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Application Of The Service Concept To Hotels

Paper Type: Free Essay Subject: Marketing
Wordcount: 3333 words Published: 12th May 2017

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PURPOSE OF THE REPORT:-The purpose of this report is to make clear and well defined service management on the specific organisation. This is a report which is based upon the hotel that demonstrate the existing operation and quality of the organisation.In this report, there is considered about an integrated analysis of the service operation system in the taj group of hotels and it has succeeded to get correct focus to analyze the service concept and its management.

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AIMS AND OBJECTIVES OF THE REPORT:- As this report has been introduced about taj group of hotels, there is taken some aims and objective on base of this report.as it is,1. This report has covered most of all point about the service concept related to taj group of hotels about nature of service operations and model of service operations. In the nature of service operation is considered to mention some sub point like service process matrix, The service package ,distinctive characteristics of a service operations, The strategic classification of services, The role of a service manager from an open systems view of service. In the model of service operation which is an integrative statement that specifies the nature of the service concept(what the firm offers, to whom and through what processes), the service blueprint( how the concept is delivered to target customers),and the accompanying business model( how revenues will be generated sufficient to cover costs and ensure financial viability).2.there is highlighted the basic application of the service concept of hotels with solid definition and background information and has been focused on investigation regarding extent to which a firm offers few or many services.3.On the application of service concept, there is many sub point as service delivery system that part of the total service system during which final “assembly” of the elements takes place and the product is delivered to the customer; it includes the visible elements of the service operation.4. quality which is the degree to which a service satisfies customers by consistently meeting their needs ,wants and expectations .5.customer satisfaction is a short term emotional reaction to a specific service performance .6. A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer.7.A revenue management system that allows a firm to extract the maximum profit by regulating supply and demand.

RATIONALE OF THIS REPORT :-This report is written on hotel and as It is known that hotel industry is the fast growing industry. This industry is the perfect place of hospitality and as there is taken an organisation which is Taj group of hotels was started their journey from India in 1903 by the first hotel name ” The Taj Mahal Palace And Tower”.And how this group of hotels has played an important role in launching several of India’s key tourist destinations. The Taj Group has a philosophy of service excellence which entails providing consistently high levels of personalized service and innovative means of improving service quality.


Gronroos,C.(2007) defines that The service concept is a way of expressing the notion that the organization intends to solve certain types of problems in a certain manner. this means that the service concept has to include information about what the firm intends to do for a certain customer segment, how this should be achieved, and with what kinds of resource.

If in taj group of hotels has no any service concept agreed upon and accepted ,the risk of inconsistent behaviour is high .supervisors do not know what should be achieved and what priorities to set. A situation would develop in which different parts of the organization perform inconsistently .this of course, adds to confusion . The service concept should be as concrete as possible so that it can be understood by everybody. Before a service concept can be determined ,careful market research must be carried out, otherwise there is always a risk that there will be an insufficient market for the services produced according to the service concept.


Degree of Interaction and Customisation

Low High

Service Factory Service Shop

Low Airlines, Hotels Hospitals

Resorts and Auto Repairs

Degree of Recreation Other Repair Services

labour intensity

High Mass Service Professional Services

Retailing, Wholesaling Doctors, Lawyers

Schools, Banks Accountants, Architects

Source: Schmenner (1995, p10)

According to Schmenner(1995), Hotels falls under low labour intensity in service factory because in this area are found most work is being done automated and less time consuming .where as other are like service shop,mass service and professional service in which labour is intensified higher.

There are following Distinctive Characteristics of Services like Simultaneity, Perishability, Intangibility and Heterogeneity. According to Payne (2001) Intangibility-services are to large extent abstract and intangible, Heterogeneity-services are non-standard and highly variable, Inseparability-services are typically produced and consumed at the same time ,with customer participation in the process and perishability-It is not possible to store services in inventory.

Tangible Physical Accommodation, Food and Drinks

Intangible Service

Of Accommodation,

Food and Drinks


One Night Stay in a Hotel

1.2 MODEL OF SERVICE OPERATIONS:- Lovelock, C. et al.(2007) points that There are some model of service operations like developing service concepts consists of a core product bundled with a variety of supplementary service elements.The core product responds to the customer’s need for a basic benefit , such as transportation to a specific location, resolution of a specific health problem. supplementary services are those elements that facilitate and enhance use of the core service. The “flower of service” concept categorizes supplementary services into eight groups which forms a petal which are surrounded the core, are information, consultation, order taking, hospitality, safekeeping, exceptions, billing and payment. These can suggest to understand the need for consistent performance on all supplementary elements. Technologies ,such as the internet, to deliver existing services in new ways has become model operation.


Most of the hotels have fantastic rooms, comfortable bed, award winning architectural and catchy advertisements is targeted to achieve and exceed guest service expectations.

Taj hotels also follow the same service concept to achieve success in guest service.


According to Taj hotels website, Taj group of hotels which is the one of Asia’s largest and finest hotel company, incorporated by the founder of the Tata group, Mr. jamsetji N.Tata was opened its first property, The Taj Mahal palace hotel, Bombay in 1903.

Taj Hotels Resort and Palaces comprises more than 60 hotels in 45 locations across India with an additional 15 international hotels in the Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia.

There are short information about taj group of hotels:-

In 1903,The company opens its first hotel “the taj mahal palace” in Mumbai, India.

In 2001, The Company is awarded the management contract for the “Taj Palace”,Dubai.

In 2005, The Company obtains a managemen contract to operate “The Pierre” in New York, USA.

In 2006, The Company acquires the “W” hotel in Sydney, Australia which is later renamed as the “Blue Sydney”.

In 2007, The Company acquires the “Ritz-Carlton” in Boston, USA which is later renamed as the “Taj Boston.”


















goods V



are different


awareness of the

importance of

service, customer

operations and

customer contact






of service and





challenge to



paradigms and the

development of








and testing of


large amount

of service

material based

on new

cross functionally



development of

service processes,

quality, failure,

design and

technology with a

view that service

could contribute

to manufacturing









drivers to


the return to roots

– the need to refocus





operational issues

and approaches





According to Gupta and Chen(1995),The five service dimensions of service quality were measured with an instrument known as SERVQUAL. SERVQUAL is a seven-point Likert scale which measures consumer expectations and perceptions of the service quality. Service quality is determined using gap analysis (i.e. the difference between expectations and perceptions of quality).

According to Ghobadian,A.et al.(1994)Quality gap analysis is A diagnostic management tool which facilitates the identification of several salient quality gaps. Useful in attempts to improve the quality of the offering.

Parasuraman et al., 1985 includes in Seth,N.et al.(2005) about GAP model that service quality is a function of the differences between expectation and performance along the quality dimensions. They developed a service quality model based on gap analysis. The various gaps visualized in the model are:

Gap 1: Difference between consumers’ expectation and management’s perceptions of those expectations, i.e. not knowing what consumers expect.

Gap 2: Difference between management’s perceptions of consumer’s expectations and service quality specifications, i.e. improper service-quality standards.

Gap 3: Difference between service quality specifications and service actually

delivered i.e. the service performance gap.

Gap 4: Difference between service delivery and the communications to consumers about service delivery, i.e. whether promises match delivery?

Gap 5: Difference between consumer’s expectation and perceived service. This gap depends on size and direction of the four gaps associated with the delivery of service quality on the marketer’s side.

Gap 6: The discrepancy between customer expectations and employees’ perceptions: as a result of the differences in the understanding of customer expectations by front-line service providers.

Gap7: The discrepancy between employee’s perceptions and management perceptions: as a result of the differences in the understanding of customer expectations between managers and service providers.

2.3.1 SERVICE -DELIVERY PROCESS:-According to Dale,Barrie G.(1999)To fullfill customer needs, organisation must set standards/specifications and systems for service delivery to include the relevant dimensions of customer service. A company needs appropriate advertising and promotion so that the service that is offered in external communications matches the service that the organisation is able to deliver .advertising and promotion affect customers expectations and perceptions of the delivered service, it is important not to promise more than can be delivered. Taj hotels has distinctive types of service-delivery process such as 1.system and technology2.guest wireless internet access3.in room guest entertainment system4.the taj contact centre 5.taj website 6.outlook 7.self service kiosks8.launch on knowledge management site.

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2.3.2 QUALITY AND CUSTOMER SATISFACTION:- Peters(1999) cited that”quality is in the eye of the beholder” or “quality is what the customer says it is”. Woodruffe(1995) points that service quality has become more crucial and important for both customers and service providers. organisations are becoming increasingly aware of the importance of quality in maintaining competitive advantage. Parasuraman et al. found in Danaher and Mattsson(1994) that customer satisfaction is distinct from service quality. Satisfaction is thought to result from the comparison between predicted service and perceived service, whereas service quality refers to the comparison between desired service and perceived service.

Sureshchandar et al. (2002) identifies five factors of service quality as critical from the customer’s point of view. These factors are:

Core service or service product;

Human element of service delivery;

Systematization of service delivery: non human element;

Tangibles of service- servicescapes;

Social responsibility.

Quality of this hotel is its own service and its effective and efficient management techniques and staff. Its stylish variety of hotels like; taj exotica, taj safari, The gateway hotels,Ginger hotels, Jivas spas etc. are put their quality. To know their customer satisfaction ,taj group of hotels has launched The customer feedback system. It is the primary and sole customer feedback system of the group.


According to (Wright,N.J.(1999) p216

Objective: supply and service

Operating system(and support units)


Suppliers, goods and services

Information technology(flow of information)

Figure 12.8 The Supply Chain approach

“A supply chain consists of all stages involved, directly or indirectly, in fulfilling of customer request .The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customer themselves …” (Chopra,Sunil and peter meindl,2003)

In taj group of hotels, supply chain management follow the process as it is called a continuous journey because it requires extensive time and the collaboration and cooperation of many internal and external parties. It’s also challenging because as organizations change, suppliers change, and as internal and external contacts change, supply chains change. Management support is needed and strong relationships need to be in place for effective supply chain management to work.

In terms of customer, this hotels gets it through tour operator and travel agent as this hotel have their own travel service by the name of inditravel which was formed in 2002, post the acquisition of the 18 year old agency Stallion Travel Services Pvt. Ltd. by The Indian Hotels Company Limited. Inditravel offers the following services:

International air ticketing

Domestic air ticketing

Rail ticketing

Hotel Bookings

Car Rentals


Passport Assistance

Foreign Exchange Assistance

Global Telecards

Medical Insurance

In the terms of purchase, this hotels are directly take the row material through suppliers at right price. This hotels have Taj Sats-Air Catering which offers innovative flight catering and related services. Taj Sats caters to over 26 international and domestic airlines, and is the leader in the Indian flight catering market.

Taj introduced Taj Air – an exclusive charter service that offers travelers higher levels of safety, efficiency and reliability in the comfort of their very own aircraft


Cross.R(1999)defines that revenue management is the application of disciplined tactics that predict consumer behaviour at the micro market level and optimize product availability and price to maximize revenue growth.

Successful revenue management relies on these points which are given below:

Importance of Good Forecasts

Extent to Which the Criteria Are Satisfied

Ability to Price Discriminate Through Effective Market Segmentation

Organizational Change and Investment in Systems

Management Understanding and Commitment

According to Taj hotels website,TAJ Hotels Resorts and Palaces has selected Amadeus Revenue Management System (RMS) for 32 hotels and resorts around the world. TAJ joins 48 international hotel chains and over 1000 hotel properties which have chosen Amadeus’ RMS.

TAJ Hotels Resorts and Palaces is India’s largest hotel group with 76 hotels in 51 destinations and an international presence in major cities such as Dubai, London, New York, Boston and Sydney. As TAJ expands rapidly across the world, taking advantage of the current boom in the hotel industry, it is establishing an infrastructure which will

Secure sustainable growth in guests and yields.

Amadeus RMS stores detailed information on reservations made throughout a hotel chain. This can be used to support sales, marketing and financial processes. The system generates accurate predictions of future demand, making suggestions on how to price rooms and manage availability so as to maximise yield. With this tool, TAJ will be able to sell the right room at the right price to the right guest. Other users of Amadeus RMS have seen revenue increase by up to 8%.


Taj group of hotels had launched their first five star property in India and after that spread their business in other countries. It provides top class service to the guest The Taj Group has a philosophy of service excellence which entails providing consistently high levels of personalized service and innovative means of improving service quality. To increase hotel revenue, It has many offers to attract the guest like book early get more service, weekend savers, value vouchers etc. Taj hotels use Amadeus revenue management system which performs to increase hotel revenue globally. It has excellent supply chain system as well as service quality model.

According to me, I will recommend to this hotels chain to increase the revenue, hotels should connected through software which provides reservation system more easier to guest and give the guest easy to access through online. There should be fulfilled with wow factor means wherever guest comes but they feel very innovated. As words of mouth plays important role for any business so this thing should be apply more in this hotel.


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