CEO of TFE Hotels on Innovating Through Lab Hotels
So the task management, guest requests, and all that are in one snapshot in a very user friendly version rather than the same.
Speaker 2:From Hotel Tech Report, it's Hotel Tech Insider, a show about the future of hotels and the technology that powers them.
Speaker 3:Today, we're speaking with Asla Kublakhan, the CEO of TFE Hotels Europe. Asla has had an impressive thirty five year career in the hotel industry. We dig into the strategy behind this tech forward brand, including the company's Test Hotel, where they studied the behavior of 200 real guests to build a totally optimized hotel room of the future. Let's dive in. Thank you so much, Asla, for joining us here on the podcast.
Speaker 3:To kick things off, I would love for you to introduce yourself and tell us a bit about your role and your company.
Speaker 1:Thanks, Adrian. So happy to be joining you today. Thank you for having me. Yeah, I'm CEO of TFE Hotels Europe and our company has almost 80 hotels across 10 countries under 10 brands. However, in Europe, we are known with our Adena Hotels brand, which we have about 22 of them here across The UK, Denmark, Germany, Austria, and Switzerland.
Speaker 1:And we are basically a extended stay hotel specialist here, especially with the Adena brand, but back in Australia and New Zealand, whereas our mother ship is, we are also very famous with our luxury hotel and heritage hotel brands as well. So we are looking to grow our business in two folds in the coming years here, both in Europe as well as in Australia.
Speaker 3:Great. Well, thanks for the intro. I want to get right into the conversation because I know you have a bunch of really interesting initiatives happening. I would love to dig into the lab hotel first. So I've heard a bit about this, would love for you to give us some context, explain what is this concept, what are you hoping to achieve, and how has it been going?
Speaker 1:Yes, for me as well, the most exciting thing we've been doing. Now, Adena is a fantastic brand. We've been around for decades. Everybody knows us. Everybody trusts this brand.
Speaker 1:But it is a four star, four star plus brand with its own brand standard. So we know we are continuously growing this brand, but the opportunities in the markets and the key cities in Europe or Australia and New Zealand are becoming less and less available for new builds or big conversions. But what's becoming available these days is the redundant retail and office spaces, right? So people sort of shopping habits are changed and also office habits are changing and changed already since COVID. So we are now seeing in the markets, the key markets, big office buildings or retail buildings that several floors are vacant.
Speaker 1:And we're trying to come up with a concept that we can be a solution with a brand that we can fill up those floors with a accommodation alternative and create that whole under the same maybe different variety of offerings for the owner of the building. So whilst we were thinking about this, we looked for an efficient design, fully tech enabled, and soulful hospitality. These were the three pillars for us that how and what we're going to do and how can we create this. And while we're thinking through this, we find that we're going to create a concept that can easily be fitted out anywhere. And also that can has the full tech capabilities from a guest journey as well as the colleagues, our employee journey.
Speaker 1:So rather than creating a concept based on a paper and maybe go to a basement and create a mock up room as we say, we decided that we're going to create a lab, a better hotel perhaps you can call it. And for this purpose, we found a very suitable location here in Berlin in a retail space that previously was a bridal shop as well as next to it a hairdresser. So we took over this retail space and got it out. We selected three designers to do different rooms for us and we kept it very simple. We have three room categories, small, medium, and large.
Speaker 1:But what we wanted to make it sure that this wasn't going to be a budget brand, right? So the design, it has to be design led. And also the other important point for us was that every material or as much as the materials we use are sustainable because what we are trying to achieve is to give a second lease of life to the space that are redundant, is not good for the economy and not good for the environment. So for that, we really needed a creative approach. So we get our designers and we start converting this retail space to a mini hotel.
Speaker 1:And while we were doing this, of course, our second biggest objective was that over the last eight, ten years, we had wonderful prop tech guys coming into our industry with their fantastic concepts, following the Airbnb concept and building these really interesting brands that are technology led. And we wanted to be the first hospitality hotelier coming into the game, bringing the full tech stack and how can we create still a full soulful hospitality with tech enabled. So we start working with different partners and we decided to go into a journey with Like Magic as our middleware. These guys have created a solution that is superbly adaptable. It has open API and can interface anything and everything and super user friendly.
Speaker 1:So we start building while we're building the concept as a lab hotel, the full tech stack as well. And eventually we decided to brand this concept Moment, like, you know, Moment in Your Love. And by the time we were coming to sort of finishing the construction and the tech stack and implementation and everything, we decided that we're going to go out on our social media and recruit test guests. So we opened applications, we had about 900 people from all around the world apply to be our test guests. And we basically chose them based on their sort of demographics and their travel habits and etcetera.
Speaker 1:So we picked 200 of our test guests whom arrived around March, 2024. And sort of we had them with us sort of April and May and they had some tasks during the day for about thirty minutes. We asked different questions at different times. We asked questions about the tech. We asked questions about such as take a picture and send and post onto platform, where did you unpack your suitcase or where did you unpack your toiletry bag and what do think about this, thumbs up, thumbs down, heart, etc.
Speaker 1:So by the end of that two months trial, we had unbelievable amount of data that we crunched through. We took all the feedbacks and both physically in the building but also from a tech perspective as well. So we closed it during June 2024 and did all the adjustments that we can do. And from July 1, we reopened to public as our new brand and continued operating as our better hotel under the Moment brand. And we are only sort of you can only book it via our direct website or via Airbnb.
Speaker 1:And the reason why we chose an Airbnb to be the only platform we are marketing or selling rooms is because the Airbnb gets our most tech savvy customers. Know, from the beginnings of the Airbnb, they're used to not to see someone, meet someone and opening doors either by instructions or some keys and etc. So without having to talk to someone. And so far, we are now being open to public more than one year. We are constantly evaluating, constantly reading the reviews and talking to our guests.
Speaker 1:So I saw that in February, we also shut down again for two weeks to just do some more adjustments based on the feedbacks. Because it's a better hotel, we can do that. We constantly want to receive the feedback on the tech, on the product and test something different. Currently, we're testing some chatbots for the AI chatbots for the guest inquiries and etc. So it is our most exciting project so far is over the past year to create this brand, but more importantly, being able to actually build the lab and test that lab both with the test guests but now with the live guests.
Speaker 1:Now while we were doing this on the tech stack for this brand, we took a partner Lightmagic's capabilities and with our colleagues in Australia, we built a separate tech stack for our five star hotels and four star hotels. So we have the Adena core brand is more four star and A by Adena, which is our sort of more elevated five star product. And around the same time when we were doing the lab, building the lab in Berlin, our colleagues in Australia has rolled out the test properties with that new tech stack where everything was new from POS to PMS, payments, the revenue management, etcetera. So then we've been testing this new tech stack, which is full guest journey that can be done via the technology and the employee journey also that had much more user interface. And more importantly, this tech stack especially was eliminating amount of administrative time for our teams so that our teams actually can spend quality time with our guests.
Speaker 1:So on the back of a year, a little bit over a year testing, we made some different versions of it. We changed, we test different other add ons. And now we decided that it's on its good form, we call it GXP, Guest Experience Platform. And we're now rolling out globally across all of our properties here in Europe and Australia. As we start rolling out, we are already talking about what is the GxP two point zero.
Speaker 1:Because with technology today, the moment you roll out your product, you already need to be ready to think through the two point zero or the next version of it because the technology is changing so rapidly and the guest expectations, their journey expectations changes so rapidly. So we are really, really already at the table thinking with our full technology teams, our revenue teams, our marketing teams, everyone huddled up and thinking about, okay, what is the next two point zero version of this looks like? And in the meantime, we also signed our first real size properties for our new brand, Moment. We are the final phase in Hamburg and Berlin. So we are really looking forward to in the coming year to start building our first full size, when I say full size, more than six room because the nav is the six room moment brands as well, then carry on rolling that out.
Speaker 1:And while we're doing that, always we are constantly evaluating how we are sort of doing with our tech stack. What's the feedback from a guest journey perspective? What's the feedback from our colleagues, from our employees feedback? And we're just going to constantly carry on growing this tech stacks in line with what expectations are today.
Speaker 3:There's so much to unpack there. Can you walk me through the guest journey from a technology perspective? So from booking through checkout, what types of tech will the guests interact with?
Speaker 1:So basically the guest facing part of the tools we are using is delivered by LikeMagic. So behind that, of course, we have marketed off interfacing products, right? So it starts from our Sendai and our CRM product, you know, sort of that's how we, before even this sort of book, that's how we target. We have a program called eClub. So that's targeted marketing eClub to this is some form of a loyalty program, but it's not a loyalty program because you know, for a loyalty program to be successful, you need huge amount of subscribers and huge amount of inventory.
Speaker 1:Right? So you have to be mindful of your size and your scale. So we wanted to do something and benefit from that. So we come up with eClub. Currently we have about a million subscriber and about half a million active users.
Speaker 1:So what we're doing is that it's a recognition program and engagement focus. So it uses the RFM algorithm. So it is basically recency, frequency, and the monetary value tracking from the CRM sender and we're using. So that sort of targeted offers and that we send it to our guests. So that's one part of the before they even sort of start booking with us.
Speaker 1:Then from the booking onwards, when they book with us, then there is a option to choose to connect with us. Do they want just email or do they prefer WhatsApp and etcetera? And then they also have the web based on their browser, our software there, so they don't have to download the app or anything like that. So from there on, they can, first of all, communicate, they can choose how they want to communicate with us. And if it's WhatsApp, then we take it from there and just we have a direct communication with them with WhatsApp or email, or they can request everything on the web browser from pre completing and checking in before arrival, asking for either upgrades or car park or any other facilities.
Speaker 1:And during their stay with us, they can basically do digital ordering, of course, because we have a lot of hotels with full service in different operators. So for example, one of our test hotel was the Eve in Sydney. This is one of our collection brand that we opened towards the end of last year. And it's a whole prisons where our hotel sits and there are different F and B outlets and some belongs to hotel and some third party. So they have the capability to be ordering from all of those outlets to room service or reserve a table and etcetera.
Speaker 1:And so the digital ordering, use Clairvak Q and for the restaurant reservations, depending on the regions, etcetera, is seven rooms and open table. And while they stay in, of course, as I say, the communication with the reception or housekeeping or maintenance is very streamlined. They can request and ask anything or they can report something without talking to us and our teams on their interface. So this whole thing, we're using interface into Opera, which is the PMS platform we use. But the employee don't see the normal Opera sort of the interface.
Speaker 1:They see a personalized interface or the screen they see platform where we have like magic. So the task management, guest requests and all that are in one snapshot in a very user friendly version rather than let's say a PMS version of it. So a employee can just look at their tablet. So it's all in a tablet or in iPad, even credit card machine, we're using Adyen for payments, all that attached to that. So there's no need for any desks or, you know, big computers.
Speaker 1:And our team members can see everything on the hotel going on with which guest needs what, which guest that is arriving completed what part of their registration or pre registration. And you know, they can just see everything in there. So of course, when you have that very live, very user friendly interface, then the communication between the employee and the team member and the guest becomes much more fluid. And that's also not just the front desk, it's the maintenance, it's the housekeeping, it's the food and beverage. So all you needed is that bring that connectivity that you had, you know, your PMS tools running separately or FMB tools running separately or maintenance separately.
Speaker 1:You bring in everyone together to see, you know, of course everybody has different levels of visibility of different information, but everybody sees pretty much the same thing about the guests.
Speaker 3:Going back to your test hotel, after receiving feedback from the test guests and now the real guests, you made some modifications to the actual room. What were some of those changes?
Speaker 1:Yeah. So some of them was that sort of the cupboards, some of the cupboards where you need to use your phone to open and close. So we actually now release them all and open it. So that was part of the tech part. In some of the rooms, the shower maybe didn't work the way we assume it will work.
Speaker 1:So we just went and changed some of the floors in that room and etcetera. In some of the room, because we have a mood lighting, so you can choose the mood lighting. So we have very high-tech lighting system. And also, obviously, because everything is fully integrated, so sort of if you go out and come back in, the lights come on as you come. Me and my other half, we were one of the test guests, first test guests before the real test guest comes in.
Speaker 1:And I'm a morning person, so I was up about five and went out to get some coffee, my other half sleeping. And then everything is dark, I quietly left the room, went out. And then when I come back in, of course, the room thought that I left and I come back in forgetting that somebody's sleeping. Whole room was in the room. Didn't realize that originally.
Speaker 1:We program, of course, the lighting and according to that and the different sensors in the room that knowing somebody is still in the room sleeping and etcetera. So quite a few of those things. And as I say that other thing is that one of our team members now during the day, so just nobody feels lonely, And a few of other things. There was temperature related stuff but some more physical stuff that we wanted to change. But you know, there wasn't massive amount but you know, all that little things that are coming through because everybody's behavior is different.
Speaker 1:I don't think many couples that one of them actually get up that early and leaves the room to hunt for a coffee and come back in. So yeah, we are constantly monitoring those, as I said, and we've made those changes. Look, I think we probably will look to see if there was any others. Currently we've been analyzing all the Airbnb feedbacks because that's the beauty about Airbnb as well. Quite high percentage of Airbnb guests leaves real comments, which is super useful for us.
Speaker 1:So we constantly picking up from there, you know, sort of this, oh, would have been good if they had also this kind of a comment. And if we can make that change, we're certainly doing that change. And we had some complaints, as I say, that it took a little bit longer than expected to reply to a guest question. And then when we start analyzing all the guest questions is naturally realized most of them are repetitive. So that's where we then went into now implementing a chatbot to sort of can reply to easy questions that are sort of within that, you know, AI sort of questions.
Speaker 1:Then our employees who was answering that then they only left to answer with the questions that are a bit more challenging or someone really does need help and we act on it. So that kind of little tweaks we are doing in the product. We also actually had something very interesting. We're trying to keep the rooms as, how should I say, as clutter free as possible. And therefore we build what we call the upgrade boxes.
Speaker 1:Okay? So on the public area in the corridor, you have these boxes, they're called upgrade boxes. And basically you don't have a bathrobe in your room or a hair dryer or a hair curler or a straightener or a travel printer. So on your phone, it's like, okay, I'd like to have a bathrobe and slippers. It's not everybody's thing.
Speaker 1:And so they can then go to upgrade because they can see on their phone what we have and and what is available on the upgrade boxes. They can reserve for a day. So they can rent it basically for a day or a week or whatever their duration. And then basically they can go to the upgrade box and choose that box will open, they will have it, it's already charged to their account and then they can use that as long as they rent it for. So then you're only also paying for the things that you need.
Speaker 1:Yeah? But this also allows us to do that extra things like how many hotels you will turn up that they may have a hair curler or hair straightener or a travel printer, you know, things like that. We have Nespresso machines that are very high end grind and sensor machines in the upgrade box as well. So things like that we are testing and so far we're looking at the feedbacks and things if the guest raises, oh, I wish there was this and that in the upgrade book. So we are testing different things and getting those feedbacks as well.
Speaker 1:So it's really the best part of my job. Don't tell the infertisa. I love reading and engaging with teams and guests at this brand because I never had this privilege before. I don't think anyone ever had it. I mean, I was a franchisee most of my life.
Speaker 1:And of course, I worked with all the big brands and build and run their hotels. But we always had, you know, sort of you get the brand book and then brand standards, that's what you do, right? So having this opportunity, I mean, that also I must, you know, shout out for our board and our shareholders. They, on the back of, you know, COVID and etcetera, to support such a project and investment for us to go and build this thing and test it, that also shows their sort of vision and their sort of open mindedness, which is why I joined the company. So yeah, it is a great fun and look, are, as I said, I think it's going to biggest learning going to come from the one we open, the first one we open that has substantial amount of rooms, But I feel very comfortable.
Speaker 1:I can visualize what that first one from a product and technology perspective going to look like. I can visualize it because we've been living with this, you know. Because there's some of the things that we maybe had a feedback and we couldn't change now or we will it would have been a very expensive experience if we have discovered those on the first real project when you invest $50.60, €70,000,000. So on that sense, that's also been super useful for us.
Speaker 3:Well, we've talked a lot about technology, guest experience, doing things in a new and different way. I'm curious to hear based on your career in the industry and your role currently, what do you think are one or two qualities or characteristics someone should have in order to be successful as a hotelier?
Speaker 1:People. They have to love people. I mean, if you're not passionate about people, and when I say people, it's just anyone, employees and guests, you have to be passionate about people. You have to love them literally. It's so important because everything you're doing is about people literally.
Speaker 1:You know, if you talk to someone who works in the manufacturing, it's a different thing. It's machines probably. But for us it's just to love people, that's the first and the foremost. And of course, if you want to be successful in hospitality, you really need to have service mindset. The service mindset to your, again, to your teams, your to a corporation, and the service mindset to your guests.
Speaker 1:And as long as you have these two, then the rest is pretty easy. What we do is really it's much easier than building spaceships or building cars. It does require passion, passion for people and passion for service. And the rest is quite easy to learn.
Speaker 3:Awesome. Well, thank you so much, Asla. It was really great chatting with you. I loved hearing about all the interesting things you're working on and I wish you the best in opening the first real moment hotel. I hope it goes smoothly.
Speaker 1:Thank you very much, Adrian. Thank you for having me. It was lovely talking to you. And hopefully, if you're in Berlin, ever come and I'll show you the lab.
Speaker 3:Sounds great. I would love to see it.
Speaker 2:That's all for today's episode. Thanks for listening to Hotel Tech Insider produced by hoteltechreport.com. Our goal with this podcast is to show you how the best in the business are leveraging technology to grow their properties and outperform the concept by using innovative digital tools and strategies. I encourage all of our listeners to go try at least one of these strategies or tools that you learned from today's episode. Successful digital transformation is all about consistent small experiments over a long period of time, so don't wait until tomorrow to try something new.
Speaker 2:Do you know a hotelier who would be great to feature on this show, or do you think that your story would bring a lot of value to our audience? Reach out to me directly on LinkedIn by searching for Jordan Hollander. For more episodes like this, follow Hotel Tech Insider on all major streaming platforms like Spotify and Apple Music.
