What is the strategy of Portuguese Luxury Hotels with regard to meet

An exploratory study of Portuguese luxury hotel management strategy

150 improvement, 5. General Procedures, 6. Procedures-Customer, 7. Finance - were considered significant for the model. However, concerning the pre-Covid 19 long term strategy for retaining and attracting Chinese and Japanese tourists, only three components contributed to this strategy. These were the Front-office competences, Continuous improvement, and Finance.

In fact, the front-office had already taken some measures that were much appreciated by the Chinese and Japanese (being kind, helpful, proactive), and their policy of continuous improvement is important. However, these were not done specifically with the Asian Markets in mind but were aimed at other markets whose cultures are closer to European culture. Finance is directly connected to the strategic decision of whether luxury hotels want to invest in the Asian markets. As far as the Market component is concerned, the interviews confirmed that nothing or almost nothing is being done with regard to training or establishing procedures dedicated to the Asian markets.

Detailed answers to the research questions can be found in point 5.5.

151 culturally. The nostalgia “Saudade” market, fuelled by Portuguese emigrants and foreigners working in Portugal, should recover faster than other markets. There is currently no Long-Term strategy to develop the Japanese market. However, Portugal should take full advantage of its historical heritage, and stop overs from long-haul flight connections could be important to develop these markets.

5.5.2. What do Japanese travellers consider the positive and negative hotel attributes of the luxury hotels operating in Portugal? Are the preferences of the Japanese and Chinese similar or different?

The Asian Market has hitherto been seen as predominantly Chinese, but what pleases Chinese customers differs from what pleases Japanese customers. In line with the findings of Liu et al.

(2017), our study concludes that the attributes the Chinese consider more important are location, room features, facilities, and price or value for money. The Japanese put more emphasis on service items, clear processes, properly functioning room equipment with easy or clear instructions for use, a bathtub, hot water, and a bathroom designed for privacy. In short, the Japanese are more concerned about service than the Chinese are. This can be seen in the Nvivo chart in figure nº 5.3 below:

Figure nº 5.3: Bookings: Positive Wording - Japanese Versus Chinese

Source: NVivo

An exploratory study of Portuguese luxury hotel management strategy

152 Positive hotel attributes for both the Japanese and Chinese are location, staff and room, with a bathtub being important to Japanese but not the Chinese. Meanwhile, price and room comfort are more important to the Chinese than the Japanese. Negative hotel attributes are shown below in figure nº 5.4

Figure nº 5.4: Bookings: Negative Wording - Japanese Versus Chinese

Source: NVivo

A hotel attribute considered negative by both the Japanese and Chinese is directly concerns the breakfast menu. A bathtub is important to the Japanese but not the Chinese. The Japanese focus more on staff, cleanliness, equipment not working or difficulty understanding how to make it work, and not having hot water. And, while the Japanese focus on people (service) and processes, the Chinese focus more on room size and modernity, with a dislike for old and noisy facilities. Price is mentioned as both a positive and a negative attribute. In short, the Chinese focus on features (hotel and room facilities) and price.

5.5.3. Is the Japanese Inbound Market attractive and profitable for investors and shareholders?

While overall, the Asian market is seen as profitable and important, the Japanese market is not being specifically targeted by hospitality hotel chains. This is because, based on current Turismo de Portugal (Portuguese tourism office) initiatives, the Japanese market is not a priority.

153 Japanese travel decision took in consideration worth-to-mouth advises from family and friends. Interpersonal influence and word-of-mouth (WOM) are ranked the most important information source when a consumer is making a purchase decision. These influences are especially important in the hospitality and tourism industry (Litvin et al., 2008). The role of perceived value in customers’ post-purchase decision-making process is evident. Perceived value is an immediate antecedent to customer satisfaction and repurchase intention. Asian consumers (collectivists), who emphasize social harmony, are less likely to complain but more likely to switch and to spread negative word-of-mouth than Western consumers (individualists) in service failures. However only in a non-embarrassing failure will collectivists less likely complain than individualists. In an embarrassing failure, however, collectivists will more likely complain, as well as switch and spread negative word-of-mouth. (Wan, 2013). Taking these facts in consideration, retain and attract Japanese customers could be made through delighting them, fulfilling their expectations, and avoiding embarrassing situations. Understanding their culture is crucial and that should not imply a need of huge investments from the luxury hotels.

5.5.4. Is there room from improvement in hospitality to achieve a match between Japanese tourists’ hotels attributes expectations and hotels attributes of Portuguese luxury hotels?

Based on the outcome of the questionnaire, respondents’ knowledge of Japanese culture and what pleases Japanese tourists is very low or almost inexistent, not only in the hospitality and tourism sector but also in other sectors of activity.

Front-office competences such as, advise the customers concerning restaurants, shops, and transports nearby, proactive reaction to solve problematic situations and welcome with a happy and sincere smile are in place and please Japanese tourists, even if these procedures are standard and not taking in consideration customer country of origin. However, continuous improvement policies are important for hotels strategy, these improvements are made mainly taking in consideration the western culture and similar cultures´ preferences. Hotels should develop continuous improvement policies taking in consideration customer country of origin.

To achieve higher customer satisfaction and delight for these kinds of customer, provision should be made for training in Japanese culture. There being room for improvement, an improvement plan is proposed in Table nº 5.1 involving the following aspects: Features, Market, Processes, People and Finance.

An exploratory study of Portuguese luxury hotel management strategy

154 Table 5.1.: Improvement Proposal to meet Japanese customer needs/satisfaction

Customer

Dimensions Hotel Attributes and Service Improvement to meet Japanese

customer needs/satisfaction

1. Features

Structural Attributes, out of hotel control or hard to change at short notice Location, Facilities

2. Market Communicate to the Japanese Market. Communicate with figures and analogies.

3. Processes Part of structural attributes but, can be solved with a process change at Front-Office.

Attribution of room with bathtub to Japanese customers

Do not attribute a room with open bathroom concept to

Japanese.

Ensure a regular basic water flow and water temperature.

Services that can be improved with better processes: Room Check and maintenance of room equipment before check-in

Inform about room equipment usage at check-in or provide an instruction guide in the room.

Confirm amenities and kettle availability in the room.

Services that can be improved with better processes: Breakfast Availability for early check-outs

Include Vegetables

Diverse, not repetitive.

Planning to avoid crowd (noise) in the breakfast hall.

155 Customer

Dimensions Hotel Attributes and Service Improvement to meet Japanese

customer needs/satisfaction

3. Processes Services that can be improved with better processes: Price Clear procedures and explanation about pricing/ invoicing

Services that can be improved with better processes/ people development Cleaning: better processes and staff training

Tasty breakfast: processes and products presentation and

cooked in accordance with national preferences.

Helpful, pro-active: Give information about restaurants,

sights to see, solve problems quickly.

Entertain and compensate for check-in delays.

Improving processes and staff attitude through better understanding

of customer´s needs (e.g., avoiding behaviours regarded as rude)

Services that can be improved with better processes but may have additional

associated costs. Welcome package, Free drinks or food

4. People Services that can be improved by people development Understanding of customer needs, expectations, and culture.

5. Finance Customer´s Perception about price (high or not) and value for money Clear information about pricing and invoicing.

Source: Own Elaboration