In many discussions about business competitiveness, topics such as business strategy, technology, finance, or marketing often receive significant attention. However, there is a more crucial factor that is often underestimated or viewed merely as an internal activity: corporate culture. For the hotel and service industry, where customer experience is shaped by hundreds of touchpoints daily, corporate culture is not just slogans on walls or internal codes of conduct. Culture is how employees think, act, collaborate, and serve customers in every moment. The renowned management guru Peter Drucker once famously said, "Culture eats strategy for breakfast." This message has never been more relevant, especially as businesses face rapid changes in technology, the labour market, and ever-increasing customer expectations.

Corporate culture is emerging as a new competitive advantage

For many years, businesses have competed on location, investment scale, facilities, or financial resources. However, these advantages are increasingly easy to replicate. A hotel might invest in modern guest rooms, but a competitor can easily build a similar product. Technology is also becoming more widespread and accessible. What remains most difficult to replicate is corporate culture.

corporate-culture.png

According to Deloitte's Global Human Capital Trends study, over 80% of business leaders globally believe that organisational culture is a significant competitive advantage. At the same time, companies with strong cultures typically report higher employee engagement, better adaptability, and more sustainable business performance compared to the rest of the market. In the hospitality industry, where service quality depends directly on people, corporate culture becomes an even more critical factor in maintaining a consistent customer experience. A process can be documented. A service standard can be trained. But dedication, a spirit of service, and a proactive attitude from employees truly develop only when nurtured by a suitable culture.

Why do many businesses still underestimate culture?

One of the most common reasons is that corporate culture is often harder to measure than financial metrics. Revenue can be tracked daily. Occupancy can be reported in real-time. Operating costs can be controlled by modern management systems. Meanwhile, the impact of culture often unfolds subtly and accumulates over time. A disengaged work environment may not immediately reduce revenue. However, it can lead to higher turnover rates, decreased service quality, loss of motivation, and ultimately directly affect the customer experience. Conversely, a positive culture can help businesses retain talent, increase productivity, and create a service differentiation that competitors find hard to replicate. Precisely because the impact of culture is often long-term, many businesses only realise its importance when human resources or service quality issues begin to emerge.

The link between corporate culture and customer experience

In the hospitality industry, the customer experience doesn't start at the front desk or end when guests check out. That experience is shaped by the internal working environment of the business itself. Many international studies show a strong correlation between employee experience and customer experience. According to Deloitte, organisations with high employee engagement often achieve better results in customer satisfaction, business performance, and innovation capabilities.

4-roles-of-corporate-culture

This aligns perfectly with the reality of the hotel industry. An employee who feels respected, recognised, and given opportunities for development will tend to bring positive energy to customers. Conversely, a disconnected work environment makes it very difficult to create excellent service experiences. In other words, customers always perceive the corporate culture through how employees interact with them every day.

The new generation of workers is choosing culture over just salary

Changes in the labour market are also making corporate culture more important than ever. According to Randstad's Employer Brand Research report, organisational culture, a positive work environment, and career development opportunities are among the most influential factors in employees' decisions when choosing a workplace. In Vietnam, surveys by Vietnam Report also show that attracting and retaining talent is becoming one of the biggest challenges for businesses across many industries, including tourism and hospitality. In a context where high-quality human resources are increasingly scarce, businesses cannot compete solely on income. Organisations with a positive work environment, a clear culture, and attractive career development opportunities often have a significant advantage in the race to attract talent. For the hotel industry, where staff turnover rates are consistently high, this is particularly important.

Corporate culture helps organisations adapt better during volatile times

Recent years have shown that the market can change faster than any forecast. The development of AI, shifts in consumer behaviour, cost pressures, and global economic fluctuations are creating many new challenges for businesses. In this context, adaptability becomes vital. According to Deloitte's research on the future of work, organisations with a culture of learning, innovation, and empowerment tend to adapt more quickly when facing change.

Smart-asian-startup-small-entrepreneur-standing-confident-portrait

This is especially true in the hospitality industry. A hotel with a team of employees willing to learn, proactively adapt, and collaborate effectively will find it easier to implement new technologies, improve processes, and enhance service quality than businesses with a conservative or disengaged culture. Culture, therefore, is not just a factor that helps businesses operate well in the present but also a foundation for sustainable organisational development in the future.

Building corporate culture doesn't start with slogans

One common mistake is assuming that corporate culture is built through core values published on a website or internal communication campaigns. In reality, culture is shaped by the daily behaviour of leadership and employees. Employees observe how the company makes decisions, how leaders treat their teams, how departments collaborate, and how the organisation responds to difficult situations.

1-corporate-culture-concept

If a company claims to value creativity but every new idea is rejected, the actual culture will be completely different from what is communicated. If a company talks about a spirit of customer service but neglects the employee experience, those values are unlikely to materialise. Therefore, building corporate culture must start with leadership. It is the consistent actions of leaders that are the most powerful shapers of culture.

Conclusion

In a world where technology is increasingly ubiquitous and products are easily replicated, corporate culture is becoming one of an organisation's most sustainable competitive advantages. For the hospitality industry, culture not only affects operational efficiency and staff retention but also directly impacts customer experience and brand image. A hotel may boast modern facilities, advanced technology, and a well-structured business strategy. However, without a strong cultural foundation, these advantages are unlikely to reach their full potential. Conversely, when culture is properly built, the business will have a more cohesive, flexible team ready to overcome future challenges with the organisation. At NewSun Hospitality, we support hotels, resorts, and service businesses in building corporate culture systems aligned with their development strategies, service standards, and team capabilities. From organisational restructuring consulting, core value development, and service culture enhancement to leadership and management team training, NewSun Hospitality partners with businesses to create a solid cultural foundation that improves operational efficiency and fosters sustainable competitive advantage. Contact NewSun Hospitality today for consulting on corporate culture development solutions tailored to your organisation's specific needs.

References:

  • Deloitte. (2024). Global Human Capital Trends Report. Deloitte Insights.
  • Deloitte. (2024). The Social Enterprise at Work: Paradox as a Path Forward. Deloitte Insights.
  • Randstad. (2024). Employer Brand Research Global Report. Randstad NV.
  • Vietnam Report. (2024). Top 500 Vietnam Best Employers Report. Vietnam Report JSC.
  • Gallup. (2024). State of the Global Workplace Report. Gallup Inc.
  • Harvard Business Review. (2023). The Leader's Guide to Corporate Culture. Harvard Business Publishing.
  • McKinsey & Company. (2023). Performance Through People: Transforming Human Capital into Competitive Advantage. McKinsey Global Institute.
  • PwC. (2024). Global Workforce Hopes and Fears Survey. PricewaterhouseCoopers International Limited.