Service Blueprint Analysis for Luxury Hotels

This assignment delves into the crucial topic of service quality in luxury hotels. It begins by examining customer perceptions of service quality using the SERVQUAL model, a widely recognized framework for assessing customer expectations versus perceived service delivery. Furthermore, the assignment utilizes service blueprints to map out and analyze the intricate processes involved in delivering exceptional service experiences within these establishments. It investigates key factors influencing service quality, such as employee-customer orientation, power distance, and management innovation, and explores their impact on customer satisfaction and revisit intentions.

Running head: ASSESSMENT 2
Services Marketing
Name of the Student:
Name of the University:
Author’s Note:

1ASSESSMENT 2
Executive Summary
A report has been developed for iStay Precinct hotel comprising of its service blueprint and
service strategies. From the backstage and frontstage functions, it has been found that the hotel is
having great integration but later, it has been found that service standards are not satisfactory.
The hotel has tried to ensure best quality services using premium pricing but does not have range
of services for middle-income customers, indicating service gap. On the other hand, it has been
found that the hotel is having great entertainment and luxurious services but the room service
feature is extremely lagging as employees are not able to provide prompt services. Overall the
hotel is having more number of satisfactory determinants and service gaps are relatively low or
less impactful.

2ASSESSMENT 2
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Service Organization Blueprint.................................................................................................4
3.0 Service Organization’s Front Stage and Back Stage Functions................................................5
3.1 Front Stage Function..............................................................................................................5
3.2 Back Stage Function..............................................................................................................5
4.0 Moments of Truth......................................................................................................................6
4.1 First moment of truth (FMOT)...............................................................................................6
4.2 Second moment of truth (SMOT)..........................................................................................6
4.3 Third moment of truth (TMOT).............................................................................................6
4.4 Zero Moment of truth (ZMOT)..............................................................................................6
5.0 Determinants of Satisfaction/Dissatisfaction.............................................................................7
5.1 Satisfaction.............................................................................................................................7
5.1.1 Variety of Features..........................................................................................................7
5.1.2 Location and Surroundings.............................................................................................7
5.1.3 Room Facilities................................................................................................................7
5.2 Dissatisfaction........................................................................................................................7
5.2.1 Room Service..................................................................................................................7
5.2.2 Premium Pricing..............................................................................................................7
5.3 Service Quality Measurement................................................................................................8
5.3.1 Service Gaps using Gap Model.......................................................................................8
6.0 Service-recovery Strategy Plan..................................................................................................9
6.1 Crisis Management and Service Recovery............................................................................9
6.2 Discount and Promotions.....................................................................................................10
6.3 Board Level Meeting...........................................................................................................10
7.0 Conclusion...............................................................................................................................10
Reference List................................................................................................................................11

3ASSESSMENT 2
1.0 Introduction
Service organizations typically segregate its operations into frontstage and backstage.
Frontstage functions are those which are directly observable and are into the point of notice,
whereas backstage operations are those which are not directly noticeable or observed (Polaine,
Løvlie and Reason 2013). This report will present the service blueprint of iStay Precinct Hotel of
Adelaide, Australia.
iStay Precinct is a luxurious hotel in South Australia, including facilities such as
swimming pool, Wi-Fi, Jacuzzi, Parking and exclusive hotel services. Most of the reservations
are done through online platform and managed through the backstage employees. The hotel is
just ten minutes from Adelaide Airport and is covered with lush green parklands
(Minorhotels.com. 2017).
Figure 1: iStay Precinct, Adelaide
(Source: Minorhotels.com. 2017)
The frontstage and backstage functions of the hotel including the detailed service
blueprint will be presented in this report. This will also include “moments of truth” for this
service organization; determinants of satisfaction/dissatisfaction and service quality
measurement. Finally, service recovery strategy plan will be discussed for critical incidents.

4ASSESSMENT 2
2.0 Service Organization Blueprint
Figure 2: Service Blueprint
(Source: Created by Author)
Line of Internal Interaction
Line of Visibility
Line of Interaction
Support
Processe
s
Backsta
ge
Actions
Onstag
e
Actions
Onstage
Technolo
gy
TV/
Video
system
Prepare
food
Registr
ation
System
Registr
ation
System
Registr
ation
System
Take
food
order
Take
bags to
room
Deliver
food
Process
Check
Out
Checkout and
Departure
StayArrivalResearch
and
booking
Custome
r Phases
Custome
r Actions
Physical
Evidenc
e
Hotel
Lobby
Exterior
Parking
TV and
Remote
Delivery
Tray,
Food
MenuRoom,
Ameni
ties
TV and
Remote
Cart for
Bags
Elevat
ors
Registr
ation
Desk
Cart
for
Bags
Hotel
Exterior
Parking
Hotel
Website
LeaveCheck
out
Receive
food
Call
room
service
Sleep
Shower
Browse
and
select
movie
Receive
Bags
Check
out via
TV menu
Provide
Movie
option
and start
movie
Deliver
bags
Process
registra
tion
Greet
and
take
bags
Record
customer
informatio
n and
reserve
room
Go to
room
Check-inGive bag
to Bell-
person
Arrive
at
hotel
Make
registrati
on on
website

5ASSESSMENT 2
3.0 Service Organization’s Front Stage and Back Stage Functions
3.1 Front Stage Function
The frontstage function of the organization is comprised of onstage actions and onstage
technology. The onstage actions are directly linked with customer actions and those are directly
visible by the guests (Hossain Enam and Farhana 2017). Each of the customer actions are linked
with operations those indicate service quality as perceived by the guests.
Onstage actions are comprised of:
 Greeting and taking bags (linked with bell-person)
 Process registration (linked with backstage registration system and customer desk)
 Deliver Bags (linked with bell-person and service boys)
 Deliver Food (linked with backstage support process and call room service)
 Process Checkout (linked with checkout via TV menu and backstage registration)
Onstage technology is comprised of:
 Customer registration: Retrieving registered customer information via data from online
process and handover of room keys. This includes support process from backstage for
data retrieval.
 Entertainment System: Once the guests get into room by delivering bags, service
employees set the movie options in TV and handover remote. This includes support
process from backstage.
 Process Checkout: Final stage where guests leave out room and data regarding property
handover is managed and checked by service employees with real-time validation.
The line of interaction as depicted in figure 2 indicates the frontstage interaction between
guests and service employee. Zhan (2015) pointed out that more than 70% of the service quality
depends on this interaction and communication, which finally helps in customer retention. This
line indicates perceived value determination where observation triggers satisfaction.
3.2 Back Stage Function
According to Song and Sakao (2017), backstage functions of an organization involves the
actions that support frontstage operations. Coordination and involvement of backstage
employees helps in improving the frontstage functions. On the other hand, Ateetanan et al.
(2017) pointed out that most of the common functions in backstage include online registration,
client data handling, registration confirmation, entertainment and comfort system support and
food and beverage support. The backstage operation of the service organization is divided into
backstage action and support process.
Backstage actions are comprised of:
 Managing luggage: Once reservation is confirmed, service employees carry out the
luggage and belongings of guests directly to the room. This delivery process is not
observed by the guests as it is an internal backstage function (Kazemzadeh et al. 2015).
 Managing food: Room service function is directly linked with backstage since the guests
order via telephone. This does not involve any front stage function. Guests mostly order

6ASSESSMENT 2
food via telephone call and those are prepared by chefs. Also, this process is linked with
internal account department for billing.
Backstage Support Process is comprised of:
 Registration system: The operation involves customer registration and feeding data to
onstage reception employees through internal technology (Li 2015). The entire
registration process through online platform is managed here. Handling website and
client data encryption is linked with onstage technology so that data duplication is
reduced. This process is completely managed internally and is not observed by the guests.
Confirmation of registration includes payment accomplishment, billing and luxury
customization including peripheral service confirmation.
 Entertainment System: Once guests get into room, entertainment system is actualized
by backstage department, which includes Wi-Fi, gaming, audio/video support and
television. This process is partially supported by onstage technology.
 Food Preparation: Hotel room service and requests for food is handled completely
backstage employees. Order confirmation and food preparation is done in backstage,
whereas the front stage employees deliver the food accomplishing room service.
The line of visibility as depicted in figure 2 indicates the neatness and powerful
integration process of the organization. The hotel has tried to limit the operational visibility so
that guests get perceive the classic experience as of never before.
4.0 Moments of Truth
The service organization has able to actualize all the four types of moment of truth.
4.1 First moment of truth (FMOT)
According to Yang et al. (2016), when a guest experiences service in real-life, it creates a
lasting impression. For iStay Precinct, it can be said that the organization is having exclusive
services such as swimming pool, customizable room luxury, free parking, diverse food menu,
fluent registration system and wide entertainment functionality. This has enhanced the real-life
brand value of the hotel.
4.2 Second moment of truth (SMOT)
According to Căruntu and Diţoiu (2014), service quality is the next impression after
product confrontation in the service industry. For the service hotel, quality is generated mostly
from luxurious services and entertainment range. This is because based on customer preference
room luxury is customized, which eventually increases the service quality.
4.3 Third moment of truth (TMOT)
On the words of Sengupta and S Pillai (2017), customer feedback and reviews in social
media websites ensure brand advocacy. For iStay Precinct, the Facebook rating is 3.7 with only
345 followers. Also, there are only 90 reviews, which indicates poor word-of-mouth.
4.4 Zero Moment of truth (ZMOT)
Bilgihan and Nejad (2015) pointed out that customers mostly ensure a secondary research
before registering for a service, and this mostly includes mobile reviews, review websites and
ratings provided by users in travel and tourism websites. For the concerned service organization,
Google review acts as the most promising truth that helps in customer attraction and brand value
enhancement.

7ASSESSMENT 2
5.0 Determinants of Satisfaction/Dissatisfaction
5.1 Satisfaction
5.1.1 Variety of Features
According to Lo, Wu and Tsai (2015) customer satisfaction depends on perceived value,
perceived quality and diversified features. iStay Precinct comprises value such as affordable
accommodation, swimming pool, jacuzzi, 23-hour reception, Wi-Fi facility, parking and local
tour desk. Therefore, it can be said that the hotel provides complete set of tourism package that is
worth to be experienced. Consumers get variety of services under one roof and therefore
perceived value is justified.
5.1.2 Location and Surroundings
Service companies must ensure comfortable communication in terms of transportation so
that hassle free experience is provided (Torres, Fu and Lehto 2014). iStay Precinct is located in
the center of Adelaide's bustling city, which is surrounded by lush green parklands. This hotel is
just about ten minutes away from Adelaide airport by car. On the other hand, Nieves and
Segarra-Ciprés (2015) pointed out point of interest from hotel surroundings increases customer
attraction and brand value. For the hotel, the point of interest is consisted of Adelaide Oval (3
minutes’ drive), Adelaide Zoo (6 minutes’ drive), Botanic Gardens (9 minutes’ drive), Central
Markets (9 minutes’ walk) and Convention Centre (9 minutes’ walk). Also, the transport and
shopping centers are maximum of ten minutes away by car drive.
5.1.3 Room Facilities
Gazzoli, Hancer and Kim (2013) pointed out that ultimate experience of a hotel is
achieved from on-site feature availability so that the feeling ownership among guests is justified.
iStay Precinct is having full laundry and kitchen services for each of the 1 or 2-bedroom
apartments. Also, there are private balconies, open plan living area and great sweeping city
views. The luxurious services include spa, indoor heated pool and steam pool for relaxation. The
most attracting feature is the customers can get customized features in the room without opting
for all the services, which reduces expenditure. All such features have enhanced the satisfaction
of customers.
5.2 Dissatisfaction
5.2.1 Room Service
While considering the viewpoint of Lo, Wu and Tsai (2015), it can be said that catering
and food services indicate huge customer satisfaction, however failure hampers customer
retention. iStay Precinct is found to have poor room service such a huge delay in delivery of
food, poor quality and quantity of food and even backstage employees does not respond
appropriately after order confirmation. On the other hand, entertainment issues are also not
solved promptly when informed through telephone. Such poor activities have resulted in
customer dissatisfaction.
5.2.2 Premium Pricing
Service organizations are expected to deal with competitive pricing so that consumers get
the opportunity to visit multiple times (Calabrese and Corbo 2015). This helps in customer
retention and revenue generation. However, iStay Precinct follows premium pricing, which
indicates that only consumers with high income level can only visit here and therefore, the
source of revenue earning has not raised in last couple of years. Also, the hotel has failed to
segregate its premium features, resulting low room booking.

8ASSESSMENT 2
5.3 Service Quality Measurement
Following table will help in determining the service quality of iStay Precinct:
SERVQUAL Items
Factors Explanation
Reliability a) Promising and exclusive features as mentioned in official website
b) Integrated operation from reservation to checkout
c) High safety and security including full-room ownership
Assurance a) Customizable luxury features for 2 room accommodation
b) Room service is extremely delayed and poor communication
c) Entertainment services often breakdown
Tangibles a) Great availability of kitchen and laundry equipment
b) Indoor heated pool, steam pool and spa with great relaxation
c) Private balconies and living plan open area
Empathy a) Poor customer care as it takes long queue for resolving query
b) Poor room service and there is no individualized attention
c) Good caring when channelized through reception
Responsiveness a) Good willingness to resolve customer queries
b) Customer room service is not prompt
c) Prompt and systematic room clearance including sweep
Table 1: SERVQUAL Factor Analysis
(Source: Calabrese and Corbo 2015)
5.3.1 Service Gaps using Gap Model
According to Debasish and Dey (2015), SERVQUAL model highlights 4 gaps for a
service organization, where gap 5 is the product of rest. Gap 5 is customer oriented and therefore
if rest of the gaps are limited then overall gap 5 will be less, indicating better service.
Gaps Explanation
Gap 1 a) Service quality is overall good but there is no service for upper-middle
and middle-income customers, resulting poor customer retention
b) There are too many management layers resulting delayed room service
c) Poor market research in terms of service pricing as similar offerings with
lower price is available in market
Gap 2 a) Poor room service standards have resulted in delayed response
b) Poor management commitment to enhance service
c) Inappropriate standardization of role among employees
Gap 3 a) Poor technological integration and lack of perceived control
b) Poor employee training and supervision
c) Quite often there are technical breakdowns
Gap 4 a) Short-term relationship and communication with suppliers
b) Poor marketing and sales techniques via online platform
c) Rules, policies and procedures does not remain fixed for long time
Table 2: Gap Analysis
(Source: Debasish and Dey 2015)

9ASSESSMENT 2
Figure 3: Gap Model
(Source: Debasish and Dey 2015)
6.0 Service-recovery Strategy Plan
According to Yang et al, (2016) most of the service organizations fail to determine the
contingency plan and therefore there is wastage of resources at certain time, due to which debt
management issues are faced. For iStay Precinct, it can be said that the organization has designed
premium pricing but there is lack of contingency plan as many times it has been found that
rooms remain unoccupied and customer queries remain unattended.
6.1 Crisis Management and Service Recovery
It becomes quite helpful for the service organizations if there is social media crisis
management policy (Koc 2013). Whenever there is negative publicity, the organization will be
able to respond its target market directly, which will also be addressed to others. This will
eventually act as crisis management as mass target can be communicated and service can be
restored.

10ASSESSMENT 2
6.2 Discount and Promotions
It has been observed that Australian hospitality sector is rapidly developing with plenty
of new entrants, which are offering lucrative services in low price (Sengupta and Pillai 2017).
Therefore, the hotel needs to allow new types of discounts, memberships, premium cards, loyalty
cards so that consumers does not get lost. It will be extremely helpful if the organization
announces membership plans through official website within next 6 months so that retention is
actualized.
6.3 Board Level Meeting
Service organizations need to ensure planning after every quarter, which will include
directors, managers and supervisors (Brandon-Jones 2016). Such meetings will end up with new
strategies which can be implemented at crisis times. iStay Precinct needs to plan for stakeholder
management and wealth maximization as every year 20% of the accommodation remains
unoccupied. The hotel needs to make full use of online platform including social media mostly
for marketing purposes. On the other hand, it needs to increase response through advertisement
and promotions so that hundred percent room accommodation is possible.
7.0 Conclusion
While concluding, it can be said that iStay Precinct needs to establish its market for new
target customer who are having middle-income. The service blueprint of the organization is
found to be integrated but it is not optimized due to more number of managerial level. There are
plenty of luxury services but only high-income customers can afford those, due to which much of
the accommodation remains unoccupied each year. On the other hand, it has been found that the
hotel is having good entertainment services and full wireless fidelity system but there is lack of
management tactics. The room service feature specifically for food orders takes huge time and
there is very less managerial initiative for training and development. In future service recovery is
possible through the use of online platform for communication.

11ASSESSMENT 2
Reference List
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Căruntu, A.L. and Diţoiu, M.C., 2014. The Perceptions of Hospitality Services of a Tourism
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Hossain, M.Z., Enam, F. and Farhana, S., 2017. Service Blueprint a Tool for Enhancing Service
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Minorhotels.com. 2017. iStay Precinct | Oaks Adelaide CBD Hotel. [online] Available at:
http://www.minorhotels.com/en/oaks/istay-precinct [Accessed 28 Sep. 2017].

12ASSESSMENT 2
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