The Institute of International Tourism and Hospitality Inc.
Problem-solving approach
We utilize a unique framework that integrates practical and theoretical knowledge.
To address the challenges faced by various players surrounding the hotel business, such as hotel operators, developers, financial institutions, and local governments, we apply our extensive experience in hotel operations to a management framework.
We will derive concrete and effective solutions.
Problems and solution approaches (example)
Case 01: "Reading the depths of customer's eyes" × Empathy, Service-Dominant Logic
Challenge: How can we replace customer-employee interactions with AI and machines without decreasing customer satisfaction?
Solution approach: We model the mechanisms that generate customer satisfaction by drawing on academic insights, and integrate this with the practical experience accumulated on the front lines of service delivery.
Explanation:
The factors that satisfy customers are diverse and constantly evolving (a concept known as "service-dominant logic"). Consequently, employees must engage directly with customers to perceive their specific needs in the moment. The ability to accurately sense these needs depends on the employee’s capability for "empathy." While empathy is often thought to arise the instant two people make eye contact, it cannot occur unless one is able to grasp the other’s perspective in that very moment—a process rooted in the mechanisms of the "empathic brain." In service environments, we have long instructed staff to "read what lies behind a customer’s eyes." This is based on the empirical observation that customers will only reveal their true thoughts to employees whom they perceive—through their behavior—to be genuine professionals. The practice of "reading behind the eyes" is, therefore, theoretically sound, as it serves to trigger empathy between the customer and the employee. Given this, replacing direct, face-to-face customer interactions—such as looking into a customer’s eyes—with AI or automated systems carries significant risk. Our strategy is to advance AX (AI Transformation) and DX (Digital Transformation) while mitigating these risks, and to develop human resource training programs designed to strengthen the professional mindset of our employees—the very foundation of customer satisfaction.
Case 02: Who has the decision-making power? × Many to many marketing
Challenge: How can loyalty programs be effectively implemented to increase revenue?
Solution Approach: Developing an operational model that overcomes criticisms of the "one-to-one marketing" concept—the foundational principle behind the design of loyalty programs.
Explanation:
The objective of implementing a loyalty program is to enhance customer loyalty by offering "customized" rewards to individual customers. However, because rewards based on purchase data often end up being quite similar across companies within the same industry, they rarely serve as a decisive factor in boosting customer loyalty. A common pitfall when customizing products or services for individual customers is focusing exclusively on the specific customer, which can lead to overlooking other critical information. To avoid this, the "many-to-many marketing" concept has been proposed as an effective approach (based on academic research). In practice, it is frequently observed—for instance, when a family decides on a hotel for their summer vacation—that the final say often rests not with the primary breadwinner, but with the wife or children (based on empirical observation). In such cases, the father’s own satisfaction is derived from the satisfaction of his family. Consequently, hotels should strive to understand not only the male customer enrolled in their loyalty program but also the details regarding his family. By designing a loyalty program that can capture and incorporate such information, businesses can effectively foster greater customer loyalty and improve their overall performance.
Case 03: Enriching Society in the Era of 100-Year Lifespans × Integrated Hospitality
Challenge: What does a regional revitalization model centered on a luxury hotel look like?
Solution Approach: We aim to further deepen the "Integrated Hospitality" concept—which seeks to create, propagate, and sustain value by applying high-level hospitality expertise (cultivated through a consistent management philosophy) across diverse industries—and to pursue its concrete implementation.
Explanation:
The high-level hospitality expertise found in luxury hotels can be leveraged to enhance products and services for the affluent—such as those in the luxury residential and senior living sectors—while also serving as an ideal learning environment for fostering international awareness and social skills in children. Furthermore, given that the diverse range of roles within a hotel can provide employment opportunities for people across a wide spectrum of ages, it is highly effective to strategically position and utilize hotels as a core element in urban development designed to support a fulfilling, long life in an era of 100-year lifespans.