Mt.Dhaulagari

Annapurna Range Nepal

Beautiful Mountain of Nepal 

Pokhara: Believed to be one of the most beautiful place on Earth (Nepal)

   

INTROSPECTION OF HOTEL INDUSTRY IN NEPAL 2015

Despite ample of opportunity industry which is overrated at all times comes to us in pathetic shape never like before. There were times when this industry used to boast its blissful status with less than half the tourists compared to now visited Nepal. At present earthquake that divested the industry and an Indian blockade that took the whole lots of hope in despair does not indicate any relevance to the management practice that we have been following at present.

What have we done? It is indeed always very easy to pin point at somebody else, politics, leadership, disaster, violence, unionism, whatever may be our answer that we may declare appropriate never solve challenges that we are facing at present. As a business, does this sector even have sufficient grooming to be called an Industry? What in the world will anyone do without diligent and competent human resource than to linger? When will we realize the fact? Of course employee turnover is high but is that the problem without solution? Yes the society has upgraded itself to 21^st century but have we ourselves seen problem from those prospective of new generation? How can we claim that the system established during sixties and seventies should still function?

Veterans of this country found it important to establish this sector as an industry much before many nations in the region and around the globe were not even close to the idea, however achievement that we have made all these years is nothing more than “a bubbles of reputation” nothing stable nor countable.

Lack of transformation in employee dose not only mean increase in salary, working environment and hours, holidays and facilities, job satisfaction, performance and appraisals these are only few components that has distracted newcomers in the industry.

Operational issues just provides a gloomy picture.

Human Resource: Nepalese people are famous all around the globe leading this industry except in their own country. Looking into details it’s not surprising to find many doing good as mid-line managers and even general managers of star hotels around the world. Sadly there are only countable managers that are capable of holding the post of general managers in Nepalese star hotels. Situation in this industry is beyond managerial analysis and is funny most of the time.

“Students who go to Five Star Hotel for their research gets the very humble answer almost every time:  We would love to help you but these issues are something we can’t address this time or there are no one to come into your contact so we can’t help you”.

Why these reactions are funny is primarily those who reply are most of the middle line managers and don’t exactly know what research mean to their organization and are afraid that their mere errors will be spotted or even the managers with higher education don’t have the confidence to understand what suggestions and feedback they might come across or most importantly what they are afraid is that the researcher might come across those loopholes and their deceitful activities which they have maintained with local government authorities. While doing so what this industry really is missing, is the billion dollar idea and suggestions that every new and young researcher brings to this industry and revive the worst case scenario to their own rescue and advantage. If competitive corporate culture was in existence these industry would have hired researcher to improve their weakness and improve themselves and now even when students on their own purpose come across them to find their rooms to improve and support the industry people on these sector not only show ignorance but also find it useless activity and are avoided most of the time.

Contemporary situation indicates best manpower are being consumed by banks and are screening significant progress in the region, however hospitality industry is facing massive brain drain and are unable to compete with those regions in the middle east which either don’t have much attractive pay scale. Looking at the reason beyond the cause reflects massive mismanagement within the industry. Hotels in Nepal does not have any trend nor culture to overcome employee turnover and the industrialists are happy thinking that they are able to exploit maximum from their employees unable to understand the fact that the overworked employee are counterproductive for the organization.

Hotel industry unable to upgrade its working culture and environment is facing massive ignorance from the prospective candidates produced from academic institution in the recent years. Traditional and classical working environment and culture in Nepal has compelled many diligent manpower to look for better alternatives in the global market and Nepalese hotels never come to their priority list. Solution is not only the payment, primarily hotel as an organization is unable to present the glamour that this industry needs, working hrs are terribly mismanaged, behavior are below standards as many employee are found to be overworking and management is busy fishing in the blurry atmosphere.

No matter how bleak this article must have been, if taken positively there are ample of Bright-side that can lead us to prosperity. If we are at worst condition due to various reasons there is no better opportunity than this to upgrade our systems and working environment to entire new level. 

Selling Experiences in Hospitality

“Athithi Devo Bhawa” This must have been the very first brand image that Nepal wanted to promote in tourism through Sanskrit axiom during seventies and eighties. Though never official this brand was quite popular and is immensely used among fellow entrepreneurs and professionals even today. What does Athithi Devo Bhawa indicate or mean can be a long discussion. However leaving all philosophical details behind it just means treatment to guests like gods. Why are they gods? Why should we treat them as goods, can again entertain unending paraphrasing for clarifications. Looking at our cultural practices it wasn’t wrong at any point to promote what we have. It gave ethical and moral empowerment to the industry and of course a good thought to go along with. Since the terminology is Sanskrit it is commonly used in Hindu philosophy giving way out to embrace ethics into practice.

Impressions were good during those times in seventies and eighties. Tourism was at its move looking forward to expand even when it was distinctly not clear on its course. Moments of truths and happiness were plentiful despite lots of hurdles an inaccessibility seen in the industry. Limited hotels and luxury that this industry offered had lots of positive word of a mouth spread among its potential clients which at the time was only the major marketing tool to promote Nepalese hospitality industry to the outer world. Though many things were not up to the requirement at least available facilities were up to the standard.

After 1990’s like all the industry tourism too was there to face all the ups and downs bestowed by the time.  Initial political practices after 90’s and immaturity did contribute to destabilize this industry without anyone’s notice. People’s revolution of maoist did add more to worsen the situation of hospitality industry which was looking forward to move ahead. People at the time were not conscious and aware enough to realize and calculate the loss that these political hurdles brought to the industry.

Introspection of all these years after 1990’s can give us multiple thoughts and ideology on the direction we have undertaken from the tourism perspective. It’s been twenty six years that we are in the process to make Nepal a better nation through peoples participation. Well there is nothing wrong with that, however if we account all the Nepal Bandha, Chakka jam, haadtal, and other bitter experience in total we have created pretty much nuisance in this country to spread enough obstacles for the hospitality Industry. This also means for all these years we have created enough negative impression about our country. The generation which collected best of Nepal in the past do not exist at present vibrant market to spared goodness of Nepal and help us grow with our tourism economy. Those people who visited this country for all these years and could have talked about their good memories are now talking about their poor experience during their stay. It is not a fluke when you meet people abroad they do praise the beauty of Nepal as well as share their bad experience that they have in their mind in a very positive way. “I did stay in your five star hotel and it had a good power back up” dose not only indicate the great achievement of the managerial expertise but also indicates that the person had awkward experience being in the country where we had terrible power cuts in the city and did not meet his expectations. Similarly the chairman of famous Blue Elephant chain restaurant in one of his conversations mention about the garbage problems that he had seen during his stay in Nepal. These are just few representative examples to imagine of how many and to what extent we have lost our potentiality and possibilities that could have possibly been earned in the industry. What are we selling now in Nepal? Of course the world renowned heritage and natural beauty are there but in case of life time experience as compliment, and beautiful moments of truth that we expected our tourists to share to their countrymen is what we have failed to cash. What matters most in the present world to the tourist is not the commodities, goods nor service, in total it matters how good experience tourist is able to carry along with them. Yes sometimes all the chaos and disorder too can be an experience for the foreigner to understand the country like ours, however those experience are not sellable and are not productive enough for future references.

Gone are those days when one used to sell their commodities, goods and services. Now the era has already taken a long leap towards experience. The world is moving towards experience economy and is already much ahead in the global picture. There were times when one used to organize a wedding party at home and was helped by family members and friends, it used to be cheap and reasonable later commodification emerged, people looked for tent, cooks and few materials to outsource to complete their occasions and now we have Party Palaces where you pay fixed amount of money and get everything ready along with few complements being able to collect all the fun you need.

Who may explain better than those who have enjoyed Disneyland as a life time experience rather than just being in the business property? This does not necessarily mean that everyone needs to visit once. Nepal collectively is more than any business offered to anyone in any part of the world. Once I came across a person who was sharing his experience about his own incident as a tourist guide. He had to take the tourist for a trek in the mountain region and had unfortunately failed to guide him as he had an urgent call from his home. He decided to take the tourist in his house where his wife was prepared to give a birth to a child and was unable to attend the barren field to grow crops. Confused and in trouble the guide used the tourist to plough the field where bulls were used and involved him in his housework which was highly unethical but not illegal as we have no such laws to address the issue. He was prepared to face the worst at his travel agency. After couple of days of work he collected the guts to ask the tourist about the stay. To his surprise the tourist was more than happy and was excited about what he had just experienced. The tips and his remuneration was not only rewarding but brought his wild experiment to a new level of insight. This was not intentional nor was it supposed to happen. Many of these similar incident collectively has given a new start to creative thoughts and practices in Nepal. Inviting tourists to plant rice during monsoon, giving a wash to the elephants in Chitwan, developing the concept of homestay in Nepal are just the few commercialized experience among many that we can possibly develop. These practices that has been unknowingly initiated has shown us the possibilities of untapped opportunities that we can bring it forward to commercialize. This paves the way forward for us to conduct more and more research in the days to come and help nation to really boost its economy through creating incredible experiences in Nepal.

Recent research carried out by the Route Happy indicates that the travelers in UK are happier to travel in the airlines with multiple features rather than in the low-cost airlines with less facilities. Another research conducted on tripadvisor in the reasons behind the selection of best destination, amazing facts were revealed. It was found out that the selection of new destinations were rather based on their inquisitiveness for new experiences. That was the reason why more new destinations were getting popular rather than the traditional destinations of Europe and America. Harvard Business Review during 1998 had already written various articles based on experience economy, however the impact is realized now in the global market. Realizing the fact about experience, Hotels in Los Vegas Casino used the voice record of various stars who had performed in the hotel to give a wakeup call to provide new life time experience and it did work very good. Hospitality globally has already created a long epic on these professionalism. However in the context to Nepal we do have experiences that can be commercialized, abundance among various ethnic culture and society.

Experience that we can create with accessibility, product and service in itself is a powerful marketing tool to brand Nepal as powerful source destination. Sometimes doing nothing in comparison to trying everything can be a powerful message to promote tourism. What is doing nothing can be generalized in terms of not organizing Banda Chakka Jam and haadtal and other similar events that can damage our brand image rather than trying to do lots of things? Nepal a poor economy if only can remain stable, will achieve an unachievable goals in hospitality industry without any new investments. Concerned stake holders need to realize this in time. We don’t need any new investment to share our cultural practices in to touristic experience. Most importantly keeping Nepal peaceful, clean, secured and pristine does not need any new investment. Only the strong political commitment to keep tourism away from all the possible disturbances can do more than a billion dollar investment to enhance hospitality industry in the days to come.

Experience that Nepal offers is beyond ones imagination. 

Visiting durbar square in Kathmandu is not only to visit the historical monuments but is to enjoy live museum where one can experience primeval practices still helping people in the location to live their life. The beauty of the destination is beyond what it offers as heritage sites. The mystery behind tourists increasing in Nepal despite all these difficulties and discomfort is not because we have only monuments and sites, of course they do play a significant role however the experience that one gets beyond what is expected is the major driving factor.

It’s not amazing to find a stall at floating market in Bangkok where after paying twenty baht you can feed a goat. Well in Nepal too one can feed fish in Siddhipokhari and many other similar sites and can also feed pigeon in durbar square sites for free. “Honey hunter” chapter of Nepal did not only amazed the world but also proved the fact unanimously that the local experience from various ethnic group too can be a very strong sellable experience to offer internationally. What we all need to do as said earlier is to be able to find out our pristine practices and trends that can possible be accounted for the growth of national economy.

Will we be able to always sell the same experience?  We are looking forward to open new trekking routes and are desperate for it? Side by side are we able to introduce new product for memorable experience? If we are not able to design memorable experience on our product and are looking forward to continue similar experience we may not be serving anything new on the table. So just willing to open a new trekking route because the old one is having less repeated guest may not offer sustainable solutions to the business. It will not be wise enough to expect same tourist to visit similar trekking routs again and again.

Let’s for an example imagine that if a tourist in the trekking will have night halt in various hotels themed under various culture, or will pay separately for the natural hot water springs and water falls, goes feeding yaks after paying, pay separately for using animal rides, get culturally dressed to various ethnic groups may not only contribute to the direct income of the people but also will provide memorable experience that one can share with their circles.

What we need to do more in the days to come is, find out more tradable opportunities from the indigenous practices so that people can really feel the diversification of Nepal not only in words but also in practice.

References

Anderson, T.D. (2007). The Tourist in the Experience Economy. (Sweden: Goteborg University).

Gilmore. H.J., and B.J. Pine II (2002). “Differentiating Hospitality Operations via Experiences: Why Selling service is not enough”. Cornell Hotel and Restaurant Administration Quarterly, 43 (3):87-96.

Khanal, R. (2001). Democracy in Nepal: Challenges and Prospects. Kathmandu, Smriti Books

Pine, B.J. II., and H.J. Gilmore (1998). Welcome to the Experience Economy. Harvard Business Review.

Sharma, P.R. (1983). “Nepali Culture and Society: A Historical Perspective”. Contribution to Nepalese Studies. 82(10), 1-2.

http://welcomenepal.com/promotional/press-release  

Dhulikhel

Best of Dhulikhel

Innovative Trend in Hospitality Business

Research Summary

After the historic achievement with more than one billion tourists travelling in 2012 international tourists has continued its momentum with five percent growth in 2013 and so on. The increase in accessibility, disposable income and most importantly the rise of middle class travelers from BRIC (Brazil, Russia, India and China) and other growing nations has undoubtedly made this industry more vibrant never like before.

European Travel Trend: Despite economic difficulties Europeans did come up with good tourism prospects. Destinations in Europe proved to be a strong factor. Traditional destinations in Europe are still popular among fresh tourists. Emerging Russia is temporarily limited to domestic tourism as ruble lost its purchasing capacity due to political changes in 2015.

Asian Travel Trend: Holidays are the clear reason for Chinese travelers among youngsters who have high spending trends. Overwhelming 70% Chinese prefer traditional destination in groups whereas new emerging educated urban travelers prefer individual experience. Domestic travelling trend in India is compelling its domestic market to move ahead.

America's Travel Trend: South Americans have once again proved to be in larger size in terms of market and are predicated accordingly in 2014.North Americans preferred long International holidays with €1455 average cost per trip. South Americans proved to be the booming market as they kept travelling and spending.

Youth Travel Trend: Young people around the world are travelling more spending more and exploring new horizons. According to UNWTO youth travel generated $182 billion in 2012 and is expected to rise with average spending of $ 910 per trip.

Low Cost Accommodation: World Travel Monitor forum in Pisa (2013) indicated low cost beds and low cost flights on rise as hospitality market is splitting into top end and bottom end. People have come down from luxury to affordability. Tendency to look for classical facilities is becoming limited and new travelers are looking for basic facilities and the trend is increasing. Increment in level of good service and growing competition is adding flavor to it.

Africa: Africa is on gradual improvement with South Africans paving the way out. Rise in outbound travel with 6-9% growth Africa too is showing the reflection of economic growth in the recent years (Buck, Ruetz, & Freitag, 2013).    

Market Trend

World travel market in 2013 did come up with different and changing perception of hospitality trends in global practices in comparison to that of traditional understanding. PANKs ‘Professional Aunt, No Kids’ normally reflecting childless women traveling in Americas is increasing.

UK overview indicates that the airlines customers are happy with multiple facilities in the airlines rather than in price. Studies show people are happier for longer when they spend money on experiences.

European where they seek cheap traveling options is now with "Pear to Pear" traveling option, it is believed growing online commerce has played significant role on it. This sharing economy offers them lower price than ever before. “The future of peer-to-peer holiday rentals really depends on legislation, but I believe that there are very good prospects. Hosts earn extra money for their pocket and guests get more value from their travel dollar, so it is an attractive proposition.”

What can an internet and mobile do in our lives, we are yet to explore but whatever changes it has come up with so far has undoubtedly revolutionary effect in customer relationship. Travel technology in the days ahead will undoubtedly create the necessity of personalized service and will definitely take professionalism to limits.

Despite ongoing unrest in the Middle East there has been a visible recovery in market trend. Luxury brands are important, and high-end experiences offering comfort and personalized entertainment are favored among middle eastern consumers however the presence of Jazeera Airways with low cost model cancelling the "Pay for Food" system and introducing duty free on board for business class has lured economy customer from traditional airlines."

The big five with your little one" is a growing saying in African safari business. This famous saying not only includes children in the tourism business but also has significantly attracted grandparents in the rewarding offers from South Africa and other counterparts (World Travel Market [WTM], 2013).

The growth of family members from India and China in safari will ask more preparation and expansion from the host nations in the days ahead so grounding is to be done accordingly.

Industry sources predict China will become the second largest global cruise market after the US by 2017. The best part of Indian business is the growth seen in the domestic low cost flight business. India has seen significant growth in online marketing and the neighboring destination in low cost has seen some growth. New internet users, social media and mobile application have revolutionized the travel scene (WTM, 2013).

Existing Trend 

Destination Competitiveness: “Competitive strategy is the search for a favorable competitive position in an industry. It aims to establish a profitable and sustainable position against the forces that determine industry competition”

Millions of valuable reviews and opinions were consolidated by the world's largest website tripadvisor.com (2014) before it declared travelers "Choice Destinations". Istanbul climbed to first position leaving behind eleven other destinations on the competition to be the most preferred destination in the world. Every year there are slight or amazing changes. However there are certain common elements that signifies the hard work behind its success.

Restaurants: Restaurant is not just a food consuming location anymore but now it is a way of life for people to spend quality time. Restaurant business is more like having inclusive experience of all phenomenon enact to provide experience of life where every customers can count on their best memories.

Antique shops and used-book stores: Plentiful antique shops and cheap used-book stores has too added flavor on most popular cities for the tourists. What do they want to buy is not the question but how can any nation add revenue through this strategy can be learnt well from the experience of Istanbul.

Pedestrian's art: Walking on the street for the tourists is not just the reason to reach from one place to other location. Beauty is added when principally pedestrians get lots of fun while walking. It can come in different forms; world's most popular cities carry all their uniqueness right in their paths. Whether it’s Thailand with garden restaurants or Paris where every step are an experience all the resilient cause are allocated as a mystery of art.

Scenic Views: There is no doubt that best scenic views must be preserved and can be commercialized. Weather you take one to the roof top restaurant or to a beautiful scenic location it must always add aroma to what one takes. The understanding value of scenic views in room sales is not a new chapter in hotel and travel industry, however developing similar ability in small entrepreneurship to a café, restaurant, and other similar business undoubtedly has added value in global business.

Street food Culture: Every country and society has their own products and eating habits, when those are exhibited in professional manner to lure tourists there is no doubt that it will indeed make a business culture. Successful touristic countries knowingly or unknowingly have these greatest assets as one of their dynamic factor to engage visitors.

Music and Night Life: After all tourists look for the reasons to stand on their happiness no matter how one tries to mold them on the place where they go. Most popular and visited place in the world are gifted with music and night life.  (http://www.tripadvisor.com/, 2014).

Future Trend  

Silent Travelers: It is indeed the rise of digital world that will create more online adaptation for the industry. Lots of handshake and refined communication is at the brink of extinction. Traveler can come up with his own way to travel where agencies will be expected to balance inevitable needs keeping them independent.

Business and Leisure Travel: Personnel life and professional life has come to real conflict. Business travelers tend to extend their business day adding leisure time creating huge business opportunities to concerned stakeholders. Flexibility and corporate tools needs to be reflected on reality which so far is not seen around the corner.

Curation on Priority: Intel survey (2013) reveals that the choices have overwhelmed customers as they have multiple same day deals in their gadgets so more intelligence in the system and well-targeted information can be expected in the days ahead.

Visuals in Marketing: Visuals are the new language of digital era. Social media has been driven primarily by image sharing experiences of places and attractions however there are very few tapping on these assets as their marketing tool

Smart Design on Rise: Customers are going beyond online, what they look forward is infrastructure that lets traveler’s guide themselves but are the agencies prepared accordingly. Intel Survey (2013) indicated that there’s an increased concern that “guests’ expectations are greater than the industry can keep up with.” Hoteliers know that  new technologies are the wave of  the future, but worry that ineffective implementations could detract from the guest experience by, for example, not having the staff to handle user issues.

Substandard Travel Startups Abound: Plentiful access to information has given preference to smart staff and not new products so everyone in the business is not lucky enough to have equal funds so active investment is in dilemma.

Visa Regulations: New emerging destinations in the global picture has compelled EU, and USA to transform their policies and so will continue in the days ahead as more and more competitors are yet to make their place lucrative for tourists (Ali, 2014).

Market overview may compel the market to rethink on their marketing strategy. Its survey on mobile impact show that $ 2.6 billion hotel reservation in 2011 did rise to $ 8 billion in 2013. Mobiles are growing as check in options in the hotels along with tablets helping them to reserve restaurants, get room service and housekeeping and also to check out (Intel, 2013).

Conclusion

Hospitality knows no boundary it its growth; improved infrastructures, accessibility, and new emerging economy have taken over all the hurdles that were expected to disarray industry.

Airlines have come up with alternative way of marketing. Technologies have given multiple options for the customers in regarding their selection. Even the most competitive and successful airlines have already stepped ahead in budgeted airlines and have kept themselves risk free.   

Human behavior too is changed as they kept on adjusting to new developments of civilization. So called poor countries now are in the leading position of global economy changing the picture of travel trend.

New emerging tourist destinations have proved to be the strong alternative to traditional European and American locations compelling these nations to ease visa rules.

Creativity in new destinations has brought multiple reasons for the tourists to hover around for pleasure. Means of communication and marketing has already shown the future prospects in global business. Vibrant industry is on the edge to record many historical incidents moving people from one place to another never like before in this human civilization.

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