Thesis on the Cost/Benefit Analysis of Interactive Training on Hospitality Operations Personnel - Term Paper Example

 Thesis Interactive Training of Hospitality Operations Personnel A Cost / Benefit Analysis TABLE OF CONTENTS INTRODUCTION The hospitality industry spans the globe, with many hotel chains owning properties in dozens of locations. The popularity of any hotel or resort destination is ultimately determined by the visitors’ satisfaction with the vacation experience. This experience is influenced by the quality of interaction between the guest and the travel industry personnel and by the quality of facilities and attractions at the hotel/resort (Sheldon & Gee, 1987). In order to improve the quality of customer/employee interaction, state of the art training facilities must be provided to the employees to ensure high levels of professional competency (Siguaw & Enz, 2000). Training and development of human resources is important for destinations wishing to remain competitive in the world travel market. The rise in employee turnover costs and the increased use of technology in the industry further emphasizes the need for training (Sheldon and Gee, 1987). Internet based ‘interactive training’ programs (an umbrella term that includes both computer based and multi-media training) of hospitality operations staff provides access to on-demand training, tracking of each trainees’ progress, as well as in-depth reporting of each trainee (hotelonline.com, 2000). The training is provided with an interactive format that includes text, animation and audio. A successful interactive training program in the hospitality sector ensures consistency in providing a quality environment for employees, guests and visitors. It is a cost effective way of upgrading skills of hospitality personnel, the benefit of which can be visible from consistent and quality delivery of essential guest services and avoidance of any litigious situation. In the present age of IT dominance, interactive training of hospitality personnel is an integral part of the industry without which introduction of technologies in the hospitality sector would not have the desired result. Technologies such as broadband communication, wireless application and artificial intelligence have revolutionized the whole landscape of operations for the personnel in the hotel and tourism industry also. With new innovations in the IT sector, more and more hotels are equipping themselves with the tools of modern technology to ensure global connectivity to their customers, particularly corporate executives. Without upgrading, the knowledge and skills of hospitality personnel rapidly gets outdated. In the competitive atmosphere of modern day hotels it is crucial to satisfy and win the loyalty of each customer. A satisfied customer apart from becoming prospective customer for the future may also bring in more customers through positive multiplier effect (Duprey & Kearsley, 2005). In the new e-economy, the value of human capital, meaning mainly employees’ skills, competencies, and knowledge is greater than any other form of business capital and can crucially drive competitive advantage (Cohen & Levinthal, 1990). Increase in skills leads to improved performance which enables the employer to meet the needs of the employees also helping in retention of the precious talent. “No hotels can have excellent operations without excellent employees and that requires excellent human resource practices” (Siguaw & Enz, 2000, p.48). Human resource skills have always been an important element in the hospitality industry. “Friendliness and a willingness to serve others are the tools of the hotel trade, and training is the sharpener that refines the tools into hospitality machines” (Higley, 2004). Proper attitude starts with management and ends with diffusing it to all the staff of the hotel. It is of utmost importance to make right impression at the front desk which is reflected through a positive, outgoing and friendly attitude and also through efficient service. Increasingly intense competition, high customer expectations and retaining quality employees are challenges faced by the hotel sector. One of the best ways to address these challenges is through consistent delivery and assessment of employees training programs (Duprey & Kearsley, 2005). E-learning or interactive learning can be an effective training tool, which is essentially the computer enabled transfer of skills and knowledge. In interactive training, study time can be reduced 30-70% compared to traditional training methods (Duprey & Kearsley, 2005; Walsh, 2004). Many believe that traditional training can not be substituted since this involves a personal touch with the trainee that can not be substituted by impersonal machines. Hotels depend on a person-to-person interaction with the guest and whether this can be taught with the use of machines is a hotly debated question which has its advocates on both sides. Interactive training of operations personnel has the potential to directly impact the success of hospitality based organizations. Using of information technologies in the hospitality sector has resulted in notable advantages in competition, cost reduction, efficiency, and information sharing. Internet, intranet, e-mail connections, electronic trade, central reservation systems, and web applications are some examples of IT applications that have been broadly implemented throughout the industry (Ham, Kim & Jeong, 2005). Revenue of hotels and Resorts is also dependant on meetings, conferences and conventions that scenarios demand robust Internet related functions and network management. These place a load on network systems, requiring specific infrastructure, service and support. It is imperative to train the hotel employees in the use and maintenance of related equipment, which can enable them to attend minor problems to deliver a seamless service. Pegasus Solutions Inc. implemented its web based training program for Independent Hotel Corporation employees and member hotels by using Net-Rez ®, the web based interface for Pegasus Rezview ® Central Reservation Service. Pegasus’ web based training courses for Rezview enables hoteliers to train geographically dispersed personnel. The training uses interactive lessons to engage users, as well as graded tests to assess performance (buyerinteractive.com, 2003). Hyatt Hotels Corporation, Hilton Hotels Corporation, Marriott International Inc, and Starwood Hotels and Resorts Worldwide have been using Pegasus’ new group reservation processing capabilities since 2004 (hotelonline.com, 2004). Hoteltraining.com, a web based company provides on-demand training, tracking of each trainee’s progress, as well in depth reporting for each trainee. The training is provided in an interactive format that includes text, animation, and audio. Performance appraisal during training is provided by way of instant responses that are given to every answer submitted by a trainee (hotel-online Special report, 2004). In order to help the front office staff provide excellent service and conduct their duties smoothly, the need of first class infrastructure for the customers benefit can not be over emphasized. Hotels like the Radisson South and Plaza Tower in Bloomington, MN has installed a system of "audible signs" for sight-impaired persons. Guests can borrow a receiver at the front desk that picks up location-specific audio signals giving directions to the front desk, rest rooms, elevators, etc. (Withiam, 1997). In the big organizations and groups, which breaks down into regional and functional operating companies, the danger of sitting on talent, consciously or unconsciously, need to be avoided, which can be achieved by taking all management above a certain level of seniority as group resources. In such cases, appraisals and other management development processes need to be monitored by a central department or head office. Increasingly in multi-national companies, such approaches to management and staff development make use of interactive computer based system (Boella, 1995). A big advantage of Interactive training can easily be seen as the uniformity with which training may be imparted to all employees of an organization regardless of the geographical location to provide a standard of service that runs through all the locations. It would also assist in the identification of exceptional talent for further development and training. This is something that traditional methods of training would find extremely hard to emulate. THESIS STATEMENT Increasingly intense competition, high customer expectations and retention of quality employees are challenges which all hoteliers face. One of the best ways to address these challenges is through consistent delivery and assessment of employees training program (Duprey & Kearsley, 2005). Successful properties have realized that by keeping their employees’ skill level up, and knowledge level sharp, they will benefit in terms of increased productivity of their employees and thereby enhance revenue earnings (Perks, 2003). There are numerous advantages to implementing an interactive training approach. For one thing, interactive training programs allow its users to learn at their own pace, and offer a virtual support structure for future references. Knowledge transfer is an issue of great concern for many organizations; technology can improve the efficiency of knowledge transfer, by creating a codified system, where such knowledge can be stored, shared, and accessed by anyone within the company (Albino, Garavelli & Gorgoglione, 2004). Interactive training systems can be programmed to disseminate training tutorials in ways best suited for the trainees.Companies can monitor progress, and maintain control over the flow of information. Human resources managers examine training programs to see whether those programs are based on properly assessed needs, how those needs have been addressed, and whether employees are able to integrate their newly acquired learning into the workplace. While there is no denying the importance of internal factors, external factors play a substantial role in the effectiveness of training programs (Tracey and Tews, 1995). Training climate and organizational commitment are important for training effectiveness. However, research indicates that identification of factors which influence training effectiveness is a difficult task and further research is needed to develop a comprehensive model of training effectiveness (Tracey, 2003). Do the benefits of interactive hospitality employee training really outweigh the costs? This is an issue that has been subject to an extensive amount of research. By performing a cost / benefit analysis (CBA) on the interactive training of hospitality operations personnel, the valuable relationship between training of this kind and productivity in the hospitality industry will be illustrated. Despite skepticism from academic quarters the use of CBA is justified, even if it sometimes produces undesirable outcomes, as long as the total costs associated with the analysis itself (the costs of undesirable outcomes, plus procedural costs) are lower than the total costs associated with alternative decision procedures (Alder and Posner, 2004). With yield-management systems, most hotel operators target maximizing of revenue. Such an approach, however, generally fails to consider the costs associated with acquiring that revenue. It is also argued that interactive training using Information Technology can not replace the traditional methods of training, especially in the hospitality industry where the prime source of customer satisfaction is the personal interaction between staff and guests. Is it possible to teach an individual how to behave when in direct contact with a guest on a computer? Would such training be able to substitute the value of role-play and the personal touch of an experienced trainer? Advocates for the old traditional methods of training argue that each property is unique and has its own atmosphere, traditions and history. These can not be substituted by factory produced hotels. Interactive training, so far as it is used to make employees adept in the use and maintenance of the tools of modern technology is good but this thesis does not target to create an argument that traditional methods of training be totally replaced by interactive training using computers. The objective of this thesis is to understand the use and cost-effectiveness of interactive training to the extent that such training is targets improvement of service to customers who increasingly are savvier in the use of modern technology. RESEARCH QUESTIONS Through research and analysis I will attempt to establish the costs and benefits associated with the interactive training of hospitality operations personnel, particularly front desk staff. This will require the examination of several issues, questions and environmental factors. The following questions will guide my research. 1. What role do hotel employees, namely front desk staff, play in shaping the success or failure of their organization? 2. What is the relationship between hospitality operations personnel and customers? 3. Does the quality of hospitality operations personnel and use of guest service technologies by hotel firms impact a customer’s selection of a hotel? 4. How, and in what respect traditional training methods differ from interactive training and how integral is the interactive training of hospitality employees to competition and achievement in the industry? 5. What is the current environment of the hotel and travel industries? 6. Taking into account the current global economy, is it realistic to view hospitality training as a tool for generating revenue? 7. What is the Cost-effectiveness of traditional training method of hospitality personnel when compared to interactive training methods? 8. How has booming training in other sectors, such as the insurance industry, demonstrated the cost benefit of employee training? 9. How does interactive training impact retention of employees? DEFINITION OF TERMS All dimensions of an organization and an industry need to be examined in the light of information and communication technology applications. The Internet not only provides several opportunities for companies to conduct their business but also alters the role of competition within an industry by causing several threats. To counteract the threats of the Internet, and to achieve competitive advantage, a firm has to develop a strategy for using the opportunities of the Internet (Gratzer and Winiwarter, 2004). An interactive participant centered training program was found to be the most effective method of adult learning. It provides more measurable results, and higher retention rate (Higgins, 2004; Gratzer and Winiwarter, 2004.) The interactive process provides all participants with the unique opportunity to contribute supplemental material to the discussion (HSMAI, 2003) and thus help sustain their interest throughout the course of the training. On-the-job training implies planned structured training conducted on the actual job site, with written objectives, content, and procedures. On the job training follows written objectives, content, and procedure so that any employee going through the training would receive the same instruction. The trainer would either be experienced employee or would be trained formally to conduct on-the-job training (Jaszay and Dunk, 2003). Line management is one of the vital aspects of interactive training, which complements the training procedure through in-house support. Instructions, if left to training staff alone often leave an undesirable gap between line management and trainers. This can be overcome by providing training to skilled manpower in different departments such as kitchen or front office and to ensure that these training personnel are working with and for line management (Boella, 2003). Skill inventory system are used to identify skills that exist within the hospitality sector as also the skills that need to be present in the work force but is lacking (Tanke, 2001). Skill inventories can be a motivational device helping employees to reach their full potential. Skill inventories can be used to identify strength, weaknesses and imbalances in the current work force and can be used to identify employees for long term as well as short term training (Tanke, 2001). The buddy system is the most the most widely used method in traditional one-on-one training. When a new employee joins the work force, they are often paired with seasoned employee to show them the different facets of the industry. This is called shadowing or trailing. However, for successful shadowing of new staff, it is imperative to train the trainer in an effective way for the training to be beneficial (Arduser and Brown, 2005). Cross-training techniques that employ the existing staff of a hotel are the most popular in-house training methods adopted by hotel and restaurant industry. Extremely cost efficient, this training lets people experience problems someone in another position is familiar with, which allows for more efficient running of the operation. More importantly, it allows people to be able to use downtime to perform tasks outside of their specific job description, which may allow operations to staff fewer people. The more efficient the establishment is, the better the services received by the guests (Arduser and Brown, 2005). Payback Training Systems (PTS): Founded in 1994, Payback Training System (PTS) is the leading developer of technology based training including computer based training solutions for large employee populations in the service industries, including the supermarket, foodservice, general retail and hospitality sectors. PTS clients list includes AHOLD, USA, Hilton Hotels, the Fleming Companies, Giant Eagle, Price Chopper, Nash Finch, Spartan Stores and SUPERVALU, as well as the U.S. government (hotelonline.com, 2004). Concierge Service: A concierge is a staff member of a hotel or apartment complex who assists guests or residents as by handling the storage of luggage, taking and delivering messages, and making reservations for tours. A concierge assists guests with various tasks like find taxicabs, restaurants, and interesting places to visit. There are private concierge service companies that cater to individuals or organizations and provide a whole range of services. Typically provided services include travel arrangement, event planning, vacation planning, home-watch management and errand services to name a few (answers.com, 2006). Information technology (IT) or information and communication technology (ICT) is the technology required for information processing. In particular the use of computers and computer software to convert, store, protect, process, transmit, and retrieve information from anywhere, anytime (Wikipedia, 2006). APPROACH / METHOD Assessment of net benefits from interactive training by the lodging sector requires cost benefit analysis (CBA). This analysis would require identification of the effects of interactive training of hospitality personnel on the customers. It then would require the effects to be measured in some common unit so that aggregate benefit can be compared with aggregate cost (Sugden, 2004, p.89). This widely used technique can examine whether the overall benefit of interactive training exceeds its costs. It would perhaps also be necessary to determine whose benefits and costs are being assessed. It is the industry that needs to weigh the effectiveness of the interactive training and bears the cost of such training. The benefits accruing from interactive training would also influence the decision taken by the lodging sector. Guests are only concerned with the quality of service and not in how or where the employees were trained. Therefore, in this study, the benefits and costs accrued to the lodging sector are taken into account. The study also assess the benefits that customers receive from interactive training services in the hospitality sector and compare how they are distinct from traditional training provided by the sector (Akama, Mukethe, and Kieti, 2002). There is usually a positive association between customer satisfaction and the destination’s long term economic success. Customers can express their satisfaction in many ways such as positive word-of-mouth publicity, paying compliments to the service or product provider, and development of long term loyalty to the destination (Akama et al, 2002). These are the variables which will be taken as the indicators of benefits. The approach towards applying cost benefit analysis would involve gathering data from different hotels that are utilizing interactive training for their hospitality employees and compare that with hotels that use traditional training methods. This shall provide a greater understanding of the advantages of interactive training. These data can be used to create a cost / benefit analysis of interactive training, highlighting past successes and failures, along with future potential. It will use published information from companies such as Hilton Hotels Corporation which has utilized interactive training systems since 2004, as well as others. This study will also scrutinize the insurance industry, where companies such as James J. Sullivan Insurance Agency, Inc. are at the forefront of implementing comprehensive interactive employee training strategies. Jim Sullivan began his career in restaurant training. The data collection strategy of this research work will be multiple interviews with guests (both current and past) of different hotels to obtain data for the quantification and comparison of the benefits of interactive training as compared to traditional training. First of all, through literature review, customers’ satisfaction is identified as the single most important factor in determining the effectiveness of interactive training.(Akama et al, 2002) The application of cost benefit analysis would require that different information will be gathered for determinant factors (customer satisfaction variables) as questions in the interviews. In the second phase interview with line mangers and trainers in hotels that have implemented interactive training shall be conducted to assess their perception about the advantages that have accrued (or not accrued) through the implementation of such training. In order to determine customer response to the effect of the interactive training a detailed survey shall be undertaken. Detailed methodology for the survey and the questionnaire to be used in the survey are given as Appendix I to this report. It is also proposed to carry out a brief study of the exit interview records of ex-employees that have left the hotel after the implementation of interactive training to make an assessment of whether the reasons for turnover has been due, in any way, to this. The above data collected shall finally be rounded off with structured interviews with some of the hotel staff that have undergone training using computer assisted methods. For this the formats used by the trainers and evaluators shall be used to gather required information on how each of the person involved rated the quality and effectiveness of the training imparted/ received. LITERATURE Literature on the costs and benefits of interactive employee training typically culminate in the same conclusion: interactive employee training leads to better services and more profits (Walsh, 2004; Akama et al, 2002). Corporate level concern about service excellence has stimulated interest in employee empowerment. Empowered employees are found to be more committed to ensuring that service encounters satisfy customers as they have the necessary discretion and autonomy to satisfy the customers (Teare and Bowen, 1997). Employee retention and motivation can be increased through empowerment, which must be accompanied by appropriate training (Teare and Bowen, 1997). A recent survey published by Hotel & Motel Management (Yesawich, 2005) polled travelers to determine what five attributes influence leisure and resort selection. The results were as follows: Extremely/Very Influential: Two of the five top reasons that led vacationers to select one hotel over another are directly correlated with the effectiveness of hospitality operations personnel. The reputation of a hotel chain relies heavily on the quality of service provided by its employees. In a study carried out by the Cornell Centre of Hospitality Research, most of the survey participants did not refer to a specific dimension of hotel service but instead alluded to the staff members ability to deliver overall service quality (Dubey and Renaghan, 2004). The most frequently mentioned attributes of a hotel’s service personnel were: friendliness, attentiveness, consistency, efficiency, professionalism, a neat appearance, and a distinctive personality (Dubey and Renaghan, 2004). Interactive training can have a wonderful effect on all these areas except maybe the last. In the hospitality industry, the management makes particular efforts to keep the emotional displays of employees in check and gives premium to the value of authenticity (positive display of emotion). Both experimental emotion research and customer service theories suggest that authenticity enhances reactions to service encounters (Grandey, Fisk, Mattila, Jansen, and Sideman, 2005). Some scholars held that authenticity is less critical to target reactions when the reason for the exchange is purely economic. Perhaps authenticity only emerges as important when all other distractions are controlled, but has minimal influence in a dynamic and realistic interaction. In response to these unknowns, many researchers have called for attention to authenticity in service encounters (Ashforth and Tomiuk, 2000; Mattila and Enz, 2002; Pugh, 2001; Tsai and Huang, 2002). Service providers are recognizing the importance of customer service and are investing considerable amounts of effort, time, and other resources into training programs to improve customer service. Customers’ on the other hand are demanding greater level of service (McColl-Kennedy and White, 1997). The importance of customer expectations of service quality has been acknowledged. However, there are relatively few studies which address the extent to which customer expectations of service quality and their subsequent assessment of the service compares with that of the service providers and even fewer which try to redress the issue through training programs (McColl-Kennedy, and White, 1997). In an article titled “Superior Service Sells Guestrooms,” (Bare, 2003), the American Management Associations said: Sixty-eight percent of those (hotel) companies that increased training budgets at the same time as workforce cuts reported a jump in profits, while only 42 percent of those who did not increase training budgets reported a profit increase. As for increases in productivity, 44 percent of those who increased training budgets reported an increase compared to only 29 percent of those that did not increase training. After a year, the numbers were even more convincing. Those who increased training budgets reported that 80 percent had a jump in profits and 70 percent reported increased productivity. The numbers were 46 percent and 41 percent, respectively, for those that kept training budgets the same. (Bare, 2003, p32) The existence of less tangible costs of staff turnover, such as lost quality and reduced efficiency along with elapsed time since the last training are widely acknowledged, yet very difficult to quantify. A study conducted by (Davidson, Guilding, and Timo, 2005), in the Australian Tourism sector underlines how staff turnover results in skills spillage, necessitating efforts directed to in-house training to maintain quality and service level. The study emphasized the need for in-house training to replace the lost skills resulting from the turnover (Davidson et al, 2005). Turnover of employees places a huge strain on the resources of the Hotels who have to maintain, train and pay for reserve staff just for such exigencies. Employee training and skill building have become increasingly critical areas of human resource management for firms working to enhance service quality, reduce labor costs, and increase productivity (Siguaw and Enz, 2000). Five best practice champions, as identified by these authors, Coastal Hotel Group, Disney’s Polynesian Resort, Four Seasons & Regent Hotels and Resorts, Hyatt Regency Scottsdale and Simpson House Inn devised approaches to training consistent with their specific circumstances and challenges (Siguaw and Enz, 2000). According to Dixie Budke (Siguaw and Enz, 2000, p.54), General Manager of Simpson House Inn of Santa Barbara, “Seamless, flawless, gracious service can be given only by people who feel good about themselves, and what they are doing, and who are motivated intrinsically by their competence and sense of personal mission.” Training helps increase competence and thus confidence to a job well leading to the overall ‘feel good’ factor. Interactive training has increased the efficiency and widened the accessibility of training programs. “As a growing number of businesses bolster their networks for voice and data traffic, conferencing equipment is becoming smaller, smarter, faster, more affordable and easier to use. The net result means corporate training presentations and interactive conferencing and collaboration will soon be simply another application on the network” (Newman, 2005). Constant and consistent delivery of training materials using an interactive format with audio enhances learning and improves retention. Interactive review sessions provide positive reinforcement for correct answers as well as hints to help guide the participant when wrong answers are given. In recent times, traditional on-site reservations training seminars have become too expensive for most hotels and on-site trainings are often inefficient and ineffective. With access to Internet based training, hospitality personnel can access workshops run by agencies like hoteltraining.com which are accessible 24 hours a day and the whole week round. This type of training program provides flexibility and can be adjusted during free hours (hotelonline.com, 2004). A study by McDoland (2003) examined the influence of multi media computer technology in a training system vis-à-vis traditional on-site training. This study indicated a significant improvement of users’ attitude in the traditionally trained sites, coupled with a significant decline in employee’s attitude towards the training they received in the multi-media trained sites, which initially leads one to believe that employees responded more favorably to the extra attention given by traditional training methods, since this type of training involve much more human contact (McDoland, 2003). The traditional training methods have a huge advantage over the machine based training methods since these allow for a personal touch encouraging the feeling of ‘belonging’ in an organization. The trainee can, and is encouraged to, share personal perceptions, feelings, frustrations and difficulties with his mentor/ guide. This can help to stop turnover intentions to a great extent. This kind of personal touch is not possible in computer assisted training techniques, at least not in the form that they exist today. The trainee feels like a cog in a machine where he is constantly under watch and under pressure to perform according to norms laid down. In case this can not be achieved, even if for reasons not associated with the ability or capability, but because of other problems including those off-site the employee loses his will to continue in employment and seeks avenues that offer a more humane and responsive atmosphere. Another major problem with Interactive training is that the modules are designed to cater to the average employee and do not incorporate provisions for recognizing special needs of the lower than average trainee or provide a basis for accelerated growth of exceptional talent. Such adjustments are vital for maintaining employee interest and motivation. While traditional methods of training especially suit such conditions the interactive training methods need a lot of further development before they can really take over the task of providing a complete suite of training and turning out a product that fits the special needs of the employer. One may be able to produce mechanics using computer aided training but never artists. Computer aided interactive training suffers from another drawback that is important to consider before a full fledged discussion of its merits. This is that it provides no room for innovation and initiative among employees. For every situation there is a standard response and the nuances of understanding different needs of different customers in different situations would be beyond the capability of a machine fed program to accommodate. In so far as training in the use of computers and Information Technology and becoming adept at it is an area where such training scores over traditional training methods but in others it may come in a distant second best. Organizations have therefore to consider and decide on an optimal blend of both systems to achieve a workforce that is at the same time adept in handling people as individuals and using modern technology to improve their efficiency and efficacy. A number of studies have been carried out on tourist satisfaction in the hospitality sector (Pizam, Newmann, and Reichel, 1992) empirically identified eight factors of tourist satisfaction and suggests means to measure them. By using factor analytic approach based on data obtained from survey of 865 vacationing tourists, the following factors of tourist satisfaction were derived: beach opportunities, cost, and hospitality, eating and drinking facilities, environment, and extent of commercialization (negative). Another study hypothesized that tourist satisfaction is positively related to the attractiveness of tourism ventures location, areas of strength of the ventures and the number of services offered and the entrepreneur’s management skill (Newman, 2005). While organizational dimensions were examined by an area of strength index constructed from the responses to seven questions relating to various aspects of the quality of the business such as quality of the service, employee professionalism, price, product innovativeness, facilities, customer service, and location. Entrepreneurial dimension was measured by a personality index and all the questions were scored on a 5 point Likert scale as well as customer satisfaction measure (Newman, 2005) Parasuraman et al. uncovered a set of service attributes which the customers’ might use as criteria in assessing service performance (Parasuraman et al, 1988). Subsequent empirical research based on the exploratory work produced SERVQUAL; a 22 item scale for measuring service quality along five dimensions namely reliability, responsiveness, assurance, empathy, and tangibles (Parasuraman et al, 1988). SERVQUAL quantifies service quality by subtracting customers’ expectation scores from their perception scores on the 22 items. Originally consisting of 22 items and 44 questions, the scale was truncated to a one scale format with a reduced questionnaire size, which reduces the time required for completion (Parasuraman, Zeithaml, and Berry, 1991). Although the basic SERVQUAL scale has been revised and modified, there is not much change in its original structure and content. As service quality is becoming a major part of business practice, it is important to be able to measure and research its effectiveness (Mei, et al, 2004). A study was carried out to test the reliability and validity of a customized eight item SERVQUAL scale in the hospitality industry as also to determine which dimension is best predictor of overall service quality. The study suggested that of the three dimensions of service quality: employees, tangibles and reliability. Employee dimensions emerged as the best predictors of overall service quality (Mei, et al, 2004). In the field of hospitality manpower training and revenue earning linkage research has not been carried out till now. The implications of integrating Customer Relation Management (CRM) and Revenue Management (RM) strategies in the context of the hotel environment, too have received little attention. The management of the company has to decide what long term valuation model would be suitable for the organizational environment and the hotel’s present IT structure must have the capability to support the implementation of a long term valuation of revenue management system (Noone, Kimes and Renaghan, 2003). There is need to assess the impact of training, job content, and reward structures on employees. To date, no empirical work has explored the potential of hospitality training as tool for generating revenue. Additional research is needed to assess the relationship between training and revenue earning in the current global context. A competitive advantage is important to any organization, but in an industry as competitive as hospitality, it's of the utmost importance. Every single day is a challenge and new opportunity to turn prospective guests into loyal customers. Interactive hospitality training will help the employees to capitalize on new found opportunities to improve the sales, service and leadership skills of employees. Multimedia is increasingly recognized as a tool from almost all business functions from production to marketing. A great majority of hospitality and tourism enterprises are equipped with computer based systems and technologies, which process billing information and guest profiles speedily and accurately and which facilitates management and control tasks such as monitoring of forecasts and budgets or price and product inventories (Sigala et al, 2001). “Interactive multimedia provides enormous benefits in a variety of educational contexts like access to large dispersed population, teaching of abstract topics as well as difficult and hazardous experiments, and it provides individualized as well as collaborative learning.” (Interactive Multimedia in Education and Training, 2004) The process of interactive training has the potential to reduce time, effort and budget in completing the administrative and repetitive chores. Another benefit of interactive training is the availability of simulation models. These simulators are “computer-based training programs that provide the learner with hands-on training for a particular task or tool.” (Bowness, 2004) The simulators replicate an employee’s actual work assignments, and thus provide training that allows a learner to hone his or her skills before face to face contact with the customer. This is an extremely valuable experience, especially in the case of hospitality staff training. By mimicking realistic workplace scenarios, employees can be pre-trained to handle an abundance of situations, and thus are prepared when such situations arise. IT-based courses using interactive media for learning provides flexible course curriculums, as and when the employee requires it. Training thus becomes a continual process, as new ideas and strategies are brought to the forefront of business needs. This is extremely cost and time effective, as it provides an opportunity for employees to increase business acumen without sacrificing work. Since interactive systems allow employees to access tutorials from virtually anywhere, learners can engage in training while on the job. Managers do not have to forgo employees during training, since they can receive such training on site. IT is one of the critical factors for the success of the hotel industry. Harrah’s has used IT to gather substantial business intelligence and identify its best customers, while Ritz-Carlton uses IT to personalize every guest room and every stay for its returning customers (Piccoli, 2004). The Educational Institute of the American Hotel and Motel Association and Payback Training Systems, NJ announced in 2004 an agreement which enabled Payback to convert EI hospitality videotape content into a rich interactive platform for CD-ROM and web based training (hotelonline.com, 2004). The Payback Training System was designed to be cost effective for every level of hospitality industry and Payback is one of the premier suppliers of technology based interactive training (hotelonline.com, 2004). Sixteen best practice hotels, as identified by the authors of this study Siguaw and Kathy (1999), who have successfully applied information technology have been examined and the outcome of the study suggested that IT should be used to eliminate paperwork and reduce response time to guest requests and most essential is the evaluation of the third party or software providers to find the most cost effective vendor. However, application of information technology in the hospitality sector should not hamper personal service to the guest. Table 1 Application of Information Technology in Selected Hotels Champion Practice The Balsams Grand Resort Hotel Comprehensive guest history program The Barbizon Hotel and Empire Hotel New York Software eliminates logbooks and standardizes record keeping Candlewood Hotel Company Implemented electronic system of recording and imaging accounting and construction records Carlson Hospitality Worldwide Most efficient and productive reservation system Cendant Corporation Computerized system integrates all hotel MIS functions into one system Courtyard by Marriott Internet system replaced manuals and printed materials Fairmont Copley Plaza Property management system used to used to improve concierge performance Hotel Nikko at Beverly Hills Portable phone system installed throughout hotel IMPAC Hotel Group Lobby kiosk touch-screen guest-tracking system Inter-continental Hotels and Resorts Global strategic marketing database Kimpton Group Hotels and Restaurants Outtrigger Hotels and Resorts Private label reservation system Marriott International Information technology aligned with corporate strategy Marriott International Revenue management systems for revenue enhancement Omni Hotels Integrated property management and revenue management system Promus Hotel Corporation Computerized integrated payroll and benefit accounting system Radisson Worldwide Reward program for travel agents The Ritz-Carlton Chicago, a Four Season’s Hotel “Compcierge” position to handle guests computer related problems Source: Siguaw and Kathy, 1999 The latest information on the above could not be obtained; however, it can still serve as a basic benchmark for comparison. Benchmarking is often defined as the search for best industry practices which lead to top performance (Camp 1995, p3); this helps them to identify how to better meet customer needs, identify their strengths and weaknesses, stimulate continuous operational improvement and create innovative ideas in a cost-effective way (Karlof and Ostblom, 1994). The few examples of benchmarking within the tourism industry include the benchmark group of 18 hotels identified by ACCCOR which are thought to account for the development of total performance (Siguaw 1999b, p37). Hilton Hotels Corporation has utilized this method of high-tech, interactive training since 2004. (Payback Training Systems) PTS, the leader in interactive based training solutions, and Hilton Hotels Corporation (HHC), the world’s best-known hotel brand, have worked together to develop a unique, interactive courseware program to train thousands of employees at Hilton Reservations Worldwide and global reservations offices on how to use Hilton’s new reservations system. The objective was to provide high impact employee training and to support and reinforce the unique Hilton customer service culture (www.hospitality.net, 2004). The various ways in which new technologies have been employed by hotel firms to meet strategic objectives, and the degree to which various segments of the lodging industry actually use new technology has been examined in a study by Center for Hospitality Research of Cornell University. The findings supported the hypothesis that the hospitality industry in general has been conservative in the adoption of technologies. The data analyzed suggested that neither the hotel’s market segments, nor the customer needs seem to drive technology adoption, suggesting that strategic orientation may not guide technology adoption. The authors suggested that the hotels need to reevaluate their technology initiatives to update their efficiency, revenue and guest orientation technologies (Namasivayam, Siguaw, and Kathy, 1999) (Khosrow-Pour, 2002, p.209). Two broad based think tanks, sponsored by the International Hotel and Restaurant Association (IH & RA), examined the future of information technology in the hospitality industry. The study revealed that hospitality industry is rapidly changing due to the acceleration of information technology. The travelers today do not exhibit a true brand loyalty and instead are choosing to patronize hotels that offer the best value proposition under existing budgetary constraints (Olsen and Connolly, 2000). In order to add value to the guests’ experience, there is the need to meet the challenge of prioritizing those preferences which adds greatest value to the hotel’s existing service offering. For this, the hotel managers and marketers must meet the challenge of determining which services are preferred by hotel guests (Olsen and Connolly, 2000). As mentioned by Dubey and Renaghan (1999), “managing customer value by creating quality and service that customers can see now is considered a critical component of companies’ strategic marketing. Customer value is what builds loyality” (P.79). Orientation to customer retention, frequent contact with customers’ and sincere commitment to meeting customers’ expectation are the new strategic rules of relationship marketing, which are based on factors other than pure economic assessment and product attributes (Bowen and Shoemaker, 1998). In a study of two independent samples of US hotels, various research priorities such as customer service, revenue enhancement or employee productivity during the process of selection of information technology were analyzed (Siguaw, Kathy, and Namasivayam, 2000). The findings suggested that the US lodging industry had focused on employing technologies that improve employee productivity and enhance revenue. Initiation of new technologies was not designed to improve guest service. Budget and economy segments invested in fewer IT strategies, whereas large, upscale hotels with gaming and convention business were found to extensively use IT. Those hotels with successful record of IT use and performance have the support of top management, utilize marketing and operation personnel in IT decisions, provide adequate training, and select a flexible system that can be upgraded easily to maximize return on investment (Siguaw et al, 2000). To investigate the level and trends concerning the prevalence of application of the internet in the hospitality sector, particularly about e-booking and reservations, several studies have been carried out recently (Yang, Flynn, and Anderson, 2004). A survey done in the Greater Macon area of Central Georgia revealed an exceptionally high percentage of on-line booking for Wingate Inn hotel (80%), compared to others. This is deduced to be due to private ownership of the hotel and discounted prices provided for each room if booked via their online reservations (Yang et al., 2004). Information coupled with technological developments, have been a critical ingredient for the hospitality business, while serving as a key success factor for effective lodging industry operation in the 21st century (Winston, 1997). Over time, individual systems like the EPOs (Electronic point of sales systems) within restaurant and food service and PMS (property management system) within hotels and cruise ships have been developed which perform key coordination and control function, acting as the central system around which all others revolve and interact (Brotherton, 2003). However, as opined by researchers, information technology is not a guarantee to gaining a competitive advantage. A sound strategic plan is a prerequisite to reach financial goals and to improve service standard (Buergermeister, 2004). In house training in the hospitality industry can be cost effective only if the required quality is ensured. For the training to be cost effective, in-house training has to be delivered by experienced workers. Trainers who are not trained to train fresh employees cannot deliver efficient, effective and quality output (Jaszay and Dunk, 2003). Employee turnover is generally recognized as a costly phenomenon in the hospitality industry, and hotel companies consequently have initiated various turnover reduction programs (Simons and Hinkin, 2001). There is no consensus in the literature about the connection between turnover and investment in training (Forrier and Sels, 2003). One point of view states that a higher turnover of staff shortens the period of return on investment in human capital which discourages further investment. The opposite perspective presumes that each departure creates vacancy, and hence the need for initial training (Forrier and Sels, 2003). A new web based HRM management tool published by the Centre for Hospitality Research at Cornell was developed by Hinkin and Tracey to help lodging practitioners accurately compute all of the costs associated with the departure and replacement of an employee. It comprised of seven screens that allows users to enter data that is specific to their business and to provide them with a detailed analysis of employee turnover. The tool can be used for assessing the turnover costs associated with a number of lines, supervisory and managerial positions (Hinkin and Tracey, 2003). A study on company’s training effort and employees’ turnover showed that although investment in training is particularly concentrated on inflow, and replacement problems, the study outcome showed a strong positive relationship between voluntary outflow and investment in training (Forrier and Sels, 2003). IT application in the lodging sector Razidor SAS Hospitality, one of the fastest growing hospitality companies in the world, has introduced an e-learning module to complement the organization’s existing learning forums of face to face training. Razidor SAS is known for providing dedicated service to employees through quality training entered the world of e-learning to reach a broader audience in quicker, more efficient and more cost effective manner (AH & LA, 2006 A). Intercontinental Hotels Group (IHG) has implemented a virtual concierge service, “e-host” for its Holiday Inn Hotels and Resorts brand. Accessed via the hotels’ free high speed internet access systems, e-host gives the guests whole day access to information normally provided by a traditional concierge, which includes services like area dining options, movies, shopping, transportation, and hotel specific information as well as access to hotel’s management and staff to provide immediate feedback via an online survey tool. While there are ‘e-host’ facilities for the tech savvy customers, at the same time traditional concierge services are not dispensed with, particularly in Holiday Inn destinations other than the U.S (hotelonline.com, 2004). The rapidly increasing e- marketing services in the lodging and hospitality sector, have seen some of the most successful companies like the Lodging Interactive, a company which provides a portfolio of internet marketing services to hundreds of hotels and resorts, worldwide, providing effective tools for e-marketing. Their prestigious clients include Marriott, Sheraton, Radisson, Hilton, Crown Plaza Hotels, Double-Tree Hotels, Candlewood Hotels, Wyndham Hotels and Best Westerns to name a few (AH & LA, 2006B). Hospitality industry: The current scenario Tourism is the 21st century’s main leisure activity. About 160 million people work in the tourism industry; tourism generates 700 billion US dollars all over the world and there are 40,000 travel agencies only in Europe. Even so, figures keep growing and prospects for the future are very bright (Pizam, 2004; WTO, 2006). Tourism appears to be the world’s most important service industry, both by number of employees and by the effects it has on the social and economic development of regions and countries (Holjevac, 2003). Tourism is presently considered to be the most lucrative sector in terms of earning revenues. There are diverse hotel and lodging facilities all over the world for families and business travelers these include upscale hotels to RV parks, motels, resorts, casino hotels, bed and breakfast inns, and boarding houses. According to a survey, nearly 62,000 establishments provided overnight accommodations to suit the travelers of different budget brackets (Bureau of Labor Statistics, 2005). International tourism has increased by 4.5% in the first four months of 2006. Preliminary results for the first four months of 2006 point to some 236 million international tourist arrivals worldwide or 10 million more than the same period in 2005, reflecting sustained growth in global tourism demand started in 2004 (WTO, 2006). Looking back on the tumultuous times of post 9/11, 2006’s trends so far confirm that disruption, while definitely affecting destinations at a local level, do not alter global or regional traffic flow (WTO, 2006). INTERNATIONAL VISITORS   1994 1995 1996 1997 1998 2004 2000 2001 2002 2003 2004 Inbound TOTAL (000) Revised 45,078 43,491 46,636 47,875 46,377 48,510 51,237 46,927 43,582 41,218 46,085 % Change -2% -4% 7% 3% -3% 5% 6% -8% -7% -5% 12% From Overseas (000) 18,458 20,639 22,658 24,194 23,698 24,466 25,975 21,833 19,117 18,026 20,322 % Change -1% 12% 10% 7% -2% 3% 6% -16% -12% -6% 13% From Canada (000) 14,970 14,663 15,301 15,127 13,430 14,116 14,666 13,527 13,025 12,666 13,857 % change -13% -2% 4% -1% -11% 5% 4% -8% -4% -3% 9% From Mexico (000) Revised 11,650 8,189 8,677 8,554 9,249 9,928 10,596 11,567 11,440 10,526 11,906 % Change 19% -30% 6% -1% 8% 7% 7% 9% -1% -8% 13%   U.S. RESIDENTS Outbound Totals (000) revised 46,763 51,285 52,999 53,229 55,697 57,222 61,327 59,442 58,066 56,250 61,776 % Change 5% 10% 3% 0% 5% 3% 7% -3% -2% -3% 10% To overseas (000) 18,149 19,059 19,786 21,634 23,069 24,579 26,853 25,249 23,397 24,452 27,351 % Change 6% 5% 4% 9% 7% 7% 9% -6% -7% 5% 12% To Canada (000) 12,542 13,005 12,909 13,401 14,893 15,180 15,188 15,570 16,168 14,232 15,056 % Change 4% 4% -1% 4% 11% 2% 0% 3% 4% -12% 6% To Mexico (000) revised 16,072 19,221 20,304 18,194 17,735 17,463 19,285 18,623 18,501 17,566 19,369 % Change 5% 20% 6% -10% -3% -2% 10% -3% -1% -5% 10% Table 2 International Travelers to and from the U.S except Canada and Mexico) (Note: Canadian and Mexican inbound and outbound data are subject to revision, Overseas include all countries (Source: U.S. Department of Commerce, ITA, Office of Travel and Tourism Industries, Banco de Mexico/ Secretaria de Turismo (Mexico) & Statistics Canada, July, 2005 The U.S. Department of Commerce announced in March, 2006 that the total international travel and tourism exports reached the unprecedented level of $104.8 billion in 2005, averaging $ 8.7 billion a month (ITA, 2006). This represents a 12% increase ($ 11.5 billion) in travel exports over 2004, which is twice the growth rate of travel imports (payments) during the same time period. 2005 also marks seventeenth consecutive year that the travel and tourism industry has generated a balance of trade surplus. In 2005, international visitation to the U.S. increased 7% over 2004 to 49.9 million visitors. This represents the second consecutive year the U.S. travel and tourism industry has benefited from positive visitation growth, having increased 12% to 46.1 million in 2004 (ITA, 2006). At the same time the number of rooms available increased to 4.41 million guestrooms. This availability far outstrips the demand and average room occupancy is only 61.3%. This gap between supply and demand is across the board for all types of lodging as evidenced by the fact that against an average room rate of 86.24 the average revenue per room was 52.90$ also 61.3%. This increase in competition among the providers for every room-night stresses the need for providing quality service to attract customers away from the competition. Table 3: Average Room Rates in Hotels across America Source: AHA, 2005 LODGING INDUSTRY PROFILE It is also interesting to note how the room rates have moved over the past 10 years. Table 3 shows the change in the average room rates. The rise from 62.86$ per day in 1994 to 88.27$ in 2001, its subsequent dip to 82.52$ in 2003 and then firming up to 86.24$ in 2004 (AHA) is a clear indicator of the general growth of the industry coupled with the high rates of inflation in the economy. The dip following September 11 are indicative of the effect of that catastrophic event on the entire country. The hotel sector is currently faced with the toughest challenge of balancing advances in technology with personal service. Technology is about to replace personal interaction particularly for the process of check-in and check-out. Recent trends show that online distribution and e-business has become the number one outlet in hospitality. In 2005, over 25% of all hotel room revenue was booked online. Another 25% of hotel bookings will be directly influenced by the Internet but done offline. In 2006 this percentage will exceed 27%-29%. Overall travel booked online will exceed 31%-35% of total bookings over the next 2 years. It is anticipated that by 2009 over 50% of all hotel bookings will be performed online. This current trend indicates that the standard travel agency commission, which is currently 10%, will disappear over the next 5 years in the same manner as it vanished in the airline and car rental sectors. The internet has provided a powerful alternative to the travel agency channel in terms of efficiency and speed (Starkov and Price, 2003). In the hospitality industry, the consumers are constantly seeking new sources of information to help them make decisions before purchasing travel services to make their trip more satisfying. Travel and hospitality e-commerce is among the top four growth categories, second only to finance and insurance service (Zhou, 2004). Use of internet by travellers to plan and book their trips continues to grow at rapid rate. In the U.S., according to the Travel Industry association (TIA, 2003), about 64 million used online travellers used the internet in 2002 to get information on destinations or to check prices and schedules, growing about 400% over three years. From 1999 to 2002, online booking has shown a remarkable double digit growth for four consecutive years, with a spectacular 58% growth in 2001, followed by 25% growth in 2002 (Zhou, 2004). The on-line travel booking industry has boomed to become one of the hottest Internet-based professional fields, as well as the fastest growing e-business sector. Online hotel room bookings have been increased by six times during (2004-2002) from $ 1.1 billion in 2004 to $6.3 billion in 2002. Its percentage as of total annual bookings had increased over 400%, from about 2% in 2004 to 9% in 2002. As indicated in the table 4, more rapid jumps in the on-line hotel room bookings for next few years is projected, $15.8 billion in 2005, which would account for 20% of total annual bookings (Yang, et al, 2004). Table 4 summary of recent annual online hotel/motel bookings Year 2004 2000 2001 2002 2003 2004 2005 Annual bookings in billions $1.1 $2.8 $4.2 $6.3 $9.9 $11.8 $15.8 As % to total annual bookings 2% 4% 6% 9% 13% 16% 20% Source: Yang et al, 2004 Currently, every hotel/motel chain has developed their own website in which one can bargain for hotel rooms online. With the advent of growing popularity of e-booking, bookings through both traditional travel agencies and traditional hotel telephone reservation systems has been declining each year, particularly for the upscale hotels (Table 5). Hotel chains and on-line travel agencies are fully aware of the potential of e-boom and are making full scale plans to prepare for the tough competition ahead. Table 5 Breakdown of Annual Hotel/Motel Room Booking Year Online Travel Agency Traditional Travel Agency Hotel Chain Own website Hotel Telephone Reservation Individual Walk-in Customers 2001 3% 21% 3% 63% 10% 2002 5% 20% 5% 60% 10% 2005* 9% 18% 11% 53% 9% * 2005 figure is projected (source: Yang, et al, 2004) In recent times the hotel sector is immersed in a global, dynamic business environment in which tourists have changed. Hotels, as well as destinations, are competing with one another in an increasingly aggressive way (Poon, 1993). The online booking of hotel/motel rooms, airlines tickets, advanced car rental, or total travel packages have become immensely popular for their convenience and delivery through the internet. With the present environment of phenomenal growth in information and communication technology, a staggering amount of information is generated which can not be managed by hospitality personnel alone. The internet’s infinite information space is the best solution for storing the business data in a systematic and coherent manner. Application of IT in the hospitality sector requires a huge amount of skilled manpower that can run the various functions of IT enabled services efficiently. In this context, the significance of interactive training for hospitality personnel is the best possible choice and no upscale hotel can ignore the importance and urgency of training their personnel to provide the best possible e- business services to satisfy the consumer’s needs. To be on par with competitors, excellent customer service provided by a team of competent and skilled personnel through total operation cycle including planning, design, processing, marketing and distribution should be the criteria for an efficient IT service operation. Cost Benefit analysis in the Insurance Sector As a part of its overall commitment to customer service, the Taiwan Branch of New York Life Insurance and Annuity Corporation partnered with Development Dimensions International (DDI) to include service plus in its core training curriculum. The ‘service plus’ (DDI program for creating service provider’s that can deliver unprecedented level of customer loyalty and satisfaction) has been providing services within the Taiwan Branch since 1998. During an evaluation survey of service plus, data was collected to evaluate the effectiveness of training in terms of business results and key customer service related competencies (www.ddiworld.com , 2005; Yang, et al, 2004). All managers agreed that there has been a marked improvement in the efficiency and quality of customer service since training was implemented. The results of the behavior change analysis was converted into gains in productivity and submitted to a complex cost-benefit analysis (www.ddiworld.com, 2005). The analysis compared the dollar value return for the program versus the possible gains for investing the dollars in different ventures. The final ratio of cost benefit was 5.18 or 518 percent ROI over a four year period. This figure represented a return far greater than what could be gained by investing the money in normal financial investment (a gain of $0.26 for every $1.00 invested). The figure shows the expected annual benefits derived from the analysis. Source: Development Dimension International (DDI), 2005 This graph is prepared by the DDI and does not appear to be a correct representation of fact. The return on investment has been averaged over a four year period and shown as a straight line. In practical terms the curve would, perhaps, be better understood if it were to be plotted year by year to show how the returns start on a slow scale, catch speed and then plateau to become flat showing no further incremental impact of having adopted particular training program. However, it is important from the viewpoint of understanding the impact of the program and the cost-benefit of implementing such a program. The factors considered in calculating long term impact were: program cost (materials, trainers time, facilities etc) participants salary degree of change in behavior (pre and post training) proportion of total job competencies affected by training reliability of measures turnover of participants over time decay of skill over time tax rates and variable costs number of participants attending training return gained if money had been invested in non-training ventures CONCLUSIONS Technology becomes a main source of sustainable competitive advantage and a strategic weapon, especially in the tourism and hospitality industries, owing to the pivotal role information plays in the description, promotion, distribution, amalgamation, organization, and delivery of Tourism products (Poon, 1993; Sheldon, 1997). Being an information rich industry, the hospitality and tourism industry was the first to utilize the information technology boom by experimenting and developing new means to distribute hospitality products and services, marketing information to consumers and providing comfort and convenience to travelers (Zhou, 2004). Travelers are constantly turning to the internet for travel planning and booking, and from the current trends, it can be assumed that travel booking will be the number one growth area for the internet in the coming years (Zhou, 2004). There’s extensive use of multimedia technology by the tourism and hospitality industries. Adoption of multimedia technology has led to development and prosperity of company’s competitiveness by permeating all functions of strategic and operation management. However, effective and innovative use of multimedia technologies is possible only when the work force has the knowledge to apply and harness the new technology tools and strategies, which in turn can lead to operating efficiencies and competitive advantages (Sigala et al, 2001). Because of technological and market changes, managers and employees constantly need to update their skills through training. Human resource departments in the hospitality sector after ascertaining training needs must prepare and supervise in house training programs for different levels of managers or specific service functioning areas. These effective training programs, apart from training productive employees, serve as recruiting edge to attract new employees (Yu, 2004). A multimedia training system is interactive and incorporates and stimulates real world situations. The effectiveness of interactive training can be gauged from the fact that within a span of one year after the incorporation of Payback Training Systems in the Hilton Hotels, the reservation agents and front office staff at hotel achieved scores in the 85th percentile in the first time testing (www.hospitality.net, 2004). This type of training also enables the employees of hotel to learn as they work with the actual reservation system. Close monitoring by the management for further follow up action makes interactive training an attractive proposition for every hotel. When it comes to interactive training, the possibilities are vast. The twenty-first century has marked a rise in such training strategies, and the numbers of users is multiplying every year. Packaged software products have become an attractive proposition for the hospitality sector, with the management adopting these “off the shelf” technologies in an effort to gain an integrated information infrastructure and with an added advantage of training modules for standard operating procedures. Enterprise Resource Planning (ERP) systems offers a package that will standardize business processes, integrate functions, data, and organizational structures through software reference models can save the hospitality sector from reinventing the wheel and from perpetuating inconsistency in local business practices (Davenport, 2000). One important aspect of interactive training which is often overlooked is the relationship between training climate and learning outcomes which is often influenced by pre-training motivation (Bruce, 2003). An individual will show enthusiasm during the training and acquire the necessary skills, provided he/ she is given the required motivation by the management and supervisor. Pre-training motivation appears to influence the job attitude and learning outcome of an employee. A positive training climate may be instrumental for enhancing important job attitudes such as organizational commitment (Bruce, 2003). So creating and developing a work environment that provides ongoing support for learning and development activities may have broader implications. Priority should be given to efforts that are designed to enhance positive climate perception and brings out the best results for the hospitality sector (Bruce, 2003). Cost benefit analysis for the interactive training of hospitality personnel is carried out for hotel chains Hilton Hotel Corporation and the Marriott. 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In this case there is a need to know what the impact of interactive training is on the quality of service and any improvements that may be discerned. Essential steps of a Survey 1. Establish the goals of the project - What you want to learn 2. Determine your sample - Whom you will interview 3. Choose interviewing methodology - How you will interview 4. Create your questionnaire - What you will ask 5. Pre-test the questionnaire, if practical - Test the questions 6. Conduct interviews and enter data - Ask the questions 7. Analyze the data - Produce the reports Goals of the Project This thesis targets to develop an understanding of the effectiveness of interactive training of employees of the lodging industry. The next step would then be to evaluate the cost-effectiveness of such training. Sample Selection The effectiveness of such training can only be understood through a survey of customer perceptions of the quality of service provided by the hotel staff. The survey will be divided into two sections: 1. Polling the views of present and past customers of one hotel, representing those who visited the hotel before the implementation of interactive training and those who visited later. 2. Survey of present customers of some hotels that have implemented interactive training and of some that have not. The target population to be surveyed will be determined on the basis of resources available at the time of carrying out the survey in terms of money, manpower and time. In any case the minimum size of sample shall be fixed for each category to afford reasonable statistical extrapolation of the results obtained. The sample shall be a mix that represents the average guest of the hotel chosen, in terms of the number of days stay, type of customer (business or leisure), record of previous stays, traveling alone or with family, ethnic background etc. to eliminate the chances of bias as far as possible. Interview Method Of the different interviewing methods available, namely: Personal Interviews Telephone Surveys Mail Surveys Computer Direct Interviews Email Surveys Internet/Intranet (Web Page) Surveys Scanning Questionnaires Personal interview method is proposed to be used since these would allow face-to-face contact with the interviewee allowing for more candid and clear responses. The interviews shall also take place when the experience of the hotel is fresh in the mind and in a good atmosphere. Only those of the selected sample who visited the hotel some time back shall be surveyed through responses to questionnaires taken over the phone, using computer aided telephone interviewing (CATI). The telephonic addresses shall be obtained from the hotel records. In order to establish the credibility of the survey these customers shall be sent a mail from the hotel requesting their co-operation during the survey. Other methods are not considered because the assume availability and use of computers by the target group or because of the history of very poor response to mailed surveys. On line Internet surveys are of a general nature and would not be suitable for a specific subject such as this research. Guest Relations Survey The Questionnaire The survey shall be done, as proposed above, either through personal interviews or through interviews over the phone. Both will be carried out in a structured way using a specific questionnaire designed for the purpose. The questionnaire follows ‘Keep It Short and Simple’ (KISS) principle, and would consist in getting response to the following questions: Introduction: The questionnaire would lay down the guideline for explaining to the person being interviewed the rationale of the survey and how it will help the hotel to improve its services in the future. It will help explain as to why it is necessary and introduce the surveyor and the graded ranking of response basics. Main Questions: The questionnaire would be in two parts, with the interviewer filling in the details themselves, such as the date of interview, gender of the subject etc. The second part would also be filled by the interviewer but based on the response of the customer. If the customer insists, they can fill in the responses themselves. Each of the questions will allow the interviewee to give graded responses to the question asked ranking his/her response on a scale of 1 through 5 – Excellent through Poor. In case of general and introductory questions the response would allow simple answers such as yes/ no etc. Each question shall also allow for a response of ‘Don’t Know’ or ‘Decline to State’. Question 1: Is this your first visit to this hotel? Question 2: Depending on the response above how many times have you been here before? Question 3: How long have you been staying here ---- and how long to you intend to stay. Question 4: How did you learn of this hotel? Question 5: How did you make your reservation? The Internet Telephone Walk-in Travel Agent Other Question 6: How do you rate the response to the reservation process? Question 7: Were all the arrangements you made before arrival, met with satisfactorily? Question 8: How did you find the front office staffs’ response on your arrival? Question 9: Did you need any other help on arrival? If yes, rate was the response of the staff? Question 10: How do you rate this hotel on Housekeeping? Question 11: And the Concierge? Question 12: If a frequent visitor, do you find any improvement in the services since your last visits? Question 13: If yes, in what ways? __________________________________________ Question 14: Would you recommend this hotel to friends back home? Question 15: If yes, what are the two major reasons for doing so? Question 16: Do you have any complaints about any of the services related to you stay? Kindly detail ____________________________________________________ Question 17: Do you have any suggestions to help us improve in the future? __________________________________________________________ (The above questions are only laying down the broad thrust of the survey and will be honed further before carrying out the actual survey, in addition a pre-test survey shall be carried on a small sample to further modify the questionnaire before carrying out the full survey) AND of course the questionnaire shall be formatted and printed properly. Conclusion: Guide reassurance to the respondent that his or her responses will not be revealed to your client, but only combined with many others to learn about overall attitudes. Interpretation of results The collation and interpretation of the data compiled shall then be reduced to a form allowing for the determination of some weighted score to measure the level of customer satisfaction and also relate to a broad customer profile. This will help us understand the benefit side of the CBA equation. How this translates to money terms will be determined on the basis of the results obtained. Read More