Hospitality service management

1. THE ROLE OF SERVICE IN AN
ECONOMY
By MURAYA MOSES from Maasai Mara University
© 2023

2. SERVICE DEFINITIONS
 What is a service?
❖Services are deeds, processes, and performances. (Valarie A. Zeithaml and Mary Jo Bitner, 1996)
❖all economic activities whose output is not a physical product or construction, is generally consumed at the time
it is produced, and provides added value in forms (such as convenience, amusement, timeliness, comfort, or
health) that are essentially intangible concerns of its first purchaser. (Quinn et al 1987),
❖Therefore most definitions center around themeatic definitions of services of service characteristics.

3. SERVICE CHARACTERISTICS
 Intangibility,
 Heterogeneity,
 Simultaneity
 Perishability,
 Non transferability
 Lack of ownership transfer
 etc

4. FACILITATING ROLE OF SERVICES IN AN
ECONOMY

5. QUESTION?
 Name ten importance of tourism as a service to kenya.

6. STAGES OF ECONOMIC DEVELOPMENT

7. NATURE OFTHE SERVICE INDUSTRY
 Skilled
 Semiskilled
 Today, service industries are the source of economic leadership.
 The growth of the service sector has produced a less cyclic national economy.

8. 21ST CENTURY CAREERS
 Tend towards highly skilled . They will exhibit the following charatceristics
1. More career opportunities for everyone.
2. Freedom to choose from a variety of jobs, tasks, and assignments.
3. More flexibility in how and where work is performed (i.e., working from home or
telecommuting).
4. More control over your own time.
5. Greater opportunity to express yourself through your work.
6. Ability to shape and reshape your life’s work in accordance with your values and
interests.
7. Increased opportunity to develop other skills by working in various industries and
environments.
8. Self-empowerment mindset.
9. Allows one to create situations or positions where one can fill a need in the world
that is not being filled.
10.Opportunity to present oneself as an independent contractor or vendor with
services to offer.

9. NEW EXPERIENCE ECONOMY
 The nature of the service economy has moved past the transactional nature of services to one of
experience-based relationships.
 Experience economy is further divided into
 consumer services
 and business services.

10. CONSUMER SERVICE EXPERIENCE
 Experiences create added
value by engaging and
connecting with the
customer in a personal and
memorable way.
 As businesses explicitly
charge for the memorable
encounters they stage, we
transition from a service
economy to the new
experience economy.

11. BUSINESS SERVICE EXPERIENCE
 For business-to-business (B2B) services, value is derived from the coproduction or
collaborative nature of the relationship such as we see in a consultancy engagement.
 The new business service experience has three dimensions:
 Co-creation of value
 The customer is a coproducer of the value extracted from the relationship.
 The customer is an input to the service process.
 Relationships
 The relationship with the customer is of paramount importance because it is a source of innovation
and differentiation.
 Long-term relationships facilitate the ability to tailor the service offerings to customers’ needs.
 Service capability
 Provide service capacity to meet fluctuations in demands while retaining quality of service.
 Quality of service is measured primarily from the perspective of the customer.

12. TYPOLOGY OF SERVICES IN
THE 21ST CENTURY

13. THE SERVICE PACKAGE
 Service managers have difficulty describing their product.
 The service package is defined as a bundle of goods and services with information that is
provided in some environment.
 1. Supporting facility.The physical resources that must be in place before a service can be
offered. Examples are a golf course, a ski lift, a hospital, and an airplane.
 2. Facilitating goods.The material purchased or consumed by the buyer, or the items
provided by the customer. Examples are golf clubs, skis, food items, replacement auto
parts, legal documents, and medical supplies.
 3. Information. Data that is available from the customer or provider to enable efficient
and customized service. Examples include electronic patient medical records, airlineWeb
site showing seats available on a flight, customer preferences from prior visits, GPS
location of customer to dispatch a taxi, and Google map link on a hotelWeb site.

14.  4. Explicit services.The benefits that are readily observable by the senses and
that consist of the essential or intrinsic features of the service. Examples are the
absence of pain after a tooth is repaired, a smooth-running automobile after a
tuneup, and the response time of a fire department.
 5. Implicit services. Psychological benefits that the customer may sense only
vaguely, or the extrinsic features of the service. Examples are the status of a
degree from an Ivy League school, the privacy of a loan office, and worry-free
auto repair.

15. END
 Questions ?