11/16/2009

Avoiding the Asia Growth Trap : a setback to the sustained recovery in hospitality business


Previous my post may leave some readers in confusing state of understanding.
While the influx of the Asia middle class income (replacing those of westerner clientele) is playing such a vital role in the Asia Pacific economic recovery. So what seems to be the point and what need to do is just straight to please them happy?….the question is how strategically!











Last post warning of the difference of the individual cultures and social etiquette will be a drawback to hospitality business - long run recovery in great deal if proceeding without precaution.





The crucial part is that service business is unique from other manufacturing lead industry in the sense that a wide range of different races: customers who will receive the experience of the service mostly within the common facility, time and workforce altogether.



Basic principle of human behavior, each culture hold his own root and belief ! thus will practice and behave in different ways. In addition if diverse ethnic group come and join into the same time same service function and destination with quite a different background, imagine what’s happening in the airline exclusive lounge , seating in airplane, checking in the front desk hotel and jamming in the line of breakfast buffet in the morning and inside the restrooms etc.


Trust me from my current encounter
“ this is an issues of managing the Customer Expectation!.”

And this is quite a big challenge for all management level to take care of this matter professionally.

Look at this sequence of customer experience








Service Re- Design ! will play a crucial role in handling this drawback.

Hotels and other related hospitality service providers will analyze and understand their customer mix well and insight enough.

Forget that the same old model or an existing service offering will keep all races of clientles happy and satisfied at the same time anymore.

Standard Operation Procedure needs to be reviewed and revised specifically.


Human development-Training will keep your staff posted and aware of what is happening and take an earlier adapted approach to keep track with new demanding customer.


Yield management will be one of the areas where an old style management will be awakened! How they are going to apply the new management tool to maximize profit through segmentation strategy . Of course the bottom line GOP will be sustained!

Management will look into various tools to realize and understand how to manage their own facility by time management, workforce and specific service offering to cater to each market needs while avoiding the unfavorable customer’s experiences.




Until next time
Thanan Apivantanaporn