Service Management for Tourism and Hospitality (MKT01909) Report

This report delves into the intricacies of service management within the tourism and hospitality sector, specifically focusing on Fraser Cottage. It begins by establishing a market-centric operational strategy, emphasizing the importance of the service-profit chain, customer value, and effective market...Read More

Running head: SERVICE MANAGEMENT FOR TOURISM AND HOSPITALITY
Service management for tourism and hospitality (PART B)
Name of the Student
Name of the University
Author Note

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Executive summary
The purpose of the report was to develop a suitable market centric operational strategy for the
organization Fraser Cottage. The report gave an insight about the service quality which is
analysed by a service quality model. Overall operation of the firm has been based on the
value that customers receive through the service. It has been learnt that marketing is another
significant element that helps business to go ahead and do what it wishes to do because the
major purpose of the marketing was to make people aware of the services or the business as a
whole. Fraser Cottage has decided to do business with airline agencies which brings
consumers. This would help the brand to receive consumers’ lead. Firm decided hire people
who are having real-world experience with respect to service management. Service delivery
system designed for Fraser Cottage significantly considered consumers’ value and the whole
system was developed to back the operational strategy stated in the report.

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Table of Content
Introduction................................................................................................................................3
Operating strategy..................................................................................................................3
Service blueprint....................................................................................................................5
Service delivery system..........................................................................................................6
Service employee management..................................................................................................8
Quality management measures..................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
The purpose of the report is to develop a suitable market centric operational strategy
for the organization Fraser Cottage. This section of the report particularly the explains how
productivity and quality of offered services can be managed considering the market needs.
Report also gives detailed idea about how employees could influence/benefit the business of
Fraser Cottage. Moreover, the quality management measures provided in the following gives
the insight about the service quality which is analysed by a service quality model. Fraser
Cottage is one of the emerging hospitality organizations located at the Fraser Island. Fraser
Cottage provides a broad range of hospitality and tourism services to people around the
world. Fraser Cottage provides a broad range of tourism and hospitality services such as
accommodation, food, conference, party, dining, award function, Banquet, resort
management, spa and wellness programs. Fraser Cottage provides external sea life
experience, such as fishing, deep sea-divining, paragliding, bungee jumping, water skiing,
and several other sea entertainment services. The following are of the report gives an
overview of how the operation is handled.
Operating strategy
Operation: It is certain that tourism and hospitality service of Fraser Cottage covers a wide
area; so to manage the quality of operation, it is highly important for the organization to
follow a service-profit chain which builds upon profitability, customer loyalty as well as
employee satisfaction, loyalty and productivity of Fraser Cottage. The overall operation of
the firm should be based on the value that customers receive through the service (van Riel et
al. 2005). Hence when providing services to consumers, business should focus on giving a
real life experience of exploring the sea life which is kind of a discovery that people often
crave for. Value with the service can be generated when customers feel that doing sea-diving

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contributes to their knowledge about coastal life. Instead of focussing too much aristocracy of
the services, consumers should be given the opportunity to explore or learn new things about
service at the island and that is the value customers receive. To speed up the operation, the
organization should pay more attention to employees because hospitality services often
include people (Rosman and Stuhura 2013).
Marketing: As put forward by Law et al. (2013), marketing is another significant element
that helps business to go ahead and do what it wishes to do because the major purpose of the
marketing is to make people aware of the services or the business as a whole. If the market or
the audience are not aware of the services, the purpose of business go wasted. So, when it
comes to marketing, Fraser Cottage should leverage the digital media channels to market its
services. Firstly, it needs to promote its products and services on the popular social media
channels, like Facebook, YouTube and Instagram (Othman, Zahari and Radzi 2013). By
creating an official page in the mentioned channel, the brand first have to reach the
audiences. Apart from this, it should contact the popular third party travel agencies such as
Goibibo that on behalf of the organization would market the products and services of Fraser
Cottage. On the other side, Fraser Cottage should business with airline agencies which brings
consumers. It should create a contract with the top airline agencies such as Emirates. So,
when a consumer books an airline ticket can automatically learn about the hotels and
services, as Emirates itself would suggest consumers to choose.
Human Resource: As put forward by Rosman and Stuhura (2013), human resource is most
crucial element of operation of tourism and hospitality business, as the services are entirely
depend upon the people the organisation has. According to Law et al. (2013), quality of
service and operation are linked to employee satisfaction and employees’ delivery of service.
Firstly, organization need to hire people who are having real-world experience with respect to
service management. Organization needs to train people considering the exclusiveness of the

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services it offers. Moreover, Fraser Cottage should recruit people from the nationally
affiliated institutions in Australia who are having underlying theoretical experience about the
hospitality management. On the other side, for top level management, organization can focus
on skills and talents in the oversea market. Considering the shortage of employees in the
sector, organization must meet the basic needs of employees such as appropriate salary
structure, career growth opportunity, fringe benefits, communication training programs, etc.
Service blueprint
It has been identified that a fundamental characteristic of service is that value should
be fundamentally formed and developed during the service experience which should not
solely by its consequential object, which is the service output.
Figure 1: Service Blueprint

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The above presented service blueprint helps to observe that service is delivered
through a series of steps and phases. However, there are several other services that would be
provide to consumers that were not printed here as they fall under the external supplementary
services. It can be stated that element of Food and ‘Bill-desk’ exterior parking are most likely
to create significant impact on consumers’ mind because in traditional way of availing hotel
services are not time consuming and waiting the most general case before the entry. To
facilitate the service, when consumers visit the lobby and to reach the bill desk, additional
services are provided to consumers such as food, restroom, lift services, and hallway. So,
before the actual entry to the room consumers can already avail the services of hotel and then
registration and bill payment is secondary variable here which should not interrupt
consumers’ entry experience. This is certainly an exclusive service that hardly hotels
consider. This would stick to consumers’ mind for a long time because in traditional way of
hotel service, consumers mostly can avail the service once the payments are done. Hence, in
the case of Fraser Cottage, visitors are welcomed with the series of complimentary services.
The element of food which is offered as the complimentary service should not be at hotels’
discretion –this means on the basis of consumers’ cultural background, regional foods items
will be offered. For example, if the visitor is from India, looking at the pre-booking details of
the person, regional foot items of India will be offered. Consumers should not be feeling that
they are away from home.
Service delivery system
Service delivery system designed for Fraser Cottage significantly considers
consumers’ value and the whole system is developed to back the operational strategy stated
above. Nature of the service would entirely be customer-centric and this means in every
step of the service, quality and value should be attached. This can be done through or using
information in several ways. Specifically, authorized caller ID software can be used to

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communicate with the guest. This means employees can personalize the service to make each
tourist or client special. For example, having a caller ID to allow service representative to
address the consumers by name when responding to consumers’ phone call adds special value
to experience. It would be ensured that customers would not have to spend a single minute in
thinking when to order food, when to eat, where is the menu after entering the room. For
example, if the tangible product is the customer experience is a quick service meal, the patron
should know how to get quick service, which quick service meals are available or when the
food is ready. Thus, appropriate sign and digital screen would be placed to help customers
select the items and see the picture of what the meal looks like. Order number of the
consumers would be displayed on the screen itself.
Figure 2: Idea of Room service
Reservation system is available both online and offline. Customers who booked the
service online do not have to go through the process of bill-desk registration, and halt in the
restroom, they can directly enter the rooms, while the offline booking is facilitated with two
steps only. For example, offline customers do not have to stand on the queue, they can use the

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restroom and avail the complementary regional food items and watch TV. However, to
manage the stated services, Fraser Cottage might the face the challenge of technology and
staff. The organization needs to use the information technology to know consumers’ detail
and for providing a hassle-free service, huge number of staff are required. To resolve this
issue, organization must have to invest in technology and development of human resource
instead of spending too much money on advertising and marketing.
Service employee management
As stated above, employee satisfaction and employee management can strongly
influence the quality and productivity of the hotel. Thus, employees should be educated and
they are required to be wise about the services. To add values to services and satisfy
consumers ‘needs, basic needs of consumers first have to be met. Employees of all level and
department should be provided with frequent communication training (Stefano et al. 2015).
The organization should develop a knowledge development programs in which employees
must learn how the organization is planning ahead. In the knowledge development programs,
culture of the overseas nations or other foreign nations should be taught.
So, when employees know about the background information about the consumers,
they can easily welcome and treat the consumers accordingly (Horng et al. 2016). In addition
to this, to enhance the productivity and measure the quality of service, weekly services would
be measured which can be done by collecting the feedback from consumers only. Likewise,
to enhance the service, weekly training programs for the employees would be offered. So,
through training, when employees know many languages which are required to communicate
with the consumers. Such training program can enhance the level communication of
employees which can be further reflected on the productivity (Van Vaerenbergh, De Keyser
and Larivière 2014). Moreover, when hiring employees, employees’ background information

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should be collected. This would help to treat employees accordingly. For example, employee’
birthday should be celebrated in the hotel and they should be provided with a free trip on
their birthday.
Quality management measures
Figure 3: Service Guarantee
Hence, the element of organizational service learning programs in one such element
which is similar to the services that would be provided to consumers as stated above in the
service delivery system. It is certain that when employee motivation and vision are
considered in the service, the quality of service can be improved and it is often reflected on
customer satisfaction. Horng et al. (2016) mentioned that when staff are motivated and they
are inclined towards servicing the guests because their emotional and existential needs are
satisfied. On the contrary, organizational learning program is also directly linked to the
service quality, customer loyalty and satisfaction. Here, organizational service learning
indicates the list of services that organization provides to guests. So, as stated previously,
before providing or delivering the service to employees, it is highly important that business
employees learn about the service. This means when employees have knowledge about the

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service, they will find it easy to serve the consumers. This learning is important because Chin
and Tsai (2013) mentioned that a strong service guarantee could help the business discover
dissatisfied customers and know from them to enhance the service quality. Business with a
strong service guarantee is most likely to learn how to serve the consumers quicker than the
business without one.
Conclusion
Purpose of the report is to develop a suitable market centric operational strategy for
the organization Fraser Cottage. When it comes to managing employees, organization need to
hire people who are having real-world experience with respect to service management.
Considering the shortage of employees in the sector, organization must meet the basic needs
of employees such as appropriate salary structure, career growth opportunity and fringe
benefits. Nature of the service would entirely be customer-centric and this means in every
step of the service, quality and value should be attached. Furthermore, it is also learnt that
employees should be educated and they are required to be wise about the services. To add
values to services and satisfy consumers ‘needs, basic needs of consumers first have to be
met.

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References
Chin, J.B. and Tsai, C.H., 2013. Developing a service quality evaluation model for luxurious
restaurants in international hotel chains. Total Quality Management & Business
Excellence, 24(9-10), pp.1160-1173.
Horng, J.S., Wang, C.J., Liu, C.H., Chou, S.F. and Tsai, C.Y., 2016. The role of sustainable
service innovation in crafting the vision of the hospitality industry. Sustainability, 8(3),
p.223.
Law, R., Leung, D., Au, N. and Lee, H.A., 2013. Progress and development of information
technology in the hospitality industry: Evidence from Cornell Hospitality Quarterly. Cornell
Hospitality Quarterly, 54(1), pp.10-24.
Othman, Z., Zahari, M.S.M. and Radzi, S.M., 2013. Customer behavioral intention: Influence
of service delivery failures and service recovery in Malay restaurants. Procedia-Social and
Behavioral Sciences, 105, pp.115-121.
Rosman, R. and Stuhura, K., 2013. The implications of social media on customer relationship
management and the hospitality industry. Journal of Management Policy and Practice, 14(3),
pp.18-26.
Stefano, N.M., Casarotto Filho, N., Barichello, R. and Sohn, A.P., 2015. A fuzzy
SERVQUAL based method for evaluated of service quality in the hotel industry. Procedia
CIRP, 30, pp.433-438.
van Riel, A.C., Victorino, L., Verma, R., Plaschka, G. and Dev, C., 2005. Service innovation
and customer choices in the hospitality industry. Managing Service Quality: An International
Journal.

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Van Vaerenbergh, Y., De Keyser, A. and Larivière, B., 2014. Customer intentions to invoke
service guarantees: do excellence in service recovery, type of guarantee and cultural
orientation matter?. Managing Service Quality: An International Journal, 24(1), pp.45-62.