04 | 2017 the hotel expert - hrs global hotel …...by 2025, zurich wants to be the silicon valley...

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04 | 2017 Out and about in Shanghai The end of flexible cancellation policies? MICE location check: Zurich The Magazine for Travel Management and Hotel Procurement It’s as simple as that ACTE study: "Simplifying Managed Travel" The Hotel Expert

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Page 1: 04 | 2017 The Hotel Expert - HRS Global Hotel …...By 2025, Zurich wants to be the Silicon Valley of Eu-rope – and sure enough, the city is already an epicen-tre of cool. Simplify

04 | 2017

Out and about in Shanghai

The end of flexible cancellation policies?

MICE location check: Zurich

The Magazine for Travel Management and Hotel Procurement

It’s as simple as that ACTE study: "Simplifying Managed Travel"

The Hotel Expert

Page 2: 04 | 2017 The Hotel Expert - HRS Global Hotel …...By 2025, Zurich wants to be the Silicon Valley of Eu-rope – and sure enough, the city is already an epicen-tre of cool. Simplify

Dear Readers,

The business travel world is constantly moving forward and, along with it, so are the demands placed on you, the travel manager. New suppli-ers, protocols, processes and policies are inte-grated and implemented, the travel itinerary must be fully tailored to the traveller; add to that ever increasing demands in terms of duty of care – and of course, the cost of all of this still has to be managed.

With such levels of complexity, it’s no wonder that the desire to make travel programmes more straightforward has taken hold in companies. The keyword here is simplification. At HRS, we under-stand simplification not just to mean a single tool or slick integration of hotel content into the book-ing channel, but a consistent approach along the entire value-added chain – all based around the hotel. That’s why, in addition to end-to-end solu-tions, data and technical solutions, we also offer industry expertise and the dedication of more than 1500 colleagues, who work together with companies and hotel partners to tackle precise-ly this complexity.

Despite this high level of digitisation, as your cor-porate travel partner we are also well aware that business still involves interaction between peo-ple – people who communicate in person, discuss things with one another and develop solutions to-gether. The study on managed travel discussed in this issue, which is published by the Association of

Corporate Travel Executives (ACTE), also indicates this. Those who get closely involved with internal stakeholders and call for more support from ex-ternal service providers are noticeably more suc-cessful than others.

So let’s be open with one another, back up our words with actions and bring your travel pro-gramme and – gradually – the entire industry for-ward. Whether it’s at trade fairs or in the course of regular interaction with our colleagues. At HRS, we certainly won’t stand still – we will continue to face new challenges with new innovations. That’s my promise to you. Watch thisspace!

Yours,

Cover

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Tobias Ragge,

HRS Geschäftsführer

Tobias Ragge, HRS CEO

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EDITORIAL

Page 3: 04 | 2017 The Hotel Expert - HRS Global Hotel …...By 2025, Zurich wants to be the Silicon Valley of Eu-rope – and sure enough, the city is already an epicen-tre of cool. Simplify

CentralBilling

Out and about in Shanghai16

14 28

Issue 04 | 2017

CHECK-INNewsIndustry news 4

COVER STORYSimplify your travel management! 8Many things make the job of a travel manager much harder. The mobile revolution, concerns for the safety of travellers, increasingly flexible flight and hotel pric-ing – and service providers who attempt to win travel-lers over directly. The only answer here is simple solu-tions.

BUSINESS TRAVELLike New York on Ecstasy 16Downtime? There's no such thing in Shanghai. Ever since China became more open in the course of the economic reforms of the early 1990s, the former trade metropolis has made every effort to build on its glorious past and to lure the whole world to the Huangpu. With resounding success.

Shanghai: facts & figures 21

TRAVEL MANAGEMENTBook, pay, save 14Auditors at German tax and auditing firm BDO were dissatisfied with their booking process. An integrated booking and payment solution has now solved the problem.

Chain reaction 12US giants such as Marriott and Hilton have made their cancellation conditions more stringent. Their attitude: Those who want flexibility should pay for it! What does that mean for companies? We take stock.

MEETINGS & GROUPSSexy? Sure! 28But Zurich is certainly not a snip when it comes to conferences. But the course is currently being set here for the digital transformation of the entire country. By 2025, Zurich wants to be the Silicon Valley of Eu-rope – and sure enough, the city is already an epicen-tre of cool.

Simplify Managed Travel

8

MICE in Zurich

IMPRINT

Publisher: HRS Hotel Reservation Service Robert Ragge GmbH, Breslauer Platz 4, 50668 Cologne Responsible for the content: Rainer Puster, PR Manager Enterprise Solutions, phone +49 221 2077-5108 | [email protected] Coordination, editorial work and layout: publish! Medienkonzepte GmbH, Hanover Design: Kirsten SemmlerEditor in Chief: Anke Pedersen Authors: Jürgen Baltes and Jacqueline BrunschPhotographers: Daniele Mattioli, Pascal Mora and other sources as listed Copyright: HRS 2018

3

Table of contents

Page 4: 04 | 2017 The Hotel Expert - HRS Global Hotel …...By 2025, Zurich wants to be the Silicon Valley of Eu-rope – and sure enough, the city is already an epicen-tre of cool. Simplify

Let’s meet at the gate Airport hotels are competing for conference attendees. According to Investment Management firm JLL, increas-ing numbers of airport hotels are offering business trav-ellers a modern, a design that reflects the local culture, sophisticated facilities and direct connection to the ter-minal. Hotels want to increase their attractiveness to the conference market, above all by promoting the better con-nections they offer and the associated reduction in trans-port costs. According to data service provider STR, the de-mand for airport hotels has risen from 55 million to 65 million overnight stays between 2010 and 2016.

On the road again. Over the past year the number of busi-ness trips has reached 183.4 million, the highest number since 2009, according to the German Business Travel Association (VDR). The reason for the increase in mobility is economic growth, enabling many companies to increase their business travel budgets. In the public sector, the number of journeys rose by 2.3 percent in comparison to the previous year, while larger companies in the private sector travelled as much as 5.2 percent more. Small companies, however, recorded a 1.1 percent decrease.

Travel high

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Basis: 800 respondents with responsibility for managing business travel or able to

provide the relevant data, January–March 2017.

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Increase in business travel

The number of business trips made by German SMEs (in millions)

2007 2008 2009 20122010 2011 2013 2014 2015 2016

166,6 163,1

145,1154,8

163,9 166,3 171,1175,8

182,7 183,4

Flight revolution?

From London to Sydney in

around twenty hours – from

2022, this should be possible

for passengers on a non-stop

flight, as announced by Qan-

tas boss Alan Joyce. He is also

planning a second ultra long-

haul flight, a direct connection

between Sydney and New York,

which will take about 18 hours.

The non-stop flights should

offer time savings of between

three and four hours. The only

catch: until now, there has been

no passenger aircraft designed

for such distances. The longest

direct flight currently in oper-

ation takes 17 hours 30 min-

utes and serves the route from

Doha to Auckland.

4

CHECK-IN

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Bye bye cash!

In ten years, cash will be a thing of the past, at least in popular

business travel destinations. At least, this is what 55 percent

of those surveyed in a study by the American DCC Forum

expect. Bitcoin payment could prove to be an alternative.

150 million people worldwide are now using this digital

currency, according to Jawin Swiss AG. Bitcoins are in-

creasingly being used in the hotel industry. The benefits

of the cryptocurrency include secure transactions, with

no need for detours via external banking service provid-

ers (keyword: blockchain) and faster check-ins and check-

outs. However, the participants in the DCC Forum survey

also have another travel currency in mind: 51 percent believe

that smartphone payment will be the standard way of paying in

ten years’ time.

Trouble before take offUsing travel time away from the office productively is one of the biggest challenges that business travellers face, according to the results of a survey by GBTA and Sabre. Long stopovers, (62%), booking changes during a trip (42%) and poor working conditions in transit ar-eas (40%) are particular sources of annoyance. Other irritating travel companions include logging travel ex-penses (34%) and the meals served (25%). The survey also shows that travel experiences influence general job satisfaction for 83% of business travellers and have an impact on their productivity.

An end to the free-for-allA study by Egencia concludes that firms are continuing to battle with hotel book-ings made in breach of company policy. Sixty percent of all business travellers surveyed were employed in companies that set out their own booking processes and policies. However, half of them are still able to book via any channel. But there is light at the end of the tunnel for these companies. For 79 percent of business travellers, compliance with internal company travel policy is the most important factor when booking – this was the result of a study by the GBTA foundation and HRS. Convenience comes in in second place, with 71 percent. According to the study, in order to stop “wild-west purchasing”, companies should ensure not only that appropriate information can be found but also that the booking channel is as simple as possible.

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News

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Duty of care at meetings

Duty of care has become more important in the travel, meeting and

event sector. Calculating risks and disruptions takes up at least 25

percent of travel managers’ time, according to the “2016 Event

Disruption Study” by the Incentive Research Foundation. A

study by GHH Consult has revealed that one in three overnight

stays on business is associated with conference attendance. As

a result, it is becoming ever more important to integrate event

bookings into existing booking channels. The advantage is that

making a booking with a tool ensures complete transparency and

thereby the best possible duty of care.

Millennials on business trips

Representatives of generation Y take 7.7 business trips a year – more business travel than any other gen-eration (source: MMGY Global Survey). What’s more, they also appear to know how to make the best of it for themselves. For example, they tend to use the same airlines and always stay in the same hotel chain, whether they are travelling for business or pleasure because, according to an Expedia study, they want

to collect as many bonus points as possible – travel policy is neither here nor there. Just as their reputa-tion as the first Digital Natives suggests, this genera-tion prefers to make bookings and check in via apps and online services, as the GBTA Business Traveler Sentiment Index shows. But when it comes to one thing, millennials are still quite traditional: they prefer to meet in person with business partners.

More demand, same priceGood prospects for business travellers: the price of airline tickets will stagnate in 2018, despite increasing demand, predicts the Advito Industry Forecast. The predicted growth in the cost of ho-tel rooms is also set to be moderate, at four percent. The downside? European business class fares will be two per-cent higher than in 2017 on both conti-nental and intercontinental flights. It is also unclear how the long-term effects of the Air Berlin collapse will play out. Immediately after the bankruptcy, the prices of domestic flights in Germany rose dramatically, by 26 to 39 percent.

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CHECK-IN

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Change is afoot. Ticket inspections on Deutsche Bahn trains could soon be a thing of the past. The transport firm is currently test-ing an app, “Comfort Check-In”, with which travellers can check-in and check-out of their own accord. However, passengers must sit in seats that they have reserved beforehand, so that the conductor can review the check-in on a device. If the test proves satisfactory, the app function will gradually be integrated into rail operations.

Independent hotels preferred

For ninety percent of all business travel-lers, fast WiFi, a desk and a printer are the minimum facilities required of a good hotel room according to the “Chefsache Business Travel Study” by travel management com-panies in the German Travel Association (DRV). For many, the location of a hotel room is also essential (80%); rooms located next to lifts are least desirable. 79 percent of those surveyed preferred their rooms in small, independent hotels. 71 percent also state that large, familiar chain hotels are an option. In addition, more than half of the 220 people surveyed wanted flexible ar-rival and departure times (60%). According to the “Hotel Pain Index 2017” by market research platform Qualtrics, when asked about their greatest annoyances, 66% re-plied dirty rooms and 57% unfriendly staff. Uncomfortable beds (56%) and unexpect-ed additional fees (51%) represented other sources of irritation for the business trav-ellers surveyed.

Farewell to conductors?

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Direct sales: so much for being cheaper

Corporate consulting firm Infrata has concluded that third-party sales costs for airline tickets are no

higher than those sold directly. As a matter of fact, large airlines such as Lufthansa pay just eleven

percent less per sector in direct sales than in sales via GDS, travel agencies and booking portals. The

external sales figures for regional flight companies and smaller airlines look even better. This option

can result in savings – between four and eleven percent. Until now, airlines had generally argued

that sales were more expensive when made via external partners. However, the study commissioned

by the European Travel Agents’ and Tour Operators’ Association (ECTAA) and the European Technol-

ogy and Travel Services Association (ETTSA) showed that airlines ignore important cost factors in

their own sales, such as advertising or search engine click fees.

7

News

Page 8: 04 | 2017 The Hotel Expert - HRS Global Hotel …...By 2025, Zurich wants to be the Silicon Valley of Eu-rope – and sure enough, the city is already an epicen-tre of cool. Simplify

Was everything simpler in the past? Many travel managers would agree. The mobile revolution, concerns for the safety of the travellers, ever more flexible flight and hotel pricing – and service providers who try to win over travellers directly. All this makes the job of a travel manager much harder. The only answer here is simple solutions.

TEXT: JÜRGEN BALTES

Simplify your travel management!

A travel manager in a large European firm describes his daily challenges as fol-lows. “Ten years ago, travel management wasn’t so complex. The travel agent was

in charge of booking and handling; independent bookings and the issue of duty of care were not where they are today. Now, however, there are dozens of ways to book a trip, and security ma-kes things increasingly complicated.”The travel manager is one of the 112 travel ex-ecutives recently surveyed by the Association of Corporate Travel Executives (ACTE) about their current concerns and needs. The gist of the sur-vey's findings? Yes, the job has become more complex. And simplification is required. As time goes on, corporate business travel programmes are becoming ever more complex. New suppliers,

protocols, processes and policies are constantly being added to the mix. Given that complexity and unrestricted growth ultimately mean ineffi-ciency and additional costs, companies are long-ing for simplicity. A total of 72 percent of those surveyed were actively searching for interfaces where their travel management processes and structures could be simplified.As high as this figure seems, even ahead of the de-sire for simplicity on the list of priorities for travel managers are aspects such as “traveller satisfac-tion”, “data security on the go”, the ongoing issue of “cost saving” and, right at the top of the agen-da, “traveller safety”.Nonetheless, the majority of travel managers are aware that everything that they do to make their travel programme easier impacts on their other Im

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White paper –

Simplifying Managed

Travel

The value that travel

management contributes is

increasingly measured by

optimised processes and

cross-departmental collab-

oration. The more complex

the business travel pro-

gramme becomes, the more

important it is to improve

efficiency and transparency

with simplification initia-

tives. How can companies

tackle this challenge?

corporate.hrs.com/de/

simplify

9

Simplification

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objectives. This becomes particularly evident on closer examination of those companies that see the issue of simplifying their travel programmes as their “top priority” – in the ACTE study, they are referred to as “top simplifiers”. They perform better than the majority across virtually all are-as and there are far fewer “implementation defi-cits” in their measures.

“Top simplifiers” are more consistentTravel managers face the challenges of turning their simplification priorities into tactical initia-tives and driving forward with the projects. Here, however, an “implementation deficit” can be seen

– referred to in the study as an “execution gap”. This refers to the void between those re-

spondents who generally consider a measure to be important – and those who have already taken action. Com-panies above all wish to take action regarding traveller and data securi-ty (83 and 76 percent respective-ly). However, 23 and 24 percent of

those companies respectively have not yet done anything about it. The

“top simplifiers” did better here by just 16

“It is always wise to look at processes together with other departments. The trav-el management process does not follow departmental boundaries.”

Jörg Martin, CTC: The need

to look beyond your own

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Safety FirstStrategic priority of travel management in 2018

PRIORITY SHARE

Duty of care | Traveller safety 95 %

cost savings 88 %

data security 84 %

traveller satisfaction 75 %

simplification of the travel programme 72 %

implementation of technology 71 %

digitisation 57 %

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and 19 percent respectively. In the case of other specific measures, such as adjustments to inter-nal processes or travel policies, the “top simplifi-ers” are faster to implement them.The reasons soon become clear on closer inspec-tion of the study results: “top simplifiers” are not put off as much by limited resources and search for active support for their projects. While a to-tal of almost four out of five travel managers see a lack of personnel, time and financial resources as a key obstacle, only three out of four among the “top simplifiers” agree. Parexel Manager Ben-jamin Park knows that “travel management pro-jects aren’t always right at the top of the list when it comes to priorities”. Travel managers therefore have to seek allies actively to advance their own plans for simplification, sometimes even “under the radar of official projects”.

Networked travel management is essential on all sidesThis begins in your own company. 57 percent of travel managers see the purchasing depart-ment and forty percent the communications de-partment as key strategic partners. Among the “top simplifiers”, however, many more are aware

of the importance of these partnerships, name-ly 70 and 52 percent respectively. “It is always wise to look at processes together with other de-partments,” adds Jörg Martin from CTC Corporate Travel Consulting. “After all, the travel manage-ment process isn’t restricted by departmental boundaries.” But since, understandably, each de-partment acts first and foremost only in its own area of responsibility, it is often only by holding joint discussions that the consequences of meas-ures applied in one place on other departments become clear, says Martin. A typical scenario: “Oh, does this data need to be re-entered in account-ing? But we didn’t know that.”For Timo Darr, long-term Lufthansa travel man-ager and now consultant, networking travel man-agement on all sides is absolutely essential. “Up to the management board, down to the travel-lers, and simultaneously across the other depart-ments.” But all too often, this is not put in place, says Darr. Sometimes there is not even a clear area of responsibility. “Purchasing might book the flight, the Facility Manager takes care of car hire and hotels are booked in multiple locations in an uncoordinated way.” But in a key position like travel management, someone needs to be “pull-

Duty of Care tops the list

of strategic priorities for

95 percent. At 72 percent,

simplifying the travel

programme comes next

– in any case, simplicity

can also have a positive

impact on all other areas.

PRIORITY SHARE

Source: ACTE study “Simplifying Managed Travel”, October 2017

The top tips for simplification

1. Get the travellers on board: For many travel managers, an “improved

travel experience” is a vital key performance indicator (KPI). But only a few

seek to establish regular contact with their travellers. The majority thus also

miss out on potentially valuable input. However, “top simplifiers” tend to see

travellers as partners and communicate more closely with them. Last but not

least, travellers are more willing to implement company requirements when

they understand the reasoning behind it.

2. Speak to other departments: Procurement, HR and IT departments are

important partners for travel management; internal communication can also

help to interact with travellers. “Top simplifiers” have regular discussions

with other departments in the company. There is a link between close inter-

action and successful simplification in travel management.

3. Seek support from outside: “Top simplifiers” demand more from their

service providers and suppliers, such as active consulting, reports, tools and

other support. At the end of the day, it’s in the partners’ interests to simplify

the collaboration, too.

Source: ACTE study “Simplifying Managed Travel”, October 2017

Duty of care | Traveller safety 95 %

cost savings 88 %

data security 84 %

traveller satisfaction 75 %

simplification of the travel programme 72 %

implementation of technology 71 %

digitisation 57 %

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Simplification

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ing the strings” to control the overall process, so that individual departments don't develop a life of their own – and so that, at the end of the day, “the background work isn’t trebled by changes made up front”.

Call for support!This applies to collaboration with external part-ners too. “It’s often my experience that travel managers request all the reports they can get their hand on from travel agencies, airlines, ho-tels and car hire providers,” says Darr, “but then it turns out these aren’t actually of interest to anyone in the operation.” In such cases, there is no clear concept. Of course, partners, whether

service providers, travel agencies or technol-ogy providers, can provide valuable as-

sistance. “But I first have to know what I want from them,” advises Darr. His recipe for success? First of all, de-fine travel management objectives together with management and then make these measurable with key performance indicators (KPI). These

could, for example, be specific cost savings, reduced time for certain pro-

cesses or even higher traveller satisfac-

tion. Only then is it valid to call for the right figures and further support from partners.The “top simplifiers” in the ACTE study seem to have understood this. They are much more in-clined to view service providers, travel agencies and other suppliers as equal partners and there-fore also request their active support, either in the form of best practice examples, specific busi-ness models or tools and applications. While, for example, 35 percent of all those surveyed wanted more technical support from their hotel partners, at 44 percent, this is significantly higher among the “top simplifiers”.One travel manager gets right to the crux of the matter. “I’m always asking my partners for advice and support. Why shouldn’t I benefit from what works in other companies, too?” The ACTE study's recommendation is along the same lines. Compa-nies ought to demand more from their partners. This is a piece of advice that should be taken, in particular, by the significant proportion of trav-el managers who, by their own admission, have never received support from hotels (34 percent) or airlines (37 percent).It is also worth requesting simpler solutions for interaction with service providers. “All too often, hotels complicate matters unnecessarily,” says the

Consultant Timo Darr: The

concept comes first, then

the right reports

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Source: ACTE study “Simplifying Managed Travel”, October 2017

*Implementation deficit: the gap between respondents perceiving a measure as important, and respondents who have already taken action.

**“Top simplifiers”: travel managers who see the issue of travel programme simplification as a “top priority”.

Traveller safety 23 % 16 %

Data securityt 24 % 19 %

Travel policies 13 %  1 %

Internal processes 18 % 11 %

TMC reporting 18 % 18 %

Execution gap of the “top simplifiers”**

Execution gap*

Simplification: a lack of implementationThe execution gap is the void between perceived importance and the projects initiated

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TITLE

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global hotel purchaser of a European company. For example, he had just received prices from a hotel partner, offering options ranging from queen size to king size beds or with views over the park – a lack of standards and non-transparent pric-ing often make simplification far more difficult.

The central issues are still the same, but the environment is more complexIrrespective of the issues that travel managers face, whether it’s a new means of payment, the consolidation of the travel agency market or ar-tificial intelligence, for Darr as a specialist it is clear that “as a travel manager, I cannot influ-ence or stop such external developments”. The world has always changed and will continue to do so, says Darr.In any case, business travel experts also agree that the technical developments of the last ten years have had a much more serious influence on the sector than those of the ten years be-fore that. In this respect, the core issues of trav-el management – defining and implementing the right KPIs – have remained the same, albeit in a far more complex environment with a steadily in-creasing number of opportunities. Or, to put it in the words of the European travel manager at the

start, “I would love to give my travellers the free-dom to book their business trips exactly how they want to, but given my duty of care, I simply have to know where they are and when.”The main challenge to a simple travel programme also lies in making things as easy as possible for the traveller, without disturbing or complicating processes in the background. This is a task that a travel manager cannot cope with alone, but can only be managed in conjunction with partners, both internal and external, who ideally can even relieve him of some of the operational work.

Important stakeholders in simplificationThe influence of travel agencies, suppliers and travellers – the number

of stakeholders who see the travel manager as a “partner in simplification”

Source: ACTE study “Simplifying Managed Travel”, October 2017

Supplier

Hotel*

* Due to fragmentation and lack of transparency, the hotel sector itself has a low ranking among the “top simplifiers”.

Flight

for the “top simplifiers”

43 %

35 %20 %

56 %71 %Travel agent service providers

Technology providers

for the total of those surveyed

41 %

25 %20 %

45 %66 %

Partners in thesimplification process

Travellers

Other partners

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Simplification

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BDO AG Wirtschaftsprüfungs-gesellschaft with headquar-ters in Hamburg is one of the leading companies for audi-

ting, tax consultancy, commercial legal consultancy and advisory services. Most of the 1900 employees travel a lot, predominantly within Germany, either to visit customers or to one of the company‘s 25 other sites. Over-night hotel stays are the order of the day, so an efficient hotel programme plays a big part.However, BDO was not entirely sat-isfied with its existing solution. The choice of accommodation on offer to travellers was always too limited. On top of this, the user-friendliness of the booking tool left a great deal to be desired, travel management had to clarify too many queries and provide training. And last but not least, the company wanted to benefit more from special rates for business travellers.By September 2015, it was time for a change. Together with the partner AirPlus as billing provider, the HRS platform was implemented, togeth-

er with the “Central Billing” payment solution. With the joint product from HRS and AirPlus, hotel bookings are di-rectly invoiced to the main corporate credit card, saving employees and ac-counting the time-consuming task of processing expenses for hotel stays. According to a study by the Global Business Travel Association, each man-ual invoicing process takes employees an average of 20 minutes.The system operates as follows: a vir-tual Mastercard number is generated for each booking and is used to settle the bill, with no action required on the part of the traveller. The BDO finance department receives hotel invoices regularly from HRS, grouped togeth-er and in digital format. As a result, “Central Billing” reduces the number of creditors and simplifies the book-ing process.

Fast adaptation, great resultOne year after putting this measure into action, BDO reviewed the results. The intuitive tool was rapidly accept-ed by employees: in this time frame,

Book, pay, save

TEXT: JÜRGEN BALTES

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The auditors at the German tax and auditing firm BDO were dissatisfied with their booking process. The choice was too limited, billing too complex and travel management had to clarify too many traveller questions. An integrated booking and payment system offered by HRS and AirPlus provided a solution.

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TRAVEL MANAGEMENT

Page 15: 04 | 2017 The Hotel Expert - HRS Global Hotel …...By 2025, Zurich wants to be the Silicon Valley of Eu-rope – and sure enough, the city is already an epicen-tre of cool. Simplify

About BDO

BDO AG is the fifth largest auditing

company in Germany. It employs

around 1900 employees at 26 sites

nationwide. BDO has international

links as a founding member of

the BDO International network of

auditing and consulting companies,

with members in over 158 countries

worldwide, ranging from Canada to

Russia and China. Internationally,

BDO generates an annual turno-

ver of nearly seven billion euros.

BDO's employees include not just

accountants and tax and business

consultants, but also insurance

experts, lawyers, engineers, envi-

ronmental auditors and countless

other specialists, who take care of

clients with the industry expertise

required.

“Not only are employees now able to choose from a wider range of hotels – time-consuming admin

tasks and training are no longer required.”

the adoption rate has risen from zero to fifty percent. Today, half of all ho-tel bookings are made via HRS, which has noticeably relieved the workload of travel managers. “Not only are em-ployees now able to choose the right accommodation from a wider range of hotels,” explains BDO travel manage-ment, “but the solution has also done away with time-consuming admin tasks and, thanks to the intuitive tool, train-ing is no longer required.”The BDO management has also calcu-lated the direct financial savings as a result of lower hotel rates. Employees simply making greater use of the HRS Business Tariff has resulted in a saving of EUR 10,500 in the first year alone. On top of this, there are also the indi-rect savings made as a result of less payment and billing work.BDO realised early on that the tradition-al way of processing travel expenses manually on paper was too time-con-suming and particularly prone to errors. Consequently, the company had made the switch to digital payment solutions a long time ago. The new processes in

the hotel sector are the ideal way to complete this system.

Payment data assists negotiationsAnd finally, the integrated solution of-fers another sweet surprise: the AirPlus billing data not only shows accommo-dation costs as a total sum, it also lists detailed expenditure for additional ser-vices, including breakfast, parking and other extras. This provides BDO travel management with valuable information for future negotiations with hotel part-ners. This means that extras that are used frequently can be factored into rate negotiations and those that are un-necessary can be removed.

15

Central Billing

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All new on the east bank of the Huangpu River: Once worthless, now a financial centre

Enjoy: from street food

to Michelin stars

1616

BUSINESS TRAVEL

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It’s no secret that in Shanghai – the “other China” – things dance to a dif-ferent tune than in the rest of the People‘s Republic. Mandarin Oriental

General Manager Clemens Hoerth soon discovered this in the days following his arrival last summer. Six years earlier, when he was just starting out in Chi-na in the trade fair city of Guangzhou, people still wanted to take his photo every few metres – the tall man with the “Mao” haircut, laughs Hoerth. But in Shanghai? “Tens of thousands of foreig-ners live here.” Nothing special, then.Well, quite the opposite, in fact. “Shang-hai had been globalised back in the 19th century,” explains Hoerth’s col-league, Dorian Rommel, in the recent-ly opened Capella Hotel. 200 years ago, the former fishing village opened for trade, laying the foundations for its ascent to become the most impor-

tant centre for trade in the country, and subsequently its industrial centre, too. “Back then, whole city districts were sold off to Europe, to the French, the British”, Rommel says somewhat flippantly. “So Shanghai was always a multinational city.” Even the sycamore trees in his district, the “French Conces-sion”, were imported to Shanghai many years ago by the French.Today, international money flows, high-tech, expertise and culture are flooding into Shanghai. Once the country began to reopen at the start of the 1990s, following decades of isolation, com-munism, war and Maoism, it was once again the city on the Huangpu River that was at the forefront of the globalisa-tion movement. Since then, the city of 26 million inhabitants has experienced double-digit growth and Shanghai is the undisputed financial centre of China.

And everything points towards the fact that this won’t be changing any time soon. While the capital city of Beijing still stands for the traditional China, Shanghai has put its foot right down to the floor. Since 2012 the contain-er port has been the world’s largest, with the world’s highest rate of goods handling. And the goal of overtaking its competitor Hong Kong, Asia’s lead-ing financial metropolis, seems to be within reach. Increasing numbers of in-ternational institutes and companies have gradually relocated their head-quarters to the Chinese mainland and set up in Pudong, the special economic zone established back in 1990, east of the Huangpu River. The Shanghai Tow-er, the Shanghai World Financial Center and the landmark Pearl Tower – three of the world’s tallest buildings – are all located here, a clear sign of the gener-

TEXT: ANKE PEDERSEN · PHOTOS: DANIELE MATTIOLI

Like New York on EcstasyDowntime? There's no such thing in Shanghai. Ever since China became more open in the course of the economic reforms of the early 1990s, the former trade metropolis has made every effort to build on its glorious past and to lure the whole world to the Huangpu. With resounding success.

17

Out and about in Shanghai

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al direction in which things are moving. Capella GM Rommel laconically explains that Shanghai is a 24-hour city, just like “New York on ecstasy”.While geographical restrictions lim-it growth in the Big Apple, the “Gate-way to the World” continues to expand

in all directions. Until 1990, Shanghai had mainly developed along the west-ern side of the Huangpu – around the historic centre and the riverside prom-enade, the Bund. On the eastern side of the river, however, there was barely anything other than shipyards and rice farmers cultivating their fields. “The land was considered worthless because

you had to cross the river to get to it,” says Rüdiger Hollweg. Just 25 years later, he is now in charge of the Grand Kempinski Hotel, currently celebrating its fourth birthday. The hotel is located right in the midst of competitors such as the Mandarin Oriental, Shangri La,

Four Seasons and Park Hyatt.Among other things, this develop-ment has not only made targeted in-vestments in Pudong’s infrastructure possible, but it has also enabled the construction of exemplary connections to old Shanghai via ferry, metro, pe-destrian tunnel and two of the long-est suspension bridges in the world.

Otherwise, the previously worthless area would never have transformed into the centre of Asian and interna-tional finance, insurance, pharmaceu-ticals and the high-tech elite in such a short time, with a skyline that has now become one of the most photo-graphed in the world; offering interna-tional schools, communities, start-ups and hotels, a harbour-city project and a 21-kilometre long jogging track along the Huangpu River. Even Disneyland made the move to Pudong in 2016, with ten other theme parks set to follow suit.

No end to growth in sightMeanwhile, the city officials seem to show no fear of taking things too far. Until recently, the Shanghai New Inter-national Expo Center in Pudong was proudly presented as the world’s sec-ond largest trade fair site after Han-over in Germany; but Shanghai’s new number one now lies at the opposite end of the city, in Hongqiao. “Ten years ago, there was nothing here,” explains Peter Pollmeier, who opened the Inter-

Targeted investments in Pudong’s infrastructure – ferries, metro, record-breaking suspension bridges – are allowing the district to flourish.

Yellow and red taxis on two wheels:

rent-a-bike boom

18

BUSINESS TRAVEL

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continental Shanghai here a year ago, “now an entirely new part of the city is springing up”.The core of this emerging exhibition and industrial district in the far west of Shanghai is the National Exhibition and Conference Center (NECC), which is above all aiming to attract large au-tomotive fairs. And although the NECC only opened around two years ago for the first time, Intercontinental boss Pollmeier, whose hotel is right across from the venue, is very happy. “We currently have events 75 to 80 days a year,” he estimates. But a quick glance at the trade fair calendar for 2018 makes it clear that this figure will grow very quickly. And the same applies to the number of visitors. Pollmeier esti-mates it will be 250,000 a day.In the meantime, the infrastructure in Hongqiao is “expandable”, summaris-es Pollmeier. Of the 16 planned metro connections, there are still only 14; of the twenty hotels initially planned, only a handful are complete. And although the nearby Hongqiao Airport had al-

Top 3 business hotel Recommended by Justin Sheng, Head of Central China at HRS Hotel Solutions

Hongqiao Jin Jiang Hotel (*****) with 587 rooms and suitesThe former Sheraton Shanghai Hongqiao Hotel not only enjoys an extremely convenient loca-tion between downtown Shanghai and Hongqiao International Air-port, Pudong International is also within easy reach on the motor-way. In short, the central location of the hotel, with its comfortable and artistically designed rooms, makes it an ideal meeting point. Single rooms with breakfast start at EUR 109.

Grand Central HotelShanghai (*****) with353 rooms and suitesAlmost all the city’s attractions can be reached from here on foot. Nanjing Road, one of the largest shopping streets in the world, is just around the cor-ner, as is the Bund, the People’s Square and other must-see loca-tions. The rooms are spacious and luxurious, with the Presidential Suite even offering its own pri-vate garden. Single rooms with breakfast start at EUR 126.

Grand Trustel PurpleMountain (*****) with368 rooms and suitesFrom this hotel, located in the centre of the Pudong financial and commercial centre, it’s just a few minute walk to the Centu-ry Avenue metro station and five minutes by car to the five tun-nels that lead under the Huang-pu River to the rest of the city. The Shanghai International Con-vention Center and the Shanghai New International Expo Center are just a few minutes away by car; Pudong International is for-ty minutes away. The highlight is the panoramic view of Puxi and Pudong, as the hotel only starts on floor 25. Single rooms with breakfast start at EUR 96.

Pure luxury: Kempinski and co. occupy

the latest hot spots

19

Out and about in Shanghai

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ready been extended to two runways for Expo 2010, it still predominantly serves the domestic market.Marko Janssen, whose Meliá Shang-hai is just a stone’s throw from the NECC, is convinced that this will also change very quickly. “In the future, Hongqiao will have international con-nections, too,” says Janssen. And it’s not for nothing that this new part of the city is already home to countless expats and international schools. And

it’s not all because of the proximity to the NECC, it’s also being positioned as a place of enjoyment – there’s “healthy food” and a spa that recently won an award.

The right hotel? Business travellers are spoilt for choiceIn fact, things are tough for Shang-hai’s hotel industry, in the face of what seems to be unprecedented competi-

tion – business travellers, on the other hand, are literally spoilt for choice. “In 1990, there were only three interna-tional hotels in Shanghai,” says Hilton GM Gerd Knaust, remembering the be-ginnings of the boom. “Today, all of them have a presence, from luxury to budget.” So how do you get started in a city where each new arrival boasts even more striking architecture, even grander design and ever more refined cuisine? It’s not for nothing that culi-

nary standards are now attracting the attention of the Michelin guide.Given the size of Shanghai, a location appropriate to the reason for your trip is, and will undoubtedly remain, the crucial factor. Close to the exhibition centre in Hongqiao? In the heart of the financial centre in Pudong? Or, to im-press business partners, in the centre of the French Concession? In brand-new Capella, for example, in an urban

resort consisting of 55 historic villas and forty residences, which, like its equally new competitors on the tour-ist-friendly Bund – Bulgari, Rocco Forte, Aman – is offering luxury with few-er than 100 rooms for the first time?One way or another, HRS booking fig-ures confirm that Shanghai – along with New York – was one of the most-visit-ed business travel destinations even in 2016. It’s anticipated that this share of the market will continue to grow. Even if it's only in connection with ITB Chi-na, which, after its successful première in 2017, will be showcasing the Chi-nese market once again in the coming year (www.itb-china.com; 16 – 18 May 2018).

Not shy of superlatives: Shanghai’s largest exhibition area is in the west

BUSINESS TRAVEL

On the rise: soon to be China’s

leading financial centre?

20

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Facts and figures

Travelling to ShanghaiShanghai has two international air-ports, with almost all flights from abroad landing at Shanghai Pudong In-ternational Airport (PFV). Lufthansa and Air China offer direct flights from Frankfurt and Munich. Shanghai Hong-qiao Airport is mainly used for do-mestic flights. Pudong International Airport is connected to Pudong city centre (Long yang Road metro station) via the trans rapid magnetic levitation train (Maglev). The Maglev takes just eight minutes to travel 45 kilometres, at speeds of over 435 kph. Price: EUR 6.50 (RMB 50). For those heading to the other side of the river, take a taxi from one of the official companies such as Dazhong or Lanqiu, recognisable from the prices on the doors. Transfer cost: about RMB 150 (around EUR 20).

Travel in the cityGiven the chronically congested roads, the bike rental business is booming. Bikes are cheap and available almost anywhere. They are unlocked and paid for via the Wechat app.Travelling by taxi in Shanghai is cheap, but few drivers speak English. The “Taxi Card” app is therefore recommended, which not only shows the destination in Mandarin, but also pronounces it.

Travelling on one of the extremely punctual 14 metro lines costs between three and six RMB (40 to 80 cents). If you are staying for a few days, buying yourself a Public Transportation Card (RMB 20 deposit) is a good idea. It is easy to top up with credit and can be used on buses, in taxis and on the ferry.

VisaA visa is required to enter the Peo-ple's Republic of China and it must be applied for in advance. According to the Federal Foreign Office, German cit-izens can no longer obtain their visas by the express route. Anyone arriving by plane and departing again to anoth-er country within 144 hours is entitled to visa-free travel in the administrative areas of the city.

Dates to avoidThe New Year celebrations fall on a new moon, between 21 January and 21 February. This is the most important Chinese holiday. Celebrations last three days, and in this time, many restaurants and shops are even closed. Around La-bour Day on 1 May, many Chinese peo-

ple may have about five days holiday and take advantage of this to travel widely, particularly within the coun-try. The same applies to the days be-fore and after the national holiday on 1 October. For the exhibition season in Shanghai – March, April and May – rooms should be booked in good time.

SafetyDespite its size, the city is safe – even for night-time strolls. Travellers prone to heart or circulatory problems should avoid late summer in Shanghai, when temperatures soar and humidity reach-es subtropical levels.

Taxes/tipsTips are not the norm at all. Business travellers can shop tax-free in desig-nated shops and reclaim eleven per-cent of the purchase price on depar-ture at the airport.

21

Out and about in Shanghai

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The hotel giants from the USA probably hadn’t reckoned on such a fierce headwind. They had barely announced that, in

the future, last minute room cancella-tions 48 hours or less before arrival would result in fees amounting to the cost of an overnight stay, before they were bombarded with protests and th-reats of boycotts from many parts of the business travel world. Cancellati-on up to 6 p.m. on the day of arrival is a must in corporate travel; hence the feeling that anything else is an attack on traveller flexibility.But Hilton and Marriott/Starwood are not the only ones waging war on this. Dissatisfaction with what’s seen as a limited ability to plan is such that,

shortly after their US compet-itors did so, the British Inter-

continental Hotel Group also announced that booking cancellations would only be free of charge 24 hours or more before arrival. Indus-try giants such as ex-Dorint

boss Elke Schade are appeal-ing for the “super example” set

by these chains to be followed,

so that these “financially unreasona-ble cancellation conditions” are finally revised. Gabriele Schulze, head of con-sulting firm Marketing4results, seconds this, saying it is the only way to make it clear to people “how much money the hotel industry loses due to this”.Travel managers such as Benjamin Park have a certain amount of sympathy. At the same time, for any potential con-cessions when it comes to the flexibility of their business travellers, they expect a service in return. The Director of Pro-curement & Travel at Parexel knows that “if a cancellation is made just be-fore 6 p.m., it’s hard to sell the room elsewhere. I think that if hotels come down a little in price, then 24 hours in advance would be OK for the majori-ty of corporate clients. That's usually manageable.”A review of the booking behaviour of the largest HRS corporate clients in the last twelve months shows that the pro-portion of bookings cancelled within 48 hours of arrival is actually only around five percent. It sounds insignificant, but can quickly amount to large addition-al costs if the volumes are correspond-ingly high. As a result, many of Park’s

Chain reactionWhile globally active companies are up in arms regarding the more stringent cancellation policies introduced by US giants Marriott and Hilton, noted hotel industry experts are calling for others to follow suit. The conclusion: those who want flexibility should pay for it! What does that mean for companies? We take stock.

TEXT: ANKE PEDERSEN

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Christoph Carnier,

Merck: “These restrictions

have no place in corporate

rates.”

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TRAVEL MANAGEMENT

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New cancellation policiesThe implications for companies

For

82 % there is a strong

preference

For

1 % It does not matter

17 % of

business trips

will be cancelled.

Don’t know

The majority of customers are expecting

increasing costs due to the new cancellation policies.

However, only 5 %

are cancelled within

48 hours of arrival.

If, in the future, cancellations

within the 48-hour time

window incur a fee, large

corporate customers will face

additional costs totalling

millions.

If they have a choice between two hotels with the same number of

stars, same service and comparable locations, companies clearly favour

flexible hotels.

With this in mind, more than half of travel

managers (60%) believe that

achieving their business travel objectives is at risk.

59 %

32 %

15 %7 %

6 p.m. 6 p.m.

Yes No,because

we want to

negotiate

special con-

ditions.

No,because we

will not book

this type of

accommoda-

tion. Source HRS, n=97, August 2017

23

Cancellation policies

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colleagues also expect specific services in return for accepting

alternative cancellation condi-tions. In a survey of over one hundred HRS corporate cli-ents, a third of those ques-tioned planned to negotiate “corresponding special con-

ditions” in the current sourc-ing season.

“These restrictions have no place in corporate rates!”As the HRS survey also very clearly demonstrates, when it comes to re-stricting their flexibility in travel plan-

ning, corporate customers are no longer taking things lightly. 82 percent of those surveyed said “when choos-ing between two hotels with the same number of stars, same service and comparable locations, the hotel with the more flexible conditions is strong-ly favoured”.Schulze, who was head of Best West-ern Hotels Germany until 2010, is out-raged by this. In her opinion, the hotel industry is much too lenient. Her ap-peal to the corporate clients is as fol-lows: “If you want flexibility so much, then pay for it!”Christoph Carnier thinks the desire for planning security is quite understand-able. “I grew up in a hotel, I understand that, given my background”, says the travel manager at science and technol-ogy firm Merck. Nevertheless, today he works for a large company. “And now that I’m in this position, I'd say, I would prefer that the 6 pm rule remains for guaranteed bookings.” And of course, it’s about those guaranteed bookings. “If I opt for the best-buy rate, then I have to expect some restrictions. But these have no place in corporate rates.”

Benjamin Park even goes one step further, saying that the hotel industry itself contributed to this situation be-cause of a lack of transparency in its pricing policies. “With airlines, they let you see exactly how many seats are left. But that’s not how it is with hotels. They have gambled away a great deal of trust, because it’s not transparent for anyone,” comments the expert, in par-ticular pointing at the US market which is dominated by chains. Last-minute rates are often introduced that are bet-ter than the negotiated corporate rates. So it’s no wonder that a real trend of cancellations and rebookings has set in. Park: “If hotel chains gave a ‘best buy guarantee’ and negotiated rates were more attractive, no one would need to rebook and we wouldn’t need the can-cellation policy.”

Will independent hotels follow suit?Following the Starwood deal, there was an expectation on all sides that soon-er or later, Marriott would make use of its market power to recover the costs of the takeover – whether that was through higher rates or more stringent cancellation conditions, as we are now seeing. And it’s hardly surprising that Hilton, number two in the world, is fol-lowing in the same footsteps in the chain-dominated US market; and the new 48-hour regulations are current-ly still limited to the USA and Canada. However, the big question remains as to whether the rest of the industry – and in particular, the independent ho-tel sector – will follow the lead of these large companies.Wilhelm K. Weber, partner at consult-ing firm Swiss Hospitality Solutions (SHS), is entirely relaxed when it comes to this. He thinks that the “dogmatic, one-size-fits-all approach which the US chains are currently driving forward is completely misguided”. At the same time, he points out that there has al-ways been a “conflict of interests be-tween hotels and corporate clients”. Weber: “The customer wants maximum flexibility; the hotel wants maximum certainty. Each has an entirely opposite interests, but that's normal. I don't be-

Airlines as an example: the desire for greater transpar-ency in hotel pricing policy

Wilhelm K. Weber, SHS:

Chains think one-size-fits-

all? Think again!

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lieve that it will strain the partnership.”Even within the hotel industry, things are not as extreme as they appear at first sight. In fact, even ex-hotel boss-es Schulze and Schade are aiming less for a strict end to the 6 p.m. cancella-tion policy and more for a wake-up call for their colleagues. Unlike the glob-al chains, where pricing has long been the main objective, regional chains and privately-owned hotels are still holding back when it comes to this issue.This is why solution providers such as HRS are recommending a focussed dis-cussion of the topic. A hotel partner may opt for the 6 p.m. cancellation pol-icy or may not, if it doesn’t bring any particular advantage to the hotel, says Björn Nilse, Director of Hotel Solutions at HRS. What is crucial, however, is that individual hotels take this decision con-

sciously, and only when they have tak-en their own pricing and services into account. In order to do so, Nilse advises private hotels to see the more stringent cancellation policies being imposed by chains as an opportunity. The conclu-sion? If corporate clients want flexibil-ity, then offer them it!In the end, this could even result in a win-win situation for the independ-ent hotel industry and corporate cli-ents, believes Christian Temath, Head of Sourcing Solutions at HRS. This could be the case if one or two corporate cli-ents restructure their hotel programme and no longer simply turn to the chains. Temath is firmly convinced that this will happen, because free-of-charge cancel-lation up to 6 p.m. on the day of arriv-al is a must for almost all companies when sourcing hotels. At the end of the

day, the corporate client could then not only retain flexibility in travel planning but also – as demonstrated by count-less studies – reduce accommodation costs by up to 15 percent. And still get the same level of traveller satisfaction. Boycotting the big names explicitly is not necessary for this.

Independent hotels: cost-effective qualityUp to 15 percent saving potential

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Analysis in the top 50 business travel destinations, EMEA region | Survey period: January 2015 to the end of the first half of 2016;

comparison between identical categories with identical additional services (WiFi, breakfast)

Chain hotels Independent hotels Price difference

99 €

120 €

193 €

 84 €

107 €

178 €

Prices

vs.

vs.7,42

7,92

8,25

7,48

7,93

7,74

Ø guest

reviews

(from 0 to 10)

25

Stornorichtlinien

25

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But Zurich is certainly not a snip when it comes to conferences. Given the backdrop of the expensive franc, it’s easy to overlook the signs that the course is currently being set here for the digital transformation of the entire country. By 2025, Zurich wants to be the Silicon Valley of Europe – and sure enough, the city is already an epicentre of cool.

Sexy? Sure!

TEXT: ANKE PEDERSEN

PHOTOS: PASCAL MORA Most people associate Zurich with venerable grand hotels, quaint old-town streets and the world-fa-mous Bahnhofstrasse, the emerald green spar-kling lake and snow-capped mountains in the di-

stance. Maybe numbered accounts, neutrality and corrupt Swiss FIFA officials also come to mind. But one thing is for sure – and this is where the flashbacks end – the strong Swiss Franc comes first. ...Ouch!Most Swiss people can’t bear to hear about it any longer. And that’s particularly the case if they work in tourism or the MICE business. “The shock of the Swiss franc in 2013 has long since balanced out,” says Daniel Borchert, of Zu-rich’s Convention Office. Like so many, he is annoyed that people only ever sees the costs, but not the associated add-

26

MEETINGS & GROUPS

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ed value. “We’re not cheap here in Switzerland,” summaris-es Nicolas Bovet, whose business card states says he "sells beds" for Zurich’s 25hours hotels, “but guests get a lot of extras, that otherwise they would have to pay more for”.In fact, the extras are considerable. Extra time, for example. Thanks to Zurich’s central location in the heart of Europe. Even within the city of almost 400,000 inhabitants, almost everything is within walking distance – even if it’s only the next tram station. Or extra safety. In times of uncertainty and threats from all sides, hardly anything is more attrac-tive to business and conference travellers from abroad than the safety that legendary Swiss values such as reliability, punctuality and precision promises. Not to mention how multilingual the country is. Or the new coolness of the city.

Techno spirit and industrial charm meet guilds and tradi-tionsCool? Zurich? And how! The successful banking centre had already begun to develop into a paradise for creative types, hipsters and start-ups at the end of the last century. A good example is the annual street parade, which takes place each August. Launched in 1992, it took a couple of years to get going – but by 1999, it was drawing more than half a mil-lion ravers to Lake Zurich. Today, the Street Parade is the largest techno party in the world.As early as the end of the 1990s, the former industrial area had already begun to develop into a post-industrial hip quarter. The beginning was marked by the opening of a cultural centre in the former Löwenbräu Areal. With the

27

MICE in Zurich

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conversion of a nearby former shipbuilding factory into a cultural centre combining a theatre, jazz club and the La-Salle gourmet restaurant, the successful conversion of run-down industrial buildings into bars and restaurants, cultural and event locations is continuing. Even the smallest pos-sible niches such as the arches in the railway viaduct built in 1894 have established ready markets for experimental studios, galleries, fashion labels and delicatessens.The Toni Areal, a gigantic building complex consisting of

loft apartments, start-ups and the Zurich University of the Arts – a real hotspot for the creative economy – forms the western boundary of the trendy district. Also on site is – the completely new – Swiss Stock Exchange, much to the delight of the Sheraton hotel, which has been there for four years, and its neighbour 25hours. Conference planners also have every reason to get excited when searching for that “something different” for a Zurich evening event. The Prime Tower opened in 2011 on the site of a former gear factory, now a 126 metre high glass tower with a rooftop restaurant and very striking views over the city, lake and mountains.

In the meantime, the new creative types, IT workers and countless SMEs have moved on, into Altstetten, further to the west. “The district is still working on its reputation,” ex-plains Gerard Ambrosetti of the new Placid Hotel, “but new companies and loft buildings are increasingly making the move to the area”. The same applies to radically minimalist design hotels such as the Placid, which, with its restaurant and rooftop terrace, is acting as host and meeting place for a neighbourhood that is still young. But the bare concrete architecture, floor-to-ceiling windows, even in wet rooms, and the first “digital mini-bar” – a guest sends a message, room service delivers – is daring to bring an entirely dif-ferent type of hospitality to the fore.

And Google’s new European headquarters? Zurich, where else?It’s not just on the fringes of Zurich where the clocks tick faster than they used to these days. It's also true of the centre of the city, on the site of the former goods station: here, on an area of 550,000 square metres, where pros-titution and drugs prevailed during the 1990s and early 2000s, an entirely new urban district is springing up, with hyper-modern buildings for living, working, socialising and shopping. “The Europaallee project is being built on one of the last free spaces in the city centre,” remarks Olivier Ger-ber, manager of the “Marktgasse” on the other side of the Limmat and the person responsible for yet another new, ultra-cool lifestyle hotel. “This is the most crucial innova-tion of the last twenty or thirty years.”

Red light district to par-ty area: 25hours, in the middle ground between “hipster” and “business

traveller”

“We don’t come cheap, but guests get a lot of extras.”

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Red light district becomes party areaThe very essence of the district has also changed, in par-allel to the urban transformation. Langstrasse, adjacent to Europaalle, is no longer (just) a red light district, but also a great area for socialising. And that makes it ideal for the “We are different” self-image of the 25hours hotels. “Zu-rich is sexy, and now being here has become really hip,” says their bed salesman Nicolas Bovet. And the worldwide Google corporation seems to think the same. By 2020 the company, which is worth billions, will put their new Eu-ropean headquarters into operation. “2000 out of 5000 employees are already on site,” says Bovier, whose hotel aims to be the middle ground between the two universes of “hipster” and “business traveller”. “We’re even getting our own tram station from spring 2018.”Meanwhile, over at Zurich airport, much more than a new part of the city is springing up. There is talk of “The Cir-cle”, a congress centre with 180,000 square metres of commercial space including offices, twelve restaurants, boutique-lined streets, a day clinic and private parking. “We are building a completely new city there,” announces Sabrina Jacob proudly, whose Hyatt Hotels will not only operate a Regency and a Place, but also the Convention Center itself.The total invested in this joint project involving the airport and the Swiss Life insurance company is around a billion Swiss francs and aims to ensure that the banking metrop-olis can finally draw level with MICE cities such as Amster-dam and Vienna. Although countless new event locations

and hotels have sprung up recently, Zurich, according to Jacob, simply doesn’t have enough capacity to hold large multi-day congresses. However, this will soon change when The Circle opens at the end of 2019, offering more than 5000 square metres of event space and 554 guest rooms. And if that’s still not enough, a collaboration has been es-tablished with the Radisson Blu, just opposite. Jacob: “It’s about strengthening Zurich as a location.”In the meantime, the “Digital Switzerland” location initi-ative, an alliance of companies, universities, politicians and the World Economic Forum, is working on the digital transformation of the country, to “strengthen the Great-er Zurich area as a digital hub and to support the Swiss economy during the transition to the digital age”. If that’s not cool...

The race to catch up: moving to the top of Eu-rope’s congress list with

“The Circle”

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Hotels 01 Zurich Marriott HotelPole position on the Limmat. Just 550

metres from the main train station, the five-star

hotel is just as easy to reach on foot as the famous Bahn-hofstrasse shopping street. It’s not just

the central location but also the refreshing

expanses of the confer-ence area, renovated in 2016,

that inspire you to attend events with a view over the park and the city. 266 rooms, 16 flexible conference rooms with natural light – from boardroom to ballroom – for up to 650 people. Neumühlequai 42, 8006 Zürich

02 Swissotel ZurichTop-to-toe facilities for conferences. The first Swissôtel in the world, extend-ing over 29 floors, is not only the highest in the city but also one of the largest in the banking centre, offering event space for up to 800 people. The location of the four-star hotel is also ideal: the Oerlikon station just opposite is halfway between the centre and the airport. 347 rooms, 17 conference rooms offering natural light, plus two ballrooms with interpreting booths and a smoking terrace. Schulstrasse 44, 8050 Zurich

03 Motel One ZurichLuxury budget in the historical heart of the city. With its original design the hotel in the former telegraph office pays hom-age to the nearby Alps, Lake Zurich and chocolate, having opened only in July 2017. At the same time, it reflects the val-ue and elegance of the city. In particular, the colonial-rustic (gin) bar and the wide corridors exude grand hotel charm. 394 rooms, breakfast area for presentations. Stockerstrasse 61, 8002 Zurich

04 25hours Hotel LangstrasseBetween rail tracks and red lights. The 25hours brand alone usually guarantees stays and events of a different kind. But with Zurich’s second 25hours, launched in April 2017, that is not only the case in-side the hotel walls. A themed red light floor inside represents the red light dis-trict outside. 170 rooms, a meeting room with natural light for up to sixty persons, flexible atelier (35 square meters), break-out areas. Langstrasse 150, 8004 Zurich

05 Park Hyatt ZurichFor cosmopolitans. The brand delivers what it promises. The fine hotel with its unique pieces of art offers the most spa-cious rooms in the city (from 36 square metres), is just five minutes away from the main rail station street and three min-utes from Lake Zurich, and it is also Zu-rich’s only international luxury hotel. 138 rooms, eight flexible meeting rooms in-cluding ballroom for eight to 300 people. Beethovenstrasse 21, 8002 Zurich

06 Marktgasse HotelHome away from home!

Tiled stove, stucco ceilings and rooms featuring puritan-ically cosy de-sign stretch across three buildings dat-ing from 1488. This

is the welcome that awaits the guests of

this four-start hotel in the middle of the historic old town, which opened in 2015. It also has its own deli, bar and restaurant. It's as authentic as it gets. 39 rooms and suites, salon and li-brary for board meetings and events for up to 14 people. Marktgasse 17, 8001 Zurich

07 Sheraton Zurich HotelThe hipster in the trendy part of town. The former industrial quarter of Zurich West has been a magnet for start-ups, bars and artists for around ten years. This is where the creative elite of the comes together. So it’s no surprise that even the Sheraton (opened in 2014) feels cooler, trendier and more chilled than its sister hotels. The perfect setting for cre-ative meetings. 197 rooms, eight flexible, light-flooded conference rooms for eight to 230 people. Pfingstweidstrasse 100,8005 Zurich-West

08 Placid Hotel ZurichEverything but ordinary. Exposed con-crete walls and floors, floor-to-ceiling windows, glass showers – the radically reduced urban chic of the four-star hotel, which opened at the end of 2016 in the former industrial quarter of Altstetten, is the perfect setting for meetings outside the mainstream. 87 rooms and lofts, sem-inar rooms with natural light for twelve to 150 people. Buckhauserstrasse 36,8048 Zurich-Altstetten

09 Radisson Blu Hotel, Zurich AirportMeetings with Alpine and runway views. A new era of airport hotels was ushered in with the opening of this business and lifestyle hotel in 2008. It’s chic, modern and – because it is literally five minutes from the gate – ideal for international conferences. 330 rooms and suites, con-ference centre with 52 multi-functional conference and event rooms, including a ballroom for up to 600 people. Rondellstrasse, 8058 Zurich

Event & Special Locations 10 Samsung Hall The most modern event centre in Swit-zerland. Samsung Hall opened at the start of 2017, just two metro stops from Zu-rich’s main train station. Everything is top of the pops here: the sound, light and vid-eo equipment, as well as the hydraulic tel-escopic stage which can be split into six parts, the 120 metre-square LED wall and the catering, created by experienced in-house chefs. Four main rooms allow for all possible event formats, for 50 to 5000 people. Hoffnigstrasse 1, 8600 Düben-dorf (Zurich-Stettbach), www.samsunghall.ch

11 Halle 622Turning old into new The entire area behind the Oerlikon railway sta-tion used to con-sist of grey indus-trial warehouses. Since the start of 2017, Halle 622 has been operating as a multifunctional location for concerts and corpo-rate events – ranging from general board meetings, through product launches, to trade fairs. The hall itself has no pil-lars (1750 square metres) and has a gal-lery (450 square metres) and foyer (880 square metres), and can accommodate 360 to 2000 people. Therese-Giehse-Strasse 10,8050 Zurich-Oerlikon, halle622.ch

12 Giesserei OerlikonPost-industrial charm. This former found-ry has now been transformed into a cool restaurant, with culinary offerings that are as authentic as they are innovative. All the rooms, from the Cheminée room right through to the workshop, can be

MICE hotspots in Zurich

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hired out individually. It’s a great idea: meet and dine against a backdrop of worn brick walls, shabby-chic radiators and old water pipes. Six banqueting rooms for 20 to 200 people. Birchstrasse 108, 8050 Zurich-Oerlikon, www.diegiesserei.ch

13 Kulturhaus HelfereiReformer Zwingli’s former home. Right in the middle of old Zurich, this building dat-ing from 1270, is steeped in history. It is available for events of all kinds – wheth-er it's in the quirky Zwingli parlour or the neo-Gothic chapel, the absolute show-piece of the former “Schulei”. Six meeting rooms for eight to 200 people. Kirchgasse 13, 8001 Zurich,www.kulturhaus-helferei.ch

14 Aura360-degree panoramas. In 2016, the Aura hall near Paradeplatz was named the best Swiss event location, above all thanks to the benefits of a 3D surround-sound sys-tem, plus eight high-performance projec-tors that can project animated worlds,

landscapes and backdrops onto the walls. Perfect for product launches and training sessions. Event room (450 square metres), foyer (140 square metres) plus bar and smokers' lounge (250 square metres). Bleicherweg 5, 8001 Zurich, www.aura-event.ch

15 The Circle ConventionCentre Zurich AirportThe objective: to become a great con-ference destination. A city of its own is coming to life, right next to Zurich Air-port. At its core, a conference centre with 16 meeting rooms for up to 2300 people, a Hyatt Regen-cy and Hyatt Place, twelve restaurants, shops and of-fices across 180,000 square metres. Opening is planned for the end of 2019, with bookings for large events be-ing taken for summer 2020 onwards. www.thecircle-conventioncentre.ch

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Locations mentioned in

the main text

1 Löwenbräu Areal

2 LaSalle

3 Toni-Areal

4 Swiss Stock Exchange

5 Prime Tower

6 Europaallee project

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