Growth Through quality
Introduction
Quality impacts the reputation of the company. Quality is critical is an important factor in customer satisfaction and retention and hence determines the customer’s future buying behavior. Quality service contributes to the long-term revenue and profitability of the business. They also help the management to charge as well as to maintain higher prices. Royal Hotel aims to take advantage of the increased demand for hotel accommodation as a result of the new Exhibition Centre. The idea behind growth through strategy is that customers do concerned with the value of money. The customer requires to see the value of money for the service paid through quality.
Implementation of growth through quality
The main aim of enhancing quality in the hotel industry is to increase customer satisfaction hence increasing their loyalty to the business. The end result of customer satisfaction increases in sales as the customer will be willing to buy again in the future and also refer other customers to the business. Quality can be enhanced through different approaches. First, every customer should be treated as a guest. This creates a positive experience that they want to repeat in the future. As the manager, we would couch our employees to responsive, attentive, and have a sense of agency to every guest regardless of his or her status. In return, the guest will return reward the business with loyalty, patronage, and better referrals.
Second updating technology help in creating a better customer experience. Today hotel businesses are adopting hotel management software. An example of such software is a property management system (PMS) used in streamlining the check-in and check-out processes, automation of daily task and staff management, generation of financial report as well as improving customer experience. The PMS system ensures that customers are served faster. The provision of personalized customer service also ensures improved quality services. This makes the customer feel more important and valued. For example, front desk attendance should call the customer by their names and also should be able to provide valuable information to the customers, for example, the current offers in the hotel.
Revenue Management
Revenue management refers to the application of analytics to forecast consumer behaviour at the market place and maximize the availability of services as well as the price to maximize revenue growth. The objective of every business is the optimization of profits through the provision of quality services. The profitability of the business depends on the amount of revenue generated. Therefore, the business should focus on enhancing the economy of scale.
Copthorne Hotel offers 211 en-suite rooms. Delicious Asian cuisine at their Bugis Street Brasserie as well as easy access makes it one of the fantastic places. To increase accommodation revenue the hotel management should focus on customer satisfaction. An unhappy customer will hurt the reputation of the hotel. The management should, therefore, make sure they review the feedback of their customers. The management should not respond to customer complaints but should act on them. In case a large number of customer has similar feedback or request, make sure to implement changes in hotel culture.
The application of technology can also play a valuable role in improving accommodation revenue for the hotel. The hotel should list its service in an online booking platform like booking.com. Such a platform will help increases the hotel’s overall group hotel bookings as the services are visible to a large population. The hotel management should also encourage guest referrals. The management should encourage satisfied customers to spread the gospel on their experience in the hotel. Reward guests for their repeat stay, gift cards, and free meals.
To increase accommodation revenue the hotel should offer outstanding services to its guests. A happy customer pay dividends. They will communicate with their family and friends about their experiences. It is necessary to ensure that the customer gets the best services from the business. Differentiating your services attract more customers and hence the business makes more sales.
Motivating employees also helps them to be better salesmen. It is good to recognize that employees are important assets for the business. Keep them motivated and focused on your clients. Encourage the hotel team on methods of cutting costs as well as ways of maximizing customer service and increasing revenue. You should also ensure that employees are rewarded for their efforts and ideas. Happy employees will engage positively with visitors.
Hosting private functions and special events play an important role in increasing hotel revenue. The hotel should create space for hosting private event business conferences, weddings, family gatherings, reunions. This will help in increasing group booking. Special events like lover’s weekends and Hot Tub events held during winter months can help the hotel to fill the accommodation room. The hotel is, therefore, able to generate more revenue even during the low season.
Offer unique services that are not offered by your competitors. This gives the visitors a reason to choose your hotel and not others. The management can differentiate the hotel through outstanding customer services, favorable pricing, later checkout time, and free entertainment. The promotion of creativity plays an important role in attracting more customers. The management should apply proactive and creative solutions to reduce operating costs and maximize revenue without altering the day-to-day operations of the business.
Elements of Quality Theory
The quality management process is characterized by four main components which include quality planning, quality control, quality assurance, and continuous improvement. All the elements involved in the quality management process focus on enhancing the customer experience. The first step toward offering quality is a commitment to quality. The manager should support the operations of the hotel for it to achieve the desired goal. Those in leadership should lead by example.
Quality assurance should focus on customer satisfaction. Effective quality management enables the management to meet consumer needs a systematic and formal approach that is founded in facts and not conjecture. Though some business leaders focus on short-term monetary gains and bottom-line profits, quality encourages the management to put more focus on customer satisfaction and long-run strategies aimed and enhancing organizational performance. The management of the Royal hotel should, therefore, focus on ensuring that they offer services that maximize customer satisfaction.
The management of the Royal hotel should also focus on employees and team empowerment. Although the top leadership is responsible for the quality offered to customers it is good to understand the real work is done by those who are at a lower level of management. The hotel should, therefore, invest in the training and development of employees on how to offer quality services. This may require a change of organization to adopt change as we are living in a dynamic world that requires continuous training and development.
Also, the hotel should ensure that there are aware of the cost associated with quality improvement. Some of the quality cost includes the quality system. To enhance the quality of service delivery hotel management be required to invest in technology. This involves the cost of installing the property management system. Another cost involved in quality control is the cost of poor quality. These are costs associated with deficiencies found in service delivery hence leading to customer dissatisfaction. For example, complaints by customers may result in a loss of customers.
Recommendation as new food offerings
To offer recommendations in the food and beverage industry I a first required to identify the challenges affecting the industry or the business. From the questionnaire filled it is observed that some of the Heads have struggled without direction, particularly the Restaurant Manager and the Front Office Manager. It is therefore recommended that the management should give direction and influence all junior staff. The breakfast service scores poorly while the customer waits for long to be served with the main course as they are cooked to orders. We, therefore, recommend that the hotel should adopt ready food strategy where all food offered by the client are readily available. Employ qualified chief to ensure the foods offered are of high quality. Adopt casual dining which should be served at a reasonable cost. We also recommend room service as opposed to restaurant services. Redecoration of the room.
How to achieve higher food sales in the hotel
To increase the sale in the hotel sale the hotel management should ensure that customers are satisfied. The customer should, therefore, focus on improving the quality of the services offered. This will help in ensuring positive reviews as negative reviews by the customers reduce the number of customers who visit the hotel. A satisfied customer will review the services positively, return to the hotel for services and also refer more customers to the hotel hence increasing the hotel revenue.
The hotel should also implement the feedback offered by the hotel guest. This makes the employees feel that their response is valued and hence the management is concerned about offering quality service and hence even though they are not treated well previously they will be willing to return for service. The management should also redecorate all hotel rooms so as to attain TripAdvisor and on Booking.com review. This creates a good image for the hotel hence attracting more customers.
As observed Royal hotel average rates are lower as compared to the market rates in Scottish however weekend occupancy was poor. Based on the analysis of the demand for the room during the weekend we recommend the management should offer host special and private events during weekends. This would generate more revenue for the hotel as during weekends there fewer guests in the room. The hotel management should work on preventing poor online rating which may affect their customer perception. The provision of the differentiated product will also contribute to making more competitive in the market hence increase its market share. As a result of increased market share, the company will be able to increase its revenue which will translate to high profits in the long-run.
Checklist of bullet points for the Manager to go through to increase the Food Gross Profit
To increase the Food gross profit the management should ensure that the hotel is able to meet the following criteria;
- Customers are offered high-quality services.
- The Heads have should offer direction, particularly the Restaurant Manager and the Front Office Manager.
- All rooms should be well decorated so as to attract positive reviews on TripAdvisor and Booking.com.
- The hotel adopts casual dining instead of fining dining.
- The customer feedbacks are implemented on time.
- The price offered for hotel services is favorable to the customers.
- Hotel employees are competences and they are able to behave professionally.
- Source cheap raw material to reduce the cost associate with sale
- Work on ways to reduce poor online reviews