Hotel Industry Management Strategies

This assignment delves into contemporary management practices within the hotel industry. It examines a range of strategic approaches including Customer Relationship Management (CRM), Total Quality Management (TQM), and innovation, highlighting their impact on hotel performance. The provided research papers offer insights into differentiation strategies, value co-creation, environmental management, human resource management, and the role of information systems in driving success within this competitive sector.

Running head: SERVICE DESIGN MANAGEMENT
Service Design Management
Name of the Student
Name of the University
Author’s Note

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Executive Summary
An effective case scenario has been provided based on the service quality and operation
process of Fraser-Bolling Hotel. With the help of SERVQUAL, an effective multi-dimensional
research instrument, the business expert of Fraser-Bolling Hotel has focused to critically analyze
the five major components for maintaining service quality. The components include assurance,
reliability, tangibles, empathy and responsiveness. In addition, the study has focused to make
detailed overview about the impact of service management for leading the business process
successfully in the hotel industry. At the end, major recommendations based on new service
management strategies to improve the customer experience have also been presented in this
specific study.

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Table of Contents
1. Introduction:...............................................................................................................................2
2. Evaluate key hotel service quality dimensions demonstrated at Fraser-Bolling Hotel..............2
3. Analyze existing service management strategies......................................................................4
4. Recommend modified or new service management strategies to improve the customer
experience.....................................................................................................................................5
5. Conclusion:................................................................................................................................6
Reference List:...............................................................................................................................8

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1. Introduction:
SERVQUAL is a multi-dimensional research instrument that is designed for capturing the
consumer’s expectations and perceptions of a service along the five dimensions. The five
dimensions include assurance, reliability, tangibles, empathy and responsiveness. The success
of business in a hospitality industry is highly dependent on the service quality. Along with
maintaining the quality of product the business experts have to focus on service quality in order to
draw the attention of customers from different geographical backgrounds. This very specific study
provided in-depth analysis about the service quality of Fraser-Bolling Hotel based on the
detailed overview of case study. As per the case scenario it has been observed that Fraser-
Bolling Hotel has already achieved immense recognition due to its effective operation process.
This specific hotel is constituted with 200 rooms of different configurations and 15 suites,
features an all-day café dining, a wellness spa and a well-equipped business centre. In addition,
Fraser-Bolling Hotel provides moderate to high level of services to the customers. This
particular hotel is comfortable with both the moderate cost of customers as well as high cost
customers. After evaluating the entire case study it has been observed that the service
providers are well trained in dealing with the different level of customers. People after visiting
the place do not have to wait for a long time in order to receive the services. At the same time, it
is realized as a guest experience manager that Fraser-Bolling Hotel should bring some major
changes in order to make their entire service process faster and more effective.
2. Evaluate key hotel service quality dimensions demonstrated at Fraser-Bolling Hotel
As already stated, hotel quality dimension is constituted with five major components that
include assurance, reliability, tangibles, empathy and responsiveness. While capturing the
needs and desires of customers SERVQUAL multi-dimensional research instrument primarily
focuses on those five major factors.
Assurance:
This specific dimension indicates that the experience and skill of an individual service
provider should be captured in the mind of customers. In many cases it has been observed that a
particular service provider is efficient enough in terms of managing the customers. Still the individual
fails to portray that competency in front of target market due to the lack of presentation skill. In this
kind of situation, the customers get the lack of assurance from the service providers. Fraser-Bolling

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Hotel is very much successful in convincing the customers by showing their moderate approach
as well as systematic operation process (Wang, Chen & Chen, 2012). It is highly important to
gain the reliability of target market by showing a proper gesture and on time service delivery. At
the same time, Fraser-Bolling Hotel in order to expand their business beyond going the
Australian market the service providers can enhance their skill and competency by enhancing
the professional skill. The responsibility of an efficient service manager is to fulfill the needs and
demands of every single customer and make them assured about the superior quality of
services.
Reliability:
In order to become an efficient service provider the customers have to focus on gain the trust
of people. Maintaining a proper gesture along with dignified dress code creates an additional
impression (Benavides-Velasco, Quintana-García & Marchante-Lara, 2014). The service
providers of Fraser-Bolling Hotel have to follow a proper uniform in order to maintain hotel
regulation and custom. In addition, this particular hotel is endowed with café dining, a wellness
spa and a well-equipped business centre (Hoque, 2013). The guests are free to use services at
any time. As a result, there is not time boundary that has to maintain for using the services of
those facilities. In addition, the employees associated with café, spa and business centre are
very much able to deliver the service within stipulated time. Customers as a result do not have
to struggle for receiving services.
Tangible:
As per this specific dimension the success of hotel industry is intensely dependent on
the appearance of entire operations. Every single staff should have proper gesture and skill to
impress and drag customers’ attention. In addition, people belonging to different geographical
boundaries are associated with in the service process of a hotel. Therefore, customers are very
much concerned about employees’ appearance, uniforms, official equipment, and way of
flexibility (Pereira-Moliner et al., 2012). However, Fraser-Bolling Hotel has provided strict
instruction to the employees for maintaining professional gesture with the customers in order to
impress them for using services.
Empathy:
In many cases it has been observed that employees have provided their best endeavor for
fulfilling the needs and demands of customers. Despite effective services the customers show their

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negative impression towards the service providers. In this kind of situation, entire effort provided by
the employees becomes meaningless. This very specific case study of Fraser-Bolling Hotel has
highlighted that customers of moderate cost sometimes get dissatisfied in getting effective services
due to the psychological barrier as well as linguistic barrier (FitzPatrick et al., 2013). The
responsibility of an efficient guest experience manager is to make a direct communication with those
customers who are not very much satisfied within the service process. The guest manager intends to
identify the issues that the customers have faced while receiving the services. Based on the level of
dissatisfaction the guest manager has to provide an effective feedback to the concerned operation
manager (Peppard & Ward, 2016). After getting an effective feedback from the guest experience
manager the operation manager intends to render a change in operation process.
Responsiveness:
Responsiveness implies that the business managers along with the employees have to
give prompt response and feedback to the customers. The primary role of an efficient employee
is to deliver the services within time so that the customers do not have to wait for a long time in
order to receive the services (Mohammed & Rashid, 2012). Fraser-Bolling service providers
are available for twenty four hours. The guests can enter at the hotel at any time. They do not
have to following a specific time schedule for using the services. The employees are flexible
enough in delivering services within time.
3. Analyze existing service management strategies
However the service management strategies that Fraser-Bolling Hotel follows within their
service process include:
 Service facility for twenty-four hours
Fraser-Bolling hotel is flexible to provide services to the customers for twenty four hours.
Therefore, the international customers do not have to face problems in using the services of this
specific hotel. The employees are very efficient to deliver the service within proper time (WuI &
Lu, 2012). This specific factor has made the brand as one of the most prestigious hotels
expanding in the market of Australia. This very specific case study has highlighted that Fraser-
Bolling service has focused to make relationship with both low cost customers as well as high
cost of customers.
 Effective customer relationship

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Maintaining effective customer relationship is one of the most effective strategies and
policies that the business experts of Fraser-Bolling service tend to follow. The customer support
department after receiving a booking from a specific customer keeps a detailed track about the
customers such as past purchases, customers’ preferences and contact details (Tajeddini &
Trueman, 2012). The customer service providers of Fraser-Bolling service intend to call the
guests for informing the detailed address and additional information about the hotel.
Automatically the target customers intend to show their level of interest for purchasing the
products and services of Fraser-Bolling hotel. In addition, one of the most significant features of
this specific brand is that service providers tend to show their equal respect and dignity to the
customers of different psychological backgrounds and attitudes (Becerra, Santaló & Silva,
2013).
 Maintaining outward appearance:
Outward appearance is an additional feature based on which the impression of a hotel
industry is highly dependent. The employees belonging to a specific luxury hotel have to
maintain proper dress code along with gesture. As a result customers belonging to different
geographical boundaries would like to show their attraction in using the services from those
employees (Dief & Font, 2012). The internal staffs of Fraser-Bolling Hotel however strictly
maintain a proper uniform for maintain organizational discipline.
4. Recommend modified or new service management strategies to improve the customer
experience
After making an in-depth critical evaluation about hotel service quality dimensions some
of the major recommendations can be provided to the guest experience manager of Fraser-
Bolling service. The recommendations are as follows:
 Collecting constant feedback from the customers
As a guest experience manager collecting constant feedback from the customers is
highly important for making business strategies and policies. Without collecting customers’
feedback the service managers would not be able to render a change in business strategy as
well as policies (Srinivasan & Moorman, 2013). Therefore, Fraser-Bolling service can be
recommended to make direct communication with the customers of both low cost as well as
premium cost. Based on the feedback and their effective responses business strategies and
policies can be re-formed for drawing the needs and desires of customers.

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 Receiving training and development session for enhancing professional skill as well
as communication skill
The primary business of Fraser-Bolling service is surrounded within the market of
Australia. The employees are comfortable in handling the customers of Australia. Therefore,
there are least opportunities in business expansion of Fraser-Bolling service. However, in
order to become flexible with the customers of multinational countries the service providers can
receive an effective training and development session for enhancing professional skill as well as
communication skill (Ryals, 2013). Rendering flexibility in multilingual communication is highly
important with the help of which people belonging to different geographical boundaries and
attitudes can feel free in interacting with the service providers. Therefore, the management of
Fraser-Bolling can be suggested for providing proper training session to the employees for
improving their communicational skill and professional competency.
 Rendering the advancement of technology
Fraser-Bolling can render more advanced technology within the organization in order to
make the entire operation process faster. The service providers after collecting data and
information about the guests can make a record by maintaining a proper database. In addition,
the service providers can use big data as well for collecting, storing and implementing suitable
information in a systematic manner; Fraser-Bolling does not follow effective advanced
technology (Cabiddu, Lui & Piccoli, 2013). The employees are not very much accustomed with
the changing process of technological advancement. In this kind of situation, the service
providers and employers’ can be suggested for implementing advanced technological
equipments within the services.
 Making more promotions for business expansion
Fraser-Bolling promotional style and activity is not very much effective that can draw the
attention of international customers. Being one of the most prestigious brands of Australia the
business experts should focus to expand their entire process of business in different multi-
national countries (Nieves & Segarra-Ciprés, 2015). Therefore, this very specific study has
focused to provide an effective recommendation to Fraser-Bolling for using the platforms of
social media as well as other digital media. Digital media is considered as one of the most
effective platforms based on which international customers can be attracted towards the brands
as well as services.

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5. Conclusion:
The entire study has focused to make an in-depth overview about the importance of
maintaining superior quality of service process for building organizational image and reputation.
People belonging to different geographical markets are associated within the business process.
Therefore, the business managers of Fraser-Bolling should provide an effective training in
order to make the employees competent in management skill. This very specific study provides
deep analysis about five key hotel service quality dimensions demonstrated at Fraser-Bolling
Hotel. By highlighting the five key components, the study has focused in analyzing the
importance of fulfilling the customers need and demands. The existing service management of
Fraser-Bolling Hotel with the help of critical analysis of numerous scholars has been presented
in this very specific study. At the end of the study recommend modified or new service
management strategies to improve the customer experience has also been highlighted in this
very specific study.

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Reference List:
Becerra, M., Santaló, J., & Silva, R. (2013). Being better vs. being different: Differentiation,
competition, and pricing strategies in the Spanish hotel industry. Tourism
Management, 34, 71-79.
Benavides-Velasco, C. A., Quintana-García, C., & Marchante-Lara, M. (2014). Total quality
management, corporate social responsibility and performance in the hotel
industry. International Journal of Hospitality Management, 41, 77-87.
Cabiddu, F., Lui, T. W., & Piccoli, G. (2013). Managing value co-creation in the tourism
industry. Annals of Tourism Research, 42, 86-107.
Dief, M. E., & Font, X. (2012). Determinants of environmental management in the Red Sea
Hotels: personal and organizational values and contextual variables. Journal of
Hospitality & Tourism Research, 36(1), 115-137.
FitzPatrick, M., Davey, J., Muller, L., & Davey, H. (2013). Value-creating assets in tourism
management: Applying marketing's service-dominant logic in the hotel industry. Tourism
Management, 36, 86-98.
Hoque, K. (2013). Human resource management in the hotel industry: Strategy, innovation and
performance. Routledge.
Mohammed, A. A., & Rashid, B. (2012). Customer Relationship Management (CRM) in Hotel
Industry: A framework proposal on the relationship among CRM dimensions, Marketing
Capabilities, and Hotel performance. International Review of Management and
Marketing, 2(4), 220.
Nieves, J., & Segarra-Ciprés, M. (2015). Management innovation in the hotel industry. Tourism
Management, 46, 51-58.
Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Pereira-Moliner, J., Claver-Cortés, E., Molina-Azorín, J. F., & Tarí, J. J. (2012). Quality
management, environmental management and firm performance: direct and mediating
effects in the hotel industry. Journal of Cleaner Production, 37, 82-92.

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Ryals, L. (2013, May). Making customer relationship management work: the measurement and
profitable management of customer relationships. American Marketing Association.
Srinivasan, R., & Moorman, C. (2013, May). Strategic firm commitments and rewards for
customer relationship management in online retailing. American Marketing Association.
Tajeddini, K., & Trueman, M. (2012). Managing Swiss Hospitality: How cultural antecedents of
innovation and customer-oriented value systems can influence performance in the hotel
industry. International Journal of Hospitality Management, 31(4), 1119-1129.
Wang, C. H., Chen, K. Y., & Chen, S. C. (2012). Total quality management, market orientation
and hotel performance: The moderating effects of external environmental
factors. International Journal of Hospitality Management, 31(1), 119-129.
Wu, S. I., & Lu, C. L. (2012). The relationship between CRM, RM, and business performance: A
study of the hotel industry in Taiwan. International Journal of Hospitality
Management, 31(1), 276-285.