First Edition, 2009

ISBN 978 93 80075 67 9

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Global Media
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 Table of Contents

1. Quality Management

2. Hospitality Service Quality

3. Sustainable Service Quality

4. International Hospitality Forum

 Quality Management in the Hospitality Industry
If the hospitality industry is to continue to meet the challenges of 1990s and beyond, quality
management (QM) must become the way of life. Most customers are unwilling to pay for amenities they do
not want and will avoid those properties where high rates are not clearly related to value. To improve
services, hospitality organizations must focus on individual attributes and overall customer satisfaction.

QM in the Hospitality Industry

The research done in the area of QM implementation in the hospitality sector can be conveniently
grouped into four research streams. Only articles that appeared in scholarly journals (both academic and
practitioner) were considered for this grouping.
Research stream No. 1 deals with the definition and overview articles on QM in the hospitality sector.
Several research studies provide comprehensive definitions of the term QM in hospitality sector. The
overview articles, on the other hand, include a diverse range of topics such as important elements that
separate QM in the hospitality industry from QM in other industries, roadblocks to implementing QM and
comparisons of quality practices among different hotels and restaurants.
Research stream No. 2 covers the entire gamut of normative studies mainly earned out by
practitioners These deal with the importance of QM. both to the overall organization, as well as functional
areas of the organization It also provides normative suggestions for institutionalizing QM strategies in
hospitality organizations. Normative suggestions for QM include: the need for a proactive, rather than a
reactive approach to QM. steps for building a QM system, factors that must be considered in implementing
a QM programme in the hospitality sector, and examples of how corporations have successfully
institutionalized QM strategies and the benefits of implementing QM. This stream covers a medley of
studies whose mam thrust is to emphasize the importance of QM. Written largely by practitioners, these
studies are all conceptual in approach and without any kind of methodological rigour. However, one cannot
dismiss their contributions to the field because the authors, for the most part, speak from field experience.
 Research stream No. 3 is concerned with developing conceptual models for assessing and
implementing QM strategies. Several researchers suggest specific models and/or steps for implementing the
principles of QM or for selecting an effective set of measures for organizations practising QM. Even
though the models/steps suggested by the above authors are detailed, the main criticism against this stream
is that there has been little effort, to use existing theory to develop a comprehensive model of QM in
hospitality organizations.
Research stream No. 4, which can be the culmination of all research done in QM, deals with the
assessment and successful implementation of current practices of QM by hospitality organizations. Most of
the research under this stream, done through field studies, questionnaire surveys or case studies, illustrates
how QM can create a competitive advantage. The interrelationships among the four streams of research,
while provides a summary of literature on QM in hospitality organizations The different approaches to
implementing QM programmes by hospitality organizations, Organizations such as Days Inn, Hampton
Inn, Four Seasons, Hilton and Marriott, among others, have institutionalized QM programmes to deal with
higher customer expectations. These programmes encompass the basic principles of QM, as outlined by
quality gurus - Deming, Juran, Crosby and others.

Proactive Approach
The issues hospitality groups/hotels should consider when implementing a QM programme, from
start to implementation.
The inputs for this model were generated from the review of literature. The proposed model
comprises of five stages. The five stages of the model include: (a) awareness and commitment; (b)
planning; (c) programming; (d) implementing; and (e) evaluation.
(1) In the first phase of the model, the top management must develop a complete understanding of
what is QM and how they plan to achieve it.
(2) Once the understanding and commitment is made, in the second phase of the model, the
management should do the following: perform an internal quality assessment of the
organization to identify strengths and weaknesses, provide education to key personnel
(including physicians), set visions and objectives in writing, and design a new system.
Hospitality managers should take care to ensure that the organization’s culture is suitable to
foster QM. Its culture has to agree with basic QM values and visions.
(3) In the third phase, the management should name the process; state purpose through a new
quality framework; provide training to all levels of personnel; conduct internal and external
customer surveys to evaluate the current process and make necessary adjustments; formulate a
 quality council to oversee and regulate the QM process; perform competitive benchmarking to
compare its performance to other organizations; form quality improvement teams; and establish
measures and quality indicators which truly measure the objectives and goals of the
organization. When naming the process, every effort should be made to disassociate QM in the
hospitality industry with QM in other industries, since medical employees view themselves as
different from manufacturing employees.
(4) Finally, fourth phase, referred to as “implementation” should involve providing ongoing
education and training; forming new committees, new teams, new departments or hiring new
specialists to help the process as and when required; and recognizing and rewarding quality
improvements. Recognition can be a valuable tool in improving employee morale, self-interest,
and interest in QM. The reward system, however, must be managed carefully.
(5) The final phase of the model should involve evaluating success or failure of the QM
programme. This should be conducted annually. For example, if the programme is not
achieving its goals, it should be redesigned.
Future Directions
There are issues relating to QM in the hospitality sector which need to be addressed in the future.
Identifying issues for future research can be of immense value to both managers and academic researchers.
Managers can use this information to identify those areas where improvements should be made and
resources be allocated. For example, managers need to know the status of the organizational controllables
(in this case, the levers of QM) that they can manipulate to make organization-wide improvements in
quality performance. Also, comparisons of different organizations or divisions can be made to help
prioritize QM efforts. Researchers, on the other hand, can use this information to build theories and models
that relate these issues to the organization’s performance and environment. These concerns can be
categorized according to the four research streams discussed earlier.
Recommendations for research stream No. 1 deal with a definition and overview of QM and how it
relates to the hospitality sector. First, more research needs to be done to de’termine whether
implementation of QM is viewed as the responsibility of the owner, board of directors, franchisor or
franchisee. The primary users of QM should be the ones who direct implementation throughout the
organization. A second concern relating to research stream No. 1 pertains to identification and elimination
of the regulations, attitudes, policies, and practices which may be an impediment to continuous
improvement.
Research stream No. 2 pertains to normative studies conducted by experts in the field. Several issues
relating to this area deserve consideration in the future. First, studies needed to be undertaken to examine if
a dramatic time lag between the directive, training, and implementation will impede the effectiveness of
QM.
Changes in the ownership or key management personnel may detract from the continuity of any
programmes under implementation by a previous management. Future research should seek to determine
the effect of time lag between the onset of the programme and the final results, and senior personnel
turnover.
One more critical issue practitioners should address is the variance among QM implementation and
standards of quality within and among different hospitality chains (hotels). Attempts to standardize
performance and quality have been less than fully successful in the past.
As a result, quality standards, standard operating procedures, inspections and audits are not uniform
among the various hospitality chains, Determination of benchmarking procedures and their usage would be
helpful
There is a great potential for future study regarding research stream No. 3; for, to this date, very few
models linking QM and the hospitality industry have been developed A primary issue of concern is the
need for the “hospitality organization” to work perfectly on demand. Yet, sometimes there are operational
breakdowns. Models should be developed to determine where operating system breakdowns occur, why
they occur and how they can be prevented,
Second, a model for implementation of QM in the hospitality industry is a necessity. At present,
methods of implementation appear not to follow any specific guidelines except those in the directives. This
may also be a causal factor in the variance among standards mentioned earlier. The proposed model should
address the role of management, administrative staff, their subordinate teams and workers, and the impact
of ether suppliers and providers on QM programmes in hospitality operations. Furthermore, the issue of
measurements for processes should be addressed

There is ample opportunity and necessity for future studies in research stream No. 4. More
comprehensive and comparative case studies of successful implementation would be helpful to those who
are still struggling with this stage, Also, elaborate studies, which detail the steps in building a successful
QM system in the hospitality industry and which outline specific performance measures in evaluating
systems, are necessary. Data for such studies should be obtained from on-site observation, questioning and
performance of data analysis which will lead to hypotheses to be measured by questionnaires sent to hotel
managers who have been successful in implementing QM.
Hospitality Service Quality
THE CHALLENGE
Delivering quality service will be one of the major challenges facing hospitality managers in the
opening years of the next millennium. It will be an essential condition for success in the emerging, keenly
competitive, global hospitality markets. While the future importance of delivering quality hospitality
service is easy to discern and to agree on, doing so presents some difficult and intriguing management
issues.
Since the delivery of hospitality service always involves people, these issues center on the
management of people, and in particular on the interactions between guests and staff, interactions that are
called service encounters. In the eyes of our guests, our hospitality businesses will succeed or fail
depending on the cumulative impact of the service encounters in which they have participated.
It is easy to check the importance of managing these service encounters. Think back to the last time
you visited a hotel or restaurant. How did you feel about the quality of the experience? Was it one that you
would recommend to others? What were the specific interactions that made a difference? If you can’t
remember, is this something that should matter to the hospitality business concerned? Surely something
should have gone especially well?
Service encounters are the building blocks of quality hospitality service. How can hospitality
businesses manage them more effectively? We suggest a two step process in the evaluation of a service
chain.
First, hospitality managers should identify each encounter in the chain that they wish to take apart,
and then single out those that are of operational or strategic significance - in effect, focusing in on the few
encounters that really make a difference to guest experience and thus to the bottom line,
Second, apply what we have called the 6 S’s to improving these critical encounters through effective
redesign.
Let’s see how that would work in realistic situations.
While the first step may seem obvious, it is important to identify a service chain and then to break it
down into the component encounters. Just how much detail is needed? Too much detail takes time and
resources, and may confuse rather than clarify. Too little and we may miss important problems. The
process is iterative, with more detail needed in some areas and less in others, and with an overriding
consideration that the chain is assessed not just from the point of view of a manager but also from that of a
guest.
Which are the encounters that really matter? Those that add significant value to the guest, those that
cost in time or money, those that help to differentiate the business from its competitors, and those where
significant innovation is possible or occurring.
Hospitality service encounters run the gamut from those that are very trivial to those that are highly
critical. They vary greatly in their nature and may be simple or complex, standard or custom, low tech or
high tech, remote or friendly, low or high skill, frequent or occasional, and so on. They can be instrumental
dealing with the performance of necessary utilitarian activities or can involve emotion-laden hospitality
events.
An initial management task is to understand a service encounter by discerning and dealing with those
attributes that are most important to guests. In doing so, pertinent questions must be raised about the
specific service encounter(s) under consideration. With respect to a particular service encounter, hospitality
managers might raise many questions like the following:
• Exactly what happened?
• What were the guest reactions?
• Should it be done differently?
• What resources would assure optimal performance?
• What changes should be made?
• How can such changes best be put into effect?
The specific encounter(s) under consideration will, of course, indicate the kinds of questions that
should be pursued. It is important to obtain adequate information to understand the situation thoroughly.
Determining the context of a situation relating to a hospitality encounter that has gone wrong established
parameters for improvement.
All this is part of the second step. With the information at hand hospitality managers can organize,
and analyze the data and it is here that the 6S approach can help. These are:
1. Specification
2. Staff
3. Space
4. System
5. Support
6. Style
Specification means clearly detailing information about the what, when, where, and how, of service
encounters. It requires giving careful thought to the linkages between particular service encounters and
others in the service chain.
The starring point for hospitality service encounter analysis is specifying clearly the overall service
strategy and what it is designed to achieve. Is the purpose cost or service quality leadership? Is it to provide
unique service values, customized or standardized, complex or simple, frequent or occasional? Is it to
provide service at any reasonable cost? Is service limited to a luxury package, or does it include budget
travellers?
Which staff members are involved in providing the service? What skills do they need? What training
has been provided? How committed are they to service goals? Is team cooperation or individual
empowerment required? What attitudes are appropriate—friendly, open, helpful, warm service, or efficient,
unobtrusive, uninvolving, unthreatening service? What staff members deal with guests? How close are the
‘backroom’ staff to guests? Are staff presentations and appearances appropriate?
To what extent are guests involved in the provision of service? What skill, knowledge, information,
or experience do guests need to fulfill their roles? What are likely guest expectations? What communication
occurred between guest and service provider? Did the dynamics of the exchange proceed smoothly? Do any
language and cultural barriers exist?
Where will the service encounter occur? Is the space appropriately designed to facilitate the service
encounter? Is there adequate space to handle each of the activities such as waiting, completing forms,
storing or handling luggage, assembling tours? Is signage appropriate? Is the decor attractive to guests and
supportive of activities that have to be carried out?
Are the necessary systems to support the encounter in place? Is the information necessary to respond
effectively to guests’ needs readily available? Is the appropriate technology being fully used? Are the
interfaces between different functions such as housekeeping and front office, sales and front office, fully
operational? What measurements of quality, or performance, are in use? Are they the most helpful for both
service providers and managers? Are the criteria for success clearly defined? Is everyone involved aware of
guest needs and concerns?
 Are the service providers given the facilities and financial and human support needed to do the job?
Is the technology appropriate? Have employees been given the training needed? Are incentive and reward
systems geared to the tasks to be performed? Is supervision supportive? Does organization structure help or
hinder performance? Are the suggested procedures appropriate?
How should the service encounter be conducted, given the enterprise culture? Is the management
style, and marketing orientation, appropriate for the tasks? Do service providers have the appropriate
attitudes? Is the right emphasis being placed on service quality?
When hospitality managers have carried out this two step process they will be in an excellent position
to make decisions that will both improve the quality of hospitality services provided and guest perceptions
of them. Zeroing in on hospitality service quality in this manner will help hospitality businesses meet the
service challenges of the millennium, enhance their market positions, and reap the associated profit
rewards,
THE MEANS AND WAYS
The hospitality industry includes hotels and recreational facilities, travel, food, beverage, car, rental,
tours and entertainment services.
Some considerations in accessing these services:
Select the service which is convenient, comfortable, reliable, safe and economical.
(i) Seek advance information on available menu, services charges, item cost, privacy if needed,
and security.
(ii) In the event that the service is catered, examine the contents upon delivery. If contents are
unsatisfactory, return items promptly and seek replacement or refund,
(iii) Pay for only what you ordered. Check all bills for duplication and other discrepancies.
(iv) Consider the savings possible if you provided the service yourself.
(v) Where hotel rooms, airfares, travel and car rentals are concerned, always make confirmations
on availability and prices well in advance.
(vi) Obtain a second opinion or pre-view on entertainment content and recreational facilities before
spending on bookings.
Quality Service: What Every Hospitality Manager Needs to Know
All practising and future hospitality managers, for providing high-quality customer service, must
focus on following features:
• Application Interaction Exercises appear in each chapter
• Numerous illustrations and examples
• Student Study Guide
• Instructor’s Manual
• A six-step process
Quality Service applies to the entire spectrum of hospitality, including restaurants, hotels, clubs,
theme parks, travel, and tourism, and includes as many examples from the various sectors of the industry as
possible. These examples—along with numerous exercises and a multitude of figures—are what make this
text directly applicable to the real world of hospitality.
The major focus should be on the following issues:
1. What Quality Service is and What You Can Do about it
 2. Customer Expectations: The Procedural Side
3. Customer Expectations: The Personal Side
4. Creating a Quality Service Culture and Supportive Leadership Climate
5. Defining What Quality Service is for You
6. Weaving Quality Service into Your Operation
7. Assessing Progress and Rewarding Successes
8. Maintaining Quality Service with Continuous Quality Improvement
MANAGING REAL AND VIRTUAL WAITS
Nearly all service and hospitality experiences require customers to wait at some point in the service
process. Unless the provider of the service has unlimited capacity or can precisely match customer demand
to available capacity, customers will be forced to wait for the experience they seek. Although waiting is an
expected part of many services (say, gracious dining), for most customers waiting is an annoyance to be
minimized or avoided. Waiting can also cause customer dissatisfaction that can greatly influence the intent
to return whenever that service experience is sought again. To minimize the negative aspects of waiting,
managers have available the following three strategies. The first is to manage the reality of the actual wait
through the use of techniques that can help better match capacity with customer demand. The second is to
manage the perception of the wait by responding to how customers perceive the wait. The third, and most
innovative, is to make the wait invisible through developing virtual queues, which allow customers to
participate in other activities while they wait for an appointed time at their desired activity.
IMPROVING TOURISM AND HOSPITALITY SERVICES
 Consumer satisfaction is a key issue for all those involved in tourism and hospitality services.
Through a multitude of case studies one needs to explore the challenges of managing tourism and
hospitality businesses in order to produce maximum customer satisfaction. It needs to outline the various
frameworks available for the study of tourist satisfaction, before examining service delivery systems and
definitions of quality. It should also then discuss the role that marketing can play in tourism and hospitality
services, and the ways in which hospitality and tourism services can be improved. The focus should lie on
examples of customer dissatisfaction, and examples of organisations that have succeeded in providing
profitable services with high levels of customer loyalty.
The major efforts should concentrate on:
• Service Quality in Tourism and Hospitality
• Tourism and Hospitality Service Quality Research
• Analysing Service Experiences in Tourism and Hospitality
• Tourism and Hospitality Service Delivery Systems
 • Service Quality and Tourist Satisfaction
• Marketing Tourism and Hospitality Services
• Improving Tourism and Hospitality Services
• The Management of Tourism and Hospitality Organizations
HOSPITALITY QUALITY SERVICES: CASE STUDY OF RADISSON HOTELS
Radisson Hotels Worldwide recently pilot tested a service guarantee in twenty-eight of its hotels. The
pilot hotels implemented the guarantee with a complete training programme but with no advertising. The
guarantee read simply:
The response in the pilot hotels was amazing. In just three months, many of Radisson’s service
quality performance metrics in these hotels improved significantly. Customer satisfaction, measured by
Radisson’s own metrics and by a market research firm, showed increased “willingness to return” and
“percent advocates.” Radisson also found that the guarantee decreased employee turnover, increased
utilization, and increased profitability for the pilot hotels. A group of researchers at the University of
Minnesota administered a survey to both management and front-desk hotel employees before and after the
guarantee was implemented in the test hotels. The survey found statistically significant correlation between
a new service quality metric called “employee motivation and vision” (EMV) and Radisson’s service
quality performance metrics. This relationship suggests that EMV should be considered a service quality
performance metric.
Radisson’s Strategic Business Context
Company background
Founded in 1938 by Mr. Curtis L. Carlson, Carlson Companies, Inc. is one of America’s largest
privately owned corporations with total system sales of $13.4 billion in 1996 and $20 billion in 1997.
Carlson Companies employs about 130,000 people worldwide, including those who work in franchised and
managed operations, Headquartered in a suburb of Minneapolis, Minnesota (USA), the company is
organized into four operating groups—Carlson Hospitality Worldwide, Carlson Wagonlit Travel, Carlson
Marketing Group, and Carlson Leisure Group.
Radisson Hotels Worldwide and its parent, Carlson Hospitality Worldwide, include more than 500
lodging locations in 49 countries, as well as four cruise ships sailing worldwide. Other Carlson Hospitality
Worldwide operations include Regent Worldwide Hotels, Radisson Seven Seas Cruises, Country Inns &
Suites By Carlson, T.G.I. Friday’s, Italianni’s, Friday’s American Bar, Friday’s Front Row Sports Grill,
and the Carlson Hospitality Worldwide Procurement Division.
Strategic Context
Under the leadership of its former president, Radisson’s strategy focused on growth and the firm
added hotels at the rate of about one hotel every seven days. By 1997, Radisson’s “growth at any cost”
strategy left Radisson with a significant diversity in hotel quality and an “unfocused” brand image.
Alignment with hotel owners (more than hotel guests) also seemed to cause Radisson’s customer service
and hotel management expertise to atrophy.
In 1997 and 1998, Mr. Brian Stage, Radisson’s President, and Ms. Maureen O’Hanlon, Radisson’s
Executive Vice President, took several initiatives to drive the organization towards becoming a more
customer-focused brand. In their words, they “re-discovered that their primary customers should be the
guests not the owners.”
Some of these initiatives included a service guarantee, a guest satisfaction measurement programme,
an employee satisfaction measurement programme, and an information technology initiative. Stage and
O’Hanlon were committed to creating the systems and programmes that would bring Radisson into the 21st
century as a truly “customer-driven learning organization.” Their goal was to make Radisson the “most
trusted and respected and respected brand worldwide.” They were hopeful that these initiatives would make
a significant contribution to helping Radisson achieve these goals.
Service Quality Performance Metrics
Radisson uses four service quality performance metrics based on room comment cards solicited from
hotel guests:
• Willingness to return—percent of customers who indicate that they are willing to ruturn.
• Percent advocates—percent of customers who indicate a willingness to recommend Radisson
Hotels to others.
 • Percent defectors—percent of customers who indicate that they are unwilling to return.
• Percent complaints—ratio of complaints to room nights.
Information systems, under the leadership of Radisson’s Vice President of Knowledge Resources,
Mr. Scott Heintzernan, produces a “dashboard” for each hotel that includes these and other more financial
measures. The one-page dashboard is Radisson’s “balanced scorecard” for each hotel. These measures are
often supplemented with ad hoc marketing research.
This paper focuses on the service guarantee initiative, the four strategic service quality performance
metrics that support the implementation and evaluation of that initiative, and a new measure called
“employee motivation and vision” that was found to correlate highly with Radisson’s service quality
performance metrics.
Radisson’s Service Guarantee
The Service Guarantees Concept
Hart, Hill, and others have argued persuasively that service guarantees can help many firms to
position themselves in the market by clearly defining their value proposition to customers and employees.
Service guarantees also “stress” front-line workers to deliver high-quality service the first time, encourage
customers to voice their complaints to the firm, and motivate and enable workers to quickly discover and
recover dissatisfied customers.
Hays and Hill at the University of Minnesota developed a model (Figure) to show how service
guarantees affect service quality and, ultimately, business performance. In this model, they argue that a
strong service guarantee improves customer satisfaction, service quality, and customer loyalty through
three intervening variables: Marketing Communications Impact, Employee Motivation and Vision, and
Organizational Service Learning. These are defined in the following paragraphs.
Marketing
communications
impact (MCI)
Service Employee Customer Business
guarantee motivation and satisfaction Service performance
strength (SGS) vision (EMV) quality Customer (BP)
loyalty (SQL)
Organizational
service learning
(OSL)
Figure . Service Guarantees and Business Performance
Marketing Communications Impact (MCI)—A strong service guarantee will have both offensive and
defensive marketing impact. Offensively, firms can use a service guarantee to proclaim the reliability of
their high quality service and thus attract new customers. Defensively, a service guarantee not only enables
companies to recover unsatisfied customers but also encourages dissatisfied customers to complain, thus
allowing the firm to recover those customers.
Employee Motivation and Vision (EMV)—A strong service guarantee motivates employees to fulfill
the guarantee and to satisfy customers. The guarantee clearly defines the employee’s job as satisfying
customers - not just taking reservations, checking out customers, or cleaning rooms. It can also inspire a
new vision for service quality when employees are challenged to really satisfy customers’ true needs. Hill
quotes one senior European executive who proclaimed that “our service guarantee defines the mission for
our firm.”
Organizational Service Learning (OSL)—A strong service guarantee can help organizations discover
dissatisfied customers and learn from them in order to improve service quality, Organizations with a strong
service guarantee will tend learn how to satisfy customers faster than organizations without one.
When marketing communications impact (MCI), employee motivation and vision (EMV), and
organizational service learning (OSL) are improved, then service quality, customer satisfaction, and
customer loyalty (SQL) should also improve. Business performance (BP) will improve as a result of
improved SQL.
The Service Guarantee Design
 In his book, Hart prescribes an “unconditional satisfaction” guarantee where the firm responds to
service failures with immediate compensation. In focus groups conducted by Radisson, customers found it
uncomfortable to receive a full refund for a minor complaint; giving away room-nights too freely actually
discouraged customers from voicing their complaints. Radisson’s management team, led by Ms. Sue Geurs,
decided that a more appropriate guarantee would be a two-step guarantee that allowed Radisson to “make it
right” before the hotel offered the customer a full refund. Focus groups confirmed that this was a good
balance between encouraging customers to voice their complaints and assuring customers that their
complaints would be taken seriously.
The Pilot Test
In order to test the 100 per cent Guest Satisfaction Programme, Radisson selected twenty-eight hotels
for a “pilot” test of the 100 per cent Guest Satisfaction Programme. These hotels represented a wide variety
of hotel types, locations, and sizes. Employee training was a key aspect of the service guarantee programme
at Radisson, A comprehensive training programme, complete with training manuals and videotapes, was
developed to support the guarantee programme. Radisson managers and employees were required to
participate in the training programme before the hotel could implement the guarantee programme.
Radisson’s management team measured the impact of the guarantee using three approaches: (1) Radisson’s
internal data from room comment cards to measure the service quality metrics discussed above, (2) a
customer satisfaction survey conducted by a market research firm, and (3) a University of Minnesota study
of employee motivation.
Employee Survey and Results
A team of researchers from the University of Minnesota developed a survey instrument based on the
EMV and OSL constructs in Figure and administered it to managers and front-desk workers in each of the
pilot hotels before and after the programme was implemented. (The MCI construct could not be tested with
employee data.) Table presents the survey items (questions). The actual survey randomized the questions.
Respondents were asked to score each item on a 7-point “agree-disagree” scale.
Of the twenty-eight hotels in the pilot study, four were excluded from the survey data analysis
because they were not in the United States or Canada. One additional hotel was excluded because no
historical service quality performance data was available. With Radisson’s help, the survey had a 100 per
cent high response rate for the twenty-three remaining hotels in the sample. The survey data included 559
individual survey responses, about equally divided between management and front desk respondents.
The average change for each variable is also shown in Table. Fifteen of the sixteen variables showed
improvement. The improvements marked with an asterisk had statistically significant improvement. Five of
Employee Motivation and Vision (EMV) items showed significant improvement with the service guarantee
programme. Two of the OSL-Discovery variables improved significantly. However, none of the OSL-Data
or OSL-Improvement items was statistically better. It may be possible that OSL variables lag EMV
variables and, therefore, few OSL improvements were not detected in the study.
Table . Radisson Employee Survey Results
Construct Question Average
improvement
EMV Motivation
1. Our employees always make customer satisfaction their top goal. .145
2. Our employees go out of their way to listen when customers complain. .193*
3. Our employees try very hard to fix customer problems when they know about them. .033
4. Our employees feel a strong sense of accountability and ownership for service quality. .230*
5. Customer satisfaction is an extremely important part of my job. .110*
EMV - Vision
1. Our service quality priorities are always clear to our employees. .350*
2. Our employees have a clear understandingoftherolethat. service quality plays in helping
our company compete in our market. .115
3. We have very well defined standards for service quality. .265*
OSL - Discovery
1. When a service problem occurs, we are almost always aware of the problem. .286*
 2. Our employees are very aware of customer complaints and why they occur. -.037
3. Customers with a service problem almost always complain to us. .314*
OSL - Data
1. We have accurate information on how many complaints we receive. .177
2. We have accurate information on why our customers complain. .091
3. Information on customer satisfaction trends is communicated to all of our employees. .205
OSL - Improvement
1. Collecting customer feedback helps us to regularly improve our service quality. .145
2. We have improved our service quality over the past year based on
customer complaint infoimation. .193
* Statistically significant at the 10 per cent level of significance.
Comparison of front-desk and management respondents found that front-desk employees perceived
themselves as more motivated than management perceived them to be. Compared to front-desk
respondents, management believed they were “missing” more complaints. Lastly, management was more
confident in data accuracy than front-desk employee’s,
Programme Results
Service quality performance metrics
A study of Radisson’s four service quality performance metrics found that the willingness to return
increased, percent advocates increased, and percent defectors decreased. Percent complaints increased
significantly during the first four months of the pilot programme. Management concluded that the service
guarantee encouraged dissatisfied customers to voice their complaints, and viewed this as a positive result.
A more sophisticated statistical analysis found a statistically significant relationship between the sum of the
EMV scores, the sum of the OSL scores, and the percent advocates metric. In other words, customer
satisfaction (measured by percent advocates) is strongly affected by employee motivation and vision
(EMV) and the firm’s ability to learn from its customers (OSL) as measured by the survey instrument. A
more detailed statistical analysis will be reported in an academic journal.
Roll out to North America and industry recognition
With strong positive results from Radisson’s internal measures, the market research studies, and the
University employee survey, Radisson’s senior management decided to “roll out” the “100 per cent Guest
Satisfaction Programme” to all Radisson hotels in North America in early 1998. In April of 1998, The
American Hotel & Motel Association named Radisson Hotels Worldwide the “Star of the Industry” in the
Guest Relations category. The award recognized Radisson’s superior customer service programmes.
While many people might view a service guarantee programme as purely an advertising strategy, this
study provides compelling evidence that a service guarantee programme can significantly shape the quality
strategy of a firm as well. A service guarantee can exert positive influence on the motivation and vision of
employees and thus increase service quality and customer satisfaction. A service guarantee programme can
also provide the impetus for a firm to focus operations on the attainment of superior service quality through
learning from service failures.
With respect to strategic performance measurement, this study illustrates an interesting application of
strategic quality measures. The paper also provides evidence that the survey instrument (Table) can be used
as a service quality performance metric to measure employee motivation and vision (EMV) and
organizational service learning (OSL).
A CASE STUDY OF NAMIBIA
Friendly, quality and affordable service is what will determine success in the hospitality industry.
President Nujoma during the opening of the Polytechnic of Namibia’s Hotel School on Thursday
said: “I am strongly convinced that given the diversity of our country, the hospitality and tourism sectors
have a brighter future as long as all stakeholders in the industry provide high quality service to the
customers.” (MIB)
Namibia : A Case Study
Statement by his Excellency Dr. Sam Nujoma, President of the Republic of Namibia, on the Occasion
of the Inauguration of the Hotel School at the Polytechnic of Namibia 23 October 2003 Windhoek
 “Over the years, our country has witnessed increased growth in the hospitality and tourism sectors.
Tourism has now become one of Namibia’s most important economic sectors, in fact, the industry has now
the potential to challenge the mining and fisheries sectors as the biggest contributor to our Gross Domestic
Product (GDP). However, in order to enable the tourism sector to attract more customers, there is a need to
establish and maintain internationally acceptable quality standards. This can be achieved by providing
adequate training and skills to all employees and managers in the sector.
You may recall that in 1996, my Government initiated a White Paper on Tourism in order to facilitate
the exploitation of the tourism industry and to enhance its contribution towards the economic development
of our country through the creation of employment opportunities and to increase the participation of more
Namibians in the sector. As a result of these initiatives, the Hospitality and Training Centre (HTC) and the
Polytechnic of Namibia began to offer National Diploma courses in Tourism and Hospitality Management
in 1998.
By the end of 2000, the Hospitality Training Centre was fully integrated in the Polytechnic’s
Department of Hospitality and Tourism. Due to increase demand, the Centre was expanded further in order
to offer degree programmes, which are tailor-made to serve the tourism sector. Thus, the Hotel and
Tourism School was born.
I am informed that the Hotel and Tourism School will offer a Bachelor’s Degree in Hotel
Management, as well as in Travel and Tourism Management. It will also offer National Certificates and
Diplomas in Hospitality and Tourism Operations, including short-term courses in Basic Cookery.
The provision of these training courses will provide young Namibians with relevant knowledge and
skills and thereby improve the competitiveness of our tourism industry, regionally and internationally. In
addition to the standard courses in Tourism and Hospitality Management, the school will also offer tailor-
made courses to train managers as well as supervisors at state-owned resorts and rest camps. These courses
have been particularly designed to fit the requirements of our tourism industry and to give students
appropriate practical experience.
Moreover, they will provide sufficient “hands-on” training which resembles the “real-life”
environments in which the trainees will operate upon completion of their training. This will help to prepare
them adequately for the workplace. I am confident that these courses will also go a long way to promote
excellence, quality service delivery and the maintenance of high standards in Namibia’s tourism sector.
Master of Ceremonies,
I believe that if the tourism sector in Namibia is to thrive, we must continue to strengthen a
comprehensive approach in term of training and provision of skills. Thus, the trainees from this Institution
must be equipped with relevant skills and knowledge to be in a position to serve in our hotels, resorts and
rest camps. Equally important, they must be able to serve in the community-based tourism operations as
well as in the conservancies.
In the same vein, I would like to urge the Polytechnic to find ways and means to assist the promotion
of the various conservancies around the country and equip them with the necessary skills in administration
and management of their ventures.
I am confident that this Hotel School will contribute to the improvement and further growth of the
hospitality and the tourism sectors. It should also serve to enable our people to establish their businesses
after the completion of their studies at the institution.
I have no doubt that the acquisition of relevant skills from this school will empower more Namibians
to create wealth through self-employment initiatives and other entrepreneurial activities,
At this juncture, I would like to commend all the stakeholders and our co-operation development
partners who assisted in the establishment of this Hotel School, especially the European Union (EU), which
assisted the Polytechnic to build this facility through a grant of more than N$5 million. The EU has also
provided additional funds and equipment, which has contributed greatly to make this facility operational.
Master of Ceremonies,
I would like to further stress that in order to achieve success, the Hotel School should develop
collaborative relationships with employers, Government Ministries and Agencies as well as other service
providers and stakeholders who are involved in the development of tourism activities in our country.
 The Hotel and Tourism School should also remain aware of the changing dynamics in the tourism
environment internationally and respond pro-actively by providing appropriate training that can meet the
modern needs in the sector. This is the only way that our tourism industry can remain competitive.
Above all, the employees and managers at all tourism establishments in Namibia must always be
friendly and give a warm welcome to all tourists who visit such establishments.
I believe that friendly, quality and affordable service is what will determine success in the hospitality
industry. I am strongly convinced that given the diversity of our country, the hospitality and tourism sectors
have a brighter future as long as all stakeholders in the industry provide high quality service to the
customers.
With these few words, I wish you all resounding success in all your future endeavours and it is now
my pleasure to declare the Hotel and Tourism School of the Polytechnic of Namibia officially open.
I thank you. “
LODGING MANAGERS IN USA: CURRENT OCCUPATIONAL OUTLOOK
Significant Points
• As in other hotel occupations, night and weekend work is common.
• Employment is projected to grow more slowly than average,
• College graduates with degrees in hotel or restaurant management should have the best job
opportunities.
Nature of the Work
A comfortable room, good food, and a helpful staff can make being away from home an enjoyable
experience for both vacationing families and business travelers. While most lodging managers work in
traditional hotels and motels, some work in other lodging establishments, such as camps, inns,
boardinghouses, dude ranches, and recreational resorts. In full-service hotels, lodging managers help their
guests have a pleasant stay by providing many of the comforts of home, including cable television, fitness
equipment, and voice mail, as well as specialized services such as health spas. For business travellers,
lodging managers often schedule available meeting rooms and electronic equipment, including slide
projectors and fax machines.
Lodging managers are responsible for keeping their establishments efficient and profitable. In a small
establishment with a limited staff, the manager may oversee all aspects of operations. However, large
hotels may employ hundreds of workers, and the general manager usually is aided by a number of assistant
managers assigned to the various departments of the operation. In hotels of every size, managerial duties
vary-significantly by job title.
General managers, for example, have overall responsibility for the operation of the hotel. Within
guidelines established by the owners of the hotel or executives of the hotel chain, the general manager sets
room rates, allocates funds to departments, approves expenditures, and establishes expected standards for
guest service, decor, housekeeping, food quality, and banquet operations. Managers who work for chains
also may organize and staff a newly built hotel, refurbish an older hotel, or reorganize a hotel or motel that
is not operating successfully. In order to fill entry-level service and clerical jobs in hotels, some managers
attend career fairs.
Resident managers live in hotels and are on call 24 hours a day to resolve problems or emergencies.
In general, though, they typically work an 8 to 10 hour day and oversee the day-to-day operations of the
hotel. In many hotels, the general manager also is the resident manager.
Executive housekeepers ensure that guest rooms, meeting and banquet rooms, and public areas are
clean, orderly, and well maintained. They also train, schedule, and supervise the work of housekeepers,
inspect rooms, and order cleaning supplies.
Front office managers coordinate reservations and room assignments, as well as train and direct the
hotel’s front desk staff. They ensure that guests are treated courteously, complaints and problems are
resolved, and requests for special services are carried out. Front office managers may adjust charges posted
on a customer’s bill.
Convention services managers coordinate the activities of various departments in larger hotels to
accommodate meetings, conventions, and special events. They meet with representatives of groups or
organizations to plan the number of rooms to reserve, the desired configuration of the meeting space, and
the banquet services. During the meeting or event, they resolve unexpected problems and monitor activities
to ensure that hotel operations conform to the expectations of the group.
Assistant managers help run the day-to-day operations of the hotel. In large hotels, they may be
responsible for activities such as personnel, accounting, office administration, marketing and sales,
purchasing, security, maintenance, and pool, spa, or recreational facilities. In smaller hotels, these duties
may be combined into one position. Assistant managers may adjust charges on a hotel guest’s bill when a
manager is unavailable.
Computers are used extensively by lodging managers and their assistants to keep track of guests’
bills, reservations, room assignments, meetings, and special events. In addition, computers are used to order
food, beverages, and supplies, as well as to prepare reports for hotel owners and top-level managers.
Managers work with computer specialists to ensure that the hotel’s computer system functions properly.
Should the hotel’s computer system fail, managers must continue to meet the needs of hotel guests and
staff.
Working Conditions
Because hotels are open around the clock, night and weekend work is common. Many lodging
managers work more than 40 hours per week. Managers who live in the hotel usually have regular work
schedules,-but they may be called to work at any time. Some employees of resort hotels are managers
during the busy season. and have other duties during the rest of the year.
Lodging managers sometimes experience the pressures of coordinating a wide range of functions.
Conventions and large groups of tourists may present unusual problems. Moreover, dealing with irate
guests can be stressful. The job can be particularly hectic for front office managers during check-in and
check-out time. Computer failures can further complicate an already busy time.
Employment
Lodging managers held about 69,000 jobs in 2002. Self-employed managers—primarily owners of
small hotels and motels—held about 50 per cent of these jobs. Companies that manage hotels and motels
under contract employed some managers.
Training, other Qualifications, and Advancement
Hotels increasingly emphasize specialized training. Postsecondary training in hotel or restaurant
management is preferred for most hotel management positions, although a college liberal arts degree may
be sufficient when coupled with related hotel experience. Internships or part-time or summer work are an
asset to students seeking a career in hotel management. The experience gained and the contacts made with
employers can greatly benefit students after graduation. Most bachelor’s degree programmes include work-
study opportunities.
Community colleges, junior colleges, and some universities offer associate’s, bachelor’s, and
graduate degree programmes in hotel or restaurant management. Combined with technical institutes,
vocational and trade schools, and other academic institutions, over 800 educational facilities have
programmes leading to formal recognition in hotel or restaurant management. Hotel management
programmes include instruction in hotel administration, accounting, economics, marketing, housekeeping,
food service management and catering, and hotel maintenance engineering. Computer training also is an
integral part of hotel management training, due to the widespread use of computers in reservations, billing,
and housekeeping management.
Additionally, over 450 high schools in 45 States offer the Lodging Management Programme created
by the Educational Institute of the American Hotel and Lodging Association. This is a two-year programme
offered to high school juniors and seniors, which teaches management principles and leads to a
professional-certification called the “Certified Rooms Division Specialist”. Many colleges and universities
grant participants credit towards a post-secondary degree in hotel management.
Lodging managers must be able to get along with many different people, even in stressful situations.
They must be able to solve problems and concentrate on details. Initiative, self-discipline, effective
communication skills, and the ability to organize and direct the work of others also are essential for
managers at all levels.
In the past, many managers were promoted from the ranks of front desk clerks, housekeepers,
waiters, chefs, and hotel sales workers. Although some employees still advance to hotel management
positions without education beyond high school, post-secondary education is preferred. Restaurant
management training or experience also is a good background for entering hotel management, because the
success of a hotel’s food service and beverage operations often is important to the profitability of the entire
establishment.
Graduates of hotel or restaurant management programmes usually start as trainee assistant managers.
Some large hotels sponsor specialized on-the-job management training programmes that allow trainees to
rotate among various departments and gain a thorough knowledge of the hotel’s operation. Other hotels
may help finance formal training in hotel management for outstanding employees. Newly built hotels,
particularly those without established on-the-job training programmes, often prefer to hire applicants who
have hotel management experience.
Large hotel and motel chains may offer better opportunities for advancement than small,
independently owned establishments, but relocation every several years often is necessary for
advancement. The large chains have more extensive career ladder programmes and offer managers the
opportunity to transfer to another hotel or motel in the chain or to the central office. Career advancement
can be accelerated by the completion of certification programmes offered by various associations These
programmes usually require a combination of course work, examinations, and experience. For example,
outstanding lodging managers may advance to higher level manager positions.
Job Outlook
Employment of lodging managers is expected to grow more slowly than the average for all
occupations through 2012. Additional job openings are expected to occur as experienced managers transfer
to other occupations or leave the labour force, in part because of the long hours and stressful working
conditions. Job opportunities are expected to be best for persons with college degrees in hotel or restaurant
management.
Increasing business travel and domestic and foreign tourism will drive employment growth of
lodging managers. Managerial jobs are not expected to grow as rapidly as the hotel industry overall,
however. As the industry consolidates, many chains and franchises will acquire independently owned
establishments and increase the numbers of economy-class rooms to accommodate bargain-conscious
guests. Economy hotels offer clean, comfortable rooms and front desk services without costly extras such
as restaurants and room service. Because there are not as many departments in these hotels, fewer managers
will be needed. Similarly, the increasing number of extended-stay hotels will temper demand for managers
because, in these establishments, management is not required to be available 24 hours a day. In addition,
front desk clerks increasingly are assuming some responsibilities previously reserved for managers, further
limiting the employment growth of managers and their assistants.
Additional demand for managers is expected in suite hotels, because some guests—especially
business customers—are willing to pay higher prices for rooms with kitchens and suites that provide the
space needed to conduct meetings. In addition, large full-service hotels—offering restaurants, fitness
centers, large meeting rooms, and play areas for children, among other amenities—will continue to provide
many trainee and managerial opportunities.
Earnings
Median annual earnings of lodging managers were $33,970 in 2002. The middle 50 percent earned
between $26,110 and $44,670. The lowest 10 percent earned less than $20,400, while the highest 10
percent earned more than $59,420.
Salaries of lodging managers vary greatly according to their responsibilities and the segment of the
hotel industry in which they are employed, as well as the location and region where the hotel is located.
Managers may earn bonuses of up to 25 percent of their basic salary in some hotels and also may be
furnished with lodging, meals, parking, laundry, and other services. In addition to providing typical
benefits, some hotels offer profit-sharing plans and educational assistance to their employees.
Related Occupations
Other occupations concerned with organizing and directing a business in which customer service is
the cornerstone of their success include food service managers, gaming managers, sales worker supervisors,
and property, real estate, and community association managers.
SUPPLIER RELATIONSHIP MANAGEMENT (SRM)
 Behind the scenes of any hospitality business—be it a hotel, a resort, a restaurant, an aquarium, or a
ballpark—is an intricate network of materials and services that must be carefully managed in order to
ensure a smooth and successful operation. Hundreds of suppliers and thousands of parts are needed for day-
to-day operation, and like most industries, hospitality and entertainment enterprises are under relentless
pressure to cut costs, reduce waste, eliminate inefficiency, and consolidate operations. The mandate is
clear: control expenses now.
To survive in today’s economy, every enterprise must put the reins on spending across every location
and category. Rogue spending infiltrates even the most disciplined hospitality and entertainment
enterprises, and is even more apparent in organizations with remote locations and employees. Vendor lists
grow like weeds. There is confusion over who manages what service area, and manual approval procedures
for requisitions and invoices are cumbersome. The ability for hospitality and entertainment enterprises to
effectively source, procure, and manage their spend must keep pace with the demand for promptness and
compliance in supplier relationship management (SRM).
Businesses offering hospitality, entertainment, and food-related services need to focus on large
capital expenditures like Furniture, Fixtures and Equipment (FF&E), daily reorders of needed direct and
indirect goods, and services such as perishable foods, sundry items, linens, and in some cases human
capital.
With the tremendous amount of goods and services required for operating hospitality and
entertainment enterprises, online purchasing has become an increasingly efficient and dynamic
comparison-shopping model. Web-based procurement solutions provide extensive flexibility and reach by
allowing a buying restaurant or hotel to post its needs, and several suppliers to respond with bids.
Hospitality and entertainment companies typically source and procure goods and services that they
need quickly, are ordered in multiples, and are constantly being reordered. These specific ordering
characteristics make an SRM solution most productive. If you can minimize overhead costs and focus your
people on the job at hand, you are more likely to increase profitability.
SRM in the Hospitality and Entertainment Enterprise
A hospitality and entertainment enterprise deals with - in some cases - hundreds of suppliers and
thousands of items on a daily, weekly, monthly, or annual basis. The spend on perishable goods and
services is often overlooked amidst the common place ease of everyday materials spend. These enterprises
buy and sell food items, capital goods, fixtures, furnishings, maintenance, repair, and operating items, rate
card services (such as advertising or package shipping), or maintenance services (landscaping, pest control,
warranty, and service license agreements). Hospitality and entertainment enterprises are facing the same
trials and tribulations that their direct-indirect materials counterparts have seen for years: How do you
choose the right suppliers, get the best mix of prices, terms, and non-price attributes, and then easily and
intuitively go to purchase, track and pay for them while still maintaining performance measures for your
suppliers?
A Comprehensive Solution
While your business is ultimately measured by the bottom line, it is essentially defined by
relationships - with your customers and suppliers. How well you manage these relationships has a dramatic
impact on your bottom line.
An SRM suite provides hospitality and entertainment enterprises with the necessary tools and
solutions to achieve optimal performance in supplier relationships.
HOSPITALITY COMPUTERIZATION AND INFORMATION MANAGEMENT
 Hotel managers awakened in the early morning hours to news of an earthquake, fire or explosion are
unlikely to think first of saving the hotel’s AS400 information system or retrieving computer data tapes
from off-site locations. Evacuating guests and employees is paramount. Disaster plans put people first.
Nevertheless, loss of a property’s information technology (IT) functions can plunge any company into
operational disarray, triggering revenue losses and negative publicity that may take years to overcome.
Technology systems rendered inoperable in one location can ripple through an entire hotel organization,
forcing the company to fall back on manual operations. Reservations, property management and
communications systems must be quickly replaced and guest data recovered to avoid major losses. A case
in point involved the bombing of New York’s World Trade Center in 1993. The terrorist act inflicted
physical damage to a large area of downtown Manhattan, including an adjacent hotel. Although the hotel
was evacuated in less than fifteen minutes with no fatalities, the telephone and computer system was
damaged. The hotel could not account for guests and employees. Communications failures prevented
management from communicating with emergency services. The loss of heat could have caused further
damage to existing systems from the bursting of frozen water pipes. The hotel’s experience points to one of
the key elements in a technology disaster recovery plan—maintaining critical operational and financial data
at an off-site storage facility. Following a disaster, off-site facilities that maintain reservation and
accounting information would be available immediately for retrieval of in-house guest records, financial
documents, guest history and sales information, minimizing a disaster’s effect on a hotel’s data and
information. Prompted by insurance companies or experience, most companies have addressed the need for
a disaster recovery plan (DRP), if not put one in place. Few, however, create and maintain written plans on
IT disaster recovery. In a survey conducted by Comdisco, Inc., one of the largest disaster recovery
companies, it was estimated that only 45 per cent of companies maintain a formal plan in the event of
computer disruption. The survey addressed the level of corporate readiness for disaster recovery,
concluding that only 12 per cent of enterprises have an effective disaster recovery plan. Another 6 per cent
were partially prepared. Fully 82 per cent of companies were ineffectively prepared for a technology
disaster. The survey measured:
1. data centers,
 2. local area networks, and
3. enterprise wide area networks.
While the survey itself was cross-industry, hospitality companies rely heavily on all three of the
technology components measured. A disaster recovery plan specifically addressing technology is essential
to any hotel’s risk management programmes.
Threats to Technology Systems
One of the most’destructive events for hospitality companies occurred in September 1992 as
Hurricane Iniki unleashed winds up to 200 miles per hour on the Island of Kauai, Hawaii. The damage
amounted to $1.6 billion and resulted in 85 percent of the island’s hotel rooms shutting down for at least
two months. With 30-foot waves and complete power outages, all hotel technology systems on the island
were lost. Particularly in areas with potential for destructive weather, the need for disaster recovery and off-
site back up systems cannot be overstated. Hotel properties without technology disaster recovery plans may
be closed for much longer periods of time than other companies. Of the 320 technology recoveries
supported by Comdisco since 1985, hardware failure was the largest cause at 24 per cent, followed by
hurricanes and power outages at 16 per cent each, and floods accounting for another 15 per cent. The seeds
of major technology failures may occur within the systems themselves. One of the largest providers of
global distribution of airline and hotel reservations experienced an outage in mid-1998 due to a software
error, resulting in the complete cessation of new reservations bookings for more than five hours. An outage
on a system that processes an hourly average of 45,000 airline and hotel reservations can cause major
service disruptions and customer dissatisfaction. Even a supplier with a system that is 99.9 percent reliable
must expect and plan for a system failure. Senior management may be unaware of the need to maintain
detailed back-up plans for systems and data. Only a select few in the if department may consider systems
recovery as a primary function in the event of a disaster.
Disaster Categories 320 Recoveries Supported
Hardware Problems 24 %
Power Outage 16 %
Hurricane 16 %
Flood 15%
Miscellaneous 12%
Fire/Explosion 7%
Bomb 5%
Earthquake 5%
Source: Comdisco
Almost all hospitality companies have one main database for reservations and guest history. Both are
at risk if a disaster occurs. In addition, the industry’s reliance on technology and communication creates
several less traditional risks. The global distribution system, the importance of customer data, productivity
heavily reliant on terminals and information, and the long-term effect on loyalty of a single negative
experience, are additional risks particularly present in the hospitality industry. In addition, companies are
racing to build information about customer and spending patterns, investing millions of dollars in systems
to institutionalize this knowledge. Loss of these systems and databases is analogous to organizational
memory’ loss. While rebuilding physical property may take several years, guest loyalty and behavioural
history’ may often require more time and money.
Creating a Disaster Recovery Plan
Clearly, the development of a technology disaster recovery’ plan is an essential part of any
company.,.s risk management programme. Its development and documentation at a minimum will require
the following steps:
Take an Inventory—Include items critical to the business, including the reservation system, database
and the systems that support it. Telecommunications (dial-up lines, frame relay, dedicated lines and the
Internet) can be included as support systems.
Assess Unavailability—Assess what will occur if critical systems are absent over specific periods of
time. Ask key questions for each system. What foreseeable impact exists if accounting functionality is
down, for example, or the property management system applications are non-responsive? Determine the
maximum amount of downtime for these critical items before there will be a significant impact on the
business.
Identify Alternatives—Identify disaster recovery alternatives for critical functions. Hospitality
companies might decide that a “hot site” is a reasonable alternative with the loss of a reservation system. A
hot site is a computer and data processing center with computers in place and waiting to be used by a
company experiencing a disaster. Most hot sites are permanent facilities where the company can recreate its
computing environment.
Determine Alternative Requirements—Identify what is needed for an alternative to be implemented.
Minimum requirements may involve telecommunications with certain bandwidths or dial-up lines. A
specified level of power redundancy may be required for servers. Agreements with hardware vendors or
vendors who provide disaster recovery sites may also be an option,
Identify Costs—Gain an understanding of the total cost for each alternative. Examples of common
costs include arranging hardware agreements with vendors or the cost of having a disaster recovery site
available for use. Installation fees, purchase of redundant telecommunications, and the purchase of
upgrading telecommunications (i.e., increasing bandwidth) are other common costs. Some hospitality
companies may have additional costs relating to reservation system development time as a minimum
alternative requirement.
Estimate the Recovery Period—Estimate the amount of time until the critical systems become
available. Each alternative should have a specified recovery period.
Define the Limitations—Determine the limitations of each system back-up or alternative, including
vendor agreements or hot sites. The plan needs to address questions of hardware replacement, especially if
it is rare, discontinued, or a lag time exists between the purchase order and its delivery. The cost of an
alternative or the length of time until availability may also be limitations.
Determine the Benefits—Weigh the benefits of each alternative. Use the benefits of a faster recovery
in the event of a disaster as a competitive advantage.
Test the Plan Annually—Document the test and test results as a best practice to provide a record of
any problems encountered and their resolution.
IT Training in Disaster Recovery- Provide proper training of IT personnel for implementation of the
disaster recovery plan.
When a disaster or hardware failure does occur, planning rigor will make all the difference in the speed of
recovery. A completed disaster recovery plan for technology systems allows companies to realize large
returns on a relatively small investment-minimizing what may otherwise be an unnecessary and costly
outcome of disasters.
 Sustainable Service Quality in Hotel Industry
FOUR AND FIVE STAR HOTELS
In order for hotels to be sustainable in an increasingly competitive environment their performance in
a number of key areas is of vital importance. This performance is reflected in their success through high
occupancies, revenues and profits; suitable returns to woners and investors; happy and contented staff; and
satisfied customers. The key to this success is in retaining and satisfying customers, as this will generate
ongoing revenue through repeat business and positive word of mouth endorsements and referrals bringing
in new customers to keep, staff, owners and investors happy.
 Increasing competition and the ever-increasing cost of operating in four and five star hotels has
apparently focused hotels on improving the quality of the products and service they provide to retain and
attract customers. If business is to survive, the 4 and 5 star accommodation sector must ensure that they
deliver superior levels of customer satisfaction. The most important concerns therefore are the provision of
quality service to meet customer expectations in order to remain competitive, and more market-oriented.
However in the present competitive climate the challenge for hoteliers seems extremely daunting as they
juggle competing priorities of owners and investors, staff, and customers.
Introduction
Hotels play an important role in the tourism business as discussed by Medlik and Ingram (2000), for
they provide facilities for the transaction of business, for meetings and conferences, for recreation and
entertainment; they are employers of labour; they attract visitors to spend money; and provide amenities for
both visitors and residents. In his mode! of the tourism market system Hall (1995) regards accommodation
as one of the most critical components of the demand side, because accommodation will have a major
influence on the type of visitor to a destination. “Accommodation more than any other component, will
influence the sort of industry a destination will develop” (Young 1973 cited in Hall 1995),
“Accommodation provides an essential support service for the wider motivation which has brought the
visitor to the destination” (Cooper et al, 1996). Hotel establishments are therefore vital contributors to the
overall visitor satisfaction at a particular destination.
Four and five star hotels or luxury hotels as they are referred to in other parts of the world provide
facilities and services of a superior standing. Over the last decade we have seen a global shift in the
consumers quest for greater value for money, accompanied with higher levels of service and facilities. This
shift has forced operators, particularly those at the upper levels, such as four and five star hotels to move
toward each other in terms of the facilities they offer.
Coupled with this, Sydney hoteliers have the further challenge of the steadily increasing supply of
accommodation, In Sydney four and five star hotel market the number of hotel properties has jumped from
25 in 1990 to 61 in 2000 (Colliers Jardine Feb. 2001), Although occupancies have remained steady and the
Sydney Olympics had temporarily boosted demand, hoteliers remain concerned that the supply of
accommodation will see them struggle to achieve reasonable returns for their shareholders in the next
decade. Whilst demand for accommodation overall has been steadily increasing by 3.6 per cent per an urn,
significant increases in supply (7,000 new rooms entered the market between 1998-2000) bring many
challenges for hotel operators (Colliers Jardine Feb. 2000).
It is not surprising then, that, hotels are finding it difficult to achieve, gain and maintain a competitive
advantage. The ever-increasing competitiveness in the current environment has therefore become a
strategic issue for the hotel sector. Consequently more and more hotel companies have had to redesign and
redefine themselves in order to gain a competitive advantage, reduce costs, and enhance customer
satisfaction. Therefore, as is argued by Kandumpully et al (2002) it is the service quality components that
have the greatest potential to create distinction.
Service Quality
Service quality is highly dependent on consumer’s needs and expectations, and thus the standards
established by hotels need to be customer driven. Service is best defined “as a gap between customers
expectations and the performance they receive” (Parasuraman, et al., 1985) The focus in this definition is
on the customer’s point of view and suggests, that quality is in the eye of the beholder and is directly
influenced by perception, Asher (1996) suggests that service transactions are subjectively judged, arid that
service quality depends on the degree to which customers perceive their expectations have been met. The
important point being that consumers decide when they are satisfied, and this is dependant on many factors.
Gronroos (1984) divided service quality into three components: technical, functional and the image.
Technical qualities refer to the tangible component, such as rooms while the functional is referred to as the
intangible comment such as the relationship of the service provider with the customer. The image quality is
linked to the marketing of the product, which gives it a particular corporate image. Service quality can then
be viewed as a triangle of three components, the service system, the service strategy and the service
provider, with the customer directly linked to all elements (Albrecht and Bradford 1990).
What this means then is that in order for Hotel operators to succeed they have to perform a difficult
and sometimes seemingly impossible juggling. They have to hire high-performing, motivated staff, manage
the day-to-day affairs of the hotel and the company, plan for the future, and above all keep customers,
employees and investors satisfied.
Interest in Customer Satisfaction
Over the last decade there has been an augmented interest in customer satisfaction and/or
dissatisfaction. This is mainly due to the fact that there has been a growth in consumerism, that is, the
desirability by the consumer to satisfy their wants by higher and higher purchases of goods and services.
This has resulted in customers expecting to receive products and services of a much higher standard (Hall
1995, Pearce et al, 1998. Weaver et al., 2000). “Customers are travelling more widely, returning with new
ideas and new standards regarding accommodation provision” (Cooper et al., 1996: 172). This means that
Hotel customers are becoming much more discerning and demanding. “Accordingly, the competitiveness in
the hotel industry has increased among the luxury level around the globe. To stay competitive, these hotels
must offer the best amenities, superior service, loyalty programmes at a price that reflects value”
(Chaisawat 1998). This commitment is driven by the notion that guest satisfaction is likely to lead to repeat
business and positive word of mouth publicity.

Importance of Customer Retention

There is not shortage of literature that supports the idea that service quality is likely to be a
determinant of customer retention and future patronage (Cronin and Taylor 1992; Parusuman et al, 1994:
Gundersen et al, 1996:) Hoteliers have realized the importance of customer satisfaction, because they
appreciate that today’s competitive environment allows the consumer a greater choice to take their business
elsewhere if they are not satisfied. In a saturated market “Customer satisfaction serves as an exit barrier,
helping the firm to retain its customers” (Gundersen et al, 1996: 72).
The Relationship between Customer Retention and Service Quality
If service is what differentiates one hotel from another than the importance of service, to guest
satisfaction, and ultimately to customer retention, and enhanced hotel reputation cannot be ignored. This
rise in the volume of customer satisfaction does in many cases transpire to customer loyalty, increase in
average daily room rates, occupancies, market share, and customer retention rates (Enz and Siguaw 2000).
Furthermore the fact that we retain customers saves money and reduces the cost of finding new customers.
As was suggested by Zeithaml et al (1996) a long standing relationship with current customers has an
impact on profitability through additional sales to that customer, as well as less resistance to pay higher
prices, and the spread of positive promotion to others. Ultimately then hotels that can provide
distinguishable levels of superior service quality can create a sustainable competitive advantage over their
competitors.

HOTEL MANAGEMENT AND GLOBAL PLAYER

Two top hotel management firms with local ties have joined forces with a global hospitality
consulting firm to create a new hotel management division.
 American Hospitality Management Co., previously based in Golden Valley, and Bloomington-based
Arrowhead Hospitality Group have merged with HVS International to form HVS/ American Hospitality
Management Co, based in Newport County, R.L
American Hospitality Management Co., which was based in Golden Valley until owner Kirby Payne
moved to Rhode Island merged with HVS International,
The resulting company will maximize both smaller firms’ expertise in hotel maintenance and
engineering, as well as HVS’s resources and broad client base, said Kevin Sawatsky, president of
Arrowhead. The combination will make the resulting company a national player with the ability to add
management contracts much more quickly, he said.
Before Payne merged with HVS, he had discussed a merger with Sawatsky as a way to share such
resources as technology and operation manuals, Payne said.
Arrowhead Hospitality Group operates a half-dozen Minnesota hotels including the Thunderbird
Convention Centre and the Ramada Inn Mall of America.
The combination appears to provide great opportunities for each side, said Steve Sherf, senior vice
president of hospitality with Minneapolis-based Marquette Advisors.
As a regional company, Arrowhead’s growth would have been stunted because only so many hotels
hire management companies or change hands, he said.
While hotel management is a relatively new area for HVS, the company’s reach and resources will
increase exposure for its new management branch.
“It sounds to me like it is a heck of an opportunity for them. Sherf said.
Payne said the merger will renew his company’s presence in Minneapolis, bringing office space back
to town, and bulk up Arrowhead and American’s portfolios. HVS clients around the globe will also have
more services available to them, he said.
HVS/American Hospitality now operates 14 hotels in six states,, but could double those numbers in
2005, Sawatsky said.
USA GOVERNMENTAL AFFAIRS AND HOTEL INDUSTRY
Stay informed of the latest developments on legislative and regulatory issues.
Mission
The governmental affairs department of AH&LA provides the association with a comprehensive
federal governmental affairs programme covering legislative and regulatory issues.
This effort involves:
• establishing AH&EA’s legislative positions and priorities;
• lobbying Members of Congress and federal regulatory agencies on behalf of its members;
• encouraging political participation by member properties and partner state associations in
communications the association’s positions to Members of Congress and regulatory officials.
Its goal is to provide a favourable legislative and regulatory framework in which the lodging industry
can prosper.
AH&LA’s Governmental Affairs Financial Benefits Statement
An analysis of the positive effects the lobbying efforts of the AH&LA has on the bottom line of the
business operations of its members.
Regulatory Affairs in the Hotel Industry of USA
Mission Statement
The regulatory affairs department acts as an information clearinghouse to assist AH&LA members
with specific issues or technical questions. Members with technical questions may be further directed to a
specific resource or agency, knowledgeable allied members, AH&LA’s Information Centre, or other
sources. Additionally, situations often develop that require the coordination of activity or lobbying between
various businesses, coalitions or trade associations. The regulatory affairs department maintains regular
contact with businesses and other trade associations in a continuing effort to represent the common interests
of the lodging and hospitality industry. The regulatory affairs department monitors the activities of federal
agencies and several national codes and standards writing organizations. They also work in conjunction
with various industry consultants towards establishing a favourable regulatory and business environment
focusing on guest safety and services, building operations, security, fire protection and risk management.
Committees
The regulatory affairs department serves as the liaison to several standing committees of the
association and provides regulatory support to the lodging industry.
• Engineering and Environment Committee
• Loss Prevention Committee
• Risk Management Committee
• ADA Task Force
These committees monitor the activities and participates in the procedures of federal regulatory
agencies and several national codes and standards writing organizations, They also work in conjunction
with various industry consultants towards establishing a favourable regulatory and business environment
focusing on guest safety and services, building operations, security, fire-protection and risk management.
The department, through its committee membership and various technical consultants, provides industry
representation at several national codes and standards writing organizations including the:
• National Fire Protection Association (NFPA)
• International Codes Council (ICC)
• American Society of Refrigeration and Air-Conditioning Engineers (ASHRAE)
• National Pool and Spa Institute (NPSI)
• American National Standards Institute (ANSI)
• ASTM
The RUSH Report provides the hospitality industry with a unique and never before available in-depth
analysis of key aspects of website performance and user satisfaction. The report is based on feedback
obtained from more then 34,000 actual users of hotel branded websites and is continually update with
feedback from an ever increasing number of web site users. The analysis contains more than 1.5 million
data points and includes a unique ratings system, a detailed analysis of user satisfaction and website
performance, and an analysis of how key website dimensions, including navigation, content, interactivity,
motivation and adoption, contribute to the user’s overall level of satisfaction. Only the RUSH Report
provides a detailed comprehensive picture of both the leisure and business travellers online experience and
their satisfaction or dissatisfaction with crucial aspects of hotel sector websites. Now hotel brand
executives, hotel general managers and directors/managers of e-Commerce, Sales and Marketing, and
Revenue can evaluate website performance and onlme usability, compared against an industry average, and
where necessary make website adjustments in order to convert lookers into bookers. The RUSH Report
provides the data you will need to justify and rationalize enhancements to your website, be it a brand or
single-property site. In the rapidly changing online distribution marketplace, this report fills a void in
competitive industry-wide intelligence. With the RUSH Report can determine not only how you measure-
up against the industry average, but how you measure-up to your customers.
TUI: Technology adding Value for Money while Increasing Customer Choice about Hotels
WTTC global member, TUI, is employing advanced IT solutions to respond to shifting demand in the
sector where customers require more value for less money and are increasingly moving away from package
holidays to independently constructed itineraries.
The Apollo system, a group-wide and web-based platform interfacing with all existing systems, will
improve communication between tour operators and hoteliers in the TUI group. The sharing of information
on destination and accommodation capacities across the group will allow faster and better reaction to
supply and demand factors, thus offering customers a better quality of service while keeping costs low.
Through the TUI Hotel Portal, selected hoteliers will be able to enter and manage their own
information via the web where it will be administered and sorted by TUI and retailed via relevant internet
pages. The portal will facilitate a rapid and easy handling of the mass volume sale of hotel capacities
providing customers with a cost efficient, personalized service.
HOTEL INDUSTRY INITIATIVES
Nine prominent hotel industry technology leaders from around the world, meeting over a two-day
period in Chicago on June 27, 2002 prior to HITEC, have formed an initiative to break through the current
impasse on systems integration and productivity. The initiative, known as Hotel Technology - Next
Generation (HTNG), aims to define a new approach to providing systems and technology services at the
property, brand, management company and ownership levels.
The group concluded that the hotel industry is fundamentally dissatisfied with the effectiveness of
current technology options and their preparedness to address future business needs. The primary causes of
this dissatisfactions were:
• lack of effective inter-vendor cooperation and systems integration
• drawbacks in the current technology financing process
• poor adoption of modern technologies
Equally, there is a lack of recognition within large segments of the hotel community of the
importance of technology in hotel managements, and the industry has been unable to communicate a
common and consistent vision of its requirements to the vendor community.
The HTNG initiative aims to define a new approach that will facilitate the development of next-
generation, customer-centric systems that will better meet the needs of the global hotel community.
Commencing with the development of specific architectural and business guidelines, HTNG will work to
promote closer vendor working relationship, system interoperability, and the development of new service-
delivery models,
HTNG has produced a white paper, “A Path to Achieving Next-Generation Technology for the Hotel
Industry,” available by e-mail, that details the group’s analysis and recommendations, including a set of
proposed guidelines. It has also launched a campaign that will, starting at HITEC, seek to determine the
level of support among industry participants, and to obtain feedback on its initial findings.
“The objective of Hotel Technology - Hotel Generation initiative is to respond to the technology
needs of the hotel industry,” says Jim Yoakum, a member of the HFTP Technology Hall of Fame and
former Chief Information Officer of Marriott International and later, Choice Hotels International.
“Hopefully, it will lead toward establishing inter-vendor cooperation and systems integration, creating a
much-needed customer-centric platform within our industry.”
Launched by nine prominent hotel technology industry leaders during a two-day meeting held prior
to HITEC 2002, Hotel Technology - Next Generation (HTNG), aims to define a new approach to providing
systems and technology services a the property, brand, management company and ownership levels. HTNG
aims to facilitate the development of next-generation, customer-centric systems that will better meet the
needs of the global hotel community. Commencing with the development of specific architectural and
business guidelines, HTNG will work to promote closer vendor working relationships, system
interoperability, and the development of new service-delivery models.
HOTEL TECHNOLOGY INITIATIVES
Deloitte and Smith Travel Research (STR) are delighted to announce the launch of Global Lodging
Review, a publication dedicated to providing a comprehensive picture of global hotel performance. For the
first time, the global hotel industry can keep up-to-date with what is happening across the world, in one
easy to use publication. Every month Global Lodging Review, will provide an at a glance look at the global
lodging industry plus analysis of regional trends and the performance of specific cities. In addition,
quarterly performance reviews will be published, providing insight into the key factors driving hotel
performance for different regions of the world. An annual subscription to Global Lodging Review costs
$US995. Commenting on the launch Julia Felton, Executive Director of the Hotel Benchmark Survey by
Deloitte said: “Managing a global hotel company can be challenging, especially keeping abreast of the
different hotel performance trends across the world. This is why we are delighted to work with STR to
provide the industry with this unique monthly publication that makes global hotel performance data
available in just one place. It is never been easier for industry leaders to keep their finger on the pulse, of
what of happening across the world.” Global Lodging Review is the second service developed by Hotel
Benchmark, in partnership with Smith Travel Research, in response to the needs of the global lodging
industry. This service follows on from the introduction of Hotel Benchmark Trend Reports, which provide
an invaluable insight into the performance trends of specific hotel markets or a selection of hotels.
 The Hotel Benchmark Survey contains the largest independent source of hotel performance data
outside of North America and tracks the performance of over 6,500 hotels and 1.2 million rooms every
month. Monthly surveys are produced on the following areas:
• Four regional rate and occupancy surveys covering Asia-Pacific, Central and South America,
Europe and the Middle East & Africa.
• Eleven country/sub-regional rate and occupancy surveys for Australia, Benelux, China,
Germany, Italy, New Zealand, Nordic countries, Southern Africa, Spain, Qatar, and UK.
• Two city rate and occupancy surveys for London and Paris.
• Monthly profitability surveys on Germany and London.
• On an annual basis we produce profitability surveys tracking performance across all regions of
the world. On an annual basis we produce profitability surveys tracking performance across all
regions of the world.
Smith Travel Research is the recognized leader for US Lodging Industry benchmarking. For over 18
years, STR has collected monthly and daily operating data and reported on the state of the U.S. lodging
industry, maintaining one of the world’s largest lodging industry databases and publishing an array of
valued industry research.
Deloitte & Touche LLP is the UK’s fastest growing major professional services firm based in 21 UK
locations, with over 10,000 staff nationwide and fee income of £ 1,246 million in 2003/2004. It is a
member firm of Deloitte Touche Tohmastu, a leading professional services organization, delivering world
class audit, tax, consulting and corporate finance services, with around 120,000 people in over 140
countries. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and
independent legal entity.
CASE STUDY: JORDAN HOSPITALITY AND TOURISM INDUSTRY
• The Middle East has witnessed a thriving tourism sector during the last 5 years.
• Tourism is a leading sector in Jordan’s economy contributing over 10 per cent of GDP.
• Jordan boasts many historic, religious, archaeological and tourist sites that are sought after by
an increasing number of tourists from all over the world.
Remarkable Investment in New Hotel Developments in the Middle East...
• 140 new luxury hotels and resorts are planned in the next 4 to 5 years.
• All major international hotels chains such as Bass, Starwood, Marriott, Le Meridien, Four
Seasons, Keminski, Moevenpick and others are expanding their portfolios.
• Egypt, Lebanon, Syria, Palestine and other countries are investing heavily in the development
of their tourism infrastructure.
Significant Investment in the Tourism and Hospitality Sector in Jordan is Underway....
• Jordan is among the fastest growing economies in the Middle East. With a GDP growth rate of
5,5 per cent, it is undergoing a profound socio-economic development, coupled with a strong
boom in the tourism and construction sector.
• Significant investments in tourism, hospitality and leisure projects are underway in Jordan.
Over $2.5 billion will be invested in this sector in Jordan over the next 5 years, of which $1
billion will be in Amman, $1.3 billion in Aqaba and $540 million at the Dead Sea.
Major Projects Under Development in Jordan Include
Hotels and Resorts
• Gulf Finance House of Bahrain plans to invest over $1 billion in The Royal Metropolis’ project
in Amman which will comprise of the ‘Jordan Gate’ and The Districts’. Jorden Gate, will
include a 35-storey office tower and a 35-storey hotel block.
• A $500m Tala Bay resort project in Aqaba featuring a marina; a golf course; 5,000 hotel rooms;
housing units and other entertairument and sports facilities. The Marina Beach Hotel (315
rooms) and the Marina Town Hotel (250 rooms) are both under development.
• A $700 million Ayla Oasis project on the north beach in Aqaba is under development. It
includes 5 hotels ranging from a 90-room hotel to a 600-room hotel. The project also includes
2884 housing units; a marina village; an artificial iagoor and an 18-hole golf course.
 • A 255-room Aqaba Inter-Continental Hotel
• A 240-room Kempinski hotel in Aqaba
• A 450-room Kempinsski Ishtar hotel and chalets at the Dead Sea.
• A 450-room Inter Continental tourist resort and village for the Social Security Corporation
(SSC) at the Dead Sea.
• A $140 million Crystal City tourist project at the Dead Sea including a 250-room hotel.
• A 212 5-star hotel for Sanabel Tourist Investment at the Dead Sea.
• Holiday Inn Dead Sea Tourist Resort
• A $60-million tourist project with 250 rooms and 30 serviced apartments at the Dead Sea,
• Other resorts, aqua parks, golf courses and beach clubs at the Dead Sea.
Urban Regeneration Projects
A Master Plan for a major re-development project is being carefully planned to create a project is
being carefully planned to create a large mix use urban regeneration project in Amman. The Abdali Urban
Regeneration Project will accommodate a variety of facilities including high rise tower buildings; luxury
apartment buildings; hotels; a medical centre; restaurants; retail outlets; cinemas; a national library, as well
as, public plazas and gardens serviced by a state-of-the-art infrastructure. The 30-hectare site will also
house the American University or Jordan, catering for 6,000 graduate students.
The Zarqa New Garden City Development, 25 km north-east of Amman, is under development. The
2,500-hectare site will include residential properties, restaurants, caf es, shopping arcades, cinemas and
other entertainment facilities.
Other Hospitality, Leisure and Foodservice Projects
The changing trends in eating habits in Jordan have led to a phenomenal increase in new restaurants
and cafes and the introduction of new concepts that are being franchised in other Arab countries.
New projects coming up in Jordan include restaurants, nightclubs, bakeries, pastry shops, food courts,
fast food restaurants, private catering companies, sports clubs, spas, theme parks, aqua parks, health clubs,
golf courses, as well as, foodservice facilities at universities, colleges and hospitals. In addition to,
shopping malls and supermarkets that are springing up in Jordan.
INTERNATIONAL HOSPITALITY FORUM, JORDAN
International Hospitality Forum 2005 will put you in touch with the people who matter in Jordan
and the Middle East
A comprehensive event for the Hospitality and Foodservice Sectors of Jordan and the Middle East
featuring
• An international trade exhibition of products and services for the hospitality and foodservice
industries.
• Seminars, workshops and meetings related to tourism, hospitality and foodservice industries.
• The 4th Culinary Art Show Featuring 10 cooking, pastry and carving competitions
• The 4th Table Setting Competition
• The 2nd Bartenders’ Competition
• Other features include familiarization trips to foreign visitors and the press
The International Hospitality Forum 2005 will take place at the Amman International Exhibition hall
in Mar al Hamman, 7.5 km from the 7th circle of Jabal Amman off the airport highway. The show will
occupy the entire 4,000 square meter air-conditioned exhibition hall which has ample parking facilities for
exhibitors and visitors.
Jordan National Tourism Strategy: 2004-2010
Tourism is the largest global industry, and the tourism market is growing. According to the World
Tourism Organization (WTO), the global tourism market will triple in size by 2020, Tourism benefits local
economies substantially by increasing foreign exchange earnings, creating employment and investment
opportunities, increasing government revenues, developing a country’s image, and supporting all sectors of
the economy as well as local communities.
Tourism is of vital importance to the national economy of Jordan. It is the Kingdom’s largest export
sector, it is second largest private sector employer, and it is second highest producer of foreign exchange.
Tourism contributes more than US $ 800 million to Jordan’s economy and accounts for approximately 10
per cent of the country’s gross domestic product (GDP).
Jordan is a destination with many iconic tourist attractions, such as Petra, Wadi Rum, and the Dead
Sea. Yet despite its advantage and its importance to the economy, Jordan’s tourism sector is performing at a
level far below its potential. To achieve reasonable growth in the tourism sector that will in turn contribute
to economic development and job creation, Jordan needs to make a significant investment of funds and
efforts.
Jordan must focus on attracting high-yield visitors, developing niche products, enhancing the visitor
experience, increasing international marketing, and improving infrastructure and the regulatory
environment.
Jordan’s National Tourism Strategy 2004-2010 outlines the steps for doubling the Kingdom’s tourism
economy by 2010 using an integrated, value-chain approach involving government facilitation and
investment in partnership with the private sector.
The strategy is designed to bring about the following results by 2010:
• Increase tourism receipts from JD570 million in 2003 to 1.3 billion (US$ 1.84 billion).
• Increase tourism-supported jobs from 40,791 in 2003 to 91,719, thus creating over 51,000 jobs.
• Achieve taxation yield to the government of more than JD455 million (US$ 637 million).
The strategy targets the following priority niche markets:
• Cultural Heritage (Archaeology)
• Religious
• Ecotourism
• Health and wellness
• Adventure
• Meetings, incentives, conferences, and events (MICE)
• Cruising
The government of Jordan is committed to allocating four per cent of national tourism receipts for
international marketing, product development, and human resources development through 2010. This
contribution will more than double the current level of tourism investment. In addition to financial
commitments, the government and the private sector will work together to strengthen the industry’s
institutional and regulatory framework. Together, they will take action to improve the competitiveness of
the tourism sector and achieve the strategic objectives and plans set out in the National Tourism Strategy
The 5th International Hospitality Forum Scheduled for September 2005 Capitalizes on Excellent
Track Record
Amman derives February 2005, the annual International Hospitality Forum (IHF), Jordan’s premier
event for the hospitality and foodservice sector was building on its excellent track record to create a larger,
more comprehensive event. The forum showcase the latest in food and hospitality products, and feature
several vibrant events that bring together all those concerned in developing the hospitality industry in
Jordan and the region. IHF 2005 will take place between September 20-22, 2005 at Zara Expo Amman.
Significant investments in tourism, hospitality and leisure projects are underway in Jordan. Over $2.5
billion will be invested in this sector over the next 5 years of which nearly $1 billion will be in Amman,
$1.3 billion in Aqaba and $450 million by the Dead Sea. The Gulf Finance House of Bahrain, among other
plans to invest over $1 billion in The Royal Metropolis’ project in Amman which comprises of the ‘Jordan
Gate’ and The Districts’ project will include a 35-storey office tower and a 35-storey hotel block. A $500 -
million Tala Bay project in Aqaba, with its marina golf course 5,000 hotel rooms, housing units, and other
entertainment and sports facilities is well under development. A $700 million Ayla Oasis project on the
north beach of Aqaba is also under development. The project aims to create 5 hotels; 3,000 housing units; a
marina village; an artificial lagoon and an 18-hole golf course.
The changing trends in eating habits in Jordan have also led to a phenomenal increase in new
restaurants and cafes, so has the introduction of new concepts that are being franchised in other Arab
countries. The fifth edition of the annual event will offer an opportunity to food and hospitality industries to
display their latest products and services, as well as network with professionals from the region that has
recorded spectacular growth in tourism activities. Tourism is of vital importance to the national economy of
Jordan. It is Jordan’s largest export sector, the second largest private sector employer, and the second
highest producer of foreign exchange. Tourism contributes more than $800 million to Jordan’s economy
and accounts for approximately 10 per cent of GDP. IHF will feature various events including informative
seminars; the ever popular Culinary Art Show that attracts over 80 Jordanian chefs to compete in 11 pastry,
cooking and carving competitions, Jordan’s second Bartenders’ Competition and a Table Setting
Competition, in addition to various award ceremonies and workshops.
The U.S. Department of Commerce took Part in the. International Hospitality Forum—
Amman/Jordan Aug 2004. For the first time, the U.S. Department of Commerce Office of Textiles and
Apparel (Otexa) participates in the 4th International Hospitality Forum that will take place at Zara Expo
Amman - Jordan from 28 to 30 September 2004. IHF is an annual comprehensive event for the hospitality
and foodservice sector of Jordan and the Middle East that encompasses a trade show, in addition to, various
features including culinary competitions, bartenders competitions, presentations and workshops. OTEXA is
a one-stop agency for information on U.S. companies that specialize in contract/ hospitality and residential
fabrics; floor coverings; wall coverings; window treatment and finished soft home furnishings wall
coverings; window treatment and finished soft home furnishings including bedding. We are delighted to be
participating in this event in Jordan to showcase American products to Jordanian, Iraqi and other Arab
businessmen and investors. Seven companies will be showing samples of their work in Hal A of Zara Expo
during the International Hospitality Forum’, said Ms. Mary Lynn Landgraf of the U.S. Department of
Commerce. These are:
• Faribault Mills for cotton, wool and Ingeo blankets
• Craftex Mills for Jacquard woven upholstery fabrics
• Integra Fabrics for sheers, contract wovens, prints, vinyls and linings
• Classic Rug for wool hand-tufted designer rugs
• Thibaut Inc. for contract fabrics and wall coverings
• ARCADD, INC for an international design and architectural services, as well as
• Langhorne Carpet Co. Inc. for custom and stock Wilton Jacquard Carpet
“The remarkable expansion in the tourism and hospitality industry in Jordan and emerging
opportunities in Iraq have prompted us to take part in this trade event to promote our products and
strengthen relationships between American and Arab businessmen and women”, added Landgraf.
Masafi Signed in as Sponsor for the International Hospitality Forum— Amman Aug 2004. Masafi,
the Gulf’s leading producer of bottled mineral water established in 1976, signed up a sponsorship
agreement for Jordan’s premier event for the hospitality and foodservice trade show- the International
Hospitality Forum (IHF 2004) which will take place at Zara Expo Amman from 28 to 30 September 2004.
Holding the market leadership in the Gulf of the past 28 years, Masafi has become a unique generic name
for mineral bottled water in the entire Gulf region. The recent remarkable growth in Jordan’s hospitality
industry has prompted Masafi to look at the Jordanian market. Earlier this year it appointed Hashlamoun
Foodstuff Trading Company to represent it in the Jordanian market. “We are confident that Masafi will
gain a good market share in Jordan with our range of quality products. We aim to strengthen our market
leadership by constantly enhancing the excellence of our products through continuous reinvestment and
innovative manufacturing and marketing strategies. We are proud to sponsor the International Hospitality
Forum which will showcase our products to visitors from Jordan, Syria, Iraq, Lebanon and the wider
region”, said Mr. Tareq Hashlamoun, Managing Director of Hashlamoun Foodstuff Trading.
IHF 2004 offers an innovative programme of events on wide-ranging and significant issues affecting
all areas of the hospitality industry. It features an international trade show for the hospitality and
foodservice industry in addition to culinary and table setting competitions, a bar tender contest, design and
decor showcase and workshops. The South African Embassy in Amman is preparing a colourful and lively
participation to promote the hospitality and tourism industry in this extraordinary country. Other national
pavilions include a large participation from the Lebanon representing a wide range of products. So far 70
per cent of exhibition space has been booked of which 300 square metres comes from Lebanon, Other
exhibitions so far are from Jordan, Switzerland, France, Egypt United Arab Emirates, Turkey, Austria,
Holland and others.
Jordanian Bartenders Competed in Cocktail Preparation at IHF Aug 2004. For the first time in Jordan
a Bartenders Competition was launched at the 4th International Hospitality Forum that took place from 28
to 30 September 2004 at Zara Expo Amman. Over 40 Jordanian barmen took part in this exciting new
feature that was organized by Events Unlimited of Jordan and Hospitality Services of Lebanon in
association with Johnnie Walker Red Label, Power Horse, Smirnoff vodka and De Kuyper Liqueurs. Each
barman prepared three cocktail drinks using Smirnoff Vodka, Red Label whisky and Power Horse energy
drink mixed other alcoholic beverages of their choice. The maximum time allowed for the preparation and
garnishing of each cocktail was 5 minutes. A panel of expert jury judged the taste, presentation and aroma
of the cocktail, in addition to, the efficiency of preparing the drink, the character and appearance of the
competitor, timing and the name of the cocktail chosen by the competitor. A special bar area was built for
the competition at level P1 at Zara Expo to create a lively night club ambiance. Nai, one of Jordan’s most
distinguished nightclubs, provided the bar for the competitions along with the music while the spectators
can enjoy watching the competitions and shows from an auditorium equipped with special light and sound
effects. To also help raise the skills of Jordanian barmen, a Lebanese master of this profession conducted
training sessions at the bar. In addition, visitors enjoyed flaring shows conducted by another Lebanese
expert bartender.
In Amman on 27 June 2004, the annual International Hospitality Forum (IHF), Jordan’s premier
event for the hospitality and foodservice sector, aimed to reach higher levels in 2004 with more
international companies and pavilions taking part and a wider hosted buyers programme attracting regional
decision makers, particularly from neighbouring Iraq. IHF 2004 took place between 28-30 September 2004
at Zara Expo Amman. New features and events were being lined up for this rapidly growing event. The
three-day forum featured new product launches; new international pavilions; new cooking competitions and
pastry presentations; Jordan’s first bartenders competition; the first flower arrangement competition and
new ideas to inspire all those involved in the hospitality sector of Jordan and the wider region, Due to the
remarkable investment in tourism, hospitality and leisure projects that is underway in Jordan, the
Birmingham Chamber of Commerce and Industry in association with UK Trade and Investment has booked
a pavilion at IHF 2004. “We felt it essential to have a presence at this trade fair to promote UK companies
to the major players in the market. We will be representing 20 UK companies from the hospitality sector
who are new to the Jordanian market”, says Ms, Simona Novelly from the Birmingham Chamber of
Commerce and Industry, The South African Embassy in Amman is preparing a colourful and lively
participation to promote the hospitality and tourism industry in this extraordinary country. Other national
pavilions include a large participation from the Lebanon representing a wide range of products. So far 70
per cent of exhibition space has been booked of which 300 square metres comes from Lebanon. Other
exhibitors so far were from Jordan, Switzerland, France, Egypt, United Arab Emirates, Turkey, Austria,
Holland and others. The Culinary Art Show at IHF 2004 featured 12 competitions - 8 display competitions
and four live cooking and carving competitions. Major hotels and restaurants in Jordan were taking part in
this exciting competition,
International Hospitality Forum
28-30 September 2004. Amman, Jordan www.lHF-Jordan.com
The 4th International Hospitality Forum during 28-30 September. 2004, at Amman an Jordan/ Aimed
at Higher Levels:
The annual International Hospitality Forum (IHF), Jordan’s premier event for the hospitality and
foodservice sector, aims to reach higher levels in 2004 with more international companies and pavilions
taking part and a wider hosted buyers programme attracting regional decision makers, particularly from
neighbouring Iraq. IHF 2004 took place between 28-30 September 2004 at Zara Expo Amman. Remarkable
investments in tourism, hospitality and leisure projects are underway in Jordan. Amman is buzzing with
new restaurants and nightclubs, while the shores of the Dead Sea and Aqaba are attracting millions of
dollars of investments in tourist villages and resorts, let alone the emerging Iraqi hospitality industry where
most of the planning and investment decisions are being made in Amman. IHF is the ideal event to be at to
conduct business in Jordan, Iraq as well as other regional markets. IHF featured new products and services
from around the world and offered valuable opportunities to meet with industry leaders and plan for the
future. For the first time, IHF hosted a British pavilion organized by Birmingham Chamber of Commerce
and Industry. New at IHF was Jordan’s first bartenders competition, which in addition to, the Culinary Art
Show, the Design and Decor Showcase, the Table Setting Competition, award ceremonies and various
workshops added a further dimension to this comprehensive must-attend event.
During June, 2003 upwards, exhibitors have already booked over 75 per cent of the show and it is
likely that the total exhibition space will be filled up much ahead of time,” says Vahe Mekhssian, Sales
Representative at Hospitality Services in Beirut, the co-organisers of the Forum. More than 120 companies
were expected to be present at IHF 2003 displaying local and imported brands as well as a variety of
services supporting the hospitality and tourism industry. For the first time in its third year, IHF 2003
displayed local and imported brands as well as a variety of services supporting the hospitality and tourism
industry. For the first time in its third year, IHF 2003 gathered Belgium companies in an official Belgium
Pavilion organized by the Belgium Embassy. They presented in the food hall (Hall B) to launch their
products to the food and beverage sectors.
IHF 2003 is introducing new competitions at the second Culinary Art Show. From four competitions
in 2002, IHF 2003 is featuring 10 display and live cooking competitions with an enhanced kitchen area and
two theatres facing the show kitchens in Hall C. Prominent chefs will compete and demonstrate their
artistic and creative talents in competitions ranging from novelty cakes, to chocolate showpieces, canapes,
pastries to Arabic Mezza and fruit and vegetable carving. Prizes include training courses at Glion Institute
of Higher Education in Switzerland. In addition, visitors will be able to discover how to set dinner tables
under an “Autumn Dinner” theme where a good number of hotels and event planners will be taking part.
Seminars and workshops will take place alongside the Forum addressing various issues including
environmental topics such as solid waste management. New in its third year, IHF 2003 launched the 1st
Design and Decor Showcase. Renowned Jordanian interior designers and architects took part in the display
of architectural and interior designs for the hospitality industry. IHF has become a must attend event for all
those involved in the hospitality, design and food and beverage sector in Jordan and the region. Its vibrant
atmosphere, interesting product displays and informative sessions has gained the support of all relevant
bodies and trade associations in Jordan. IHF 2003 was expected to attract 5000 professional trade visitors
during the three day event, The second annual International Hospitality Forum, held in Jordan from 15-17
October, wrapped-up its activities achieving successes that surpassed all expectations and established itself
as an annual professional forum in Amman. Around 85 exhibitors from Jordan, Lebanon, Shria, Italy,
Germany, Switzerland, Belgium and others representing hundreds of brands, goods and services related to
the hotel, restaurant and catering industries participated in the event. IHF resulted in an unexpected number
of business transactions worth over $2 million. In an in-house survey-conducted by the Organizers, over 97
per cent of the exhibitors rated the event’s organization as “very good” or “good”, while 86 per cent of
them were very pleased with the number of visitors who visited their stand. He the Minister of Tourism and
Antiquities, Dr. Taleb Al Firai, commented on the success of the Forum and praised the efforts of the
organizers in “bringing to Jordan the best exhibitors with the newest products” and sees it as an “important
service to regional professionals in hospitality industry that are always seeding for the best and the newest.”
His Excellency also announced at the opening seminar an annual award for key personalities and
institutions in the hotels and restaurants sectors in Jordan in honour of their great contributions to this
industry, Mr. Nabih Nazzai was honoured for his extensive efforts throughout the years in the hospitality
sector, as well as, The Orient Restaurant (Abu Ahmad) and Subhi Jabri Establishment. The event wrapped-
up its activities with the distribution of awards and accolades to winners of the competitions of the first
annual Culianry Art Show that took place throughout the three-day event. Winners received honorary
certificates and prizes that included training courses offered from Glion Institute of Higher Education, one
of the most prestigious hospitality institutes of Switzerland. IHF hosted a line-up of competitions, which
comprised of 3-Tier Wedding Decorated Cake, Chocolate Showpiece, Ice Carving and Fruit and Vegetable
Carving. The judging panel for these competitions was comprised of professional executive and pastry
chefs with French, Austrian and British nationalities. The Gold Medal in the 3-Tier Wedding Cake
Decoration as well as the Chocolate Showpiece went to Victor Hasting of Grand Hyatt Amman. Other
winners include Babiche, Le Royal Hotel, Plaza Superstores, Cafe Moka, Chez Hilda and La Mirabelle.
Honorary certificates were also given to six participants in the popular Live Test Kitchen, who excelled in
introducing cuisines of the World: Indian, Mexican, Italian, Japanese, South African and a Jordanian Set
menu. The Test Kitchen was sponsored by Abdin Industries. IHF also introduced the 1st annual
competition for Table Setting between Jordanian hotels and event planners. The first prize went to
Millennium Events. A number of informative seminars and presentations that enjoyed a high turnout of
professionals, hoteliers and officials who had the chance to participate and exchange ideas with the
speakers took place during IHF. These included:
• “Jordan’s Tourism Industry: Adapting to Challenges”, by H.E. Dr. Taleb Rifai Minister of
Tourism and Antiqueties; Mr. Michael Nazzal, President of the Jordan Hotel Association; Mr.
Zaid Goussous, Vice President of the Jordan Restaurant Association; Mrs. Suzy Boran, Dean of
Amman College and Mr. Marwan Khoury, Director General of the Jordan Tourism Board.
• “Key Success Factors in the Restaurant Industry”, by Mr. Walid Maalouf, Synergy Hospitality
Services and Solutions, Lebanon
• “The Latest in Hotel Management Studies”, Mr. Stephen Fisher, Glion Institute of Higher
Education, Switzerland.
• “How Ammon College Can Help Develop Your Career”, Mrs. Suzy Boran, Dean of Ammon
College for Hospitality and Tourism Education and Mr. Ammar Kanaan, General Manager of
Amman College.
On the margins of IHF, the Belgian Embassy in Jordan organized a special chocolate demonstration
attended by pastry shop owners, hotel chefs, and chocolate manufacturers in Jordan who were introduced to
the history of Belgian chocolate and other aspects such as ways to prepare chocolate using different recipes.
The audience witnessed firsthand demonstrations as well tasting some of the delicious presentations.
In view of the success achieved by IHF 2002, the Organizers have started preparations for next year’s
event which will include additional features and competitions and a larger exhibition spread across three
exhibition halls at Zara Expo - Amman on 16,17 and 18 September 2003.
During September 2002 onwards, “Exhibitors have already booked 80 per cent of the show and it is
likely that the total exhibition space will be filed up much ahead of time. More than 90 companies will be
exhibiting, many brands will be represented directly or through their agents” says Vahe Mekhssian sales
representative at Hospitality Services in Beirut. The show is the right to be if we want to do business in
Jordan, Palestine, Iraq and the neighbouring countries and grab the opportunity to present our products and
find new dealers and distributors. The potential for suppliers to the hotel industry in the Levant region is
tremendous.
“Seminars, workshops and meetings related to Tourism, hospitality and the food service sector will
gather all the hospitality and foodservice key players in Jordan” says Ashqar from Events Unlimited in
Amman. “The show benefits from the support of all the hospitality industry” she continued. Under the
auspices of The Ministry of Tourism in Jordan, social events, test kitchen, workshops organized by The
Jordan Hotel Association, Cyber Space, Barmen contest, Cheese and Wine tasting and a Gala dinner hosted
by The Jordan Tourism Board will be held alongside the three-day exhibition.
The great success that IHF 2001 has achieved in its first year with its business-to-business focus and
innovative approach has established IHF as an annual landmark trade show in Jordan. IHF 2002, to be held
in Amman between 15 and 17 October under the auspices of the Jordanian Minister of Tourism and
Antiquities, H.E. Dr. Taleb Rifai at Zara Expo Amman. Activities on the agenda of 2002 include:
• An international trade exhibition for the hospitality and foodservice sectors covering three
exhibition halls
 • Seminars, workshops and meetings related to tourism, hospitality and the foodservice sector
• Culinary competitions and live cooking presentations and displays by chefs of leading
restaurants
• Table top setting contest
• ..........and many other features and networking events
More than 150 local, regional and international exhibitions are expected to be present at 1HF 2002 to
display products, conduct valuable business, assess new opportunities and prepare for the future.
Significant investments in the tourism, hospitality and leisure industry in Jordan, particularly in Aqaba and
at the Dead Sea, and in the region are underway. These include hotels, resorts, marinas, golf courses,
shopping malls, cinema complexes, theme parks, restaurants, cafes and night-clubs, patisseries, bakeries,
hospitals, universities and others. A Hosted Buyers Programme will bring in many buyers from the region
to raise the number of targeted visitors to IHF 2002 to over 5,000 trade visitors.
The International Hospitality Forum, held in Jordan from 23-25 October 2001, surpassed all
expectations and established itself as the first successful forum of its kind in Amman. The IHF is an
offshoot of the well-known Horeca exhibition, which has been taking place annually in Lebanon since eight
years. It was held at Zara Expo, considered Amman’s leading exhibition center. Around 75 exhibitors from
Jordan, Lebanon, Dubai, Italy, Germany and Luxembourg representing hundreds of brands, goods and
services related to the hotel, restaurant and catering industries participated in the event. “The IHF had a
much better outcome than expected despite the recent political developments,” said Joumana Salame,
Managing Director of Horeca and co-organizer of the IHF, along with the Jordanian company, Events
Unlimited. In view of this, both companies have decided to hold an even bigger event next year on 15, 16
and 17 October 2002. This decision was also confirmed by reviewing the exhibitors’ feedback. In an in-
house survey conducted by Hospitality Services, the company that organizers the IHF and Horeca, only 1
of exhibitors said they would not participate in next year’s IHF. Over 96 per cent rated the event’s
organization as “very good” or “good”, while 86 per cent of respondents said that the exhibition met all
their expectations. “We really did not except something this well-organized and professional,” said Raid
Sweiss, one of the leading Jordanian exhibitors at the event. Exhibitors and visitors alike agreed. “I am very
optimistic about its future,” said Josef Kral, General Manager of the Grand Hyatt Amman. “More people
told me they wanted to participate once they found out how good it was,” he added, Local support was also
strengthened with the participation of the Minister of Tourism, H.E. Dr. Taleb Rifai, and of the Jordan
Tourism Board. Rifai, said that “everybody who is in any way involved in our business is supporting the
Forum.” In addition to the industry professionals, the IHF gathered a number of students from hotel and
training schools who were exposed to the latest trends, products and innovations in the field. A number of
informative seminars and demonstrations of interest to professionals animated the exhibition. One of those
was the Jordan Hotel Association’s Seminar. This event enjoyed a high turnout of professional, hoteliers
and officials who had the chance to participate and exchange ideas with the speakers. The four subjects
addressed were:
• Emerging opportunities for the Hospitality Sector in Aqaba, presented by Mr. Loay al Khatib -
Director of Investment and Development Affairs
• Franchising and the Future of Independent Hotels, presented by the President of the Flamingo
Hotel Management Company in Dubai, Amine Moukarzel.
• Benefits of the Internet on the Hospitality Industry, presented by the CEO of Batelco Jordan,
Marwan Juma.
• How to save Water in Hotels and Restaurants, presented by the Regional Manager of Grohe,
Simon Shaya, who came from Lebanon.
The IHF also witnessed a popular test kitchen, sponsored by Awar company of Jordan. The
presentations boasted the talents of many chefs from well-known establishments such as the Grand Hyatt
Hotel, Kashmir and Argilah restaurant, and Dunes Club Amman featuring fruit and vegetable and Argilah
restaurant, and Dunes Club Amman featuring fruit and vegetables carvings, as well as dishes from exotic
cuisines such as Japanese and Indian. The exhibition also featured a seminar on the art of bartending by
Peet Warmerdam, four-time Dutch cocktail champion, in addition to beer workshops by Amstel and an eye-
catching presentation of six wedding cakes, crafted by leading Chefs from around Jordan.
 ‘Exhibitors have already booked 80 per cent of the show and it is likely that the total exhibition space
will be filled up much ahead of time. More than 90 companies will be exhibiting, many brands will be
represented directly or through agents” says Vahe Mekhssian sales representative at Hospitality Services in
Beirut. The show is the right place to be if we want to do business in Jordan, Palestine, Iraq and the
neighbouring countries and grab the opportunity to present our products and find new dealers and
distributors. The potential for suppliers to the hotel industry in the Levant region is tremendous.
‘’Seminars, workshops and meetings related to Tourism, hospitality and the food service sector will gather
all the hospitality and foodservice key players in Jordan” says Events Unlimited in Amman. Under the
patronage of The Minister of Tourism in Jordan, social events, test kitchen, workshops organized by The
Jordan Hotel Association, Cyber Space, Barmen Contest, Cheese and Wine tasting and a Gala dinner
hosted by The Jordan Tourism Board will be held alongside the three-day exhibition.
The International Hospitality Forum taking place in Amman from 23 to 25 October, 2001 at Zara
Expo was officially launched at Horeca this year.
Jointly organized by Hospitality Services (Horeca organizers) and Events Jointly organized by
Hospitality Services (Horeca organizers) and Events Unlimited (Jordan) this comprehensive event for the
hospitality sector will feature an international exhibition of products and services for the hospitality and
foodservices industries, workshops: product launch and live cooking demonstrations.
Major regional and international companies will be exhibiting their latest products. “Interest shown
by Lebanese companies to exhibit at this event has been very positive” said Vahe Mekhssian in charge of
promoting the show in Lebanon.
While visiting Horeca on April 5th Jordanian Minister of Tourism Akel Biltaji wrote the following in
the visitors book: “this is the most organized and comprehensive exhibition of food and hotel equipment in
the Middle East (....) we in the tourism industry feel such events bring standards to international levels and
put competition as a benchmark. Good Luck and we look forward to receiving you in Jordan in October.”
FEDERATION OF HOTEL AND RESTAURANT ASSOCIATION OF INDIA (FHRAI)
The apex hospitality trade association of India provides a constant interface between industry,
political leadership, policy formulation, academics and other stakeholders. It is committed to adding value
to its services and enhance the quality of benefits to its members. It Promotes members business nationally
and internationally, it finds out the latest International and national trends, news, best practices and
statistics. Keep its members updated on latest government circulars, notifications and legal issues. Helps its
members in building capacity in the industry and develop Human resource potential for future expansion. It
represents members providing rooms in over 354 cities all over India. It has conducted over 43 training
programmes in 16 cities for professional development of industry personnel. It has distributed over 65
international quality informative publications to its members till date. The Indian hospitality industry
contributes 3-5 million dollars to the exchequer every year. Over 100 industry players advertise with
FHRAI. The industry employers over 15 lakh people.
FHRAI AND ENVIRONMENTAL BENCHMARKING
Benchmarking is the continuous systematic process of measuring and once products, services and
practices against those of recognized leader to determine the extent to which one can improve the
organization’s performance.
Benchmarking in recent years has proven to be a valuable tool for or committed to continual
improvement, particularly in the area of performance. Through benchmarking, the management can
compare their organization against those of a highly successful organization that identified as an exemplary
performance. Benchmarking help the man assess the status of its environmental performance and to
identify improvement as needed. This is an ongoing process of collection and assess data and information
to provide a current evaluation of performance, performance trends over time.
Benefits of Benchmarking
• Serve as a data analysis tool;
• Compares sector performance with the others on energy, environmental performance and
productivity;
• Relates energy efficiency/productivity to technology, management and practices;
• Presents the good management practices currently in operating national and international levels;
• Provides decision support for setting process targets and a benefit analysis;
 • Presents the sources and suppliers of clean technologies and services;
• Defines the access and the sources of finance and funding; and
• Above all it gives the management clear understanding, where to performing among the others
in sector.
Accuracy of the benchmarking model depends on the following:
• The benchmarking model developed will provide benchmark is provided the user hotel member
provides the input data accurately.
• Small data entry error by the user hotel can cause a significant result
• This benchmark model is applicable for a single hotel member registered and the same cannot
be used by the other hotels
• All the benchmark values provided in this model are mostly related category hotel and there is
no correction factor introduced for other hotels.
HOTEL INDUSTRY IN INDIA
India is recognized as a land of friendly atmosphere and hospitality at globe. People offer all possible
help to the travellers. ‘Guest is God’ is the typical Indian tradition. Its history goes back when the necessity
and urge to travel for food or animals led to the setting up of places where rest and food by the travellers
could be obtained. The people of India have travelled long distances either for pilgrimage, or for trade
purposes. There were no hotels in the ancient times and the needs of the travellers for food and
accommodation were mostly met by the house-holders, which are still existent in the interior areas of the
country For facilitating travel is North, South, East and West parts of the country, kings and rulers took the
responsibility themselves. They built Dharmshalas, constructed roads, planted trees and also arranged
drinking water. Improvements in the means of transportation and communication have resulted in the
establishment of accommodation in the major cities of the country. However, as far as the modern lodging
facilities are concerned the credit goes to the Britishers. By the early 18th century plenty of taverns with
fashionable names like George’s, Parsei George, Victory hotel and luxurious Hope Hall were in existence
in the country. David Prince in 1778, could find the hotel accommodation in India. David Prince who
visited India stayed at Macfarland Hotel, Mumbai which was a luxurious and expensive hotel. Victory hotel
and Albion hotel were perhaps the first to acquire the name ‘Hotel in India.’ However, these early hotels
were owned as well as used only by the Britishers. The credit for opening the first western style hotel goes
to Pallongee Pertonjee in 1840, when he started the ‘British Hotel’ in Mumbai. He is known as the pioneer
of the western style hotels in India, for his reputation and efficient management. Subsequently, Auckland
hotel was also started in Calcutta in 1843, which was renamed in 1858 as ‘Great Eastern Hotel.’ The first
large scale hotel in the country was opened in 1871 by Mr. John Wakson named ‘Esplanade Hotel’. The
hotel industry then grew rapidly and by the end of 19th century there were a number of hotels in India. The
20th century was a turning point in the history of the hotel industry in India. It is this century that we find
the real growth and development of the accommodation sector. Ownership has changed from sole
proprietors to corporate and big business owners and new entrepreneurs have also entered in the field of
accommodation sector. In 1902 there was a significant event in the history of hotel business when the
Indian Hotel Company was incorporated on 1st of April 1902 in Mumbai with the authorized capital of Rs.
30 lakh. In 1904, J.N. Tata opened the Taj Mahal Hotel in Mumbai. There after a number of other hotels
were opened such as Ajanta, New Woodland Grand Hotel, Associated Hotels of India Ltd., East India
Hotels Ltd., Oberoi Hotels, Cecil Hotel, Wild Flower Hall etc. Subsequently for the first time in India it
was pointed out by the Sargent Committee (1945) that they were facing a serious problem of
accommodation. After Independence, many more private sector and public sector entrepreneurs entered
into hotel business such as Indian Tobacco Company Ltd., Air India, Hotel Corporation of India Ltd., India
Tourism Development Corporation and the Clarks Group of Hotels. Since globalization and liberalization,
the International hotel chains have registered there presence in India. A Park Royal Hotel in New Delhi has
recently been opened under the banner of South Pacific Hotel Corporation (SPHC). Presently, in India, the
accommodation capacity of 52,000 rooms is slated to go up by 80,000 and the target of 1,12,000 rooms by
2000 AD is likely to be met.
Hotels Classification
Accommodation sector is the most important component of tourism Industry. Tourism, today is used
as the most effective and powerful tool for social and economic development of a country. However, India
is comparatively a new-comer in the International tourism and hotel market. It started with the Indian Hotel
Company, Taj Group of Hotels, and Oberoi Group of Hotels. India has just reached at a stage which can
only be expanded with more investment and financial and non-financial incentives granted by the
Government from time to time. A hotel is an institution or a building in which lodging, meals and other
services are provided for the travelling people. In addition, it also provides amenities and facilities like
room services, laundry services, valet, sundry shops, auto rentals, airline ticketting, tour reservation,
transport, banking and postal services etc. Thus, it is said that “a hotel is a world within a world with its
own peculiar movements and fashions.” A hotel has a wide range of business activities which can be
grouped into four categories:
• Providing accommodation
• Supplying food and beverage
• Having transportation, recreational and entertainment facilities
• Other activities incidental to business.
A hotel is a fixed immobile installation. Its products i.e., accommodation + Food + Beverage and
other services cannot move to the tourists. It has an open and unique system because customers/tourists
enter the hotel boundary, consume the products within it and return with intangible product while the other
industries or plants never permit the consumers to enter its boundary and consume the product within its
boundary, inspite they return with a tangible product. Therefore, a number of factors are acting together
which put a great demand on the hotels for its products. The main are:
• Increasing population
• Rapid urbanization and growth of cities
• Broader parameters of tourism
• Proliferation of economic transactions, interaction, sports and recreational faculties
• Proximity to other large towns and accessibility.
The classification of hotels within the industry is a complicated task. Hotels are of various types
depending on the factors like the nature and types of facilities offered. The classification in a real sense
means that which separates accommodation into different categories or classes for example hotels, motels,
tourist lodges, resorts, heritage hotels, youth hostels, inns, Yatri Niwas, holiday camps and so forth. It
presents information about accommodation which enables the travel companies, travel agents, tour
operators and tourist to reserve accommodation as and when it is required. Lodging establishments are
classified on the following basis:
A, Physical Characteristics
• Hotels
• Motels
• Resorts
• Roatel
• Floating hotels
• Conventional hotels
• All-suite hotels
• Condotel
• Heritage hotels.
B. Tarriff Pattern
• American Plan
• European Plan
• Continental Plan
• Modified American Plan
C Size
• Small Hotel — 25 Rooms or less
• Average Hotel — 25 to 90 Rooms
• Large Hotel — 250 and above Rooms
D. Price Level
• Luxury hotels
• Executive/First class hotels
• Tourist class hotels
• Budget hotels
E. Facilities and Degree of Comfort
• 5 star deluxe hotels
• 5 star hotels
• 4 star hotels
• 3 star hotels
• 2 star hotels
• One star hotels
F. Geographic Location
• Mountain Hotel
• Hill Resorts
• Beach Resorts/Hotels
• Forest Hotel/Resorts
• Farm Houses
Hotel Room Types, Location, Bedding and Rates
Selecting the right type of accommodation for the right person at the right time and place is one of the
most important decisions to be taken by a tour planner. Type of room, location, bedding type and room
rates are the prime factors in most of the requests, whether it is business man who does not want to waste
time in getting his appointments or holiday travellers who want to get away from the hub of life or others
who need accommodation. Thus, the tour planner must understand the nature of the room, its type, location,
bedding and rate for a particular client. Let us understand all these things in detail.
Type of Room
 Earlier hotels usually had only one room category and charged from all the guests the same rate.
However today, due to the rapid growth and diversification in hotel industry, several hotels provide
different types of rooms and different rates are charged from the clients. The following basic-room-
categories are widely used:
• Deluxe Room—It contains extra amenities such as refrigerator, stock of beverages and a
minibar. The bedding in a deluxe room usually consists of one or two queen beds or one king
bed. It has a prominent location and the highest comfort.
• Suit—It consists of separate living and sleeping areas, with cooking facilities. A bedroom suite
may have one, two or three bedrooms in addition to a living room or a parlour and a full
kitchen. It has been noticed that some suites also have conference rooms.
• Superior Room—A superior room may have the same comforts and furnishings as in a deluxe
room but it has a less desirable location or a smaller bedding. Usually, the location is on the
ground floor. The rate and bedding depend on the property as in case of international hotel
chains the bedding and rate will be higher as compared to other properties. Bedding usually
consists of one or two double beds or queen beds, or one king bed.
• Standard Room—It consists of one or two double beds; one queen bed or two twin beds.
Rooms in this category usually do not have a view and may be located in the least convenient
section of the hotel.
• Economic/Budget Room—This type of room is usually used by the budget class tourists and
might be given at low discounted rates. Budget rooms are smaller than other rooms in a hotel
and also has a smaller bedding.
• Bedding Types—Besides the room category, the tour planner also had to understand the types
of beds because some people want to stay in those hotels where they can find bedding
according to their desire/need.

The main bedding types are:

1. King Bed—In king beds, one will find the largest mattress size i.e., 76 inches wide by 80 inches
long. These type of beds are provided only in suites or deluxe rooms.
2. Queen Bed—It is about 60 inches wide by 80 inches long. A room with queen beds may have
either one or two beds.

3. Standard Double Bed—A standard double bed in 54 inches wide by 75 inches long and is
usually provided in standard and economy rooms. A room may have either one or two beds.
4. Twin Bed—It is about 39 inches wide by 75 inches long and is designed for one adult. In most
of the cases a room equipped with twin beds has two beds.
Room Rates
It has been noticed that in almost all hotel properties, the rate of various rooms are based on room
location such as pool side, ocean view, beach front, market front, ground level and suitability to the
handicap. One more thing should also be clarified before a room is booked i.e., the taxes. Various states,
countries or cities impose taxes on hotel rooms. Such taxes may be called room tax, hotel tax or bed
lodging or value added tax, etc. The ranged tax is from 2 per cent to 20 per cent. Generally, the room rate
exclude these type of taxes. But what actually is a room rate?
 It is true that room size, location, type and rate vary significantly from one property to another and
often within the same hotel. The price charged from the traveller by a hotel for the right to occupy a room
is known as room rate, which is based on the season i.e., a peak or a lean season. Mostly in peak season the
hotels charge a high rate whereas in a lean season low rate is charged. However, the following room rates
are mostly followed in hotel industry:
1. Rack Rates—It is a standard rate charged by a hotel from the guests. Basically, it depends on
the room category and bedding type rooms sold to an individual at the rack rates are called
transient rates.
2. Group Rates-—It is a discounted rate based on the purpose of a pre-set quantity of rooms. For
example, when rooms/accommodation is required for the attendees of convention, conference
or a meeting, the hotel charge a discounted rate because it increases the sale of rooms during
that period or it provides a consistent cash flow.
3. Package Rates—Many hotel chains offer a complete package of hotel products. It means hotels
provide/offer accommodation and other components in a package such as a new year’s eve
package or a tennis resort that offers a package rate that includes tennis court fee as well as
accommodation in a seasonal package.
4. Wholesale Rate—It is also known a tour rate. It is given to wholesalers or tour operators who
buy the rooms in bulk. In some properties, it is a fixed rate, while in others it is negotiated by
the tour planners. Usually the tour planners fix this rate for a specific period, say one night or
peak or lean season, before the client itinerary is made.
5. Special Rate—It is known as promotional rate and is offered to corporate clients, government
employees, travel professionals, military personnel and repeat customers.
6. Family Rates—Some hotels provide free accommodation to the children with parents, under a
specified age. However, additional rates are charged if extra facilities are provided to the
children.
7. Run of the House Rate—If, for some reasons, a hotel management cannot guarantee a particular
room type, a special rate may be offered for the best room that is available at the time of check-
in. For example, rooms that are sold by hotels at tour rate are based on the run of the house.
Evaluating these facts we find that the selection of accommodation is very important in tour planning,
whether it is a simple booking for one night or for a full tour. But sometimes it can be one of the most
difficult area in travel planning due to the limited number of hotels, and the lack of hotel ratings that are
good and factually due, which can be depended upon for unbiased opinion. Unless the tour planner himself
has a personal knowledge about the hotels, he cannot rely on the claims in the brochure and the current
hotel-rating-lists available in the market. The hotel brochure presents the most attractive pictures and the
most glowing descriptions. Hotel ratings vary according to the system used at a particular
destination/country. Almost every country has of a different hotel classification system and the hotel rating
is based in the classification of property. Thus, a uniform system of hotel rating would benefit the entire
travel industry and would simplify the tour planner’s job in selecting a hotel and in providing exact
information in the tour itinerary.
Accommodation’s Reservation
The travel industry interaction has shown that different tourists require different types of
accommodation for example American tourists want private baths; German, Australian, English, French,
Italian and even the Indian outbound tourists have their own requirements concerning the accommodation.
It has also observed that this requirement is different for business travellers, corporate travellers and others.
Generally, tours are sold on a two person per room basis, that is usually referred to in the industry as twin-
in-sharing. However, those wishing to have a single room are charged a single room supplement.
Therefore, tour planner/ manager must strike a balance in obtaining quality accommodation at a price that
is affordable so that the largest market can be solicited for participation in the tour. Further, tour planner
must take a familiarization trip prior to the development of the client itinerary.
During the Tarn Trip’ the tour planner must identify the requirements of various lodging properties
for tours that he is going to organize. He may have various sources for collecting information regarding
hotels such as:
• Hotel and travel index
 • Tour and travel planners
• Official hotel and resort guide
• State and national tourist offices
• IATA index
• Other sources available as hotel sales representatives, referral organizations, airline computer
reservation systems and his own’s reservation office.
Hotel reservation means an advance request for accommodation. The reservation is the most
important function of hotel management which consists of receiving, documenting and analyzing room
requests. It is also known as selling accommodation. Mostly hotels perform this function through sales
representatives, own’s reservation offices in different locations, travel agents, airlines, cruise companies
and tour operators.
Before the reservation of accommodations, the tour planners and hotel managements enter into a
contract. Practically, the negotiation for the price or room rate is based on two types of contracts between
the tour planner and the hotel management. These are:
• Guarantee contract
• Allocation contract.
Generally, the request for reservation for a Foreign Independent Tour (FIT) or group tour should be
in writing, either in the letter or on a pre-printed reservation form and it should be sent as far as possible in
advance. However, for individual domestic tours or group domestic tours, telephone is the quickest and the
most efficient method of making request for hotel reservations. Some tour operators have devised their own
types of hotel request forms and print it locally. The request forms are usually in different parts, may be in
three to five parts. An original and two duplicate copies are sent to the hotel. The hotel management then
return one of the duplicate copy with either their confirmation or their refused on the request. The third
copy is replaced in the client’s file, The other copies are used in ‘commission due’ and book keeping
purposes.
The tour operators /tour planners make the reservation on the basis of following information:
• Number of people in a particular tour
• Number of rooms required
• Room type desired
• Client preference
• Number of children
• Arrival Date
• Departure Date
• Name and address of clients
• Method of arrival
• And other requirements, i.e., need a plan, single room.
On the basis of this information a tour operator purchases rooms in bulk, negotiates prices or rates,
confirms and makes it sure that the accommodation is according to his itinerary planning. However, the
success of hotel reservation lies in good relationship, communication and understanding between hotel
management and tour management. It is the tour planner’s responsibility to forward exact information on
each booking and it is the hotel management’s responsibility to keep the tour planner or tour manager
informed on the current or proposed developments which may effect the decision in hotel selection. It is
also the hotel management’s responsibility to honor confirmed reservations made by the tour planner.
Today, many tour companies are using Computer Reservation Systems (CRS) for the reservation of
accommodations. This system can be used either in producing a list of participating hotels in a specified
city or to indicate the room types and rates that are available in each hotel property for a specified period.
The property description containing information about facilities, reservation policies, room options, credit
cards, hotel vouchers, and acceptances, can be obtained through a computer. The computerized reservation
systems in the hotel industry were first used by Sheraton Group of hotels in 1956. These were further
developed and refined by Holiday Inn in 1960 and since then this system have gone through a generations
of refinements. Today, almost every hotel and hotel chains have their own computerized reservation
system. This has helped the tour companies in the quick reservation and confirmation of their
accommodations. Another dimensions of information technology is Internet’ which has charged the entire
structure of travel industry distribution in the world. Now, the tour planners can see on the screen how the
accommodations look like and what are the facilities and amenities that are available in the hotel.
Payment for Hotel Reservation
Whether the room are purchased in bulk or a single room is booked for one night, the tour operator
has to make payments on behalf of his clients. Therefore, a client/group of tourists does not pay the dues to
the hotel management for the use of accommodation and services. He simply shows the hotel voucher or
any other document issued by the tour company. The document is issued by the tour company for hotels,
starting that the individual/group has already paid for it and is entitled to use certain types of rooms and
services. The document serves, both, as a reservation/confirmation voucher as well as a receipt for the
money collected by the travel/tour company. The hotel voucher has three parts, the top part is for the client
and the bottom part is sent by the hotel to recover the payment from the tour company.
The tour companies are entitled for commission on reservation. The rate of commission vary from
property to property, city to city or country to country. In many cases, tour operators collect money from
the client for the accommodation in advance and send to the appropriate hotel the collected amount by
deducting the commission from it. This is usually done in the case of foreign hotels. In the case of travel
agents, the commission is the main source of income, whereas in the case for a tour operator, the
commission hardly matters, as he is concerned with his profit or loss because he has purchased the
accommodation in bulk.
The payment for the reservation is made by the tour operator in different ways like:
• Partial payment
• Full payment
The mode of payment is based on the contract between the tour company and the hotel management.
However, in case of foreign hotels or overseas hotels, the payment is made periodically as per the
agreement with the currency control officials.
It would be advisable, if the group is not escorted by a staff member of the tour company, to select a
member from the group to act as a liaison between the hotel management and the group members. The
group should also be advised that each individual of the group must pay those charges which are not
included in the price of the tour.
Significance of Hotel Industry
Today, hotel industry is getting momentum not only in India but at global level. The World Tourism
Organization (WTO) has entitled that there will be more than 20 million rooms worldwide in the
accommodation sector by the end of this century. The world’s inventory of rooms will also increase by 4
per cent annually.
Since 1990, many Indian and Foreign companies are entering in this fastest growing industry. The
Government is also motivating the private entrepreneurs to enter into this venture by giving them various
financial and non-financial incentives because they can contribute much towards Indian economy such as:
• Employment generation
• Foreign exchange
• Balance of payment
• Rural development
• Development of transportation and communication
• High standard of living.
However, success of the hotel industry is based on the Government’s policies towards the development and
promotion of this vital sector of Indian economy. Therefore, to give a boast to this industry in matters of
profit, employment generation and overall development of Indian economy, there should be an effective
and positive role of the Indian Government at the regional and national level.