Douglas Quinby of Phocuswright wrote this article with inspiration from Ram Badrinathan
Douglas Quinby, Vice President, Research @ PhoCusWright
Nearly two decades ago, early in my career, I had an opportunity to work in India for a year. One of my goals while there was to learn Hindi, which is actually not an easy thing to do – not because the language is difficult (the grammar and syntax are actually much more straightforward than English), but because English is so widely spoken in the major metros.
I was very fortunate to meet a young man, Devendra, who was overseeing the guest house where I was staying. He was from a tiny village in the far north and spoke little English. He became my very patient practice partner, as well as a good friend while I was there.
One day we were walking past a school, and there was a large mural on a side of the building with a map of the world. Devendra asked me a question that I’ll never forget. “What is that?”
He had some village schooling and could read, but here was an adult who oversaw a guesthouse in the evening and worked in an office doing errands during the day and yet could not recognize an image that would be instantly recognizable to virtually every middle school student in the U.S., Europe and any developed country. He did not know it was a map of planet Earth.
So we started discussing it. I pointed out where America was on the map. “Achaa, so that’s where America is. It’s bigger than India? How far away is it?” We moved on to Europe. “England. Where’s England?”
Devendra had never heard of World War II. Nor did he know that a man had once walked on the moon.
The global travel, tourism and hospitality industries – not to mention the legions of inspired entrepreneurs, investors and startups – may swoon over the incredible new opportunities generated through new mobile technology, especially in very fragmented, Long Tail markets with millions of individual suppliers and service providers – think taxis and ground transportation, rental accommodation, and tours and activities in destination. Mobile innovation is powering a new era where discovery, payment and fulfillment have never been easier or more satisfying.
But in emerging markets, that will only take you so far. Indeed, it may be taking you too far.
City traffic in India. (Image credit: naveen0301/iStock)
Let’s take ground transportation in India. The actual vehicles on the roads have improved dramatically over the years. Tough new emission standards and aggressive investment in the market from major global auto manufacturers have transformed the landscape. Cars and vans in India – Toyota, Hyundai, etc. – are world class. But what about the drivers? Taxi, bus and car drivers in India are very poorly paid and typically uneducated. Even basic literacy can be an issue. You may have the savviest app out there, but how do you operate when your workforce of millions may barely have the equivalent of a grade school education?
Scores of startups are seeking to serve the growing but still narrow consuming classes of markets such as India. Often service delivery is dependent upon millions of very low-wage laborers. But in the case of transportation, these drivers are the lynchpin to a satisfying customer experience. Do they communicate effectively with the customer? Do they make them feel safe and comfortable? Do they drive safely? This will take more than background checks (which range from meaningless to non-existent in many emerging markets).
Airbnb discovered early on that the host was the key to satisfied customer. They needed to invest in their hosts and the idea of hospitality if they want to really drive customer satisfaction, loyalty, word-of-mouth and growth.
But for new transportation services in emerging markets, their work will be much harder. While many have helped increase earnings and improve access to car loans, have they invested in the soft skills of the driver, their values and behavior?
Ram Badrinathan, cofounder of KarmYog Education Network.
Former Phocuswright analyst and cofounder of KarmYog Education Network, Ram Badrinathan, has been ringing this bell for years across the global travel industry. Raising travel and tourism service standards across emerging markets is not just about jobs and income, but about education on the soft skills of service delivery and experience. Transportation companies, he insists, must invest in the driver as a host, the driver as a human being, and not just as a laborer.
Now, when we think about the broader tourism industry, the list of potential jobs where this kind of human capital investment is needed can get big quickly: on top of drivers, what about porters, restaurant servers, cooks, security guards, housekeeping, etc…?
This has been the mission of Ram’s KarmYog Education Network and their Mass Education Campaign to engage with five million drivers. Perhaps this is a case where, to succeed with India’s consuming class, businesses should consider starting with some of India’s poor.
If you are interested in more, here’s a video from KarmYog explaining their mass education campaign for drivers. (And yes, part of it is in Hindi!)
Disclosure: I have no commercial interest in KarmYog, but I hope like hell that they’re successful! Our entire industry will be better for it.
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