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Hyatt's Plan of Action for Euro Conversion
 
CHICAGO - November, 1998... While many in the hospitality and travel industry are scrambling to prepare for Euro conversion, Hyatt is confident that its plan of action will make the transition comfortable for both the customer and the employees.

As of January 1, 1999 Hyatt will be ready to quote rates for its 184 hotels worldwide in Euro. These Euro rates will be available on hyatt.com on-line reservations, at all of Hyatt´s Worldwide Reservations Centres and through all travel agents using the airline reservations systems (GDS). According to Allan Edgar, Director of Marketing for Hyatt International Hotels EAME, "Our customer is driving this change. We must uphold our reputation as being highly responsive to customer behaviour and market evolution. If we are not prepared, we will lose."

Business and leisure travellers alike stand to benefit from the introduction of the European single currency next year. "A new era of travel industry transparency in Europe will set in and customers will be able to easily compare costs of hotel accommodation in a singular city, throughout Europe and even world-wide," remarks Gebhard Rainer, Director of Finance for Hyatt International Hotels´ Europe, Africa & Middle East (EAME) Division. "The customer is empowered to compare and to question. He will want to know why a Cola in Spain may cost one Euro, while in Germany it may cost three." Customers will also be able to demand all invoices, receipts and price quotations in Euro. Pan-European travellers will also benefit from reduced foreign exchange transaction costs.

The Hyatt Euro-Project Team

The Hyatt EAME Divisional office in Lausanne, is spearheading the preparations for the launch of the Euro. The "Euro-Project Team" consists of one executive for each discipline covered: Marketing, Finance, Information Systems, Purchasing & Materials and Human Resources. According to the Hyatt Team, all indications are that the consumer market will adapt to the Euro relatively quickly, while administrative, bureaucratic and government sectors will be hard-pressed to cope with many aspects such as tax reporting.

Which Hotels Will Be Impacted?

While only 11 out of 24 Hyatt Hotels in the EAME Division are in EU countries and are directly impacted, all of the chain´s hotels will be affected. Any hotels that have European resource markets will have to be prepared to quote prices to their customers in Euro.

The Internet and the Euro

Price transparency and customer empowerment will be further aided by the exponential growth of Internet users in Europe and throughout the world. Not only will the customer be able to compare prices, he will be able to do so at the touch of a button. Hotels will have to be very savvy about their competitors and extremely responsive to their customers. "Hyatt International Hotels has a tremendous reputation for being "on the cutting edge" - primarily in the areas of marketing and technology. We will have to apply that approach to the Euro in order to make the transition as seamless as possible for our customers," said Eric Brun Director of Marketing for Hyatt in Europe. "Our website has become a major marketing tool and customers will be able to book on-line in Euro rates as of January 1999."

Third Parties and Travel Industry Partners

The Hyatt Team is working with materials suppliers and banks to find out how they will link their invoicing and accounting structure to the Euro and to Hyatt´s financial set-up. And while the hotel Property Management Systems (PMS) are flexible enough to handle a dual accounting structure, the Airline Reservations Systems (GDS) will require a lot of support from the entire travel industry. The introduction of the Euro coupled with the Year 2000 bug makes the transition all the more complicated.

Training

Training will be a vital part of preparing hotels for the Euro. Staff needs to feel confident that they can answer the customer´s queries. Hyatt International´s Human Resources Division is putting together a comprehensive training programme for front-line staff that will be implemented in the fourth quarter of 1998. Key issues will include how to use the exchange rate mechanism and how customers can pay in Euro even though currency won´t actually be released until the year 2001.

Looking to the Future

Eventually, the Euro will help simplify hotel operations. Europe will gain greater power as a unified financial entity and despite the many challenges, many new marketing opportunities will be created. The challenge is to be innovative in regards to across-the-board offers and new schemes for Hyatt´s Gold Passport loyalty programme.

There are 184 Hyatt Hotels and Resorts around the world. Hyatt International, through its subsidiaries, operates 57 hotels and 18 resorts in 34 countries, with an additional 30 hotels under development. Hyatt Hotels Corporation, a separate company, operates 109 hotels and resorts in the United States, Canada, and the Caribbean.

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Contact:
Katrin C. Lieberwirth 
(212) 521-1252
[email protected]
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Also See: For US Travelers, Euro Makes Choosing Hotel Rooms Easier / Jan 1999 
The Euro and the Hospitality Industry - A Common Currency Offers Strategic Opportunities / Arthur Andersen / Summer 1998 

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