Case Study: The Mount Rundle Hotel Banff Summary of Main Issues

3320596 Julia Yoo

The main issues in this case are regarding the service delivery failures and recovery actions. These problems arise from poor operations managements, lack of human resource management and wrong mind-set of employee about customer services. Furthermore, if the service recovery process were done properly, the mount rundle hotel could have stopped this minor problem escalating into major problem Generation and Evaluation of Main Issues Inconsistent information quotes: the information regarding prices and current room vacancy are inconsistent and it gives customers confusion. Hiring unprofessional staff: Front line staff was a college student and housekeeping staff was playing football in a hallway with towels. Without authorisation, staff used customers credit card even after seven months of staying at the hotel. The staff did not check payment confirmation at the first time properly since the customer asked regarding payment and he had been assured that payment would been charged by Expedia. Accounting department found the mistake regarding Mckenzies transaction seven months later, not straight away. Poor customer service: a smelly and uncleaned room made customers unpleasant. No one helped the customers to carry their luggage. The room was not stocked. The customer had to go down and ask unstocked product

(shampoo) by himself. The hotel didn't apologize for any inconvenience to customers.

Wrong Mind-set: the manager of hotel think that it does not matter if a customer returned or not. The employees of this hotel did not consider customers perspective at all.

Recommended Solution and Justification In order to maintain this hotel business successfully it is crucial to satisfy their customers. The first thing to do is that the hotel employees shou ld think customers perspective as top priority. Hiring professional staff with the right attitude and more experienced in service industry Providing continuous service training to employees (customer oriented) Explanations the issues to customers: If the staff explained what happened regarding payment issues between Expedia and the hotel, customer would understand this situation and not escalate this issue to next level. Offer Apology: The hotel should provide an apology for the service failure and the fact that without any explanation and notice, they used customers credit card. Compensation customers for being patient and any convenience

Satisfied customers are more likely loyal to the brand, in this case, to the business and they would revisit and this customer would be a good influence over the business. However, disappointed customers are likely to engage in negative behaviours such as commenting bad reviews on public websites like Mckenzie. In the first place if some alternative actions like my recommendation had been taken this customer would have felt more pleasant. Reference

Sparks. B, 2002, Customer perspectives on service failures n the tourism & hospitality industry, National Library of Australia Cataloguing in Publication Data