Chapter 15 The Role of Service in the Hospitality Industry

SERVICE In an industry that is part of the larger service industry, the delivery of good service is vital Word of mouth (good or bad) emanates from the service experience that a customer has Bad word of mouth spreads faster and farther Service is a major point of differentiation

SERVICE “Service is all actions and reactions that customers perceive they have purchased” Made up of all “moments of truth” It is how service staff are evaluated Services are produced and consumed at the same time, creating challenges Zero defects is a goal to be strived for

TYPES OF SERVICE There are three types of service: (1) electronic/mechanical; (2) indirect personal transactions and ; (3) face to face transactions. Standards must be established for each and each must be managed

PERSONAL SERVICE Personal service is composed of two different aspects; (1) task and; (2) interpersonal Task refers to the procedural elements Interpersonal refers to the behavioral elements Each is important

MANAGING THE SERVICE TRANSACTION Organizations tend to take the either a product view or a process view of service Their view drives how service is managed in their organizations McDonald’s take the product view where all systems are routinized; Four Seasons takes the latter view where everything is focused on the interaction with the guest

HOW COMPANIES ORGANIZE FOR SERVICE By implementing a service strategy By segmenting the market and servicing specific segments By establishing a service culture By recognizing the importance of people and rewarding them accordingly

SERVICE IS THE SUSTAINABLE COMPETITIVE ADVANTAGE Hospitality products and services tend to be very similar with the exception of service Providing exceptional service should be viewed as an opportunity Much of a company’s reputation is based on individual service transactions