Opportunities Today :- April 2006 Issue

Interview with Roland Jegge Vice President (Asia Pacific) for World Hotels

 

Roland Jegge is the Vice President (Asia Pacific) for WORLDHOTELS.  Recently, Roland was in India and he spoke to our Editor about the future goals and aims of WORLDHOTELS including their expansion plans in India.

 

Roland, what brings you to India and what are your plans of expansions in India?
We are here on a Sales mission along with three of our hoteliers from Milan, Beijing and Dresden as well as our sales team from Singapore to communicate our WORLDHOTELS Sbrand and meet travel agents in Delhi, Bangalore and Mumbai. We are also launching a booking competition for travel agents using the Amadeus system for 3 months with great prizes to be won by travel agents who do the hotel bookings for the WORLDHOTELS chain of hotels. We have a single master chain code “EW” on the GDS system which signifies Exclusively WORLDHOTELS. We are also sharing with the media information of our new name WORLDHOTELS which was formerly known as Steigenberger Reservation Service or SRS Hotels for over 34 years.

 

How many hotels of WORLDHOTELS are there in the Asia Pacific region?
We have 81 hotels in the Asia Pacific region, 10 are in Australia and almost 30 are in China. We are in Japan, Thailand, Singapore, Malaysia and Korea. In Thailand we have 14 hotels which include the Amari group that joined us last year.

So we are well present up to the Maldives. In India, we are looking for hotels and that's one of the other reasons for my visit here in India to find suitable member hotels in India. Overall we have 500 member hotels in 70 countries and we serve 250 destinations worldwide.

 

Have you identified where you plan to have hotels in India?
We are looking at the two core cities Delhi and Mumbai and in the second tier we are looking at Goa, Bangalore and Chennai.

 

What is the client profile?
60% are corporate travellers out of which over 80% of the bookings are done by travel agents. We also have the high yield leisure travellers and a lot of business travellers also link a couple of days of their holidays to their business trip, so that's one of the part of the business with the leisure travellers. We also have the retired market especially from America and Europe. 5% of the travellers are from the MICE segment.

 

Tell us how did Worldhotels evolve over the years.
WORLDHOTELS started as SRS or the Steigenberger Reservation service, which was primarily a booking referral system way back in 1970 in Frankfurt, Germany. This was founded by Egon Steigenberger who was the owner of the largest German hotel chain at that time. Initially, we were just doing bookings and later we felt that if we do sales we would get more bookings and we actually found out that hotel sales team had good contacts locally but it was very difficult for the sales team to offer long haul markets. There was also a need for GSA services and that's how we thought of having sales offices. Today we have 30 sales offices. If a you are a member of WORLDHOTELS, you have access to these 30 sales office and generate business, be it MICE, incentives or be it contracts with multi-national companies or be it e-commerce partners for different markets.


This is where we are strong and we pride ourselves in giving hotels the same support like a Starwood, a Hyatt or a Hilton with the electronic distribution system. Today, we are not only a global services and marketing company but also we offer procurement and training for our chain of hotels. The reason for changing the name from SRS WORLDHOTELS to WORLDHOTELS is to have a comprehensive brand of what we represent and it gets easier to incorporate our hotels in the GDS system as well.

 

How has WORLDHOTELS done in the last year?
The sales revenue in 2005 has increased by 16%, the room rates have only gone marginally up by USD 3 dollars across all categories. 60 new hotels have been added. Our efforts are now very much on India and we are talking to some small regional hotel groups and independent hotels to offer 1000 rooms in India by next year.

The room nights have gone up to 1.1 million rooms.

 

What are the categories of hotels you handle?
We have classified our hotels into three categories - the Deluxe Collection for the five star segment, the First Class Collection for the four star and the Comfort Collection for the 3½ star.

 

What is your USP?
Our hotels are unique and independent. Every hotel keeps its independent name and the owner expresses something personal through the hotel property. We do have the three tiers - we have hotels for each category and every budget and for every tier the quality assurance is very strict, so you will find the best 5 stars in the deluxe collection, the best 4 stars in the First class collection and so on. So when you see our directory, website www.worldhotels.com or access the GDS, though all are commonly under the WORLDHOTELS brand, you can choose whether you want the Deluxe, First Class or the Comfort collection.


Our new logo of dark burgundy and orange highlights our core values which include excellence, reliability, openness, genuineness, approachability and contemporary. This new logo was designed after an independent survey was carried out by Enterprise I.G. to get feedback from our customers about their experience they had with WORLDHOTELS.

 

What is the operating strategy of WORLDHOTELS?
WORLDHOTELS really operates like the chains. If the hotel owner appoints Starwood or Meridien or Intercontinental, they would give 30 odd sales offices, state of the art distribution system. They would also give frequent flyer partnerships, global alliances, marketing partnerships. We do exactly the same. The difference is that with WORLDHOTELS, the hotel will retain their own name in their local market thus maintaining its uniqueness and independence. The owner can run the hotel as he would like to run it . The only thing we make sure is that the quality standards are stringent and are maintained with a level of consistency.

 

So how do you help these independent hotels to compete with the chain hotels?
We do contracting with corporates and large travel agency chains. We do strategic partnerships with large credit card companies, with rent-a-car companies and with airlines. We do e-commerce strategy with web based travel agents who are brokers and who send customers to our hotels. To ensure credentials of the web based agents, our representative offices contact them first and meet them and once we are convinced we forge alliances with them so that they could book the clients with us. We help in the growth of incentive business and here I know that India has tremendous potential for the incentive markets especially close by in South Asia. We do road shows and trade shows, the recent one being our participation at ITB, Berlin where we had a large booth.

 

Our head office is in Frankfurt, Germany and our Asia Pacific regional office is in Singapore where I am located and in New York we have our regional office for America. So through the head office and regional offices, we coordinate with our other sales offices. In India, we have a toll free reservation line where you can make the reservations and the calls are handled by our Singapore call centres and after office hours it goes to the European reservation desk. We also have a representative office who does the mailing for us and operates out of Mumbai.

 

How do you plan to meet the challenges of distribution?
Technology has changed rapidly over the years and we are connected to all the GDS systems and over 600000 Travel Agents around the globe with fresh inventory and fresh rates. Everything is live. We also have toll free lines and one can do online bookings through our website. We are the first consortium of independent hotels to have an umbrella code EW on the GDS. 3 of our clients have a own GDS access code, such as the Stamford Hotel group in Australia.


We also do promotions with American Express or BTI. We have recently launched fantastic promotions for Indian travel agents jointly with Amadeus so that they can win digital cameras, they can win trips - there are two tickets on offer on Malaysian Airlines with one week stay in our hotel property. It has been recently announced and we expect a very good response. We are also looking at a global P.R. network so that more people know about our products.

 

We are the preferred hotel chain for American Express and Carlson Wagonlit. One of the major incentives for travel agents is that we pay commissions twice a month in the local currency or a common currency like the US Dollar instead of the agent receiving multiple cheques in multiple currencies. We have just implemented the best available rate with a guaranteed rate assurance on the GDS system.

 

What kind of experience can one expect on choosing to stay at WORLDHOTELS?
We are about choice, quality and people. We bring unique hotels and people together. We not only represent the 5 star or 6 star hotels and the family run 3 ½ star hotels. Let's start with the deluxe collection where some of the hotels are historical landmarks such as the Grand Visconti Palace Hotel in Milan. A two year hotel which was a former mill and later transformed into a hotel located in the heart of Milan, Hotel de Sers is the new boutique hotel in Paris just off the Champs Elysées. Another fine hotel is the Loong Palace Hotel and Resort in Beijing and the newest hotel in Hong Kong is the Langham Place Hotel, a 5 star property which is a very hi-tech hotel.

 

Then we have the Empire Hotel and Country Club in Brunei which we acquired last year and is a 7 star resort in Brunei with palatial villas and suites on the beachfront.In the First Class category, there is the Myhotel Bloomsbury in London which is very hip and trendy, the Steigenberger Hotel de Saxe in Dresden is the newest property which will start in April this year and the Cliffs at Peace Canyon in Las Vegas also is well known in the First Class category. There are boutique hotels such as the Seagull Hotel in Shanghai with a super dramatic view of the Huangpu river.

 

In the Comfort Class of Hotels we have a wide chain of Inter City Hotels across Germany for the upcoming FIFA World Cup. Most of the hotels in Germany are conveniently located near the railway stations, as you know that the stations in Europe are normally located in the heart of the city. These hotels are normally 3½ stars and they give a free pass to use the public transport and the trams within the city. So it's a fantastic way to discover Germany.

 

In Australia we represent the largest luxury group of hotels - the Stamford Hotel group across Australia. Besides, Europe and Asia Pacific, we are very strong in America, with 15 hotels in New York. We have a very good percentage of US travellers who stay at WORLDHOTELS and book electronically. Our guests can redeem frequent flyer miles - We have tied with 12 different airlines ranging from ANA, Lufthansa, Thai Airways, Malaysian Airlines, Delta, United Airlines and American Airlines to name a few. We are hopeful of tying up with Indian partner airlines as well. We also have partnerships with AVIS car rental company.

 

What is the response from your visit and interaction with the travel trade in India?
We've organized events in Delhi, Bangalore and Mumbai and interacted with agents and the response has been spectacular. We have got lot of requests for incentives, meetings and groups from this market and a very positive response for the Amadeus promotion as well as for our new brand WORLDHOTELS. I will be back in India in April for the Hotel Investment Conference and I will be coming back later as well to seek partnerships in India for WORLDHOTELS.

 

Look out for more information on K+K Palace Central, a First Class Collection of WORLDHOTELS located in Prague, Czech Republic, in our forthcoming issue of OPPORTUNITIES TODAY…