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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 or their joint venture partners at

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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: