Hospitality Today An Introduction

1. Hospitality TodayAn Introduction RHM 175

2. What is Service? …….generally defined as “work done for others.” Pages 4-7

3. Work done for others • If a waitress comes to you for your order and you request a New York Strip Steak and a baked potato, if she returns with a Chicken Breast and mashed potatoes, has the waitress worked for you? 2. Did she do what you expected?

4. Example of Exceeding Expectations Mandarin Oriental in Bangkok • Guests are met at the airport with a limousine and by a hotel manager • All employees greet customers by their names • Bowls of fresh fruit are replenished many times daily in their rooms • Personalized stationary is found in all rooms • Staff-to-Guest ratio is always 3 to 1 • The hotel runs one of the best hospitality schools in the country

5. Expectations Restaurants and hotel guests have certain expectations. If reality exceeds expectations – then guests rate the service received as better than average, or high. If reality matches expectations – the guests get what they expected, no more or no less – then service is satisfactory. If reality is less than what is expected, the service is considered poor.

6. Reality vs. ExpectationsAn example of bathroom and towels If reality exceeds expectations – Heated towels and a heated floor in the bathroom If reality matches expectations – Clean towels and a regular bathroom floor If reality is less than what is expected – Missing or Dirty towels and a dirty bathroom floor

7. Customers Expectations Service: Meeting customers' needs in the way that they want and expect them to be met. Superior service, obviously, means exceeding customer expectations.

8. Challenges in Managing and Marketing Service Business Traditionally, the management and marketing of service businesses have been described and studied in the same way as businesses that manufacture products.

9. Challenges in Managing and Marketing Service Business The view has been…… that management its management and marketing is marketing; once you understand the basic principles, it doesn’t matter much whether you’re marketing a bowl of soup in a restaurant or a can of soup in a supermarket.

10. How service businesses differ frommanufacturing businesses…. Understanding “Intangible Products” • The nature of the product is different. • A service, attitude, conveniences, amenities • Customers are more involved in the production process. • The relationship between the employee and customer interaction. • People are part of the product. • Other guests can spoil your trip or make it great Pages 7-11

11. How service businesses differ frommanufacturing businesses…. Understanding “Intangible Products” • It’s harder to maintain quality control standards. • People make mistakes and are not 100% all the time. • The services provided can’t be inventoried. • If you wait 1 hour for a table at a restaurant, how do you inventory the wait, how your employees treated them, etc. • The time factor is more important. • Food orders should be taken in a timely manner, delivered in a timely manner, etc. • Distribution channels are different. • Customers come up to the front desk and request a room, or they contact the hotel via the internet, or they call the hotel, etc. Pages 7-11

12. The most important operational competency of top-level service managers is the ability to plan for the future. While day-to-day operations can be performed by others, someone must be thinking about next year and beyond…….. This is the job of top Managers! How to Achieve Superior Service in a Less-Than-Perfect World Pages 11-13

13. Strategic Planning Broad, long-range planning Is comprised of a Strategic Planning Process Perform a SWOT analysis Formulate strategies Implement strategies Leadership Organizational structure Corporate Culture Monitor and evaluate results How to Achieve Superior Service in a Less-Than-Perfect World Pages 11-13

14. 1. SWOT - an acronym for strengths, weaknesses, opportunities, and threats. A SWOT analysis helps companies assess how well they are serving their current markets, an important step in the strategic planning process. Page 12

15. 2. Formulate Strategies Might include: More Units, appealing to a new market segment, developing a new product. Example: • Marriot developed three other hotels….. • Courtyard by Marriott • Residence Inns • Fairfield Inns Page 12

16. 3. Implementing Strategies • Leadershipmust explain strategies to employees. • Win-Win situation for both company and employees. Example: If we create a new food item, it may be more work, but our customers may love it and bring in more business. Page 12

17. 3. Implementing Strategies • Organizational Structuremay have to be changed to be successful. • Positions and Job Descriptions will change. Page 12

18. 3. Implementing Strategies • Corporate Culture– employees who buy into the corporate culture or way of doing business. Everyone must share the same values and work ethic. Page 12

19. Planning Challenges in Capacity-Constrained Business Productive capacity – how much can you produce to meet customer demand. Example: how many customers can be served in a restaurant (due to size of restaurant and number of employees that can serve them and cook for them, at any given time). Page 13 - 15

20. Planning Challenges in Capacity-Constrained Business Capacity-constrained business – Businesses that produce “products” or service that cannot be inventoried or stored for future use. Success depends on their ability to efficiently match productive capacity to consumer demand at any given moment. Page 13 - 15

21. Planning Challenges in Capacity-Constrained Business • Managing Supply – Hotels have a set number of beds and restaurants have a set number of tables with chairs. These cannot be altered if a large amount of individuals visit at one time. This is also calledlevel-capacity strategy, which means the same amount of capacity is offered no matter how high the demand. Page 13 - 15

22. Planning Challenges in Capacity-Constrained Business Chased-demand strategy – some hospitality firms can follow this strategy. Capacity can be varied to suit the demand level – in a limited way. Example: Cross-training employees, rent extra equipment, etc. Page 13 - 15

23. Planning Challenges in Capacity-Constrained Business Managing Demand – when supplies cannot be controlled, demand can be manipulated to benefit your business. Early Bird Specials Half-off on Wednesday's! Buy One Get One Free Specials Page 13 - 15

24. The Strategic Service Vision • Targeting a Market Segment • Who wants what? Does the market want….. • Fine Dine, Spas, Cheep rooms, Exercise Equipment, Pools, ? • Focusing on a Service Strategy • Service Standards – consistency • Job Restructuring • Payroll Control Page 15 - 18

25. Delivering on the Service Promise Many theories and ideas about service have been mentioned, the bottom is – doing it!

26. Keys to Delivering Good Service • Don’t forget who you are. • Encourage every employee to act like a manager. • Handle moments of truth correctly. Critical moments when customers and staff members interact, offering opportunities for the staff to make a favorable impression, correct mistakes, and win repeat customers. • Hire good people and keep them happy. • Respond in a timely manner. Page 18 - 21

27. Service, Disney-Style • Safety – is a key element in a theme park. • Courtesy – there motto is “our front desk is our bottom line.” The guest are always our guests, even when right or wrong. • Show - Entertainment • Efficiency – If the lines are long for a certain ride, then a parade will pass by to get the customers attention off of the wait. Page 21 - 23