Académique Documents
Professionnel Documents
Culture Documents
(HMGT 119)
Unit 4
The Hospitality Industry
3
CHARACTERISTICS OF THE HOSPITALITY
INDUSTRY
2. Inseparability
- In most hospitality services, both the service
provider & the customer must be present for the
transaction to occur.
- Customer-contact employees are part of the product.
- Service inseparability means that customers are
part of the product.
- E.g. a couple may have chosen a restaurant because
it is quiet & romantic, but if a group of loud &
boisterous conventioneers is seated in the same
room, the couple will be disappointed.
- Managers must manage their customers so that
4
they do not create dissatisfaction for others.
CHARACTERISTICS OF THE HOSPITALITY
INDUSTRY
- The characteristic of inseparability requires
hospitality managers to manage both their
employees & their customers.
3. Perishability
- Services cannot be stored.
- E.g. a 100 room hotel that sells only 60 rooms on a
particular night cannot inventory the 40 unused
rooms & then sell 140 rooms the next night.
Revenues lost from not selling those 40 rooms is
forever.
- Because of service perishability, airlines & some
hotels charge guest holding guaranteed
reservations even when they fail to check into the
hotel. 5
CHARACTERISTICS OF THE HOSPITALITY
INDUSTRY
6
CHARACTERISTICS OF THE HOSPITALITY
INDUSTRY
4. Variability
Lack of consistency
Services are variable (uneven). Their quality depends
on who provides them & when and where they are
provided.
Services are produced and consumed simultaneously.
Educate customers
10
MISSION STATEMENT
Itis short statement of the central purpose,
strategies, & values of a company.
A corporation’s mission statement should
answer the question “ what business are we
in?”
A good mission statement will go beyond the
obvious & include the corporate purpose,
values, & strategies.
11
GOALS
hospitality business.
IMPORTANCE OF SERVICE IN HOSPITALITY
MANAGEMENT
21
MOMENTS OF TRUTH
Jan Carlzon, former president of Scandinavian
Airlines, wrote a book in which he employs the
term “moments of truth”.
It describes contacts between customers &
businesses that give customers impressions of the
businesses & from which customers make
judgment about the businesses.
A customer makes judgment about a business
each time he/she contact with any element of that
business.
E.g. in a hotel, a guest may first make contact
with the hotel business when her taxicab stops in
22
front of the entrance.
MOMENTS OF TRUTH
The initial impression made by the outward
physical appearance of the building may be the
first moment of truth.
If the guest expects the taxi door to be opened
by a doorkeeper, his presence/absence may be
the next moment of truth.
In restaurants, moments of truth are equally
applicable.
Customers experience moments of truth when
they arrive at the establishment. If appearance
of the building is pleasing/if there is sufficient
parking, positive moments of truth are 23
recorded.
MOMENTS OF TRUTH
Upon entering the restaurant, customers
note its atmosphere----the lighting & décor
as well as the noise level.
The sum of the customers’ moments of truth
become the perception & impression of a
hospitality business & its service quality.
If the majority of customers judge the
moments of truth to be positive, the business
will have a positive reputation.
If not, the business’s reputation will be
negative, & decreasing levels of sales will be 24
likely.
CYCLES OF SERVICE
Karl Albrecht states that a customer views
an organization in terms of the chain of
events from the beginning of his experience
with an organization to the end of the
experience. He refers to this chain as a
“cycle of service”.
A “cycle of service” is a natural, unconscious
pattern that exists in the customer’s mind,
& it may have nothing in common with one’s
technical approach to setting up the
business.
25
CYCLES OF SERVICE
Albrecht point out that service businesses are
often set up & run in a fashion designed to achieve
specific goals established by owners/managers, &
that working to achieve these goals may impede
one’s ability to provide positive moments of truth&
satisfy customers’ needs.
E.g. a hotel may be run to achieve maximum
profit.
Managers may therefore establish policies that
would minimize staff & maximize efficiency. This
may mean that customers desiring to check into
the hotel have to wait in line because an
insufficient number of clerks is on duty. 26
CYCLES OF SERVICE
This approach may mean establishing
policies in the kitchen & bar that do not
allow servers to take orders for items other
than those listed on the menu.
It may lead to minimizing supervisory staff
to a point where customer problems cannot
be appropriately handled.
Guests, however, are not aware of these
policies & are concerned with their own
comfort & enjoyment of the hotel facility.
27
CYCLES OF SERVICE
They experience moments of truth from the
beginning of their stay to their departure &,
taken together, these represent a cycle of
service that leaves an overall impression of
satisfaction/ dissatisfaction with the hotel.
28
CYCLES OF SERVICE
Ifboth managers & staff members do their
best to generate positive moments of truth for
customers, the resulting cycles of service are
more likely to produce satisfaction.
29
WAYS TO IMPROVE SERVICE
Effective
leaders are those who make things
happen because they developed the
knowledge, skills, & attitude required to get
the most out of the people in their operation.
40
TRENDS
We can identify a number of trends that are having
& will continue to have an impact on the hospitality
industry.
Some of the major trends that hospitality
professionals indicate as having an influence on the
industry are:
1. Globalization: one has the opportunity to
work/vacation in other countries, & more people
than ever travel freely around the world.
2. Safety & Security: since 9/11, people become more
conscious of their personal safety & have
experiences increased scrutiny at airports & federal
and other buildings; tourists kidnap from their
resorts, thugs mug them & other assault them. 41
TRENDS
3. Diversity: the hospitality industry is more divers of
all other industries; not only do we have a diverse
employee population, but we have a diverse group of
guests. Diversity is increasing as more people with
more diverse cultures join the industry.
4. Service: this is at the top of the guest’s
expectations, yet few companies offer exceptional
service. Hence, training is important in delivering
the service that guests have come to expect.
5. Technology: is a driving force of change that
presents opportunities for greater efficiencies &
integration for improved guest service. The industry
faces challenges in training employees to use the
42
new technology & to standardization of software.
TRENDS