Service Management for Hospitality and Tourism

This report discusses the operating strategy and service delivery system for The Pearl Hotel, Sydney. It includes service blueprint, service delivery system, service employee management, and quality management measures.

Running Head: SERVICE MANAGEMENT 1
Service Management for Hospitality and
Tourism

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Executive Summary
The major purpose of this report was to focus on remaining two components of Strategic Service
Vision Framework as first two are discussed in the first assessment. These components are
operating strategy and service delivery system. In includes the major components of operating
strategy i.e. human resource, marketing and operations. The organization will manage all these
elements by using effective processes and techniques. Further, the service blue print is created
for The Pearl Hotel that includes a complete process of service delivery to the final customer.
This service blueprint covers all the critical points i.e. physical evidence, customer employee
contacts and employee actions. From them, two critical points are discussed in context of The
Pearl Hotel, Sydney. This hotel will develop its services and strategies according to the needs
and wants of its targeted market segments. In the next section, a service delivery system is
created for the chosen organization that includes each and every step along with their nature of
service. Moreover, there is the discussion about the service employee management and their
contribution to quality service delivery and overall productivity of organization.
The report also explains the impact of employee satisfaction and motivation on service quality.
The hotel can use effective recruitment and hiring practices to motivate the employees. The end
section of the report brings about the service quality framework to execute the service guarantee
which ensures customer loyalty and satisfaction. The conclusion provides the overview about the
strategies and service management techniques which are discussed in the report.

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Table of Contents
Introduction.................................................................................................................................................4
Operating Strategy......................................................................................................................................4
Service Blueprint.........................................................................................................................................6
The Service Delivery System........................................................................................................................7
Service Employee Management..................................................................................................................9
Quality Management Measures..................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

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Introduction
In the today’s competitive business world, the changes are taking place in each and every
industry. The hospitality and tourism industry needs to have effective and competitive policies
related to offering excellent customer service so that it can survive in the competition. The
objective of this report is to develop the insight on next two components of Strategic Service
Vision Framework i.e. Operating Strategy and Service Delivery System. The components are
defined in context of the hospitality organization that is selected in first assessment. The
organization is named as The Pearl Hotel that will be located on Manly Beach, Sydney. It
includes the service blueprint for the chosen firm. The last section includes other related features
of service delivery system.
Operating Strategy
Operating Strategy is the third and very important component of Strategic Service Vision
Framework. This model of Heskett identifies four basic aspects in operating strategy such as
Operations, Marketing and Human Resources (Bitner and Wang, 2014). The way of service
delivery, policies and guidelines of The Pearl Hotel are very important for its growth and
sustainability. The Service Management Trinity for The Pearl Hotel is discussed below:
Operations
As The Pearl Hotel is planning to operate the business in hospitality industry, the basis of its
operations is the provision of services. The hotel will start its business by recognizing the needs
and wants of customers. It needs an effective understanding about the services offered by the
hotel. The organization needs to know about the needs and perception of these services and
brand image of organization among possible customers. The Pearl Hotel aims to become in the
travellers’ eye a cozy and relaxation place which they wish to accommodate while staying on
Sydney’s beaches. It will aim to provide the highly pleasing experience to its guests by providing
quality hospitality services (Geum and Park, 2011). At this hotel, there are various areas on
which the organization will focus like room service, housekeeping, security, food preparation
and service and public relations. To develop effective strategy, the organization will provide
different types of rooms as per the number of people and their budget. The rooms will be

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prepared with different amenities like LED, Wi-Fi, Electric kettle, air conditioner etc.
Additionally, there will be a food menu with variety of food and drinks and guests can place their
order from their room. The strategic implementation of this approach will also include use of
good colors and garden area to offer an atmosphere of relaxation. The people will be able to
book their room both online and offline. If they book the room online, they can show their
receipt to hotel reception and scan avail their accommodation. Thus, the organization aims to
provide quality services so that they can meet to service encounter (Australian Bureau of
Statistics, 2018). This aspect of operating strategy will assist the organization to create an
equilibrium point for the productivity and quality of service.
Marketing
Under operating strategy, marketing is also an important factor to promote the services offered at
The Pearl Hotel. The travellers to Sydney need to recognize and prefer this hotel as an ideal
accommodation place. To attain this, the organization will use effective marketing and
promotion strategies so that they can approach the targeted market segments identified in first
component. To attain this, the organization will use both offline and online modes of promotion
like social media, print media, traditional media etc. According to Goh, Nguyen and Law (2017),
a hospitality organization which provides customer perceived services is better positioned to
increase profits. This customer satisfaction can work as a marketing tool because it will be easy
to recommend The Pearl Hotel as the best accommodation on Manly Beach (Goh, Nguyen and
Law, 2017).
Human Resources
As per Dhar (2015), this is the most important facet in case of a hospitality organization. This
strategy is implemented to hire a motivated team which aims to offer quality services with a
well-mannered customer behavior (Dhar, 2015). The delivery of quality service can be made
sure by appreciating the significance of motivated and qualified human resources in guest
satisfaction therefore retention. The management of Pearl Hotel purposes to use the diversity at
employee recruitment and hiring process. It will conduct effective training and development
program for the employees (Vallen and Vallen, 2009). It will make efforts to keep employees
engaged and motivated so that they can help in reaching to service encounter.

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Service Blueprint
According to Bitner, Ostrom and Morgan (2008), service blueprint is a diagrammatic
presentation that presents the service delivery process of a service organization. It includes
different aspects like process of service delivery, evidence of services and customer contact
points. It is basically a bunch of service quality approaches which are aimed at quality
improvement of service at each and every step of value chain (Bitner, Ostrom and Morgan,
2008). As per the below-given diagram for The Pearl Hotel, a service blueprint includes every
activity that is involved in service production and offering. There are various critical points in
service process which The Pearl Hotel looks to exploit so that they can enhance the guest
experience and satisfaction. For this hotel, two most important critical points are physical
evidence and employee actions. These points are explained below:
Physical Evidence
At The Pearl Hotel, physical evidence includes all the things which the guests can use and seek
to influence their perception for service delivery. One of the major physical evidence of this
hotel is its strategic location where the guests will have easy access to beaches, cafes and other
attractions of Sydney. Additionally, the guests at Pearl Hotel will use body language and
personality of employees as the physical evidence to make a perception regarding its services
(Kostopoulos, Gounaris and Boukis, 2012). Additionally, it may include the tangible components
such as furniture, ambience, electronic gadgets, bed etc.
Employee Actions
This critical point of service delivery system is also of the significance in order to improve the
productivity and quality of service. It includes both invisible and visible action of back office and
front office employees. At Pearl Hotel, visible employee actions are direct communications
between guests and staff. It includes the front desk interactions like dining facilities, interaction
with housekeeping staff, reception and recreational activities.
Furthermore, the invisible employee actions include the indirection communication between
employees and customers (Geum and Park, 2011). At The Pearl Hotel, it covers telephone calls
and e-mails that are shared between guests and hotel’s staff.

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The above diagram shows the service blueprint of The Pearl Hotel that includes each and every
activity of service delivery system. It will assist the organization to develop service steps in the
system, provide direction for required critical involvement for future problem solution and
discover the profit maximization breaks while focusing on service quality (Lim and Kim, 2014).
The Service Delivery System
According to Jang, et al, (2018), the service delivery system includes the physical environment,
customers and employees. It comprises of the technical core, employee contact, physical
facilities and end-consumer service providers. At the Pearl Hotel, the staff, physical environment
and location need to work in the association to ensure the customer conciliation. As mentioned in
the assessment 1, The Pearl Hotel is planning to operate its business in hospitality industry
whose targeted customers are the people who are travelling to Sydney beaches for leisure
purpose. Here, the organization will need to adopt and execute first-come-first serve base.
Sometimes, it will use the priority basis where required, for example allocating the rooms on the
basis of number of occupants and demand (Jang, et al, 2018).

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By using the generalization, the service delivery system for Pearl’s core services of
accommodation and food is examined. In this process, there are some specific steps which are
involved i.e. customer entrance, room availability check, check-in process, registration, room
allocation, stay and check out process. At the reception, the guests are received from the main
entrance and they are led to the parking area if they have their own vehicles. The person at
reception will know about the requirements of guests towards their accommodation and length of
stay. He/she will fulfill all check-in formalities and guest will be allocated with the room
accordingly (Patiar and Mia, 2015).
Then, the customer enters in the room where all the equipment and amenities are effectively
arranged. The management of hotel keeps the materials according to the predictable demands
and customer arrival at hotel. At The Pearl Hotel, the accommodation and food services are
perishable in the nature and therefore this demand forecast works as an index for the availability
of service and quality which assists the organization to enhance quality and productivity (Maass,
2012).
Next, the guests place the order for meals and drinks from the telephone of their room. The
organization will provide the facility of a common dining area also where people can have their
breakfast, lunch and dinner. In this, the food is delivered on first-come, first-serve basis. It
improves the efficiency of service delivery and productivity of workplace. After staying at hotel,
when the guest prepares to leave, a bill is generated and given to the guest. At this, it will also
adopt first-come, first-serve basis to flow the work smoother. The customers will pay at the
reception by using different modes of payment i.e. credit card/debit card, cash, net banking etc.
Once the payment is made, the guest can leave the hotel at his/her own pleasure.
Additionally, the organization may face the issues of capacity management as there may be
increase in the number of tourist arrival in the peak season. At the time of festivals and events in
Australia, there may be rush at hotels (Albert, 2015). To manage this, The Pearl Hotel will use
effective strategies. It will make efforts to manage the demands of customers. In the future, the
organization will increase the number of rooms as per the demand.

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Service Employee Management
According to Menguc, et al, (2017), the encounter of service employees is generally the most
significant aspect of service delivery. Service staff is responsible for the delivery of hospitality
service at The Pearl Hotel. It is a major factor in the quality of services (Menguc, et al, 2017). In
the limelight of this, it is practical for The Pearl Hotel to recruit and attract the highly talented
and qualified staff that will enhance the service value. In turn, it will boost the profitability of
this new business venture in Sydney. At hotel, employees are able to implant the loyalty and
confidence in the guests by showing friendliness and warmth, specifically front desk staff,
waiters, room service staff and other employees who interact with the guests. The employees at
The Pearl Hotel will welcome the guests in a well-behaved manner and ensure the service
excellence and quality. It serves to entice and retain a large customer base (Bimonte and Faralla,
2014).
In the hospitality sector, it can be stated that a satisfied employees can lead to a satisfied guest.
For Pearl Hotel, it is very important to gauge and manage the satisfaction of its employees. It
starts by engaging in the best hiring process so that it can attract skilled and qualified staff. The
management will include the employees in its decision making process. It will make them
engaged and motivated. The organization will provide different benefits to the employees. It will
focus on the work-life balance so that they can balance their work and personal life (Dhar, 2015).
Guest experience reports are the reliable gauge for the motivation and satisfaction of customers.
A satisfied and motivated staff ensures the quality services for the guests or customers.
Quality Management Measures
Quality management plays an important role in a successful service encounter. A consistent
quality management measure which the Pearl Hotel aims to practice for implementation of
quality standards is the service guarantee (Ross, 2017). Service guarantee is the surety that is
provided to the customers that the services and facilities provided by the hotel will be
satisfactory. At the Pearl Hotel, the major components of this guarantee will be quality services
and overall productivity. First, the organization will emphasize on making the workflow
smoother that will enhance the productivity of organization (Dolnicar, Yanamandram and Cliff,
2012). It will create an environment where the customers will be attended as rapidly as possible.

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As mentioned in the above service delivery system, different protocols at different steps aim to
enhance the final output.
The organization will make efforts to motivate the employees through incentives and other
benefits that will enhance the quality of services. Moreover, the recruitment and attraction of
talented staff will assist The Pearl Hotel to gain a competitive advantage over other hotels at
Manly Beach by guaranteeing the services with excellent quality (Haywood and Pickworth,
2015). In this way, the chosen organization can relate its quality surety with the employee
management.
Conclusion
From the above report, it can be concluded that The Pearl Hotel needs to make additional focus
on these two components of Strategic Service Vision Framework i.e. Operating Strategies and
Service Delivery System. The purpose of report is to provide the explanation about the different
quality and other related aspects of service management. For this organization, it is very
important to understand the steps which are included in the service delivery system. It needs to
seek for the ways to improve the quality and productivity of organization. The hotel needs to
base its operations and human resources on guest satisfaction because they are the primary
drivers of hotel’s performance and productivity. Quality management measures can assist the
organization to enhance brand image of this hotel in Australia and other nearby countries.

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References
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Journal of Tourism, Hospitality and Sports, 11, 1-9.
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Research, Vol. 46, pp.176-178
Bitner, M. J., and Wang, H. S. (2014) Service encounters in service marketing research,
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Dolnicar, S., Yanamandram, V. and Cliff, K. (2012) The contribution of vacations to quality of
life. Annals of Tourism Research, Vol. 39, no. 1, pp.59-83.

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Geum, Y. and Park, Y., (2011) Designing the sustainable product-service integration: a product-
service blueprint approach. Journal of Cleaner Production, 19(14), pp.1601-1614.
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Kostopoulos, G., Gounaris, S. and Boukis, A., (2012) Service blueprinting effectiveness: drivers
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Lim, C.H. and Kim, K.J., (2014) Information service blueprint: A service blueprinting
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Menguc, B., Auh, S., Yeniaras, V., & Katsikeas, C. S. (2017). The role of climate: implications
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New Jersey, NJ: Prentice Hall.

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