The summer of 2004 will see the initial launch in Ireland of Chip & PIN (Personal Identification Number) for use with laser cards and credit cards. The launch will take place in Naas-Newbridge and will gradually roll out across the country. This development, which has been designed to help combat card fraud, will have an impact on every business that accepts cards.

In 2002 there were more than 115 million card transactions in Ireland accounting for a total spend of €9 billion. Card payments provide a safe, convenient and efficient way of making and receiving payments. However, cards have become the target of fraudsters and there has been much media attention about the practice of skimming – where the details held electronically on the magnetic stripe on a card are covertly copied and those details are then transmitted to anywhere in the world, where counterfeit cards are produced. This brings risks for the reputation of a business where skimming activity has been taking place. To combat fraud, Chip & PIN technology is being introduced.

Currently, the cards in circulation hold the electronic details on the magnetic strip at the back of the card. However, the new cards will have a chip embedded in the front which will contain all of the relevant electronic details, as well as enhanced security features. Instead of using a signature as the means of confirming the identity of the cardholder, a four-digit PIN (Personal Identification Number) will now be used. This will require giving customers access to a PIN Pad which they can use securely, and where they can maintain the privacy of their PIN.

These cards will require new card reading devices and these will be deployed by the banks shortly. Businesses with their own point of sale terminals, as part of an integrated system, will need to make changes to their systems – both hardware and software. Those businesses with these systems should contact their acquiring bank immediately. Where the terminal is bankowned, the process will be simpler. However, staff training will be a critical aspect of the introduction. Help and guidance in this area is available. Further information on this initiative can be sourced from Chip & PIN Ireland, 12 – 13 Cumberland Street, Dun Laoghaire. web: www.chipandpin.ie

An extensive cultural programme to celebrate the enlargement of the EU will provide a unique international opportunity to promote and showcase Ireland abroad. The Minister for Arts, Sport and Tourism Mr John O’Donoghue T.D., recently announced details of the cultural programme planned for Ireland’s Presidency of the Council of the European Union. The programme, which involves over 250 Irish and hundreds of European artists presenting work across the expanded EU, is one of the central features of the Irish Presidency. It comprises a range of events touring to and from the 10 new member states.

A high point of the planned activities is when the new member states will be officially 'welcomed' into the EU by an Irish city or town in a special 'Day of Welcomes' on Saturday 1st May 2004. To commence celebrations a fireworks extravaganza in Dublin will be held on Friday 30th April. The ‘Day of Welcomes’ will be at the heart of a national weekend of celebration that will involve each of the ten towns and cities hosting distinct and engaging 'European Fairs'. Dublin will see St. Stephen's Green transformed into a colourful bazaar with marquees, stands and stages making up 'The European Fair' on Saturday 1st May. It is expected that over 100,000 visitors will pass through the fair to enjoy the experience of unique and interesting produce from the new EU and participate in the fun cultural activity.

A major concert of Irish and international stars on O'Connell Street will be also be hosted during the weekend. This event, produced by RTE and the BBC will be broadcast live throughout Europe.

Minister for Arts, Sport and Tourism, John O’Donoghue, TD pictured with puppets from the Bui Bolg St reet Theatre group at the launch of the Irish EU Presidency Cultural Programme in the National Gallery.

Students from St. Mary’s On The Hill National School, Knocknaheeny, Cork (pictured) recently completed the ‘Cert for Success’ Programme at the Fáilte Ireland training centre in Cork. This after-school educational programme combines a holistic and inclusive approach to education. One of the modules which focuses on culinary skills, hygiene, good eating habits and kitchen safety was over a period of five weeks. To celebrate the successful completion of the programme the Irish Hotels Federation was delighted to sponsor the children and their parents with a trip to ‘Foto On Ice’ where they enjoyed ice-skating, a visit to Santa and a children’s lunch party.

Irish hotels continue to win a host of prestigious awards recognising their achievements in all areas from customer service to excellence in catering. Recent award wins include: Conrad Hotels which has been awarded Company with the Best Training Programme by the leading French publication HTR (Hotel, Tourisme & Restauration). The Conrad Orientation Programme, a three-day course aimed at providing a comprehensive induction for all new employees was chosen as the winner by an international jury.

The Radisson SAS Hotel Galway which has won two awards recently; the Galway Chamber of Commerce & Industry Environment Award rewarding the hotel for its commitment to enhancing and protecting the environment in which it operates, and the Nice Touch 2003 Spa Award for the hotel’s new Spirit One Spa.

Finally, the Seaview House Hotel in Bantry, Co. Cork has recently been awarded with a place in the Top 200 Hotels in Great Britain & Ireland.

Pictured is President Mary McAleese with Michael de Haast, General Manager, Radisson SAS Hotel, Galway; John Tierney, Galway City Council Manager and Dr Chris Coughlan, President, Galway Chamber of Commerce & Industry.

The Holiday Inn Killarney recently took part in raising money for the Operation Rudolph Santa Cycle initiative. The cycle, which took place over four days in December, was completed by the hotel’s General Manager, David Hennessey and covered some 180 miles from Killarney to Galway City.

The initiative raised over €2,100 for the cycle. The charities benefiting from the cycle are the Billy Riordan Trust, Dingle, Co. Kerry, Cope Meals on Wheels, Galway City, and the Chernobyl Children’s Orphanage Project.

Pictured is David Hennessey during the Operation Rudolf Santa Cycle initiative.

Aidan Ryan, a graduate of the School of Hotel and Catering in Galway-Mayo Institute of Technology, has won then IHCI Barton & Guestier Hospitality Graduate manager of the year.

Now an assistant food and beverages manager in Jury's Ballsbridge Hotel in Dublin, Aidan graduated from GMIT in 2003 with the highest-ever final examinations results. He spent time in the Ballymascanlon Hotel in Dundalk and the Eurotel Riveria in Switzerland before returning to GMIT to complete a B.A. in Hotel and Catering Management. The 'manager of the year' title is not the only accolade bestowed on Aidan in recent months. As part of the School of Hotel and Catering's new Patron Programme, he also received a student of the year award.

"We've set up this new Patron Programme to strengthen links with key players in the hospitality industry," explains GMIT's Head of Hotel and Catering, Dr Stuart Jauncey. "The patrons have been appointed to advise the school on its strategy and on its curriculum development. President of the Irish Hotels Federation, Jim Murphy, and Sales Director for Interstate Hotels and Resorts in the U.S., Seán Worker, accepted these patron posts at our graduation ceremony last term.”

Aidan Ryan (centre) receiving his award from Peter

Wilson (right), President, IHCI, with Shane Clarke, General Manager of Gilbey's Wines

Knockranny House Hotel, Westport has joined the Manor House Hotels Group, with membership taking effect from January 2004. Although well established in the domestic market, Knockranny House believes that membership of this collection of independently owned properties will assist the hotel gain exposure in the UK and US markets in particular.

Commenting on the move, proprietor of Knockranny House Hotel, Adrian Noonan, said, “We feel that our acceptance into such a select brand will assist us in further promoting Knockranny House and Westport as a destination for the four and five star market.”

The Brandon House Hotel in New Ross Co. Wexford has opened 20 spacious new guest rooms bringing the total number of rooms to 81. The hotel also recently completed the refurbishment of the Kennedy Conference and Banqueting Suite, purpose built carvery and children’s Tiger Club. The property has made a commitment to the Best Practice Programme run in conjunction with Fáilte Ireland.

The Westin Hotel Dublin recently treated a number of its valued work experience students from Roslyn Park College to a complimentary dinner and overnight stay at the city centre hotel. The initiative was arranged as a gesture of thanks to the students for their hard work and contribution. Since March 2003 the six students, who are studying a two-year course in Accommodation Services, have visited the Westin each Tuesday with their supervisor to service 14 hotel bedrooms as part of their practical work experience. Roslyn Park College offers a range of certified FETAC II and ECDL courses tailored to meet the needs of those who may find difficulties accessing further education, training and employment due to illness, disability or accident. The students currently completing their work experience at the Westin have special needs ranging from hearing impairments to other physical disabilities. The Westin intends to continue working with the college in 2004.

Pictured are the students from Roslyn Park College enjoying their visit to the Exchange Restaurant, Westin Hotel.

A commercial property outlook report published by CB Richard Ellis Gunne has suggested that the decision to extend the expiry date of Hotel Capital Allowances tax relief has played a major role in stimulating further development in Ireland’s hotel sector.

A number of top hotel groups have recently announced significant expansion plans for Ireland, which will result in a further 1,600 hotel bedrooms being added to the national room stock. Amongst those expanding is the Clarion Group, with 644 new bedrooms coming on stream in hotels in Dublin, Cork and Sligo.

The Radisson SAS Group is also expected to complete 365 bedrooms in hotels in Sligo, Athlone and Belfast. A new Jury’s Inn in Dublin city centre, a Holiday Inn Crowne Plaza near Dublin Airport and a McEniff’s hotel in Dublin 4 will also serve to increase bedroom capacity.

Additionally Ramada International Hotels and Resorts, a subsidiary of the Marriott Corporation, have recently arrived in Ireland. The Chairman and Managing Director of Crawford Investments, the Master Franchisee for Ramada International in Ireland is Michael Knox-Johnston, a seasoned hotelier of some 35 years and vice president of the IHF, who intends to grow the group in Ireland through franchise and management of new and existing properties with a minimum of 80 bedrooms.

Nicholas Logue has been appointed General Manager of The Fitzpatrick Castle Hotel, Killiney, Co. Dublin. Mr. Logue has over fifteen years experience in the hotel sector, most recently as Executive General Manager with Lynch Hotels Group. Prior to this he spent nine years in the U.K, most recently as General Manager of the four star deluxe Le Meridien Selsdon Park Hotel and Golf Course, Surrey on the outskirts of London. Mr Logue holds a Degree from The Shannon International College of Hotel Management.

Eric Rothschild was recently appointed Chief Executive of Tower Hotel Group. Eric commenced working with the group 12 years ago when he was responsible for the opening of Temple Bar Hotel, Dublin. After a successful term as General Manager of that hotel, he moved into the role of Group General Manager and then progressed to Operations Director, a position he held for the past two years.

During this time the Group has grown from a two hotel operation into a group of six hotels with a 7th hotel in Castleknock due to open in December 2004. Eric currently sits on the Board of Dublin Tourism and is a past Vice President of the Irish Hotels Federation.

Jurys Doyle Hotel Group has appointed Patrick O’Connell, General Manager of the Jurys Clifton Ford Hotel, London. Mr O’Connell recently achieved top place on the Jurys Doyle General Management Development Programme, an internal programme to identify high performers from amongst the ranks of senior management. Mr O’Connell has spent a number of years working in a variety of management roles at hotels including the Shelbourne, the Burlington and the Westbury hotels in Dublin and the Waldorf Hotel in London.

Judy A. Siguaw, professor of Marketing in the School of Hotel Administration at Cornell University, will be taking this message to Killarney when she addresses the annual conference of the Irish Hotels Federation shortly. “I’ve done some research on Irish hotels in advance of my visit”, she points out. “I’ve been looking at websites and I have to say they don’t show up as they should”. According to Dr. Siguaw they fall down on the two critical criteria - appearance and content. “They are very basic and weak on contact information – they do little to entice the potential consumer to believe this is the kind of hotel they want to stay in”, she adds.

Her advice must be seen in the context of the evolution that is taking place in electronic distribution. Anybody who has ever surfed the internet for information or to make a purchase or booking will appreciate the power that this medium offers as a business tool. Just consider the resounding success that Ryanair has become. Now Europe’s fastest growing and most profitable airline, its sales success has been built around its ability to take advantage of the global market place that the internet has become, and fully exploit the cost-efficient channel to consumers that it offers.

Like it or not, the hotel industry must face up to the fact that rooms and services are going to be increasingly sold over the internet. By 2005, suggests Dr Siguaw, “an estimated one in five hotel bookings will be made online, up from one in 12 in 2002”. Based on research she did with another American academic, Dr Bill Carroll, she believes that online intermediaries, companies like Expedia, Hotels.com and so on, will capture about half of these bookings, while hotel chains’ websites will control the other half.

Dr Siguaw is not against electronic distribution of the hotel products. “If you’re a hotel owner and people come onto your website booking rooms that’s good. It’s a cost efficient way for you to get new business, and is more responsive and user friendly for the customer than traditional call centers and reservation desks”, she explains. “The internet has expanded hoteliers’ reach in a way they could never have even dreamt of years ago; they can now reach a global marketplace that would have been prohibitively expensive to get to through conventional marketing means even a decade ago”, she points out.

“The problem as I see it is that small, independent hotel owners – and that is predominately the Irish industry – are going to be forced to go through the online intermediaries and they take a huge fee”, she cautions. “The room price you agree with them, they mark up on their website. They are currently working on a mark up of 30pc to 40pc which for small hotels already working on tight margins, is a big hit”.

Dr Siguaw says the hotel industry only has itself to blame for the rising power of the intermediaries. Traditionally, intermediaries made their money selling airline seats but have been moving away from this sector because their commissions have been squeezed. In 1999, US domestic airline revenue was 53pc of travel agency revenue. By 2001, that figure had dropped to just 15pc. Instead, they have been focusing more and more on the hotel market where they have been able to quickly establish a presence thanks to the industry’s shortsightedness.

Hotels, she explains, panicked after September 11. “Faced with declining demand they were only too glad to advertise their hotels on intermediary web sites. They were willing to sacrifice price for volumes so as to limit the impact on occupancy levels”, she adds. “But what happened is they drove their customers to the intermediaries. And when you put your hotel on an intermediary website you’ve made it into a commodity. And when you’ve done that, you’ve damaged the image of the product”, she warns.

Her advice to the Irish industry is try and avoid this at all cost. She accepts that most Irish hotels are too small to develop and maintain independent websites of the standard required to compete against the big players. Marriott invested $1m in website improvements alone, she notes. Her advice for smaller, independent hotels is “to group together in larger co-operatives” and this way to share the investment in a common web site. The key, she adds, is to make sure that the site is properly designed so that when prospective consumers punch in certain key words – such as anything to do with Ireland – the site and hotels pop up.

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