The debate over the adequacy of competency-based training (CBT) to meet the needs of service industries is far from over. In Australia, the national training package qualifications (which are CBT based) are well entrenched, with competency elements growing like bacteria on a buffet. Developed by industry for industry, this framework appears to have had little impact on training practices in the workplace. Enterprise training is not linked to the National Training Framework (Smith, Oczkowski, Noble, & Macklin, 2002). In colleges, atomistic customer service outcomes delivered in standardised, context-free conditions do little to meet the needs of service industries, tourism and hospitality in particular. Sociocultural approaches point to the context embeddedness of workplace learning, including the diversity of social interactions within the organisation and with customers. The industry is also a dynamic one, with ongoing changes to the tourism product (which includes service) to meet increasingly sophisticated expectations. Customers, including international visitors whose contribution is one of the country's largest sources of foreign income exchange, are looking for unique and culturally authentic experiences. Curriculum reform is an urgent priority if vocational training in colleges and workplaces is going to meet the emerging needs of this competitive services sector.