TLH314 International Hospitality Management

Introduction

The outbreak of the COVID-19 disease has had a serious negative impact upon the social, political and economic landscape of the world. The impact of the pandemic has been felt across a variety of industries across the world, among which the hotel and hospitality industry can be recognized as being one of the most important sectors, affected by the unprecedented circumstances that followed the pandemic. One of the major impact faced by the hospitality industry with respect to the pandemic is the lack of business operations owing to the policies of lockdown imposed by the governments of the different countries that have been severely affected by the disease. However, the hospitality industry has been necessitated to adopt effective strategies by which they would be able to cater to the changing needs of the customers in terms of quality of services provided as well as an upgrade of the various health and security facilities provided (Marković and Raspor Janković 2013). The report will further focus upon the case study of Kings Head Hotel and the various strategies adopted by it in order to adapt to the pandemic situation. In this respect, ‘growth through quality’ strategy adopted by the organization will be discussed, taking into consideration the manner in which this strategy may be implemented within the scope of their business operations. Furthermore, the methods of increasing the accommodation revenue of the organization will also be analysed highlighting the relevant aspects of the ‘growth through quality’ approach undertaken. Finally, certain recommendations will be provided pertaining to new food offerings that may be introduced by the hotel so as to be able to cater to the tastes and [references of the customers or guests in an effective manner. These strategies of propelling growth in the organization will be analysed with respect to the specific mandates that have been issued on account of the global outbreak of the COVID-19 disease.

Discussion

Growth through Quality Strategy

The global hospitality industry can be identified to be one of the most competitive industries in which the successful outcome of business operations is highly dependent upon the quality and manner in which services are provided to the customers. In this regard, it has been observed by Oh and Kim (2017), that the customer centric approach required to be followed in the hospitality industry also necessitates the organizations operating within this industry to devise effective strategies implementing which they may be able to gain a sustained competitive edge in the market. One of the most effective strategies that may be adopted by such organization operating in the hospitality industry is to lay a particular focus upon the quality of services provided. It has been opined by Pizam, Shapoval and Ellis (2016) hat the hospitality industry is highly service oriented, and thereby the increase of overall customer satisfaction is one of the primary objectives of the companies operating in this industry. Increase of the quality of services provided to the customers is one of the most effective means by which organizations in the hospitality industry may be able to enhance the level of customer satisfaction derived in an effective manner. With respect to the business operations of Kings Head Hotel and Restaurant, it may be identified that the company wishes to enhance the scope of their business operations through a process of increasing the quality standards of the services provided to the customers. The growth through quality strategy adopted by the organization can be observed to be an effort to reduce the threats faced in terms of the outbreak of the COVID-19 disease, and thereby a means to restore the profitability of their business operations.

The growth through quality strategy encompasses the changes implemented within the scope of business operations of an organization in order to enhance the quality standards of the services and products offered to the customers. In other words, this strategy pertains to the systems and processes that are operated by the organization with optimum levels of quality assurance in order to enhance the effectiveness and efficiency of overall business operations. With such enhanced effectiveness of business operations, the organization may be able to derive higher levels of profitability and productivity (Amin et al. 2013). The quality improvement policies and procedures adopted are directed towards the overall enhancement of business operations thereby enabling growth and development. In this context, it may be identified that the implementation of the growth through quality strategy by Kings Head Hotels and Restaurant will aid he organization to be able to enhance the manner in which services are offered to the customers and thereby follow the safety and health protocols issued on account of the pandemic in a more efficient manner. The following section of the report will focus upon the manner in which this strategy may be adopted by the organization in order to propel a significant growth in business activities and operations.

Implementation of Growth through Quality Strategy

The implementation of quality strategies in the context of business operations involves adaptation to fundamental changes towards the process and practices followed, to gain higher levels of productivity and profitability. It has been identified by Minh et al. (2015), that in the hospitality industry, the adoption of quality strategies involves the consideration of process capability, customer needs, variability and proper allocation of resources. Such quality strategies further involves ensuring that the particular needs and requirements of the customers are met effectively along with an adaptability towards the recent trends in the industry. In the case of Kings Head Hotels and Restaurant it can be identified that the adoption of an effective quality strategy is directly associated with the overcoming of the challenges and threats faced due to the outbreak of the COVID-19 disease. The measures adopted by the organization for the purpose of propelling growth of the business activities and operations an enhancing the overall productivity and profitability of the organization may be listed to be the following:

1. Refurbishment of hotel bedrooms that are provided to the guests for accommodation purposes, including executive rooms, twin rooms, double rooms and singe rooms
2. Enhancement of room services to include sanitization facilities, provision of catering services from the restaurant and complimentary services for cleaning up twice in a day
3. Creation of online mobile application for the guests to use, wherein they will be able to book the rooms of their choice as well as the facilities required according to various packages
4. Automated services available through online application through which the customers and guests will be able to call for room service and even book their food and beverage requirements
5. Collaboration with a hotel booking website, namely Booking.com, so that the bedrooms can be directly sold to the customers or guests
6. Discount vouchers have been made available to the customers and guests through ITISON, so as to stimulate the demand of the guests and customers in the middle of the week
7. Complimentary breakfast services for the guests and customers irrespective of the package selected by them through the booking application or website  
8. Provision of a function suite with the capacity of 200 people, designed in a theatre style, with enhanced safety and security measures in order to be able to respond to the COVID-19 safety protocols
9. Provision of a dining room and coffee bar within the premises of the hotel so that the customers and guests may be able to enjoy their food in a luxurious ambience
10. Facilities provided by the hotel to plan and manage events within the premises of the hotel as per the budget and requirements of the guests or customers
11. Facial recognition systems for the guests instead of keys or any other form of biometric security systems in order to ensure the maintenance of the safety policies of minimum contact during the pandemic situation

The quality enhancements incorporated by Kings Head Hotels and Restaurant have been devised as strategies to overcome the challenge of reducing business activities owing to the outbreak of the COVID-19 disease. In this respect, it may further be stated that the most essential quality feature to be identified in the growth through quality strategy adopted, is the enhancement of the health and security facilities within the premises of the hotel. In order to ensure such higher standards of safety for the guests as well as the employees, the company has strategized to invest in upgrading the scope of technological innovation used, in the form of facial recognition of the guests instead of any other biometric form.

Revenue Management

The growth strategy adopted by Kings Head Hotels and Restaurant is focused towards enhancing the quality of services provided to the customers in order increase the opportunities of higher revenues and thereby growth in business (Ivanov et al. 2014). The concept of revenue management involves the methods and practices that are adopted by business organizations in order to predict the consumption behaviour of the targeted customers of an organization at a micro-market level, so as to optimize the availability of products and services as well as optimize the growth of overall revenues (Kimes 2016). In this regard, the case of Kings Head Hotels and Restaurant may be considered in which the company has adopted the strategy of growth through quality. Thereby, the manner in which the company may strategize to increase its revenues involve the enhancement of the quality of services provided to the customers, keeping into consideration he specific mandates to be maintained on account of the outbreak of the COVID-19 disease across the world. The different ways by which Kings Head Hotels and Restaurant may engage in increasing the revenues earned from accommodation services provided to the guests or customers may be identified to be the following:

1. Increased focus on customer satisfaction through the creation of a system of feedback, which will enable the guests to fill out a detailed feedback form available in the mobile application and website, through which the customers will be able to suggest any improvements that may be adopted in the customer services
2. Adoption of a loyalty program may also be particularly helpful for the organization to be able to retain the customers and thereby increase their revenue. These loyalty programs in turn may involve special offers or discounts on the accommodation charges or any additional services that the customer would opt for
3. The health and security facilities provided by the hotels may be improved further in order to assure the customers of the maintenance of all due safety protocols as issued by the government. This will also provided the company with a competitive advantage as the customers would rely upon the safety measures provided by Kings Head Hotels and Restaurant over the other rivals operating in the market.
4. Improvement of the infrastructural facilities available in the organization may also be incorporated within the strategy of growth through quality. In this regard, it may be stated that the improvement of infrastructural facilities would increase the number of rooms available for the guests to stay in, thereby aiding in the enhancement of the accommodation revenues earned.
5. The customers may also be provided with 24 hours customer service facilities, which in turn will help in the improvement of the overall customer satisfaction. Positive feedback from the customers in this regard, in turn will help the organization to enhance its targeted customer base and thereby increase the accommodation revenues earned.
6. The organization may also focus upon the provision of different types of health cuisines in the restaurants so that the customers with different tastes and preferences may be able to choose from a wide range of food and beverage items available.

Total Quality Management

Quality theory, within the scope of business management, entails the different approaches and practices undertaken by an organization for the purpose of achieving successful business outcomes through enhanced customer satisfaction (Kiran 2016). Such an enhancement of customer satisfaction is in turn ensured through an enhancement of the quality of services and products offered to the targeted segment of consumers. The main purpose of total quality management is to improve the overall processes, services, products and the organizational culture in which the employees operate (Pambreni et al. 2019). The primary elements of total quality management include a focus upon customers, involvement of employees, process orientation, integration of systems, systematic and strategic approach, continual improvement, decision making on the basis of facts and communication.

In the case of Kings Head Hotels and Restaurant, it may be identified that the strategy of growth through quality as has been adopted by the organization involves a focus upon the customers, engagement of employees and process orientation. These aspects as incorporated by the organization in terms of improving the overall quality of services provided, in order to propel the growth of the organization can further be discussed in the following manner:

1. Customer focus – the company focuses upon the needs and demands of the customers in order to design the manner and approach through which the overall quality of business activities and operations may be enhanced. In this regard, it can also be observed that owing to the outbreak of the COVID-19 disease, the requirements of the customers is primarily the assurance of premium safety standards to be followed as well as the maintenance of the various protocols as issued by the government.
2. Engagement of employees – the company has also incorporated the growth through quality strategy through an enhanced engagement of the employees in the processes. As identified in the previous sections, the customers are to be provided with 24 hour customer services facilities, which naturally involves an increased engagement on the part of the employees. Thereby it is essential for the organization to formulate strategies to enhance the motivation and the performance of the employees to suit the quality standards adopted.
3. Process orientation – finally, Kings Head Hotels and Restaurant has also increased its focus upon the enhancement of the manner in which the various business processes are conducted within the scope of the organization. Process orientation in the management of quality involves a focus upon effective and efficient allocation and utilization of the resources available to the organization.

In order to implement the growth through quality strategy as has been devised by Kings Head Hotels and Restaurant, the company is require to develop an estimate of the costs that may be incurred. The various costs that may be envisaged for the purpose of implementing the strategy of growth through quality by the company may be identified to be borne in the following aspects of business activities and operations:

1. Training and development of the employees so that they may be able to provide better quality of services to the customers
2. Infrastructural development so as to be able to accommodate an increased number of guests or customers within the premises of the hotel
3. Development of the health and safety standards to be maintained by the organization through sanitization systems and clean up services twice a day
4. Enhancement of the technological infrastructure and development of mobile application to be provided to the gusts and potential customers, so that they may be able to book accommodation and other services directly
5. Marketing the new strategy adopted by the company so as to attract a larger customer base and gain a sustained competitive advantage in the market

Recommendations for New Food Offerings

One of the issues faced by Kings Head Hotels and Restaurant pertains to the low quality of the complimentary breakfast services provided to the guests or customers. Furthermore, the company has also received the feedback that the main courses are not prepared within time. In this regard, the organization may develop new food offerings in order to enhance the level of customer satisfaction and thereby enhance the opportunities towards profitability. The new food offering that is recommended for Kings Head Hotels and Restaurant is a vegan cuisine.

Considering the increasing health and safety concerns of the individuals across the world and an increasing trend of conversion to a vegan lifestyle, Kings Head Hotels and Restaurant may incorporate a vegan menu within the scope of their operations. Such an inclusion in the menu would aid the organization to be able to build a positive brand identity and image among the customers following a vegan lifestyle. Furthermore, the inclusion of this cuisine in the menu would also enable the company to gain a competitive advantage, as this could be considered as a special service that is offered by the company exclusively in the local market.

Increase of Food Gross Profit

A checklist can be provided, using which the manager of Kings Head Hotels and Restaurant will be able to evaluate the effectiveness of the growth through quality strategy that has been adopted within its scope of business operations. These bullet pointers focus upon the identification of the extent to which the gross profit through food sales may be enhanced.

Conclusion

From the above discussion regarding the growth through quality strategy adopted at Kings Head Hotels and Restaurant, it may be deduced that the management of quality is one of the most essential means by which an organization may be able to gain an increased level of profitability. Furthermore, in light of the outbreak of the COVID-19 disease, it is particularly essential for companies operating in the hospitality industry to be able to follow the quality standards issued by the government, so as to ensure the health and safety of the guests as well as the employees of the company.

References

Marković, S. and Raspor Janković, S., 2013. Exploring the relationship between service quality and customer satisfaction in Croatian hotel industry. Tourism and Hospitality Management, 19(2), pp.149-164.

Oh, H. and Kim, K., 2017. Customer satisfaction, service quality, and customer value: years 2000-2015. International Journal of Contemporary Hospitality Management.

Pizam, A., Shapoval, V. and Ellis, T., 2016. Customer satisfaction and its measurement in hospitality enterprises: a revisit and update. International journal of contemporary hospitality management.

Amin, M., Yahya, Z., Ismayatim, W.F.A., Nasharuddin, S.Z. and Kassim, E., 2013. Service quality dimension and customer satisfaction: An empirical study in the Malaysian hotel industry. Services Marketing Quarterly, 34(2), pp.115-125.

Ivanov, S., 2014. Hotel revenue management: From theory to practice. Zangador.

Kimes, S.E., 2016. The evolution of hotel revenue management. Journal of Revenue and Pricing Management, 15(3), pp.247-251.

Kiran, D.R., 2016. Total quality management: Key concepts and case studies. Butterworth-Heinemann.

Pambreni, Y., Khatibi, A., Azam, S. and Tham, J.J.M.S.L., 2019. The influence of total quality management toward organization performance. Management Science Letters, 9(9), pp.1397-1406.

Minh, N.H., Ha, N.T., Anh, P.C. and Matsui, Y., 2015. Service quality and customer satisfaction: A case study of hotel industry in Vietnam. Asian Social Science, 11(10), p.73.

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