The Ritz Carlton - Service Quality Essay

1948 Words Dec 5th, 2011 8 Pages
Company case 13: The Ritz

The Ritz Carlton features luxury hotels and five-star resorts worldwide: from America to the Middle East, and from Europe to Asia. With an unshakeable credo and a corporate philosophy of an unwavering commitment to service, the hotel has won countless rewards and has been recognized with numerous awards for being the gold standard of hospitality.

QUESTION 1: Most people see a Ritz Carlton hotel as a swanky building on a prime site, such as London’s Picadilly, but is the structure the essence of the hotel chain’s success?

Whereas a product marketer works with tangible products: things that can be tasted, heard and seen in advance – a service marketer does not. As is clear of the manual (Kotler P,
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Second, knowing how to do something well and being motivated to do it are different things. Ritz Carlton recognises and rewards employees who perform feats of outstanding service. Outstanding performers are nominated by peers and managers, and winners receive plaques at dinners celebrating their achievements. For on the spot recognition, managers award Gold Standard Coupons, redeemable for items in the gift shop and free weekend staus in the hotel. The Ritz Carlton further rewards and motivates its employees with events such as Super Sports Day, an employee talent show, lunches celebrating employee anniversaries, a family picnic, and special themes in employee dining rooms.
Succesful service companies focus their attention on both their customers and their employees. They understand the service-profit chain: satisfied employees deliver high service quality, which then creates satisfied customers. Satisfied customers, in turn, create sales and profits for the company.
As a result, Ritz Carlton’s employees appear to be just as satisfied as its customers are. Employee turnover is less than 30 percent a year, compared with 45 percent at other luxury hotels.

QUESTION 3: Even the Ritz does not charge €2000 to stay, so how can the company justify allowing employees to spend up to €2000 to redress a guest grievance?

With their costs rising

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