Tag Archives: Marriott

Those happy dreams

We all have them and I just had mine (not the one with Laura Vandervoort). The dream started with me attending some gameshow with Amazon bigwigs. I personally handed Phil Spencer a gold inlaid wooden spoon with the message that I try to keep my word. That morning Amazon with the Luna surpassed 75 million consoles (plus subscriptions) sold, Microsoft is now deal last in the gaming industry (nice achievement for the strongest console in the world), apparently big hardware isn’t everything. But the dream moved on, I was talking to His Excellency Ahmed Al-Khateeb, Minister of tourism for Saudi Arabia. 

I was explaining to him (and to myself) a new approach to customer service solutions and I called it the Complete Customer Service Solution System (C2S3 for short). The image is more for myself so I can recall it later. A complete system based on foundations of Nice CX One but with a massive difference, the organisations were no longer central here, they are still the centre or axial in it all, but the central setting becomes the tourist. A system no one ever considered (or off hand rejected), but in 2025-2030 the tourist, the customer needs to be the central hub in everything. Places like Saudi Arabia and the UAE need an evolved customer solution system because that is how they remain top player. The larger players (like Hilton and Marriott) will get on board fast, because they will see the benefit there, then the them parks and soon thereafter they all want to join such a system and in the cloud you can find a person fast. You see, the biggest drain on any vacation is time loss, people take it for granted, but what happens when one or two players throw that overboard and redo the whole thing? What happens when the total vacation has 0.1% logistics at best? You go through the mill in the Airport, at the hotel, at attractions, at resorts. So what if the airport is the start, but it is replicated to other places as soon as you go through gate one? What happens when you are in a new place and you do not get lost, because the tag you have tells you where you are and where you are supposed to go? Now consider that around the world, it is estimated that over one million young people are reported missing every year. Don’t be afraid, will over 95% is found within a day. Now consider this new system where a child is found within the hour, optionally quicker. The loss of stress in almost unimaginable. And it is not merely loss that is removed. It is that places will hand out badges with RFID, the RFID records your achievements and records what you have done, so the tourist will have a record on him that he can look at. 2 days of skiing, 12 slopes, they keep a progression record and a record of places. In Japan they have a booklet where you can stamp where you have been and every place has its own stamp. Now consider that digital record, connect that to a digital library and the tourist can make a small photo album with their own images and insert their digital records of places they have visited. They can make it anywhere in the world and it can remain private. A system where the foundation is Arrival and Departure, it does not matter where you go from there. You could visit as a family the Almasaa Cafe in Riyadh, wouldn’t it be nice to insert a digital sticker in your album when you were there with personal pictures? The list goes on and a system like that isn’t build overnight, but it has the merit that for once the tourist is the centrepiece of it all (some claim that, but it is their sales system). A setting where the customer solution is build and designed around the customer. In 43 years I have never seen such a system, have you? 

Now that Saudi Arabia and the United Arab Emirates are about to be the pole position players in tourism, such a system would solve several items. They would also imply that they are about to stay at the top position until others catch on, and after the SEC blunder I saw yesterday some players will be behind these two players for years to come. 

Just a thought, enjoy Friday in 24 hours.

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Filed under Finance, IT, Science, Tourism

As the belt tightens

We have seen the expression, but did we consider the impact against the long game? Today two articles passed me by. The first one comes from Arab News (at https://www.arabnews.com/node/2380901/saudi-arabia) where we see ‘Saudi Arabia granted China’s Approved Destination Status’ with the added “Saudi Arabia was officially granted Approved Destination Status by China on Tuesday, allowing Chinese citizens to travel to the Kingdom on group tours, the Saudi Press Agency reported.” You might think ‘So what?’ and that is fine. Yet consider that Chinese tourists “made 155 million outbound trips, and spent a cumulative $245 billion on outbound tourism”, now this is on their global trips. Yet 5 years ago Saudi Arabia was not even a blip on the tourism radar. So, now we see the setting where it might start at a mere 10%, but this could grow a lot further. Consider that tourism suffers a $24,500,000,000 reduced income. That puts several players in hot water. Some are still recuperating from the Covid issue. Some will drown. Then we get the impact of lessened tourism all over Europe. I reckon that London will have no trouble, as does Paris. Yet several locations will feel that impact, as will some places in the US and in light of the BRICS setting, certain group travel organisations in China will undoubtedly promote Saudi Arabia as the destination to go to in 2024 and 2025. I reckon (pure speculation) that the rest of the world will lose at least 20% in the first two years and if you read up on some of the media, that is not good news. The second article comes from design boom (at https://www.designboom.com/architecture/marriott-first-w-hotel-saudi-arabia-neom-trojena-09-26-2023/). There we see ‘Marriott’s first W hotel in Saudi Arabia to debut within NEOM trojena’s futuristic ski resort’ that implies that larger players see this as the new tourist place and they want in. So consider that this happens 5 years in advance. The setting gives us the idea that this will not be a small hotel, or a simple cheap one. Saudi Arabia is setting its goals on being the hub for a lot of places and reasons and now tourism is added to their arsenal. You still think I was wrong all those years? As things go, when this gets off the ground, we see a new setting where Saudi Arabia is a possible contender for the Winter Olympics in 2040, I do not think they will have won over enough hearts for 2036, but 2040 is a decent time when the winter olympics could come to Saudi Arabia. The one place where the Winter Olympics would never have gotten to is now the place where it might end. As such how much more revenue is lost by all others? The long play is seemingly panning out perfectly for Saudi Arabia. 

Could I be wrong?
Of course I could, but consider the players vying to get in there, consider the timeline that Saudi Arabia so far has maintained and consider the losses that the US and the EU have had in the last two years alone and the losses they stand to get slapped with over the next three years. When you add it all up it implies that the EU and US will have to tighten the belt by a lot merely to get by and that is before you realise that the US will have budget problems nearly every year for the next 5 years, from that point it will continue on a non-stop trip from bad to worse year after year. We have been given the following quote for some time now “The kingdom’s Vision 2030 goals include enhancing the Saudi private sector to create a vibrant society, establishing a thriving economy via diversification, and investing in ways to position Saudi Arabia for global trade and competition.” And that is exactly what is happening in many fields including tourism. Before you listen to the other people making claims that it is a small hiccup at best. Consider your OWN position. How many holidays have you had? How many trips could you afford? For a lot of us once a year is as good as it gets and that is the same for China, as such a large group will sign up for a Saudi Trip, of that I have no doubt and in that stage as billions go towards Saudi Arabia, they will not go to either Europe or America. I reckon that the moment Saudi Arabia starts its own version of Las Vegas the tourism pain will set in in America and the revenue streams go down even furthers. And that is before you consider that there is every chance that  China will offer a group setting for the Saudi options and add 1-2 days in Dubai as well. I reckon that over the next 3 years that belt will tighten more and more and it will end plenty of businesses all over the US and Europe. I reckon that Australia will feel that pinch too. We are given “Chinese tourists spent $12.4 billion while in Australia. 677,000 visitors came to Australia for holiday purposes.” It might be a mere 10%, but that already means that Australia will miss out on well over a billion in revenue. So how many in places like Sydney will feel the pinch then? Sydney might be decently safe, but a speculated loss of 10% (if it is that small) will impact Australian lives all over the place.

Enjoy the day and consider where you were going next year for the holidays. 

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