08 Apr Interview with Evgenios Vassilikos, CEO, Capital H, Greece
Tourism hit a record year in Greece in 2023, with revenues reaching €19.5 billion compared to €17.7 billion the year before. How has this strong performance translated at Capital H level? How do you look back on the previous year?
Coming from the pandemic, the growth that we saw in tourism in Greece was also transferred to our company’s results. I have been in the industry since the early 2000’s and I believe that except for 2004 and the Athens Olympic Games, it has been the best year that our industry and our group has seen, especially in Athens, though we still have a long way to go as a country to be able to create a sustainable and stable environment for our tourism industry.
What impact will the government’s new diversification efforts, of pushing tourism beyond Greece’s urban hubs to regional areas, have on the hotel industry? What new opportunities will diversifying the national tourism package present?
We need to move on from the model that we have had for decades. Greece is not only the Acropolis, sea and sun. We have become a destination for business travelers, worldwide meetings but also for gastronomy and wellness. We have a very wide and unique touristic product that can be exploited all year round, not only for the summer holidays. I believe that there are plenty of examples on how to develop a destination, both good and bad, it is time to take advantage of this and decide where we want to be in 10-15 years.
Capital H was launched in April 2021, can you give us an overview of the company, its current assets and responsibilities? How does it stand apart in the tourism industry? What services does it provide, and what main milestones has it passed recently?
Our company is part of a larger group of companies called Airotel Group and this year will be celebrating 40 years of operations. In total the companies own, lease or operate 7 properties in 3 different destinations, mostly city hotels but we also own a city resort.
In 2021 we decided to create CapitalH so that we could offer consulting services for existing hotels or new projects. Our focus is to create a team that will be able to offer services at the highest level but at a considerably lower cost for our potential clients. A small hotel of 40 rooms would not be able to afford the team that we have if they were on their own, so we provide it to them. We focus on the quality of our partnerships and not in getting a lot of properties, as we want the services that we offer to be of the highest quality in a market that is developing very quickly.
What in your opinion are the biggest opportunities and also challenges in the tourism industry in Greece today?
We need to be careful about where we want to be as a destination in 10-15 years, which needs a lot of programming and a correct strategy. Do we want to become another destination where we see overtourism being in the headlines or can we make sure to get ahead of this and create a product that will be sustainable and appreciated by all the parties involved, both locals and foreigners? Do we want to see record breaking numbers in the quantity or in the quality?
What is Capital H doing in terms of talent development to fill the existing gap in the sector, to provide training and upskilling for the country’s human capital in hospitality?
Our focus is to create a team that will be able to tackle the challenges ahead on all levels. We are in an industry that is changing and developing at a very fast rate. Technology has a very small level of penetration but that is changing and means that people must adapt to this, both the guests and the employees, as we cannot and do not want to lose any of the human contact that gives the guests the experience they desire and the Greek hospitality which is known worldwide.
As the whole tourism industry is striving to become more sustainable, what measures is Capital H taking to make its operations greener? How is it helping to cut down the carbon footprint of the tourism sector?
We are trying to become as sustainable as possible, depending on the property and its clientele. Some things we do across all the properties we manage. For example, we have stopped using single use water bottles in our properties and replaced it with water filters and glass bottles, which translates in 220K single use bottles less. The refurbishments we gradually do in our hotels also help us to lower our carbon footprint by using less energy for everyday operations, as does the food waste management, which is very important to us. We look for companies that can help us so that we can have the best results and implement them in our annual report.
How significant is US tourism in Greece, and for Capital H? What are you doing to target US visitors?
US travelers are the most important market for Greek tourism in recent years, closely followed by the European market. For Greece, the fact that the number of direct flights is constantly expanding is very positive, as we become a destination that is easily accessible and a gate to other European destinations. Our company diversifies and adapts to our clientele so that we do not depend on any one market. Depending on the destination and location of our properties we promote some markets more than others, considering the period of the year. For the US market we collaborate with different partners to target different clientele, from OTAs to travel agents, but also airline companies that fly straight to Greece.
What kind of opportunities exist in the Greek market for partnership with US hoteliers and investors? How open are companies like Capital H to participate with US players?
In the past 3 years we have seen a great increase in the number of international brands investing in Greece. We also see that these international brands usually need a local operator to be able to enter the market quicker. There are many opportunities both for investors and companies like ours to cooperate and develop within the Greek market, from small boutique hotels to large, all-inclusive properties, from city hotels to resort hotels, without forgetting that the high-end luxury hospitality is also developing a lot.
What are your current top personal priorities as the CEO of Capital H? Where do you see the company in the next five years, and what is your long-term vision for Greece’s hospitality sector?
For me the focus is to develop our management company with strategic partnerships that will give us the opportunity to be present in more destinations and diversify our portfolio of hotels, both in city and resort locations.
I believe that our sector is at a crossroads, and we need to be very careful about our next steps, as a company and as a country, if we want to see the sector stabilize and continue to strive as it has in recent years. We need to focus on updating public infrastructures to keep up with the demand that we are facing today.