Telecommunication evolution and its impact on the hotel industry

By Tanya Pierson and Elizabeth Lauer Ivey     HVS International

As hospitality industry professionals, we know better than to make a long distance call from a hotel room, but does the average Jane and Joe Traveler?  The answer is yes, and they’ve learned to use a cell phone or PDA, rather than even a calling card.  Recent history has illustrated the effects of an educated traveler on the hotel industry.  As if the ubiquitous ads for cell phone plans weren’t bad enough, long distance plans advertising 3 cents, 5 cents and 10 cents a minute alert the cognizant public of how much they have been taken advantage of when they use a hotel room telephone for a long distance call. 

So how badly has the hotel industry been impacted by improvements in mobile communications?  According to Smith Travel Research, over the last five years, telephone revenue on a per occupied room basis has decreased an average of 3.3% (compounded annually) for full-service properties and increased by 2.5% annually (less than inflation) for limited-service hotels.  As a percentage of total hotel revenue, full-service telephone revenues have dropped from 2.6% in 1997 to 2.0% in 2001.  Limited-service hotels realized a similar decline from 2.0% to 1.7% between 1997 and 2001.  Because of the high fixed costs associated with the telephone department, expenses have risen as a percentage of departmental revenue.  The bulk of the telephone expense consists of the cost of local and long-distance calls billed by the telephone companies that provide these services.  For full-service hotels, as a percentage of telephone revenue, telephone expense increased from 43.1% to 50.6% between 1997 and 2001.  Limited-service properties have always realized higher costs, and between 1997 and 2001, telephone expenses increased from 57.9% to 65.3% of departmental revenues. 

Although telephone revenue makes up only a small percentage of a hotel’s total revenue, it historically was a fairly lucrative department relative to other hotel `departments, many of which realize minimal profit, if not losses.  If hotels fail to keep pace with the evolution of telecommunications, we believe the telephone department will become a loss leader.  For hotels that lease their equipment, it already is. Through the course of our appraisal work, HVS has already seen signs of this happening.  Primarily in mid-price and economy-oriented properties, telephone expenses have ranged anywhere from 100% to 250% of telephone revenues.  Hotels located along a highway also have traditionally realized lower telephone revenues (as a percentage) and higher departmental costs on a per occupied room basis.   Some of this may be blamed for inadequate call accounting systems and others might attribute it to high communication costs in certain locations.  The majority will attribute it solely to technology advancements and cell phone adoption rate without recognizing their own responsibility to keep pace with important changes in telecom practices, products, and services.  In addition, the competitive nature amongst hotels to offer free local calls has had an impact on telephone revenues and profit levels. 

One hotel company we spoke with stated that they are budgeting at least a 5% decline in telephone revenues annually (on a POR basis) and even internet and 800 access charges can’t make up for the lost revenue due to wireless technology.  Many managers are writing off profit in the telephone department altogether.   Trends for mid-year 2002 confirm that the drastic decline continues.  White Lodging Services, which owns and operates over 75 hotels in the U.S., stated that phone revenues for their 10,000+ rooms have dropped nearly 70 cents (on a per occupied room basis) through August 2002, compared to the same period in 2001.   Worse yet, telephone profitability ratios have declined by more than 50% (per occupied room) during the same period as well. 

What can hotels and hospitality companies do to mitigate the decline in telephone department profitability?  Careful review of telephone bills is an important first step to reducing expense.  Despite the fact that telephone service is a regulated utility, it warrants constant monitoring and attention.   Billing service errors are rampant as commercial billing has become more complex.  Multiple bills for various lines and services only compound the challenge.   Hotels seldom have the in-house resources to scrutinize monthly bills to ensure accuracy and request adjustments, so erroneous phone bills are often paid without question. 

Review facility configuration.  Additional lines are often ordered to accommodate meeting groups or ensure adequate coverage for periods of high call volume.  Historically, this was a reaction to a rising number of complaints from guests unable to get an outside line.  This may have occurred during the height of guestroom telephone usage.  Even though usage has declined, few properties have revaluated the number of physical lines running to the hotel.  Based on a careful review of current call volume, properties may be able to actually reduce the number of lines or replace expensive copper lines with T-1 or shared T-1 services.  Keep in mind that in recent years, guests have been placing additional demands on the telephone switch by using dial-up Internet connections.  If a property has recently installed a high-speed Internet access solution, the number of lines needed to handle the voice traffic volume may have declined. 

Shop around!  It is a buyer’s market, and there is no reason hotels can’t take advantage of extremely competitive pricing and brand purchasing power of a plentiful commodity.   Most consumers are hotly pursued by telemarketers who promise lower long distance rates and bundled services all designed to reduce total monthly telephone costs.  While most consider this a nuisance, regular notification and evaluation of one’s telephone service does save money.  In contrast, many hotel properties are operating with services negotiated years ago.  There’s a good reason the phone companies don’t call commercial customers to advise them of money saving strategies but rest assured that they can be uncovered.   In one instance, an independent hotel was able to reduce their annual costs nearly 60% by negotiating local service through their long distance provider instead of relying on a local service reseller. 

Don’t leave the negotiation of telecom services to amateurs or operations people.   Professional telecom audits are relatively inexpensive services that can pay for themselves quickly through accumulated savings resulting from improved cost control.   Automation can reduce departmental costs by decreasing the number of operators required to handle inbound and in-house calls.  Auto attendant and call routing functionality can take PBX demands off of front office personnel and reduce the need for dedicated PBX staff.   Maintaining an outdated telephone switch may be more expensive than replacing it with more modern equipment. 

Getting guests to resume use of hotel phones is a greater challenge, but opportunities to stabilize or improve telephone revenue do exist for companies willing to revise the traditional telephone department operating model.   In an effort to maintain current customers and potentially attract new ones, hotel companies have begun to implement incentives and encourage guests to reach for the guestroom handsets.  The first major hotel company to do so, Wyndham, is offering free local and long distance calls, as well as Internet access, to all WyndhamByRequest members as of June 2002.  More recently, a group of Marriott hotels in the D.C. area began offering unlimited local, long-distance, and high-speed internet access for a daily fee of $9.95.   Other hotel companies are experimenting with IP Telephony.  Although still in its infancy, Voice over Internet Protocol (VoIP) is expected to dramatically reduce telecommunication costs by circumventing traditional long distance carrier networks and routing voice traffic over the Internet.  

By eliminating or reducing the consumer costs for long distance and Internet access, hotel companies achieve a competitive advantage.  As a result, to compensate for the lost profit, hotel managers are slowly increasing room rates or focusing additional attention on ancillary departments (business center, spa, meeting space, restaurants, etc.).  With additional attention paid to the current services offered to the property by a provider, incorporating additional automation, and/or through the use of a technology consultant, savings may be realized. 

Tanya Pierson
Elizabeth Lauer Ivey
2229 Broadway
Boulder, CO 80302
303-443-3933
303-443-4186 FAX

FelCor posts wider loss, will sell small hotels

(Reuters) - FelCor Lodging Trust Inc.FCH.N , the No. 2 U.S. hotel owner, announced on Tuesday a wider quarterly loss due to weak travel and investment losses from smaller hotels, which the company has decided to sell.

Irving, Texas-based FelCor, which warned in January it would miss Wall Street expectations for the fourth quarter, said it would defer further common dividends until room revenue begins growing 2 percent to 4 percent per year.

Few industry executives or analysts expect even that kind of tepid growth very soon, however, leading many analysts to rank the lodging sector as neutral or hold.

FelCor reported a fourth quarter net loss of $185.1 million, or $3.17 per share, compared with a loss of $35.4 million, or 67 cents per share, in the year-ago quarter.

The fourth-quarter loss of 2002 included a $157.5 million charge related to the sale of 33 small hotels FelCor plans over the next 24 to 36 months.

Funds from operations, a cash flow measure, was 11 cents per share, in line with a company warning on Jan. 14, when Wall Street on average had expected 21 cents per share.

Revenue in the quarter rose 2.3 percent from a year earlier to $309.8 million, reflecting higher hotel room occupancy but lower rates.

"The occupancy levels are back. It is just a rate issue," Chief Executive Tom Corcoran said in a telephone interview.

He forecast revenue per available room, or RevPAR, would fall 3 percent to 5 percent in the first quarter and FelCor said that January RevPAR was down 4 percent from the previous year.

Room revenue in 2003 would be between one percent down and one percent up compared with 2002, the company forecast.

Funds from operations would be between 14 cents and 18 cents per share in the first quarter, FelCor forecast.

NO "MAJOR WAR" FACTORED INTO FORECAST

Corcoran said that he had not factored in a potential major war with Iraq. "I don't think it's got the effect of a major war that stops people from traveling," he said.

FelCor also announced plans to sell off 33 smaller hotels from its portfolio of 169 units. Corcoran said he aimed over the next 24 months to 36 months to exit some smaller markets and put the proceeds into properties in larger markets. However, he did not forecast when, or what, he would buy.

Shares of FelCor dropped about 1 percent, or 10 cents, to $10.25 in regular trade before results were announced.

Former hotel manager awarded more than $11 million after suing Leona Helmsley for gay bias

(AP) -- A jury awarded more than $11 million to a former hotel manager Tuesday after concluding he was fired by real estate maven Leona Helmsley because he is gay.

The jury found that Charles Bell had endured a "hostile and abusive work environment" while running Helmsley's Park Lane Hotel. He was awarded $10 million in punitive damages and $1.2 million in compensatory damages.

State Supreme Court Justice Walter Tolub had told the jurors to take into account the defendant's financial condition and said Helmsley's net worth is estimated at $3.2 billion to $4 billion.

Helmsley looked impassively at the jurors as the decision was read, but said later that she was "shocked" by the award.

"I think it's shameful," she said. "It will encourage more people to lie, cheat and steal. He (Bell) broke every rule. I'm outraged."

Her lawyer, Steven Eckhaus, said he would move immediately to set aside the verdict and, failing that, would appeal.

Bell, 48, had sued Helmsley, 82, for $40 million, saying that once she found out he was gay she subjected him to almost daily verbal abuse until she fired him in March 2001.

Bell testified tearfully during the trial, saying that about a month before Helmsley fired him, "She started to yell at me. She said, `You look like a fag. You dress like a fag. You are a fag."'

Bell said Tuesday that he was happy the jury agreed Helmsley had discriminated against him, adding: "I don't believe that any gay person should ever have to go through this kind of treatment again, ever."

Eckhaus previously had said Bell was fired because he was unqualified, not because he's gay. He noted that Bell admitted that he had submitted a resume that was "phony baloney."

Two other gay former employees of Helmsley's have lawsuits pending against her.

Accor 2002 sales dip on slowdown, currencies

 (Reuters) - French hotel group Accor ACCP.PA reported a 2.1 percent decline in full-year sales on Tuesday as a sluggish economy and currency effects took their toll on its giant hotellery division.

The company whose 3,600 hotels range from the luxury Sofitel chain to the budget Red Roof inns for travelling salesmen, said in a statement that sales in 2002 totalled 7.139 billion euros after 7.290 billion a year earlier. On a comparable basis sales increased 0.9 percent.

Analysts surveyed by Multex had predicted 2002 sales of 7.295 billion.

In the fourth quarter alone, meanwhile, turnover emerged at 1.736 billion euros, down 3.2 percent on a published basis from 1.793 billion a year earlier.

Accor, which also operates service vouchers, casinos, and owns half of travel agency Carson Wagonlit Travel, said its full-year pre-tax profit should emerge "very close" to its target of 700 million euros.

Indonesia: Tourism showing signs of recovery

Jakarta (Bluebull) - Tourist arrivals to Bali almost doubled in December from the previous month to 68,000, signaling a recovery in an industry that has been devastated by the Oct 12 nightclub bombings, Indonesia's statistics bureau said. Still, Indonesia's tourist industry, which contributes about 5% to annual gross domestic product, suffered badly in 2002 due to the blast, the statistics bureau said in figures received today.

Overall tourist arrivals dropped 2.3% from the previous year to 5.03 million, it said, and December arrivals for Indonesia as a whole were still about 7% lower at 281,928. Foreign exchange from tourism also fell from USD5.4 billion in 2001 to USD4.3 billion in 2002, it said. 'Although tourism to Indonesia has improved after the Oct 12 Bali bombing, it hasn't yet recovered fully,' the bureau said in a statement.

Indonesia's success in capturing many suspects of the Bali attack has helped restore confidence among tourists, analysts say. Yesterday, police arrested the suspected leader of the Singapore branch of the al-Qaida-linked Jemaah Islamiyah terror network. Indonesia has said the group carried out the bombing, which killed 192 people, mostly foreign tourists.

Tourism officials say they were also helped by a strong holiday season and a domestic market lured back to Bali with reduced hotel and air rates. But they have said the next few months will determine if the rebound is strong enough to offset feared layoffs and business closures in Bali. /cf

Australian economy the big loser if tourism green paper

The Australian Tourism Export Council (ATEC) today called on the Federal Cabinet to fully support the 'Tourism Green Paper' and commit to investing in an industry that can deliver long-term benefits for the Australian economy.

"The Cabinet must support the work carried out by Minister's Ian Macfarlane and Joe Hockey who have driven the intensive Tourism Green Paper process. The green paper is due before Cabinet in the next few weeks and it would be a disaster if this key industry restructuring document is not supported by a credible resourcing contribution", said ATEC Managing Director, Peter Shelley. "We are asking the government to take a long term view on tourism. It is about the future growth of the economy and the substantial contribution tourism can make in the years ahead. It's an industry vision for the future that we want the government to share in. It's about real jobs, real people and real outcomes."

"We are not talking about short-term fixes. The Tourism Green Paper will assist in restructuring an industry that already contributes around 5 percent to GDP and employs 10 percent of the nations' workforce. The aim is to build on these sizeable foundations and take the industry to a new level of growth over the next decade in terms of exports and employment." "The Paper's recommendations have been developed over a 10-month period following extensive industry consultation. Tourism Minister, Joe Hockey, has travelled the length and breadth of Australia to familiarise himself with the issues and the impediments to sustained growth. He has been candid with the industry that it should brace itself for significant change in order to secure its position as a long-term growth generator for the Australian economy.

"The industry is prepared for such change and has proactively supported the government's agenda for the Paper. Therefore it also has high expectations that after such a detailed process the government will recognise tourism's growth potential and invest significant resources in its future." "ATEC is calling on the Friends of Tourism, the 40- member coalition tourism support group, to exert its influence in the party room on behalf of the one million people employed directly and indirectly by the tourism industry." "The industry's potential is well documented. However, projections about tourism's annual contribution surpassing $100 billion at the end of the decade and tourism exports reaching around $30 billion are one thing, delivery of this potential is another." "These projections will not be reached unless the government gets serious about the tourism industry. It will be a missed opportunity for Australia if the government fails to act. Never has there been a better time for the government to invest in the future of the industry and the national economy", added Mr Shelley.

Indonesian tourism shows sign of recovery

Indonesia's tourism figures have recovered significantly following the devastating Bali bomb attack last October.

Indonesia's Bureau of Statistics says foreign tourist visits rose 18 per cent in December.

In the weeks that followed the attack, occupancy rates at some Bali hotels fell to single-digit levels.

The Bali explosions killed almost 200 people, most of them foreigners.

Investigators look for cause of hotel fire in northeastern China

(AP) -- Investigators combed through charred restaurant supplies, wiring and space heaters as officials said Tuesday they were still uncertain what caused a hotel fire that killed 33 people in an icy northeastern city during the Chinese New Year weekend.

The investigation into the fire Sunday night at the Tiantan Hotel in Harbin was continuing, said a government official at Harbin's city hall who gave only his surname, Wang.

Footage on Heilongjiang provincial television Monday night showed firefighters carrying injured and overcome people from the hotel, down steps covered with soot and debris.

Harbin's newscast also showed the gutted innards of the hotel, including burned parts of a restaurant, charred shelves of liquor and food supplies and broken windows. The official Xinhua News Agency said people kicked out windows to escape the fire and smoke.

Investigators were also shown examining wiring, space heaters and water-soaked corridors inside the burned hotel.

Sixteen people were hospitalized after the fire but were out of danger by Monday morning, Xinhua said. More than 100 were evacuated after the blaze, which broke out at 6 p.m. Sunday. Most of those killed and hurt suffered from smoke inhalation.

Harbin, a city of 9.1 million, is the capital of Heilongjiang province and sits on the Songhua River about is about 800 miles northeast of Beijing. Temperatures in Harbin last week fell to 5 below zero, and coal is widely used for heating.

HSMAI LAUNCHES 2003 eCONFERENCE SERIES OF INTERACTIVE EDUCATIONAL SEMINARS

First Session on Revenue Management Set for Feb. 6

MCLEAN, VA (Feb. 4, 2003) - The Hospitality Sales & Marketing

Association International (HSMAI), in partnership with HSA

International, announces the debut of an extensive series of

educational and interactive eConferences designed to help sales and

marketing staff on all levels of expertise to hone their skills in a

convenient and easy web-based format.  eConference programs feature a

broad range of industry experts on topics covering four tracks: Sales

Strategies and Tactics, Sales and Marketing Management, E-Commerce,

and Revenue Management.  Participants will be able to view the visual

portions of the presentation by logging-on to the Internet and will

hear the audio portions by dialing into an audio conference call.

"We are very excited about this new opportunity to provide yet

another educational initiative for both our members on all levels in

every segment of our diverse industry membership as well as

non-members," said Robert A. Gilbert, CHME, CHA, president and

CEO of HSMAI.

Mike Hampton, Ed.D., CEO of HSA International, is overseeing the

development of the program and content for HSMAI.  HSA International

has been providing training and support products and services for the

hospitality industry since 1986. 

"The interactive process provides all participants with the

unique opportunity to contribute supplemental material to the

discussion, and we will even be doing instant polling of

participants' opinions and tabulating the responses to provide

immediate feedback," Hampton said. 

The 2003 HSMAI eConference series of one-hour "live" and

interactive events scheduled to date includes:          

- Thursday, February 6, 2pm (EST) 

Revenue Management 

"Introduction To Advances In Revenue Management" 

Presented by revenue management expert Steve Pinchuk, founder, Profit

Optimization Strategies

The one-hour program will feature key considerations in developing

and deploying advanced revenue management strategies and tactics.

Participants will be able to view

the visual portions of the presentation by logging-on to the

Internet, and they can hear the audio portions by dialing into an

audio conference call.             

Information will provide key insights on understanding basic revenue

management and the tools that can be used to leverage its impact and

controls.  An excellent orientation for both the leaders and staff of

hospitality organizations responsible for revenue management,

marketing, pricing and distribution, it will enable them to learn new

skills for integrating and applying revenue management principles

into strategic decision-making processes.

- Thursday, February 13, 2pm (EST) 

Online Marketing 

"Segmentation and Revenue Management on The Internet" 

Presented by Spencer Rascoff, founder and vice president, Hotwire

This session investigates the characteristics and unique attributes

of buyers that must be considered when selecting Internet channels

that optimize reach to the broad range of global markets.

Understanding the importance of driving revenue and optimizing

top-line returns for marketing initiatives, this presentation

highlights the options and alternatives that are available to best

reach decision-makers in leisure, business and group sectors.

Attention is focused on identifying and targeting incremental

customer purchases and developing long-term relationships that

generate repeat business.  Participants will also hear ideas for

taking advantage of the benefits of onward distribution and tactical

approaches for differentiating pricing by customer types and channel

types.

- Thursday, February 20, 2pm (EST) 

Sales Strategies and Tactics 

"Booking More Business Through Consultative Selling" 

Presented by Howard Feiertag, CHME, lecturer, Virginia Polytechnic

University

This session concentrates on the evolutionary role of the salesperson

as impacted by changes in the global marketplace, the economy, and

the dynamics of intensifying competition.  More than ever before,

its' vital for those supervising the sales staff to focus on the

continuing development of the sales force in order to reduce turnover

in the ranks and to increase bottom line results.  The discussion in

this presentation highlights the shifting responsibilities of the

salesperson, and integrating consultative approaches to fostering

prospect and client relationships. 

Feiertag shares his insights and recommendations for incorporating

proven methods for achieving greater sales results through

supervising, motivating and providing direction to the sales team as

they transition to utilizing the consultative methodologies. 

Additional eConference seminars will include:

Tuesday, March 4: "Time and Task Management" 

Dr. Gayle Carson, president, The Carson Institute

Tuesday, March 11: "Key Account Maximization" 

Barb Taylor Carpender, president, Taylored Training

Thursday, March 20: "Selling to the Wedding Market" 

Nelson Clark, president, Weddings On Location

Thursday, March 27: "Optimizing Sales Office Performance" 

Chris O'Donnell, president, CJO Group

Thursday, April 3: "Building Instant Prospect Rapport via

NLP" 

Ed Iannarella, president, Stonehenge Consulting

Friday, April 11: "Prospecting and Gaining Referrals" 

Dr. Judy Siguaw, professor, Cornell University

To register and participate in an HSMAI eConference seminar, visit

the HSMAI web site at www.hsmai.org, click on the Education and

Events link and complete the participation form; or, call toll-free

877-432-7301.  The registration fee is $69 for HSMAI members and $89

for non-members per log-on site, which allows an unlimited number of

participants at one location viewing a single computer with one

dial-in audio conference

connection.

Once a participant is registered for a particular seminar, detailed

step-by-step instructions on how to participate are provided.  HSMAI

is an organization of sales and marketing professionals representing

all segments of the hospitality industry.  With a strong focus on

education, HSMAI has become the industry champion in identifying and

communicating trends in the hospitality industry, while operating as

a leading voice for both hospitality and sales and marketing

management disciplines.  Founded in 1927, HSMAI is an individual

membership organization comprised of nearly 7,000 members from 35

countries and 60 chapters worldwide.

For more information on HSMAI contact the Hospitality Sales &

Marketing Association International, 8201 Greensboro Drive, Suite

300, McLean, VA 22102, phone (703) 610-9024; fax (703) 610-9005.  You

can also visit the web site at www.hsmai.org. 

HSA International provides traditional and online learning programs,

as well as mystery call services to monitor and provide feedback on

the performance of reservations agents, front desk personnel, PBX,

group sales and marketing, catering and others responsible for

handling inquiries and sales-related calls. HSA International can be

reached at 954-432-7301 or at www.hsa.com.

Introducing the world’s first awards in hotel housekeeping

Miss Brigitte Verba, Housekeeping-Book-Author and Executive Housekeeper to leading Cruiselines for many years, proudly announces the World's First Awards in Hotel housekeeping for Hotels on Land - and for the Cruise Industry.

Having been dedicated to Housekeeping for more than 14 years, Miss Verba took a sincere interest in studying the marketing tools the Hotel and Cruise industry applies in the marketing of Housekeeping Services.

The result shows that to date Housekeeping Marketing concentrates on promoting the luxuriously furnished Interior of a Hotel or Cruise ship: The Housekeeping Teams involved in preparing the most impressive interiors for sale by 'keeping them clean and maintaining their investment value' is still kept in the background.

It was mostly a recognition within the company which Housekeeping Teams would gain for their special efforts in the hotel business.

With competition rising rapidly, it is time to take advantage of a healthy - and interesting - change:

For the first time ever ETAGE EXCLUSIVE offers official recognition to Housekeeping Teams worldwide, both on land and at sea, whose level of training and service quality meets the high standards suggested and tested by the director of the project herself, Miss Brigitte Verba. The procedure of applying for an Award suggests fairness and success:

'ETAGE EXCLUSIVE Glacés' - the carefully selected synonym for 'White Gloves' which many Housekeepers still use to check the cleanliness of their Suites - are awarded on five different levels of professional knowledge.

The contents of the Glacé testing is being submitted before the actual Glacé testing takes place - in theory and on-the-job.

Miss Verba admits that '...the interest hotels worldwide are showing in this unusual project is not unexpected. It clearly shows that ETAGE EXCLUSIVE is about to rapidly develop into the most powerful motivational tool available to Hotels and the Cruise Industry - combining both a fair Testing of a Housekeeping Team's professionalism and a chance to 'fill in those quality gaps' without investing extra time and money into training.

Now that we are able to award Quality Housekeepers with up to five Glacés - where do Hotels and Cruise ships stand when it comes to marketing their efforts?

Miss Verba: 'ETAGE EXCLUSIVE Glacés are vital part of the company's marketing activities. Thus, for the first time ever, hotels and cruise ships will not just promote their 'hardware' (Suites and Staterooms) - but also their 'human software' in a most visible and official way, guaranteeing that tomorrow's guests will appreciate this new Sign of Quality.'.

ETAGE EXCLUSIVE is often compared to a 'Gault Millau or a Michelin in Hotelhousekeeping'. However, Housekeeping Quality can not rely on people's 'personal tastes in cleanliness and guest services'.

ETAGE EXCLUSIVE therefor assigns experienced Housekeeping Professionals to meet with the company's Executive Housekeeper, discuss the features of the Glacé Testing - and adapt the contents of the test to the need of the hotel: ETAGE EXCLUSIVE really is a choice to be made or - a chance that is missed

For those who have made their choic:

Arrangements for a Glacé Testing outside Europe should be made 4 weeks in advance. Once the application has been processed, applicants will be given access to the full Glacé Testing questionnaire and your own preparations for the Glacé Testing can take place immediately.

  Applications are best sent to: Miss Brigitte Verba, EMAIL etageexclusive@web.de.

Raffles International Hotels named World’s best by prestigious travel magazine

Raffles International Limited welcomes the New Year on a high note with eight Raffles International hotels honoured as best hotels in the world by top prestigious travel magazines, Condé Nast Traveler and Travel + Leisure in their respective January 2003 issues. The Group continues its winning streak after its hotels reaped in a bumper crop of 35 awards and accolades in the year 2002.

The eight award-winning hotels under both the Raffles and Swissôtel brands are the following:

Raffles Hotel, Singapore

Raffles Grand Hotel d’Angkor, Siem Reap, Cambodia

Raffles L’Ermitage, Beverly Hills, California, USA

Raffles Brown’s Hotel, London, United Kingdom

Swissôtel Lima, Peru

Swissôtel The Bosphorus, Istanbul, Turkey

Swissôtel The Watergate, Washington D.C., USA

Swissôtel Chicago, USA 

Raffles International’s hotels and resorts are marketed under a two-tiered brand structure, the luxury “Raffles” brand and the deluxe “Swissôtel” brand. The honours accorded by readers of two of the most highly esteemed travel magazines on hotels under both the Raffles and Swissôtel brands are a confirmation not only Raffles International’s operational prowess in managing its hotels but of its strength as a masterbrand and efficacy of its brand strategy.

The Condé Nast Traveler’s Gold List ranks the best hotels, resorts and cruise lines around the world. More than 29,000 subscribers of the prestigious travel magazine vote the hotels based on criteria such as location, activities, service and guestrooms. Similarly, Travel + Leisure magazine surveys its subscribers and asks them to rate the various elements of their travels, from hotels to spas to cruise lines. Travel + Leisure’s 500, is the magazine’s guide to the best hotels in the world and the list comprised 500 hotels that received the highest overall ratings from the 2002 World’s Best Awards survey.

Listed on Condé Nast Traveler’s 2003 Gold List were:

Raffles Hotel, Singapore

Raffles Grand Hotel d’Angkor, Siem Reap, Cambodia

Raffles L’Ermitage, Beverly Hills, California, USA

Swissôtel Lima, Peru

Raffles Brown’s Hotel, London, United Kingdom (Reserve List)

Service was cited as the winning factor for all Raffles International hotels on the Gold List. The magazine’s readers distinguished Raffles Hotel, Singapore as a hotel where “the warm and generous staff pays attention to everything”; making it the sixth straight year the hotel has been on the list. Raffles L’Ermitage, Beverly Hills, which was also accorded the Five Diamond Award by the American Automobile Association and Five-Star Rating by Mobil Travel Guide for both 2002 and 2003, was named for its “discreet yet efficient staff” who “can handle almost any request”; while the staff at Swissôtel Lima, Peru “pay close attention to the needs of guests”. Readers said the service at Raffles Grand Hotel d’Angkor in Siem Reap, Cambodia is “what you dream of”.

Aside from being honoured by Condé Nast Traveler, Raffles Hotel, Singapore and Raffles Grand Hotel d’Angkor, Siem Reap, Cambodia were also included in the exclusive Travel + Leisure’s 500 Greatest Hotels in the World list for 2003. Three other hotels in the Raffles International stable were cited and are from the Swissôtel brand:

Swissôtel The Bosphorus, Istanbul, Turkey

Swissôtel The Watergate, Washington D.C., USA

Swissôtel Chicago, USA

On the corporate front, in 2002, Raffles International and Raffles Holdings also received several local and international awards and accolades. Germany’s Key Daily Newspaper, DIE WELT, named Raffles International as one of the World’s 10 Best Hotel Chains. Raffles Holdings took Securities Investors’ Association of Singapore’s Most Transparent Company Award (Hotel Category) and was named 2002 Distinguished Patron of the Arts Award, National Arts Council.

About Raffles International

Raffles International Limited, formed in 1989, is a name well respected in the industry for its standards of quality, award-winning concepts and innovative approach towards hotel management.

Raffles International’s hotels and resorts are marketed under a two-tiered brand structure. The “Raffles brand” hotels distinguish themselves by the highest standards of products and services available in major cities on an international level. The “Swissôtel” hotels offer quality accommodation and the full range of modern facilities and amenities expected by today’s discerning traveller, with an emphasis on quality and comfort. Many hotels in the Raffles International portfolio have been voted top hotels in the world. These include the legendary Raffles Hotel, Singapore, Raffles Brown’s Hotel, London, Raffles Hotel Vier Jahreszeiten, Hamburg, Raffles L’Ermitage Beverly Hills, California and Le Montreux Palace, Montreux.

Raffles International also operates one of the largest spa networks in the world – Amrita Spa – which is found in 10 locations, including Raffles L'Ermitage Beverly Hills in California, Swissôtel Quito in South America and Le Montreux Palace in Switzerland; as well as the SPAcademy, Singapore's premier spa education and skills training institute. The Raffles International Training Centres in Singapore and Phnom Penh offer training programmes for the hospitality and service industry.

About Raffles Holdings and CapitaLand

Raffles International Limited is the hotel management subsidiary of Raffles Holdings

Limited. Raffles Holdings Limited’s portfolio comprises hotels and resorts in major destinations across Asia, Australia, Europe, North America and South America. Raffles Holdings is a subsidiary of CapitaLand Limited. Both companies are listed on the Singapore Exchange Securities Trading Limited.

CapitaLand is one of the largest listed property companies in Asia. Headquartered in Singapore, the multi-national company has property and property-related services focused in select gateway cities in Asia, Australia and Europe. CapitaLand’s hospitality businesses, in hotels and serviced residences, span more than 50 cities around the world. 

Its business interests cover commercial and industrial buildings, residential properties, property funds, real estate financials and property services, besides hotels and serviced

residences. CapitaLand also leverages on its significant real estate asset base and market knowledge to develop fee-based products and services.

Given its scale, scope of services and geographic spread, the company’s core assets are its

people – a strong international management team and a dedicated, professional staff. CapitaLand believes in developing the best people to deliver the best products and services; in other words, building people who build for people.

Albania: Work on completion of tourism map onwards

(ATA) - By Violeta Shqalsi: Completion of the map on tourism zones, which will include new zones, is one of the key objectives of the program adopted by the Albania's tourism directorate for 2003.

Specialists of this directorate report the map will be accompanied by indexes on zones of family tourism development, modern tourism complexes, fish farming and hunting zones, and other elements. Tourism development masterplans will be attached to the map, co-ordinated with the urban plans on territory management, continuous observation of investing projects and creation of touring complexes

Japan as tourist magnet

More openness and hospitality would help a lot. Does Japan offer a magnetic attraction to foreign tourists? The answer, regrettably, seems to be no. Although about 16 million Japanese go abroad every year, only 5 million foreigners visit Japan. Japan gets far fewer foreign visitors than such tourist attractions as France, the United States and China. Japan is also behind neighboring South Korea in the tourism race. The government hopes to change that, making Japan a more popular tourist destination by trying to balance the flow between tourists coming in and tourists going out. Prime Minister Junichiro Koizumi intends to create a private-sector advisory panel to help with the promotion effort.

The government, struggling to pull the economy out of its long slump, has plenty of reasons to seek more foreign visitors, which translates to revenues and jobs. Japan's reputation as a tourist destination is far from great, as seen in the results of a recent survey in key countries, conducted by the Ministry of Land, Infrastructure and Transport, which also solicited opinions from experts in tourism including those in airline industry. Survey respondents complained about the lack of tourist information, time-consuming entry formalities, poor access to airports, high prices and extra charges and poor service at accommodations. Some also noted that Japanese towns are untidy and not very charming. The challenges are quite clear. The government needs quick action, addressing the easiest problems first.

One reality, however, is that many of the problems, including the high cost of travel, are difficult to solve by government initiative. The tourism industry and local governments must assume the key roles in addressing these challenges. And the government should concentrate on improving the climate for business and local government efforts to expand tourism, such as stepped-up promotion campaigns abroad and more easily understood road signs. It would be wise to abandon the tradition of using public works programs to build roads and other facilities in the name of promoting tourism. Another, more fundamental problem is that Japan has never been particularly enthusiastic about presenting its cultural heritage to foreign audiences by trying to preserve valuable landmarks or townscapes or traditional performing arts, for instance, or about being more hospitable to foreign visitors.

Japan became an economic power by expansion of trade and other economic ties abroad. But our trade partners have consistently said Japan does not demonstrate its unique character. The wide gap between the number of Japanese who travel abroad and foreign tourists coming to Japan is just one consequence of this perception. Last autumn, the Japanese Association of Corporate Executives (Keizai Doyukai) compiled proposals for making Japan more attractive to tourists, students and workers from abroad. The association said prejudice and the insular nature of our highly homogeneous country restrict efforts to make Japan more appealing to foreigners. Considering geography and economic circumstances, tourism from other Asian nations is most likely to grow in the years ahead. But the government places heavy restrictions on visits by people from China, for instance. Chinese tourists can come only in groups, and visas are issued only in designated areas, such as Beijing or Shanghai. Such restrictions are intended to keep out criminals and illegal workers. But they clearly show the government's strong interest in playing it safe by avoiding all potential risks, rather than by welcoming foreign visitors. The government should address any increase in crime by enhanced law enforcement. The fundamental element in increasing the pull of Japan as a tourist magnet for foreigners is a willingness to open the country.

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