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Swissôtel Nankai thrives on Japan tourism boom

Swissôtel Nankai thrives on Japan tourism boom

Tokyo (SCCIJ) – Swissôtel Nankai Osaka, the only Japanese member of the high-end Swissôtel Hotels and Resorts chain from Switzerland with over 30 properties around the world and now a part of AccorHotels, has steadily improved its offers and services in response to the Japan tourism boom. Most recently, the design of its “Swiss Select” rooms has been upgraded. Also, in all rooms there is a smartphone with free citywide internet for the guests. SCCIJ talked to Mr. Christian Schaufelbühl, General Manager of Swissôtel Nankai Osaka since 2008, about the changed business environment for hospitality managers, the relevance of booking portals and the challenge of new competitors such as AirBnB.

The number of tourists in Japan has dramatically increased over the last couple of years. How did you experience this boom at Swissôtel Nankai Osaka?

True, throughout the last few years the tourist flow did constantly increase. Yet, like the tourists distinguish themselves by origin and purpose of travel, so does their booking behavior. Less expensive lodging, the 2- and 3-star hotels are in high demand, whereas the 4- and 5-star hotels feel a slight decrease of overseas room bookings.

Cost-conscious visitors rather book less expensive hotels in order to spend more on luxury articles which are often not available in their own country. Another reason to keep in mind are the exchange rates of US dollar controlled countries. As you can see, the reasons are versatile and so are our strategies.

How has the number and composition of your guests changed as a result of the lowered visa requirements for a number of Asian countries?

Asian tourists definitely characterize the higher revenue. The strongest market is Korea which increased by almost 43% compared to last year. Overall 3.4 million Koreans visited Japan in the first half of 2017. Runner-up is mainland China with an increase of 7% respectively, for a total of 3.3 million during the same time frame. Together with Hong Kong and Taiwan and China, the number is an astonishing 6.7 million. Asians characterize our guest structure and will do so in the long haul. According to JNTO, this year’s visitor flow will top last year’s high of 24 million by millions.

Swissôtel Nankai thrives on Japan tourism boom

The new "Swiss Select" rooms of Swissôtel Nankai Osaka

What about the number of tourists from Switzerland in Japan?

Swiss visitor numbers are stable but stay in rather low numbers. The first five months of 2017 there has been a flow of 20’000 guests from Switzerland to Japan which is a 10% increase versus last year. As Swiss like to travel mainly individually, they tend to book AirBnB rooms or low-cost hotels, again because of conscious spending, expensive flights and high currency exchange rates.

There are reports in the Japanese press that there are not enough hotel rooms for foreign visitors, whether tourists or business people. What is your view?

Hospitality always undergoes a cycle of peak and low seasons. Having said that, yes, during peak season the big cities are facing problems with insufficient rooms. Recently though, the situation defused because of a lower demand from Chinese visitors. This leaves business people book their appreciated higher status rooms. I would also like to mention that in response to the upcoming 2020 Olympic demand, hotel developments literally popped up throughout the whole Japan.

What about the relevance of online booking portal sites such as Expedia and Booking.com? How relevant are these portals to survive as an upscale hotel in Japan?

Online booking portals offer a platform for hotels to be seen and booked from around the world, in a language you understand. It is definitely a marketing tool, yet one that needs to be understood and maintained. These portals offer especially for smaller hotels an amazing opportunity to be recognized. Compare it with an international advertisement; you have to pay for an ad in a newspaper, every single time it is printed.

With regard to Swissôtel Nankai Osaka, it is important to be present through any available channel. Especially for a hotel in a foreign country with a different writing system it can easily get complicated to book a room. That is where these booking portals come in very handy for visitors all over the world.

Swissôtel Nankai thrives on Japan tourism boom

New wedding chapel at Swissôtel Nankai Osaka

The Japanese government has now re-regulated the Minshuku law. Now private operators can offer rooms. How does this affect your business?

When hotel rooms are facing a limit during peak season, AirBnB is definitely a great alternative. As a hotelier, I am grateful that the Japanese government issued clear rules with the Minshuku/AirBnB law, as such that private apartments may only be offered for six months of a year. This gives us hoteliers a bit more space to act. I see AirBnB as a healthy competitor that stimulates the hospitality offer and it as well challenges the hotels quality, creativity and uniqueness.

Are portals such as AirBnB really a challenge for premium hotels like Swissôtel Nankai Osaka?

This depends on the guests. AirBnB fills an important and increasing demand for families, small groups and backpackers. Then again… there rises a difference in service and quality. While you have personnel in the hotel who takes care of you in any matters (especially emergencies) you’ll be on your own when booking an AirBnB. This is, in my opinion and especially in Japan, my number one concern. Visitors most often don’t speak Japanese, so how are they taken care of in a case of emergency?

Swissôtel Nankai thrives on Japan tourism boom

Mr. Christian Schaufelbühl, General Manager of Swissôtel Nankai Osaka since 2008

What kind of new offerings and services have you introduced at Swissôtel Nankai in order to answer these new challenges of your business environment?

Swissôtel Nankai Osaka goes every day one step further. Our aim is to continuously renew our product. We just completed the renovation of our “Swiss Select” rooms transforming them into a market orientated, stunning design. Last week we reopened our beautiful and welcoming wedding chapel after a rigorous renovation.

Furthermore, we offer what most of our guests highly appreciate: free hyper speed internet all over the entire hotel, big-screen TV, Swiss touches with Nespresso machines and “Kägi Frets” (Swiss chocolate wafers from St. Gallen).

Starting on September 1st until end of this year, we’re happy to offer a special re-opening offer. Next to a brand-new room you’re granted access to our Swiss Executive Club Lounge from noon on the 33rd floor with an amazing bird view over Ōsaka accompanied by finger food and various drinks during the evening cocktail time.

Some AirBnB hosts give portable internet hubs that allow internet connection on the go. Has Swissôtel Nankai Osaka an answer to this handy service?

Actually, we have gone one step further. Since August, every room is equipped with a smartphone that allows the guests to use free internet citywide and communicate with the hotel throughout the city. It is important to us that our guests feel safe and taken care of.

This mobile offers exactly that. One touch and they are connected with the hotel, with a Japanese/English speaking employee who can help, guide or support them in any situation.

Visitors from five Asian countries may even use this mobile to keep in touch with their family abroad, free of charge – which means, our guests save even on their roaming fees while staying at Swissôtel. (Some restrictions apply to this offer.)



Text: Martin Fritz for SCCIJ; Photos: Swissôtel Nankai Osaka

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