Chapter 5 Development of Conceptual Framework...

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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 [email protected]

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


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



198


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



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


rooms. Very few hotels provide the other facilities, the reasons give were that


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



esent in all 4 star & 5 star category barring Driver’s room in very few. At the



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acilities, the reasons give were that


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



esent in all 4 star & 5 star category barring Driver’s room in very few. At the



Upto 3 Star

4 & 5 Star

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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

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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


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



categories after a sufficient experience starts getting better opportuni




better shown in the figure 5.10.

Lower Level Middle Level Higher Level

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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



categories after a sufficient experience starts getting better opportunities and




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

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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


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


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.


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



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


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.


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


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.


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


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.


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


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


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


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.


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


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



100% in case of 4 to 5 star category and more than 90% in the case of

samples up to 3 star categories.


227

Effective handling of complaints Results in Improve d



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.

230

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.

231

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

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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

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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


246


247


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

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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


Step 5 Decision making

by hotel quality

board

Prioritizing service


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

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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)


of Services?


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.


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



Total 120

Observation

Improvements in Quality of Services? Number of Sample Hotel

Yes 90

No 30

Total 120



Table 5.3.3 Improvement in Quality of Service by application of Six Sigma

Methodology (Observed Frequency)


of Services?


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




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


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)


of Services?


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



(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


Total = 14.80421 i.e. 14.8.

Chi-Square Test

Value df Value of p




Chi Square=3.84



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.


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



Total 450

Observation

Able to distinguish quality Services?

Satisfaction with delight? Number of Customers

Yes 300

No 150

Total 450

270



Table 5.3.5 Improvements leads to customer Satisfaction

(Observed Frequency)

Improvements lead to customer

Satisfaction?


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




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


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?


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



(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


Total = 70.42

272

Chi-Square Test

Value df Value of p




Chi Square= 10.83



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.

****

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