A Thai Luxury Hotel’s Post-Pandemic Dilemmas
Harvard Business Publishing Education
Lebua Hotels & Resorts, based in Bangkok, Thailand, and headed by chief executive officer Deepak Ohri, is a much awarded luxury hotel chain. Since the early 2000s, it exposed the traditionally slow-moving luxury hospitality industry to a slew of path-breaking innovations. Before the COVID-19 pandemic, Ohri had taken unorthodox paths to defining luxury hospitality.
However, as the pandemic began to ebb, he had to convince the industry of his vision of what luxury hospitality was and should continue to be. His positioning strategy for lebua had been very effective, and having won numerous awards in the luxury category, Ohri was contemplating, with his executive team, the next level of innovations needed to bring the company to the top of its post-pandemic peer group.
https://store.hbr.org/product/lebua-a-thai-luxury-hotel-s-post-pandemic-dilemmas/W25819
SITUATION
A well-established Chinese restaurant engaged LAMH Management’s expertise to increase its revenue and improve customer satisfaction. The owner turned to LAMH to fine-tune their financial strategy and business plan.
The Challenges
Thorough VOC (Voice of Customer) research conducted by LAMH revealed two crucial challenges affecting the restaurant’s financial performance and customer satisfaction: mediocre food quality and a limited selection of renowned dishes.
Upon further engagement, operational deficiencies, including inadequately trained staff and a struggle to keep up with orders, were discovered, complicating the situation. The restaurant’s general manager and the highly respected Michelin-starred head chef were understandably resistant to the findings, adding a layer of complexity to the assessment.
“With a menu boasting 200 items and a chef from a prestigious Michelin 3 stars restaurant, how can you claim that the food quality is not good?” – The Management asked.
How did LAMH address these challenges & facilitate a turnaround for the restaurant?
LAMH initiated a comprehensive CX (Customer Experience) transformation, recognizing that staff training was the key ingredient missing from the recipe for success. They implemented targeted training programs, empowering the staff to master a broader selection of the menu’s finest offerings. This wasn’t about reducing options, but about refining them. LAMH also streamlined kitchen operations, ensuring efficiency and consistent quality.
Result
The transformation was nothing short of remarkable. Revenue soared by 38%, a clear indicator of a revitalized business. Customer satisfaction undoubtedly followed suit. The initially skeptical management team witnessed the power of data-driven insights and targeted interventions. The case study exemplifies the transformative potential of listening, refining, and empowering a talented team. This, coupled with LAMH’s strategic approach, unlocked a new level of success, proving that sometimes, the most successful recipe requires a surprising twist.
“LAMH serves as the GPS for your business journey, delivering expertise right where it’s needed. We emphasize detail in execution, propelling your initiatives to their target faster, without changing the essential vehicle of your business.”