Master of management
Gadjah Mada University
Designing and managing services
Case Study : Ritz-Carlton Hotels
Lecture : Prof. Dr. Basu Swastha Dharmmesta, M.B.A
Anne Stam [Student Exchange]
Febrini Wulandari 08/277511/PEK/12841
Irwan Arfandi Bachtiar 08/277521/PEK/12851
Ritz-Carlton Hotels, California, USA
Ritz-Carlton is a brand of luxury hotel and resort with 70 properties that are located in
major cities and exclusive resort destinations of 23 countries worldwide. The Ritz-Carlton
brand is managed by the Ritz-Carlton Hotel Company LLC, a subsidiary of Marriott
International. The Ritz-Carlton Hotel Company has currently 32,000 employees. The Ritz-
Carlton headquarters are found in Chevy Chase, Maryland, a community along the border of
Ritz-Carlton redefining again 5 New Gold Standard, is primarily intended to help
managers, owners, and leaders understand the driving principles, processes, and practices
that have generated unusual staff loyalty, world-class customer engagement, and significant
brand equity for Ritz-Carlton.
People are spending a lots of money now, they are looking for luxury,
finest, comfortable, warm, relaxed and others great facilities from
living for a while in hotels, Ritz-Carlton have to provide it as they
Simon F. Cooper, president and chief operating officer, The
Ritz-Carlton Hotel Company, L.L.C., said
“Over the years we have been approached by many authors seeking to
write about our company and examine the methodology we have used to
make The Ritz-Carlton brand one of the most frequently recognized and critically acclaimed luxury
names in the world. Only when Dr. Michelli came to us with his vision for telling the story did we
agree to provide unprecedented levels of access to our Ladies and Gentlemen and customers. We
believe sharing what we have learned will provide valuable lessons to any company seeking to
improve its customer service, whether they are a small day spa or a Fortune 500 company.” 1
As the main idea of Ritz-Carlton business, services is being number one performance to offer
to consumer. Ritz-Carlton leaders are responsible for stewarding an icon in the luxury
market, through a constant quest for excellence, to continue its success in a changing global
economy and with changing customer needs. Even in areas of international growth,
succession planning, finding the best location for your business, or determining meaningful
quality enhancements, Ritz-Carlton offers a rich tapestry of leadership successes and
breakdowns that can help you shorten your path to greater success.
This topic is closely related to 5th point of their gold standard. Or course they still
doing exceptional services because, customer satisfaction and loyalty are logical
consequences for maintaining that high standard.
Ritz-Carlton also doing step they called three steps of service, that intends to give
more respect for the customer, but do not forget it can brings more respect from the
cstomer to the Ritz brand more.
The three steps of service are :
1. A warm and sincere greeting. Use the guest's name.
2. Anticipation and fulfillment of each guest's needs.
3. Fond farewell. Give a warm good-bye and use the guest's name.
The New Gold Standard is The Ritz-Carlton Hotel Company's legendary service. The 5
principles that identified as elemental to creating Ritz-Carlton's memorable customer
Define and Refine
Empower through Trust
Data accessed on http://corporate.ritzcarlton.com/en/Press/Releases/The_New_Gold_Standard_Book.htm,
March 3, 2009.
Data accessed on http://josephmichelli.com/newsletters/2008.05.html, March 4, 2009.
It's not about You
Leave a Lasting Footprint
What is at the essence of this iconic company? What is the Ritz-Carlton experience? While
the answer reflects some variability based on the source, there is a striking consistency of
Ritz-Carlton 5 Golden Standard, that they called to serve customer all the time, how
its woks? What is customer deserve from Ritz-Carlton services? How about human
resources in Ritz-Carlton Companies?
Analysis of Solution Alternative
A service is any act or performance one party can offer to another that is essentially
intangible and does not result in the ownership of anything. Its production may or may not
be tied to a physical product. Increasingly, however manufacturing, distributors, and
retailers are providing value-added services, or simply excellent customer service, to
Ritz-Carlton Chicago’s services room.
In category index, Ritz-Carlton services is refers to Major Service with Accompanying
goods and service (others is Pure Tangible Good, Tangible Good with Accompanying
Services, Hybrid, Major Services with Accompanying Minor Goods and Services, and Pure
Service). Ritz-Carlton also provide services with everything that near to that goods or
services, such as mini-bar to serve beverages, mini-bookstore, travel agency, casino,
laundry, and others. But in this case, focus is in the services, how to serve the best for
consumer as their expectations, Ritz-Carlton assumed, survey and brand images is in deluxe
classification near under Four Season Hotel Brands.
The Ritz-Carlton is well-known for providing consistent service throughout all of its
properties. They also established its Gold Standards for customer service leading the
company to repeatedly outperform its competition and increase customer loyalty.
At the Ritz-Carlton Leadership Center, the company's goal is to emulate its winning
service and become the preferred provider of training and organizational change for all
industries, not just hospitality.
Ritz-Carlton division, part of HRM success, Malcolm Balridge Award winner twice
Human Resources is another phase to getting work to makes satisfying services.
Employees are called passionate advocates at the Ritz; they exhibit personality traits that
hiring managers specifically seek out when recruiting and interviewing candidates. To
ensure that interviewees are sincerely positive people, managers use two-part interview
questions that weed out those who are insincere.
Once through the interviewing and hiring processes, new employees begin
orientation, which lasts two days and covers topics ranging from the importance of
grooming to total quality management. This focus led to the development of a Quality
Selection Process (QSP) in partnership with Talent Plus, an international psychological
selection and human resource consulting firm. Companies drop the ball with employee
investment. They have a commitment to the customer, but they have to find ways to have
the same level of commitment with Ritz-Carlton most valuable resource, its their
Ritz-Carlton is a huge business in hotel services, but
their services can be improved more bigger, so there is
some recommendation to reach the goals or at least to
increasing their services, marketing strategy, profit and
brand images. Services is the necessary things to be
provided by Ritz-Carlton.
Services have four distinctive characteristics that greatly
affect the design of marketing programs: intangibility,
inseparability, variability, and perishabilty. Ritz-Carlton is define in all in the design of
marketing programs. First, Intangibility for Ritz-Carlton is consumer can not feels, give
values and comment before they use and purchase the hotels services. Inseparability for
Ritz-Carlton? although they are provide services for rest and holiday, but they are also buy
and manufactured their goods such as shampoo, soap, tooth paste, sheet, parfumes, etc.
because the client is also often present as the service is produced, provider-client
interaction is a special feature of services marketing. And Because the quality of services
depends on who provides them, when and where, and to whom, so the business must be
have Variability characteristic, such as new programs and celebrating days expo, for
examples Ritz-Carlton held pets day, consumer can bring their pets to the hotels and living
for a while. Finally, last characteristic is Perishability, Ritz-Carlton can not avoiding this to be
happened, services cannot be stored, so their perishability can be a problem when demand
fluctuated. Several strategy can produce a better match between demand and supply in a
service business. On the demand side: Differencial Pricing, Nonpeak Demand,
Complementary Services and Reservation Systems. And the supply side: Part-time Employee,
Peak-time Efficiency, Increased Consumer Participation, Shared Services and Facilities for
What customers want is personalized service, fast access to knowledge, and hassle-
free interactions. That, starts with employees. As Melissa Young, a pastry chef at the Ritz-
Carlton in Washington, D.C., joined the discussion it became obvious to me that Ritz-Carlton
employees stop at nothing to make that service happen. Young told us about a time when
the front desk informed her of a family who was about to arrive at the hotel. They drove all
evening in a blinding rain storm and arrived later than expected. Young sent up champagne
and strawberries for the adults and an
assortment of juices and warm cookies
for the children. quot;To see the excitement
in the kids was priceless,quot; Young said.
quot;It's amazing to love what you do. The
positive energy starts from day one and
continues every day. It's great to be part
of a winning team.quot;3
In the other hand, managing service quality can be good activities, also to see
customer expectations from many sources, such as past experiences, word of mouth, and
advertizing. In general, customers compare the perceived service with the expected
service.If the perceived service falls below the expected service, customers are
disappointed. Succesful companies add benefits to their offering that not only satisfy
customers but suprise and delight them. Delighting customers is a matter of exceeding
Based on the service-quality models, researchers identified the following five
determinants of service quality, in order to importance:4
Data accessed on http://www.1to1media.com/view.aspx?DocID=30068&m=n, March 4, 2009.
Kotler, Phillip & Keller, Kevin L. Marketing Management 13th Edition. New Jersey : Pearson Pretice-hall