Post on 30-Mar-2018
transcript
187
Chapter 5
Development of Conceptual Framework for Hotels by U sing Six Sigma Methodology
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5.1 Introduction
Any Six Sigma project starts with a project charter. A project charter is tabular
representation of entire project in a very systematic way. In other words it
gives a clear picture of entire project in just one table. The project charter for
this study is as shown below
Chart 5.1 Six Sigma Project Charter
Researcher M. N. Varma Email manishkvarma@yahoo.com
Start Date 07.02.2007 Target Completion Date 10th August 2010
Element Description Team Charter
1.Process:
The process in which opportunity exists.
Application of Six Sigma in service industry with special reference to Hotels and resorts in Maharashtra
2.Project Description: what is the “Practical Problem”
Problem and goal statement (project’s purpose)
The problems and the goal statement are already explained in the previous chapters. It is about Application of Six Sigma in service industry with special reference to Hotels and resorts to enhance the quality of services. The purpose is to find the feasibility of six sigma tool in hospitality industry.
3. Objective
What improvement is targeted and what will be the impact on Output, Cost of Poor Quality (COPQ).
Project Y’s Baseline GOAL Entitlement Units
The “Statistical Problem” - the measurable variable(s)
Metric 1 Excellent Quality
Quality Improvement
New Model
Improve Phase 100 %
Metric 2 Customer Satisfaction
Service Factor
Better Improved Service
Customer Delight
As required
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4. Business Cases:
Expected financial improvement, or other justification.
Service Industries are playing a Vital role in country’s GDP with special reference to the Hospitality Industry. Application of Six Sigma will definitely boost these industries financially as well as will create a good impact on the customers mind.
5.Project Scope:
Which part of the process will be investigated and excluded.
The area of Marketing plays a vital role in this business hence This area will be investigated in detail. Other areas like service and customer satisfaction will be explored too. The security and finance part will be excluded as it requires special effort and can be done as entirely separate project.
6.Benefit to External Customers
Who are the final customers, what are their key measures, and what benefits will they see?
The final Customers are Corporate’ from MNC’s, Foreign delegates who in turn will add value to nation. Also the delegates and consumers belonging to all the areas of society will benefit from these.
7.Schedule:
Give the key milestones/dates.
Project Start 7th February 2007 Define Phase: August 2007
8.Tool M- Measurement “M” Completion December 2008
A- Analysis “A” Completion June 2009
D- Develop “D” Completion December 2009
V- Validate “V” Completion March 2010.
Note: Schedule appropriate Safety Reviews.
Safety Reviews Review of Project at the end of every Two months to control the things well within the schedule.
Project Completion March 2010.
9. Support Required:
Will any special capabilities, trials, etc be needed?
Six Sigma Tool, and small Hotels and restaurant is required as a sample to validate the newly design model.
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5.2 Application of Six Sigma in Hotel Industry
As discussed in chapter 1, there are two methods for applying Six Sigma for
any project. These methods are as
• DMAIC (Design-Measure-Analyze-Improve-Control) and
• DMADV (Design-Measure-Analyze-Develop-Validate)
DMAIC is very popular technique for manufacturing industries. But for applying
the Six Sigma application in service industry and that too for entirely new area
like hotel, it is required to develop a new model. Researcher in consultation
with his guide and some Six Sigma experts found that DMADV technique will
be more suitable for the current study. It can be applied to the new area and
helps for the development of new model. Hence it is decided to go ahead with
DMADV methodology.
Before we start developing DMADV for this project, it is required to have a
proper flow diagram for the project. The Six Sigma process flow chart is as
shown in the chart 5.1. This gives a fair idea about the flow of project.
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Chart 5.2 Six Sigma Project Flow Chart
Start
Stop
Market analysis of current and future Six Sigma project
in service industry
Academic research of current and future Six Sigma project
in service industry
Develop the Project
Modify or Phase out the Project
Promote the project output to the end customer
Schedule the Project Six sigma
Deliver the Out Come of the Project
Manage the Project
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Now after having a fair idea about the flow of the project, we can go ahead
with the required method of DMADV. It is one of the popular techniques for the
implementation of Six Sigma. It is applied to develop the improved and
efficient model for the project under study. This chapter provides a detailed
explanation for a Six Sigma DMADV project in a service environment that is in
Hotel industry for the current study. As shown above this technique has five
steps namely Design-Measure-Analyze-Develop-Validate. Let us see these
steps one by one
5.2.1. DEFINE PHASE (D-M-A-D-V)
The Define phase of DMADV has five parts as under
Part 1: Develop the case for study
Part 2: Asses the benefit of Six Sigma Project
Part 3: Asses the Risk to the Project Success
Part 4: Activating a Design for Six Sigma (DFSS) Product Development Team
Part 5: Finalize the Project objective
If we see the five parts of define phase, it is observed that these parts are
already discussed in the previous chapters. The Part 1 and Part 2 have been
discussed in detail in chapter 1 and chapter 2 of the thesis. Also in chapter 3
and chapter 4 there was a detailed discussion about the risk and success of
the project. The literature review has discussed about the feasibility of six
sigma project in all areas. Whereas Part 5 is discussed in chapter 3 which
talks about the objectives and the methodology adopted for the project. As far
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as part 4 is concerned which is DFSS product development team, maximum
effort was ensured for all the levels of a team.
Accordingly a Multi – Generation – Product – Plan (MGPP) was prepared for
the project under study which is shown in table 5.1. The MGPP is nothing but
a plan that gives a step by step plan of action for the success of project and
hence it is called as multi generation plan.
Table 5.1 Multi Generation Product Plan (MGPP) for the Project
Generation Generation1 Generation2 Generation3
Vision Stop bleeding in
existing markets
Take offensive
action by filling
unmet needs of
existing markets-
Hire the people who
immediately perform
on the job without
additional training.
Take Leadership
position in new
markets.
Product/Service
Generations
Improved or less
expensive
existing features
New major features
Design based on
inputs from the Voice
of Stakeholders
New product or
service or
processes.
Product/Service
Technology and
Platforms
Current
technology
Current technology
with relevant
technological
enhancements, if
any –
Computer based
paltforms
Current
technology plus
new technology if
possible
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This chart gives a fair idea about the team required for successful project.
Next it is required to develop a Gantt chart for the project to have a fair idea
about the proper execution of the project. Chart 5.2 shows the Gantt chart for
the project under study.
Table 5.2 Gantt Chart
Tasks Resp.
Timeline ( 2007, 8 to 2008, 12 )
Comments A
u
g
S
E
p
O
C
t
N
O
v
D
E
c
J
A
n
F
E
b
M
A
r
A
P
r
M
A
y
J
u
n
J
u
l
A
u
g
S
e
p
O
C
t
N
O
v
D
E
c
Define Res × × × × ×
Measure Res
× × × ×
Analyze Res
× × ×
Design Res
× × ×
Validate Res
× ×
5.2.2. MEASURE PHASE (D-M-A-D-V)
It is the second phase in DMADV technique. It has three parts. Each part is
presented in this section as
Part 1: Prioritize and select the project elements with Supply-Input-Process-
Output-Customer (SIPOC)
Part 2: Select the Design strategy
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Part 3: Convert cognitive Images to critical to quality (CTQs).
Part 1: Supply-Input-Process-Output-Customer (SIPOC)
The SIPOC analysis is used to prioritize the project elements.
Table 5.3 SIPOC Diagram
Process Name
Process Owner
S I P O C
Suppli-
ers
Inputs ‘X’ Process Outputs ‘Y’ Customer
Providers of required resources
Resources required by process
Numerical requirements of inputs
Top level description of the activity
Deliverables from the process
Numerical requirements of outputs
(Stakeholders who place the requirements on the output.)
Requirements Requirements
6 5 7 1 2 4 3
When does the process start?
Who supplies each inputs?
What inputs are required to enable this process?
What does the process expect of each input?
What are the outputs?
What does each customer expect from each output?
Who is customer of each output?
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Source: Breyfogle, F. W. (2003), Implementing Six Sigma: Smarter Solutions Using Statistical Methods, Wiley
The elements of SIPOC diagram shown above is explained in detailed in the
Project Charter in Chart 5.1. This methodology can be best fitted with the
Mathematical formula as
Y = f(X)
Which states as ‘Y’ is a function of ‘X’. ‘Y’ can be termed as output which is
from the input ‘X’ as a result of some process in between these two. For any
input as ‘X’ here, we need to have some suppliers to provide these inputs. On
the other hand if ‘Y’ is output, there must be some customers or stakeholders
for the same. In short the entire process right from suppliers to stakeholders
can be defined in this SIPOC table. The last column talks about the customer.
Here for a hotel industry the stake holders are as under which in turn is also
the customer
Government
Corporate’s
Employee
Tourists
Entrepreneurs
What is the process?
When does the process end?
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Part 2: Select the Design Strategy
The second part of measure Phase is to conduct an analysis to determine the
cognitive features for the proposed design with the help of data collected by
questionnaires, a systematic survey and interview.
Here the effort was made to analyze the data collected during the fieldwork.
The purpose of collecting the information from the samples was to get an
insight into the different types of hotels, their infrastructural facilities and their
product / service mix. As the Hospitality industry is labor intensive, it was
interesting to know whether the Hospitality Industry in Pune and rest of
Maharashtra has understood the important share of the human resource in the
profitability of their business and to find out the various human resource
policies adopted by different types of Hotels.
The main purpose of this research was to collect information on the various
marketing strategies and the marketing mix of different types of hotels and to
find if they undertake any conscious marketing efforts. If they have a formal
marketing plan and the importance given to the different elements of the
marketing mix with different categories of hotel.
Graphical Representation and observations from the Data
For the purpose
three star categor
hotels that have not opted for an
Government. The total sa
number. The
Maharashtra.
made to collect
included in the
5.2.2.a The details of
find out the varie
categories of sample hotels, and to know whether
occupancy rate of the (sample) hotels
Chart 5.3
In the category up to 3 star hotels, Almost 81(85%) of the hotels had
Restaurant including Garden Restaurants; nearly 65% to 76% of the hotels
0
10
20
30
40
50
60
70
80
90
Graphical Representation and observations from the Data
the purpose of analysis, the sample has been divided into hotels up
categories, which also includes non-star
hotels that have not opted for any star category but are recog
ent. The total sample of hotels in this categor
The second category includes all four and
. The number of such hotels being small and hence an effort is
made to collect the information of the total population.
included in the sample will be addressed as the sample hotels.
The details of infrastructural facilities and amenities was
find out the variety in the product / service mix provided
categories of sample hotels, and to know whether it had any influence on the
occupancy rate of the (sample) hotels.
Infrastructural facilities at Sample Hotels
In the category up to 3 star hotels, Almost 81(85%) of the hotels had
Restaurant including Garden Restaurants; nearly 65% to 76% of the hotels
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Graphical Representation and observations from the Data
divided into hotels up to
star category, they are the
y star category but are recognized by
ple of hotels in this category is Ninety five in
and five star Hotels in
being small and hence an effort is
total population. All these hotels
the sample hotels.
structural facilities and amenities was collected to
ix provided by the different
had any influence on the
Infrastructural facilities at Sample Hotels
In the category up to 3 star hotels, Almost 81(85%) of the hotels had
Restaurant including Garden Restaurants; nearly 65% to 76% of the hotels
Upto 3 Star
4 & 5 Star
had conference halls and Banquet hall. only 33 (35%) hotels had permit
rooms. Very few hotels provide the other f
these facilities were not required by their guests and limitation of space.
It was observ
by the consent authori
offered by both 4 star and 5 star Categories. Library
very few hote
Swimming pool,
Chart 5.4
It is observed that in terms of
amenities like Cable TV, Laundry, 24 hrs room service and Car parking were
almost present in 80 to 90 % of the sample hotels, Whereas all amenities were
present in all 4 star & 5 star category barring Driver’s room in very few. At the
same time if any other facilities apart from the listed one are asked by the
customer, it is provided to them depending on the type of customers.
0
10
20
30
40
50
60
70
80
90
had conference halls and Banquet hall. only 33 (35%) hotels had permit
rooms. Very few hotels provide the other facilities, the reasons give were that
these facilities were not required by their guests and limitation of space.
observed that facilities were provided as per the
by the consent authority. Conference, Banquet. Restaurant,
offered by both 4 star and 5 star Categories. Library
hotels where as Garden restaurants, Health club, In
Swimming pool, DJ’s facilities were offered by all 5 star hotels.
Amenities at Sample Hotels
It is observed that in terms of amenities in up to 3 star categories the basic
amenities like Cable TV, Laundry, 24 hrs room service and Car parking were
almost present in 80 to 90 % of the sample hotels, Whereas all amenities were
esent in all 4 star & 5 star category barring Driver’s room in very few. At the
same time if any other facilities apart from the listed one are asked by the
customer, it is provided to them depending on the type of customers.
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had conference halls and Banquet hall. only 33 (35%) hotels had permit
acilities, the reasons give were that
these facilities were not required by their guests and limitation of space.
as per the requirements specified
Banquet. Restaurant, Permit room was
offered by both 4 star and 5 star Categories. Library service was offered by
ealth club, In-house Shoppe,
5 star hotels.
amenities in up to 3 star categories the basic
amenities like Cable TV, Laundry, 24 hrs room service and Car parking were
almost present in 80 to 90 % of the sample hotels, Whereas all amenities were
esent in all 4 star & 5 star category barring Driver’s room in very few. At the
same time if any other facilities apart from the listed one are asked by the
customer, it is provided to them depending on the type of customers.
Upto 3 Star
4 & 5 Star
200
5.2.2.b The main business of the hotel is to let out rooms and is also its main
source of income. The occupancy rate for the last three consecutive years of
the sample hotels was collected to understand the general trend in the
occupancy. Further this information can be used to derive the suitable
marketing strategies to enhance the business. Table 5.4 shows the
occupancy trend for the last three years.
Table 5.4 Occupancy level in % for last 3 Years
Year Up-to 3 Star 4 & 5 Star
2007-08 85 % 70 %
2008-09 65 % 55 %
2009-10 70 % 60 %
It has been observed that the occupancy rate had declined in the last two
Years. The reason given by the concerned authorities were general recession
and increased in rooms available due to increase in the number of new
players in the market or extension of the existing which has increasing the
competition and lowered the occupancy rate. Also from figure 5.5, the cause
and effect diagram the various reason were shown. The 26/11 terrorist attack
on Hotel Taj and Oberoi is also the main cause of decline in the occupancy
rate during the year 2008-2009. Security and fear was the major concerned for
the entire customer during that period which caused decline in the occupancy
level for almost all the leading hotels in the country.
5.2.2.c The Hospitality Industry being a labor intensive industry, the
the employees of the sample was collected. Further the
marketing staff was also taken to know the
function by the different categories
know the preference of the sample hotels for
formally trained people
Chart 5.5
It was observed in the category u
92% of the hoteliers
given were that the
were molded in the
training and supervisi
recruit experience people but preferred to recruit formally trained
reasons given were
formal training and could be molded as per the
formally trained people it was easy to
professionalis
0
10
20
30
40
50
60
70
80
90
The Hospitality Industry being a labor intensive industry, the
the employees of the sample was collected. Further the
marketing staff was also taken to know the importance given
by the different categories of the sample hotels.
know the preference of the sample hotels for recruiting experienced people to
formally trained people at different levels of management.
Recruitment of experienced people
observed in the category up to 3 Star hotels and in 4 & 5 stars
hoteliers preferred to recruit experienced
given were that the experienced people already had the require
molded in the same business and hence they did not require much
training and supervision. Whereas only up to 8% of hotel
recruit experience people but preferred to recruit formally trained
reasons given were that trained people had developed the
formal training and could be molded as per the requirement. With the help of
formally trained people it was easy to implement and maintain qualit
professionalism.
Upto 3 Star 4 & 5 Star
201
The Hospitality Industry being a labor intensive industry, the details of
the employees of the sample was collected. Further the detail of their
importance given to the marketing
otels. It is also required to
recruiting experienced people to
at different levels of management.
hotels and in 4 & 5 stars that up to
to recruit experienced people. The reasons
experienced people already had the required skills and
they did not require much
of hotel did not prefer to
recruit experience people but preferred to recruit formally trained people. The
that trained people had developed the basic skills with the
requirement. With the help of
implement and maintain quality and
Yes
No
Chart 5.6
It was observe
that the recruitment of
people from the total
compared with middle level,
experience whil
labour.
0
5
10
15
20
25
30
35
40
45
50
Lower Level
Preference of Experienced staff at different Levels
It was observed in both up to 3 Star Categories and in
that the recruitment of experienced people is preferred over
om the total positive response was more at
compared with middle level, Where as not much importance was given to
while recruiting at lower level that is semi
Lower Level Middle Level Higher Level
202
Experienced staff at different Levels
and in4 & 5 Star Categories
is preferred over formally trained
positive response was more at Higher level followed as
not much importance was given to
semi-skilled and unskilled
Upto 3 Star
4 & 5 Star
5.2.2.d Since the massive growth
demand for the
increased at a significant level causing a severe employee turnover problem.
Hence the information was collected to find out whether
Maharashtra
level it was acute an
Chart 5.7
It was observed
hotels faced the problem of
not face any such
of the sample faced the
0
10
20
30
40
50
60
Since the massive growth of service sector
demand for the People specially trained in different services sectors have
at a significant level causing a severe employee turnover problem.
ence the information was collected to find out whether
Maharashtra was facing the problem of employee turnover
it was acute and the reasons for the same.
Employee Turnover
It was observed in up to 3 Star Categories that 37 hotels
hotels faced the problem of employee turnover; whereas
not face any such problem, where as in 4 & 5 Star Categories 21
sample faced the problem of employee turnover
Upto 3 Star 4 & 5 Star
203
of service sector in last few years, the
People specially trained in different services sectors have
at a significant level causing a severe employee turnover problem.
ence the information was collected to find out whether Hotel Industry in
turnover and if yes, at what
hotels (39%) of the sample
turnover; whereas 58 hotels (61%) did
Categories 21 hotels (84%)
turnover.
Yes
No
It was important to know that the employee turnover is more at which level of the staff. The figure 5.9 shows the deatils
Chart 5.8
It was observed that the
3 star categories where as it is more at middle level for the categories of 4 & 5
star. The reason found is that the employee at higher level in up to 3 star
categories after a sufficient experience starts getting better opportuni
they leave for the betterment, whereas in the category of 4 star and 5 star,
middle level turnover is more because of their high demand due to increase in
the competition. To find this fact in detail, a systematic information is collected
and is better shown in the figure 5.10.
0
5
10
15
20
25
30
Lower Level
It was important to know that the employee turnover is more at which level of the staff. The figure 5.9 shows the deatils
Employee Turnover at different Levels
It was observed that the employee turnover was acute
3 star categories where as it is more at middle level for the categories of 4 & 5
star. The reason found is that the employee at higher level in up to 3 star
categories after a sufficient experience starts getting better opportuni
they leave for the betterment, whereas in the category of 4 star and 5 star,
middle level turnover is more because of their high demand due to increase in
the competition. To find this fact in detail, a systematic information is collected
better shown in the figure 5.10.
Lower Level Middle Level Higher Level
204
It was important to know that the employee turnover is more at which level of
at different Levels
turnover was acute at higher level at up to
3 star categories where as it is more at middle level for the categories of 4 & 5
star. The reason found is that the employee at higher level in up to 3 star
categories after a sufficient experience starts getting better opportunities and
they leave for the betterment, whereas in the category of 4 star and 5 star,
middle level turnover is more because of their high demand due to increase in
the competition. To find this fact in detail, a systematic information is collected
Upto 3 Star
4 & 5 Star
Effort was also
and is shown in the figure 5.
Chart 5.9
It was observed
priority given were better
policy that is
loss from the salary and in just
02468
1012141618
also taken to find the different reasons for the employee turnover
and is shown in the figure 5.10
Reasons for Employee Turnover
It was observed that the reasons for the employee
priority given were better opportunities and higher pay
that is accountability for action taken including recovery in case of
loss from the salary and in just few case of conflict between the staff
205
taken to find the different reasons for the employee turnover
that the reasons for the employee turnover according the
higher pay scale. Management
accountability for action taken including recovery in case of any
conflict between the staff.
Upto 3 Star
4 & 5 Star
5.2.2.e Just knowing about
same was not enough hence to find out the steps taken by the
to reduce the
following information was
Chart 5.10
It was observed that the policy of incentives and increments was mostly
followed up to 3 star categories of hotels to retain their employee whereas
welfare policy is adopted in almost
more successful strategy for retaining the employees.
0
5
10
15
20
25
30
35
Just knowing about employee turnover and the various reasons for
same was not enough hence to find out the steps taken by the
to reduce the employee turnover to maintain its respective
following information was collected.
Steps taken to control the Employee Turnover
observed that the policy of incentives and increments was mostly
followed up to 3 star categories of hotels to retain their employee whereas
welfare policy is adopted in almost all the sample hotels and was found to be
more successful strategy for retaining the employees.
206
turnover and the various reasons for the
same was not enough hence to find out the steps taken by the sample hotels
maintain its respective work force, the
Employee Turnover
observed that the policy of incentives and increments was mostly
followed up to 3 star categories of hotels to retain their employee whereas
all the sample hotels and was found to be
Upto 3 Star
4 & 5 Star
5.2.2.f As ever
the quality of
(human interface) this information was collected to
employee turnover on the quality of the ser
Chart 5.11
Up to 3 Star Categorie
sample felt that employee
provided where as 58
make much of a difference as the new recruits were trained on the job
the strict superv
because the
Categories, th
affected due to employee
work got affected, tr
know them and their likes and dislikes, slow service,
expectation of the guests was mu
hotels in other categories.
0
10
20
30
40
50
60
As every employee directly or indirectly contribut
the quality of service, and as Hospitality Services involve
(human interface) this information was collected to
turnover on the quality of the service provided.
Impact of Employee Turnover on Quality of Service
Up to 3 Star Categories: It was observed that only
sample felt that employee turnover has affected the 'quality' of the service
provided where as 58 hotels (61%) felt that the employee turn
ch of a difference as the new recruits were trained on the job
trict supervision of the experienced staff. One of the reasons is a
attrition rate was less in this Category.
Categories, there are 21hotels (84%) of the sample felt that the
affected due to employee turnover. The examples given were:
work got affected, training was required, the regular guest
know them and their likes and dislikes, slow service,
expectation of the guests was much more in these
hotels in other categories.
Upto 3 Star 4 & 5 Star
207
y employee directly or indirectly contributes towards maintaining
ice, and as Hospitality Services involve moments of truths
(human interface) this information was collected to find out the effect of
provided.
on Quality of Service
37 Hotels (38%) of the
affected the 'quality' of the service
employee turnover did not
ch of a difference as the new recruits were trained on the job under
One of the reasons is also
attrition rate was less in this Category. In the 4 & 5 Star
%) of the sample felt that the quality was
given were: Department
aining was required, the regular guest expected staff to
know them and their likes and dislikes, slow service, excess overtime the
two categories than the
Yes
No
5.2.2.g As everything else like facilities, service mix, marketing mix
easily copied by the competitors, it is the human element that
makes the difference hence the details regarding the training
collected from the sample hotels.
Chart 5.12 Training methods for
Here the preference for methods
categories was
(behavioral and
out either to the head office or professional training center. Exte
programs were arranged at regular intervals throughout th
of chain hotels the
It was observed that 4 & 5 star
the continuous development and improvement of the various
employees.
0
10
20
30
40
50
60
70
80
Induction
As everything else like facilities, service mix, marketing mix
easily copied by the competitors, it is the human element that
makes the difference hence the details regarding the training
om the sample hotels.
Training methods for Employee to Improve Quality of Service
Here the preference for methods adopted by sample h
categories was refresher course every week. Training to develop the skills
(behavioral and attitudinal) was given in-house or the employees were sent
out either to the head office or professional training center. Exte
programs were arranged at regular intervals throughout th
of chain hotels the employees were selected from diff
It was observed that 4 & 5 star categories give much more importance
the continuous development and improvement of the various
Induction Orientation Refresher Any Other
208
As everything else like facilities, service mix, marketing mix can be
easily copied by the competitors, it is the human element that can really
makes the difference hence the details regarding the training methods was
to Improve Quality of Service
adopted by sample hotels in all the
every week. Training to develop the skills
house or the employees were sent
out either to the head office or professional training center. External training
programs were arranged at regular intervals throughout the year, and in case
ted from different units of the group.
ategories give much more importance towards
the continuous development and improvement of the various skills of their
Upto 3 Star
4 & 5 Star
5.2.2.h The em
who are actually providing the various services, they are also a
services provid
actually responsible
employee’s participation is an important motivational
information was collected from the sample
Chart 5.13
It was observ
followed the employee's suggestion scheme where as
did not follow any such system and the reasons given by
that it was not required. Where as in 4 & 5 star
employees were
(100%) have a systematic employee suggestion policy.
0
10
20
30
40
50
60
70
80
The employees are the rich source of informa
who are actually providing the various services, they are also a
provided in the Hospitality Industry. They are the
ctually responsible for the moments of truth (Human
participation is an important motivational tool. Hence the following
information was collected from the sample hotel.
Employee Suggestion Scheme
rved up to 3 Star Categories that only 2
followed the employee's suggestion scheme where as
did not follow any such system and the reasons given by
that it was not required. Where as in 4 & 5 star categories sugges
employees were encouraged by the management. Here all 25 sample hotels
(100%) have a systematic employee suggestion policy.
Upto 3 Star 4 & 5 Star
209
mation as they are the one
who are actually providing the various services, they are also a part of the
hey are the one who are
(Human interface), Also
tool. Hence the following
23 sample hotels (22%)
followed the employee's suggestion scheme where as 72 sample hotel (78%)
did not follow any such system and the reasons given by most of them was
categories suggestion of the
Here all 25 sample hotels
(100%) have a systematic employee suggestion policy.
Yes
No
5.2.2.i The following info
sample hotels followed a formal system to
valuable suggest
Chart 5.14
It was observed that 16 out of 23 (70%)
responses of up to 3
employee suggestions, wherea
Categories followed a formal system to encourage suggestion from their
employees.
These approaches includes as t
meeting for
Department with his respective staff, monthly meeting with administration,
meetings of head of the de
occasions / meetings the employee
suggestions were encouraged.
0
5
10
15
20
25
The following information was collected to find out how many
sample hotels followed a formal system to encourage employees
suggestions.
Systematic Approaches for Suggestion
was observed that 16 out of 23 (70%) hotels from above of the
esponses of up to 3 star categories followed a formal system to
suggestions, whereas all 25 hotels (100%) of the 4 &, 5 star
followed a formal system to encourage suggestion from their
These approaches includes as through staff welfare meetings
the days planning and instruction held by the Head Of the
with his respective staff, monthly meeting with administration,
meetings of head of the departments with the general manager. In
asions / meetings the employee, supervisors and the
suggestions were encouraged.
Upto 3 Star 4 & 5 Star
210
ation was collected to find out how many of the
encourage employees to qive
Systematic Approaches for Suggestion
from above of the positive
star categories followed a formal system to take the
00%) of the 4 &, 5 star
followed a formal system to encourage suggestion from their
hrough staff welfare meetings, Every morning
lanning and instruction held by the Head Of the
with his respective staff, monthly meeting with administration,
nts with the general manager. In all these
, supervisors and the managers
Yes
No
5.2.2.j One of the important o
understand the various
categories of the sample
out how many of the sample hote
to know the salient feat
Chart 5.15
It was observed that up to 3 star sample hotels only
hotel had a formal
having any marketing plan were location and limited capacity due
they could maintain consistency in their general occupancy
and 5 star Categories all
plan.
0
10
20
30
40
50
60
One of the important objective of this research is to
understand the various marketing strategies follow
categories of the sample hotels. Hence the information was collected to fin
many of the sample hotels prepared a formal mar
to know the salient features of the plans.
Systematic Marketing Plan
as observed that up to 3 star sample hotels only
had a formal marketing plan. The reasons given by the hotels for
marketing plan were location and limited capacity due
could maintain consistency in their general occupancy
and 5 star Categories all 100% of the sample hotels had a formal
Upto 3 Star 4 & 5 Star
211
bjective of this research is to study and
owed by the different
ation was collected to find
s prepared a formal marketing plan and also
as observed that up to 3 star sample hotels only 39 (41%) of the sample
marketing plan. The reasons given by the hotels for not
marketing plan were location and limited capacity due to which
could maintain consistency in their general occupancy level. In case of 4
tels had a formal marketing
Yes
No
5.2.2.k This information was collected from
elements of the formal marketing plan.
Chart 5.16
In the main elements of the formal marketing plan more
to corporate visit,
ups in 4star and 5 star categories as well as up to 3 star categories.
publicity, Hospitality
part amongst all the elements. Any others includes
customers, greetings,
publicity, mailers, cale
facilities, entertaining the
complimentary stay for spouse etc.
0
5
10
15
20
25
30
35
40
This information was collected from sample hotels to find
of the formal marketing plan.
Elements of Marketing Plan
In the main elements of the formal marketing plan more
to corporate visit, various tie ups, even management and feedback & follow
ups in 4star and 5 star categories as well as up to 3 star categories.
ospitality services and various innovative methods
t amongst all the elements. Any others includes
customers, greetings, word of mouth publicity by satisfi
, mailers, calendars, mementoes, personal contacts, discount, credit
facilities, entertaining the bookers, important guests fo
complimentary stay for spouse etc.
212
hotels to find out the main
In the main elements of the formal marketing plan more emphasis was given
various tie ups, even management and feedback & follow-
ups in 4star and 5 star categories as well as up to 3 star categories. Press
and various innovative methods also plays a vital
t amongst all the elements. Any others includes Yearly gift to regular
satisfied guests, audiovisual
personal contacts, discount, credit
important guests for lunch / dinner,
Upto 3 Star
4 & 5 Star
5.2.2.l It was important to any formal quality system or not, on the same hand the effect for the same.
Chart 5.17
It was observe
were aware of the
standard for service provided
hotels had a formal sta
0
10
20
30
40
50
60
It was important to know if the sample hotels follows any standards for any formal quality system or not, on the same hand the effect for the same.
Implementation of any Standard Quality System
as observed that up to 3 star categories of hotels,
were aware of the importance of the quality of service and
standard for service provided, whereas in case 4 an
a formal standard set for their services.
Upto 3 Star 4 & 5 Star
213
know if the sample hotels follows any standards for any formal quality system or not, on the same hand the effect for the same.
Implementation of any Standard Quality System
that up to 3 star categories of hotels, 41 (43%) of the sample
tance of the quality of service and followed a formal
n case 4 and 5 star hotels all the
Yes
No
5.2.2.m This information was collected to find out how many of the
hotels followed the Standard Operating Procedure (SOP),
international standard, set for
Chart 5.18
It was observed that up to 3 star categories only
followed Standard Operating Procedure (SOP), and
maintain good standard of se
25 (100%) of the sample hotels follow
0
10
20
30
40
50
60
This information was collected to find out how many of the
hotels followed the Standard Operating Procedure (SOP),
international standard, set for the Hospitality Industry
Standard Operating Procedures (SOP)
It was observed that up to 3 star categories only 44 (46
followed Standard Operating Procedure (SOP), and
maintain good standard of service, whereas in the case 4 and 5 star hotels
0%) of the sample hotels follow Standard Operating Proce
Upto 3 Star 4 & 5 Star
214
This information was collected to find out how many of the sample
hotels followed the Standard Operating Procedure (SOP), which is an
Standard Operating Procedures (SOP)
44 (46%) of the sample hotels
followed Standard Operating Procedure (SOP), and consciously tried to
case 4 and 5 star hotels all
ard Operating Procedure.
Yes
No
5.2.2.n It is important for all the hotels to maintain the consistency in the occupancy. Hence it is important to know the the same. Figure 5.20 shows the responses of sample hotel on this issue
Chart 5.19
It was observed that in sample of up
hotels experienced
hotels had consistency in o
and limited capacity. In case of 4 & 5 star hotels all the
experienced seasonal fluctuations. According to the sample J
September was the slack season. Maximu
November to May
0
10
20
30
40
50
60
70
important for all the hotels to maintain the consistency in the occupancy. Hence it is important to know the variations in the occupancy for the same. Figure 5.20 shows the responses of sample hotel on this issue
Variations in the Occupancy
It was observed that in sample of up to 3 star hotels 61
hotels experienced seasonal fluctuations where as 33
hotels had consistency in occupancy, the major reasons given were
and limited capacity. In case of 4 & 5 star hotels all the
experienced seasonal fluctuations. According to the sample J
September was the slack season. Maximum occupanc
to May. The occupancy was higher during the week days.
Upto 3 Star 4 & 5 Star
215
important for all the hotels to maintain the consistency in the variations in the occupancy for
the same. Figure 5.20 shows the responses of sample hotel on this issue
to 3 star hotels 61 (64%) of the sample
fluctuations where as 33 (36%) of the sample
ccupancy, the major reasons given were location
and limited capacity. In case of 4 & 5 star hotels all the 25 (100%) hotels
experienced seasonal fluctuations. According to the sample June to
occupancy was between
The occupancy was higher during the week days.
Yes
No
5.2.2.o Depending on the responses on the variations of occupancy, information on strategies followed by sample hotels during off season is collected. It is shown in the following figure 5.18.
Chart 5.20
It was observed in up to 3 star hotels,
discount, organize food festivals, gave complimentary offers
creativity under the heading of any other which includes
anniversary, valentine Day, morning breakfast
complimentary to regular customer, co
(54%) of the sample hotels preferred to give packages,
increase the business by
hotels ventured into arranging
4 &. 5 star hotels all 25
than 90% of sample hotels gave complimentary
management. Special P
0
10
20
30
40
50
60
Depending on the responses on the variations of occupancy, information on strategies followed by sample hotels to increase the occupancy during off season is collected. It is shown in the following figure 5.18.
Strategy to increase the Occupancy
observed in up to 3 star hotels, 90 to 95 % of the sample hotels
organize food festivals, gave complimentary offers
under the heading of any other which includes
valentine Day, morning breakfast and free stay for the spouse,
complimentary to regular customer, concession for residential
%) of the sample hotels preferred to give packages,
increase the business by Event Management, whereas
hotels ventured into arranging different events. It was observ
4 &. 5 star hotels all 25 (100%) of the sample hotels gave discount
than 90% of sample hotels gave complimentary
management. Special Packages were offered by 84% of the hotels
216
Depending on the responses on the variations of occupancy, to increase the occupancy
during off season is collected. It is shown in the following figure 5.18.
of the sample hotels gave
organize food festivals, gave complimentary offers followed by
under the heading of any other which includes group discount, hotel
and free stay for the spouse,
r residential conferences. 33
%) of the sample hotels preferred to give packages, 43 (70%) tried to
whereas very few of the sample
It was observed that in case of
hotels gave discounts and more
than 90% of sample hotels gave complimentary offers and event
were offered by 84% of the hotels.
Upto 3 Star
4 & 5 Star
5.2.2.p Inability to maintain i
this information was collected to find out about the marketing
implemented by the sample hotels facing seasonal
off seasons and during the peak season
Chart 5.21 Strategy to tackle Quality of service during Peak S eason
It was found that in case of sample hotels up to 3 Star categories the
preferences given to cope up with e
catering college, followed by outdoor catering and
was observed
increased demand
longer hours.
student from catering colleges
0
10
20
30
40
50
60
70
Outdoor
Catering
Inability to maintain inventory being a peculiar feature of this
this information was collected to find out about the marketing
implemented by the sample hotels facing seasonal fluctuations i.e. during the
off seasons and during the peak season
Strategy to tackle Quality of service during Peak S eason
as found that in case of sample hotels up to 3 Star categories the
rences given to cope up with excess demand was to the
tering college, followed by outdoor catering and con
was observed that most of the sample hotels preferred to cope up with the
increased demand with the help of their existing staff,
. In case of 4 and 5 Star categories preference was given to
from catering colleges the and to some extent to contract labour
Outdoor
Catering
Students from
Catering/Hotel
Management
College
Contract
Labour
Any Other
217
nventory being a peculiar feature of this industry
this information was collected to find out about the marketing strategies
fluctuations i.e. during the
Strategy to tackle Quality of service during Peak S eason
as found that in case of sample hotels up to 3 Star categories the
xcess demand was to the students from
ontract labour, However it
s preferred to cope up with the
, by making them work for
preference was given to
the and to some extent to contract labour.
Any Other
Upto 3 Star
4 & 5 Star
5.2.2.q This information was collected to fin
different service / product mix had different marketing
different profit centers
Chart 5.22 Different marketing objectives set for different Pr ofit Centers
It was observed that in case of up to 3 star hotels, on
hotels set different marketing
case of 4 & 5
marketing objective set for
5.2.2.r Marketing Strategie
The sample h
marketing strategies, h
researcher were as Relationship building study
competitors,
hammering with the help of rad
100% of the sample prepared
0
10
20
30
40
50
60
70
80
This information was collected to find out if the sampl
different service / product mix had different marketing
ifferent profit centers.
Different marketing objectives set for different Pr ofit Centers
as observed that in case of up to 3 star hotels, only
hotels set different marketing objective for different profit
case of 4 & 5 star hotel categories all 25 (100 %) of the sample have different
objective set for different profit center.
Marketing Strategie s for different target segments
hotels were reluctant to reveal the actual methods of
marketing strategies, however some of the strategies included as given to the
researcher were as Relationship building study, changes imple
e.g. Complimentary breakfast, flexible checkouts, daily
with the help of radio publicity and in case of 4 & 5 star hotels
of the sample prepared marketing strategy to achieve the set objectives
Upto 3 Star 4 & 5 Star
218
d out if the sample hotels offering
different service / product mix had different marketing objectives set for
Different marketing objectives set for different Pr ofit Centers
y 24 (25%) of the sample
ifferent profit centers whereas in
) of the sample have different
s for different target segments
otels were reluctant to reveal the actual methods of setting the
strategies included as given to the
changes implemented by the
entary breakfast, flexible checkouts, daily
nd in case of 4 & 5 star hotels all
marketing strategy to achieve the set objectives.
Yes
No
Chart 5.23
It was observ
corporate customer, gives s
offer / concession / discounts
whereas in case of 4 & 5 star hotels,
rates to the co
special concession / rates for
Corporate Customer:
as per individual requirements or on yearly
minimum required business
Regular Customer:
companies they were given discounts
days stay provided they
Group Bookings:
were offered.
0
10
20
30
40
50
60
70
80
90
Corporate
Customers
Extra Strategies for Target Segments
rved that more than 85% of the sample gave special offers to
corporate customer, gives special rates to group bookings
offer / concession / discounts to the regular customer
case of 4 & 5 star hotels, 100% of the sam
e corporate customer and regular customer,
special concession / rates for group booking.
Corporate Customer: They were given special rates, which was negotiated
as per individual requirements or on yearly basis provided they assured to give
minimum required business.
Regular Customer: These includes walk-ins businessmen, of even small
companies they were given discounts between 5 to 10%
days stay provided they stayed for specific number of days in the given period
Bookings: Special rates, concessions, or comp
Corporate
Customers
Regular
Customers
Group
Booking
Any Other
219
Extra Strategies for Target Segments
of the sample gave special offers to the
pecial rates to group bookings and give special
to the regular customer on group bookings
100% of the sample gave special offers/
er and regular customer, 92% of the sample give
rates, which was negotiated
basis provided they assured to give
businessmen, of even small
10% or complimentary few
stayed for specific number of days in the given period.
complimentary extra rooms
Upto 3 Star
4 & 5 Star
5.2.2.s Advertising being one of the important source of marketing an effort is
made to find how
order to maintain
each of the sample hotels
Chart 5.24
It is observed that the different channe
preferences were Print Media,
mailing. Up to 3 star
were preferred normally and in the category of a
Advertisement, Internet
Seasonal Cards,
included. In the case of
Communication
Sponsoring good events, National channels for
posters in strategic places like Food world Crosswords and retail malls,
Advertisement of event management and
professional magaz
0
10
20
30
40
50
60
Advertising being one of the important source of marketing an effort is
find how many of the sample hotels felt the need
order to maintain steady flow of business and the channels
each of the sample hotels to reach their present and future segment.
Modes of Advertising
ed that the different channels of advertisement according to
preferences were Print Media, Yellow pages, Communication letters
p to 3 star hotels: Newspaper, Hoardings, Local TV cable network
were preferred normally and in the category of any other
Advertisement, Internet Advertising, Web-site of the Hotel, Direct Marketing,
Seasonal Cards, Personal Contact, Mouth Publicity, Group Booking
In the case of 4 & 5 star Hotels Print Media, d
unication letters followed by yellow pages whereas a
Sponsoring good events, National channels for group advertisement, lobby
posters in strategic places like Food world Crosswords and retail malls,
Advertisement of event management and food festivals, Internet, Industrial &
magazine in and around the preferred locations.
220
Advertising being one of the important source of marketing an effort is
s felt the need of advertising in
ess and the channels preferred by the
future segment.
s of advertisement according to the
pages, Communication letters and direct
otels: Newspaper, Hoardings, Local TV cable networks
ny others Travel Guide, Radio
site of the Hotel, Direct Marketing,
Contact, Mouth Publicity, Group Bookings were
Print Media, direct mail and
whereas any other includes
group advertisement, lobby
posters in strategic places like Food world Crosswords and retail malls,
food festivals, Internet, Industrial &
ine in and around the preferred locations.
Upto 3 Star
4 & 5 Star
221
5.2.2.t This information was collected to know the factors considered for the
purpose of segmentation by the sample hotels and the segments that they
would like to concentrate on or develop presently or for the near future.
Segmentation of customers: The actual / present and the potential
For Rooms:
Corporate Sector : According to the size of the business, location and
industry. They were classified as A, B, C categories depending on the volume
of the business given during the specified time period.
Businessmen: According to different states, No. of days of stay.
Transit/ Walk-ins: According to the need of the requirements.
Event Management: It is decided according to the type of events.
Holiday/ Recreational: According to Geo graphical location, Group bookings.
Other stay: Education, Cultural events, Social events etc.
For Food/beverages, Conference Hall and Banquets
Corporate: Resident guests, Meetings, Trainings and Celebrations
Local customers: Educational institutes, Association meetings etc.
Social functions : Ceremonies, Get-togethers, Cultural events.
5.2.2.u The information was
sample hotel was concentrating on an
to development of the respective
Chart 5.25
It is observed in up to 3 star Categories
Maharashtra
management and lastly
overlapping be
sample hotel
Corporate, Bus
the other stay.
had been observ
20- 80 rule (that nearly 20% of the regular guests
as there was a steady flow of bookings for rooms, banquets,
programmes
were also considered to be
and maintained by
walk-ins, in-spite of the percentage not being much were
not bargain and due to the perishable nature of
0102030405060708090
100
information was also collected to know the segments that each
sample hotel was concentrating on and the reasons fo
to development of the respective segments.
Preferred Segments
It is observed in up to 3 star Categories that the prefe
Maharashtra ranked as Corporate, Businessmen, Holiday Recreation, event
management and lastly Transit / Walk-ins, Others
between Transit / Walk-ins and Other sta
sample hotel, the preferred segments in Maharashtra were
Businessmen, Event Management, Transit / Walk
the other stay. Reasons for the preference given that
observed concentrating on the Corporate sector and also believed in
80 rule (that nearly 20% of the regular guests gives
as there was a steady flow of bookings for rooms, banquets,
and celebrations. Businessmen who regularly visited the town
so considered to be an important segment an
and maintained by developing rapport and personalized service.
spite of the percentage not being much were
gain and due to the perishable nature of the service offered
222
collected to know the segments that each
reasons for giving special attention
the preferred segments in
Holiday Recreation, event
ins, Others stay. (There is some
ins and Other stay). In case of 4 & 5 star
Maharashtra were ranked as:
Transit / Walk-ins, and lastly
given that Majority of the Hotels as
porate sector and also believed in
gives 80% of the business)
as there was a steady flow of bookings for rooms, banquets, training
Businessmen who regularly visited the town
and loyalty could be built
developing rapport and personalized service. Transit and
spite of the percentage not being much were preferred, as they did
the service offered.
Upto 3 Star
4 & 5 Star
5.2.2.v One of the important source of information is
regarding their present level of
the present service mix according to their changing needs and requirements.
also helps to know t
information regarding any
from their respective customers was collected, and also
such data.
Chart 5.26
It was observed that
all 100% of the
services provided. Various
customer are
interaction with the guest and follow up taken by the sales
during their personal visits.
0
10
20
30
40
50
60
One of the important source of information is
regarding their present level of satisfaction for making necessary adjustment in
the present service mix according to their changing needs and requirements.
o know the reasons if any for their dissatisfaction.
information regarding any follow up taken by the different categories of hotels
from their respective customers was collected, and also
Feedback System for the services offered
It was observed that in the category up to 3 star 61% of the sample hotels and
the sample hotels in 4 &5 star categories took fol
provided. Various methods followed to take the feedback from
are Feedback Form, Suggestion cards, phone Calls
interaction with the guest and follow up taken by the sales
during their personal visits.
Upto 3 Star 4 & 5 Star
223
One of the important source of information is Customer feedback
for making necessary adjustment in
the present service mix according to their changing needs and requirements. It
he reasons if any for their dissatisfaction. Therefore the
up taken by the different categories of hotels
from their respective customers was collected, and also steps taken to collect
Feedback System for the services offered
61% of the sample hotels and
hotels in 4 &5 star categories took follow-up about the
ed to take the feedback from the
uggestion cards, phone Calls, Personal
interaction with the guest and follow up taken by the sales representative
Yes
No
224
Complaints and Handling System
It can be understood as the human element involved in providing the
Hospitality Services and also as it was not possible to satisfy each and every
customer all the time, the information was collected to find the general
complaints received by the sample hotels and about the tangible and
intangible services provided.
General complaints
Although the sample hotels were very reluctant in giving information about the
complaints of customer, researcher has taken extra effort to take lower staffs
of the hotels in confidence and able to get the information. It was observed
that in the category up to 3 star sample hotels the general complaints were
made regarding Limited menu, non availability of hot water throughout the day,
service and cleanliness, delay in service in morning, housekeeping, checkout
time, TV & electricity, non availability of restaurant in the hotels or very close
by, regarding booking, non-availability of rooms, parking place, phone facility
in the rooms, noise, room service, renovation and service time. In case of 4 &
5 Star Categories of sample hotels the general complaint is about
Housekeeping. In case of guest staying for a longer period, similar type of
breakfast is served, slow room service. As the hotels were centrally air
conditioned, it is kept off till room gets occupied but because of that the
carpeted rooms when occupied after a gap, gives typical smell as of occupied,
renovation, maintenance, delay in out.
5.2.2.w. This information
sample hotels
keep any written
accordingly.
Chart 5.27
It was observed that
hotel categories where as 100% of the hotels in 4&5 star Categories
a record of the complaint received and the
with the complain.
complaints and a
one year. The
they have just gi
In case of oral complaints
head chef looked into the problem personally, in case of the hospitality
services the head of the
the reception then it was directed from there to the head of the
department who tried to resolve
0
10
20
30
40
50
60
70
This information was collected to find out the importance given by the
otels to the complaints made by the dissatisfied customers, if
written record of the complaints received
Record keeping for complaints
It was observed that only 65% of the sample hotels in
hotel categories where as 100% of the hotels in 4&5 star Categories
a record of the complaint received and the action were taken in accordance
with the complain. The figures given were between 50 to 200
complaints and action taken to complaints received and recorded during last
. The hoteliers were very reluctant to revea
have just given the range, which falls between the figures given
In case of oral complaints about the food and supply in
chef looked into the problem personally, in case of the hospitality
services the head of the concerned department. If the compliant was
the reception then it was directed from there to the head of the
department who tried to resolve it immediately to the
Upto 3 Star 4 & 5 Star
225
was collected to find out the importance given by the
to the complaints made by the dissatisfied customers, if they
received and if any action taken
hotels in case of up to 3 stars
hotel categories where as 100% of the hotels in 4&5 star Categories maintains
action were taken in accordance
50 to 200 per year for the
complaints received and recorded during last
al the figures and hence
ween the figures given above.
about the food and supply in the Restaurant the
chef looked into the problem personally, in case of the hospitality
concerned department. If the compliant was made at
the reception then it was directed from there to the head of the concerned
diately to the satisfaction of the
Yes
No
226
customer. In small hotels the owner or the general manager personally tried to
resolve all the complaints.
In case of written complaints, Most of the Hotels kept the customer feedback /
Suggestion forms in the rooms, on the counter and in the restaurants.
Periodically the manager or the owner checked the feedback from, the person
concerned was informed of the same and necessary improvements were
implemented. Some of the hotels informed the action taken to resolve the
grievances or complaint to the regular customer. In case of 4 & 5 star hotels,
mostly the written complaints were sent to the general manager who directs
them to the concerned departmental heads who were responsible to resolve
them, mostly the aggrieved person was send a letter of apology. In case the
complaints which could be resolved at the same time immediate action was
taken and at times the aggrieved guest was not charged for that particular
service.
5.2.2.x. In spite of all these efforts to resolve the complaints were undertaken
to see that in case of any complaints immediate action was taken to resolve
the same and thereby satisfy the customers. .The information was collected to
see if the efficient resolving of complaints served the purpose of satisfying the
customer and if this resulted in getting repeat business
Chart 5.28
business
The result revealed that in both the type of sample hotels the effective and
efficient handling of complaints have resulted in the repeat business. It was
100% in case of 4
samples up to 3 star categories.
0
10
20
30
40
50
60
70
80
90
Effective handling of complaints Results in Improve d
The result revealed that in both the type of sample hotels the effective and
efficient handling of complaints have resulted in the repeat business. It was
100% in case of 4 to 5 star category and more than 90% in the case of
samples up to 3 star categories.
Upto 3 Star 4 & 5 Star
227
Effective handling of complaints Results in Improve d
The result revealed that in both the type of sample hotels the effective and
efficient handling of complaints have resulted in the repeat business. It was
to 5 star category and more than 90% in the case of
Yes
No
228
Part3: Conversion of Cognitive images into Critical to Qua lity (CTQ’s)
Now it is important to incorporate and compare the same with customer
satisfaction model, known as Kano Model. The conversion of cognitive images
into CTQ can be done with the help of Kano Model., one of the popular model
used in six sigma to find the customer satisfaction. Kano model is explained in
the next step as it is one of the important step to find the factors which is
Critical to Quality (CTQ).
5.2.2.y. Customer Satisfaction Model
To understand the customer satisfaction effectively a model was developed by
Noriaki Kano, who is a renowned Japanese expert in total quality
management, his practical experience with understanding customer
requirements and measure influence customer satisfaction is known as
1Kano’s model of customer satisfaction which distinguishes three categories of
customer needs as:
• Must be (Dissatisfiers)
• More is Better (Satisfiers)
• Delighters
229
5.2.2.y.i. Must be (Dissatisfiers)
Dr. Kano often called this type of requirement a “Must Be”: these features or
performance requirements must be present to meet the minimal expectations
of customers. The customer probably would not notice if these features or
performance standards are met, but they will notice and be extremely unhappy
if they are missing. If you are in a hotel room and turn on your TV and see a
picture, you don’t say “Wow! Great television!” Seeing a picture is a minimal
expectation; you will likely judge the quality of the TV on other features (clarity
of that picture, size of the screen, special programming capabilities, and so
on).
5.2.2.y.ii. More is Better (Satisfiers)
The better or worse you perform on these requirements, the higher or lower
will be your “rating” from a customer. Price certainly is the most prevalent of
the Satisfiers: the less a customer has to pay for a given set of features or
capabilities, the happier the customer (usually, at least). In Kano’s terms,
these are the “more is better” category – the more a customer gets of these
features, the more satisfied they are. Most day-to-day competition takes place
over these factors, features, or capabilities. If it is assumed that most of our
sample hotels were meeting the customer’s basic requirements, many of the
process improvement priorities will likely fall within the Satisfier category.
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5.2.2.y.iii. Delighters
These are feature, factors, or capabilities that go beyond what customers
expect or that target needs the customers can’t express for themselves. No
customer ever said, “give me a palm pilot”. But having access to a portable
electronic organizer has certainly delighted many people. In service industries,
the delighters are often unexpected services that go the extra mile: Finding a
mint on the hotel bed at night time, or a free bottle of spring water or even a
basket of fruit has delighted many a hotel guest.
The roles and impact of first class hotels in Mumbai, study of the development
and expansion of first class hotels and its impact to urban land user clearly
indicates t that service and facility of the hotels has been developed to serve
the social and economic activity of Mumbai and serve tourism industry.
Numbers of the hotels have been increasing due to the high demand and
growth of service industry.2 The hotels investment caused the employment and
main revenue of tourism industry. The first class hotels is located and
distributed in Mumbai, Pune, Lonavala and Aurangabad because of the
advantage of accessibility tourist facility and natural visual value. The hotels in
this area had impact on traffic, infrastructure, environment and urban land use.
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5.2.2.z. Kano’s Theory and its application to the current study
Chart 5.29 KANO MODEL
Source: Guide to Tqm in Service Industries, by Noriaki Kano (Jan 1996),
<http://www.brighthub.com/office/project-management/articles/110809.aspx>
Delighters Performance
(Satisfier)
Must Be
(Dissatisfier)
Delighters
Neutral
Dissatisfier
Presence of the Characteristics
Cus
tom
er S
atis
fact
ion
232
In order to improve the quality of service, one should understand potential
customer requirements better and then adjust its service offering according to
those requirements. 3Kano’s method is a good way to investigate the
characteristics of customer requirements. By using Kano’s method one can
clarify the difficult-to-see customer requirements by classifying them into a few
groups and by locating each requirement on a graph. The underlying
assumption behind Kano’s method is that the customer satisfaction is not
always proportional to how fully functional the product is or in other words,
higher quality does not necessarily lead to higher satisfaction for all product
attributes or services requirements. In our case, type and intensity of service
requirements may be considered must-be (expected) and should be satisfied
at expected levels. On the other hand some service requirements (attractive
also known as delighters, unexpected or exciting) don’t make any difference in
case of deprivation of these requirements but elevate satisfaction levels when
fulfilled. They are neither explicitly expressed nor expected by students. The
third group of service requirements in one-dimensional (existing) and how
these requirements are met is highly correlated with satisfaction levels.
According to Kano (2001), the theory of attractive quality originated because of
the lack of explanatory power of a one-dimensional recognition of quality. For
instance, people are satisfied if a package of milk extends the expiration and
dissatisfied if the package shortens the expiration. For a quality attribute such
as leakage, people are not satisfied if the package does not leak, but are very
dissatisfied if it does. The one-dimensional view of quality can explain the role
233
of expiration but not leakage. To understand the role of quality attributes, Kano
et al. (1984) present a model that evaluates patterns of quality, based on
customers’ satisfaction with specific quality attributes and their degree of
sufficiency. On the horizontal axis in the Kano diagram the physical sufficiency
of a certain quality attribute is displayed and the vertical axis shows the
satisfaction with a certain quality attribute (Kano et al., 1984). The theory
explains how the relationship between the degree of sufficiency, and customer
satisfaction with a quality attribute, can be classified into five categories of
perceived quality: “attractive quality”, “one dimensional quality”, “must-be
quality”, “indifferent quality” and “reverse quality”. The first three categories
have been mentioned above. All the three types of service requirements can
be seen in the figure 5.31.
5.2.2.z.i. First Step for Creating the Kano Mode l: Identifying the Voice of the Customer
The first step for creating the Kano model is to identify the quality characteristics that are
typically fuzzy, vague and nebulous. These quality characteristics are referred to as the Voice
of the Customer (VOC) . Once the Voice of the Customer is understood, attempt can be
made to translate it into quantitative terms known as critical to quality (CTQ) characteristics.
This is the terminology generally used in with the Six Sigma methodology. What happens from
here, though, can sometimes go astray if we are not careful and try to put our own spin on the
needs of the customer.
5.2.2.z.ii. Use of Kano Model to Prioritize the Critical to Quality Characteristics
234
So, now when the importance of customer in workable terms is identified, we can go to the
second step. Always keeping the customer in mind, we can apply the concepts outlined in the
Kano model diagram. The Kano model is broken down into an (x, y) graph, where the x-axis of
the Kano model represents how good we are at achieving the customer’s outcome(s), or
CTQ’s. The y-axis of the Kano model records the customer’s level of satisfaction as a result of
our level of achievement.
The red line on the Kano model represents the Must Bes . That is, whatever the quality
characteristic is, it must be present; if the quality characteristic is not met, the customer will go
elsewhere. The customer does not care if the product is wrapped in 24-carat gold, only that it
is present and is functionally doing what it was designed to do. An example of this would be a
client who checks into a hotel room expecting to find a bed, curtains and bathroom in the
room. These items are not called out for by the customer, but would definitely cause them to
go elsewhere if any of these “characteristics” were not present.
The blue line on the Kano model represents the Performance . This line reflects the Voice of
the Customer . The better we are at meeting these needs, the happier the customer is. It is
here where the trade-offs take place. Someone wanting good gas mileage would not likely
expect to have a vehicle that has great accelerations from a standing position.
By far, the most interesting evaluation point of the Kano model is the Delighter (the green
line). This represents those qualities that the customer was not expecting, but received as a
bonus. A few years ago, it was customary that when a car was taken back to the dealer for a
warranty oil change, the vehicle was returned to the owner with its body washed, mirrors
polished, carpets vacuumed, etc. After a few trips to the dealer, this Delighter became a Must
Be characteristic. Thus, a characteristic that once was exciting was now a basic need, and a
part of the customer’s expectations. Another example of this is the amenities platter that some
hotels provide their platinum customers upon checking in. This practice was certainly a
235
delight. It has, however, become an expected part of my check-in, such that if there is no
platter waiting in my room, I’m on the phone with the front desk.
Once the critical to quality characteristics have been prioritized, the last step of the Kano
model involves an analysis of evaluating or assessing just how well we can satisfy each of Dr.
Noriaki Kano’s classifications.
5.2.3. ANALYSE PHASE (D-M-A-D-V)
5.2.3.a Facts from the Study
During the study researcher spends a lot of time on the road. In doing so, he have a tendency
to check into tells on a regular basis. It was queried with the managers of a hotel I spend a lot
of time at on how they established practices to entice the business client. They had given the
following scenario as:
The first thing they did was identify a list of qualities the client would be interested in. They
came upon the list by listening to complaints, handing out surveys, holding focus groups and
conducting interviews. The information below is a list from the Voice of the Customer .
Knowing that the researcher was involved in something that dealt with customer satisfaction,
they asked me to assist them in ranking the characteristics. Researcher explained the
concepts behind the Kano model, and together we developed the list in the column labeled
Business Client . This was all fine, as far as the business customer was concerned.
Table 5.5 Characteristics Vs Business Clients
Characteristics Business Clients
Price Performance
Fast Check in Performance
Express Checkout Must Be
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Location Performance
Comfortable Bed Must Be
Continental Breakfast Must Be
Jacuzzi Delighter
Internet Hook up Must Be
Newspaper Must Be
Cable/HBO Delighter
Exercise Room Delighter
Swimming Pool Delighter
Restaurant Performance
For the purpose of study, researcher asked them to look at these same characteristics from
the point of view of a vacationing family. As a task, it was asked him to assess how strong or
weak they felt the hotel was when trying to meet those quality characteristics identified in table
5.5. The results were as shown in the next table.
237
Table 5.6 Results are shown as below
Characteristics Business Clients Vacationer How Good
are we?
Price Performance Must Be Satisfactory
Fast Check in Performance Performance Weak
Express Checkout Must Be Performance Weak
Location Performance Performance Satisfactory
Comfortable Bed Must Be Must Be Satisfactory
Continental Breakfast Must Be Delighter Satisfactory
Jacuzzi Delighter Performance Weak
Internet Hook up Must Be Delighter Weak
Newspaper Must Be Delighter Satisfactory
Cable/HBO Delighter Must Be Satisfactory
Exercise Room Delighter Performance Weak
Swimming Pool Delighter Must Be Satisfactory
Restaurant Performance Performance Weak
The conclusions from this effort can be as summarized by looking at the rows hat have a
Characteristic in the Must Be category. With respect to the business client, this yielded
express checkout, a comfortable bed, continental breakfast, internet hook-up and newspaper.
The vacationer, on the other hand, had Must Be’ s that included price, comfortable bed,
cable/HBO and a swimming pool. Of these quality characteristics, the manager realized that
the hotel was weak in the check-in and express checkout process, and internet hook-up. This
Kano model exercise allowed the manager to better address the needs of the customer,
based on their Critical to Quality (CTQ) characteristics. Now the work begins to minimize the
gap of where the hotel is with respect to where the hotel wants to be in the table below, we
can see how certain industry-specific product and service features may appear under the
different categories of the Kano model
Table 5.7 Industry-Specific Product and Service Fe atures
238
Basics Performance Excitement
Hotel • Hygiene • Safety • Security
• Timely check in • Courteous staff • Comfortable bed • Prompt service • Wi-Fi • Toiletries
• Dinner on the house
• Free tour of the city • Bottle of
champagne in the room
• Folder with guest’s name printed on it
Employing the Kano model is a small but effective step towards embedding
customer-centricity within a company. Researcher strongly believes that a
company that uses this model will be able to:
Communicate the expected and differentiating features of its product/service
process,
Enable its work force to understand both the implicit and explicit elements of
customer quality,
Ensure that its work force knows how to provide more than what is expected
by customers,
And reduce mis-selling that often happens in service industries such as
banking, insurance, and telecom.
5.2.4 DEVELOP PHASE (D-M-A-D-V)
5.2.4.a Development Of Conceptual Model for Hotel I ndustry
239
The House of Quality (HoQ) is a fundamental element of the Quality Function
Deployment (QFD) process, which provides a framework to relate customer
needs to design characteristics at the product/service development level4. The
traditional HoQ comprises six main steps. The process of completing the HoQ
is described by the foundation of the house of quality is the belief that products
or services should be designed to reflect customers’ desires and tastes. The
house of quality is a kind of conceptual map that provides the means for inter-
functional planning and communications (Hauser, John, and Clausing, 1988).
The HoQ starts with the customer needs and the customer competitive
evaluations together with the level of importance that the customers assign to
their needs and the way they rate the products/services against those of the
competitors. These needs are translated into technical features by a
relationship matrix that further deploys itself into a triangular correlation matrix
and competitive technical assessments with its own set of operational goals
and targets. The HoQ relates simply customer requirements, technical
requirements and competitive analysis. The relationship matrix of HoQ shows
the correlation between the customer requirements and the technical features
so it is also called as the “planning matrix”. It is crucial that the house of quality
should be developed carefully since it becomes the basis of the entire QFD
process. Indeed, the house of quality helps the team to set targets, which are,
in fact, entered on the bottom line of the house. For engineers it is a way to
summarize basic data in usable form. For marketing executives it represents
the customer’s voice. General Managers use it to discover strategic
240
opportunities. In a nutshell, the house encourages all of these groups to work
together to understand one another’s priorities and goals (Hauser et al, 1988).
The development of the conceptual model for this study began with the
imagination a hotel instead of a house and the translation house sections into
hotel components. The typical HoQ concepts were changed to meaningful
ones to the hospitality industry. By using this metaphor, hotel managers and
practitioners could better understand the QFD basics defined in hotel jargons.
The customer needs or "whats" were replaced with the "Hotel Front Office”,
where is the guest expresses A QFD and Service Quality (Servqual)
approach to Hotel Service Design her/his expectations and wants. The "Hotel
Back office" was used instead of the service design requirements which are
called as "hows". That is why the back office is the place in which the hotel
operations are performed in hotel people jargon.
The importance levels of the needs and the comparison rates with competitors
were assessed in the "Customer Care Unit (CCU)". The relationships between
"Front Office" and "Back office" were determined with the operations in the
"Hotel Rooms". The functional interactions were assessed in the gable roof of
the hotel. The last place is the hotel quality board where all of the
assessments are integrated to determine the most important improvement. In
using QFD, it is essential to define the "Whats" and "Hows" according to the
nature of the issue. The key question to be asked is "what" the customers’
expectations would be from the hotel. Surveys, interviews with guests,
241
organizing focus groups, visits and content analysis are generally used in
order to define the customer needs. This study uses SERVQUAL for primarily
identifying the key dimensions of hotel service quality. SERVQUAL proposes
five distinct dimensions to evaluate the service quality: reliability,
responsiveness, assurance, empathy and tangibles. Table 5.8 shows the five
dimensions of the SERVQUAL definitions.
Table 5.8 SERVQUAL Five Dimensions
Reliability The ability to perform the promised hotel
service dependably and accurately in a hotel.
Responsiveness The willingness of hotel personnel both to
help customers and provide prompt services.
Assurance Knowledge and courtesy of hotel employees
and their ability to convey trust and
confidence.
Empathy Ability to show caring, individualized attention to
hotel customers.
Tangibles Physical aspects of hotel services including the
appearance of physical facilities, equipment,
personnel and communications materials.
Despite the wide usage of SERVQUAL by academics and practicing
managers in various service industries, it needs to be modified based on the
hotel customers' needs, i.e. customized according to the expectations of the
guests. In this study, SERVQUAL has been modified to the hospitality industry
and used in order to consider the guests’ expectations and needs in the early
stages of hotel service design. SERVQUAL includes general items describing
242
five service quality dimensions. A pilot study has been conducted using these
items. Then the list including 17 items given in Table 5.9 has been obtained by
omitting or changing some items based on the guests’ feedback. This list
describes the "whats" or the guests’ expectations and needs from a hotel.
The “Hows” part of the Hotel Of Quality has been determined on the basis of
service elements. The key question in this step is "how" the hotel would be
able to deliver the required service(s) to its guests. For a production firm, it is
easy to define the technical requirements based on the company's operational
or managerial resource allocation plans. However for a hotel, if only the
processes are considered, some important issues such as people and
physical evidence aspects are ignored. Normally only the hotel processes in
their house of quality is considered but not included the human factors and
tangible representation of the hotel. The service mix not only includes the
process itself, but also includes people and physical evidence. In this study,
the extended 3P’s (process, people and physical evidence) of service mix
given in Table 5.9, is used to define the importance.
243
Table 5.9 Factors defined for Extended P’s of Mark eting
Reliability The ability to perform the promised hotel
service dependably and accurately in a
hotel.
Responsiveness The willingness of hotel personnel both
to help customers and provide prompt
services.
Assurance Knowledge and courtesy of hotel
employees and their ability to convey trust
and confidence.
Empathy Ability to show caring, individualized attention
to hotel customers.
Tangibles
Physical aspects of hotel services including
the appearance of physical facilities,
equipment, personnel and
communications materials.
5.2.4.b Conversion of Cognitive Images into CTQ’s
A quality function deployment (QFD) matrix is used to convert the cognitive
images into CTQs by stakeholder segment. Table 5.10 shows the QFD matrix.
The cognitive images are in the rows and the CTQs are in the columns. The
QFD for Hotel industry is as shown
244
Horizontal/ landscape pages
245
Horizontal/ landscape pages
246
Horizontal/ landscape pages
247
Horizontal/ landscape pages
Chart 5.30
Promising to provide a
performed
Willing to help
Never too busy t o
responding to guest s’
Feeling safe in the
Feeing safe and secure
Having Polite and
Having the know ledge
Having the skill t o per
individual attention
guests’ best interests at
Understanding guests’
looking of Equipment ,
Having Neat and
professional employees
Comfortable Fixture and
Generally
Cleanness Equipment
Performance Analysis
0 2 4 6 8
Promising to provide a …
performed
Always
Willing to help
Never too busy t o
responding to guest s’
requests
Feeling safe in the …
Feeing safe and secure …
Having Polite and …
Having the know ledge …
Having the skill t o per …
se rice
Giving
individual attention
Having
guests’ best interests at …
Understanding guests’ …
needs
Modern
looking of Equipment , …
Having Neat and
professional employees
Comfortable Fixture and
fit tings
Generally
Cleanness Equipment …
Having
Variety
Improvement Ratio
Sales Point
Performance Goal
Indian Hotel Performance
248
Improvement Ratio
Sales Point
Performance Goal
Indian Hotel Performance
249
5.2.5. VALIDATE PHASE ( D-M-A-D-V)
5.2.5.a. Service Quality (SERVQUAL) Model
Based on QFD and CTQ’s found from the above table, A Service-Quality
(SERVQUAL) model for hotel can developed and the adjusted items for the
same is as shown in the following table
Table 5.11 SERVQUAL Adjusted Items Description
Reliability Promising to provide a service and doing so
Responsiveness
Telling guests exactly when the services will
be performed
Always willing to help
Never too busy to responding to guests’
requests
Assurance
Feeling safe in the delivery of services
Feeling safe and secure in their stay
Having polite and courteous employees
Having the knowledge to answer questions
Having the skill to perform the service
Empathy
Giving individual attention
Having guests’ best interests at heart
Understanding guests’ specific needs
250
Tangibles
Modern looking equipment, fixtures and
fittings
Having neat and professional employees
Comfortable fixture and fittings
Generally clean equipment and facilities
Having variety
5.2.5.b. Extended 3P’s of Marketing Mix for Hotels
The extended 3 P’s of marketing mix, which is very important for service
industry like hotels is shown in the following table as:
Table 5.12 3P's Dimensions of Hotel Services Desig n
Process
Actual procedure, mechanisms, and flow of activities
by which hotel services are delivered- The hotel
service delivery and operating systems.
People
All human factors that play a part in hotel services
delivery and thus influence the guests’ perceptions,
namely, the hotel employees, the customers, and
other customers in the service environment.
Physical
Evidence
The environment in which the service is delivered
and where the hotel and guests interact, and any
tangible component that facilitate performance or
communication of service.
251
5.2.5.c. Explanation of 3P’s w.r.t. Hotel Industry
The detailed version of 3P’s with respect to hotel industry is listed in the
following table as:
Table 5.13 Detailed Versions of the 3P's
Hotel Processes
IT & Automation
Front Desk • Courtesy
• Check-in/out
Housekeeping
• Cleanliness
• Timely Arrangement
• Room Items In-Order
Food & Beverage
• Food Quality
• Sanitation
• Employee Behavior
• Process
Complaint Handling
Hotel People Staff Behavior Training & Education Motivation
Teamwork
Hotel Physical
Evidence
Interior Design Equipment Architect
Employee Uniform
Safety & Security
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5.2.5.d. Proposed Model for Hotel of Quality
Based on above observation and findings from the DMADV technique of Six
Sigma, researcher proposes the following model for developing a quality hotel.
The proposed model is as shown in figure
Chart 5.31 Proposed Model
Welcome to front office
Process by hotel customers & competitors care unit
Work in hotel back office
Checking in hotel rooms
Decision making by hotel quality board
Working on the hotel gable roof
Fee
dbac
k an
d co
ntro
ls id
entif
ied
with
de
sire
d im
prov
emen
ts
253
5.2.5.e. Steps to create the proposed Hotel of Qual ity
From the above figure the step by step details for making the quality hotel is
listed in the following table. There are six steps proposed for developing hotel
of quality as under:
Table 5.14 Steps to Create the Hotel of Quality
Step 1 Welcome to front
office Identifying customer needs.
Step 2
Process by hotel
customers
& competitors care
unit
Prioritizing customer
needs and conducting
competitive.
Step 3 Work in hotel back
office
Developing service
design requirements.
Step 4 Checking in hotel
rooms
Constructing the
relationship matrix between
customer needs and service
design requirements.
Step 5 Decision making
by hotel quality
board
Prioritizing service
design requirements.
Step 6 Working on the hotel
gable roof
Determining interactions
between pairs of service design
requirements.
254
The steps mentioned in above table are explained in detail as under:
Step1- Welcome to Front Office: Identifying Guests’ Needs, Customers tell all
details of service attributes, but they do not know whether their words
represent a requirement or not. These attributes or words may be a real
requirement itself, or just a problem they have faced before or indicate a
technical feature. In this study, a questionnaire based on SERVQUAL items
was designed and used to identify completely and successfully the guests’
expectations and needs through personal interviews. During the interviews, it
was found that the "Promising to provide a service and doing so" quality
attribute included well than other attributes among the reliability issues.
Regarding the responsiveness, there were different expected waiting times
depending on the various hotel services or types of customers. For the
assurance attributes, the five star hotel guests had different opinions of rest;
they expected a snug place. They imagined the hotel as their second home.
The cultural differences caused a variety in understanding toward the empathy
Attributes. Eastern guests, such as Turkish people, have defined empathy as
warm blood and cheerful faces but western guests, such as European people,
have emphasized "Understanding guests’ specific needs". The variety of
services for instance foods, exterior and interior design were emphasized the
most by guests. After modifications, the guests’ needs were defined.
Step 2- Process by Hotel Customers & Competitors Care Unit (CCU):
Prioritizing Customer Needs and Conducting Competitive Analysis. It is
255
observed that the QFD can support the process from problem identification to
design specification. In dealing with customer requirements, it is
recommended that designers apply analytic hierarchy process (AHP) to
determine the importance degrees of customer requirements. Therefore, a
structured AHP was prepared form using items which enables the guest to
make pair wise comparisons between the customer needs. Then, we had a
short meeting with guests before they filled out the forms to make sure that all
have the same understanding about the needs. All sample hotel guests were
asked to assign a (integer) weight between 1 and 9 for the needs to reflect the
Importance of a need (say, A) relative to the other one (say, B). If B is
considered more important than A, the inverse of the number is assigned.
Even (intermediate) numbers are also used if it more accurately reflects the
decision of the guest. Answers of most of the hotel guests were found as
consistent. Since this level is acceptable so that it is calculated the geometric
mean of all the consistent answers for each cell of the pair wise matrix of the
customer needs and then applied AHP procedure to reach customer
importance levels for each need. For performance and competitiveness
analysis, the guests were asked to assess the hotels in Mumbai and Pune in
comparison with rest of Maharashtra five star hotel performances. The
assigned numbers indicated that the Mumbai hotels and Pune hotels were
rated better than the rest of Maharashtra in assurance and empathy
dimensions, and for tangibles the Pune hotels were rated better than Mumbai
and rest of Maharashtra. According to budget and hotel managers’ points of
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view; the level of desired performance goal and sales point were assigned. In
the Performance Goal column, hotel managers decides what level of customer
performance they want to aim for in meeting with each customer need-the
Goal. The performance goals are expressed in the same numerical scale as
performance levels. The Goal performance, combined with our current rating,
is used to set the Improvement Ratio. The Improvement Ratio, is one of the
most important multipliers of importance to customer, thus, setting the
performance goal is a crucial strategic step in QFD. In addition, the Sales point
column contains information characterizing the ability to sell the service, based
on how well each customer need is met. The values assigned for sales point
are 1 for “no sales point”, 1.2 for “medium sales point” and 1.5 for “strong
sales point”. Then the relative weights for each guests’ needs were
determined. As shown in the Hotel of Quality of Indian five star hotel it is found
that the most important attribute for guests was related to tangibles. The
rightmost column in Figure drawn above displays also the performance of this
hotel with respect to its competitors' situation. It is clear that this hotel exhibits
lower performance than its competitors.
Step 3- Work in Hotel Back Office: Developing Service Design Requirements
The service elements were selected on the basis of service mix of 3Ps as
mentioned in the previous section with some modifications, such as adding IT
and complaint handling processes.
257
Step 4- Checking in Hotel Rooms: Constructing the Relationship Matrix
between Guest Needs and Service Design Requirements In this step, the
relationships between guest needs and service elements were determined
according to the expert views which were obtained from hotel managers and
employees. For this reason, we discussed in a group composed of people
representing the divisions of: Front Desk, Reception Desk, Housekeeping,
Food and Beverage, Hotel Architecture and Designer, Marketing and Hotel
manager. We assigned the weight of the relationship between each “what” and
each “how” using 9 for strong, 3 for moderate, and 1 for weak. In the actual
HoQ, these weightings will be depicted with alphabetical symbols, the most
common being H for strong, M for moderate, and L for weak. For instance,
physical evidence strongly related to tangible elements. Front desk and Hotel
People correlated strongly with responsiveness. Hotel people had no
correlation with tangibles, but had a relationship with all the attributes.
Step 5- Decision Making by Hotel Quality Board: Prioritizing Service Design
Requirements The raw importance and relative weight of service design
elements are computed by using the relative importance values and the
relationship matrix developed in step 4. The accuracy of the results in this step
relies heavily on the quality of the relationship matrix. The raw importance
weight of each service design element is calculated by summing across the
products of the relationship strength (i.e., the cell value assigned in the
relationship matrix) and the relative weight of the guest need (i.e., AHP-Driven
258
Importance Rating). This computation process intertwines guests’ needs with
service design requirements so that the resulting value gives the relative
weight of each of the requirements as compared to guest needs. According to
the relative weights, Cleanliness, Equipment, Staff Behavior and Complaint
Handling have greater priority more than others in this case. Therefore, the
hotel quality board should consider primarily these hotel service design
projects. In addition, according to hotel experts’ view, It was stated Objective
Target Values and related Technical Difficulty. Objective Target Values are
indications as to how much of some technical characteristic the customer
wants. This information can help hotel managers when they want to deploy
service design projects. A QFD and Servqual Approach to Hotel Service
Design.
Step 6- Walking on Hotel Gable Roof: Determining Interactions Between Pairs
of Service Design Requirements. The final step of the Hotel of Quality is for
management to determine the degree of the functional relationship for each
pair of service design elements. Resaercher defined the trade-offs through
symbols in the roof. For instance, IT & Automation has a synergy relationship
with Check-In/Out. Also, cleanliness has a synergy relationship with Timely
Arrangement, Room Items in Order, Training-Education and Equipment. Other
functional relations are shown in the gable roof of the Hotel of Quality. By
considering these relationships, managers could see the effects of any design
change in one element to other elements.
259
This study has attempted to develop a conceptual Hotel of Quality model for
hotel services and to relate the hotel characteristics and hotel practitioner
argons to this model. For the development of "whats" based on hotel guest
needs, the modified version of SERVQUAL was used. Regarding the “hows” of
the Hotel of Quality, the 3Ps of service mix were used to consider all aspects
of hotel services. After defining the conceptual model, a study was presented
for application and verification in a five star hotel.
The design for Hotel of Quality includes a six-step process. In the first step,
the service quality attributes were checked. Guest’s interviews determined that
the SERVQUAL items were applicable and understandable; however needed
some modifications specific for this industry. The customer importance levels
were obtained in the second step. In third step, the proposed elements of hotel
services were checked via experts’ opinions and some modifications over
these elements were made accordingly. The fourth step demonstrated the
relationship matrix and some important relations that must be considered by
any design activities. The fifth step brought valuable insights for the managers
regarding service design priorities. Thus, they considered the interaction
between elements of service and their effects to each other.
Hotels do face different types of guests such as businessmen, tourists,
political guests, etc. with different expectations. The generalization of this
study to all hospitality industry is limited because it was performed on rated
star hotels. On the other hand, there is a need to add some powerful data
processing tools to the proposed technique. Future research can benefit upon
this study by expanding the scope from hotel industry to other type of
industries.
260
5.3 Testing of Hypothesis
The hypothesis taken for the study were as follows
Hypothesis 1
4. Customers are able to distinguish Quality Services.
This hypothesis was statistically stated as
Null Hypothesis H 0 : Customers are not able to distinguish Quality
Services.
Chi Square is used as a test for statistical significance. The following
information is gathered for the testing of hypothesis
Type of Sample Hotel Able to distinguish quality
services
Up to 3 Star hotel 95
4 and 5 Star Hotels 25
Total 120
Observation
Improvements in Quality of Services? Number of Sample Hotel
Yes 80
No 40
Total 120
261
To compute Chi Square, a table showing the joint distribution of the two
variables is needed which is shown in table 5.8.1.
Table 5.3.1 Customers able to distinguish quality services (Observed
Frequency)
Improvements in Quality
of Services?
Type of Sample Hotel
Total Up to 3 Star
hotel
4 and 5 Star
Hotels
Yes 83 13 80
No 12 12 40
Total 95 25 120
Chi Square is computed by looking at the different parts of the table. The
"cells" of the table are the squares in the middle of the table containing
numbers that are completely enclosed. The cells contain the frequencies that
occur in the joint distribution of the two variables. The frequencies that we
actually find in the data are called the "observed" frequencies.
In this table, the cells contain the frequencies for the Sample hotels up to 3
star which says that there is improvements in the quality of service by
improving the marketing activity (n=83) and who didn't get any change in the
quality of services (n=12), and the frequencies for the sample hotels in 4 & 5
Star category who got the improvements in the quality of service by improving
the marketing activity (n=13) and who didn't get any change (n=12).
The "Total" columns and rows of the table show the marginal frequencies. The
marginal frequencies are the frequencies that we would find if we looked at
each variable separately by itself. For example, we can see in the "Total"
column that there were 80 hotels which got a change and 40 hotels which
didn't. We can see in the "Total" row that there were 95 hotels up to 3 star
categories and 25 hotels in 4 and 5 star categories as the sample hotels.
262
Finally, there is the total number of observations in the whole table, called N.
In this table, N=120.
Calculation of Chi Square
1) display observed frequencies for each cell
2) calculate expected frequencies for each cell
3) calculate, for each cell, the expected minus observed frequency squared,
divided by the expected frequency
4) all up the results for all the cells
To find the value of Chi Square, we first assume that there is no relationship
between the Improvements in the quality of services and improvements in
marketing activity. If we look at the column total, it can be seen that 80 of 120
hotels got improvements in the quality of services by improving their marketing
strategy, or 66.7% of the total hotel got the improvements. It was also
observed that 40 of 120 sample hotels did not find any change, or 33.3% of
the total hotels did not find any connection between the Improvements in
Marketing and quality of services.
If there was no relationship between these two activities, then it is expected
that 66.7% of sample hotels including both the categories of sample will find
that that there is improvements in the quality of service by improving the
marketing activity and 33.3% of both the categories of sample hotel will not get
any change in the quality of services.
The first thing that Chi Square does is to calculate "expected" frequencies for
each cell. The expected frequency is the frequency that we would have
expected to appear in each cell if there was no relationship.
263
The way to calculate the expected cell frequency is to multiply the column total
for that cell, by the row total for that cell, and divide by the total number of
observations for the whole table.
For the upper left hand corner cell, multiply 95 by 80 and divide by 120=
63.33
For the lower left hand corner cell, multiply 95 by 40 and divide by 120=31.67
For the upper right hand corner cell, multiply 25 by 80 and divide by
120=16.67
For the lower right hand corner cell, multiply 25 by 40 and divide by 120=8.33
Table 5.3.2 Customers able to distinguish quality services
(Expected Frequency)
Improvements in Quality
of Services?
Type of Sample Hotel
Total Up to 3 Star
hotel
4 and 5 Star
Hotels
Yes 63.3 16.7 80
No 31.7 8.3 40
Total 95 25 120
This table shows the distribution of "expected" frequencies, that is, the cell
frequencies we would expect to find if there was no relationship between type
of training and job placement.
Note that Chi Square is not reliable if any cell in the contingency table has an
expected frequency of less than 5.
To calculate Chi Square, we need to compare the original, observed
frequencies with the new, expected frequencies. For each cell, we perform the
following calculations:
264
a) Subtract the value of the observed frequency from the value of the expected
frequency
b) Square the result
c) Divide the result by the value of the expected frequency For each cell
above,
fe - fo (fe - fo)2 [(fe - fo)2] / fe Result
(63.3-83) (63.3-83)2 (63.3-83)2] / 63.3 6.130964
(31.7-12) (31.7-12)2 [(31.7-12)2] / 31.7 12.24259
(16.7-13) (16.7-13)2 [(16.7-13)2] / 16.7 0.81976
(8.3-12) (8.3-12)2 [(8.3-12)2] / 8.3 1.649398
Total 20.84271
To calculate the value of Chi Square, add up the results for each cell—
Total = 20.84271 i.e. 20.843.
Degrees of Freedom (df)
The term "degrees of freedom" is used to refer to the size of the contingency
table on which the value of the Chi Square statistic has been computed. The
degrees of freedom are calculated as the product of (the number of rows in the
table minus 1) times (the number of columns in the table minus).
Here the table is with two rows of cells and two columns of cells, the formula
is:
df = (2 - 1) x (2 - 1) = (1) x (1) = 1
and alpha p = 0.05
265
Chi-Square Test
Value df Value of p
Pearson Chi-Square 20.843 1 0.05
Result Interpretation
The Chi Square value in the table at p=.05 and df=1
Chi Square=3.84
The computed value of Chi Square (20.843) exceeds the value in the
table for p=.05 and df=1 (Chi Square=3.84). Therefore, the null
hypothesis H0 is rejected (with a 5% probability of error) and the
research hypothesis that Customers able to distinguish quality services
is accepted.
Hypothesis 2
Quality of services in Hotels & Resorts can be
improved by using Six Sigma Methodology.
This hypothesis was statistically stated as
Null Hypothesis H 0 : Quality of services in Hotels & Resorts cannot be
improved by using Six Sigma Methodology.
266
Chi Square is used as a test for statistical significance. The following
information is gathered for the testing of hypothesis
Type of Sample Hotel Application of Six Sigma
Up to 3 Star hotel 95
4 and 5 Star Hotels 25
Total 120
Observation
Improvements in Quality of Services? Number of Sample Hotel
Yes 90
No 30
Total 120
To compute Chi Square, a table showing the joint distribution of the two
variables is needed which is shown in table 5.8.3.
Table 5.3.3 Improvement in Quality of Service by application of Six Sigma
Methodology (Observed Frequency)
Improvements in Quality
of Services?
Type of Sample Hotel
Total Up to 3 Star
hotel
4 and 5 Star
Hotels
Yes 83 13 90
No 12 12 30
Total 95 25 120
267
Expected frequency
The way to calculate the expected cell frequency is to multiply the column total
for that cell, by the row total for that cell, and divide by the total number of
observations for the whole table.
For the upper left hand corner cell, multiply 95 by 90 and divide by 120=
71.25
For the lower left hand corner cell, multiply 95 by 30 and divide by 120=23.75
For the upper right hand corner cell, multiply 25 by 90 and divide by
120=18.75
For the lower right hand corner cell, multiply 25 by 30 and divide by 120=6.25
Table 5.3.4 Improvement in Quality of Service by application of Six Sigma
Methodology (Expected Frequency)
Improvements in Quality
of Services?
Type of Sample Hotel
Total Up to 3 Star
hotel
4 and 5 Star
Hotels
Yes 71.25 18.75 90
No 23.75 6.25 30
Total 95 25 120
Calculation of Chi Square
fe - fo (fe - fo)2 [(fe - fo)2] / fe Result
(71.25-83) (71.25-83)2 (71.25-83)2] / 71.25 1.937719
(23.75-12) (23.75-12)2 [(23.75-12)2] / 23.75 5.813158
(18.75-13) (18.75-13)2 [(18.75-13)2] / 18.75 1.763333
(6.25-12) (6.25-12)2 [(6.25-12)2] / 6.25 5.29
Total 14.80421
268
To calculate the value of Chi Square, add up the results for each cell—
Total = 14.80421 i.e. 14.8.
Chi-Square Test
Value df Value of p
Pearson Chi-Square 14.8 1 0.05
Result Interpretation
The Chi Square value in the table at p=.05 and df=1
Chi Square=3.84
The computed value of Chi Square (14.8) exceeds the value in the
table for p=.05 and df=1 (Chi Square=3.84). Therefore, the null
hypothesis H0 is rejected (with a 5% probability of error) and the
research hypothesis that Quality of services in Hotels & Resorts can be
improved by using Six Sigma Methodology is accepted.
269
Hypothesis 3
5. Improvement in Service Quality will lead to enha nced
customer satisfaction.
This hypothesis was statistically stated as
Null Hypothesis H 0 : Improvement in Service Quality will not lead to
enhanced customer satisfaction.
For testing of Hypothesis 3, feedback from the customers of both type of
sample hotels were taken randomly. The number of customers responded
were 450, and hence the sample size for this is 450 customers. The
information collected is shown in following tables
Type of Sample Hotel Customers
Up to 3 Star hotel 200
4 and 5 Star Hotels 250
Total 450
Observation
Able to distinguish quality Services?
Satisfaction with delight? Number of Customers
Yes 300
No 150
Total 450
270
To compute Chi Square, a table showing the joint distribution of the two
variables is needed which is shown in table 5.8.5.
Table 5.3.5 Improvements leads to customer Satisfaction
(Observed Frequency)
Improvements lead to customer
Satisfaction?
Type of Sample Hotel
Total Up to 3 Star
hotel
4 and 5 Star
Hotels
Yes 175 125 300
No 25 125 150
Total 200 250 450
Expected frequency
The way to calculate the expected cell frequency is to multiply the column total
for that cell, by the row total for that cell, and divide by the total number of
observations for the whole table.
For the upper left hand corner cell, multiply 200 by 300 and divide by
450=133.3
For the lower left hand corner cell, multiply 200 by 150 and divide by
450=66.7
For the upper right hand corner cell, multiply 250 by 300 and divide by
450=166.7
For the lower right hand corner cell, multiply 250 by 150 and divide by
450=83.3
271
Table 5.3.6 Improvements lead to customer Satisfaction
(Expected Frequency)
Improvements lead to customer
Satisfaction?
Type of Sample Hotel
Total Up to 3 Star
hotel
4 and 5 Star
Hotels
Yes 133.3 166.7 300
No 66.7 83.3 150
Total 200 250 450
Calculation of Chi Square
fe - fo (fe - fo)2 [(fe - fo)2] / fe Result
(133.3 - 175) (133.3 - 175)2 [(133.3 - 175)2] / 133.3 13.04
(66.7 - 25) (66.7 - 25)2 [(66.7 - 25)2] / 66.7 26.07
(166.7 - 125) (166.7 - 125)2 [(166.7 - 125)2] / 166.7 10.43
(83.3 - 125) (83.3 - 125)2 [(83.3 - 135)2] / 83.3 20.88
Total 70.42
To calculate the value of Chi Square, add up the results for each cell—
Total = 70.42
272
Chi-Square Test
Value df Value of p
Pearson Chi-Square 70.42 1 0.001
Result Interpretation
The Chi Square value in the table at p=.001 and df=1
Chi Square= 10.83
The computed value of Chi Square (70.42) exceeds the value in the
table for p=.001 and df=1 (Chi Square=10.83). Therefore, the null
hypothesis H0 for hypothesis 3 is rejected and the research hypothesis
that improvements in the quality of services will leads to customer
satisfaction is accepted.
****