Service Management
TSM09604 2016-7 TR1 001
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MATRICULATION NUMBER:40227141
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MODULE TITLE:SERVICE MANAGEMENT
MODULE NUMBER:TSM09604 2016-7 TR1 001
SUBJECT OF ASSIGNMENT:Essay: Service management on Ritz Carton and Melco Crown
NAME OF MODULE LEADER:Dr Ros Sutherland______
DATE OF SUBMISSION:30-Oct-2016
DECLARATION
I agree to work within Edinburgh Napier University’s Academic Conduct Regulations[1] which require that any work that I submit is entirely my own[2]. The regulations require me to use appropriate citations and references in order to acknowledge where I have used any materials from any sources.
I am providing my student Matriculation Number (above) - in place of a signed declaration – in order to comply with Edinburgh Napier University’s assessment procedures.
Essay: Service management on Ritz Carton and Melco Crown
Table of Contents
31113333
Matriculation Number: 40227141
Service Management
TSM09604 2016-7 TR1 001
1Introduction...... 4
2The Ritz Carlton Gold Standards……………………………………………………………4-5
3The outcome of change the “20 Basics” to the “12 Service Values”...... 5
4The Ritz Carlton Mystique……………………………………………………………………5-6
5Excellence service management of luxury hotels……………………………………6-7
6Application of good service management for Melco Crown…………………………..7
7Future plans for Melco Crown to establish further positive service encounters……..8
8Conclusion………………………………………………………………………………..8-9
9Reference………………………………………………………………………………..9-10
31113333
Matriculation Number: 40227141
Service Management
TSM09604 2016-7 TR1 001
- Introduction
The Ritz-Carlton is one of the grandest hotels in the world. Currently, it has 91hotels worldwide in30 countries and territories, employees are around 40,000[3]. Its outstanding service performance in culture leading organizationhas acquired many awards in the hospitality industry as well as significant financial results.The most prestigious of these awards is the Malcolm Baldrige National Quality Awards presented by the United States Department of Commerce which Ritz-Carlton is the only one organization has won twice in 1992 and 1999 respectively.
Nowadays, customers are highly demanding on superior service and personalized experience. Service providers have to develop an adequate service strategy and establishing the related robust operational system to providing consistently service excellence to differentiate business with other competitors. Differentiation in service is definitely created significant competitive advantage among the competitors to maintaining a long term and sustainable success for an organization.
- The Ritz Carlton Gold Standards
Gold Standards are foundation of Ritz Carlton iconic, global brand. It composed of 5 elements as below:
The Credo
A mission statement and is also considered as part of employees’ uniform.
The Motto
Its term “We are Ladies and Gentlemen serving Ladies and Gentlemen" signifies a respectful relationship among shareholders.
Three Steps of Service
Three simple steps of service delivery process to direct employee offering superior customer service each time with customer and even further to co-workers.
The employee Promise
Employees are major resources to interact with customers to achieve company commitment. By providing a safe, comfort and fair work environment, developing the talent of individual and career development is committed to employees.
“20 Basics”
Those elements are organization service standard guide employee to take responsibility on work and the adequate behavior on handling certain circumstances. In 2006, “20 Basics” had been replaced by “12 Services Values”
The Ritz-Carlton Hotel Company has an inspirational leadership management. Managers drive the Gold Standards that are central to company’s culture and also can use them to measure service quality during daily operations and for continuous improvement of service. Everyone from top to down should providefinest customer service.
Priority, select and recruit the right candidates who should have service mentality, sincere and care attitude to others. All employees have a variety of intensive trainings, building rewards and recognition components to address employee has demonstrated best customer service behaviors.
Employee loyalty has generated by a respectful environment and mutual understanding of trust among management and empowerment to employee. Employees are proudand professional to interact or solving problem for customer, provide creative and innovative ideas to improve products/services and processes. The customer engagement can achieve by professional front-line employees to fulfill customer needs. Employees participate in their own roles and response the expressed or unexpressed needs consequently retain memorable experiences to customers for future revisit and the positive words of mouth.
- The outcome of change the “20 Basics” to the “12 Service Values”
The decision to replace the “20 Basics” to the “12 Services Values” in 2006 is management commences using Gallup’s Q12employee engagement metric in 2006 by knowing to measure employee engagement instead of employee satisfaction will generate more productivity and profitability. Later, Ritz-Carlton stopped to measure employee engagement and customer engagement separately and measuring both employee engagement and customer engagement that higher profitability generate than either employee or customer engagement[4]
The “20 Basics” is a guideline principle of directing employeesto perform duty on different aspects, a standard method for service delivery process aiming to achieve customer satisfaction. It also contains Gold Standards’ elements of Credo, Motto, Three Steps of Services and Employees Promise. It is strict and details, in a directive way. In contrast, “12 Services Values” is more flexible, simple and clear. The word “I” identifies employee’s role for taking accountability and initiative to interact with customers. More focusing on employee and customer engagement by enforcing each employee should provide best design service, empower to customized service to create memorable experience and solving problem quickly with their professionalism. The effectiveness of “12 Services Values” lead employees create innovative ideas on products/service and service delivery processes. The retention of every customer is through the relationship with employees.
- The Ritz-Carlton Mystique
In fulfilling an expressed or unexpressed customer desire is one of the ways to create “the Ritz-Carlton Mystique”. The Motto “anticipatory service” fosters employees’ mindset at all-time high. Employee is major resource to serve as link to fully engage with customer. They have ability to achieve the goal of developing strong emotional engagement between employee and customer
Every day, every shift at all hotels around the world they have a 15 minutes meeting (lineup) to discuss any service failure and improvement, to ingrain company culture and sharing customer experiences. Every two weeks during meeting will share the
truewow story like“Joshie”[5]experienced. Staffs have greatly inspired and motivated by those experiences. In addition, employees are empowered to design in their own solution to solve the problem as their own responsibility. The true story of the legendary customer service at Ritz-Carlton is memorable experience often exceeds customers expectation performed by the professional and dedicated employees and often acquire customer loyalty towards Ritz-Carlton. The outcome of the service delivery process is unique, emotional and personable experiences that customers are fully delighted and engaged. Ritz-Carlton differentiates itself with other competitors by their people “Ladies and gentlemen”.Their outstanding performance achieves customer recognition. A successful employee and customer engagement program needs loyalty employees to deliver services exceeds customers’ expectation to achieve satisfaction which create customer engagement. The extraordinary service is organization growth strategy and is essential to have continuous improvement in distinguishing with competitors. The aim of focusing to build customer repeat business is a direct correlation to profitability.
Another way of the Mystique is a customer relationship management (CRM) system. The database is used to record the preferences of every customer, frequency of visit and any issues or complaint happened during previous stays. Data is collected through employee observation, listen and ask for feedback during interacting with customers to find their specific preferences. Those data will input or update customer preferences into the system. All properties within Ritz-Carlton can know customer preferences through system. Those data is valuable in understanding an individual customer desires and employees can use those data to customized services “what customer likes or dislikes” to create a sustainable, memorable and unique experiences for each guest at their next visit at any Ritz-Carlton Hotel around the world. It is clear company goal is to satisfy customer preferences by delivering an extraordinary service with CRM technology and expert staffs.
- Excellence service management of luxury hotels
Service excellence plays a major role to achieve competitive advantage in the hospitality industry. Below are three luxury hotels with highest level of service.
Hilton worldwide
The first hotel named Hilton was opened at Texas in 1925. In the nearly 100 years since its founding, now Hilton Worldwide is one of the leaders in the hospitality industry in the world with more than 4,700 hotels, resorts and timeshare properties comprising more than 775,000 rooms in 104 countries and territories. With the vision to delivering the exceptional experiences has acquired many awards.The most distinguish awards is “Hilton Worldwide, #1 Hotel Company (81% Overall Customer Satisfaction Rating),American Customer Satisfaction Index (ACSI), 2016”[6]
Four Seasons Hotels and Resorts
Four Season Hotels and Resorts is a Canadian-based company, has its first hotel opened in 1961. For nearly 50 years, the company has grown from a single hotel to
99 hotels in 41 countries. With the dedication provide extraordinary experiences to exceeding guests’ expectations. The outstanding service performances lead Four Season Hotel to be one of the luxury hotels with highest standard of service. In the year 2016, Company has won a lot of awards and accolades. It proved explicitly company commitment on highest standard for service excellence[7].
St Regis Hotels and Resorts
The first St Regis hotel openedin Manhattan in 1904 to the latest in Langkawi, Malaysia. Now, company has expanded to 39 hotels in 17 countries. The St. Regis Butler Service has been well known for serving customer in prudent, customized and anticipatory service that commence before customer arrive or after leave. Services provided are always beyond expectation. In 2016 awards, The St. Regis Bali Resort has won the award of CONDÉ NAST TRAVELER - GOLD LIST[8].
- Application of good service management for Melco Crown
Since if customer perception on product or service was higher than expectation that perceived quality is high, customer satisfaction achieved at the same time. Those hotels have discussed above are very dedicated on anticipatory service. For companies realize success in business highly dependent quality of service deliver meet customer expectation or above their expectation will increase customer loyalty, sales increasing by positive word of mouth as well.
Human Resource department will re-consider recruiting the talent;right people as employee of company,a well-trained, experienced employee create many memorable experiences to customer during their visit. Employees are people to satisfy customer to create employees and customer engagement. For current employees, continuous skill training, knowledge development is essential.
The ‘line-up’ process is a program MCE should apply. Every day at any time any service failure or positive comments around the company. It disseminates this information to all employees to encourage their hard work or share the knowledge of solving problem skills during this 15 minutes meeting at all company at the same time, ensuring that everyone is on the same page. Ultimately, everyone has the ability to create anticipatory service. It is a good lesson that employees may not encounter during training period.
Employee empowerment is a major element to create the anticipatory service. Certainly, the trustfulness between company and employee are the basic requirement through company commitment with employees. As customers are highly demanding for best and customized service, the speed to solve any service failure or complaints definitely retain customers’ loyalty. Employees have confidence to customized service to one specific customer base his own experiences independently.All these also encourage other customers to visit Melco Crown property for this customer-centric focus that has improved company productivity and profitability.
- Future plans for Melco Crown to establish further positive service encounters
According to Macau Statistic and Census Service, majority visitors are from Mainland China[9]. Melco Crown as one of the Macau casino operators, superior service quality should begin on customer-centric focused, with the goal to meet or exceed customer expectation to generate potential financial result for company.
Through the last decade, Melco Crown has been successful implementing its business in Macau by applying the Total Quality Management Strategy on service management. However, there are still some service quality gaps existing in this organization.
An outstanding physical environment attracts visitors to spend in Casino and employees wish to work for. The existing music, light, décor and decoration mostly not favor by Chinese customers’ appetite. Although Melco Crown has its own brand image, some adjustment on certain environment can delight customer repeat visit. MelcoCrown has to establish more non-gaming facilities, such as theme park and unique entertainment facilities to appeal Mainland visitors, those facilities attract them to spend much money[10].
The imperative is to create a positive culture of customer-centric around company, all staffs need to provide superior service to satisfy customer. There are necessarily to ingrain their mindset of positive culture, their technique skill, interpersonal skill, emotional control skill, manage a professional appearance and positive attitude are part of the service quality. New recruit potential employees to replace the unqualified staffs. The outcome is Macau government only permitted local citizens as dealer position. Some current employees are from previous local casino which is managing business in old Industrial Management model service.
It is obvious, service failure happens at gaming floor take time to solve that make customer dissatisfaction. Melco Crown might increase the empowerment to employee solving problem immediately to achieve efficient and effective services.
Employee engagement can motivate employees to provide highest level of service at all time, managing the same goal as company.
The advance technology can facilitate a company to closing the service gaps and provide service more specific and convenient. Melco Crown should install more new technology devices to accommodate business-for entertainment, security or planning. The improvement the current CRM system can accumulate more data to analyze customer preferences for future strategy plan. For security aspect, new technology can secure customers’ information in a safe place for privacy and confidentiality issues; minimize the chance data for being stolen or misused by others.
- Conclusion
The Ritz-Carlton Hotels Company has demonstrated best quality service as its competitive advantage in hospitality industry. Service quality is the main element for Ritz Carlton to grow its business around the world. In Macau, there are many luxury
hotelshave opened together with the increasing high demand of service from Customers. Service providers have to continue toingrain company service culture through commitment, take every step ensure offering highest level of service to customer for the benefit of employee and customer engagementin order maintain their leadership position in the hospitality industry.
- Reference
Hilton Worldwide
Retrieved from
Four Seasons Hotels & Resorts
Retrieved from
St. Regis Hotels & Resorts
Retrieved from
Melco Crown Entertainment
Retrieved from
The Ritz Carlton:Luxury Hotels & Resorts
Retrieved from
Macau Statistic and Census Service,Visitor Arrivals for September 2016(24/10/2016)
Retrieved from
Robison, J. (2008) Business Journal, How The Ritz-Carlton Manages the Mystique.
Retrieved from
Vuong, A. (2016) Business Journal, Customer Satisfaction Without Engagement -- Is It Enough?
Retrieved from
Rigoni, B. & Nelson, B. (2016) Business Journal, Do Employees Really Know What's Expected of Them?
Retrieved from
Lo. A, Tsai, H. & Cheung, C. (2013) Service Quality of Casinos in Macau:From theMainland Chinese Perspective, Journal of China Tourism Research, 9:0, 94-114, DOI: 10.1080/19388160.2013.756773
Shahin, A. SERVQUAL and Model of Service Quality Gaps:
Retrieved from
Hum, C. (2012) The Blog, Stuffed Giraffe Shows What Customer Service Is All About. Retrieved from
Rahul, R. (2012)Total Quality Management at Ritz Carlton.Retrieved from
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Matriculation Number: 40227141
Service Management
TSM09604 2016-7 TR1 001
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Matriculation Number: 40227141
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[10]Date Source: Lo. A, Tsai, H. & Cheung, C. (2013) Service Quality of Casinos in Macau:From theMainland Chinese Perspective, Journal of China Tourism Research, 9:0, 94-114, DOI: 10.1080/19388160.2013.756773