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27|02|2018

Was the feasibility study for the Albergo Diffuso at Boyle (Ireland) done correctly? Surely not

Categoria: News

In January 2018, the Boyle Town Team discussed the "Pre-Development Study for an Albergo Diffuso in Boyle".  

That Team faced very early some challenges in the Hospitality model including the following: 

  • Governance – single management entities representing multiple real estate owners manage the operational activities including house-cleaning. That's not completely true. In several cases, owners agree on specific quality-service standards and clean their houses by theirselves. That option has revealed very useful to achieve good quality cleening service standards while reducing operative costs, which is very important during the business start-up phase.
  • Human resources - The need for an experienced General Manager to be employed. The Albergo Diffuso in Italy demonstrates that, coeteris paribus, passioned people make businness better than the others and that the needed capabilities can be acquired very easily.
  • Community-involvement - "The Albergo Diffuso reqwuires the engagement of the entire town 12 months of the year". It sounds to me as a dream even for the best acknowledged Albergo Diffuso. Anywhere, a community-involvement process is a slow-pace and especially result-driven one.
  • Self-sustainability – the local Team considered the alberghi diffusis operating in the Italian region of "Friuli Venezia Giulia" as examples to be followed. Unfortunately, the Alberghi Diffusi National Association (ADI) considers those alberghi diffusis as an wxample NOT to be followed mainly due to a regional law requiring to be deeply improved.

Thus it seems that early discussions on the Albergo Diffuso at Boyle were NOT correctly set-up. 

  • Governance – That's not completely true. In several cases, owners agree on specific quality-service standards and clean their houses by theirselves. That option has revealed very useful to achieve good quality cleening service standards while reducing operative costs, which is very important during the business start-up phase.
  • Human resources - The Albergo Diffuso in Italy demonstrates that, coeteris paribus, the needed capabilities can be acquired very easily and progressively.
  • Community-involvement - The full-year engagement of the entire town sounds as a dream even to the best acknowledged Albergo Diffuso's management team. Anywhere, a community-involvement process is a slow-pace and especially result-driven one.
  • Self-sustainability – Unfortunately, the Alberghi Diffusi National Association (ADI) considers the alberghi diffusis operating in that region as an example NOT to be followed mainly due to a regional law requiring to be deeply and urgently improved.

Early discussions on that Business opportunity are very important for the purpose of business creation. That's not a coincidence that "After discussion, the members felt that Albergo Diffuso, based on the Italian model as identified does not make financial sense for the property owners or the town."


For the future, I hope the local teams interested in this very particular business opportunity will avoid these traps.



For further info:

http://www.boyletoday.com/albergo-diffuso-for-boyle-report-discussed/ 

https://www.shannonside.ie/wp-content/uploads/sites/11/study.pdf 






 
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