Hospitality Management Concepts

Hospitality Definition

• Hospitality sector encompasses restaurants, hotels, casinos, amusement parks, events, cruises, entertainment, and tourism-related services.
• The sector benefits businesses, customers, employees, and economies.

Managing Hospitality Quality

• The consistent delivery of expected standards for products and guest services defines quality in hospitality.
• Understanding and meeting guest expectations is crucial for customer retention and business success.

Guest Expectations

• Guest expectations are shaped by six components:
  • Physical category (appearance and tangibility)
  • Functional aspect (operational effectiveness)
  • Technical component (service skills and knowledge)
  • Operational part (processes and procedures)
  • Setting - environment (atmosphere and ambiance)
  • Experiential factor (overall experience and emotional response)

Service Quality

• Delivering high-quality service is a key challenge for hospitality managers.
• Customer satisfaction is a primary indicator of service quality, crucial for business development.
• The subjective nature of quality makes delivering high-quality service a complex challenge.

Service Delivery Framework

• A successful service delivery framework incorporates:
  • Service culture (values and beliefs)
  • Employee-to-customer engagement (interaction and communication)
  • Customer experience and feedback (gathering and responding to feedback)
  • Quality of service and product (consistency and standards)

Increasing Customer Satisfaction and Retention

• Positive systems, modern service delivery, and competitive advantage contribute to increased customer satisfaction and brand image.
• Guest loyalty programs can improve profit margins.
• Quality service delivery is a key factor in boosting customer retention and creating a loyal customer network.

Measuring Hospitality Quality

• The service industry presents challenges in measuring performance due to its subjective nature.
• Key models for measuring service quality in hospitality include:
  • The Five Gap Model
  • The SERVQUAL Instrument
  • The Perceived Quality Service Model
  • The Critical Incident Technique (CRIT)
  • Internal and external tools

Five Gap Model

• Developed by Parasuraman, Zeithaml, and Berry (1994), the Five Gap Model focuses on customer-oriented quality management.
• It aids in clarifying the service process and bridging gaps between customer expectations and service delivery.

The SERVQUAL Instrument

• According to Postma and Jenkins (1997), quality should be measured internally and externally.
• The SERVQUAL Instrument assesses service quality by comparing customer perceptions of quality with their expectations.

Perceived Quality Service Model

• Proposed by Gronroos (1990), the Perceived Quality Service Model aids in understanding factors influencing customer perceptions of service quality.

The Critical Incident Technique (CRIT)

• The CRIT analyzes "moments of truth" and gathers information through in-depth investigations.
• It assists in identifying and addressing areas for quality improvement.

Other Tools for Continuous Improvement

• Beyond internal and external measurement, other tools for monitoring quality and achieving continuous improvement include:
  • Mystery guest/shopper programs
  • Market evaluations
  • Complaints and incident analysis
  • Service audit reports
  • Satisfaction surveys
  • Benchmarking
  • Employee and manager self-assessments

Determining Guest Needs

• Businesses need to understand the specific needs of various customer segments, including:
  • Foreign guests
  • Children
  • Guests with special needs

Role of Employees in Service Delivery

• Companies should prioritize human resources by:
  • Hiring the best employees
  • Creating an employee-friendly work environment
  • Providing regular training
  • Developing both technical and personal skills
  • Fostering job satisfaction
  • Supporting employees
• Staff attitudes and behavior are crucial for providing positive customer interactions.