HOSPITALITY MANAGEMENT & LEADERSHIP

Review Questions

Discuss the core, tangible and extended elements of a hospitality product that you are familiar with.

As defined by the textbook, the core product of any hospitality firm is the basic benefit that customers are buying, such as in a hotel where the main benefit is a place to sleep. The tangible product is composed of the physical elements—the things we can touch and feel—that are necessary for the core product benefits to be experienced. In a hotel, this would be the bed, the quality of the mattress, the size of the room, etc. Finally, the extended product includes the intangible elements that can enable the customer to experience enhanced value or additional benefits. These include accessibility (location and hours), employee attentiveness and responsiveness, atmospherics (sensory elements such as sight in the design, sound in the style and volume of music, smell in the aroma of the facility, the taste including the flavor and texture of the food, and in the touch, the feel of the fabrics), as well as the reputation and after-sales services like billing.

This reminds me of my last stay while in Los Angeles at Sonder by Marriott Bonvoy. It was classified as an “aparthotel,” with characteristics of a hotel and an apartment. It was huge. It had two bathrooms, a kitchen, several other rooms that could be utilized as a den and a study room. The core product, or benefit, of this space of course was to sleep and spend time relaxing away from the convention. It allowed me to accomplish exactly those things of sleeping and relaxing.

The tangible products included the very large space, the California king bed, the dining room table, the kitchen and all the great amenities. I recall the pillows were not great, which I feel is typical among hotels.

As for the extended product, the fact that I could check in on my own with the keypad was very helpful. The atmospherics were interesting because of the historic building in which the aparthotel was situated: the visuals of the detailed walls and ceilings, the smell of the lobby, etc.

Discuss the advantages and disadvantages of standardizing the product offer for an international branded hospitality chain.



For domestic offerings, standardized products allow for the same menu, price, kitchen production process, service delivery process, recruitment, training and service, and the same signage and brand. For an international chain, standardizing could be considered a bit more challenging but might also offer some advantages as well.

The international hospitality product would consider the cultural differences, and macro-environment demands like political and environmental factors—things that aren’t controllable by the company. The text talks about the reality for most international hospitality groups being not a choice between total standardization, but the degree to which they would standardize to best suit the people they are catering to.

I believe some advantages of standardization are:

-Keeping brand identity the same

·-Maintaining brand loyalty among consumers

-Creating a connection among patrons with the same taste and flavors

Some disadvantages would be:

-Difficulty in offering certain meats that the local people would not eat

-Availability of product might be harder to access in certain regions

-Offering the same price point might be difficult to maintain

I recall eating at a McDonald’s restaurant in Paris and in Madrid. In Paris, the “Quarter Pounder” is called a “Royale.” The biggest difference was the fact that the overseas chain sold cans of beer. But the brand identity was extremely consistent in the look and feel of the restaurant, as well as the flavors (for example, the French fries tasted just like home).

Review Questions

Why is the location decision an important element of the marking mix?

According to Chapter 6, an appropriate location is important for managing a profitable company. Even good marketing can’t compensate for a poor location, and major brands do a lot of research to find the right location. The brand should be in a location that the consumer wants to go or can easily find.

What are the differences between single-site owners and multiple-unit hospitality operations when making location decision?

A single-site operator bears the responsibility of the costs of the location on their own. A multiple-unit hospitality operation can spread the cost among the participants. Multiple-unit hospitality operations can likely afford additional research of areas so that they can be successful.

Discuss the site selection criteria for locating a hospitality product.



There are many ways to determine location for a brand, including the type of city (capital city, provincial city), whether it is at a gateway location that’s convenient access points, a highway or resort, rural, or a “honey-pot” area itself is a destination. But the levels of spatial analysis include market selection based on geo-demographic and socio-economic characteristics, area analysis focusing on specific local areas within a region or country, and site evaluation that looks at the demographics of a place, traffic flow and attractiveness of a specific site.

Review Questions

Why is pricing significant in the pre-encounter hospitality marketing mix?

Pricing is a strategic component of the marketing mix. Price influences the demand for a product, which in turn determines sales volume and business income. There is a clear link between the price a customer pays and the customer’s quality expectations: the more the customer pays, the more they expect. The price point establishes perception of a brand in the marketplace. And while the price is the easiest to change, it might be complex in terms of setting the price and gauging customer demand.

Pricing seems significant in the pre-encounter marketing mix because you must entice customers to think the product or service is worth their hard-earned money, but it can’t be too high or too low. If it is too high, the customer might search for a better price elsewhere. If it’s too low, it could undermine the reputation of the product, service, or brand.

Evaluate the role of price promotions in the hospitality industry.

Price seems to be an indicator for the level of quality. High-priced restaurants and hotels that continually offer discounts could sow suspicion in the minds of customers that the quality may not be genuine. Price promotions need to be balanced between a number of different considerations, including reputation and profit margins. Sometimes, price promotions help bring in revenue during slower times—bars do this quite a bit. The promotion can also attract new customers, which is one of the goals. But it could also compromise the purchasing practices of loyal customers by offering cheaper products and services that they would have paid more for.

Discuss the pricing issues for a standardized international hotel brand.



Pricing issues for a standardized international brand may include the different currencies and exchange rates, operating costs in other parts of the world, vastly different competition that the hotel brand may not be accustomed to, inflation, etc. Standardizing the brand could prove more difficult in a global setting. People in different parts of the world might have varying levels of buying power. Lowering the price point for the “locals” may need to be a strategy while the company charges more for those coming in from other places.

Review Questions

Discuss the role of online and offline distribution from a hotel company’s perspective.

Consumers have access to instantaneous choices 24 hours a day, seven days a week, at home, in the office, and on the move. That forces hospitality companies with no other choice than to be present at different touchpoints, both online and offline. Some benefits include extensive customer reach through many different channels, convenient access wherever the customer is, and relevant information from trusted websites. Drawbacks include losing control of distribution as a key element of the marketing mix, lack of trust between intermediaries and the managers of hospitality units, and loss of margin paid to intermediaries in the form of commission. The competition for a principal’s product when there are many distributors make it intense. There are face-to-face interactions that happen with offline distributions and they are important. But there are also click-only distribution channels that happen online, and that is also important. More of the brick and mortar offline distribution is going online. It’s important to have both—some people thrive on face-to-face interactions either because of the type of person they are or perhaps the generation they come from. The same can be true for click-only online distribution. From a hotel company’s perspective, both may be just as important as the other.

Evaluate the relationship between hotel organizations and intermediaries.

It seems to be a complex one. Managers of hospitality organization know that the perishability factor is extremely important. A night unsold cannot be reclaimed. So the intermediary, through indirect distribution, becomes an important factor in selling the perishable product. The competition can also be stiff. Customers also use intermediaries aplenty because they are extremely convenient for the user. But there are many types of each, including tour operators, conference planners, and travel agents for the in-person intermediary. On the other side of the coin, there are search engines and other online-only avenues.

Who, if anyone, owns the customer—the hotel where the customer stays, the intermediary who makes the booking for the customer, both or neither?

The text describes the intermediaries at taking control of owning the customer because they have access to their protected information that takes place away from the hospitality organization. That means that the hotel managers do not own the customer, unless during the stay they are able to capture the customer attention enough to win a lifelong patron.

Review Questions

Evaluate the communication process from a hospitality company’s perspective.

When planning for communications, objectives have to be kept in mind. What are we trying to accomplish? Things like budget, target audience, approval of strategies, implementing the campaign and measuring the results are all important.

Communications objectives can be classified as “learn,” “feel”, and “do.” Marketing communication campaigns for smaller hospitality organizations can be short and tactical. For larger organizations, a long-term approach might be better suited. This will focus on more, such as the brand as a whole, and developing that to shape attitudes will go a long way toward other goals like sales and retaining employees.

As such, the goal of marketing communication is to move target markets toward purchase of the hospitality product. But that isn’t easy. There are many competing messages!

The process of communicating involves all the noise at the top, with the different components, including: the sender, the message, the medium or form of communicating, and finally the receiver. Then there is the feedback loop.

Noise: all the communications from other sources, including people and organizations, which compete for the target audience’s attention and interfere with reception of the sender’s message.

The message: the content that the sender communicates to the target audience.

The medium: the communications channel that senders use to communicate with the target audience. These include personal communications like sales visits and non-personal communications like websites, social media, and brochures.

Feedback: tells the sender whether the communication objectives have been achieved.

A framework called AIDS ensures that the marketing communication does move audiences toward purchase. AIDS stands for attention, interest, desire, action.

Discuss the hospitality marketing communication mix and explain the role of each tool.



The “mix” here includes things like print material, advertising, direct marketing, digital marketing, public relations, sponsorship, sales promotion and point-of-sale, and sales force.

Collateral includes a wide variety of hard copy print materials like stationery, brochures, promotional materials and provides critical information with different sorts of shelf life.

Advertising is any paid communication in traditional and online media owned by third parties. It reaches a large audience but the potential customers within the audience might be small. It’s like casting a large net in an ocean to catch fish. It can be expensive and hard to measure its effectiveness. However, the advertiser does have control over the message.

Direct marketing (DM) is any form of direct-to-consumer communication like a mailer, door drops, text messaging, and email. This aims to inform and persuade customers to respond to a particular offer. A benefit is that it cuts out the intermediaries and the commissions paid to them. This is a popular tool for smaller hospitality businesses.

Sponsorships are used in conjunction many times with PR to obtain publicity. This can fund major things like sports teams and other large events. Hospitality companies can provide money or complementary services as a sponsorship. The activities sponsored promote the name of the sponsor in return for publicity. This can also be a focus of a marketing campaign.

Public relations, or PR, aims to generate positive publicity for the company in the media. This is regarded as “earned” media or free, because it is not paid for. But the effort and creativity for such services is not necessarily cheap. PR is a profession and there are many such positions like this within hospitality companies. Many top leaders within the hospitality company may also be adept at building effective PR campaigns to promote their businesses. PR should ensure that the proposition or idea is consistent with the brand’s positioning and develop a concept that stimulates the media’s interest.

Digital marketing includes getting the message and marketing materials to people through their phones, tablets, smart watches and other portable devices through any number of digital means. Business leaders are able to proactively market through these channels to a growing audience of potential consumers.

Sales force is the focus in hospitality that includes face-to-face contact with potential clients. Since salespeople are expensive due to salaries and associated costs, some small operations do not use a salesperson to make the face-to-face contacts. But larger companies have more at stake and can make a lot of money for their organization. Face-to-face selling is appropriate when the product is complex or risky and needs detailed explanation, the product can be customized to suit the needs of the client, the value of the sale is high, the price is negotiable, the sales contact can influence or make the decision to book the business, the contact expects a visit, and competitors are likely to pitch for the same business.

Sales promotion is meant to stimulate short-term or immediate sales, especially with new product launches, during low periods, and at customer touchpoints. Design and pricing of a sales promotion must be carefully targeted, attractive to customers, properly costed, consistent, creative, and happen over a fixed period.

Point-of-sale material promote in-house products. Examples include coupons, leaflets, and menus. These are tangible pieces of material that attempts to cross-sell additional products while promoting the image of the business.

The menu is centerpiece to the restaurant experience and as such, one of the most critical tasks that a chef engages in. Bringing family traditions, work experiences, influence from mentors, and ethnic background to the table, a chef will create his or her menu signature. This signature includes all components of FLAVOR (taste, smell, texture, visual impact, sound, and context) as well as the business dynamics that drive restaurant success. 

Is it going to sell? Is it going to move? 

• The importance of effective menu design 
• Types of menus 
• Menu development team 
• Legal aspects of menu design 

• How to create a food menu 
• Identifying menu categories 
• Selecting individual menu items 
• Writing menu copy 
• Key factors in successful food menu design 

Beverage menus – creating beverage menu, digital display menus 

Menu means "detailed list" of French origin. A second definition refers to the ways available items are made known to guests. As an important marketing function, menus deliver the establishment's message of quality through creative, well-thought out and accurate listing of menu items. 

Menu planners' goal is to develop menus that consistently offer quality products and services to their guests. 

The menu as a marketing tool, it directly affects marketing, finances, operating success, service, guest satisfaction, word of mouth referrals, and establishment's image. 

Types of menus: 

-A la carte – A menu that lists and prices each item separately 

-Table d'hotel – A menu with pre-selected number of menu items offered for one fixed price 

-Cyclical – A menu in which items are offered on a cyclical basis. It is the frequency with which each specific menu is repeated. Army or Air Force bases do this, with a meal specifically for each day and in two weeks, it changes. 

-Du jour – A menu where items and prices change daily. A French term that means "of the day." It is based on the items the chef can buy for that day. 

BOH and FOH personnel... servers, bartenders, host(ess)es, server assistants, key employees and floor supervisors; line cooks, sous chefs, prep cooks, expediters, and other production staff; general managers, assistant managers, catering staff 

Legalities when designing a menu:
Menu designers must comply with accuracy in menu laws. They must truthfully represent items being served, including quantity, quality, price, dietary and nutritional claims, food preparation, preservation methods, points of origin, product identification, brand names. 

Development process: 

Four step process 

-Selecting menu categories 

-Selecting menu items for each category 

-Writing menu copy 

-Designing the menu 

One of the most important facts of menu design is attaining a good guest check average, PPA, per person average 

Sarah's bill is $39.50 

Edward's is $42.75 

Kailey's is $35.62 

Sam is $37.60 

Gilbert is $50.25 

Ashley is $29.75 

------------ 

$235.47 for the party of 6 

PPA divide by 6 = $39.25 

The per person average is $39.25 

The median is a better representation of these numbers, writing the price from lowest to highest, and finding the middle. In this case, there are 2. Add them, 37.60 + 39.50 = 77.10. That, divided by 2 is $38.55. This is a better representation of the PPA/average. 

29.75, $35.62, $37.60, $39.50, $42.75, $50.25 

Menu categories 

-Apps 

-Salads 

-Soups 

-Entrees – a hospitality ter for the main course of a meal. In British and Australian English, it's the main dish served during a meal, after the starter or appetizer. In American English the entrée is the starter itself, which can cause confusion in international dining. 

-Desserts- 

-Non-alcoholic beverage 

Libation menus and wine lists are typically separate. 

Regarding foodservice operations, is the menu one of the most important marketing tools? Why?

The menu is a powerful marketing tool that needs to be created professionally and in a way that complements the overall marketing message of the operation. The menu informs and influences the behavior of the guest to buy items that appear on it. It also communicates the brand instantly and is used to strengthen it, place value to the food and to the establishment, sets expectations, and influences profitability.

How many types of menus does the chapter describe? Elaborate on each one.

• A la carte – Menu items that can be ordered and paid for separately; items that are not part of a full menu. A side item or dessert could be ordered a la carte.
• Table d’hotel – French term meaning a menu of items offered at a fixed cost. The guest pays for ll the items ordered, including the appetizer, entrée and dessert.
• Cyclical – The cycle or frequency with which a specific menu is repeated. These menus are most often used in non-commercial foodservice operations like a college campus or senior citizens’ home. One week will be repeated in about six weeks or so.
• Du jour – French meaning of the day. A du jour menu changes daily.

Regarding menus, is "one size fits all" good for every foodservice operation? Why? Why not?

No, a one size fits all does not work because it needs to be tailored to the audience, concept, and goals of each operation. The menu is significant part of the brand identity of the restaurant. Menus represent the establishment and their capabilities. What may work in one kitchen may not work in another. That can be due to size limitations or the fact that one restaurant is quick service, and another is casual or fine dining. The menu will set the guest expectations and allow them to become familiar with the brand. Each brand is different.

According to the chapter, is it appropriate for just one individual to develop a menu? Why? Why not? 



A team most often develops the menu. No single person has sufficient knowledge of everything to produce an outstanding menu. The chef will have knowledge of the ingredients and foods that go well together, whereas other team members will have writing expertise and other marketing insight. Front-of-house team members will also be useful. Perspectives from the owner or manager, guests, purchasers who procure menu items, food and beverage production staff, are important in the menu development.

A defining characteristic of hospitality is the crucial role played by the employees during the service-encounter with customers. Customer contact employees create positive or negative impressions and deliver high or poor service quality. 

The server profit chain: 

High employee satisfaction > high employee retention/high employee productivity > High customer satisfaction > increased sales, higher customer loyalty, increased profitability 

Each hospitality organization has its own culture – culture, in this context, meaning shared values, beliefs and assumptions that underpin how the organization operates. These cultural components are often deeply rooted in the organization's founding, history and recent development. 

Support Systems 

In hospitality, there is often conflict between front-of-house employees and back-of-house employees, especially between the restaurant and kitchen. 

In a genuine service culture, all employees, should be customer focused. 

Internal marketing 

Human resources managers have adopted marketing approaches to recruit, communicate, motivate and retain employees – this is called internal marketing. 

Recruitment 

The image/reputation of the company as an employer is crucial in attracting appropriate employees. 

Reward systems: 

For employees include both tangible and intangible benefits. Tangible benefits are pay, bonuses, tips, meals provided free of charge and discounted accommodation for live-in employees. 

The perceived fairness of the distribution of the tips and/or service charge in hospitality businesses can be a controversial topic. 

During each and every contact between customers and employees, the customer's perception of service quality is challenged or reinforced – the importance of these contacts is accurately described in the expression "moments of truth." 

Sources of employee conflict 

Customer contact employees are confronted by. Both interpersonal and intra-organizational conflicts while working for hospitality organizations. 

Organizational/customer conflict refers to conflicts between customer requests and organizational policies, processes, and standard operating procedures. 

Personnel/role conflict 

Inter-customer conflict 

Service is important. You need to know how to talk to peers and guests. 

This is paragraph text. Click it or hit the Manage Text button to change the font, color, size, format, and more. To set up site-wide paragraph and title styles, go to Site Theme.

This is paragraph text. Click it or hit the Manage Text button to change the font, color, size, format, and more. To set up site-wide paragraph and title styles, go to Site Theme.