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The Scope Of The Hospitality Industry Tourism Essay

The scope of the hospitality industry comprises of a range of businesses that provide services and facilities such as accommodation, food and beverage, entertainment, gaming and related products.

The term “hospitality” has become accepted over the years as a generic word, which describes the well being of services and facilities related to tourists and travellers.

The hospitality industry is represented in every country in the world and is diverse and complex. It encompasses a range of free-standing hospitality businesses and is also a component of a wide range of venues whose primary function is not hospitality.

The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources. /Sources: hospitality industry Wikipedia

The hospitality industry covers a wide range of organizations offering food service and accommodation. The hospitality industry is divided into sectors according to the skill-sets required for the work involved. Sectors include accommodation, food and beverage, meeting and events, gaming, entertainment and recreation, tourism services, and visitor information.

Usage rate is an important variable for the hospitality industry. Just as a factory owner would wish to have his or her productive asset in use as much as possible (as opposed to having to pay fixed costs while the factory isn't producing), so do restaurants, hotels, and theme parks seek to maximize the number of customers they "process".

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One of the adherent growing sectors of the economy of our time is the hotel industry. The hotel industry alone is a multi-billion dollar and growing enterprise. It is inspiring, never boring and offer unlimited opportunities. The hotel industry in diverse enough for people to work in different areas of interest and still at work within the hotel industry.

Twenty first century’s hotels provide modern precise services to their guests. The customers or guests are always right. This principle necessitated application of management principles in the hotel industry and the hotel professionals realized the instrumentality of marketing principles of managing the hotel industry.

The approach of total quality management is found getting and important function in the marketing management of hotels. The emerging positive trend in the tourism industry indicates that hotel industry is like a reservoir where the foreign exchange flows. This naturally draws our attention on Hotel Management. Like other industries, the hotel industry needs to explore avenues for innovation so that a fair blending of core and peripheral service is made possible. It is not to be forgotten that the leading hotel companies of the world have been intensifying research to enrich their peripheral services with the motto of adding additional attractions to their service mix. It is against this background that we find the service mix more flexible in nature.

The recruitment and training programmes are required to be developed in the features of the technical sophistication. The leading hotel companies have been found promoting an ongoing training programme so that the personnel come to know about the use of sophisticated communication technologies.

General classification of Hotel Industry

Classification of Hotels: on the basis of standards

Like most of the countries in the world, India could be an example and has also hotels divided in different categories depending on their location, facilities, infrastructures and amenities provided. All the star hotels in India are government approved with continuous control on the quality on the services offered.

Five Star Hotels – the most luxurious and conveniently hotels in India are grouped under Five Star Deluxe categories. Five Star Hotel in India are globally competitive in the quality of services provided, facilities offered and accommodation option. These are the top of the line hotels located mostly in big cities. These hotels provide all the modern facilities for accommodation and recreation matching international standards in hospitality. In such type of hotel HR department are established separately and to execute and to follow the concept of HR strictly, HR professionals are hired.

Four Star Hotels – A rung below five star hotels are Four Star Hotels, these hotels provide all modern amenities to the travellers with a limited budget .Quality of services is almost as high as five stars and above categories. These kinds of hotels are there for the travellers with the limited budget or for the places which might not get the tourist traffic associated with larger cities. In such type of hotel concept of HR is more or less followed.

Three Star Hotels – These are mainly economy class hotels located in the bigger and smaller cities and catering to the needs of budget travellers. Lesser in amenities and facilities, these hotels are value for money and gives good accommodation and related services in the reduced price. In such type of hotel concept of HR may or may not be present.

Two Star Hotels – This type of hotels are most available in the small cities and in the particular areas of larger cities. Catering for the backpacker tourist traffic, these hotels provide all the basic facilities needed for general accommodation and offer the lowest prices. In this type of hotel concept of HR is absent.

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One Star Hotels – The hotels with most basic facilities, small number of room’s location in the fur-flung areas are grouped under one star hotel category. These hotels are best when customers for looking cheapest available accommodation option. In this type of hotel concept of HR is alien words.

Organisational Structure of Hotel Industry

Core Operational Department:

Food and Beverage (F & B) Department

F & B deals mainly with food and beverage allied activities. Different divisions are there in F& B are Restaurants, Speciality Restaurants, Coffee Shop (24hrs), Bar, Banquets, Room Service etc. Apart from that they have Utility services (Cleaning) .

Housekeeping Department

The housekeeping Department is another important department in hospitality world. Housekeeping is responsible for cleaning the hotel’s guestrooms and public areas. This department has the largest staff, consisting of an assistant, room inspectors, room attendants, a house person crew, linen room attendants and personnel in charge of employee uniforms. They may have their own laundry and valet equipment may use it only for hotel linens and uniforms and send guest clothing to an outside service where can be handled with specialised equipment.

Front Office Department

The front office is the command post for the reservations, registering guests, take in charge of guest accounts (cashiering/payment), checking out guests. It is the front desk responsible to allocate their designated rooms, distribute their keys, send mails, emails or other information for guests. It is the also the most visible part of the front office area.

Food Production Department

Food production department handles with the preparation of food. Basically, it is their responsibility to prepare dishes or menus which are ordered by guest and afterward catered by the F & B Department. They can prepare different kind of Cuisine like Chinese, Indian, Thai, Filipino, Western food, Italian and a lot more.

Core Functional Departments

Marketing and Selling Department

Sales and marketing has become one of the most vital functions of the hotel business and integral part of modern of hotel management. It includes packaging of selling, sales promotion,, advertising and public relations. The marketing divisions is charged with the responsibility of keeping the rooms in the hotel occupied at the right price and with the right mix of guests.

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Safety and Security Department

The security of guests, employees, personal property and the hotel itself is an overriding concern for today’s hoteliers. In the past, most security precautions concentrated on the prevention on thefts from guests and the hotel. However, today such violent crimes as murder and rape have become a problem for some hotels. Unfortunately, crime rates in most major cities are arising. Hence today security department also concentrate on these additional criminal activities too.

Engineering and Maintenance Department

This department provides on the day-to-day basis the utility services, electricity, hot water, steams, air conditioning and other services and is responsible for repair and maintenance of the equipment, furniture and fixtures in the hotel.

Finance, Accounting and Control Department

The finance and accounting department is responsible for keeping track of the many business transactions that occur in the hotel. Accounting department does the bookkeeping regarding financial matters in an appropriate description. Whereby the control department is concern with cost control guidelines by the way reducing in investment, reduction in operating cost, control of food service cost, control of beverage costs, labour cost control, etc.

Administration Department

This department is responsible for all the work with the administration, personnel, manpower, employee’s welfare, medical and health security.

Scale, scope and diversity in a Hotel Industry

The primary purpose of hotels is to provide travellers with shelter, food, refreshment, and similar services and goods, offering on a commercial basis things that are customarily furnished within households but unavailable to people on a journey away from home. Hotel today not only cater to the basic needs of the guest like food and shelter provide much more than that, like personalized services etc. Many more and more people are travelling not only for business reasons but for leisure as well. As a matter of fact, because of the massive increase on tourism economy, tourism continues to grow as political freedom, economic wherewithal and social equality spread across the whole world. There was a growth in international travel and thereby growth in hotel industry.

Hotel development also involved diversification of hotel types. Most early hotels had been large urban luxury establishments, but newer variants quickly emerged. Resort hotels, designed to accommodate the rising tide of tourists, were built in panoramic rural landscapes far from the cities. Commercial hotels, more simply furnished and less expensive than the luxury variant, served the growing ranks of travelling salesmen and other commercial workers set in motion by the expanding economy. Railroad hotels were built at regular intervals along track lines to provide passengers and crews with places to eat and rest in the decades before the introduction of sleeping cars. Residential hotels, dedicated to the housing needs of families increasingly unable to afford private houses in expensive urban real estate markets, served as the prototypes for apartment buildings.

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Scale, scope and diversity in a Restaurant Industry

The restaurant industry, on the other hand, covers fine dining specialty restaurants, fast food outlets, canteens, and food courts. Fine dining and specialty restaurants offer a wide variety of international cuisines. The restaurant originated in France dating back to 1765 when one A. Boulanger, a soup vendor, opened an establishment advertising restoratives, or restaurants, referring to the soups and broths available within. The institution took its name from the advertisement, and “restaurant” now denotes a public eating place in English,

French, Dutch, Danish, Norwegian, Romanian, and many other languages, with some variations. In the Philippines, a new trend in the restaurant industry is rapidly gaining popularity, that is, “eat-all-you-can buffets”, which are offered at reasonable prices. A number of restaurants offer "buffets with no leftovers" at

50% off normal buffet prices. /Sources: http://dirp3.pids.gov.ph/ris/taps

Based on my own country Philippines, although local entrepreneurs own most fine dining restaurants, an overwhelming number of fast food outlets are American franchises. These outlets, therefore, pose serious competition for local franchises. Particularly since tastes and preferences of consumers tend to favour international, especially, fast foods and restaurants. Finally, product differentiation exists in the industry. Established firms have brand identification and customer loyalties, which stem from past advertising and customer service.

In the Philippines, tourism is one of the major industries that the WTTC noted as positioned at the epicentre of global travel and tourism growth and development. In 1997, tourism contributed 8.7% of the country’s GDP, generating 2.3 million jobs (or one in every nine nationwide), and accounting for

some 10.5% of Philippine investments. According to the Department of Tourism, international arrivals in 1999

stood at 2.17 million, a slight increase from the previous year’s total of 2.15 million visitors. Despite the economic crisis suffered by its Asian markets, the Philippines’ foreign exchange receipts from tourism went up by 5.83% from $2.41 billion in 1998 to $2.55 billion in 1999. Moreover, the Philippines enjoyed the highest repeat visitors in Asia at 54.22 percent, indicating that the tourism sector can survive external threats and competition in the region. As tourism serves as the main market for hotel and restaurant services, increase in visitor traffic over the past ten years resulted in a corresponding boom in the hotel and restaurant industry. During the last decade, the hotel and restaurant industry has flourished even as it struggled to cope with difficult challenges. New hotels mushroomed in the capital while older hotels have done their best to spruce-up both their interiors and upgrade services. Likewise, the growth of the restaurant sub-sector, the number of players and the variety of services offered, has been notable during the period. /Sources: http://dirp3.pids.gov.ph/ris/taps

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People 1st

The Academy's role

To identify, endorse and promote qualifications and learning opportunities which are delivered to National Skills Academy standards. This delivery may take place in universities, colleges of further education, employer businesses and dedicated hospitality schools. It's role is also to:

Focus on the areas related to management and leadership, customer service and craft skills which are central to addressing the industry challenges

Innovate and provide franchisable solutions

Ensure that funding is available where ever to support excellence in hospitality training.

People 1st is the Sector Skills Council for the Hospitality, Leisure, Travel and Tourism Sector. The People 1st sector footprint is defined across 14 separate industries: hotels; restaurants; pubs, bars and nightclubs; contract food service providers; hospitality providers; membership clubs; events; gambling; travel services; tourist services; visitor attractions; youth hostels; holiday parks; and self-catering accommodation. [1] 

It is difficult to undertake a statistical analysis of the tourism and hospitality sector as the sector includes a number of different industries as defined by the Standard Industrial Classification (SIC) codes. In the main, statistical analysis is usually concentrated on tourism related industries, the most important of which are hotels and restaurants.

Across the UK, People 1st industries generate an annual turnover of £135 billion and employ 1.9 million in more than 180,000 establishments.

According to People 1st, there are 1,585 vacancies in the core hospitality sector, with the largest number of vacancies for kitchen and catering assistants, bar staff, chefs and cooks. Nearly a fifth of hospitality and tourism firms have indicated that they have hard to fill vacancies, and 48% of the unfilled vacancies are attributed to a failure to find individuals with the appropriate skills. A third of employers have reported skills gaps.

British Hospitality Management

The British Hospitality Association has been representing the hotel, restaurant and catering industry for 100 years. The Association exists to ensure that the views of the British hospitality industry are represented in a forceful, coherent and co-ordinated way to government and policy makers in the UK and internationally, in order that its members' businesses can flourish.

The British Hospitality Association (BHA) was established in 1907 as the Incorporated Hotel Keepers Association. In 1910 it merged with a new and entirely separate organisation called Incorporated Association of Hotels and Restaurants, taking on the latter's name.

In 1926 it became the Hotel and Restaurant Association of Great Britain, then the British Hotels and Restaurants Association in 1948 and the (ungrammatical) British Hotels, Restaurants and Caterers' Association - after the merger with Caterers' Association of Great Britain - in 1971.

It was re-named British Hospitality Association in 1992. Along the way, it lost some of its restaurant members

when they broke away to form the Restaurant Association of Great Britain in 1967.

Supported by some of the industry's top independent restaurateurs, such as Prue Leith and Robert Carrier, the RAGB - later The Restaurant Association - fought exclusively for the interests of restaurants but the cost of such activity and the need to present a united front to government encouraged the merger with the BHA in 2003.

The Restaurant Association retains its own identity as a trading division of the BHA.

For a more detailed history, please read the official centenary booklet Hospitality: A Portrait. The British Hospitality Association 1907 - 2007 which gives a fascinating insight into the UK hospitality industry over the course of the past one hundred years. /Sources: Google

Assessment:

The People 1st focuses on the sector skills council for the hospitality, leisure, travel and tourism sector. The tourism and hospitality sector includes a massive number of different industries as defined by the Standard Industrial Classification Code (SIC). The statistical analysis mostly concentrated on the hotels and restaurants industries. This association interact significantly on management and leadership, customer skills, job vacancies, innovate and franchisable solutions, and to make assurance that funding is available. Whereas, British Hospitality Management is an association that represents hotel, restaurants and catering industry. British Hospitality Industry are represented by this association to have a forceful, comprehensible, and combined way to UK’s government policy makers and internationally, in order that it members’ businesses can prosper.

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These two different groups of professional bodies in the field of hospitality services are very important in

order to have an organise and fruitful result in building businesses either on a hotel, restaurants, catering etc. The most significant aspect for any associations in hospitality industry is to work together and help with each other, exchanging ideas to give a most fascinating insight into UK industry and worldwide.

Organisational Structure/Chart of Hotel Industry

Organisational Structure of Hotel Industry

Core Operational Department:

Food and Beverage (F & B) Department

F & B deals mainly with food and beverage allied activities. Different divisions are there in F& B are Restaurants, Speciality Restaurants, Coffee Shop (24hrs), Bar, Banquets, Room Service etc. Apart from that they have Utility services (Cleaning) .

Housekeeping Department

The housekeeping Department is another important department in hospitality world. Housekeeping is responsible for cleaning the hotel’s guestrooms and public areas. This department has the largest staff, consisting of an assistant, room inspectors, room attendants, a house person crew, linen room attendants and personnel in charge of employee uniforms. They may have their own laundry and valet equipment may use it only for hotel linens and uniforms and send guest clothing to an outside service where can be handled with specialised equipment.

Front Office Department

The front office is the command post for the reservations, registering guests, take in charge of guest accounts (cashiering/payment), checking out guests. It is the front desk responsible to allocate their designated rooms, distribute their keys, send mails, emails or other information for guests. It is the also the most visible part of the front office area.

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Food Production Department

Food production department handles with the preparation of food. Basically, it is their responsibility to prepare dishes or menus which are ordered by guest and afterward catered by the F & B Department. They can prepare different kind of Cuisine like Chinese, Indian, Thai, Filipino, Western food, Italian and a lot more.

Core Functional Departments

Marketing and Selling Department

Sales and marketing has become one of the most vital functions of the hotel business and integral part of modern of hotel management. It includes packaging of selling, sales promotion,, advertising and public relations. The marketing divisions is charged with the responsibility of keeping the rooms in the hotel occupied at the right price and with the right mix of guests.

Safety and Security Department

The security of guests, employees, personal property and the hotel itself is an overriding concern for today’s hoteliers. In the past, most security precautions concentrated on the prevention on thefts from guests and the hotel. However, today such violent crimes as murder and rape have become a problem for some hotels. Unfortunately, crime rates in most major cities are arising. Hence today security department also concentrate on these additional criminal activities too.

Engineering and Maintenance Department

This department provides on the day-to-day basis the utility services, electricity, hot water, steams, air conditioning and other services and is responsible for repair and maintenance of the equipment, furniture and fixtures in the hotel.

Finance, Accounting and Control Department

The finance and accounting department is responsible for keeping track of the many business transactions that occur in the hotel. Accounting department does the bookkeeping regarding financial matters in an appropriate description. Whereby the control department is concern with cost control guidelines by the way reducing in investment, reduction in operating cost, control of food service cost, control of beverage costs, labour cost control, etc.

Administration Department

This department is responsible for all the work with the administration, personnel, manpower, employee’s welfare, medical and health security.

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Organisational Structure/Chart of a Restaurant Industry

Organisational Structure of Restaurant Industry

Chief Executive Director (CEO) – is in charge of making all final decisions, concerning the hotels, running meetings and presentations, launching new hotels, and making the final decisions of the operation managers for individual’s hotels.

Operations Manager – also known as operation directors oversee all other manager and report to the owners directly. It is the responsible of the restaurant operation manager to handle various aspects of the restaurant’s operation. They deal directly with customers and employees and are responsible for a diversity of duties that include financial record keeping and hiring, handling and firing employees. The duties and responsibilities of an operation manager is to generally managing the facility in which all the materials to be use in food preparation are being organised, serving and working properly and so with the employee resources as well.

Store Manager – a store manager could also be called as store general manager in which they usually at least one assistant manager working for them as well as various department managers and hourly employees. Store manager is responsible to communicate in some area managers department and get their assistance in improving store operation such as service in cleanliness.

Kitchen Manager – is responsible of overseeing the entire operation of the kitchen. The duties and responsibilities of a kitchen manager include supervising kitchen staff and make sure they are performing their duties very well. The kitchen manager must also make sure that the kitchen area meets health and safety requirements as well as food preparation. To ensure that all food is properly prepared and meet the standards set by the restaurant.

Schedule Manager – To avoid confusion in creating schedule for multiple employees, the schedule manager must be organised and it is advisable and very helpful to use a typical spreadsheet to easily simplify their work and spend less time in scheduling people and more time managing.

Maintenance Manager – a maintenance manager or facility manager is responsible for creating and maintaining all preventive maintenance programs to help keeps the restaurant running smoothly, such as maintaining kitchen equipment, lighting, point of sale system and the physical structure.

Service Supervisor -

Beverage Manager – it is the responsibility of the beverage manager to order, stocking, and managing all alcoholic beverages in the restaurant. In fact, this kind of position must have knowledge in different brands/kind of liquors and wines and can intelligibly explain and recommend selections to customers.

Main Chefs – The main duty of a chef is to prepare meals for guests according to the restaurant menu. Chefs are required to create recipes that are unique from other restaurants. Chefs should generally follow a specific recipe for each menu item; they should prepare to customise the dish to the guest’s requests. More duties include preparing daily menu, ordering supplies, and supervising kitchen staff.

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Dishwashers – Most of the restaurants uses a machine dishwasher to store all the messed dishes, cups, glasses, cutleries, casseroles, etc. and be washed at one at a time. While small restaurants/business hire a dishwasher to wash manually all the dishes.

Service Crews – a service crew is a group of co-workers that labour as a team to complete tasks of an employer. Waiters and waitresses are also called as service crews. However, service crews are not only working in a fast food but they are also working in a banquet and convention services, military, transportation, installation, and maintenance situations.

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RESTAURANTS

Operational:

Food Safety

Food safety refers to all those hazards, whether chronic or acute, that may make food injurious to the health of the consumer.

Food safety is and remains a top ten concern for food manufacturers and other food businesses. But a series of major food poisoning outbreaks and contamination incidents is happened in different ways and in several times.

In US, the Food and Drug Administration (FDA) was created to protect health by assuring the safety and security of the nation’s food supply, among many other things. All food facilities including restaurants must be registered with the FDA and must also give advance notice to the FDA on shipments of imported goods.

Based on my own experience, I worked in a Chinese restaurant and this restaurant also offers take away either in delivery or collection. In every £14 or more purchase it will be delivered for free. I had observed that not all days the restaurant is busy. As a matter of fact, most of the orders are takeaway. The restaurant seems busy only during weekends like Friday and Saturday. In fact, many are also ordering by phone and be delivered. The company must ensure to pass the health and safety regulations including SODEXHO training in which certificates will be given like Food and Hygiene Certificate. All employees must be aware on their own health concern that they are well-fitted enough to work in these kind of industry especially working in a restaurant. For those very sick people like Tuberculosis, they are not allowed or be part of these industry. Moreover, all utensils must be washed properly and make sure that is also being sterilised to ensure health and safety.

Global sales of food additives were estimated at well in excess of USD25bn in value terms in 2007. Although the market is dominated by sectors such as flavours and hydrocolloids, recent growth has been most impressive in those additives most relevant to the prevailing trend towards lower-fat foods. In contrast, some sectors have been adversely affected by the effects of rising low-cost Chinese production, which has driven down market value in some instances. The Food Additives Market – Global Trends & Developments is a publication from Leatherhead Food International (now Leatherhead Food Research), which updates the previous edition published in 2005. The report identifies the major market forces influencing the global additives market, and presents a detailed analysis of trends in the market for 13 different additive categories. In addition to information on applications, market sizes and trends, and the leading companies in the industry, the report also discusses finished food trends impacting on additives and assesses future prospects for the industry. http://www.leatherheadfood.com

Managerial:

Security

Security in enterprise computing system is not simply a matter of technology and cannot be addressed satisfactorily with hardware and software alone. It also a matter of managing people, establishing and enforcing strong (right and clear) policies, implementing procedures and strengthen security, and periodically checking the effectiveness of the security architecture and making necessary changes. To become a successful security manager, he or she must constantly educate himself or herself and his or her staff.

Basically, when we talk about security it is generalised. Not only on computer or system security but accordingly on engineering, security on policies and regulations, security of the place and overall security.

Authentication mechanisms are used to identify the identity of subject and thus ensure that the claimed identity is correct. Authentication mechanism could be based on username and passwords or can be more advanced and based on digital credentials, biometrics, or the like. I f you have all this information you can access on information you want to open or even have authority to enter the restricted premises.

The following are the E-enterprise security domains: Auditing, Authentication, Access Control, Cryptography, System Protection, Intrusion Detection, and Perimeter Protection. Confidentiality in all information must be taken place either inside or outside the premises.

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Legislation and Regulation:

Discrimination

Equality Act 2010 is a law and regulation on discrimination particularly in recruiting staff. There are main aims on this Act: first; to consolidate the various the anti-discrimination law into one place and secondly; to strengthen the law to improve progress on equality.

All the different forms of discrimination - which include sex, race, disability, age, sexual orientation and religion and belief - will remain distinct areas as now, and each will still be defined in different ways. To strengthen progress on equality, the Act makes some important changes. In particular, these include protection from “associative discrimination” and “perceptive discrimination” and limiting the right of employers to ask for medical information from job applicants.

Employees can complain of harassment even if they themselves have not been harassed. Simply witnessing harassment of others will count as “harassment” under the new law.

Current Image:

Quality Improvement

An analysis of 168 critical incidents of service success or failure for seventeen hotels in Hong Kong found that the most common critical incident involved a hotel employee responding to a guest request. That stands in contrast to an earlier study conducted in Western hotels that identified service recovery as the most common critical incident. The analysis is based on interviews with fifty-six front-desk employees in a diverse group of Hong Kong hotels. When it came to service recovery, hotels in Hong Kong were inclined to apply compensatory responses, while earlier studies found that Western hotels favoured corrective responses, even when customers preferred compensation. One particular difference was employees’ assessment of the source of customer dissatisfaction. Whereas respondents in Western studies seemed to cite external causes, the delivery system, or the customers themselves for customer dissatisfaction, the respondents in the Hong Kong study uniformly blamed themselves. /Source: SAGE journals online

All fields of business or an enterprise must have a good quality in terms of service to give satisfaction in every customer. For example in the restaurant, there are also service failures. It comes into four stages: reception, ordering, meal consumption and check-out. Both dining and fine dining restaurant, service failure is in stage three (consumption) most strongly diminishes overall customer satisfaction, followed by stage four (payment and exiting), stage two (order taking and delivery) and finally stage one (greeting and seating). The relative impact of service failure on behavioural intentions varies by service stage and restaurant types.

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