Feb 15, 2016

Invisible hand in Touristology.

Not long ago, China was a communist country, nowadays it is in transition to becoming a capitalist country but, habits die hard! So far, they have being very successful combining freedom economy principles with control over them (by the way, another good example of an oxymoron!)
For instance, China’s exchange rate is determined by a central authority not for the free market (is it really a free market when people with more money that entire countries exists AND no limitation, whatsoever, in the amount of money they wish to move? Well, this can be the subject of another posts!). We saw this in action this August!
Another example, happened this January. When the stock exchange went down, the government created  a new rule: If the market is down by 7% we will close the stock exchange. Did it work?
You know, in Economy we have the same problem/reality than in Touristology, we are dealing with human beings and we are logical, emotional and gregarious. So, what appeared to be a good idea ended up in a failure! Some traders thought “if at 7% I couldn’t sell… I better sell it when it is 2% down!!!”
Well China, welcome to Bonaparte’s fantasy!!! Napoleon was a great warrior BUT he, REALLY, thought that ruling above everything  all would be fine. Well…keep dreaming Napoleon! Not in economy, not in the education, not in Touristology!!! When you regulate everything people try to avoid the rule NOT getting better results for them and for the rest of us. Let me be crystal clear: Rules (the excess of them) kill creativity, innovation, LIFE!!!
If you want to get great things, there are only a few rules:
1) Choose the best people
2) Motivate them (if they are, really, the best,  it would be enough if you don‘t demotivate them!!!)
3) Give them a good framework.
4) Don’t bother them with XXXX rules!
5) Then wait for results and if they are good... Continue. It they are bad... Adapt!
Do you want your Tourism destination, hotel, any tourism enterprise…
To detect new segments.
Create new products. To define better servuctions processes
Find and try new countries of origin,
Set up the best chain of value in order to provide backup to the tourist from the beginning to the end of the trip?
Follow those rules, then look at Adam Smith into his eyes and said to him: Invisible hand! What a genius you were and ARE!!!

No comments:

Post a Comment