Hospitality Today An Introduction

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Hospitality TodayAn Introduction

• RHM 175

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Chapter 1 Service Makes the Difference

• Competencies
• Define service and summarize how service
  businesses differ from manufacturing businesses.
• Explain the importance of strategic planning,
  describe the strategic planning process, and
  summarize planning challenges in
  capacity-constrained businesses.
• 3. Describe the basic components of a strategic
  service vision for service companies, summarize
  keys to delivering good service, and describe
  Disneys four basic service priorities.

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What is Service?

• .generally defined as work done for others.
  Pages 4-7

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Work done for others

• If a waitress comes to you for your order and you
  request a New York Strip Steak and a baked
  potato, if she returns with a Chicken Breast and
  mashed potatoes, has the waitress worked for you?
• 2. Did she do what you expected?

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Example of Exceeding Expectations

• Mandarin Oriental in Bangkok
• Guests are met at the airport with a limousine
  and by a hotel manager
• All employees greet customers by their names
• Bowls of fresh fruit are replenished many times
  daily in their rooms
• Personalized stationary is found in all rooms
• Staff-to-Guest ratio is always 3 to 1
• The hotel runs one of the best hospitality
  schools in the country

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Expectations

• Restaurants and hotel guests have certain
  expectations.
• If reality exceeds expectations then guests
  rate the service received as better than average,
  or high.
• If reality matches expectations the guests get
  what they expected, no more or no less then
  service is satisfactory.
• If reality is less than what is expected, the
  service is considered poor.

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Reality vs. ExpectationsAn example of bathroom
and towels

• If reality exceeds expectations
• Heated towels and a heated floor in the bathroom
• If reality matches expectations
• Clean towels and a regular bathroom floor
• If reality is less than what is expected
• Missing or Dirty towels and a dirty bathroom floor

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Customers Expectations
Service Meeting customers' needs in the way
that they want and expect them to be met.
Superior service, obviously, means exceeding
customer expectations.
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Challenges in Managing and Marketing Service
Business

• Traditionally, the management and marketing of
  service businesses have been described and
  studied in the same way as businesses that
  manufacture products.

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Challenges in Managing and Marketing Service
Business

• The view has been
• that management its management and marketing
  is marketing
• once you understand the basic principles, it
  doesnt matter much whether youre marketing a
  bowl of soup in a restaurant or a can of soup in
  a supermarket.

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How service businesses differ frommanufacturing
businesses.

• Understanding
• Intangible Products
• The nature of the product is different.
• A service, attitude, conveniences, amenities
• Customers are more involved in the production
  process.
• The relationship between the employee and
  customer interaction.
• People are part of the product.
• Other guests can spoil your trip or make it great
• Pages 7-11

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How service businesses differ frommanufacturing
businesses.

• Understanding
• Intangible Products
• Its harder to maintain quality control
  standards.
• People make mistakes and are not 100 all the
  time.
• The services provided cant be inventoried.
• If you wait 1 hour for a table at a restaurant,
  how do you inventory the wait, how your employees
  treated them, etc.
• The time factor is more important.
• Food orders should be taken in a timely manner,
  delivered in a timely manner, etc.
• Distribution channels are different.
• Customers come up to the front desk and request a
  room, or they contact the hotel via the internet,
  or they call the hotel, etc.
• Pages 7-11

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How to Achieve Superior Service in a
Less-Than-Perfect World

• The most important operational competency of
  top-level service managers is the ability to plan
  for the future.
• While day-to-day operations can be performed by
  others, someone must be thinking about next year
  and beyond..
• This is the job of top Managers!

Pages 11-13
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How to Achieve Superior Service in a
Less-Than-Perfect World

• Strategic Planning
• Broad, long-range planning
• Is comprised of a Strategic Planning Process
• Perform a SWOT analysis
• Formulate strategies
• Implement strategies
• Leadership
• Organizational structure
• Corporate Culture
• Monitor and evaluate results

Pages 11-13
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1. SWOT

• - an acronym for strengths, weaknesses,
  opportunities, and threats. A SWOT analysis
  helps companies assess how well they are serving
  their current markets, an important step in the
  strategic planning process.

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2. Formulate Strategies

• Might include More Units, appealing to a new
  market segment, developing a new product.
• Example
• Marriot developed three other hotels..
• Courtyard by Marriott
• Residence Inns
• Fairfield Inns

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3. Implementing Strategies

• Leadership must explain strategies to employees.
  
• Win-Win situation for both company and employees.
• Example If we create a new food item, it may be
  more work, but our customers may love it and
  bring in more business.

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3. Implementing Strategies

• Organizational Structure may have to be changed
  to be successful.
• Positions and Job Descriptions will change.

Page 12
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3. Implementing Strategies

• Corporate Culture employees who buy into the
  corporate culture or way of doing business.
  Everyone must share the same values and work
  ethic.

Page 12
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Planning Challenges in Capacity-Constrained
Business

• Productive capacity how much can you produce to
  meet customer demand.
• Example how many customers can be served in a
  restaurant (due to size of restaurant and number
  of employees that can serve them and cook for
  them, at any given time).

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Planning Challenges in Capacity-Constrained
Business

• Capacity-constrained business Businesses that
  produce products or service that cannot be
  inventoried or stored for future use. Success
  depends on their ability to efficiently match
  productive capacity to consumer demand at any
  given moment.

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Planning Challenges in Capacity-Constrained
Business

• Managing Supply Hotels have a set number of
  beds and restaurants have a set number of tables
  with chairs. These cannot be altered if a large
  amount of individuals visit at one time.
• This is also called level-capacity strategy,
  which means the same amount of capacity is
  offered no matter how high the demand.

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Planning Challenges in Capacity-Constrained
Business

• Chased-demand strategy some hospitality firms
  can follow this strategy. Capacity can be varied
  to suit the demand level in a limited way.
• Example Cross-training employees,
• rent extra equipment, etc.

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Planning Challenges in Capacity-Constrained
Business

• Managing Demand when supplies cannot be
  controlled, demand can be manipulated to benefit
  your business.

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The Strategic Service Vision

• Targeting a Market Segment
• Who wants what? Does the market want..
• Fine Dine, Spas, Cheep rooms, Exercise Equipment,
  Pools, ?
• Focusing on a Service Strategy
• Service Standards consistency
• Job Restructuring
• Payroll Control

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Delivering on the Service Promise

• Many theories and ideas about service have been
  mentioned, the bottom is
• doing it!

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Keys to Delivering Good Service

• Dont forget who you are.
• Encourage every employee to act like a manager.
• Handle moments of truth correctly.
• Critical moments when customers and staff
  members interact, offering opportunities for the
  staff to make a favorable impression, correct
  mistakes, and win repeat customers.
• Hire good people and keep them happy.
• Respond in a timely manner.

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Service, Disney-Style

• Safety is a key element in a theme park.
• Courtesy there motto is our front desk is our
  bottom line. The guest are always our guests,
  even when right or wrong.
• Show - Entertainment
• Efficiency If the lines are long for a certain
  ride, then a parade will pass by to get the
  customers attention off of the wait.

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