TOKYO —

These are tough times for the hotel industry in Japan. Many are having to rethink their strategies to offer more value amid the economic downturn.

One of those is the ANA InterContinental Tokyo in Akasaka. The hotel has 843 rooms, including 43 suites, over 20 meeting venues for over 1,000 guests, 11 restaurants and bars and the newly built Club InterContinental Lounge, which at 600 square meters, is the largest of its kind in Japan. 

Overseeing the hotel’s operations is Fergus Stewart, who has been general manager for just over a year. Born in Glasgow, he studied hotel management in Leeds. During his career in the hotel industry, Stewart has worked in China, Hong Kong, Singapore, Taiwan, London, Spain, Egypt, Thailand and now Japan.

Japan Today editor Chris Betros visits Stewart to hear more about the hotel industry.

What was your very first hotel job?

While I was studying hotel management, I worked in a hotel in Harrogate but my first position after graduating was at the Crest Hotel in London. My first luxury hotel was the Grosvenor House in London, where I was the assistant food and beverage manager. The Grosvenor House was a very prominent London Hotel in those days.

What appeals to you about the hotel industry?

People in the hotel industry are essentially the same. We all joined the industry because we like working with people and enjoy providing memorable experiences for our guests. You get to meet with so many people and often work in beautiful environments. Then there are the career opportunities. I would have no hesitation in recommending a hotel career to any aspiring student. The opportunity to travel, work in different cultures and meet very interesting people is neverending.

What are the ANA InterContinental’s strengths?

We have two strengths. First, we’ve got the ANA brand which is very strong domestically. Then we have InterContinental, which is a very large company with over 4,000 hotels worldwide. InterContinental brings an international flavor, worldwide reservations systems and priority club membership which numbers over 43 million. That said, we never forget that essentially we are a Japanese hotel and it is vital that our services are welcomed and appreciated by the local clientele. We work hard to try and achieve that.

How different are the ANA InterContinental hotels?

We have brand standards in terms of image but there is a lot of individuality about all our hotels. Each hotel is an individual destination. There is nothing worse than traveling around the world, staying in a hotel and not knowing which country or city that you are in. We want guests to know they are in Tokyo.

How do you market the hotel?

We have global campaigns in newspapers and television. Then we create local advertising ourselves. We communicate with guests through email, banner advertising online or through priority club members. These are customers who have already stayed with us and told us that they enjoyed our service and facilities. 

Who are your typical guests?

About 60% of our guests would be foreign. On weekends there are more Japanese guests . Given that we have such a varied offer in terms of restaurants, we find that we cater to a varied dining audience.

Do you get many online reservations?

We’re seeing an increase in online bookings, but Japan is still a little slower than other countries in that respect. A lot of people still prefer telephone reservations or the human touch. I recently however got a handwritten letter from an elderly lady in the UK, who said that she and her husband would like to stay with us when they visit Japan. I replied back in writing. I’ve got their arrival date in my diary and we will make sure they have a wonderful time. It was rather nice to get a letter of that nature.

How are you coping with the economic downturn?

Although there is a definite downturn in both domestic and international business, we are fortunate in our positioning. We have a great location, and because of our size, we have various categories of rooms for guests with varied budgets. We are still providing a 5-star experience, but we also need to be more competitive and creative as well.

We need to offer more for the same price rather than cutting rates. Being flexible with some of our larger corporate accounts will see us benefit in the long term because we’re building relationships with corporate accounts for the next 10 years not for the next 10 weeks. Guests are not necessarily looking for lower rates but they are most certainly looking for value for money. It is vital that during these difficult times, our service is exemplary.

What are some innovations you are trying?

The Pet Pamper Experience (which allows guests to stay with their dogs in pet-friendly rooms). This is a good example of how the size of our hotel helps us. By having so many floors, it is easier for us to have the Pet Pamper Experience than a hotel that only has four or five floors, where that pet might upset other guests.

What about the restaurant business?

We have seen a decline in dinner business and corporate entertaining. However, lunch business is still very strong. Again, though, we have to offer better value, and be creative so that people want to come back to our restaurants.

How is the wedding business?

We built a new chapel last year and while that was under construction, the business dipped a little bit. However, we have since recovered. Now that we are able to show guests the actual area that they will be married in, the feedback has been very promising. Even in a recession, love prevails!

Is the new executive lounge popular?

Extremely, I’m delighted with it. We had so many meetings with the designers, architects and builders and there were certainly times that I became concerned prior to opening but it has turned out fantastically well. It is busy during the week but especially at weekends. We have found that the Japanese clientele really enjoy the furnishings and the atmosphere. Given that on the Club floor, you receive complimentary breakfast, free Internet, canapés and champagne cocktails, it really does represent great value for money for such a luxurious facility.

What do you think of the state of the hotel industry in Tokyo in general?

A lot of international hotel companies were quite late in coming to Tokyo. The large brand names have only really entered the market in the last 5-6 years. The perception, for people who don’t know Tokyo well, is that we don’t have enough hotel rooms, but we do.

However, I don’t think enough people overseas see Japan or Tokyo as a tourist destination. I had been here only once before, but I would never have thought of coming here for a vacation. Now that I live and work here, I am telling everyone I know that they must come to Japan for a holiday. There really is so much to see and do and despite its reputation as being an extremely expensive City I do not think it is any more expensive than say London or Paris.

How do you go about attracting conferences, sporting teams, etc?

We have a global sales and marketing team that know of upcoming events. It’s good for us as well, to sometimes have well-known sports teams or movie stars staying with us. It’s nice for our guests to be in the same hotel as some sports or movie stars, though we must respect their privacy at all times.

Fortunately, we do get a reasonable amount of MICE (Meetings, Incentives, Conferences and Exhibitions) business. Companies use our other hotels worldwide, so they know what we can deliver globally. Our large ballroom can offer a cocktail reception for approximately 2,000. We can provide a banquet for over 850 guests. The ballroom is large and pillarless and you can actually drive cars, bring in elephants or whatever you want, because we have access from street level, which a lot of other hotels do not have. We have over 20 function rooms of varying sizes.

Overall, Japan doesn’t get as much MICE business as it should, perhaps because of its geographical location and it is perceived as being expensive. That said, given the high level of service that Japan is famous for, more and more companies are considering Japan for their events. Security is also high on any booker’s agenda and Japan certainly gains top marks there. 

Is the hotel labor market in Japan very mobile?

It tends to be but we have a low staff turnover. Because we have a large hotel, we can provide many career opportunities for our employees. We also have 41 other hotels in Japan that they can apply to work in. As long as we are treating our employees fairly, providing training and giving them good career opportunities, there is no need for our staff to leave. 

Do you personally get involved in the hiring process?

I do. No employee will be hired unless I or the Hotel Manager sees them. This year, we hired some new graduates. We made a commitment to them a year ago and we gave them some tasks during that year, such as improving their English level, learning more about our company’s culture and history. We saw them again at Christmas and we went ahead and employed every one of them. Often in a hotel environment, it is the most junior employee that actually serves the guest. It is vital therefore that you get that hiring and training completely right. If you don’t, you will fail.

What is a typical day for you?

I arrive just before 8 a.m. First, I do the rounds and check the restaurants. Recently, I find myself in my office more than I would like. I much prefer being out and about in the hotel. The GM’s role is one where he needs to be visible to guests and employees. It would be impossible to describe a typical day as every one is different. Just when you think everything is running perfectly, something inevitably happens. Hotels often seem like ducks on water—quite smooth on the front but everyone paddling furiously behind…that’s what makes it so exciting.

What is your management style?

You need to reach a level where you are comfortable with your staff and then let them get on with the job. When trust is achieved, everything else follows.

Do you check out your competition?

Yes. The camaraderie among GMs of foreign hotels in Tokyo is very strong. We’re all kindred spirits; a lot of us have traveled to different countries, some of us have worked for the same companies. I also actively encourage our staff to check out the competition, even when they travel overseas. I want to see more of our Japanese employees get international exposure within our organization.

Do you work on weekends?

Well, I live close by and find it easy to come in on a Saturday morning for a couple of hours or a Sunday afternoon. But it is equally important to get some time away from the hotel. I play golf most Sunday mornings. I’ve been on the course at 6 in the morning, sometimes even when it is still dark, waiting for the sun to come up.

I have a wife and two lovely daughters, so sometimes it’s a struggle to fit work, family and a little private time in to the same week but it is essential to get a balance.

For more information, visit www.anaintercontinental-tokyo.jp

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3 Comments

• 

  GW at 11:29 AM JST - 17th May

  I read through all that to find out about the OASIS bit, guess I will have to keep looking

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  seesaw at 09:09 PM JST - 17th May

  Wow! impressive! New broom sweeps the best..that's what people still say I guess...:)

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  realist at 02:05 PM JST - 19th May

  If they want to attract more visitors, then they should quit the pratice of overcharging for hotel rooms, which are often well below the standards of other Asian capitals.

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