The Unfiltered Truth About the Hospitality Industry
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Running a hotel group is no small feat. As reflected in the words of a 72-year-old veteran of the industry, “The worst business to be in is hospitality.” Speaking candidly at the recent International Conference on Cohesive Societies in Singapore, he shared insights from the trenches of a 90-hotel global empire that stretches from the sun-kissed shores of Cuba to the urban spirit of Japan and the rich landscapes of Saudi Arabia.
What does it take to lead such a massive enterprise? “It is so management-intensive. It requires time, commitment to people, and it’s incredibly vulnerable to event risks,” he explained. Have you ever considered what goes into running a hotel? It’s more than just providing a room for the night; it’s a complex web of customer service, operational logistics, and strategic foresight.
Event Risk: A Constant Concern
The hospitality industry is often at the mercy of factors beyond its control. Take COVID-19, for example, a health disaster that decimated travel plans worldwide. Think about natural disasters—earthquakes, hurricanes, floods—that can strike with little warning. Then there are the political events that can change the landscape of travel overnight. “So many events can just put travel to a halt,” he said, capturing the precarious balance of this business.
Imagine managing a hotel during a pandemic. In July 2020, he revealed in an interview with CNBC that, facing the unavoidable downturn, he took a 100% pay cut and up to 15% of the global workforce had to be laid off. It was a harsh reality for many. But the true test of a leader is how they respond to adversity. How do you navigate a storm when the winds are so fierce?”
Fast forward to January 2024; the Banyan Group announced that its performance in 2023 had exceeded pre-pandemic metrics across various regional markets. Talk about resilience! Wouldn’t you agree that this turnaround speaks volumes about the power of determination?
From Journalism to Hospitality
Ho’s career didn’t start in luxury hotels; he began as a journalist. In 1981, when his father suffered a stroke, he took the reins of the family business, the Wah Chang Group. What a significant shift! It must have been a whirlwind of emotions to transition from storytelling to hotel management.
In 1994, he marked a pivotal moment by opening the first Banyan Tree resort in Phuket. Can you imagine converting an abandoned tin mine into a luxurious escape? The vision and effort that must have taken are beyond commendable.
Lessons from Leadership
As Ho reflected on his journey, he shared two invaluable lessons he learned about running a luxury hotel chain. “Getting the corporate culture right is so important because people are so important,” he emphasized. This assertion reminds us that behind every exceptional hotel experience are dedicated individuals striving for excellence.
Consider this: when you stay at a hotel and have ten positive experiences, you might walk away feeling satisfied. However, a single mistake can linger in your mind. “One screw-up, and you will never forget it. People are not forgiving about screw-ups,” he added. Wouldn’t you agree that a memorable experience stems largely from the people who create it?
To tackle errors head-on, Ho fosters an environment that allows for learning. He strikes a balance between minimizing mistakes and giving his staff the freedom to grow. It’s a delicate act that requires encouragement and support. How often do we create such environments in our own workplaces?
Another key takeaway from Ho’s journey is the importance of financial resilience. “I also learned to be very resilient financially because disasters will always happen,” he imparted. The hospitality industry is filled with challenges, but it can also be immensely rewarding. “It’s a difficult industry, but it’s fun,” he concluded, encapsulating a philosophy that resonates with many who take the plunge into the unpredictable waters of business.
In a world that often emphasizes perfection, Ho stands as a testament to the beauty of embracing imperfection. So, the next time you check into a hotel, remember that behind those walls are dedicated individuals striving to offer you a memorable experience—even if it isn’t always flawless.
Edited By Ali Musa
Axadle Times International – Monitoring
