HRT 476 CH 4 Customer Satisfaction

Guest Satisfaction

Various Degrees of Satisfaction Performance falls short - Dissatisfied (Poor service) Performance matches expectations - Satisfied (Quality service) Performance exceeds expectations - Highly satisfied (Excellent service) Marketers must be careful to set right level of expectations: If too LOW: Fails to attract enough customer attention If too HIGH: Disappointed when their expectations are not met Hospitality companies raising expectations and delivering performance to match - Guest satisfaction is the goal and major factor in success, Less price sensitive, Remain guests for a longer period, Repeat visitation, Talk favorably to others

Club Hotel by DoubleTree/Hilton

- Value conscious travelers who need a comfortable guestroom and a core set of services and amenities - Features the Club Room - a uniquely designed lobby and public area setting that includes equal parts of an office, a den and a café. Established "CARE Committee" - Caring, Attentive, Responsive, & Empowered - To ensure employee morale - To ensure excellent guest service Based on "Employee oriented & friendly philosophy" CONCEPT: - Involve everyone on all levels of the hotel operation - Employees have greater pride - Management is not only listening to them, but also willing to implement their valid suggestions and ideas Approach to Implementation: - Every department is to be represented on the committee - The Committee meets once a month for 30-60 minutes Care Committee has two divisions - Sub-committee for guest relations - Sub-committee for employee relations: Audit service standards, operates employee of the month (all employees vote), recognized employees, additional cash gifted to EOTM, monitors employee of the year, quarterly employee parties Outcomes Improved employee morale (satisfaction) Employees are empowered to weigh the degree of the guest's concern Make decision on the spot to compensate the guest Do what it takes to satisfy the guest Substantial drop of employee turnover Increased guest satisfaction

Tracking Guest Satisfaction

Complaint & Suggestion Systems - Comment cards, interviews, etc - Hotels/Restaurants should make it easy for guests to suggest or complain - Hotels can solve problems easier, new ideas for improved service Guest satisfaction survey - Questionnaires/phone calls to find out how guests feel

Customer Value & Satisfaction

Customers choose hotel/restaurant that provide most VALUE 1) service quality, 2) product quality, and 3) price - the consumer's assessment of the establishments overall capacity to satisfy his/her needs EXPECTATIONS -> ACTUAL VALUE -> SATISFACTION?

Internal Customer Satisfaction

Must satisfy employees to satisfy customers - Satisfied/well motivated service providers can deliver quality service. EMPLOYEE TURNOVER - turnover costly to the property - $1,500 to $50,000 per employee - Reduction in turnover = saved expenses Separation costs: maintaining files, conducting exit interviews, separation pay, unemployment taxes, termination of benefits, etc. Replacement costs: searches, interviews, background checks, new uniform purchases, waste due to productivity loss, etc. Training costs: orientation, printed materials, trainer wages, reduced productivity of trainee, etc. *Low turnover has been related to high Customer satisfaction and Customer returns* STAFF MOTIVATION Training: - One of the most effective ways to motivate employees - Clear message that the management cares enough Cross-Training - Opportunity to acquire additional work skills - Employees - Increase the flexibility in scheduling - Managers Recognition - Guest, managerial, and peer recognition - "Employee-of-the month", certificate, plaque etc. Communication - Keeping employees informed about hotel operations (newsletter, bulletin) - Greater sense of belonging & value Incentive Program - Acknowledge (reward) staff members who excel in their work Performance Appraisal - Identifies strengths and weaknesses & provides actions for improvement Internal Recruiting - Filling the job opening within the organization - A job opening can result in an employee's promotion =>Boost employee morale Compensation & Benefits - It must be externally competitive - It must be internally equitable or fair - Employees need to believe they are being treated fairly in comparison with other employees (pay scale and pay range)

Customer Satisfaction

Needs fulfillment - When customer's needs are met/exceeded they satisfied - Expectation/performance interactions - Evaluation of the purchase and consumption experience

JD Power and Associates 2017 North America Hotel Guest Satisfaction

Sample size: 63,000 hotel guests who stayed in a hotel in north America between June 2016 and May 2017 - Most well known hotel customer satisfaction index Seven key measures: Reservations Check-in/Check-out Guest Room Food & Beverage Hotel Services Hotel Facilities Cost & Fees

Customer Satisfaction VS Service Quality

Terms can be used interchangeably DIFFERENCE: Customer Satisfaction: Broader concept/overall feeling, more inclusive, influenced by perceptions, 1) service quality, 2) product quality, and 3) price, Influenced by uncontrollable situational factors (weather conditions) and personal factors (emotional state, health, family etc) Service Quality: (more specific) focus specifically on dimensions of service (Five Dimensions of SQ) (Reliability, Responsiveness, Assurance, Empathy, Tangibles) Great Service Quality will result in customer satisfaction (or when customers receive the best customer value)