BRCM College of Business Administration Assignment-2012 Service Management Topic: Services in a Hotel Industry Group no: 16 Class: TYBBA

SEM-V Name Priyanka Bhutani Komal Batra Jinal Jain Roll no 11 55 61 Division 1 1 1

Submitted to: Mr. Jayesh Desai Submitted on: 28/9/2012

Services practiced in a hotel industry

1. General Management Discover the secret of the successful GM: always think and act two steps ahead. Visionary thinking, motivating your team, pampering your Guests, keeping in touch with third parties, searching for improvements, and ensuring a secure and safe environment for Guests, employees and third parties. 2. Rooms Division Besides a good night's rest, modern Guests demand more to improve the convenience of their stay. 3. Food & Beverage Generating extra sales, controlling and reducing labor expenses, exceeding the expectations of the Guest and providing healthy lunches and meals are core values representing a good service. The value of cooperation between various departments can be explored in order to maximize added value. You can make your team a winning team by optimizing teamwork within F & B outlets. Use of our knowledge by implementing the best practices in the organization. 4. Front Office The front-office forms the entrance to the hotel and all its services. The impact made by a first impression is extremely important to the rest of the stay. Guests arriving in different states of mind need assistance in having a pleasant stay and in checking-out after their stay. Hoteliers regard the front-office as the heart of the hotel. All kinds of new services play an important role in our Front-office section. 5. Guest Relations 'Feel comfortable, feel at home. Tell me what I can do for you.' These are issues for Guests and for you. Great contact with your Guests is essential in order to create a unique experience. Every Guest has his/her own wishes, and only a personal approach will make a difference. Your role

will be essential in exceeding the expectations of your hotel Guests. Ask what Guests want and give them attention. That's what they expect and that's what makes your job unique. 6. Marketing As a marketing executive, you focus your activities on the longer term. How are we currently positioning the hotel, what are the future possibilities, yield management, long term planning, price policy and promotions of all the products and services, choosing the right distribution and promotion channels etc. 7. Human Resources Although all managers should be people managers, the Human Resources Manager should be the best people manager. The right person in the right place. As Human Resources executive you are responsible for providing the hotel with suitable, motivated and skilled management professionals and staff, so that the hotel's targets can be realized and exceeded. Besides this, management professionals and staff need to stay motivated and dedicated in order to run the business effectively. Objectives such as competence management, review management, motivation tools, staff remuneration, productivity, and reduction of sick leave - all these topics should be the prime concern. 8. Sales Sell the hotel, optimize occupancy and room rates, promote and (cross)sell all offered products and services. In brief, this will be your task as sales manager or sales executive. Strive to meet and even exceed targets in collaboration with, or as part of, the marketing department. 9. Maintenance There is no hotel that can function without people who maintain the premise, the building and all the installation used by various departments. As maintenance executive your daily tasks will vary from planning, investigating, making decisions, negotiating with third parties,communicating with departmental colleagues, motivating staff etc. Subjects as preventative maintenance management, motivating elements planning tools and energy saving issues, ROI items are also issues to be considered.

10. Finance & Control As financial expert, you assist management professionals in running the business via the most beneficial economic and financial approaches. In most cases, you play the role of 'devil's advocate' at management team meetings and budget meetings. Budgeting, forecasting, and controlling. 11. Security & Safety To provide a safe and secure environment for Guests, management, staff and all other parties who visit or contact the hotel. This important task will be your duty or responsibility if you are interested in this section. The importance of security has been highlighted considerably in the last decade. Threats from outside or inside the company plays an important role in the recent world. 12. Quality & Services The element Quality in Hospitality Management is very important. Consumption of hotel services is pretty much simultaneous with their production. This makes the quality measurements difficult but also essential. Quality: the never-ending story. 13. Organizational Development The structure of every organization is extremely important, e.g. the right man in the right place. But to get the best results from your organization, culture is even more important. If you allow your management to grow, the organization will follow. 14. Purchasing 'Value for money', 'Just in Time', 'optimal term contracting', 'service level agreement'. These are items which are important when it comes to purchasing. 15. Innovation Without innovation no business. Discover how new products and service can excel your business.

16. Personal growth & success The well-being of people is one of the essential factors to personal growth, together with a positive attitude and a willingness to learn.

Characteristics of services in hotel industry

1. Service is an experience for the customer :

The interaction between the customer and the service provider will leave an impression on the customer. The effect of the interaction between the service provider and the customer will either enhance or detract from the customers satisfaction of the tangible product.

2. Service is a performance by an employee or product :

An employee, the product, or a mechanical device can provide the service transaction to the customer and because the service is intangible it can be transmitted in multiple ways. The lack of consideration of the customers perspective will often lead to a less than satisfactory outcome.

3. When service is delivered, the guest and service provider is both part of the transaction: Services purchased by customers often involve the interaction between the service provider and the customer. Typically, the transaction requires the customer to be a participant in the experience.

4.

Service quality is

difficult

to

control

and

evaluate:

Often the service transaction occurs without close supervision thus making it difficult to control the service providers actions. Since there are no physical remains of the service once it has been delivered, evaluating its quality requires receiving feedback from the customer. To ensure that the service is consistent requires a service commitment from the organization that includes consistent service training for employees as well as continual feedback from customers.

5. The customer and the organization often measure quality of service differently: Consumers often view service quality as the effectiveness of the service, whereas organizations view service quality as the efficiency with which it is produced. Consumers value reliability, responsiveness, assurance, and empathy of the services being delivered. Organizations look for productivity, costs, and consistency. Often the method of evaluating quality of services between the consumer and the organization are not congruent. 6. When service is delivered, there can be no recall of the guests experience: there is an aspect of time that is associated with the delivery of service. Additionally, since service is the intangible part of the organizations output there are no opportunities for the organization to recall and evaluate the quality of the service delivered. This requires management to develop service providers that have the ability to deliver service consistently under different and changing environments.

7. Estimating the cost of service delivery is difficult: Unlike the production of tangible goods, it is difficult for hospitality organizations to quantify specific costs associated to the delivery of services. This is because the delivery of services often spans a variety of tangible products being offered concurrently. This challenge is exacerbated by the nominal expense of selling an additional unit of service and the extreme variability of demand.

8. Excess production of service cannot be placed in inventory: Economies of scale cannot be realized in the production of services. Since demand fluctuates and production cannot be stockpiled, hospitality service providers are not able to take advantage of consistent and steady production that result in a cost reduction associated with the manufacturing of tangible products.

9. Service delivery and demand can be individually customized: Since service production and consumption are simultaneous, hospitality organizations have great latitude to customize the service being delivered. Offering varying levels and types of services to the consumer can lead to a better match of their needs while increasing

opportunities to raise revenue potential.

10. Successful service delivery can be achieved with different viewpoints: The management of the service philosophy within hospitality can be structured as a series of tasks that must be delivered without variation or as a strategy that is expected to focus on the customers need and will vary between customers and service providers.

11. Service as a task: The delivery of service is viewed as a series of tasks that can be scripted and given to the employees through training. In this viewpoint of service, employees are assumed to always follow the delivery of service in a consistent manner. The rationale for this approach is to eliminate opportunities for variation among the service providers and offer ease in evaluating employee performance.

12. Service as a strategy: Organizations who adopt this viewpoint are less concerned that employees follow a scripted pattern of the delivery of the service. Rather, employees are hired because of their abilities and personalities, and are empowered to provide service that meets the needs and expectations of the customer. It is expected that the service delivery may vary within and among employees. Empowering employees to make the right decisions will lead to service that meets or exceeds the needs and expectations of customers.

13. Service is often provided as a value added to a physical product: In most hospitality products the services are provided to customers as an added value or incentive to purchase the physical product. Receiving the service provided in a restaurant, on an airplane, renting a car would have no value if they did not accompany a meal, the airplane or automobile respectively.

14. Service has an aspect of time: Often, the delivery of service adds value to the physical product as noted above, and therefore, service must be delivered at the time and speed that is appropriate to the

consumption or delivery of the physical product. However, hospitality organizations can add value to the service proposition by varying the time the service is available so that it better meets the needs of the customer, such as restaurants having extended hours or brunches during weekends and holidays.

15. When purchasing services there is limited or no ownership: When purchasing services from a hospitality organization, the purchaser has limited or no ownership of the service provided. Once the service transaction is complete, there is little or no ability to enjoy the use of the service again in the future. Managing the service delivery in any hospitality organization is difficult but often proves to be the only sustainable competitive advantage available to the business in a hyper-competitive marketplace. Failure to understand these characteristics of service will lead to a failure to recognize and meet the needs of the consumer.

Skills required 1. Team Leadership Skills The ability to lead others is a necessary factor for a successful hotel industry employee. In many instances, employees must work with others to best meet the needs of their customers. 2. Multitasking Skills The ability to do more than one thing at once is vital in the hotel industry. Often an employee is required to take orders, settle payments and problem solve simultaneously. 3. Problem-Solving Skills A hotel management employee needs to be able to solve a multitude of problems, both typical and unusual. They must be able to be able to meet the needs of their guests any way they can, while still adhering to company guidelines.

Key factors in success of hotel industry 1. Customer Service Customer service is an integral part of the hotel experience. Clayton Barrows, author of "Introduction to Management in the Hospitality Industry," explains how the front-desk worker serves as the gatekeeper of the hotel. This employee provides the customer's first and last impression. Thus, hotels achieve a critical success factor by ensuring the staff is knowledgeable, courteous and capable of resolving any conflicts that arise. Providing quality service also entails remembering the names and preferences of repeat visitors and giving advice about attractions and surroundings. 2. Advertising Successful hotels target specific consumers and will cater their prices, amenities and advertising strategies to this group. For example, some hotels advertise as an ideal location for business travellers by giving corporate discounts. This type of hotel also promotes itself as a venue for business meetings, displaying its on-site conference rooms in magazines aimed at executives. Robert D. Reid, author of "Hospitality and Marketing Management," advises hotels to veer away from generic descriptions such as "luxurious rooms" and "bargain price." Instead, Reid recommends commenting on the specifics of the dcor or customer service. For example, an ad for a hotel in Hawaii may show an image of its best-selling tropical drink. 3. Cost Control Managing costs is a critical factor in a hotel's success. Most hotels vary their rates according to high and low seasons. Additionally, the establishment of a loyalty program enables hotels to lower rates for repeat guests while charging different rates for others. One of the ways hotels plan is through reservations programs that forecast demand beyond 90 days. Michael J. O'Fallon, author of "Hotel Management and Operations," explains how computer programs also enable managers to identify the customers most willing to spend money and on which items. From this knowledge, the manager can advertise directly to the person before arrival by offering packages, upgrades and other incentives. Successful hotels also balance the cost of workers' wages, food and beverages, and electricity and maintenance with profits deriving from booked rooms, amenities, gift shops and food and beverages.

4. Product Differentiation Hotels thrive by offering guests a unique experience. This uniqueness may stem from the location: A rural hotel in the heart of the Tuscan countryside may offer Italian cooking classes, whereas a boutique hotel in Morocco might offer a hookah lounge. Other times, the differentiation is within the hotel itself. Hotels in Las Vegas, for instance, thrive by providing specific services that cater to the theme of the hotel, such as a Camelot theme or a Grecian dcor.

Classification of hotel industry A. Type of hotel 1. Budget hotel 2. Business hotel 3. Luxury hotel B. On the basis of nature 1. Residential 2. Resort 3. Commercial 4. International 5. floating C. On the basis of standard and control 1. Approved 2. Unapproved

D. On the basis of star rating

7 STARS 6 STARS

5 STAR DELUX
5 STAR 4 STAR 3 STAR 2 STAR

HERITAGE HOTELS

E. On the basis of hotel user:

Domestic
Educationists Sportsmen Medical representatives Trade representatives Officials Pilgrims Students

Foreign
Film stars

Cultural representatives
Sportsmen Educationists Political representatives Trade representatives Pilgrims

Hotel Marketing in Indian Environment Hotel business is at an infant stage The hotel industry needs to revamp the product mix Users of the services expect economy and sellers look to cost + profit The promotional strategies are also required to be restructured Requires increased governmental support The main way for the development of this industry is to encourage tourism

Marketing Mix

PHYSICAL EVIDENCE PROMOTION

PRODUCT

PEOPLE

PROCESS PLACE PRICE

PRODUCT

CORE BASIC EXPECTED

AUGMENTED
POTENTIAL

PRICE

Demand based

Competition based

Differential pricing

PRICING STRATEGIES

TACTICAL DISCOUNTS

SEASONAL DISCOUNTS

TRADE DISCOUNTS

SPECIAL DISCOUNTS

PLACE

Distribution Chain

0 level

1 level

2 level

3 level

4 level

PROMOTION

ADVERTISING

SALES PROMOTION

WORD OF MOUTH PROMOTION

PUBLICITY AND PUBLIC RELATIONS

PERSONAL SELLING

PEOPLE First impression is the last impression PROCESS It includes the flow and progress of the production process. E.g. the service of providing a meal at the fine dining restaurant of the hotel. PHYSICAL EVIDENCE It addresses the tangible components of the service experience. The services cape includes the ambience, the background music, and the comfort of seating and the physical layout of a service facility. The appearance of the staff, including clothes and grooming, may be used as important clues.

Case Study
Comparison of hotels: Taj Product Orchid Regale executive, Star, icon, legend orchid

Deluxe rooms, luxury Deluxe, suite, Taj club rooms, club Palace wing rooms suite, suite

price,

presidential

Price

11,000 95,000

5000 -27000

` 6,500 18000

Place

High Society or sea Near airports. side.

Near to Tourist sites as well as airports

Promotion

Calendars, exhibitions, TV.

print, Ads,

cinema,

TV, Brochures, exhibitions, media

print media.

Process

Online or on the desk

Online or on the desk

Online or on the desk

Performance

6 stars

5 star eco friendly

4.5 stars

Package

Yatch services

Business, spa

Nila

blue

waters.

Sparta fitness

People

Porters, chef, manger Porters, chef, manger Receptionist manager,

receptionist,

receptionist

Physical Evidence

Built in in 1903

It was built in 1997

It opened up in 2008

Positioning

High class

Corporate travelers

Tourists public

&

normal

Purpose

High class enjoyment

Eco friendly

Encourage tourism

Consumer Behaviour Consumer behaviour is influenced by numerous factors What, why, where, when and how Three major conditions: 1. Environmental factors 2. The buyer's factors 3. The buyer's responses factors

Environmental Factors

Environmental stimuli

Demographic Cultural Geographic Economic Historic Legal Political Technological Competitive

Market Stimuli

Company Customers Suppliers Intermediaries Public

Market efforts

Product Price Place Promotion People Public

Buyers personal characteristics: Nationality Ethnicity Religion Age Gender Life-cycle Occupation Economic life-style Personality Self concept

Buyers psychological characteristics Motivation Perception Learning Beliefs Attitudes

Decision Process: Need recognition Information Search Evaluating alternatives Purchase decision Post-purchase behaviour

Peoples role in buying decision process: The initiator The influencer The decider The purchaser The user

Leisure and hotels sector sees biggest fall in insolvencies By -Neil Gerrard The leisure and hotels sector saw a larger drop in the rate of business insolvencies in August 2012 than any other sector. Thats the finding from Experian's Business Insolvency Index, which showed that the insolvency rate in the sector fell from 0.15% in August 2011 to0.12% in August this year. Overall, insolvencies in August 2012 stood at around the same rate as July2012. There were 1,723 business failures for the month in total. Scottish firms did well, with an insolvency rate of 0.06% in August 2012 overall. The picture in Yorkshire was also relatively good compared with the rest of the UK, with a fall in insolvencies among all businesses from 0.1% in August last year to 0.08% in August 2012.Max Firth, managing director, Experian Business Information Services, UK & I, said: "Since March we've seen insolvency rates flatten out, which is a positive and welcome trend. In addition, we've seen real pockets of improvement, such as in Scotland and Yorkshire, which have been sustained over a number of months now."But firms cannot afford to be complacent. They need to continue sensible financial practices such as risk planning and monitoring their financial health and those of their customers and suppliers

Bibliography 1. Lovelock, C. (1996) Services Marketing, 3rd edn. Upper Saddle River, NJ: Prentice-Hall. Powers, T. and Barrows, C. (1999) Introduction to Management in Hospitality, 6th edn. New York: John Wiley & Sons. Shea, L.J. (2001) Marketing service products. In Brian Miller (ed.), The Hospitality Industry: A Dynamic Experience. Dubuque, IA: Kendall/Hunt Publishing. 2. Caterer and hotelkeeper; Monday 24 September 2012 14:23 3. Website: www.Google.com
http://www.hospitality-industry.com/