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HGE401 Hotels and the Guest Experience: Assessment 1

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Added on 2024/07/01

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This report explores the concept of service and guest experience in the hotel industry, focusing on the Palazzo Versace Australia as a case study. It examines the historical evolution of guest experience, the importance of employee empowerment in service delivery, and the potential consequences of neglecting service and employee focus. The report concludes by highlighting the significance of delivering positive guest experiences in a hotel context.

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HGE401 Hotels and the Guest Experience
Assessment 1
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Table of Contents
Introduction......................................................................................................................................3
A definition of service and guest experience...............................................................................4
A historical overview of guest experience and how it has evolved.............................................6
The importance of employees and empowerment in service.......................................................8
What might be the consequences for a hotel when they do not focus on service and employees
who deliver this service?........................................................................................................... 10
The importance of delivering positive guest experiences in a hotel context.............................12
Conclusion..................................................................................................................................... 13
References......................................................................................................................................14
2

Introduction
The hotel industry is mainly known for its hospitality and effective services as per the
expectation of the guests on which this assignment will focus more. Evolution of hospitality has
enhanced time by time as per the market analysis and needs of the clients. Training to employees
and the development of better policies in the hotels has influenced the customer satisfaction
which will be analysed in this assignment. This report is based on the Australian hotel industry
and mainly focus on the Palazzo Versace Australia which is a luxury 5 stars rating hotel situated
in Australia. This hotel has 200 rooms, bars, restaurants, ballroom and 72 private apartments
which are the key features of its. This report will define the service and guest experience in the
starting and after this, it will define the evolution of guest experience in the Australian hotel
industry context. It will also explain the importance of the employees and their empowerment in
the hotel. Consequences related to inappropriate services for the hotel and employee as well will
be explained in this report. At last this report will define the significance of positive guest
experience for the organisation.
3

A definition of service and guest experience
According to Mok, et. al. (2013) service refers to the intangible activities which are an integral
part of a country’s economy but are not related to the manufacturing or production process,
services are such as transportation, tourism, hospitality etc. Possession of the service cannot be
transferred because it is the skill of the person providing it. Service is consumed as soon as it is
provided.
Service is the only key to succeed and build goodwill in the hospitality industry. The Palazzo
Versace in Australia defines their service as an inseparable part of the hotel ecosystem. Service
for Palazzo Versace does not only mean to satisfy the customers but it also includes the non-
customer facing and back of the house services that enhance the customer experience and the
way they enjoy being at the hotel. Service for the Palazzo Versace refers to the heart and soul of
the hotel and believes that service is the sign of love kindness for their customers. In the hotel,
services are the key point to evaluate the overall performance of the staff and it’s the opportunity
for them to know whether they are meeting the standards of the hotel or not. The staffs of the
hotel try their best to provide the customers with an incredible experience at their stay. Good
customer service provides the hoteliers to get and experience more than their expectations.
According to Walls, (2013) customer Experience is defined as the level of satisfaction of the
customers which is derived from the interaction between the customer and the organisation
providing the service or the product. Customer experience involves emotional, physical, rational
and spiritual aspects. Everything starting with the purchase of any service or product to the after
effects of the purchase constitutes the customer experience.
The Palazzo Versace Australia explains the customer experience as the final product of the hotel.
The hotel believes in delivering services according to the needs and the expectations of the
hoteliers. The hotel always tries to build a system where they can provide the customers with the
world-class service during their stay. In today’s dynamic world where every single minute there
is some change taking place, the perception of the customers is also changing as to what is an
excellent experience and the Palazzo Versace maintains their services in such a way that
whatever the customer's perception is, they experience the best. To do so the hotel tries to
4

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understand their customers and their expectation from the hospitality. Customer experience for
the Palazzo Versace is the ultimate way to have a long run success.
The Palazzo Versace Australia clarifies the relationship between the service and the customer
experience as service is the raw material that they provide to their customers and the experience
is the final product that the customers get. Service and customer experience go hand in hand.
Better the services, better the customer experience. The hotel tries to provide a marvellous
customer experience by tailoring their services according to the needs and expectations of the
customers. Palazzo Versace takes into account the customer experience to monitor and evaluate
the way the staffs perform. Service and customer experience have one thing in common that they
both decide the future of the business and the Palazzo Versace takes this theory very seriously
that the type of service provided to the customers and the experience the customers get out of the
services will only help the business to succeed and have a good brand name in the market. The
customers love to visit a hotel where they feel at home and experiencing high-class services to
their ultimate satisfaction. The Palazzo Versace is the best example of hospitality where the
customers meet and surpass their expectations (Xiang, et. al. 2015).
5

A historical overview of guest experience and how it has evolved
Guest Experience refers to the satisfaction of the guests or a hotelier staying in the hotel and it is
the feeling of the customers that they derive after consuming the services provided by the hotel.
Guest Experience is the best marketing strategy for any hotel. In the Australian hospitality
industry there have been rapid developments over the past decade’s years and still, the
innovations are taking place to enhance the overall experience of the guests. The history of guest
experience in Australian hotels has been a great story. There are a total of 4300 hotels, motels
and resorts with more than 225000 rooms. The hotels in Australia or the hospitality industry in
Australia provide their guests with an absurd experience and make their stay at the hotel worth
doing. Changes in the society and the perception of the guests have led to many inventions and
new changes that are meant to meet the customer’s fast-changing expectations. The history of
Australian hospitality says that when first the hotel industry started taking over the market it was
only the basic services provided to the customers as rooms and food with some basic amenities
that were useful for the guests. Australian hotels were known for the kind of rooms and dining
they provide to the customers (Getz and Page, 2016).
The history of the hospitality sector in Australia defines the way they are providing the traveller's
shelter from a very ancient time. Firstly there were sleeping facilities and relaxation facilities for
the hoteliers. Then the hotels improved the services they provided by adding radio, televisions,
phone etc. in the rooms. All the changes were made taking into consideration the expectations of
the customers. As time rolled down the hotel industry began to grow like wildfire and the hotels
opened chains in different areas to expand the business and also provide more and more facilities
to the customers. The trends that have been seen in the hospitality industry of Australia are:
Introduction of technology: Today everybody is self-sufficient and everybody is comfortable
with doing everything on phones or laptops with soft ware’s and applications. The hotel industry
in Australia has ensured every time that their offerings are up to date and the customers are at
ease of booking their hotels or asking for any type of facility that they want.
International Visitors: The visitors from abroad have a big credit in the evolution of the
Australian hospitality industry .the industry has grown by providing tailored experiences to the
visitors of different countries.
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Emphasis on health and well-being: Every customer or guest want that with great rooms and
food they must be provided with a healthy environment and their health must also be taken care
of. For this, the industry has introduced the concept of pools, spas, gyms, yoga spaces, air
purification, energising lighting and vita infused shower water to provide the guests with a
staying experience they have not experienced before.
Sustainability: The environment is the place where everything operates. Any industry cannot
work in isolation so it is very important to add sustainability rules in the industry and this has
helped the Australian hospitality industry to grow and prosper (Penner, et. al. 2013).
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The importance of employees and empowerment in service
Employees play a significant role in providing services to the guests in the hotel. Most of the
services are provided by the employees in the organisation so it is essential for the hotel
management to provide a better training and development program for employee’s betterment.
Employees have a huge significance in terms of appropriate services providing to the targeted
customers of the hotel. Palazzo Versace Australia is five stars rating hotel located in the
Queensland so the significance of the employees has increased in terms of service providing to
the customers. Each and every guest of the organisation has an expectation of luxury treatment
from the hotel staff so in this case significance of the employee has increased in the organisation.
Some of the significance of the employees in the hotels is given below in the context of the
Palazzo Versace Australia hotel:
Working as a medium- Employees of the hotel works as a medium to identify the expectation
and needs in services of the clients. It is more essential to the hotel to analyse the needs and
expectations of the customers which can help to provide better services as per their requirement.
Inappropriate identification of the expectation, requirements and needs of the guests declines the
effectiveness of the hotel in providing appropriate services to the customers. It is the most
significant thing for the organisation to have effective mediums which helps to communicate
with the customers to work according to their expectations either this it will decline the
effectiveness of the company to attain their targets which are related to the services of the
customers (Kong, et. al. 2012).
Outcomes for guest – It is essential for the Palazzo Versace Australia hotel to provide
appropriate outcomes and treatment to its guests which can help the organisation to manage their
brand image in the target market. As it is five stars rating hotel of the Queensland so it is
essential to provide appropriate treatment as per the brand image of the organisation. it is the
most significant thing for the organisation to accomplish the requirements and expectations of
the customers which helps to retain customers and maintain a positive image in the targeted
market. Lack of appropriate services forms the employee'seffects negatively on the revenues and
retention of the customers in the organisation which most significant thing to have in the
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organisation. it is essential for the company to enhance customer retention and keep the positive
relations with the customers by providing appropriate services to the customers (Karatepe, 2013).
Empowerment in the service related to the enhancement of the action or work for someone. It is
essential for the Palazzo Versace Australia to empower the service factor in the organisation
which can help to develop a better brand image and revenues. The significance of the
empowerment is given below in the service:
Maintain and keep improve brand image – It is essential for an organisation to work for the
betterment of its image in its targeted market. Most of the companies which are working in the
service industry are always aimed to provide better services to the customers as per their
demands and needs which can help to develop the better brand image. Empowerment of service
factor in the Palazzo Versace Australia supports to provide a better treatment to the guest in the
hotel. The accomplishmentof the guest expectation surely enhances by this factor in the
organisation which is essential (Park and Gursoy, 2012).
Customer retention – It is essential for an organisation to enhance the customer retention which
helps in sustaining sales and revenues standards in the organisation. It is analysed that most of
the organisation which are having high customer retention leads on the market. Empowerment of
the services supports to retain customers and to provide better treatment in each visit to the hotel
which is significant for the Palazzo Versace Australia. Better treatment beyond expectation
supports to retain customers in the organisation which is the effect of the empowermentof
service.
Enhancement in the revenues – Empowerment of services has a huge significance in the
organisation in terms of increase in the revenues. The Palazzo Versace Australia hotel is working
in the service sector and it is a profit oriented organisation. It is essential for the organisation to
attain its financial objectives in each financial year to be in the profitable situation. Enhancement
of the revenues is positively affected by the empowerment of the service factor in the hotel. It is
essential for the organisation to provide a better treatment to the customers by empowering
services which can help to attain financial objectives efficiently (De Zilwa and Wong, 2012).
9

What might be the consequences for a hotel when they do not focus on service and
employees who deliver this service?
It is the most significant thing for the organisation to provide appropriate services to the
customers as per the requirement either it may effect on the organisation. Some of the major
consequences are given below in the context of the hotel if it will not provide appropriate
services to its targeted customers:
The decline in goodwill: It is essential for the organisation to have managed the goodwill in the
targeted market which helps to influence customer during the purchase decision making. The
Palazzo Versace Australia hotel is considered as one of the luxury hotels located in the
Queensland Australia so it is essential for the organisation to work as per the expectations of the
company. The hotel hasenough goodwill in the market which helps to retain its customers but if
service will not be provided according to standards it will affect negatively on the organisational
goodwill which will be not acceptable in any terms. Delays in room service and ineffective
services by waiters in the restaurant area will affect negatively on the goodwill on the
organisation (Kim, et. al. 2015).
The decline in customer satisfaction: It is another most significant thing for the organisation to
maintain which helps to retain customers and maintain the sales of the organisation. Customer
satisfaction is related to the services, food, accommodation, cleaning etc. factors which are
provided by the hotel. Inappropriate treatment to the customers will affect negatively on the
customer satisfaction. It is essential to maintain the customer satisfaction level in the
organisation which can help to retain customers. But when the hotelwill decline its focus on the
service to profits generation or cost-cutting it will decline the customer satisfaction as well.
Customer will not feel satisfied withthe services of the organisation which will compel to look
forward to other options to take better services.
Lower customer rating: Hotel industry has a huge significance of the customer ratings. It helps
customers to make an effective decision regarding stay and take services of accommodation and
food. Most of the hotel bookings are done by mobile application and other online websites in
which customer rating plays a significant role to determine or purchase services. customerswhich
are not satisfied by the hotel due to lack of focus of the hotel management on the services will
10

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give fewer ratings to the hotel and negative comments as well on the hotel booking application
and websites as well which may effect on the hotel bookings as well.
The downfall in the annual revenues and profits: it is essential for the organisation to
maintain the annual profits and revenues which can help the organisation to accomplish their
financial objective. Less focus on the services will indirectly affect the annual revenues and
profits of the organisation. It is essential for the organisation to manage the profits and revenues
according to the determined objectives it will be affected negatively due to the lackof appropriate
services to customers in the organisation (Choi and Choi, 2014).
Lack of focus on the services may also have some consequences for the employees as well which
are given below:
Blacklisted: Employees which are not providing appropriate services as per the expectation of
the customers and hotel management can be blacklisted from the hotel management. A mail can
be dropped for that particular employee from the HR manager to warn him to focus on the
service providing to the customers in the appropriate manner. It helps to warn the employee
about the regular mistakes in terms of service provided which can help to make some
improvement by defining his mistakes.
Termination: It is the final consequence attached to the lack of focus on the service in the hotel
for the employee. An employee which has been already warned from the management due to
lack of focus on the service in the organisation can be terminated by the management for the
cause of lack of focus on the service in his job. The Palazzo Versace Australia hotel is working
in the hospitality industry and it is essential for the organisation to have the proper focus on the
customers’ needs. It is always expected by the hotel management that employee should be
attentive to the customers to fulfil their expectations and needs. If an employee is found that is
not working as per the expectation of the hotel management will be terminated (Huat, et. al.
2012).
11

The importance of delivering positive guest experiences in a hotel context
It is essential for the Palazzo Versace Australia hotel to provide positive customers experience by
providing appropriate services as per the expectations of the customers. Significant of the
delivery of positive guest experience is given below:
Lead on customers and market: Positive guest experience helps to make a lead on the
customers and market. It is essential to attract new clients by providing satisfactory services to
the guests in the organisation.
Brand image and goodwill: It is essential for the organisation to manage an effective and
positive image in the target market by providing a positive guest experience.
Higher customer ratings: Positive guest experience will affect positively on the customer rating
on the hotel booking application and websites which helps to make a lead on those guest which
are looking forward a hotel to stay in the Queensland Australia (Mauri andMinazzi, 2013).
12

Conclusion
It has been analysed and concluded by this report that the enhancement of the service factor is a
most significant thing in the hotel. It is analysed that most of the hotels are managing their
annual revenues and performance on the basis of their potential to provide effective services.
Each and every hotel has focused on the particular market and it is essential fort’s to provide
better services as per the market expectations. Hospitality organisations which are working in the
premium market have to be focused on the higher quality of services. Guest experience is
evolved by regular analysis of the customers and market expectations which is analysed in this
report.
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References
Choi, B., & Choi, B. J. (2014). The effects of perceived service recovery justice on customer
affection, loyalty, and word-of-mouth. European Journal of Marketing, 48(1/2), 108-131.
De Zilwa, C., & Wong, W. (2012). Front office employee psychological empowerment and
service quality in Singapore luxury hotel industry: An exploratory study. Journal of
Applied Business and Management Studies, 3(1), 1-11.
Getz, D., & Page, S. (2016). Event studies: Theory, research and policy for planned events.
Routledge.
Huat, T. C., Chin, T. A., Rasli, A., Yusoff, R. M., & Tat, H. H. (2012). THE EFFECTS OF
SERVICE QUALITY, CUSTOMER SATISFACTION ON RE-PATRONAGE
INTENTIONS OF AHOTEL'S EXISTING CUSTOMERS. International Journal of
Management and Administrative Sciences, 1(8), 1.
Karatepe, O. M. (2013). High-performance work practices and hotel employee performance:
The mediation of work engagement. International Journal of Hospitality
Management, 32, 132-140.
Kim, W. G., Lim, H., &Brymer, R. A. (2015). The effectiveness of managing social media
on hotel performance. International Journal of Hospitality Management, 44, 165-171.
Kong, H., Cheung, C., & Song, H. (2012). From hotel career management to employees’
career satisfaction: The mediating effect of career competency. International Journal of
Hospitality Management, 31(1), 76-85.
Mauri, A. G., &Minazzi, R. (2013). Web reviews influence on expectations and purchasing
intentions of hotel potential customers. International Journal of Hospitality
Management, 34, 99-107.
Mok, C., Sparks, B., &Kadampully, J. (2013). Service quality management in hospitality,
tourism, and leisure. Routledge.
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Park, J., &Gursoy, D. (2012). Generation effects on work engagement among US hotel
employees. International Journal of Hospitality Management, 31(4), 1195-1202.
Penner, R. H., Adams, L., &Rutes, W. (2013). Hotel design, planning and development.
Routledge.
Walls, A. R. (2013). A cross-sectional examination of hotel consumer experience and relative
effects on consumer values. International Journal of Hospitality Management, 32, 179-
192.
Xiang, Z., Schwartz, Z., GerdesJr, J. H., &Uysal, M. (2015). What can big data and text
analytics tell us about hotel guest experience and satisfaction?. International Journal of
Hospitality Management, 44, 120-130.
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