Lessons of Luxury (Kempinski) (GB)
Kempinski- Best Brand 2011 |
Reto Wittwer, CEO of the world's oldest hotel group, has always done
things his own way. The Kempinski boss is perhaps the ultimate hotelier. ,
Wittwer's vision has taken Kempinski to distant horizons such as Africa and to
other markets that his peer group have been reluctant to enter.
Despite his École Hôtelière de Lausanne training, his nose for the
business has been gained in all his years of experience and the fact that he
comes from a hospitality family. Wittwer attributes his success to a passion
for the business.
“ I’m a rebel and I’ll die a
rebel. My mother tried, my father tried, the army tried, my bosses
tried to tell me what to do. I always pretend I’m listening and then do
it my own way. ”
- The business of luxury:
"Luxury is peculiar to each person," explains Wittwer of the
philosophy that he instills in the service. "It has to be exclusive."
"Too many people claim to be in the luxury business," he
says of the big chains. "The top end has to be individualistic; it cannot
be controlled by a chain with a homogenous portfolio. If you are growing as
fast as our competitors and you keep cloning your product, you end up with 200
hotels that look the same. That is not real luxury."
For Wittwer, the essence of a luxury hotel is its individuality, not a
brand identity concocted in an anonymous boardroom. "The big companies,
such as Starwood, are simply brand supermarkets, you can't tell them
apart," he says.
- Quality not quantity:
Kempinski has deliberately limited the number of hotels it operates.
Although this exclusivity frustrates hotels that want to get onto its books –
and perhaps the company's shareholders – Wittwer says it is essential in order
to keep standards high, the group manageable and the brand prestigious, particularly
considering that Kempinski's reputation is centred around its collection of
landmark, iconic hotels.
The policy is like a rigorously adhered to vow of celibacy and it all
comes down to the Holy Grail of luxury. "Anything related to luxury must be
numerically capped," Wittwer says.
"The
more similar the hotels, the more boring they become as the numbers
increase."
Wittwer's strategy of sustainability pays back over time: "When a
market first gets rich, the favourite brands are those that scream out,"
he says, comparing hospitality to the fashion industry."If people don't know the difference between a Château Pétrus and
a Beaujolais, they might as well drink Beaujolais," he explains.
In coming years, Wittwer sees luxury as becoming even more individual.
"Cloning is not what people think of as luxury," says Wittwer. "The only way to ensure you have the sole version of that dress
is to buy one from Valentino. For some people, that has meaning."
Despite the emergence of ever more luxurious hotels from Shanghai to
Dubai, Wittwer maintains that Europe will lead the way in creating new forms of
luxury. "The European lifestyle has always defined luxury, be it in cars
or in fashion. It's not the case in Australia, China or America, despite these
being shrewd markets."
"Many more customers than before come from the East, fewer from
the West." Wittwer says that the demand for luxury is such that the top
tier of the hospitality industry will ride out the current financial
turbulence.
For Wittwer luxury will always be in demand. "My father used to
say that when the rich are impoverished, the poor are already dead," he
says.
"If you are not a luxury brand, you will be thrown into the
bloodbath of the mid-market." But the top-end is a ruthless market
requiring an iron will.
"Luxury does not compromise," he says, following with
another lesson. "If you are at the top of the line, you don't discount. If
the market is going down, whoever is in the discount game is not a luxury
hotel."
The properties in the Middle East, Europe, Asia and Africa provide
four facets to the company's business model, and each contributes to the success
of the whole. The standards originate from Europe, the capital comes from the
Middle East, new and exciting opportunities come from Africa, and Asia,
particularly China, is where future investment will originate from.
"We are adventurous enough to anticipate the movers and
shakers," he says, explaining that Kempinski helps to put destinations on
the map. The company already operates five hotels in Africa, including one in
Chad, the Kempinski Hotel N'Djamena, and it is looking at new destinations
including Cape Verde and Rwanda.
"The eco-lodges in Africa command great rates for a basic
standard," he says. "Where else in the world are people prepared to
pay €2,000-€3,000 a night?"
"We have found three specific partners in Africa who share the
same vision of Africa as us," explains Wittwer. "We were introduced
to the president of Madagascar by one of our African partners and he's happy.
So we're looking at Madagascar."
Wittwer is a big believer in Africa's potential as a hotel market.
"The US trade won't go there because they think it's poor, but Africans
meet," says Wittwer.
However operating in less developed parts of the world has its risks.
"In Chad, we've had to evacuate our people twice in as many years when
rebels moved in," he says.
It all comes with the territory for Wittwer. "We never involve
ourselves in politics," he states.
"We love everybody and everybody loves us. We don't interfere in
the country's regime. Whether it is socialist, communist or something else
doesn't matter, they all need hotels."
Despite the war between Russia and Georgia, plans are still in place
in Georgian capital Tbilisi to turn the former foreign ministry into a 200-room
luxury hotel, managed by Kempinski.
High profile events such as these can be a headache, even for Wittwer.
"It was sort of a challenge because of the security, no one can go in or
out," explains Wittwer.
- People power
"We have an entrepreneurial, individualistic atmosphere." The
key to the success of any hotel lies in its staff. Luxury is worthless unless you have the people to deliver it.
Kempinski, like every other hotel company today, needs to work harder
to retain its staff. "We have an entrepreneurial, individualistic
atmosphere," says Wittwer.
"In some companies it's like being in the army – everything is
regulated – but usually people associated with individualism can't stand
corporate standardisation."
"We are continually trying to reinvent ourselves," he says.
"We are number one in the market. The danger is that you can stand still
and a close contender will make ground, so it is a permanent quest to make it
to the next level."
"They tell us 'You have history but you need to make stories out
of it, because history in itself doesn't help you.' We are now taking advantage
of our inheritance."
With Kempinski's sights spanning African lodges to luxury trains to
Tibet, one can imagine that Wittwer will be sleeping like a baby for many years
to come.
Susana
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