Expert's Corner: Maxima Hotels General Manager's opinion

How would you characterize the prevailing trends caused by the global crisis in the industry?
The negative impacts of the crisis and the resultant tensed situation on the market forced industry players to be more flexible to clients. It was no secret that the rack rates fell by 20% last year. But today, we are seeing ‘confident growth’ in the industry, an upturn, which has particularly become more visible in the business segment, as more people attend industrial exhibitions and select comfortable hotels at reasonable prices. Maxima Hotels understand the importance of relaxation after a busy day. Therefore, apart from comfortable rooms, we also offer such additional services as restaurants, lobby bars, fitness center facilities.
How would you assess your chain’s position today, taking into consideration the scale of the global crisis?
The Maxima Hotels chain has been able to retain its regular customers despite the crisis and has also launched expansion into Russian regions. Specifically, the chain in 2010 organized a series of workshops in Russia’s largest cities. The direct contacts with potential clients were complemented by advertising campaign in the media and Internet. Thanks to these efforts, we have been able to increase the number of guests from cities with a population of one million or more residents.
What would you call your hotel’s key competitive advantages on this market?
The Maxima Hotels chain’s competitive advantages have always been based on perfect service since its foundation in 2004. Today, the chain has four hotels in Moscow, each of which has its own style and advantages in combination with the chain’s common corporate identity and standards. For example, the geographical location and exclusive rooms make Maxima Irbis Hotel a perfect place for wedding ceremonies. Maxima Zarya Hotel targets another audience as its large number of standard twin rooms enable it to cater for organized tour groups and corporate clients. The distinctive features of Maxima Panorama Hotel include its downtown location near the Avtozavodskaya metro station in close vicinity to major business centers and facilities to hold business events, while Maxima Slavia Hotel offers great opportunities for family rest, etc.
What is your market performance prognosis for 2010 and near future?
Obviously, the hotel industry is coming out of recession. In general, we expect a gradual increase in hotel sales of about 5-6%. The market decline has made hotels to more significantly value each guest, and this has led to improvement in service quality. We are confident in the future and hope that Maxima Hotel’s profitability will return to its best pre-crisis levels next year.