THC 40

Quality Service Management in Tourism and Hospitality 1

UNIT 1: Quality Service Management in Tourism and Hospitality

The hospitality and tourism industry is the largest and fastest
growing industry in the world today. An exciting aspect of this
industry is that it is made up of so many different professions. As
diverse as the hospitality industry is, there are some powerful and
common dynamics, which include the designing and delivering
quality products and services with distinctive excellence which
enables the hotel to exceed guest’s expectation. The purpose of
hospitality is to enhance the lives of guests through quality service.

Quality Guest Service is the consistent delivery of products and services which not only meets the
expectations but also exceeds the expectations of guests. It
focuses on providing delightful hotel experiences that may last a lifetime.

UNIT OUTLINE:
 Overview of quality service management
 Dimensions of quality
 Notable people in service quality

LEARNING OBJECTIVES:
After reading this unit, students must have:
 described quality service management;
 distinguished and discussed the dimensions of quality; and
 determined and applied service quality introduced by notable people.

OVERVIEW OF QUALITY SERVICE MANAGEMENT

Service Quality Management/ Quality Service Management

The process of managing the quality of services delivered to a customer according to his
expectations is called Service Quality Management. It basically assesses how well a service has
been given, so as to improve its quality in the future, identify problems and correct them to
increase customer satisfaction. Service quality management encompasses the monitoring and
maintenance of the varied services that are offered to customers by an organization.

Service Quality Management in Hospitality, Tourism, and Leisure brings together an array of
pertinent materials that will measure and enhance customer satisfaction and help you provide
superior hospitality services, and groups them in easy-to-use clusters for quick reference.

Quality Service management in the hospitality industry is the consistent delivery of service
that meets the high standards set by the corporation or owners of a hotel. Guests expect
quality service and reward it with loyalty and referrals.
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Goods and Services

The hospitality industry is comprised of various sectors that house, feed, transport, and entertain
visitors. Each sector covers a broad range of fields, providing a distinct variety of goods and services.
It’s important to note that while separate from one another, they can often overlap and work in
conjunction to create one complete and comprehensive hospitality experience.

What is a service in tourism?

Tourism and travel-related services include services provided by hotels and restaurants
(including catering), travel agencies and tour operator services, tourist guide services and
other related services. A crucial aspect of trade in tourism services is the cross-border
movement of consumers

What are goods in tourism?

As defined by UNWTO, a Tourism Product is "a combination of tangible and intangible
elements, such as natural, cultural and man-made resources, attractions, facilities, services
and activities around a specific center of interest which represents the core of the destination
marketing mix and creates an overall visitor ...

There are four key differences between goods and services. According to numerous scholars (cited in
Lovelock & Patterson, 2015) services are:

Intangibility
Tangible goods are ones the customer can see, feel, and/or taste ahead of payment. Intangible
services, on the other hand, cannot be “touched” beforehand. An airplane flight is an example
of an intangible service because a customer purchases it in advance and doesn’t “experience”
or “consume” the product until he or she is on the plane.

Heterogeneity
While most goods may be replicated identically, services are never exactly the same; they are
heterogeneous. Variability in experiences may be caused by location, time, topography,
season, the environment, amenities, events, and service providers. Because human beings
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factor so largely in the provision of services, the quality and level of service may differ between
vendors or may even be inconsistent within one provider.

Inseparability
A physical good may last for an extended period of time (in some cases for many years). In
contrast, a service is produced and consumed at the same time. A service exists only at the
moment or during the period in which a person is engaged and immersed in the experience.
When dining out at a restaurant, for instance, the food is typically prepared, served, and
consumed on site, except in cases where customers utilize takeout or food courier options
such as Skip the Dishes.

Perishability
Services and experiences cannot be stored; they are highly perishable. In contrast, goods may
be held in physical inventory in a lot, warehouse, or a store until purchased, then used and
stored at a person’s home or place of work. If a service is not sold when available, it disappears
forever. Using the airline example, once the airplane takes off, the opportunity to sell tickets
on that flight is lost forever, and any empty seats represent revenue lost

These products can be either in the form of goods or services. Goods are tangible, as in these have
a physical presence and they can be touched, while services are intangible in nature. The purpose
of both goods and services is to provide utility and satisfaction to the consumer.

Quality Service
Quality pertains to skill or the ability to anticipate, assure and satisfy the needs of the
customers every time. An organization that has consistency in meeting the needs of guest is
considered to be of high quality. Successful hotels today differentiate themselves from their
less successful counterparts with an ongoing and significant emphasis on guest service.

Today's hotel guests desire good service, and they are willing to pay for it. Effective managers,
continually ask this question: "What is best for our guests?" One of the primary
responsibilities of managers is to address this question, and the effort is never completed
because guests' needs change over time. If managers make decisions considering their
guests' needs a priority, their hotel is likely to be successful.

Practicing Quality service requires that you are good at procedural service as well as
personalized service. One is not sacrificed for the sake of other. Both are emphasized and
practiced. Beginning a quality journey can be time-consuming, especially because planning
and revisions to work processes must be done alongside daily work responsibilities.

Providing high quality service is all about exceeding the customer’s expectations and making
them feel like they got their money’s worth. It boils down to making them feel good and
building the customers confidence in your hotel.
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This is known as customer satisfaction, which is based on feelings. Although we’ve placed
tremendous importance on improving the level of customer satisfaction and measuring it,
service quality does not seem like such an intangible concept. In fact, there are different
measurement instruments, systems and definitions of what service quality actually is.

Service quality plays an irreplaceable role in many industries, such as hotel or tech companies.
These industries strive to build better and high level rapport with their customers because
service is a unique signature that strongly affects perception. Sometimes, it’s the only thing
that differentiates one competitor from another.

An important question is how do you measure quality? While there are plenty of tools out
there to measure quality, I’d like to give a short, concise version to get a simple point across.
Hotels traditionally rely on comment cards, online surveys, TripAdvisor reviews to measure
NPS.

This is also a means to co-relate these results directly with an employee’s performance. Any
feedback from a guest is a gift – but the downside here is receiving it when it’s too late to do
anything about it. This is also another place where ALICE can help to track this information
during guest-staff interactions.

Quality service is what separates you from your competition. The goal of top-quality service is
total customer satisfaction. When your customers are happy they will tell others about you
and when they are not happy they will also tell others about you. That is why positive word-
of-mouth advertising is super important to any business!
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Service quality is a complex and ephemeral concept. It is recognized by businesses

that improving service quality is an essential strategy for success and survival in
today’s competitive economic environment.

Why is high service quality important? The main reasons why high servi ce quality is
important to an organization are:

• It boosts sales. Customers that perceive a company's services as being high quality are more
likely to do business with that company. Also, customers who buy from companies with high
service quality are more likely to continue buying from those companies regularly.
• It saves marketing money. Retaining existing customers by offering them high-quality services
is typically less expensive than attracting new ones.
• It can attract quality employees. Highly performing professionals generally prefer to work for
companies with high service quality.
• It can lead to repeat business. Customers who see their issues and complaints swiftly and
efficiently resolved by a company's customer service department may be more likely to buy
from that company again in the future.
• It strengthens the company's brand. The reputation of a company with above-average service
quality can boost sales by attracting new customers or retaining existing ones.
• It eliminates certain barriers to buying. High service quality can convince a hesitant customer
to make a purchase, as they know that if the service is not right for them, they can rely on
strong customer service to remedy the situation.

According to Haddad (2016) the benefits of top quality service include

• Greater customer loyalty

• More referrals
• Repeat purchases
• Lower sales/ marketing costs
• Higher profit margins without losing customers
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FIVE DIMENSIONS OF SERVICE QUALITY

Every industry has different service quality standards. After all, you don’t expect the same type of
service from a hotel and a retail store. And service quality also varies by brand promise, as a five-star
resort has very different expectations than a roadside motel.

• TANGIBLES-Appearance of physical facilities, equipment,

personnel, and communication materials
• RELIABILITY-Ability to perform the promised service dependably
and accurately
• RESPONSIVENESS-Willingness to help customers and provide
prompt service
The 5 Service Dimensions Customers Care About • ASSURANCE-Knowledge and courtesy of employees and their
ability to convey trust and confidence
• EMPATHY-Caring, individualized attention the firm provides its customers

The five service quality dimensions are tangibility, reliability, responsiveness, assurance, and empathy
(Klokenga, 2020).

Tangibility
 This is an organization's ability to portray service quality to its customers. There are many
factors that give a company highly tangible quality, such as the appearance of its headquarters,
its employees' attire and demeanor, its marketing materials and its customer service
department.
 Tangibility is the appearance of physical facilities, equipment, personnel, and communication
materials.
 Customers tend to expect clean and professional facilities and shops, employees who look
groomed and neat, and well-written and designed materials such as menus, websites, and
signs. Attention to appearance can indicate that your company takes customer comfort
seriously.
 While appearance is not the most critical aspect of service, it does make a difference in how
customers perceive your business, especially if your brand promises a premium or luxury
experience.

Reliability
 This refers to an organization's ability and consistency in performing a certain service in a way
that satisfies its customers' needs. This process involves every step of customer interaction,
including the delivery or execution of the good or service, swift and precise problem resolution
and competitive pricing. Customers have a certain expectation of reliability in buying a specific
product, and a company's success usually depends on its ability to meet those expectations.
 Reliability is the ability to perform the promised service dependably and accurately.
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 Consistency is a critical factor for providing assistance or product to the customers on time
with error-free conditions. You have to respect the commitment to give your service on time
accurately as you promised to them.
 Doing what you say you’re going to do when you say you’re going to do it is essential to
pleasing your customers. They want to rely on your business to deliver a working product or
effective service, to get help when they need it, and for all of this to happen in a timely fashion.
 Customers want to count on the businesses they buy from - that’s at the heart of this
dimension.

Responsiveness
 This is a company's dedication and ability to provide customers with prompt services.
Responsiveness implies receiving, assessing and swiftly replying to customer requests,
feedback, questions and issues. A company with high service quality always responds to
customer communication as soon as possible which can often indicate the value a company
places on customer satisfaction.
 Responsiveness is the willingness to help customers and provide prompt service.
 Responding quickly to customer questions and concerns is vital, especially in today’s fast-
paced world. Responsiveness even applies when customers are slow in responding to you.
Answer swiftly to, at the very least, let customers know that you’re working on their request.
 Responsiveness lets your customers know that you’re listening to them and working actively
to solve their problems.
 Responsiveness refers to the eagerness to assist customers with respect and provide quick
service to satisfy. This dimension focuses on the two essential factors, including willingness
and promptness. So, you have to ensure that the customer is getting their service quickly
without delay and make the customers feel that you are very interested in helping them.
Responsiveness will be defined by the length of time when customers wait for the answer or
solution. In short, responsiveness solves the customer problem as soon as possible by
providing expected information or replacing products.

Assurance
 Assurance is the confidence and trust that customers have in a certain organization. This is
especially important with services that a customer might perceive as being above their ability
to understand and properly evaluate, meaning that there has to be a certain element of trust
in the servicing organization's ability to deliver.
Company employees need to be mindful of earning the trust of their customers if they want
to retain them.
 Assurance is the knowledge and courtesy of employees and their ability to convey trust and
confidence.
 Assurance means creating trust and credibility for the customers. It depends on the
employee’s technical knowledge, practical communication skills, courtesy, credibility,
competency, and professionalism. Therefore, these skills will help the organization gain
customer trust and credibility.
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 Customers expect businesses to be the experts in the service they deliver. Communicating that
expertise to customers helps reassure them that they can trust you, whether you accomplish
this by displaying credentials and industry certifications or customer testimonials.
 Assurance is significant when customers have many options but aren’t sure who to trust when
purchasing. Suppose you run an ecommerce store, for example. In that case, customers are
bombarded regularly with ads from potentially untrustworthy online shops all day, so you
need to determine how to set yourself apart and gain consumer trust.

Empathy
 Empathy is how an organization delivers its services in a way that makes the company seem
empathetic to its customers' desires and demands. A customer who believes a company truly
cares about their well-being is likely to be more loyal to that company.
 Empathy is the caring; individualized attention the firm provides its customers.
 Customers want to feel like they’re more than a transaction; they want to build a relationship
with your business. Even if you have the best product or services on the market, you can still
fall short of their expectations.
 Showing empathy to customers means ensuring your company showcases your care. Training
employees on how to provide excellent and empathetic service—where smiles and engaging
conversation occur regularly— can help you exceed expectations.
 Additionally, empathy is a combination of the following factors:
• Access (physical and social) – (For example, approachable and ease of contact).
• Communication – (For instance, keeping customers informed in a language they
understand and listening to them).
• Understanding the customer – (For example, making an effort to get to know
customers and their specific needs).
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NOTABLE PEOPLE IN SERVICE QUALITY

Walter A. Shewhart was an American physicist, engineer, and statistician. He is alsoknown as the
father of Statistical Quality Control and also related to the Shewhart cycle.

William Edward Deming was an American engineer, statistician, professor, author, lecturer, and
management consultant. 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).

Joseph M. Juran made many contributions to the field of quality management in his more than 70
active working years. His book, Quality Control Handbook, is a classic reference for quality engineers.
He revolutionized the Japanese philosophy on quality management and in no small way worked to
help shape Japan’s economy into the industrial leader it is today. Dr. Juran was the first to incorporate
the human aspect of quality management which is referred to as Total Quality Management (TQM)

Philip B. Crosby was a businessman and author who contributed to management theory and quality
management practices. He initiated the Zero Defects program at the Martin Company. As the quality
control manager of the Pershing missile program, Crosby was credited with a twenty-five percent
(25%) reduction in the overall rejection rate and a thirty percent (30%) reduction in scrap costs.

Armand V. Feigenbaum was an American quality control expert and businessman. He devised the
concept of Total Quality Control (TQC) which inspired Total Quality Management (TQM).

Kaoru Ishikawa is notable for rejuvenating the norm in the workplace. He always believed that 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. Thus,
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.

Genichi Taguchi was an engineer and statistician. From the 1950’s onward, he developed a
methodology for applying statistics to improve the quality of manufactured goods. Taguchi
methods have been controversial among some conventional Western statisticians, but others have
accepted many of the concepts introduced by him as valid extensions to the body of knowledge.

In services marketing and management, the following have made significant contributions
noteworthy to be recognized:

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.
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“Parsu” Parasuraman, Valerie 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.

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.

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.
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.

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.

Bruce Laval, an industrial engineer of the Disney Company, conceptualized the terms “guestology”
and the guest point of view (GPOV) when viewing service quality in the tourism and hospitality
industry.