PREFACE

This textbook came into being as a response to the need of having a textbook

specific to the course Quality Service Management under the Hospitality and

Tourism Management programs. The authors determined that in order for students

to have a unified understanding and appreciation of the concepts and principles of

service quality and excellence, they must have access to a resource material that

covers exactly what is required in the syllabus of the course. The authors provided

cases that would present an actual application of topics in every chapter of this

textbook. To foster enhanced learning, guide questions for further discussions are

provided. Activities and experiential exercises are also suggested at the end of each

chapter to allow the students to have an actual and firsthand understanding of the

topics discussed.
 CHAPTER 1

Introduction to Quality Service Management in Tourism and Hospitality

Introduction

In the tourism and hospitality industry, establishment of quality is one of the

prime reasons that an entity will be patronized. It should always be remembered

that customers (guests as we call them) have a lot of choices. With over decades of

existence in operations, the determination of quality has changed through the years.

Add it up to the impatience and sophistication of our guests, this concept should

always be inculcated in all service providers in this industry.

Learning Objectives

At the end of this chapter, the students should be able to:

 define what is quality;

 determine the different dimensions of quality;
 identify the distinction between goods, services, and service products; and
 gain insights on the contributions made by the pioneers of total quality

management and service management.

Reality Bites

Anne and her family decided to dine out one night and choso
mall due to convenience purposes. Due to a limited selection becuse of

health issues of her family, their choices were narrowed down into two restaurants,

namely, Camiling Restaurant and Shery's Diner, which are Filipino fusion restaurants.

There were some decisions to be made because it was already late

ants, and everyone was hungry. They got to Shery's Diner first, but they were caught in

the long line of customers. Since there was a long line in the waiting list, they deridod

to go to Camiling Restaurant, which was an all-you-can-eat buffet restaurant t

seemed that this was a good choice for the wnole ramily because there was a great

selection of food items and there were no lines. Since Camiling Restaurant is alto

well-known for its food and has been serving Filipino dishes for almost 30 years, the

family expected so much. Upon entering the establishment around 7 pm, the family

saw that there were still a lot of people eating. Since there was quite a crowd, the

family expected to see a lot of food; but to their dismay, there were only a few food

left, and yet the restaurant was still allowing new customérs to come in. The family

waited for the crew to replenish the food, but when Anne asked a crew member

he/she just plainly said that there was no more food. Nonetheless, Anne and her

family adjusted and simply stayed since they were already in the restaurant.After this

instance, a lot of disappointments cluttered up, such as the glasses of water, which

should be given at the start of service, were not provided despite her family's several

requests; the bathroom with no soap and dysfunctional air dryer; and the melted ice
in the haluhalo station. The family was very displeased with the type of service that

they had and they decided not to go back in the said restaurant again.

What is the basis of quality for this kind of instances? Who defines quality, the

also restaurant or the customer? What could the family have done to avoid circumstances such
as this?

2 Quality Service Management in lourism and Hospitality

Content

Knutson (1990) reflected in his research that the intense competition in the
hospitality industry has led many businesses to look for ways on how they can

profitably differentiate themselves from their competition and capture the highest

quality. Similarly, Weiermair (2000) noted that in the tourism sector, even though

the production and distribution of services involve different experiences on both

parts of the tourists and the suppliers, the ultimate goal is still to achieve the highest

quality possible.

To determine the "highest quality," one must first understand the concept of

"quality" For our guests in the tourism and hospitality industry, one will be using

specifications, standards, and other measures to evaluate quality. This is now a piece

of evidence that quality can be understood, defined, and measured. Especially for our

guests, sometimes if asked on quality, they could not define it but would immediately

know one when they see one. It ill now be critical for quality to be seen. To

illustrate, as what the quote says, "Beauty is in the eye of the beholder" so is quality

and more importantly, our guests define it.

Joseph Juran, one of the pioneers in "quality" research, defined quality as "fitness

for use." This means that the concept of quality is variable to the one defining it.

We cannot say that the service of a casual dining restaurant has high quality if

we have no intention of dining in the said restaurant. It is because we are not

intended for the said restaurant, so we have no means in determining quality. A

dining staff member that has no experience in the kitchen cannot decipher the

difference whether a kitchen knife is of good quality or not. It is because it is not fit

Chapter I | Introduction to Quality Service Management in Tourism and Hospitality 3

for him/her to use it. The International Organization for Standardization (ISO),

world body for standard formulation, also defined quality as the totality of ures

and characteristics of a good or service that bear on ltEs ability to satisfy a given

implied need." In the definition, it is clear that a given or mpied need" should ho

addressed and this is usually defined by the user, in our Case, our guest or restaurans

staff from which he/she will address the criteria for quality.

Service Product: Goods and Services

Many have been mentioned already with the concepts of products and services.

But let us add another term: goods. These three terms are often confused with each

other. For the purposes of this book, we will be taking the marketing perspective

of the terms.A product can be defined as anything that we can offer to a market for

attention, acquisition, use, or consumption that could satisfy a need or want. However,

the definition of product does not only involve tangible goods such as those that are

purchased in restaurants like burgers, fries, or drinks.The definition of product must

be extended to include intangible objects as well because they can also be offered
to a market. Burgers, fries, and drinks are what embody the next term, which is

goods. Goods, according to Hill (1999), refer to physical objects for which a demand

exists; their physical attributes are preserved over time; and their ownership can be

established, can exist independently of the owner, and can be traded on markets.

Services, meanwhile, have four features. Lovelock (1983) connoted this as the lHIP

characteristics: intangible, heterogeneous, inseparable, and perishable.

4 Quality Service Management in Tourism and Hospitality

Services are intangible in nature. It means that they cannot be touched as they

are not physical and can only exist in connection to other things. For example,

the warm smile and grateful service of a food attendant in a restaurant cannot be

touched but can be felt and can only exist because you have ordered a food item

in a restaurant. Similarly, services are heterogeneous due to their dependence on the

workforce which does the act. In hospitality, this concept is sometimes referred to

as "inconsistency The service that a hair therapist renders to his/her client at 10

am would be of different quality and dimension as to when he/she does the service

at 8 pm. This is why the industry has the concept of "service recoveryY in place. Just

like when a famous pizza house delivers its pizza on time, if it fails to do so, the pizza

would be free. The concept of heterogeneity is also brought about by the differing

likes and dislikes of the guest. Even though a standard is set, the satisfaction of each

guest varies greatly and of course, as previously stated, the guest defines the concept

of high quality; that is why, commonly, the service staff adheres to the request of the

guest. Inseparability, meanwhile, means that the production (act of delivery of service

staff) and the consumption (guest experience) cannot be separated from each other.

In a spa, for example, the service rendered by a spa therapist cannot be done while

the guest is still at the office. The guest should be present for the massage service

to be done. Using technical criteria to define services, Smith (1776) states that a

service will "perish in the very instant of its performance, and seldom leave any trace
or value behind them for which an equal quantity of services could afterwards be

procured."This is especially true for hotels where the main product is the sale of its

guest rooms. For example, if the sales team of a particular hotel does not perform

its job properly, usually the chance where a room can be sold is lost forever. The

sale cannot be brought back again for that specific day and time. Because of these

characteristics, implications exist, which will be tackled in the next chapters.

Chapter | Introduction to Quality Service Management in Tourism and Hospitality 5

Comparing Goods and Services: A. Parasuraman, V.A. Zeithaml, and L. L. Berry,

"A Conceptual Model of Service Quality and lts Implications for Future Research," Journal of
Marketing 49 (Fall 1985), Pp. 41-50.

Now that we have distinguished the differences between goods and services,

it is now time for us to develop the service product concept. Ford (2011) mentioned

that goods and services could not be separated from each other. In the delivery of

services, one cannot be performed properly without the use of tangible items. For

example, for a spa therapist to be able to conduct a full-body massage, he/she neeas
a cozy bed that would ensure comfort to his/her guest, essential oils to apply

the body for the massage, or glasses when conducting ventosa service.A tour gud

needs maps, flags, or other collaterals for him/her to deliver his/her "commentary

Thus, it is essential that these components be purchased as a package.With this, the

concept of service product was conceptualized.

6 Quality Service Management in Tourism and Hospitality

Dimensions of Quality for Service Products

Garvin (1987), in an article in Harvard Business Review, mentioned that because of

the competition for high quality goods and services and with the internationalization

of said concepts, the following dimensions for quality should be observed and

considered:

1. Performance - lt refers to a service product's primary operating

characteristics. Usually in the hospitality and tourism industry, as we are

catering to intangible dominant concepts, performance often means

prompt service. This dimension of quality has very measurable attributes,

that is why brands can usually be ranked objectively on their respective

aspects. Although measurable, it is quite hard to measure overall

performance rankings as they involve benefits that not every consumer

needs.

2. Features - Features are dimensions of quality, which are usually cited

as a secondary aspect of performance. They are secondary in such a way

that they supplement the basic functioning of a service product. Examples

would include free drinks on a plane, free Wi-Fi service in guest rooms, and
a complimentary hot tea after a full-body massage. Sometimes, identifying

features from the primary performance characteristics is difficult as they

accentuate the actual performance indicators. But what is important to

know is that features involve objective and measurable attributes that can

be clearly observed which sometimes affect their translation in quality

differences.

3. Reliability - It refers to the ability to perform the promised service

product dependably and accurately. This means that being able to provide

service as promised is one of the main considerations in assessing this

dimension. The guest assesses quality by gauging that when he/she is

promised to for his/her pizza to be delivered in 30 minutes, it should be

delivered in less than or exactly 30 minutes. When the guest is promised

for a mouthwatering dining experience, then the ambiance, service, and

food should all be complimentary to deliver the said experience. Reliability

can also mean dependability in handling guests' service problems, in that

every challenge or difficulty that may arise be treated right the first timhe.

4. Conformance - This quality dimension means that a service product's

design and characteristics should meet the standard set. Juran became
one of the pioneers who specialized on this area. Service products to be

accomplished and performed properly need to have specifications. When

new product offerings or service provisions are developed, dimensions

are actually set to become standards for evaluation. These specifications

are treated as the "targets" to be met in a specific service product.

Chapter 1 | Introduction to Quality Service Management in Tourism and Hospitality 7

5. Durability - This dimension is more detectable in goods rather than in

services and it has both technical and economic dimension. Technically,

durability can refer to the amount of use berore a specific product

deteriorates. For example, a commercial oven can be measured by the

number of years it may service a specific kitchen inside a restaurant. .

an espresso machine in the case of coffee shops. In the case of service

aspect, in both personal and company reputation, costs in training and

hiring of qualified and complementary staff may be considered within this

dimensions.

6. Serviceability - The sixth dimension of quality, again more inclined.

toward goods rather than services, is serviceability or the speed, courtesy

competence, and ease of repair. Guests are concerned with the

breakdown of the products that are actually offered to them. But most

importantly, they are concerned with how fast the standard they paid for

can be restored. Connecting to service concepts, this dimension can also

cover how fast a hotel can transfer a guest to another hotel after hel

she was declined because the initial hotel was fully booked, or how the

restaurant management can deal with accidents and give service recovery

at the soonest possible time.

7. Aesthetics - This dimension, along with the last dimension, are highly

subjective. Aesthetics how a service product is perceivedis clearly a

matter of personal judgment. lt reflects how a guest is as an individual.

Even with this fact, there appears to be some patterns in guests' likes and

dislikes when it comes to basis of tastes. Their tastes of course are affected

by a variety of factors, including their demographic and psychographic

characteristics. Because of this, hotels, resorts and other hospitality and

tourism establishments need to conduct market segmentation to develop

their target segments; as what the quote says, "You can't have it all." In the

case of some famous hotel chains, they have segmented their properties

or brands to cater to differing needs of the guests.

8. Perceived Quality- Guests usually do not have a complete guide on

a service product's dimensions; unknowingly, they are indirectly measuring

and this measurement is the only basis for them to compare brands.

A tour experience for example cannot be observed directly; it usually

must be gauged by a number of tangible and intangible aspects of the

tour package. Because of this, images, advertising, and brand names can

be critical. Some brands even ship from outside the country to maintain
service quality and to deliver value as they promised it to their guests.

Corporate reputation is its most prized possession and is the focus of

perceived quality.

Quality Service Management in Tourism and Hospitality 8

Notable People in Service Quality

With the emerging demand for studies in total quality management and services

marketing leading to the study of service quality, the following people were involved

in the evolution:

1. Walter A. Shewhart - was an American physicist, engineer, and

statistician. He is also known as the Father of Statistical Quality Control

and also related to the Shewhart cycle.

2. William Edwards Deming - was an American engineer, statistician,

professor, author, lecturer, and management consultant. He championed

the work of Walter Shewhart, including statistical process control,

operational definitions, and what Deming called the "Shewhart cycle"

which had evolved into Plan-Do-Study-Act (PDSA).

3. Joseph M. Juran - made many contributions to the field of quality

management in his more than 70 active working years. His book,

Quality Control Handbook, is a classic reference for quality engineers. He

revolutionized the Japanese philosophy on quality management and in no

small way worked to help shape Japan's ećonomy into the industrial leader

it is today. Dr. Juran was the first to incorporate the human aspect of

quality management which is referred to as Total Quality Management

(TQM).

4. Philip B. Crosby - was a businessman and author who contributed to

management theory and quality management practices. He initiated the

Zero Defects program at the Martin Company. As the quality control

manager of the Pershing missile program, Crosby was credited with a

twenty-five percent (25%) reduction in the overall rejection rate and a

thirty percent (30%) reduction in scrap costs.

Chapter I | Introduction to Quality Service Management in Tourism and Hospitality 9

5. Armand V. Feigenbaum - was an american quality control expert and businessman. He
devised the concept of Total Quality Control (TOC

which inspired Total Quality Management (TOM).

6. Kaoru Ishikawa - is notable for rejuvenating the norm in the workplace

He always believed that quality should not stoP in reinventing a product

alone. He was one of the few people who belleved that delivering quali

does not stop in purchasing thne produc; It EOes Deyond the transaction

itself. Thus, he highlighted and reinvented the concept of customer service,

giving us the concept of after-sale service and warranty. He was also the

one who coined the "Ishikawa" or "fishbone diagram that highlights the

cause and effect of the activities and processes while in constant search of

quality in operations.

7. Genichi Taguchi - was an engineer and statistician. From the 1950s

onward, he developed a methodology for applying statistics to improve the

quality of manufactured goods. Taguchi methods have been controversial

among some conventional VWestern statisticians, but others have accepted

many of the concepts introduced by him as valid extensions to the body

of knowledge.

In services marketing and management, the following have made significant

contributions noteworthy to be recognized:

1. James H. Donnelly, in his works, highlighted the differences between

the marketing "channels" used for services and those used for physical

goods and implications for marketing strategy.

2. A. "Parsu" Parasuraman, Valarie A. Zeithaml, and Leonard

L. Berry developed their pioneering "gaps model" of service quality

which highlighted the importance of efforts made to assess qualitY in

services.

10 Quality Service Management in Tourism and Hospitality

3. Mary jo Bitner and Bernard H. Booms developed their expanded

marketing mix" for services which took into account the datinctive

characteristics of service identified in the "crawling out" stage: Intanigiblity

inseparability, heterogeneity, and perishability. They added three more Ps

to this original marketing mix to make it more approprlate to services

people. process, and physical evidence.

4. Christopher Lovelock was best known as a picneer in the field of

Services Marketing among other titles, such as author. professor, and

consultant. He was also known for his excellent case studies.

5. Theodore Levitt was an economist and professor at Harvard Business

School. He was also an editor of the Harvand Business Review who was

especially noted for iicreasing the Review's circulation and for popularizing

the term gobalization, In 1983, he proposed a definition for corporate

purpose: Rather than merely rmaking money, it is to create and keep a

customer.

6. Walt Disney and the Disney Cormpany while crafting their concept for

theme parks also pioneered the thought of the service providers not ony
as team players but also as"cast members" just like in a movie or theater.

7. Bruce Laval, an industrial engineer of the Disney Company

conceptualized the term"guestologY and the guest point of view (GPOV)

when viewing service quality in the tourism and hospitality industry.

Discussion Questions

I. What is quality! How does one determine quality?

2. What are goods and services? How are they related to service products?

3. What is IHIP? What are its implications in the delivery of service products?

4. What are the different dimensions of quality for service products?

5. Who are the pioneers of total quality management and service management?

What are their contributions?

Experiential Exercises

Try to dine at a coffee shop and observe the quality of service that the staff

delivers and compare it with that of a nearby carinderia. Establish points to consider

when comparing. What are their similarities?What are their diferences? What could

be done to better their services?

Chapter 1 |Introduction to Quality Service Management in Tourism and Houpitality 11

Introduction

Many establishments and organizațions are doing everything to improve the

level of quality service through the performance of the employees. Others develop

their systems. Some also embed the concept of corporate culture and environment

in their setups. All of these are deemed effective, but sometimes, what we often

forget is that the center of the service concept is our guests. This would be the

focus of our study -the concept of Guestology

Learning Objectives

At the end of this chapter, the students should be able to:

 define what guestology is and what a guestologist is;

 determine the predictors of customer expectation;
 identify the different types of customers; and
 determine who defines value and quality.

12 Quality Service Management in Tourism and Hospitality

Reality Bites
Arlene and Rochelle dined at a restaurant in lloilo which is very famous because
of its excellent local food and incomparable hospitality. Finding the restaurant
was an easy thing to do as it is very near a popular mall and is in proximity to
other areas like hotels, market, and other shopping centers. As they approach the
restaurant, they were immediately welcomed and greeted with warm smiles from
the staff. After asking how many they are in the group, Sheryl, the food attendant,
pulled out each chair and made sure that everyone was comfortably seated. Right
after, she gave the menu to each of the members of the group and gladly
mentioned their specialties of the day. As Arlene and Rochelle, together with the
other members of the group, are already hungry, they immediately ordered food.
In no less than 15 minutes, the food was delivered impeccably. Sheryl rushed
over, making sure that the food was served hot and was served respectively to
the specific members of the group.The group was really amused with the
sumptuous food that was served to them, from the steamed rice to the very
delectable pork and beans dish that was a specialty of the region.As another set
of food was delivered to the table, Sheryl became puzzled. There was no more
space on the table where the dish will be placed and it seemed that the party was
really enjoying their dining experience; Sheryl was hesitant to disturb. So, what
she did was to grab the rice platter and offered it to the person in the group
whose appetite was very good. She emptied the platter to him/her and the
person was really elated as this is not a usual thing for a food attendant to do, but
still she thought of the idea so that she can now place the next dish on the table.

The group ended up very much delighted of the food and the service that Sheryl
and her colleagues provided them. Arlene and Rochelle, now very much grateful,
shared their experience to their friends and relatives, reminding them to always
make a stop in this restaurant whenever they are in the region. Truly, Iloilo at its
best hospitality!

Chapter 2 | Guestology 13

Content

For us to understand what it means to be a guest, we should now understandwhat hospitality is

our guest is an outcome ot the hospitality that we give. Service executed immaculately is
different from hospitality. Service providers today are focusing on making things right rather
than maKing people feel great. Service is the aequence of acts, tasks, and procedures which are
done with consistency. It is the mechanics, the logistics, and how-tos of any process. Service, as
a commodity is expected to be built-in with any product. We expect our meals to be served less
than 12 minutes and our reservations finished immediately. What makes the difference is
hospitality. Hospitality is the positive emotional response elicited from our guests. Service is a
skill, while hospitality is a spirit. Service is what we do fo our guests, while hospitality is what
we do with them. Service is about delivering the needs and wants of our guests, while
hospitality IS about anticipating the needs and wants of our guests, expressed and unexpressed.
service Can be given methodically while hospitality is dynamic. We forget good service; we
remember hospitality. This is the reason that the end user of such process is called a guest,
because we are the honored that they come to us, they come with us.

Guestology

Dickson (2010) defined guestology as the scientific study of the behaviors, needs,

and expectations of people in a service environment, and how to use that knowledge

to optimally manage a service organization. The concept that Bruce Laval, the father

of guestology, introduced has now become a science that deals with understanding

the guest. Guestology entails studying the totality of the guest experience, from their

expectations down to the results and feedback. Klein (2014) mentioned in her study

that guestology involves knowing the guests or clients and their needs and wants,

perceptions, and expectations. Her approach toward guestology entails involving

every person with whom the service provider has in the workplace. As tricky as it is,

identifying the actual needs and wants, perceptions, and expectations will really seal
the deal. Long ago, it seemed that establishments operated under assumptions that

they already had an idea of what these needs and wants were, but these assumptions

might have fallen anywhere from pairing the guests' beliefs or being completely

different. Any establishment would want to realize that what it actually needs is to

find a way to quantify the answer of answering the question, rather than to assume.

14 Quality Service Management in Tourism and Hospitality

Customer
Expectations

For customer satisfaction and customer service to be achieved, a complete

and proper understanding of customer expectations is very important. Unless the

establishment already knowS what the customers want, what they expect, and who

they are, it will be very difficult to match up to the expectations. A guest who will

dine in a restaurant for the first time will have a different expectation than a guest

who has been in the restaurant for a couple of times. The expectation of a frequent

flier for business purposes may also have a different expectation with that ofa family

on a trip to another country. Companies should make it a practice to always inquire

from their customers whether they have met their expectations and put all of this

data into their internal research. It is important that we note of their likes, dislikes,

needs, wants, and profile as these would be the baseline of our entire operations.

The reality right now is that customer expectations are continuously changing, and

unless companies are attuned to them, they will fall short of these expectations,

leading to customer dissatisfaction and attrition.

Chapter 2 Guestology 15
Planning for customer satisfactionis really important in
this case as this will be the platform for the design of the
experience. This is the role of the guestologist. It is very
important that everything is in place when the guest's
senses first come in contact with anything about your
establishment, so the role of the guestologist is very
critical. Much more in the Philippine culture, where there
are different sets of beliefs and ideals, there are also
different sets of expectations. A conference set in Hong
Kong would have all its meals in cocktail style; however, if
you have Filipino guests, this cannot be acceptable
because a typical acceptable meal for them would entail a
proper table setup with plush seating and ambiance. So, different expectations would
determine what kind of planning and design you would want to have for your guests.

16 Quality Service Management in Tourism and Hospitality

Establishments geared toward delivery of services in tourism and hospitality

should always be careful not to over-deliver the said services.As our guest becomes

more exposed to what we offer, he/she becomes more complex and, as such, is

accustomed to rely on our decision-making skills to look what best to give to them.

If a guest were to enter a fast-food restaurant with tables lined with expensive linen,

he/she would be expecting the levels of a casual or fine dining restaurant. Some

would say that this is delighting the guest, but it is also important to think that a

guest may also think that this restaurant is too expensive to dine in. Guests would

want that their expectations to be met, no more, no less.

Food attendants or waiters should literally "wait" for their guest when dining

in a restaurant. Anticipating guest needs is one of the primary responsibilities of

a waiter and that he/she should be good at it. It requires full attention so that

whenever a guest needs something, he/she could immediately handle the concern

and attend to the guest's request. But it does not mean that the waiter should be

in close vicinity of the guest that the guest could actually see and notice that the
waiter is on "tiger look" at him/her.A guest needs ample space so that he/she could

get the privacy that he/she wants. He/she needs a cozy environment that he/she

could enjoy and spend it with people he/she would want to be with. So, imagine if

the waiter exaggeratingly anticipated the needs to the highest level, the guest would

be disappointed and it would ruin the experience. The effort was too much. Thus,

the management team needs to constantly strategize and take into full account the

expectations needed to run this ever-changing and demanding industry.

Depending on the service desired, most of our guests have general similarities

when it comes to their expectations. Their usual expectations would be that the

establishment be clean and the staff be courteous, responsive, reliable, and friendly.

These expectations usually go up if the establishment's level of service also goes up.

Unfortunately, not all high-end or luxury establishments have maintained this kind

Chapter 2| Guestology 17
of service. Ekiz et al. (2012) noted in their article that even in luxury hotels, thor.

are still basic problems that are actually unresolved, and with social media arotnd

guests have easy access to flaunt these problems which sets a springboard for otho

problems. They enumerated a number of problems in their article which ara th

following:

I. Rooms - with concerns extending from small siZed rooms to rooms with no modern
technology

2. Arrogant and/or clueless staff with CommentS ranging trom staff being rude and no answers
to questions posed

3. Failure to respond - mainly covering staff's tailure to respond to guest complaints

4. Poor delivery - covering complaints such as late service or wrong room

service and long process for check-ins/outs

5. Cleanliness with criticisms on soiled linen, carpet stains, and hair trapped in bathtubs

6. Amenities and utilities-with problems associated to the lack or inadequacy of toiletries and
items in minibar

7. Billing with guests grumbling about having them charged extra for

parking, Internet, gym, and the like

Issues like these are typically simple to resolve but management should allot

time and enforce policies in monitoring these problems and ensure that guest

service is really a top priority.

18 Quality Service Management in Tourism and Hospitality

Customers/Guests/Clients

Customers, otherwise known as guests and clients, in the hospitality and tourism

business play a significant role in the operations. To understand their behavior and

to strategize the efforts of the company, it is important to identify and match each

need to each type of customer.

The Corporate Finance Institute (2015) has identified five basic types of

customers that a hospitality and tourism enterprise should be aware of. They are

our loyal customers, impulse tustomers, discount customers, need-based customers,

and wandering customers.

The loyal customers are actually the most important segment to please and

should be one of the priorities in mind of a specific company. Usually, this type of

customers represents no more than twenty percent (20%) of the customer base

but actually drives majority of the sales revenues. Because of this, it is important to

note that a loyal customer values a product heavily. Furthermore, they are more

likely to be the bearers of positive word of mouth (WOM) and likely to recommend

the company's service products. Therefore, during the planning phase, evén in the

decision-making process, these customers must be given heavy emphasis.

Impulse customers, meanwhile, are the best type to do suggestive selling.They are

also second to loyal customers when it comes to attractiveness in the market. As the

name implies, these customers do not have a shopping list in mind and do shopping
instinctively. Moreover, this kind of customers are receptive to recommendations on

products. Similar to loyal customers, it is also important to involve these customers

because what they say also matters in generating more revenue.

Another type of customer which affects a company's inventory turnover is

the discount customer. They are contributory to a company's cash flow because the

products which are seldom purchased at full price are actually availed by these

customers as best markdowns.

Chapter 2 | Guestology 19
The fourth type of customer is driven by a specific need. These customers are

called the need-based customers. They buy for a specific reason and occasion, and

because of this, it may be difficult to convince them to upsell. It is also important

to note that these customers are adept in avoiding any attempt for upselling and

that they will immediately leave after they are done getting what they need.These

customers are also easily drawn to other businesses, much more if the price is

cheaper and the alternative product can also serve its purpose. It is therefore

important to carefully initiate personal interaction with this segment in order to

develop a lasting relationship with them. lt has also been observed that thereis

a possibility to convert this segment to loyal customer. If a company can prove

that the service that it delivers could pose as a "need" for this segment, along with

proper positive personal interactions, it is expected that this segment will be loyal

in the long run.

The last type of customer is the wandering cústomers. I hese customers generate

the largest amount of traffic as they have no specific need or desire in mind but

yield the smallest percentage in sales revenue. This type of customers enjoys social

interaction while shopping.Thus, spending a lot of time trying to please this segment

can draw away the other segnments. Although, generating a small percentage to

revenue, it is important to note that this segment still provides. insightful information

about the products and can therefore contribute to the feedback mechanism of the
company.

20 Quality Service Management in Tourism and Hospitality

ldentifying these segments is significant as they generate revenue for the

enterprise. Alongside these segments drag another type of customer that is usually

forgotten or left out. It is called the internal customers. As a hospitality entity, it is

important to note that aside from external customers, it also serves its internal

customers (people which depend and "serve" each other). As they are the ones

who are actually doing the service process, they understand the feeling of being

served together with the toil of hard work that goes with it. Thus, the service given

to an external customer should also be the same with an internal customer. The

expectations, which are to be satisfied, for an external customer should be the same

with that of an internal customer.

Quality and Value

In the previous chapter, quality was defined individually. Here, we will view

quality as tied together to the concept of value and how it affects the guest-service
staff relationship. The measure of quality for the guests is actually based on the

difference between their expectation and their experience (or as netizens quote it

in present memes, "reality"). By reality, it means what the guests have experienced in

actual sense. For example, the quality that the guest experienced matches what hel

she expected, then we can say that he/she has experienced typical or normal quality-

positive as he/she was satisfied with the service provided. This is experienced when

a person is craving for a chicken meal, for example, in a fast-food outlet, and he/she

feels that what he/she paid is fit for the service that he/she received. But if a person

is not satisfied with either the service provided or the product given, then we can

say that he/she experienced a negative quality. When evaluating quality, one needs

to realize that quality can be high or low regardless of how it costs the company. A

porridge house in Manila that serves unlimited porridge to its customers, which are

Chapter 2 | Guestology 21
students, delivers high quality service as perceived by the students who do not pay

more than P50.00. While there are also first class restaurants that buy fresh and

expensive ingredients just to ensure the high quality of service they consistenly give.

Value, in relation to quality, would entail the study of costs. To measure the value

derived from a guest experience, we need to match if the costs incurred total or

equal to the quality of the experience. For example, a guest would be reserving for a

spa session and would be allotting time and paying for the service. This reservation

of time, effort, and money should equal the quality of the service provided so as to

say that the transaction has high value. Therefore, the time, effort, and money should

be studied very closely by the planners of the service experience so as to have a

meaningful guest experience.

The Customer and the Definition of Value

Since the tourism and hospitality industry is a guest-centered or customer

centered industry, ultimately, it is the customer who defines value. For example, a

sanitation inspector can say if a resort establishment violates or adheres to certain

laws, but this will only be an add-on toward achieving value. Why? It is because the

guest does not see it. For the guest, the quote,"To see is to believe," works so much.

The output will be the ultimate measure whether a service design has been crafted

excellently. If the guests are dissatisfied or not happy with the outcome, it does no

matter if they have followed correctly the process. This is evident if, for examplea

guest would want to have a manicure or pedicure, and if a smudge occurred wi hile

applying nail polish, the ultimate measure of the guest is your final output, and

she would be dissatisfied; or in a flight, for example, the airline company promise

seamless transaction, but there existed long queues, expect a lot of complaints Tro

the guests.

22 Quality Service Management in Tourism and Hospitality

Discussion Questions

1. What is guestology? Why is it important?

2. What is a guestologist? What does it take to be one?

3. Why are customer expectations important?

4. Who defines quality and value?

5. What is value? What is quality!

Experiential ExercisesS

On your stroll to a nearby mall, check out how customers appraise the quality

and value of a service that they would want to try.Also, check out how the service

providers ensure that their guests are taken care of.

Chapter 2| Guestology 23