Fore! Portugal’s Wild Tee Shot

Portugal, famed for its’ chickens, has spent a lot of time “counting” and a little amount of time “crowing”, since its’ economy descended into the economic abyss 6 years ago. Yet away from the macro-economic issues, it is clear from a visit to the Algarve last week that there is a huge disparity in the quality of local leadership teams and the performance of businesses. It is most apparent in the so-called upscale or luxury end of local tourism. Quinta Do Lago is famed as one of the world’s Top 10 golfing resorts. Yet here is a classic example of a tourism business that is  missing obvious opportunities to improve its’ top line revenue growth.  They have upto 200 people per day paying in excess of €150 for the privilege of playing each of their three courses in 28C (82F), yet they have drinks buggies that rest idol for 4.5 hours, a practice facility at San Lorenzo (closed for half a day due to regular maintenance), and a food outlet (Laranjal) producing inedible cheeseburgers. The golf shops, locker facilities and food and beverage services wouldn’t be in the Top 1000 of US golf courses. The predominantly British and Irish visitors fueled on late nights of Sagres and Sangria, perhaps do little to show their displeasure but those owning the resorts would be wise to shake up the management teams.

In businesses seeking growth, it is not the search for new ideas where the the highest potential lies for success , it is the shortcomings of the existing practices. What are we omitting to do and why? Answer that question and you will dramatically increase your top line revenue growth. That is of course unless your Owners wish to stick their heads in the sand or are satisfied with management carding bogeys or worse.

©      James Berkeley 2014. All Rights Reserved.

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