product and service management chapter 9. unit essential question how do special services, image,...

Product and Service Product and Service ManagementManagement

Chapter 9Chapter 9

Unit Essential Unit Essential QuestionQuestion

How do special services, How do special services, image, and risk management image, and risk management affect the product and affect the product and service plans of a restaurant service plans of a restaurant or hotel?or hotel?

Essential Question 1Essential Question 1

What is the product and service What is the product and service mix and how is it used to rate mix and how is it used to rate hotels and restaurants?hotels and restaurants?

Hotel Product and Service Hotel Product and Service PlanningPlanning

Attitudes, Amenities, and Attractions in LodgingAttitudes, Amenities, and Attractions in Lodging– Total Product Concept:Total Product Concept: The sum of the marketing and

service approaches taken to reach and please a market segment.

– Product and Service Mix: The various products and types of services available for customers.

Includes building exteriors, signage, staff behavior and appearance, equipment, furniture, and fixtures.

Many of the back-of-the-house equipment and facilities are a vital, though rarely seen, aspect of a hotel’s product and service mix.


– Get An AttitudeGet An AttitudeTrue Service: True Service: Genuine caring and assistance provided Genuine caring and assistance provided by hotel personnel to their guests; not to be confused by hotel personnel to their guests; not to be confused with the intangible products called services.with the intangible products called services.

– Learn guest’s names and refer to them by title and surname.Learn guest’s names and refer to them by title and surname.

– Greet guests and co-workers cordially.Greet guests and co-workers cordially.

– Make eye contact and smile.Make eye contact and smile.

– Offer assistance when needed.Offer assistance when needed.

– Use proper and professional language - no slang.Use proper and professional language - no slang.

– Be sincere when saying “Thank you” and “Have a nice day.”Be sincere when saying “Thank you” and “Have a nice day.”

– Be genuinely concerned for guests and their problems.Be genuinely concerned for guests and their problems.

– Be creative when solving guest’s problems.Be creative when solving guest’s problems.

– Give guests options when offering solutions to problems.Give guests options when offering solutions to problems.


– Don’t take guests complaints personally.Don’t take guests complaints personally.

– Be alert to situations that might get out of hand and get help before Be alert to situations that might get out of hand and get help before things get out of control.things get out of control.

– Remember that a hospitality professional remains hospitable and Remember that a hospitality professional remains hospitable and professional regardless of any situation.professional regardless of any situation.

All employees (front desk agent, bell person, switchboard All employees (front desk agent, bell person, switchboard operators, room service order takers, or any other employee operators, room service order takers, or any other employee who makes contact with a guest) should make it a point to who makes contact with a guest) should make it a point to learn the guest’s name and use it courteously.learn the guest’s name and use it courteously.

Empowerment: Giving employees the authority to immediately solve a guest’s problem or complaint.

– Empowering employees requires good training and managers who are confident that the employees will use good judgement when appeasing guests.


– AmenitiesAmenitiesCable TV and in-room movies.

– 42% of guests watch the Weather Channel.

– 17% of guests watch C-Span.

Fully stocked mini bars and refrigerators.

Hair dryers, irons, and ironing boards.

Personal-size bottles of shampoo, lotions, and mouthwash.

Thick, terry-cloth robes.

Personal safes to store valuables.

Cordless phones.

Pillow-top mattresses.


Dataports and/or wireless technology.

VCRs, DVDs, and video game sets.

Jacuzzi tubs.

Complimentary and/or health-conscious meals.

Concierge services.

Fitness facilities or health clubs.

Express check-in and check-out.

Jogging trails or jogging escorts for women.

Bibles– 3.4 million bibles in hotel rooms nationwide.

– 23% of hotel guests actually read the bible in the room.

– All Marriott full-service hotels also have the Book of Mormon.


– AttractionsAttractionsPackages: A combination of related services in a single-priced product.

– They are attractive to customers because they are easy to arrange and budget friendly.

– They are used to increase business during off-peak season as well as to encourage repeat business.

– They enhance the relationship between the business, customer, and supplier. Building and maintaining a long term relationship between business, customer, supplier and intermediary is known as relationship marketing.

– Should contain at least one main attraction, known as a demand generator.


– Some packages include programming: A combination of special activities, events, or programs designed to appeal to customers’ interests.

All-inclusive packages: Round-trip air fare, ground transportation, lodging, meals, drinks, entertainment, recreation, tax, and gratuities.

Lodging and meals packages: At least one night lodging with meals.

- American plan includes three meals a day.

- Modified American plan includes two meals a day.

- Bed & Breakfast plan includes one meal a day including breakfast.

- European plan includes no meals.

Transportation packages: Includes fly-drive, fly-cruise, fly-rail, and rail-drive.

Event packages: Planned around special events, festivals, or sporting events.


Special-interest packages: Includes lodging, transportation, and activities or events.

Family vacation packages: Offers something for families with children.

Affinity group packages: Groups that have similar interests or share a close religious, social, or ethnic bond.

Convention and meeting packages: Includes accommodations and meals and may include local tour or attraction admissions.

Incentive packages/tours: Usually sold to companies or associations that offer the package as a reward.

Rating Systems For HotelsRating Systems For Hotels– 1 to 5 stars used by the Mobil Travel Guide.

– 1 to 5 diamonds used by the American Automobile Association (AAA).


What are the various services What are the various services offered by hotels?offered by hotels?

Special Hotel ServicesSpecial Hotel Services

People Serving WellPeople Serving Well– Concierge: A person whose duty is to assist and

accommodate guest’s requests that is legally and humanly possible.

– Bell StaffBell StaffResponsible for welcoming guests as they arrive at the hotel.

Gives guests the red-carpet treatment.

Provides personalized service and assistance as well as deliver extra amenities (dry cleaning, laundry, or other requested items)

Special Hotel ServicesSpecial Hotel Services– Valet Services: Valet Services: Does laundering or cleaning of guests’

clothes.

– Shuttle Services: Shuttle Services: Transportation to and from airports, train stations, ports, or local attractions.

Technology For Hotel GuestsTechnology For Hotel Guests– Hotels must stay ahead of technology in order to provide the

best service for their guests.

– HITIS (Hospitality Industry Technology Integration Standards) is an effort established by the hospitality industry to standardize common data and software used by hotels.


How does hotel atmosphere, How does hotel atmosphere, furnishings, and uniforms relate furnishings, and uniforms relate to the hotel image?to the hotel image?

Your Hotel Image Is ShowingYour Hotel Image Is Showing

Hotel Atmosphere and EnvironmentHotel Atmosphere and Environment– The positive reputation of a company is one of its

most important attributes.– The Exterior ViewThe Exterior View

The physical facility must be attractive and in good repair.

First impressions are lasting impressions and guests make many assumptions and decisions based on these impressions.

Looks are everything.

Your Hotel Image Is ShowingYour Hotel Image Is Showing

– Hotel FurnishingsHotel FurnishingsWhen considering the interior of a specific property, ask:

– Is there a specific design theme for this property?– Does the theme represent the geographical location of the property?– Do the guest rooms and public spaces reflect the theme?– Is the lighting ample? Does it compliment the ambiance of the

property?– Are the fabrics used in the rooms dated?– Is technology part of the package offered by the hotel? Are the desk

and working area large enough?– Does this property have any specific overall look that makes it

special and different from the competition?

Your Hotel Image Is ShowingYour Hotel Image Is ShowingHotels redesign their guest rooms every five to seven years.

Many hotels are renovating lobbies and common areas to provide a more up-to-date and guest friendly look.

– Uniforms and Dress Code StandardsUniforms and Dress Code StandardsEmployee uniforms and dress code can greatly enhance or totally ruin the image of a hotel.

Properly fitted, attractive uniforms, name tags, and excellent personal grooming create a professional image that sends a positive message to guests.

Many hotels will include the employee's first name, town and state, or native country where the employee was born and raised on their name tags to promote the idea the hotel is a global company.


What are the types of insurance What are the types of insurance coverage available to hotels and coverage available to hotels and the common security measures the common security measures used in the lodging industry?used in the lodging industry?

Risk ManagementRisk Management

Property and Liability InsuranceProperty and Liability Insurance– Risk:Risk: The possibility of financial loss.– Risk can be managed by using the best available

marketing information, analyzing opportunities, and making decisions to balance risk with adequate monetary returns.

– Risk ManagementRisk Management: : Things businesses do to eliminate or decrease risk.


– Types of RiskTypes of RiskEconomic Risks:Economic Risks: Occur from changes in overall Occur from changes in overall business conditions.business conditions.

– Amount or type of competitionAmount or type of competition

– Changing consumer lifestylesChanging consumer lifestyles

– Population changesPopulation changes

– Product obsolescenceProduct obsolescence

– Government regulationGovernment regulation

– InflationInflation

– RecessionRecession


Natural Risks:Natural Risks: Result from natural causes.Result from natural causes.– FloodsFloods

– TornadosTornados

– HurricanesHurricanes

– FireFire

– LightningLightning

– DroughtsDroughts

– EarthquakesEarthquakes

– Unexpected changes in normal weather conditionsUnexpected changes in normal weather conditions


Human Risks:Human Risks: Caused by human mistakes and the Caused by human mistakes and the unpredictability of employees and customers.unpredictability of employees and customers.

– Customer or employee dishonestyCustomer or employee dishonesty

– Employee carelessnessEmployee carelessness

– Employee incompetenceEmployee incompetence

– Customer or employee accidentsCustomer or employee accidents

– Employee illnessEmployee illness

– Customer non-payment of accountsCustomer non-payment of accounts


Risk Prevention and ControlRisk Prevention and Control– Screening and Training EmployeesScreening and Training Employees

– Providing Safe Conditions and Safety InstructionProviding Safe Conditions and Safety Instruction

– Preventing External TheftPreventing External Theft

– Controlling Employee TheftControlling Employee Theft

Risk ManagementRisk Management– Risk TransferRisk Transfer

Purchasing InsurancePurchasing Insurance– Insurance policyInsurance policy: : A contract between a business and an

insurance company to cover certain business risks.

– Property InsuranceProperty Insurance: : Covers damage or loss to the building, equipment, machinery, furniture, and fixtures.

– Liability InsuranceLiability Insurance: : Protects businesses from losses or damage claims by customers or guests.

– Worker’s Compensation InsuranceWorker’s Compensation Insurance

Guarantees and WarrantiesGuarantees and Warranties

Risk ManagementRisk ManagementTransfer through OwnershipTransfer through Ownership

– Sole ProprietorshipSole Proprietorship

– PartnershipPartnership

– CorporationCorporation

– Limited Liability Company (LLC)Limited Liability Company (LLC)

– Risk RetentionRisk RetentionBusinesses retain certain business risks and assume the Businesses retain certain business risks and assume the responsibility for them because it is impossible to responsibility for them because it is impossible to prevent or transfer these risks.prevent or transfer these risks.

– Risk AvoidanceRisk AvoidanceForesight and anticipation will allow businesses to Foresight and anticipation will allow businesses to avoid certain risks.avoid certain risks.


Hotel SecurityHotel Security– Hotels are required to provide reasonable efforts to

ensure that guests are safe and secure, they are NOT required to guarantee safety.

– Guest Security Guidelines:Guest Security Guidelines:Never open the door to strangers.Never open the door to strangers.

Change rooms if the door locks are not secure.Change rooms if the door locks are not secure.

Lock doors and windows at all times.Lock doors and windows at all times.

Make sure the room has solid doors, locks, and Make sure the room has solid doors, locks, and peepholes.peepholes.

Use the peephole.Use the peephole.

Risk ManagementRisk ManagementCheck with the front desk if someone who claims to be Check with the front desk if someone who claims to be with hotel staff wants entry into your room.with hotel staff wants entry into your room.

Call the front desk or security if you see someone acting Call the front desk or security if you see someone acting suspiciously.suspiciously.

Never leave your room key in the room when you are Never leave your room key in the room when you are away.away.

– Hotel Security Guidelines:Hotel Security Guidelines:Guest-assigned room numbers should not be revealed to anyone except the guest at time of check-in.

Room keys or key cards must not have the room number on them.

The room number should not be spoken out loud if other people are within hearing range.

Risk ManagementRisk ManagementMaster keys should be kept in a safety box with a sign Master keys should be kept in a safety box with a sign out log.out log.

Housekeeping and engineering staff should be properly Housekeeping and engineering staff should be properly trained in safe room-entry procedures.trained in safe room-entry procedures.

Housekeepers should pull the cart across the entrance to Housekeepers should pull the cart across the entrance to the room to reduce access to the guest room when the room to reduce access to the guest room when cleaning it.cleaning it.

– An average size hotel has 25 to 50 surveillance An average size hotel has 25 to 50 surveillance cameras on the property. Most are located in the cameras on the property. Most are located in the parking areas, lobbies, and back stairwells.parking areas, lobbies, and back stairwells.

– 25% - 35% of all hotel crimes occur in parking 25% - 35% of all hotel crimes occur in parking lots.lots.

Risk ManagementRisk Management– Security TrainingSecurity Training

The people responsible for the day-to-day operations of the hotel are the front lines of security.

Wise hotel managers consider safety and security as part of every employee’s responsibility and provide training to support that philosophy.

Employees must have confidence in their training and ability to deal with emergencies or threatening or potentially dangerous situations.


What are the basic concepts and What are the basic concepts and major factors considered when major factors considered when creating a product and service creating a product and service plan for a restaurant?plan for a restaurant?

Restaurant Product and Service Restaurant Product and Service ManagementManagement

Product PlanningProduct Planning– Product PlanningProduct Planning: : Deciding what products to sell

and what services are necessary to sell those products.

– Restaurateurs pay close attention to consumer’s eating habits and emerging trends in food products and services to remain competitive.

– The National Restaurant Association publishes an annual Industry Operations Report, which allows restaurateurs to compare their operations with competitors in several categories.


– Influences on Restaurant Cuisine:Influences on Restaurant Cuisine:Media, food columnists, and TV celebrity chefs.

Increase disposable income.

More working mothers with less food preparation time.

Aging Baby Boomers who are interested in healthy cuisine.

The population travels more and has a greater interest in varied cuisine.


– Choosing Appealing Products:Choosing Appealing Products:Basic Family Appeal: Basic Family Appeal: Familiar, good value, easy to Familiar, good value, easy to take out, fun for family dining, generally appealing to take out, fun for family dining, generally appealing to all customers.all customers.

Festive Appeal: Festive Appeal: Good for celebrations; rich, indulgent desserts; hearty portions; atmospheres that put customers in a good mood.

Traditional fine dining or Old World traditional Traditional fine dining or Old World traditional appeal: appeal: Food for formal or special occasions; expensive; rich, indulgent food and deserts; not for adventurous diners.


Authentic and Mild Appeal: Authentic and Mild Appeal: Food that is difficult to Food that is difficult to prepare at home; mild pleasant flavors and beautiful prepare at home; mild pleasant flavors and beautiful presentations; usually preferred by young, upscale presentations; usually preferred by young, upscale consumers.consumers.

Adventurous and Spicy Appeal: Adventurous and Spicy Appeal: Food is hot and spicy with unique flavors that are difficult to prepare at home; Often innovative and authentic.

Innovative and Trendy Appeal: Innovative and Trendy Appeal: Food may be a combination of different ethnic features, not necessarily authentic, lots of variety, menu items are always changing.


Service PlanningService Planning– Counter Service:Counter Service: Fast-food or quick serve Fast-food or quick serve

restaurants, limited menus, take-out and drive-thru restaurants, limited menus, take-out and drive-thru lines are usually available.lines are usually available.

– Trayline Service:Trayline Service: Found in cafeterias, all-you-can-eat buffets, schools and hospitals.

– Seated Service:Seated Service: Customers are seated and the wait staff take the order and delivers it to the kitchen staff.


– Factors to Factors to Consider:Consider:

product and service management chapter 9. unit essential question how do special services, image,...

Documents

hotel product

hotel guests

service mix

hotels product

guests problems

service plans

service approaches

service planning attitudes