Dinel Saizu, the general manager of the Phoenicia four-star hotel, is banking on smaller prices and the development of an entire chain in the battle with international hotel chains.
"Everybody knows the Marriott, the Sofitel, and the Ramada names. Competing with them is very hard since tourists prefer to go to internationally renowned hotels," stated Saizu.
Saizu, 47, runs the Bucharest-based Phoenicia hotel, which opened in October 2005. He says international hotel chains are embracing an aggressive policy, trying to buy properties locally or associate their names with non-affiliated hotels through management or franchise contracts.
Moreover, states Saizu, most foreigners are using the Internet as a source of information and domestic hotels that are not part of an international chain, do not have the same resources to compete. Thus, "independent" hotels have no easy life.
"For hotel chains, evolution on the market is smoother," stated Saizu.
The Phoenicia Hotel chief says he has already received a franchise offering from the Kempinski international chain, which he turned down.
Why? Because the company''s local strategy is related to promoting prices below the market ones, as well as a recognisable presence on the Internet achieved through the company''s own means.
Moreover, a considerable part of the hotel''s turnover is derived from contracts sealed with companies, related to the booking of rooms or space for events, and not from individual customers.
The hotel has signed contracts of this type with companies such as OMV, Samsung, Philips, Panasonic. At the same time, Phoenicia also plans to enter the market outside Bucharest with a hotel, but it is also likely to open another hotel in Bucharest.
"We''ve tried to position ourselves where we know prices will stand over the next two years," maintains Saizu.
At present, the hotel charges 89 euros per room, below market prices, which on average stand at more than 100 euros. In a bid to lure more customers, Phoenicia is offering facilities such as catering services or free transportation.
Dinel Saizu also says a large part of customers arrive at the Reception due to the fact that the hotel is in the vicinity of Romexpo, and this way the hotel is taking advantage of the numerous events with considerable volume of business travel traffic hosted by the complex.
Phoenicia''s facilities include 348 rooms, four restaurants and ten conference rooms, with a total capacity of 1,000 seats. In January and February, the hotel registered an average occupancy rate of 40%, which is high for that time of year, as it is considered to be a slow period of the year for the hotel market. The three to four-star hotel sector has been highly dynamic over recent years, as several international hotel chains have entered the market.
Phoenicia
* Launched in October 2005
* Developed in the wake of investments of around 10m euros by the Triumf Construct construction company
* A significant part of the company''s turnover comes from contracts sealed with companies for the booking of rooms and space for events
* Has sealed contracts with OMV, Samsung, Philips, Panasonic
* Plans to enter the market outside Bucharest with a unit and might open another hotel in Bucharest
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