Presentation on theme: "Product and Service Management Chapter 9. Unit Essential Question How do special services, image, and risk management affect the product and service plans."— Presentation transcript:
Product and Service Management Chapter 9
Unit Essential Question How do special services, image, and risk management affect the product and service plans of a restaurant or hotel?
Essential Question 1 What is the product and service mix and how is it used to rate hotels and restaurants?
Hotel Product and Service Planning Attitudes, Amenities, and Attractions in Lodging –Total Product Concept: –Total Product Concept: The sum of the marketing and service approaches taken to reach and please a market segment. – –Product and Service Mix: The various products and types of services available for customers. Includes building exteriors, signage, staff behavior and appearance, equipment, furniture, and fixtures. Many of the back-of-the-house equipment and facilities are a vital, though rarely seen, aspect of a hotel’s product and service mix.
Hotel Product and Service Planning –Get An Attitude True Service: Genuine caring and assistance provided by hotel personnel to their guests; not to be confused with the intangible products called services. –Learn guest’s names and refer to them by title and surname. –Greet guests and co-workers cordially. –Make eye contact and smile. –Offer assistance when needed. –Use proper and professional language - no slang. –Be sincere when saying “Thank you” and “Have a nice day.” –Be genuinely concerned for guests and their problems. –Be creative when solving guest’s problems. –Give guests options when offering solutions to problems.
Hotel Product and Service Planning –Don’t take guests complaints personally. –Be alert to situations that might get out of hand and get help before things get out of control. –Remember that a hospitality professional remains hospitable and professional regardless of any situation. All employees (front desk agent, bell person, switchboard operators, room service order takers, or any other employee who makes contact with a guest) should make it a point to learn the guest’s name and use it courteously. Empowerment: Giving employees the authority to immediately solve a guest’s problem or complaint. – –Empowering employees requires good training and managers who are confident that the employees will use good judgement when appeasing guests.
Hotel Product and Service Planning –Amenities Cable TV and in-room movies. – –42% of guests watch the Weather Channel. – –17% of guests watch C-Span. Fully stocked mini bars and refrigerators. Hair dryers, irons, and ironing boards. Personal-size bottles of shampoo, lotions, and mouthwash. Thick, terry-cloth robes. Personal safes to store valuables. Cordless phones. Pillow-top mattresses.
Hotel Product and Service Planning Dataports and/or wireless technology. VCRs, DVDs, and video game sets. Jacuzzi tubs. Complimentary and/or health-conscious meals. Concierge services. Fitness facilities or health clubs. Express check-in and check-out. Jogging trails or jogging escorts for women. Bibles – –3.4 million bibles in hotel rooms nationwide. – –23% of hotel guests actually read the bible in the room. – –All Marriott full-service hotels also have the Book of Mormon.
Hotel Product and Service Planning –Attractions Packages: A combination of related services in a single- priced product. – –They are attractive to customers because they are easy to arrange and budget friendly. – –They are used to increase business during off-peak season as well as to encourage repeat business. – –They enhance the relationship between the business, customer, and supplier. Building and maintaining a long term relationship between business, customer, supplier and intermediary is known as relationship marketing. – –Should contain at least one main attraction, known as a demand generator.
Hotel Product and Service Planning – –Some packages include programming: A combination of special activities, events, or programs designed to appeal to customers’ interests. All-inclusive packages: Round-trip air fare, ground transportation, lodging, meals, drinks, entertainment, recreation, tax, and gratuities. Lodging and meals packages: At least one night lodging with meals. - American plan includes three meals a day. - Modified American plan includes two meals a day. - Bed & Breakfast plan includes one meal a day including breakfast. - European plan includes no meals. Transportation packages: Includes fly-drive, fly-cruise, fly-rail, and rail-drive. Event packages: Planned around special events, festivals, or sporting events.
Hotel Product and Service Planning Special-interest packages: Includes lodging, transportation, and activities or events. Family vacation packages: Offers something for families with children. Affinity group packages: Groups that have similar interests or share a close religious, social, or ethnic bond. Convention and meeting packages: Includes accommodations and meals and may include local tour or attraction admissions. Incentive packages/tours: Usually sold to companies or associations that offer the package as a reward. Rating Systems For Hotels – –1 to 5 stars used by the Mobil Travel Guide. – –1 to 5 diamonds used by the American Automobile Association (AAA).
Essential Question 2 What are the various services offered by hotels?
Special Hotel Services People Serving Well – –Concierge: A person whose duty is to assist and accommodate guest’s requests that is legally and humanly possible. –Bell Staff Responsible for welcoming guests as they arrive at the hotel. Gives guests the red-carpet treatment. Provides personalized service and assistance as well as deliver extra amenities (dry cleaning, laundry, or other requested items)
Special Hotel Services –Valet Services: –Valet Services: Does laundering or cleaning of guests’ clothes. –Shuttle Services: –Shuttle Services: Transportation to and from airports, train stations, ports, or local attractions. Technology For Hotel Guests – –Hotels must stay ahead of technology in order to provide the best service for their guests. – –HITIS (Hospitality Industry Technology Integration Standards) is an effort established by the hospitality industry to standardize common data and software used by hotels.
Essential Question 3 How does hotel atmosphere, furnishings, and uniforms relate to the hotel image?
Your Hotel Image Is Showing Hotel Atmosphere and Environment – –The positive reputation of a company is one of its most important attributes. –The Exterior View The physical facility must be attractive and in good repair. First impressions are lasting impressions and guests make many assumptions and decisions based on these impressions. Looks are everything.
Your Hotel Image Is Showing –Hotel Furnishings When considering the interior of a specific property, ask: – –Is there a specific design theme for this property? – –Does the theme represent the geographical location of the property? – –Do the guest rooms and public spaces reflect the theme? – –Is the lighting ample? Does it compliment the ambiance of the property? – –Are the fabrics used in the rooms dated? – –Is technology part of the package offered by the hotel? Are the desk and working area large enough? – –Does this property have any specific overall look that makes it special and different from the competition?
Your Hotel Image Is Showing Hotels redesign their guest rooms every five to seven years. Many hotels are renovating lobbies and common areas to provide a more up-to-date and guest friendly look. –Uniforms and Dress Code Standards Employee uniforms and dress code can greatly enhance or totally ruin the image of a hotel. Properly fitted, attractive uniforms, name tags, and excellent personal grooming create a professional image that sends a positive message to guests. Many hotels will include the employee's first name, town and state, or native country where the employee was born and raised on their name tags to promote the idea the hotel is a global company.
Essential Question 4 What are the types of insurance coverage available to hotels and the common security measures used in the lodging industry?
Risk Management Property and Liability Insurance –Risk: –Risk: The possibility of financial loss. – –Risk can be managed by using the best available marketing information, analyzing opportunities, and making decisions to balance risk with adequate monetary returns. –Risk Management: –Risk Management: Things businesses do to eliminate or decrease risk.
Risk Management –Types of Risk Economic Risks: Occur from changes in overall business conditions. –Amount or type of competition –Changing consumer lifestyles –Population changes –Product obsolescence –Government regulation –Inflation –Recession
Risk Management Natural Risks: Result from natural causes. –Floods –Tornados –Hurricanes –Fire –Lightning –Droughts –Earthquakes –Unexpected changes in normal weather conditions
Risk Management Human Risks: Caused by human mistakes and the unpredictability of employees and customers. –Customer or employee dishonesty –Employee carelessness –Employee incompetence –Customer or employee accidents –Employee illness –Customer non-payment of accounts
Risk Management Risk Prevention and Control –Screening and Training Employees –Providing Safe Conditions and Safety Instruction –Preventing External Theft –Controlling Employee Theft
Risk Management –Risk Transfer Purchasing Insurance –Insurance policy: –Insurance policy: A contract between a business and an insurance company to cover certain business risks. –Property Insurance: –Property Insurance: Covers damage or loss to the building, equipment, machinery, furniture, and fixtures. –Liability Insurance: –Liability Insurance: Protects businesses from losses or damage claims by customers or guests. –Worker’s Compensation Insurance Guarantees and Warranties
Risk Management Transfer through Ownership –Sole Proprietorship –Partnership –Corporation –Limited Liability Company (LLC) –Risk Retention Businesses retain certain business risks and assume the responsibility for them because it is impossible to prevent or transfer these risks. –Risk Avoidance Foresight and anticipation will allow businesses to avoid certain risks.
Risk Management Hotel Security – –Hotels are required to provide reasonable efforts to ensure that guests are safe and secure, they are NOT required to guarantee safety. –Guest Security Guidelines: Never open the door to strangers. Change rooms if the door locks are not secure. Lock doors and windows at all times. Make sure the room has solid doors, locks, and peepholes. Use the peephole.
Risk Management Check with the front desk if someone who claims to be with hotel staff wants entry into your room. Call the front desk or security if you see someone acting suspiciously. Never leave your room key in the room when you are away. –Hotel Security Guidelines: Guest-assigned room numbers should not be revealed to anyone except the guest at time of check-in. Room keys or key cards must not have the room number on them. The room number should not be spoken out loud if other people are within hearing range.
Risk Management Master keys should be kept in a safety box with a sign out log. Housekeeping and engineering staff should be properly trained in safe room-entry procedures. Housekeepers should pull the cart across the entrance to the room to reduce access to the guest room when cleaning it. –An average size hotel has 25 to 50 surveillance cameras on the property. Most are located in the parking areas, lobbies, and back stairwells. –25% - 35% of all hotel crimes occur in parking lots.
Risk Management –Security Training The people responsible for the day-to-day operations of the hotel are the front lines of security. Wise hotel managers consider safety and security as part of every employee’s responsibility and provide training to support that philosophy. Employees must have confidence in their training and ability to deal with emergencies or threatening or potentially dangerous situations.
Essential Question 5 What are the basic concepts and major factors considered when creating a product and service plan for a restaurant?
Restaurant Product and Service Management Product Planning –Product Planning: –Product Planning: Deciding what products to sell and what services are necessary to sell those products. – –Restaurateurs pay close attention to consumer’s eating habits and emerging trends in food products and services to remain competitive. – –The National Restaurant Association publishes an annual Industry Operations Report, which allows restaurateurs to compare their operations with competitors in several categories.
Restaurant Product and Service Management –Influences on Restaurant Cuisine: Media, food columnists, and TV celebrity chefs. Increase disposable income. More working mothers with less food preparation time. Aging Baby Boomers who are interested in healthy cuisine. The population travels more and has a greater interest in varied cuisine.
Restaurant Product and Service Management –Choosing Appealing Products: Basic Family Appeal: Familiar, good value, easy to take out, fun for family dining, generally appealing to all customers. Festive Appeal: Festive Appeal: Good for celebrations; rich, indulgent desserts; hearty portions; atmospheres that put customers in a good mood. Traditional fine dining or Old World traditional appeal: Traditional fine dining or Old World traditional appeal: Food for formal or special occasions; expensive; rich, indulgent food and deserts; not for adventurous diners.
Restaurant Product and Service Management Authentic and Mild Appeal: Food that is difficult to prepare at home; mild pleasant flavors and beautiful presentations; usually preferred by young, upscale consumers. Adventurous and Spicy Appeal: Adventurous and Spicy Appeal: Food is hot and spicy with unique flavors that are difficult to prepare at home; Often innovative and authentic. Innovative and Trendy Appeal: Innovative and Trendy Appeal: Food may be a combination of different ethnic features, not necessarily authentic, lots of variety, menu items are always changing.
Restaurant Product and Service Management Service Planning –Counter Service: Fast-food or quick serve restaurants, limited menus, take-out and drive-thru lines are usually available. –Trayline Service: –Trayline Service: Found in cafeterias, all-you- can-eat buffets, schools and hospitals. –Seated Service: –Seated Service: Customers are seated and the wait staff take the order and delivers it to the kitchen staff.
Restaurant Product and Service Management –Factors to Consider: