28 February 2003Michael Issenberg has just had his territory and
portfolio expanded by a quantum leap. Previously managing
director of Australia, New Zealand, South Pacific and Japan
for Accor Hotels & Resorts, he has now been put in
charge for the full Asia/Pacific region. The move is part
of Accor's move to synergise its Asia/Pacific operations.
Financial controller Kim Mooney has also seen his job
enlarged as a result of the move.
The integration of the two regions follows
Asia/Pacific deputy chairman Jochen Dobel's move to Germany
to run Dorint Hotels, in which Accor has a 30 percent
stake. Yeoh Siew Hoon asks Issenberg some key questions on
the day his promotion was announced to the media.
Q: So how are you going to do it, manage such a big
region?
Issenberg: That's what I am trying to figure out but with
good people, it should not be an issue.
Q: You've gone from looking after 110 hotels to 190
hotels, that's almost doubling your portfolio. It is a big
task.
Issenberg: Yes, but we have a good team in place. I will be
doubling the number of people in my team. I will
restructure the team in Australia to spend more time in
Asia. I will spend time between Bangkok and Sydney.
Q: What happens to Brian Deeson's position? (Deeson, who
was chief executive officer of Century International Hotels
and sold the company to Accor, was put in charge of sales
and marketing for Accor Asia)
Issenberg: We haven't made any changes yet. Brian is a
valuable member of the team, and will remain so.
Q: Will you be integrating the marketing for the two
regions as well so that Ray Stone (now general
manager-sales and marketing for Australia and South
Pacific) will also take over Asia?
Issenberg: Possibly, but there will continue to be
executives based in Asia. We have to make sure we get the
best synergies so that business within Australia, 70
percent of which is domestic, and business within Asia, 70
percent of which is intra-Asian, is reinforced.
Q: What was the primary motivation behind the
integration?
Issenberg: There was already some degree of integration
with David Baffsky, our chairman, looking after the two
regions. We want to make sure that at every level, we get
efficiencies in technology, procurement, sales and
marketing.
Q: Your two priorities are China as well as Japan, which
you looked after? How is Accor going to make a difference
in the competitive China market?
Issenberg: We are going to be launching our Ibis product in
China, which is a different tack from the international
competition. I believe that as you understand the domestic
market better, you can then capture a bigger share of the
upscale market.
Japan is a little different - we will focus on the
middle market down. We have launched two Formula Ones and
will launch our Mercure brand in June.
There are real opportunities in Japan where, despite it
being the second biggest economy in the region, there is no
company with more than 50 hotels in Japan or any
international hotel company with a significant
presence.
Q: So two different strategies for Japan and
China?
Issenberg: Yes, in China, we will go for the whole range
from three star upscale. We will not launch Formula One in
China.
Q: Would it be fair to say that one reason for the
integration too is that Australia and New Zealand are
fairly matured markets for Accor and there is not much more
room for growth?
Issenberg: It would be correct to say that - it would be
difficult to sustain the same level of growth that we have
seen in past years. We grew from one hotel to 110 in just
over 10 years.
Q: Is Accor driven by size?
Issenberg: It is not about size. It is more important that
we have successful hotels which then attract additional
hotels to the network. It is about operating well that
enables us to have successful hotels.
Q: Define successful hotels.
Issenberg: Leading in market share, profitable and happy
employees.
Q: Of the new area that you will be taking over, which
do you think will be the more challenging markets?
Issenberg: Ask me in two months.