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Erich Falkensteiner: Being good is Not Enough

From a small guesthouse to a big player with over 30 hotels in six countries: Erich Falkensteiner from South Tyrol has created a great success story with his brother Andreas. In an interview he reveals how the journey will continue.

August 4, 2023


Falkensteiner

"Resort Capo Boi"© optional

Erich and Andreas Falkensteiner grow up in simple circumstances, their parents work hard to make their guesthouse in Pustertal, which opened in 1957, a success. In 1978 the sons take over, and in 1995 Otmar Michaeler joins the company management. Today, with more than 30 hotels in Italy, Austria, Croatia, Serbia, Slovakia and the Czech Republic, it's one of the most successful family-run hotel groups in Central Europe. We met Erich Falkensteiner for an interview.

Falkensteiner

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From a seven-bed guesthouse to a vacation hotel group with 2,000 employees - how do you do that?
I'm sure meeting the right people at the right moment, being in the right place, plays a role. To believe in your dreams; to fall down, but to get up again. And passionately do what you love to do.

Was there a key moment when you knew: Now we've made it?
In business life, there are always ups and downs - the pandemic recently showed that. A defining moment was the death of my father when I was 19 and my brother who was 17. We decided to take over the hotel. Actually, my dream was to become a doctor. Things turned out differently, and I thought: I'll go my way, only a little bigger. I've always had people by my side who could do a lot of things better than I could. Perhaps that's my gift: to inspire these people for me and for my ideas, so that they come join me on my path. I don't always succeed in everything, but I see my task as leading the way.

Falkensteiner

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You have also done this as a visionary. What do hotels need to be able to do in order to work?
For one thing, it needs specialization. An I can do everything.com model doesn't work. The second is quality: we started with a guesthouse, then we got three stars, then four; finally we established ourselves in the four-star superior and five-star range. We have now chosen the slogan From Good to Great - because being good is too little. We don't sell beds, we sell emotions. You have to exceed expectations and go one step further in terms of quality.

You have said goodbye to the city hotel industry. Why?
We come from the vacation hotel industry, South Tyrol is a vacation hotel industry. There we can count among the best. In the city there are many more international competitors: Hilton, Marriott, they are all there. I think they have a hard time understanding the European vacation hotel industry - and that's where we find our niche, where we can become number one in Austria, Italy, Germany and Switzerland.

Falkensteiner

"Falkensteiner Hotel & Spa Jesolo" © optional

Where do you see Falkensteiner Hotels in ten years?
We want to continue on the path to the highest quality with our 2000 employees. Our employees are our capital, we must cherish and care for them. I am already a bit proud of that. Everyone is having trouble finding employees right now, but we're getting by just fine. We have always treated our people well. We do a lot for training and mentoring. As a next step, we would like to have kindergartens in our hotels - for a better work-life balance for our employees. The children just come along and are in good hands. Employee houses next to the hotels are also a must for me - we no longer build a hotel without one.

Briefly asked privately: your favorite travel destination?
Sardinia. Definitely one of my favorite destinations!

Which places do you want to explore in the future?
Privately there are still a lot; from a business point of view, you certainly have to take a closer look at Albania. Scenically, it's in any case beautiful, I was there already twice.

Falkensteiner

"Resort Capo Boi" © Walter Luttenberger Photography

And what trip comes next?
Dalmatia. I often like to go to their own hotels. This sounds strange to many, but I feel most comfortable there.

What must not be missing when you go on trips?
My hair gel. Today I forgot it! (laughs) And: I don't leave home a day without my lucky stones. I got them from my daughter. I swear, if I ever forget them, then the day doesn't go so well!

This article appeared in the Falstaff TRAVEL issue Summer 2023.

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