The Hospitality Service Strategy

Section 1
 The Basics of Wow!
The Guest Knows Best
Chapter 1
 Hospitality Industry
• Food, drink, and lodging services
– Theme parks
– Airlines
– Gaming
– Cruise ships

(continued)
 Hospitality Industry
• Food, drink, and lodging services
– Trade shows
– Meeting planning
– Conventions
 Guestology
• Guests versus customers
• Treat customers like guests
• Guests are studied
– Behaviors observed
– Wants, needs, and expectations discovered
– Service product tailored to meet demands
 GUESTOLOGY
• Is a term originated by Bruce Laval of
The Walt Disney it means that all the
organization’s employees must treat
customers like guests and manage
the organization from the guest’s point
of view “GPOV”.
 GUESTOLOGY
• It has been proven that guestology
makes good business sense; actually it
is the standard in the service industry.
• "When put in practice guestology makes
it possible to increase guest
satisfaction, which leads to more
repeat visits, which in turn
drives revenues up."
 GUESTOLOGY
• Changes the way traditional
thinking operates. The goal is to
create and sustain an organization
that can effectively meet
the customer’s expectations and
still make a profit.
 Customer Expectations
• Drive customers’ evaluation of quality and
value of experience
• Key drivers
• Guestologist
THE SERVICE INDUSTRY
 Service
• Definition
– Intangible part of transaction relationship
between provider organization and its
customer, client, or guest
• Service package
– Tangible
– Intangible
 Nature of Services
• Partly or wholly intangible
• Consumed at the moment or during period
of production or delivery
• Interaction between service provider and
customer, client, or guest
 Interaction Relationships between
Customer and Service Provider
Service • Hospitality • Lawn service
provider • Medical • Watch repair
present • Professional
Service
• Electric/gas utilities • Answering services
provider • ATM • TV security services
not present • Vending machines
Customer present Customer not present
 Service Industry
• Industrial  Service  Experience
Economy Economy Economy
• From acceptable goods to memorable
experiences
• Tangibility
 Guest Experience
service product + service setting + service delivery system

• Unique experiences
• Servicescape
• Service delivery system
 Service Encounters
• The heart of service
• Moment of truth
• Critical incident
• Organizational use in the future
QUALITY, VALUE, AND COST
 Quality
• Difference between quality guest wants
and quality guest gets
Qe = Qed – Qee
• Affected by changes in guest expectations
or organizational performance
• High Qe  exceptional service experience
• Independent of cost or value
 Value
• Quality of guest experience divided by all
costs incurred by guest to obtain
experience
Ve = Qe / all costs
• Low quality and low cost
• High quality and high cost
• Adding value
 Cost
• Price
• Opportunity costs
• Time
• Risks
• Tangible and intangible
• Financial and nonfinancial
Who Defines Quality and Value?
• Intangibility and variability
• No objective determination of quality level
• Only guest can define quality and value in
hospitality field