Service management

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PeninsulaHong Kong is a major hospitality facility in Hong Kong. The hotel isowned by Hong Kong Shanghai Hotels Ltd, which owns a chain of hotelsin Asia, Europe and United States. The hotel has unmatched quality ofservices, excellent human relations and employee welfares, deluxecomfort rooms, which is entrenched in the group mission and vision.Managing people is an important aspect of service management atPeninsula Hong Kong. The hotel has adopted a human resource policyand structures that promotes employees welfare. These includetraining and development, health and safety. Service quality isanother service management that is significant in Peninsula Hong Kongoperation. To improve service quality, Peninsula Hong Kong hasadequately trained and enough staff as well as adopted moderntechnologies. Additionally, the hotel has adopted various strategiesaimed at enhancing relationship between the hotel and its clients,and improving customer satisfaction.

Introductionand overview

PeninsulaHong Kong is one of the flagship properties owned by the PeninsulaHotels and a subsidiary of Hong Kong Shanghai Hotels Ltd. The companyowned and manages several prestigious hotels in Asia, Europe and theUnited States. Although their main business is in the hospitalityindustry, the company also owned commercial and residentialproperties in different parts of the world, mainly the Asiancontinent and the United States. Peninsula Hong Kong is the oldesthotel in the brand, and therefore has some historical significance.The hotel was opened in 1928 under the brand name Peninsula andmajority of the share were held by the Kadoorie family (The PeninsulaHotels, 2015). Their descendants are key figures in the management ofthe modern hotel, which has been remodeled to meet modern standards.Peninsula Hong Kong and other hotels under the brand name areconsidered to be some of the best luxury hotels in the region. Thehotels are renowned for their unmatched quality of services,excellent human relations and employee welfares, deluxe comfortrooms. The excellent service delivery in the Peninsula Hong Kong isbased in the vision and mission adopted by the hotel mission of thehotel is to “set the sights high, standards high and always aim todelight their customers”. This mission has been critical inpromotion service quality not only at Peninsula Hong Kong, but otherPeninsula hotels in different parts of the world. In the companyvision, Peninsula Hong Kong seeks to maintain a unique identity whichwill make it one of the leading hotel prestigious hotels in the world(The Peninsula Hotels, 2015). is critical in thesuccess of Peninsula Hong Kong operations. It plays an important rolein ensuring that Peninsula Hong Kong remains committed to world classservice to its customers by enhancing customer satisfaction. Thispaper looks at the significant of service marketing concepts inPeninsula Hong Kong. These concepts include managing people, servicequality and relationship marketing.


Oneof the most important aspects of service management is the fact thatthe service cannot be separated from the service provider and thecustomer. The service provider through appropriate personnel isphysically connected to the service. Additionally, the service cannotbe separated from the client, meaning that the customer is involvedin the production process. Thus, managing people is one of the mostimportant aspects of service management. This is because employeesare the first contact when a consumer visits an organization. Therole of personnel in the service management is complex and extremelyimportant. For example, when a visitor visits Peninsula Hong Kong forthe first time, he or she interacts with several of the hotelsemployees. Monitoring all aspects of the customer personnel iscritical. However, it has an overall influence on the quality ofservice received by the client (Boxhall,P. and Purcell, 2003).The employee in direct contact with the customer is represent theface of the hotel and defines how the contact between the customerand the hotel. Although it is more applicable in the commoditymarket, Peninsula Hong Kong has increased its competitiveness in themarket by differentiation of services at the point of contact betweenthe customer and the employee. It is important to note that customersare likely to view the hotel employees as an aspect of the servicethey receive while in the facility. This includes the ability andwillingness of the employee to offer the required servicessatisfactory and the employee appearance. This factors influence theperceived quality of service and how the client is satisfied with theencounter (Hoffmanet al, 2009).

Thehuman resources management structures and policy has a huge influenceon the organization culture and workplace climate. This plays animportant role in the service industry. For example, an organizationthat seeks to prosper in the service industry should cultivate thepassion for service and individual ownership of the process. Thisrequires that the organization need to invest in the employees aswell as other facilities that support human resources (Hoffmanet al, 2009).For example, technology should support human resources rather thanreplacing them. For example, a well facilitated driver with be ableto provide excellent services to a customer. A cleaner in a hotel isable to do his job more effectively if he is provided with all theessential cleaning materials.

Dueto the significance of managing people in service management atPeninsula Hong Kong, the employees’ welfare is one of the mostimportant aspects of the hotel social corporate responsibility. Thisis not important to the Peninsula Hong Kong, but all the hotels inthe Peninsula brand name. This is based on the philosophy that if thefacility serves its employees well, they will serve the clientsbetter. Thus, the Peninsula group of hotels put a lot of effort inpersonnel development through training and professional developmentas well as taking care of their wellbeing. Peninsula Hong Kongrecognizes the importance of a more educated staff equipped withmodern and emerging trends in the hospitality industry. For example,in the “cross exposure program” Peninsula Hong Kong staff andother staffs from the group of hotels are able to access an extensivein-service training offered by the hotel. The program providesmotivation to employees since the best performers are selected toparticipate in the program. Due to the reputation of Peninsula HongKong, employees from other Peninsula hotels are sent to Hong Kong fortraining. This plays an important role in entrenching a strong andservice oriented organizational culture (The Hong Kong and ShanghaiHotels Ltd, 2007).

Anotherimportant aspect of service management in Peninsula Hong Kong thatrelates to managing people is occupation health and safety. There arenumerous occupational risks that employees are exposed to in thehotel industry. Peninsula Hong Kong has established health and safetypolicies and practices under the responsibility of well trained andexperienced safety officer. The most risky aspect of customerservice in Peninsula Hong Kong facilities is serving alcoholicbeverages. This is due to the likelihood of clients becoming violentor misbehaving resulting into employees’ injuries. Othersignificant occupation hazards and risks are found in the kitchen andtransport department. Peninsula Hong Kong has a continuous program totrain its employees of responsible service, self defense, emergencyresponse and risk assessment. Peninsula Hong Kong also provides awide range of health care initiatives that are aimed at promoting thehealth status of the employees. These include medical allowance,health talks, sick leaves and home visits for sick workers (The HongKong and Shanghai Hotels Ltd, 2007).


Servicequality is essential in service management excellence. The success ofPeninsula Hong Kong is dependent on its ability to enhance itsquality of services. Service quality provides Peninsula Hong Kongwith a reference point for the organization to have a dialogue withinternal and external stakeholders. Thus, it has a direct and radicalimpact on the organizational performance. This is because animprovement in quality results into increased revenue and reducedcost of operations. Through service quality, Peninsula Hong Kong willput more emphasis on quality and thus achieve better sales, betterprices and efficiency in production. On the other hand, substandardquality can be very costly. Poor service quality increases thelikelihood of the organization losing customers. This is veryimportant in the service industry because it is more costly to gain anew customer compared to retaining an existing customer.Additionally, it is inappropriate to spend more time responding toissues raised by customers due to quality issues that can be avoided(Sureshchandar et al, 2002).

Fromthe operation’s view, quality refers to conformance with theexpectations of the customer. According to Slack et al (2007, 539),quality “demands that materials, facilities, and process have beendesigned and then controlled to ensure that the product or serviceconsistently meet an explicit specification using a set measurableproduct or service characteristic”. However, it is important tonote that individual customers may have different expectation. Thismeans that organizations that seek to ensure they provide the bestservices to their customers should focus on customer satisfaction.This refers to comparison between the perceptions of the customerabout the delivery of services and the prior expectation. A customeris satisfied if his or her expectations are met in the delivery ofservices. Customer satisfaction or service quality is not absolute. Customer satisfaction and quality improvement is a continuous process(Johnstonand Clark, 2005).Total quality management is considered to the most appropriateapproach to enhancing quality and customer satisfaction in bothservice and commodity market. The two key fundamentals of totalquality management include customer focus and total involvement. TQMapproach to quality service is centered on the customer, whichtranslates into a focus on the expectation of the customer with anaim of maintaining existing customers while capturing new ones. Italso focuses on the culture of getting everyone in the organizationget involved in quality improvement (Morfaw, 2009).

ThePeninsula Hotels is one of the most important hotels in Hong Kongservice industry. It has huge social and economic significance. Dueto its historical significance and quality of services in itsfacilities, Peninsula Hong Kong is a leading destination in the city.The hotel targets both business guest and leisure visitors, with anenhanced focus of establish customer loyalty through qualityservices. In addition to Peninsula Hong Kong, the hotel operatesother luxurious facilities in other parts of the world. The hotel hasadopted the most sophisticated technologies in the service industryin order to assure the client world class services (The PeninsulaHotels, 2015). Service quality at Peninsula Hong Kong is aimed atproviding customers with convenient as well as memorable experience.The hotel has implemented modern room technologies to enhancecomfort, entertainment and communication. The state of art roomtechnologies includes entertainment systems, elegance room decors andseamless communication systems. For example, the hotel has installedseamless communication system that stores guest information includingchecks in and out as well as workflow alerts. This ensures that guestreceive the services they require at the right time (Roberts, 2007).Other technologies include personalized customer services support, onsite messaging and off site messaging. These technologies haveresulted into more efficient staff and integration of the servicequality management. The impeccable and unique meeting venues andconference centers as well as suites in the hotels ensure thatvisitors in the hotel have a unique experience. The rooms and meetingrooms have natural daylights and other complimentary services such asbeing self contained and reliable audio visual equipments andinternet facilities. Other important aspects of the hotel thatguarantee quality service include an enhanced safety and absoluteprivacy. The most important aspect of the hotel which guaranteesservice quality is the ratio of staff to guest. This ensures that thestaff is enough to serve the needs of the customers (The PeninsulaHotels, 2015). Consequently, the hotels enjoy increased customersatisfaction.

Relationshipmarketing and customer satisfaction

Retainingthe existing customers is the foundation of a marketing strategy inany organization. This is because retaining the existing customers ismore sustainable and promotes profitability, when compared to seekingnew customers. Relationship marketing in service management isdependent on identification of valuable customers, targeting them,communication with them and rewarding them. The main rationale ofrelationship marketing is to create customer engagement. Theinteractions between a customer and the business are aimed atincreasing customer satisfaction, rather than attracting newcustomers. Although seeking new customer is a critical aspect ofmarketing, relationship marketing maximizes on the return oninvestment (Hoffmanet al, 2009).Peninsula Hong Kong can use financial incentives such as loyaltycards, social engagement which involves services beyond the corebusiness, customization of services based on past experiences withthe customer and structural changes to accommodate customer needs inthe hotel systems. For example, a corporate customer who seeks theservices of Peninsula Hong Kong can access customized services or thehotel can change its structures to accommodate the needs of thecustomer. This increases customer satisfaction and reduce customercomplains (Heung, 2008). Peninsula Hong Kong puts into considerationthe importance of repeat guests in its business model. For example,the hotel conducts data mining and maintains a client data base toensure that the employees are able to identify the special servicesthat makes a particular group of clients more comfortable. Forexample, Peninsula Hong Kong is one of the few hotels that havecustomized car fleets. An important aspect of relationship marketingat Peninsula Hong Kong is the state of art technology basedcommunication system that allows seamless communication betweencustomers and guests (The Peninsula Hotels, 2015).


PeninsulaHong Kong is one of the most important players in Hong Kong hotelindustry. Arguably, the significant success of the hotel over theyears can be attributed to good service management initiativesadopted by the organizations. Peninsula Hong Kong, together withother facilities in the Peninsula group of hotels has adopted a humanresources strategy that promotes proper people management. The hotelidentifies human resources as the most important resource in theorganization. Additionally, service quality is very significant inPeninsula Hong Kong operations which have a significant influence oncustomer satisfaction. There are several measures that have beenadopted by the hotel to enhance the service quality, which includesthe use of technology and adequate staff to guest ratios. In anybusiness organization, retaining current customers is better thatseeking new customers. Peninsula Hong Kong has adequate strategies ofthat are aimed at promoting the relationship between the hotel andorganization. Nonetheless, the hotel industry is very competitive andchanging rapidly. at Peninsula Hong Kong wouldrequire adopting of emerging trends and technologies in the industryto remain competitive in the dynamic market.


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