EHL Education Consulting

Case Study | An asset-light model for a vocational institute

Written by EHL Education Consulting | Oct 3, 2024 10:15:00 PM

 

The Swiss Hotel Management Academy (SHMA) in Sri Lanka, a subsidiary of A. Baur & Company, has adopted an asset-light model to revolutionize hospitality education. This model leverages partnerships with leading hotels to provide training, reducing costs and infrastructure needs while ensuring students gain practical experience in real-world settings.

Why an Asset-Light Model?

An asset-light model minimizes costs by outsourcing key assets and collaborating with industry partners, making operations leaner and more agile. For the hospitality sector, this model is highly effective, especially in addressing the need for skilled labor without the substantial investment required for traditional educational setups.

Hospitality Industry Needs in Sri Lanka

Sri Lanka's hospitality sector needs approximately 250,000 skilled workers to meet future demand. Challenges like high staff turnover and rapid technological changes require a workforce that is both well-trained and adaptable, creating an urgent need for effective vocational training.

SHMA’s Innovative Approach

SHMA addressed this gap by launching "VET by EHL" programs in collaboration with top hotels like Cinnamon Grand and Shangri-La. This approach avoids the need for dedicated training facilities by using hotel venues for both theoretical and practical training, offering students hands-on experience in 5-star environments.

Key Benefits of the Asset-Light Model

  1. Cost Efficiency: No need for full-time faculty or infrastructure investment; hotels provide facilities, and industry experts are trained quickly.

  2. Industry-Driven Training: Aligns with local market needs and leverages existing hotel resources for practical learning.

  3. Earn While You Learn: Students work in hotels while studying, with education costs subsidized by employers.

  4. Enhanced Job Readiness: Students gain real-world experience, increasing their chances of securing full-time positions post-training.

Scalability and Future Growth

This model allows SHMA to scale rapidly without the constraints of a traditional educational setup. With strong industry partnerships and a ready-to-use curriculum from EHL, SHMA plans to expand across Sri Lanka, meeting growing demand for skilled hospitality professionals.

SHMA’s asset-light approach, in partnership with EHL and leading hotels, provides a scalable, cost-effective solution to bridge the skills gap in Sri Lanka's hospitality sector. This model offers a win-win for hotels, students, and investors, aligning with industry needs and fostering sustainable growth.

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