Service Marketing for The Grace Hotel in Sydney

This report provides an overview of the services offered by The Grace Hotel in Sydney, including core, supplementary, and augmented services. It also includes a service blueprint and analysis of physical evidence, employee actions, customer actions, and support processes.

Running Head: SERVICE MARKETING 1
Service Marketing

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Table of Contents
Introduction.................................................................................................................................................3
Company Description..................................................................................................................................3
Service Offering Diagram.............................................................................................................................3
Core Services...........................................................................................................................................4
Supplementary Services..........................................................................................................................4
Augmented Services................................................................................................................................4
Service Blueprint.........................................................................................................................................5
Physical Evidence.....................................................................................................................................5
Employee Actions....................................................................................................................................5
Customer Actions....................................................................................................................................5
Support Processes...................................................................................................................................6
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7

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Introduction
Service marketing is a field of marketing that follows exclusive characteristics of the services
and different strategies which are required as compared with the marketing of physical products.
It includes the marketing of different services by using different tools and techniques (Lovelock,
Patterson & Walker, 2015). This report is focused on providing the overview of the services of a
hospitality service organization in Australia i.e. The Grace Hotel. It includes the discussion about
different services offered by this hotel. The services of hotel are categorized in three categories
like core, supplementary and augmented services. Moreover, a service blueprint is drawn by
focusing on service delivery process of this hotel. Service blueprint is the visual presentation that
includes all the activities and associated parties in that delivery process.
Company Description
The Grace Hotel is one of the luxury hotels that are situated in Sydney. This service organization
is engaged in offering luxury accommodation services with an indoor pool, child care, free Wi-
Fi, rooftop terrace from where people can enjoy the excellent views of Sydney. It is located in
Sydney Central Business District Royal that is within 5 minute walk of Theatre and Pitt Street
Mall. Westfield Shopping Centre and Queen Victoria Building are also within 10 minutes. Thus,
it is located at center of the city that is easily approachable from major destinations of Sydney.
Along with the café, this smoke-free hotel has a pool and fitness center also. It has 382 rooms
and provides different amenities like coffee makers, fridges, minibars, LED, newspapers, free
Wi-Fi and room service for 24 hours (The Grace Hotel, 2018).
Service Offering Diagram
Service offering diagram is a diagrammatic presentation of different services which are offered
by a service organization to its potential customers. This diagram includes three types of services
i.e. core services, supplementary services and augmented services. In Sydney, The Grace Hotel is
offering different types of services effectively, so that it can provide complete satisfaction to its
guests (Xu and Gursoy, 2015). Service Offering diagram for The Grace Hotel is drawn below:

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Core Services
Core Services are the basic forms of hospitality service. To understand it clearly, it can be stated
that core services are the major reasons for the customers buying from a business. As mentioned
in the above service offering diagram, the core service offering of The Grace Hotel is the hotel
rooms where the customers can stay for one or more nights. Under this, this hotel has 382 rooms
which are available in different categories like signature deluxe room, premium king, Deluxe
king room, superior twin room, deluxe twin room and junior suite. Thus, guests can avail the
rooms according to their budget and requirements (Lovelock, Patterson & Walker, 2015).
Supplementary Services
Supplementary services are the services which are offered by any organization as additional
services along with the core product. These services are provided by the business to gain
enhanced competitive edge in market. In Sydney, The Grace Hotel offers various supplementary
services like online reservation, baggage services, free internet, room service, indoor pool,
fitness center, minibars and business center for meetings etc. This hotel provides these services
which support the guests to avail its core services i.e. accommodation and hospitality (Byrd, et
al, 2016).
ReservationBaggageServiceRestaurantIndoorPoolRoomServicesFreeInternetBusinesscenterformeetings
Core Service
Accommodation
for one or more
nights with a
bathroom
Interaction
with Guests
Supplementary Services
Relaxed
environment
Guest
Support
Exterior
Designs
Augmented services

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Augmented Services
Augmented services are the non-physical part of the core service of a hospitality organization.
Generally, it includes the lots of additional value to the primary service of The Grace Hotel. At
The Grace Hotel, augmented services are such as customer support service for guests, guest
feedback, interaction with the guests, relaxed environment in hotel rooms and well-behaved
interaction with the guests (Bitner and Wang, 2014).
Thus, all the above levels of products make a perfect combination of service delivery process at
The Grace Hotel.
Service Blueprint
Service Blueprint is a visual presentation of the service offering and processes of a hospitality
organization. It showcases different aspects of the hospitality service like physical evidence,
employee actions, support processes and customer actions. Service blueprint diagram for The
Grace Hotel is created below:

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Entrance Cart for bags Reception Registration lobby Elevator hallways Menu Bill counter
-----------------------------------------------------------------------------------------------------------------------------------
The
The.
Physical
Evidence
Consumer
actions
Guest
arrival
Give bags to
bell person
Check-in
to room
Room
Allocation
Go to
room
Leave the
Hotel
Call
room
service
Contact employees actions
(front desk staff)
Greet and
take the bags
Registratio
n process Bag
Delivery
Serving
the food
Generating
the bill
Take bags to
the room Take the food
order
Food
preparation
Billing
counter
Invisible Visible
Supporting process
(back office staff)

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Physical Evidence
At The Grace Hotel, physical evidence consists of all the physical things which the guests can
utilize to affect their perception for delivery of service. It has a huge impact on the service
productivity and quality of hotel. Physical evidence at this hotel includes parking area, cart for
bags, reception, elevator hallways etc. The hotel needs to manage these physical evidences
effectively so that they can attract more guests (Geum and Park, 2011).
Employee Actions
This dimension of blueprint is significant for service performance and quality of The Grace
Hotel. This aspect displays both invisible and visible actions of employees. It has a warm and
welcoming reception that provides a quality imprint to guests. The employees who interact with
guests are out of visibility line.
Customer Actions
This aspect includes the actions of guests who are arriving at The Grace Hotel. The guest arrives
at hotel and goes to the reception for checking in to hotel. The person at reception greets him and
asks his needs for rooms. This dimension is critical because guest perception and satisfaction
level can assist in measuring the success of hotel (Raj and Griffin, 2015).
Support Processes
It indicates the actions of non-contact employees which offer supporting services so that they can
deliver quality services to guests. At this hotel, support processes include parking facilities, food
order processing, billing counter etc. These play an important role in meeting the expectations of
guests at hotel (Wilson, et al, 2018).
Conclusion
From the above service analysis, it can be concluded that each and every service organization
needs to categorize its services in three levels core, supplementary and augmented services. The
Grace Hotel is offering luxury accommodation services in Sydney and attracting more customers
by focusing on its supplementary services. Service offering diagram indicates that the hotel is
gaining additional competitive edge by offering the above services. Additionally, all the

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processes and actions of employees are managed effectively. Service blue print showcases all the
involved processes of The Grace Hotel.
References
Bitner, M. J., and Wang, H. S. (2014) Service encounters in service marketing research,
Handbook of service marketing research, 221.
Byrd, E.T., Canziani, B., Hsieh, Y.C.J., Debbage, K. and Sonmez, S., (2016) Wine tourism:
Motivating visitors through core and supplementary services. Tourism Management, 52, pp.19-
29.
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.
Lovelock, C., Patterson, P. & Walker, R. (2015) Services marketing: An Asia-Pacific
perspective. (6th ed.). Frenchs Forest, N.S.W., Australia: Pearson, Australia.

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Raj, R. and Griffin, K.A. eds., (2015) Religious tourism and pilgrimage management: An
international perspective. Cabi.
The Grace Hotel. (2018) The Grace Sydney, Available from http://gracehotel.com.au/ [Accessed
from 9 August 2018].
Wilson, A., Zeithaml, V.A., Bitner, M.J. and Gremler, D.D., (2012) Services marketing:
Integrating customer focus across the firm (No. 2nd Eu). McGraw Hill.
Xu, X. and Gursoy, D., (2015) Influence of sustainable hospitality supply chain management on
customers’ attitudes and behaviors. International journal of hospitality management, 49, pp.105-
116.

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