Improving Service Quality at Hamilton Hotel

This assignment examines the challenges faced by the Hamilton Hotel in Sydney, Australia, due to poor service quality. It analyzes the hotel's current situation and proposes organizational changes, including improved communication strategies, updated marketing plans, and enhanced employee training. The goal is to help the Hamilton Hotel regain its competitive edge and deliver a superior customer experience.

Running head: SERVICE MANAGEMENT
Service Management
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Table of Contents
Introduction......................................................................................................................................2
Service Issues of the Hotel from Key Findings...............................................................................3
Recommendations for improvement on the service strategies........................................................5
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The hotel and hospitality industry is one of the most flourishing industries in today’s
world. This industry requires effective service management and efficient customer services, in
order to ensure the success of this industry. This assignment highlights the background of Hilton
Hotel. The Hilton hotel and resorts is one of the global brands of full-service hotels and resorts
that have been catering to the needs of the customers for years. The company was founded in the
year 1919. Headquartered in Virginia, US, the hotels and resorts operate with more than 570
hotels worldwide. This assignment highlights the background of the company Hotel Hilton,
along with highlighting the various services management issues that occur in the business
organization. The various service management issues that occur in the hotel have been
highlighted, along with summarising the issues and findings. Recommendations have been
provided, for the enhancement of the service management, such that the customers services
provided to the guests and customers are of high quality. The recommendations should be
directed towards the improvement of the service strategies. Finally, conclusion should be added
in order to summarise the issues and recommendations.
Background of the Hotel
Hilton Sydney Hotel is situated in the heart of the city. It is known for its huge hotel
accommodation, large guest rooms, and spacious suits. It has at least 28 conference rooms and
hence scores high in a corporate destination. The meeting space is about 400 square carpet areas
which can cater 1200 delegates. The meetings rooms are further subdivided on the basis of level
1, level 2, level 3, level 4 and other staging connections. The guest rooms are decorated with
king size bed along with blackout blinds. The rooms are also equipped with LED TV, alarm

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clock, MP3 players and wireless internet connectivity. It is also fitted with a glass top work desk.
The classification of the guest rooms occur on the basis of guest room, guest room plus, deluxe
room, deluxe plus, executive, relaxation room relaxation suit and junior king size suit, master
suit and king suit. The hotel is located near the Sydney Harbour Beach, Darling Harbour and
Bondi Beach and has excellent connectivity to the entire major tourist destination in Sydney. The
hotel offers several cuisine options in the form of glass breakfast, glass brasserie, zeta bar,
marbel bar and caffe cino. The glass wine bar is brimmed with 440 boutique wines and is poen
from 12pm till late in mid night. The timings of the wine bar are extended during the weekends.
The hotel also takes care of the relaxation regime of its delegates via bestowing them with health
and beauty treatments like Livingwell Hilton Health Club, Alysium Spa, Pierre Haddad.
Livingwell Hilton Heath Club provides goodness of health via providing interactive Precor
cardio equipment. It also provides options for Zumba, spin, Yoga and Pilates. It also has 25
meter stretch swimming pool steam rooms. Hilton Sydney hotel also provides special packages
for honeymoon couple and other surprising gift vouchers for birthday and anniversaries (Hilton
Sydney 2017).
Service Issues of the Hotel from Key Findings
With the growing intensity of competition in the hotel and hospitality industry, there are
several issues that are compromising upon the issues related service quality. All the major large

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scale Hotel industries of Australia like Hamilton Sydney have to encounter loss of revenue due
to the increase in the level of Competition and entry of new service providers. The inability of
the hotel to modify their marketing strategies and service quality has hugely compromised upon
the quality of service and popularity of the hotel. The management of the hotel has not been able
to collect customer’s feedback that could have helped them to improve upon the quality of the
service that can help them in the matters related to that of customer retention.
The hotel has also encountered the issue related to employee retention due to the fact that
they have not been able to implement proper salary hike. The working capability of the hotel
staffs had also deteriorated, which is caused due to poor communication skills of the service
provider. The management of the hotel is also not able to incorporate the process of digital
marketing, which is common in the hospitality industry. Due to the poor technological
infrastructure of the company, it is not possible to introduce online booking system.
According to latest report, nearly 65% of the advance booking in Australian hospitality
sector is done through online website (McManus 2013). As the Hamilton hotel is not able to
introduce the latest online facility, it is not possible for the company to accept advance bookings
from the foreign tourists. The hotel is mainly dependent on the bookings done through agents
and other travel partners, which is not preferred by most of the visitors due to higher level of
pricing. The website of the hotel is still not developed perfectly, which is not able to provide
enough information about the service standard.
The hotel has not been able to bring about organizational changes in quick succession
that can help them to respond to the changes according to the external business environment

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changes. This is one of the major issues that have been encountered by the hotel that
compromised upon the service quality.
Recommendations for improvement on the service strategies
The fast changing scenario of the hotel industry in Australia brings about new challenges
in the business environment. With The fast growing demand of the hospitality industry, it is
essential for the Hamilton hotel to incorporate effective service techniques. According to Goh et
al., (2017), the Primary indicator of Hotel service quality is obtained from the behavior of the
hotel staffs towards the guest. There are various categories of people, from all around the globe,
who visit Sydney mostly for business and tourism purpose. It is important for the hotel staff to
maintain same protocol of behavior and communication towards every category of guest. Due to
the fact that working capability of the staff in Hamilton hotel has compromised significantly, it is
essential for the hotel management to provide special training to improve the communication
skills among the workers.
Yu et al., (2014), have added in the context that it is important to provide regular training
to the employees, which can help them to provide improve upon the working skills. The Protocol
of training should be according to the new trends and changes in the hospitality sector. It is
essential for the hotel to make the training regular process an important part of work schedule of
every workers. Personalized form of customer service is it essential in the context of the modern
day hospitality industry. This can help the hotel to provide and fulfill the needs of every group of
customer, nearby ensuring high level of customer satisfaction. The personalized form of service
is necessary at every level of the hotel, which will minimize the chance of any issues that are
encountered by the guests. The management needs to introduce the system performance support,

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which ensures that there is good level of coordination between the working staffs. It is also
possible to make knowledge and information widely available for all the stakeholders of the
hotel, which will ensure that high level of clarity is maintained within the organization.
One of the major issues that are encountered by the hotel is due to the fact that they are
not able to retain customers. Hence, it is essential for the company to incorporate new strategies
related to development of customer relationship, which is believed to be one of the effective to
retain old customers. The building of switching barriers is also one of the effective policies that
can be incorporated in this context (Gummesson et al., 2014). There need to be a proper system
within the hotel, where all the guests are able to provide valuable suggestions and feedback about
the service quality of the hotel and the area that need to be improved. As every guests leave the
hotel, they should be asked to rate the overall service quality and experience of the hotel
depending upon various parameters, which will include behavior of the staff, swiftness of the
service provides and overall quality of the room and food service. With the help of better level of
accurate service, it is possible to quickly fulfill the needs of the customers.
Modifications in the marketing plan also can be incorporated by the company to deal with
the external changes in the business environment of hospitality sector. Leung et al., (2017), have
mentioned about the importance of using marketing mix elements in this context that can help in
the matters dealing to subject modification. In other words, it can be said that the elements of the
marketing mix help to change or modify the marketing plan of a business organization depending
upon the external environment of business. The hospitality service that is provided by Hamilton
hotel is one of the major sources of income. The hotel also provides the food and beverage
service that also needs to be modified accordingly to deal with the changes. The pricing strategy
also needs to be modified accordingly, which is also one of the important criteria. It is important

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for the hotel to bring about changes within the pricing strategy that can help them to gain
competitive advantage. However, it is also essential to ensure that with the help of the pricing
strategy that can help to maintain the high level of profit for the organization.
It is also important to bring about changes within the promotional techniques, which need
to be modified by incorporating Digital form of marketing. The company needs to improve upon
their technological infrastructure, which can help them to incorporate e-commerce business.
With the help of highly developed website, it is possible for the company to encourage advanced
online booking system. The main place of operation of business of Hamilton is within the place
of Sydney. However, in order to capture the opportunity of high rate of growth in hospitality
sector, it is important for the hotel management to incorporate new branches in other areas in the
exterior part of Sydney. Are the important part of the promotional strategies that needs to be
incorporated is to initiate digital form of communication. This will enable the customers to easily
communicate with the hotel staffs in order to complain about any issues. It will be also possible
for the hotel staff to provide valuable information to the guests, during the time of their visits
(Leonidou et al., 2013).
The formula for social media marketing can also be incorporated by the hotel
management, which will help them to ensure better level of connectivity with the will of the
society. It will also be possible for the guests to provide valuable positive feedback in the social
media platforms, which can help to improve upon the reputation of the hotel.

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Conclusion
In the concluding note, it can be said that in spite of being one of the reputed Hotel of
Sydney, the Hamilton is currently facing issues due to poor service quality. The management of
the hotel has also feel to bring about changes that is necessary to sustain in the hospitality sector
of Australia.
It is important for the hotel to bring about organizational changes at various management
levels, which include changes in the marketing plan and overall service protocol. Incorporating
new techniques of communication is one of the major changes that the hotel needs to
incorporate. This can be incorporated to advanced level of training that is provided to the hotel
workers. Changes in the marketing plan can be effective by modifying the elements of marketing
mix that includes changes within the pricing strategy. These techniques will ultimately help the
hotel to retain customers by establishing a healthy relationship.

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References
Goh, E., Goh, E., Nguyen, S., Nguyen, S., Law, R. and Law, R., 2017. Marketing private hotel
management schools in Australia. Asia Pacific Journal of Marketing and Logistics, 29(4),
pp.880-889.
Gummesson, E., Kuusela, H. and Närvänen, E., 2014. Reinventing marketing strategy by
recasting supplier/customer roles. Journal of Service Management, 25(2), pp.228-240.
Leonidou, L.C., Leonidou, C.N., Fotiadis, T.A. and Zeriti, A., 2013. Resources and capabilities
as drivers of hotel environmental marketing strategy: Implications for competitive advantage and
performance. Tourism Management, 35, pp.94-110.
Leung, X., Bai, B. and Erdem, M., 2017. Hotel social media marketing: a study on message
strategy and its effectiveness. Journal of Hospitality and Tourism Technology, (just-accepted),
pp.00-00.
McManus, L., 2013. Customer accounting and marketing performance measures in the hotel
industry: Evidence from Australia. International Journal of Hospitality Management, 33,
pp.140-152.
Sydney Hilton, (2017). About the Hilton Sydney Hotel | Central Sydney Hotel, Australia. [online]
Hiltonsydney.com.au. Available at: http://www.hiltonsydney.com.au/about-our-hotel [Accessed
8 Oct. 2017].
Yu, Y., Byun, W.H. and Lee, T.J., 2014. Critical issues of globalisation in the international hotel
industry. Current Issues in Tourism, 17(2), pp.114-118.

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Appendix
Appendix 1:
Appendix 2:

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Appendix 3: