 201 1 BRENTEL GUGLIELMO has been appointed President of the Swiss hotel association "hotelleriesuisse" in 2005. He started his career in the hotel industry in Switzerland and outside and founded his own company in 1989 (H&G Hotel Gast AG). CRAY JULIANE, Industry Head Travel at Google Germany, consults tourism companies how to reach their marketing goals by the use of the internet. Before joining Google more than eight years ago, Juliane began 1999 her career at ad pepper media, a service company for interactive media solutions. LANKESTER MARK is Group CEO of Malaysiabased Tune Hotels. He comes from the entertainment and leisure consumer goods industry ­ with over 15 years with the Warner Music Group across Greater China and Asia. PETERSEN CHRISTINE leads the division `TripAdvisor for Business'. She joined the company in 2004, serving as Chief Marketing Officer. Prior to joining TripAdvisor, Petersen was vice president of member services and customer marketing at Travelocity (formerly Preview Travel, Inc.) and previously held senior marketing positions at Charles Schwab & Co., American Express and Fidelity Investments. SMOLA MARCUS is working with Best Western Hotels Germany since 1999 and became Managing Director in 2008. Before, he was working for an event agency and hold various sales positions at Steigenberger Hotels AG, Frankfurt. SUSTAR KRISTIAN is Executive Director of the Croatian hotel group HUP Zagreb coming from Maistra, a leading hotel operator and hotel investor in Croatia. At the end of 200, he assumed presidency for the Croatian Hotel Association. TROUVAIN JÖRG took on the role of CEO at HolidayCheck AG in Switzerland in 2009. Since 2006, he was in charge of the European business of Activision Blizzard, an interactive entertainment software publisher in the U.S.; previously he was with Electronic Arts Germany for ten years. WINDFUHR CHRISTIAN, CEO of Grand City Holland B.V. with 85 hotels in Europe at present was Executive Director of Corinthia Hotels in Malta and in charge of the Refad Hotel Group in Kuwait/Dubai. Prior to that, he as Managing Director of German Maritim Hotels as well as President and CEO of Swiss Moevenpick Hotels & Resorts. WINTER OLIVER is the co-founder of A&O Hotels und Hostels in 2000 and has been appointed chairman of the board at the same time. WITTWER RETO was appointed President and Chief Executive Officer of Kempinski Hotels & Resorts in 1995. The native-born Swiss worked for hotels all over the world, e.g. for InterContinental and Mandarin Oriental Hotels, Peninsula, Hyatt and Le Méridien. Wittwer previously held the position of President and CEO of Italian Ciga S.p.A. and prior to that, he was President and CEO of Swissair Nestlé Swissôtel Ltd. Advertisement spa consulting architecture spa design engineering realisation at the beginning is a vision, at the end is the enthusiasm of your guests. You can be confident of an excellent spa design that achieves perfect functionality, the application of sustainable technology, and above all, enthusiastic guests. www.schletterer.com Schletterer Wellness & Spa Design GmbH A-6261 Strass i. Z. | Nr. 190 t +43 5244 62005 | f +43 5244 62005 50 office@schletterer.com

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hospitalityINSIDE Special ITB 201 1 March 2011 THE ANNUAL ITB HoTEL CoNfERENCE IS AMoNG THE ToPS Hotels are simply sexy Berlin (March 9, 2011). Hotels are simply sexy. There is no other explanation for the big interest the "ITB Hospitality Day" has experienced since its debut five years ago. The ITB's hotel conference is one of the visitor magnets of the world's largest tourism trade fair and recorded about 1,400 visitors last year. In the meantime, the organisers have been receiving inquiries from all over the world addressing one particular problem: the selection of issues. The colourful, shining hotel world with its many specific challenges and fast developments has more than enough to offer. conference. Hotel groups and hotels have been among the frequent exhibitors from the beginning of ITB ­ just as the trade fair company has been experiencing the developments in Singapore at the newly founded ITB Asia. The hospitality industry is a central service provider in tourism and its importance is undiminished. Even in the 45th year of ITB in Berlin, the "hotel hall", Hall 9, is still a legend. Today, there are two hotel chains that were already present at the first ITB in 1966: Steigenberger and Hilton. The waiting list for a booth in Hall 9 among this select circle of exhibitors is still long. The reason: many hotel groups have grown and are present all over the world today, which is why they no longer feel attached to the booths of their home destination. doors in the world of tourism. The consistent focus on the congress' quality in terms of content has resulted in a high degree of acceptance among experts similar to the magazine. Network synergies, an international language and common events contribute to keeping the colourful world of hotels interesting on an expert level. The ITB Hospitality Day is not about initiating sensational headlines but letting top-notch experts explain backgrounds. "Firsthand information" is the motto. Top-class panels thanks to top-class participants Since its debut, 155 top executives from the hospitality, tourism and investment sector have sat on the stage of the ITB Hospitality Day. Visitor numbers have added up to a total of about 5,500 visitors in five years. Over the years, certain topics have become permanent issues ­ corresponding to the social development. Accordingly, this year will see "budget" return to the programme as a topic. Similarly, issues covering energy and the environment have become a frequent part of the panel discussions. CEOs and Managing Directors have become regular participants in the panels, but the explicitly highlighted "CEO panel" only came in to being in 2009. The ITB Hospitality Day has seen many representatives of big players on its list of guests, such as the CEOs of InterContinental Hotels (Andy Cosslett), Marriott (Ed Fuller), Jumeirah (Gerald Lawless), Fattal (David Fattal), Ritz-Carlton (Simon Cooper), Rocco Forte (Sir Rocco Forte), but even courageous entrepreneurs from the tourism sector like Samih Sawiris from Egypt, renowned designers like Matteo Thun from Italy, the Presidents of major associations and, indispensably, top-class specialists from all sorts of fields. // Since 2006: Synergies between hospitality fair and hospitality medium n 2004, the Berlin trade fair decided to give its conference programme a new profile systematically extending the focal issues. Dr. Martin Buck, Director KompetenzCenter Travel & Logistics Messe Berlin increasingly trusted in congresses with quality in terms of content ­ a deliberate alternative to sponsor-dominated events that were on the rise mostly offering poor content. ITB visitors were meant to benefit from significant added value. The new concept was a success. For seven years, the number of visitors has been rising inexorably to over 12,500. This year, they could reach four times the number of 2004 and more. This is a huge increase facing the still confusing hustle in the 26 halls and the International Congress Center (ICC). In 2006, the 40th anniversary of ITB, the "ITB Hospitality Day" started as the first hotel The title of "Hospitality Day" already existed when the Berlin trade fair contacted hospitalityInside.com and entrusted the content arrangement to the international online hotel magazine. Accordingly, hospitalityInside. com became the exclusive media partner of the ITB Hospitality Day. On its website, www.hospitalityInside.com, the magazine provides extensive, publically accessible documentation on the ITB Hospitality Day each year under the "Network" button ­ via announcements and post-event coverage. Since 2006, the concept of combining the trade fair with a hospitality medium has been very successful to the visitors' benefit. Thanks to the weekly rhythm of publication, hospitalityInside's journalists and experts are able to follow the latest trends and events permanently, while the complete bilingual coverage (German and English) helps to create international connections and opens

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March 2011 hospitalityINSIDE Special ITB 201 1 ITB Experts Forum Wellness & other panels Thursday ­ March 10, 2011, Hall 7.3, Auditorium Berlin, 10.30 ­ 17.15 hours The spa and wellness culture as it exists today has many and different roots. They stretch from the ancient spa and bath traditions of Germany and Central Europe, to the cleansing rituals of the Near East, far into the Asian and Pacific area and beyond. New themes, topics and trends in this market segment are the focus of our ITB expert board, which is being organised in cooperation with the Berlin trade fair organisation Messe Berlin, by wellness Hotels Deutschland, a consortium for international wellness hotels & spa resorts. 10:30­10:35 welcome Speaker: Michael Altewischer, Managing Director, w-H-D 10:45­11:35 Keynote: Go Green!? Speaker: Dr. franz Linser, founder & Managing Partner, Linser & Partner 11:40­12:20 Sustainability in Hotel & Spa ­ a Holistic way Best Practice: Mandarin oriental Group Speaker: Andrew Gibson, Group Director of Spa, Mandarin oriental Hotel Group 12:25­13:05 Sustainability in a Privately-run Hotel Best Practice: Lefay Resort & Spa, Lago di Garda/Italy Speaker: Stephan Gander, Head of Communication, Lefay Resort & Spa 13:10­13:50 Enjoy a Better, Healthier Lifestyle! Speaker: Dr. fedon Lindberg, Dr. Lindbergs Clinic 14:30­15:10 Medical Spa & Healing Diet ­ A View on the Asian Market Speaker: Michael Loh, CEo, Ageless Inc., founder & Editorial Director, SpaAsia 15:15­16:15 Round Table: future Spa ­ what Influence will Sustainability and Diet Have on the Spa Industry? Moderated by: Dagmar Rizzato, Managing Director, Rizzato Spa Consulting Panel guests: Andrew Gibson, Dr. fedon Lindberg, Michael Loh 16:20­17:00 Guest Satisfaction ­ Great Potential for Corporate Governance Speaker: Thomas zimmermann, Manager Golf & Spa, wald & Schlosshotel friedrichsruhe 17:05­17:15 Summary & To do`s Speaker: Michael Altewischer, w-H-D Advertisement Other panels (selection) ITB Business Travel Day, March 10, 2011, Hall 7.1a, Auditorium New York 2 12:30­13:15 Ancillary Revenues ­ Gain and Pain Speaker: Stefan fallert, Director, Policy & Compliance Solutions Group Global, Carlson wagonlit Travel ITB CSR Day, March 10, 2011, Hall 7.1a, Auditorium New York 3 13:10­13:35 CSR facts and figures: Between Leakage and fair Share ­ what Percentage of your Package Price Remains in the Destination? Speaker: Klaus Lengefeld, Senior Advisor for Tourism and Sustainable Development, Deutsche Gesellschaft für Internationale zusammenarbeit (GIz) GmbH ITB Eco-Mobility Day, March 11, 2011, Hall 7.1a, Auditorium New York 3 11:00­11:30 Keynote: The future of Mobility Speaker: André Borschberg, CEo, Solar Impulse world-class architects and spa consultants prefer inviion spa equipment its innovative SPA equipment design and SPA technology ensures the enthusiasm of your future guests. Holistic Cocooning 4 Senses Lounger Infinity Solo Pool Aquaveda Table www.inviion.com INVIION® GmbH | Gewerbegebiet 193 | A-6261 Strass i. Zillertal Tel.: +43 720 010099 | Fax: +43 720 010099 55 | E-Mail: office@inviion.com

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hospitalityINSIDE Special ITB 201 1 March 2011 Dear Readers, In this magazine, we focus on the content of the "ITB Hospitality Day" and other hotelrelated events taking place at ITB, such as the Experts forum wellness. furthermore, you will find, among others, an interview with the responsible ITB managers on the development and the forthcoming changes round about the trade fair. You will also find expert articles and excerpts from the hospitalityInside.com online magazine. HoSPITALITYINSIDE IN ACTIoN: SPA woRKSHoP, REAL ESTATE ToPICS Networking online and offline Augsburg (March 9, 2011). hospitalityInside.com is an international information and networking platform for hotel management both online and offline. This is why hospitalityInside connects people with each other ­ at events, workshops, trade fairs, conferences, and during travels. In 2011, the magazine plans a workshop on spa investments, a joint hospitality stand at Expo Real, Europe's leading commercial real estate trade fair, and the third "Bricks&Brains" event, also at Expo Real, a top-level event for hotel investors and operators. he hotels' spa areas have become a standard feature. But not every hotel earns money with it. A single-day workshop in Wiesbaden, Germany, on May 23, 2011, will provide some orientation, make financing and financing aids transparent and warn against traps. The market still has potential, but nonetheless, investments in a special real estate like hotel spas needs to be well thought out. Under the title of "Investments in Spas" the workshop will cover questions on markets, locations and potentials of different types of spas, space requirement, concepts of use, and economical key data. The workshop targets at investors, owners, banks, project developers and hoteliers planning to invest into spas. meeting costs 490 euros (excluding VAT), including lunch, coffee breaks and a documentation. Closing date for registration is May 2, 2011. More information will be provided by Dagmar Rizzato of Rizzato Spa Consulting, telephone +49-75 42-94 69 90, or email braun@spa-consulting.com, and Maria Puetz-Willems, hospitalityInside, telephone +49-821-99 56 56, email maria@hospitalityInside.com. 1st joint hospitality stand at Expo Real Munich The colourful, glamorous world of hotels shines with its hotel brands and distinct individual hoteliers, but in the background, there are investors ­ a similarly colourful mixture of patrons and professional investors. Being Europe's leading commercial real estate trade fair, Expo Real in Munich has dedicated a special hotel conference to the hospitality industry for a few years now, the "Hospitality Industry Dialogue". Since 2008, it has been organised by Maria Puetz-Willems, Editor-in-chief of hospitalityInside. Since 2009, the magazine also invites select top managers from the hospitality, finance and investment sector to the exclusive "Bricks&Brains" networking event. And this year, hospitalityInside will initiate a joint hospitality stand for the first time. Under the roof of the "World of Hospitality", hotels and hotel-related companies from financing, investment, project development etc. are invited to present themselves as co-exhibitors. The project generates cost advantages, synergies as well as an industryfocused platform ensuring strong presence at the trade fair. If you are interested, please contact the publication via office@ hospitalityInside.com. // Spa: space requirements and concepts dictate the costs Initiators of this special workshop on Monday, May 23, in the Hotel Nassauer Hof in Wiesbaden, are Rizzato Spa Consulting from Tettnang and hospitalityInside.com from Augsburg (Germany). Dagmar Rizzato is one of the leading internationally active spa specialists, based in Germany, with very renowned references (among others, "Das Spa" in the Wald- und Schlosshotel Friedrichsruhe; "Anazoe Spa" in the Resort Costa Navarino, Greece; Budersand Spa on the island of Sylt). Maria Puetz-Willems, editor-in-chief of hospitalityInside.com, manages the international information platform for the management of the hotel industry and related industries. In 2002, she published the standard book "Wellness + Wirtschaft ­ professionell und profitabel" ("Spas + Economy ­ professional and profitable") and continues to follow closely the development of spas. The workshop "Investments in Spas" takes place on Monday, May 23, 2011, at the Hotel Nassauer Hof Wiesbaden. The one-day

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March 2011 hospitalityINSIDE Special ITB 201 1 GfK Now ANALYSING HoTEL RESERVATIoNS Demand for better resort hotels on the rise Nuremberg (March 9, 2011). GfK Travel Insights, the tourism distribution panel of the Gesellschaft fuer Konsumforschung (GfK, a leading and reputable research company) in Nuremberg recently started analysing hotel reservations. It analyses and evaluates up to 700,000 reservations involving hotel stays in detail per month. This creates transparency with respect to market development, demand, market shares and market potential. GfK will present further details at ITB 2011. erman travel agencies recorded more than five million reservations ­ including hotel stays ­ generating 8.5 billion euros of turnover in the tourist year. Looking at the current state of reservations at the end of January 2011, hotel turnover resulting from all-inclusive travels and individual reservations recorded 14% growth. 3.5 to 4-star hotels, which experience the greatest demand from German vacationers, recorded an increase of 13% (44% market share). Another 25% of hotel turnover was generated by upper-class hotels (4.5 to 5 stars), while 3-star resort hotels and lower experience far less demand. The luxury sector of 5.5 stars or more recorded particularly high growth (+23%), whereas it only has a 1.7% market share. Despite the fact that hotel categories have different quality levels depending on the country, most holiday destinations in the Mediterranean are dominated by all-inclusive packages involving middleclass hotels (3.5 to 4 stars): in Spain, Tunisia, Greece, and Bulgaria these hotels have a market share of more than 50%. In Italy and Croatia, they also lead the market, but 3-star hotels have a higher share here than elsewhere. However, when it comes to vacations in Egypt and Turkey, there is particular demand for travel packages including 4.5 to 5-star hotels. period in January. More than 6,000 individual hotels are included in the databases with their hotel category, location and chain affiliation if applicable. GfK at ITB 2011: Hall 25, booth 114. further news: GfK at "ITB Kongress": Friday, March 11, at the "ITB Marketing and Distribution Day" Hall 7.1b, Auditorium London, 2.15 pm-2.45 pm. // Anzeige 90 x 128 mm_Layout 1 14.02.11 12:32 Seite 1 Advertisement Do you offer Serviced Apartments? Moderate increase in rate, but major differences The current rate for a 14-day all-inclusive travel including flight and hotel is about 4% higher than last year. As regards travel packages including a reasonable hotel with up to 3 stars, rates have climbed the most (+6%) ­ especially in Egypt (+24%), which still has a rather low share of 3-star hotels, and in Croatia (+14%). Concerning upper-class hotel categories, rates for all-inclusive travels climbed by 2 to 3%, which was significantly more moderate. Exceptions were travel packages including a 4.5 to 5-star hotel on the Spanish mainland, which cost 15% more than the previous year. In Croatia, the weak 4.5 to 5-star hotel sector is struggling for market shares with rate discounts (-15%). Method/data basis hotel analyses: Travel reservations of a representative spot check taken from about 1,200 travel agencies is the basis of the evaluation. About 80,000 data records are withdrawn fully automatically from the reservation systems each week. They are standardised, checked and fed in. For the tourist year of 2009/2010, the panel falls back on more than 5 million reservations including a hotel stay and 8.5 billion euros of turnover. This corresponds to roughly 700,000 reservations and 1.4 billion euros per month during the main reservation Perfect, we have the brand, the distribution, the sales and the customer... Living Hotels connects your property to the most popular booking channels enhancing your international sales! www.living-hotels.de Visit us at ITB 2011 I hall 9 I stand 208

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hospitalityINSIDE Special ITB 201 1 March 2011 PooR AND oLD PHoToGRAPHS AREN`T GooD MARKETING foR HoTELS Google Streetview leaves the industry cold wiesbaden (December 3, 2010). After oberstaufen in the Allgaeu/Bavarian Alps, the first German cities can now be seen on Google Maps with Streetview. The hospitality industry`s response has been a sober one though. Hotels regret the poor quality of the photos ­ marketing images certainly look different. The German Hotel Association (IHA) demands that politicians provide for a right to updates. n his internet blog, Markus Luthe, Managing Director of the German Hotel Association (www.hotelverband.de) describes the pros and cons of Streetview for the hotel industry. Hoteliers whose hotels are pixellated on Streetview had a considerable and irrevocable marketing disadvantage in the world of online distribution, Luthe asserts. On 20 September, he participated in the discussion "Digitalisation of City and Country ­ Chances and Limits of Public and Private Geodata-Services" with German Federal Ministers Thomas de Maizière (Minister for Interior), Sabina Leutheuser-Schnarrenberger (Justice) and Ilse Aigner (Consumer Protection) as well as State Ministers for Interior, Data Protection Officers, University Lecturers, Telecommunications and IT Companies and certain selected economic associations. He was the only industry representative at the event who, against the mainstream, demanded a right of photo updates, regulations for protection with respect to pixellation requests, and a power of veto with respect to removal of photos and a clear priority for commercial interests such as those from the hospitality and catering industry. Luthe also argued that Google not be forced to delete source data due to irreversibility. Unfortunately in vain. A small survey of German hotels sounds the all-clear though. Hoteliers` opinions of Google Streetview are basically positive, even if the outdated nature of some images does irritate somewhat. Natalie Linner from Sales and Marketing of Geisel Private Hotels, Munich, which own the Koenigshof says: "Our opinion of Google Streetview is basically positive, although we aren`t particularly pleased about the image of the building site ­ now completed ­ next to our hotel. We see the problem with Google Streetview in the fact that the images aren`t fully up-to-date. The clear advantage for us is the representation of our location in the city centre." that that moment-snaps by Google now found on Streetview will presumably remain on the internet for many years to come. "The problem would be the same if advertising literature showed the same snapshot over several years." A mirror to the hotels Marco Nussbaum from Bremen (also see page 27) whose budget hotel Prizeotel is not yet scanned by Streetview admits: "My heart is divided when it comes to Google Streetview. From an entrepreneur`s perspective, I think Google Streetview is an excellent idea. Pixellating prizeotel? No! Of course, we will prepare the hotel for the photo shoot. We`ll think of something there. You see from the Oberstaufen how much attention is attracted with this subject. From a marketing perspective, Google Streetview provides great opportunities and infinite possibilities. Incorporating these images within a website or a virtual hotel prospectus is one obvious example. If the pictures are updated often, the building could be dressed in accordance with the season. Google Streetview is comparable to online evaluation portals: It holds a mirror to the hotels. You see if the hotel entrance looks uncared for, when the facade is pealing or when the surrounding area is unappealing. The pictures on Google Streetview will promote quality awareness among hoteliers and not least among guests."// "Pixellation does not accord with the times" Andreas Kroekel, Chairman of Lindner Hotels, has a differentiated opinion of Google Streetview. "Of course, the images are markedly different from those which we would upload on to the internet ourselves for marketing purposes. More specifically, this is seen in the following: Our hotels are sometimes obscured by trees. Often, images can`t be seen directly, but only from distant access streets, sometimes still including a site fence. In other cases, quite a different building stands where our hotel is now located," he explains. He excludes measures such as pixellation nonetheless: "Pixellation doesn`t accord with the times. Google Streetview is a new service from a very powerful internet provider which hasn`t placed the images online for its own amusement, but in the pursuit of a concrete monetary objective in the medium-term. You can`t do anything about that, but you should make the best of it. Since we link our arrival routes to Google Maps, our guests can quickly find the hotel on Streetview," he says soberly. Kroekel regrets on the web: Some poor and outdated photos hospitalityInside.com looked at Berlin and Munich and noted: In some streets it`s impossible to obtain a proper image of a certain hotel. Some hotels, such as the luxury Grand hotel Bayerischer Hof in Munich, on the other hand, can be seen with superb quality. Another problem is illustrated in the case of Munich`s Koenigshof which is pictured alongside a large building site which is meanwhile no longer there.

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March 2011 hospitalityINSIDE Special ITB 201 1 RITz-CARLToN Co-foUNDER HERVé HUMLER IS Now PRESIDENT ­ AN UPDATE In the Marriott pond Chevy Chase (october 29, 2010). Even after many years spent in the USA, Hervé Humler`s has still not lost his distinctive and very charming french accent. He came to the young Ritz-Carlton company in 1983 as "number 4" under the direction of Horst Schultze. In August 2010, Humler finally attained his dream and since then has held the position of President and Chief operations officer of the Ritz-Carlton Hotel Company. He succeeds Simon Cooper here, who left Ritz-Carlton to take on a position with Marriott International. Cooper is now responsible for Marriott`s expansion in the Asia-Pacific region. His recent statements on the status quo at Ritz-Carlton clearly show his close connection to the parent company. hat remains of those first days at Ritz-Carlton? Hervé Humler can answer that question. After all, he`s been there from the very start and has helped establish the luxury hotel group. "The basis of Ritz-Carlton hasn`t changed since then," he says. "Our service culture remains the same, even if we have changed certain things here and there in response to the needs of the global traveller. Our motto "We are Ladies and Gentlemen serving Ladies and Gentlemen" is as relevant as ever and is a core strand of our company DNA." Ritz-Carlton was once independent. Then, in 1995, the bed-giant Marriott International acquired a 49% interest in the luxury hotel company before going on to purchase the remaining shares in 1998. The Ritz-Carlton was once the untouchable top brand in the group. Then, in 2001, Advertisement ITB BERLIN CONVENTION 2011 World`s Biggest Travel Convention Unique Industry Know-how Networking with Travel Industry Experts 9­ 11 March 2011, Hall 7 TOP KNOWLEDGE FOR FREE! itb-convention.com Official Partner Country HospitalityInside_185x128_eng.indd 1 09.02.2011 11:51:29

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hospitalityINSIDE Special ITB 201 1 The first Reserve by Ritz-Carlton: The welcome pavillon at Phula Bay in Krabi, Thailand. March 2011 Watching booming Asia: Having breakfast in Shanghai`s second Ritz-Carlton Hotel ­ in Pudong ­ opens new horizons. Bulgari Hotels was introduced and RitzCarlton was relegated to a lower rung on the brand ladder. This move was an internal damper for the Ritz-Carlton. Founder and long-term CEO Horst Schulze was then succeeded by the "Marriott man" Simon Cooper as President in 2001. The move further illustrated Marriott`s influence. Yet Cooper managed to maintain Ritz-Carlton`s distinctive profile over a nine year period ­ until the recent financial and economic crisis forced the ailing bed-giant, Marriott, just like many others, to make even greater savings, implement further standardisations and curb independence. Silent changes In autumn 2009, Marriott, Ritz-Carlton`s parent company, announced the new streamlined structures and Cooper`s part in the new arrangement. Cooper lost his COO title and since then has reported as President to the new Marriott President and COO, Arne Sorensen. The casual announcement of the Cooper/Humler switch at the very top of Ritz-Carlton`s manage- ment came in the middle of the 2010 summer vacation period ­ in August. Simon Cooper still reports to Arne Sorensen, though Hervé Humler now sends his reports "only" to Robert J. Mccarthy, Group President of Marriott International since the end of 2009. This is a peculiarity of the new company structure, Hervé Humler confirms to hospitalityInside.com. The decision to appoint Humler as President and COO returns someone to senior management who is deeply rooted in the Ritz-Carlton corporate culture and who continues to see this as the "roadmap to success". Humler is still, at heart, a host. Whenever he visits a hotel, he greets all staff personally. He enjoys dining together with them and taking part in their discussions and learning about their daily challenges. He even seeks direct contact to staff on hotel openings. He conducts the "visionary orientation sessions" personally on every opening, a scheme which includes everybody form the General Director to the laundry staff. Humler prefers a "hands on" method of management. for the masses: 73 Ritz-Carlton hotels are on board and join 3,300 Marriott Hotels worldwide. The launch here came three months before planned. The connection to Marriott is becoming increasingly close. Journalists have recently noticed that every press release now contains a new paragraph. This states: "The Ritz-Carlton Hotel Company, L.L.C. is a wholly owned subsidiary of Marriott International, Inc.....". Hervé Humler remains positive: The powerful parent company, Marriott, opens up massive business channels and thus reaches customers and travel agents to an extent that Ritz-Carlton would never achieve alone. But Humler is just as clear when it comes to the downsides: "If there is a disadvantage, it`s that Marriott has many brands, also in the luxury segment. It therefore remains an important challenge for Ritz-Carlton to set itself apart in the top segment of Marriott`s quickly expanding portfolio." Clear recovery in 2010 From an economic perspective, Ritz-Carlton can breathe a sigh of relief: "For us, 2009 was, as it was for many others, the most difficult year we`ve ever faced," the President states. But the recovery set in at the start of this year and has been quicker than expected, especially in Asia. "The effects of the crisis came later to the Middle East than they did in the USA or Asia so that it didn`t hit us so hard," Humler continues. "The rest of the year is already looking very positive!" Business travel, meetings and conventions are also recovering in the USA. Nevertheless, he still expects that it will take another 12 months before results return to a level comparable with 2007. "Our books already show 150,000 more room nights than in 2009 and 32,000 more room nights in the new group business. All in all, that`s a plus of 18 percent." // Always a close connection to Marriott So how does a man who was there at Ritz-Carlton`s very inception feel to be working under the bed-giant, Marriott? "This has many advantages," Humler begins. "We have a financially solid parent which has better access to real estate development worldwide and allows us to grow globally." In addition, Ritz-Carlton also benefits from an incredible technology and knowhow platform. With this, he also means the recent decision to join the parent company`s bonus programme: Since September of this year, the once independent luxury hotel brand has participated in the bonus programme Hervé Humler.

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March 2011 hospitalityINSIDE Special ITB 201 1 CRITICS: SoCIAL MEDIA MUST BE VIEwED AND USED IN DIffERENTIATED wAYS Massively overestimated? Augsburg (June 25, 2010). "facebook fan pages etc. are massively overestimated," Matthias Ehrlich says, Chairman of United Internet Media AG. "The marketing effect is slight," Michael Toedt, Managing Director of Toedt, Dr Selk & Coll, sums it up in a statement. The media hype arouses curiosity in the hotel industry, yet in practice, many are still very cautious, as some voices are now confirming. n comparison to large companies, we are still very much in our infancy," Frank Marrenbach says, Managing Director of the Brenner`s Park-Hotel & Spa in Baden-Baden. "We are certainly just as critical and careful as we are enthusiastic," Elisabeth Scheiring says, Public Relations Manager of Vienna International, describing the mood of the group. There`s a general understanding and acceptance of the fact that hotels must now take up the issue of social media. "It`s to be said that Web 2.0 and social media, thanks to the democratic principle on which they`re built, have an enormous influence on the structure of classic (corporate) communication," Britta NeuperSchrenk reports, Communications Director for the InterContinental Vienna. At the same time, she warns: "The dynamic nature and rapidity of social media do tend to promote quick-shot responses and blind activism." A distanced and critical approach is the right way forward, Michael Toedt, a Munich-based consultant specialised in marketing-technology, states. "Before the decision is made in favour of the social web, managers should be aware of the opportunities for exchange these networks provide to cu- stomers and should look at how customers use these networks," Toedt goes on. For Toedt, the interaction with social media is simply a matter of whether the user adds his profile to a website or joins a certain group. Yet this has the following limitation: depending on the user`s attitude or network, group membership is either not divulged at all or is only fleetingly visible to other users. "The marketing effect is therefore slight," Toedt concludes, "unless the group is not intensively looked after and combined with other social media channels such as a company blog or Twitter." Otherwise, the group quickly disappears into oblivion. engage a Director for eCommerce. The InterContinental Vienna is already present on Facebook and Twitter and regularly observes other portals, though only occasionally interacts with users. "We are certainly not using available potential in full," the Viennese managers know. At Vienna International (VI), two members of staff already look after social media, maintain networks and invite guests and corporate partners to take part in dialogue. To this end, the group publishes news from individual hotels and raffles off prizes. The first steps were taken a year ago with just one brand, the sporty Cube Hotels, whose guest group is considerably younger than is the case for the classic VI hotels. The social environment decides on communication "The best success in the field of social media can be achieved where more profligate or self-realising sections of the lower classes are served or where many students or pupils are greeted as customers," Michael Toedt says incisively. That is: communication must be controlled and particularly tailored to the individual target group. The social environment of the guest target group is decisive. In Toedt`s experience, more conservative and established people are reticent when it comes to the internet. Their recommendations are also made online, but in a more direct, personal way (e.g. as eMail). Where contents are communicated publicly, they fear (quite rightly) that they would lose control of these contents. Toedt: "As well as age, higher levels of education and the desire to maintain certain values play a crucial role!" For this target group, social media are a transport channel or ease the inclusion into internal, exclusive information sources ­ such as, for example, Lufthansa`s "MySkyStatus". // first cautious steps for hotels "We have launched a fan page for Club 21 on Facebook and today communicate our events exclusively via this channel. That is, print material or similar mailings are no longer used for marketing purposes," Frank Marrenbach says. The club, which opened opposite Brenner`s Park-Hotel in 2009, is only used for individual events. The hotel itself still doesn`t use the social media channels. Nevertheless, the Oetker Collection, to which Brenner`s belongs, will next month

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hospitalityINSIDE Special ITB 201 1 March 2011 Qasr Al Sarab Desert Resort & Spa by Anantara: 5 stars in the desert. ABU DHABI'S HoTEL foRT QASR AL SARAB HAS To CoPE wITH MANY CHALLENGES Call of the desert Abu Dhabi (August 6, 2010). Call of the desert ­ with red sand this time. The Liwa desert near Abu Dhabi contains minerals, iron and salt. Therefore, the dunes have a red colour and desert walks are very romantic at sunrise. Two generations ago, Bedouins were living here, today it is tourists. This is because there is a luxury hotel at the edge of the desert: the Qasr Al Sarab ­ the "palace of miracles". In order to get there, you have to use powerful jeeps ­ no trace of classical camel romanticism. he distance from the city is one of the greatest challenges for Anantara Hotels, the Thai operator of Abu Dhabi's first desert resort ­ besides the fact that the guests rarely stay for two nights. The hotel, built as a majestic fort, rises above the sand; its 206 rooms are sprawled over a spacious two kilometres. This is the next logistical challenge. About the miracles of a palace of wonders in the fairyland of Abu Dhabi. Dubai already has two desert resorts; therefore, Abu Dhabi needs at least one. The Qasr Al Sarab does not touch the class of the exclusive and ecological Al Maha Desert Resort & Spa of Emirates Resorts; however, it is able to compete with Jumeirah's desert resort Bab Al Shams in terms of size and ambience. Didier Tourneboeuf, the French General Manager of Qasr Al Sarab (http://qasralsarab.anantara.com) does not deceive himself, however: "His" desert resort has not yet been on the market for one year, and much still has to be done in the marketing area. Dubai's desert resorts have one clear advantage: from the city, they can be reached within a comfortable one-hour drive. The second hour, which is necessary for reaching the Qasr Al Sarab, is a decisive point in the decision making of the guests ­ especially for GCC guests, who particularly appreciate short routes and convenience above all. And the GCC guests are supposed to guarantee the Qasr Al Sarab three quarters of the occupancy rate in the first few years. The next Ramadan is supposed to occupy the hotel's entire capacity. This alone is a major challenge as most GCC guests only stay for one night. Starting in the next winter season, the large proportion of "locals" will then be reduced step by step and replaced by British, German, French, Swiss and Italian guests who stay longer. A cool bath in the lonely desert The decision about the location was made in the helicopter as members of Abu Dhabi`s Sheikh family Al Nahyan flew over the land of their ancestors. The Bedouins moved through this part of the desert wi- thout difficulties, which has got the byname of "Empty Quarter": This terrain is still one of the most barren and sparsely inhabited in the world. However: here, the desert provides some spots with water, which immediately results in green oases. Where the sandy wasteland is not green enough on the way from Abu Dhabi, the Sheikh provides some extra help: more than 200 km of water pipes and power lines have been installed in the Liwa desert and the guests are able to lie in cooled pools and use the internet in their rooms. The Qasr Al Sarab is Abu Dhabi's first symbol of tourist power. Abu Dhabi is the largest and richest of the seven United Arab Emirates; it possesses 80% of the region's oil. The guests are welcomed by thick walls, towers, castellations and bays. The angular silhouette of the fort casts jagged shadows over the desert sand. The main house, the former private house of the Sheikh family, contains reception, library, restaurants and conference rooms. Despite its rough appearance, the house emits great warmth and

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March 2011 hospitalityINSIDE Special ITB 201 1 cosiness; the excellent cuisine and a spectacular buffet make the guests feel as if they were being spoiled "at home". The 206 rooms have been added on both sides so that a long and narrow building has been created. However, this is not very obvious for the guests: the rooms are assembled around burbling inner courtyards and the guests are able to stroll through shadowy arcades. When visiting the spa, which is located at one of the farthest points of the main complex, it is recommendable to take the electric buggy because of the desert heat if the room is too far away. "Royal Villa" with 52 rooms can be rented The end of the nearly two-kilometre-long resort, which winds its way through the sand, is the "Royal Villa" ­ located in appropriate distance. The private domicile of the Sheikh family with 52 rooms, some of which are "standard rooms" and some villas with several bedrooms, seems like a mini resort within the resort. Businesses are able to rent this mega villa, if they book at least five villas. However, meetings can only be arranged for up to 20 people ­ there is not more space at the over-dimensional and illuminated alabaster table. These guests experience an Oriental dream in complete solitude with their own chefs and butlers, surrounded by hundreds of valuable works of art and topped by the view of the majestic fort on the opposite side. At five o'clock in the morning, the humming of some cars can be heard ­ they bring the first guests to the "desert walk" at sunrise. Jana from Bratislava makes the tourists familiar with the vastness of the desert and the mysteries of wandering dunes. The Liwa desert is famous for its (wandering) dunes; the highest one is supposed to reach nearly 300 metres. At sunset, some tourists are on the move again ­ on the backs of good na- tured dromedaries in order to watch the mysterious display of lights and colours. As in all desert resorts, people are fascinated by the mystery of the desert and the Qasr Al Sarab plays this part masterfully and personally. Of course, there will be more nature activities in future as they want to recreate the original natural habitat for gazelles and camels, for desert grass and desert animals ­ just like at the Al Maha in Dubai. Architecture requires 20% more staff members However, this has to grow, just like the members of staff have to come together and connect. At the moment, there are more than 30 nationalities; many staff members are from Asia (mainly the Philippines and India), from Thailand, Burma, Cambodia, Nepal and China, but also from Uzbekistan, which is helpful for communication with Russian-speaking guests. General Manager Didier Tourneboeuf has to employ more than 500 staff members for 206 rooms. "The architecture of this house forces us to employ up to 20% more staff," he describes the great challenge behind the scenes. The lonely location of the resort requires the permanent presence of a nurse and a doctor including a helicopter, which is permanently ready for take-off and which is equipped for medical emergencies. Even the helicopter needs 20 minutes to the nearest hospital. cluding new and additional requirements from the government of Abu Dhabi. The Qasr Al Sarab has its own "hygiene team", managed by a German, which controls the food chain from production to transport and processing in the hotel. Moreover, the building regulations have become stricter; here, the government has collected the "best practice" examples of other countries. At the same time, the official environment protection requirements are increasing. The Qasr Al Sarab has not been built following the same ecological requirements as the Al Maha in Dubai, but the walls of the fort are constructed from a special mixture of compressed sand and less concrete; part of the water in the hotel is being recycled and some pavilion roofs are covered with natural leaves. Since February this year, Abu Dhabi Tourism has enacted a check for health/hygiene, security and environment in all hotels. By the end of this year, every hotel has to provide its own plan of action. The superintendents are sent by the German TUEV Nord. The spa: franchising within the hotel Even in the spa, qualifications are necessary: after three to six months of training, the employees obtain an official certificate from the Ministry of Health of Abu Dhabi. However, the main burden is carried by the MSpa International, the independent spa business of the Minor Group, the parent company of Anantara. Insiders know MSpa as an operator in various other hotel groups, among others at Kempinski, Radisson, Four Seasons and JW Marriott. From 35 MSpas, 17 are hotel spas today (www.mspa-international.com). MSpa bases it well-being programme on three pillars: on regional-local and original, on Thai treatments, and cosmetic treatments with Elemis (Minor possesses distribution rights of this brand in Thailand). This mixture has been well accepted ­ the Qasr Al Sarab is even planning to build a separate spa for women. With the Qasr Al Sarab, Abu Dhabi was able to create its first excursion attraction. The consequences of the crisis are slowing down the start, but in combination with the next island and nature projects around Abu Dhabi, an attractive (short trip) holiday resort will be created in the long run. // Increasing regulations The 20 people in-house fire brigade is comprised of the staff members; there is a training course every two months. A trainer team comes every three months to practise the "fire drill". Behind the scenes, the GM has to cope with his own challenges ­ in-

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hospitalityINSIDE Special ITB 201 1 March 2011 How THE IDEA of VALUE APPRECIATIoN HAS STIRRED UP A SLEEPY ALPINE VALLEY The new face of Andermatt Andermatt (october 22, 2010). The diggers are hard at work in the Ursen Valley. In the end, 1.5 million sq.m of fallow land will have been completely redeveloped. At the moment, only the mounds of earth indicate what the developer has in mind: In Andermatt in Switzerland, the outline of "Andermatt Swiss Alps" is slowly taking shape, the mega destination resort which the Egyptian Samih Sawiris will build from nothing by 2016. The plan is to attract tourists to this less popular part of Switzerland, located between Grisons and Valais with a whole new infrastructure. 850 hotel rooms, 490 apartments and at least 20 villas/holiday homes, a massive sport and leisure centre, congress hall, concert, golf and ski facilities are planned. he first million CHF villas and the first two buildings with condos have already been sold. And just a few weeks ago, Sawiris` own Orascom Development Holding AG began to advertise the holiday properties for sale in Great Britain, Germany, Austria and Italy. After all, the whole undertaking for the Egyptian developer is not a simple tourism project, but a hard, longterm property deal intended to bring huge capital gains. Sawiris` business model is quite unique in Europe, both in terms of geographical dimensions as well as detail of planning. The former military base Andermatt, located between St Gotthard, Oberalp and Furka Pass was for decades a place solely frequented by the friends and family of the soldiers stationed there. Military generated 110,000 to 130,000 room nights per year, a top occupancy for the local hoteliers offering 730 beds in the village. It didn`t seem necessary for any hotelier to invest in his 2 to 3-star business. And Andermatt lacked any other options. In October 2010 then, visitors still sleep in establishments with flowery wallpaper, brown 1980s tiles and mirrored cabinets in the bathroom. A hairdryer must be requested at the reception and the wireless internet connection doesn`t work. And all this at a proud price of 240 CHF (180 EUR) per double room. And for lack of any alternative, this is also where billionaire Samih Sawiris spends his nights, But not for long. Sawiris is now building his own alternative. And Andermatt is already beginning to change quite notably. The "Sawiris effect" is making itself felt: The Grand Hotel Danioth in the town centre was demolished in 2008 and a quickly re- sponding Swiss investor rapidly built three "chalet style" buildings. The rumour is that he sold the properties at a price of 7,000 to 8,000 CHF (5,000 to 6,000 EUR) per square metre. Now the "chalets" fill the void ­ large, tasteless, but sold. Of the 1,200 soldiers, only 120 remain today after the military base was closed; their former training ground is now being ploughed by Sawiris` diggers. The Egyptian investor, whose personal wealth is estimated at 1.5 billion USD (almost 1.1 billion EUR), intends to repeat the success story of El Gouna in Egypt in this sleepy Swiss valley. Within the space of 20 years, Sawiris developed an entire town with 15,000 inhabitants on the Red Sea, with its own schools, hospital and tourist facilities, including golf course, marina, 100 restaurants/ bars and 15 hotels with 2,760 rooms. "Our apartments on the lagoon are today more expensive than Four Seasons` villas," he reports (all Orascom activities can be found at www.orascomdh.com). The basis is cheap land According to the marketing jargon, Orascom Development wants to develop mega projects which are sustainable, allow longterm commitment and link local know-how with international experience. In reality, the beginning is much more banal: Samih Sawiris buys cheap land, and only cheap land. In the sandy wasteland of El Gouna, he managed to buy 40 million sq.m of land at a cost of only 1 USD per square metre. In Switzerland, which is much smaller and very much more expensive, he managed to secure 1.5 million square metres and paid a "low two-digit figure per square metre". This includes the cost of restoring the lead-contaminated military range, Sawiris adds. He consciously avoids top destinations such as St. Moritz, Gstaad, Davos or Zermatt ­ but he does intend to compete against them later. Sawiris` business success stands and falls with the land and the price he pays: "The core principal is the value appreciation of the land purchased," he says candidly. He then doesn`t just construct one or two hotels and a water world, but creates a massive infrastructure; an undertaking which others are not willing to venture. Finance for the mega resort is thus initially based on the sale of expensive properties built on cheap land. "When the resort goes into operation, it generally does so without liabilities," the business man explains. He doesn`t like selling land or buildings alone. "I always sell land with buildings and quality." Quality is the added value ­ at least with respect to a long-term commitment. With this argument, Sawiris hopes to take the wind out of the sales of all those who believe that he intends to sell the mega-resort on, either in part or completely, to rich Arabs or Russians. Sawiris also doesn`t sell everything at once: Limitation creates demand and allows price increases. The model and the reality The room-size model available for viewing in the "Andermatt Swiss Alps" information centre at Andermatt Railway Station represents the maximum feasible. Whether in six years time the destination resort will look exactly how presented in the model or will be "less busy", depends crucially on property sales. And so the local project com-

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March 2011 hospitalityINSIDE Special ITB 201 1 pany Andermatt Swiss Alps AG, a hundred percent subsidiary of Orascom Development Holding, has now gone into overdrive. In the initial push, more have been sold on the Swiss market than expected; now Sawiris` team turns its attention to markets in Great Britain, Germany, Austria and Italy. The first two apartment houses "Hirsch" and "Steinadler" in the newly constructed village are 50% sold out ­ to the Swiss, who intend to move their first residence to Andermatt. They paid only 8,500 to 12,000 CHF (6.300 to 9,000 EUR) per square metre. In making these sales, Sawiris and local authorities have ensured that Andermatt doesn`t turn out to be a mountain of "cold beds". In total, the Andermatt authorities have obliged Sawiris to reserve ten percent of all new residential units for Swiss nationals with first residence in Andermatt. Lex Koller repealed for Andermatt In addition, limitations imposed by the Swiss "Lex Koller" rules were repealed for Andermatt in 2008. "Lex Koller" is the set of rules which requir foreign nationals first to obtain a permit before purchasing property in Switzerland. With repeal of these rules, foreigners will have greater flexibility in buying property in Andermatt. Dr Franz Egle, who sits on the administrative board of Andermatt Swiss Alps AG and lobbies hard to promote Sawiris` project, puts the furore which has surrounded the special rules in Andermatt in context: "Samih Sawiris required himself as a foreigner a permit in order to be able to launch the project at all." But he also knows: There are still many Swiss nationals who view everything with scepticism. Because the first two houses have sold well, the next two have already been cleared for sale. Those now looking to purchase can expect to pay between 15,500 and 16,000 CHF (11,500 and 12,000 EUR). In total, Orascom has sold apartments to a value of over 60 million CHF (45 million EUR), Sales Director André Laubach reports. The company is confident to achieve 100 million CHF (75 million EUR) by the end of the year. In terms of apartment purchases, no single nationality is to gain the upper hand. And Samih Sawiris has taken precautions here too. But there`s another second reason why not everything is to be sold at once: "We prefer to put up the price each year," Sawiris says. Every house must pay for itself. Apartment sales, which bring in the volume, have priority above the sale of villas for the moment, though Orascom is very happy to have Giorgio Behr`s endorsement. The wealthy Swiss investor has bought the most expen- sive villa and this sends a signal to others. Villas start at 10 million CHF (7.2 million EUR). Hotel Chedi also launches apartment sales Parallel to the sale of holiday homes, the sales team is also busy selling apartments in the the 5-star Hotel Chedi. It will be the first hotel to open and will stand apart from the holiday village ­ namely directly opposite the railway station. The foundations have already been dug (opening for winter season 2013/2014). As well as the 50 rooms, the complex will include 119 apartments from 95 sq.m. and a penthouse over 555 sq.m. 14 units have already been sold (prices from 22,000 CHF per sq.m. to 13 million CHF for the penthouse). The luxury hotel operated under the brand of the American-Asian operator GHM (headquartered in Singapore) was chosen "because every Swiss insider knows the Chedi in Muscat/Oman, but almost nobody else," Samih Sawiris explains of his choice. All in all, six hotels in the 4 to 5-star categories with 844 rooms and condos The Radisson Blu Andermatt shall focus on MICE. The Egyptian investor Samih Sawiris in front of the Andermatt model.

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hospitalityINSIDE Special ITB 201 1 March 2011 will be built. Hotels no. 2 and 3 are also fixed: Radisson Blu will move into the village (opening 2013), furthermore Sawiris would llike to see a German hotel operator in Andermatt. The mega resort is also to include a boutique hotel and a golf hotel. As well as the Chedi, the other hotels will also offer apartments for sale; details are still to be agreed. The broad spectrum of hotels is intended to ensure all target groups are covered. Chedi serves the more demanding international luxury individualists, the Radisson will serve the luxury conference and meeting A 5-star brand not yet known everywhere around the globe but sophisticating enough to attract guests: The Chedi. market. "We want a good mix, and not a ghetto of individual nations," Sawiris says, drawing parallels himself and the retains the majority stake. In ped; infrastructure is provided alongside with the apartment sales plans. A third of the Chedi, for instance, he retains a 51% living space for both locals and tourists. guests are to come from Switzerland, the stake with the remaining 49% held by the Profit and value appreciation is achieved remaining two-thirds from Europe`s most English company Waterford Investments through the step by step sale of real estate important source markets, (Germany, AusAG; in general though ­ as Dr Franz Egle whose prices then rise steadily. tria and the UK), supplemented by Ameriexplains ­ Sawiris divests at the very most To this end, he`s also prepared to comprocans, Russians and others. a 33% stake to foreign partners. mise: Today, he`s already removed an entiSawiris loves hotels, particularly from the re floor in the village houses in order to crefor good reason: real estate perspective: In crises like the reate more space and increase quality. He Hotels under ownership and cent one ­ a commercial real estate proper- hopes to attract guests for one or more only management contracts ty crisis ­ hotels are always the most reliaweek(s), no day guests, who don`t leave ble properties. "Hotels have a different life any money in the village anyway. He will Samih Sawiris concludes only manageand risk cycle," he says "they always gene- also keep the masses of ski tourists away in ment contracts with the hotels; these offer rate cash." He claims not to have yet consi- winter through (over) expensive day tickets. more transparency and greater influence Those which come nonetheless will be comthan is the case with lease, he says. Every dered the specific level of returns in the Andermatt resort. For him, the real estate facfortably provided for: Those travelling by hotel will be operated over the full year. tor counts. car come off the motorway and drive diHotels are to benefit Andermatt too and "With time, you get the hotels for free anyrectly into a tunnel leading underground to not only their headquarters, the Egyptian way," he calculates cooly. His company a garage housing 1,900 parking spaces business man asserts. "If these hotels are beneath the holiday village. Those travelempty and Andermatt becomes lifeless out- brings in 50% equity to finance the hotel; 15% of that is to be allocated to land. ling by rail should be able to arrive already side the holiday season, then I`ve failed," "With this, our land covers 15% of costs," in their ski-boots ­ and take a moving he adds. he says. Then Orascon also earns from the walkway directly from Andermatt Railway Sawiris loves keeping control and for this construction (10-15%), and finally the comStation ­ later to be refurbished ­ to the ski reason, he generally builds the properties pany also looks for investors. But he lift. After all, the mega-resort Andermatt also adds self-critically: "This calcula- Swiss Alps also aims to be environmentally tion doesn`t always work out! In a friendly. crisis, we have to invest between 70 Sawiris is very certain to be able to secure and 80% ourselves." the future of Andermatt. Local Mayor Karl Poletti is convinced by Sawiris. For him and Quality control other Andermatt inhabitants, there`s no douover time and price bt: "Sawiris is our only chance!" // In short the Orascom philosophy is: firstly to seek a large contiguous plot of land at a favourable price. The plot must be manageable and easy The "Hirsch Haus" ­ one of the first two houses with to reach. The land is then develoapartments for sale.

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March 2011 hospitalityINSIDE Special ITB 201 1 THE IfEN HoTEL oPENS AS NEw TRAVEL CHARME fLAGSHIP HoTEL IN KLEINwALSERTAL With a steady hand Hirschegg/Kleinwalsertal (November 5, 2010). Planning took longer and in the end costs were higher. Discussions were just as passionate with respect to the beer tap at the designer bar as they were about the delicate natural wood floor... cenes from the day-to-day workings of a hotel new build project. The newly opened Ifen Hotel in Kleinwalsertal, an Austrian enclave only accessible from Germany, experienced the following: Three months after its unofficial opening, it closed again for a further two weeks ­ in order to fix hooks, optimise fireplace joints and remove the first stains. It`s details such as these which make Travel Charme Hotels an exceptionally successful resort hotel group. The group has felt nothing of the financial and economic crisis. Its resorts are like exquisitely designed yet cosy living rooms and its guests like friends. It`s hoped that this clientele will now help to reawaken the sleepy Kleinwalsertal. Expectations of the destination are high, the location is not quite so easy though. But this too is typical Travel Charme. On a political map, Kleinwalsertal is part of Austria, yet it can only be reached from Germany ­ from Bavaria. Oberstdorf and Sonthofen are the nearest more familiar names on the German side of the border. In the valley itself, Hirschegg and Rietzlern are popular destinations for holidaymakers. Yet the valley, settled around 1270 a.d. by families coming from Valais, has obviously bathed a little too long in the sun of success. The region has missed the opportunity to advertise itself as a holiday destination for guests living in conurbations around Munich, Augsburg and Stuttgart (just 2 to 3 hours drive away)... Locations with potential attract Travel Charme ­ and to secure these, the company is willing to undertake long and time-consuming negotiations. Travel Charme is also prepared to invest equity. The two partners have stumped up equal sums for Ifen Hotel. "It simply must fit," Guerra says ­ and with this he also means the wavelength on which the two partners operate. Quality is no coincidence Only under these conditions the resort hotel group can push through its ideas of quality and thus also higher rates. Where it doesn`t see its standards met, it also withdraws from management agreements ­ as happened in spring 2009 in the Hotel Is Arenas in Sardinia. Travel Charme doesn`t make it easy for itself in any decision ­ quite the opposite: Insiders know that a foundation of a German industrial family is behind the group, a "special fund" ­ as one member of the Foundation Board put it at the official opening. This also results in obligations for the very modest and quiet resort hotel group. Its managers see themselves as prudent business people with a long-term approach to investment and a healthy sense of quality and sustainability. For them, this attitude is "normal". Those who know the expansionobsessed hotel industry also know that this attitude has today become quite rare; that many new hotel openings are based on spiralling finance and that operators almost never commit equity. Guerra is on the one hand thankful that the financially solid parent company eases the inception of each new hotel, though from the third year, even Travel Charme hotels must post positive cash flows. Advertisement Bank as a tourism promoter Over the last ten years, Kleinwalsertal`s occupancy figures have averaged only 38 percent, as a report from Kleinwalsertal Tourism showed. At the same time, average length of stay has fallen and the number of overnight stays slumped. The result is that the once so popular valley with its beautiful walkways and ski-slopes has lost 1,600 beds over the space of a decade ­ an increasing number of family business have simply given up the effort. After almost 70 years, the family behind the hotel legend Ifen decided to step back from the business in 2005. The Ifen Hotel was built in 1936 on a rock ledge, its semicircular construction for decades a symbol of a hotel popular with the nobility and industrialists. In 2005, the dominant financier in the valley, Raiffaisen Holding, then failed to find a local family which was prepared to invest in a luxury hotel. Travel Charme Hotels came into play through previous contacts. Giuliano Guerra, today Delegate of the Administrative Board of the holding company Travel Charme Hotels & Resorts AG, based in Zurich, established the three IFA hotels in the valley as a young man. Accordingly, he was able to see the potential of the valley and so the 38 million EUR project with Raiffaisen Holding for 125 rooms came into existence. You don`t need to escape faraway to find yourself. www.lefayresorts.com "We calculate exactly," he says, "and we work hard." Travel Charme also intends to expand in coming years and will perhaps only commit equity selectively ­ though nothing of the quality of the properties or of the holiday experience is to change. The Travel Charme Ifen Hotel is therefore now closed for two weeks for improvements. "Small corrections" will be made and defects rectified. The majority of operators would carry out such

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hospitalityINSIDE Special ITB 201 1 March 2011 works whilst the hotel was open. Travel Charme sees things differently: "I can`t continually annoy my guests and staff," Guerra says. "The hotel must be absolutely picobello," the Italian manager insists. He is pro-active in securing quality, not in repairing image damage. For this reason, each Travel Charme Hotel is renovated at seven year intervals ­ with no exceptions. After three years, it must be "like new". Conscious decisions ­ detailed fine-tuning Ifen Director Peter Joeck Domig pulls out a pencil: All criticism is welcome, every detail important. Housekeeping painstakingly removed a red wine stain from the oiled larchwood floor the morning after the opening party. Though there`s no complaining. The delicate floor was consciously chosen because of its warmth and the cosiness it conveys; priority considerations for the lobby. The discussions The Travel Charme Ifen Hotel: The semicircular construction is a reconstruction of the original architecture. The room size starts at 35 square metres. improvements are still being made to decoration. Joints in the fireplace walls also need rectifying. After Austrian Architect, Prof Hermann Kaufmann, "brought the outside inside" with the inclusion of high windows in his design, Lorenzo Bellini has avoided using too much colour inside. "Guests bring in the colour," he describes. He has divided the large lobby into living niches, interspersed with low sofas and high-backed chairs, with bookshelves and fireplaces... The brushed wood which he has used "will become even more attractive as it matures" he says, just like the fine leather on the couch. "I want a product which matures over time and thus provides added value to the hotel." Even the living room atmosphere is planned for the long-term. Every set of drawers, every table and chair has been designed by Bellini ­ which gives them special effect in the rooms, each at least 35 sq.m. in size. Quality ensures satisfaction and healthy rates Travel Charme currently operates 13 hotels, and wherever Giuliano Guerra goes, he sees: "Quality is appreciated by guests! Guests behave differently in Relaxing in the lobby ­ in front of the fireplace. The big windows bring the outside inside. about the function of the bar also lasted well over an hour. Peter Hoeck Domig wanted staff to pull beer in front of guests ­ the Italian Architect and Interior Designer for Ifen, Lorenzo Bellini, on the other hand, attempted to push through the classic bar style in which drinks are prepared in the background. The Hotel Director remembers the meeting with a smile. In the end the issue was decided on a practical point: In the case of the classic bar, two members of staff would have had to be employed. Lorenzo Bellini also laughs. The Roman Architect, who has designed over 100 hotels, obviously enjoys working with Travel Charme; he will remain involved in further projects, as he knows that the remaining "small corrections" will be made in accordance with his idea of quality. Lighting in the hotel is still not perfect and a high-quality surroundings." Guests who feel comfortable consume more and are prepared to pay higher room rates. Rates in the Ifen Hotel begin at 109 EUR per person per double room (including breakfast); for 2010, Peter Hoeck Domig expects occupancy to stand at 49 percent. The Travel Charme Hotel Ifen thus aims for the top end of the Kleinwalsertal range. Travel Charme hotel management is proud of being able to push through its rates across the entire group. 2009 was "a good year", Guerra says, 2010 will be "a very good year", he says in his modest manner. Occupancy and ARR are high, he adds. And then he prefers to say no more. In his opinion, success comes not from words but from actions ­ for the benefit of the guest. Anyone sitting down in front of the fire in the lobby feels the difference. //

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March 2011 hospitalityINSIDE Special ITB 201 1 10 YEARS AfTER THE SPA BooM, THINGS BECoME CLEARER People are the winners Duesseldorf/Tettnang (December 17, 2010). Around the turn of the millennium, the German-speaking countries experienced a spa boom. A decade later, some regions are filled with spas and many of them are looking for a new profile. The most recent economic crisis hardly affected the good mood of the spa sector. A talk about the status quo with wellness-Hotels-Deutschland, Germany's only specialist conglomerate, with Susanne Kraus winkler, a spa expert from Austria, and with Dagmar Rizzato, Germany's leading spa consultant. The latter tackles the economic issues: even one decade after the boom, many hoteliers are still unable to calculate the factor spa. ustria is still considered Europe's leading spa country, but Germany has caught up swiftly, and Switzerland still has great spa potential. What does the spa landscape look like ten years after the boom? "Today, spa hotels can go in three different directions", explains Michael Altewischer, Managing Director of Wellness-Hotels-Deutschland (W-H-D) whose 50 members roughly generate 20 to 25% of their turnover via spa services (www.w-h-d.de). "Firstly", says Altewischer, "day spas have been developed in the big cities ­ for `spa to go'. Here, men and women take some time off either for several hours or for a few days. Secondly, each new business hotel comes with a fitness and/or spa area; sometimes their services even resemble day spas. Resorts and spas are inseparable. And thirdly, there are medical spa resorts for high-end customers putting health in the very fore instead of vacation." One quarter of the W-H-D member hotels now offer medical services ­ from trial runs to TCMs or Felke treatments lasting several weeks. Spa hotels exclusively dedicated to spa services are far from experiencing a medical hype. "In contrast to the massive media hype that made this trend a self-fulfilling prophecy, we do not perceive medical spa services ever becoming a major market. It is too closely tied to quality." ating body, spirit and soul in a too emphasised fashion. Today, well-being hotels are winning, as they offer professional recreation at a reasonable price-performance ratio. Altewischer, Managing Director of the conglomerate: "The crisis has hardly affected these facilities." However, hoteliers have noticed that guests no longer tend to book spa packages in advance but on a spontaneous basis on site. when hardware fails, software needs to score Instead, some other challenges are crystallizing as 2010 comes to an end ­ all over Germany ­ just as industry experts have been projecting for quite some time now: compared to their younger counterparts, spa facilities that opened early in the decade look pretty dated. Each new competitor intensifies this contrast in spaheavy regions. "We have been observing several different types of spa facilities which are being brought onto the market with increasing speed and growing differences", confirms Susanne Kraus Winkler, Senior Partner of the Kohl & Partner consultancy in Vienna and Managing Director of Loisium Hotelentwicklungs- und management-Gesellschaft, describing the latest development. After hotels reached the limit of marketing and revenue, a new era of product development had started. According to the seasoned spa expert this means that hotels need to optimize their (spa) concept precisely! "While hardware was in the focus in the 1990s, soft factors like service quality No contradiction: Quality and "medical to go" This brings Michael Altewischer to the key word of the spa decade nearing its end: quality! Dedicated spa groups like Arosa in Germany are giving up their Thalasso departments, as they lack expertise. Health resorts such as the Grand Resort in Bad Ragaz, Switzerland, reverted back from medical prevention to well-being, as demand was too low ... The differences between spa and medical spa are hard enough to define, but it is even harder to define medical quality and find an affordable price for it. However, Michael Altewischer can also imagine medical spas in connection with day spas ­ in a sort of "light" version, as an affordable "medical to go" similar to the "spa to go" concept mentioned above. Only then could he imagine that somebody would be willing to accept machines as part of their treatment, if only for a short hour. After all, cutting costs would only be possible by means of standardisation. Such developments have remained only a vague imagination not only for the spa expert, but also for many other industry experts. The spa as such has established itself as a holistic approach for tre- Advertisement How to calculate a spa investment? Workshop for investors, planners and banks Top experts will answer your questions! May 23, 2011 Nassauer Hof Wiesbaden INFO: eMail service@hospitalityInside.com phone +49 821 99 56 56

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hospitalityINSIDE Special ITB 201 1 March 2011 and guest relations are of greater importance today. The needs of the target groups, which have been meticulously researched, are the main drivers of success today!" And who knows the needs of spa guests best? The therapists! So it is all about motivating them in the middle of the contest between hardware and software. Michael Altewischer: "Motivated employees will stay. This has become an old truism. And hoteliers can even use it for marketing." Professional training is a great means of motivation. The hunger for further training was very big among spa employees: "Our prevention courses offered by W-H-D in cooperation with the Premedion institute for prevention have attracted twice as many participants as expected." for communication ­ having no chance of generating "easy" revenues. She considers trendy glass saunas that show off wrinkled and sweating bodies to anybody passing by just as destructive as health drinks that need to be paid extra (they should already be included!). Still over-dimensioned Staff: The "software" will decide about spa resorts` future. Here team members of Menschels Vitalresort, a member of the consortium Wellness Hotels Germany. only superiors can motivate Motivated and well-informed employees increase revenues. Dagmar Rizzato, owner of the renowned Rizzato Spa Consulting in Tettnang, has experienced this quite often in practice. According to her, the incentive does not result from individual professional training events, but from a "holistic" understanding of further training brought across by the hoteliers themselves. "They should really feel their way into the subject, even test spa treatments and, above all, abolish any hierarchical dictate!", says Rizzato appealing to superiors. Hardware and processes of dealing with guests should be analysed together in detail in order to be able to work based on what guests need ­ as mentioned above. Accordingly, many spa facilities lack areas Ten years after the big boom, Dagmar Rizzato is still discovering many over-dimensioned spa facilities (e.g. 7 saunas in a 70-room hotel) and she meets as many hoteliers as spa managers and suppliers that are not able to calculate economically. However, she mainly criticizes those hoteliers refusing to analyse their spa area in terms of figures. "Spas are similar to F&B as far as quality and processes are concerned. Here, hoteliers calculate everything and know all the ins and out of adjusting figures. But why not with spas?" Consequently, this means: only a few professional spa hotels fully exploit their entire potential ­ from calculation to employee motivation and fulfillment of guest demands. The result: chances for additional revenues are being thrown away. And where is the trend going from 2011 onwards? Michael Altewischer feels it will go towards diversification, a more regional sense, away from hardware towards a more human "touch", to communication with guests at eye level. This way, spas would finally enter the core business of hoteliers: providing services! // Dagmar Rizzato Susanne Kraus Winkler Michael Altewischer

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March 2011 hospitalityINSIDE Special ITB 201 1 CoLUMN Social Media: Warning, Dazzler! Marco Nussbaum, co-founder and CEO of prizeotel Management Group, lives social media on a daily basis. For the distribution of his 2-star prizeotel in Bremen, he solely relies on online distribution and social media. He would like to whet the appetite of hospitalityInside.com readers for social media and describes benefits and curiosities... "Astroturfing? This says nothing to you? If you are frequently on the move within hotel review portals, perhaps this method has already found accommodation for you in the past. Of course, this is with out you noticing it! In principle, astroturfing denotes nothing more than strategically wellplaced reviews and user`s experiences that safeguards no one. It concerns, in this instance, quite profane and professionally constructed dazzler text that is meant to manipulate targeted opinions. In my eyes, the manipulation of reviews is actually only a continua tion of those highgloss photos of freshly renovated rooms that are presented in an expensive hotel brochure ­ or today flaunted on a homepage... Manipulated reviews create unrealistic expectations of the product that can be fulfilled only in the rarest case. Never theless, the path that we are on with it is quite clear: Unrealistic ex pectations lead to disappointments! Then, in the end, this disappointment culminates into negative re views. Ergo: In the mediumterm, manipulated reviews lead to a negative online reputation and in the longterm, damage some thing very valuable ­ trust! I ask myself very seriously, why these hoteliers who spend money on professional dazzlers do not inject their Euros into their product? Renovation, maintenance, employee training etc. etc.! There are countless possibilities for investing this money efficiently and with lasting effect! But no, the hotelier takes the easiest path once more! True words from the master that can be easily transferred to this si tuation. Since highquality hotels do not result from the methods of astroturfing and its manipulations, but from the work of the people. The "Quality Seal" comes from people who practice their service profession with their hearts and minds and from executives who ha ve visions and make them a reality by motivating their employees! Create your own picture, because not every review corresponds to the truth. Trust is good ­ control is better! So, control!" // Advertisement

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hospitalityINSIDE Special ITB 201 1 March 2011 E n t e r. fotolia.de fotolia.de The Hottest Hotel News. Weekly. Europe`s first purely editorial online hotel trade publication, bilingual (German/English). Researched background and hot news. Every Friday. First to KNOW. First to ACT. Enter the world of hospitality information. JOIN US. www.hospitalityInside.com The online hotel trade magazine hospitalityInside.com is published every Friday, 48 times per year, in two languages (German/English). A full subscription, including unlimited access to the archive costs 579.32 Euro (excl. VAT) per year. A subscription without access to the archive is at 352.80 Euro (excl. VAT) per year. Special rates for several users of one company and corporate package conditions are available. For detailed information, please call +49-821-99 56 68 or send an eMail to service@hospitalityInside.com.