Interviewing Serial 9: Carel-Coen, Director of Revenue Mgmt & Pricing at Accor Hospitality The Netherlands

Interviewed by Lily Lin

INTRODUCTION

Carel-Coen STOL graduated from Maastricht School of Management in 1992.  He studied Hotel Management and majored in finance.  He has been the Director of Revenue Management and Pricing at ACCOR Hospitality The Netherlands since 2007.  Prior to his current position, he was the Capacity Manager at the famed Steigenberger Kurhaus Hotel. 

Carel-Coen is very passionate about the subject of revenue management.  He is a serious and hardworking man with clear vision what he wants to achieve professionally.  In term of revenue management education, he thinks that we live in a different era now; things are evolving so much faster than prior to the age of the internet. Therefore, revenue management education must focus on future development and not just concentrate on what the industry is doing currently.  Otherwise, by the time students finish their education and before they even start their career, they are already outdated.  He looks for individuals who understand the environment around them, who possess diagnostic and analytical skills, who are committed and success-driven.

ACCOR is a French multinational corporation, part of the CAC 40 Index, operating in nearly 100 countries.  ACCOR has more than 4,000 hotels worldwide, ranging from economy to luxury.   ACCOR Hospitality Netherland has a network of 38 hotels, with well-known names such as Sofitel, Pullman, Novotel, Mercure, ibis, etc., enabling it to cater for all tastes and budgets.

INTERVIEW

You graduated from Maastricht School of Management.  What was your major?

I studied Hotel Management. I like hotel business. I also like dealing with numbers. It was good thing that I like numbers because with my current job, I deal with numbers every day.

Your job title is “Director of Revenue Management and Pricing at Accor Hospitality.  Can you explain “at Accor Hospitality”?

I am responsible for the revenue management resources, systems and strategies for all Accor brands in The Netherland, with the exception of Sofitel.  (Sofitel has a different organization structure.)  Together with the central RM team at the Support Office in Amsterdam we have 17 dedicated revenue managers in The Netherlands covering all Accor hotels. We also maintain a close relationship with the Central Revenue Development Department and the RM Pass Team at our corporate headquarters in Paris.

In addition, at the Netherlands’ Support Office, we maintain a close working relationship with Sales and Marketing and Operations Management.  While RM looks at the demand, S&M tries to understand the clients and OM looks at the costs and the number of personnel required, and the cost and the amount of raw materials needed.  It is a triangle; a group decision.  However, the influence of RM is bigger because we work on numbers. If there is a commercial conflict, there is a higher structure to resolve the conflict.  Once we worked out our strategy, we present this to the local GMs.  At the end, the responsibility is with the GMs.  But of course, if I have taken a decision, the responsibility stays with me.

Were you always interested in revenue management?

Yes.  I’ve always been interested in revenue management, even before revenue management was widely recognized in the hotel industry.  I’ve worked many years in Reservations, and Conference and Banqueting Departments, where pricing was an important management tool.  Also, when I joined the Steigenberger Kurhaus Hotel I chose to specialize in revenue management, which brought me to where I am today.

Due to the Greek crisis, the current and near future economic situation in Europe is worrisome.  Some of the experts do not believe that the Greek crisis and its effect will be over soon.  Has this affected the Dutch hotel market, and how have you dealt with it so far?

It’s difficult to predict what will happen in Greece.  If it really goes wrong, it will impact Europe and other parts of the world.  As a country, Greek is not a major feeder market for us, but the Greek crisis impacts the economic growth potential in Europe, therefore, it affects the international hotel markets. However, we learned a lot from the 2008 economic downturn.  We are monitoring the economic development in Europe daily and anticipating possible changes. Second, we try to optimize during the constrained and unconstrained demand¹ periods, which we normally do anyway.  An important issue here is that we must make sure that our market position is where it should be. Third, we focus not only on revenue but on contribution margin as well.  In addition, we also have contingency plans that will actually cover more than just the Greek problem.

By the way, I have confidence in the Euro.  The European governments will do everything possible to keep the Euro intact.  In fact, I booked my holidays yesterday, and I am going to Greece! 

¹   Constrained demand is the demand limited by the hotel’s capacity, whereas unconstrained demand is demand not limited by the hotel’s capacity.

In September 2011, the Dutch Daily News reported that the Netherlands is the most expensive country in the Euro zone, with an average price increase of 4 percent in the first half of 2011.  According to the Hotel Price Index or HPI from Hotel.com, the average room rate for a hotel in the Netherlands is €110.  Amsterdam remains the most expensive Dutch city.  Is this good or bad news?

To be honest, it does not mean anything to me.  I would need to know the source of this figure.  HPI [which is supported by Expedia.com], reflects only the view of one channel.  Also, the claim that the price increase in the Netherlands was 4 percent in the first half of 2011 is misleading.  This figure should have been offset by the price decrease in 2010.  We are expensive, but we are not as expensive as cities such as New York or Paris. In term of whether this is a good or bad news, well, news like this won’t help the inflow of international tourists to The Netherlands.

What is your market forecast for 2012 and 2013?

From a broad picture, if international traveling slows down due to negative economic situations, you will see demand decrease at the airport hotels.  City center hotels and hotels that are located where there is a concentration of foreign government officials and diplomats are the last to suffer because people still have to come for meetings. If business traveling slows down in Holland, we would see demand decrease in Eindhoven due to the fact that Eindhoven has a concentration of technical companies.

As for year 2012, it will be comparable to the year 2011 --- uncertain and unpredictable. The business segment, impacted by the economic circumstances, will remain fragile.  I think 2013 will look better due to major events --- but of course, whether these major events will boost hotel business still remains to be seen. We don’t know about the corporate and leisure markets yet. 

ACCOR has a number of well-recognized brand names, ranging from economy to luxury hotels.  In dealing with revenue management issues, what are the differences between brands?

The differences are in a number of areas, such as room types, flexible and dynamic pricing, different brand’s positioning and its effect on public, group and contracted rates, distribution strategy, contract management, etc.

When I interviewed Caro van Eekelen, the Managing Director of ACCOR Netherland, she said that ACCOR intends to double the number of franchisees in the Netherlands.  There are certainly some advantages in franchise operations.  For example, the risks that normally associated with a major investment are greatly reduced.  However, from the perspective of revenue management, will it cause more problems because of the “control” issues?  That is, you have no ownership.  Instead, you have a franchise contract with the franchisees.

Yes. You are right that we do not “control” our franchisees the same way an owner would.  We believe that franchisees that join Accor share the similar long-term objective with us; namely, revenue optimization.  To reach this objective, they must take advantage of our brands, distributions, and expertise. Our strategies have been proven successful; it would make sense that our franchisees would want to adopt the same strategy.  It is also the reason that we developed a unique product called “RM for Franchisees”. Under this program, our franchisees must invest in our RM system, tools, training and consultancy --- even small hotels with 60 rooms.  We want our RM philosophy to permeate all Accor hotels.

I definitely like franchise business.  It’s a different way of working together.

In your opinion, is RM about “managing demand”?

Yes.  We manage demand; we do not create demand.

Shouldn’t the responsibility of creating demand and managing demand rest on one person rather than dividing it into Sales and Marketing and RM?

RM and Sales and Marketing work together to analyze contracts and the market data.  As there might be conflicts of interests, it is better to keep the responsibilities separated and work on solutions together.

Let’s suppose that you drop the room rate, is it the Revenue Management’s decision or Sales and Marketing’s decision?

In principle we do not drop rates.  We prefer to encourage our guests to book early and pay the lowest rate.  If we really need to drop the rate, it is a decision taken by our commercial triangle that includes RM, Sales and Marketing, and Operations Management.

RM is about “maximizing revenue”.  Demand increase does not necessarily lead to revenue maximization --- and revenue maximization does not necessarily guarantee profit maximization.  In fact, it is entirely possible that at one point, the more revenue you generate, the less profit you make.  Have you had the opportunities to observe demand, revenue and profit relationship?

Yes.  A good example nowadays is the channel management. We experience an enormous increase in demand of the third party websites, which result in more revenue for the hotels and therefore more commission paid --- both in the percentage of the revenue and in the absolute amount. Good channel management is necessary to optimize the bottom-line results for our hotels and their brands.

Although many hotels would like to see profit comparisons in the competitive set, yet, participating hotels often hesitate to provide profit data to make it a reality.  What is your opinion on this issue?

In theory it would be interesting to monitor the competitors’ profit data.  In reality it would be very difficult to implement. Often, the hotels in the competitive set have different financial and organizational structures as well as requirements about asset management. [At the same time, comparisons are only possible if all of the competitive hotels would calculate their costs and therefore profit, in the same way.]

Regarding discounting, what is your view on the following statement: 

Comparing selling 90 rooms without a discount as opposed to selling 90 rooms with 25% discount, if the discount is offered, you would have to sell 120 rooms to make up the revenue difference. 

In general, I prefer to sell rooms without discount, although it will depend on total demand and forecast.  Discounting has a wider impact than only 25% less revenue.  If you discount in the public area it impacts many other segments as well, whereas an equal RevPAR (revenue per available room) can contribute to better TRevPar (total revenue per available room).

Sometimes we have no choice but to reduce the rate, in that case, we, that is, RM, Sales and Marketing and Operations Management, make a joint decision.

RM considers rooms as inventory rather than products that can be created, changed or improved to maximize revenue.  Do you think RM should be involved in product development and product improvement?

RM can provide an additional value on product development and improvement.  RM has a view on the market and competition, therefore, the specific product demand; e.g., occupancy rate per room, F&B expenditure, etc.

In your opinion, will social media websites become one of the major players in making room reservations and selling hotel rooms?

No.  Although I expect these sites will continue to develop in the near future, they will not be able to take over the specialist role from the hotel websites and third-party websites.  Making a reservation is more than just clicking and buying; it’s also about guest emotions.

What is your thought on forecasting accuracy, especially group forecasting?

Forecasting accuracy is essential for revenue management. The more accurate your forecast is, the better the outcome of your strategy and tactics implementation. We are working on improving the forecasting accuracy.  Currently, we use Forecasting Performance Ratio [forecasted number of rooms sold divided by the actual number of rooms sold] to measure our forecasting accuracy.

Group forecast is more difficult than the transient [individual traveler] forecast.  This is due to the fact that the volume per booking cancellation in groups is higher.  However, group sales are often from repeated customers and the peripheral revenue [other than room revenue] is often higher compared to that of the transients’. In addition, groups have longer booking period [rooms are reserved long before the arrival date].

Knowing the conversion rate [the percentage rate of converting online traffic to buying customers], cancellations and no-shows is very important for managing the group sales.

What are the most challenging aspects of your job?

The most challenging tasks for me are:

o   Recruitment of skilled and motivated team members;

o   Calculation of ROI for RM

o   The right balance between time and effort spend on RM tools and systems versus strategic topics.

If you were to hire a new revenue manager, what are the most important qualifications, such as knowledge and skills, work experience, etc., that this person must possess?

We look for people who:

o   Have a degree from a hotel management school or a business school;

o   Possess basic mathematical knowledge and skills;

o   Have experience in market research and case studies;

o   Have a clear understanding of the hotel industry;

o   Possess Strong business aptitude:

a.      Ability in performing diagnosis and analysis;

b.      Have a strong drive and are highly committed;

c.      Strive for results

o   Proficient in using RM analytical and distribution tools:

a.      RM system

b.      PMS [Property Management System]

c.      CRS [Central Reservation System]

d.      Excel, including using of formulas, database and pivot tables [interactive tables that automatically extract, organize, and summarize data from the main tables];

o   Proficient in using communication tools, such as:

a.      PowerPoint

b.      Word

c.      Outlook

What advice would you give to our students who are interested in pursuing career path in revenue management?

o   Know what the RM job is all about and the required daily tasks;

o   Possess a realistic view --- realize that you are just starting and you have a lot to learn

o   Always take initiative

o   Enjoy your job

What were your proudest or the most satisfying moments in your career life?

When I joined Accor the “Battle for Revenue” had just begun.  I stepped in at the right moment and was able to develop and implement the RM structure and philosophy in Accor The Netherlands.

Finally, what will be your next career move?

I am not finished with my current job yet; I expect that it will take a little longer. My next move could be a similar job in a bigger country or region. I am also interested in the development of hotel portfolio.  And maybe the airline industry RM will attract me . . . .  I will keep you posted.

Hiroko Noguchi, GM Hyatt Regency Hakone, Japan and Haru, the Residential Dog

By Lily lin

INTRODUCTION

Hiroko Noguchi is Japanese and a graduate of Hosei University in Tokyo in 1985.  She holds a Bachelor of Arts Degree, majoring in Japanese literature.  She has been the GM since the grand opening of the Hyatt Regency Hakone Resort & Spa, Japan in 2006.  She is highly regarded professionally in her current position.  In fact, she is the only female GM in Japan.  Before becoming the GM of Hyatt Regency Hakone, she was the Director of Sales & Marketing at the Park Hyatt Tokyo.  Along with other hotel management experience, she also worked for Arthur Andersen in Tokyo as the Manager & Senior Consultant of the Hospitality & Leisure Group.

Hiroko Noguchi, GM

Despite the fact that an Equal Employment Opportunity Law was passed in 1985 in Japan, more than 20 years later, only 10.1 percent of Japan’s 27 million working women, which made up nearly half of its work force, held management positions in companies and government.  By contrast, women held 42.5 percent of managerial jobs in the United States in 2005.  An even bigger barrier to the advancement of Japanese women is the nation’s notoriously demanding corporate culture, particularly its expectation of working 15 hours per day and six and a half days a week.  If expected to work 15 hours a day, most women with children will give up.  Considering these barriers, Hiroko Noguchi is, indeed, a rare species.

Hyatt Regency Hakone Resort & Spa is a five-star luxury hotel, located a 90-minute’s drive from Tokyo and is situated in the Foothills of world famous Mount Fuji.  This is an area known for its natural hot springs and serene scenery.  It is one of the favorite vacationing destinations for Japanese tourists and honeymooners.  Many international tourists, after visiting Tokyo, will often take a one-day trip to enjoy the beauty of Mount Fuji in full view.  The Hotel has 79 guest rooms and suites, including six dog-friendly rooms: five Regency Twin Pet rooms and one Regency Executive Pet room.  Special dog-friendly facilities include a dog shower, dryer and cage on the sun terrace.  The Residential Dog is a black Labrador Retriever, Haru (it means spring season in Japanese because Haru was born in the spring of April 3rd 2010).  He is the first official dog in residence in all of the luxury hotels in Japan as well as in Hyatt hotels all over the world --- and probably the most well-known employee in Hyatt Regency Hakone.

Haru, the Residential Dog

Personally, I have never met a Hotel Residential Dog before, although many years ago, I did have the pleasure to meet three Residential Cats in a Fashion Shop in New York City, Soho District.  I assume that the primary responsibilities of a residential dog are greeting hotel guests and ensuring that guest-dogs behave while staying in the hotel.  We shall find out from Haru’s boss, Hiroko san¹.

As an animal lover, I secretly hope that more hotels would employ residential dogs and cats, giving them fantastic job opportunities, not to mention that for some hotels, it would make good business and economic sense.  Perhaps they could be given a title, Director of Pet-Guests program, with special perks such as a plush doggie office, gourmet meals every day, weekly spa treatment and guaranteed job security, medical coverage and pension --- after all, they don’t draw salary --- or bonus, for that matter.  J

^{1. Attaching “san” after a Japanese first name is a sign of respect.}

INTERVIEW 

Did you always want to work in the hotel industry?

I wanted to be a marketing professional.  I used to work for a distribution company in charge of marketing.  It was by chance that at age 29, I changed my job to work for a hotel company in the marketing department.  

Can you tell us something about your professional experience?

I am very lucky to have seen and experienced hotel operations from all aspects. Besides my experience working as a part of hotel management team in a number of hotels, I also worked as a consultant for bankers, property developers, hotel owners, investment funds and hotel operators. Without these experiences, I probably wouldn’t have been able to succeed at my current position. 

Even though modern Japan has come a long way in gender equality, it is still uncommon for a woman to be in charge of a luxury hotel.  Secondly, Japanese work customs make it specifically difficult for women to have both a family and a career.  How do you balance the two?

I believe that I was very fortunate to have worked for several individuals and companies.  They believe in selecting employees based on their capability and performance instead of their gender.  First, the President of Hyatt Japan, Mr. Koga, recognized my ability and job performance.  He recommended me for the GM position at the Hyatt Regency Hakone, despite my gender.  Second, the owner of the Hyatt Regency Hakone was Morgan Stanley.  [Morgan Stanley is one of the world's largest diversified financial services companies, headquartered in New York.]  After a number of interviews and meetings, the management decided to entrust me with the GM position.  In March 2010, Hyatt Regency Hakone had a new owner, SHKP Hotels in Hong Kong.  Mr. Ricco deBlank, CEO-SHKP Hotels, decided to entrust my ability and keep me in my current position.  Again, I felt lucky.

Regarding your second question, unfortunately, I am not a good example.  I am a person who is not able to focus on my work and my private life at the same time.  As the result, I am still single.  I have been working very hard my entire career, which has brought me wonderful achievements, but I am not as successful in my private life [according to traditional Japanese beliefs]. 

Because you are a woman in a man’s world, do you feel that you have to try harder?

Yes, that’s true.  I’ve been working so hard --- much harder than most people.  Of course, men also have to work hard if they want to reach the top.  But, for [Japanese] professional women, we need to work harder to achieve success. 

Are most of your management team men?

Our employees are pretty much gender divided right down the middle but our senior management team consists of all men except for one woman. 

How do you feel about having mostly men working for you?

Actually, I feel quite comfortable working with men. For me, it’s more about the ability and attitude of the person as opposed to gender. 

Which aspect of your working life do you find most challenging?

The GM of a hotel has a whole range of responsibilities that include the hotel owner, guests and employees.  Trying to grasp the technical areas, such as engineering, does not come as naturally as other disciplines for me. 

In your opinion, will the economic problems in Europe affect Japan’s hotel industry?

Europe is an important trading partner for Japan. Therefore, Japan has close connections with many European companies.  There are many widely recognized European brands for consumer goods in Japan.  Not only that, European goods such as cheese and wines are essential part of Japanese life.  In addition, China is the biggest export market for Japan --- and Europe is one of the biggest export markets for China. Because it is all interconnected, the rise and fall of the Chinese export to Europe would affect the Japanese economy.

Also, well-known European brand companies are good hotel clients for rooms and banquets, e.g., events and parties, especially in Tokyo.  Products from Europe are necessary ingredients for hotel restaurants and bars in Japan.  As such, European economy will have a direct impact on the Japanese hotel industry. 

In recent years, Japan has faced some hardship.  Has this affected the hotel industry?

In 2011, we had the worst earthquake ever experienced in Japan.  Hotels in northern Japan, including Tokyo, were negatively affected.  After the earthquake, people simply did not want to travel or spend as much money.  The months of April, May, June and July 2011 were very tough for us because business was slow.  We began to recover in the summer and by December we were able to achieve our financial objectives.  In fact, our sales performance exceeded 2009 and 2010 sales for the same period.  It was really a tough year but we took the opportunity to review and improve our operation style and cost-control mechanisms. 

What is your forecast in 2012?

Overall, Japanese spending on traveling and F&B is decreasing; for example, consumers spend less on wine nowadays.  International tourists also dropped dramatically.  [The Hotel’s guest breakdown is 90% Japanese and 10% international.]  We don’t expect a dramatic recovery in 2012 because we still have small earthquakes from time to time that remind us of 2011’s disaster.  However, our January revenue was the best January revenue since the Hotel’s opening, which was a good start for 2012.  This year we hope to achieve the same revenue levels as in 2010.  

What steps did you have to take to ensure that your hotel was able to withstand this bad time?

I always keep in mind two things.  One, we are a small hotel with a small management team, and this makes it possible for us to be flexible and to communicate with each other easily.  After the earthquake, we became more flexible in our day-to-day operations.  For example, we adjusted the operation hours of our restaurants and bars.  Second, we are a part of the Hyatt family, and Hyatt supports us.  After the earthquake, we were able to send some of our employees to Hyatt hotels located overseas to work for a short term.  This helped us to reduce our payroll cost as well as to gain an opportunity of cross-culture exposure for our team members.  Also, experienced and knowledgeable Hyatt personnel from the headquarters gave us good advice on how to overcome the challenges during a soft market. I didn’t need to feel distressed alone.  I’ve learned that when we faced difficult times, our employees and Hyatt demonstrated their real strengths by giving us and each other the support needed. 

Revenue management is a fairly new concept in the hotel industry.  In fact, its role and function are still evolving.  How is the development of revenue management in Japan?

[In my previous job] as the Director of Sales & Marketing, I worked closely with the Revenue Director at Park Hyatt Tokyo.  She is now the Hyatt Strategy Director for the whole of Japan.  I am very proud of her.  I’ve learned a lot about revenue management.  As you said, the importance of revenue management is increasing.  RM is also becoming more popular in the Japanese hotel industry. The international chain hotels are leading the development in Japan.  Smaller domestic hotels still don’t have revenue management. They are starting to learn though . . . . 

Japanese consumers love the latest gadgets, such as mobile phone, SMART phone, IPad, IPod, etc.  Has this affected the way Japanese travelers make their hotel reservation?  

Yes.  When we travel, we check the popularity and reputation of hotels or airlines through word-of-mouth information.  We also try to find the cheapest rate.  Travelers write their impressions and comments on blogs or on travel sites.  The reviews of a hotel could affect its reputation either positively or negatively.  Also, more and more people are using their mobile devises to make reservations for hotels, restaurants, air or ground transports. 

Can you explain to us, what is the Japanese brand of hospitality?

We take the concept, “hospitality”, serious and believe that “service” is a profession.  There have been cases, where employees from department stores, luxury brands, financial institutions and hospitals are sent to a hotel to receive service training.

Japanese hospitality is based on the spirit of the word, Omotenashi, meaning “warm treatment”. The same spirit can be found in the style of Sado, the tea ceremony, and Budo, the martial arts.  Under the Sado and Budo philosophy, there is an important thought, ichigo ichie, meaning treasure every encounter with another person, because it may never happen again.  Based on such philosophy, a host emphasizes utmost consideration of others.  He or she will find every possible way to help guests feel comfortable and at ease.  Another element of Japanese hospitality is that it is delivered in a very unpretentious way without ostentatious gesture, and that the host never expects the guests’ gratitude.  Based on the Japanese philosophy of hospitality, we, at Hyatt Regency Hakone, offer professional service and authentic hospitality. 

As the GM of your hotel, what concerns you the most?

I am concerned with the future of the hotel.  I am thinking, I wish we could expand the hotel, or have an annex, or have another hotel.  As the first Hyatt Resort and Spa hotel in Japan, we have laid the foundation.  It would be wonderful for us and our staff to have an opportunity to make the best use of this opportunity. 

Are there differences between Japanese guests and American or European guests?

Japanese guests are very sensitive to the communications of our employees or the reactions of others.  So, our team members have to be very skillful when communicating with their guests. Japanese guests also rely more on others to make them enjoy, relax, or feel comfortable.  They want to have everything they can get, they assume to get, and they expect to get.  American and European guests are more willing to take initiative. They want to enjoy traveling on their own.  They request what they need from the hotel staff and then they go about doing their own thing. 

In Japan, consumers demand quality.  How do you ensure quality of service?

For us, it is about guest recognition.  When a guest has stayed with us more than five times, we ask if we can take a photo of the guest.  We use the photo so that all staff will try to remember the guest’s face and name. Then, we try to call the guest by name. Once a more personal communication between the staff and the guest is established, we can identify the guest profiles and use the information to personalize our services for the guest. 

I don’t believe that being dog-friendly is a corporate-wide policy for Hyatt.  So, what made you decide that this Hyatt Regency Hakone should be dog friendly? 

The hotel was originally built as a resort apartment in 2003.  Hyatt began its renovation in 2006.  There were six dog-friendly rooms.  We had a choice:  We could keep the dog-friendly rooms, or we could change them into six regular guest rooms.  We decided to keep the dog-friendly rooms.  We made sure that each of the dog-friendly rooms has a big cage space, a separate dog shower, toilet paper for dogs; a trash can to dispose the dog toilet paper, two bowls (water and food), wet tissues, and toilet bags for doggie strolls outside of the hotel. 

Some dog-friendly hotels in the US offer doggie amenities, such as doggie cookies, doggie bed, doggie bowls and even doggie tennis balls.  What doggie amenities does your hotel offer?

We hired a dog attendant, so that we could provide our doggie-guests with special services.  For example, we offer our doggie-guests with a welcome doggie snack when they first check in.  We have room service for our doggie-guests.  We also offer doggie manicure and hair brushing service.  In fact, our unique doggie service has gained some reputation among the dog lovers in Japan.  

Does Haru, the Residential Dog, belong to someone who works in the hotel?

Actually, we bought the dog.  We hired a dog-trainer when he was three months old.  The trainer still comes once a month to give Haru remedial training. Haru learned to welcome guests by opening the automatic door and keeping the door open until the guests are inside the hotel lobby.  He wears a scarf, which is the same color as the staff’s uniform.  He also wears a name tag just like all staff.  He is quite well known among the Japanese dog-lovers.  

Where does Haru sleep?  Does he have a doggie room with a panoramic view all to himself?

I live in the Hotel, and Haru stays with me at night.  During the day time Haru is with the Dog Attendant, working with him to help our doggie-guests. 

Do you think Haru contribute to maximizing your hotel room revenue?

Haru is a famous dog.  He has been picked up by various magazines and websites. Many of our guests like dogs.  While they are checking in, they see Haru, they smile.  He is their first contact in our hotel.  Haru contributes to selling the brand of our hotel.  Also, he helps to raise the occupancy rate of the Dog-Friendly Rooms.  

On a more serious note, as living standard improves, affluent societies are increasingly showing their concerns for their pet’s or pets’ welfare.  In light of this development, do you foresee that pet-guests will become more common and that they could be a significant source of incremental revenue income?

Japanese birth rate has been dropping steadily over the years.  It is said that we have more dogs than babies. Also, in Japan we are starting to help abused dogs.  I think that pet-guests will become increasingly common and an important source of revenue income.  

I know that the traditional channel of distribution for manufactured goods in Japan is completely different from that of the US or European markets.  How does the Japanese channel of distribution in the travel market work?

In the past, most travelers depended on travel agencies to arrange their bookings.  Today, there are still quite a number of Japanese travelers who rely on travel agents.  However, many are also using online travel sites to make bookings as well as booking directly with the airline or hotel. 

Some of the European and American chain hotels are facing difficulties with powerful OTAs in maintaining rate parity.  Do Japanese hotels also face the same problems?

In Japan, we are just starting to use OTAs on a full scale.  We are finding our way to utilize OTAs effectively and timely in order to sell rooms.  The development of OTAs has brought us several new ways of selling; for example, lastminute.com, groupon.com, etc.  It is an important channel for airlines and hotels. 

What are the most important lessons you’ve learned from your current job?

I’ve learned so many things from my current job. I can say that I am learning something every day.  The most important lesson I’ve learned is that there is always more to learn, therefore, we need to always keep an open and curious mind.  

What were the proudest or the most satisfying moments in your career life?

If someone who used to work with me tells me with a happy face that his/her working experience with me was very valuable and that it brought him/her something positive, or if he or she says: “I was lucky to have worked with you“ and ”I learned so many things from you”, these words bring real joy and meaning to my life and make me very proud. 

What advice would you offer to students and junior employees, who are inspired to become a GM someday?

First, one should develop one’s taste and knowledge of food, wine, furniture design and just art in general.  Second, for hoteliers, the first couple of years are the hardest. They need to learn everything about the Hotel’s products and services. The hotel business is human business --- they need to gain confidence talking to guests as well as to other employees. If they feel confident talking to others, it will make them feel more confident as a person. 

Finally, in Japan job mobility is rather low.  People do not change jobs often.  Do you expect to stay working as the GM for many years to come? 

The younger generation is changing.  They expect to move more often in their career than the older generation.  As for me, currently I have no idea and no specific plan about my future.  What I can say is that in my career, a new challenge always comes to me, whenever the situation calls for it.  So, I am just working hard as always, learning, growing and enjoying every day.