Lessons From Sars, Lessons For The Future ? | by Bert van Walbeek
Now that the masks are falling, hotel operations are getting back to “normal” and the Marketing and Sales employees have no more excuses for lack of results, it is time to lean back (or forwards ) and to reflect on the lessons learned.
Now that the masks are falling, hotel operations are getting back to “normal” and the Marketing and Sales employees have no more excuses for lack of results, it is time to lean back (or forwards ) and to reflect on the lessons learned.
- In this age, which believes that there is a short-cut to everything, the greatest lesson to be learned is that the most difficult way is, in the long run, the easiest.
Lessons before ……
Only a few marketing experts paid attention to the results of a global Travel Monitor Survey conducted by Munich-based research company IPK International.
That research covers 400,000 interviews in Europe and nearly one million world-wide to survey individual travel behavior, e.g., travel destinations, organization, purpose of trip, spending, activities, etc. ( for further details: www.ipkinternational.com )
The following points indicate the result and cover important global travel trends:
- Considerable worries about security
- More domestic holidays
- More holidays in neighboring countries
- Special boom for “Euroland Inbound”
- Significantly fewer overseas trips
- Significantly fewer business trips
- Growth noted particularly in the Eastern Hemisphere
- Less traditional plane trips
- Explosion in low-cost demand
- Significantly more car and bus trips
- Even more last-minute bookings
- Even stronger growth in online travel bookings
- Worldwide “run” on more value for less money
The fact that there were 13 points already shows lack of luck, as that is the unlucky number in the world this columnist started, in a never ending process, to grow up !
It is clear from these points that the Hospitality Industry in Asia was already living on borrowed time, a fascinating fact that few Hoteliers seem to be aware of these trends and ready to learn their lessons from these findings, will they now ?
The lesson learned :
- In business there are always crises on the horizon,
- Where there is no vision, business will perish, no matter what !
Lessons during ……
Once “ SARS hit the fan ” it became painstakingly clear that the cooperation between the private and public industry, which is essential in overcoming challenges of this magnitude, is still far “below par”.
Lack of leadership became obvious after the Ministers of Health and then the Head of State were meeting in urgency and exchanging information, including their mobile telephone numbers !
Tourism Ministers waited “ to first grasp the real impact “ and Tourism Association leaders, seen at each industry cocktail party, disappeared, not only because there were no more cocktail parties, and their mobile numbers are “confidential”.
The media onslaught that followed will be the subject of many academic case studies, fact is that the world’s largest industry had no common voice and was unable to give a balancing angle to the sensationalistic reporting.
The result was fear and, as Alfred Hitchcock demonstrated time and time again, there is no terror in a bang, only in the anticipation of it.
It was not death, but the anticipation that choked-up our business, and fear of taking the wrong actions stifled engagement by most of our not-so-fearless leaders !
The first brave recovery movement was the decision by Executive Committee members of PATA to hold their Annual Meeting as planned in Bali, of course under strict, but reasonable, safety and security cover. More than 900 brave participants attended, learned to live with those protection measures and wondered afterwards about their unwarranted worries.
The second series of recovery action was accomplished by private industry senior executives in Vietnam, Hong Kong and Singapore, who took the lead and, in cooperation with their local tourism authorities, starting to do their homework and prepare for “life after SARS”.
The lesson learned :
- In business there are always crises on the horizon,
- Fatalism is the lazy man’s way of accepting the avoidable.
Lessons after …….
“Back to normal” is the strategy of the month and while in Singapore “ The Cool Team” “Steps Out” and says ” Can Lah “, in Vietnam the industry is going “ Back to the Future”, in Hong Kong the word “ Welcome ” comes back in vogue and “ Be Our Guest ” is combined with “ Smile A Real Smile “, the Phoenix has problem rising from the ashes……..
The Industry Leaders surfaced, Tourism Ministers are saying “ We are the first country that will be out of the crisis “and SARS jokes are flowing freely.
Only few people seem to realize that nothing will come back to normal and that life has changed forever.
New parameters for leadership will be coming in place, whether in the public or private sectors, the criteria, terms conditions and methods of leadership need to be put in place strong, effective, honest and creative people, and then allows them to get on with the job.
Only 2 major hotel chains presently seem to have extensive and detailed Crisis Management Manuals in place, most hoteliers asked recently about their CM plans refer to the “it won’t happen to me” approach.
Therefore it will sadly have to be, once more, the customers, which like with the environmental standards, will “force” the hotel industry to adapt strict safety and security measures and to show proof of having done so during the inspections and in the contracts.
The Wholesale Buyers, Meeting Planners, Convention Managers, Incentive Arrangers and Exhibition Organizers will now start demanding Risk and Crisis Management, as the Safety and Security of their participants will become the number 1 priority !
No proof of Crisis Prevention Management, no business, despite low(er) rates ………
The lesson to be learned :
- In business there will always be crises on the horizon,
- Prevention is better than cure, start a crisis prevention committee
Lessons for the future ……
A few years ago Shell launched a series of reports on how the global economic, political and environmental picture would evolve and influence the results of their organization in the medium and long-term future.
The reports were no longer referred to as ‘forecasts’ but ‘scenarios’. It was noted that ‘forecasts’ suggested a definitive outcome. However, in this turbulent world, the word ‘scenarios’ is more appropriate because it is based on “what-if” variables and required responses based on unpredictable and unforeseen circumstances.
“What-if” is the next question, which in most scenarios in Asia can be answered by individual organizations, however terrorist, epidemic and economic calamity responses must be thought through regionally and jointly.
What if SARS resurfaces in the coming autumn, what if the North Korean situation gets “out of hand” ?
It may seem tempting for certain countries and/or destinations to attempt it alone, to the disadvantage of their competitors. Our latest experience with SARS clearly shows that destinations are interdependent in times of crisis, 80 % of all Asia’s destinations did not have one case of SARS, but suffered as much as the infected areas.
Destination Managers and Governmental Tourism Authorities will have to cooperate with all stakeholders so that we all can back on the road to durable expansion. This will need broadminded and well-educated leaders, that can think “outside of the 9 dots” and then take action to achieve a degree of influence corresponding with the economic impact that our Industry apparently has !
The lesson to be learned :
- In business there will always be crises on the horizon,
- Co-opetition, a combination of cooperation and competition, is the only solution
Conclusion :
- Learning the above lessons however still leaves one more line of reasoning to learn, the most difficult question and the most avoided issue by our Hospitality Industry, as sourced from the Travel Impact Newsletter :
“ Do we take a stand ? “
Whether as a Nation, a Destination, an Association or an Organization, the industry’s voice needs to be heard on wider political, social and economic issues.
Ours is an industry of industries and we cannot survive, leave aside thrive in isolation. So far, it has sought partnerships with other industry players but these are all business partners.
It needs to forge stronger links with civil society, with good peace movements, moderate religious leaders and non-governmental organizations who can play a major check-and-balance role in curbing some of its excesses and head off a clash of civilizations.
These movements can in turn benefit from our financial support. If our industry really wants to build peace, it will need to build stronger linkages with peacemakers.
As mentioned in the beginning, the greatest lesson to be learned is that the most difficult way is, in the long run, the easiest.
Dear Hospitality Industry Leaders, Dear Owners, Dear General Managers, please no more short-cuts, now is the time to show the executive and middle management, as well as the employees that suffered most in the past crises, the new way of crisis prevention and/or control !
Please meet soon, before it will be too late, William Shakespeare said it the clearest :
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