The hospitality industry is highly service-oriented with a low degree of tangibility. Almost all of the operations concerning a hotel or restaurant involve human interaction in the form of employee customer communication and interaction. Moreover the customer has to use the services and products provided by the hotel or restaurant at the place and cannot be taken home. Due to the lack of a tangible product which is offered by the hotel or restaurant, the analyses of satisfaction of the customer needs to be based on the service provided by the hotel or restaurant. The quality of service is associated with the feeling developed in the minds of the customer based on the product of the service and whether the expectations of the customer have been met. Moreover the hotels and restaurant highly value repeat customers which can only be developed based on customer satisfaction. McDonald's is a fast food restaurant chain which operates a low cost model, with the unique selling proposition of offering quality and cost effective food to the customers who does not care for service from the employees. But even for McDonald's, customer satisfaction is not only a consequence of the quality of the food provided but also of the minimum level of service expectations. McDonald's also has to maintain some form of interaction and service to the customers so that they come back. It is necessary to evaluate the customer satisfaction (based on the service provided by the employees) and not the product.
Hospitality and tourism strategic planning -business plan for market entry into India for Premier Inn brand of hotels. The report is a business strategy development report for Premier Inn group of hotels under Whitbread Plc. to enter the Indian market. The background of Whitbread Plc. and the various brands under it has been evaluated in the initial sections of the report along with the potential growth opportunities in the United Kingdom, the reasons for analysing the potential in foreign market conditions and certain financial highlights which indicates that in there is a level of saturation in the United Kingdom market limiting the potential for the development of Premier Inn brand. Further in the report, the business strategy of Premier Inn is evaluated in consonance with a review of different options in international market entry along with the potential opportunities in the Indian market. The different options and feasibility studies conducted are with respect to a 100% direct investment, a strategic alliance and a franchising model which is evaluated as the different potential strategies to enter the Indian market. The pros and cons in terms of risk and advantages of positioning and targeting are evaluated and mainly the concept relating to a standardised branded and chain hotel and its potential opportunities are summarised.
Outsourcing services in the hotel is not a new concept and working with the suppliers has developed efficiencies, reduced the cost base and improved performance of hotels. Several studies have identified different perspectives of outsourcing and the overall industry experience is that outsourcing of certain services which are not value adding processes can contribute to increased efficiencies. Based on purely the value added concept and the core competency model, small and large scale independent hotels located at far off, out of town or unpopulated areas can have different type of core competencies than those hotels located in cities and those which have branded restaurants. The focus of the present report is to evaluate the concept of outsourcing and specifically analyse the aspects of outsourcing of the food and beverages operations or restaurants in independent hotels. It has been concluded that most of the outsourcing decisions are based on financial considerations and for a hotel who is depending on their guests alone as the customers for the food and beverage operations may find it financially viable to outsource such operations to a service provider who are able to bring in the efficiencies and performance, due to the fact that such service providers can concentrate on providing food and beverage services to more than one organisation. This can reduce the cost base of the hotel and provide it with an ability to concentrate on the core competencies and the specific value adding processes.