Quality service

1. CHAPTER 3 “STRATEGIES
FOR QUALITY SERVICE IN
TOURISM AND HOSPITALITY”
Chatlyn C. Mamac
Kristel Collin G. Amaca
Yumi Davin
Novah Sandoval

2. OBJECTIVES:
At the end of this chapter, the students should be able
to:
Understand the concept of strategy;
Realize the importance of designing
the guest experience; and
Identify key factors that must be
examined to ensure best service.

3. What is business strategy?

4. WHAT IS BUSINESS STRATEGY?
A business strategy outlines the
plan of action to achieve the
vision and set objectives of an
organization and guides the
decision-making processes to
improve the company’s
financial stability in a
competing market.

5. INTRODUCTION
To bridge the gap between the
expectations and perceptions of a guest
in a hospitality and tourism setting, it is a
must to plan his/ her experience
carefully. A productive guest encounter is
expected to yield optimum experience.
With these, critical planning is very much
important to properly design and ensure
that the best experience is the only
experience a guest will receive.

6.  In planning the guest experience, strategies
are employed to be able to deliver
processes for each issue that is needed to
be resolved by the management. Strategies
are plans that are designed to achieve a
specific aim of the company. It usually
involves setting goals, planning actions to
achieve such goals, and maximizing
resources to achieve the goals. With
strategies, resources become optimized,
productivity is maximized, and processes
are simplified. Now, with guests at the
center, the experience would be better that
initially planned.

7. REALITY BITES
 Hotel DAVC, designed by popular local architects, boasts of its stylish
design and enjoy the harbor view of Manila bay. Its showcase a rooftop heated
pool, pampering spa services, and a gym. The hotel is a three-minute walk
from a train station. The shopping district is also 10 minutes away via train.
Shuttle service between the other hotels runs every 30 minutes. It also offers
one hundred percent (100%) electric transportation as part of its green
marketing strategies that can be booked prior to arrival. The chic guest rooms
feature free Wi-Fi and stun in bright-colored palettes. Targeting foreign
guests, the room also features free international calls, a FREE fully stocked
minibar, and a smartphone with unlimited data for travelling in the city. Inside
the room, the guest will see the hotel management's concern for the
environment as direct drinking water is dispensed through room tap to avoid
the use of plastics. The hotel also features a fitness center, a spa, and a
infinity pool. For business travelers, a well-equipped business center and
concierge service are made available. The LMGC Restaurants servers light
food among a green veranda, featuring indoor plants, while dishes are served
by international chefs. Are the strategies for guest comfort a highlight in this
hotel? Explain how.

8. CONTENT: HOSPITALITY, TOURISM, AND STRATEGIES
•Strategic planning has been utilized
extensively for developing tangible products
rather than used in service-related
industries like hospitality and tourism. With
the marketing nature of tourism products
and services, it is evident for establishments
to draw their market toward services,
strategy plays a critical role. By utilizing
strategies, a company is able to identify its
competitors while satisfying the needs and
wants of its guests.

9. •Strategic planning is the process of
identifying a company’s internal and
external characteristics which will contribute
to the attainment of its goal pointing to a
specific direction while formulating different
policies on how best to achieve it. A
restaurant, for example, to become one of
the best in a certain area or region, should
think of different strategies to be able to
meet the requirements needed in a certain
area as dictated by the market and the
present situation it belongs.

10. •With strategic planning in mind, three
elements make up its components. Firstly,
the identification of long term goals and
objectives concerning the conceptualization
of coherent and achievable strategic
objectives. Secondly, the adoption of
different courses of action should also be in
place to assure that actions taken to arrive
at objectives are already set. Lastly, the
allotment of resources is also set in place.
This means that there will be costs
associated with the actions to be able to
achieve the objectives.

11. PORTER’S GENERIC STRATEGIES
Michael Porter identifies three strategies in achieving
competitive edge in his book, Competitive Edge.
-3 Strategies-
1. Cost Leadership Strategy - Focuses on
increasing profits by reducing operational costs and
charging lower prices.
2. Differentiation Strategy - Focuses on making
company’s service being attractive and unique in
comparison to those of its competitors
3. Focus Strategy - Concentrates on developing
services for niche market

12. 2 types of Focus Strategy
1. Cost leadership or cost leadership in a
narrow or focused market
2. Differentiation in a narrow or focused
market
 Choosing the right for an organization is
crucial in gaining competitive edge or its
arrival. By using Porters generic strategies
model, an organization will be able to
identify the strategy that it needs to lead
the organization to success.

13.  The focus
Strategy,
concentrates on
developing services
for niche market.
Using this strategy
requires a deep
understanding of
the customer’s
need of a company.
 The first type of
focus is on cost
leadership or cost
leadership in a
narrow or focused
market.
 The second type of
focus is on
differentiation in a
narrow f

14. INTERNAL AND EXTERNAL
ASSESSMENTS
 Internal analysis is where the organization
takes stock of the resources and assets that
it possess es. These includes the strengths
that enable an organization to function well.
 Experts refer to this as the “secret sauce”
of the organization.

15.  An external analysis, meanwhile, does not
rely on the “secret sauce”. How a
company positions itself in the market with
respect to its rivals in its particular space is
of primary concern.
 Identifying a company’s opportunities and
threats, through different tools such as the
political, Economic, Social, Technological,
Environmental and Legal (PESTEL).

16. DEMOGRAPHICS
 Park and Yoon (2009) made an article on
the segmenting the motivation of Korean
tourists. In their article, they noted that
motivation in tourism is largely determined
by a number of factors, including
demographics. Results show that with
changing demographics, themes as to their
socio-economic characteristics and
behavior in tourism also change.

17. ECONOMIC AND NATURAL FORCES
Economic forces also change the nature of the
industry and how it is managed by the key
stakeholders of this fast growing sector. In
2018, the Philippines Statistics Authority
reported that the Tourism Direct Gross Value
Added (TDGVA) of the Philippines jumped to a
great amount of 12.7% . This translates to P2.2
trillion, higher by 14.3% as compared to 2017's
record of P1.9 trillion . A lot of people are
actually benefiting from tourism , and in the
Philippines, this service-oriented sector source
of employment and income of a lot of Filipinos.

18. COMPETITORS
Competitors also shape the tourism and
hospitality industry. The precense of this
major key player brings about major changes
in the industry.
Bengston (1999) explained and identified
these relationship existing in competition. She
mentioned that in analyzing the relationship
between competitors four types can be
distinguished.
Coexistence exists on social exchanges
between competitors. As economic exchange
and bonds are not present each competitors
knows about each other but does not interact
with them.

19. Another relationship is cooperation which
also exist in this scenario. As this concept is
present, there are frequent exchanges
between the players. Which comprise of
business, information and social exchange.
As expected , competition is another
relationship that is based on an action
reaction pattern, which means that if a player
launches a product or service the other
competitors will definitely launch a similar.
Lastly a new relationship has existed, It is
called co-operation.

20. OTHER STAKEHOLDERS AND RELEVANT
GROUPS
 Resource Suppliers
A company cannot
continue as operation
without raw materials
equipment and other
supplies. This is actually
not limited to the
manufacturing sector, but it
is also an important
requirement in service
operations as we
established already the
concept of service product.
 Capital Suppliers
Now that the capital market is
international and electronic
transfers are now available,
Suppliers can now move in a
faster pace which makes a
company vulnerable.
 Labor Supply
As the pool of skilled
employees is also of utmost
importance as they also shape
the market. Chapter 4
discusses issues on staffing
and employee concerns.
Without a stable labor supply
the tourism and hospitality
operations will be greatly
affected as they drive the
operation itself.