Welcome to a new type of Sustainable Network
The well is empty The tap has run dry
For too long we have been addicted
Addicted to public sector funding
And now we are told to kick the habit without the methadone
Its cold turkey time
In tomorrow’s tourism It’s not the big that eat the small  Its the  fast  that eat the slow
15 years ago McKinsey and Co accused tourism agencies of being ‘unfocused’
Identifying the Key Priorities for Government and its Tourism Agencies to Improve Britain’s Performance in the World Touri...
McKinsey put Britain’s poor tourism performance down to market failure in  10 key areas
1  An inability to respond to last minute demand
2  Difficulties in bookability and signalling price transparency
3  Mismatch in supply and demand
4  Ineffective quality grading schemes
5  Poor value for money in hotels
6  An oversupply of bed stock
7  Inadequate research evidence
8  Market Fragmentation
9  The industry has a high unit cost base and low unit profitability
10  Tourism agencies are unfocused
We believe most of these market failures have been eliminated However…..
<ul><li>High unit cost and low unit profitability continues </li></ul><ul><li>The market is still fragmented </li></ul><ul...
Suppose public sector funding over the past forty years has actually held us back? Suppose the industry has moved on, but ...
The Coalition Government has told us what it thinks
 
>  Reduce the tourism sector’s dependence on taxpayer funding
>  Streamline quangos
>  The private sector should take charge of their own priorities, management, investment  and funding mechanisms
>  Need for strong, new and independent tourism bodies
>  Governance of tourism bodies will rest with the local private sector
>  Resulting in tourism bodies that are..
He says work more closely with the private sector
That means understanding and sharing the culture, thinking and language of the private sector
“ It is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner, but from their regard ...
Business is simple.  Find a gap. Work it. Most ideas fall short. Some work. Do more of what works. If it works big, others...
The trick is to be always finding  the gap
The private sector sees its role as selling stuff
Business believes DMOs should stimulate destination awareness Leaving them to close the booking
It sees the public sector role as managing the destination its infrastructure and public realm
The public sector excels in partnership working The  private sector finds it easier and simpler to work alone For the priv...
A partnership is only worthwhile if it adds to the total of what two or more businesses can achieve Opportunities are elus...
This is where it began for us over 2 years ago We predicted……
The writing was on the wall
 
Marketing would stall
Room occupancy would flat line
Competition would increase
Each slice of the cake would get smaller
All at a time when the gap between the public and private sectors have never been  wider
The Hotel Association  moved from an informal coalition to a Joint Venture
We started off with a small idea And it just grew
 
For years our hotels had built moats between themselves and their competitors.
Now they build bridges Barriers between businesses which used to be solid and absolute are now permeable.
Today the most successful tourism businesses build bridges
Financially Sustainable Independent Voice No offices and no payroll Marketing   focused It began with  Visioning
DMOs Hotel Association We did not want to be a tourist board Attention   Interest  Desire   Action Awareness of the Destin...
Give / Get? 80% Social Networks Scalable Digital Platform Informal Coalition Premises, People and  Suppliers
Beamish Hall, Bowburn Hall, Copthorne Hotel, Close House, County by Thistle Hotel, Durham University, Grey Street Hotel, H...
<ul><li>Annual Excellence Awards </li></ul><ul><li>Brand Identity </li></ul><ul><li>Business Planning </li></ul><ul><li>eC...
The Supply Chain  makes no financial contribution in winning visitors to a hotel or destination We asked. Why not? We have...
Bakery, bread, desserts, confectionary ,  Beverages, wines, beers, spirits, minerals, water ,  Cash and carry products ,  ...
<ul><li>Low </li></ul><ul><li>No Payroll </li></ul><ul><li>No Premises </li></ul><ul><li>Shared Risk </li></ul><ul><li>Hig...
We believe if you understand the technology …  … it’s already obsolete After two years our business has moved towards soci...
Social Networks have turned marketing upside down
We are now rebuilding our platforms to encourage conversations
Our Suppliers are part of that conversation… The busier we are the busier they are
Social Networks will enable suppliers to talk directly to…… …… Chefs, Housekeepers, Maintenance Engineers etc.
When there is a critical mass of suppliers we will invite a range of other partners to join Hotels Visitor Attractions Pla...
The Partnership Model Hotels Attractions Restaurants Events Retailing Transport Suppliers Restaurants
Members Management Group Sales Group HR Group Chefs Group Housekeeping Group A Network.. … of Networks A Network of Networ...
We are independent We are networked We are practical and resourceful We are business driven We cover the North East We hav...
Our Invitation to You This is an invitation to help shape the future direction of the sector This is an invitation to grow...
We invite you to join our new type of thinking…   Join us at: www.nehotels.co.uk
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Your introduction to the North Easts Hotels Association

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An introduction to the North East Hotels Association. Find them at www.nehotels.co.uk or their joint venture partners at www.partnershipglu.co.uk

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  • Just look at who we work with on the supplier front alone…..it shows clearly how we all have a stake in success. Hotels have long invested in their supply chain and now its time for them to invest in the business of the hotels
  • We are financially and politically independent. We are networked with all principal agencies. We are single minded about driving business to our properties. We have resources that we can bring to the partnership. We have facilities, networks and working groups for Sales, HR and Finance. We represent members and partners in the whole of the North East. We have no offices and no employees. Our income is recycled back into developing hospitality and tourism. Our business model means we are financially independent.
  • We are where we are. Tourism support as we have known it will be a thing of the past. We are on our own. We have invested in a platform to take us through this challenging period and we ask you to join us.
  • Your introduction to the North Easts Hotels Association

    1. 1. Welcome to a new type of Sustainable Network
    2. 2. The well is empty The tap has run dry
    3. 3. For too long we have been addicted
    4. 4. Addicted to public sector funding
    5. 5. And now we are told to kick the habit without the methadone
    6. 6. Its cold turkey time
    7. 7. In tomorrow’s tourism It’s not the big that eat the small Its the fast that eat the slow
    8. 8. 15 years ago McKinsey and Co accused tourism agencies of being ‘unfocused’
    9. 9. Identifying the Key Priorities for Government and its Tourism Agencies to Improve Britain’s Performance in the World Tourism Industry
    10. 10. McKinsey put Britain’s poor tourism performance down to market failure in 10 key areas
    11. 11. 1 An inability to respond to last minute demand
    12. 12. 2 Difficulties in bookability and signalling price transparency
    13. 13. 3 Mismatch in supply and demand
    14. 14. 4 Ineffective quality grading schemes
    15. 15. 5 Poor value for money in hotels
    16. 16. 6 An oversupply of bed stock
    17. 17. 7 Inadequate research evidence
    18. 18. 8 Market Fragmentation
    19. 19. 9 The industry has a high unit cost base and low unit profitability
    20. 20. 10 Tourism agencies are unfocused
    21. 21. We believe most of these market failures have been eliminated However…..
    22. 22. <ul><li>High unit cost and low unit profitability continues </li></ul><ul><li>The market is still fragmented </li></ul><ul><li>Research still has little relevance to business </li></ul><ul><li>Tourism agencies are still unfocused </li></ul>
    23. 23. Suppose public sector funding over the past forty years has actually held us back? Suppose the industry has moved on, but we haven’t?
    24. 24. The Coalition Government has told us what it thinks
    25. 26. > Reduce the tourism sector’s dependence on taxpayer funding
    26. 27. > Streamline quangos
    27. 28. > The private sector should take charge of their own priorities, management, investment and funding mechanisms
    28. 29. > Need for strong, new and independent tourism bodies
    29. 30. > Governance of tourism bodies will rest with the local private sector
    30. 31. > Resulting in tourism bodies that are..
    31. 32. He says work more closely with the private sector
    32. 33. That means understanding and sharing the culture, thinking and language of the private sector
    33. 34. “ It is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner, but from their regard to their own self-interest” History tells us
    34. 35. Business is simple. Find a gap. Work it. Most ideas fall short. Some work. Do more of what works. If it works big, others quickly copy. Then do something else.
    35. 36. The trick is to be always finding the gap
    36. 37. The private sector sees its role as selling stuff
    37. 38. Business believes DMOs should stimulate destination awareness Leaving them to close the booking
    38. 39. It sees the public sector role as managing the destination its infrastructure and public realm
    39. 40. The public sector excels in partnership working The private sector finds it easier and simpler to work alone For the private sector, collaboration is hard. Making it work is challenging.
    40. 41. A partnership is only worthwhile if it adds to the total of what two or more businesses can achieve Opportunities are elusive but always there to be grasped
    41. 42. This is where it began for us over 2 years ago We predicted……
    42. 43. The writing was on the wall
    43. 45. Marketing would stall
    44. 46. Room occupancy would flat line
    45. 47. Competition would increase
    46. 48. Each slice of the cake would get smaller
    47. 49. All at a time when the gap between the public and private sectors have never been wider
    48. 50. The Hotel Association moved from an informal coalition to a Joint Venture
    49. 51. We started off with a small idea And it just grew
    50. 53. For years our hotels had built moats between themselves and their competitors.
    51. 54. Now they build bridges Barriers between businesses which used to be solid and absolute are now permeable.
    52. 55. Today the most successful tourism businesses build bridges
    53. 56. Financially Sustainable Independent Voice No offices and no payroll Marketing focused It began with Visioning
    54. 57. DMOs Hotel Association We did not want to be a tourist board Attention Interest Desire Action Awareness of the Destination Closure
    55. 58. Give / Get? 80% Social Networks Scalable Digital Platform Informal Coalition Premises, People and Suppliers
    56. 59. Beamish Hall, Bowburn Hall, Copthorne Hotel, Close House, County by Thistle Hotel, Durham University, Grey Street Hotel, Hardwick Hall, Holiday Inn, Hotel du Vin, Jurys Inns, Linden Hall Hotel, Malmaison, Marriott Gosforth Park Hotel, Marriott MetroCentre, Marriott Sunderland, Marriott Durham, Matfen Hall Hotel, Newcastle/Gateshead Hilton, Newgate Hotel, Novotel, Premier Inn, Radisson Blu, Ramside Hall Hotel, Rockliffe Hall Hotel, Seaham Hall Hotel, Staybridge Suites, Thistle Middlesbrough, Village Hotel
    57. 60. <ul><li>Annual Excellence Awards </li></ul><ul><li>Brand Identity </li></ul><ul><li>Business Planning </li></ul><ul><li>eCRM </li></ul><ul><li>Secure intranet </li></ul><ul><li>Job Opportunities and Careers Guidance </li></ul><ul><li>Last Minute Offers </li></ul><ul><li>Industry News </li></ul><ul><li>Market Intelligence </li></ul><ul><li>Media and Membership Management </li></ul><ul><li>Partner Opportunities </li></ul><ul><li>SEO </li></ul><ul><li>Social Networking tools </li></ul><ul><li>Supplier Directory </li></ul><ul><li>Trade Communications </li></ul><ul><li>Website Planning Design Build Publication </li></ul>We use a range of tools to manage our interests:
    58. 61. The Supply Chain makes no financial contribution in winning visitors to a hotel or destination We asked. Why not? We have over 1000 potential member suppliers
    59. 62. Bakery, bread, desserts, confectionary , Beverages, wines, beers, spirits, minerals, water , Cash and carry products , Cutlery, crockery, glassware, china, Fish, shellfish , Fruit and vegetables , Glasses, wine buckets, coasters, ashtrays, Groceries, tea, coffee, dairy, Kitchen, ovens, stoves, ranges, fryers, hot plates, refrigeration, dishwashers, knives, pans, chopping boards , Meat, butchery, game, bacon and ham curers, poultry, organic, Audio visual, multimedia, conference staging, microphones, lighting , Exhibition displays , Meeting flipcharts, projectors, pencils, pads, lecterns, presentation boards, projection screens, Electricity, supply, appliances, energy saving , Environmental impacts , Gas, supply, appliances, energy saving , Heat, light, power, electricity, gas, oil, LPG, solar , Water, water saving , Bathrooms, baths, showers, bidets, cabinets, curtains, controls, fitting, Bed, mattresses, headboards, cots , Décor, carpets, curtains, bedspreads, duvets, pillows, pictures, mirrors, tea/coffee making, trouser press, hairdryers, irons, ironing boards, safe deposit, coat hangers, racks, lockers , Design , Disability signage, bedroom access, wheel chairs , Display cases, information racks, Doors, door locks, numbers, signs, Floral displays, plants , Furniture, dining, bedroom, lounge, outdoor, reception , Ice machine, bucket , In-room entertainment, TVs, multimedia , Keys/key tags , Lamps, lights, shades, light bulbs , Seating, lounge, bedroom, banqueting, office, bar, garden , Tables, banquet, buffet, coffee, cocktail, lamp, TV , Carpet sweepers, Carts, linen, luggage, maids, trolleys, Cleaning materials, detergent, dish wash, carpet cleaning, deodorants, dusters, drain cleaning, mending kits, stationery, mops, deodorants, polish, do not disturb, soaps, toiletries , First aid supplies , Laundry equipment , Linen hire, table linen, bed linen, towels, bathrobes, Rubbish disposal, bins, collection , Toilet rolls, tissues, paper towels , Uniforms, workwear, badges, Exercise equipment , Golf buggies, greens maintenance , Leisure, pool, sauna, steam, changing rooms, lockers , Spa, beauty, hairdressing, manicure, massage, Accounting, auditing , Advertising agencies, press and public relations, graphic design , After dinner speakers , Architects , Banks, credit cards , Energy consultants , Health and safety , Insurance , Interior design , Outside contractors, computing, cleaning, steam cleaning, gardens, health and safety, marquee hire, graffiti removal, debt recovery, window cleaning , Party planners , Publicity, promotional materials, business cards, calendars, Rating valuers , Recruitment agencies , Solicitors, licensing, employment , Stocktakers , Taxis, limo service, airport transfers, executive coach, car hire , Training , Web design, hosting, SEO, internet , Wedding organisers, cakes, photographers, florists, printers, bands, entertainment, disco, dress hire, Cash registers, tills, Computer, software, hardware, printers, paper, inks, maintenance , Energy management systems , Files, filing equipment , Property Management Systems , Stationery, print, brochures, guides, menus, payslips, purchase orders, invoices, forms, bills, ledgers, files, folders, envelopes, letters, compliment slips.  
    60. 63. <ul><li>Low </li></ul><ul><li>No Payroll </li></ul><ul><li>No Premises </li></ul><ul><li>Shared Risk </li></ul><ul><li>High </li></ul><ul><li>Leveraged Supplier Support </li></ul>Becoming Financially Sustainable Risk Opportunity
    61. 64. We believe if you understand the technology … … it’s already obsolete After two years our business has moved towards social networks
    62. 65. Social Networks have turned marketing upside down
    63. 66. We are now rebuilding our platforms to encourage conversations
    64. 67. Our Suppliers are part of that conversation… The busier we are the busier they are
    65. 68. Social Networks will enable suppliers to talk directly to…… …… Chefs, Housekeepers, Maintenance Engineers etc.
    66. 69. When there is a critical mass of suppliers we will invite a range of other partners to join Hotels Visitor Attractions Places to Eat Out Events Organisers Places to Shop Transport Operators Suppliers
    67. 70. The Partnership Model Hotels Attractions Restaurants Events Retailing Transport Suppliers Restaurants
    68. 71. Members Management Group Sales Group HR Group Chefs Group Housekeeping Group A Network.. … of Networks A Network of Networks Management Group Sales Group HR Group Chefs Group
    69. 72. We are independent We are networked We are practical and resourceful We are business driven We cover the North East We have no offices We have no employees – we use our own! We are a not-for-profit partnership We are financially sustainable We welcome new thinking Our Guiding Principles
    70. 73. Our Invitation to You This is an invitation to help shape the future direction of the sector This is an invitation to grow your business in difficult times This invitation is strictly limited
    71. 74. We invite you to join our new type of thinking… Join us at: www.nehotels.co.uk

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