The salary regime of the Romanian market is reflected in a much higher profitability rate of hotels in Romania compared with hotels operating in mature markets, says Hans Rudolf Rutti, general manager of five-star Intercontinental hotel of Bucharest.
Hans Rudolf Rutti, a 47-year-old Swiss, has been running Intercontinental hotel of Bucharest since the end of last year. “The level of salaries is still much below the one of other Central European countries. We are ahead of Bulgaria from this point of view, but we still have one of the lowest levels in Europe,” says Hans Rudolf Rutti.
“One can afford to operate with more employees in these conditions. But the high number of employees must make up for the lack of expertise. In the end, instead of having a skilled employee, you have two or three less experienced employees,” considers Intercontinental manager.
The Intercontinental hotel has been in the red for the last five years, and under renovation over the last two years. Its representatives estimate it will break even this year. The hotel posted turnover worth 9 million euros last year and is managed by Compania Hoteliera Intercontinental Romania (Intercontinental Romania Hotel Company). The same company had in its portfolio the four-star Lido hotel until the end of last year. This is the last year of the franchise contract Intercontinental signed with Intercontinental International hotel firm, and the owners of the unit are in talks both with this chain, as well as with other major international hotel companies.
Rutti has brought in Romania a manager for the food & beverage segment.
The new general manager of the hotel considers it is much easier both for customers and for the management of the hotel to work with people of the same nationality.
He had filled the position of general manager of Radisson SAS Royal hotel of Brussels before coming to Romania.
“Customers coming to a international chain hotel in Romania are like all customers going to any unit in the world,” says Rutti. This is why, he explains, there”s no difference between hotels of Romania and foreign ones.
“Yet, these customers may have a different perception, so that their expectations are likely to differ when coming to a market like ours from the ones they have in London or Paris,” added the representative of Intercontinental.
According to him, one of the advantages Intercontinental has over hotels on other markets is the fact that it has only Romanian employees.
On the other hand, he says, the fact that Romanian employees do not have access and the possibility of going abroad to gain experience is certainly a drawback.
Lately, a large part of Romanian employers in the hotel industry have been complaining about the lack of skilled personnel.
Intercontinental
* Has been in the red for the last five years and under renovation for the last two years
* Its representatives estimate the hotel will break even this year
* Posted turnover worth 9m euros last year
* Is managed by Compania Hoteliera Intercontinental Romania
* Is in talks with Intercontinental International and other major international hotel firms
andreea.groenendijk@zf.ro