Chapter 2 Service Characteristics of Hospitality and Tourism Marketing OBJECTIVES:
Describe a service culture.
Identify four service characteristics that affect the marketing of a hospitality or travel product.
Explain marketing strategies that are useful in the hospitality and travel industries.
Ritz-Carlton is renowned for outstanding service.
the chain of eighty-five luxury hotels around the world, caters to the top 5 percent of corporate & leisure travelers
In surveys of departing guests, some 95 percent report they’ve had a truly memorable experience.
At Ritz-Carlton, exceptional service encounters
have become almost commonplace.
when Nancy & Harvey Heffner’s son became sick, hotel staff brought him hot tea & honey at all hours of the night
Such personal, high-quality service has also made the Ritz-Carlton a favorite among conventioneers.
Since incorporation in 1983, Ritz-Carlton Company has received all the major awards hospitality industry & consumer organizations bestow.
Rewards are important, and at Ritz-Carlton, service quality has resulted in high customer retention: o
more than 90 percent of Ritz-Carlton customers return
despite hefty room rates, the chain enjoys occupancy
rates at 70%, almost 9 points above industry average
Most of the responsibility for keeping guests satisfied falls to Ritz-Carlton’s customer-contact employees.
Ritz-Carlton instills a sense of pride in its employees. o
“You serve,” they are told, “but you are not servants.” o
the company motto states, “We are ladies and gentlemen serving ladies and gentlemen.”
To ensure guest satisfaction, no detail is too small.
customer-contact people are taught to greet guests warmly and sincerely, using guests’ names when possible, to answer the phone within three rings, with a “smile” o
employees are urged to escort a guest to another area
of the hotel rather than pointing out directions
pride and care in personal appearance is emphasized
Marketing initially developed in connection with selling physical products.
Today, a major trend is swift growth of services,
or products with little or no physical content.
in most developed countries, services account for
a majority of the gross domestic product (GDP)
in developing countries a majority of nonagricultural workers are often employed in hospitality and travel
Growth of service industries has created a demand for research into their operation and marketing.
Some managers think of their operations only in terms of tangible goods. o
managers of fast-food restaurants who think they sell
only hamburgers may have “slow, surly service personnel, dirty unattractive facilities, and few return customers.”
A most important task of a hospitality business is
to develop the “service” side of the business.
specifically, a strong service culture
Service culture focuses on serving & satisfying the customer, starts with top management & flows down.
Service marketers must be concerned with four characteristics of services: o
intangibility, inseparability, variability, and perishability
Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before purchase. o
prior to boarding, airline passengers have nothing but
a ticket & promise of safe delivery to their destination
a sales force cannot take a hotel room with them on
a sales call, and when guests leave, they have nothing
to show for the purchase but a receipt
Robert Lewis observed that someone who purchases a service may go away empty-handed, but they do not go away empty-headed. o
they have memories that can be shared with others
To reduce uncertainty caused by service intangibility, buyers look for tangible evidence that will provide information and confidence about the service. o
tangibles provide signals as to the quality of the
condition of the grounds & overall cleanliness
provide clues as to...
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