Co-creation of Quality Service PDF

TH2303 Co-creation of Quality Service The common concept of transactions in the tourism and hospitality industry involves the enterprise on one end providing the resources and workforce to deliver the product and/or service and the customer availing and receiving t...

TH2303 Co-creation of Quality Service The common concept of transactions in the tourism and hospitality industry involves the enterprise on one end providing the resources and workforce to deliver the product and/or service and the customer availing and receiving them on the other end. Every organization now introduces new and innovative concepts to remain relevant, where customers are given active participation in creating and rendering services(Cornell & Manzano, 2022). Guest's Role in Value Co-creation (Cornell & Manzano, 2022) Guest involvement in service innovation benefits organizations through the co-creation of value. Value co- creation is the collaboration between an enterprise and its customers to deliver and create a service acceptable to fellow consumers. This joint undertaking is a strategy to create new ideas and improve products and services. The organization manages the service delivery process, but the customer is integral to realizing the result. 'The role of guests in co-creating value should be viewed as a partnership wherein the insights relayed by the clients become valuable inputs in improving the services. Co-creation of value is a two-way road where expectations and objectives from two (2) parties may not be in the same direction s (contrast), which can lead to developing a mutually beneficial process. Value co-creation must be sourced from both sides of stakeholders to create a service acceptable to all. The following are the three (3) major roles played by customers in service co-creation and delivery: Customers as extended employees. Sometimes, customers participate in the production process of services by contributing time, effort, and resources. For example, fruit farm resorts allow their guests to pick and collect farm products they want within the premises and have these packed and billed upon checkout. This way, customers can get their choice of products, and the farms do not need to provide staff to harvest'. Many organizations are shifting to this style of service due to an increase in productivity and a reduction in labor costs. The downside is that if the customer sees no apparent benefit from co- producing the service, they will probably not participate. Customers as proponents of the quality of service. Customers' primary objective is to have their needs met by the tourism and hospitality organization. If customer participation has been effectively designed, client needs will likely be met, and benefits will be attained. When guest expectations are met, they will most likely be satisfied with their experience in the tourism establishment. The customers' reactions or feedback to service delivery, such as raising questions about the process and complaining during service failures, can contribute to delivering quality service. Customers as competitors. When the customers realize they can perform the required service, partially or entirely, the service provided may not be needed. For example, a hotel may decide to end a partnership with a catering business and form a team of chefs to prepare the food requirements of the establishment. Once the organization has determined and realized the roles of customers in value co-creation, they may choose to introduce different innovations, such as using self-service technologies, in their products and services that may include the complete participation of the guests in their processes. Self-service Technology (Ford et al., 2019) Self-service technology (SST) is an innovation in providing service outputs created exclusively by customers without interaction or engagement with employees. It is the technological interface enabling customers to produce a service independent of direct employee involvement. It can be critical in controlling costs and proving the customers' experience. 08 Handout 1 *Property of STI [email protected] Page 1 of 3  TH2303 By introducing technology-based self-service channels, customers have become active rather than passive participants since they are now involved in the guest experience. The tourism and hospitality industry saw the advantages of technological advancement, which can result in the savings of costs and efficiencies of operations, growth in sales, increased customer satisfaction, and competitive advantage. The following are some of the self-service technologies in the tourism and hospitality industry: Transportation sector o Airport self-check-in kiosks are touchscreen devices allowing passengers to self-check in and print their boarding passes at a particular time before their flights. Accommodation sector o Self-service kiosks are terminals in hotel lobbies allowing guests to check in and out of the hotel independently. Keys are dispensed by the kiosks or the front desk agent after check-in. Some kiosks also allow concierge services like reserving for dining and spa services. o Smart hotels allow guests to control their room's heating or air conditioning from their phones or turn on the television through a voice command. In many cases, smart rooms also automatically adjust things like the brightness of light bulbs or the temperature of a radiator to maintain optimal conditions. Food and beverage sector o Restaurant self-ordering kiosks are touchscreen systems that display the menu and guide customers on ordering, from building the meal to payment and pickup. Other SSTs used by most sectors o Online bookings and reservations are usually made through travel, hotel, and restaurant web pages or websites. o Augmented reality (AR) apps create fun opportunities for user-generated content and provide interactive tourist information maps within hotels and restaurants. Virtual reality (VR) can emulate tourist destinations or hotel facilities in seconds, helping customers make purchasing decisions. o Artificial intelligence (AI) is also employed in the tourism and hospitality industry to improve customer service. AI-powered chatbots are used for online customer interactions, which remove lengthy waiting times for guest queries to be responded to. Other uses of AI are robots that can also sort through data, provide services during the booking process, and respond to recurring questions. SST became popular because organizations believe that transferring from manual service to a technology- based process can save more than personal service. Some organizations use SSTs to meet customer demand nowadays. These help them increase management efficiency, control, cut costs, and improve their financial performance; however, for every positive benefit they offer, there will still be drawbacks they may encounter while using these technologies. Advantages and Disadvantages of SSTs Tourism and hospitality organizations must understand that customers sometimes do not automatically accept the changes in business procedures even when they consider these innovations as upgrades for better transactions. Different kinds of customers have different skills for adapting to changes and even receptiveness to new technology. 08 Handout 1 *Property of STI [email protected] Page 2 of 3  TH2303 Advantages of SSTs Convenience includes ease of use, faster transactions, 24-hour service, and presence in strategic areas. Customers will enjoy access to SSTs, where they can quickly check in or check out and pay anytime during their stay in a resort without falling in line for those services. Control is when customers are given options in making decisions, monitoring the progress of their transactions, or personalizing the service offered. Less Cost. Customers are looking for value for money. If an organization can provide customers with the same quality of service at a lower cost, that organization would likely be the choice. Implementing SSTs may reduce labor costs since less workforce is required, enabling an organization to lessen the price of its products and services without compromising quality. Efficiency is when the transactions made in a business are fast and accurate, and there is a uniform process that does not vary from time to time. Disadvantages of SSTs Machine failure/breakdown is when machines break down, resulting in them becoming offline, not dispensing goods, rejecting access, or not issuing receipts. Since the expectation of convenience is high among SSTs, failure to deliver may often result in more frustration than in the normal process. Poor design. Some machines are challenging to use. Sometimes, the process is complicated, elaborate, fixed, or takes several tries to complete the transaction or registration process, resulting in customers preferring personal transactions with company representatives. Limited options are when options included in the self-service technologies are the only choices. Personal needs or customized requirements cannot be accommodated and processed since the personal touch of service is eliminated due to no contact with tourism and hospitality personnel. SSTs are unsuccessful when customers see that they do not benefit from it because they feel that the ability to use the system is wasted and when it fails to inform them how to use it properly. The consideration in the investment of an SST is when its demand is low, the most cost-effective option is to continue with the traditional support representatives. Another consideration is that the organization should identify which customer segments are willing to perform the tasks themselves. It is important to understand how customers experience the relationship with a provider through various channels and over time. Instead of optimizing the individual service channels in terms of service quality, tourism and hospitality service providers should concentrate on the holistic view of a customer's service experience in a multichannel setting and the unique value customers can experience from each channel. References: Arenas, C. (2022). Quality service management in tourism and hospitality. Edric Publishing House. Cornell, D. & Manzano, R. (2022). Quality service management in tourism and hospitality. Rex Bookstore. Cruz, Z. (2019). Micro perspective of tourism and hospitality. REX Book Store. Ehlausanne. (2021, January 13). 2021 Top hospitality industry trends. eHotelier. https://insights.ehotelier.com/insights/2021/01/13/2021-top-hospitality-industry-trends/ Ford, R., Sturman, M., & Heaton, C. (2019). Managing hospitality organizations: Achieving excellence in the guest experience. Sage Publications. Goetsch, D. & Davis, S. (2022). Quality management for organizational excellence. Pearson Goldstein, S. & Schroeder, R. (2021). Operations management in the supply chain (8th Ed.). New York: McGraw-Hill Education. 08 Handout 1 *Property of STI [email protected] Page 3 of 3