Module 1-2 HRIM 132.docx

Module 1 Guestology means simply that all the organization's employees must treat customers like guests - SERVICE - - - - SERVICE PRODUCT - - THE GUEST EXPERIENCE - - PRODUCT, SETTING, AND DELIVERY Three-part guest experience Each part of which will at least meet th...

Module 1 Guestology means simply that all the organization's employees must treat customers like guests - SERVICE - - - - SERVICE PRODUCT - - THE GUEST EXPERIENCE - - PRODUCT, SETTING, AND DELIVERY Three-part guest experience Each part of which will at least meet the guest's expectations and the sum total of which ideally will make the guest say, or at least think, "wow!" Basic equation of the customer experience GUEST EXPERIENCE = \+ SERVICE PRODUCT \+ SERVICE SETTING \+ SERVICE DELIVERY SYSTEM COMPONENTS OF THE GUEST EXPERIENCE SERVICE PRODUCT Sometimes called the service package or service/product mix The basic product can be relatively tangible or intangible hotel room (tangible) rock concert (intangible) SERVICE SETTING The setting or environment in which the experience takes place. The term servicescape, the landscape within which service is experienced - physical aspects of the setting that contribute to the guest's overall physical feel of the experience. COMPONENTS OF THE GUEST EXPERIENCE CONT. SERVICE SETTING Las Vegas - Famous design of hotels (gambling) Hotel Lobby - Lavish and fancy feel of a luxury place Servicescape is also extremely important to the themed "eatertainment" - distintive theme of the food-service setting---exterior, decorations, background music, menu design (eg. Hardrock Cafe, Rainforest Cafe) SERVICE DELIVERY Includes the human components (like the restaurant server who places the meal on the table, and the physical production processes (like the kitchen facilities While all aspects of the service delivery system are important, the people interacting with customers or guests are by far the most able to make a difference in how customers feel about the value and quality of the experience. THEY CAN BE THE MOST IMPORTANT COMPONENT OF THE SERVICE DELIVERY SYSTEM---AND THE MOST CHALLENGING TO MANAGE. It is the waitstaff, the cabin crew, the front desk agents, the valet parkers---their attitude, friendliness, genuine concern, and helpfulness in ensuring the success of the guest's coproduction---who largely determine both the value and the quality of the experience for the guest. THEY MAKE THE "WOW." THE LEADING HOTELS, RESTAURANTS, AND OTHER HOSPITALITY ORGANIZATIONS INVEST SUBSTANTIAL TIME AND MONEY FINDING, TRAINING, AND SUPPORTING THEIR FRONTLINE EMPLOYEES. IF THESE FOLKS FAIL TO DO IT RIGHT, THE GUEST AND EVERYONE THE GUEST EVER TELLS ABOUT THE EXPERIENCE MAY BE LOST. SERVICE ENCOUNTERS AND MOMENTS OF TRUTH Service encounter - refer to the personto-person interaction or series of interactions between the customer and the person delivering the service. An encounter is the period of time during which the organization and the guest interact. The heart of a service is the encounter between the server and the customer SERVICE ENCOUNTERS AND MOMENTS OF TRUTH Moments of truth - refers to any instance in which a customer comes into contact with any aspect of a business and gets an opportunity to form an impression about the quality of its service. "The fifteen golden seconds" The first fifteen seconds are make-orbreak moments as the hospitality organization, like everyone else, gets only one chance to make a first impression "MOMENTS OF TRUTH" THE BEST ORGANIZATIONS IDENTIFY WHEN AND WHERE THESE MOMENTS OF TRUTH OCCUR AND ENSURE THEY ARE MANAGED WELL. THEY MAKE A SPECIAL COMMITMENT TO ENSURING THAT THEIR SERVERS KNOW HOW TO DELIVER ON THE MANY MAKEOR-BREAK MOMENTS OF TRUTH EVERY DAY BY NOT ONLY DELIVERING A FLAWLESS SERVICE BUT BY DOING SO IN A WAY THAT IS MEMORABLE TO THE GUEST. NATURE OF SERVICE 1\. SERVICES ARE PARTLY OR WHOLLY INTANGIBLE Intangibility refers to the fact that services cannot be seen, touched, or held in the same way that physical goods can It means that services are often difficult to evaluate before purchase and consumption. Examples: Airline: Not just the airline ticket (service of being transported), comfort, safety, and punctuality Hotel: Not just the physical room (hospitality, cleanliness, and responsiveness of the staff. Related Institutions (SPA): service includes the ambiance, skill of the therapists, feeling of relaxation. NATURE OF SERVICE 2\. SERVICES ARE CONSUMED AT THE MOMENT OR DURING THE PERIOD OF PRODUCTION OR DELIVERY Services are produced and consumed simultaneously; they cannot be stored for later use or sale. The provider and consumer must be present for the service to be delivered. This simultaneity means that services cannot be stored, returned, or resold, and the quality of the service can vary with each delivery. Examples: Hotel: Room service, housekeeping, and concierge assistance, occurs in real-time and requires the interaction between the guest and the service provider. Once the service moment has passed, it cannot be recaptured or resold to another guest. Related Institutions (e.g., Educational Services): The instructor\'s guidance and the hands-on learning experience, requires the active participation of both the instructor and the students. NATURE OF SERVICE 3\. Services Usually Require Interaction between the Service Provider and the Customer, Client, or Guest The requirement for direct interaction between the provider and the consumer. The quality of the service is inseparable from the quality of the service delivery Examples: Airline: The interaction between airline staff and passengers (not only the in-flight service provided by cabin crew but also the interactions at check-in, boarding, and customer service desks. Hotels: The interaction between staff and guests (front desk staff, concierge, housekeeping, F&B) Personalized services, can elevate the service experience. GUEST EXPECTATIONS Guests arrive with a set of expectations What that chosen hotel or restaurant can and should do How the people providing the service should behave How the physical setting should appear How the guest should dress and act What the cost and value of the successfully delivered service should be GUEST EXPECTATIONS Guests arrive with a set of expectations What that chosen hotel or restaurant can and should do How the people providing the service should behave How the physical setting should appear How the guest should dress and act What the cost and value of the successfully delivered service should be GUEST EXPECTATIONS People's past experiences with an organization provide the primary basis for their expectations regarding future experiences In many instances, this sets a high standard to meet: what may create a "wow" experience for guests upon a first visit may be only "as expected" the next time Tthe key to delighting customers is to consistently over-deliver. GUEST EXPECTATIONS Example: People going to Wendy's, , have well-defined expectations about the quick serve experience and soon notice when the food is not up to par, service is slow, the rest rooms are dirty, or something else is different from what they expected. MEETING GUEST EXPECTATIONS The major responsibility for fulfilling the expectations created by the marketing department and by the past experiences of repeat guests lies with the operations side of the organization. If guests experience falls short of what they have been led to expect or have learned to expect, they will be unhappy. They will remember their unmet expectations as poor service and a bad experience. They will not remember later a delightful, carefully planned guest experience; MEETING GUEST EXPECTATIONS If enough people tell their friends what a terrible experience your restaurant or hotel provided, your reputation will be gone. Happy and unhappy guests are no longer restricted to talking with friends and neighbors over the backyard fence or on the phone. Angry customers can instantly tweet their friends or post their complaints to convey their experiences with different organizations or products. MEETING GUEST EXPECTATIONS If the organization cannot meet certain types of expectations, it should not say it can; it should not promise more than it can deliver. One reason for superb service and a key reason for its real success is that it does not promise more than it can deliver. "I really like Southwest Airlines. While not fancy, they do exactly what they are supposed to do---get you where you are going safely and efficiently---with your luggage!" DO NOT PROVIDE MORE HOSPITALITY THAN GUESTS WANT When does enough become too much? A guest has come to the restaurant with his love interest in hopes of finding a quiet moment to propose marriage, the constant presence of an overly attentive waitstaff will be a major annoyance and too much service DO NOT PROVIDE MORE HOSPITALITY THAN GUESTS WANT When does enough become too much? A guest checks into a hotel seeking a quiet retreat and expressly mentions wanting minimal interaction during their stay. Despite this, hotel staff repeatedly knock on the door to offer complimentary services, room checks, and reminders about hotel amenities and events. DO NOT PROVIDE MORE HOSPITALITY THAN GUESTS WANT When does enough become too much? On a long-haul flight, an airline prides itself on its attentive in-flight service, offering frequent meal and beverage services, and engaging passengers in conversation to ensure a pleasant journey. A business traveler, intent on using the flight time to work or rest, finds the frequent interruptions disruptive and unnecessary. 3 GENERIC STRATEGIES "Price, quality, speed--- pick any two." (According to Michael Porter) 1\. Low-price provider 2\. Differentiate 3\. Market niche 3 GENERIC STRATEGIES 1\. Low-price provider "We will not be undersold!" design and provide pretty much the same service that the competition sells, but at a lower price focus is on maximizing operational or production efficiencies to minimize the organization's costs. 3 GENERIC STRATEGIES Example: 1\. Southwest Airlines - focused on reducing the costs of running the airline to achieve the lowest production cost per mile in the industry 2\. Wal-Mart - focused on selling for less by controlling inventory and cutting merchandise costs by mass buying. 3 GENERIC STRATEGIES 2\. A Differentiated Product Try to attract guests by emphasizing these differences rather than by offering low prices Try to differentiate themselves in the marketplace by advertising that can create a brand identity that is valued by the targeted customers or offering special amenities 3 GENERIC STRATEGIES Example: Nickelodeon Suites Resort focusing on families with children offering suites themed on Nickelodeon's popular children's characters Interactive kids-only dinner show with a slime experience. SpongeBob SquarePants, kids' wristbands for parents' 3 GENERIC STRATEGIES 3\. Market Niche Focus on a specific part of the total market by offering a special appeal---like quality, value, location, or exceptional service--- to attract customers in that market segment. 3 GENERIC STRATEGIES Example: Mcdonalds - focused on low-cost producer in the budget segment of the market in fast food restaurant Chili's - offering price and food values at a point above fast-food and below finedining restaurants THE HOSPITALITY PLANNING CYCLE STAGES OF THE PLANNING CYCLE AROUND 1\. Assessment Discuss the importance of thorough market research, competitor analysis, and internal audits to understand the current standing and identify opportunities. 2.Planning Outline how to set realistic and measurable objectives based on the assessment. Discuss formulating strategies that focus on innovation, guest experience, and operational efficiency. STAGES OF THE PLANNING CYCLE AROUND 3.Implementation Highlight best practices for bringing plans to life, including staff training, technology integration, and service delivery optimization. 4.Evaluation Explain methods for measuring outcomes against objectives, such as guest feedback surveys, online reviews, and performance metrics. Stress the importance of using this data for making informed adjustments. LOOKING AROUND Market Trends Analysis - A hotel might analyze travel trends, such as an increase in eco-tourism, to develop new sustainable tourism packages. Competitive Analysis - A restaurant could study competitors in the area to identify what cuisines or dining experiences they are not offering, thus finding a niche market. LOOKING AROUND Customer Preferences - An event management company might analyze social media and online reviews to understand what themes or types of events are gaining popularity among its target audience. Regulatory Environment - A hospitality business must stay informed about changes in regulations, such as health and safety standards or zoning laws, that could impact operations. LOOK WITHIN Resource Audit - A hotel looking within might evaluate its physical assets (rooms, facilities), human resources (staff skills and experience), and financial resources to determine if it can support a new service offering. Process Efficiency - A restaurant might assess its kitchen operations and customer service processes to identify bottlenecks or areas where efficiency can be improved. LOOK WITHIN Service Quality Evaluation - An event management company could gather feedback from clients and attendees to evaluate the quality of its events and identify areas for improvement. Financial Performance Analysis Reviewing financial statements to assess profitability, cost management, and investment returns to inform future budgeting and investment decisions. ASSESSING THE ENVIRONMENT Most services include a tangible physical product or tangible materials and equipment in the transaction Mcdonalds (hamburger, fries, chicken etc) Cruise line (ship) Dining experience (food) Teacher lesson (chalk, notes) DEVELOPING SERVICE STRATEGY Asking Customers What They Want The best way to know what your customers want or expect is to ask them Customers can tell the organization what they really value, and these values should drive the decision process on resource allocations. Example: Walt Disney (The quality of the fast food did not seem to matter all that much but attractions, entertainment, and fireworks were strongly related to both the return intention and the satisfaction measure) DEVELOPING SERVICE STRATEGY The Excellent Service Strategy (Berry's Four Components of Excellent Service) Quality - the excellent strategy emphasizes quality. Without a commitment to quality, nothing else matters. Value - It commits the organization to providing customers with more benefits from the guest experience than their costs. DEVELOPING SERVICE STRATEGY The Excellent Service Strategy (Berry's Four Components of Excellent Service) Service - commits the organization to hiring people who believe in service, employee training programs emphasize the commitment to service quality, resources are allocated to serving the customer Sense of genuine achievement. - It should stretch and push every employee to grow and develop so that the employee group stretches and develops the entire organization to do things no one thought were possible ACTION PLANS Types of Capacity Utilization Action Plans and give examples 1\. The Design Day involves planning and optimizing operations based on a hypothetical day designed to represent a high level of demand or activity. Aviation, theme parks, and hospitality, where businesses must manage fluctuating demand and ensure a high-quality guest experience. Example: In an airport setting, a Design Day might be conceptualized around the busiest travel day of the year, with considerations for factors like passenger flow, baggage handling, and security processes. ACTION PLANS Types of Capacity Utilization Action Plans and give examples 2\. Yield Management Also known as revenue management, is a strategy used to maximize revenue through the management of inventory and pricing based on demand predictions Widely used in airlines, hotels, and car rental industries, where the service capacity is fixed, and the goal is to sell the right product to the right customer at the right time and price. Example: A hotel uses yield management by dynamically pricing rooms based on expected demand. During peak tourist season, room prices may increase to maximize revenue, while during off-peak times, prices may be lowered to attract more guests. ACTION PLANS AS AN INTEGRATED WHOLE Integrating The Design Day and Yield Management strategies allows businesses to not only prepare for peak demand scenarios but also to maximize revenue across different demand levels. This integrated approach ensures operational readiness and financial optimization. Example: Airline Industry: An airline could use The Design Day strategy to ensure that its operations, from check-in to boarding, are optimized for peak travel days, such as holiday seasons. This might involve staffing adjustments, optimizing gate assignments, and enhancing customer service protocols to handle increased passenger volume. ACTION PLANS AS AN INTEGRATED WHOLE Simultaneously, the airline employs Yield Management to adjust ticket prices based on demand predictions, selling early bird tickets at a lower price to ensure a base level of occupancy, and then increasing prices as the travel date approaches and demand solidifies. Theme Park: A theme park might use The Design Day concept to design operations and guest experiences around the busiest days of the year, ensuring that ride queues, food and beverage services, and staff allocations are optimized to handle large crowds.