Hyatt’s Andrew Ashmore tells ABTN about the company’s latest plans and how it is faring in the corporate market in 2012
How has business been for Hyatt so far in 2012?
In terms of numbers, it’s similar to last year for both room nights and revenue. There’s probably a slight increase on revenue but generally it’s pretty flat. There has been an increase in group business but leisure and corporate has been flat. Considering what’s going on economically, it’s not been that bad although there’s a lot of caution out there. While there’s a lot of gloom and doom, if you look at the markets, they have been quite resilient. I don’t think there’s going to be a big collapse in business but there are ripples caused by what’s going on in Europe at the moment.
What trends are you seeing in the corporate travel market?
People are still travelling and still holding meetings. For the UK, it’s been an unpredictable year, particularly with major events such as the Olympics and the Diamond Jubilee, but we’re still quietly confident about this year. Germany is similar to the UK while in Russia we’re seeing very good growth. We opened offices in Moscow and Cairo 18 months. Even with the revolution in Egypt, there’s still business as people have to hold meetings and do deals. We knew that Russia and the CIS states would be good for us. I also think that the entertainment side of corporate travel will go from strength to strength because people will always want to go to rock concerts. It should really be considered as its own sector and will continue to grow.
How competitive is the corporate hotel market at the moment?
You have to work harder for the business these days and you also have to work smarter. In RFPs, people are talking about add-ons – in most corporate RFPs, they are expecting things like internet and breakfast to be included now. That’s not just the case for Hyatt but all hotel chains. Relationships are also playing a key role and we have to make a difference, for example, by trying to respond instantly to emails. On the groups’ side, there are signs that the lead-in period could be becoming longer again. We’ve had a lot of MICE enquiries for 2013 and 2014, but it could be that we’re one of six destinations being considered by the client.
You held your UK Fair at the Hyatt Regency in Sharm El Sheikh last month – why did you choose Egypt for this year’s event?
We wanted to support the destination. I’m confident that once the situation in Cairo is over, Egypt will pick up strongly. It’s a classic destination with the Nile and the Red Sea resorts and its lifeblood is tourism. It has always bounced back quickly in the past from events such as the Luxor shootings and the bombs in Sharm. But the revolution has been going on for over a year and the hotels have suffered everywhere. Sharm is a wonderful destination and it’s a long way from what’s happening in Cairo, and you never feel threatened in the resort. People are coming to Sharm but they are going to the two and three-star all-inclusive properties. It’s become a very price-sensitive destination. But I predict that there will be a recovery in Egypt in the last quarter of this year. The rest of the Middle East is also suffering – Dubai is very expensive and is getting very strong competition from the likes of Abu Dhabi.
Which destinations are performing well for MICE events?
We are seeing a lot of demand from groups for Turkey – Istanbul is very popular and is a big MICE market. Germany remains huge for MICE as well. South America is also doing well on the business travel side although the numbers are still relatively small.
What new openings has Hyatt got coming up in the next few months?
In Europe, we have the Andaz Amsterdam opening later this year. It’s only got 120 rooms and is in a great location in the centre of the city. There is also the Grand Hyatt in Kuala Lumpur opening in July and the Hyatt Regency in Vladivostok, Russia, in December. There will be a Park Hyatt in Siem Reap in Cambodia from the first quarter of 2013 which is a takeover of the existing Hotel de la Paix. We continue to concentrate on key strategic locations around the world.
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