Source : MKG Consulting Database – December 2002 12 MONTH ROLLING REsults
FOR CORPORATE OPERATED HOTEL CHAINS
Source : MKG Consulting Database – December 2002 Official statistics from corporate operated hotel chains ARR and RevPAR are in local currency Among the most significant facts from
the last twelve months, the following merit particular attention: 1-
The European Union is down on the last 12 months : -2,6% On the last 12 months, the global zone of the European
Union posts a RevPAR down by 2,6% in spite of a slight increase of the
average daily rates (+0,5%). Occupancy rates are indeed down by 2,2
points, to 67%. In the end, France is the only country to record
increasing revenues per available room on 12 sliding months. Italy and
Portugal manage to limit the damage, even though the RevPAR is down in
these two countries. All other countries post revenues per available room
down by between 3% to more than 5%, Germany, Austria and Belgium recording
the most important losses. 2-
France is the only European country to record an increase of the
RevPAR on 12 sliding months The growth of the RevPAR by
0,6% in France on the last 12 months results from the increase of the
average daily rate by 2,5%. This growth compensates for the drop of the
occupancy rate by 1,3 points (to 68,9%). Only the revenue per available
room of the upmarket segment still posts a decrease compared to the same
period of last year. The economy and budget segments record increasing
results on 12 months of activity: between +2,3% to +4,5% in terms of
RevPAR. 3-
Only the economy segments are in progress On the last 12 months, only
the economy segments record an increase of revenue per available room.
Indeed, they post a growth of the average daily rate between 4% to 5,5%
and thereby compensate the drop of occupancy rates concerning the 0* and
1* segments. Nevertheless, once again they maintain very high levels this
year, between around 70% to 75% on the European zone. Hence, the economy
segment is doing well and shows a remarkable resistance since the
beginning of the economic slowdown that was observed during the first
quarter 2001 and in particular since September 2001. The mid-market and
up-market segments, however, post a RevPAR that is down (respectively
-1,6% and -5,3%). This drop is due to the decrease of the occupancy rates,
but also to a slight reduction of the average daily rate with regards to
the up-market segment. 4-
The United Kingdom and the Netherlands lower their room rates and
maintain their occupancy rates In 2002, hoteliers adopted price strategies according to the
countries. In the Netherlands and the
United Kingdom, they took the option of quite important drops (around 3%
and more). These decreases permit those two countries to more or less
maintain their occupancy rate at a constant level. Like last year, these
countries continue to record the highest occupancy levels. In Germany,
Belgium or Austria, however, the price drops were not sufficient to fight
the decrease of the occupancy rate. Globally, Germany is the country
posting the worst performances in 2002: the RevPAR is down by 5,2% (global
of all segments) while the occupancy rate loses 3 points to 58,2%. 5-
Uncertainty regarding the activity in 2003 As the activity of the hotel industry was limited in
December, the latest figures of the year should confirm the annual
tendency. On the European level, the European hotel industry stands idle
in 2002. In spite of the efforts made by hoteliers in terms of promotion
and commercialisation, in particular the European up-market segment could
not gain over the consequences of the attacks occurred in the United
States. The more important volumes of inter-European customers could not
compensate the lack of American and Japanese customers. The attacks of
September 2001 are still strongly present in the minds of the customers.
This year, the European hotel industry has not recovered its activity
level before the crisis. Predictions regarding the hotel activity in 2003 are
still marked with uncertainty: an intervention in Irak or new terrorist
attacks could quite significantly penalise the hoteliers. This uncertainty
does not favour investments of companies to start again and does not
favour the international travelling of Leisure individuals. Hence, in
2003, hotel groups established in Europe will try to keep their customers
by multiplying loyalty operations and reinforcing promotional actions. Contact Information: MKG
Consulting AH&LA's President Joe McInerney
Updates - January 9 2003 Dear Friends &
Colleagues: However, as the voice of the
hotel community AH&LA is prepared to evaluate and confront these
pertinent issues. Certainly, we are constantly
reminded of the possible threat of war as well as an economy that is still
struggling to find its footing. Nonetheless, we must maintain a positive
outlook and good customer service to keep our business on track. With that said, we must
remain focused on the priorities that make our industry as well as our
association stronger. One sure way is to continue making strides in our
governmental affairs initiatives. Growing our relationships with key
legislators is a priority. As the 108th Congress was sworn in this week,
AH&LA's governmental affairs department was there to welcome them -
attending numerous Capitol Hill events and meetings with several members
of Congress and their staffs. This meticulous type of work is a
long-standing AH&LA tradition and positions the lodging industry to
work in a bipartisan fashion with the new congress and its 65 new members. This month also marks the
beginning of our annual meetings, including the second annual Americas
Lodging Investment Summit (ALIS), Jan. 27-29, 2003, at The Century Plaza
Hotel & Spa/The St. Regis Hotel and Spa in Los Angeles. Partnering
with the Burba Hotel Network, AH&LA brings you this three-day event
that addresses the hotel investment community's unique needs and concerns
via networking opportunities and various educational sessions. It features many of your
business colleagues who are today's top hotel investment executives, such
as Stephen F. Bollenbach, president and CEO, Hilton Hotels Corporation;
and Henry Silverman, president and CEO, Cendant Corporation. Additionally,
Marriott International Chairman of the Board and CEO J.W. "Bill"
Marriott is receiving this year's Lifetime Achievement Award in
recognition of his commendable accomplishments in the lodging industry as
well as for the honorable deeds he has performed in his community. In association news,
AH&LA is comprised of many talented and diligent working individuals
who strive to bring you benefits (see below a complete summary of member
benefits) that affect your bottom line. As we look to streamline
efficiency, we constantly evaluate several areas of our core operation
efforts. For example, I have been
updating you biweekly with my president's letter for over the past year
and the feedback from this communiqué has been positive - with most of
you enjoying being kept informed about the inner workings of AH&LA.
However, we also recognize that you might receive several other
association announcements throughout the month, which may have caused you
to feel inundated. So, beginning next month
(February), we will be introducing a new bimonthly e-newsletter. This
electronic mailing will feature my comments as well as current information
from other AH&LA departments. Your comments on this project are
welcome as we endeavor to meet your many business needs. As always, my door is open to
receive your suggestions and comments on any matter. I greatly appreciate your
support and look forward to working with all of you. Thank you, Joseph A. McInerney, CHA e-Tid.com - Orb has indicated it will not bid for Thistle Hotels by the Takeover Panel-imposed deadline of January 15. However, it said it remained interested in making an offer 'any time' after the deadline. Orb, involved in a fraud investigation in connection with allegation of misappropriation of funds belonging to cash shell Izodia, said in November it was considering making an offer for Thistle’s remaining properties. What
Should You Expect From Your Executive Search/Recruiting Firms? Written
By: David Mansbach
HVS Executive
Search The
best executive search firms assist client organizations in defining
executive positions, identifying well-qualified and motivated candidates,
and selecting those best suited through comprehensive, quality-assured
search processes. Because utilizing an executive search firm
requires a substantial investment of time and money, it is critical for
restaurant executives to have a keen understanding of what to expect from
the client-executive search firm relationship. As
an executive search professional, I can say that the most successful
assignments point to restaurant companies that are “educated buyers.”
The organizations that “truly” understand how executive search
firms should operate are the ones that consistently attract and retain
high-performing executives. Listed below are key points to consider when
engaging an executive search firm. I.
The executive search firm shall provide you with an accurate and candid
assessment of its capabilites to perform your search.
Not
all search firms offer the same services, but they should all operate in
line with the highest professional standards. In addition to the obvious
differences in size and manpower, search firms also vary in their areas of
expertise, their knowledge of and contacts within various industries, and
the skills and experience levels of their search consultants. Before
agreeing to undertake any search, the executive search firm should: ·
Disclose any and all information with regard to relationships
or circumstances that might create actual or potential conflicts of
interest. A key requirement is for the search firm to reveal to present
and prospective clients the firm’s roster of clients. This is
extremely important because search professionals are prohibited from
recruiting candidates working for clients. Therefore, if
Applebee’s, Darden, Brinker, and Carlson Restaurants were my clients,
conducting a search for another Casual Dining concept/company will
dramatically diminish the potential candidate pool. ·
Define the scope and character of the services to be provided
and the fees and expenses to be charged for the services rendered These steps require that you
provide a full and accurate description of your organization, its business
needs and culture, the position to be filled, and your criteria for the
ideal candidate. If the search firm cannot handle your assignment, it
should explain why and then refer you to another firm better equipped to
meet your needs.
In addition to the consultant who
generates the business relationship, there may be a team of professionals
who will handle the search assignment. It is certainly within your rights
to ask for and to receive full and open disclosure regarding the
consultants and their ability to successfully handle the assignment, as
well as the resources the firm has available to support the
consultant/team working on your project.
In addition to locating
high-quality candidates, your search firm should also provide information
and feedback that not only helps direct your search for executive talent,
but that can also be used to run your business more effectively. This
feedback includes: ·
Knowledge of the industry in which the search will be
conducted, including availability of candidates, comparative assessments
of those candidates, and remuneration levels. ·
General market research regarding how your organization is
perceived in the market, what your competitors are doing, and what kind of
recruiting strategies may or may not be working at any given point in
time. IV. The executive search firm shall
hold your information in strict confidentiality. By its very nature, an executive
search requires you to divulge highly sensitive information about your
organization. Search consultants must treat any and all information you
give them with the utmost confidentiality. At the same time, the consultant
cannot conduct an effective search without making some information
available to potential candidates. To protect your interests, however, the
search consultant should guarantee that he or she will: ·
Use confidential client information only for the purposes of
conducting the assignment. ·
Disclose client information only to others within the search
firm (who may be supporting the consultant on this assignment) or
potential candidates who have a need to know the information.
In order to conduct a successful
search, the consultant must have a crystal clear understanding of the
position to be filled, the requirements of the job, and your company’s
culture. Accordingly, you should insist on receiving a report that details
the consultant’s understanding of: ·
your desired level and type of experience; ·
the background, education, and technical skills needed to
successfully perform the position; and ·
the responsibilities of the position and any interpersonal
skills needed. Good search firms will do more than
just feed back the job description you present them. They will proactively
help you develop, modify, and refine your own understanding of the
position. To help with this critical step, give your search consultant
access to all those who participate in the selection process and encourage
them to provide full disclosure regarding the position to be filled. Because the job description
represents the bedrock of a successful search, you have a reciprocal
obligation to notify the consultant if any time circumstances (either
internal or external) require a change in the position or the type of
person you’re seeking. Be aware that a major change in search
specifications may require a change in fees.
Depending on the position to be
filled, the availability of talent, and a host of other factors, a
successful search can take anywhere from a few weeks to several months. To
keep you up-to-date, the search firm should provide ongoing progress
reports that include: ·
the companies at which the consultant has tried to target
candidates; ·
the market response to the search; and ·
obstacles to identifying or attracting candidates and
candidates currently being developed. VII. The executive search firm
shall present qualified candidates who fit the position and the culture of
your organization. The consultant should present you
with a range of qualified potential candidates, whom he or she has
thoroughly assessed and interviewed. The consultant should be able to
discuss each candidate’s: ·
experience level and significant achievements relative to the
position to be filled; ·
education, interpersonal, and motivation competencies; ·
personal strengths and weaknesses with respect to the
position to be filled and perceived cultural fit and interest in the
position; and ·
remuneration and financial expectations. In presenting candidates, either
individually or in a “shortlist,” you should expect the consultant to
discuss the interviewing arrangements and other issues that can affect the
critical interviewing process. Immediately after you have interviewed
candidates, your search consultant should solicit your comments and
feedback and help you conduct comparative candidate assessment and
analysis. If it becomes apparent that the
search will take considerably longer than expected or that it may not
yield an acceptable range of candidates, the consultant should inform you
as soon as possible and discuss alternative courses of action.
Once you have selected a final
candidate, the consultant’s role changes from that of search agent to
negotiator and communicator. At this point, the consultant’s primary
function is to help you bring the candidate on board in a manner that
facilitates a long and successful stay with your organization. This
includes: ·
acting as an intermediary between you and the candidate
regarding compensation, benefits, and other conditions of employment; ·
communicating to you any reservations or concerns the
candidate may have about accepting the position; and ·
helping the candidate to assess the opportunity and working
with both sides to create a “win” for everyone. Although the consultant represents
your interests first and foremost, he or she must also remain sensitive to
the needs and concerns of the candidate. To do otherwise significantly
reduces the chances of a successful hire. In addition, representing both
parties with integrity and professionalism ensures two important outcomes: ·
the candidate comes aboard feeling that he or she has been
treated fairly; and ·
the search enhances your company’s reputation in the
marketplace. Remember that your candidates are
also very busy professionals who have sacrificed valuable time to talk
with you. Furthermore, they did not solicit this opportunity; it was
presented to them.
The search firm cannot (and should
not be expected to) guarantee to fill your position. The consultant also
cannot guarantee that, once placed, a new hire will stay with your firm.
With that in mind, the consultant should provide (in writing) an
explanation of the firm’s policy regarding possible outcomes. These
include: ·
the search firm’s obligations and responsibilities to you
should a newly recruited professional leave your company for any reason
within an agreed period of time; ·
your obligations to the search firm should you hire a
candidate presented during the current engagement for a position other
than the assigned vacancy; and ·
the conditions under which the search firm can withdraw from
your assignment or consider it sufficiently changed to start a new search.
X. The executive search firm shall
provide you with a reasonable level of follow-through after you have hired
the candidate. Seemingly successful placements can
sometimes fall apart during the transition period. As a result, the
consultant’s responsibility does not end when the candidate accepts the
offer. Instead, the consultant should stay in contact with the new hire as
long as necessary to ensure a smooth transition and help them settle into
the new position. Above all, the consultant should make sure that you are
fully satisfied before considering the search a success and concluding the
assignment. Now that you know your rights, it is up to you to hold your search firm to the high standard of service you expect!! The excerpts given are taken from The Association of Executive Search Consultants, Inc. Client Bill of Rights. AESC is the professional association representing retained executive search consulting firms worldwide and establishes professional and ethical standards for its members.
Contact:
ASIA
Travel Tips .com - The
Hong Kong Tourism Board (HKTB) announced that it welcomes and supports the
Policy Address presented by Chief Executive Mr Tung Chee Hwa today (8
January), in which a series of measures were announced to enhance Hong
Kong's tourism competitiveness. The Board says it is also encouraged as
the Central Government agreed to study further relaxation of travel
restrictions relating to Mainland residents. These proposals will
certainly assist in consolidating Hong Kong's status as a premier travel
destination. HKTB
Chairman The Hon Mrs Selina Chow, GBS, OBE, JP echoed Mr Tung's views that
staunch support from the Mainland and a global outlook had been crucial to
Hong Kong's economic success. "This also applies to the promotion of
the tourism industry," Mrs Chow said. "For one thing, we have to
make it easier for Mainland travellers to visit Hong Kong. And for
another, we need to capitalise on Hong Kong's appeal as an international
city and its fusion of cultures that attract both leisure and business
travellers worldwide. "When
enhancing Hong Kong's tourism competitiveness, in addition to focusing on
the development of new attractions and marketing promotions, Hong Kong's
overall image and competitive edge should also be taken into account, in
order to draw up necessary improvement measures," Mrs Chow said. "With
the government's strenuous support, investment from the trade and
participation by the community at large, achievement could be more
effective," Mrs Chow remarked. "The government's commitment to
promote Hong Kong as Asia's World City, by enhancing its status as a trade
centre, speeding up of border clearance, improvement of port connections,
development of innovative industries, creating a clean environment and
enhancing local residents' trilingual language proficiency, further
demonstrates that diversified policies and measures are instrumental in
developing the potential of the tourism industry." The Mainland is a major source market to which the HKTB has attached a great deal of importance. In response t | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
