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The Art of Hospitality: Thoughts on Service, Customer Value and Experience Creation Coaches: Robert J. Harrington, PhD, MBA & Byron Marlowe, PhD Candidate, MBA Hospitality and Wine Business Management Carson College of Business Washington State University, Tri-Cities Campus

TAOH Talk Module 1 Feb 2016 Final

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Page 1: TAOH Talk Module 1 Feb 2016 Final

The Art of Hospitality: Thoughts on Service, Customer Value and Experience Creation

Coaches:Robert J. Harrington, PhD, MBA

&Byron Marlowe, PhD Candidate, MBA

Hospitality and Wine Business ManagementCarson College of Business

Washington State University, Tri-Cities Campus

Page 2: TAOH Talk Module 1 Feb 2016 Final

Agenda

• “Everything I learned about service is from children’s books”

• The Art of Hospitality defined• Session 1: The Art of Thinking Small

– Individualized, Co-created Services• Session 2: The Art of the Experience

– Experiential Value Opportunities• Session 3: ‘People are Messy’

– The Good, Bad and Ugly of Customer Service

Page 3: TAOH Talk Module 1 Feb 2016 Final

Attitudes about Service

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Attitudes about Service

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“The Art of Hospitality”

Page 6: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

+H

Tao is a Chinese concept signifying 'way', 'path', 'route', or sometimes

more loosely, 'doctrine' or 'principle'.

Page 7: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

Why?What does it mean?

+H

• Trends• Change/Adaptation• Need for differentiation• Increased competition• Higher guest expectations

Page 8: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

“The art of thinking

small”

Page 9: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

“The art of thinking

small”

“The art of creativity & innovation”

Page 10: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

“The art of thinking

small”

“The art of creativity & innovation” “The art

of tacit knowledge”

Page 11: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

“The art of thinking

small”

“The art of creativity & innovation” “The art

of tacit knowledge”

“The art of the

experience”

Page 12: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

“The art of thinking

small”

“The art of creativity & innovation” “The art

of tacit knowledge”

“The art of the

experience”

“The art of exceeding

expectations”

Page 13: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

“The art of thinking

small”

“The art of creativity & innovation” “The art

of tacit knowledge”

“The art of the

experience”

“The art of exceeding

expectations”

“Instilling the hospitality

heart”

Page 14: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

“The art of thinking

small”

“The art of creativity & innovation” “The art

of tacit knowledge”

“The art of the

experience”

“The art of exceeding

expectations”

“Instilling the hospitality

heart”

Page 15: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

“The art of thinking

small”

Page 16: TAOH Talk Module 1 Feb 2016 Final

“The Art (and Science) of

Hospitality”

“The art of thinking

small”Co-creation conceptKey aspects:- Not restricted to

the best available choice

- Communication and involvement differences

- Value-in-use vs. product/service value

Page 17: TAOH Talk Module 1 Feb 2016 Final

“The Art (and Science) of

Hospitality”

“The art of thinking

small”Co-creation conceptKey aspects:- Not restricted to

the best available choice

- Communication and involvement differences

- Value-in-use vs. product/service value

The “Paradox of

Choice”

Page 18: TAOH Talk Module 1 Feb 2016 Final

“The Art (and Science) of

Hospitality”

“The art of thinking

small”Co-creation conceptKey aspects:- Not restricted to

the best available choice

- Communication and involvement differences

- Value-in-use vs. product/service value

- Barriers and opportunities

- Continuum based on type of service, staff and customer

- Trust, technology, training, and cultural needs

Page 19: TAOH Talk Module 1 Feb 2016 Final

“The Art (and Science) of

Hospitality”

“The art of thinking

small”Co-creation conceptKey aspects:- Not restricted to

the best available choice

- Communication and involvement differences

- Value-in-use vs. product/service value

- Barriers and opportunities

- Continuum based on type of service, staff and customer

- Trust, technology, training, and cultural needs

Challenges:• Customer

engagement needs

• Idiosyncratic needs

• Training and development

• Other barriers

Outcomes:• Differentiation• Experiential value• Loyalty• Delight• Vivid memories• Positive word of

mouth

Page 20: TAOH Talk Module 1 Feb 2016 Final

“The Art (and Science) of

Hospitality”

“The art of thinking

small”Co-creation conceptKey aspects:- Not restricted to

the best available choice

- Communication and involvement differences

- Value-in-use vs. product/service value

Related research:- Barriers and

opportunities for hotels

- Contrasts to co-production

- The conceptualization in tourism and hospitality

Example

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Elev

en M

adiso

n Pa

rk R

esta

uran

t

175295

155/225

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Co-Creation Discussion• Individually – write down 2-3 examples of services your

firm/you provide that might be considered as a form of co-creation

• Separate into groups of 3-4• Discuss as a group after sharing your examples:

– What types of products/services lend themselves to a co-created service approach?

– What product/service types might be offered in a more co-created format in the future?

– What are the barriers and opportunities?• Each group will share their favorite example(s) and a

recommended co-created service in that might be utilized

Page 23: TAOH Talk Module 1 Feb 2016 Final

Key Points/Takeaways?

• The Journey Toward Uniqueness!• Innovate and Co-create!• Organizational, Situational and Personal

Factors– Impact co-creation levels

• Paradox: Choice vs. Personalized• Past, Present and Future!

– Success requires greater engagement by all actors

Page 24: TAOH Talk Module 1 Feb 2016 Final

SESSION 2: THE ART OF THE EXPERIENCE

Break Time!

Next Up -

Page 25: TAOH Talk Module 1 Feb 2016 Final

Otherness: A Cure for the Mundane

Page 26: TAOH Talk Module 1 Feb 2016 Final

Otherness: A Cure for the Mundane

Page 27: TAOH Talk Module 1 Feb 2016 Final

Otherness: A Cure for the Mundane

Page 28: TAOH Talk Module 1 Feb 2016 Final

“The Art of Hospitality”

“The art of thinking

small”

“The art of creativity & innovation” “The art

of tacit knowledge”

“The art of the

experience”

Experience Economy

Page 29: TAOH Talk Module 1 Feb 2016 Final
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Page 31: TAOH Talk Module 1 Feb 2016 Final

The 4 Realms of an Experience

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Page 33: TAOH Talk Module 1 Feb 2016 Final

“The art of the

experience”

Education:• Learning as a

consumer motivation in wine tourism continues regardless of demographics or life cycle stage.

• Is less important to repeat visitors then first time visitors.

“Enhanced knowledge or skills involving

products”

Page 34: TAOH Talk Module 1 Feb 2016 Final

“The art of the

experience”

Entertainment:• “Edutainment” the

synthesis of the educational and entertainment experiences in the experience economy.

• Wine is positioned as a luxury item that includes a lifestyle inclusive to art and culture.

“Engaged by performers”

Page 35: TAOH Talk Module 1 Feb 2016 Final

“The art of the

experience”

Esthetics:• The evaluation of

the consumption of wine, as it takes place in the tasting room, has much in common with consuming music and art.

• An immersion in a sensual environment.

“Enriched by unique environments”

Page 36: TAOH Talk Module 1 Feb 2016 Final

“The art of the

experience”

Escapism:• An immersive activity

wherein consumers are engrossed in a different time or place.

• It is suggested that less then 25% of winery tasting room visitors have identified tasting and buying wine as their main purpose for visiting a winery.

“Engrossed as a participant in a different place”

Page 38: TAOH Talk Module 1 Feb 2016 Final

Example: 21c Museum HotelYouTube of Concept

https://www.youtube.com/watch?v=pW0ofz7Lrgk

Page 39: TAOH Talk Module 1 Feb 2016 Final

4E Inventory Audit Exercise

• 4E Audit: Chart included in your packet• In each “E”, identify activities, displays,

materials, customer interaction, that represent each of the 4Es.

• Some of these may be listed in two or more.– This is a “good” thing– Remember “Edutainment”

Page 40: TAOH Talk Module 1 Feb 2016 Final

The 4Ps Educational Experience Esthetic Experience Entertainment Escapist Experience

Traditional Marketing

Components

Contributing to the consumer’s knowledge, skill or personal

development

Immersing the consumer in unique, harmonious, and

sensory appealing environment

Experience Absorbing the consumer

in a performance

Providing ways for consumers to actively participate in creating a different sense of place or time

Each element should add sensory pleasure, meaning (stories or insights), and personal relevance for the consumer.

Product:“The core and augmented experience”

B&B or winery has heritage rose garden labeled with varieties names and history.

Windows of store, shop, or winery frame an outdoor view, while the ceiling is painted with a celestial pattern.

Retail or restaurant has large fish in wall-sized tanks provide activity to watch

Bridal or florist shop windows resembling church stained-glass

Fishing guide tells stories during fishing excursion.

Price:“An experience has greater economic value”

A class on pairing cheese and wines includes take home materials.

Tasting menu includes gift of linens or pre- printed elegant note cards.

Private spaces used for folk dance performance or cabaret event.

Wines or jams are custom labeled with customers’ art work.

Place: Distribution “Sharing the experience”

Winery hosts special tastings for trade professionals, earning them “certification”.

Custom labels are created for products for sale at restaurants or special stores.

Watching videos of how products are made or how buyers select products while waiting.

Apple-scented business cards used by pick your-own apple farm.

Promotion: “Invitation to thememorable experience”

Brochure supplies historical fun facts followed by a quiz for children or adults. Send in quiz for a drawing to win a free gift.

Photo contest for visitors selects the best to be published in a glossy coffee table book.

Product catalog provides funny testimonials from customers.

Slide show played on property and web shows customers stomping grapes during harvest festival.

Page 41: TAOH Talk Module 1 Feb 2016 Final

Wrap Up & Leveraging the 4Es

Incorporate all of the 4Es to maximize experiential value.

• Specialize in one or more of the 4Es.

• Use multiple strategies to highlight all the 4Es.

• Underscore the 4Es in all communications.

Page 42: TAOH Talk Module 1 Feb 2016 Final

SESSION 3: PEOPLE ARE MESSY

Break Time!

Next Up -

Page 44: TAOH Talk Module 1 Feb 2016 Final

Augustus: Gluttony – excess in eating or drinking.

Page 45: TAOH Talk Module 1 Feb 2016 Final

Mike Teavee: Obsession – a persistent preoccupation.

Page 46: TAOH Talk Module 1 Feb 2016 Final

Veruca Salt: Greed – a selfish desire for something.

Page 47: TAOH Talk Module 1 Feb 2016 Final

Violet Beauregarde: Addiction – a strong need to have or do

something.

Page 48: TAOH Talk Module 1 Feb 2016 Final

Charlie Bucket: A sense of delight, engaged and enjoying

the experience.

Page 49: TAOH Talk Module 1 Feb 2016 Final

“The Art (and Science) of

Hospitality”

“The art of thinking

small”

“The art of creativity & innovation” “The art

of tacit knowledge”

“The art of the

experience”

“The art of exceeding

expectations”

“Instilling the hospitality

heart”

Page 50: TAOH Talk Module 1 Feb 2016 Final

The Capital Hotel, Little Rock"Southern Comfortable"

Page 51: TAOH Talk Module 1 Feb 2016 Final

About Our Founder:• As a female pioneer in a male-dominated

industry, our founder, Ruth Fertel, recognized the value of each and every employee’s contribution to her success, regardless of race, gender, ethnicity, religion or creed. As an Equal Opportunity Employer, we continue to value the unique differences of each and every team member, guest, franchisee and vendor.

•We'd love to hear how you think you'd fit into our extraordinary culture.

• The legacy began when Ruth Fertel mortgaged her home for $22,000 to purchase "Chris Steak House," a 60-seat restaurant located in New Orleans, Louisiana in 1965.

• Their success continues to be driven by our adherence to Ruth's core values.

Our Mission:• We devote ourselves every day to

upholding the highest standards of quality, value and hospitality. Here, pride and integrity are a way of life, where going the extra mile isn't a chore but a part of our moral code.

Page 52: TAOH Talk Module 1 Feb 2016 Final

Fairmont’s Canine Ambassadors Known for thoughtful and welcoming service, Fairmont Hotels & Resorts offers a distinctive service at select hotels with resident hotel dogs known as Canine Ambassadors. Travelers missing their own furry friend or looking for a companion while taking a walk can bring along the resident Fairmont dog for extra security and the comfort of home.

Page 53: TAOH Talk Module 1 Feb 2016 Final

Customers: The Good, Bad & UglyBlondie: [spits] “God's not on our side because he hates idiots also.”

Individually, note an experience with a customer that you would define as:• The Good• The Bad• The Ugly

Page 54: TAOH Talk Module 1 Feb 2016 Final

Customers: The Good, Bad & Ugly• Separate into groups of 3-4.• Discuss as a group after sharing your examples:

– What experiences were similar and different in each customer example? Good, Bad and Ugly

– What opportunities does this suggest for • Assessing customer types?• Assessing customer needs/moods?• Breaking down communication or other barriers in the

customer experience?

• Each group will share their favorite example in each category and a recommended approach to minimize the bad or move to the good

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Takeaways? The Art of Hospitality

• How might we use the concept of co-creation in our service delivery?

• How do we add value for our customers? How best to communicate benefits that resonate?

• What elements of an experience are strengths or weaknesses in our service delivery (Education, Esthetics, Entertainment, and Escapism)?

• What techniques can I try to maximize “the good” customers or move “the bad” to “the good”?

Page 56: TAOH Talk Module 1 Feb 2016 Final

The Art of Hospitality: Thoughts on Service

Key Points:• Attitudes matter – don’t allow yourself to feel like “just an

old stump”! Bring your “A” game – a caring attitude!• Co-created experiences demand:

– Organizational, situational and personal factors to line up• Create a rapport (Greeting within 10 seconds – then follow their lead on

volume, tempo, tonality; make eye contact)• Ask appropriate questions (how are you? Where have you been? Do you

drink wine often? Collect wine? Etc.)• Don’t dumb down too much or overwhelm with too much trivia• Avoid “but” - use “and” instead, • avoid “got to”, “must”, “have to” - use “might” or “could”• Selling is indirect and decision is theirs!

Page 57: TAOH Talk Module 1 Feb 2016 Final

The Art of Hospitality: Customer Value

Key Points:• Being enthusiastic is easy - if you can define the value

and benefits you provide. • Depending on your primary, secondary and tertiary

customer segments this may vary.• The value may be based on a more holistic view of the

experience.• Value is not permanent – it changes over time for each

customer and in your competitive set.

Page 58: TAOH Talk Module 1 Feb 2016 Final

The Art of Hospitality: Experience Creation

Key Points:• Experience defined by an interaction of four elements

– Educational: Contributing to the consumer’s knowledge, skill or personal development

– Esthetic: Immersing the consumer in unique, harmonious, and sensory appealing environment

– Entertainment: Experience Absorbing the consumer in a performance

– Escapist: Providing ways for consumers to actively participate in creating a different sense of place or time

Performing a 4E Internal Audit? Chart included in your packet