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Franchising: Accor Decision pays off for Grand Mercure Monaco

Mon, 20 Dec 2010 03:40:32 +0000

A decision to join the Accor franchise network is paying off for Grand Mercure Monaco Apartments in Nelson.

Grand Mercure joined the Accor franchise network in July 2008 and has already seen a significant increase in business thanks to bookings coming through Accor’s numerous distribution channels.

An old world style resort village, the four star plus property was named Best Accommodation in the 2010 Hospitality Association of New Zealand (HANZ) awards, repeating its success in 2008. Even better, it pipped 5-star hotels such as the Westin Auckland for the award.

Not surprisingly, Grand Mercure general manager, Clare Davies, was very chuffed with the award: “I think what makes this title so special is that it is judged on a very comprehensive range of measures, including marketing strategies, HR practices, profitability, operational procedures and customer service.”

Better distribution channels
However, Ms Davies says it is still difficult for a small-unbranded hotel to gain traction in the international market without spending large sums on marketing and this is why it was decided to join the Accor franchise network.

“Grand Mercure Monaco Apartments is a special and unique resort but on our own it was very hard to be heard in the international marketplace,” she said. “Joining Accor gives us distribution channels right around the world at an affordable price and support from a huge sales team that can bring us guests we might otherwise not be able to reach.

“The best thing is being able to bounce ideas and opportunities through the Accor team, particularly in marketing and to have the support of other general managers and our franchise manager is also fantastic,” she said. “It gives you more of an understanding of what is happening in the market around other properties.”

“Accor also has a strong corporate focus, an area we are looking to grow, and strong loyalty programmes such as Advantage Plus and A Club. One of the other reasons we joined was the great benefits we could gain through their procurement programme.”

Wide range of accommodation
Following a recent expansion and upgrade, the resort now has 20 hotel rooms, 42 one-bedroom cottages and 38 two-bedroom cottages as well as a health and beauty spa, saltwater pool and gym, and an award-winning restaurant, The Orangerie. There are high-tech conference facilities for up to 180 delegates. A craftsman jeweller and hair salon add character to the village.

Four accommodation types are on offer – the boutique hotel rooms aimed at the business traveller; new one-bedroom cottages developed with the tour and conference markets in mind; family friendly two bedroom cottages; and self-contained one bedroom summerhouse cottages.

The hotel is well positioned for guests wanting to explore the dramatic coastal scenery and numerous wineries of Nelson, as well as the famous wineries of the Marlborough region. It has been developed in keeping with the strong history of Nelson, the second oldest city in New Zealand, first established in 1841. Using salvaged bricks and timber from Nelson Wharf, the hotel captures the spirit of a traditional village with cobbled pathways, trailing roses around windows and doors, and beautifully landscaped old world gardens.

Each hotel room is tastefully appointed with comfortable furniture and spa rooms offer a spa bath in Italianate marble or a sea facing courtyard, while the standard rooms feature views of the resort’s cottage gardens and views over Waimea Inlet to the mounts of Kahurangi National Park. Open fireplaces in the self-contained cottages help to enhance the romance and ambience.

Gaining affordable benefits
For Accor, the inclusion of the Monaco Apartments into the Grand Mercure family made perfect sense, with the hotel joining three other quality Grand Mercure hotels in New Zealand – the Grand Mercure Puka Park Resort on the Coromandel coastline, Grand Mercure Oakridge Resort & Spa in Wanaka and Grand Mercure Apartments in Wellington.

“Franchising is an affordable way for small properties to gain the benefits of a large network while still maintaining their own stamp on services,” said Ms Davies. “The relationship has definitely brought the hotel to the attention of new people and because the Grand Mercure brand has such a strong reputation in Australia and New Zealand it helps to define the hotel in the minds of the travelling public.”

Ms Davies says she has also seen a positive response from wholesalers and agents who have commented on the Grand Mercure brand being a perfect fit for the property.

Dino Mezzatesta, Accor’s general manager Franchise Hotels says that especially in difficult economic conditions, support from Accor can make a big difference in filling a hotel, without sending costs soaring.

Laundry: In-house Laundries need Careful Consideration

Mon, 20 Dec 2010 03:40:25 +0000

An in-house laundry system can be one of the most beneficial and cost effective investments a hotel, motor lodge or motel owner can make. Cost-benefits of an in-house laundry can provide savings direct to the bottom line of up to 40 per cent, compared to outsourcing rental linen services which can mean paying for the added cost of transport and profit content for any contract service provider.

Installing in-house laundries in accommodation properties needs a great deal of consideration before expensive equipment is purchased. There are two types of install – brand new for a completely new premises or someone who has decided to put a laundry into their building. Secondly, there is replacement and upgrading of equipment. There are similarities and differences in both.

Sales director of Speed Queen NZ Ltd, Duncan Gardiner, says with a new install, the type of equipment to purchase, particularly with washing machines, is the major decision to be made – the two main considerations are the size of the machine and whether you need a ‘hard mount’ or ‘soft mount’ machine.

“The fundamental difference is that one – hard mount – requires being structurally anchored to the floor because the outer drum is welded to the frame of the washing machine. All that vibration, Newton force and g-forces generated during extraction is transferred into the frame. That means it has to be chemically anchored to a concrete floor or bolted to a metal base frame.

“In a soft mount machine, the drum floats on suspension struts so none of that vibration is transferred into the frame, meaning those machines are easier to install. They can literally just sit on the floor and don’t have to be bolted down, but they are more expensive because they are engineered a lot differently.”

Mr Gardiner believes a hard mount machine would normally be the type most suitable for a hotel or motel’s needs. “It’s cheaper to buy and that normally outweighs the advantages of soft mount.”

Normal spin and high spin is the other way these machines are referred to, with the hard mount being the normal spin. “But a soft mount machine can spin a lot faster because it’s not transferring all that vibration to the frame. That gives it advantages in specialist applications. For instance, big commercial hotels will use them where they’re doing huge amounts of towelling or other heavy items because it reduces their dry times.” But for most medium size installations, a hard mount machine or a normal spin machine is going to be more than adequate, he said.

Managing director of ELS New Zealand, Allen Moore says ancillary benefits of an in-house laundry include the greater flexibility to use high quality linen matching the colour and decor of the establishment, options not normally provided by outside contractors. “Furthermore, you never need to face the problem of being caught short of clean linen stock during busy periods or holidays, when deliveries may be slow or non-existent from a linen rental company,” he said.

“However, an in-house laundry system must be well designed, equipped with correctly sized quality equipment supported by the supplier, and operated by staff who have been trained to operate the laundry efficiently. The assistance of an experienced and qualified chemical and detergent supplier is also important.”

ELS advice when stabling a new laundry includes:

• Sufficient floor space to allow a well-planned layout allowing for laundry pre-sorting areas which may include a tub for soaking or pre-spotting

• Area for the correct installation of the equipment with allowance for adequate service area around the machines, plus room for a table for folding and sorting the linen in preparation for delivery to the rooms or linen store

• Separate clean side and soiled side, providing a work-flow within the laundry design layout that supports good hygiene standards and prevents the possibility of cross contamination of dirty laundry to clean laundry

• Correctly specified services of electric power, water supplies (hot and cold), drainage, gas supplies, and venting of the dryers to the outside atmosphere.

It is important to note that during a time of increasing energy costs, gas heating as an alternative for both hot water supplies and dryers usually provides a cost effective option to electric heating.

When it comes to selecting equipment, Mr Moore’s advice is to choose makes of equipment supported by efficient and long term service, spare part supplies and ongoing support for staff training or technical backup.

Trolleys: What Your Housekeeping Trolley says About Your Business

Mon, 20 Dec 2010 03:40:10 +0000

There is more to the housekeeping trolley than many realise. It is part of your often overlooked presentation to the public.

The size, shape and mechanisms of the trolley have changed over the years but they still remain an important part of the housekeeping department. The housekeeping trolley is your silent demonstration of how your business operates. It is one of the most visible pieces of equipment your guests see every day.

Often the housekeeping trolley, regardless of size, is in the corridor when guests are going for breakfast or checking out. If your business is operational 24 hours a day then guests see the trolley day and night. Have you ever given much thought to the trolley, its uses, its benefits and the staff that use them? From your guest’s perspective, maybe it is time for you to review your housekeeping trolley at various times of the day.

Remember, first impressions have a strong impact on guests and visitors. If your housekeeping trolley is untidy, unclean and damaged then this will portray an image of how your business is managed. You do not want a negative report because of an unsightly housekeeping trolley.

An adequately stocked, tidy, clean and well presented trolley says a lot about a business. Visitors and guests will perceive that this reflects the place is run efficiently. It does matter that staff are in uniform and that your equipment looks good.

Having standardised trolleys also gives a semblance of order and professionalism throughout the complex. Maybe it is time to revolutionise your housekeeping trolley.

Remember how difficult it was to manoeuvre the notorious shopping trolley? It seemed to have a mind of its own and would take off heading towards someone’s late model BMW. You don’t want the same type of disaster happening with your housekeeping trolley.

Appearance, safety and productivity are essential requirements. Besides being a piece of necessary equipment it is a mobile workstation and must suit the required needs. One size does not fit all.

Individual assessment of your establishment and its requirements is what is necessary, not what the hotel up the road has. You don’t need the biggest and brightest — you need what best suits your facility.

There is always a lot going on about productivity, making money, cutting costs and corners, but this does not always lead to a positive outcome or benefit your business. Preferably you want to save money, have less work compensation, happier staff and fewer injuries. Sometimes you have to spend more up front to cut long term costs.

It is not just careful consideration of your housekeeping trolley that is important. Consider the age of your employees — due to the aging workforce, some companies are now purchasing motorised trolleys and still get the job done efficiently while not exhausting staff.

Large resorts often utilise golf buggies to carry housekeeping equipment between widespread complexes.

Ergonomically designed housekeeping trolleys, whether they are new lightweight materials or motorised, when specifically assessed for your premises, will significantly lead to a reduction in injury rates and associated medical, insurance, disability, workers compensation costs and lost productivity hours.

Depending upon their size and staff numbers, some facilities are making a transition to more motorised units and others are becoming more aware of the cart-less (started by J W Marriott in Mexico City) housekeeping trolley. The cart-less trolley is like a suitcase on wheels and is perfect for staff on light duties and for some establishments.

The ever changing work environment and occupational health and safety related regulations impact on your trolley decision making.

Besides the necessary OSH regulations, there are other reasons for choosing a suitable housekeeping trolley. Worker safety is always a valid issue but the safety of guests, such as children, is a concern as well. You don’t want guests struggling to manoeuvre their luggage around a trolley in a narrow hallway. Neither do you want the trolley obstructing emergency exits and being cumbersome and difficult to move.

You want your trolley to reduce guest inconvenience, to blend in, increase employee satisfaction, reduce (hopefully eliminate) nicks and scuffs on the wall and carpet wear and tear.

It may be necessary to secure the supplies, such as shampoos or food items, when the cart is left unattended to avoid theft and from children eating products which may be adverse to their health.

There are numerous housekeeping trolleys now available and through continual research, the trolleys are improving in their design, manufacture and production. When there is so much to choose from and consider, it can be difficult to know where to start.

The two most important questions for you to answer are... what is the load capacity and what is the floor surface. Your choice of castors is very important as the right castor on your trolley will make all the difference. Your investment in quality castors is critical to the effort needed to push the trolley

Consider the following trolley:

• Think about the size, shape and weight of the goods to be loaded onto the trolley

• Will the trolley always be loaded evenly?

• Give yourself enough room to load and unload the trolley easily

• If the trolley is going into a lift, the larger the wheels the better. Make sure the trolley will fit into the lift easily (allow for the length and height)

• Note the type of floor surface and if it changes

• Record the distance your goods need to be pushed

• Note if there are tight corners to negotiate

• Does the trolley fit through the various widths of doorways?

• Are there stairs or gutters to negotiate and, if so, how many?

• Will the trolley be loaded for long periods of time?

• Be aware of product finishes for your trolley — available for all products in stainless steel, solid brass, chrome plated or powder coated.

It is possible to have many detachable carriers on one trolley to save time running back to the stores for restocking. These carriers are designed to keep the contents at a workable height to help prevent back injuries.

Procedures need to be in place so that the trolley is packed to how it will be used, step by step.

Necessary tools and supplies need to be available in a safe, accessible and efficient order for housekeeping. Even down to the nitty gritty of describing the bed making process so the equipment is packed exactly how it is to be unloaded for immediate use.

Unlike many years ago, today there is more awareness of infection transmission from bodily fluids. It is worth considering having a designated place for a biohazard kit—with personal protective equipment—on the housekeeping trolley, stored securely and staff trained how to use it correctly.

A current check list will help ensure everything needed is loaded onto the well designed trolley before the work starts, eliminating repeated trips to restock from the storeroom.

Some housekeeping trolleys tend to carry less consumables with many properties now supplying mounted shampoo, conditioner and soap dispensers in the bathroom. There are other properties that capitalise on their brand name that even when the soaps and shampoos are taken home, the brand name is still prominent.

Whether or not the housekeeping is performed by staff within the establishment or contracted from another supplier, all the principles of an efficient, safe and well presented housekeeping trolley remain the same.

Trolley manufacturers can use their housekeeping trolley to their advantage within the accommodation facility, by clearly having their brand name displayed and ensuring they have some for sale.

Consult the experts in the field from the start so you can make an informed decision about any purchases. You will save unnecessary stress when you have sourced the right advice and information about what you want to achieve.

A trolley that is designed for your specific needs, will not only save you time and money, but also will also provide a happier and more productive work place.

Social Media is the Key to Development

Mon, 20 Dec 2010 03:39:52 +0000

Some of the latest PMS developments are getting direct website bookings using social media, and mobile iPhone and mobile apps integrate the booking details automatically into the PMS and update room inventory across all channels.

Let’s take a look at some of the latest products and how they interact with the PMS. Maestro’s Integrated Real-Time ResWave booking engine enables independent hoteliers to drive reservations from Twitter and Facebook as well as iPad and other mobile devices. Northwind, provider of Maestro Enterprise property management hotel and reservation software solutions for the industry, recently announced the launch of its new mobile-capable ResWave booking engine that enables guests to book reservations from virtually any mobile device and the Apple iPad. ResWave enhancements include reservation capability directly from social media sites like Facebook to increase revenue and lower reservation costs.

Mobile devices like the iPhone, Droid, and Dell’s Streak are the web devices of choice today and Maestro’s mobile ResWave now enables guests to shop and reserve rooms on these handhelds and the iPad. Mobile users can now change travel plans by making dining reservations and booking a spa and other appointments from their smart phone with Maestro.

You can use ResWave on Facebook and Twitter social media pages and property websites - a social media strategy linked with Maestro’s booking flexibility generates hundreds of room nights. Social media booking capability gives independent operators the ability to create real-time special promotions on Twitter and Facebook that drives business and increases revenue because guests book reservations directly from the property’s fan pages and Twitter.

Promotions and products that are available on your web site can be booked on the mobile booking engine, create mobile specific promotions to provide unique offers for mobile users, while built-in tracking lets you see how many reservations are coming from mobile devices.

With the recent release of apps like ibooker, m2bed, some of the questions are how will they compete against each other and how to market to users so they actually download them?

Let’s take a look at one of the new products; m2bed is mobile booking engine that interacts with your PMS; m2bed is the most advanced and flexible mobile hotel platform and has been developed exclusively for hotel chains and travel intermediaries. m2bed supports mobile web, downloadable on-device applications and SMS. It makes it quick and easy to launch mobile services, allowing accommodation providers to meet customers’ service and information requirements when they are on-the-go.

The solution enables you to make available your CRS, PMS, e-commerce platform, CMS and regular PC web site content and functionality, and new mobile-specific services to virtually all mobile devices.

m2bed recognises the type of mobile device your customers are using and dynamically provides an optimised mobile view of your content in real-time given the attributes of the specific handset or PDA, not a lowest-common denominator approach.

Typically no IT development is required by the hotel chain/travel intermediary. Generally MTT can implement the first major release of mobile services within 4-6 weeks of a formal go-ahead. Users can view, change and cancel bookings, receive booking confirmations, locate, book and pay for accommodation and ancillaries, receive travel service notifications, receive promotional offers, view hotel information and location map, weather and local travel information.

A process will need to be set automatically to apply a rate to room inventory based on a percentage of occupancy - before 80% you might want to set rooms lower but after that at what percentage do you get enough walk ins to justify putting sales on hold over the Internet so your not costing yourself more money to fill your hotel than necessary.

First we’ll talk about where PMS is at moment and take a quick look at one market leader and what new PMS developments have become part of the norm.

Smaller properties feel they are often forced to buy more functionality than they want. Micros Opera solves this by offering a scaled down version, where you can choose the amount of features to be made active from the full functionality and software. This is flexible for the user and simple for the vendor to support, whether it is a small hotel or large brand with multiple properties.

Opera Xpress is a slimmed-down version of the web-enabled PM-Hotel Edition. It stands out because it allows you to design a property management solution suitable to your distinctive needs and budget. You select the features you want from the Opera PMS menu. You configure the screens according to your business processes, reducing costs by streamlining workflow.

Opera reservation features are integrated with other functionality such as profiles, cashiering, and deposits. An extensive set of features for setting and automatically controlling rates, for rate quotation and for revenue forecasting and analysis to create a most comprehensive rate management system. It also provides profiles, complete demographic records for guests, business accounts, contacts, groups, agents and sources.

News: Proposed UE Changes Cheapen Valuable Tourism Industry

Mon, 20 Dec 2010 03:39:40 +0000

Proposed changes to school University Entrance requirements could have serious implications for the multi-million dollar tourism and hospitality sectors, say industry leaders.

The New Zealand Qualifications Authority is currently consulting with stakeholders on changes to UE requirements. The proposal as it currently stands will create an ‘approved subject’ list linked to the school curriculum, which by default would exclude tourism as a University Entrance subject, says Tourism Industry Association New Zealand Chief Executive Tim Cossar.

“By implication, the NZQA proposal is suggesting that tourism shouldn’t be a subject of choice for more able students. This will send a very clear message to schools and teachers that tourism is a subject for less capable students and that tourism is an industry that can only provide limited career options.

“Given that the tourism and hospitality sectors support one in ten jobs in New Zealand and that tourism is the country’s top export earner, the NZQA approach is alarming.”

Mr Cossar says TIA, the Hospitality Association of New Zealand (HANZ) and the Aviation, Tourism and Travel Training Organisation (ATTTO) do not support the use of an approved subject list for the purpose of UE. The three organisations have expressed their concerns to both Prime Minister & Tourism Minister John Key, and NZQA.

“Any proposal that requires students to focus solely on traditional academic subjects is out of step with contemporary learning outcomes that aim to equip students with a mix of vocational as well as academic skills which are better aligned to job and economic outcomes,” says ATTTO Chief Executive Elizabeth Valentine.

“Attracting bright young people into tourism training and careers is absolutely vital to the continued growth and sustainability of the industry. It is important that due consideration is given to University Entrance as a pathway into jobs and careers, not just academic success.”

She says tourism students gain a range of skills that some of the more academic subjects do not provide, such as problem solving, customer safety, communication and people skills.

HANZ Chief Executive Bruce Robertson says the current proposal devalues a vital export industry and is inconsistent with the government’s objective of growing New Zealand’s economy.

“Our organisations are extremely concerned that NZQA’s proposed changes to UE will restrict career pathways in the tourism and hospitality industries. Their proposal is effectively saying to prospective students ‘don’t choose tourism, it’s not a viable or long-term career option’

News: Capital is Top of the Pops with Kiwi Travellers

Mon, 20 Dec 2010 03:39:30 +0000

Wellington is the number one destination hotspot for Kiwis but Christchurch’s recent earthquake isn’t putting visitors off as the Garden City moves to second place, according to a new survey.

The Fly Buys/Colmar Brunton Mood of the New Zealand Traveller Survey was released by the Tourism Industry Association New Zealand (TIA) today.

Fly Buys CEO Lance Walker says the survey was good news for Christchurch businesses because it indicated that Kwis were keen to travel there despite the upheaval caused by the September earthquake.

“Kiwis have been impressed by the resilience of Christchurch residents and it looks like we still view it as a fantastic place to visit,” he says.

Christchurch has moved from third to second place, ahead of Auckland in the popularity stakes with Kiwi travellers.

TIA Chief Executive Tim Cossar says that price remains the main barrier for 72 per cent of Kiwis when it comes to travelling around New Zealand more in the next six months but work commitments also rank highly at 50 per cent.

“The survey confirms that most Kiwis want to take a break over summer but economic conditions are affecting their holiday decisions. There are real opportunities here for New Zealand tourism operators to attract more bookings by demonstrating that they are offering good deals and value for money,” he says.

Mr Walker agrees, and says the proof is the popularity of Fly Buys new partnership with Air New Zealand Airpoints, which has made it easier to use Fly Buys Points to get flights on Air New Zealand.
“With more flights on offer, thanks to the partnership, our Members are claiming 200 per cent more flights than ever before,” he says.

Colmar Brunton CEO Harry Pappafloratos says the quarterly survey gives the travel industry an invaluable snapshot of the travel intentions of New Zealanders and pinpoints where they need to concentrate their efforts.

“The survey showed that 73 per cent of us would like to do more domestic travel than we plan to and 43 per cent of us are intending to travel overseas in the next six months. With so many of us keen to pursue domestic travel the market is wide open for all New Zealand destinations to tempt us into a holiday. Perhaps Wellington needs to watch out,” he says.

Further findings

• Wellington is the most popular spring/summer holiday destination, followed by Christchurch, Auckland, Queenstown and Nelson

• Australia remains the most popular autumn/winter holiday destination, followed by USA, Fiji, United Kingdom, and Rarotonga

• 73 percent of Kiwis always buy travel insurance when they travel overseas, 18 percent mostly buy travel insurance, five percent seldom and four percent never buy travel insurance when they travel overseas

• Only nine percent of Kiwis always buy travel insurance when they travel domestically, and 69 percent never buy it

View the survey results at www.tianz.org.nz

@Home Report: A Question of Commission

Mon, 20 Dec 2010 03:39:11 +0000

From time to time new members of our association contact me querying whether they should be expected to pay commissions for bookings received from travel agents, inbound operators and I sites based within New Zealand. These commissions can vary from 10 per cent at the lower end of the scale with 20 per cent being common and as high as 30 per cent being required by some inbound operators. There are some hosting members who will not pay any commission, which is their right, and if they are happy to only receive direct bookings from clients and have enough business by doing this that is great.

Other hosts draw a line at paying a maximum amount of commission which will see them get many referrals from travel agents and I sites. The reason larger percentages are demanded by mostly inbound operators is that they are the last part of a chain of businesses that have joined together to direct a clients bookings to your accommodation business. Naturally each member of the chain require some payment if they are to remain in business.

As an example, a couple from Germany make a decision to visit New Zealand. They are not very computer literate and are not sure where they wish to visit or stay whilst here so they go to their local travel agent for advice. Whilst their local agent is not that familiar with our country he provides limited advice and gets in touch with a New Zealand experienced travel wholesaler, still based in Germany who in turn contacts an inbound operator in New Zealand to provide information and design an itinerary. Once confirmed as suitable the inbound operator makes the required accommodation, travel and activity bookings for the couple. If each business is happy with a 5 per cent commission, the total commission you as an accommodation operator could be expected to pay is 15 per cent however it would be normal for a 20 to 30 per cent commission rate to be expected for the above type of business.

Do not be scared to set a maximum amount of commission you are prepared to pay as if an inbound operator has clients wishing to stay with you they may accept a lower commission rate in an endeavour to keep their clients happy. If the business does not come your way don’t worry, because if you paid a commission rate that you felt was exorbitant the booking may not have been profitable anyway. Since major airlines got tough about the commission rates they were prepared to pay agents have put more pressure on accommodation providers to make up the difference they have lost.

I am of the opinion that with the advent of internet and the ease with which travellers can make their bookings directly with operators costs that agents incur in making bookings should fall back more as a surcharge on the clients who request their services.

To simplify things I suggest the following main points-

• You decide what commission, if any, you are prepared to pay and advise those making bookings with you of your limits.

• Commissions must be part of your advertised accommodation rates as it is completely unethical to add the commission to your set rates. However there is nothing wrong with advertising a room rate that is from $x to $y to cover seasonal variation or inclusion of a commission.

• Do not discuss commissions with your guests when they stay. This is a confidential matter between the agent or I site and yourselves.

• If dealing with agents make sure you enforce prompt payment of the accommodation costs charged. The agent will likely have been paid in advance of the guests travel. If you are paying a commission and also waiting several months for payment you do need to consider is the business profitable enough to warrant retaining it.

Trevor Knight

@home New Zealand

Insurance: The Day the Earth Shook

Mon, 20 Dec 2010 03:38:59 +0000

It’s sobering to think Canterbury’s earthquake was as strong as the one in Haiti earlier this year, which caused widespread devastation and killed approximately 230,000 people – the fact that no-one lost their lives here is nothing short of a miracle. In saying this, there is a hard road ahead for many thousands of people as they look to rebuild their lives and their businesses.

For many, this disaster is a reminder of the importance of insurance – once family, friends and colleagues are safe it’s natural that thoughts turn to better protecting assets and staying operational at such a time.

“The earthquake that struck Christchurch on the 4th of September has confronted us with a big problem that is too big to be tackled alone. All parties – local government, insurers, the EQC and the Government - must work together to reach consensus on the re-building of Christchurch. The repairs and rebuilding must take place with the goal of providing solutions that serve both the immediate and long-term needs of the people of Canterbury.

“My challenge to the wider insurance industry is to help maintain confidence in your product. High levels of insurance have a strong community benefit and have bought considerable peace of mind, at a time when the aftershocks keep coming.” - Hon. Gerry Brownlee, Minister for Economic Development, Energy and Resources, and Earthquake Recovery.

Two weeks after the disaster, nearly three thousand homes were uninhabitable, and another three thousand weren’t weatherproof. There are also thousands of businesses affected, not to mention the 20 per cent of New Zealand’s farmland in the region whose continued operation is critical to the very lifeblood of the region’s economy.

Christchurch has seen many commercial buildings significantly affected. Old brick buildings, suburban shops and houses with masonry construction were the most damaged, with chimney collapse widespread across the region.

Our South Island agent, John Hicks, specialises in the Accommodation sector. He has been out and about in the affected areas recently and had this to report from his travels:

“Driving the five hours down from Nelson gave me a bit of time to reflect on the extent of the damage to expect, and whether our clients’ early perceptions were overstated or reserved. As was to be expected, there were both. Some who had said there were only a few cracks, had not fully appreciated how, collectively, their premises had suffered more than they first thought.

It was clear that buildings constructed prior to 1935 predominantly of brick were worst affected, and many of the older houses had lost their chimneys and brick fences had either toppled or were no longer safe.

I was able to get a number of claims lodged early with a Christchurch Loss Adjuster which enabled our clients to be visited promptly. These visits have been for initial inspection only, but now builders, geotechnical and structural engineers are visiting to assess the damage, comment on what action needs to be undertaken by the client and outline the procedure that will be followed.

From the client’s perspective, there is a feeling of frustration, with many wondering when they will see some work begin to reinstate their properties.

Thankfully for all of our clients, they have been able to continue trading with the reinstatement of essential services. For some though, this was only after 4 or 5 days in which time they lost clients and had to turn others away. There is also concern being expressed by a number of Moteliers about the impact the earthquake has had on their business through travelers cancelling coming to the city because of the wider degree of damage. There have also been scheduled sporting events cancelled and block bookings not taken up. With this happening in the off season, the impact is both financial and emotional.

The upside to this is that many Motels are now obtaining business from domestic property owners whose residences are unsafe and so they have long term bookings through the insurance companies.

They also realise that trades people will be coming to the city to assist in re-establishing the damaged infrastructure and properties and that this could take many months.”

Lessons learned

1. This disaster has highlighted the importance of stock loss and business interruption cover. For many of the businesses affected, the ability to continue paying their staff wages through this time was paramount to them. From a customer’s perspective, Business Interruption cover, the period of indemnity on your cover, and Earthquake insurance are absolutely key.

2. Every insurance company is required to have a solvency rating that reflects its claims paying ability. When choosing your insurer it is very important to know their solvency rating. Claim time is when ‘the rubber meets the road’ – so make sure you are with an insurer with a good rating. Standard and Poors, a company most notably known as an independent provider of credit ratings, use the following rating scale:

A - Excellent/Strong

B - Adequate/Vulnerable

C - Poor/Highly Vulnerable

3. Check whether your insurer is a member of The Insurance Council. The Insurance Council has developed a set of principles which aims to continually improve the standards of practice and service that member companies provide to their customers. Standards around quality, ethics; service, claims settlement and providing insurance cover that meets the customers needs.

4. Have alternate access on hand to the internet other than through fixed phone wires (perhaps a prepaid broadband or a T-Stick), keep a cheque book in the event that EFTPOS is down and no-one has a manual credit card processing machine, and most importantly, have cash in a secure location which can be easily accessed. If power goes down, so does all electronic banking and you will need cash for basics such as food and water.

5. Don’t forget to think about, as well, the threat to your business in losing you, and the people who are vital to the continuing success of your business.

6. It is very important that your covers are reviewed regularly (at least once a year) to make sure that:

• You are paying a fair premium

• You are neither under, nor over insured

• Your cover is up to date so that it will work for you when you need it most… AT CLAIM TIME.

News: CityLife Auckland and Heritage Auckland Awarded Qualmark Enviro Gold

Mon, 20 Dec 2010 03:38:48 +0000

Heritage Auckland and CityLife Auckland A Heritage Hotel have both just achieved the prestigious Qualmark Enviro Gold accreditation.

The two hotels join Heritage Christchurch, Heritage Queenstown and Heritage Rotorua in achieving Enviro Gold status.

Chief Operating Officer of Heritage Hotel Management Jeff Shearer says “Heritage Hotel Management has been a leader in environmental benchmarking for over a decade, so it’s enormously pleasing to achieve a sustainability landmark of this magnitude.”

To earn this official tourism environmental award, the hotels had to achieve high levels of efficiency in energy, water and waste management, plus, show strong community responsibility during their Qualmark assessment.

"The Qualmark Enviro Awards reward innovation and continual improvement in sustainable business practices," says Paula McCallum, General Manager of Qualmark. "We recognise businesses that work effectively to reduce their environmental impacts and who build on their efforts year on year. We are proud of the rigorous and demanding standards of our Enviro Awards process. Businesses who achieve Enviro Gold status, have reached the pinnacle of achievement in this area and deserve congratulations," says Mrs McCallum.

CityLife Auckland A Heritage Hotel has a mix of hotel rooms and suites, including a luxurious roof top penthouse. Facilities include a restaurant and bar, lap pool, health club and meeting rooms.

Of importance in achieving the gold status was CityLife Auckland’s commitment to reducing waste going to landfill with worm farming of all food scraps, through to gifting surplus carpet and drapes to the HEET fund during a refurbishment. Plus, support of children’s charity RMHA, and arts organisations including the Royal New Zealand Ballet and the New Zealand Opera.

Heritage Auckland is the ultimate in recycling, being created from a renovation of an old department store into a popular 4.5 star hotel. Facilities include two swimming pools, two health clubs, a restaurant and new look lobby bar. Also of note is the historic Deco Grand Tearoom.

The hotel focussed on scrutinising suppliers and their products for their sustainability commitments in order to reduce the carbon footprint. Heritage Auckland is also well known for its corporate responsibility supporting many community based events, festivals and charities.

Jeff Shearer adds he expects further Heritage Hotels to be contenders for Enviro Gold accreditation in 2011.

News: Accommodation Award Winners Show Innovation in Spades

Mon, 20 Dec 2010 03:38:40 +0000

The outstanding accommodation winners in this year’s Tourism Industry Awards prove that innovation comes in many guises and isn’t determined by size or sector.

Innovation was the theme of this year’s revamped awards. It’s a critical success factor for New Zealand’s tourism industry which has to vie for consumers in a very competitive world. We can’t out-spend so we have to out-smart the opposition.

Wellington’s Bolton Hotel won the prestigious Westpac Hotel Award. The boutique five-star Qualmark rated hotel always tries to think differently about what it can offer its guests, as well as challenging the status quo.

Bolton Hotel

A recent innovation is the Bolton’s Brainfood menu. It’s packed with delicious food designed to stimulate the neural pathways of attendees at events at the hotel, keeping them mentally alert throughout the day. The Awards judges commended this contemporary and elegant hotel for its commitment to originality, independence of thought and industry leadership.

Napier’s Kennedy Park Top 10 Resort, winner of the Holiday Park Award, aims to offer guests a complete holiday experience with accommodation options ranging from eco-friendly modern cabins with ensuites to tent sites. Facilities include a well-equipped playground, swimming pool, conference facilities and restaurant.

Kennedy Park Top 10 Resort

The popular holiday park is particularly proud of its growing relationship with a New Caledonian mining company, which pays for a group of employees’ children to holiday at the park each year.

Innovation around environmental sustainability helped YHA Wellington City take out the 2010 Backpacker Award. The downtown hostel has over 250 sustainability features ranging from a heat transfer system which reduces the energy required to heat the hostel’s water, to ‘switch off’ stickers on all light switches.

YHA Wellington City

YHA also educates guests on how they can be sustainable as they travel and when they return home.

Fiona and Nigel Humphries, owners of Anchorage Motel in Te Anau, bought an 8-unit lease ten years ago and have been on a continual journey of reinvestment ever since. The profitable business, winner of the Motel Award, is now a 16-unit freehold complex, rated Qualmark Enviro-Gold in recognition of its commitment to sustainable business practices.

Anchorage Motel

A new initiative is retro bikes, encouraging guests to “slow right down and enjoy Te Anau”. The bikes are available to guests in return for a donation to the Pomona Island Charitable Trust.