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November 20th, 2008
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10 Questions

with Sedat Nemli
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August 20th, 2008 issue

MICHAEL HEITMANN/The Prague Post
Nemli counts on well-trained staff to make the new hotel a successful venture.
The Nemli File



Job title: General manager, Kempinski Hybernská Prague
Age: 51
Nationality: American, Turkish
Previous position: VP of sales and marketing, Kempinski New York
Education: MBA from University of Reims, France

As the Czech currency strengthens and costs rise, Prague’s tourism industry is recording a major slowdown. A report published earlier this month by the Prague Tourism Council indicates that year-on-year sales dropped 30 percent in July, forcing hospitality professionals to mull new marketing strategies. In the midst of this crunch, global chain Kempinski readies for the mid-October opening of a 60-room luxury hotel on Hybernská street. As construction workers place the finishing touches on the refurbished palatial residence, general manager Sedat Nemli talks to The Prague Post about facing competition, improving services, and overcoming worldwide travel trends.
? The local tourism market has taken a big hit this year. Are you concerned about keeping business steady?
Prague should not be taken in isolation when you’re talking tourism and numbers. We are referring to a worldwide crunch, so I am reluctant to consider Prague a unique example of why things might be on a downturn. On the other hand, we have to remember that travel is a choice most of the time. The important thing is to keep the destination in the limelight with all its positive aspects, because economic trends come and go. Prague is a capital city and an important destination in Europe, and it ought to have already reached a maturity where it can stand on its own, even if it’s not immune to fluctuation.
? Prague’s luxury hotel market is already fairly saturated. How do you plan to beat out competition?
Obviously, there are other good luxury hotel brands in this city. In this business, you are often competing with a number of hotels in your particular segment. Nevertheless, we would like to position our hotel among the finest in Prague. It’s tough, but we also believe that there is always room at the top, that brands drive their own business and create their own market share. Even in a tightening market, the entry of a brand that has international visibility — especially if it has a customer base that is used to following it around the world — injects new life into that destination.
? What brings Kempinski to Prague?
Actually, our entry into the local market is almost overdue. Kempinski had intended to start in Prague many years ago, but the project was aborted. There were certain issues regarding the previous attempt that were beyond our control — I believe they may have been construction-related — but this was before my time. Nevertheless, Prague had always been within our sights. At the start, the current project was slated as a residence operation, which was a sensible approach, given the size of the units. However, we wanted to enter the market as a five-star hotel and offer our large rooms as an element of luxury.
? What are some of the challenges of starting up a luxury hotel here?
In a way, we are fortunate, because we are being entrusted to run a hotel that will be handed to us by investors, with all the features we require. As a management company, we are not directly involved in the construction project. Our main role is on the managerial side. We want to put together a team that will be effective in running the hotel in a way that meets the expectations of our guests. The challenges are really the human resources aspect, the recruitment, the training and preparation of operations that hopefully fit the name behind us.
? How do you put together a well-trained staff?
We try to network on the market and spread word of mouth to put together a good team. Almost 100 percent of our team, including management, comes from the Czech Republic. There are lots of good, qualified people on the market, but that market is tight, so the challenge has been to find good people who are willing to join us. Luckily, lots of locals are now coming back home from abroad. They graduated from hospitality schools and went on to get international experience. Now they are returning to Prague well-trained and speaking foreign languages, which is a big plus for us.
? Industry professionals often say the level of services in the city is not what it should be. What can be done to bring them up to ‘Western’ standards?
It’s true — services can be erratic and uneven here, but I think this will improve dramatically over the next few years, given the market tensions that drive competition and excellence. Prague is a maturing market, so locals will increasingly appreciate the benefits and importance of improving services. We are in competition not only with other establishments, but also as a destination. No hotel can make it on its own. The taxis, the restaurants, the shops — they are all responsible for delivering a standard of services to make the overall image of the city a success.
? What can be done to lure tourists back for return visits?
Just as London and Paris are timeless cities on a bigger scale, why not Prague? It has enough of a cultural and historical foundation to warrant several visits, as do other destinations in the Czech Republic. There is so much to see here — other countries manage to do more with less. The city has evolved since the early 1990s — those days of one-time curiosity visits are over. The corporate environment is becoming significant, the economy is growing, and now the country is assuming the EU presidency as of January. All this will create added interest in the city. If Prague can manage to leverage all these things, it will firmly establish itself as one of the key destinations in Europe.
? Where else in the world does Kempinski plan to expand?
China and India are two markets where we have experienced a tremendous amount of growth, with the Middle East as a close third. We’ve successfully tested certain African destinations as well, but we haven’t lost sight of Europe, our historic backyard. We’re hoping to incorporate some emerging European destinations. We have two new hotels opening in Slovakia next year, as well as new projects in the Balkans and Russia. It is important for us to be established in these countries so that we can draw new customers from these destinations.
? Can this international client base benefit the local market?
In a sense, growing an international portfolio has a cross-selling benefit to hotels around the world. The more established we are in an emerging market, the likelier it is that the citizens from those markets will stay in our hotels in other destinations.
? Which country provides the steadiest customer base?
As a German-founded company, the German element prevails in our customer base, which is good, because Germany is the world’s most traveling nation. It also comprises a major feeder market to the Czech Republic. I was pleasantly surprised that there is already a great deal of familiarity with the brand within Prague circles.
Want your manager to answer our 10 Questions? Contact Markéta Hulpachová at  mhulpachova@praguepost.com


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