CHAPTER 2

CUSTOMER SERVICE THROUGH QUALITY MANAGEMENT

Customer Service Quality is a major difference between excellent, poor and indifferent businesses.

To be successful, a hospitality or tourism business must guarantee that its customers get high- quality
service.

Every reputable business should aim to portray itself in the best possible light and enhance the
quality of its services and surpass client expectations

Nature of Service
1. Services are partially or entirely intangible
2. Consumed at the moment or during the period of production or delivery
3. Services interaction between the service provider and the consumer is required

GUESTOLOGY
Dickson (2010) defined guestology as the scientific study of behaviors, needs, and expectations of
people in a service environment.

Entails the totality of the guest experience, from their expectations down to the results and feedback.

Klein (2014) -knowing the guest needs and wants, perception and expectations.

Disney's Quality service model uses a quality- service compass known as

Guestology.

1. Service Standards- setting standards for all aspects of service delivery

2. Cast- defined as the company's employees; infuse quality service right from HR planning to
recruitment, selection, training, and development.
3. Setting- atmosphere, facilities, and equipment used by the business to offer its customers the
highest quality service
4. Process- methods used to provide the services
5. Integration- integrating the actors, settings, and process into simple operating system
6. Service theme- when communicated with employees, this is a simple phrase that acts as
motivation for fulfilling customer's requirements.

CUSTOMER EXPECTATIONS

Customer expectations include:

• what the hotel or restaurant can do and should do
• how employees providing service will behave
• What will the physical setting look like
• What their role/ responsibilities will be
•How they will address / act
• Cost and value of successfully delivered service
1. First- time customers construct their set of expectations on advertising, recognizable brand names,
promotional gadgets, prior encounters, their imaginations, tales and experiences of individuals they
know.

Marketing department typically bears primary responsibility in setting customer expectations.

2. If a hospitality organization fails to disclose such information, customers will gather or infer it from
other sources

Guestologist- responsible for planning customer satisfaction

- ensuring that everything is in place when the guest's senses first come in contact with anything
about your establishment
• Establishments geared toward delivery of services in tourism and hospitality should always be
careful not to over- deliver the said services.
• Food attendants or waiters should literally "wait" for their guests when dining in a restaurant.

Depending on the service desired, most of our guests have general similarities when it comes to their
expectations. The usual expectations include:
• Establishments be clean
• Staff are courteous
• Responsive
• Reliable
• friendly

Ekiz et al. (2012) noted in their article that even in luxury hotels, there are still basic problems that are
actually unresolved.

The enumerated problems in the article are the following:

1. Rooms- with concerns extending from small size rooms with no modern technology
2. Arrogant and/or clueless staff
3. Failure to respond
4. Poor delivery- late service/ wrong room service
5. Amenities and utilities- lack/ inadequate toiletries
6. Billing- with guests grumbling of extra charges

Customers/ Guests/ Clients

Customers also known as guests and clients, in the hospitality and tourism business play a significant
role in the operations.

The Corporate Finance Institute (2015) has identified five basic types of customers that hospitality
and tourism enterprises should be aware of.

1.LOYAL CUSTOMERS- the most important segment to please and should be one of the priorities
• Represents no more than 20% of the customer base but actually drives the majority of the sales
revenue.
• Bearer of positive word of mouth (WOM)
2. IMPULSE CUSTOMERS- best type to do suggestive selling
• Second to the loyal customers when it comes to attractiveness in the market
• Receptive to recommendations on products
• What they say also matters in generating more revenue
3. DISCOUNT CUSTOMER- contributory to a company's cash flow; affects the company's inventory
turnover
4. NEED- BASED CUSTOMER-driven by specific needs
- They buy for specific reasons and occasion; it may be difficult to convince them to upsell.
- Easily drawn to other businesses, much more if the price is cheaper and the alternative
product can also serve its purpose.
5. WANDERING CUSTOMERS- generate the largest amount of traffic as they have no specific need
or desire in mind
• Yield the smallest percentage in sales revenue
• Spending a lot of time trying to please this segment can draw away the other segments.
INTERNAL CUSTOMERS- people which depend and " serve" each other
-they are the one who are actually doing the service process
-they understand the feeling of being served together with the toil of hard work that goes with it

QUALITY AND VALUE

The measure of quality for guests is actually based on the difference between their expectation and
their experience

Value is relation to quality, would entail the study of cost.

To measure the value delivered from a guest experience, we need to match if the costs incurred total
or equal to the quality of the experience

THE CUSTOMER AND THE DEFINITION OF VALUE

Hospitality and tourism industry is guest- centered or customer-centered
- it is the customer who defines value
- For the guests, the quote "To see is to believe", works so much.
- The output will be the ultimate measure whether a service design has been crafted excellently.

MEETING CUSTOMER EXPECTATIONS

Operations Department- has the primary duty of living up to the expectations set by the marketing
department and repeat customer's previous visits.
1. The hospitality company must meet or surpass the expectations of its customers to maintain its
reputation and client base.
2. Challenges for hospitality businesses: correctly estimating customer expectations and delivering on
those promises
3. If a company cannot deliver on its promises, it doesn't make them in the first place.

MEASURING CUSTOMER EXPERIENCE

1. Serving Internal Customers
a. Hospitality companies serve many internal customers, people, and units that are interdependent
and mutually “served”.
b. Employees have high expectations, and the company must live up to or even go above and
beyond those expectations.
2. Increasing Competition
a. Customer loyalty and money are fiercely competitive, and this will only intensify in the future.

Components of Customer Experience

Customer Experience is all about how the customer feels about their interactions with a service
provider throughout a particular event or series of events.
CUSTOMER EXPERIENCE= service product + service delivery system

Service Product
- Also known as service package or service/ product combination
• The primary reason a customer visits a hospitality or tourism business.
2. Service Setting
- The location or environment in which the encounter takes place
• Second component of the customer experience
SERVICESCAPE- used to define the physical elements of the environment that contribute to the
guest's overall "feel" of the encounter.
3. Service- Delivery System
- This includes human components and physical production processes as well as organizational
and information systems and techniques that help deliver the service
• Third component of the guest experience
CHAPTER 3
STRATEGIES FOR QUALITY SERVICE IN THE TOURISM AND HOSPITALITY

To bridge the gap between the expectations and perceptions of a guest in a hospitality and tourism
setting, it is a must to plan his/ her experience carefully.
• A productive guest encounter is expected to yield optimum experience.
• Critical planning is very much important to properly design and ensure that the best experience is
the only experience a guest will receive.

In planning the guest experience, strategies are employed to be able to deliver processes for each
issue that needs to be resolved by the management.

STRATEGIES
-plans that are designed to achieve a specific aim of the

It usually involves setting goals, planning actions to achieve such goals, and maximizing resources to
achieve the goals.

Hospitality, Tourism and Strategies

Strategic planning has been utilized extensively for developing tangible products rather than used in
service-related industries like hospitality and tourism.

With the marketing nature of tourism products and services, it is evident for establishments to draw
their market toward services, strategy plays a critical role.

Strategic planning is the process of identifying a company's internal and external characteristics
which will contribute to the attainment of its goal pointing to a specific direction while formulating
different policies on how best to achieve it.

With strategic planning in mind, three elements make up its components.

1. Identification of long term goals and objectives concerning the conceptualization of coherent and
achievable strategic objectives.
2. The adoption of different courses of action should also be in place to assure that
actions taken to arrive at objectives are already set.
3. The allotment of resources is also set in place.

Porter's Generic Strategies (Michael Porter)

-help a decision maker to make the best choice for his or her company.

He identifies three strategies in achieving competitive edge in his book, Competitive Edge.

1. Cost leadership strategy focuses on increasing profits by reducing operational costs and
charging lower prices.
• To implement this strategy successfully, a company will need to invest in new technology and to
have efficient logistics.
• A company must also make sure that its spending on items such as labor, materials, and facilities is
kept low.
• It is essential that accompany beats its competitors on cost so it will need to continually monitor and
reduce its costs
2. The differentiation strategy focuses on making a company's service attractive and unique in
comparison to those of its competitors.
EXAMPLE:
A hotel utilizing green technology in its operations. This hotel can boast of adhering to the call on
sustainability and environmental stewardship by integrating this concept in its day-to-day operations
3. The focus strategy concentrates on developing services for niche markets.
•Using this strategy requires a deep understanding of the customer's needs of a company.
• Its aim will be to meet these needs by providing that something special and extra that the customers
cannot get anywhere else

First type of focus is on cost leadership strategy or cost leadership in a narrow or focused market.
• An example would be the study hubs in the university belts.
-They specifically target student guests that are looking for cheaper alternatives to hotel lounges
wherein they could spend their time studying.
-They do not provide for everyone but only for students, which is why their price is relevantly low

Second type of focus is on differentiation in a narrow or focused market.

• An example would be a coffee shop which adapted the drive through business model.
-It focuses on guests who do not really necessarily want to sit down and have a cup of coffee.

Internal and External Assessments

• Internal analysis is where an organization takes stock of the resources and assets that it possesses.
These include the strengths that enable an organization to function well. Experts refer to this as the
"secret sauce" of an organization.
• Moreover, internal analysis also flaunts the weaknesses of an organization.
• These weaknesses are identified not to dwell onto, but to be addressed and resolved so that they do
not harm an organization.

An external analysis, meanwhile, does not rely on the "secret sauce".

• How a company positions itself in the market with respect to its rivals in its particular space is of
primary concern.
• Attention should be focused on what a company is good at relative to its rivals in that industry.
• Doing external analysis not only determines a company's position in the external environment, but
also showcases its opportunities and threats.
• Identifying a company's opportunities and threats, through different tools, exhibits what it needs to
be wary about which somehow are uncontrollable to a certain level.

Strategizing for the Future

Ford (2011) stated that hospitality and tourism organizations must plan to cope with changes in the
future.

1. Demographics
Changes in the workforce and the market of the hospitality and tourism sector will continue to affect
the operations of the industry, and this is relevant not only to the service providers, but also to its
market.
2. Economic and natural forces
Economic and natural forces also change the nature of the industry and how it is managed by the key
stakeholders of this fast-growing sector.

3. Competitors
The presence of competitor brings out major changes in the industry.
• Movements between competitors shift from time to time and create different relationships between
which also affect other relationship that will be made in the future.

Bengtsson (1999) explained and identified these relationships existing in competition. She mentioned
that in analyzing the relationship between competitors, four types can be distinguished.
1. Coexistence exists on social exchanges between competitors.
As economic exchange and bonds are not present, each competitor knows about each other but does
not interact with them.
2. Another relationship is cooperation, which also exists in this scenario. As this concept is present,
there are frequent exchanges between the players which comprise of business, information, and
social exchange.
3. As expected, competition is another relationship that is based on an action-reaction pattern, which
means that if a player launches a product or service, the other competitors will definitely launch a
similar, if not the same, product with some developments.
4. Lastly, a new relationship has existed. It is called co-opetition.
-Simply, it means cooperation between competing players. This relationship includes economic and
other forms of exchanges.

Other Stakeholders and Relevant Groups

1. Resource Suppliers. A company cannot continue its operation without raw materials, equipment,
and other supplies.
2. Capital Suppliers. Another player that we need to consider is the suppliers of capital. Now that the
capital market is international and electronic transfers are now available, suppliers can now move in a
faster pace, which makes a company vulnerable.
3. Labor Supply. As the pool of skilled employees is also of utmost importance, as they also shape
the market.
-Without a stable labor supply, the tourism and hospitality operations will be greatly affected as they
drive the operation itself.

CHAPTER 4
THE GUEST AND THE SERVICE SETTING

The setting of the service contributes to the overall experience of a guest.

• This is why even though the service delivery is impeccable, it seems that there is something lacking
in the process.

The Servicescape
The servicescape is the actual, physical environment where the act of service is performed, delivered,
and consumed.
It is very important because it is the area where the service team and the guest interact with each
other.

Rutledge's Principles of Design for Tourism and Leisure-related

Establishments

Albert J. Rutledge introduced certain principles on how to effectively design establishments for the
purpose of both the guests and the employees as they are the ones who usually utilize establishment
spaces
1. Everything should have a purpose
There should not be any area without any function. Therefore, there should be a good relationship
between the different parts of an establishment. The parts are as follows:
a) Natural Elements- These areas include the land itself, water areas and plants.
b) Use Areas- These are areas where there is an interaction between guests and the service staff
most of the time (dining room floor, parking area and game rooms.
c) Major Structures- In large complexes, these pertain to building and dams.
d) Minor Structures- These include utility areas, benches for guests, walkways and pathways. For
large outdoor complexes, it is important to establish a good street system and internal road network
so that guests would not be lost and to ensure quality of experience.
e) Forces of Nature- These include wind, sun and rain effects.
2. Design should be for both employees and guests
- When planning for space and allocations of the servicescape, it is important to consider the
physical strengths and weaknesses of the site.
3. Function and aesthetics should be present
- In designing the hospitality and tourism workplace and guest experience, both the concept of
function and aesthetics should be considered.
4. Set up substantial experience for the guests and employees
 - It is important that when a guest or an employee comes in contact with the servicescape,
he/she can immediately answer the question, "What is." "What is in the store for me?" or "What
is the reason that I am here?"
• To set this up properly, the resort to "theming" is usually established.
5. Set up an appropriate experience for guests and employees
- If principle 4 discussed the answer to the question "What is." then this principle will now
answer the question "Why it is." Why is it there? Are the elements of the site supposed to be in
such fashion?
6. Adhere to technical requirements
- This design element is a little bit easier to understand but entails a lot of resources to comply
with.
• For a facility to function properly and serve its guests and employees, it is required for the owner
and the management to follow and procure necessary procedures for proper implementation of
design.
7. Comply with the needs in the lowest possible cost
- For developers of hospitality and tourism establishments, it is very important that the lowest
possible cost be utilized for maximum profitability.
8. Establish design with less supervision
- It is the dream of any owner, developer, or designer that a concept be implemented with least
supervision possible, as this would also cut on the costs for the facility.

IMPORTANCE OF SERVICESCAPE
- The concept of servicescape is very much significant in designing the entire guest experience
within the context of tourism and hospitality.
Expectations
- The environment greatly influences guest experience, even before the service process.
- Peiro- Signes (2014) in his research shows that environmental certifications give luxury hotels
competitive advantage; allow market share gains with their group.
Mood and Emotion
• It sets the mood for the guest and somehow evokes their emotion along their experience.
• The mix of the different elements will considerably affect the guest's mood even before he/she
enters and establishment.
• Ellis (2008) in his study shows that experience staging is very important most especially in
recreation establishment

Employee Satisfaction
- The service setting also has an impact on the workforce- who do not even use the service but
are affected by it.
- Naturally, the service setting should be clean and orderly, conducive to work in, and well
designed

Service Production Factory

The setting may only be a backdrop but in reality it is where the guest co-produces the experience
with the different aspects of the service product.

Heide (2007) emphasizes the role of architecture in shaping the quest experience and how they react
on it.

Function Value
With the guest as its central concern, the establishment focal reason for existence is to provide safe
and eas to use and understand place.