OPERATIONS MANAGEMENT AND TOTAL QUALITY MANAGEMENT

Case Study

Formule 1
Formule 1 Hotels are high-contact operations – they are staff- intensive and have to cope with a range
of customers, each with a variety of needs and expectations. So, how can a highly successful chain of
affordable hotels avoid the crippling costs of high customer contact? Formule 1, a subsidiary of the
French Accor group, manage to offer outstanding value by adopting two principles not always
associated with hotel operations – standardization and an innovative use of technology. Formule 1
hotels are usually located close to the roads, junctions and cities which make them visible and accessible
to prospective customers. The hotels themselves are made from state-of-the-art volumetric
prefabrications. The prefabricated units are arranged in various configurations to suit the characteristics
of each individual site. All rooms are nine square meters in area, and are designed to be attractive,
functional, comfortable and soundproof. Most important, they are designed to be easy to clean and
maintain. All have the same fittings, including a double bed, an additional bunk-type bed, a wash basin,
a storage area, a working table with seat, a wardrobe and a television set. The reception of a Formule 1
hotel is staffed only from 6.30 am to 10.00 am and from 5.00 pm to 10.00 pm. Outside these times an
automatic machine sells rooms to credit card users, provides access to the hotel, dispenses a security
code for the room and even prints a receipt. Technology is also evident in the washrooms. Showers and
toilets are automatically cleaned after each use by using nozzles and heating elements to spray the room
with a disinfectant solution and dry it before it is used again. To keep things even simpler, Formule 1
hotels do not include a restaurant as they are usually located near existing ones. However, a continental
breakfast is available, usually between 6.30 am and 10.00 am, and of course on a ‘self-service’ basis!

Anantara Bangkok Riverside Resort & Spa

I n Sanskrit the word means ‘without end’, and Anantara really does evoke, as its publicity states, the
freedom, movement and harmony that are the spirit of the ‘Anantara experience’. The Anantara
Bangkok Riverside Resort and Spa, which is a member of the exclusive ‘Small Luxury Hotels of the
World’, is to be found luxuriating in 11 acres of tropical gardens beside the Chao Phraya River just 3
kilometers from the center of Bangkok. Its concept is about providing guests with laid-back luxury,
sensitive service, with an experience of local culture. The resort’s owners say that it draws its strength
from the rich cultural traditions, historic heritage and natural beauty of its destination; every customer
experience being a ‘unique voyage of discovery and inspiration that is distinctly Anantara’. It employs
over 550 staff and has 407 spacious rooms and suites decorated in a Thai style making use of colorful
Thai silks, hardwood floors and fine furniture. All rooms have internet access, TVs and DVD players
with iPod docks and private balconies that have spectacular views over the city, garden or river. The
hotel’s ten restaurants and bars serve local, international and fusion cuisines. The outdoor tropical pool
and Jacuzzi provide areas for enjoyment and relaxation. Should any guests want to venture outside the
luxury, the hotel also offers river cruises in converted rice barges, supervised activities for children,
and Thai cooking classes. A frequent complimentary boat service takes guests to the Sky Train and the
heart of the city. An alternative to city center shopping is provided in the mall adjacent to the hotel.
Hotel.

Questions:
A. Why is operations management important in the two hotel examples?
B. Identify the similarities and the differences noted in the two given examples.
C. List down the services offered by the two hotels
D. What would you recommend to the two hotels if they asked you to advise them in
improving their operations?
E. With the current operations, who among the two hotels do you think has a much better
operation?