Chitchat Insider News of State of Hotel Industry in Singapore

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An honorable member of the Coffee Shop Has Just Posted the Following:

1. Collapsed of high margin guests from business travel (worsened every year since Financial Crisis in 2008). MNCs are very strict: Everything should be done over video conference as much as possible. Travel acceptable only for important meetings lasting 2 days or more. Downgrade of hotels, flights, etc.
2. Over-Supply of properties due to very high expectations (high value business and leisure travel will double or triple for Singapore) in mid 2000 and QE (property developers throwing in massive of money for new constructions).
3. Due to point 2, owners have to drastically cut rates just to get rooms filled. They do this by le-long the rooms to cheap travel groups, especially from South East Asia, China and India.
4. Owners cut costs by having local brands (instead of in an international franchise), cutting off senior management and even ground staff.
5. Lobby guest service people now cut to 3 from the usual 5. Ground staff more hours and more work.
6. Many Singaporean GMs are jobless once they got laid off. Opportunities shrinked despite more properties. Now one GM will manage a few properties instead of 1-to-1 (only the large 5/6 stars type).
7. Average GM and senior staff salaries not only stagnant, even regressed. Local last time can commond 7K-10K basic per month for 4 star hotel in early 2000. Now only 5K-6K as many developers promote the 2nd in charged up (but without raising their salaries).


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