New Deal Europe weekly update on post Covid-19 travel, Week 14
News from the destinations: Bosnia and Herzegovina
This week we focus on Bosnia and Herzegovina and talk with Berina Bajrović, Executive Director of Hotel Europe Group, the largest hotel chain in the country. She tells us about the challenges the country has faced, and what strategies the head office have introduced in order to meet these challenges across the group to maximise opportunities in their different business segments.
NDE: Can you tell us a bit about your hotels, category, where they are located, what business normally stays there etc.?
BB: Europe Group is the biggest and most prestigious hotel chain in Bosnia and Herzegovina. It operates 5 hotels in the centre of the capital city, Sarajevo. All hotels: Hotel Europe 5*, Hotel Holiday 4*, Hotel Art 4*, Hotel Astra 3* and Hotel Astra Garni 3* are located in the city centre. Our competitive advantages are location, tradition, and professional hospitality service. Hotel Europe and Hotel Holiday are synonyms for the City of Sarajevo.
NDE: You have a full range of categories in the city, including some famous hotels, so you can give a good overview of the situation in Sarajevo.
BB: Yes. Hotel Europe was built 1882, so has tradition over 130 years. Built in at the crossroads of the Oriental and modern style, it is imbued with the best attributes of both worlds, and is designed according to the highest standards of hospitality. Positioned in the heart of the Sarajevo city, just a few steps away from the tourist Old Town core, this Austro-Hungarian building with its external splendour alone will have you captivated. Our all-inclusive offer at hotel Europe is made of 160 luxurious rooms, 14 suites, 2 of which are presidential suites, 5 fully equipped conference halls, the state of the art spa & wellness facilities including fitness centre, indoor swimming pool, Turkish bath, tanning beds, saunas and massage.
We also have Sarajevos’s iconic Holiday Inn Hotel which was built for the Olympics games in Sarajevo. Designed by the celebrated Bosnian architect Ivan Straus and built in 1984, it remains Sarajevo’s most aesthetically interesting building. It has ten floors with 380 graciously decorated accommodation units, comprising 364 rooms and 16 suites. It has 10 conference rooms and can accommodate up to 700 people in one hall. Hotel Holiday is a perfect hotel for a bigger group of business guests, congresses and similar events.
Beside these two hotels, we have three more which are located in close vicinity to hotel Europe. Our hotels are suitable for business people, individuals, couples, families, bigger groups etc. In essence, our group of hotels can satisfy every segment and every type of guest.
NDE: I think you are in a good position to advise on how the situation is in Bosnia-Herzegovina at the moment? Can you tell us, are the borders open and how is the government controlling things?
BB: The ruthless march of COVID-19 throughout the globe is first and foremost a human tragedy, affecting the health of hundreds of thousands of people. The virus is still spreading in Bosnia and Herzegovina, and a lot of businesses are closing. Borders were closed for the most of the countries.
Bosnia and Herzegovina has not opened its borders yet to all countries and that remains the main issue at hand. However we got information that the government made a decision to open the borders for all countries with the negative test next week. Hopefully the situation will get better soon.
NDE: How is business at the moment and where is the business coming from?
BB: The summer period is usually our high season. Looking at business trends at the moment and number of guests we have, we can say that the occupancy is the same as it is during the low (winter) season. However, some improvements are noticeable lately.
At the moment our guests are mostly domestic and regional. Lately we started getting reservations and welcoming guests from UAE and Turkey. They need an invitation letter and confirmation of reservation to enter our country.
NDE: Bosnia normally benefits from a high proportion of business from the Middle East markets. Do your hotels normally see this, and how is it affected by the current situation?
BB: Our high summer season is usually full of guests from Middle East, mainly from GCC countries. They love and enjoy staying in our country. Since those are the guests who are staying for a longer period of time in our hotels, we receive high revenues from them.
Right now we have failed at attaining many of them since the process to enter the country is too complicated. Guests who manage to come, usually stay less for 10 nights or more.
NDE: In what other ways is this Summer different from other Summers?
BB: Coronavirus has led to a worldwide crisis with its effects on the hospitality industry potentially more severe than those of SARS, the financial crisis in 2008 and many other in the past. Putting the human at the center of the situation, the virus generates deep fear, confusion, and impacts us in a deeply emotional way that this generation has never felt. For hoteliers, this summer is different from other summers in every segment. Hospitality is the industry that is suffering the most immediate repercussions.
Hospitality is among the hardest hit due to fears of community spread through travel and group environments. In the past few months we faced 95% cancelation of reservations, conferences and events. This was causing huge drops in occupancy, outright hotel closures and large swaths of the hospitality workforce being furloughed. Our high season is from April until October and we are always fully booked during the summer season.
For hoteliers, this summer is different from other summers in every segment. Hospitality is the industry that is suffering the most immediate repercussions.
NDE: So given this situation what are you doing to attract business to your hotels?
BB: At the beginning of Coronavirus we tried to create more value for guests and keep the prices as they were before. We created many packages offering more services and value for the same price. We implemented flexible cancellation policies and other measures to be more responsive to guests’ needs. We realised that we needed to lower the prices in order to be competitive and we started offering special discounts for domestic guests and for the guests who stay for a longer period. We promoted our hotels on many local websites to attract more domestic guests as they can travel freely. We created special offers that are valid from beginning of pandemic until April 2021 with the good discounted rates. Our marketing department is constantly searching for agencies and companies from countries which can come to Bosnia and Herzegovina.
We are constantly doing disinfection of all rooms, restaurants and halls and promoting it so the guests can feel safe in our hotels. As the relationship between each brand and consumer starts by building trust, regaining customer confidence was the first step in overcoming the crisis. Strict sanitary and hygiene measures were applied, with new practices put in place to monitor and control the environment in which the business takes place.
NDE: It seems that you have done many things differently, including introducing new sanitary procedures. What other measures are you putting in place to guarantee people’s safety?
BB: The well-being of our team members, our Europe family, and all who visit our properties is our highest priority, and we remain diligent in our commitment to provide a safe, hospitable environment for all who enter our doors. We have been closely monitoring the guidance of the WHO, and responding based on the advice of public health authorities.
In all public hotel areas we have points with disinfectant sprays and posters with the hygiene COVID-19 rules. At our reception desks in all hotels we have plexiglass protection. Masks and goggles are dress code for all employees. Table arrangement in the restaurants is prepared according to social distance rules. Employees are serving food instead of allowing guests to serve themselves (buffet style).
We have protocols related to guests who arrive for check-in. Every guest who enters an hotel has to go through the reading of temperature with the forehead thermometer.
To protect employees and guests, we have personal protective equipment and cleaning supplies on hand, including masks, goggles, disposable gloves and disinfectant solutions. All high-touch surfaces are regularly cleaned and disinfected throughout the day, especially front-desk counters, doors and door handles, elevator buttons and any common use areas within the hotels. Also, we have windows and doors open as much as possible to encourage air flow.
NDE: When do you think business will get back to normal and what makes you think this?
BB: Seaside destinations, mountains, natural areas will probably be back to normal earlier than urban cities. We hope the travel will eventually resume and be as rewarding as ever. I would say that tourism in Bosnia will take at least a year to recover.
NDE: What do you think will be different about travel, and the various segments you target, in the future, and how will that impact you?
BB: Every segment within hospitality is affected. Mass tourism will definitely stagnate. Bigger groups of guests will be the last segment to recover. Hotel Holiday was the hotel which travel agencies and tour operators prefer because of its size. With its 10 conference halls it is the main venue in the city for business events and congresses. Congress and conference tourism will be the second most affected segment since people can now organize events using technology and different webinar platforms, Skype meetings etc. Technology will definitely take its place in the future of hospitality.
Seaside destinations, mountains, natural areas will probably be back to normal earlier than urban cities. /…/ I would say that tourism in Bosnia will take at least a year to recover.
NDE: If tour operators would like to work with you, what kind of programme could they do from your hotels?
BB: We are proud of our long lasting cooperation with thousands of travel agencies and tour operators. We both need to do our best to attract tourists and to give them the good reason to travel. This is the time when every country should use its domestic resources in order to survive. Bosnia and Herzegovina is proud of its natural resources such as mountains, hills, rivers, waterfalls. We can offer these natural attractions to organise amazing tours combining our hotels with daily trips and activities.
NDE: We wish you every success in generating business to Sarajevo and to your hotels, and look forward to your participation in New Deal Europe’s global marketplace on 5th October.
Questions by Robert Dee, co-founder of New Deal Europe, a travel forum and marketplace that brings together tour operators, tourist boards, and suppliers with a focus on the Balkan region of Europe, www.newdealeurope.com.
If you would like to take part in or blogs from the Balkans series, or if you would like to contribute an article, please contact us at info@newdealeurope.com.
