CEO of hotel giant IHG reveals post-Covid standards for its 5,600 properties

Keith Barr CEO IHG

SUMMIT NEWS June 8, 2020

One of the world’s biggest hotel chains has laid out the standards that will ensure post-pandemic safety for guests at its 5,600 hotels across 100 countries.

‘We’re making sure that we provide a safe environment so customers can enjoy themselves because they do want to travel,’ InterContinental Hotels Group (IHG) CEO Keith Barr.

That means no more than three people will be allowed into an elevator at the same time,  buffets and restaurants will be eliminated in favor of grab-and-go dining, and room service will be contactless.

Mr Barr is a guest panellist at a special virtual summit The Future of Travel & Tourism on Wednesday June 10, 2020.

He will be part of a session titled ‘Planning for the future: Understanding globalisation in the post Covid-19 world and the investment measures needed to boost recovery of the global travel and tourism industry’ from 11am (UK time).

Barr, who stepped in the CEO role at IHG three years ago heads a chain, which includes popular brands like Holiday Inn, Crowne Plaza, and Regent Hotels and Resorts, also said that swimming pools in his hotels will be socially distanced.

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There will be temperature screening at the front desks, hand sanitizer stations positioned throughout the facility, social distancing markers in public areas, and decluttering rooms in the public spaces to make sure that high-touch items are no longer present.

Barrtold ABC News in an interview that he expects demand for hotel rooms to pick up toward the summer as travelers will be getting into their cars rather than flying in planes to take vacations.

‘We think we are going to have a lot of domestic travel and not a lot of international travel, and it will be drive because people feel comfortable getting in their cars and driving to stay at a Holiday Inn or Holiday Inn Express,’ he said.

‘That’s going to be the travel trend, with fewer people wanting to get on flights.’

Earlier this month, InterContinental Hotels said it expects revenue per available room to plunge 80 per cent in April compared with last year and that the coronavirus crisis was the biggest challenge the hotel industry ever faced.

InterContinental Hotels Group has also introduced a new global standard of hotel cleanliness and hygiene following a major collaboration with internal and external specialists in operations, health, safety and guest experience.

The experts, collectively known as the IHG Global Cleanliness Board, liaised heavily with Cleveland Clinic Chief Clinical Transformation Officer, James Merlino, to design the company’s new best practices and implementation processes.

Building on IHG’s ‘Way of Clean’ program – which launched in 2015 in partnership with hygiene and cleaning technology brands Ecolab and Diversey – guests can expect to see enhanced and more visible cleaning practices in effect. These may include a reduction of high-touch in-room furnishings, new laundry protocols and visual verification of sanitised items such as glassware and the television remote control.

Underpinning the new hygiene regime is a ‘Clean Promise’ from IHG which states that if a guest is unsatisfied with the standard of cleanliness in their room, the property will immediately rectify the situation. The new policy took effect from June 1, 2020.

More visible charts informing guests when an area was last cleaned will pop up around hotel public spaces and facilities including fitness centres, swimming pools, lounges, restaurants and bars. Along with social distancing measures, new practices at hotel buffets, room services, catering and banquets are likely to be introduced in line with local health requirements.

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Thai Airways files for bankruptcy protection and ticket holders will have to wait six months for refunds

Industry News: 1st June 2020

Thai Airways has filed for bankruptcy protection and ticket refunds will take at least six months, according to industry observers.

Its fleet has been grounded since late March and there are thousands of passengers waiting for refunds of their tickets. But under Thai law bankruptcy protection, also known as Debt Rehabilitation will leave ticket holders with a long wait.

The airline begin a programme of replacing its aging 80 aircraft fleet two years ago but has been debt laden for years. It has 74 international destinations.

Thai Airways website has been updated to reveal its regional operator THAI Smile goes back into service this week, serving some domestic routes. Thailand has escaped the worst of the pandemic idetfying its first case in January – a woman from Wuhan province in China – in early January.

But despite some criticism of the government there have been just over 3,000 confirmed cases and 62 deaths. And even though some observers suspect these figures are an underestimate, the country has certainly escaped quite lightly. International arrivals from all destination were finally implemented on April 3, 2020.

In October 2019, Thai Airway’s had a debt burden of 300 billion baht (about US9bn) prompting a deputy transport minister to ask ‘how serious the airline’s executives were in dealing with the worsening financial situation?’[46] Thai reported a net loss of 4.68 billion baht (US$147m) in the third quarter of 2019 and a 10.91 billion baht (US345mn) net loss for the first nine months of 2019.

Thai’s president offered support saying: ‘Such losses were normal for airlines amid fierce competition and price dumping to win customers.”

 
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Final list of speakers revealed for the future of travel & tourism Middle East conference

Industry News 29th May, 2020

This week HE Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce, has confirmed his attendance at a conference considering the future of travel and tourism in the Middle East.

The event – part of Arabian Travel Market’s three-days of webinars and conferences – will discuss sustainable investment measures for the region’s travel & tourism sector alongside strategies to restore travellers’ confidence and move forward post-pandemic.

He will talk about his vision for Dubai’s success alongside leaders from across the region:

Panel Discussion: Initiatives to revive the travel and tourism industry and secure sustainable investment in the region?

Moderator: Rajan Datar, Presenter and Broadcaster BBC

Speakers

  • HE Marwan Bin Jassim Al Sarkal, Executive Chairman Sharjah Investment and Development Authority
  • His Excellency Khalid Jasim Al Midfa, Chairman, Sharjah Commerce and Tourism Development Authority (SCTDA)
  • HE Saleh Al Gezeiry, Director General for Ajman Tourism
  • Mr. Majed M. Alghanim Tourism & Quality of Life Managing Director, Ministry of Investment, Saudi Arabia 
  • Mr. Nicolas Mayer, PWC Industry Leader Hospitality and Tourism EMEA & Managing Partner Global Center of Excellence Tourism & Hospitality

This is one of three sessions on the day and you can be part of the event with free registration.

Restructuring to Attract Sustainable Investment and Customers in the New World Order.

Register HERE

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READ MORE ABOUT Arabian Travel Market’s Virtual Programme 1 – 3 June , 2020 HERE

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German government gives Lufthansa €9 billion bailout

Industry News: 26th May 2020 The German government threw Lufthansa (LHAG.DE) a 9 billion euro ($9.8 billion) lifeline on Monday (25 May), agreeing a bailout which gives Berlin a veto in the event of a hostile bid for the airline. The largest German corporate rescue since the coronavirus crisis struck will see the government get a 20 per cent stake, which could rise to 25 per cent plus one share in the event of a takeover attempt, as it seeks to protect thousands of jobs, according to a report by the Reuters news agency. Lufthansa has been locked in talks with Berlin for weeks over aid it needs to survive an expected protracted travel slump, with the airline wrangling over how much control to yield in return for financial support. Germany’s central government has spent decades offloading stakes in companies, but remains a large shareholder in former state monopolies such as Deutsche Post and Deutsche Telekom. Berlin also still has a 15 per cent holding in Commerzbank (CBKG.DE), which it took on during the global financial crisis. Other airlines including Franco-Dutch Air France-KLM (AIRF.PA) and U.S. carriers American Airlines (AAL.O), United Airlines (UAL.O) and Delta Air Lines (DAL.N) have also sought state aid after the coronavirus hit global travel. Germany’s Finance and Economy Ministries said on Monday that Lufthansa, whose shares closed up 7.5 per cent at 8.64 euros, had been operationally healthy and profitable with good prospects, but had run into trouble because of the pandemic.

 

 
 
 

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Saudi Arabia begins releasing lockdown with end in four weeks

Industry News: 26th May 2020

Saudi Arabia will begin easing its coronavirus curfew from Thursday, it has been announced.

Health Minister Tawfiq Al Rabiah said the easing of restrictions will be undertaken in phases and will depend on how the spread of the virus pans out this week. 

The first phase will begin with expanding capacity to serve “critical patients” and the second will include intensifying Covid-19 tests and early detection.

Speaking a a press conference on Monday, the health minister said the Saudi people had displayed a “high amount of responsibility in practising social distancing.” 

“After five months since this pandemic started, where the global health systems faced great difficulties in dealing with it, our society has become today more aware of this virus and implementing the measures of the social distancing, as it is a new experience for all of us,” he said in remarks quoted by the Saudi Press Agency

Restrictions in place due to coronavirus, including bans on domestic travel, holding prayers in mosques, and workplace attendance in both government and private sector will be lifted, starting May 31, the statement added.

The Kingdom will reopen all mosques outside Mecca from May 31 until June 20 in one of a number of measures announced by the SPA.

From June 21, the Kingdom expects to lift the lockdown entirely and return to normal life, according to SPA.

Al Rabiah said that people should continue taking precautionary measures while leaving their homes by using face masks and hand gloves.

The Health Ministry recorded nine new deaths and 2,235 new cases of coronavirus in the Kingdom on Monday.

The new deaths have increased the Covid-19-related toll in Saudi Arabia to 399 and the total number of confirmed cases to 74,795. 

The number of recoveries has risen to 2,148, taking the total number of recovered cases to 45,668.

The Covid-19 pandemic has severely damaged the Kingdom’s plan to boost its tourism income and create new jobs. In October 2019, the Kingdom of Saudi Arabia revealed its 2030 plan aiming for 10 per cent of GDP to come from tourism within 10 years, up from 3 per cent, building on its enormous annual religious pilgrimage visitors. The Kingdom also set a target of international and domestic visits of 100 million a year by 2030, attracting significant foreign and domestic investment and creating a million jobs.

 
 

 

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Dubai tourism leaders meet key stakeholders to plan for the future

Industry News: 26th May 2020

ABU DHABI, 25th May 2020 (WAM): Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) held a virtual meeting with key aviation and hospitality partners to discuss current and post-pandemic strategies and joint initiatives aimed at ensuring the tourism industry’s gradual return to normalcy.

The meeting also discussed global efforts to minimise the transmission of COVID-19 and precautionary measures deployed to safeguard the health of communities across the UAE.

On the same day the UAE Government announced that the number of COVID-19 tests has broken the two million mark, reaching 2,044,493 screenings as part of the national plan to intensify coronavirus detection. Three deaths on Sunday due to COVID-19 complications, took the total number of deaths to 248, and 601 individuals have fully recovered from the virus, bringing the total number of recoveries to 15,657. There are 14,402 patients from different nationalities are currently receiving the necessary treatment.

Attendees the meeting hosted by the Director General of Dubai Tourism, included key executives of hospitality groups including Jumeirah, Emaar Hospitality Group, Marriott International, Millennium, Accor, JA Resorts and Hotels, Kerzner International, Al Habtoor Group, Wasl and Rotana, in addition to aviation sector players like Emirates, Flydubai and Dubai International Airport.

The report released by state newsagency WAM said partners were briefed on the phased approach being adopted to reopen the tourism sector in Dubai, and the marketing communications and activities in progress across key markets to reinforce Dubai’s high global profile including the ongoing #TillWeMeetAgain digital activation.

With the hospitality sector being a key pillar of Dubai’s economy, the discussions between Dubai Tourism and partners focused on the steps being taken to pave the way for the reopening of hotels and other tourism facilities across the city, while ensuring adherence to the strictest guidelines and providing opportunities to revive domestic market demand.

As part of overall efforts to create a positive perception and a conducive environment aimed at instilling confidence among travellers who plan to visit Dubai, the meeting also looked at precautionary measures that have been implemented, both at a citywide level and across specific sectors including tourism, which represent critical touchpoints for visitors and residents during their stay.

One of the key priorities from a marketing perspective, the meeting heard, is to emphasise the safety and security that Dubai provides, and the clear stringent health and safety protocols issued by the Dubai Health Authority based on international standards and best practices aimed at containing the contagion. The meeting also discussed the mechanism to ensure adherence to the guidelines, practical solutions to scan and monitor passengers at Dubai International Airport and the effective management of contact tracing in compliance with privacy standards, following the resumption of air travel.

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All participants at the meeting expressed their appreciation for the way in which government – both at the Dubai and UAE level – have dealt with the threat of COVID-19 including the rational policy decisions that have allowed robust management of the health crisis and mitigation of the economic repercussions by allowing for the gradual reopening of vital sectors like tourism.

Industry executives at the meeting also agreed that the postponement of Expo 2020 was prudent and well-received. It provides the opportunity to hold the event in a more normalised global environment where all countries can actively participate, making it a more representative Expo for the world in 2021. The businesses also reiterated their support to Dubai Tourism to kick-start the sector with collaborative development of promotional programmes and strong customised packages that take into account the current realities of the global market. The stakeholders were unanimous that there was positive sentiment surrounding Dubai as a key destination in the international circuit thanks to the city’s world class health infrastructure, and protocols and processes deployed during the management of this pandemic.

Helal Saeed Almarri, Director General, Dubai Tourism, said: “It must be emphasised that the health and safety of our residents and guests will always remain our top priority as we continue to work with the industry and our government partners not just during this critical period but beyond, to develop innovative approaches, real-time responses, and proactive yet prudent initiatives to ensure that Dubai remains at the forefront of the world’s leading destinations in line with our strategy.

“As we look ahead to a gradual reopening of tourism, we will focus on the key elements that have ensured the industry’s success over the past decade – creating unique value and delivering an uncompromised guest experience. To achieve this, we rely on the solidarity of our stakeholders who have always played a pivotal role. We hope they will continue to lead from the front in positioning Dubai as a must-visit destination.”

Paul Griffiths, CEO of Dubai Airports, said: “Dubai International Airport is prepared to welcome visitors as soon as airports around the word start reopening and pave the way for a phased resumption of air services. As health and hygiene standards will play an influential role in encouraging people to travel, we have put in place a set of health and safety protocols at our airports including all necessary quarantine arrangements and the implementation of sanitisation and disinfection measures to reassure tourists that Dubai is one of the safest destinations to visit. We will also continue to receive incoming flights from select destinations, operate cargo flights, as well as flights to repatriate expatriates and guests to their home destinations.”

Adnan Kazim, Chief Commercial Officer at Emirates Airline, said: “The health and safety of our customers and employees remain our top priorities across our operations, and Emirates has implemented comprehensive measures at every step of the customer journey. This includes thermal temperature scanning before check-in, the mandatory use of masks and gloves for everyone at the airport, protective suits for our crew and ground employees, physical distancing protocols, modified services to reduce contact, enhanced cleaning of all our touch points, and much more.”

Ghaith Al Ghaith, CEO of flydubai, said: “Since the flight restrictions came into effect, we have operated more than 100 repatriation flights to 19 different countries enabling 14,000 citizens to return home. flydubai will continue to work closely with its strategic partners to ensure that all safety measures are in place in line with international standards when flight restrictions are lifted.”

Mohammed Al Habtoor, Vice Chairman and CEO, Al Habtoor Group, said: “Dubai with its wide experience in successfully dealing with challenging situations is capable of restoring tourism momentum and paving the way for the hospitality sector to returns to its previous state. This is also a view shared by our international hospitality partners who have placed great faith in Dubai’s resilience during tough times, as well as in its world-class healthcare system and the range of preventive measures taken across the city such as the effective and regular sanitisation and sterilisation programmes, that will help highlight Dubai as one of the world’s safest destinations.”

Mark Willis, CEO Middle East and Africa at Accor, praised the government’s efforts in reopening the markets and supporting the tourism sector: “Accor is committed to coordinating with Dubai Tourism and all related entities, from both government and private sectors, to ensure we are aligned in making the safety and well-being of our guests and team members our key priority”

Neal Jones, Chief Sales & Marketing Officer, Europe, Middle East and Africa (EMEA), Marriott International, said: “As an international chain that enjoys a longstanding relationship with Dubai, Marriott is committed to supporting the industry’s efforts to regain momentum by rolling out our own initiatives and packages to attract visitors to Dubai when the time is safe for travel.”

 

 

‘Ski resorts were Covid-19 breeding ground in Europe’

Industry News: 23rd May 2020

Dr Andrea Ammon blames the return of skiers and snowboarders from Alpine skiing breaks in the first week of March was a pivotal moment in the spread of Covid-19 into Europe.

And in her interview with The Guardian newspaper in the UK last week she warned that Europe should brace for a serious second wave.

“The question is when and how big, that is the question in my view,” said Dr Ammon (pictured above), director of the European Centre for Disease Prevention and Control (ECDC), a former advisor to the German government..

In her Guardian interview she said: “Looking at the characteristics of the virus, looking at what now emerges from the different countries in terms of population immunity – which isn’t all that exciting, between 2 per cent and 14 per cent, that leaves still 85 per cent to 90 per cent of the population susceptible – the virus is around us, circulating much more than January and February.

“I don’t want to draw a doomsday picture but I think we have to be realistic. That it’s not the time now to completely relax.”

And she was believes that Alpine resorts were the breeding ground and first point of arrival for much of the pandemic in Europe in Janury.

“Because at that time we saw new cases all over Europe and actually they had been in the skiing places in the Alps, in Italy, Austria,” she said.

“I mean this is a crowded place, the ski resorts, and then you have these cabins that you go up the mountain and these are really crammed.

“Yeah, it’s just perfect for such a virus. I mean I am pretty sure that this contributed to the wide spread in Europe.”

The case of the ski resort of Ischgl in Austria has a reputation as a virus-spreader. The village had the highest concentrations of covid-19 in the whole of Austria.

It remained in full lockdown and along with the other Austrian resorts of St Anton and Soelden long after other areas saw their restrictions lifted.

It is interesting to see this has now been confirmed by the medical experts, but it was obvious for anyone to see with a modicum of knowledge and common sense.

Perhaps the more worrying aspect at this moment in time is that Andrea Ammon believes a second wave is coming.

She advises that the prospect of a second wave of coronavirus infection across Europe is no longer a distant theory.

“The question is when and how big, that is the question in my view,” said Dr Andrea Ammon.

READ FULL GUARDIAN INTERVIEW HERE

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Turkish Airlines further extends flight suspensions until June

Industry News: 23rd May 2020 Turkish Airlines has extended the suspension of its domestic flights until June 4 due to coronavirus (Covid-19) with international flights scheduled to resume on June 10. According to a statement issued by the company, the suspension of domestic and international flights will be extended due to the pandemic. It had previously given a deadline of May 28, 2020. The airline has a fleet of 350 aircraft serving 300 international destinations. Currently, the Republic of Turkey’s Prime Ministry Privatization Administration owns a 49.12 per cent interest in THY, while 50.88 per cent of shares are publicly traded. Turkish Airlines claims to have one of the best Business Class products in the world, , flies just about everywhere, offers several unique amenities, and promises bargain prices. It is part of the Star Alliance is the world’s largest airline community, consisting of 26 members from leading companies in the global aviation sector.  It has said that in response to the pandemic, cabin baggage will now be placed in the hold, with luggage allowances increased by 8kg.
 

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Why Brits plan to spend up to £3.8bn on hospitality in first week after lockdown ends

Industry News: 21st May 2020

In the UK the public’s wish to dine out or get a way for a family break is worth £3.8billion (US$4.6bn) to the economy…within just one week of lockdown ending.

New research from Caterer.com this week survey more than 2,000 Brits and revealed 63 per cent want to support local hospitalty businesses as soon as possible, as long as sfety measures are in place.

And it revealed that almost half the people across the country have a new found apprecaition and recognition of the hospitality sector and more than half were eager for it to ‘get back to normal’.

Almost a third (31 per cent) say they will go to the pub within a week of being allowed and in London it was more than half (51 per cent) and 30 per cent will be dining out within the first week.

The insights from Caterer.com show that 62 per cent of Brits would feel comfortable eating in restaurants that occupied every other table only and 55 per cent agreed that maximum group size on a table should be four.

But it was another blow for buffet-style dining with seven in 10 of those surveyed said that was not an option until a vaccine is discovered.

Caterer.com concluded the results support the call from the sector for additional support from the Government, in order to make operation financially viable with 67 per cent supporting Government cash to ensure survival. Even though this money would have to come from central funds, the survey found around 40 per cent say they would pay more in return for better cleaning and social distacing measures.

The survey included suggestions from customers to help make them feel comfortable going out:

  • 54% think hand sanitiser should be provided for all customers and staff
  • 47% would like all staff to be trained on a new cleaning protocol
  • 36% think Social Distancing Managers should be implemented
  • 22% think that all staff should wear PPE
  • 18% think they should be able to order their meals digitally

Neil Pattison, director at Caterer.com, said: “While this has been an incredibly painful time for the sector, it’s encouraging to see the public have a huge appreciation for what the hospitality sector provides to communities. There is strong appetite to support these businesses and workers in getting back on their feet.

“While measures like having more hand sanitiser available and training staff to introduce new cleaning regimes may be more simply implemented, social distancing measures will mean far fewer customers can be served at one time.

“As a result, there is deep concern about how hospitality businesses will survive economically in the short and long term.

“We are grateful for the Government’s support to date, however, there is still much more work to be done and it’s vital that this continues.”

 

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Air France dumps the A380 superjumbo and Emirates wants out of new orders

French flag carrier Air France has announced on Wednesday afternoon that it will retire its nine strong Airbus A380 fleet with immediate effect.

The airline’s fleet of superjumbos was initially set to be retired in 2022, but in light of the Coronavirus, the Air France-KLM Group has decided that it will bring this forward.

The company owns five of its A380s and another four on lease. Most of the fleet has been grounded since March, as the worldwide pandemic brought air travel to a dramatic stop.

Air France said in a statement: “The phase-out of Airbus A380 fleet fits in the Air France-KLM Group fleet simplification strategy of making the fleet more competitive, by continuing its transformation with more modern, high-performance aircraft with a significantly reduced environmental footprint.”

The airline received its first A380 in October 2009 and it’s most recent delivery was in June 2014, making the youngest aircraft in the fleet a mere six years old. Air France’s Airbus A380 fleet will be replaced by smaller long-haul aircraft, including Airbus A350 and Boeing 787 Dreamliner, the carrier says.

The £164million superjumbo is close to the end of its production run after demand switched to smaller jets, and airlines including Air France have been idling the double-decker temporarily because of the coronavirus crisis. 

Air France announced a fresh 500million euro ($548.50million, £449million) writedown as it permanently retires its nine jets, just over a decade after becoming the first European airline to operate them.

The French announcement came hours after aircraft engine maker Rolls-Royce announced 9,000 redundancies across its UK operations.

Emirates – which operates more than 100 A380s and has been one of the few airlines to adopt it – no longer wants to take all eight A380s due to the pandemic and is in talks with Airbus, industry sources said.

Bloomberg earlier reported that Emirates hoped to cancel five.

Both Emirates and Airbus said they were in regular dialogue with each other, declining further comment.

Halting Emirates deliveries could be painful for both sides, with the airline foregoing deposits and Airbus left with parts already ordered and no significant market to dispose of them.

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