Customer satisfaction will be the key element of a business strategy. Hotels who offer amazing customer experiences create environments where satisfaction is high and will get more customers. A good customer satisfaction will reduce the negative word-of-mouth. It will happen because customers are unhappy with the services. The hotel will loss of support from the customers.
These contracts may include pre-opening services and include activities like hiring and training staff, purchasing inventories and operational activities that must be done before the first guest enters through the door. With the operating agreement in place, we should look into a summary of the advantages and disadvantages of hiring management companies to run the show for you. SUMMARY OF ADVANTAGES • Targeted expertise - the right company chosen will ensure that the expertise is there from the opening day. • Proven Expertise – A proven track record will ensure that the hotel will be well positioned going by the past successes in running similar hotel properties. • Pay For Performance – in addition to the agreed fees, owners can incentivise the management companies by tying them to a performance bonus for the revenue generated.
This role may be seen as supervisory one, in which the manager selects, trains, promotes and dismisses subordinates. (Short, 1989: 122)Hospitality is a specific industry, with hotel management being, in addition, quite complex, because of increased competitiveness and changes in tourism demand. Everyday practice of hotel enterprises confirms the thesis that complexity, dynamics, heterogeneity and uncertainty are the main characteristics of today 's environments (Buble, 1997). Two main factors of the organisational environment in the hospitality industry are competitors and guests. Competitiveness requires new hotel products, increasing the quality of the hotel quality and changes in the behaviour of employed staff.
It is to maximize business profit by managing room inventory, pricing, sales volumes, and operating margins. The benefits of revenue management are to improve the forecasting, seasonal pricing and inventory decisions then the development of short-term and long-term business plan. It also not only identifies of new market segment and its demand but also enhance the coordination between front office and sale division. Revenue management brings benefit of establishment of value-based rate, thus increasing the business and profits. Implementing revenue management helps hotel to save the labor costs and other operating
Mahmoud S. Abou Kamar : According to Mahmoud, in the present scenario, the hotel industry needs to continuously ramp up its operations by improving the quality of its products and service and devise competitive strategies to reduce operation costs and increase capacity. In order to improve their operations and enhance their performance, hotels across the world are actively engaged in a wide variety of quality improvement initiatives such as TQM and Six-Sigma. After initial success in manufacturing organizations, Six-Sigma has gradually gained widespread application in service organizations, including hotels and lodging. Mahmoud’s study attempts to assess the effectiveness of Six-Sigma and examine its impacts on various performance measures
Service quality is ‘intangible part of a transaction relationship that creates value between a provider organization and its client, customer or guest’ (Ford, Sturman and Heaton, 2012). It is a useful and key factor in determining the success of the hotel. If the hotel performs the quality service, the customers will patronize the hotel again and promote hotel through word-of-mouth. Hotel’s revenue will probably be increased. On the contrary, if the hotel does not have quality service, the hotel will need to pay a large amount of expenses for advertising.
Hospitality also involves showing respect for their guest, treat them equal and providing what they need when they are in the hotel or requesting on a thing such as need a tourist to bring go around the town, need transportation and other. The hospitality industry basically provides lodging or accommodation to people who travel and needs shelter for the day. Today, the hospitality industry is providing more choices for its consumers all around the world from hotels, resorts, inns, hostels and many more. Hospitality industry is one of the industries that provide service so it is basically focused on customer satisfaction because customer who is the main major to pay us. In different kind of hotel will get a different type of service because it is depend on how the hotel functioning.
1 INTRODUCTION In order for a hotel to have a competitive advantage over other sectors, it has to acquire information from its external environment and position itself for success. The image that a hotel portrays to the public matters a great deal. Hotels need to make effort to present a good reputation. Many prospective guests now rely on Word-of-Mouth to decide where to go and where not to go. Economic factors will always have an impact on hotel operation.