Department of Management
Hospitality Management Unit
Bachelor of Science in Hospitality Management
Strategic Management in Tourism and Hospitality
BSHM151
“VALUE-FOCUSED VS. PROFIT-FOCUSED”
Submitted by:
ABINA, VIVIAN R.
AQUINO, CZRYL GRACE L.
ARELLANO, ABEGAIL C.
BALLESTAMON, JASSEN LAUREL B.
URDAS, MARC PAUL
BSHM 4A | Group No. 4
Submitted to:
MR. JOLLIMAR PROFETA, MIHTM
Subject Instructor, BSHM151
December 02, 2024
I. Overview.
Overview of pertinent history and facts
Describe the background of the situation or business that is the subject of the case.
Provide information that creates the context for your analysis.
Incorporate relevant facts about the company or situation derived from research
outside the case you are analyzing; provide APA style citations for all sources of
information. (10points)
II. Problem/s
Pricing and Value Gap
For example, a resort fee is usually offered as a mandatory charge separate
from the advertised hotel price to cover various amenities such as Wi-Fi access, gym
facilities, parking, and shuttle services. One of the most common complaints about
resort fees is a lack of transparency. Tourists who feel deceived or wrongfully
charged are less likely to return to the same hotel or suggest it to others, which could
harm the hotel's reputation and profitability in the long run.
Similar case situation: A guest experienced frustration and dissapointment as
they were charged a daily $35 (280 pesos) at a hotel in downtown Honolulu, Hawaii
in 2023, to which he describes as a standard hotel with an average pool and a small
gym. The hotel was a city hotel with no grounds, open spaces, beach access, or
privileges as their nearby sister property on the beach.
Service Delivery Gap
In the study conducted by Aswin Sangpikul (2021) about "Understanding Resort
Service Quality through Customer Complaints," he find out that among 284 online
reviewers who made complaints about resort services at the Andaman beach
destination, (34%) made complaints about guest rooms. Meanwhile, front desks
received the second most complaints (26%) and (21%) made negative feedback in
terms of food and beverage service. This shows that guests evaluate service quality
differently in each sector. Each area should provide service standards in order to
maintain service quality and a comprehensive understanding of customers' needs.
Service failure can be an opportunity to grow and establish a stronger relationship
based on trust and recovery (Dietrich, 2019).
Customer Expectation Gap
It occurs when customers' expectations do not match the company's offerings.
This disparity leads to frustration and disappointment (Drumond, 2019). For example,
hotel administrators might assume that guests desire better cuisine or in-house
restaurant facilities, when guests may be more interested with the responsiveness of
the personnel or the cleanliness of their rooms. Unmet expectations reflect a
shortcoming in the quality of services provided to customers (Gebremichael, 2019).
III. Alternative Solutions
Inclusive Pricing
Inclusive pricing promotes transparency, allowing guests to better plan their vacation
budget. It includes the cost of amenities and services in the initial room charge, providing
guests an accurate estimate of how much their stay would cost from the start (Editor's
Pick, 2024). The path to guest satisfaction begins with transparent, comprehensive
pricing. It's about integrating the guest-first approach and making a lasting relationship
beyond the transaction (Quinan, 2023).
Flexible Cancellation Policy
It is a set of regulations that specify what occurs if a guest has to cancel their
reservation. These policies provide guests with some flexibility by enabling them to
cancel their reservation until a set deadline prior to their arrival date (Evtimova, 2024). It
reduces the frequency of no-shows, ensuring that a hotel does not lose too much money
due to avoidable vacancies (Colcol, 2024).
e.g., Añoreta Resort (Spain) provides a flexible cancellation policy for individual
reservations, but not for groups or special events. Guests are permitted to cancel or
change their reservation for up to 48 hours, prior to their arrival. Following this period, a
one-night stay will be charged. In the event of a no-show, 100% of the entire cost of the
stay will be charged.
In terms of non-refundable conditions, the hotel will charge guest's credit card for the
full cost of their reservation. If the card does not have enough credit or is not valid, the
hotel will rightfully cancel their reservation. At the hotel, they must present their credit or
debit card, as well as their ID or passport. When booking at this rate, they cannot modify
or cancel their reservation for any reason. If they do not show up at the hotel on the day
of their arrival, they will not be refunded (Añoreta Resort, 2021).
Amaria Beach Resort Monolithos offers a flexible cost with free changes or
cancellations at least 15 days before the arrival date. The complete accommodation
value (100%) will be charged 14 days before the intended arrival date. Cancellations
made 14 days prior to the arrival date are subject to a 100% cancellation fee of the total
booking price. Non-show or early departure incurs 100% (Full) cancellation costs on the
total value of the booking. Meanwhile, free cancellation is not included in the non-
refundable rate. This special offer requires a full prepayment of the booking. No free
cancellations or modifications are permitted without full cancellation fees. If the guest
does not show up, they will not receive a refund (Amaria Beach Resort, 2024).
Complaint Resolution Protocol
Handling guest complaints promptly and empathetically is crucial for ensuring guest
satisfaction and loyalty in the hospitality industry. According to Sima et al., 2019,
complaints resolution protocol brings about customer satisfaction. It ensures that
complaints are addressed fairly and can effectively be implemented through the five
approaches adopted based on consulting methods. First of the method is to listen
carefully to the problem that the customer is experiencing and their emotions towards it.
Next, focus on the response to the complaint and its importance to them. In addition,
accept the customer's opinions and assumptions without rejecting them and then look for
a solution instead of the reason for the complaint. Every complaint is different but the
steps for dealing with them should be the same. Also, having a complaint policy is
essential to have a procedure to show staff and customers the steps that take when
dealing with complaints. A complaint resolution protocol ensures complaints are dealt
with the same way every time. Using this may improve the quality of complaints process
handling and prevent negative reviews. (Ejike & Daniel 2022).
Guest Feedback System
Customer feedback plays an important role in the rapid development of hospitality
and other industry services .It is a type of information-based asset that is critical for
smart tourism's long-term survival, including economic and environmental sustainability ,
and also many studies have highlighted satisfaction as an extremely significant part of
customer service .In the traditional system, the simplest way to collect feedback from the
customer is through the feedback diary at the time of the customer visit . A customer
could check the feedback from the feedback diary or on the website of a particular hotel
or industry. Traditional techniques, such as telephone calls, internet survey links, and
paper comment cards, have severe limitations, such as accurate feedback for new
customers in the past and social media and secret shoppers also do not provide
satisfying information to the customers. Hotel management must understand the
significance of various digital technologies that can affect hotel performance to deploy
relevant solutions.
IV. Evaluation of Alternatives
Evaluate each alternative
Critically assess the alternatives defined in section 3. Describe the implications and
key steps for implementation of each alternative. Consider external and internal
factors and other relevant trends. Once again, utilize course texts and other
resources to enhance your assessment. With references, APA Style, 7th edition (15
points)
V. Recommendation/s
Offer your best recommendation
Based on your analysis in section 4, recommend one alternative. Support and justify
your recommendation. Depending on the nature of the case, you may suggest
management or leadership styles or commitments, describe the organizational
structure, policies and systems, or outline changes to the business model needed to
successfully implement this recommendation. (15 points)
VI. Possible Results and Obstacles to Implementation
Summarize the likely result and/or obstacles that may play into the execution of your
solution. What outcomes might result from the implementation of the selected
alternative? What internal or external trends may enhance or obstruct successful
implementation? (15 points)
VII. Summary of References APA style, 7th. Edition (minimum of 5 from
reputable sources) 10 points.
Machia, J., and Slough, R. (2024, October 28). The Issue with Resort Fees: A Call
for Transparency and Fair Pricing. Wanderers Compass Travel Blog.
[Link]
transparency-and-fair-pricing/
Sangpikul, A. (2021). Understanding resort service quality through customer
complaints. Anatolia, 1–14. doi:10.1080/13032917.2021.1925937
Dietrich, H., (2019). Service Failure Management in High-End Resorts Hospitality
Resorts. ScholarWorks at University of Montana. p. 1-57
Drumond, M. (2021, December 17). Hospitality: a minefield for customer experience
expectation gaps. Medium. [Link]
minefield-for-customer-experience-expectation-gaps-863255489cec
Gap 1: Customer Expectation vs. Management Perception | Retail Management.
(n.d.). [Link]
retailmanagement/chapter/closing-the-knowledge-gap/
Gebremichael, G. (2019). Customers' expectations and perceptions of service quality
dimensions: A study of the hotel industry in selected cities of Tigray region,
Ethiopia. African Journal of Hospitality, Tourism and Leisure, Volume 8 (5), p.
1-15
Quinan, A. (2023, December 15). Understanding Honest, All-Inclusive pricing in the
hospitality industry. InsideOut Solutions.
[Link]
hospitality-industry/
Editor’s pick: Is all inclusive pricing the new standard for hotels & resorts? (n.d.).
[Link]. [Link]
inclusive-pricing-the-new-standard-for-hotels-resorts/
Añoreta Resort. (2021, July 30). Cancellation Resort Policy - Añoreta Resort.
[Link]
Evtimova, I. (2024, August 06). Hotel Cancellation Policy: Everything You Need to
Know. Fair Point GmbH, [Link]
cancellation-policy-everything-you-need-to-know?id=79
Colcol, S. (2024, February 21). Hotel cancellation policy: Complete guide. Little
Hotelier. [Link]
cancellation-policy/
Payment & Cancellation Policy | Amāria Beach Resort Monolithos. (2024, May 24).
Amāria Beach Resort Monolithos. [Link]
cancellation-policy/
[Link]
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[Link]
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