In need of a paradigm shift – Sri Lanka vs Maldives
Ever since Sri Lankan government announced its victory over the country’s decades long civil war, I have seen articles in local news papers and blogs about how peace in Sri Lanka could affect tourism in the Maldives. While some argued it will create fierce competition for Maldives tourism sector, others made certain statements that Maldives tourism benefited from the civil unrest in Sri Lanka over the years.
First of all, I think it is simply boorish to imagine and talk about such a thing that will create hostility towards a neighboring nation. Second, peace and harmony is a blessing anywhere in the world so we should all appreciate it instead of showing resentment.
Maldives did not create the world renowned tourism we see today because of a war in Sri Lanka. It definitely did not give us the idea to build world class resorts and reach out to the first-class travelers worldwide. The civil war certainly did not encourage us to create or talk about cultural tourism and divert those who weren’t able to travel across Sri Lanka. Maldives is not a substitute for Sri Lanka or any other country for that matter. We have our own uniqueness part gifted by nature and part created by own hands.
Sri Lanka is a much bigger country with lots of potential and resources to create greater things. This change in Sri Lanka will attract more commercial activities, more investments, more air traffic and more tourists. Peace and harmony in Sri Lanka will only help Maldives to attract more tourists. Any positive impact in Sri Lankan economy or tourism will be an advantage and we should work towards bringing this special add-on to Maldives. Imagine a Sri Lanka with an economy as Singapore bringing the world just one hour closer to us. Imagine if we never had to travel all the way to Europe for marketing purposes because Sri Lanka has become the next hub for tourism transactions in this region.
For those who believe this change in Sri Lanka will create fierce competition to Maldives tourism, I like to dedicate them a song to help change their perspective. If we want to be successful we should change the way we think let alone the way we market our unique destination.
Balance Management or Revenue Management
This is a response to some feedback I received from industry colleagues regarding my previous post Transform the way you do. Also this is a special dedication to my dear friend Eugene Feklistov at Alila Villas Hadahaa.
My previous GM always told me, buddy we should have an “eclectic balance” in the geographic mix. He said if there are too many guests from one specific country or a region the rest of the clients will feel alienated. They are all jet-setters so they won’t appreciate being alienated, he added.
It wasn’t the easiest thing to achieve given the size of the resort and the traditional geographic markets that are more accessible to the destination. But my GM had a vision so I had to work towards realizing his dream and we did it.
It wasn’t magic but tough as a lot of time was spent to understand the business that has reached its maturity stage surrounded with fierce competition fighting to maintain market share. Some key areas that influenced the whole process include identifying the real key market segments, distribution channel implications and psychographic make-up of key segments.
Remember, it is all about creating and managing your demand the way you want. Keep your eyes open and be ready to close or open those “taps” at the right time. Some people might add a price factor to the same formula and call that revenue management but I say that is just Balance Management.
Transform the way you do
This is Low Season in Maldives tourism and this year, as forecasts show is even lower due the current world economic situation.
Major markets are under performing and new markets are not emerging. But don’t worry about driving demand for now, because the markets are not sure if they have to /or can spend the money at this time. Don’t try to drive demand by offering discounts and the usual specials that will eat your RevPAR.
Instead make use of this time to manage your demand and market segments. This is the best time to transform your market segments and have that balance you always wanted.
We all know it is not wise to depend on just one or two markets to drive 80% of the business, especially in a destination like the Maldives. But this is how it all started, all major tour operators who performed are from those two countries and it is so convenient to contract and let them sell. Easy marketing!
Transform your key market segments and manage your demand. Spend time to analyze your marketing plan and if necessary re-write some areas. Think product value, think loyal customers, think pricing strategy, think distribution costs and think RevPAR. Real marketing!
In the age of Google
Some of my friends are on twitter and they have facebook and Linkedin accounts too. But I wonder how many internet users in Maldives really use the power of these channels to their advantage.
It will perhaps be right to say that 75% of internet users in Maldives do not use it maturely. Maybe I am wrong but I don’t think there is enough research done to prove otherwise. I think there is a trust issue when it comes to internet in the Maldives. A friend said he created several anonymous accounts when he first started using internet. He says some people do this because they are still afraid to express freely in the community and some use such fake accounts simply to abuse other users.
It appears that people judge us by the name we use in our online profile or the picture we display for people to see. So, in order to get the trust of others we need to use real names and honest information in our online profiles. My friend Chuckay says, “we are in the age of Google and we should be Google-able. These days if you send a business proposal or apply to a job with an international company, the first thing they do is look you up in the internet. Therefore it is important to be authentic and careful with our online profiles”. He further said, “this will soon become a norm in Maldives too, you will be looked up first on internet before someone decides to call or meet with you”.
I agree with him as I recalled an incident related to some resort employees. Recently, five employees from a top Maldives resort were asked to leave because they were actively involved in promoting negative stories about the resort through a defiant facebook group.
Chuckay also said, “SMS will be history in 5 to 10 years and internet based social networking will rule the world”.
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