CUSTOMER SERVICE THE RITZ-CARLTON WAY

Since its 1983 incorporation, the Ritz-Carlton Hotel Company has received a number of
prestigious awards from both the hospitality industry and leading consumer organizations. In
1998, for example, 11 of the American Automobile Association's 57 prestigious five diamond
awards went to Ritz-Carlton hotels (in the year, there were only 35 hotels in the Ritz-Carlton
chain). On several occasions, Zagat's annual U.S. Hotels, Resorts & Spas Survey has recognized
Ritz-Carlton as the "Best Hotel Group."
Ritz-Carlton's preoccupation with customer service and employee training is somewhat unusual
in an industry characterized by low wages and a high level of employee turnover. Across the
industry, annual hotel employee turnover is estimated to range from 51 percent to 300 percent.
According to Leonardo Inghilleri, a Ritz-Carlton senior Vice-president, "Customers who come
to our hotel pay a premium for perfection. We have a tremendous challenge to meet and exceed
customer expectations. That's why we discuss customer service every single day of our lives."
Ritz-Carlton's philosophy is embodied in the core values it calls the Gold Standards, a vital
part of which is the firm's credo. It states: "The Ritz-Carlton-Hotel is a place where the genuine
care and comfort of our guests is our highest mission. We pledge to provide the finest personal
service and facilities for our guests who will always enjoy a warm, relaxed yet refined
ambiance. The Ritz-Carlton experience enlivens instills well-being and fulfills even the
unexpressed wishes and needs of our guests."
Ritz-Carlton's quest for superb service begins with employee selection. It has identified specific
behavioral traits that would lead to successful employees in each position. The firm recognizes
that the desired traits differ by position. Thus, housekeepers are expected to be exact attentive to
detail, and take pride in their work. In contrast a doorman has to be more of a "people person"
and be able to convey friendliness to patrons, even from a distance. Exactness is not a crucial
aspect of a doorman's position.
The firm uses a well-designed selection and interview process to determine if an applicant meets
the requirements for a given position. This process is so demanding that Ritz-Carlton hires only
1 in 10 applicants.
Although Ritz-Carlton's customer service standards are first communicated to all new employees
at an orientation session, the standards also provide the basis for continuous employee training.
All 16000 employees undergo 120 hours 0f training per year, divided into two general areas:
technical training (such as how to properly make a bed or serve a meal at a first-class restaurant)
and customer service training that addresses how guest challenges can be best resolved (such as
dealing with a broken TV). The training is reinforced with 10 to 15 minute daily meetings that
explain why the firm is in business and its continued commitment to "Gold Standards" customer
service.

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Every Ritz-Carlton employee is empowered to resolve guest problems, whether or not the
matter of concern immediately falls into that employee's immediate area of responsibility.
For instance, a waiter hearing that a guest's TV is performing poorly is expected to call the
hotel's engineering department to resolve the problem. Ritz-Carlton's research has found
that the most loyal customers are those who have had a minor problem quickly resolved.
Ritz - Carlton also recognizes the need to retain employees by providing a good
compensation package and through its concern with satisfying employees' personal needs.
The company recently initiated new programmes that improve their employees' personal
growth.
Questions

1. Why do you think that more hotels have not copied Ritz-Carlton's approach to customer
service?
2. What other aspects of relationship retailing can Ritz-Carlton utilize? J
3. Present an outline for a customer service philosophy for a local dry cleaner based on the
information in this case.
4. How can Ritz-Carlton use its customer data base to further improve its customer
service?