The current situation

in the European Hospitality Industry

Susanne Kraus-Winkler

President of HOTREC

Hospitality Europe

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Our challenges today

Digitalisation – new “digital economy”

New business models outside of our existing Current legal systems – unfair competition

Emergence & extension of shadow hospitality economy

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10 steps Chart towards a sustainable and responsible “sharing” economy

e.g.

Integrate activity into legislation

Establish processes for registration / permit

Measure the activity

Enforce requirements for safety and security

Comply with fiscal requirements

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The Online Distribution challenge: 150.000 hotel and similar enterprises in Europe vs. 3 booking giants in control of 90% of OTA bookings Result: • Imbalance in market power • Loss of control over the business • Similar terms and conditions including parity clauses

(best prices, full availability, etc.)

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Rate Parity & OTAs The current legal situation

Recent developments in Europe: • Germany competition authority banned parity clauses of

Booking.com and HRS • France banned parity clauses by law • Italy on same track

Restore the entrepreneurial freedom of hoteliers

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The industry’s initiative:

Campaign for

An initiative of the European hotel industry to highlight the benefits of booking direct.

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Athens GA, 17-18 October 2013

EP report on tourism (29 October 2015) The European Parliament ...

“emphasises that the current legislation is not suited to the sharing economy, …” (Paragraph 111) “… considers, furthermore, that for the sake of consumer protection the security, safety and health regulations applicable to the traditional tourism sector should also apply to tourism services provided on a commercial basis

within the sharing economy;” (Paragraph 112)

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one step taken

Interchange fees: • From 9 December 2015 MIF reduced for consumer

cards • 0.3% for credit cards / 0.2% or 0.07 € for

debit card (better national rules possible)

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HOT topics at EU level

Data Protection - regulation in trilogue, Data Protection Office, etc.

Accessiblity - European Accessiblity Act, Lobbying to start, long way,…

Visa Package – tourist visas, Hotrec supports, 6,6 Mio +,….

Sustainability - 8 key priorities of C. Bienkovska, energy &

environmental policies like plastic bag discussion, zero energy hotels, ….

Package Travel Directive, Payment Cards,

EU report on Tourism

Official Food controls - transparency, financing of controls, fraud

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HOTREC Task Forces & Working Groups

Distribution TF

Restaurant & Pub TF – food waste, nutrition taxes, food labelling

& allergenes, black box / cash registers, HACCP procedures, alcohol, review sites and brewery contracts,….

Late night entertainment – opening/closing times, intellectual

property rights, responsible drinking,….

Quality Board – Quality & standards discussion in the EU

institutions

SSD Committee – social dialogue with unions ( European skills

passport, working time directive, refugees,…)

History & Development

2007 Corporation of Austria – Germany – Switzerland

2009 21 HOTREC-principles

Dec. 2009 Hotelstars Union, 7 founding members

(AT, CH, CZ, GE, HU, NL, S)

2010 roll-out new hotel classification

2011 HSU-enlargement: Estonia, Latvia, Lithuania, Luxembourg

2012 HSU-enlargement: Malta

2013 HSU-enlargement: Belgium, Denmark, Greece

2015 HSU-enlargement: Liechtenstein

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16 Members & 3 Observers

Full Members:

– Austria, Czech Republic, Denmark, Estonia, Germany,

Hungary, Latvia, Liechtenstein, Lithuania, Malta, Netherlands,

Sweden, Switzerland

Implementing Members:

– Belgium, Luxembourg

Associated Member:

– Greece

Observers:

– France, Ireland, Italy

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★ HOTREC-membership = pre-requisite

★ Only nation-wide membership,

no regions

★ Official requests from

countries worldwide

Membership

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Facts & Figures

More than 20,000 classified hotels within Hotelstars Union

Representing a market with more than 180 million inhabitants

International trademark registration (HOTELSTARS.EU)

1-5* (including Superior in every category)

270 harmonized criteria (mandatory „M“ plus optional criteria)

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Points system

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Regular revision of criteria

Six-years-rhythm: now valid from 2015-2020

Revision of criteria based on worldwide online market research

to cover the needs and expectations of the market

Scientific support from the University of St. Gallen and

Ecole Hotelière de Lausanne (Switzerland)

www.hotelstars.eu

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HOTREC – The voice of the industry

Umbrella Association of Hotels, Restaurants and Cafes in Europe

43 National Associations 29 European countries The voice of the hospitality industry at EU level

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Thank you for your kind attention!

www.hotrec.eu