Omis 442 - Ritz Carlton Case Study

Doug Vernon

Z1698170        

OMIS 442

10/14/2017

Case #7: Ritz-Carlton Case

1. The Ritz-Carlton Hotel Company was the first hospitality organization to receive the Malcolm Baldrige National Quality Award.  In 1999, they became the second company to win the award a second time, a testament to their continuous journal towards process and quality improvement.  Evaluate the five dimensions of service quality at the Ritz-Carlton and provide an example of each within the hotel industry.  How might a hotel like Ritz-Carlton focus on each of the five dimensions of service quality to enhance the customer service experience?

Reliability: Ritz hotel is reliable because they have an excellent representation for customer service, and top of the line employees that live up to the gold standard at all times.  Ritz-Carlton enjoy a superb reputation for over its 100 international hotels and has an employee turnover rate in the teens in an industry where the turnover rate averages 40-60%.

Responsiveness: Ritz hotel has an excellent representation for customer service.  They train their employees for 250 hours in the first year, stressing importance of supporting employees in their new roles, and make sure they learn them.  Employees very quickly to respond to customers and give positive feedback.  

Assurance: Ritz-Carlton creates a memorable experience for their customers and customers are very satisfied and trust the Hotel.  Employees are empowered to solve problems and make decisions that will result in extraordinary customer service.  

Empathy: They put the customer first no matter what, they care about their customers and always make sure that they have a memorable experience staying at the hotel.  They check in on customers and spend up to $2,000 per guest per day to enhance the guest experience or afford immediate problem resolution.  They try to “wow” their guests.  

Tangibles: They provide a hotel service, which isn’t tangible.  Employees do treat guests as good as they possibly can, but there is nothing tangible.  If the right opportunity approaches, they could open a gift shop or something to get a tangible asset to sell to the customer, which would enhance the overall customer service experience.  

1. The Ritz-Carlton operates from an easy-to-understand definition of service quality that is aggressively communicated and internalized at all levels of the organization through what they call the “Gold Standards.”  Explain the Ritz-Carlton three steps of service, motto, credo, service values, and employee promise that collectively make up the Gold Standards.  

• Ritz-Carlton’s three steps of service are

1. A warm and sincere greeting
2. Use the guest’s name.  Anticipation and fulfillment of each guest’s needs.  
3. Fond Farewell.  Give a warm good-bye and use the guest’s name.  

• Credo: The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is our highest mission.  We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambience.  The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.
• Motto: At The Ritz-Carlton Hotel Company, L.L.C., "We are Ladies and Gentlemen serving Ladies and Gentlemen." This motto exemplifies the anticipatory service provided by all staff members.
• Employee Promise: At The Ritz-Carlton, our Ladies and Gentlemen are the most important resource in our service commitment to our guests.  By applying the principles of trust, honesty, respect, integrity and commitment, we nurture and maximize talent to the benefit of each individual and the company.  The Ritz-Carlton fosters a work environment where diversity is valued, quality of life is enhanced, individual aspirations are fulfilled, and The Ritz-Carlton Mystique is strengthened.
• Service Values: I am proud to be Ritz-Carlton

1. I build strong relationships and create Ritz-Carlton guests for life.
2. I am always responsive to the expressed and unexpressed wishes and needs of our guests.
3. I am empowered to create unique, memorable and personal experiences for our guests.
4. I understand my role in achieving the Key Success Factors, embracing Community Footprints and creating The Ritz-Carlton Mystique.
5. I continuously seek opportunities to innovate and improve The Ritz-Carlton experience.
6. I own and immediately resolve guest problems.
7. I create a work environment of teamwork and lateral service so that the needs of our guests and each other are met.
8. I have the opportunity to continuously learn and grow.
9. I am involved in the planning of the work that affects me.
10. I am proud of my professional appearance, language and behavior.
11. I protect the privacy and security of our guests, my fellow employees and the company's confidential information and assets.
12. I am responsible for uncompromising levels of cleanliness and creating a safe and accident-free environment.

1. What value does a focus on the Gold Standard have for the Ritz-Carlton?

The Gold Standard provides Ritz-Carlton lots of value.  By them empowering their employees and only hiring the best employees, that create the best possible experience for customers, will get their customers to keep coming back to stay at their hotel, providing giant value to Ritz-Carlton, generating more profits and a better company name overall.