Georges Panayotis: Tables have turned and the market righted

Α Decrease font Enlarge font
Tables have turned and the market righted

Life is an eternal new beginning, but the cycles follow one another with changes we may learn from. Forty years ago the advent of hotel chains and their economic model adapted to the 20th century cast a cloud over the community of independent hoteliers. With an innovative, standardized, secured, marketed product, hotel chains drew customers toward them that were looking for a good value for price and a pertinent location along communications axes and in business centers.

In order to provide countries with the modern hotel supply needed to assuage their ambitions for tourism, public authorities have facilitated development and provided subsidized loans while inflation equally lightened the cost of reimbursements.

The Poujadist reaction of so-called independent hoteliers was all the more vehement since the State no longer wanted to close an eye on a gray economy, fed by cash flows and arrangements with taxes and social charges. Through the transparency of their computerized management methods, chains seriously upset an ancestral model and also attracted a new clientèle that had never been tempted by commercial accommodations, due to a lack of means or desire.

Forty years later, a new revolution has upset a model that had gotten a little too big. The quest for optimum profitability, the increase real estate, fiscal and social charges, real estate speculation and many other independent factors of the market have led the hotel industry into an inflationary bubble that the "sharing" supply is painfully reabsorbing.

The pattern is comparable with newcomers that are appreciated by clients. These new actors shrewdly play on the rejection of a certain hotel supply that saw its price skyrocket with the supply shortage, whose quality was damaged by the absence of regular capex. The backlash is brutal and severe, but is it time for a war?

Legislators will always lag behind societal changes and, while it is necessary to guarantee fair competition, the State will dictate the behavior of and choices made by customers. Regulation is necessary and possible through the intelligent application of existing laws and regulations. Cooperation between all members of the Hospitality family will be more efficient and beneficial than rear guard action.

The essential marketing principal in which supply creates demand may also be applied to the New Economy of Hospitality. Not all AirBnB guests have been embezzled from conventional commercial accommodations, although the impact on occupancy rates is real. The cake has generally been growing over the years and the hotel industry must ask inquire as to why its relative market share is down.

Adjustments are underway and involve strategic considerations. We are already creating a trend among leading hotel groups that are focusing on the strength of their distribution, globalization of their presence and multiplication of management and franchise contracts to accumulate a maximum of fees. Those that will be outpaced in the race for size may opt for the niche market, by recovering what brings strength to the hotel trade through lifestyle, hybrid and avant-garde concepts. On the other hand, banality and mediocrity will have trouble finding takers.

New alliances should not be excluded, partnerships between old enemies are even desirable provided the customer finds what he wants. Because there is one truth that has not changed in the last forty years: the market will always have the final say.

Source: Hospitality On

 

GEORGES PANAYOTIS, PRESIDENT & CEO - MKG GROUP

Georges Panayotis is President of MKG Consulting. Born in a family of hoteliers for three generations, Georges Panayotis, 51, left Greece at the age of 18 to pursue his studies in Political Sciences and to obtain his Master in Management at the French University of Paris Dauphine. He then joined the Novotel chain, which will become the Accor Group, to manage the International Marketing Division. After developing specific marketing tools for the hotel industry, he left the group in 1986 to start his own company, MKG Conseil, now MKG Group. In twenty years, the group has become the European leader in studies and consulting for the Hospitality industry. The company employs over 100 people in four departments: marketing studies, database, quality control and trade press, with two publications HTR Magazine and Hotel Restaurant Weekly. The company helped the development of over 2,000 hotels in France and in Europe, with offices in Paris, Cyprus, London and Athens. Georges Panyotis is the founder of the Worldwide Hospitality Awards and the Hotel Makers Forum, and the author of several publications on Marketing and Operations in the hotel business, He is a regular consultant for several television channels, among which Bloomberg Television, and radio networks.

Tornos
  1. 08/07 19:35

    WTTC | 6 actions to tackle overcrowding

  2. 08/07 18:47

    UNESCO | Postponement for the Inscription of the Minoan Palaces on the World Heritage List

  3. 08/07 17:43

    GEO France discovers and glorifies the Aegean islands

  4. 08/07 17:39

    Targeting the Turkish market: Press and fam trips from the Thessaloniki Tourism Organization

  5. 08/07 17:23

    Waterways | Ministry of Shipping: Positive opinion for 29 – The process for another 5 is underway

  6. 08/07 14:51

    Kimolos “champion” in the world’s cleanest waters

  7. 08/07 13:54

    Athens, the first city to join the Blue Cities Alliance

  8. 08/07 13:45

    Free transportation for visitors to the beach of Schinias - Marathon National Park

  9. 08/07 12:31

    Shocking fine in Spain for British tourists without health insurance

  10. 08/07 12:26

    Gastronomic Tourism in Crete: Elounda Collection at the Center of International Attention

  11. 08/07 11:59

    Thomas Cook Bankruptcy in Germany: Sentido Hotels Creditors Fully Compensated

  12. 08/07 11:47

    Germans on holiday: Who they travel with, what spoils them, what they would do in a... shipwreck

  13. 08/07 11:18

    KEDE: Proposal for a financial program to upgrade the thermal springs

  14. 08/07 11:15

    Kastelli: The new airport of Crete needs infrastructure

  15. 08/07 11:15

    Kastelli: The new airport of Crete needs infrastructure

  16. 08/07 11:04

    Journalists from Sweden explore the authentic Santorini

  17. 08/07 11:02

    Michael O’Leary: Ryanair vs von der Leyen | “Protect flights over France or resign”

  18. 08/07 10:21

    Wyndham Opens First Cave Hotel in Cappadocia

  19. 08/07 10:21

    Wyndham Opens First Cave Hotel in Cappadocia

  20. 08/07 09:04

    Marriott: Asia-Pacific Luxury Travelers More Demanding Than Ever

  21. 08/07 09:04

    Marriott: Asia-Pacific Luxury Travelers More Demanding Than Ever

  22. 08/07 08:32

    Advertising promotion of the Cyclades, Mykonos and Santorini to TUI Netherlands customers

  23. 08/07 08:29

    Austrians are excellent tourists: They travel and spend a lot...

  24. 08/07 07:57

    Saladi Project: New €266 million tourism and housing investment in Ermionida

  25. 08/07 07:57

    Saladi Project: New €266 million tourism and housing investment in Ermionida

  26. 08/07 07:57

    Saladi Project: New €266 million tourism and housing investment in Ermionida

  27. 08/07 07:49

    WTTC | Scary losses if tourism is limited in 11 cities in Europe

  28. 08/07 07:36

    "Save Papoura Hill": The emblematic monument of Crete is in danger from the airport in Kastelli

  29. 08/07 07:36

    "Save Papoura Hill": The emblematic monument of Crete is in danger from the airport in Kastelli

  30. 08/07 06:42

    Ikaria: International Chess Tournament "Ikaros"

  31. 08/07 06:39

    Spain's tourism arsenal grows with Netflix's €1 billion investment

  32. 08/07 06:39

    Spain's tourism arsenal grows with Netflix's €1 billion investment

  33. 07/07 18:55

    Labor Inspectorate: New tool for detecting violations in the use of the digital labor card

  34. 07/07 18:52

    Kastelli: The progress of work at the airport is approaching 60%

  35. 07/07 18:05

    AADE: Extension of Airbnb declarations for specific properties in the Municipality of Athens

  36. 07/07 18:05

    AADE: Extension of Airbnb declarations for specific properties in the Municipality of Athens

  37. 07/07 17:09

    Sustainable Tourism in the Mediterranean | International Conference "Paths that Last" in Split

  38. 07/07 17:05

    Greece - Turkey: New cooperation protocol to strengthen bilateral tourism

  39. 07/07 16:25

    Rethymno: The port will be decongested by migrants by Friday, as G. Skordilis says to TN

  40. 07/07 16:11

    MSC Cruises and Explora Journeys: Developing cruising in Greece

  41. 07/07 14:16

    British parents are skipping school terms for cheaper holidays

  42. 07/07 12:33

    France | Champion in arrivals, trailing in tourism receipts

  43. 07/07 12:33

    France | Champion in arrivals, trailing in tourism receipts

  44. 07/07 12:22

    Ioannina approaches the promising Indian market

  45. 07/07 12:22

    Global Tourism | Leisure Travel Spending to Triple by 2040

  46. 07/07 12:17

    Global Tourism | Leisure Travel Spending to Triple by 2040

  47. 07/07 11:56

    Cyclades: Reactions to large tourism investment in Ios

  48. 07/07 11:56

    Cyclades: Reactions to large tourism investment in Ios

  49. 07/07 11:53

    New cruise passenger record in Souda – Triple ship arrivals today

  50. 07/07 11:42

    Overtourism | Barcelona: At the limit of endurance with 15 million tourists in 2024

  51. 07/07 11:42

    Overtourism | Barcelona: At the limit of endurance with 15 million tourists in 2024

  52. 07/07 11:28

    Athens Airport | Passenger traffic up 4.6% in June, +7.6% in the first half

  53. 07/07 11:26

    Promoting Santorini to the Turkish public

  54. 07/07 11:18

    Kimolos is an "open book"

  55. 07/07 06:33

    From Journey to Emotion: The Power of Fun Facts in Cruising | Ioannis Brass

  56. 07/07 06:29

    Santorini back in the spotlight: Promotion campaign in the UK via Jet2holidays

  57. 05/07 16:08

    Ryanair increases free cabin baggage allowance on European flights

  58. 05/07 07:14

    Rokka Festival 2025: Curtain Call in Kissamos on July 30

  59. 05/07 07:12

    Germans drink water at the name “Greece” – Record positive impressions driven by tourism

  60. 05/07 07:00

    Europe 2025 | Fines, bans, and new rules for tourists

  61. 05/07 00:27

    Promotion of Greece in the United Kingdom for luxury tourism

  62. 04/07 21:02

    British Foreign Office's recommendation for fires in Greece

  63. 04/07 19:55

    Journalistic trip to Mykonos of a popular British television channel

  64. 04/07 18:59

    6 hotel investments in Milos, Livanates, Kassandra, Zakynthos, Petalidi, Eastern Mani, and Livadia

  65. 04/07 18:22

    Government delegation to visit Ierapetra on Monday

  66. 04/07 18:18

    Electra Hotels & Resorts Receives Gold Award at CRI 2024 - 2025

  67. 04/07 17:15

    Region of Crete: Ierapetra is safe and ready to welcome visitors

  68. 04/07 17:10

    Which OPEKEPE? Olive tourism can take Crete off the ground...

  69. 04/07 15:58

    easyJet supports UNICEF: 2025 summer in-flight donation campaign launched

  70. 04/07 15:02

    Apostolos Tzitzikostas: The key role of Regions and Municipalities for the future of European tourism

  71. 04/07 14:52

    A distinguished travel writer from the US in Lassithi

  72. 04/07 14:49

    Direct flights requested between Ioannina and Heraklion

  73. 04/07 14:43

    ETC | +3.3% international arrivals in Europe in Q2, +13% spending in 2025

  74. 04/07 14:42

    New hiking experience in Sfakia - at the Aradena Gorge

  75. 04/07 10:22

    NJV Athens Plaza renewed its sustainability certification from GSTC

  76. 04/07 09:17

    Ministry of Tourism: Coordination Group on fraud and corruption issues

  77. 04/07 07:10

    G. Timotheatos: “There is no neighborhood in Argostoli without Airbnb – the city is deserting”

  78. 04/07 07:08

    Hotel Grande Bretagne | Facade works on Sunday - Where will there be a traffic disruption

  79. 04/07 06:21

    Surprising Regions Raise Greece's Reputation in Winter

  80. 03/07 18:58

    Restart of the Petra Lesvos – Ayvalik line after four years

  81. 03/07 18:58

    Restart of the Petra Lesvos – Ayvalik line after four years

  82. 03/07 18:58

    Restart of the Petra Lesvos – Ayvalik line after four years

  83. 03/07 18:58

    Restart of the Petra Lesvos – Ayvalik line after four years

  84. 03/07 18:09

    Peloponnese "starring" in the international series "Journey to Europe"

  85. 03/07 18:09

    Peloponnese "starring" in the international series "Journey to Europe"

  86. 03/07 17:13

    When the mountain becomes a screen: The highest cinema of the summer in Agios Ioannis Sfakion

  87. 03/07 14:21

    M. Iakovidis | A position on Greek tourism, to be discussed

  88. 03/07 14:18

    FREENOW expands to new cities across Greece

  89. 03/07 13:24

    Turkish Tourism: Hotel Discounts to Rekindle Demand

  90. 03/07 13:24

    Turkish Tourism: Hotel Discounts to Rekindle Demand

  91. 03/07 13:24

    Turkish Tourism: Hotel Discounts to Rekindle Demand

  92. 03/07 11:30

    George Tzarakis in Tornos News: Anxiety about the next day in Ierapetra tourism

  93. 03/07 11:30

    Fire in Ierapetra | Evacuation of settlements - safe removal of 1,500 tourists

  94. 03/07 11:27

    Mediterranean: The hotspot of climate change

  95. 03/07 11:27

    Mediterranean: The hotspot of climate change

  96. 03/07 10:34

    France and Italy boost tourism in Western Greece

  97. 03/07 10:32

    House of NYNN opens at THE ILISIAN, offering wellness experiences

  98. 03/07 08:37

    Heraklion Airport: +5% international arrivals in June - What were the main markets

  99. 03/07 08:05

    Fast-paced training for new tour guides at the Universities of Crete and Ioannina - All the details

  100. 03/07 07:47

    Municipality of Kalavryta: Action plan to address water scarcity