A highly fragmented, diversified and mature market

A constantly evolving industry…

The Complexities of the hospitality in today’s world are not solely related to the changing context in which we operate in today, but they have changed over time and have become a source of concern, when managed poorly, or an opportunity of competitive advantage, when confronted and dealt with attention and an open mindset.

 “All Failure is failure to adapt, all success is successful adaption” (Max McKeown)

We need to face the operational realities in the hospitality and service industries which are currently shaping our day-to-day doings and take a strategic approach in aligning our organizations with today’s challenges and tomorrows opportunities.

The most obvious complexities that had always been inherent to the service industry include:

Labor intensiveness:

Our reliance on the people involved in the transformation process of products, such as in food and beverage. Others being the source of providing exceptional service

Quality staff:

The identification of qualified and skilled labor with an exceptional service mindset to provide for the best possible customer experience to the organization. As mentioned in another post on this site (re-shaping Air Travel on Etihad Airways The Residence), you can have the best product but if your weakest link is your staff, the best product in the world will not help you create that experience. I had also touched upon this on the Cathay Pacific Business Class post

The transient nature of the business:

There is no second chance to fill up empty rooms or unoccupied restaurant seats

The “perishability” of goods:

The financial impact of the seasonality, storage and loss of unconsumed goods

Changing variables:

The fact that we will never be able to predict tomorrow’s activity. No two days will ever be the same which can be highly penalizing on our organizations compared to any other medium-term predictability of manufacturing or production industries

Political and economic instability:

An increasingly unpredictable future activity as we have expanded and ventured beyond our frontiers into new countries, continents and cultures as well as terrorist threats

Other factors that have begun to predominantly affect our hospitality organizations:

Social and demographic change:

The speed of changing patterns and trends of consumers

Technological advancements and communication:

The incorporation of bots, the immediacy of information, the mobility of devices and their impact on how we communicate with each other (text messages, emails, online chats, etc.)


The availability of products and the artlessness of replication. In a nutshell: You discover a concept in South America, you copy and produce in Asia, you open the operation in Europe…almost tomorrow!

Social Media:

Web 2.0 and how user input, interaction and collaboration produce a new source of influence and how this reflects on organizations reputation

Market Dynamics

Mergers, acquisitions, corporate identity and an increasingly fragmented and consolidated market. Further, investor motivations impacting on local competition and its influence on customer choice and perception of value

And so…

The above non-exhaustive list should be considered as some key pointers, presented in an objective manner with the purpose of outlining the multiple priorities industry leaders will have to confront their organizations with in order to build on their competitive advantage.

You Snooze You Loose!

Through acceptance and critical review we can identify and develop our key competencies to ensure for the operational viability and sustainability of our operations. The future will hence depend on our ability to evolve and to adapt with our employees, our customers (Product & Service Innovation) and to stay connected with reality.


Have you recently conduct a critical assessment of your organizations performance?

Were you able to adapt?

Think about some situations your organization found yourself in:

  • What were the circumstances?

    • The “what’s” (what happened?)
    • The “why’s” (why did it happen?)
    • The “when’s” (when did it happen?)
    • The “how’s” (how did it happen?)
  • How did your organization react?

  • What is/was the outcome?

  • Knowing what you know today, what would you have done differently



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