Navigating the Complexities of Hotel Management in Thailand: Owner Concerns and Managerial Ethics

Apr 13
01:29

2024

Maibs

Maibs

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In the intricate world of hospitality, the relationship between hotel owners and their managers is pivotal for success. In Thailand, a country renowned for its tourism industry, hotel owners have voiced specific concerns regarding the conduct and capabilities of some hotel managers. These issues range from ethical lapses to cultural misunderstandings, and they can significantly impact the hotel's reputation and financial health. This article delves into the multifaceted challenges faced by Thai hotel owners and offers insights into fostering a harmonious and productive owner-manager dynamic.

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The Ethical Quandaries of Hotel Management

Hotel owners in Thailand have encountered instances where managers have demonstrated questionable ethics,Navigating the Complexities of Hotel Management in Thailand: Owner Concerns and Managerial Ethics Articles such as accepting commissions from suppliers or misappropriating funds. According to a study by the International Journal of Hospitality Management, ethical issues in the hotel industry can lead to a loss of trust and damage to the hotel's reputation, which is crucial in a hospitality-driven economy like Thailand's.

The Manager-Supplier Relationship

Some hotel managers have been found to recommend specific suppliers persistently, later revealed to be due to receiving commissions on sales. This practice raises concerns about the integrity of the manager's decision-making and the potential for inflated costs to the hotel.

Sales and Marketing Misconduct

There have been reports of general managers in charge of sales and marketing for new resorts diverting room revenue to their personal accounts. In one egregious case, this resulted in a loss of over 5 million Thai Baht (approximately $150,000 USD), highlighting the need for stringent financial oversight during the pre-opening phase of hotels.

Questionable Entertainment Expenses

Excessive entertainment expenses for personal acquaintances, without tangible benefits to the hotel, have also been a point of contention. Owners argue that such privileges should be clearly outlined in contracts or approved benefit lists to prevent abuse.

Cultural Sensitivity and Managerial Presence

The importance of understanding and respecting Thai culture cannot be overstated for hotel managers. Owners have expressed frustration with managers who fail to engage in local customs, such as the traditional "Wai" greeting or participating in staff activities. This cultural disconnect can alienate staff and guests alike, undermining the hotel's atmosphere of hospitality.

The Need for Active Management

In smaller boutique hotels, an "on the floor" management style with direct staff and guest interaction is often more effective than a purely office-based approach. Owners expect managers to be visible and proactive in their daily operations.

Managerial Focus and Professionalism

During the critical pre-opening stage, some managers have been criticized for prioritizing personal comfort over essential tasks. This lack of focus can convey a poor impression to owners, who expect a commitment to the hotel's success above all else.

Aligning Priorities with Owners

Discrepancies between what managers and owners deem important can lead to tension. Managers are encouraged to consider the owner's perspective when prioritizing tasks to ensure a unified approach to hotel operations.

Upholding Professional Standards

Professionalism is paramount, and there have been instances where managers have neglected to implement necessary hotel policies and procedures, focusing instead on personal authority and purchases. This behavior can erode trust and hinder the establishment of transparent accounting and purchasing policies, which are vital for maintaining the owner's confidence.

Conclusion: Building Strong Owner-Manager Relationships

The issues highlighted by Thai hotel owners underscore the need for managers to understand and align with their expectations. By addressing these concerns, managers can foster a lasting and successful partnership with hotel owners, ultimately contributing to the hotel's prosperity and the enrichment of Thailand's hospitality industry.

For hoteliers, owners, and investors seeking to navigate the complexities of hotel management in Thailand, understanding these nuances is crucial. By promoting ethical practices, cultural sensitivity, and professional standards, the industry can continue to thrive in a country where tourism is a cornerstone of the economy.

© Klaus R. Rauter, Managing Director MAI-BS (Thailand)

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