Service Quality Evaluation Through Satisfying Customers in Tourism, Hospitality & Events Industries

This document evaluates the use of quality management tools like Six Sigma and JIT in the tourism, hospitality, and events industries. It discusses the benefits and drawbacks of these techniques and explores how they can influence staff behavior. Contemporary examples from the international tourism, hospitality, and leisure industry are also analyzed.

Service Quality Evaluation Through Satisfying
Customers (both internal and external) in Tourism,
Hospitality & Events Industries
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Table of Contents
Introduction................................................................................................................................3
Describe and critically evaluate the use of quality management tools......................................4
Use and analysis of Six Sigma...............................................................................................4
Application of Six Sigma and analysis..............................................................................4
Instances of Six Sigma application in the tourism and hospitality industry around the
globe...................................................................................................................................5
Use and interpretation of JIT.................................................................................................5
Identify the benefits and drawbacks of using these techniques.................................................7
Benefits of Six Sigma..............................................................................................................7
Challenges of Six Sigma.........................................................................................................7
Benefits of JIT........................................................................................................................8
Challenge of JIT.....................................................................................................................8
Draw upon relevant academic journals and literature to enhance the understanding of how
quality management techniques can influence staff behaviour in the workplace......................9
Cite and analyse contemporary examples from within the international tourism, hospitality
and leisure industry..................................................................................................................11
Identify areas for improvements to increase employee satisfaction and quality service.........13
Conclusion................................................................................................................................15
References................................................................................................................................16
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Introduction
Tourism, hospitality and event management industries have withstood various changes over
the past few years due to the international expansion of tourism, changing patterns in
consumer preferences; both internal and external, industrialisation, development of aviation
and transport and others. This has carried paradigm shifts in the operations and functions of
the hospitality industry. The demanding consumers and an augmented sense of consumer
satisfaction led to the application of new quality management parameters assembling
hoteliers to use quality management tools as a useful aid. During the past years, there is a
remarkable change experienced in the hospitality and tourism industry, and the core reason
being is Service Quality. () have outlined that service failure can have significant effects on a
company because consumers frequently change to a new provider when they acknowledge a
service failure. Although, among consumers who face service problems, those who have
satisfactory resolution are more likely to stay loyal to one service provider. Therefore, it is
imperative for a company to identify its consumer's idea of service quality and develop
mechanisms to sustain the quality of services. This study will undergo an evaluation of
existing service quality measures in international tourism and hospitality industry through an
analysis of its impact and theoretical instances of its effects on staff behaviour.
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Describe and critically evaluate the use of quality management tools
Application and analysis of Six Sigma
Six Sigma process is a disciplined, statistical-based approach and continuous development
method for reducing limitations in a service, product or project. This management tool
focuses on identifying consumers’ needs better and reducing defects and waste according to
that (Anbari, 2002). Essential objectives and application of Six Sigma in the tourism and
hospitality industry is described below;
Figure 1: Objectives of Six Sigma
(Source: Anbari, 2002)
Application of Six Sigma and analysis
Figure 2: Connection between Six Sigma application and hotel performance
(Source: Kamar, 2014)
From the above presentation, it has been understood that initial regression analysis that
evaluated the influence of the application of the management tool (as autonomous variable)
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on the operational effectiveness of the hotels (as dependent variables) is statistically
significant ("p-value= 0.00 and R 2 =0.287") (Kamar, 2014). Outcomes also reflected that
another reversion evaluation that examined the influence of the application of six sigma and
operational performance on the competitive effects of the hotels is also statistically valuable
("p-value=0.00 and R 2 = 0.361"). All outcomes are exhibiting the fact that competitive
excellence is directly impacted after application of Six Sigma ("β =0.545"). Contrasting to the
prior results, operational significance does not directly influence competitiveness
performance, but indirectly over its important connection with the application of Six Sigma
(Kamar, 2014). At last, the outcomes exhibit that the third regression examination that
evaluated the influence of the application of the management tool along with operational
performance and competitive excellence on the economic performance of hotels is
statistically valuable (“pvalue=0.00 and R 2 =0.224”).
Instances of Six Sigma application in the tourism and hospitality industry around the
globe
For example, the Starwood properties have a well known six sigma council, which manage
and prioritise projects. Current projects have then proceeded around additional features. This
management tool has been emphasised in "Career Paths" at the hotel as reporting to the
divisional leadership and associated with that section’s objectives and priorities (Marx,
2019). On the other hand, the Malaysian Hotel sector is focused on developing and adopting
three significant components of six sigma, such as shared vision, teamwork and process
control statistically (Johanudin et al., 2017).
Intense competition has been a feature of the tourism industry for
Some time, and this has led to the development of sophisticated business
Operation strategies. However, the hotel sector has traditionally been
Slow to adopt these innovations [5,6]. O’Mahony et al. [7] notes, for
example, that instead of improving service and developing distinctive
products that satisfy the needs of their customers, hotels tend to
concentrate on improving revenue through increased sales, generally
by lowering prices.
Intense competition has been a feature of the tourism industry for
Some time, and this has led to the development of sophisticated business
Operation strategies. However, the hotel sector has traditionally been
Slow to adopt these innovations [5,6]. O’Mahony et al. [7] notes, for
example, that instead of improving service and developing distinctive
products that satisfy the needs of their customers, hotels tend to
concentrate on improving revenue through increased sales, generally
by lowering prices.
Use and analysis of JIT
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Just in time management has a connection with the labour demand, labour force management,
labour supply in the hospitality industry, especially in the hotel sector. Current investigations
on the characteristics of the hospitality industry and demand variation in the hotel industry
assists in comprehending the fluctuated nature of hotel staffing operations. On the other hand,
Lai and Baum (2005, p. 96) have stated that to achieve the capability to adjust in response to
changing and uncertain results in hotel functions, numerical and functional labour flexibility
policies and significant impact or drawbacks of applying these approaches need to be
reviewed. Finally, the limited lead time between supply and demand accords with the
principle of the JIT system, in terms of Zero inventory, waste management and quality. Many
tools would also describe how to develop the success of just in time management like the
"kanban pulling system and keiretsu supply chain cooperation”.
Figure 3: Change in Demand in the Hotel industry
(Source: Guchait, 2019)
Figure 4: Change in Supply in the Hotel Industry
(Source: Guchait, 2019)
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Identify the benefits and drawbacks of using these techniques.
Benefits of Six Sigma
Application of six sigma in the tourism and hospitality industry is beneficial in the sense that
it helps workers to manage their time efficiently. It results in an active business and
production workers. The core areas included are performance, learning and accomplishment.
On the other hand, by applying six sigma management in operation, organisations in this
industry could reduce their risks of having unhappy consumers (Antony, Rodgers and Gijo,
2016, p.998). To attain this objective, business administration should concentrate on running
voice through consumers to identify the services that are important to consumer awareness of
satisfaction. By applying six sigma method, an organisation could increase a team of
experienced workers from all levels of the company and each functional section. These teams
work on recognising the processes, which leads a project too long cycles.
Additionally, this quality management tool plays a vital role in any strategic vision. Once any
company has used a created mission statement and made a SWOT analysis, then the six
sigma assists in focusing on the sections of development (Jacobs, Swink and Linderman,
2015, p.250). At last, one of the effective ways to decrease the defect level is to apply six
sigma process to reduce the number of suppliers one business has along with a knowledge of
whether they are planning for a change or not.
Challenges of Six Sigma
It has been accounted for that the decision to go with the process is often an executive choice
and managers find themselves with the order to apply this quality management without
explicit knowledge of how and why success could or would be measured. On the other hand,
to "fast track" the application of the method, often macro master or black belts are permitted
into the company. Frequently, their order is unclear; they do not acknowledge the company,
are a strict advocate of the process and micro staff are not able to challenge the value of Six
Sigma for their projects (Farrington, Antony and O’Gorman, 2018, p.590). Internal
employees are trained in this procedure, but frequently, it is seen that a question of individual
nominating themselves to be trained to arise; there is often lack of pre-screening happen to
become a green belt. This Six Sigma training process does not ensure bad analysists into
effective ones; it merely offers any analyst a toolkit. Additionally, there is frequently no
evaluation for the success of the method within a project. On the other hand, this is almost
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unbearable to access if the quality measurement method added any value and concisely what
benefits were resulted through applying this process.
Benefits of JIT
The "Pull-method" delivers to this smooth production procedure, and this is one of the core
features of the JIT. Under this method, services are provided and organised in each stage only
as they are required at the next step. This system rejects work-in-progress inventory between
the production process in the hotel industry, therefore decreasing chances of waiting times
and related non-added-value costs. This process also prevents excessive wastage due to the
making of poor services, since the result at each stage is reviewed before passing on to the
next level (García-Alcaraz and Maldonado-Macías, 2016, p.65). The Just Time method also
develops multi-skilled employees, flexible service and environment of teamwork. These
things develop the production process to provide the organisation to maintain a competitive
edge by searching for ways to improve its services, attain more effective operations as well as
reject non-added-value costs.
Challenge of JIT
Having to depend on the timeless of suppliers for every order puts an organisation at risk of
delaying the consumers' receiving of services. If through this process, a company does not
meet consumer expectations, they could take their businesses elsewhere that would have a
significant influence on the market if this occurs frequently. With JIT inventory management
in hotel industries, it is imperative that organisations acknowledge their sales trends and
alterations in close detail. Most of the organisations in the hospitality industry have a
seasonal sales time, suggesting a variety of services would require a higher stock level at
specific times of the year due to excessive demand (Edmonds et al., 2018). Therefore,
managers need to factor that into the preparation of inventory levels, making supplies are
capable of meeting various needs at different times.
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Draw upon relevant academic journals and literature to enhance the understanding of
how quality management techniques can influence staff behaviour in the workplace.
Modern studies and Japanese work process reviews of total quality management based on
perceptions like process over results, group subtleties on distinct performance, continuous
change as a part of recognised reality, brought workers closer to companies' issues. Employee
participation gain importance, as an act of authorising them to participate in the decision-
making process and feel an interesting part of the process gained importance (Sathishkumar
and Krthikeyan, 2014). On the other hand, it has been seen that as professional firms moved
from trade and industrial industries to service industries such as hospitality and tourism, the
scale become developed. Companies become flattered, making working situations more
complicated, therefore making worker behaviour management more critical. In this type of
scenario, worker engagement and behavioural began to take on an entirely new meaning.
Achieving the lower level of needs in Maslow's hierarchy of needs is not enough anymore to
retain workers, but delivering the higher order of needs is considered as the critical need of
the hour. Workers due to quality management processes and requirements for all time
inspections, engaging themselves into work more than before, hence maintaining work-life
balance has become more critical. Notable, employee engagement and behaviour in the
workplace can be address as trust, justice, equality, credibility and fairness, which poses them
closure to the organisational management (Sathishkumar and Krthikeyan, 2014).
Figure 5: Drivers of employee behaviour and engagement in organisational performance
(Source: Sathishkumar and Krthikeyan, 2014)
According to the studies of Carlos, Lourenço and Mendes (2015), companies interested in
developing worker engagement and quality of services can intercede through different
avenues. Quality management processes initiate quality policies through their mission, vision
and goals, which can implant a sense of credibility and confidence in the future of the
company. Leadership management; apart from quality management also holds inclusive roles
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in developing trust and dependency through demonstrating workers that they are valued and
the company is caring about their personal and professional future and wellbeing.
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Cite and analyse contemporary examples from within the international tourism,
hospitality and leisure industry.
As competitions develop in international tourism, the quality management of services
conceives as increasingly significant. Facilities related with relatively high-level
establishments 10 to 15 years ago are currently being required and demanded by consumers
of all levels. The core differentials between institutions come less in the system of physical
attributes and more in the level of product and quality offered. Given the variety of tourism
services, quality evaluation is an individual and challenging task; quality has been defined by
Hill and Busby (2002, p.462), as “to do consistently what you say you are going to do so that
the customer gets what he or she reasonably expects”.
Figure 6: Quality assurances and service attributes
(Source: Hill and Busby, 2002, p.463)
Figure 7: Quality inspection policies
(Source: Hill and Busby, 2002, p.464)
On the other hand, the European foundation of quality control was developed to provide a
standard process to quality management for all the companies operating in Europe to ensure
sustainable quality operations. The "EFQM Excellence Model" has been introduced as a base
of organisational self-assessment (Kapiki, 2012).
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Figure 8: EFQM Excellence Model
(Source: Kapiki, 2012)
A comprehensive report on leading hotels across the globe details the customers' satisfaction
over 1.200 standard levels has proven to be a valuable management tool for developing
overall performance of a company, along with evaluating individual worker performance and
the requirement for core improvements. The report also details the individual consumers'
performance against a database of around 1.500 companies around the world (Kapiki, 2012).
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Identify areas for improvements to increase employee satisfaction and quality service.
Improving employee satisfaction always ensures loyalty from the employee, their hard work,
better motivation and many more. Here are some of the steps that can be taken from the
employer to ensure better employee satisfaction.
The power of control- Having the ability to control the work as well as their schedule can
make a lot of difference. The employer should provide the authority of managing the
program, work environment and many more in the hands of employees. The modern-day
employees have some of the demanding schedules that may exist outside of the work. Many
employees have a sense of apparition towards their boss who understands the work-life
balance. The employer can further boost the employee's morale by giving them the power to
make changes to their workstation according to their preferences (Molina-Azorín et al., 2015,
p.48). Having to create a sense of competition from the employees perspective always
ensures good business. For example, sales competition, faster assignment submission and
many more. It is also a method of providing control to the employees. In the hospitality
industry having such power in the hands of employees can do wonders. They can not only
provide better services but also stay happy and motivated while doing so.
Better commuting methods- According to Taulbut, and Robinson (2015), in UK and US
around 80.5 % of the employees over the age of 16 drive to work. Bad commuting can be a
huge source of unhappiness. It can be frustrating and stress oriented in nature. It is the
responsibility of the employer to make a significant reduction in the commuting stress of the
employees. Making an analysis based on the joining period and ending period of the
employees and determining the traffic situation of the city based on sound data, the employer
can make a much-needed schedule for the employee. In the case of employees having to pay
for their late arrival, can significantly increase the stress level of the employees. The
hospitality industry always stays strict when it comes to timing. However, some of the
company are making a modern solution to the problems — a solution such as providing
carpool and many more.
Encourage social connections
As per Writes Rubin, socialisation can significantly boost the morale of the employees. It is
the duty and responsibility of the employer to find ways so that social relationships can be
created. One of the most natural methods of doing is by conducting celebration during
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festivals and birthdays of the employees. However, socialisation should never be limited to
office hours. It should transcend from the office hours.
Providing quality services in the hospitality industry can significantly improve the overall
business. Therefore, making the quality services available to the consumers should be the
priority of the company. Here are some of the methods that can be applied in the hospitality
management to improve the quality service (Golkar, 2016).
Empowering the consumers to solve the issues of the consumer- perhaps one of the best
ways to improve the quality of service is to make sure that the employees get most of the
powers to resolve an issue. This method can significantly reduce the work stress at the same
time it can improve overall consumer satisfaction.
Taking the feedback from the consumer
Receiving an input ensures the power of the consumers. Encouraging the frontline managers
as well as the agents to make feedback can help in understanding the demands of the
consumers. An opening of a different method of feedback is also very much urgent.
Consumers need more than one way to communicate (Golkar, 2016). On the other hand, peer
feedback is also critical because it can enhance and encourage the overall team.
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Conclusion
Tourism and hospitality industry is considered as one of the busy sectors around the world for
their immense variety of operations and management process. Each stage is designed to fulfil
consumer satisfaction level, and consumer perception of quality control is maintained
throughout the businesses. Need to modify service quality and suggestive methods are listed
and evaluated in this study, which is with their benefits and challenges well explanative of
what should be done in the future. On the other hand, instances of impacts on the internal
staff of the quality management tools are also supported with valuable information. These
facts are helpful in systematically and strategically analysing the entire operating system in
event, tourism and hospitality industry. Some of the points listed in this study are effective to
pint out exact outcomes of quality management procedure in the hotel industry.
Additionally, research of areas for development and quality services for customer satisfaction
are based on current international trends in these industries. Instances of global tourism,
leisure and hospitality management have pointed to the fact that constant mentality of change
is one of the keys to know consumer perceptions and understanding of service quality. There
are no positive results of the quality improvement process, only success depends on current
consumer satisfaction level, but in future, the next level of improvement would be required.
Recommendations on service quality and practice of employee motivation
Currently, it has been seen that Internet marketplace has evolved enough and provides
various opportunities to different sectors and businesses, including the hotel and tourism
industry around the world. Through this process, elimination of space and time limitations
will have a direct influence on the enhancement of global trade that had been impacted by
varied differences in time zones before. On the other hand, A corporate website is an
effective technology and platform for communicating consumers on the Internet and for
developing consumers’ online purchasing experience. One of the significant responsibilities
of current marketing managers is to make sure the organization’s website conforms to the
standard criteria of the business’s customers. One of the effective ways of doing so is to
evaluate the e-SQ of a website on a regular basis.
Developing practices of employee motivation indicates to the management of human
resources strategies in a right direction. Practices of employee motivation should be based on
certain levels. The first level is training and development; main aim of which is to empower
employees with necessary skills with which they will feel capable in the organizations. The
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second level is developing teamwork spirit, which will be solely based on self-awareness and
self-managed. The third level is providing performance appraisal and compensations in a
legal way when they are necessary and when there are worthy employees present at the work
place. The last being effective communication among the employees and between the
management and workers.
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