The Importance of Managing in International Hospitality Operations Management

Question: Discuss the importance of measuring, controlling and managing

in International Hospitality Operations Management

By: 309087

For: Arnaud Frapin

Unit: 33IHO9001 - International Hospitality Operations Management

Submission date: 2nd October 2015

Abstract: In this paper the importance of measuring controlling and managing within the hospitality operations is discussed. A special emphasis is made on customer satisfaction. The idea of performance management is discussed and the way it’s linked to other measurement types and setting targets. Continued further with the importance of target setting and its relation to quality improvement.  

In the base of every organization there is an idea. That idea sets the organization’s working environment and sets the tone for further operation. Everything is build up around this idea until it has become a monolith. Once the operation has begun and people are hired they start to influence the organization’s environment along with other factors like i.e. aging of assets, progress of competitors etc. Everything that is operated or somehow influenced by humans has a human factor to it. While the outcome from automated operations can be predicted, human factor can be quite unpredictable at times. If the hospitality industry is taken for an example, human factor is at its highest level throughout the whole industry as it is an industry where people are working for people. (Adjibolosoo, 2001) Managers require measuring the performance of people, measuring satisfaction of people and how it is all related to the organization and its financial status. This is performed in order to compare the previous results with current results. The results are the key part as they show anything from consistency of staff in daily operation to customer’s satisfaction from those operations. (!!!!)

Customer satisfaction is one the main elements behind effective operation of any organization in hospitality industry. This can be traced by noticing the amount of feedback that is related to hospitality industry. Starting from web sources like Trip Advisor and Medallia towards the paper evaluation form that can be found in the hotel room or upon checkout. Moreover customers are aware of many standards and become more demanding, which results the improvement of standards and the need to measure that improvement. Once a costumer gets in the contact with the organization he or she judges the performance of various steps that are taken to satisfy his needs. If a customer does not make a favorable choice it means there is a fault somewhere and appropriate actions must be taken by a manager. Defining required actions is as important as detecting a flaw. Sometimes managers measure irrelevant things, which consume time, funds and may lead to a mistake in operation. (Johnston, Clark and Shulver, 2012)

Whether it is customer’s first impression or a returning customers impression, it is very important for a company to understand the customer experience within different parts of the company. First impression is basically the way customer is attracted to the company and if the client was treated good enough to return. On the other hand a returning customer gives better feedback for what has changed and whether these changes are good or bad. Both customers reflect on what needs to be improved. (Harvard Business Review, 2012) If it is a restaurant or a hotel, the impression from service could be measured or the quality of food. The managers can go even deeper and section the whole process of customer experience from arrival to departure and employee performance Hotels may include sections like Quality of Sleep to ensure the high standards of sleep or to determine any needs for improvement. A guest would rate the experience for example, if the matrass is comfortable enough and reflect his, her or in many cases the whole family or group experience. Feedback forms may vary with various rating techniques; from 1 to 5 where 1 is not satisfied and 5 is very satisfied. In this case there is a middle number 3 that may allow a customer to be indecisive. In other cases there can be up to 8 numbers forcing a client to take a positive or a negative side. Forms may contain specific questions and boxes for ticking yes or no. These are aimed for obtaining specific information, for example, if the check-in staff was friendly or if lobby music was to a taste. (Johnston, Clark and Shulver, 2012)

The world is changing very fast with the advance of technology. With new technology comes a new way of working with information, its storage and quantization of older information, before digital input. This means that feedback forms could be digital and sent via e-mail or apps. This means that the information is stored organized and in some cases even analyzed straight away. For example software from Medallia Company, which is used by Marriot Hotels, (Medallia, 2015) facilitates a connection between the organization and the clients. They capture the feedback: momentary, post-experience, social, direct customer care service and within other systems like POS, Opera etc. They analyze the regressions, impact analytics, connecting it to the financial reporting system. Medallia Company website states that they will identify the main idea driving the business of the company, bond customer satisfaction with financial metrics and customer spend, and demonstrate which improvements will have value for money. (Medallia, 2015)

Not every organization uses the services of a company like Medallia. Most of the times managers create their own systems based on the purpose. It is very important to create the system, which will be relevant enough to give a precise feedback so that an action is taken to “put the train back on the track.” After finding a purpose and defining a useful system, a manager should answer some questions whether this is true measurement whether it measures something else beside its purpose, if there is any consistency behind the research and is there a clear picture of the results to understand. After ticking the boxes for these questions and getting the right results it is vital to identify if there is any other way to interpret them. When the results are interpreted right, usually, the speed of data analysis is looked upon to ensure the timeliness of the reaction to feedback. Sometimes it may be rather expensive to do the research so its worth is estimated and compared with its overall relevance. At last, but not the least important action is to ensure the systematic research