Services Practiced in a Hotel Industry

7/29/2019 Services Practiced in a Hotel Industry

1/22

Services practiced in a hotel industry

General Management

Discover the secret of the successful GM: always think and act two steps ahead. Visionary thinking,

motivating your team, pampering your Guests, keeping in touch with third parties, searching forimprovements, and ensuring a secure and safe environment for Guests, employees and third parties.

Rooms Division

Besides a good night's rest, modern Guests demand more to improve the convenience of their stay.

Food & Beverage

Generating extra sales, controlling and reducing labour expenses, exceeding the expectations of the

Guest and providing healthy lunches and meals are core values representing a good service.

The value of cooperation between various departments can be explored in order to maximize added

value. You can make your team a winning team by optimizing teamwork within F & B outlets. Use of

our knowledge by implementing the best practices in the organization.

Front Office

The front-office forms the entrance to the hotel and all its services. The impact made by a first

impression is extremely important to the rest of the stay. Guests arriving in different states of mind,

need assistance in having a pleasant stay and in checking-out after their stay.

Hoteliers regard the front-office as the heart of the hotel. All kinds of new services play an important

role in our Front-office section.

Guest Relations

'Feel comfortable, feel at home. Tell me what I can do for you.' These are issues for Guests and for

you. Great contact with your Guests is essential in order to create a unique experience. Every Guest

has his/her own wishes, and only a personal approach will make a difference. Your role will be

essential in exceeding the expectations of your hotel Guests. Ask what Guests want and give them

attention. That's what they expect and that's what makes your job unique.

Marketing

As a marketing executive, you focus your activities on the longer term. How are we currentlypositioning the hotel, what are the future possibilities, yield management, long term planning, price

policy and promotions of all the products and services, choosing the right distribution and promotion

channels etc.

Human Resources

Although all managers should be people managers, the Human Resources Manager should be the best

people manager. The right person in the right place. As Human Resources executive you are

responsible for providing the hotel with suitable, motivated and skilled management professionals and

staff, so that the hotel's targets can be realised and exceeded. Besides this, management professionals

and staff need to stay motivated and dedicated in order to run the business effectively.Objectives such as competence management, review management, motivation tools, staff


2/22

remuneration, productivity, reduction of sick leave - all these topics should be the prime concern.

Sales

Sell the hotel, optimize occupancy and room rates, promote and (cross)sell all offered products and

services. In brief, this will be your task as sales manager or sales executive. Strive to meet and even

exceed targets in collaboration with, or as part of, the marketing department.

Maintenance

There is no hotel that can function without people who maintain the premise, the building and all the

installation used by various departments. As maintenance executive your daily tasks will vary from

planning, investigating, making decisions, negotiating with third parties,

communicating with departmental colleagues, motivating staff etc. Subjects as preventative

maintenance management, motivating elements planning tools and

energy saving issues, ROI items are also issues to be considered.

Finance & Control

As financial expert, you assist management professionals in running the business via the most

beneficial economic and financial approaches. In most cases, you play the role of 'devil's advocate' at

management team meetings and budget meetings. Budgeting, forecasting, and controlling.

Security & Safety

To provide a safe and secure environment for Guests, management, staff and all other parties who

visit or contact the hotel. This important task will be your duty or responsibility if you are interested

in this section. The importance of security has been highlighted considerably in the last decade.

Threats from outside or inside the company play an important role in the recent world.

Quality & Services

The element Quality in Hospitality Management is very important. Consumption of hotel services is

pretty much simultaneous with their production. This makes the quality measurements difficult but

also essential. Quality: the never-ending story.

Organizational Development

The structure of every organization is extremely important, e.g. the right (wo)man in the right place.

But to get the best results from your organization, culture is even more important. If you allow yourmanagement to grow, the organization will follow.

Purchasing

'Value for money', 'Just in Time', 'optimal term contracting', 'service level agreement'. These are items

which are important when it comes to purchasing.

Innovation

Without innovation no business. Discover how new products and service can excel your business.


3/22

Personal growth & success

The well-being of people is one of the essential factors to personal growth, together with a positive

attitude and a willingness to learn

Skills required

1.Team Leadership Skills

The ability to lead others is a necessary factor for a successful hotel industry

employee. In many instances, employees must work with others to best meet theneeds of their customers.

2.Multitasking Skills

The ability to do more than one thing at once is vital in the hotel industry. Often

an employee is required to take orders, settle payments and problem solvesimultaneously.

3.Problem-Solving Skills

A hotel management employee needs to be able to solve a multitude of

problems, both typical and unusual. They must be able to be able to meet the

needs of their guests any way they can, while still adhering to companyguidelines.

Key factors in success of hotel industry

1.Customer Service

Customer service is an integral part of the hotel experience. Clayton Barrows, author of

"Introduction to Management in the Hospitality Industry," explains how the front-desk worker

serves as the gatekeeper of the hotel. This employee provides the customer's first and last

impression. Thus, hotels achieve a critical success factor by ensuring the staff is knowledgeable,

courteous and capable of resolving any conflicts that arise. Providing quality service also entails

remembering the names and preferences of repeat visitors and giving advice about attractions and

surroundings.

2.Advertising

Successful hotels target specific consumers and will cater their prices, amenities and advertising

strategies to this group. For example, some hotels advertise as an ideal location for business

travelers by giving corporate discounts. This type of hotel also promotes itself as a venue for

business meetings, displaying its on-site conference rooms in magazines aimed at executives.

Robert D. Reid, author of "Hospitality and Marketing Management," advises hotels to veer away

from generic descriptions such as "luxurious rooms" and "bargain price." Instead, Reid

recommends commenting on the specifics of the dcor or customer service. For example, an ad

for a hotel in Hawaii may show an image of its best-selling tropical drink.


4/22

3.Cost Control

Managing costs is a critical factor in a hotel's success. Most hotels vary their rates according to

high and low seasons. Additionally, the establishment of a loyalty program enables hotels to

lower rates for repeat guests while charging different rates for others. One of the ways hotels plan

is through reservations programs that forecast demand beyond 90 days. Michael J. O'Fallon,author of "Hotel Management and Operations," explains how computer programs also enable

managers to identify the customers most willing to spend money and on which items. From this

knowledge, the manager can advertise directly to the person before arrival by offering packages,

upgrades and other incentives. Successful hotels also balance the cost of workers' wages, food

and beverages, and electricity and maintenance with profits deriving from booked rooms,

amenities, gift shops and food and beverages.

4.Product Differentiation

Hotels thrive by offering guests a unique experience. This uniqueness may stem from the

location: A rural hotel in the heart of the Tuscan countryside may offer Italian cooking classes,

whereas a boutique hotel in Morocco might offer a hookah lounge. Other times, the

differentiation is within the hotel itself. Hotels in Las Vegas, for instance, thrive by providing

specific services that cater to the theme of the hotel, such as a Camelot theme or a Grecian dcor.

Leisure and hotels sector sees biggest fall in

insolvencies

Neil Gerrard

Monday 24 September 2012 14:23

The leisure and hotels sector saw a larger drop in the rate of businessinsolvencies in August 2012 than any other sector.

That's the finding from Experian's Business Insolvency Index, which showed

that the insolvency rate in the sector fell from 0.15% in August 2011 to0.12% in August this year.

Overall, insolvencies in August 2012 stood at around the same rate as July2012. There were 1,723 business failures for the month in total. Scottish

firms did well, with an insolvency rate of 0.06% in August 2012 overall. Thepicture in Yorkshire was also relatively good compared with the rest of the


5/22

UK, with a fall in insolvencies among all businesses from 0.1% in Augustlast year to 0.08% in August 2012.

Max Firth, managing director, Experian Business Information Services,UK&I, said: "Since March we've seen insolvency rates flatten out, which is a

positive and welcome trend. In addition, we've seen real pockets ofimprovement, such as in Scotland and Yorkshire, which have been sustainedover a number of months now.

"But firms cannot afford to be complacent. They need to continue sensiblefinancial practices such as risk planning and monitoring their financial health

and those of their customers and suppliers."

By Neil Gerrard

European hotel investments falls 16%Janet Harmer

Thursday 20 September 2012 12:46

London has topped this year's European hotel investment league as theoverall number of transactions across the Continent has dropped by 16%.

While a lack of available debt continues to dampen the market in Europe,

single asset transactions and the sale of development sites have boostedbusiness in London in what is otherwise a depressed hotel investment market.

The scarcity of debt and economic uncertainty will continue to dampeninvestment until at least the end of 2012, according to hotel consultancy

HVS.


6/22

The company's latest hotel transaction figures, released to coincide with thisweek's Hotel Investment Conference Europe in London, show thatinvestment in both single assets and hotel portfolios during 2012 has been

significantly down on 2011 levels.

"Trading has been difficult in recent months for many European markets:even Paris and London have experienced a slowdown," said Tim Smith,director at HVS London.

The first eight months of 2012 saw hotel investment activity in Europe totalaround 2.8b, a 16% decline on the same period in 2011.

Some 46 hotels (around 9,500 bedrooms) were sold - each for more than6m, 28% below the same period in 2011 when 59 like-for-like transactions

took place. Total single asset investment volume reached 1.68b in the firsteight months of 2012, a 10% decline on 2011.

The average sale price per room was 172,000, compared with 208,000 in2011.

As in 2011, the majority of investment has been based in the UK, wherevolume of sales reached more than 800m. In London some 12 hotels

changed hands, including the four-star Cavendish London for just under160m.

A number of hotel development sites have also been sold in London,including the InterContinental Westminster, Hilton Bankside and the Odeon

site in Leicester Square acquired by the Edwardian Group.

A total of nine portfolio transactions involving 29 hotels have taken place inthe first eight months of 2012, reaching a volume of 1.2b. This represents a22% decrease compared with the same period in 2011.

Transactions this year have included the acquisition of six hotels frominvestment vehicle aAim by Principal Hayley for 200m. This was 75m less

than the sum Principal Hayley sold the portfolio to aAim for during theproperty boom in 2006. Principal Hayley went on to sell these properties for90m in a sale-and-leaseback agreement with Pramerica. The whole

Principal Hayley portfolio, consisting of 22 hotels (3,700 bedrooms), hasbeen placed on the market for 500m.

"Until debt becomes more readily available and trading significantlyimproves, it is difficult to estimate when the hotel investment market will

improve but we hope to see transaction figures rising during 2013," addedSmith.


7/22

Choosing a career in the hospitality industrySwati Salunkhe, TNN Jun 18, 2012, 07.35AM IST

Hotel management or hospitality refers to the relationship between a guest and a host, wherein

the host receives the guest with goodwill. Hospitality management refers to management of

hotels, restaurants, travel agencies, and other institutions in the hospitality industry.

Any time people travel, stay in a hotel, eat out, go to the movies, and engage in similar activities,

they are patronising establishments in the hospitality industry. The management of such

establishments is very challenging, as managers need to be flexible enough to anticipate and meet

a wide variety of needs. They must also handle tasks such as training employees, handling staff,

setting standards, and so on. There are no fixed working hours in this field. One must be ready to

work round the clock and even on night shifts. Whoever the customer one faces, one must be

calm, patient and always maintain a smile, and not be arrogant. Immense work pressure, long

hours of work and maintaining harmony with the clients forms an essential part of the industry.

Case Study

Q1What accounts for Westins continued success?

Westin hotels have been in operation since 1930 and have seen many changes during this time which

accounts for its continued success. Princeton.edu defines success as an event that accomplishes its

intended purpose

The following factors are the main reasons that the hotel has been trading successfully for 80 years.

1. They are a first in their industry for many trends etc.2. They are not adverse to spending money on advertising and pr activities.3. They are not adverse to spending money on upgrading and improving facilities and services

for customers.

4. They are willing to take risks.5. They have carried out large amounts of market research by means of surveys etc.6. Their customers are their main focus at all times7. They invested time in ensuring their staff was trained to the highest possible level.


8/22

The case study shows that from the very beginning the company affirmed its focus on people and

culture with the 1954 adoption its trademark slogan People Make the Difference.

In the early years they pioneered such industry firsts as the guest credit card, 24hour room service and

personal voice mail in guestrooms; all things which were previously unheard of but are now almoststandard.

The group knew who its competitors were and which market they were operating in so in the 1990s

they went about getting to the top end of that market segment by introducing a series of new products.

These included the Heavenly Bed, Heavenly Bath and the Heavenly Crib.

All of the above cost the company vast amounts of money and involved a risk, incase the payout

didnt prove worthwhile

By introducing the Heavenly Dog Bed in 2003, the company took a risk, because this is not

something that would appeal to everyone. However they carried out the research and discovered that

there are 29 million people who travel annually with their dogs.

The Bed Programs (exhibit 4, page 13 of the case study) shows that Westins first introduced the

Heavenly Bed in 1999 and has since been copied by many other leading hotels such as Sheraton and

Hyatt. While it took four years for the Sheraton to copy the idea, the other hotels quickly followed

suit then.

The Westin Timeline (exhibit 1 page 10 of the case study) indicates that the company was always a

first in many fields. It also shows that the company was always working on ways to improve their

service offering for customers.

Q2Discuss the relative merits of Blueprinting, Servicescapes and Servuction as conceptual

frameworks for analyzing the service encounter at Westins Hotel.

Conceptual frameworks are used to analyse the service encounter. According to Adrian


9/22

Palmer (2008) services are essentially about processes and cannot be easily reduced to

objective descriptions as in the case of most tangible goods. It is relatively easy to

describe an actual physical product which allows the buyer to judge it. However this is

more difficult in the case of a service encounter, for example a meal in a restaurant.

A large part of this is subjective and difficult to define.

Because of this problem a number of methodologies have arisen to try map out the

service process. Blueprinting was the basic process which became elaborated into the

development of Servicescapes and Servuction.

BLUEPRINTING

This is a method of visually portraying the processes and participants involved in the

production of a service. (Palmer 2008)

Blueprinting is a graphical approach proposed by Kingman-Brundage (1989) to

overcome problems that occur where a new service is launched without adequate

identification of the necessary support functions.

It is particularly helpful in situations where the service production process is complex

because it enables the organisation gain an understanding of how elements of the service

relate to each other. The whole idea is to draw a map of the actual service process which

makes it easy for everyone to follow.

There are three main elements to the blueprinting process =


10/22

o All the principle functions required to make and distribute a service are identified, along withthe responsible company unit or personnel

o Timing and sequencing relationships among the functions are depicted graphically.o For every function, acceptable tolerances are identified in terms of variation from the standard

that can be tolerated without adversely affecting customers perceptions of quality

SERVICE BLUEPRINT COMPONENTS

PHYSICAL

EVIDENCE

CUSTOMER

ACTIONS

LINE OF INTERACTION

ONSTAGE/

VISIBLE

CONTACT

EMPLOYEE

ACTIONS

LINE OF VISIBILITY

BACKSTAGE/

INVISIBLE

CONTACT

EMPLOYEE

LINE OF INTERNAL INTERACTION


11/22

ACTIONS

SUPPORT

PROCESSES

Figure 1. Bitners Service Blueprint Components

A customer blueprint must show all the steps involved in a certain process clearly.

This means all contact or interactions with customers are clearly identified.

These interactions are shown in time sequential order, with the blueprint also being

divided into two zones, a zone visibility and a zone of invisibility.

The zone of visibility includes all processes that are visible to the customer and in which

the customer is likely to participate, for example a waiter taking a customers order in the

restaurant.

The zone of invisibility includes all processes and interactions that, although

are necessary to the proper servicing of a customer, may be hidden from their view, for

example of this could be accommodation staff preparing a bedroom for new guests

arriving.

The blueprint identifies points where consumers may perceive failure in the service


12/22

process. These are the critical incidents on which a customer bases his or her perception

of quality. Identifying these areas can help management focus on ways to improve

them. Blueprinting also indicates the level of tolerance for each event in the process and

indicates action to be taken in the event of failure.

What is important to remember about blueprinting is that marketing, human resource

management and operations management should focus on processes that deliver benefits

that are effective for the customer and efficient for the company.

Target times should initially be set by marketing and based on consumers expected level of service.

SERVICESCAPES

This is a description of the environment in which service delivery takes place. (Palmer

2008)

The concept of a servicescape was developed by Booms and Bitner to emphasize the

impact of the environment in which a service process takes place.

Booms and Bitner defined a servicescape as the environment in which the service is

assembled and in which the seller and customer interact, combined with tangible

commodities that facilitate performance or communication of the service. In the service

encounter the customer is in the factory ad is part of the process. Production and

consumption of the service are simultaneous.


13/22

Factors to be considered when designing a suitable service environment are likely

emotional states and expectations of potential customers.

There are two types of environments, high-load which signifies high information rates

and are associated with uncertainty, novelty and complexity; and low-load which

signifies a low information rate and communicates assurance, homogeneity and

simplicity.

Peoples emotional needs and reactions determine whether they are attracted to high or

low load environments.

The servicescape encourages customers to enter the service environment firstly, and then

tries to retain them.

After entry, the servicescape must be efficient and effective for the service provider in

securing a customers co-operation in the system.

The ultimate goal is that customers will repeat their visit. The environment should leave

no reminders of poor service which cause negative feelings about the service.

SERVUCTION

This is defined as a description of the producer-consumer service production system.

(Palmer 2008)

Servuction concentrates on a consumers perception of the service encounter. The

framework was developed by Eiglier and Langeard (1987) and emphasises experiential

aspects of service consumption.

It is based on the idea of companies providing consumers with complex bundles of


14/22

benefits. (Palmer 2008) the service features of a company are divided into two parts

visible and .

The visible part consist of the physical environment where the service encounter occurs

and the actual personnel who interact with the customers. This is always supported by

the invisible part, which is made up of the support functions. The introduction of

customers completes the model.

This approach is very relevant to services that involve high levels of input from fellow

consumers where consumers can actually create their own bundle of benefits.

Figure 2The Servuction Model

Bundle of service benefits

Based on

-Service processes

Service

offer 1

Core

service

rocess

Other customers

Other customers


15/22

THE FRAMEWORK SUITED TO WESTINS

After examining the three concepts discussed above, I feel that the Westin hotels would

benefit from having a Blueprinting to follow, mainly because of the complexity of the

organisation.

Since the same themes are operated throughout the all the hotels in the

group for example Heavenly Bed, The Breathe Program or The Service Culture

Renewal, it would be ideal to have a general map of the service process.

This way all staff members at each Westins hotel can follow the steps in the blueprint,

which in turn ensures a certain level of consistency throughout the entire organisation.

Because all the steps in the blueprint are clearly identified it makes it easy to replicate the

process for each of the hotels in the group.

The general blueprint could be standardised and adapted to suit each individual hotel.

Some of a blueprints greatest strengths are its versatility and flexibility.

Blueprinting provides communications between operations and marketing on paper before they occur

in real time.

An expected outcome of blueprinting would be that staff recognise shortcomings or

solutions to issues with their own services just as a result of learning the technique.

Staff members become actively involved in the process themselves.

The most important thing to remember is that the customer must remain the focus at all

times. Any issues that arise should be tracked so that they can be worked on and


16/22

improved upon.

The advantages of blueprinting

-Provides a check on logical flow of whole process

-Bottlenecks represent points in system where consumer waits longest.

-Balanced Production Line: Process times and inventories of all steps are same or

consumer never waits for next process

-Managers should recognize benefits of changing system to process consumers more effectively.

ge in process Greet

Customer

Obtain table & give

menuTake Order

Prepare/deliver

ordermeal finished pay for meal

further order

problem with

order

et time (mins) 1 5 5 10 1


17/22

cipants Customer Customer Customer Customer/Cook Customer

Serving Staff Serving Staff Serving Staff Serving Staff Cashier

le Apperance Furniture Food Cash desk reciept

nce of restaurant Menu card Crockery

Apperance Cutlery

of staff

of visibility ______________________________________________________________________________________________________________________________________

ible Staff Cleaning of Order Preparation of food According

esses Training restaurant processing Ordering of supplies procedures

Figure 3Customer Service Blueprint (Adrian Palmer 2008)

There are certain negative points regarding Blueprinting that need to be kept in

mind:

Potential for operations malfunction is high.

Results of the malfunction visible to consumers.

System malfunction is regarded by consumers as particularly significantQ3 Building a brand and delivering consistent service on intangible values is a


18/22

challenge. Critically assess the factors that explain the successful repositioning of the

Westin brand

While goods and services share the general concept of quality, Adrian Palmer (2008)

states that services tend to pose much greater problems in understanding customers

needs and expectations. The intangibility of many service processes can make

measurement of quality much more difficult than for manufactured goods.

Intangibility is the most basic, universally cited difference between goods and services

Zeithmal and Bitner (1996) Pure services present no tangible cues that allow them to be

assessed by the senses of light, smell, sound, taste or touch

One cannot touch or taste a service. Consumers can only judge the quality of a service

once it has been consumed. Factors such as reliability, personal care, attentiveness and

friendliness of staff are very important here.

According to Adrian Palmer (2008) there are certain courses of action that can be taken

to give tangible rudiments to a largely intangible component -

-Tangible goods, which are included in the service offer and consumed by the user. Forexample: offering a free chocolate to a consumer when paying his or her bill.

-The physical environment in which the service is consumed or the purchase process takes

place. For example: having an open fire lighting in the lobby or bar of a hotel on a cold

winters day.


19/22

What is a brand? A brand is a distinctive identity comprising a name, logo, slogan and

or design scheme that distinguishes a service from other services and conveys

expectations about the service. (Adrian Palmer 2008)

Position in the market means the way one service compares in its marketplace in terms

of relevant customer focused criteria.

Overtime brands may need to be repositioned. Many factors can erode a brand such as,

market decline, new technology, changing tastes, rising costs and new competition.

Brand repositioning focuses on increasing volume by winning market share from

competitors.

The following methods can be explored as a means of doing this:

Real Repositioning: the brand may be updated by introducing the latest technology, functions or

design

Psychological Repositioning: the business can try to change the buyers beliefs about the

competitiveness of the brand.

Competitive Repositioning: this involves comparative advertising to try and alter customers beliefs

about a competitors brand.

Reweighting Values: sometimes buyers can be persuaded to attach greater importance to certain

values in which the brand excels.


20/22

Neglected Values: here new choice criteria are introduced to buyers.

Changing Preferences: this involves trying to switch the preferences of buyers. Buyers could be

convinced to switch from low price products to brands that offer higher quality and value.

Augmenting the Brand: the competitive position of a brand may be enhanced by offering additional

products and services alongside the core product offering.

The above quote by Sue Brush, Senior Vice President and global brand leader for Westins Hotels &

Resort indicates the type of challenge faced by the company operating in an environment such as this.

Out of the repositioning methods outlined above it is possible that the company combined some of

these strategies in an attempt to achieve success for the group.

For exampleReal Repositioning and Neglected Values.

Both of these strategies involve introducing new products or services that will be of benefit to their

customers and enhance their stay, ensuring that they will return.

Sue Brush explained We mastered the sleep experience, the bath experience, the fitness experience

While introducing such benefits was their initial strategy, it was unclear how long this could last and

the company feared that this strategy would be economically unsustainable

The company then went on to adopt a lifestyle brand strategy. The idea was to provide guests with a

new service experience. It became known as Service Culture Renewal and involved a combination of

sensory, visual and verbal symbols, signature products and services intended to elicit relaxation

The customer became the main focus of this experience, with a lot of focus on enhancing customers

emotional experiences


21/22

The main reason behind switching strategies was that they feared they could not profitably maintain

their product strategy for much longer. According to Sue Brush it is not that we are switching gears

and going in a different direction, we are simply leveraging the product strategy into the lifestylestrategy because we see the product strategy pricing us out of the market over time

By introducing this strategy they also reduced costs by eliminating products that did not add any value

to the brand, for example changing from a four cup to a one cup coffee brewer.

The mission of this new strategy was to achieve a successful brand through personal renewal.

Another major facet of the new brand was the added emphasis on customer service through staff

training. This became known as Service Culture Renewal. It focused on first impressions and

involved improving speed of check in and staff friendliness.

A new training initiative was launched and staff became known as experience engineers. The

training focused on core value, communication skills and team issues.

A number of initiatives were introduced in an attempt to encourage staff such as Dream Westin and

Westin Workout.

The company spent money on a huge advertising campaign to launch this new strategy, which

included television spots, print and online advertising.

Revenue Per Available Rom (exhibit 2, page 11 of the case study) shows how the Westin brand

received the one ranking for upscale hotel from JD Power and Associates.


22/22

The Guest Satisfaction Surveys (exhibit 8, page 17 of the case study) indicates that the Westin Hotel

was above average each year from 2001 to 2006. This is a clear sign that they are doing something

right and that perhaps their strategies are working

Documents

Services Practiced in a Hotel Industry