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Transcript of International Tourism Management WiSe 2007/2008 Introduction – Hospitality.
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• International Tourism Management WiSe 2007/2008
Introduction – Hospitality
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Content
Hospitality and Management: Knowledge, Experiences, Expectations
Everchanging Tourism – Basics of HospitalityExpansion strategies in international hotel operation Management in hospitality Marketing in hospitality Production and Management in hospitalityControlling Brand-building in hospitalityWellness in hotelsStarting a business in the hospitality sector
AbbrevationsSourcesInternet adresses
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Cowboys
„The travel industry, according to everybody outside it, is run by cowboys. Despite the abundance of professionally run companies, both big and small, the perception is still that holiday firms rip off unsuspecting customers. …
But the biggest problem is that operators are often selling a product where the gap between perception and reality is huge. Mass-market holidays are often sold as a dream vacation when they are often anything but.“
(Quelle: www.travelmole.com Issue 226 (Sept. 2002), zitiert in Page 2003)
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Customer
potential Competitors
Substitution markets (Leisure, Consumption)
Concentration process
New
technologies
worldwide CRS/GDS
Internationa- lisation of competition
End of closed shop distribution
agreements
Positioning of Travel
agencies
Less severe price fixation
Changes in Leisure
behaviour pattern
uncommitted income
development
Income and
Wealth development
speeding up of life
Internationalis
ation of customers
changed consumption
patterns / values
soziodemo- graphic
development
Producers of services
- Hotels - Restaurants - Attractions - Transport - Excursion programs etc.
Tour Operator
Travel Agency
Demand Side
Supply Side
General development Tourism market
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Economic importance of hospitalityGermany (DeHoGa, 2004)
Employees Total, of whichAccomodationFood and beveragesCanteen, catering services
1.002.000321.000598.000
83.000
Apprentices, Total, of whichCook, Restaurant/Hotel/Hotel economics expert, Expert for system gastronomy
97.126
Hospitality companies Total, of which Accomodation Food and beverages Canteens, catering services
247.86148.543
190.7608.558
Turnover Total, of which Accomodation Food and beveragesCanteens, catering services
55,1 Mrd. €18,4 Mrd. €32,6 Mrd. €
4,1 Mrd. €
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Segmentation hospitality
hospitality (Major company goal)Profit-orientated, main source of income, open to everybody, for longer period
Pub (Schankwirtschaft) Restaurant (Speisewirtschaft)
Accomodation company (Hotel, Pension, B&B etc.)
Drinks are offered and are consumed on the
premises
Food is offered and consumed on the
premises
Guests are accomodated
hospitality (Minor company goal)Hospitality part of a non-hospitality company, or non-profit hospitality company, offering services for social, political or religios purposes, not necessarily open for everybody
Railroad workers holiday home
Union home „Müttergenesungswerk“
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Segmentation Food and beverages Restaurant companies (Bewirtungsbetriebe)
Entertainment companies (Unterhaltungsbetriebe)
– Restaurant– Non-licenced Restaurant– Vegetarian / Vegan Restaurant– Pub (Wirtshaus)– Café– Railway station Restaurant– Highway Restaurant– Fastfood Restaurant– System gastronomy
– Bars– Dance Clubs– Discotheks– Night Clubs– Cabarets– Varietés
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Segmentation Catering/Restaurants Service gastronomy
(Versorgungsgastronomie)Experience gastronomy (Erlebnisgastronomie)
– Train station Restaurants – Motorway Restaurants– Snack bar / Take away– Kiosk (Trinkhallen)– Fast-Food Restaurant– Cafés without seating– Juice bars– Sandwich Shops– Milk bars– Canteens– Catering (Banquet and Parties,
Industrial, Event)– System gastronomy
– Ethnic Restaurants– Bars, Dance and Entertainment
clubs– Diskotheques– Bistros– Pubs– Rock-Cafés– Performing art clubs – Video and Karaoke parlours– Ice bars– Cafés– Local style restaurants
(Gastwirtschaften)– Beer gardens – Heurigen Restaurants (Strauss-
und Besenwirtschaften)
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Segmentation Accomodation companiesHotellerie = Traditional Accomodation
companiesParahotellerie = Additional Accomodation companies
– Hotel (Individual, Chain)– Hotel Garni– Hotel pension– Pension– Road side hotel (Rasthof)– Rural hotel (Gasthof)– Motel– Motorway hotel– Wellness hotel– Aparthotel / Boardinghouse– Hospiz
– Appartement– Holiday resorts– Holiday flats / houses– Youth Hostels– Farm– Camping, Caravaning– Holiday camp– Homes of Associations (Vereinsheime) – Guest houses– Recuperation institutions (Sanatorien)– Bed & Breakfast– Private rooms– Collective forms of accomodation like
hay hotels– Ski and hiking huts
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Definition Accomodation companies • In Germany: „Ein Hotel ist ein Beherbergungsbetrieb mit
angeschlossenem Verpflegungsbetrieb für Hausgäste und Passanten. Er zeichnet sich durch einen angemessenen Standard seines Angebotes und durch entsprechende Dienstleistungen aus.“ (DeHoGA und DTV)
• Necessary conditions:– At least nine guest beds – Majority of rooms with en suite bath and toilet– Reception existing
• Parahotellerie– Others form of accomodation (can be commercial or non-commercial)
• Commercial accomodation companies have to be– Profit-orientated, main source of income, open to everybody, for longer
period
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Actors in the accomodation market • Structural forms in accomodation market
– Individual hotels– Chain hotels– Franchise hotels– Management hotels– Leased hotels– Cooperation hotels
• Cooperations – For instance Best Western, Ringhotel, Romantic-Hotel
• Reservation service companies– For instance Utell, HRS, hotel.com
• Marketing rings– For instance Summit Int., Preferred Hotels, Relais & Châteaux, Four
Seasons, Leading Hotels of the World
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Systematic view on company forms
Hotelunternehmungen
Individual hotels
Branded hotels
Hotel Cooperation
Chain hotels
Branch system
Franchise system
Conglomerate
One unit Several units
Legally and commercially independent hotel company
Horizontal cooperation of legally and commercially independent hotel companies
Unified company with several non-independent branch hotels
Vertical association of legally and commercially independent hotel companies
Legally independent hotel companies under unified leadership
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Branded hotels Hotel brand in Germany – some examples (2004)
Nr. Company Brands No. of hotels in Germany
No. of hotels internationally
1ACCOR Hotellerie Deutschland GmbH
Etap, Formule 1, Ibis, Mercure, Novotel, Suitehotel, Sofitel
278 3.916
2ArabellaSheraton Hotelmanagement GmbH
ArabellaSheraton Hotels & Resorts (18), Four Points Hotels (6), The Luxury Collection (8)
19 13
3 ARKONA AGArkona (5), A-ROSA (1), Steigenberger (5)
10 1
4CHOICE Hotels Germany GmbH
Clarion (2), Comfort (31), Quality (24)
57 4.810
5DERAG Hotel and Living AG
Derag Hotel and Living 9 1
6 DORINT AG Dorint Hotels & Resorts 79 17
7FOUR SEASONS Hotels & Resorts
Four Season Hotel 1 59
8GOLDEN TULIP Hotel, Inns & Resorts B.V.
Golden Tulip Hotels (15), Tulip Inns (5)
20 242
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Nr.
9 HILTON International Hilton (14), Scandic (3) 17 400
10Hospitality Alliance AG; siehe auch MARRIOTT International, Inc.
Ramada-Treff (42), Treff (17), Ramada (8), Ramada Plaza (4) 72 10
11HYATT International Hotels & Resorts
Hyatt Regency (2), Park Hyatt, Grand Hyatt 4 210
12 IFA Hotel & Touristik AG IFA-Hotels 4 16
13INTERCONTINENTAL Hotels Group
InterContinental (5), Crowne Plaza (7), Holiday Inn (49), Express by Holiday Inn (8)
69 3.454
14JOLLY Hotels Deutschland GmbH
Jolly Hotels2 50
15 KEMPINSKI AG Kempinski Hotels & Resorts 12 22
16MANDARIN ORIENTAL Hotel Group
Mandarin Oriental1 20
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Nr.
17MARITIM Hotelgesellschaft mbH
Maritim 36 9
18
MARRIOTT International, Inc.; siehe auch: TREFF Hotels AG Services & Reservations
Marriott (9), Courtyard by Marriott (15), Ramada (4), Renaissance (9), Ritz Carlton (2)
39 2.600
19MÉRIDIEN Hotels Deutschland GmbH
Le Méridien 7 143
20MILLENNIUM & COPTHORNE Hotels Ltd.
Millennium Hotels, Copthorne Hotels
2 91
21MINOTEL Deutschland e.V.
Minotel (63), Suntime (6) 69 514
22
MÖVENPICK Gesellschaft für Hotel- u. Restaurant-betriebe u. -beteiligungen mbH
Mövenpick Hotels & Resorts 13 37
23NH HOTELES Deutschland GmbH
NH Hotels 52 196
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Nr.
24NIKKO Hotels International
Nikko 1 51
25PARK PLAZA Germany Holdings GmbH
Park Plaza (6), art‘otels (3) 9 >100
26QUEENS Gruppe Deutschland
Queens Hotels (8), Holiday Inn (16)
24 69
27RAFFLES International Ltd.
Raffles, Swissôtel (2) 3 33
28RELAIS & CHÂTEAUX Deutschland
Relais & Châteaux 29 441
29 REZIDOR SAS HospitalityRadisson SAS (16), Country Inns & Suites by Carlson (2), Park Inn (6)
25 868
30RIMC International Hotel Resort Management and Consulting GmbH
RIMC-Hotels, Golden Tulip, Tulip Inn, Quality Choice
17 2
31 ROBINSON CLUB GmbH Robinson 1 24
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Brand cooperations Hotel cooperations in Germany (2004)
Nr. CompanyHotels
GermanyHotels
internationally
1 AKZENT Hotelkooperation GmbH 58 0
2 BAYERWALD Hotels 9 0
3 DESIGN Hotels 8 108
4 FAMILOTEL AG 21 14
5 FLAIR Hotels 132 13
6 „HOTEL‘S MIT HERZ“ GmbH Hotelkooperation 36 2
7 EUREGIO BODENSEE e.V. Hotelkooperation 101 27
8 MINOTEL Deutschland e.V. 69 514
9 MÜNCHNER HOTEL VERBUND GmbH 42 0
10 RELAIS DU SILENCE – Silencehotels D. GbR 37 229
11 RINGHOTELS e.V. 155 0
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Nr.
12 ROMANTIK Hotels & Restaurants GmbH & Co. KG 88 99
13 SMALL LUXURY Hotels of the World Ltd. 3 305
14 SRS Hotels Steigenberger Reservation Service GmbH & Co. KG 106 350
15 SUPRANATIONAL Hotels k.A. 750
16 The LEADING Hotels of the World Ltd. 25 390
17 THEATER-Hotels Deutschland e.V. 8 0
18 TOP INTERNATIONAL Hotels GmbH 90 60
19 VIABONO GmbH 230 0
20 WELLNESS-Hotels Deutschland GmbH 43 0
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Forms of segmentation of hotels• Completeness of services offered
– Hotel, Hotel Garni, Full hotel• Location
– City, Resort etc.• Connection to transport infrastructure
– Motel, Airport hotel• Quality
– Star rated, other categories • Duration of stay
– Hours, days, weeks, seasons• Legal form of company
– Single company, Limited, etc.• Size of company
– Individual hotel, family hotel, chain hotel, major hotel• Profit orientation
– Profit-orientated, non-profit-orientated, communal, social institution, learning hotel, minor part of company
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Different types of accomodation• Class L – Luxury hotels
– Hotel, Congress hotel, All-Suite-Hotel– Accomodation, breakfast, food and beverages offered – International Standard, luxurious, modern– Greetings of guests in front of the house – High level of technical and personal services– Meeting point, modern communication equipment– Outside Germany often big shopping center included – Price high
• Class 1 – First Class Hotel – Convention hotel– Accomodation, breakfast, food and beverages offered – High Standard of comfort – Good level of technical and personal services– Price medium to high– Mostly large number of beds, chain hotels
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• Class 2 – Middle class hotel, Aparthotel– Accomodation, breakfast, food and beverages offered – Practical, solid level of basic services– Price medium
• Class 3 – Hotel Garni– Accomodation and breakfast, only some food and beverages only for guests– Little city hotels, not much staff, often family run– Price lower medium
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• Class 4 – Pensions, Hotel pensions– Accomodation and breakfast for longer stay guests, fixed menu food at
specific times – Simple, no special comfort, often close to spa institutions– Without special services– Prices dependent on length of stay
• Class 5 – Rural hotel „Gasthof“– Mainly restaurant, few beds mainly for restaurant guests– Simple, rural, no special comfort– Often family run with own butcher or fish farm – Price low, except Star-restaurant places
• Others – Motels, Resorts, Highway hotels, holiday homes etc.
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Hotel classification – a critical view
CountryOfficial Hotel classification
Level Compulsory Controlled by
Belgium Y National Y Government
Germany Y National No Association
Finnland No - - Government
Italy Y 21 regional systems Y -
Malta Y National Y Association
Schweiz Y National Y for members Association
Spanien Y Regional Y Government
UK Y four regional Systeme No
Automobil clubs and
Government
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System of German hotel classification • Why Classification?
– Better sales, better product positioning – Reliable quantitative indicator for potential guests– Better categorization of services offered (not: quality of services)
• German hotel classification of DeHoGa– Since 1996 unified German system – Evaluation of objective, not subjective criteria– Enjoys legal brand protection
• Development of criteria– By sub-group hotels of DeHoGa
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• Basics of classification– Voluntarily: Entering and exit always possible– Transparency: Every hotel company can learn beforehand into which
category it will be put • Participants
– All accomodation companies with more than eight beds • Criteria of Classification
– 19 criteria, higher level of fulfillment needed for each star level– Further minimum levels of points for a star level from the criteria
• Building/rooms• Interior decoration/Features • Service / Leisure offers • Form of product offer• In-house conference facilities
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• Categories– Five star categories
• Tourist * (Garni)• Standard * * (Garni)• Komfort * * * (Garni)• First Class * * * * (Garni)• Luxus * * * * * (Superior)
• Evaluation process – HoGa‘s on provincial level themselves or by other organisations like CoCs)– Regular random controls – Classification by document and representative sign
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Discussion• In 1996 Germany and Denmark started a hotel classification program. 2003
Sweden adopted the Danish system. Through this process now all important European countries have classification systems. How about a EU-wide harmonized system?
• In 2004 the European Association of hotel associations HOTREC decided to start working on a europe-wide classification system.
• Arguments against: Regional differences, high costs
• Most major markets are dominated by domestic guests (Germany, France, Italy, Japan, USA) or specific source markets (Germany/UK at Spanish coast and islands).
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Cultural as well as climatic differences result in different criterias for quality:
- Slippers and oneway-tooth brush important in Japan, not in Austria- Good and diverse range of wines offered – necessary in Austria, not in
Britain- Baked breakfast available – important in Britain, not in Portugal- Tobacco shop in the hotel necessary in Portugal, not in France- Bidet necessary in France, not in Netherlands- Many towels positive in Netherlands, not in USA- Ice machine on each floor important for USA
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- Beds have to be longer in Northern Europe than in Southern Europe- Rooms are smaller in a 5 Star hotel in Tokyo than in a cheap motel in USA- Lobby in 4 Star hotel in Beijing much bigger than in 5 Star hotel in Europe- Swedish 3 Star hotels do not need to have a window- Even bigger differences for African, South American destinations
• It is therefore not suitable to have a harmonized system all over the world. The 5 Star system is established internationally (Middle East 7 Star hotels only marketing gag), not easily abandoned
• Even now star rating criteria lead to useless investments (Sauna in 4 Star hotel in Malta)
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Most important criticism: • Star rating only looks at single quantitative criteria set. • No clear distinction between business travellers and holiday
makers needs• No recognition of the most important fact: service QUALITY
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2. Expansion strategies of big hotel groups
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2.1 Facts and FiguresThe ten biggest hotel groups in the world (rooms, 2005)
Rooms Hotels
InterContinental Hotels Group 534.202 3.540
Cendant 520.860 6.396
Marriott International 478.000 2.600
Accor 463.427 3.973
Choice 403.806 4.977
Hilton Corporation 358.408 2.259
Best Western 309.236 4.114
Starwood 230.667 733
Carlson Hospitality Worldwide 147.093 890
Global Hyatt 111.474 356
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Die three hightest hotels in the world (2005)
1. Grand Hyatt 421 m Shanghai, China
2. Burji al Arab 321 m Dubai City, Dubai, VAE
3. Emirates Towers Hotel 309 m Dubai City, Dubai, VAE
Planned (year of opening)
1. Burji Dubai (2008) 560 m Dubai City, Dubai, VAE
2. Ritz Carlton (2009) 480 m SAR Hong Kong, China
3. Federazjia (2007) 440 m Moskau, Russland
4. Emirates Hotel (2008) 350 m Dubai City, Dubai, VAE
5. Shangri-La (2009) 310 m London, GB
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2.2 Reasons for Expansion• Brand and Strength help acquisition • Reputation and training programs help with Human Resource Acquisition,
HR Retention, HR Expansion• Reservation system already existing
• Goals: Economy of scale, Synergies, risk sharing: More growth, more revenues Brand strengthening through increased visibility especially if high level of
standardisation Synergies by cost reduction in backstage operations Synergies by cost reduction and quality control in housekeeping, food and
beverages, renovation Increased bargaining power in sourcing Central marketing and reservation Regional risk sharing
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2.3 Preconditions of expansion• In destination
– Positive economic trend in local economy– Stability – Existing infrastructure– Favourable laws (taxes, ecology, entrepreneurial freedom etc.)– Resources (physical and human)– Attractive for target group (business people, tourists, VFR, transit travellers)
• In hotel group– Standardisation– Organisation geared to expansion– Brand value– Clear division between investment and management functions
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2.4 Branding & Diversification
• Brand – the most important part of the immaterial value of company
• Brand – difference between book value and market value
• Brand – part of Shareholder Value Goodwill
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2.4 Branding & Diversification
Hotel groups and their brands (examples)
Company Economy MidscaleUpscale / Luxury
No. of brands Marken
Accor IbisFormule 1EtapRed Roof InnMotel 6
NovotelMercureSuite Hotel
Sofitel 9
Marriott Courtyard by MarriottRamada
Ritz Carlton RenaissanceMarriott
5
Sol Melia Sol Inn HotelsSol Hotels
Melia ComfortSol Elite
Gran MeliaMelia Hoteles
6
Maritim Maritim 1
Best Western Best Western 1
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Management in the hospitality sector
The Hotel Manager
The Hotel Manager is a man from the distant future who opens up a restaurant in the distant past. The guests travel there via time machine (yes, just like The Restaurant at the End of the Universe by Douglas Adams). He's pretty funny as he's very evolved, but he's still a stupid jerk.
Appearances: Tick vs. Prehistory: This episode is featuring a restaurant located about 3.5 million years ago. The Tick and Arthur wind up stuck in the distant past, but they're 'saved' when The Hotel Manager kidnaps their tribe of human-ape ancestors and takes them to the hotel to replace his waitstaff. Tick manages to overthrow the hotel staff and return his tribe to freedom and restore himself and Arthur to the 20th century.
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Management or improvisation • Planned and managed: • Fixed „normal“ ways of doing things, management by exception• Job descriptions, workflow descriptions• Differentiation between operational and strategic management
• Improvisation:• Management by experience: good for stable situation only
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Human Resource Management• Hospitality is a People industry• Human Resource Management among the most important
functions – Finding and retaining staff– Coordinating staff– Controling staff– Supporting staff– Leading staff
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Classical HR Organigram – Single hotel
Management
Food and Beverages (Buying/Storage)
1 Chef
2 Kitchen staff
5 helpers
Service
1 RestaurantManager
1 Hote Manager
ReceptionAdministration
Accounting
1 Receptionist
2 General staff
Accomodation
1 Matron (Hausdame)
3chambermai
ds
3 helpers
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Customer orientated HR Management
• End of Column structure– Process orientation– Problem solving instead of Zuständigkeit– Empowerment– Moments of Truth Concept
• Abilities Matrix – Data Mining of abilities of staff– Competence cluster– Example Accor Ibis Hotels: 15 Minutes Total Zen: How can it work?
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Quality management
• Quality ≠ Expensive
• Quality: Hardware, Surroundings, Software
• Quality: Ongoing process
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TQM – Total Quality Management• Customer point of view: How important is the service
offered and how was the quality of the service perceived?
• Producers point of view: How good was the quality management?
• TQM as a never-ending upward spiral (Kaizen)
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Ecology management • Based on: • Laws and regulations• Customer demand• Staff demand
• In Germany: • DeHoGa Eco Criteria• Government subsidies from
– European Recovery Program (ERP) – Deutsche Ausgleichsbank (DtA) – Kreditanstalt für Wiederaufbau (KfW)– Bundesländer Subsidies
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Ecology management• Labels:
• Many Ecology labels worldwide on different levels
• Example Bavaria: http://www.stmugv.bayern.de/umwelt/wirtschaft/siegel/index.htm
• Other examples:• Blaue Flagge, Grüner Koffer• Top label in Germany: Viabono
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Ecology management
• Discussion:
In the 1990s the hospitality companies in Germany
could not agree on a label like „Grüner Koffer“.
Today Viabono is supported by DeHoGa etc.
Is ecological engagement in hotels just a marketing
gag or will we see a real „greening“ of the hospitality
industry?