GOSTELOW REPORT—“It is actually an advantage being 4-star, as 5 stars probably need to discount in this environment, and then there is the grind of trying to get rates back up again,” says Miroslav Forejtek, general manager of the 210-room Park Inn, Prague, Czech Republic.
The hotel re-opened 25 June 2020 after lockdown, and initially occupancy began to recover, albeit slowly.
“We are a mainly corporate hotel and summer months have traditionally been taken up by tourists. Overall over 20% of guests year-round have usually been from Germany, followed by USA, with the U.K. and Russia as other good feeder markets. In August this year we were back up to 25% occupancy and growing but then border controls and other governments’ quarantine restrictions confined us to our domestic travelers only,” he explained.
The land-locked Czech Republic has a population of only 10 million. Prague, the capital, is right in the center, less than two hours’ drive from anywhere. Why would Czechs bother to stay overnight? Over half of room reservations come from Booking.com, so the GM has less than 50% to play with. What to do? Imaginatively, he found that pricing alongside competitors but throwing in a free mega-sized burger worked, with 10 reservations coming within a few hours.
Forejtek has several advantages over direct Prague competitors. All nine heads of department have been with him since he opened the non-union hotel in 2009. Of the rest of the 75-strong team, those who are furloughed are paid 60% of usual salaries, of which 60% is quickly reimbursed by the government.
“I have a tremendously loyal team, with historic turnover of only 13%. My people are unusually healthy – we care about wellness. We play soccer every Thursday afternoon, we provide free entrance to a nearby health club and spa for everyone, and our complimentary staff food always has vegetarian options. Mental wellness levels are above par, which is helping us cope at this time.”
The fact that he is Czech is more positive than negative, Forejtek says. He understands his team, who are nearly all nationals. He also understands local suppliers, including travel agencies. Another significant plus is that Park Inn, Prague, has an empathetic and supportive private owner, an Irishman who invests heavily in Czech real estate.
Forejtek fell into a hospitality apprenticeship at the age of 14, and worked his way up through sales and marketing. His forte, he says, is leading an open-minded environment, with occasional mistakes tolerated (he is called Miroslav, or Mirek, by everyone). He has also never wanted to be top dog in town.
“As a 4-star, I can make small reductions but there is nothing dramatic – I have no flower arrangements that I can remove, to save money. Five stars discount and then fight to get back up. I know I cannot go down to 3- or 2-star, as my customers would not accept it. We can still provide excellent service so that guests check out having had a great experience.”
But for all that, he says realistically, current times are incredibly taxing and there is no definite end in sight. When will the Czech Republic re-open its borders?
“Normally I would look ahead 18 months or so but now my forward time frame is three to six months. At the moment I am merely hoping to see light at the end of the tunnel when this winter is over,” Forejtek admitted, with merely a hint of his usual wry smile.