Chapter 2 The Accommodations Sector

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Chapter 2The Accommodations Sector

• Managing for Quality

2
Accommodations Sector

• Heterogeneous (fragmented/diverse)
• BBs, hotels, motels, camping, transport, etc.
• Different Similar Management requirements
• Sub-sector of Hospitality Industry
• Food and Lodging
• Part of Tourism Product Experience
• Tangibles and Intangibles
• Basic vs. Key attributes

3
Stages of Attribute Life Cycle

• Latent Not yet visible or apparent
• Desired Known, but not currently supplied no
  weight
• Unique Only the pioneer scores well some
  weight
• Pacing One supplier is already ahead wt.
  shifting to this
• Key Differences in perform. determine
  competitiveness
• niche attribute important in one segment
• power attribute important in all segments
• Fading Catch-up top performers edge is being
  lost
• Basic All suppliers perform well no adv req.
  but no wt.

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Challenges?

• Hotels are a major investment
• Physical structure needs much attention
• In fixed locations which externally change
• High fixed costs proportion
• Economy driven does well or very poorly
• Core product (rooms) are perishable
• Branding is quite important
• Matching product to customer needs (ie value)

5
Role of Quality

• Key components of Hotel Management
• Customers ensuring satisfaction
• Managing Supply and Demand
• Employees maximizing efficiency
• Analyzing at customer and employer ends
• Business Assets Protecting from threats!
• Why Quality is more important today
• More experienced tourists
• Seek compensation for poor quality
• More competition

6
Service Quality Model
How Service Expectations are formed
Word of Mouth
Marketing Messages
Past Experience
Personal Desires
Factors of Quality
Expected Service
Empathy
Perceived Service Quality
Reliability
Satisfaction Level
Compared to
Tangibles
Perceived Service
Assurance
Responsiveness
How Satisfaction is Determined
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Gaps Related to Failures

• Visitor Expects Mgmts qual. perceptions
• Mgmt. perceptions Serv-qual specs
• Serv-qual specs Service delivery
• Service delivery External communications
• Perceived service Delivered Service

8
Keys to HRs Quality

• Selection
• Training Development
• Empowerment
• Teamworking
• Rewards
• Research employee attitudes