Service Management Report: Aventure Voyage International - Analysis

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This report provides a comprehensive analysis of Aventure Voyage International's service management strategies. It begins with an executive summary highlighting the importance of service quality for business success and introduces the report's focus on maintaining service quality. The report delves into the company's operating strategy, including value chain analysis, which outlines primary and supporting activities, and the service blueprint, which identifies critical points in the service delivery process. It also discusses the service delivery system, service culture, employee engagement, customer experience, and service employee management. A significant portion of the report is dedicated to quality management measures, particularly the SERVQUAL model, which guides the company in delivering optimal services. The report explores the impact of employee behavior, capacity management issues, and concludes by summarizing the key findings and recommendations for enhancing service quality and customer satisfaction. References are provided for further reading.
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[Service management]
2019
Aventure Voyage
International
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SERVICE MANAGEMENT 1
Executive Summary
Service quality is considered to be one of the most important requirements for the success of
the business. In the case of Aventure Voyage International, the quality of service is very
important to gain the trust and satisfaction of the customer. The intent of this report is to
discuss how the new business will maintain the quality of its services. From the analysis, it
has been analyzed that the business has designed a value chain analysis model under which it
has presented its planning related all the main primary and secondary business activities.
Besides this, the report has also presented the service blueprint of the company that will be
followed to offer services to the clients. Furthermore, the paper has also discussed that the
behavior of the employee is the major factor that can positively or negatively impact the
experience of the customer with the business. In the end, the report has presented a quality
model that is SERVQUAL according to which the business will follow four dimensions of
offering the best services to the client.
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SERVICE MANAGEMENT 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Operating Strategy.................................................................................................................3
Value Chain Analysis.........................................................................................................3
Service Blueprint....................................................................................................................6
Service Delivery System........................................................................................................7
Service Culture...................................................................................................................8
Service Quality...................................................................................................................8
Employee Engagement.......................................................................................................8
Customer Experience.........................................................................................................9
Service Employee Management.............................................................................................9
Quality Management Measures............................................................................................10
SERVQUAL Model.........................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................13
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SERVICE MANAGEMENT 3
Introduction
The intent of this part of the report is to present the operating system and the service delivery
system that will be adopted by Aventure Voyage International to operate successfully in the
Australian market. Under operation strategy, the report is discussing the marketing, human
resource, and operation planning of the business for the promotion and effective functioning
of the business. Besides this, the paper is also focused on identifying the two critical points
that can impact the experience of the customer in the service delivery process of the business.
The report is also presenting the service delivery system that will be adopted by the company
in consideration of its service and products. In the end, the paper is discussing how the
company will manage its employee's satisfaction and what measures it will take to manage
the quality of its services.
Operating Strategy
Value Chain Analysis
According to Mete and Acuner, (2014), Porter’s Value Chain model is generally utilized in
several industries such as production firms as well as industries. However, according to the
Fearne, Garcia and Dent, (2012), this value chain model is not majorly utilized in the sector
of tourism. Therefore, the businesses that operate in this industry create their model of the
value chain in order to gain a competitive advantage. The value chain model is the model that
supports business in identifying the valuable resources of the business in its primary and
supporting activities. The value chain model for Aventure Voyage International is discussed
below:
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SERVICE MANAGEMENT 4
Source [(Jurevicius, 2013)]
Primary Activities
Inbound Logistics
The inbound logistics is all about management of materials and goods that arrive in the
premises of the business (Song, Liu and Chen, 2013). In the tourism sector, the goods and
material that will be hired by Aventure Voyage International are electric vehicles, arranging
legal requirement and licenses. In addition to this, the management of the company will
contact different suppliers like airlines, hotels, etc. for collaborating with the Aventure
Voyage.
Operation
The main operations of Aventure Voyage International are to offer products and services of
the standard travel agency, comprising travel and airfare packages. In addition to this, the
company will offer services like access to top suppliers, and equipment, passport assistance,
accommodation, as well as entertainment.
Outbound Logistics
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SERVICE MANAGEMENT 5
The outbound logistics is all about storing, transporting as well as distributing products and
services to the end-user. The primary pattern of distribution in the industry of travel is to
agent to customer from the supplier. Distribution between the agency and supplier will be
managed by a conference system.
Marketing and Sales
Under the marketing strategy, the business is focused on increasing the awareness of the
services and products among the target audience (Kannan and Choon Tan, 2010). In order to
promote the business Aventure Voyage International, will make use of advertisement, direct
marketing, and digital marketing. These modes of promotion have been selected because in
the initial phase business will require to target a maximum number of the target audience and
inform them regarding the distinguishing services offered by the company.
Service
The Aventure Voyage International is planned to offer its services like travel packages, rental
vehicle series, airline tickets, hotel reservations, rail packages, etc. All these services will be
offered to the individual as well as a group belonging to leisure and corporate clients.
Supporting Activities
Firm Infrastructure
The Aventure Voyage International will have its operations over offline as well as online
platforms. The company has planned to establish its head office in the Hobart, Tasmania of
Australia. In addition to this, the company is designing its website from where customer can
get to know more about the services and book the same. Both the platforms will provide the
best services to the customers by understanding their demand.
Human Resource Management
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SERVICE MANAGEMENT 6
The management of the company has planned to plan a different training program for
providing proper training to the guides who will be hired to take travelers from one place to
another. Under the training sessions, they will be trained on how to interact and make
travelers understand related to location.
Technology Development
Aventure Voyage International will depend on the Computerized Reservation System for the
reservation by the client. This system will allow travel agencies to know quickly about the
demand of the customer.
Procurement
For the procurement of the services and products to offer services to the client, the company
has planned to contact with two airlines who will charge zero commission. In addition to this,
it will contact the suppliers who can provide the best services to the clients such as hotels,
etc.
Service Blueprint
Source [(Blythe Global Advisor, 2019)]
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SERVICE MANAGEMENT 7
The service delivery procedure is comprised of five steps that are planning scoping,
fieldwork/execution, management, reporting, and measurement/feedback. The service
delivery procedure is comprised of two key points that can have a major impact on the
experience of the customer whether positive or negative. The two critical points are the
Planning and Management of the services.
Planning – Planning is all about designing the services and products that will be offered to the
customers to offer them an unforgettable experience (Croy, Gerrans and Speelman, 2010).
Here, the management of the Aventure Voyage International has done the complete planning
that is being presented through a business plan. The planning is comprised of contracting
with the suppliers, taking licenses, etc. If the planning will not be done by considering the
benefit and demand of the customer then it will result in negative experience to the customer.
However, the company has planned the services as per the demand of the customer which
will offer a positive experience.
Management – The management of the services and products is very vital in order to have
increased growth of the business. If the business will not upgrade its services and will not
offer constantly improved services, then the experience of the customer will be impacted
(Grönroos and Ravald, 2011). Besides this, the irregular services will result in impacting the
image of the business among customer and other clients. Hence, the management of the
company has planned to regularly monitor its services and make changes as per the trend and
demand in the market.
Service Delivery System
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SERVICE MANAGEMENT 8
Source [(By Author, 2019)]
Service Culture
Service culture is established within the business on the basis of leadership, working habits,
values, and mission (Service Future, 2019). In the Aventure Voyage International, the owner
of the company will act as the leader who is motivated to establish a disciplined working
environment. In addition to this, the vision of the business is to offer an unforgettable
experience to the customer.
Service Quality
This part of the system is comprised of procedures, strategies, and system of performance
management. The business will offer non-perishable services to the client.
Employee Engagement
Employee engagement is considered as the main requirement for the success of any business
in every industry (Markos and Sridevi, 2010). In terms of the tourism industry, employee
engagement is one of the critical parts as they are the one who stays in direct contact with the
clients such as guides. Hence, it is very important to engage these employees in the decision
Service Management
Service
Culture
Service
Quality
Employee
Engagement
Customer
Experience
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SERVICE MANAGEMENT 9
making procedure. The AVI is giving priority to the ideas of the employees as they can
enable the business to design services according to the demand of the customers.
Customer Experience
Customer experience is important for the success of the business because the development
takes place to meet the requirement of the customer (Johnston and Kong, 2011). The
Aventure Voyage International is established to offer complete tourism services to the
customers to provide them an unforgettable experience such that they can promote the
business through word of mouth. In addition to this, the company is following the concept of
first come first served. Through this policy, the company is reflecting that it does not promote
corruption and any other type of reservation system in the country.
Capacity Management Issues
Incapability in identifying the number of clients served and material used – This is being
considered to be one of the major issues for the business. As if it will not be able to maintain
the records of the client served it will not be able to measure its profit and loss (Hwang, Gao
and Jang, 2010). In order to avoid this issue, the company can just hire an accountant who
can manage the outflow and inflow of products and services.
Delay in offering services – Delay in offering planned services to the client is the major
issues that can impact the position and image of the business among the client. There are
maximum chances to the delay due to changing weather conditions of Australia. Hence, in
order to deal with these issues, the business will only take bookings after checking the
weather condition and will provide time to time updates regarding customer’s booked
services or any changes in the plan.
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SERVICE MANAGEMENT 10
Service Employee Management
In the hospitality industry business like Aventure voyage International, there is several
employees’ behaviors that can take place in the business. The behavior of the employee is
determined as several actions performed by the employee in the business. Some of the
behavior can result in a positive impact on the customer while some behavior can have a
negative impact. The negative behaviour of the employees of the company can result in
generating stress, depression, and minor illness among employees. The major threat of the
negative behavior is wide-ranging and spread to others such as flu that can be expensive to
the productivity of the business and ultimately takes its peal on the health as well as the
performance of the employees. According to Kattara, Weheba and Ahmed, (2015), the
negative behaviour of the employees can ruin Aventure Voyage International business and
can even cost high for employees. It can also result in driving away from the clients,
negatively impacting the morality of the employees and increasing employee turnover. The
behavior of the employee is essential because establishing a strong relationship with the
customer. They can meet the satisfaction level of the customer by meeting their promises
made to them. Deborah and Wanda, (2008), recommended that three main variables that can
result in customer satisfaction are the price of service, quality of service, and behavior of the
employee. Hence, the behavior of the employee impacts the performance of the customer
related to the quality of service and satisfaction.
Quality Management Measures
SERVQUAL Model
The Model of service quality SERVQUAL was introduced by the American Marketing Gurus
in the year 1988. It is the method to cover and evaluate the quality of the service offered to
the customer. In the initial phase, this method was used to focus on the establishment of a
quality system related to product or service quality (Ravichandran, Mani and Prabhakaran,
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SERVICE MANAGEMENT 11
2010). With time, it developed as the model to enhance the quality of the service and
products. This method is given major importance nowadays because it supports business in
attaining competitive advantage against competitors. In consideration of Aventure Voyage
International, the implementation of the SERVQUAL Model is presented below:
Reliability – Reliability is the capability to offer promised services accurately. Aventure
Voyage International will offer reliable services to its customer with the help of its employees
which will result in increasing the satisfaction of the customer.
Assurance – The politeness and knowledge of the workforce and their capability to convey
confidence and trust. Here, the behavior of the employees of the company will play a major
role in developing the trust and satisfaction of the customer.
Tangibles – The appearance of the services, employees, and communication material are the
tangibles (Yu, Chancellor and Cole, 2011). The tangibles for the company are the
infrastructure of the hotel arranged for the client. In addition to this, the communication
medium can be another factor that determines the quality of service. To offer the best
services, the company will contact with 4 and 5-star hotels. In addition to this, the company
will contact its client, through e-mails, text, website, etc.
Empathy – The way of understanding the demand and expectation of the customer. Aventure
Voyage International has adopted a customer-centric approach, according to which it tries to
offer maximum benefits to them.
Responsiveness – It reflects the willingness of the business to offer customers guaranteed and
quick services (Pantouvakis, 2010). The company is focused on offering the best services to
its client for which it has contracted with best hotels and planned their visit to the most
beautiful and adventurous locations in Australia.
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