LOSING THE BUSINESS BATTLE 

Many North American manufacturers have already lost the battle to maintain a succesful business.

Unless rapid, radical and massive change occurs in training and attitudes of management and staff in the travel, postal, courier and other service industries on this continent, a similar fate is inevitable. The Japanese and other Asians will move in, take over and thrive. Because they understand good attitude and good service.

Many segments of the travel industry are run for the convenience of management and staff -- not for the guests. Training is often inadequate if not non-existent. Millions are spent for physical plant and equipment, and little time and money are dedicated to training.

Want to know how it feels to have markets swept out from under you? Ask North American TV, VCR, microchip, steel, tire, machine tool and automotive executives, who once held 80 percent of the world markets and lost a full third (the profitable portion) within a few years. If tourism management thinks that poor service, inattention to detail and untrained, uncaring front-line staff go unnoticed, death will come on swift wings!

In the recent past the busiest players from the Orient have been the Japanese. Expect the second wave shortly. The release of substantial funds for overseas investment in tourism (Asians are more aware of tourism growth potential than North Americans and are now doing most of the travelling) by the Korean and Taiwanese governments is but the first step. And, they have the money to carry through what they start. The four tigers, Hong Kong, Taiwan, Singapore and South Korea (who collectively comprise less than 70 percent of the population of Japan) will export more goods and services this year than Japan. Taiwan, with 90 BILLION US dollars (the second highest cash and gold reserves in the world), has just released two billion for overseas investment. The Taiwanese, unlike the Japanese who syndicate and make large purchases, buy small, but together they have large clout and they make many, many such deals.

Why have the Japanese recently been buying many Canadian and Californian hotels and restaurants? Because they see the poor level of general service, realize that they can afford to pay a premium now (before present owners wake up) and that by injecting quality Asian service, obtain a much higher occupancy rate to quickly recoup their "generous" investment. Asians acknowledge that telephone operators, reception clerks, waiters, bellhops, concierges and chamber maids are far more important than the general manager to the average guest.

Within a decade, all successful surviving companies will be training and retraining staff one full day a week.

Good management should be seen and not heard.

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