HRM 136: Quality Service Management in Tourism & Hospitality

Student Activity Sheet Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Lesson title: Meeting Guest Expectations through Planning Part 1: Materials:

Strategies in Positioning Products and Services SAS
Lesson Objectives:
At the end of this module, I should be able to: References:
1. Identify the three strategies that are advantageous for Total Quality Management for
positioning products and services Hospitality and Tourism by
2. Connect these strategies in providing quality service Robert, Sturman & Heaton
https://www.investopedia.com
COC Teacher’s Guide

Productivity Tip: If you don’t feel like doing work, set a timer for two minutes. Then tell yourself that you
just need to focus for that amount of time. Chances are that once you’ve started work, you’ll continue
even after the two minutes are up.

A. LESSON PREVIEW/REVIEW
1) Introduction (2 mins)
How are you today students? I hope everything is well. Do you know that one way high performing
organizations are able to provide quality service to their guest is to conduct intensive planning? To give
the guest what they expect requires research to determine exactly what those expectations are.
Translating those expectations into a service product that aligns or fits the organization’s mission and
values takes detailed planning, forecasting and sound judgement. Managers of excellent hospitality
organizations try to mix all three together into a strategy that allows them to give guests exactly what
they expect. So today, let us go through strategies applied in our industry that has helped a lot of
tourism and hospitality organizations to successfully retained their positions and name in the market.

2) Activity 1: What I Know Chart, part 1 (3 mins)

Do you know anything about Service Quality Management? Try answering the questions below by
writing your ideas under the first column What I Know. It’s okay if you write key words or phrases that
you think are related to the questions.

What I Know Questions: What I Learned (Activity 4)

1 What is product
differentiation?

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 HRM 136: Quality Service Management in Tourism & Hospitality
Student Activity Sheet Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

2 What is competitive pricing?

3. What is a market niche?

B.MAIN LESSON
1) Activity 2: Content Notes (13 mins)

Planning and strategizing help organization to have a sense of direction and focus. If the guest
expectations were met and exceeded, there is always a guarantee that the guest will return. The service
strategy is the organization’s plan for providing the experience that guests expect.

Three Generic Strategies for Positioning Products and Services

1. Competitive Pricing (Lower-price)

Competitive pricing is the process of selecting strategic price points to best take advantage of a
product or service-based market relative to competition.

Organizations who offer lower price tries to design and provide pretty much as the same service
that their competitors sell, but at a lower price. Management’s focus is on maximizing operational
or production efficiencies to minimize the organization’s cost.

Example: Airlines focused on reducing the cost running the airline to achieve the
lowest production cost per mile in the industry.

Budget Airlines or Low-Cost carriers in the Philippines like Cebu Pacific and Air
Asia offer significantly cheaper flights than full-service airlines like PAL, with
several trade-offs when it comes to cabin legroom and customer service.

Companies employing the low-price strategy must recognize that they reduce prices to customers

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 HRM 136: Quality Service Management in Tourism & Hospitality
Student Activity Sheet Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

by reducing their own costs, the deterioration of the guest experience that results may decrease
the value of the experience to guests and drive them to competitors. Although some are still able
to offer excellent customer service.

For example: Jollibee is cheaper than Burger King but still offer excellent service
and good food.

2. Product Differentiation (making your product unique)

Product differentiation is a marketing strategy that strives to distinguish a company's products
or services from the competition.

All hospitality organization practice product differentiation to an extent; all want to be perceived
as offering a service product – the guest experience itself – that is different in ways their customers
find favorable. Many try to attract guests by emphasizing these differences rather than offering
low price.

Differentiating one’s product in the marketplace results from creating in the customer’s mind
desirable differences, either real or driven by marketing and advertising, between the product
and other available at about the same price.

Ice Hotel in Sweden offer accommodation

and services just like every other hotel
offers but the guests will experience a
unique accommodation because
everything in the hotel is made of ice from
bed, chairs, tables, chandelier and more.

Companies do try to differentiate themselves in

the marketplace by advertising that can create a
brand identity that is valued by the targeted
customers offering special amenities, promos
and offers that are attractive to that market
segment.

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 HRM 136: Quality Service Management in Tourism & Hospitality
Student Activity Sheet Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

A major way to differentiate one’s service from competitor is through the creation of a strong
brand image. A brand represents a promise to guests of what quality and value of experiences
associated with that brand will offer them, every time and everyplace they see the brand.

Singapore airlines is of the most respected travel brands

around the world. Flying one of the youngest aircraft
fleets in the world to destinations spanning a network
spread over six continents, the Singapore Girl is an
internationally-recognizable icon providing the high
standards of care and service that customers have come
to expect of Singapore Airlines.

A niche market is the

3. Finding a Niche (niche market or market niche)
Organizations find and fill a particular market niche or gap. It can subset of the market on
focus on a specific part of a total market by offering a special which a specific product is
appeal – like quality, value location, or exceptional service. To focused.
attract customers in the market segment.

Hospitality companies have sought niches that will appeal to specific groups of potential
customers.

For example, the niche tour industry now includes specialty tours focused on people who want
to combine a tour experience.

Pilgrimage tour for Christians For Family / Group travels For outdoor enthusiasts

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 HRM 136: Quality Service Management in Tourism & Hospitality
Student Activity Sheet Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Other examples for competitive market niche:

• Competitive positioning of Jollibee in the budget segment for casual-dining/fast-food
dining.
• Cebu Pacific airline offering promo fares (like piso fare) allowing more travel enthusiast
to travel domestically and internationally.

Combined Strategies
The strategies discussed are not equally exclusive, the strategies are also combinedly practiced by some
companies depending on which they prefer or believe to work for their company.

Providing Superior Service Quality and Value

These three strategies (1) Competing on Price, (2) Finding a Niche and (3) Differentiating may each work
for a while, but they also have potential shortcomings. Low-Price providers will eventually face
competitors who will undercut their prices. Companies who have successfully targeted a niche will also
eventually face competitors who will copy their products and services.

Many successful service organizations have found that the best way to succeed in the long term is to
differentiate on the basis of superlative service quality and value. Provide better service and value than
the competitors does, and they can’t beat you. To well-known management writers like Tom Peters
quote, “You can knock-off everything except awesome service.”

2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking)
Exercise 1. Answer this activity by recalling experiences as a guest in hotel, restaurant, airlines,
amusement/theme park, etc. Try to compare your experiences by comparing it to another
establishment offering the same product and services. Example Compare your experience in dining
at Restaurant from affordable Restaurant “A” from High-end Restaurant “B”.

This document is the property of PHINMA EDUCATION

 HRM 136: Quality Service Management in Tourism & Hospitality
Student Activity Sheet Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Exercise 2. Let’s try to check if you can identify these brand logos of companies known to have
strong brand images. Write the names of these companies in the blank space provided.

Exercise 3. Name any hospitality organization with strong brand names and discuss which
strategy/strategies used. Please do not use the examples in the lesson discussed.

3) Activity 4: What I Know Chart, part 2 (2 mins)

You’re almost done! It’s time to answer the questions in the What I Know chart in Activity 1. Log in
your answers in the table.

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 HRM 136: Quality Service Management in Tourism & Hospitality
Student Activity Sheet Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

4) Activity 5: Check for Understanding (5 mins)

Enumerate the three strategies discussed in class and define each.

1.

2.

3.

C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
A. Work Tracker

You are done with this session! Let’s track your progress. Shade the session number you just
completed.

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 HRM 136: Quality Service Management in Tourism & Hospitality
Student Activity Sheet Module #5

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

B. Think about your Learning

Did you have challenges learning the concepts in this module? If none, which parts of the module helped
you learn the concepts?

_____________________________________________________________________________________________________________

Some question/s I want to ask my teacher about this module is/are: ______________________________________

_____________________________________________________________________________________________________________

FAQs
1. What are the top 5 airlines in the world that are known for their quality service and facilities?
Qatar Airways
Singapore Airlines
Cathay Pacific Airways
Emirates
Eva Air

2. Why is branding important?

Beyond just a memorable logo, good branding increases the value of a company, provides
employees with direction and motivation, and makes acquiring new customers easier

KEY TO CORRECTIONS
Answer key for Exercise 2.
Philippine Airlines (PAL) Marriott
KFC (Kentucky Fried Chicken) Cebu Pacific
Shangri La Dunkin Donuts
Starbucks

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