SPECIAL MARCH 2017 • IHIF / ITB EDITION FOR EXPERTS IN HOSPITALITY & TOURISM Go for the Unknown! Disruption. The hospitality industry is facing the challenge of the century. hospitalityINSIDE Special IHIF / ITB 2017 March 2017 2 World of Hospitality Hall 9 / 108 March 2017 hospitalityINSIDE Special IHIF / ITB 2017 Dear hospitalityInsiders and guests at IHIF / ITB Berlin 2017! The global consolidation wave is rolling in the hotel industry, changing ownership, and shaking up brands and employees. An incredible amount of capital and low interest rates are pushing this development ahead. Deal makers are left breathless. Hoteliers feel anxious and overwhelmed by technology, automation and disruption. However, only very few busi- nesses are truly disruptive. The Harvard professor who invented this term is worried about its false usage. What does all this have to do with this magazine and Berlin? These are catchwords on the topics, which will dominate the International Tourismus Boerse Berlin (ITB) as well as IHIF, the International Hotel Investment Forum, which traditionally takes place prior to the ITB Berlin and has done for 20 years now. At the ITB hotel conference, the "ITB Hospitality Day", HospitalityInside has been media partner for 12 years now; however, we are participating at IHIF for the first time this year. Therefore, this SPECIAL debuts topics from hotel ope- rations as well as investment. The above-mentioned topics keep hospitalityInside.com busy the whole year around. The articles are only available behind the paywall as our online hotel expert magazine is solely financed by subscriptions. We do not accept any advertisements in order to be able to concentrate exclusively on our readers' interests. In light of the political and social developments around the world, which are leading increasingly to "fake news", we will continue doing things our way undeterred. So far, readers in more than 20 countries have been grateful for our straightforwardness and transparency. 3 Despite online, you are still able to experience HospitalityInside live: come and visit our team at ITB in Hall 9/Stand 108 at the joint stand "World of Hospitality". There, you will also meet renowned hotel groups and technology-oriented businesses. You will find their profiles from page 6 in this SPECIAL. For IHIF, I wrote a white paper about the hotel real estate transactions in the German-speaking countries in 2016. You are able to download this document – of course in German and English – on the cover page of our website and the one of IHIF for free. We wish all participants at IHIF as well as all visitors at ITB a successful visit in Berlin! If we don't see each other, please contact us at [email protected]. We look forward to your suggestions and your interest in our magazine as well as our trade show activities beyond Berlin. Yours, Maria Puetz-Willems Editor-in-Chief hospitalityInside.com SPECIAL MÄRZ 2017 • IHIF / ITB AUSGABE FÜR EXPERTEN AUS HOTELLERIE & TOURISMUS Nur WOVRLDi sI TOSiBttFa, HnuHOdas Sl1!lP 0I9T8ALITY www.hospAitalsloiet yMaInvasagiidlaaezb.icnleoev omr daer aHDeirsa srMuupsftto!ior dnu .e rDutineg !H doetesl lJearhier hunderts. WorHlda ollf 9H /o s1p0it8ality 3,600 copies distributed. hospitalityINSIDE Special IHIF / ITB 2017 March 2017 CONTENT Editorial 3 A good concept all round 6 ITB Stand "World of Hospitality" with new design and new names A lot of content 10 51th ITB Berlin presents Technology, CSR, Medical and Careers 4 Talk technology, taste, safety and search 12 12th ITB Hospitality Day: A wealth of trends and innovations Hot, lukewarm and select 16 IHIF White Paper: Hotel investments and developments in the German-speaking market 2016 Racing from deal to deal 18 Investments: Inflated prices, dubious bidders? 2016 was hot They will pamper us 20 Shareholders Christoph Hoffmann and Stephan Gerhard on the 25hours deal with AccorHotels Disruption: The great misunderstanding 22 Harvard Professor Clayton Christensen coined the term that is misused today IMPRINT Publisher: HospitalityInside GmbH, Paul-Lincke-Strasse 20, 86199 Augsburg, Germany. www.hospitalityInside.com // Editorial office: Maria Puetz- Willems, Editor in chief, hospitalityInside.com // Articles: The articles published in this Special are written on the occasion of IHIF / ITB 2017 or are extracts of articles published in the online magazine www.hospitalityInside.com // Authors: Beatrix Boutonnet, Fred Fettner, Maria Puetz-Willems, Baer- bel Schwertfeger, Susanne Stauss // Cover: VAlex – Fotolia // Photos were kindly provided by the persons and hotels/companies mentioned, also by Airbnb, Fred Fettner, kentoh – Fotolia, Messe Berlin, Mark Green/IHIF, Maria Pütz-Willems, Jonathan Stutz – Fotolia, VR Summit, Wolfgang Reiher photography // Advertisements: This Special was supported by Deutsche Hospitality, Fidelis Hospitality, IHIF/International Hotel Investment Forum, Messe Berlin, Next Gen Opti, Premier Inn, Quality Reservations, Ronnefeldt, Union Investment // Layout: Cornelia Anders, www.blueorangeblue.de // Print: Silber Druck, www.silberdruck.de // 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. Beyond, we reserve the right to take legal action and claim damages. If you like to make use of our content, please address to us for the current conditions. March 2017 hospitalityINSIDE Special IHIF / ITB 2017 Advertisement KNOW TODAY WHAT YOU NEED TO KNOW TOMORROW Co-Host ITB Berlin 8 – 11 March 2017 Convention 2017 itb-convention.com 世界旅游城市联合会 Technology first! 24 The new communication channels between hoteliers and guests When worlds overlap 26 Virtual, Augmented and Mixed Reality find their way into tourism Message of the video bloggers 28 How Welf Ebeling and Maggie Wu address Chinese Millennials 5 Beijing Duck? No, thank you 30 China column with COTRI and expert Prof Dr Wolfgang Arlt 17 sqm and upgrading without limitations? 32 Does budget still have a future or are we facing uniformity in the middle? Compact, cost-conscious, quick to decide 34 Young budget groups get in on the mix: LetoMotel, Cocoon/Buddy, MQ The reason is the lack of excitement 36 EXPO REAL discussion sharply criticizes Airbnb and hotels TOP-CLASS LECTURES ABOUT Compared 39 GLOBAL TOURISM TRENDS: STR analysed markets: Airbnb performance stays behind hotel performance ITB Future Day · ITB Hospitality Day · ITB Marketing and Distribution Day · ITB CSR Day · ITB Destination Days · ITB PARTNERS 2017 ITB Business Travel Days · ITB MICE Days · ITB Young Partners of the joint stand "World of Hospitality“ are (in alpha- Professionals Day · ITB Workshops · eTravel World · betical order): HospitalityInside, MACNETIX, Media Carrier, ITB Experts forum Wellness Motel One, Next Gen Opti, Premier Inn Official Partner Country ITB Berlin 2017 NEU_HospitalityInsight_ITB2017_Kongress_90x260_en.indd 1 16.02.2017 10:40:24 hospitalityINSIDE Special IHIF / ITB 2017 March 2017 ITB STAND "WORLD OF HOSPITALITY" WITH NEW DESIGN AND NEW NAMES A good concept all round 2017 will see the joint stand "World of Hospitality" for the sixth time at the ITB – this year with new design. The semi-circular form gives the stand in Hall 9/108 softer contours. An ideal framework for intimate and serious conversations with old and new business partners. Hotel groups and technology-oriented companies have given the stand its character – and so its motto "Hotels, Technology & More". 6 Planning as of Feb 14, 2017. Rendering: Best Design March 2017 hospitalityINSIDE Special IHIF / ITB 2017 PARTNERS OF THE WORLD OF HOSPITALITY 2017 The co-exhibitors introduce themselves, in alphabetical order. We are looking for: Managers and As a registered ISP and Accessprovider, industry experts who would like to Macnetix provides highly-available system cooperate with us as a reliable information solutions for future-oriented network strate- source. Companies interested in joining our gies and sustainable resource manage- network at fairs. Strategic partners for new ment. HOSPITALITYINSIDE is the initiator of the visions and projects. We invite subscribers Software solutions are individually tailored joint stand "World of Hospitality" at ITB and partners of ITB to visit us at our stand. to customer requests. Macnetix understands Berlin. The company based in Augsburg IT infrastructure, hardware and software, (close to Munich) publishes the online data protection and support as a whole. magazine www.hospitalityInside.com, the www.macnetix.com online trade magazine for the international hotel industry, launched in March 2005. We are looking for: As a manufacturer The weekly magazine publishes in two lan- of individual software solutions and guages (German/English) every Friday, communicative applications, Macnetix focuses on pure editorial content (no adver- MACNETIX: Macnetix is an international touches a variety of areas. We are always tisements) and geographically on Continen- company based in Berlin. As an indepen- looking for innovative partners and coopera- tal Europe and the Middle East. Of course, dent service provider of business-critical IT tions in the hotel as well as in the clinic sector. the publication includes all global players infrastructure, cloud services and modular 7 of the industry. software solutions, Macnetix counts compa- It's no newsletter publishing (paid) press nies from the clinic and rehabilitation sector, releases but a journalistic magazine focu- the hotel and catering industry as well as sing mainly on own research and back- schools, universities, banks or the retail to ground articles. The columns pick up topics its customers. like investment, financing, marketing, everywhere | any time | any device. A long human resources, technology, etc. – time known and common fact is that tech- everything that keeps a hotel group alive. nologies are also used to simplify work and MEDIA CARRIER: is specialized in the distri- Readers are spread over more than 20 to increase the efficiency. But they also can bution of digital newspapers and maga- countries: General Managers, Area Mana- facilitate the daily life considerably. Tablets zines. The company belongs to the MELO gers, Managing Directors, CEOs, owners, instead of guests wallet, smartphones Group, which has arisen from the Munich- consultants, designers, developers, ban- instead of room keys, app‘s instead of based press wholesaler Trunk. MELO as an kers, investors, leading hotel chains as well remote control and also the check-in / -out international full-service-supplier in the fields as reputable private hotels belong to the via smartphone during the journey are now media and logistics, currently employs over "hospitalityInsiders". state-of-the-art. 2.000 employees at twenty locations in six Furthermore, the company connects exe- The Macnetix OpenApp|SUITE introduces countries. cutives of the industries during fairs, work- a continuous interaction platform which is Media Carrier has developed a digital shops, hotel conferences and own events available at any time, global and on any library which offers digital editions of print by its grown information network. In the device. The Macnetix complete solution media. These digital editions can be down- "Network" column on the website you will opens up a vendor-independent service loaded on any mobile device such as find announcements and reports about all portfolio on one single platform to face the smartphones, tablets or laptops without any events and fair activities. progress of information technology with a add itional software installation. Since 2006, hospitalityInside also orga- future-oriented solution. Based on clients' requirements, Media Car- nizes annual hotel conferences: the "ITB The Widgets in the widget pool can be used rier buys digital editions of newspapers and Hospitality Day” at the world’s biggest multiple times so that a widget can be dis- magazines from publishing houses and tourism fair ITB Berlin and, since 2008 the played on the SmartTV as well as on the composes individual portfolios using its own "Hospitality Industry Dialogue” at Europe's digital door plate or the mobile device. Third- technical solution for distribution: the "Media leading real estate fair Expo Real in party services can also be created as a wid- Box". Munich; for both fairs hospitalityInside also get and distributed globally to each device. Media Carrier already sources and compo- initiates hospitality joint stands. Macnetix offers preconfigured devices, con- ses tailor-made portfolios for international www.hospitalityInside.com sisting of hardware and software, in one airlines, lounges and luxury hotel chains. housing. The goal is to minimize compatibi- Amongst others, passengers of Lufthansa, Vir- lity issues and simplify management. gin Atlantic and Oman Air and hotel guests hospitalityINSIDE Special IHIF / ITB 2017 March 2017 of the Steigenberger, Mandarin Oriental and the category "Service Provision by Major Dorint hotel chains already enjoy great bene- Companies". Motel One was also given fits of the Media Box. the business Award "Entrepreneur of the With Media Carrier GmbH as its subsidiary, MOTEL ONE: The Munich-based company Year" by EY (formerly Ernst & Young) for its the MELO Group is expanding its business to Motel One was founded in 2000 and entrepreneurship, innovative capability and include marketing and distribution of digital currently has 55 hotels with over 14,600 personal commitment. content. The MELO Group not only entailes rooms across Germany, Austria, the UK, www.motel-one.com the press wholesaler Trunk, but for example Belgium, Switzerland, the Netherlands and also the News-Log AG, which supplies air- Czech Republic. Within the framework of We are looking for: As a growing com- ports, airlines and catering companies European expansion the development pipe- pany we are looking for colleagues throughout Europe with print media, and is line currently comprises of 25 hotels with with a passion for Hospitality, as well as market leader in Germany and Switzerland. approximately 8.500 rooms. interesting project locations for our portfolio. www.media-carrier.de Like the Price. Love the Design. – Industry experts as well as guests appreciate the We are looking for: Tourism compa- unique combination of high-quality interiors, nies that want to delight their guests exclusive design highlights, great service with an innovative service, and for coope- standards and first-class prime urban loca- ration partners. tions at an affordable price. Room prices start from as little as 59 euros. Motel One aims to create a strong differen- NEXT GEN OPTI Ltd is a SaaS company tiation from other hotel brands with their specialized in cloud based solutions for the consistently evolving One Lounge concept. hospitality industry with bases in the UK, 8 The creative design of the One Lounge Germany, the Netherlands and Romania. areas provide a space to "work, meet and Our global team has been working together relax", with all lounges being staged as a for the past 10 years, has expertise in visual and communicative hub, a cosy mee- Hotel Software Applications and Revenue ting point for guests as well as locals from Management practices and helped over the city. Always having a focus on indivi- 2,200 hotels in more than 20 countries. dual design and high demand on quality. We help hotels adjust to the ever changing In 2016 Dieter Müller, CEO and founder landscape of the tech industry, specializing of the Motel One Group, was awarded in algorithms and focusing on technology with the "Lifetime Achievement Award" that is more challenging and on trend, such during the IHIF. Furthermore, Motel One as revenue management systems, central received the German Education Award in reservation systems and booking engines. March 2017 hospitalityINSIDE Special IHIF / ITB 2017 Each one has a direct impact on earnings We are looking for: Partnerships with Community Environmental Leadership 9 for hotels. This leaves space to work coope- Revenue Management Companies Award. ratively with property management systems who want to scale and increase perfor- Whitbread PLC is the owner of the UK's and channel managers effectively. mance and also with Technology Compa- favourite hotel chain, Premier Inn and the THE NEXT GEN OPTI TOOL BOX: Next nies that want to wrap in or resell our soft- UK's favourite coffee shop, Costa, as well Gen Opti operates a high-end Reservations ware, to add top-line revenue and improve as several restaurant brands like Beefeater. & Distribution Platform, which is designed for customer retention. Whitbread has outlined growth milestones all possible types of eDistribution, offers a for 2018 and 2020. The 2020 milestones "Tool Box" with a variety of apps helping are to increase the number of Premier Inn revenue managers with price recommenda- UK rooms to around 85,000 and to tions, benchmarking and hotel reputation achieve global system sales of around management, as well as managed services. £2.5bn for Costa. 2017 – FOCUS ON OUTPERFORM: Out- In the year ended 3 March 2016, Whit- Perform – price optimizer and revenue ma- PREMIER INN – was named the UK's top- bread PLC reported Group Revenue of nagement system helps revenue managers rated travel brand 2016 and the top-rated £2,921.8 million. Whitbread PLC is listed visualize, understand and analyze all past, hotel chain for 2016 according to Which?. on the London Stock Exchange and is current and future data in one place, With over 750 budget hotels and more than a constituent of the FTSE 100. It is also a enabling them to easily make the best price 65,000 rooms across the UK and Ireland, member of the FTSE4Good Index. decisions, improve RevPAR and discuss re- Premier Inn guests are never far from a great www.premierinn.com ports and KPIs. night's sleep at fantastic value rates. Next Gen Opti solutions are easy to Outside of the UK, Premier Inn's expansion We are looking for: We are building deploy, simple to use and come with full plans are focused on two key markets, our premium economy brand now in 1st and 2nd level support around the clock. Germany and the Middle East. Premier Inn Germany. The opening of three new hotels We have multiple support hubs: North opened its first German hotel in Frankfurt in is scheduled for 2018 and 2019, and fur- America, Latin America, Europe early 2016 and will open three more sites ther hotels are planned. A total of 6 to 8 (United Kingdom, Germany, Italy, Romania) in Munich, Hamburg and Leipzig in 2018. hotels will be in operation in 2020. Feel for ES, EN, DE and IT speaking customers. Further locations are in the pipeline. free to contact us directly at the ITB, we are The company has a proven track record in In the past year, almost 90 per cent of looking forward to your interest! the hospitality industry: branded and Premier Inn hotels achieved a TripAdvisor custom built hospitality applications, white Certificate of Excellence. Premier Inn has label applications for leading European also been awarded the Best UK Family Technology Suppliers and for leading Euro- Hotel in the TripAdvisor Travellers' Choice pean Hotel Management Companies. Awards, Best UK Hotel Group in the Silver www.nextgenopti.com Travel Awards and the Business In The hospitalityINSIDE Special IHIF / ITB 2017 March 2017 51TH ITB BERLIN PRESENTS TECHNOLOGY, CSR, MEDICAL AND CAREERS 10 A lot of content Saving the best for last: On 12 March 2017, along with world cultures and amid a festive atmosphere, visitors, exhibitors and guests will gather to celebrate the finale of the 51st ITB Berlin – a colorful show full African music, Caribbean songs, Andalusian rhythms and German-Greek choir music (15:30-17:00 pm at Palais am Funkturm). Before, trade visitors will discover plenty of news in the ITB halls, in particular about technology. – You will find the program of the hotel conference ITB Hospitality Day on the next pages in this SPECIAL. Double the excitement for innovation: for visitors will make a find at the different Food and Beverages in the Hotel Industry the first time, the eTravel World at ITB discussions and panels. Millennials, a and at Tourism Destinations'. Food and Berlin 2017 is booked up with over much talked about target group, will be drink are vital to life, a part of people's life- 70 exhibitors. In Halls 6.1 and 7.1c visitors discussed at several events; furthermore style and important in tourism. can find established companies as well as there are speeches on Virtual Reality and Afterwards, a high-level panel discussion with newcomers, which includes Aldebaran, Voice Command Technology. sustainable tour operators, commercial air- Betterspace, Conichi, Dayuse, eNett, Igola, lines and experts from the German Travel CSR Day as Paymentwall, Traveltripper and Wanup… Association (DRV) will debate 'Climate – socially-responsible platform For the first time startups will be able to take Customers – Communication: How Can part in an international pitching event Technology seems to dominate this year's Sustainable Travel be Marketed Successfully?' powered by Phocuswright (March 10, ITB halls but, still there are also social Under the heading of 'Sustainable Tourism 11:30 am). Hall 6.1 features the new topics. The United Nations World Tourism Destinations – The Status Quo and Lessons eTravel Showroom, where on Wednesday, Organization (UNWTO) has declared Learned', one year after the practical guide to 8 and Thursday, 9 March 2017 trade 2017 the year of sustainable tourism. sustainable tourism destinations was laun- visitors can find out about exhibitors' latest At the ITB CSR Day on 10 March, leading ched, the German Tourism Association (DTV) product innovations at some 20 sessions. figures in politics, business and science will will be summarising developments so far. The On the lookout for innovative ideas and the discuss innovative concepts, best practices session 'Luxury Tourism of Tomorrow: Gazing newest developments all around Chatbots, and the economic potential of sustainable at the Stars at the door plate or under the Virtual Reality and digital marketing, trade tourism. The main topic will be 'Sustainable Open Sky' will be certain to spark debate.