Luxury Hotelier - November 2007 - (Page 23)

Personalities | 23 strengthen Leading from the bottom up would prove to boost its legitimacy and allow him to focus on building the company’s reputation further. Claudia Kozma Kaplan, vice president of corporate communications at Leading, recalls that major change: “It was pivotal when Paul revolutionized the inspection process,” she says. “It was the turning point that ensured the value of the brand.” the brand’s vision of service and product excellence paid off in the end. “What was a millstone has turned out to be a gemstone,” he says. This year, more than 800 properties applied for membership, Ebeling says, and an average of 35 are granted it annually. “All brands have started within Leading,” he says, ticking off names of various properties that worked with Leading as their brand was growing. Welf Ebeling ‘Cradle of growth’ Welf Ebeling calls the Leading organization, “an 80-year-old lady rejuvenating itself daily.” Mr. Ebeling, Leading’s executive vice president and chief operating officer, first joined the board of directors in 1991, an appointment he would hold until 2000 when he assumed his current position. Mr. Ebeling has worked with Mr. McManus for 16 years and says the changes wrought at the organization over the past seven years have succeeded because of leadership’s commitment to staying current. “We re-invent continuously because we listen to the market and the customer,” he says. To best react to the changing market, Mr. McManus and the rest of the executive team decided the best approach would be to build the company’s infrastructure. “We needed to broaden our vision to become a cradle for growth in the luxury industry,” Mr. McManus says. Simply put, Leading needed capital to grow. Mr. McManus searched for ways to reconcile working with mature properties in the company’s membership while attracting new ones that could uphold the Leading brand’s strict standards. “It’s about finding the balance between old and young,” he says. “People want to see the iconic properties, plus new ones too.” Finding that balance proved to be a challenge, he says. But the company’s commitment to building programs to attract members that would maintain Shifting consumer tides “You need to be aware of what’s trendy and what’s sustainable,” Mr. McManus says. With judgment culled from years examining the details and business decisions that drive success in the segment, he is not shy in his convictions of what luxury is—or what it should be. First, this alum of global luxury brands, not to mention New York’s St. Regis and Claudia Kozma Kaplan Battle of the brands rand piracy, and the advent of what he calls “faux luxury,” are particular concerns of Paul McManus. The president and chief executive officer of The Leading Hotels of the World penned a New York Times commentary last winter on cyber piracy. These online thieves, he wrote, threaten established luxury properties by hacking into their Web sites to dupe unsuspecting travelers into booking at inferior properties—and, more importantly, sharing personal and financial information that can be exploited. This commitment to brand excellence is near to his heart, since Leading trades on its brand fidelity every day. With historic and up-and-coming luxury brands as members, Mr. McManus has more than just a personal interest in preserving the luxury name worldwide. The Leading brand itself is an umbrella for well-known names such as the Ritz Paris, Hotel Metropole Monte Carlo and London’s Dorchester, but it also counts as members newer properties from the likes of The Rocco Forte Collection, Karma and Banyan Tree Hotels & Resorts. He fears some in the luxury segment are “in danger of spreading themselves too thin,” he says, citing companies that sacrifice solid employee training in order to grow fast. “Lack of delivery can hurt the segment,” Mr. McManus says. “Look at Dubai. It’s expanding so much.” Welf Ebeling, Leading’s executive vice president and chief operating officer, agrees. “You can build marble palaces, but do you have the right people to manage the services?” he asks. Mr. Ebeling predicts hotspots like the United Arab Emirates are in danger of growing so fast that service can’t keep up, thus endangering the luxury aspect. “I know some hotels, like ones I call the ‘faded roses’ in Italy, where the carpet may have a tear, but the staff has been there for years,” Ebeling says. “That, to me, is true luxury. It’s something that wasn’t instantly created.” B www.LuxuryHotelier.com | November 2007 | Luxury Hotelier http://www.LuxuryHotelier.com

Table of Contents Feed for the Digital Edition of Luxury Hotelier - November 2007

Luxury Hotelier - November 2007 Contents Editor's Letter Publisher's Letter Inform: News and Notes Network: People Personalities: Traditional Innovator Insight: Smith Travel Research / The Bench Insight: Ypartnership Properties: A Front-Row Seat to Moscow Properties: Northern Star Inspire: Outdoor Showers Deliver: Wellness and Fitness Protocols: The Real Deal Insight: Cornell University Innovate: In-Room Technology Development: Global Project Pipeline Indulge: Coffee and Tea Insight: Ecole hôtelière de Lausanne Connect: Regional Marketing Update: IH/M&RS Luxury Product Collection Dossier: Davide Bertilaccio of The Rocco Forte Collection’s Le Richemond

Luxury Hotelier - November 2007

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