Managing Service Quality in the Hospitality Industry: A Critical Evaluation of Park Avenue Hotel

This document provides a critical evaluation of the main theories and principles of managing service quality in the hospitality industry, with a focus on Park Avenue Hotel. It justifies the importance of measuring service quality and explores the impact of the hotel's current service delivery practices on staff motivation and engagement. The document also discusses service design, service escape, service encounter, and measurement tools like SERVQUAL and TQM.

SERVICE QUALITY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
A critical evaluation of the main theories and principles of managing service quality. Justify
the importance of measuring service quality..............................................................................4
TASK 2............................................................................................................................................9
A critical appraisal of the management of service quality for the given service organisation in
the case study, establishing the impact of its current service delivery practices on the
motivation and engagement of staff............................................................................................9
SERVICE QUALITY......................................................................................................................9
Reasons & improvements.........................................................................................................10
EMPLOYEE'S MOTIVATION AND EMPOWERMENT...........................................................11
HR PRACTICES..........................................................................................................................12
Planning of human resources....................................................................................................12
Job analysis and description......................................................................................................12
Recruitment...............................................................................................................................12
Selection....................................................................................................................................12
Orientation.................................................................................................................................13
Training and development.........................................................................................................13
Compensation and benefits.......................................................................................................13
Performance..............................................................................................................................13
Termination...............................................................................................................................13
TASK 3..........................................................................................................................................13
Customer feedback system........................................................................................................13

CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
It becomes very important for organisations to provide high quality services to their
customers. With the changing dynamics of the external environment and the way there is
increasing competitiveness of the industry there has to be a in depth analysis that has to be
conducted of the services quality expectations of customers. There has to be a a detailed analysis
of the service quality aspects in order to make a evaluation of the customer expectations so that
organisation can achieve a Competitive advantage (Nair, and Choudhary, 2016). Present report is
based on park avenue hotel that is a 4 star rating hotel having its operations and business
practises in central London. They are having their operations since year 2005 and they are having
presence close to bond street station. This hotel consist of different stylish and modern en suite
rooms. It is having a the target segment of both business and leisure guest. They have recently
worker on updating their reception area, restaurants & rooms. With the development of
banqueting suites and conference there has been a enhancement in event bookings and rooms.
Whilst profits have also increased this is leading to better reviews on sites of trip advisor.
Present report is based on making a critical evaluation by application of relevant
principles and theories for management of service quality by the hospitality brand and then
further justification of the way service quality has to be managed. Apart from this there is a
critical appraisal of the management of services quality for the present service organisation that
is Park avenue hotel to analyse the present service delivery practises according to the
engagement and motivation level of their whole workforce. After making a critical analysis of
such topics there is production of a customer feedback system for Park avenue hotel that can be
utilised for the objective of monitoring and improvement of the present services quality system at
park avenue hotel as a part of the hospitality industry.

MAIN BODY
TASK 1
A critical evaluation of the main theories and principles of managing service quality. Justify the
importance of measuring service quality. Conceptual understanding of service quality through relationship
between Customer perception, expectations, satisfaction, business
performance
Customer satisfaction is a subject of great interest for organisations and researchers. The
main objective of organisation is to maximize the profitability and minimization of cost. Profit
maximisation can be achieved with higher sakes and least cost, one of the major f actors that can
lead to achievement of higher sales is the increased customers satisfaction that leads to building
up of customer loyalty, recommendations and further there is repeated purchases (Benavides-
Velasco, Marchante Lara, and Quintana García, 2017).
Customers are becoming very vital in the are of business from the view of operations
management it is obvious that customers are playing a crucial role in improving of the overall
organisational process.
Customer expectations it encompasses everything that a customer is expecting from the
service, product and a organisation. Customer expectation are created in minds of customers
according to individual experiences and their learning insights according to pre exiting
knowledge and experiences. In context with park avenue customer expectation is encompassing
everything that a customer expects from service, product or the organisation. It is created in
minds of cumbersome based on the both implicit and explicit expectations regarding the product
or the services that they have purchased (Libkovska, Vasilevska and Ozola, 2019). The
performance expectation lead to creation of a dynamic element because of anticipation of
changes over time. They may also posses service level expectations and interpersonal
expectations that is related to building of customer relationship with the park avenue hotel.
There are some of the factors that are affecting customer expectations such as previous customer
experience, customer communication, reviews and word of mouth.
Customer perception is regarded as the customer opinion of the business and products. It
is summarizing the way customers are feeling about a particular organisation. By monitoring of

the customer perception there is spotting of the common errors so that there can be further
improvement of the overall customer journey.
Measurement of customer perception in Park avenue hotel requires to gathered a variety
of data both in qualitative and qualitative form. There are some ways that can be adopted for
improvement of customer perception such as looking inward, striking an emotional chord with
customers, leaning on use of a positive language, commitment to consistence, filling of haps
before they become more evident, breaking down of the data silos and last step is taking of
timely customer feedbacks.

Gap model of service quality
For the purpose of analysing the service quality there is use if effective model that is a
service quality model which is very crucial to develop a detailed overview of the customer
satisfaction gap. This model has been developed in the year 1985 by A. Parasuraman, Valarie
Zeithaml and Leonard L. Berry. The main objective of this model is to determine the gaps in
service quality that has to be according to organisation and customer expectation, the gap model
of service quality is very significant to determine the five major types of services gaps. This
model is used for the purpose of understand of the customer perceptions and the way it is
affecting the level of customer satisfaction (Al-Dhaafri, Al-Swidi, and Yusoff, 2016). This
model is applied in the present context of Park avenue to determine the gaps between the
customer expectation and quality of services.
Gap 1 – Knowledge gap
it can be described as the differences between customer expectations services and
provision of a organisation that is providing to services. Knowledge gaps is occurring because of
management of the respective organisation may not be aware about the customer requirement
and customer expectations. Because of the lack of knowledge the organisation may not be able to
meet the demands of customers and can result into higher dissatisfaction of customer.
Gap 2 – The policy gap
The policy gap is regarded as the gap between understanding of customer needs and
then translating it into services according to standards and policies. It is a gap that is part of
organisation and occurs because of lack of proper customer services standards. In park avenue
this gap may occur if there is poorly defined level of services and no updation of service level
standards.
Gap 3 – The delivery gap
It is a gap that is part of differences in delivery of services policies and standards of
company to deliver actual services to customers. The delivery gap increases with the
organisation not capable of successfully delivering the services according to company standards.
In Park avenue this situation may generally occur because of
Gap 4 – The communication gap

It is a gap that is present in the quality of services because of the incapability of the
organisation to provide services, if a organisation is not able to meet the expectation of the
customers by not bale to successfully develop communication channels with them then it results
into higher communication gap (Prakash, 2019).
Gap 5 – The customer gap:
It is a gap that is occurring areas of differences in customer expectation and
perceptions of customers with regards to the services of customers. The customer haps enhances
as organisation is not able to develop insight of customer expectations and there is high
interpretation that exists between the organisation and the customers. Service quality management through
1. Service design: Service design basically articulate the plans for organising of people,
infrastructure and materials that are used in a organisation for the purpose of
improvement of the abilities to provide their services and enhance the satisfaction of
customers. Service design is a holistic process that is looking for involvement of people,
products and the environment in which they are working (Liu, W Lee and Hung, 2017).
In Park avenue there is understand of the customer touch pints, consideration of such
touch pints for high customer engagement, interaction with customers and analysing how
the changes are affecting the business design.
2. Service escape: Services escape is defined as the physical environment where services
can take place, it is used for making a detailed analysis of identification of the impact on
environment based on industry. Service escape is a model that is explaining the customer
behaviour in the service environment. It is a popular concept that in case of Park avenue
is focussed on spatial layout, symbols, signs and artifices, ambient conditions that are
affecting the customer preferences.
3. Service encounter: Communication is the service encounter that is determinant of the
effective interaction between the hotel staff and the customers. In Park avenue the service
encounter comprises of process and task. It is part of social interaction that is taking place
between the organisation and the customer. The results from this interaction assist in
determination of the satisfaction level that has been achieved by customers.
4. Service quality measurement tools

 SERVQUAL: SERVQUAL model is developed to analyse the quality system that is
part of field product quality. With time it has become more important to improve the
quality of services especially for hospitality industry (Tuncer, Unusan, and Cobanoglu,
2020). There are certain element of this model that are used for the purpose of
determination of Customer responses as mentioned below:
Reliability: It depicts the ability to provide adequate services according to higher
credible and time. It requires higher consistency for implementation of services and
respecting of commitment made to customers.
Responsiveness: It is a criteria that is ensuring the ability to solve the problem and then
dealing with customer complaining effectively so that there can be meeting of customer
requirements.
Tangibles: in Park avenue tangibles includes the equipments, mechanism facilities, staff
attitude, front office department, quality of services. These are part of the physical
facility, personnel communication and communication impact on customers.
Assurance: It is a element that is creating credibility & trust for customers that is
considered through adoption of professional services, attitude courtesy, effective skills of
communication and technical knowledge so that target segment of Park avenue could
believe in high level of firms services (Keshavarz and Jamshidi, 2018).
Sympathy: It is a attitude that is related to consideration, caring and preparation of
customers so that they are not treated as clients but as guest. This element is very crucial
in case of park avenue as they are part of the hospitality industry.
 TQM: The overall concept of TQM is focussed on achievement of business excellence,
hospitality management is a very crucial tool where the most important aspect os
achievement of higher guest satisfaction, so that there can be higher competitive
advantage to ensure a repeat patronage. In Park avenue there is TQM approach that is
used for managing from the overall guest expectations. There has to be timely analysis of
guest expectations, customer complaints so that there can be adequate guidelines that can
be used for devising of a methodology (Alshaibani and Bakir, , 2017). This process is
associated with alignment with overall organisational goals at different levels such as
senior management, middle management and the operational levels.

 FEEDBACK: The hospitality industry is input pleasing of customers and analysing their
requirements. There has to be timely collection of feedbacks according to respective
direction that has to be further improved. It leads to maintaining of appreciative qualities
by Park avenue (Domanski,, 2020). There has been development of customer feedback
application to customer surveys and then further make its evaluation. It leads to
measurement of customer satisfaction so that there can be enhancement of hotels overall
performance. It will lead towards retention of customers so that hotel feedback system
can be used for gathering of surveys. For Park avenue all this will lead to building up of
heir brand image.
 SURVEY: survey is a technique that is used by the management of hotels for the
purpose of analysing the requirements of future target segment of customers. There is
used of a sample questionnaire as a technique for the purpose of collecting information
from their target market. This technique is used by park avenue where there is understand
of customer opinion based on different quality of attributes so there is retaining of
following attributes based on most recent experiences (Hamari, JHannerand Koivisto,
2017).
TASK 2
A critical appraisal of the management of service quality for the given service organisation in the
case study, establishing the impact of its current service delivery practices on the
motivation and engagement of staff.
The Park Avenue Hotel is a 4-star hotel which has been established in London since
2005. In context to the service quality of this hotel after the development of the conference and
banqueting suites, there can be seen that there is declining in the graph of the service quality
(Cocaña-Fernández and et. al., 2019). Here as a service quality consultant there is need of some
improvement in the service quality, employees motivation and some HR practices or staff
turnover which can be helpful in the taking back the expected standard of the Hotel.
SERVICE QUALITY
According to the given case study, it can seen clearly that due to the development in the
conference and banqueting suits, they have rises the charges by 100%, which makes them more
responsible for giving the better quality service to their guest or customers. After paying such

high cost and due to hotel brand image, customer expects the high quality service within time.
After getting less than their expectations quality service they are not like to take it easy because
they come for that one (Hanukov and et. al., 2018). Hotel is having the great facilities but due to
their poor services like long waiting time, busy front desk makes their customer less tolerant. As
a service quality consultant, there are some recommendations which is need to be follow for
better quality service. The improved service and better service quality is the key of increasing the
brand value and so the customers.
Reasons & improvements
Expectation of the customer became high due to increase in the cost or price for their
services. So they want their proper services to get satisfied. And they only can be satisfied when
they get what they pay for. So the Hotel management department should improve in their quality
service on their time.
Due to increase in the services and not recruiting the adequate number of personnel by
HR department causes the lapses the shortage of staff which subsequently resultant in decreases
in quality service. Adequate number of staff are needed for the proper service at proper time.
Long waiting time for getting any of the services of the hotel is kind of irritating for the
customer which can improved by introducing their services to the customer as per standard time
which can be fast or prior to the time (Hendhana and et. al., 2017).
Busy front desk shows both the positive and negative aspect for their hotel. Positive in
such way that the hotel is in demand and people comes there which a sign of having a good hotel
for their services. Negative in such way that they took lots of time or they don't have high
number of counter for the welcoming their guest or customer. Such problem should be solved by
getting proper number of counter or for the front desk work.
Loss of confidence in staff can also be cause of delivering the less quality services
because staff has made a perception in their mind that there is no ownership, not even cared for.
This can be improved by making good relationship with the employees and administration (Lee
and et. al., 2017).
These are some of the reasons which are causing the bad effect on the service quality and
such suggestion are there which can help them out in improving the service quality.

EMPLOYEE'S MOTIVATION AND EMPOWERMENT
To motivating the employee's can be a way of bringing empowerment in any business or
any organization. Empowerment refers here for the feelings of the employee to be effective and
in control. In this new time, many of the organisational authorities gives the power for decision
making on their own which resultant makes the good result and employees feels empower and
get motivated that makes a strong feeling that they and their opinion have their place in that
organization. Maslow's model can easily defines the motivation theory. This theory tells that
there are five basic needs that is Physiological need, safety need, social need, self esteem need
and self actualization needs. The Physiological needs are the basis need such as food, air, water,
shelter, basic facilities at the working place etc. which can be fulfilled by the organization. Here,
in The Park Avenue Hotel there is availability of the physiological need. The hotel is not
providing the handsome salary to their employee and due to part time job they are not satisfied.
Second need is the safety need. In this employee should be provided the personal security, health
insurance, financial security etc. Due to high brand value there hotel fulfilling their employees
safety need. Third need is the social need. In which love and belonging or acceptance are
included (Ahmad and et. al., 2017). They are important for the employees so they can't feel the
loneliness, isolated & depressed. Family, friends and colleagues all work to fulfil l the social
needs. According to the case study here is communication gap exist either due to busy schedule
of the hotel, or due to not appreciating the employees hard work. The fourth need is the Esteem
need which refers to the need of self-esteem and respect. Where self-respect is more important
than gaining respect from others. Here, due to not appreciated by the higher authority for their
hard work there is chance of feeling insecurity related to the esteem need which can be resolved
for boosting their employees motivation, The the last one but not the least is Self-actualization
need. This tells about the individual potential. Having the ability of what they are capable for
doing. Here, due to lack of this need they are not providing their best to the customer by
providing their services (Farouk and et. al., 2017).
Such that the employees need to be empowered for the increases in the motivation level.
This model can help the employee to get motivated which can helpful in increasing the service
quality. Here, in the hotel, the staff are giving their best and due to lack of motivation,
management need to motivate them by applying the monetary rewords which will help them in
finance problem and this can easily motivate them as per the given scenario.

HR PRACTICES
The HR implies to the human resource. Hospitality refers to the dynamic industry where
hotel full fills the high requirement. HR department struggle with numbers of issues at the same
time, which can be said to tip to toe. It is fact that no business can meets the success by a single
person, it requires a good team or say group of talents. Some of the good HR practices includes
the low staff turnover, higher employees satisfaction level, superior customer service and
increased in the profitability (Das and et. al., 2018).
 Staff turnover is getting higher in this hotel which is not a good sign for the hotel. Lower
staff turnover shows the effect of good HR policies.
 According to the case study, Higher employees satisfaction level is also absent which
need to be present here for providing quality service to the customer.
 Superior customer service is also not available in this hotel within last six months, which
can be easily verified through the reviews of Trip advisors and Hotel's Facebook page.
 Profitability of the hotel is increased in this hotel after development of the conference and
banqueting suite.
There are some functions of HR departments which includes-
Planning of human resources
By using the job analysis and strategy plan, they have their prediction for the future for
the business. They can forecast the short and long term staffing need. Which can fulfilled with
their strategy and thus they can meet those needs.
Job analysis and description
It is used to define the task as well as responsibility as per the qualification and the post.
Job description refers to the resulting document of the job entitlement.
Recruitment
It is the process for searching the talents for hotels. It is done by using the different
methods.
Selection
Selection is a HR process. It is used to hiring the best talent into the position for which
they suits the most.

Orientation
Initial introduction of the hotel is provided to the new employee for the positive
impression.
Training and development
These are required for the development of the skills and knowledge. Which helps to
perform well for current position or for advancement (Parvin and et. al., 2016).
Compensation and benefits
Hotels need to determine appropriates types and clear about their incentives including
wages and all types of benefits.
Performance
On the basis of employees work performance, providing the feedback can help in the
encouraging and supportive environment.
Termination
HR needs to manage the process of their employee leaving the hotel, due to any cause or
termination.
Such type of functions are done by the HR department which can keeps the running of
the hotel smooth.
According to the given paragraph of the case study it can be said that as a Service Quality
consultant there is need for some improvement in the implementation of the services and some
add-on should be done for the better service quality of the hotel to meet the previous or expected
standard. Which will also gives the value for the money to their customer and which will able to
maintain its 4-star rating of the hotel.
TASK 3
Customer feedback system
It is crucial for hospitality industry brands that they have to manage the process of
customer feedbacks so that there can be achievement of objectives. Customer feedback
management is part of maintenance of customers for a longer period of time (Tseng, 2019). It is
a centralized tool that is adopted to ensure that core complaints of customers are timely
addressed with proper suggestions and addressing of requires according to the level of services
that are offered to them.

There are various tools that can be used by the management of park avenue for the
purpose of taking timely feedback of customers. In present scenario, there is analysis of three
major tools that can be taken intro considerations by Park avenue to make a evaluation of the
customer satisfaction level and their responses to different types of identified services.
1. Interviews: There can be direct interviews form of method which can be used by
Park avenue for the purpose of making a detailed analysis of the customer
satisfaction level. In this there are certain aspects that has to be considered which
includes telephonic conversations where a direct interaction can take place
between the interview and the customers. Several questions such as past services,
best services, worst aspects of hotel, future improvement areas can be asked to
customers so that there can be a critical analysis require that can be collected from
the customers.
2. Questionnaire: It is a method of primary information collection that is based on
use of both qualitative and quality approach of collecting the information. In this
method there are a series of questions that are developed according to the areas
that has to be analysed by the management of park avenue. Such questionnaire
can be filled by the customers either by use of online mediums that is on various
social media applications, on company's website or offline mediums when the
customer is making actual its and there has to be a evaluation of post purchase
expectations & customer insights (An, Suh and Eck, 2019).
In the present situation there is a sample questionnaire that is developed which can be use by
park avenue for the purpose of making a detailed analysis of their achieve level of satisfaction:
Questionnaire
1) Have you visited Park avenue first time or it has been a repeated visit?
 Repeated
 First time
2) Do you feel that park avenue is able to meet your expectations successfully?
 Yes
 No
3) What has been the most attractive part of your visit?

 Hotel services
 Behaviour of staff members
 Management was available to solve all the issues
 room services and food quality
 Any other
4) Was the checking in and checking out carried on smoothly without any type of operational
issues?
 Yes
 No
 There were some issues
5) How would you rate your overall experience at Park avenue?
 Good
 Excellent
 Poor average
 Can be improved
6) Any further suggestions you would like to provide to the management of Park avenue?
…............................................................................
3. Comment cards: The traditional form of comment card is basically a paper and
pen printed collateral predominant method that is used for the purpose of
analyzing of feedback from hotel guests across world. It is one of the commonly
used tools as a feedback channel by guest. In Park avenue this Method can be
effective used for the purpose of facilitation of communication between the
management of hotel and guest for improvement of guest expectations. It is used a
communication facilitator as determined by various factors. It is also a
opportunity for hotel guests to make a comment on the service quality (Zhou and
Zhang, 2019). In present times with the use of digital media applications there
has been a complete shift in the way customer feedback is obtained. It helps in
analyzing the features of customer services that are offered to customers. Such as
there is use of social media applications that have been developed for the purpose
of understand the comments

From the above mentioned some of the ways that can be used for getting customer feedback. In
this there has to be a detailed evaluation of the customer response according to the way customer
feedback has to be analyses. There are both positive and negative feedback that are generally in
the form reviews and star rating according to which a particular analysis is made by each
prospective customer before visiting the hotel. It provides them with timely insights of the
customer services that are part of the hospitality industry.

CONCLUSION
From the above discussed scenario it can be said that there are various types of principles
and theories that are used by organisations for the purpose of managing the services quality. It is
used for analysing the level of services so that there can be achievement of competitive
advantage. There are many different types of ways that can be used by organizations for
analysing the customer reviews and feedbacks according to the prospective customer demands.
With the changing external environment there has been shift in the tools that are used for
analysing the customer responses and customer behaviour. Such as there is use of applications
such as Facebook, Instagram, trip advisor for the purpose of analysing the reviews provided by
customers. The focus has to be on improving the engagement level of staff members and
customers in order to maximize their contribution towards laid objectives of the organisation &
higher customer satisfaction.

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