1. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Introduction….. Chapter 11 – Managing Hospitality “The Decline of Service and the Devaluation of Product in the Hospitality Industry; Who's in Charge and Who Will Lead the Way?” http://www.hotel- online.com/News/PR2006_1st/Jan06_ServiceDecline.html

2. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Chapter 11 – Managing Hospitality Chapter Focus Points A. Importance of hospitality to the hotel guest and the hotel entrepreneur B. Managing the delivery of hospitality C. Total quality management (TQM) applications D. Developing a service management program

3. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved The Cost of Poor Hospitality Service America! by Albrecht and Zemke). 96% of unhappy customers are never heard from. For every complaint received, the average company in fact has 26 customers with problems, 6 of which are serious problems. Complainers are more likely than non-complainers to do business again with the company that upset them, even if the problem isn’t satisfactorily resolved. The average customer who has had a problem with an organization recounts the incident to more than 20 people. Customers who have complained to an organization and had their complaints satisfactorily resolved tell an average five people about the treatment they received.

4. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Management’s Role A. Long range commitment, not a quick-fix B. Management’s financial commitment to the success of the program. 1. motivational programs vs. money a. p. 310 - Review Mark Heymann’s insights on the importance of satisfied workers in delivering customer satisfaction.

5. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved The Service Strategy Statement Service strategy statement as formal recognition by management that the hotel will strive to deliver the products and services desired by the guest in a professional manner. A. Identification of guest needs based upon the customer’s view point and student’s experience 1. Quick and efficient delivery of products and services 2. Avoid long lines 3. Information on hotel and immediate vicinity

6. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Service Strategy Statement cont’d. 4. Product performance 5. Security in the hotel 6. Albrecht and Zemke’s identification of guest needs a. Care and concern from service providers b. Spontaneity – people are authorized to think c. Problem solving – people can work out the intricacies of the problems d. Recovery – will anybody make a special effort to set a problem right

7. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved The Customer B. Discuss Johnson and Layton’s quote “It is only through the eyes of a customer that definition of service quality can be obtained.” C. Review Figure 11-3 customer comment card survey. p. 314 D. Review Figure 11-4 hotel guest service survey. p. 315

8. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Dissatisfiers vs. Satisifiers Discuss Cadotte and Turgeon’s survey results. 1. Dissatisfiers – complaints for low performance, e.g. parking 2. Satisfiers – unusual performance elicits compliments, but average performance or even the absence of the feature will probably not cause dissatisfaction or complaints, e.g. atrium type lobbies

9. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Dissatisfiers v. Satisfiers cont’d. 3. Critical variables – capable of eliciting both positive and negative feelings, depending on the situation, e.g. cleanliness, quality of service, employee knowledge and service, and quietness of surroundings 4. Neutrals – factors that received neither a great number of compliments nor many complaints are probably either not salient to guests or easily brought up to guest standards.

10. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Developing the Service Strategy Statement A. Commitment from top-level ownership and management that service is a top priority in the company B. Commitment to develop and to administer a service management program C. Commitment to train employees to deliver service efficiently D. Commitment of financial resources to develop incentives for the employees who deliver the services E. Service strategy statement of the Four Seasons as listed in the chapter – pp. 316-317

11. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Financial Commitment $$$$$ Staff time to think through a plan Staff time to develop employee motivational programs Motivational programs as an investment

12. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Developing a Service Management Program Review guest cycle (refer to Figure 11-6) – pp. 320-321 A. Define from Albrecht and Zemke’s work as “Episodes in which a customer comes into contact with any aspect of the company, however remote, and thereby has an opportunity to form an impression.” B. Guest Report Card - “which is the basis of a grading system that leads the customer to decide whether to partake of the service again or to go elsewhere.” C. Employee Buy-in Concept D. Discuss Albrecht and Zemke’s concept of the “last four feet “it’s up to the people in the store to take over at the last four feet.”

13. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Service Management Program cont’d. Screening Employees Who Deliver Hospitality Discuss Albrecht and Zemke’s statement “A service person needs to have at least an adequate level of maturity and self esteem. He or she needs to be reasonably articulate, aware of the normal rules for social context, and be able to say and do what is necessary to establish rapport with a customer and maintain it. And third, he or she needs to have a fairly high level of tolerance for contact.”

14. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Service Management Program cont’d. Empowerment Management’s act of delegating certain authority and responsibility to front-line employees. Within a certain dollar limit range

15. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Service Management Program cont’d. Evaluating the Service Management Program 1. Use moments of truth as identifiers. 2. Use of customer comment cards. 3. Direct inquiry by front desk clerk during check out. 4. Immediate inquiry as the service is being provided.

16. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Service Management Program cont’d. Follow-Through –The commitment to hospitality is not a casual one; it requires constant attention, research, training, and evaluation. Interfacing with other Departments –The best benefit of TQM; it dispels the “its- not- my- job- attitude.” –Hilton’s – “Hilton Pride Program” p. 329 –Delta Hotels recipient of Canada Awards for Excellence Trophy 2000 from the National Quality Institute pp. 329-330

17. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Customer Relationship Management Customer Relationship Management (CRM) – a system that allows hotel managers to integrate technology to support customer service techniques tat lead to top-notch customer service. –Guest recognition –Data capture and maintenance –Channel integration and consistency –Ranking and discrimination –Two-way personalized dialogs

18. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Group Time Case 1101 or Case 1102