A Framework for the Establishment of an Optimal Service Quality Level in a Hospitality Operational Setting

Abstract

The hospitality industry is a customer-driven, peopleoriented business. As such, the customer is the cornerstone of the service delivery system. Decisionmakers, in managing hospitality service delivery systems, are thus facing a managerial dilemma. On one hand, they want to satisfy customers' demands in the form of improved quality service that ensures a customer orientation. Yet, they are under increasing pressure to ensure operational efficiency. This article offers a step forward toward resolving this dilemma by addressing this apparent conflict. A framework is presented that facilitates the implementation of a new approach to determining the optimal cost of service quality. The proposed approach integrates the operational and strategic views of optimal service quality with root cause analysis (RCA) in search of the optimal service quality level. Finally, guidelines for implementing this integrative approach are provided.