The Reservation Nightmare H. James Harrington, a noted quality consultant, related the following story in Quality Digest magazine: I called to make a flight reservation just an hour ago. The telephone rang five minutes before a recorded voice answered. ‘’Thank you for calling ABC Travel services,’’ it said. ‘’To ensure the highest level of customer service, this call may be recorded for future analysis.’’ Next I was asked to select from one of the following choices: ‘’ If the trip is related to company business, press 1.Personal business, press 2. Group travel, press 3.” I pressed 1. I was then asked to select from the following choices: “If this is a trip within the United States, press 1.International, press 2.Scheduled training, press 3. Related to conference, press 4.” Because I was going to Canada I pressed 2. Now two minutes into my telephone call, I was instructed to be sure that I had my customer identification card available. A few seconds passed and a very sweet voice came on, saying, “All international operators are busy, but please hold because you are a very important customer.’’ The voice was then replaced by music. About two minutes later, another recorded message said, “Our operators are still busy, but please hold and the first available operator will take care of you.’’ more music. Then yet another message: ‘’ Our operators are still busy, but please hold. Your business is important to us.’’ more bad music. Finally the sweet voice returned, stating, ‘’to speed up your service, enter your 19-digit costumer service number.’’ I frantically searched for their card, hoping that I could find it before I was cut off. I was lucky; I found it and entered the number in time. The same sweet voice came back to me, saying, ‘’ to confirm your service number, enter the last four digits of your customer service number, enter the last four digits of your social security number.” I pushed the four numbers on the keypad. The voice said: ‘’ Thank you. An operator will be with you shortly. If your call is emergency, you can call 1-800-CAL-HELP, or push all of the buttons on the telephone at the same time. Otherwise, please hold, as you are a very important customer.” This time, in place of music, I heard a commercial about the service that the company provides. At last, a real person answered the telephone and asked,’’ Can I help you? ‘’ I replied, ‘’ Yes, oh yes.’’ He answered, “Please give me your 19-digit customer service number, followed by the last digit of your social security number so I can verify who you are.’’ (I thought that I gave these numbers in the first place to speed up service. Why do I have to rattle them off again? I was now convinced that he would call me Mr. 5523-3675-0714-1313-040. But, to my surprise, he said: “Yes, Mr. Harrington. Where do you want to go and when?” I explained that I wanted to go to Montreal the following Monday morning. He replied: ‘’ Ionly handle domestic reservations. Our international desk has a new number: 1-800-1WE-GOTU. I’ll transfer you.’’ A few clicks later a message came on, saying. ‘’All of our international operators are busy. Please hold and your call will be answered in the order it was received. Do not hang up or redial, as it will only delay our response to your call. Please continue to hold, as your business is important to us.” DISCUSSION QUESTIONSSummarize the service failures associated with this experience.What might the travel agency have done to guarantee a better service experience for Mr. Harrington? How do your suggestions relate to the TQ principles? Case 1.3A Tale of Two Restaurants Kelly’s Seafood Restaurant was founded about 15 years ago by Tim Kelley, who has run it from the start. The restaurant is very profitable because of its excellent food quality, but lately has been having problems with consistency because of numerous suppliers. The restaurant operations are divided into front-end (servers) and back-end (kitchen). The kitchen has notes to boost employee morale, employees are cross-trained in all areas, and the kitchen staff continually seeks improvements in cooking. Servers, however, have minimal wages and few perks, and turnover is a bit of a problem. Tim’s primary criterion for selecting servers is their ability to show up on time. There is little communication between and front-end and back-end operations, other than fulfilling orders. Tim makes sure that any complaints are referred to him immediately by the servers. The restaurant has no automation, as Tim believes that it would get in the way of customers’ special requests. “this is the way we’ve done it for past 15 years and how we will continue to do it,’’ was his response to a suggestion of using a computerized system to speed up orders and eliminate delays. Tim used to hold staff meetings regularly, but recently they have dropped from each week to one every five or six months. Most of the time is spent focusing on negative behavior, and Tim has often said “You can’t find good people anymore.’’ Jim’s Steakhouse is a family-owned restaurant in the same state. Jim uses only the freshest meats and ingredients from the best suppliers and gives extra large portions of food to customers, who feel they are getting their money’s worth. Jim pays his cooks high wages to attract quality employees. Servers get 70 percent of tips, bussers 20 percent, and the kitchen staff 10 percent to foster team work. Many new hires come from referrals from current employees. Jim interviews all potential employees and ask them many pointed questions relating to courtesy, responsibility, and creativity. The restaurant sponsors bowling nights, golf outings, picnics, and holiday parties for its employees. At Jim’s, birthday customer receive a free dinner, children are welcomed with balloons, candy, and crayons, and big screen TV’s caters to sports fans. Jim walks around and constantly solicits customer feedback. Jim visits many restaurants to study their operations and learn new techniques. As a result of these visit, Jim installed computers to schedule reservations and enter orders to the kitchen. DISCUSSION QUESTIONS 1. Contrast these two restaurants from the perspective of TQ. What conclusions can you make and what advice would you give to the owners?2. What type of management model (mechanistic, organismic, or cultural) do you think each organization represents?
Module 1 introduction
Aireen Ybañez - Clores
June 10, 2013
Concept and Development
of Hospitality Quality
Ch 1 Quality Services for Hospitality
At the end of the class, students will:
Understand important differences between products and service;
Learn the importance of meeting the hospitality guest's expectations and
define service quality and service value in the hospitality field;
And lists components of the guest experience.
Lastly, define service quality and service value and its importance in the
Nearby is the front desk and guests are being checked in, and from his
vantage point the Manager can hear what is being said.
The front desk clerk is confirming the arrangements of the booking with the
guest and the following discussion occurs:
"Sir, you will be charging your accommodation to the company and paying
your other expenses."
"No, all expenses will be paid by the company."
"I am sorry sir, but according to this we have only authorized charge of the
"Last time I stayed here I had the same problem and last week I personally
rang to sort this out. All expenses are to be charged."
Visualize the lobby of a hotel that is renowned for its quality
service. The General Manager is discretely observing the
activity in the foyer.
The clerk goes to get authorization on the account and the now disgruntled guest turns
to his companion and says in exasperation:
". . . you see it's exactly as I said it would happen. I stay here every month and yet
every time I have this same problem."
The General Manager considers the exchange with concern. That guest had not
received the quality service the hotel was aiming to provide and if the guest continually
had this experience it would simply be a matter of time before he decided to try one of
the competitors. Not only could that one guest's custom be lost, but he could be the
manager of a company who frequently stay at the hotel and hold functions there.
The difficulty for the Hotel Manager is to determine how to react to this situation. Is it a
problem that only this particular guest faces or is it a common problem experienced by
many? Whose fault is it that the problem arises initially? What is the appropriate action
to be taken?
Concept and Developing Quality Service in
What is hospitality
The outer primary interacting element is that of
the social relationship fostered by
warm, friendly, welcoming, courteous, open, gen
erous behavior of the host creating the
hospitable, social, environment.
How do you define Service?Product?
Service can be defined as “any primary or complementary activity
that does not directly produce a physical product – that is, the non-
goods part of the transaction between buyer (customer) and seller
In this context, a physical product is simply the medium used to
facilitate the other services and a service rather than product
orientation becomes the focus.
Concept and Developing Quality Service in
• This promote positive feeling of security &
comfort, created by physical
structure, design, décor and location of the
facility. The provision of accommodation e.g.
facility to sleep, relax, together with supply
of food & beverage service and
The Key Elements of Hospitality
There are two key Elements in
Product and service.
The Key Elements of Hospitality
The First key Element- Guest
The hospitality to be delivered to guest under service
provider. These stresses the central role of the guest in
Hospitality operation and without guest hospitality can not be
The Key Elements of Hospitality
The Second Key Element- Product & Service
Hospitality consist of complex blend of both product-
food, drink, entertainment & accommodation-and- Service
along with the atmosphere that surround them.
How do you define guest?
What do guest expects
from the hotel service
Why do we need to serve
How can I meet guest
Guestology: What is it?
It is a term originated by Bruce Laval of the Walt Disney
It means in essence treat customers like guests and manage the organization
from the guests point of view. Their demographic characteristics and their
wants, needs and expectations regarding the hospitality guests experience are
determined. In addition, their actual behavior within the hospitality
organizations are carefully observed.
The organization's strategy, staff and systems are aligned to meet or exceed
the customer’s expectations regarding the aspects of the guests experience:
service product, service setting or environment & service delivery.
It forces organization to look systematically at the guest experience from the
customer’s or guests' point of view.
Job requires them to provide service
for the guests since they interact
directly with guests.
Have to be well-trained and well-
skilled for them to provide the guests
Responsible to ensure that each
moment of truth has been prepared
for – as well as humanly possible to
yield a satisfying, even
outstanding, outcome for the guest.
• Refers to moment of
truth, is a point in
“service delivery where
customer interact with
service employees” or
and the outcome may
affect perceptions of
Fig. 1 Cascade in service encounter in a hotel visit
SERVICE ENCOUNTER: TYPES
Face to face encounters
How does service differ from
From a manufacturing standpoint money is the most important
capital, a means of expansion and growth.
From a service standpoint, people are the most important capital. They
represent not only a company’s major investment, but also its chief
asset. People are the biggest competitive edge that a service company
GOODS AND PRODUCTION – CENTERED
CUSTOMER – CENTERED SERVICE
Customer involved in very few production
Production and delivery processes are
Production is independent of consumption
Product design is centered on the customer,
and process design is centered on the
Production results show less variability
More amenable to standards, measurements,
inspection, and control
Employee-customer relationships are
generally not complex
Technically more complex
Technical skills dominate operations
Training is heavily physical
Most producers do not deal directly with the
Economies of scale are generally readily
Customer involved in many production
Production and deliver processes overlap to
varying degrees and might even be identical
Production is frequently simultaneous with
Both product design and process design are
centered on the customer
Production results show more variability
Less amenable to standards, measurements,
inspection and control
Employee-customer relationship are generally
Technically less complex
Interpersonal skills dominate operation
Training is heavily psychological
Most producers deal directly with customer
Economies of scale are less readily attainable.
The difference of production-
centered service operation and
customer-centered service operation:
The Hospitality Operation
Giving people a little
more than they expect
The secret is to just
exceed what your
The Guest Experience:
Guest experience is the
sum total of the experience
that the guest has with the
service provider on a given
set of occasions.
Service delivery system
consists of an inanimate
technology part (including
organization and information
systems and techniques) and
the people part – most
importantly, the front-line
delivers, presents or
produces the service to the
Components of the Guest Experience:
The service product
sometimes called the service package or
service/product mix, is why the
customer, client, or guest comes to the
organization in the first place. The basic
products can be tangible, like hotel room, or
relatively intangible, like a rock concert.
The service setting
is which the experience takes place that
describe the physical aspects of the setting
that contribute to the guests' over-all physical
feeling of experience.
The service delivery system
including human components and the
physical product process plus organizational
and information systems and techniques that
help deliver the service to the customer.
Nature of Services:
Services are partly or wholly intangible.
Impossible to asses the products' quality or value accurately or objectively, to
inventory or to repair.
Services are consumed at the moment or during the period of
production or delivery.
Even the guest purchase a new cellphone, a so veiner item, or a new personal
computer, or the full stomach, or even if the luncheon was prepared an hour
before the customer ate it, the service as a whole and from the customer’s
perspective was consumed as delivered.
Services usually require interaction between the service provider
and the customer, client or guest.
Refers to face to face interaction with guest and the service provider.
These interactions can be over the telephone, or by e-mail, or fax.
QUALITY, VALUE AND COST:
Quality is a state in which
value entitlement is realized
for the customer and
provider in every aspect of
the business relationship.
Business quality is highest
when the costs are at the
absolute lowest for both the
producer & consumer and is
most readily attained when
the entirety of the
resource is engaged.
QUALITY, VALUE AND COST:
Value of the guest is
equal to the quality of
the experience by the
cost of all kinds of
guest by obtaiing the
QUALITY, VALUE AND COST:
Cost to guest or so-called
When service providers
concerns, they will be tempted
to make their exit. The cost of
losing the customer are as
Lose of current dollars that the business
Lose of jobs that our client or clients
Loss of reputation. Word travels fast in our
Lost of future business.
MEM 650 Quality Control
TQM’s Customer Approach
“the customer defines quality.”
“the customer is always right.”
“the customer always comes first.”
“the customer is king.”
“quality begins and ends with the customer”
Broad Dimensions of Service Quality
Reliability – perform promised service dependably
Responsiveness - willingness/readiness to provide
Competence - possess knowledge and skill to perform
Access - approachability and ease of contact of
Courtesy - politeness, consideration, and friendliness
of service personnel cont…
Broad Dimensions of Service Quality – cont.
Communication - keeping customers informed;
listening to customers
Credibility - trustworthy, believable, honest
Security - freedom from danger, risk, or doubt
Understanding/knowing customer - knowing
Tangibles - physical evidence of service
Parasuraman, A. Zeithaml, V., and Berry, L. (1985).
The most important dimensions:
Case Exercise 1:
Eastern States Air
Case # 2
Case # 3 A tale of two