TTG ASIA MARCH 2019
VIEW FROM THE TOP 9
Shaking a legacy culture
Since taking over the reins as CEO of Diethelm Travel Group (DTG) in September 2017, Stephan Roemer
has been trying to bring the “handicraft” spirit of his Asia-focused Swiss travel outfit Tourasia to the
Bangkok-based DMC, one of the region’s oldest and most storied. Roemer tells Xinyi Liang-Pholsena
how he is reinventing the legacy DMC into one with a leaner structure and sharper positioning
How did the merger of Diethelm
and Tourasia come about?
The owners (Keller family) of
Diethelm and I met from time to
time; they saw what Tourasia did and
I knew what they did. It was late 2016
when they approached me and asked
‘why not bring our ideas together?’
At that time Diethelm had a differ-
ent focus and we had a different fo-
cus. I don’t need to be a big player but
I need to be a special player. Tourasia
was like a handicraft – we offered
small details which others probably
would not go that far for. That were
the niches of our companies, and we
were very successful with that.
When Diethelm offered me an op-
portunity to merge with each other, I
was quite quickly convinced because
(Tourasia’s) model was such a small-
scale niche that we couldn’t scale up
or develop further; and for Diethelm
I didn’t see at the time much chances
for them to grow with their model
(otherwise).
The business (of travel) has
changed completely and that made
me decide (to take) Diethelm and
our smaller companies into the 21 st
century with a clear strategy.
What were the first things you did
following the merger?
The first thing after I came here was to
start a clear positioning turnaround
at Diethelm – what do we want and
where do we stand? Diethelm didn’t
have a clear positioning at that time,
they were doing everything. I was
convinced you cannot do everything.
Number two was Diethelm’s or-
ganisation structure – it was not a
modern organisation any more and
nobody changed that. If you want to
steer forward, you need to have the
vehicle to steer forward, not with a
huge truck behind, which was the
case with Diethelm.
After the repositioning I started
to work on the organisation. Our or-
ganisation is now much faster, much
leaner and much more accurate. We
underwent a complete change and
had considerably less executives.
What are the results of this flatter
organisation structure?
We have considerably less manage-
ment positions, but the positions we
have are now entrepreneurs; they are
not just managers any more. I have to
change the mindset of the company
and management. It’s a process; it’s
not done from today to tomorrow.
We changed the organisation com-
pletely by giving competences to the
front. I knew from the beginning it’s
a risk because mistakes would hap-
pen and mistakes have happened but
there will be less and less with time. If
I do my calculations, it certainly costs
me less at the end of the day to have a
smaller (reporting) chain than a big-
ger one, and in the future there will
be less mistakes.
Can you imagine if you’re close to
the client and you (want to) make a
decision in favour of them, but if you
have to refer the decision (upwards),
most likely the (outcome) will (not)
be made in favour of the client. Staff
closer to the clients think, act and
decide for them – this is what we see
already. We are much, much more
client driven.
So the recent changes were more
about introducing a clearer posi-
tioning for Diethelm.
Yes, very much so. Actually it was
more a consolidation. We let certain
clients go and we gained a number of
new clients – and quite a big number
of new clients and even some for-
mer clients of Diethelm came back.
Because they see what we do and we
can show them where our position is
nowadays – it’s a hard fact.
And within a year at the driver’s
seat, you managed to steer the
company of the doldrums.
Yes, we did. The two quarters (1Q
and 2Q in 2018) were the best over
the past 10 years in terms of profita-
bility. I expect to come close to a bal-
ance out in the fiscal year, and we’re
aiming for profitability, which was
not the past case. 2019 will be profit-
able. 2018 will certainly be on a solid,
balance out level, considering the
losses that were written out before.
What about the recent merger
with Travel Center Asia (TCA)? Has
that brought any synergy?
There are synergies, yes. TCA is ex-
actly following an added value phi-
losophy, which fits ours. TCA also
has a succession question – owner
Thomas Maurer is of retirement age
– but their clients are not willing to
move somewhere and are looking for
someone who can provide what they
had in the past. Maurer has a high
responsibility and would certainly
Diethelm didn’t
have a clear
positioning at that
time; they were
doing everything.
I was convinced
you cannot do
everything.
not just let his clients go, and he ap-
proached us with the idea if we could
provide what he’s doing.
We saw an opportunity in TCA.
One, we can take over the business
aspect. Two, we can give a future for
their staff and we needed profession-
al staff. Third, Diethelm has been in
this building* for 30 years, and we
questioned being in such a prestig-
ious but expensive location in Bang-
kok, (when the office) did not have
more modern facilities. I need an
office that’s 21 st century compatible
with daylight and modern air-condi-
tioning system, so we reconstructed
our office there (at TCA premises).
What do you see in the future of
tour operating?
One, we have to be much closer to
the clients, and two, our jobs have
changed with digitalisation; if you
don’t add value you’re out of the
chain and not needed anymore. You
have to consider that every client can
book a hotel directly – whether they
book it with me or the hotel they get
the same bed. So I need to put added
value to every service or entire
package. The 21 st century
business is added value,
otherwise we don’t need
to exist anymore, and
that is what I’ve been
changing (at DTG).
We make holidays
the way clients want it.
What I’m giving (to
clients) is the com-
plete package on an
added value. He ex-
actly tells me what he
likes to do and we do
it the way he wants, we
provide him all the fa-
cilities that we have and he
benefits from that, he actu-
ally enjoys his holiday much
more than he would had he
done it by himself.
10 NEED TO KNOW’S ABOUT
STEPHAN ROEMER
■ Who’s in your family? Two rabbits, two girls and me.
■ What do you do for fun? Sports is fun for me – skiing,
running – which I compensate with fine wine and dine.
■ Your ideal vacation? I do not need much. It can be hik-
ing, a roadtrip or simply some days at the beach.
■ How do you book your own leisure trips? Luckily I
have travel professionals around me. They know best how to
do and they’ve never failed me.
■ What are you reading right now? The 2018 business
figures, (a pleasure to read)! On my side table, there are
numerous business papers.
■ How do you stay healthy? Happiness is the key to
health. I am a happy person. I am grateful I was never really
sick in my life.
■ Favourite food? I am a foodie. Food should be comple-
mented with an adequate drink. I love wines.
■ A bad habit you cannot kick? You better ask my col-
legues. I know my impatience always drive people mad.
■ Your pet peeve, something that never
fails to annoy you? Cats are boring to
me. Snakes and insects are not my
real friends.
■ Most people don’t know
that you… have been married
for 23 years and my wife still
accepts me the way I am.
*Editor’s note: DTG
was still based in its
old office at Kian Gwan
II Building on Bangkok’s
Wireless Road at the time
of interview. The company
has since relocated to its new
premises at ITF Tower on Si-
lom Road.