Boutique hotels are thought to have come to exist in the first 1980s. (Anhar, 2001) There is absolutely no single definition of a boutique hotel but most of the boutique hotels do talk about some common characteristics. The first, boutique hotels put more emphasis on design and architecture than traditional string hotels. (Anhar. L. 2001) Creating unique design with additional lifestyle amenities to be able make hotel guest feel 'something special' than others. For example each visitor room in Blakes Hotel in South Kensington, London was created by super star stylist Anouska Hempel. This sort of hotel is very specific and focuses on their 'look'. (Jones. P, 2002) The goal is to create a host with sense of style, warmth and distinction which they are willing to pay high quality room rates. Second, the common feature of boutique hotel is superior personal service. (Drayton. P & Rodwell. K, 2001) Providing personal service guide to hotel guests is importance to enhance guest experience alternatively than efficiency, to seriously be in touch with hotel guests alternatively than ignorance them when they faced to problem, to makes visitor with unforgettable stories will come again on next time rather than awful service that not gain again. The 3rd feature is the amount of rooms. The number of room should not surpass 150 rooms to keep up the intimacy between your guests and the hotel personnel, and the personal attention by the staff. (Anthar, 2001) However, there appears to be not upper limit on the utmost variety of room. The final common feature of boutique hotel is the mark market. The center to upper income group of individuals have a tendency to be marketplace of boutique hotel. In addition, the image of boutique hotel is major component for promoting through multimedia, fashion, entertainment and advertising companies that are attracted to the trendy design and lively atmosphere. (Jones Lang Lasalle record) literature
Location of the boutique hotel can be classified into two types. The first is the city destination hotels. Appropriately, most existing city boutique hotels are located in metropolitan edgy and chic neighbourhoods in major metropolitan areas like NY, London, San Francisco, and Miami. (Anhar, 2001) Nevertheless, more companies are concentrating on less cosmopolitan towns. Location of traditional hotels often looks for for convenience to their customer but for boutique hotel, they are often located in towns with big fashion capitals to best entice their target market. The second type of boutique hotel is found in generally well-hidden, tucked always in deserted corners of the island or the mountains. Each boutique hotel hotels promote the non-existence of gadgets and communication devices in guestrooms as a competitive gain. (Anhar, 2001)
1. 1 What are the operational issues associated with expanding new boutique hotels?
Small or big organizations often face variety operational challenges while operating their businesses. Business management needed to ensure the business running smoothly. You can find variety troubles associated with growing new boutique hotels are reviewed in the following.
Boutique hotel tend to serve their visitor with high degree of service quality which means better customer contact, the higher degree of connection between your service system and the customer. Service systems with high amount of customer contact are more challenging to control and rationalize somewhat than low amount of customer contact. In high-contact systems, the client can affect enough time of demand, the exact aspect of the service, and the quality, or recognized quality of service because the hotel guests get excited about the procedure. (Jacobs. R, Chase. R, 2008) This is reason why boutique hotel director should take into account upon this particular region of service design process. This is not easy as all customers are different and have different targets of what the service will provide.
Perhaps a boutique hotel visitor is waiting too much time to check-in at resulted she or he may not come again credited with the expectation on the speed of their service provided was disappointment. Hence, boutique hotel can offers several counters with different kind of function such as sign up check-in, check-out counter-top, and complaint counter to shorten enough time of waiting around by other friends.
As mentioned above, for boutique hotel the customer indeed is higher extent mixed up in genuine delivery of the service. The service employees by boutique hotel have frequently work together using their customer thus the behaviour if employees will probably have a major influence on the customer's identified degree of service quality. (Greasley. A, 2009) Unlike tangible products, technology can be replaced the labor force on certain careers however in services, it is difficult to replace the component of human relationship completely. (Greasley. A, 2009) For service industry, the service procedure for boutique hotel better 'forward office' tasks with the addition of value to their customer both type and outcome of the operation while 'back office' activity is smaller. (Amount 1. 1)) Insufficient skilled hotel staff can become a greater challenge that tends to provide superior service quality their guests. The scarcity of skilled employees will become risks to the boutique hotel offering poor service as contrary thought that friends expected to have great service. The whole image and reputation of boutique may ruined by those non-skilled hotel employees.
The hotel boutique employees are anticipated to learn their guests needs very well with caring, polite, friendly, and etc. A group of skilled employees owned or operated by boutique hotel is not great enough because assurance service quality is not a day objective. Hence, the administrator of boutique hotel must invest on a series of training program to be able to maintain the quality of the service provided by their employee especially front-line employees which connect to customer the majority of the time. Expect a boutique hotel employees will not know well about a possible client whose is vegetarians, but mailing meal with hen to the customer. This in the effect, the potential customer will feel very disappointed on the careless of service agency by particular boutique hotel. The client definitely switches to other make of boutique hotel and not to come back again when there is no a good service recover to solve the situation. Service is unlike product that can be easier to dispute back however in service industry especially with high service quality provided by boutique hotel, customers have a tendency to be correct most of the time.
Quality is a specific problem for boutique hotel in both the tangible and intangible aspects, including the quality of the meals served, the grade of the bed in the room and service of the staff must meet quality specifications to be able to keep customer. However, intangible service may be difficult to evaluate and often is determined by an unpredictable connection between the service provider and customer. (Greasley. A, 2009) The boutique employees cannot anticipate what another will be happen thus they need to get ready to resolve problem at anytime. However, there are three writers; Parasuraman, Zeithaml, and Berry (1985) establish the quality operating with five primary measurements that customers use to judge service quality which is Reliability, Responsiveness, Confidence, Empathy and Tangible based on an evaluation between anticipations and perceptions of the service quality.
Marketing strategy: For the medial side of marketing view of point on boutique hotel, the image is vital to enhance the quality of the 'hotel' itself to their target market. What exactly are so special about boutique hotel compare to other hotel string without paying high price of room rate? That is why Integrated Marketing Communication (IMC) gets engaged to interact to promote the brand and image of boutique hotel. A good service can't be successful minus the demand in market. To open a fresh boutique hotel in a market place definitely is very fresh on the particular 'brand'. Hence, branding may become one of the difficulties to a fresh boutique hotel. At that point, the new brands that were ill-conceived and lacking clear description and marketability in the end become the weaker performers that happen to be then often "absorbed" by the more robust ones. ( ISHC Annual Conference, 2007)Investing on brand proliferation to catch the attention of consumer interest toward the new boutique hotel. Marketing research effort should not be neglected by collecting information on favourable design of hotel room, service come across and etc. By doing marketing research better performance outcome to be able to meet customer needs.
Virtual advertising can be handy to let customer know more information about the boutique hotel. An addition, online booking hotel becomes more convenience to customer in the purchase operations. Something that can let customer choose the theme or design of the area that they prefer like the menu of cushion, kind of food to serve and etc. People connection is also a powerful tool to get useful general public opinion from the public.
Distribution channel renovation : In 2006, it is estimated that $24 billion value of hotel rooms in america alone will be booked through web sites representing 27% folks hotel industry room revenues --- up from $15. 5 billion just two years back. (INSH, 2007) In the meantime, this is current task of syndication management, manage and market to the buyer in the internet. Without understanding online consumer's buying behaviour, the possible investment on marketing will be squandered. Buying process changes swiftly nowadays with progress of technology device support. Interconnection between the company and their possible client is associated. Click and Mortar way can be employed in boutique hotel strategy to be able to serve the very best quality by using online or offline form of service provided.
Construction cost: To build up a new store hotel, cost definitely has to take into account because it involved a huge amount of money on constructing, furniture, tools and labour cost. The expense of raw materials for structure such as solid wood, steel, sand etc is grouped as considerably changes corresponding the demand of the world. For instance material prices experienced a 48. 8-percent upsurge in 2004, which was preceded by significant increases in scrap flat iron and material prices in 2002 and 2003. (INSH, 2007) By constantly monitoring changes in the market segments for both building materials and labor costs, a creator must ensure a job can be completed promptly within the budget.
Understanding their market:
Demand can affect the success on any sort of businesses. Thus, every company must understand their market very well before to get started on a business. Each boutique hotel rooms are designed to a theme. The business must identify which interior design of the area properly suits their marketplace. What interior design will be attractive for current market? What kind of services that matter? To make something unique for someone requires unique information. Culture issues have to take into consideration whether the sensitive culture design in term of icon or graphic does mind of individuals. Market research play importance role for understating their market needs not only in term of rooms design but as entire for boutique hotel.
Shortage of rooms: How big is boutique normally is commonly small and the amount of room usually less compare to traditional hotel chain to be able the hotel personnel provides superior service quality with their guests. Due to the small number of room, boutique hotel must concern issue on lack rooms especially in peak season. Boutique hotel should ensure there is enough capacity to meet demand at the right time.
Figure 1. 1: Entry Office and Rear Office in Businesses Management (Greasley. A, 2009 pg13. 14)
High Customer Contact
Low Customer Contact Back again Office Front Office
Customers
1. 2 What can we learn from the mass customization of tangible goods (e. g Lands' End and Dell) that may be applied to the mass customization of services (e. g. boutique hotels)?
Mass processes that produce high-volume and low variety products are termed line or mass procedures. Due to the high quantities of product it is cost-effective to use special labour and equipment. Due to the low variety, setting up of equipment is reduced and usage of equipment is high. Examples of mass process included auto plant, television stock, vehicle manufacturing, Dvd movie development and food operations. (Greasley, 2009 pg78)
Customisation processes is special custom-made to the necessity of the client with high variety but low volume level. This customisation steps can be applied on goods such as big size shoes, special design for wedding cake even though service on or services like facial treatment, cosmetic, and hair style that can meet individual needs. Customisation process usually takes time because to meet unique needs specialised and times to complete that required by individual. The target market is niche market with a little group of men and women with the similar needs.
However, the variety is very low for mass techniques, customer could not have much choices. Meanwhile, with the customization goods and services the value might be very costly because will not adopt monetary of scale which only produce on small quantity. It is difficult to meet specific needs with low priced. It could be either want to pay higher price to meet individual price or good deal but limited selection of choice.
Based on the statement above, the craze of the layout process modified to Mass customisation. What is mass customization? Regarding to Gilmore and Pine (1997) mass customisation serves as a "enabling a person to decide the precise specification of something or service, and have that service or product supplies to them at a cost near to that for an ordinary mass produced option. " Mass customisation is functions that combine the Mass and Customisation feature in a single which suggest high quantity and high variety at a comparatively. (Physique 1. 2) An attempt to combine high-variety and hiagh-volume output to supply the customer with customised products at a relatively good deal. (Greasley, 2009)
For example, Dell is the world's greatest volume company of computers yet allows each customer to 'design' (albeit in a limited sense) their own configuration. (Slack et al, 2007) Customer can select the standards feature of the computer that they needed before they make an order. Once Dell received the order, they will make custom-made computer requirement by the client and delivery to them within a fortnight. (Dell)
In 2001, Land's End has released mass customization to provide customers with order made-to-measure trousers and tops. Each and every product was created to order in a specially allocated factory. A considerable variety of design options and types are offered by the business. (Piller, 2007).
Low cost by technological application: Information technology (IT) and flexible processes allow a business to customize goods or services for specific customers in high quantities and at a relatively low priced. (Gilmore and Pine, 1997) Mass customisation is made possible by technological applications with realtively good deal. Technology has been extensively in a supporting role to enhance performance and success in hospitality industry. (McIntosh and Goeltiner, 1995). Mass customization on development can avoid creating inventories of finished stock. However, most of the service industry provide in both tangible and intangible goods. Operating industires which can be less dependant on human connections have been replacing by laborsaving technology techniques. For example, banks replace human tellers with automated teller machines, which can save labor costs and also offer 24 hour service year round. (Kaye Chon)
Long term romance between customer and dealer: Customisation demand copy their needs and desires into a concrete product standards. Co-design activities are performed within an function of company-to-customer connection and cooperation which may offer possibilities for building up a lasting romantic relationship (Piller. F, 2007) Furthermore, companies will create a close relationship with their suppliers, vendors and customers as they give back over and over to require further unique products. Normally customised products are hardly to obtain, once you will get a products or services that not correctly but it almost fix with your particular needs then you will return to the shop frequently when you need it.
For hospitality industry, high service quality is key factor to lock their do it again customer. Surprising service in term with their personal interest provided to the customer, they'll feel very wonder and get a good impression for creating a long-term relationship between an company and the customer. In another word of this procedure is transparently personalized for those customers who do not want to be bothered with immediate collaboration. For example, Ritz-Carlton uses software to individualize guest's experience by linking to repository filled up with quirks and choices of half of a million guests. The company uses it to tailor the service to each visitor on his/her next visit. (Canny Mok, 2000)
Value creation: Personalised and customised products and services will identify against commodity type products. (Piller. F, 2007) Albeit, there is wider range products or services which are similar in a market, but customised product by specific based on their needs will be more attractive in term of value to customer. Customer gain from customisation the increment of electricity of the good that better works with their needs than the best standard product attainable. (Piller. F, 2007) For instance Cupcake retail chain, you can customise the design in term of the color of the glass paper, the favourite of cake, and the topping you like. Each individual has their own 'design' for their cup cake even this is just a design however the value of the feel to getting different from others might be higher than the money. Another example Regent, Hong Kong is a fine eating restaurant, which stamping their customer's name in writing napkins and matchbox. Although personalizing a service in this manner is cosmetic, it is of value to many customers (Connie Mok ed al, 2000).
Able to be Versatile: To aid mass customisation, an agile supply network is needed. Agile operation has the ability to react quickly to changing market demand in order to retain current market s and gain new market talk about by developing the capability of resources. (Greasley, 2009) It must have the overall flexibility and the responsiveness for taking individual customers' order and deliver the finished customized good quickly (Jacob. F, 2008). In hospitality industry, mass customisation has to supported overall flexibility and speed goals to respond uncertainty in the market. For example, a flexible clinic can speedily transfer extra skilled staff and equipment to the Crash and Emergency office will provide the fast service which the patients from a street car accident. ( Slack ed al, 2007) Addition, flexible in 'changing over' in one to another can helps you to save time. To act in response successfully uncertainty on the market involving several working practice component such as autonomy, total people involvement, flexibility, and creativity on its staff for utilizing JIT.
Excellent sources and referrals: Mass customisation often capture do it again customer that willing to cover individuals custom made products or services. They would like to have products and services that can meet their particular needs. Companies want repeat customer to get business easily while accumulating good relationship among for a long-term strategy. Word-of-Mouth is a free powerful tool by their earlier experience customer to multiply either good or bad news about company's products or services with their friends. (----) This is why mass customisation trend to maintain a good romantic relationship by taking their potential customer' hobbies thus follow up currently. Usually mass customisation operating industry not only provides quality service but also deliver a memorable experience. (Fouts. R, 2007) Besides that, companies can focus on the pattern of buying behaviour by devoted customer thus improve the weakness on particular area.
Q3. How can boutique hotels maintain a regular standard level of service without diminishing their unique individualized service objective?
Service quality theory can be looked at from different perspectives from different kind of people. How can boutique hotels maintain a steady standard degree of service without compromising their unique/unique service quest for an array of customer? Certainly, there is absolutely no easy way to maintain a standard degree of service. There are many methodologies for quality improvement. Different organizations may choose to focus on different facets of quality however understanding needs of customer is important in identifying a quality strategy. (Andrew Greasley) Retaining a regular standard level of service can also maintain customer for a long term period. Once customers are happy with the nice services, they are prepared to pay premium demand so you can get good services over and over.
A SERVQUAL model originated by Parasuraman, Zeithaml and Berry in 12 months of 1985 predicated on principle that level of service quality is the difference between identified service and the customer's prospects in term of five proportions: Trustworthiness, Responsiveness, Guarantee, Empathy and Tangibles(Greasley, 2009 pg468). The amount of service quality is the difference between perceived quality of the product and service provided by boutique hotel and the boutique hotel guest's expectation. The 'service quality gap' may be used to identify for improvement operating quality. For instance service quality gap arise when employees do not have the skills to resolve their guest's problem therefore management strategy should provide training program to particular employees. SERVQUAL model contains five service delivery spaces - knowledge distance, delivery gap, standard gap, communication gap and closing gap. Everything must be right by choosing the right strategy, get right people of doing right things, receive the processes right and lastly get the goals right. SERVQUAL can be utilized either to observe service quality for a long-term period or by coordinating a multisite review to recognize poor-performing units in order to boost and serve their visitor for better services. (Anon, -)
According to Prideaux B, Moscardo G, and Laws E (2006) claims analyse the concept between quality and consumer satisfaction in the service industry are made up two important elements are importance performance analysis (IPA) and service quality (SERVQUAL). The benefit for using IPA is to recognize areas for service quality for improvements in order to help procedure manage prioritize performance aims. The results are displayed on the graph and by a simple visual analysis of this matrix, story the raking where in fact the resources and programs have to be concentrated or taken away. This model has been spread into various areas such as health care market (Cunnigham and Gaeth, 1989), hotel industry (Bush and Ortinau, 1986; Martin, 1995), tourism coverage (Evans and Chon, 1990) and banking service (Ennew et al, 1993). Strategy management can't be segregated from how resources and functions are manage at a detailed and day-to-day level (Slack and Lewis, 2008). Hence, performance measurement practice is useful to avoid poor performance to goes further worst in order to adopt pro-active solution alternatively than re-active as result to provide service quality standard to their customers.
Total Quality Management (TQM) is a set of management practices throughout the business ensure organization constantly meets or exceeds customer requirements. (Anon, 2010) Reaching the delivery of quality products and services are not simple therefore top management should act as innovator for TQM to produce an environment to the complete company that ensures its success. For boutique hotel, TQM places as a center point by concentrating commitment to ongoing improvement of techniques, products and services. An addition, a series of training curriculum should be provided regularly with the concepts of quality for the employees to be able to maintain a standard degree of service quality service provider to their friends. In addition, it adopts a strategy of empowerment which employees receive more autonomy and responsibility in decision making because service delivery may necessitate a reply differ each and every time it is performed. Boutique hotel ensure their employees practice the TQM principle with teamwork building value and understanding their customer's satisfaction because of this of meeting customer needs more exactly. The aim of TQM not only ensures the client needs are meet up but also reduce the cost of immediate and indirect costs of quality problems such as dealing with customer's settlement, handling of returned items, and cost of correction material.
Quality confidence is not easy to provide goods and services that meet customer requirements. There are various methods for handling quality but does not suggest all methods that can produce good final result by the end. For some organization they could design own quality control system that fix with the requirements and it can really work. For example The Ritz-Carlton Gold Standards of service in a position to assess their work through appropriate sensory way of measuring and take appropriate activities through three types of control operations to deliver quality services. First, self-control of specific employees predicated on their spontaneous and discovered behavior. Second, used a simple control mechanism carried out by every person in the workforce. Third, process groups to determine customer-satisfaction data which dependence on corrective action and source of information allocation. (Raturi and Evans, 2005, pg189) Developing an own quality control system for boutique hotel may become more reliable or discussing other organizations with successful in quality control system as standard.
Six Sigma is an improvement procedure that will get and eliminate factors behind defects and problems in processing and service operations for organizations. The main purpose of Six Sigma is to provide high performance, value and stability to the customer (Anon, 2010). You will find two key methodologies contained in Six Sigma: DMAIC for existing process while DMADV is utilized when creating a fresh product or product. Boutique hotel can utilize DMAIC five stages: (1) D-Define: identify customers needs what priorities the most effect on quality that they concern. (2)M-Measure: collect relevant data and use it to gauge the performance and satisfaction level from the hotel guests (3) A-Analyze: determine factors the most likely causes of problems on the issues (4) I-Improve: confirm the key causes either to modify or take it off to make adjustment operating restoration (5) C-Control: use pilot run to ensure that new process within control avoiding loss of quality. Many companies have implemented Six Sigma for quality improvement such as Standard Electric expected to save $7 billion to $10 billion over ten years (-15--), Citigroup reduced inner callbacks by 80 percent(16, 181) and Samsung Consumer electronics reduction in problems of 50 percent. (17--) For most business, the Six Sigma strategy has helped them be competitive benefit and lower the expenses.
Moment-of-truth Evaluation is the id of the critical instances when a person judges service quality and establishes the experience enhances, standard objectives and experience detractors. (Finch, 2006 pg234) Customer earlier experience pays to for hotel boutique management to determine the quality that their visitor possessed received. Experience enhancer is the experience that can make the client feel happy and good relationship with an organization. Standard expectation is merely normal sense that customer expect to get it usually. Experience detractors indicate a decrease in the quality of service received by the client. Boutique hotel can accumulate all data from the enhancer, detractors and standard expectations for any service encounters to go through an analysis method work in order to make improvement in process, employee training and decrease the range of detractors by adding value and enhancers.
How the hotel boutique to choose from the various ways of quality control? The solution shouldn't be an either decision. It can should any combination of quality control methods that meets its requirements with sufficient resources are needed.
Conclusion
Boutique Hotel is one example of mass customization that offers high level and high variety of services to their guests. Producing new boutique hotels will face a whole lot of obstacles such as insufficient resources, market, quality control, and design of service processes. However, mass customization is a fresh pattern of market in nowadays. People is looking something is unique, special from others, they are willing to pay premium demand for getting it. Handling quality of service to anyone of boutique hotel is a major challenge since it is not easy. Hence, quality control and performance improvement are fundamental elements to boutique hotel to practice in order can provide the best for his or her customer. Quality control system has to develop in virtually any firm to ensure standards quality will be preserved. Once customers satisfied the services, they will stay longer with the business. Retaining customer interactions is importance in nowadays which can increase earnings and minimizing costs. The effects of word-of-mouth communication as a result of improving income to the company. An addition, romance between the customers and the business can become nearer once customers feel happy in their past experience.
