Pioneers and Remarkable Service of Hotel Industry - Essay Example

Early Pioneers of the Hotel Industry and Remarkable Service in the Hospitality Industry Jessenia Ramos Senior Seminar in Hospitality Management American Military University Professor Cooke Question 1: Early Pioneers of the Hotel Industry The Hotel industry evolved through the contributions of early pioneers. The contributions are found through the relationship of effective management and guest satisfaction that have shaped the world of hospitality. The similarities and differences in management style from past pioneers and present management will be discussed throughout this paper. Ellsworth Statler Ellsworth Statler was an innovative pioneer that did not believe in being like everyone else, he started his career in the restaurant business but strived to excel in the hotel industry. Statler was the first to build a hotel with a private bath in every room that included running water. According to Britannica Online, Ellsworth Statler introduced the common hospitality slogan “the customer is always right” (2013). Like many hotels found today, Statler’s incorporation of amenities were found to offer quality service to customers. Statler stated, “All I want to do is to have more comfort and conveniences and serve better food then any of them have or do, and mine will be at a price ordinary people can afford” (Turkel, 2005). His vision and goal was very much like the goals of management leaders today. Statler’s vision for a better future brought forth the following innovations: “ice water circulating to every bathroom, a telephone in every room, a full-size closet with a light, a towel hook beside every bathroom mirror, a free morning newspaper, and a pin cushion with needle and thread” (Turkel, 2005). Ellsworth Statler portrayed effective management through his efforts of making staff focus energy on guest satisfaction. Statler’s employed operational strategy was achieved through the Statler Service Code which was a pledge for employees to work by in offering the best service possible (Kkapanek, 2012). This service code is similar to the codes that hotels work by. For hotels this service code is known as the mission and vision of a hotel, it informs guests of what that hotel is all about. Ellsworth Statler was not the only innovative leader to change the hotel industry (Ellsworth, 2013). Cesar Ritz Cesar Ritz was the pioneer that established a name by managing with excellence. Cesar Ritz also started his career in the restaurant industry and progressed his way up to managing hotels in Paris. Eventually, Ritz became the founder of elegance in hotels through his drive for vision. “He had the gift and intuition to recognize the important elements of hospitality and he used them well and consequently” ("Caesar ritz," 2013). Cesar Ritz designed his hotel with unique touches that would give customer satisfaction. “So that women would have a place to hang their handbags while dining, César Ritz put armchairs with small hooks in the hotels restaurants” (McLaughlin, 2004). Today, the Ritz Hotels continue to expand the vision that Cesar Ritz originated. “Today, The Ritz has been completely restored to beyond its former glory. Throughout the building no area has been left untouched, no detail overlooked. A full century after first opening its doors to the public, the vision and dream of César Ritz is resplendently alive!” ("The ritz london." 2013). Cesar Ritz contributed décor into his hotels and this complemented the vision he desired. Ritz added glam by dressing the room up with chandeliers, fireplaces with gold trimming, and personal butlers. The hospitality industry is filled with leaders that strive to be the best there is. The general employed operational strategy of the Ritz is to focus on its customers by providing personalized service through butlers, valet and luxurious elegance. Kemmons Wilson Kemmons Wilson was the pioneer that founded the Holiday Inn out of the trip that he stated to be “the most miserable vacation trip of my life” ("Kemmons Wilson biography," 2013, p.4). According to Kemmons, the money that he paid for the rooms that were available during his trip was not equal to the value of the services he got. Being a focused entrepreneur who started his career at the age of six, Kemmons was of a view that with the increased demand for hotel services, he should provide comfortable places for his customers. In this regard, he ensured that his customers were experiencing first class services that included air conditioned rooms, television sets and swimming pools that gave children and adult quality treatment (Kerr and Wilson, 1996). By introducing the first four hotels in the area of Memphis, Wilson was aimed at capturing the existing market before any other entrepreneur took that opportunity. Based on his experience in movie theater, Kemmons introduced attractive designs in his hotels such as green-and-gold Holiday inn. Some of the major aspects that made the hotel to be easily identifiable from its customers included bright colors and quality lighting. In this regard, he pioneered the use of attractiveness of the modern hotels as a major way of retaining the trust of the existing customers and attracting more clients. Through his partnership with Johnson Wallace, a famous real estate developer, Kemmons developed the world largest motel that offered excellent services to its foreign and local customers. According to Time magazines, Kemmons was a key player in creating a home far from home. Other hotels that were established by Wilson included Orange Lake Resort, Country club located in Florida, Wilson World Hotel in addition to Wilson inns. Ralph Hitz Another notable pioneer of the hotel industry is Ralph Hitz. Being a skilled manager who headed the National Hotel Company, the biggest hotel organisation in US, Ralph had a strong management experience that he gained especially during the time he was managing a number of hotels that were established by various real estate developers. One of the key aspects that were possessed by Ralph Hitz was strong and sustainable marketing strategies that included innovation. In this way, he acted as the pace setter for the hotel standards that are employed by local and international hotels in the modern times. Being the pioneer of the customer database, Ralph ensured that information regarding all the guests that arrived in his hotels was secured. Through the customer database, guests who visited the hotels were able to receive hometown newspaper in their rooms. In this way, Ralph Hitz ensured that a strong customer relationship was established an aspect that is used even by the modern hotels to retain the loyalty of their customers. Ralph extensive knowledge in terms of merchandising hotel services is another notable contribution to the development of the modern hotel industry. Just as the modern hotels use in-house television channels in their advertising strategies, Ralph adopted an in-house radio to advertise his wide range of services that his hotel were offering the guests (Ritz, 1948). Based on the regular advertisement and the quality services that met the needs of his customers he set a pace that modern hotels adopt. One of the major philosophies that Ralph established is that hotel owners should give value to the customer and in return they will get high volume sales as well as high profits. Ernest Henderson Ernest Henderson and Robert Moore are key pioneers of the modern hotel industry. Being the founders of Sheraton Hotels, they penetrated the hotel industry by purchasing the Stonehaven Hotel that was located in Massachusetts. Just like Kemmons Wilson, Ernest Henderson emphasized on excellent services to his customers. To meet the high demand of their services, Ernest Henderson and Moore adopted valuable services and product diversification to enter various markets including Philadelphia, New York and New England. In their efforts to expand in the international market, the two entrepreneurs were focused at making their hotels public companies. For example, in 1949, Sheraton Corp made a significant move of becoming the first hotel chain to trade its shares in the New York Stock Exchange. Effective branding, a major marketing strategy adopted by the modern hotels was an essential strategy that was triggered by the Ernest and Moore. In order to ensure improved customer awareness as well as to add signage to their businesses, Ernest and Moore decided to use the same name on all their hotels. Based on the effective marketing techniques including offering wide range of excellent services, Sheraton hotels are currently operating in more than 100 countries. Conrad Hilton Conrad Hilton was the founder of Hilton hotels. Based on his entrepreneur skills, Hilton had interest in acquiring a bank in Texas but instead he bought Mobley Hotel, his first hotel that was based in Texas. One of the major aspects that Hilton emphasized on was improving the appearance of his hotels including bright colors and improvement of the guest rooms. To meet the high demand of his services, he also emphasized on providing spacious rooms that met the needs of his clients. To address the stiff competition, Hilton believed on providing excellent services that included various products. This was achieved by establishing a number of hotels including Dallas Hilton, El Paso Hilton and Albuquerque that is currently referred to as Hotel Andaluz. Hilton was also interested in strengthening his distribution and marketing strategies through the use of acquisition and merger. For example, after acquiring Stevens Hotel, Hilton formed the Hilton Hotels Corporation. In the modern times, Hilton Hotels have played a key role of improving tourism not only in the developed countries but also in the third world countries. Willard Marriott Willard Marriot is another pioneer who significantly contributed to the development of the hotel industry. One of the major aspects that Marriot emphasized on was creation of strong relationship with employees and motivation. During his management process, he treated his workers as family members while at the same time he regularly visited the sick workers. Based on his ideology that is used even by the modern hotels of creating a strong employee-customer relationship, he ensured that all the employees enjoyed serving their customers. Another key aspect that Marriot valued was appropriate location of his businesses. In this regard, he located his hotels next to bridges based on his argument that even if the government relocated the highways, it would not change the location of the bridges. Being an entrepreneur who valued effective delivery of services, Marriot was the pioneer of airline catering business. In this way, customers easily accessed the services provided by his hotels regardless of their destination. Another vital characteristic that Marriot possessed was that he highly valued innovation in his marketing strategies (Enz, 2010). This was depicted by the use of first drive-in trays by his employees to market the services and the products provided by his hotels. To ensure that all the needs of his customers were met, Marriot believed on product diversification and distribution of risks. Consequently, he established a number of lodging chains that included Marriot suites, Courtyard hotels, Marriot hotels and resorts as well as Fairfield inns. Question 2: Principles of Delivering Remarkable Service in the Hospitality Industry The success of hospitality industry significantly depends on the quality of services provided by the companies. Based on the large number of firms in the hospitality industry that includes hotels, hospitals and lodgings among others the number of customers is high. In this regard, there is a need to ensure that all the needs of the clients are met in a timely manner. One of the best marketing aspects that were instigated by the hotel pioneers as well as the current hotel owners is customer loyalty. A notable method of ensuring that customers are loyal towards the services provided by various companies in the hotel industry is provision of excellent customer services. According to Buchanan and Gilles (1990), customers who are treated in a respective and friendly way are willing to make repeated purchases. One of the major marketing strategies that are used by the companies in the hospitality industry is word of mouth marketing. Through ensuring that customers are provided with services that meet their needs and equal to the value of their money, they are in a position to inform their colleagues about their experiences (Buchanan and Gilles, 1990). Other major aspects that play a vital role in the hospitality industry especially in hotels and lodgings are the natural beauty and architecture. However, even if a well decorated hotel or any other firm in the industry provides poor services, they will not retain the loyalty of the existing customers leave alone attracting new clients. Key service processes shared by all facets in the service industry includes customer care and relations. As compared to other industries such as manufacturing that specializes in the production of touchable products, firms in service industry heavily relies on customer care to sell their services. Attractive design that includes modern architectural is another major aspect emulated by companies in the service industry. This is based on their need to look appealing to all the guests who visit their premises. Use of extensive marketing strategies including internet and booklets is another key process emulated by all facets in the service industry. Contrary to the manufacturing companies whose prices are reasonably fixed, firms in the service industry emulates flexible pricing system. For instance, hotels and lodgings offer different prices depending on the facilities such as entertainment, swimming pools, number of beds, access to a computer and type of foods offered during breakfast and lunch. Based on the need to maintain large number of clients in the hospitality industry, firms should first understand customer expectations. One of the major ways that competitive companies in the service industry have adopted is the use of surveys to their customers in order to determine their level of satisfaction. Another notable method of determining the level of customer satisfaction is through making phone calls or by the use of emails. Based on the need to meet the customer’s requirements, firms in the hospitality industry have well established market researchers who are responsible for collection of data that is aimed at understanding their customers. Through the use of likert scale format, firms that are aimed at maintaining the loyalty of their existing customers are able notice the degree of satisfaction. Some of the major areas that are used to determine customer satisfaction include delivery of services, assistance of the employees especially in the customer care department and the benefits of the firm’s services among other areas. One of the key methods of managing customer expectations is by anticipating their problem and then setting realistic expectations. This can be attained through initiating effective communication strategies and customer education. Through initiating customer education, firms are able to inform the consumers about their services thus reducing the number of complaints that are caused by inadequate information. In order to enhance the productivity of the service providers, it is vital to ensure that they are motivated. One of the major reasons for motivating service providers is that the level of customer satisfaction depends on the extent to which the employees are motivated. Companies that are aimed at attaining a competitive edge should establish strong team of service providers. Through such teams, various issues that affect the customers are effectively addressed. One of the major ways of motivating service providers is by empowering them. This entails giving them opportunities to make decisions that affect their tasks. In addition, managers should involve their employees in the making decision process. In this way, the workers feel as part and parcel of their organisation. Formation of strong teams is another motivating factor. Based on the various duties allocated to the service providers, initiating strong teams allow employees to share issues affecting their personal lives as well their duties. Another motivating factor that is widely utilized by companies in the hospitality industry is training of their employees. Major areas that are covered in the training include customer relations, marketing strategies, data management and communication skills. Other notable factors that enhance the performance of employees in the service industry include working in shifts, annual bonuses, holidays, gifts, promotion and commissions. In the current business arena, technology has played a significant role. Based on the increased demand for services in the developing and developed countries, companies have now embarked on using internet to transact their businesses. For example, guests who intend to visit international hotels such as Hilton and Sheraton can now book their rooms online. In this way, the speed of providing services has positively been enhanced. Similarly, firms are using internet to advertise their services. By providing the services given by service companies through internet, customer can easily choose their preferred company. Based on the stiff competition in the service industry especially by hotels, provision of instant information through brochures and on their website, customers are effectively assisted in their making decision process. Making of payments is another positive implication of the use of technology in the service industry. Eelier on customers were required to pay for their services when they physically visit service companies such as hotels and lodgings. However, with the introduction of online payment methods, guests can pay for their services regardless of their country of residence. Despite the positive implication of the technology in the service industry, it has resulted to increased expenditure for the companies thus decreasing their profits. This is based on the high costs of advertisements as well as regular updating of website to attract more customers. Measuring of employee’s performance is a prudent strategy especially during determining the ones to be motivated. In the service industry, various companies emulate diversified methods of performance measurements. One of the major ways adopted by the companies is by the use of number of guests who are brought by the sales executives. To ensure that sales executives are motivated such firms offer additional commission as bonuses as a way of appreciating their work. Majority of companies in the service industry keep records that indicates the number of guests who visit their premises on daily, weekly, monthly and annual basis. In this way, companies can determine the amount of sales they make. Another performance measurement that is used by firms is the registers that indicate the number of hours each of the employees has worked as well as the days he or she has worked. Consequently, managers and supervisors can easily identify hardworking employees who are eligible to be promoted or be given a leave. Organizational culture can have an implication on the service strategy in various ways. For example, some hotel companies target customers from specific regions. This includes preparing of products such as dishes and services that are familiar to the targeted customers. This implies that during their marketing strategies such companies undertake extensive promotion and advertising to attract their customer segments. Similarly, firms that are focused at establishing branches in poor countries may need to adjust their prices as well as quantity of their products without compromising the quality of their services. This is based on the fact that in poor countries the demand for services is lower as compared to developed and developing countries. By making service strategies to be complex, the costs incurred by companies may increase to a level that firms will not have the ability to generate adequate revenue. Subsequently, firms may not have the capability to enter new markets thus limiting their market segment. Lack of proper management of resources including employees is another possible consequence. It is worth to note that if services are complex, employees may become tired during their duties thus making them not to provide quality services. Complexity of services may result to loss of funds through vices such corruption and unnecessary expenses thus resulting to low profits leading to poor delivery of services to the customers. References Buchanan, R. and Gilles, C. (1990) .Value managed relationship: The key to customer retention and profitability, European Management Journal, vol 8, no 4, 1990. César ritz. (2013). Retrieved from http://www.britannica.com/EBchecked/topic/504774/Cesar-Ritz Caesar ritz. (2013). Retrieved from http://www.caesar-ritz.ch/en/index.htm Enz, C. A. (2010). Hospitality strategic management, concepts and cases. (2nd ed. ed.). Hoboken: John Wiley & Sons, Inc. Ellsworth, S. (2013). Retrieved from http://buffaloah.com/h/stat/tc.html Ellsworth, S. (2013). (2013). Retrieved from http://www.britannica.com/EBchecked/topic/564201/Ellsworth-Milton-Statler Kkapanek. (2012, October 09). The statler: Then. Retrieved from http://buffalothenandnow.com/2012/10/09/the-statler-then/ Kemmons wilson biography. (2013). Retrieved from http://www.ihgplc.com/explore/pdf/biography.pdf Kerr, R and Wilson K. (1996). Half Luck and Half Brains: The Kemmons Wilson, Holiday Inn Story. Nashville: Hambleton-Hill Publishing, Inc. McLaughlin, C. M. (2004, The ritz touch. Town and Country, 158, 182-182. Retrieved from http://search.proquest.com/docview/220702367?accountid=8289 The ritz london. a rich history. (2013). Retrieved from http://www.theritzlondon.com/about/history-en.html Turkel, S. (2005). Ellsworth Milton Statler: Hotel Man of the Half Century. Lodging Hospitality, 61(5), 64-68. Read More