HEDNA's European Global Distribution Conference held in Berlin from June 14-16, 2016.

by Galina Mereacre

Attending a conference is a professionally rewarding experience. As we find out that we will be
representing ESSEC at HEDNA's European Global Distribution Conference in Berlin, Jessica and I took the responsibility seriously – preparing and trying to give out our best in order to make our institution proud.

HEDNA (Hotel Electronic Distribution Network Association) is the only global forum exclusively dedicated to the advancement of hospitality distribution through strategic collaboration and knowledge sharing. For over 25 years, the non-for-profit association has provided members with networking platforms, educational opportunities and professional resources to help them navigate the ever-evolving landscape of hotel electronic distribution.

For a soon graduated MBA in hospitality this was a wonderful opportunity to learn about the latest trends in the industry, to get a better grasp of the on hands on experience, and finally assess how ready we were in our turn – for the beginning of our new careers. During the 3 day conference, we got to listen to some of the biggest names in the industry, participate in different workshops and even engage in hallway conversations with these experts. We were pleasantly surprised to conclude that our MBA program prepared us well in order to understand and contribute to solving the main challenges the hotels are facing today.

"Jonathan’s inspiring speech inspired  a deeper understanding of the hotel industry's challenges and opportunities"

We were again reassured just as it was a Peter O’Conor’s e-commerce class that emerging consumer and industry technologies, guest expectations, business strategies, market forces, and organization strategies create a compelling and essential need for hotel distribution to continue to evolve and transform. HEDNA's own research presented a compelling vision into the future of hotel distribution presenting us with the various factors driving the need of change as well as discussing optimal solutions.

Among some of the greatest speakers we were honored to attend was also Jonathan MacDonald - a world-renowned speaker that provided thinking, new perspectives and avenues of thought for companies such as Google, Apple, P&G, Unilever, Nestlé and IKEA. Jonathan’s inspiring speech inspired  a deeper understanding of the hotel industry's challenges and opportunities and enabled hoteliers to utilize knowledge to explore what the future could look like, and whether they are building the future hotel industry as the one they want to live in.

The conference was concluded by another wonderful motivational speaker – Jim Pickell  also founder and CEO of HomeExchange that discussed innovation, disruptive technology, and data and how these aspects are already removing traditional barriers and friction points in reshaping and delivering a better hospitality and travel experience.

Especially valuable I found the opportunity to network with other professionals, which is an exceptional chance for our professional development and horizontal exchange of experience. We got the chance to meet professionals from all areas of electronic distribution including hotels, representation and management companies, GDSs, switch companies, OTAs, tour operators, software and payment service providers, industry consultants and educational institutions.

As I am looking to build a career in digital marketing, attending Hedna conference and gathering valuable industry insights had a significant contribution to my future professional expertise. I feel beyond lucky to have had the opportunity to attend this event along with professionals from all over the World.

IMHI Forum round tables: 2016 EU Forecast

by Daniel Alexandre Portoraro

After any headline year, it’s always easy to be pessimistic. After a record-breaking 2015, in which hotel transactions topped $85 billion, single asset transactions broke through the $47 billion dollar level, and Blackstone claimed the largest ever portfolio acquisition in eight years (Strategic Hotels & Resorts for $6 billion), common sentiment may be “things can only go down from here.”

And while this may very well be the case, let’s not mince words: Going down from $85 billion in transactions is nothing to scoff at.

In May, at the IMHI Forum, Thomas Lamson, Executive Vice President of Transactions for JLL France, tempered any fears the audience may have had in regards to the robustness of the European hotel brokerage market. According to him, while the market would no doubt slow down (again, how can’t you, from nearly $90 billion?), foreign investment would continue its flows into the continent, with gateway cities such as London and Paris leading the charge.

According to Mr. Lamson, a startlingly overwhelming amount of all foreign cash inflows was focused on the French capital.

Indeed, if there’s one thing that may raise caution, it’s the latter’s prominence within the French transaction market. According to Mr. Lamson, a startlingly overwhelming amount of all foreign cash inflows was focused on the French capital.

And the numbers are there to back it up.

According to an HVS report, in 2015, while France enjoyed an increase of 16% in single asset transactions, 80% of those occurred in the Greater Paris area. While this no doubt satisfies investors already present in the metropolis, it does raise concerns about the market’s centralized nature. This figure overshadows the 63% of UK single asset transactions focused on London, demonstrating the latter’s nation as a more spread out investment environment, with burgeoning growth in markets such as Manchester, Birmingham, and more.

But it’s one thing to look at where the money’s going, and another to see where it’s coming from. In 2015, private equity investment into hotels reached nearly 28% of all inflows, thereby demonstrating the financial community’s continued appetite for the hospitality industry; this figure was tailed closely by institutional investors (pension funds, insurance companies, etc.) showing that even typically risk-averse investors are interested by the manageable, variable returns hotel properties can offer.

And as always, the Middle East demonstrated its sustained interest in European trophy assets, with the Qatar Investment Authority purchasing the star-studded Maybourne Collection – comprised of Claridge’s the Connaught, and the Berkeley – for €2.75 billion euro.

Again, however, while 2015 may have been a banner year, it’s important to note firstly, the strong fundamental performance of hotel assets driving demand, a continued low-interest rate environment, as well as the fact that the Q4 of 2015 accounted for a third of the year’s total transaction volume, which may very well spillover into 2016. And this is to say nothing of the continued ascendancy of the German hotel market, and revitalization of once-embattled tourism hubs such as Spain and Italy.

Even if 2016 doesn’t turn out like 2015, the transaction market may very well have a rosy period ahead.

During the last IMHI Forum, interesting topics were discussed by industry professionals. Current student Daniel Portoraro was present to report about the most memorable messages of the day.

IMHI Forum 2015

One of the characteristics that the ESSEC IMHI Center of Excellence in Hospitality, Food and Travel prides itself on, is its ability to bring together multiple and powerful players in the hospitality industry to initiate debates or prompt industry related discussions. On the 6^th of May, the Center certainly lived up to its reputation. The 2^nd annual IMHI Forum brought together 29 partner companies, instigated three different round table discussions and provided the current MBA in Hospitality Management IMHI students with the opportunity to meet industry leaders and discuss their future career prospects.

Moderated by Professor Peter O’Connor, the first Round Table focused on the topic of ‘Careers in Hospitality Distribution’. Joined on stage by Cynthia Castillo, Head of Customer Program & Relationship Management at Amadeus and two IMHI graduates, Julie Cheneau, Director Market Management at Expedia and Etienne Faisandier Group Director of Revenue Management at Movenpick Hotels , the discussion centered around their passion for the hospitality industry and advice for students interested in a career in revenue management.

As a position in revenue management heavily focuses on numbers, do you need numerical skills to be able to work in this function? Julie mentioned that analytical skills are highly necessary however you also have to have the ability to be critical and find meaning in the numbers. Expedia are looking for people with a vision, who can adapt to the company, want to learn and are motivated. Cynthia expanded on this by mentioning that to be successful in the role, the candidate must have both hard and soft skills to be flexible and be able to make sense out of the information. Etienne emphasized that the ability to think outside of the box and willingness to go the extra mile are attractive attributes to have. The pace of change is speeding up and you have to be able to keep up! Ask yourself the question, what can you bring to the company?

The second Round Table was dedicated to the topic of ‘Luxury Hospitality Management’ and was moderated by Denis Morisset. The guest speakers were Franka Holtmann, General Manager at Hôtel Le Meurice, Jean Faivre, AVP Operations Western and Southern Europe Hilton and Michael Boroian, President at Sterling International. All speakers swiftly agreed that the luxury industry is experiencing a period of transition. The market has changed with more emerging markets being interested in luxury and people becoming more impatient. Franka commented openly that you have to work harder than ever to deserve your guests. Hotels must go back to the basics with an emphasis being put on service. Everything is about the customer, it is that simple said Michael. It is also due to this that people from the luxury hospitality industry succeed when put in charge of other luxury brands. They know the customer as they have met them, spoken to them regularly and have had to solve many problems that have arisen with a smile! They are internationally oriented because they work with people from all over the world and have cultural sensitivity. Jean also stated that luxury customers have shifted their focus on being someone and experiencing things rather than having things. The industry must be agile in order to understand how the retail industry works.

Is it a challenge to find people to work in the luxury hospitality industry? Jean raised a very good point when he mentioned that you do not have to be born into luxury to be able to work in luxury. Hilton Worldwide is interested in people who are warm and passionate. Franka strongly agreed and also noted that she hires people on their passion as luxury is a state of mind. Jean believes that there are many opportunities for ambitious young people and thinks that their success in the company depends on the recruitment policy and how they are integrated into the company. Denis Morisset also offered a very valuable piece of advice to the students, travel and see the world. This will help you know the customer and become culturally sensitive.

The third and final Round Table was on the topic of ‘Innovation and Value Creation’ moderated by Professor Nicolas Graf with Yves Lacheret, Senior Vice President Entrepreneurship Advocacy at Accor, Michael Levie, Board member at SnapShot GmbH & co-founder of CitizenM and Xavier Destribats, President Europe, Executive Operations at Kempinski in the discussion panel. Innovation seems to be the buzzword of today, everyone is talking about it and attempting to inspire their employees to be more innovative. Yves said that innovation is any bright idea that can add value for instance by generating a new product or service. Michael quickly stepped in to add that people tend to confuse innovation with new creation however that is not always the case. Innovation is so important that Kempinski have spent the last 4 years heavily investing in it. Accor are also attempting to boost their innovation by working with companies outside of the group and especially with start-ups to come up with new ideas.

So how can you foster creativity and innovation? According to Xavier, you can’t put people in a room for a couple of hours and expect them to be innovative, this is why having an innovation department will not automatically lead to success. Everyone should be involved in the process and staff should be encouraged to be innovative by being constantly open to new things and experiences. All speakers agree that empowerment is an important factor. Most individuals want to belong to an organization which means having the passion to get up every morning and to do your best. They also want to participate and be recognized for their contribution. Michael stated that the hospitality industry has become very good at following the guests instead of innovating and also at making excuses as to why things have gone wrong. He says that instead of making excuses, you should understand why things went wrong and try to fix them. You can’t innovate and create new services if you can’t get the basics right. Michael also followed on by mentioning that organizations need to share their values when recruiting, training and create an environment where those values live. People will produce better ideas which are more likely to be successful in this way.

Thank you to all the guest speakers, the companies who participated throughout the day, the students, the alumni and staff who organized the event. The day provided everyone with a unique opportunity to get an insight into the current trends of the hospitality industry and what is in stall for the future.

It’s all about competencies: ESSEC Hospitality Forum

By Gabriella de la Torre, MBA in Hospitality Management, Mexico & USA, 2012-2014 2nd Year

“The end of education is to see men made whole, both in competence and conscience.” - John Dickey

On a rainy Friday in Cergy, IMHI students, alumni and the general public were invited to the program’s first ESSEC Hospitality Forum. This event featured three roundtables with a variety of industry professionals that aimed to provide insights as to where the hospitality industry is heading, as well as to offer a greater understanding of the individual competencies that are required to thrive in each of the three domains presented: Hotel Operations, Finance & Real Estate and Distribution & E-Commerce. Companies represented at these roundtables ranged from major hotel companies, such as IHG, Accor and Starwood, to real estate advisory firms, JLL, to online travel agencies, Expedia. Each of the nine panelists drew from their personal experiences to answer a range of questions aimed at diving deep into the intricacies and challenges facing their particular area of expertise. Audience members were also able to virtually participate in these insightful discussions by sending their questions to the various panelists via Twitter.

These roundtables were then followed by the official launch of the program’s junior consulting organization, Junior IMHI Hospitality Consulting, highlighting yet another opportunity for future students to develop many of the core competencies, knowledge and experience that were addressed by the panelists.

After listening to industry executives throughout the morning, both IMHI and ESSEC students had the chance to further explore and share their competencies at the career fair that featured 21 different hospitality companies that same afternoon. Representatives from each of these organizations welcomed students to their stands and presentations in order to share information about potential career opportunities and overviews about their company cultures and identities. This part of program was especially crucial for (and well-received by) this year’s graduating class, who will receive their diplomas in just a little over two months and are therefore diligently executing their career searches.

The first ESSEC Hospitality Forum was a true success for both students and alumni. This event highlights not only a willingness to constantly create new opportunities for students within the IMHI program, but also further enhances one of the program’s main goals: to facilitate and foster the development of skills, knowledge and competencies in every one of its students for their respective futures.