Georges Panayotis: Can't scare me!
In the ongoing restructuring of the hotel landscape worldwide, three major models will coexist. Each is representative of a specific strategy that is part of the hotel industry’s recent history.
Historically the oldest, the Western model has evolved out of a blend of the three businesses of investor, operator and distributor that form the foundation of most groups. This division of activities, driven by the asset light strategy, resulted in global giants that primarily focus on operational management on behalf of investors and brand franchising.
With revenues sourced from oil and other primary materials, Middle Eastern sovereign funds have been seeking to diversify their investments as a guarantee, and focusing wholeheartedly on the finest trophy assets in the hotel industry. They thus kept collecting palaces and exceptional sites like so many carefully renovated treasures. At the same time they turned their micro-territories into testing grounds and a showcase for superlatives of luxury. These destinations are regional hubs that have practically risen out of the desert, resulting in a surprising blend of Disneyland and Star Wars.
More recently, Chinese hotel groups have realized the strength represented by a population that has reached the threshold of mass consumption. Growth and expansion, even relative, of a country that has more than a billion inhabitants sends statistics out of control and stimulates entrepreneurial spirits. After a period during which Western groups established their brands and operational services, Chinese hotel groups regained control over their local markets. They took over all the positions in the economy segment prior to investing in other segments today. They decided to follow the flow of Chinese travelers all around the globe by taking over foreign groups that are capable of hosting them. In doing so, they also recuperate all the know-how they were lacking in in order to achieve expertise in all segments.
Can cohabitation continue without resulting in a confrontation between the different strategies, ambitions, economic models? That is the question at hand. Until now, there were alliances, skill sharing, division of roles. Beyond their traditional schemes, based on real estate investors and franchisors, Western groups operated properties financed by sovereign funds that contented themselves with dividends and watching the value of their property rise again and again. But Middle Eastern players shifted from being real estate investors to being key shareholders in the major operators, while keeping a careful eye on business conduct. While the Chinese dragons, which were keeping quiet to avoid frightening their partners, are now spewing forth the cash they had been welling up for years in order to buy market shares.
Now masks have fallen, superficial smiles cannot hide global appetites. The power map is changing, relying as much on flows that circulate throughout each continent as on global traffic. Of the billion international trips last year, only 200 million were Chinese travelers. There are plenty left to fill the properties of Western groups that rely on real mastering of their respective local markets. But haven't they been weakened by lightening assets and focusing everything on operational know-how and the power of their brand? In fact, owners are regaining power, franchisees are questioning the added value of a brand, and online distributors are capturing a strong share of the digital economy.
Chinese groups have presented themselves as efficient partners, veritable white knights with a long-term view and considerable means of investment to offset speculative funds and predators seeking added value. But it is necessary to be clear and anticipate their priorities. The Western model has not said its last word in its self-examination. It is likely that will result in renewed offers and innovative services for new generations, and development of brands that should clearly identify themselves with a complete experience.
In the new landscape that is taking shape, the arbitrage between the models will be largely influenced by the weight of distribution, by the advent of veritable destination marketing addressing a variety of clientele, through the size of networks and power of brands. The competition is open and may the best win!
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.
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report
25/04 22:00
Greek FM talks with Kuwaiti counterpart on bilateral relations, regional cooperation
25/04 14:49
Prices of products in Easter Basket the same or lower in Greece than in 2023
25/04 13:57
25/04 12:44
Greece and China to ink cooperation protocols in the fisheries sector
25/04 09:53
Extended shop opening hours for Easter in Greece start on Thursday
25/04 02:19
Athens Airport voted as the best in marketing strategy at European awards in Denmark
25/04 02:10
President of Hellenic Republic visits La Chascona Museum in visit to Chile
24/04 21:31
Thirty-one Greek political parties to take part in European Parliament elections
24/04 21:25
Payment by bank cards now accepted on Athens Airport Express bus lines
24/04 14:12
Herculaneum papyri unveil more than location of Plato's tomb in Athens
23/04 23:52
Greece’s New Ambassador to the United States visits Queens in New York
23/04 21:49
Traffic regulations in Athens due to the Olympic Torch Relay on Thursday-Friday
23/04 20:59
President of Hellenic Republic wraps up visit to Uruguay at parliament
23/04 15:44
Greek government will pass legislation halving commission paid for POS transactions
23/04 15:03
Precise location of Plato's burial site unveiled by ancient papyrus
22/04 22:33
'Nature Positive' peport highlights new collaborative era in travel & tourism
22/04 21:25
22/04 20:37
Greek and Turkish delegations discuss Confidence Building Measures for 2024
22/04 18:29
Over 114,000 Greek Diaspora citizens register to vote by post in the European elections
22/04 13:40
19/04 01:29
Athens State Orchestra presents 'St. Matthew's Passion' by Bach on April 30th
18/04 21:49
Greek Climate Change Minister signs memorandum for Attica fire protection zones
18/04 20:32
'Easter Basket' and 'Godparents basket' to be put into effect next week in Greece
18/04 20:17
18/04 17:40
17/04 21:06
Thessaloniki Port: Performance growth for 2023 with record container throughput
17/04 20:57
Traffic regulations imposed in Athens for the 41st Peace Marathon on Sunday
17/04 20:52
17/04 18:15
Greek Foreign Minister addresses the 9th Our Ocean Conference in Athens
17/04 17:12
16/04 21:02
NHM hosts the Trial of Pericles at the Harris Theater in Chicago on April 17
16/04 20:17
Greece will invest $830 million to protect marine biodiversity
16/04 01:46
New York Greek Independence Parade honors 1821 and solemn Cyprus Anniversary
16/04 01:35
Olympic Games Paris 2024: Olympic Flame to be lit at Ancient Olympia in Greece
16/04 00:29
European Committee of Regions and UN release study on Rural Tourism
15/04 20:41
15/04 19:58
Minister: Greece is transforming into a hub for exporting quality agri-food products
15/04 18:51
Greek Environment Minister meets Chinese Deputy Minister of Natural Resources
13/04 00:13
UN Tourism and Croatia to launch Research Centre for Sustainable Tourism
12/04 00:03
2024 marks a critical year in the enduring strength of Greek-German relations
12/04 00:00
11/04 22:07
Ambassador: US committed to upgrade of Greek military and support NATO's SE flank
11/04 19:40
Hellenic Pride on display at rainy Chicago Greek Independence Day Parade
11/04 02:06
Delphi Economic Forum IX: Energy collaboration a 'key' in Greek-Bulgarian relations
11/04 01:58
UN Tourism launches investment guidelines for Albania sector
10/04 19:01
Greek FinMin: New package of economic measures in 2025 to lower taxes, raise pensions
10/04 18:25
Greek city of Nafplion hosts Mediterranean Yacht Show for ninth year running
09/04 23:57
Greek PM on Tilos: Innovative projects for a cyclical economy are of key significance
09/04 23:55
UN Tourism members promote agenda for Europe as region leads global recovery
09/04 23:46
HFS presents 1968, Rousing Docudrama about Greece’s First European Cup April 21
09/04 22:48
Stolen 7th-century BC oenochoe returned to Greece by Hanover museum, municipality
09/04 22:42
Greek civil servants confederation ADEDY to strike on May 21
09/04 21:55
Greek Migration Minister meets Senior US Coordinator for Lawful Migration
08/04 23:48
08/04 23:41
Elliniko-Argyroupoli Mayor marches in Greek Independence Philadelphia Parade
08/04 21:53
Project Voria casino complex in Maroussi moving ahead after environmental report
08/04 21:36
Minister: Up to 120 delegations to take part in 9th Our Ocean Conference in Athens
08/04 19:22
Direct flight from Shanghai to Athens offers access to key tourism market for Greece
08/04 18:31
AI conference to attract distinguished speakers to Thessaloniki on April 25-27
04/04 23:28
City of San Jose marks March 25 with 16th Annual Greek Flag Raising Event
04/04 22:16
Urban plans published for seven townships in Thessaloniki and Attica of Greece
04/04 17:24
FinMin: The new EU economic and fiscal framework is good for Greece
04/04 15:30
Greek PM meets with the chiefs of the international pharmaceutical manufacturers
04/04 00:15
Deputy Minister for Macedonia-Thrace meets US Embassy Deputy Mission Chief
03/04 20:12
Syracuse AHEPA Chapter 37 marks March 25th Greek Independence Day
03/04 18:10
Greece's Delphi Economic Forum on April 10-13 to focus on 'The Great Transition'
03/04 16:42
Minister: Industrial production has returned to the pre-crisis levels in Greece
02/04 18:06
30/03 23:21
Eleni Gatzoyiannis scholarship offered to Greek students at Boston University
29/03 16:44
3rd edition of 'This is Athens - City Festival' with 250+ events from May 1 until June 2
29/03 15:53
Athens Metro station Aghia Varvara to stay closed on Saturday and Sunday
29/03 13:55
Greek Foreign Minister for Economic Diplomacy concludes visit to Montenegro
29/03 12:00
29/03 11:51
28/03 18:41
Attica Region to channel 640 bln euros to services of vulnerable and disadvantaged groups
28/03 17:32
Greece to auction three-month T-bills on April 3, 2024 in a book entry form
28/03 15:46
Greece's Meteora Pyli Geopark added to UNESCO Global Geoparks network
28/03 14:44
IPTO announces framework agreement tender for undersea power cables in Greece
28/03 11:49
IOBE: Construction sector in Greece records robust growth and good prospects
26/03 23:51
St. Thomas Hellenic School honors 1821 and the Feast of the Annunciation in NJ
26/03 21:59
PM at Economic Club of Canada: Greece is an attractive investment destination
26/03 17:56
Greek State budget primary balance reaches a surplus of 3,378 million euros
26/03 11:45
Ancient Messene to get upgraded visitors' facilities after approval by Council
23/03 17:43
New requirements for 'Golden Visa' program to kick in on March 31
23/03 16:49
Athenians continue to head out of the Greek Capital for March 25 long weekend
23/03 16:47
Greek Parliament lights to be turned off for Earth Hour 8:30-9:30 pm
22/03 21:54
US President on Greek Independence Day: Alliance with Greece stronger than ever
22/03 19:51
High diplomacy and geopolitics at Delphi Economic Forum IX in Greece
22/03 19:32
Tax authorities enable payments with foreign bank cards in Greece
22/03 14:19
22/03 00:24
Greece ranks first on list of countries with fastest business environment progress
22/03 00:02
Hellenic Police acquires first electric VAN-type highway patrol vehicle
21/03 22:41
21/03 15:33
Unseen Museum presents "The stele of the twin babies" exhibition in Athens
20/03 22:48
Health Minister: 95% of Greek hospitals to perform afternoon surgeries
20/03 21:52
Greek Deputy Minister of Justice meets delegation from US Embassy in Athens
20/03 21:44
Greek Interior Minister to visit United States and Canada on postal vote
20/03 20:55
Philadelphia Icarians mark 85th Anniversary and organize Apokriatiko Dance
20/03 18:01
Development Minister: We continue the battle against high prices in Greece
19/03 22:28
President of the Hellenic Republic meets her Ethiopian counterpart in Athens
Greek FM talks with Kuwaiti counterpart on bilateral relations, regional cooperation
Greece and China to ink cooperation protocols in the fisheries sector
Prices of products in Easter Basket the same or lower in Greece than in 2023
Extended shop opening hours for Easter in Greece start on Thursday
Herculaneum papyri unveil more than location of Plato's tomb in Athens
Athens Airport voted as the best in marketing strategy at European awards in Denmark
Thirty-one Greek political parties to take part in European Parliament elections
President of Hellenic Republic visits La Chascona Museum in visit to Chile
Payment by bank cards now accepted on Athens Airport Express bus lines
Traffic regulations in Athens due to the Olympic Torch Relay on Thursday-Friday
Precise location of Plato's burial site unveiled by ancient papyrus
Bill lifting restrictions for Greeks voting from abroad greenlighted by majority vote
Greek supermarkets record rise in value and decline in volume of FMCG sales
World Taste Atlas: Greek cuisine is the second best on the planet
Deadline to file taxes is extended in Greece to July 31 by Finance Ministry
Hellenic-American Cultural Foundation presents lecture with US University President
Flights to and from Heraklion airport in Crete resume on Saturday
Greek Health Minister: Increase of vaccinations a top priority for the government
Greek capital of Athens among top-10 most beautiful cities for the second time
Tri-city winter luncheon unites upstate New York Philoptochos chapters
New publication: 'I am not Maria - I am Callas: Her real life and an eon of myths'
Inspirational project promoting Hellenism and love for Greece globally (video)
Ancient Messene to get upgraded visitors' facilities after approval by Council