Developing countries have the benefit of space when it comes to building airports and accompanying facilities. It also means they are better equipped to tailor the layout and facilities for business travellers including accommodation options. In the case of Istanbul New Airport, currently under construction, it's also the opportunity for hotel group YOTEL to put several test cases into one new flagship property.
BTiQ spoke to Hubert Viriot, CEO of YOTEL and Kadri Samsunlu, CEO of the airport's operator Ä°GA Airport Operation to hear what goes into new infrastructure builds, the future of airport hotels and what global expansion means for corporate deals.
BTiQ: Tell us a little about the airport development and why a hotel partner is important.
KS: Soon 100 million people will pass through Istanbul on a yearly basis. Istanbul New Airport will be competing with Frankfurt and Dubai when it opens on 29 October 2018 so we need to ensure travellers need a positive experience. We don't want passengers to feel there is only two hours to spend in the airport and as the biggest at 1.4 million square metres we are creating a global hub and terminal under one roof.
Hotels are important to airports whether there are cancellations, early or late arrivals. We chose YOTEL for the brand of the hospitality business as it wasn't just commercially viable but it's unique — a technology-driven business model and different concept for airports. It's the biggest room number in a terminal in an airport, 461 rooms across airside and landside, and second biggest globally.
HV: The new international airport will be phenomenal and the biggest in the world. I'm excited by the vision of the airport as a global hub ahead of others like Dubai. We have experience of airport properties at Heathrow, Gatwick, Paris and Schiphol and the only regret is that those aren't bigger; other airports don't have so much space.
It's important not just for travellers but for the organisations that want to establish themselves near an airport. The area will develop like it has been between Shanghai and its new airport; we're likely to see that new development in Istanbul as it's the ideal meeting place for entrepreneurs both domestically and globally.
BTiQ: What is the opportunity for airport hotels?
HV: Being airside is huge business for passengers especially for those in transit which is a big market for Turkish Airlines [which will be operating from the airport]. There will be 100 cabins airside which are great if you have no luggage, it's convenient and can buy hourly rates. Then 300 cabins are landside targeting corporate, meetings and airports business.
We've done a lot of research into the traveller and how they function. There are lots of demands at airports which we can tap into.
- Passengers
- Suppliers, airports, airlines
- Economy of its own around it - business parks are around most airports
- Ideal meeting space - you can organise global meetings easily
Traditionally airports had luxury hotels but it's a contradiction to what travellers want. Price is important to economy passengers and some corporates so it's a waste to buy luxury and it doesn't always work. So we have to be reasonably affordable and as we provide an hourly rate too it means sometimes we have a triple level of occupancy.
BTiQ: What does this mean for business in Turkey specifically?
KS: Turkish Airlines [and the number of passengers in Turkey] is growing aggressively so with airside travel we'll have no issue getting customers.
We're proud to have a British brand in Turkey. It's a business partnership to help the new airport and also showcase to all tourism players that they should consider doing something different. We want to attract companies like YOTEL especially as the technological solutions will be more important and different. If they innovate they will be different and welcomed; the model is unique and new for Turkey.
HV: The hotel market in Turkey is well established but still quite traditional so we're a real part of this forward-thinking airport that will get the locals thinking too, such as mobile.
BTiQ: How important is technology in the development of both the airport and hotel?
KS: Technology in the airport is all handled via mobile. There are 3D maps, directions, gate information before leaving home. There's the IoT side too and we expect YOTEL to complement that through speedy Wi-Fi, access via mobile check in and integrating the loyalty programme into hotel operations. We want to feel the same level of service quality and benefit from technology.
HV: We have to allow travellers to connect easily and use their own devices anytime anywhere. Customers are using this technology because it's easier, especially airside as you don't have much time so it needs to be simple and easy. YOTEL has a partnership with Plug and Play where we provide a brief and they look to the entrepreneurs to give us trends in the market. Their new ideas, from software to robotics, means we can build better and we need to keep reinvesting.
BTiQ: Where does this hotel sit in YOTEL's overall growth strategy?
HV: YOTEL has been growing rapidly over the last two years; there are 20 projects running now but it's selective growth in key markets, cities and airports.
There's major growth in Europe with multiple hotels in UK, Portugal and Switzerland. We're already at Paris CDG but now also focused on the Paris market as well as Amsterdam signed and London in the pipeline. There is great interest from the US such as San Francisco, Miami, New York, LA, Washington and Chicago.
We'll approach Asia in a targeted manner where we have a hotel in Singapore but maybe could open in Australia or Japan. Dubai was our first in the Middle East and flagship for GCC so there's major growth opportunities there too — we really focus on key partnerships.
BTiQ: What does this mean forbusiness travel at your properties?
HV: There's a huge trend for corporate demand as they're careful on spend. It's ideal to have a sense of luxury and for a property to feel friendly, but at a price point that meets corporate needs.
Corporate interest is growing so we can pitch global accounts as the number of hotels grows. Some companies and people are switching their style of accommodation, which means we can compete on global accounts.