A Strong Partner for Sustainable Development

Module
in
THC103

QUALITY SERVICE MANAGEMENT

IN
HOSPITALITY AND TOURISM

COLLEGE OF BUSINESS AND MANAGEMENT

Bachelor of Science in Hospitality Management
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1 WPU-QSF-ACAD-82A Rev. 00 (09.15.20)1
WPU-QSF-ACAD-82A Rev. 00 (09.15.20)
 Module No. 1

Introduction to Quality Service Management in

Tourism and Hospitality Industry

2nd Semester AY 2021-2022

ROY B. CABARLES
Instructor 1

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Table of Contents Page

Title Page i

Table of Contents iii

Instructions to the User iv

Introduction v

Unit 1 1

Overview 1

Learning Outcomes 1

Pre-test 2

Lesson 1 3

A. Learning Outcomes 3

B. Time Allotment 3

C. Discussion 3

D. Exercises/Activities 16

Lesson 2 20

A. Learning Outcomes 20

B. Time Allotment 20

C. Discussion 20

D. Exercises/Activities 30

E. Evaluation/Post-test. 33

References 34

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INSTRUCTION TO THE USER

This module would provide you an educational experience while independently accomplishing
the task at your own pace or time. It aims as well to ensure that learning is unhampered by health
and other challenges. It covers the topic about the Introduction to Quality Service
Management in Tourism and Hospitality Industry.

Reminders in using this module:

1. Keep this material neat and intact.

2. Answer the pretest first to measure what you know and what to be
learned about the topic discussed in this module.
3. Accomplish the activities and exercises as aids and reinforcement for
better understanding of the lessons.
4. Answer the post-test to evaluate your learning.
5. Do not take pictures in any parts of this module nor post it to social
media platforms.
6. Value this module for your own learning by heartily and honestly
answering and doing the exercises and activities. Time and effort were
spent in the preparation in order that learning will still continue amidst
this Covid-19 pandemic.
7. Observe health protocols: wear mask, sanitize and maintain physical
distancing.

Hi! I’m Blue Bee, your WPU Mascot.

Welcome to Western Philippines University!

Shape your dreams with quality learning experience.

STAY SAFE AND HEALTHY!

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INTRODUCTION

This module will serve as alternative learning material. The instructor will facilitate and
explain the module to the students to achieve its expected learning outcomes and to
ensure that they will learn amidst of pandemic.

This material discusses the Introduction to Quality Service Management in Tourism and
Hospitality Industry. It aims to teach the learner about Quality Service Management in
the Tourism and Hospitality Industry. It is very important that the learner cooperates by
using this module page by page and completing all the given activities. At the end of the
module, the learning outcomes are evaluated based on the different tasks given to the
learner.

Through the learner’s cooperation in this kind of flexible learning delivery,

understanding the Introduction to Quality Service Management in Tourism and
Hospitality Industry is possible. It is expected that after using this module the learner
will become well-oriented on the coverage of this chapter.

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 UNIT 1
Introduction to Quality Service Management in Tourism and Hospitality
Industry

Overview

In the tourism and hospitality industry, the establishment of quality is one of the
prime reasons an entity will be patronized. It should always be remembered that
customers (guests as we call them) have a lot of choices. With over decades of existence
in operations, the determination of quality has changed through the years. Add it up to
the impatience and sophistication of our guests, this concept should always be inculcated
in all service providers in this industry.

Learning Outcomes
At the end of this unit, you can:
1. define what is quality;
2. determine the different dimensions of quality;
3. identify the distinction between goods, services, and service products; and
4. gain insights on the contributions made by the pioneers of total quality
management and service management.

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 PRE-TEST
Instructions: Before we proceed could you share your insights about quality? When
you think about quality how does it relate to the hospitality industry? Write down your
thoughts below. you can add pictures to further support your explanation(optional).

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____________________________________________Picture
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 LESSON 1
QUALITY SERVICE MANAGEMENT
IN THE TOURISM AND HOSPITALITY INDUSTRY

A. Learning Outcomes

At the end of the lesson, you can:

1. define what is quality;

2. determine the different dimensions of quality;
3. identify the distinction between goods, services, and service products; and
4. gain insights on the contributions made by the pioneers of total quality
management and service management.

B. Time Allotment
3 hours

C. Discussion

Weiermair (2000) noted that in the tourism sector, even though the production and distribution of
services involve different experiences on both parts of the tourists and the suppliers, the ultimate goal is still to
achieve the highest quality possible. To determine the "highest quality," one must first understand the concept of
"quality.”

To determine the "highest quality," one must first understand the concept of
"quality.” For our guests in the tourism and hospitality industry, one will be using
specifications, standards, and other measures to evaluate quality. This is now a piece of
evidence that quality can be understood, defined, and measured. Especially for our
guests, sometimes if asked on quality, they could not define it but would immediately
know one when they see one. It will now be critical for quality to be seen. To illustrate,
as what the quote says, “Beauty is in the eye of the beholder," so is quality, and more
importantly, our guests define it.
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 Joseph Juran, one of the pioneers in "quality" research, defined quality as
"fitness for use." This means that the concept of quality is variable to the one defining it.
We cannot say that the service of a casual dining restaurant has high quality if We have
no intention of dining in the said restaurant. It is because we are not intended for the
said restaurant, so we have no means in determining quality. A dining staff member that
has no experience in the kitchen cannot decipher the difference between whether a
kitchen knife is of good quality or not. It is because it is not fit for him/her to use it.

The International Organization for Standardization (ISO), the world body for
standard formulation, also defined quality as "the totality of features and characteristics
of a good or service that bear on its ability to satisfy a given or implied need." In the
definition, it is clear that a "given or implied need” should be addressed and this is
usually defined by the user, in our case, our guest or restaurant staff from which he/she
will address the criteria for quality.

Joseph Juran and the logo of International Organization for Standardization (ISO)

SERVICE PRODUCT: GOODS AND SERVICES

Many have been mentioned already with the concepts of products and services.
But let us add another term: goods. These three terms are often confused with each other.
For the purposes of this chapter, we will be taking the marketing perspective of the
terms. A product can be defined as anything that we can offer to a market for attention,
acquisition, use, or consumption that could satisfy a need or want. However, the
definition of product does not only involve tangible goods such as those that are
purchased in restaurants like burgers, fries, or drinks. The definition of product must be
extended to include intangible objects as well because they can also be offered goods.

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 Goods, according to Hill (1999), refer to physical objects for which a demand
exists; their physical attributes are preserved over time; and their ownership can be
established, can exist independently of the owner, and can be traded on markets.
Services, meanwhile, have four features. Lovelock (1983) connoted this as the IHIP
characteristics: intangible, heterogeneous, inseparable, and perishable.

INTANGIBLE

Services are intangible in nature. It means that they cannot be touched as they are
not physical and can only exist in connection to other things. For example, the warm
smile and grateful service of a food attendant in a restaurant cannot be touched but can
be felt and can only exist because you have ordered a food item in a restaurant.

Portrait of smiling waiter with serving tray

HETEROGENEOUS

Similarly, services are heterogeneous due to their dependence on the workforce

which does the act. In hospitality, this concept is sometimes referred to as
“inconsistency.” The service that a hair therapist renders to his/her client at 10 am would
be of different quality and dimension as to when he/she does the service at 8 pm. This is
why the industry has the concept of “service recovery” in place. Just like when a famous
pizza house delivers its pizza on time, if it fails to do so, the pizza would be free. The
concept of heterogeneity is also brought about by the differing likes and dislikes of the
guest. Even though a standard is set, the satisfaction of each guest varies greatly and of
course, as previously stated, the guest defines the concept of high quality; that is
why, commonly, the service staff adheres to the request of the guest.

Complaining Guest Satisfied Customer

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INSEPARABLE

Inseparability, meanwhile, means that the production (act of delivery of service

staff) and the consumption (guest experience) cannot be separated from each other. In
a spa, for example, the service rendered by a spa therapist cannot be done while the guest
is still at the office. The guest should be present for the massage service to be done.

Couple Massage

PERISHABLE

Using technical criteria to define services, Smith (1776) states that service will
“perish in the very instant of its performance, and seldom leave any trace or value behind
them for which an equal quantity of services could afterward be procured.” This is
especially true for hotels where the main product is the sale of its guest rooms. For
example, if the sales team of a particular hotel does not perform its job properly, usually
the chance where a room can be sold is lost forever. The sale cannot be brought back
again for that specific day and time.

Unsold Hotel Room

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 GOODS SERVICES RESULTING IMPLICATION
Tangible Intangible • Service cannot be inventoried
• Services cannot be easily Patented
• Service cannot be readily displayed or
communicated.
• Pricing is difficult
Standardized Heterogeneous • service delivery and customer satisfaction
depend on employee and customer actions.
• Service quality depends on many
uncontrollable factors
• There is no sure knowledge that the service
delivered matches what was planned and
prompted.
Production Simultaneous • Customer participate in and affect the
separate from production and transaction
consumption consumption • Customer affect each other
• Employee affect service outcome
• Decentralization may be essential
• Mass production is difficult
Nonperishable Perishable • It is difficult to synchronize supply and
demand with services
• Services cannot be returned or resold.

Comparing Goods and Services: A. Parasuraman, V.A Zeithaml and L.L Berry,
“A conceptual Model of Service Quality and it’s implication for future Research”

Now that we have distinguished the differences between goods and services, it is now
time for us to develop the service product concept. Ford (2011) mentioned that goods
and services could not be separated from each other. In the delivery of services, one
cannot be performed properly without the use of tangible items.

For example,

• for a spa therapist to be able to conduct a full-body massage, he/she needs a cozy
bed that would ensure comfort to his/her guest, essential oils to apply to the body
for the massage, or glasses when conducting ventosa service.

• A tour guide needs maps, flags, or other collaterals for him/her to deliver his/her
“commentary.” Thus, it is essential that these components be purchased as a
package. With this, the concept of service product was conceptualized.

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 DIMENSIONS OF QUALITY FOR SERVICE PRODUCTS

Providing high-quality service to your customers is necessary for today’s competitive

business landscape. Your customers will return to you over and over again if your
business can do this well. Of course, you’re always aiming to deliver excellent service.
But how can you determine if you’re living up to your customer’s standards? Since
service quality is a qualitative measurement, not a quantitative one, it can be challenging
to determine where you truly stand.

Uncover how your customer experience measures up or risk losing customers to the
competition. Using the eight dimensions of quality for service products and knowing
how to measure them accurately can help you find actionable ways to improve your
customer experience and delight your customers.

1. Performance — It refers to a service product’s primary operating

characteristics. Usually in the hospitality and tourism industry, as we are catering
to intangible dominant concepts, performance often means prompt service. This
dimension of quality has very measurable attributes, that is why brands can
usually be ranked objectively on their respective aspects. Although measurable, it
is quite hard to measure overall performance rankings as they involve benefits
that not every consumer needs.

2. Features — Features are dimensions of quality, which are usually cited as a

secondary aspect of performance. They are secondary in such a way that they
supplement the basic functioning of a service product. Examples would include
free drinks on a plane, free Wi-Fi service in guest rooms, and a complimentary
hot tea after a full-body massage. Sometimes, identifying features from the
primary performance characteristics is difficult as they accentuate the actual
performance indicators. But what is important to know is that features involve
objective and measurable attributes that can be clearly observed which sometimes
affect their translation in quality differences.

3. Reliability — It refers to the ability to perform the promised service product

dependably and accurately. This means that being able to provide service as
promised is one of the main considerations in assessing this dimension. The guest
assesses quality by gauging that when he/she is promised to for his/her pizza to
be delivered in 30 minutes, it should be delivered in less than or exactly 30
minutes. When the guest is promised for a mouthwatering dining experience,
then the ambiance, service, and food should all be complimentary to deliver the
said experience.

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4. Conformance - This quality dimension means that a service product's design
and characteristics should meet the standard set. Juran became one of the
pioneers who specialized on this area. Service products to be accomplished and
performed properly need to have specifications. When new product offerings or
service provisions are developed, dimensions are actually set to become standards
for evaluation. These specifications are treated as the “targets” to be met in a
specific service product.

5. Durability —This dimension is more detectable in goods rather than in services

and it has both technical and economic dimensions. Technically, durability can
refer to the amount of use before a specific product deteriorates. For example, a
commercial oven can be measured by the number of years it may serve a specific
kitchen inside a restaurant, or an espresso machine in the case of coffee shops. In
the case of service aspect, in both personal and company reputation, costs in
training and hiring of qualified and complementary staff may be considered
within this dimension.

6. Serviceability — The sixth dimension of quality, again more inclined toward

goods rather than services, is serviceability or speed, courtesy, competence, and
ease of repair. Guests are concerned with the breakdown of the products that are
actually offered to them. But most importantly, they are concerned with how fast
the standard they paid for can be restored. Connecting to service concepts, this
dimension can also cover how fast a hotel can transfer a guest to another hotel
after he/ she was declined because the initial hotel was fully booked, or how the
restaurant management can deal with accidents and give service recovery at the
soonest time.

7. Aesthetics — This dimension, along with the last dimension, are highly
subjective. Aesthetics—how a service product is perceived—is clearly a matter of
personal judgment. It reflects how a guest is as an individual. Even with this fact,
their appear to be some patterns in guests’ likes and dislikes when it comes to bthe
basis of tastes. Their tastes of course are affected by a variety of factors, including
their demographic and psychographic characteristics. Because of this, hotels,
resorts, and other hospitality and tourism establishments need to conduct market
segmentation to develop their target segments; as what quote says, “You can’t
have it all.” In the case of some famous hotel chains, they have segmented their
properties or brands to cater to the different needs of the guests.

8. Perceived Quality — Guests usually do not have a complete guide on a service

product's dimensions; unknowingly, they are indirectly measuring and this
measurement is the only basis for them to compare brands. A tour experience for
example cannot be observed directly; it usually must be gauged by a number of
tangible and intangible aspects of the tour package. Because of this, images,
advertising, and brand names can be critical. Some brands even ship from outside
the country to maintain service quality and to deliver value as they promised it to

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 their guests. Corporate reputation is its most prized possession and is the focus of
perceived quality.

LEADERS IN SERVICE QUALITY EVOLUTION

With the emerging demand for studies in total quality management and services
marketing leading to then study of service quality, the following were invloved in the
evolution;

Walter A. Shewhart

• An American physicist, engineer, and statistician.

• Also known as the Father of Statistical Quality Control.
• Developed a statistical control process method to
distinguish between random and non-random variation in
industrial processes to keep the process under control.
• One of the Developer of the “Plan-Do-Check-Act” (PDCA)
cycle that emphasizes
the need for continuous improvement.
• Strongly influence Deming and Juran.

William Edwards Deming

• He has the most influence on quality management

compared to other leaders in the quality revolution.
• Demonstrated that quality products are less costly than pa
oor quality products.
• The Deming philosophy focuses on continual improvement
in product and service quality by reducing uncertainty and
variability sign, manufacturing, and service processes, driven
by the leadership of top management
• He championed the work of Walter Shewhart, including
statistical process control, operational definitions and what
Deming called the “Shewhart Cycle” which had evolved into
Plan-Do-Study-Act (PDSA)

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 Plan – Do – Check – Act Cycle (PDCA

The PDSA Cycle (Plan-Do-Study-Act) is a

systematic process for gaining valuable
learning and knowledge for the continual
improvement of a product, process, or service.
Also known as the Deming Wheel, or Deming
Cycle, this integrated learning-improvement
model was first introduced to Dr. Deming by
his mentor, Walter Shewhart of the famous Bell
Laboratories in New York.

The cycle begins with the Plan step. This

involves identifying a goal or purpose,
formulating a theory, defining success metrics
and putting a plan into action. These activities
are followed by the Do step, in which the
components of the plan are implemented, such as making a product. Next comes the
Study step, where outcomes are monitored to test the validity of the plan for signs of
progress and success, or problems and areas for improvement. The Act step closes the
cycle, integrating the learning generated by the entire process, which can be used to
adjust the goal, change methods, reformulate a theory altogether, or broaden the
learning – improvement cycle from a small-scale experiment to a larger implementation
Plan. These four steps can be repeated over and over as part of a never-ending cycle of
continual learning and improvement.

Joseph M. Juran
• Emphasized the importance of producing quality
products through an approch focused on quality
planning, control, and improvement.
• Defined product qualtiy as “fitness for use” as viewed by
the customer in: Quality of Design, Quality of
conformance, availability, Quality of congformance,
Safety and Field use.
• Categorized the cost of quality as: Cost of Prevention,
cost of detection/appraisal, and Cost of failure
• Dr. Juran was the first to incorporate the human aspect of quality management
which is reffered to as Total Qualtiy Management (TQM).

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 Juran’s Quality Trilogy

Juan Trilogy is a way to manage a quality improvement cycle aimed at reducing

the cost of poor quality products/ services by planning quality into the whole process.
Juran sets out a process to enable you to focus on quality management and best practices
to produce the best possible results for your customer. The core focus is quality, when
creating or producing products/services it is critical to ensure they are fit for the purpose
they are created for. Juran based everything around three core processes. The concept
is based on three business processes that need to be balanced:

• Quality Planning - Process of preparing to meet quality goals. It involves

understanding customer needs and developing product features.

• Quality Control – Process reviews every aspect involved in production from

process control to Regulatory requirements. Procedures that adhere to a standard
set of quality criteria concerned with identifying defects. Don’t confuse with
Quality assurance (QA) which is about the prevention of defects.

• Quality Improvement – Process for breaking through to unprecedented levels

of performance. Identify areas of improvement and get the right people to bring
about the change.

Philip Crosby

• Perched that “Quality is Free”.

• He initiated the Zero Defects Program at the Martin
Company.
• Believed that an organization can reduce the overall cost
by improving the overall quality of its processes

Crosby Absolutes of Quality Management

Crosby, who defines quality simply as conformance to customer requirements, is

best known for his advocacy of zero defects management and prevention as opposed to
statistically acceptable levels of quality. He is also known for his work on Costs of Quality,
Quality is Free and Crosby's Fourteen Steps to Quality Improvement.

The essence of Crosby's quality philosophy is embodied in what he calls the Absolutes of
q and the Basic Elements of Improvement..Crosby's Absolutes of Quality Management
are as follows:

• Quality means conformance to requirements not elegance. Crosby

dispels the myth that quality is simply a feeling of "excellence." Requirements
must be clearly stated so that they cannot be misunderstood. Requirements are
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 communication devices and are ironclad. Once a task is done, one can take
measurements to determine conformance to requirements. The nonconformance
detected is the absence of quality.

• There is no such thing as a quality problem. Problems must be identified

by the individuals or departments that cause them. There are accounting
problems, manufacturing problems, design problems, front-desk problems, and
so on. Quality originates in functional departments, not in the quality
department, and the burden of responsibility for such problems lies with the
functional departments. The quality department should measure conformance,
report results, and lead the drive to to develop a positive attitude toward quality
improvement. This is similar to number 3 of Deming'sPoints.

• There is no such thing as the economics of quality: it is always cheaper

to do the job right the first time. Crosby supports the premise that "economics of
quality" has no meaning. Quality is free. What costs money are all the actions that
involve not doing jobs right the first time. The DemingChain Reaction provides a
similar message.

Armand V. Feigenbaum

• Proposed the concept of “Total Quality control” making

quality everyone’s responsibility, which inspired Total
Quality Management.

Three steps to Quality:

controltrol must start with the identification of customer

quality requirements and end only when the product has been placed in the hands of a
customer who remains satisfied. Total quality control guides the coordinated action of
people, machines, and information to achieve this goal. The first principle to recognize
is that quality is everybody’s job.” Feigenbaum’s philosophy is explained in his “Three
steps to quality”.
• Quality Leadership: Management should take the lead in enforcing quality
efforts. It should be based on sound planning.
• Management Quality Technology: The traditional quality programs should
be replaced by the latest quality technology for satisfying the customers in the
future.
• Organisational Commitment: Motivation and continuous training of the
total workforce tells about the organizational commitment towards the
improvement of the quality of the product and the services.

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 Kaoru Ishikawa

• He believed that the quality should not stop in reinventing a

product alone.
• He was one of the few people who believed that delivering
quality does not stop in purchasing the product; it goes beyond
the transaction itself.
• He highlighted and reinvented the concept of customer
service, giving us the concept of after-sale service and
warranty.
• He was also the one who coined the “Ishikawa” or “fishbone”
diagram that highlights the cause and effect of the activities
and processes while in constant search of quality in operations.
https://www.youtube.com/watch?v=4eteSMuum6k – click this link for
fish bone diagram explanation.

NOTABLE PEOPLE IN SERVICES MARKETING AAND MANAGEMENT

James H. Donnelly A. “Parsu” Parasuraman Valerie A. Zeithaml Leonard L. Berry

Mary Jo Bitner Bernard H. Booms Christopher lovelock Theodore Levitt

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 Walt Disney Bruce Laval

1. James H. Donnelly, in his works, highlighted the differences between the

marketing ‘‘channels’’ used for services and those used for physical goods and
implications for marketing strategy.

2. A. “Parsu’” Parasuraman, Valarie A. Zeithaml, and Leonard L. Berry

developed their pioneering “gaps model’ of service quality which highlighted the
importance of efforts made to assess quality in services.

3. Mary Jo Bitner and Bernard H. Booms developed their expanded

“marketing mix” for services which took into account the distinctive
characteristics of service identified in the “crawling out” stage: intangibility,
inseparability, heterogeneity, and perishability. They added three more Ps to this
original marketing mix to make it more appropriate to services: people, process,
and physical evidence.

4. Christopher Lovelock was best known as a pioneer in the field of Services

Marketing among other titles, such as author, professor, and consultant. He was
also known for his excellent case studies.

5. Theodore Levitt was an economist and professor at Harvard Business School.

He was also an editor of the Harvard Business Review who was especially noted
for increasing the Review's circulation and for popularizing the term
globalization. In 1983, he proposed a definition for corporate purpose: Rather
than merely making money, it is to create and keep a customer.

6. Walt Disney and the Disney Company while crafting their concept for theme
parks also pioneered the thought of the service providers not only as team players
but also as “cast members” just like in a movie or theater.

7. Bruce Laval, an industrial engineer of the Disney Company,

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 ACTIVITY/EXERCISE
Case Analysis

Reality Bites

Anne and her family decided to dine out one night and chose the mall due to
convenience purposes. Due to a limited selection because of health issues of her family,
their choices were narrowed down into two restaurants, namely:
• Camiling Restaurant and
• Shery's Diner,

which are Filipino fusion restaurants. There were some decisions to be made because
it was already late and everyone was hungry. They got to Shery's Diner first, but they
were caught in the long line of customers. Since there was a long line in the waiting list,
they decided to go to Camiling Restaurant, which was an all-you-can-eat buffet
restaurant it seemed that this was a good choice for the whole family because there was
a great selection of food items and there were no lines. Since Camiling Restaurant is alto
well-known for its food and has been serving Filipino dishes for almost 30 years, the
family expected so much. Upon entering the establishment around 7 pm, the family saw
that there were still a lot of people eating. Since there was quite a crowd, the family
expected to see a lot of food; but to their dismay, there was only a few foods left, and yet
the restaurant was still allowing new customers to come in.

The family waited for the crew to replenish the food, but when Anne asked a crew
member, he/she just plainly said that there was no more food. Nonetheless, Anne and
her family adjusted and simply stayed since they were already in the restaurant. After
this instance, a lot of disappointments cluttered up, such as the glasses of water, which
should be given at the start of service, were not provided despite her family's several
requests; the bathroom with no soap and dysfunctional air dryer; and the melted ice in
the halo-halo station. The family was very displeased with the type of service that they
had and they decided not to go back to the said restaurant again.

Instruction: After reading and carefully analyzing the given case, create a video
reflection regarding the case and answer the following questions (100 points). A
rubric will be the criteria to check your work. These activities will be recorded as part of
your performance task.

1. What is the basis of quality for this kind of instance?

2. Who defines quality, the restaurant or the customer? Why?
3. What could the family have done to avoid circumstances such as
this?

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 Rubric for assessment

CRITERIA HIGHEST POSSIBLE

SCORE
Content
The speaker provides a variety of types of 40 pts
content appropriate for the task, such as
generalizations, details, examples and various
forms of evidence. The speaker adapts the
content in a specific way to the listener and
situation.

Delivery
The speaker delivers the message in a 40 pts
confident, poised, enthusiastic fashion. The
volume and rate varies to add emphasis and
interest. Pronunciation and enunciation are
very clear. The speaker exhibits very few
disfluencies, such as "ahs," "uhms," or "you
knows."
Organization
The message is overtly organized. The speaker 20 pts
helps the listener understand the sequence
and relationships of ideas by using
organizational aids such as announcing the
topic, previewing the organization, using
transitions, and summarizing.
TOTAL 100 pts

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 ACTIVITY/EXERCISE
Experiential Exercises

Direction: Choose two food service establishments near you and observe the quality of
service that the staff provides. After you choose, compare the quality of service that the
staff delivers between the two establishments. You can dine in your chosen food service
establishment to carefully observe and provide documentation (optional; it's up to you).
Determine the factors to consider when comparing. The rubric will be used to check your
work, and this will be recorded as part of performance task (50 points).

Picture
Of 1st food service establishment

Short Description: (include the name of the establishment and what type of foodservice
establishment it is)

Picture
Of 2nd food service establishment

Short Description: (include the name of the establishment and what type of foodservice
establishment it is)

What are their similarities?

What are their differences?
What could be done to better their services

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 Rubric for assessment

CRITERIA HIGHEST POSSIBLE

SCORE
Content
The presence of ideas developed through 20 pts
facts, examples, details, opinions, statistics,
reasons and for explanation.

*2pts deduction for each item not observed

Organization and Presentation
Has excellent formatting and very well - 20 pts
organized information.

*2pts deduction for each item not observed

Writing and Spelling
There are no grammatical or spelling errors in 10 pts
the timeline.

*2pts deduction for each item not observed

TOTAL 50 pts

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 LESSON 2
Strategies for Quality Service in Tourism and
Hospitality
A. Learning Outcomes

At the end of the lesson, you can:

1. understand the concept of strategy;

2. realize the importance of designing the guest experience; and
3. Identify the key factors that must be examined to ensure the best service.

B. Time Allotment
3 hours

C. Discussion

To bridge the gap between the expectations and perceptions of a guest in a

hospitality and tourism setting, it is a must to plan his/her experience carefully. A
productive guest encounter is expected to yield an optimum experience. With these.
critical planning is very much important to properly design and ensure that the best
experience is the only experience a guest will receive.

In planning the guest experience, strategies are employed to be able to deliver

processes for each issue that is needed to be resolved by the management. Strategies are
plans that are designed to achieve a specific aim of the company. It usually involves
setting goals, planning actions to achieve such goals, and maximizing resources to
achieve the goals. With strategies, resources become optimized, productivity is
maximized, and processes are simplified. Now, with guests at the center, the experience
would be better than initially planned.

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 HOSPITALITY, TOURISM, AND STRATEGIES

Strategic planning has been utilized extensively for developing tangible

products rather than used in service-related industries like hospitality and tourism. Wie
marketing nature of tourism products and services, it is evident for the establishment to
draw their market toward services, strategy plays a critical role. By utile strategies, a
company is able to identify its competitors while satisfying the needs and wants of its
guests.

Strategic planning is the process of identifying a company's internal and

external characteristics which will contribute to the attainment of its goal pointing to a
specific direction while formulating different policies on how best to achieve it. A
restaurant, for example, to become one of the best in a certain area or region should
think of different strategies to be able to meet the requirements needed in a certain area
as dictated by the market and the present situation it belongs

With strategic planning in mind, three elements make up its components. Firstly, the
identification of long-term goals and objectives concerning the conceptualization of
coherent and achievable strategic objectives. Secondly, the adoption of different courses
of action should also be in place to assure that actions taken to arrive at objectives are
already set. Lastly, the allotment of resources is also set in place. This means that there
will be costs associated with the actions to be able to achieve the objectives.

Porter's Generic Strategies

In order to be successful and to make a

profit in the industry's competitive market, every
organization needs a clear strategy. But how do
establishments decide the best strategy for their
businesses, may it be a spa, a restaurant, or a resort?
The decision they make will affect every aspect of their
company so it is important to get it right.

Porter's generic strategies can help a decision-maker

to make the best choice for his/her company.

Michael Porter identifies three strategies in achieving

a competitive edge in his book. Competitive Edge.
These are cost leadership strategies. differentiation
strategy and focus strategy.
Michael Porter

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 Cost leadership strategy - focuses on increasing profits by reducing
operational costs and charging lower prices. To implement this strategy successfully, a
company will need to invest in new technology and to have efficient logistics. A company
must also make sure that it’s spending on items such as labor, materials, and facilities is
kept low. It is essential that a company beats its competitors on cost so it will need to
continually monitor and reduce its costs. An example would be an economy-level hotel
that charges low rates but has only basic amenities for a regular guest. Its room will
typically have a standard bed, color television, air-conditioning unit, and private
bathroom. Wi-Fi connection is optional.

Low Price – Standard Room

The differentiation strategy focuses on making a company's service

being attractive and unique in comparison to those of its competitors. For example, a
company might specialize in a particular feature or unique service, be renowned for its
excellent customer service, or have a highly valued brand image. It will need to be
creative and innovative and be able to provide high-quality services for this strategy to
work. Sales and marketing also play a vital role in this strategy's success and a company
will need to make sure to stay ahead in new trends in the industry. One best example
would be a hotel utilizing green technology in its operations. This hotel can boast of
adhering to the call on sustainability and environmental stewardship by integrating this
concept in its day-to-day operations, such as the use of reclaimed wood, metal roofing
and steel grills of another reclaimed building, passive cooling through building
orientation and insulation on metal roofing, as well as harvesting rain and groundwater
for toilet flushing, plant irrigation, and general house cleaning

The focus strategy concentrates on developing services for niche markets.

Using this strategy requires a deep understanding of the customer's needs of a company.
Its aim will be to meet these needs by providing something special and extra that the
customers cannot get anywhere else. A company will also need to decide whether to
adopt cost leadership or differentiation. This is because the focus strategy is not normally
enough to win substantial market share on its own.
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 The first type of focus is on cost leadership or cost leadership in a narrow
or focused market. An example would be the study hubs in the university belts. They
have a very focused marketplace. They specifically target student guests that are looking
for cheaper alternatives to hotel lounges wherein they could spend their time studying.
They do not provide for everyone but only for students, that is why their price is
relevantly low.

Study hub

The second type of focus is on differentiation in a narrow or focused

market. An example would be a coffee shop that adapted the drive-through business
model. It focuses on guests who do not really necessarily want to sit down and have a
cup of coffee. The guests like the brand and offering but do not have the time to sit down
and enjoy a cup of coffee. They have it on the move.

Scooters Coffee Drive-Thru

Choosing the right strategy for an organization is crucial in gaining a

competitive edge over its rivals. By using Porter's generic strategies model, an
organization will be able to identify the strategy that it needs to lead the organization to
success.

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 Internal and External Assessments

Internal analysis is where an organization takes stock of the resources and

assets that it possesses. These include the strengths that enable an organization to
function well. Experts refer to this as the "secret sauce" of an organization. Moreover,
the internal analysis also flaunts the weaknesses of an organization. These weaknesses
are identified not to dwell on, but to be addressed and resolved so that they do not harm
an organization.

An airline company, through internal analysis, may find out that it needs to
have a stronger passenger relationship management with its clients. By delving deeper,
it found out that the problem was because it is not in the culture of the employees to
establish a relationship with their passengers. Utilizing a strategy to develop relationship
marketing in their operations, enabled the entire company to combat this problem and
convert the weakness into a strength.

Ninoy International Airport

An external analysis, meanwhile, does not rely on the secret sauce." How a
company positions itself in the market with respect to its rivals in its particular space is
of primary concern. Attention should be focused on what a company is good at relative
to its rivals in that industry. Doing external analysis not only determines a company's
position in the external environment but also showcases its opportunities and threats.
Identifying a company's opportunities and threats, through different tools such as the
Political, Economic, Social, Technological, Environmental and Legal (PESTEL) analysis,
exhibits what it needs to be wary about which somehow are uncontrollable to a certain
level.

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 One best example is what happened in Boracay when it was closed for six
months because of the environmental rehabilitation projects of the Philippine
government. Many hotels and their respective employees and guests were affected by
this situation. It is said that about 400 lodgings and food services were ordered to be
closed for violating laws, three casinos were shut down, and other tourism
establishments built within the 30-meter shoreline were demolished. The government
predicted about a P18-20 billion loss of potential gross receipts due to the six-month
closure.

Boracay Clousre

Strategizing for the Future

Ford (2011) stated that the things hospitality and tourism organizations must
plan to cope with changes in the future include demographics, technology, social
expectations, economic changes, competition in the industry, stakeholders, and other
factors.

Demographics

Changes in the workforce and the market of the hospitality and tourism
sector will continue to affect the operations of the industry, and this is relevant not only
to the service providers but also to its market. Park and Yoon (2009) made an article on
segmenting the motivation of Korean tourists. In their article, they noted that motivation
in tourism is largely determined by a number of factors, including demographics. Results
show that with changing demographics, themes as to their socio-economic
characteristics and behavior in tourism also change. The findings of the research show
that most Korean tourists value family togetherness, some are passive, and some are
want-it-all tourists. In the Philippines, as reported by the Department of Tourism in
2017, millennials proved to be the most well-traveled. The 15-24 age group traveled
across the country the most, followed by the 24–34 age group and the 45-55 age group.
These only show that demographics have changed already whereby before these
activities are prolific with the baby boomers but now millennials take the scene.

25
 Millennial’s travelers Senior Citizens Travelers

Economic and Natural Forces

Economic forces also change the nature of the industry and how it is managed
by the key stakeholders of this fast-growing sector. In 2018, the Philippine Statistics
Authority reported that the Tourism Direct Gross Value Added (TDGVA) of the
Philippines jumped to a great amount of 12.7%. This translates to P2.2 trillion, a higher
by 14.3% as compared to 2017's record of P1.9 trillion. A lot of people are benefiting from
tourism, and in the Philippines, this service-oriented sector source of employment and
income of a lot of Filipinos.

The Boracay tourism sector and its residents were deeply affected when it was
temporarily closed in April 2018. The six-month closure of the island was based on the
need for rehabilitation" with the environmental problems which were already surfacing
and becoming too much for Boracay to bear.

Boracay Beach Clean up

26
 In January 2020, Tagaytay, one of the famous places in the Philippines, also
suffered a tourism disaster as one of its prized natural destinations, the Taal Volcano,
erupted. Tourists flock to Tagaytay because of its cool temperature and the magnificent
Taal Volcano. In just the first three months of 2019, Tagaytay had 6.9 million visitors-a
sudden rises as there were only 7.5 million visitors in the entire 2018. Unfortunately, as
the Taal Volcano erupted, most of the areas in Tagaytay and the nearby municipalities
in Batangas were deeply affected and had to find means how to cope with this economic
and natural downturn.

Taal Volcano Eruption

Competitors

Competitors also shape the tourism and hospitality industry. The presence of
this major key player brings about major changes in the industry. Moore (1996) utilized
biological analysis in explaining shifts in today's business. He mentioned in his article
that businesses are a big part of the ecosystem and businesses need to co-evolve in order
to thrive and survive. This is because of the fact that the economy consists of
unpredictable key players which constantly shift. Thus, movements between competitors
shift from time to time and create different relationships which also affect other
relationships that will be made in the future.

Coexistence exists on social exchanges between competitors. As economic

exchange and bonds are not present, each competitor knows about each other but does
not interact with them. Usually, power is identified dependent on the competitor's
position and strength. Somehow, dependence is present and smaller companies are at
the mercy of larger players. There is also a distance between the competitors, although
psychologically. Trust is also regarded high, although informal, as one player is also
dependent on another competitor but does not interfere with him/her.

Another relationship is cooperation, which also exists in this scenario. As this

concept is present, there are frequent exchanges between the players which comprise
business, information, and social exchange. All competitors are cooperating but it does
not mean that they are not competing. Formal agreements exist if the competitors have
formed strategic alliances. Independent hotels usually do this. such as in the case of
referral groups or marketing consortiums. Although informal agreements also exist, they
27
are built on social norms and trust. These norms adjust the distribution of power and
dependence among themselves, which means that conflicts rarely arise.

As expected, competition is another relationship that is based on an action-

reaction pattern, which means that if a player launches a product or service, the other
competitors will definitely launch a similar, if not the same product with some
developments. Because of this, interaction is usually simple and direct. Dependence and
power are also equally distributed but are also based on their position in the ecosystem

Lastly, a new relationship has existed. It is called co-opetition. Simply. it

means cooperation between competing players. This relationship includes economic and
other forms of exchanges. Usually, power is on the cooperative side of the relationship
which is based on how it functions in the ecosystem. The competitive side, meanwhile,
highlights that power is dependent on the player's position and strength. Dependence
usually arises in two ways. When there is cooperation. dependence usually takes the form
of formal agreements or trust. However, when there is competition, dependence is again
related to the player's strength and position in the network. With goal setting,
competitors cooperate as it is stipulated in their formal agreement that this will be done
jointly.

This is why key players in the industry need to have an assortment of different
relationships which depends on how they are set in the present environment. Because of
this, the content of a relationship can varies from time to time. Also, relationships can
grow stronger, eliminating weaker relationships. Usually, this has no clear pattern or
cycle and is highly dependent on the players.

Other Stakeholders and Relevant Groups

Aside from the factors previously mentioned, several other groups also affect how the
future of the tourism and hospitality industry will be shaped.

1. Resource Suppliers

A company cannot continue its operation without raw materials, equipment,

and other supplies. This is actually not limited to the manufacturing sector, but is also
an important requirement in service operations, as we established already the concept
of service product. The availability of the resource supplier can also affect the smooth
operations of the company. This is also why there is seasonality in some service
operations, as well as the offering of some products, especially food items. Somehow, a
disruption in the operation of the resource supplier will ultimately affect the company.
Thus, companies in the tourism and hospitality industry usually identify a selection of
existing backup suppliers, which somehow subjects companies to increased costs due to
price gouging. Aside from the common reasons, this situation usually arises because of
a natural hazard.

28
2. Capital Suppliers

Another player that we need to consider is the suppliers of capital. Now that
the capital market is international and electronic transfers are now available, suppliers
can now move at a faster pace, which makes a company vulnerable. A company may
need to spend more time forecasting the availability of this valued resource. Because
capital availability is crucial, a company's decision-making should be exact so as not to
dampen the entire operations. The stock market now has a great impact
on how certain industries, including tourism and hospitality, go around.

3. Labor Supply

As the pool of skilled employees is also of utmost importance, as they also

shape the market, Chapter 4 discusses issues on staffing and employee concerns.
Without a stable labor supply, the tourism and hospitality operations will be greatly
affected as they drive the operation itself. There will be no one to man the operations and
will fill the empty slots of the retired employees.

29
 ACTIVITY/EXERCISE

Case Analysis

Reality Bites

Hotel DAVC, designed by popular local architects, boasts of its stylish design and
enjoys the harbor view of Manila Bay. It showcases a rooftop heated pool, pampering spa
services, and a gym. The hotel is a three-minute walk from a train station. The shopping
district is also 10 minutes away via train. Shuttle service between the other hotels runs
every 30 minutes. It also offers one hundred percent (100%) electric transportation as
part of its green marketing strategies that can be booked prior to arrival. The chic guest
rooms feature free Wi-Fi and stun in bright-colored palettes Targeting foreign guests,
the room also features free international calls, a FREE fully stocked minibar, and a
smartphone with unlimited data for traveling in the city. Inside the room, the guest will
see the hotel management's concern for the environment as direct drinking water is
dispensed through the room tap to avoid the use of plastics. The hotel also features a
fitness center, a spa, and an infinity pool. For business travelers, a well-equipped
business center and concierge service are made available. The LMGC Restaurant serves
light food on a green veranda, featuring indoor plants, while dishes are served by
international chefs.

Instruction: After reading and carefully analyzing the given case, create a video
reflection regarding the case and answer the following questions (50 points). A
rubric will be the criteria to check your work. These activities will be recorded as part of
your performance task.

1. Are the strategies for guest comfort a highlight in this hotel? Explain how.

30
 Rubric for assessment

CRITERIA HIGHEST POSSIBLE

SCORE
Content
The speaker provides a variety of types of 20 pts
content appropriate for the task, such as
generalizations, details, examples and various
forms of evidence. The speaker adapts the
content in a specific way to the listener and
situation.

Delivery
The speaker delivers the message in a 20 pts
confident, poised, enthusiastic fashion. The
volume and rate varies to add emphasis and
interest. Pronunciation and enunciation are
very clear. The speaker exhibits very few
disfluencies, such as "ahs," "uhms," or "you
knows."
Organization
The message is overtly organized. The speaker 10 pts
helps the listener understand the sequence
and relationships of ideas by using
organizational aids such as announcing the
topic, previewing the organization, using
transitions, and summarizing.
TOTAL 50 pts

31
 ACTIVITY/EXERCISE
Experiential Exercises

Direction: With the food service establishments that you have dined at before, reflect
on the strategies they adopted to be able to push through with their operations amid
different circumstances and different markets. Write down a narrative differentiating
their strategies. The rubric will be used to check your work, and this will be recorded as
part of the performance task (50 points).

Rubric for assessment

CRITERIA HIGHEST POSSIBLE

SCORE
Content
The presence of ideas developed through 20 pts
facts, examples, details, opinions, statistics,
reasons and for explanation.

*2pts deduction for each item not observed

Focus
The single controlling point made with an 20 pts
awareness of task about a specific topic

*2pts deduction for each item not observed

Organization
Presents information in logical, interesting 10 pts
sequence which reader can follow.

*2pts deduction for each item not observed

TOTAL 50 pts

32
 POST-TEST

Direction: Kindly click the link for your post-test.

https://docs.google.com/forms/d/1DaNnRZXmtJA2p_Zb7ywtdb0v61S1Y51KCkypeP0
VsH0/prefill

33
References:

Cornell, Daryl Ace V. Ph.D., CGSP. Manzano, Ronald G. DBA (2020) Quality Service
Management in Tourism and Hospitality.

Liping A. Cai, Pooya Alaedini (2018). Quality Services and Experiences in Hospitality
and Tourism. Emerald Publishing Limited.

Robert C. Ford, Michael C. Sturman, Cherrill P. Heaton (2011). Managing Quality

Service in Hospitality. Delmar Cengage Learning

Serrano, Angelita PhD (2013). Total Quality Management. Unlimited Books Library
Services and Publishing Inc.

Connie Mok, Beverley Sparks, Jay Kadampully (2013). Service Quality Management in
Hospitality, Tourism, and Leisure. The Haworth Hospitality Press, Inc.

Disclaimer: This Module is prepared for instructional purposes only based on the
course syllabus. The teacher who prepared this module does not claim ownership on its
contents, but patterned the ideas from different sources.

34
 Congratulations for completing this module!

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WPU-QSF-ACAD-82A Rev. 00 (09.15.20)
 Vision 2020
WPU: the leading knowledge center for sustainable
development of West Philippines and beyond.

Mission
WPU commits to develop quality human resource and green
technologies for a dynamic economy and sustainable
Development through relevant
instruction, research and extension
services.

Core Values (3CT)

Culture of Excellence
Commitment
Creativity
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WPU-QSF-ACAD-82A Rev.
WPU-QSF-ACAD-82A Rev. 00
00 (09.15.20)
(09.15.20)