operation-management-in-hospitality-industry.pdf

289 views 36 slides Sep 19, 2024
Slide 1
Slide 1 of 36
Slide 1
1
Slide 2
2
Slide 3
3
Slide 4
4
Slide 5
5
Slide 6
6
Slide 7
7
Slide 8
8
Slide 9
9
Slide 10
10
Slide 11
11
Slide 12
12
Slide 13
13
Slide 14
14
Slide 15
15
Slide 16
16
Slide 17
17
Slide 18
18
Slide 19
19
Slide 20
20
Slide 21
21
Slide 22
22
Slide 23
23
Slide 24
24
Slide 25
25
Slide 26
26
Slide 27
27
Slide 28
28
Slide 29
29
Slide 30
30
Slide 31
31
Slide 32
32
Slide 33
33
Slide 34
34
Slide 35
35
Slide 36
36

About This Presentation

OPerations


Slide Content

OPERATION MANAGEMENT IN HOSPITALITY INDUSTRY
Care of Clients w/ Problems in Nutrition & GI Metabolism & Endocrine, Perception &
Coordination (University of Southern Mindanao)
Scan to open on Studocu
Studocu is not sponsored or endorsed by any college or university
OPERATION MANAGEMENT IN HOSPITALITY INDUSTRY
Care of Clients w/ Problems in Nutrition & GI Metabolism & Endocrine, Perception &
Coordination (University of Southern Mindanao)
Scan to open on Studocu
Studocu is not sponsored or endorsed by any college or university
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

CHAPTER 1

OPERATION MANAGEMENT

OBJECTIVES:
1. Discuss operation management.
2. Explain the operation management in tourism and hospitality
3. Understand the system involved in tourism and hospitality industry.
4. Know and understand the Main sectors of tourism Industry.


Operations management
an area of management concerned with designing and controlling the process
of production and redesigning business operations in the production
of goods or services.
It involves the responsibility of ensuring that business operations are efficient in
terms of using as few resources as needed and effective in terms of meeting customer
requirements. Operations management is primarily concerned with planning, organizing
and supervising in the contexts of production, manufacturing or the provision of
services.
It is concerned with managing an entire production or service system which is the
process that converts inputs (in the forms of raw materials, labor, consumers,
and energy) into outputs (in the form of goods and/or services for consumers).
Operations produce products, manage quality and create services. Operation
management covers sectors like banking systems, hospitals, companies, working with
suppliers, customers, and using technology. Operations is one of the major functions in
an organization along with supply chains, marketing, finance and human resources. The
operations function requires management of both the strategic and day-to-day
production of goods and services.
[4]
In managing manufacturing or service operations several types of decisions are made
including operations strategy, product design, process design, quality management,
capacity, facilities planning, production planning and inventory control. Each of these
requires an ability to analyze the current situation and find better solutions to improve
the effectiveness and efficiency of manufacturing or service operations.
[5]
Operations management in tourism and hospitality
Refers to the work done in the different fields of hotel industry. Jobs in the
hospitality industry, such as hotels, restaurants, catering, resorts and casinos as well as
other hospitality positions that deal with tourists generally, refers to hospitality.
Hospitality involves the relationship process between the hotel and a guest and the act
of being hospitable, such as guest reception and entertainment with friendliness,
goodwill and liberality. Tourists who travel for recreation or leisure purposes is related to
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

tourist management. In recent years, tourism has become a popular global leisure
activity among worldwide customers
What are the 5 Different Sectors of Hospitality Industry?

The hospitality industry is a bustling industry with myriad categories, but customer
service is the unifying factor shared by all segments of the industry. Different sectors of
the hospitality industry ensure that traveller’s needs are catered to in a holistic manner.
What are the different sectors of the hospitality industry?
That being said, your business may focus on one segment or go for all facets of the
hospitality industry.
The hospitality itself is a multi-billion-dollar industry that relies heavily on the availability
of disposable income and leisure time.





The below image presents the categories of the Hospitality industry or displays what we
can call the hospitality world.

In the hospitality sector, the success of a business depends largely on how efficient the
hospitality team is and how effective the business model is.
So, in essence, one can make a foray into all categories of the hospitality industry.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

Costs and challenges will certainly swing upwards, but managing or owning different
sectors of the hospitality can offer a chance to rake in more rewards in the long haul.


5 di�erent sectors of the hospitality industry

1. Lodging-Accommodation
This sector of the hospitality industry features a gamut from luxurious hotels to
lavish resorts and campgrounds.
Accommodation is an absolutely broad sector of the hospitality industry, ranging from
bed & breakfast enterprises and hotels to other facilities that offer lodging services.
Again, customer service is indispensable in providing accommodation services. And that
isn’t all – efficiency, integrate comfort, and world-class amenities are also its
As you might expect, accommodation can marry well with other segments of the
hospitality industry.

Of the three things which people need, when they travel, the most important one is
accommodation. Other two are food and transportation. It is due to this fact we have
started with lodging in our list of 5 sectors of the hospitality industry.
If you have arranged for hotel and accommodation, you will automatically find the other
two.
A lot of focus is being made these days to improve the lodging experience of people
travelling around the world.
Discussed below are three main types of hotel and accommodation services:
 Lodging: When people travel from one place to the other, they need a place to
sleep. A shelter which will keep them safe from the atrocities of nature. This results
in people booking lodges and rooms for their stay.
 Suites: Apart from general lodges to stay, hotel sector offers luxury suites for the
stay as well. Generally, suites are suitable for formal sorts of staying and are much
expensive compared to regular room services.
 Resorts: The third type of accommodation which is popular among travellers are
resorts. These bring you close to nature and give you a necessary break from your
normal routines.

2. Food and Beverage
This is another crucial one of the 5 different sectors of the hospitality industry. It’s
another wide sector of the hospitality industry. Food and beverage sector reign supreme
in the industry. And, for good reasons.
It can range from something as simple as a bistro all the way to a high-end restaurant
and every catering establishment in between. As it’s expected, the food and beverage
industry is further sub-categorized into niches.

Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

There can be a humongous list when we categorize the food service industry as a
crucial sector of the hospitality industry but we will list the key categories below.
 Quick-service Establishments – These are commercial foodservice restaurants
that compete for customers who look to garner quick snacks, drinks, and meals.
Typically, they have fewer employees. In fact, self-service is the norm here. Think of
McDonald’s, KFC, Subway, Pizza Hut etc.
 Catering Businesses – This category provides food and beverage catering
services for any special occasion – from weddings to birthday parties and
everything in between.
 Full-Service Restaurants: These are your typical restaurants or eateries which
feature course meals, drinks, and a plethora of other food services. These
establishments usually seat you at a table and use waiters to take food orders.
From fine dining to casual dining to themed restaurants; there is a range of these
full-service restaurants.
Themed restaurants have grown multiple folds like the wave of luxury underwater
restaurants.
Such is the popularity and growth of Foodservice establishments that industry pundits
are considering Full-service restaurants as a separate category of the hospitality
industry.
People are always looking forward to food when they are on the go. When in a different
country, people like to taste local cuisines.
So, food and catering make essentials of the hospitality industry. It starts with food
production and ends at food representation on the eating tables, with storage and
cooking steps resting in between.
It is also important to discuss the processes and stages involved in the foodservice
industry of hospitality.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

 Food Management: It starts with the production of food. Many hotels and
restaurants serve naturally organic food. Apart from production, food transportation
and storage also make part of this division.
 Food Presentation: People like to eat food which is well represented. So, a lot
of focus should be made on food representation to improve hospitality experience.
 Beverages: Apart from general food items, beverage storage, and representation
also make it into the list of food and catering services.
 Restaurant Management: Restaurant management is a science which is being
taught in colleges these days. With proper skills to manage a restaurant, you can
manage food, beverages, and maintain a quality representation of food, so that
customers will come again to eat at your place.

3. Travel and Tourism
A lot consider tourism synonymous with hospitality and not as a different sector of the
hospitality industry.
Travel and tourism industry is a vast sector of the hospitality industry with several key
players across the globe. Most of them include trains, airlines, cruise ships, and several
crew members in their service.
On the whole, players in the travel and tourism segment are in the business of moving
people from one destination to another.
It would not be an exaggeration if we make a statement that the most important
segment of the hospitality industry is travel and tourism as others depend on it. Without
profound levels of travelling and tourism in a region, the hospitality industry of the region
won’t grow.
So, the Travel and tourism domain makes the backbone of our hospitality industry.
It is a huge domain which demands innovation, strategy, and novelty at each step.
When we talk about travel and tourism, it is not confined to leisure and travel for fun.
Both formal and informal travelling include this division. People travel across the globe
for businesses, education, entertainment, holidays, and many other things.
Like all other different sectors of the hospitality industry, this one also demands
customer focus, leniency, relationship management, and other integrated marketing
skills for its smooth running and expansion.

4. Entertainment Industry
This again is a key category of the hospitality industry as it involves the most important
thing of hospitality. Us, the buyers and recipients of all hospitality services. So, this
sector of hospitality thrives for us and to entertain us.
Entertainment is a significant part of our travel these days. If your travelling experience
lacks fun and entertainment then you might not be able to enjoy your time up to the
fullest.
So, for the successful running of hospitality businesses, it is important to have in the
kitty as many entertainment activities as possible.
Some of the activities which can elevate your experience when it comes to
entertainment are:
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

 Marinas: Marinas are one of the most popular places to go when it comes to
partying. You can get along with your friends on a private yacht where you can
dance, play games, and enjoy the best of your life.
 Sports and Gaming: Sports and gaming is a basic thing which people are
looking for on their travel. As a result, Casinos, swimming pools, and other similar
activities are becoming an indispensable part of the hospitality sector.
 Cruise: Apart from marinas, cruise services are also becoming an essential
component of the hospitality industry. Now, people like to spend their days on luxury
ships which sail across the blue oceans under the clear sky.
 Nightclubs: Who doesn’t love to dance to their favourite song when on a break?
We all do. This is why hotels have nightclubs services in them.
 Bars: Sitting around a table and having a couple of drinks with your friends is
always a refreshing experience. This is why bars make an important part of the
entertainment sector of the hospitality industry.

5. Timeshare
An emerging yet vastly important sector of the hospitality industry is vacation ownership
of a place. In this scheme, people, either individuals or parties, own the rights to a place
for a specific time period during the year.
We have placed Timeshare on our list of 5 different sectors of the hospitality industry
because of the raised interest of hospitality enthusiasts for Timeshare.
Timeshare gives us an option to own our choices and to enjoy facilities by either buying
a part of a facility or getting into a membership plan.


During this time, they can bring this place under their use, the way they want to.
There are many places which people can own for the time being, under the timeshare
rule. A couple of them are discussed below:
 Convention Centres: Convention centres make the base of the hospitality
industry as they offer a place where people can gather in bulks for seminars,
conventions, expos, and other similar things.
 Villas and Resorts: You can own villas and resorts under the timeshare rule, for
some time of the year and can go and enjoy with your friends or family.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

Quality and its benefits within the Hospitality context
Quality means, serving in a manner which suits to the tourist within the limits of the
industry. It also refers to the quality provided to the people who have visited an
individuals’ place. The best of the services provided by the operations team is called
quality.
Delivering quality service is one of the major challenges facing hospitality managers in
the opening years of the millennium. It is be an essential condition for success in the
emerging, keenly competitive, global hospitality markets. While the future importance of
delivering quality hospitality service is easy to discern and to agree on, doing so
presents some difficult and intriguing management issues.
Since the delivery of hospitality service always involves people, these issues centre on
the management of people, and in particular on the interactions between guests and
staff, interactions that are called service encounters. In the eyes of our guests, our
hospitality businesses will succeed or fail depending on the cumulative impact of the
service encounters in which they have participated.
It is easy to check the importance of managing these service encounters. Think back
to the last time you visited a hotel or restaurant. Service encounters are the building
blocks of quality hospitality service. First, hospitality managers should identify each
encounter in the chain that they wish to take apart, and then single out those that are of
operational or strategic significance – in effect, focusing in on the few encounters that
really make a difference to guest experience and thus to the bottom line.
Second, apply what we have called the 6 S’s to improving these critical encounters
through effective redesign.
While the first step may seem obvious, it is important to identify a service chain and
then to break it down into the component encounters. Too much detail takes time and
resources, and may confuse rather than clarify. Too little and we may miss important
problems. The process is iterative, with more detail needed in some areas and less in
others, and with an overriding consideration that the chain is assessed not just from the
point of view of a manager but also from that of a guest.
Those that add significant value to the guest, those that cost in time or money, those
that help to differentiate the business from its competitors, and those where significant
innovation is possible or occurring.
Hospitality service encounters run the gamut from those that are very trivial to those that
are highly critical. They vary greatly in their nature and may be simple or complex,
standard or custom, low tech or high tech, remote or friendly, low or high skill, frequent
or occasional, and so on. They can be instrumental dealing with the performance of
necessary utilitarian activities or can involve emotion-laden hospitality events.
An initial management task is to understand a service encounter by discerning and
dealing with those attributes that are most important to guests. In doing so, pertinent
questions must be raised about the specific service encounter(s) under consideration.
With respect to a particular service encounter, hospitality managers might raise many
questions like the following:
The specific encounter(s) under consideration will, of course, indicate the kinds of
questions that should be pursued. It is important to obtain adequate information to
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

understand the situation thoroughly. Determining the context of a situation relating to a
hospitality encounter that has gone wrong establishes parameters for improvement.
All this is part of the second step. With the information at hand hospitality managers
can organize, and analyze the data and it is here that the 6S approach can help.
These are:
Specification Staff Space System Support Style
Specification means clearly detailing information about the what, when, where, and how,
of service encounters. It requires giving careful thought to the linkages between
particular service encounters and others in the service chain.
When hospitality managers have carried out these two step process they will be in an
excellent position to make decisions that will both improve the quality of hospitality
services provided and guest perceptions of them. Zeroing in on hospitality service
quality in this manner will help hospitality businesses meet the service challenges of the
millennium, enhance their market positions, and reap the associated profit rewards.
Staff in the hospitality industry must be trained to enhance all the issues resolved in
time, before the consumers enable to dismantle the theory of having been not satisfied
with the hotel staff and the services provided.
The hotel must have a very good accommodation to have all its clients feel at home. A
good space leads to more impressive and lucrative offers for the consumers to come at
regular intervals. Space means a big area being controlled and operated by the hotel
management and the staff.
There should be discipline in the work being allotted to each and every department.
That means that the system of working as a family and in a healthy atmosphere be
supplemented and enhanced to face any number of customers in the hotel.
Support from all the managerial staff makes a real sense of developing the adjustments
made by the hotel.
The presentation of the hotel should be in such a way that it attracts the eyes of the
clients. The style applied to all the rooms, bar, restaurant, pool side and the lobby must
be so much eccentric that the onlookers feel proud to be the part of such an
organization.
More than ever it is important for businesses to be offering the best service to their
clients and ensuring that their needs are being met so they stay loyal customers. The
increasing use of electronic communication benefits business with efficiency gains but
can be detrimental with the interaction with clients. We all need to hold onto and look
after our customers and one of the best ways to obtain quality time with valuable clients
as well as potential clients and top performing employees is to take them to an
exclusive or very popular event such as a high profile sporting event demonstrating to
them how much you value them. The best way to spend time at an event is going with a
corporate package, for many reasons.
Firstly by doing it in style and creating a special occasion people will remember it for
years to come and will certainly show how much you value them by going that bit further
than buying tickets to the event. Taking employees and clients here will pay you
dividends in the future as it will encourage loyalty and continue bringing in valuable
income.
Using hospitality facilities will provide you with space to spend time with valuable clients
and those contacts that you want to convert into customers. Having that prime location
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

at the event gives you a huge benefit over sitting in a crowded and noisy stadium. It is a
much better suited environment to enjoy the event while talking business too.
Going with a hospitality package can often give you the opportunity to network as other
companies will be sharing the facilities with their clients. You can find valuable clients
and contacts this way.
Supplier selection criteria for a particular product or service category should be defined
by a “cross-functional” team of representatives from different sectors of your
organization. In a manufacturing company, for example, members of the team typically
would include representatives from purchasing, quality, engineering and production.
Team members should include personnel with technical/applications knowledge of the
product or service to be purchased, as well as members of the department that uses the
purchased item.
Common supplier selection criteria:
Previous experience and past performance with the product/service to be purchased.
Relative level of sophistication of the quality system, including meeting regulatory
requirements or mandated quality system registration (for example, ISO 9001, QS-
9000).
Ability to meet current and potential capacity requirements, and do so on the desired
delivery schedule.
Financial stability.
Technical support availability and willingness to participate as a partner in developing
and optimizing design and a long-term relationship.
Total cost of dealing with the supplier (including material cost, communications
methods, inventory requirements and incoming verification required).
The supplier’s track record for business-performance improvement.
Total cost assessment.
Methods for determining how well a potential supplier fits the criteria:
Obtaining a Dun & Bradstreet or other publicly available financial report.
Requesting a formal quote, which includes providing the supplier with specifications and
other requirements (for example, testing).
Visits to the supplier by management and/or the selection team.
Confirmation of quality system status either by on-site assessment, a written survey or
request for a certificate of quality system registration.
Discussions with other customers served by the supplier.
Review of databases or industry sources for the product line and supplier.
Evaluation (SUCH AS prototyping, lab tests, OR validation testing) of samples obtained
from the supplier.
The Journal of Quality Assurance in Hospitality & Tourism serves as a medium to share
and disseminate new research findings, theoretical development and superior practices
in hospitality and tourism service quality. The journal aims to publish cutting-edge
empirically and theoretically sound research articles which advance and foster
hospitality and tourism research and practices. Academicians and practitioners explore
current and important development information on quality planning, development,
management, marketing, evaluation, and adjustments within the field. As a result, this
journal will help readers to keep up-to-date on the latest theory development and
research findings, improve business practices, stay informed of successful hospitality
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

strategies, maintain profit requirements, and increase their market share in this complex
and growing field.
Comprised of conceptual and methodological research papers, research notes, case
studies, and review books and conferences the Journal of Quality Assurance in
Hospitality & Tourism offers readers examples of real world practices and experiences
that involve: organizational development and improvement operational and efficiency
issues quality policy and strategy service quality improvement and customer satisfaction
managerial issues, such as employee empowerment & benefits, quality costs, & returns
on investment the role and participation of private and public sectors, including
residents international, national, and regional tourism; tourism destination sites; arid
systems of tourism
Allowing readers the opportunity to share experiences and thoughts with colleagues in
the field, this journal also contains several columns that examine different and valuable
information sources, including:research notes– significant findings related to the goals
of the journal dissertations and master’s theses abstracts– examine quality assurance &
related topics book reviews– recently published works that discuss the strengths &
structure of the book, subject matter, readability, and discussions about the work’s
contribution to existing practices and knowledge in the field conference reviews–
highlighting & discussing specific papers presented at conferences & their importance in
the field web site reviews– interesting & helpful hospitality & tourism web sites.
Covering several crucial areas in each issue, this journal provides essential information
that can be applied to businesses, the classroom, and new research projects. Bringing
together a variety of perspectives from around the world, the Journal of Quality
Assurance in Hospitality & Tourism has the current, comprehensive, and vital
information necessary to evaluate the quality of services and improve customer
satisfaction in a cost-effective manner.
1.2 Quality Awards/Systems that Hospitality Organizations operate within
The concept of quality management in hospitality industry is very important. The
hospitality industry is one of the most important industries in the world that has been
growing at unique rate owing to the increased rate of globalization. The amplified
activities in tourism industry and improved international trade are among the factors that
have led to increased growth of the hospitality industry. There has been increased trend
towards equivalence of services in the hospitality industry and this is being driven by the
need for augmentation of quality of services. As the level of competition increase in the
industry, the competitive advantage has been created through provision of high quality
services. In order to understand the trend in enrichment of quality of services in the
industry, this paper will review a number of studies on the subject.
The case of Ramada Encore London West discusses how total quality management
has been used in London in the enhancement of quality in the hospitality industry. This
acknowledges that total quality management is a concept that has gained increased use
in the hospitality industry. In recognition of the importance of quality management in the
hospitality industry, the ISO 9000 has been an important step in setting standards for
the implementation of total quality management in the industry. Enhancement of quality
in the hospitality industry is cited to increase the level of customer satisfaction,
increased sales and better profits for business in the hospitality industry.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

Total Quality Management (TQM) is however sometimes difficult to implement in
hospitality industry owing to the difficult in identifying some of the most appropriate
quality measures. This study identified the need to use the quality triangle in hospitality
industry including focus on customers, team work approach to unify goals, and use of
scientific approach in decision making. Through comparing TQM in manufacturing and
hospitality industry, the study gives important review on how hospitality industry can use
the TQM concept to improve their services. This study is important since it shows how
organization in the hospitality industry can actually use TQM concept to enhance quality
in their products and services. It is important to understand that TQM is s wholesome
approach which doesn’t only look at one aspect of quality management but concentrate
on quality in on all aspects.
HACCP is one of the most important aspects in TQM that defines quality. HACCP
defines the important points at which quality should be ensured. Through understanding
the important points in the process of food production or offering of service where
quality can be enhanced, it become easier to enhance quality. While HACCP is an
important factor in quality enhancement process that has been used in large food
manufacturers, it has been slowly employed in the small business especially in the
hospitality industry. The study found out that there are more than eleven barriers to
enhancement of HACCP in enhancement of quality. This has one of the most
comprehensive studies in implementation of HAACP in the hospitality industry. The
findings of the study are important since they show the importance of HACCP in
enhancement of quality of products and services in hospitality industry.
Quality enhancement is important in determining the rating of hotels in hospitality
industry. It is also related to princes of products and services in the industry. In their
study on Quality and Pricing in the Hotel Industry: The Mobil “Star” and Hotel Pricing
Behaviour, Henley, Cotter, and Duncan (2004) argues that price is closely tied to pricing
of products. They argue that quality is one of the most important determinants of price
not only in hospitality industry but also in other industries as well. However, they
concede that it is fortunate that in the hospitality industry, quality evaluation and prince
information are availed for consumer and have also been published in consumer
guides. They give the example of The Mobili Travel Guides as one of the most important
sources of information regarding quality and price of products offered in hospitality
industry. To find whether hotels usually do change their pricing and quality strategy
when their rating is affected in such consumer guides. This study found out that price is
tied to quality of services and products. Most hotels raises their prices when their rating
goes higher and lowers the consequently when their rating is lowered, and the same
happens at Ramada Encore London West. The results are important to enhancement
of quality in hospitality industry. It reveals that quality of service offered has an effect on
rating of the hotels and hence the price of their product.
There are different factors affecting the quality of services in the hospitality industry. In
their review of different factors affecting quality in the Ramada Encore London West
shows that the growth of tourisms industry in different parts of the world have led to
increased attention to quality assurance in the hospitality industry. The hotel looked into
influence of consumer perception on quality of services, the study found out that
different factors like previous acquaintance with the hotel, perception and efficiency,
perception of value, type of restaurant services, quality of conference facilities, and staff
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

attitudes are among the important factors that affect consumer perception of quality in a
given hotel. It is important to operators in the industry who want to improve their quality
since they would focus on these factors. It implies that to enhance quality, hotels must
understand the important factors that are used by consumers to assess quality of
services and products and henceforth improve them.
Employees of Ramada Encore London West have a lot of influence on the quality of
service offered by the organization. Employees are the main point of contact between
organization and the customers. Following the HACCP model, this is an important point
and there should be efforts to enhance quality at this point. In deed, this point has been
reinforced by Kattara, Dina, and El-Said in their study on the impact of employee
behaviour on customers’ service quality perceptions and overall satisfaction. In this
study, Kattara et al., (2008) attempted to investigate the relationship between the
positive and negative employee behaviour, customer sensitivity of the quality of service
offered and the satisfaction of the employees. This study revealed that employee
behaviours whether negative or positive are well correlated with customer satisfaction.
Through review of past and current literature, the study found out that customer
discernment is mainly influenced by the quality of service they received at a given
hotel. This study is important enhancement of quality in the hospitality industry since it
looked at the relationship between employees and their customers.
Consumers are also important determinant of the quality of service offered in the
industry through their reviews. Consumer awareness is an important factor that can be
used by consumers to show the level of quality in the industry. While a manager may
think that their service are quality, customer many think otherwise. Therefore the author
suggests setting up a program that will assist in monitoring go standards of services to
enhance quality.
Quality management is not only abo ut ornamental quality of goods and services.
The hospitality industry in has not been keen on integrating occupation health and
safety with quality management systems. If OHS is not integrated with quality
management system, most organization can degenerate from health participatory
process to mere bureaucratic management tool. The findings of this study are
important since they show the importance of integrating OHS and quality systems. Both
concepts are closely related and enhance each other.
Internal System within the Front Office Area
The Front Office utility of a Hotel is to act as the public face of the hotel, chiefly by
greeting hotel consumers and checking in guests.
It also provides assistance to guests during their stay completes their lodgings, food and
beverage, accounts and receives payment from guests.
Department is typically poised of
1. Reception
2. Reservation
3. Concierge
4. PBX (phone service system)
5. Telephone
a) Front Office: Sell guestrooms; register guests and design guestrooms. Coordinate
guest services provide information. Maintain precise room statistics, and room key
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

inventories. Maintain guest account statements and complete proper financial
settlements
b) Reservation: Receive and process reservation requests for future overnight
accommodations. With technology development, the Reservation Department can, on
real time, access the number and types of rooms available, various room rates, and
furnishings, along with the various facilities existing in the hotel Edgar Dsouz
FRONT OFFICE – is the “nerve center” in the entire hotel operations. All the transaction
passes through within this department.
The Front Office Department comprise of the Reception, Guest Service Offices, Bell
Services, Reservation, Operators, Executive Club, Health and Recreation Center and
Business Center. The purpose of the Front Office Department is to provide guests
assistance with luggage, transportation, information concerning the hotel and the city,
and any other service arrangements needed during their stay.
Employees of the Front Office Department often provide the first and last impression of
the hotel to our guests. It is therefore vitally important that employees display a prompt
and courteous attitude to all guests and demonstrate the excellence in service.
The Front Office Manager who comes under the direct supervision of the Director of
Rooms and supervises the Front Office Department
Important of Front Office Department to the Hotel
.Hospitality, warm welcome
.Often provide first and last impression.
.Often have longest contact with guest.
.Continuity: Long term service, recognition of repeat guests, remember names, guest
histories.
.Acquaint guest with hotel.
.Sell hotel food and beverage outlets.
.Upsell: Suggest deluxe and suites.
.Smoother over disgruntled guests.
Supply Chain Management Strategies
For the organizations which are concerned in tourism, competence is conditioned,
among other determinants, by the harmonization and synchronization of all participants’
efforts from the unambiguous performance chain: tourism services suppliers, tour-
operators, travel agencies and tourists themselves. Among these participants, a special
role is assigned to the tour-operators. Going from certain tourism attractions, they take
upon themselves the manufacture of those products that are required by tourists,
assembling the different basic and complementary tourism services that are offered by
numerous services suppliers, and further, distributing them to the retailers, or directly to
the tourists. The impact of their activity is very strong because through the realized
products they incorporate different types of tourist services. Going from these aspects
and analyzing in a similar manner the tourism activity as the material goods
manufacturing activity from logistical point of view, it can be said that, successful activity
can be achieved when those different participants categories act like a system, into a
supply chain. On tour-operators’ level, the supply chain management incorporates,
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

among the others, planning and management activities concerning purchasing suppliers
selection, internal logistics’ management, as well as collaboration with all marketing
channel partners. Internal logistics involves activities that refers to purchasing,
operations’ support and some aspects that are similar with physical distribution, the
supply chain being structured by cooperation between a various number of participants,
from raw materials suppliers (their impact is visible especially in catering, foods or
beverage suppliers services), up to end consumers. Otherwise, the role of the last
category is more important because they lend the tourism activity specific nature,
through there’s participation on a successful holiday product.
Supply chains evolve in harmony with changes in the market and their ambitions. The
fruition of supply chain is correlated to different elements of progress in the business
context referred to as performance capacity, innovation and clock speed. These
correlations are the starting point of moving the chain towards the higher goals and
therefore are of most importance. In order to assure that the chain is moving on the right
path in its evolutionary journey, the journey must start based on the most precise data
available.
Different firms and diverse supply chains have dissimilar business strategies and value
propositions, and answering those questions is often harder than one might imagine. To
illustrate, let’s look at some examples of metrics that are mis-aligned: cases in which a
company discovered that they weren’t measuring the things that really mattered to their
customers.
Companies must always be concerned with their competition. Today’s marketplace is
shifting from individual company presentation to supply chain performance: the entire
chain’s ability to meet end-customer needs through product availability and responsive,
on-time delivery. Supply chain performance crosses both functional lines and company
boundaries. Functional groups (engineering/R&D, manufacturing, and sales/marketing)
are all instrumental in designing, building, and selling products most efficiently for the
supply chain, and traditional company boundaries are changing as companies discover
new ways of working together to achieve the ultimate supply chain goal: the ability to fill
customer orders faster and more efficiently than the competition.
To accomplish that goal, you need performance process, or “metrics”, for global supply
chain performance improvements. Your performance measures must show not only how
well you are providing for your customers (service metrics) but also how you are
handling your business (speed, asset/inventory, and financial metrics). Given the cross-
functional environment of many supply chain improvements, your metrics must prevent
“organizational silo” behaviour which can hinder supply chain routine.
Supply Chain Strategies are the critical backbone to Business Organizations today.
Effective Market coverage, Availability of Products at locations which hold the key to
revenue recognition depends upon the effectiveness of Supply Chain Strategy rolled
out. Very simply stated, when a product is introduced in the market and advertised, the
entire market in the country and all the sales counters need to have the product where
the customer is able to buy and take delivery. Any glitch in product not being available at
the right time can result in drop in customer interest and demand which can be
disastrous. Transportation network design and management assume importance to
support sales and marketing strategy.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

Inventory control and inventory visibility are two very critical elements in any operations
for these are the cost drivers and directly impact the bottom lines in the balance sheet.
Inventory means value and is an asset of the company. Every business has a standard
for inventory turnaround that is optimum for the business. Inventory turnaround refers to
the number of times the inventory is sold and replaced in a period of twelve months.
The health of the inventory turn relates to the health of business.
In a global scenario, the finished goods inventory is held at many locations and
distribution centers, managed by third parties. A lot of inventory would also be in the
pipeline in transportation, besides the inventory with distributors and retail stocking
points. Since any loss of inventory anywhere in the supply chain would result in loss of
value, effective control of inventory and visibility of inventory gains importance as a key
factor of Supply Chain Management function.
2.2 Supplier Selection Process
Supplier selection criterion for a particular product or service category should be defined
by a “cross-functional” team of representatives from different sectors of your
organization. In a manufacturing company, for example, members of the team typically
would include representatives from purchasing, quality, engineering and fabrication.
Team members should include personnel with technical/applications knowledge of the
product or service to be purchased, as well as members of the subdivision that uses the
purchased item.
Common provider selection criteria:
Previous experience and past recital with the product/service to be purchased.
Comparative level of sophistication of the quality system, including meeting regulatory
requirements or mandated quality system registration (for example, ISO 9001, QS-
9000).
Ability to meet current and potential aptitude requirements, and do so on the desired
delivery schedule.
Financial stability.
Technical support availability and willingness to participate as a partner in developing
and optimizing design and a long-term relationship.
Total cost of dealing with the supplier (including material cost, communications
methods, inventory requirements and incoming verification required).
The supplier’s track record for business-performance improvement.
Total cost assessment.
Methods for determining how well a potential supplier fits the criteria:
Obtaining a Dun & Bradstreet or other publicly available financial report.
Requesting a formal quote, which includes providing the supplier with specifications and
other requirements (for example, testing).
Visits to the supplier by management and/or the selection team.
Confirmation of quality system status either by on-site assessment, a written survey or
request for a certificate of quality system registration.
Discussions with other customers served by the supplier.
Review of databases or industry sources for the product line and supplier.
Evaluation (SUCH AS prototyping, lab tests, OR validation testing) of samples obtained
from the supplier.
TASK THREE
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

3.1 Possible issues encountered by Operations Managers
Lack of capital is often the most critical challenge that a successful manager or leader
faces as its very success creates this and it quickly becomes a vicious circle. Without
very diligent cash flow management and/or mounting of more capital, including debt, the
business often is constrained by capital as it grows. Often the profit in one operating
cycle is insufficient to fund the extra working capital required for the next operating
cycle. Many capable managers cannot overcome the obstacles in their businesses cash
flow cycle and cannot understand why bankers and other lenders often cannot provide
the financing as the manager often does not have the security to support the debt.
The solution is often easier than most entrepreneurs realize.
It often starts with a plan to see what your cash needs are and when your cash needs
arise. Then one is in a position to manage it and focus on the cash management
techniques most likely to be successful in his/her business.
Lack of management skills
Lack of management skills is a problem that is very difficult to deal with in most small
and medium enterprises as the size of the senior management team is necessarily
limited. These areas of weakness could be in finance, human resources, marketing or
any area where the current management does not have the expertise, or the time to
deal with the issues.
It can be solved by determining the weak areas and then developing a plan for dealing
with those challenges. Solutions can be as simple as assigning the responsibility to an
existing manager with a requirement to watch for the obvious pitfalls, to hiring a person
part-time or a consultant.
• Lack of focus
• Ignoring risks in their assessment of alternatives and opportunities
• Lack of a plan
• Failure to plan for issues absorbing the majority of your time
An operations manager should be more proficient regarding his/her department when
operating a staff of Tourism and Hospitality. The faces of the staff repair the atmosphere
in the hotel for the customers. Issues should be handled and resolved with timely
interviewing of the needs and responsibilities of the staff.
It is compulsory for the managers to be more precise over the issues and no favours
should be given to any particular person on gander basis. It’s the most aspiring issue
which hinders the work at the work place and creates a substance of non judgemental
circumstances for the front line managers.
Operations manager must be focussed on the resolution and proper usage of time in
work. This can be implemented on focussing on the demands of the staff which speak of
the customers. By not giving any heed to the needs, the managers sometimes bring a
bad and deliberate reputation to the designation and the atmosphere gives no other
chance rather than to leave.
Planning is another need for the operations managers. A good plan will lead a good
presentation by the staff. A hotel only runs on the presentation of its criteria and backup
must be strong to represent its nature. If the planning of the manager does not match
the abilities of the staff then it can beheld that the operations manager lacks planning
and needs to be refurbished on the planning and strategy building.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

Issues only happen when there is a lack of co-ordination amid the staff. While working
in the field of hospitality one has to resolve the issues otherwise the presentation of the
team will lack a lot of planning and debauchery of the things and conjugally. But if an
operations manager will keep on defying the whole lot by giving advices and resolving
the issues then his own hard made planning’s wont get much time to be implemented.
So an operations manger must be sure on implementing and displaying of his plans in
time instead to giving solvents for the problems and issues.
Operations management has acquired great significance in the recent years due to an
increase in the number of trans-national companies, whose operations are spread
across the continents. It helps in developing the synergies between the various
operations that are separated by time and space. OM has made it possible for trans-
national companies, like Shell Corporation, to source crude oil from an oilrig in Europe
and deliver the oil to a refinery located in Asia Pacific. OM is not limited to Oil
Companies only. OM has enabled many companies to set up production and
manufacturing at cost effective locations and source the required inputs from locations
where procurement costs are low.
Corporate social responsibility (CSR), which takes as its premise that firms ought to
justify their existence in terms of service to assorted stakeholders rather than mere
profit, has been a subject of much debate. Yet, notwithstanding certain critical voices,
more and more businesses, including hospitality companies, are embracing CSR. Some
– like Scandic – even embedded it into their business models, which means that CSR
underpins their organizational modus operandi. Thus this paper, built around an
analysis of Scandic’s Omtanke programme, aims to conceptualize CSR in the context of
the hospitality sector. Great stress is laid, therefore, on the implications of CSR for
hotel-based human resource management, local community support and promotion of
environmental sustainability. Drawing on interviews with Scandic managers and internal
documents, we examine the rationale and effects of various CSR initiatives carried out
in Scandic hotels in recent years. Building on these insights, the paper concludes by
making some recommendations of practical character and highlighting future research
directions.
Issues can be resolved in the process of making healthy relations of the staff and the
customers in the hotel industry are very important. The selection of the staff depends
upon the education provided and enhanced in an able way to product these things in
such a way that these cannot be traumatised and bullied to halter the work of the hotel
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

CHAPTER 2
EVOLVING TECHNOLOGIES IN THE DEVELOPMENT OF OPERATIONAL
SYSTEMS IN TRAVEL, TOURISM AND HOSPITALITY
OBJECTIVES:
1. Understand the role of evolving technologies in the development of operational
system in travel, tourism and hospitality;
2. Discuss the role of ICT in TTH operation.
3. Discuss the changes to businesses and their consumers caused by
technological change in TTH;
4. Explain the main characteristics of services
5. Discuss the implications of these characteristics for a range of TTH operations.
__________________________________________________ __________________________
Introduction
Information communication technologies (ICTs) have been transforming tourism
globally. The ICT driven re-engineering has gradually generated a new paradigmshift,
altering the industry structure and developing a whole range of opportunities and
threats. ICTs empower consumers to identify, customize and purchase tourism products
and support the globalization of the industry by providing tools for developing, managing
and distributing offerings worldwide. Increasingly ICTs play a critical role for the
competitiveness of tourism organizations and destinations. ICTs are becoming a key
determinant of organizational competitiveness. The enhancements in ICTs’ capabilities,
in combination with the decrease of the size of equipment and ICTs’ costs, improved the
reliability, compatibility and interconnectivity of numerous terminals and applications.
ICTs provide a powerful tool that can bring advantages in promoting and strengthening
the tourism industry’s strategy and operations.
Scenario of Global Tourism Industry
Compared to other sectors of the global economy, the tourism industry is one of
the fastest growing, accounting for mor e than one third of the total global services
trade. International tourist arrivals have grown by 4.3% between 1995 and 2008. In
recent years, air transport has increased more than surface transport and the expansion
of low-cost air travel has greatly altered the industry in many regions. Figure 1 provides
statistics to demonstrate the visitor objectives characterizing inbound tourism in 2011.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

Trends in Tourism Industry
Demand for international tourism maintained momentum in 2011. International
tourist arrivals grew by 4.6% to reach 983 million worldwide, up from 940 million in
2010. Europe, which accounts for over half of all international tourist arrivals worldwide,
was the fastest-growing region, both in relative terms (+6% tied with Asia and the
Pacific) and absolute terms 929 million more visitors). The Middle East (-8%) and North
Africa (-9%) were the only (sub)regions to record a decline in arrivals, due to the Arab
spring and political transitions in the region. International tourism receipts for 2011 are
estimated at US$ 1,030 billion worldwide, up from US$ 928 billion in 2010 (+3.9% in real
terms), setting new records in most destinations despite economic challenges in many
source markets.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

According to monthly and quarterly data for 2012 included in the UNWTO World
Tourism Barometer, international tourist arrivals worldwide grew at a rate of 5% in the
first four months of 2012, consolidating the growth trend that started in 2010. Forecasts
prepared by UNWTO in January 2012 point to growth of 3% to 4% in international
tourist arrivals for the full year 2012. Over the past six decades, tourism has
experienced continued expansion and diversification, becoming one of the largest and
fastest- growing economic sectors in the world. Many new destinations have emerged,
challenging the traditional ones of Europe and North America. Despite occasional
shocks, international tourist arrivals have shown virtually uninterrupted growth – from
277 million in 1980 to 528 million in 1995, and 983 million 2011. According to Tourism
Towards 2030, UNWTO’s recently updated, long term outlook and assessment of future
tourism trends, the number of tourist arrivals worldwide is expected to increase by 3.3%
a year on average from 2010 to 2030. This represents some 43 million more
international tourist arrivals every year reaching a total of 1.8 million arrivals by 2030.
The Role of ICT in Tourism
Effective and high-speed ICT infrastructure and software applications in the
tourism and hospitality industry are crucial for tourism development. ICTs allow
customer - management relations and supply chain management to be combined into a
single source that facilitates a variety of operations - product selection, ordering,
fulfillment, tracking, payment and reporting to be performed with one easy-to use tool.
ICTs ultimately cut costs by enabling the provider to be in direct contact with the
consumer and also impact employment through the need for required maintenance of
ICT equipment. Management within tourism companies use ICTs to undertake a range
of tasks that enhance the efficiency of employees in the workplace, notably online
reservations. The development of ICTs has also led to changes in demand and supply.
A higher demand for flexible, individualized options and quality of information has
personalized leisure and tourism behavior, a consequence of increased ICT use.
Through new technology and social and economic ratings (e.g., social media platforms
like Facebook, Twitter, blogs) customers have the ability to share information and
research ratings on destination, quality of service in hotels and restaurants and
environmental and social conditions. Number of hotels (e.g., Marriot Hotels and
Resorts, Ritz Carlton Hotels, Hyatt Hotels and Resorts) have strengthened their brand
image and communicate directly with their customers by posting links to a press release
or promoting new package through Twitter.
E-Tourism - Demand and Technology-driven Revolution
The Internet revolutionizes flexibility in both consumer choice and service
delivery processes. Customers have become much more sophisticated and discerning.
This is because they have experienced high levels of service and because the standard
of living has grown considerably. As a result, tourists have become more demanding,
requesting high-quality products and value for their money and, perhaps more
importantly, value for time. This reflects people’s shortage of time. Having been exposed
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

to several tourism products and destinations, experienced, sophisticated; demanding
travelers rely heavily on electronic media to obtain information about destinations, as
well as to be able to communicate their needs and wishes to suppliers rapidly.
E-Tourism Impacts on Marketing Mix
ICTs provide unique opportunities for innovative organizations to redesign
tourism products to address individual needs and to satisfy consumer wants. ICTs have
also become part of the core product, especially for business travelers who now expect
certain facilities to be available during their trip. The internet and the World Wide Web
have revolutionized the promotion and communication functions of tourism. ICTs can
reduce commission costs. Expedia, eBookers, to emerge and gain a significant market
share, propelling a reintermediation in the distribution channel.
E-Airlines
In 1962, American Airlines introduced its SABRE Computerized Reservations
Systems (CRS) to in the place of manual reservations on display boards where
passengers were listed and travel agencies had to locate the best routes and fares for
their customers in a manual and then telephone for availability, reservation and
confirmation before issuing a ticket manually. The lodging industry is the most under-
automated segment of the international travel industry. Property Management Systems
(PMSs) were introduced to facilitate the front office, sales, planning and operation
functions. This was achieved by administering a database with all reservations, rates,
occupancy and cancellations, thus managing the hotel inventory. Hospitality
organizations increasingly use computerized systems to improve their inventory
management, communicate with their interaction with consumers and reduce some of
their operational costs.
E-Hospitality
ICTs have penetrated hospitality management at a fast pace, integrating the hotel
operations, reshaping the marketing function, improving total efficiency, providing tools
for marketing research and partnership building, and enhancing customer services,
while also providing strategic opportunities. In addition, consumers increasingly expect
ICT facilities in their rooms; internet access via the television set and data ports have
become standard for higher hotel categories. The Internet has improved the hotel
representation and reservation processes dramatically. Bookings through the web is
particularly convenient for customers who frequent the hotel as that provides an efficient
and effective communication mechanism. The greater the capacity, number of
departments, transactions, arrivals, departures and reservations, the greater the need
for technologies to facilitate the processes. Further integration between PMSs and Hotel
CRSs can improve efficiency, facilitate control, reduce personnel and minimize the
response time to both customers and management requests.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

E-Tour Operators
Tour operators need constantly to interact with all their partners, including
accommodation and transportation principals, ICTs are also critical for the distribution of
tour operators’ packages. The introduction of the Internet, Intranets and Extranets as
strategic tools has as strategic tool has a number of benefits for tour operators. The co-
ordination and exchange of timely information is important because it allows tour
operators to co-ordinate activities, to resolve potential problems and to ensure that
customer requirements are communicated to all principals delivering the tourism
product. Strategically, ICTs play a critical role for tour operators. For example, Kuoni
allows consumers to alter their tourism package online and to build their own itinerary
by making it possible to extend the trip, change accommodation, meal plans and add
value – added services such as car rentals, scuba-driving lessons.
However, it is quite evident that tour operators will need to shift their focus from
the information provision and the reservation mechanism to a strategic role of adding
value to the product and the process. Tour operators will therefore need to re-assess
their core values and identify specific market segments that they can satisfy in the
future.
E-Travel agencies
ICTs have introduced major improvements in the internal organization of travel
agencies. By integrating their back-office (e.g., accounting, commission monitoring, and
personnel) and front Office (customers’ history, itinerary development, ticketing and
communication with suppliers) functions, travel agencies have achieved significant
synergies, efficiencies and cost savings. As transactions made in branch offices can
automatically be reported back to the head office, tighter financial control can be
achieved. In addition, transactions provide invaluable marketing research data, which
can almost instantly report market movements and aid tactical decisions. At the
individual level, CRM systems support agencies in tracking the activity of their efficiency,
control and competitiveness. Storing information in data warehouse can also help them
to develop proactive marketing tools in order to target individual customers with
specialized products, thereby increasing the value added services offered to each
customer, and to defend themselves against disintermediation. Hence, agencies need
to utilize updated ICT on par with the suppliers and customers usage
E-Destinations
Destination management System (DMS) have been used to integrate the entire
tourism supply at the destination. Their contribution to strategic management and
marketing is demonstrated by their ability to integrate all stakeholders at destinations
and to reach global market.DMS offering innovative information and sometimes
facilitating reservations. Destination Integrated Computerized Information Reservation
Management Systems (DICIRMS) address entire range of needs and services required
by both tourism enterprise and consumers for specific destinations. DICRIMS provide
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

the infostructure for communications and business processes between all stake holders,
including consumers, principals, distributors and destination marketing organizations.
NEED FOR THE STUDY
The tourism industry in India is in growth stage and has a high potentiality to
grow and equipped with the number of tourist destinations to attract domestic and
international tourists. After emergence of low cost aircraft services, India has more
growth potential. However, the satisfaction level of the tourist is not high in terms of ICT
in India. The UNWTO has ranked tourism industry in India at 61st position as a matter of
competitiveness. The number of inbound tourists reached one billion in 2012. Therefore,
Indian tourism has strengthen to prepare to attract maximum number of domestic and
international tourists. In this study, the ICT plays a vital role in promoting, integrating and
building brand loyalty in Indian tourism. Government, entrepreneurs, management and
employees in tourism and hospitality industry are the major contributors for the
development of tourism. Hence, there is a need to study the ICT role and its
implementation to increase the profitability of Indian tourism industry
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

CHAPTER 3
TYPES OF SERVICES and IMPORTANCE OF CUSTOMER’S
FEEDBACK
Objectives:
1. Understand the key features of services and their implications for
operations in travel, tourism and hospitality;
2. Understand the role of customer feedback in enhancing services and
operations in travel, tourism and hospitality.
___________________________________________________ _________________
____________
Types of services
Understanding these 5 different types of service, their individual benefits and
challenges helps decide which one to use for your restaurant.
1. Waiter service
More commonly known as sit-down service, a waiter takes care of everything
from taking orders to serving food and payment.
Benefits
∙ Service is more personalised as diners are served directly.
∙ Special requests can be more easily accommodated compared to
other services. Challenges
∙ Requires skilled service staff because the waiter has to remember orders, service
protocols and serve promptly.
∙ More prone to mistakes as miscommunication with the kitchen can lead to wrong
orders being served to guests.
2. Chinese banquet service
Another form of waiter service where each waiter takes care of a table or group of
tables with 10-12 guests. Dishes are usually communal and shared.
Benefits
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

∙ Guests feel more relaxed because of the communal sharing dishes.
∙ Food served is usually pre-ordered so the waiters don’t have to worry about
taking orders. Challenges
∙ Requires a big number of skilled staff because different tables have to be served at
the same time. ∙ Coordination with the kitchen is key as all the food has to be served
fresh at the same time.
3. Buffet service
In a buffet service, guests can choose their food from a wider selection made
available on the buffet line. There are 4 common types of buffet service:
∙ Simple Buffet – Guests get food from a buffet line and waiters move around to clear
tables and help guests with minor requests.
∙ Station-type buffet – Waiters serve the beverages while guests get the other dishes
from the buffet line.
∙ Modified deluxe buffet – Tables are set with cutlery; waiters serve the beverages,
coffee and dessert while guests get the other dishes from the buffet line.
∙ Deluxe buffet – Waiters serve appetisers, soup and/or salads and beverages.
Guests take the other dishes from the buffet line.
Benefits
∙ Buffet tables are easy to prepare.
∙ Waiters focus only on serving a few dishes and clearing tables.
Challenges
∙ Last minute special requests can be challenging because of time and resource
constraints. ∙ This service can make diners feel alienated as waiters only clear plates
and have little interactions with them.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

4. Self-service
Diners place, pay and pick up their orders at a counter similar to fast
casual and fast food establishments.
Benefits
∙ Waiters only need to stay behind the station counter to take orders.
∙ Waiters do not have to go around the restaurant as food is self-serviced.
Challenges
∙ Diners expect quick service so food must either be prepared promptly
or pre-prepared. ∙ Rush hours can be tiring and stressful because there
may be queues.
5. Semi-self service
Similar to self-service, diners order and pay for their orders at the counter but their
food is served to them when ready.
Benefits
∙ Waiters only need to stay at the counter to take orders and receive payment. ∙
Services have an easier time delivering orders because diners are identified via a
number system.
Challenges
∙ Food has to be prepared promptly as quick service is expected.
∙ Rush hours can be tiring and even more challenging when a long line forms and
guests expect quick service.
Finding the right service for your restaurant
With all the different types of service available, finding the right one for your
restaurant can create a more enjoyable experience for your diners. Here are 4
common types of restaurants and the types of matching services:
1. High-end restaurant – Waiter service
2. Casual dining restaurant – Waiter service/semi-self-service/self-service
3. Fast food – Self-service/semi-self service
4. Café – Self-service
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

NATURE OF SERVICES - DEFINITION
∙ All services are essentially intangibles. The sale of a service does not give you an
ownership of physical product. As we now know the definition of a service, let’s
move on and understand the nature of services
∙ Intangibility is the basic nature of services.
∙ Services need to be made or provided again and again. They are generally
inconsistent because different customers have different expectation.
∙ The production and consumption of services is inseparable. For example, ATMs may
replace the banking manager for the front office activities like cash withdrawal and
cheque deposit. But, at the same time, the presence of the customer, is required and
his/her interaction with the process has to be managed.
∙ Services cannot be stored. Basically, you cannot have an inventory of services. There
might be goods that could be stored associated to the service, but the service itself
will not be stored as it is intangible.
∙ The major difference between a good and a service is that a good is produced whereas
a service is performed.
TYPES OF SERVICES - DEFINITION
1. Services are diversified in three groups; Business services, social services and
personal services. 2. Business services are the services used by businesses to conduct
their business activities. This could banking, insurance, transportation, etc. Today,
businesses are relying on specialised business services more than ever.
3. Social services are the services provided by NGO's to pursue a certain set of
social goals. 4. Personal services, is a service wherein every customer will have
a different need. Examples of personal services would be tourism, recreational
services and restaurants.
MEANING OF SERVICES - DEFINITION
∙ Services are essentially intangibles. Their purchase does not result in the
ownership of anything physical. For example, you can only seek advice from the
doctor, you cannot purchase him. ∙ Services are all those economic activities that are
intangible and imply an interaction to be realized between the service provider and
the consumer.
∙ Services are the separately identifiable, essentially intangible activities that provides
satisfaction of wants, and are not necessarily linked to the sale of a product or
another service.
DIFFERENCE BETWEEN SERVICES AND GOODS
Basis Services Goods
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

BUSINESS SERVICES - DEFINITION
∙ Business services are the services used by businesses to conduct their
business activities. For example, banking, insurance, transportation,
warehousing and communication services. ∙ Today, businesses are relying on
specialized business services more than ever.
SOCIAL SERVICES - DEFINITION
∙ Social services are those services that are generally provided voluntarily in pursuit of
certain social goals.
∙ These social goals may be to improve the standard of living for weaker sections of
society, to provide educational services to their children, or to provide health care and
hygienic conditions in slum areas. ∙ These services are usually provided voluntarily but
for some consideration to cover their costs. For example, health care and education
services provided by certain Non-government organisations (NGOs) and government
agencies .
PERSONAL SERVICES - DEFINITION
∙ Personal services are those services which are experienced differently by
different customers. ∙ These services cannot be consistent in nature.
∙ They will differ depending upon the service provider.
∙ They will also depend upon customers preferences and demands. For
example, tourism, recreational services, restaurants.
AN INTRODUCTION TO THE GATS - DEFINITION
The agreement on trade in services reached in the Uruguay Round is perhaps the
most important single development in the multilateral trading system. The new
General Agreement on Trade in Services (GATS) for the first time framed
internationally agreed rules and commitments, broadly comparable with those of the
General Agreement on Tarrif and Trade (GATT). The most important element of
GATS is the classification of services used in making commitments. The GATS
schedule largely follows a classification, which identifies 11 basic service
sectors(plus a twelfth category for miscellaneous services). These sectors are
subdivided into some 160 sub sectors or separate service activities. As an example,
the tourism category breaks down into sub sectors for hotel and
restaurants.
The twelve sectors are:
1. Business services (including professional and computer)
2. Communication services
3. Construction and related engineering services
4. Distribution services
5. Educational services
6. Environmental services
7. Financial services (Insurance and Banking)
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

8. Health related and social services
9. Tourism and travel related services
10. Recreational, cultural and sporting services
11. Transport services and
12. Other services not included elsewhere
ROLE OF SERVICES IN AN ECONOMY - DEFINITION
∙ The services sector including power, telecom and transport account for 60-65
per cent of the economy in most OECD (Organisation for Economic
Cooperation and Development) countries. ∙ Sustained, high and broad-based
growth is essential for economic development and poverty alleviation.
∙ As with any growing economy the sectoral composition of GDP has been changing
with the services showing an increased share of above 50 per cent and that of
agriculture declining to 25 per cent. ∙ Nearly 70 per cent of the labour force in
developed economies is employed in the services sector.
LESSON 2: CUSTOMER’S FEEDBACK
WHY CUSTOMER’S FEEDBACK IS IMPORTANT
When you think about collecting customer feedback, it’s easy to get overwhelmed by
the sheer volume of possibilities. With so many customers — and so many ways to
connect with their feedback — it’s hard to know where to start.
One thing is clear though: taking a proactive approach to collecting customer
feedback ensures you never stray too far from the needs of your community,
even as those needs evolve.
Feedback is a powerful guide that can give your leadership team insights that chart
a path forward for every part of a company — from product through UX and
customer support. That’s especially important when it comes to customer
satisfaction.
What is customer feedback?
Customer feedback is the information, insights, issues, and input shared by your
community about their experiences with your company, product, or services. This
feedback guides improvements of the customer experience and can empower
positive change in any business — even (and especially) when it’s negative.
Why is customer feedback important?
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

Customer feedback is important because it serves as a guiding resource for the
growth of your company. Don’t you want to know what you’re getting right — and
wrong — as a business in the eyes of your customers?
Within the good and the bad, you can find gems that make it easier to adjust and
adapt the customer experience over time. In short, feedback is the way to keep
your community at the heart of everything you do.
The 7 most effective customer feedback methods
Before you begin collecting feedback from customers, you need to pinpoint why
you’re seeking their input. Identifying your desired outcomes and outlining the
process for getting there sets the groundwork for a worthwhile investment of your
time — and your customers’ time. Without a clear intention, your feedback may
not serve anyone.
Customer Feedback Methods:
1. Customer feedback surveys
2. Email and customer contact forms
3. Usability tests
4. Exploratory customer interviews
5. Social media
6. On-site activity (via analytics)
7. Instant feedback from your website
1. Customer feedback surveys
Developing a useful customer survey may be more challenging than you think.
There are a ton of questions you could ask customers. The good news: you can
choose between short slider surveys (which help you target specific issues) that
pop up on your site or longer, traditional surveys.
For one-question surveys, you can use a tool like Qualaroo to gauge the response
of customers who are already active on your website.
For longer-form surveys, there are a ton of options. SurveyKing offers a free
platform for small businesses that’s just starting to explore the power of
feedback. Survey Gizmo adapts to everyone from solopreneurs up to larger
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

organizations, and at the enterprise level, Qualtrics yields dynamic,
sophisticated insights.
If you want customers to follow through on completing a survey, make sure you
follow some simple best practices.
∙ Only ask questions that help you meet your goals.
∙ Write thoughtful open-ended questions.
∙ Create consistent rating scales.
∙ Avoid leading or loaded questions.
2. Email and customer contact forms
Email is one of the easiest ways to gather candid customer feedback. Because it’s
a support channel for most companies, you can use each interaction as an
opportunity to gather feedback. To maximize the likelihood of hearing back from a
customer, do these three things:
Set clear expectations
Sometimes, customers don’t offer important feedback because they don’t think
anyone cares. Is it any wonder most companies don’t hear from unhappy
customers? Many of those same customers may be willing to leave feedback if they
knew they’d hear back — and exactly when to expect a response.
Consider adding a short sentence to your emails that tells people how soon they
can anticipate hearing back from you. “We’ll get back to within X hours/days” will
go a long way to set expectations and build trust with your community.
Organize email feedback
At Help Scout, we use Trello to create “boards” your whole team can access and
contribute to with great customer feedback. It’s a clear process ensuring that no
helpful insights slip through the cracks. We already have a more detailed post
about creating a strong workflow for managing feedback, but here’s the gist:
∙ Create boards within Trello titled “Product Ideas” (feature requests), “Up Next” (what’s
being worked on) and “Roadmap” (what you plan to work on).
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

∙ Build individual cards within each board to categorize requests. For our Product Ideas
board, we use sections like “Inbox” (new ideas), “Rejected” (discarded ideas),
“Someday/Maybe” (good ideas, but not urgent), and “Apps” (integration requests).
∙ Add email addresses within cards for the people who requested the idea. For instance,
anyone who asked us for Reports upgrades will be added to a list within a card so
that they can be notified when the upgrade is complete. Here’s an example card
(with emails blocked out for privacy):
This system enables you to keep tabs on requests and their requestors, as
well as ideas you’ve already passed on. The process also gives employees a
clear roadmap to guide future customer interactions.
Send personalized responses
The best way to get a candid response from a customer is to simply ask for one.
Since email enables you to send a one-to-one request, you can ask for more
personal feedback than in a survey.
When customers sign up for more information about your services, for example,
you can send out an auto-responder email asking a single question. Inquire into
the issues that customers are struggling with most, what features they would love
to see, or just ask why they signed up!
The trick is to make sure you team has a set process for replying to these
emails; otherwise, your customers will feel let down.
You can also use a help desk to transform every email into an opportunity to tune
into customer feedback with happiness ratings. When your customers rate a
reply from Help Scout, they can also add extra comments:
3. Usability tests
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

For usability testing to bring deep insights to your company, it requires more upfront
planning. With a clear strategy, though, you can uncover challenges that customers
don’t know they’re facing and actionable insights that make their experiences
better. You may even want to consider rewarding your user research participants
the way Google does.
At Help Scout, we leverage usability testing to refine design details or new features.
When we’re 90% finished with the updates, these tests guarantee we get that last
10% right. When our team prepared to launch major improvements to our Beacon
product, they opened Beacon 2.0 to a small number of
beta participants based on their current implementation of Beacon 1.0. We
transformed their feedback into product adjustments that improved the product
before we rolled it out to everyone.
Even though most of us associate user testing with web-based products, the
fundamentals apply to any business. Let’s say you run a gym. Offer a customer
a free month to visit your gym three to five
days a week and keep a diary about their experiences. Learning about the
business from their perspective uncovers small tweaks that make a huge
difference to the customer experience.
4. Exploratory customer interviews
Does direct outreach translate to beneficial feedback from customers?
Absolutely! Reaching out to customers directly opens up conversations that
otherwise wouldn’t happen.
Qualitative stories from customers bring color and nuance to quantitative feedback
(data). These personal experiences help a team understand the feelings behind
customer decisions and the community response to a company’s brand or
decisions. When you conduct customer interviews, you create the opportunity to
challenge false assumptions that developed over time.
Keep the following tips in mind when you sit down to talk to customers:
∙ Start an open-ended dialogue. When you’re talking to customers, open-ended questions
are your best friend. These queries give your customers the flexibility to dig into their
experiences with more detail. Plus, they’re less likely to be biased or leading
questions.
∙ Get more specific as you go. Begin the conversation with wider impressions and get
more detailed in your questions as the dialogue evolves. Every piece of feedback
they give you is an opportunity for another more specific follow-up.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

∙ Practice active listening. To receive insights that can help your team, you need to be open
and receptive. Maintain eye contact and mirror back the key takeaways you’re hearing
from clients, always keeping the spotlight on them.
5. Social media
Social listening can give you access to an otherwise untapped reservoir of candid
feedback from customers. Direct comments or mentions on social networks aren’t
the only way for your business to collect customer feedback either — many
networks include built-in polling tools. Look at this quick poll on Instagram:
The Dogist Shop created an “Ask us any questions about our holiday lines” survey
on Instagram stories. A customer asked The Dogist Shop on Instagram if they
planned on making ornaments of the team’s dogs this year.
Not only could the team clarify the answer to the entire community, but Dogist
also asked the community if they wanted ornaments next year in a one-question
Instagram poll. This kind of natural engagement ensures that their team’s product
decisions align with the purchasing behaviors of their community.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155

6. On-site activity (via analytics)
Analytics reveal what customers don’t know about how they use your product.
Especially if you sell a digital product or service, you benefit from leveraging
analytics to understand how users interact with your company. For example, if you
offer self-service content as a form of customer service, you could see the number
of people visiting each article.
If one article has an 0:09 average time on page and an awful bounce rate, you
know something isn’t sticking about your messaging. Reporting tools like like
Help Scout’s Docs Report give you insights about failed searches, most
frequently visited pages, and so on so you can improve your customer’s self-
service experience.
7. Instant feedback from your website
With an embeddable on-site widget like Beacon, you can collect instant
customer feedback without asking the customer any questions.
At Help Scout, for example, we pulled nine articles into a webpage that could be
valuable to potential customers on the page. Instead of asking customers which
articles they preferred, Beacon collected the data on the most popular articles. If
none of the articles helped, the customer could email the team — and that’s
valuable information, too.
Collecting customer feedback is crucial
Customers can transform every aspect of your company for the better if you listen
to their feedback. Think about your most pressing goals and start with one clear,
simple method for collecting customer feedback before expanding out to more
complex tactics like usability testing and analytics.
Customer support channels are the ideal place to begin — your support team brings
more value when they approach every interaction as an opportunity to collect
quantitative and qualitative feedback on real experiences with your company.
Downloaded by Rogemer Ojendras ([email protected])
lOMoARcPSD|2449155
Tags