Background of the company
The research will be made in the report is based on a hospitality based organization which operates in the industry. The main aim of the report is analyse the ways by which different factors like hospitality, people and cultures are able to affect the operations of the tourist organizations. The major objective of the report is to analyse the results and key elements which are able to affect the ways by which the hospitality company is able to operate. The element which has been chosen for the analysis is people or the employees who are a part of the hospitality organization. The hospitality organization that has been taken into consideration for this report is Ritz Carlton (Dzhandzhugazova et al., 2016).
The Ritz Carlton Hotel Company, LLC is a hotel and hospitality based organization which has its operations in many areas of the world. The organization operates more than 91 luxury hotels in around 30 countries. The company was established in the year 1983. The brand was thereby expanded in many other locations of the world with the help of different hotels which operated under the Group. The different parts of the world where Ritz Carlton has its operations include, North America, Europe, Asia. The Group has been operating the hotels under the five-star category and has provided effective services to the customers as well. The company is mainly known in the industry for its efficient customer services (Luxury Hotels & Resorts | The Ritz-Carlton 2018).
The employees are able to play an significant part in the ways by which organizations are able to provide highest levels of services to the customers. The hospitality industry and its operations are totally based on the employees and their service levels. The employees in this case play a major role in the services which are offered to the customers in an effective manner. The clients or guests of the hospitality based organizations are thereby a significant part of operations of these companies. The basic functions related to the business are performed with proper assistance of the employees (Fraj, Matute & Melero, 2015). The employees who are a part of different departments of the organizations mainly include, front-desk based employees, porters and vendors, management structure. The report will be mainly based on the analysis of an important factor of the hospitality based organization, which is considered to be the people or employees.
The employees play a major role in the functions that are performed by the company in the hospitality industry. Ritz Carlton is an organization which has been able to acquire the topmost position in the people based metrics. The company has acquired a major position in the Most Engaged Customers study. The MEC study which was conducted in the year 2010 has depicted that more than 70% of the total number of customers of the company are engaged (Jauhari & Bharwani, 2017).
The customers have been able to depict high levels of loyalty, advocacy, passion and effort for the organization. The study that has been done for the People based metrics of the company is mainly based on the responses which have been provided by around 5000 customers from all over the world. The hotels and hospitality based organizations which operate under the Ritz Carlton Group are able to engage the customers in an effective manner. Ritz Carlton has introduced a loyalty card named Credo which has been able to many different facilities to the customers (Jones, Hillier & Comfort, 2016). The most four most important factors that are an important part of the loyalty based card mainly include the following,
- The offer – The customers need to be attracted towards the organization before compelling offers are provided to them. The luxurious experience which is offered to the customers is a major part of the customer engagement based activities of the company.
- The second step that will be taken by the company in order to engage the consumers is care. The levels of care that will be showed by the organization towards the customers will be depicted in this step (Kandampully, Zhang & Bilgihan, 2015).
- The third step of this loyalty based process is consistency. The offers and care which is taken by the organization will not be able to guarantee the loyalty of customers for a longer term. The consistency of services and offers is thereby a part of this step (Wang, Tsai & Tsai, 2014).
- The fourth step which is the most important part of the loyalty based process is trust. The levels of trust which has been created by the organization is the ways by which the loyalty levels can be increased in an effective manner. The study of customers will thereby play a significant role in the operating based processes of the company in the hospitality industry (Kim, Vogt & Knutson, 2015).
- The fifth step which is a part of the loyalty card that is provided by the company is based on the efforts that are taken by the workforces in order to engage the customers. The “extraordinary employee effort” is a major step that has been taken by the company in order to engage the customers in an effective way (Wang, 2016).
- The sixth step in the loyalty process is based on the achievement levels of customer engagement. The entire achievement of customer engagement will thereby play a major role in the ways by which the employees are able to satisfy the customers totally. The relationship which has been developed by employees with the customers is a major part of the customer engagement based strategies that have been implemented by the organization (Lu & Kandampully, 2016).
Literature review
The employees will also play an significant part in the ways by which the hotel is able to offer the services to customers. The trust based levels of the employees within the organization is a major part of the operations of Ritz Carlton Hotel. The people thereby play a major role in profitability and revenues of the organization. The employees and the customers of the organization are the most significant part of the effective operations of the Ritz Carlton hotel in the hospitality industry (Neirotti, Raguseo & Paolucci, 2016).
The hospitality organizations have started facing major issues based on intercultural employees and customers as well. The cultural differences that are being faced by the organizations have posed huge challenges to the managers and the employees. The major issues are thereby related to the intercultural communication between the employees and the managers as well. The intercultural communication based issues have started increasing in the current business environment. The employees thereby need to be provided with effective levels of training in order to communicate with each other in an effective manner (Neirotti, Raguseo & Paolucci, 2016).
The communication of employees plays a major role in the ways by which companies are able to serve the customers. The employees are an important part of the operations of hospitality organizations. The hotels which operate under The Ritz Carlton Group have also faced major issues based on the cross-cultural issues. Hospitality is thereby considered to be a major intercultural field. The culture is able to provide the individuals or employees with an awareness based on their identity and the ways by which they are able to communicate with each other. The international operations of the hospitality industry are mainly a part of the intercultural issues (Nieves & Segarra-Ciprés, 2015).
The importance of cultural awareness has been a major part of the operations of the hotels which are a part of the Ritz Carlton Group. The cultural issues which are being faced by Ritz Carlton are thereby based on the ways by which the appropriate training is provided to the employees. The employees thereby need to be trained in such a manner so that they are able to communicate with each other and further provide effective services as well. The diversification and growth based operations of the company are also based on the operations levels of communication between the employees (Radojevic, Stanisic & Stanic, 2015).
The organizational culture of Ritz Carlton is mainly based on the vision, mission and the values that have been developed by the company. The main aim of Ritz Carlton is thereby to develop the culture in such a manner which will make the culture visible in nature. The visibility of organizational culture is based on the levels of loyalty which has been developed by the company. The new employees who become a part of the operations of Ritz Carlton are then provided an orientation based on the vision, mission and values. The orientation which is provided to the employees is based on the ways by which high levels of loyalty can be effectively maintained by the hotel (Shani et al., 2014).
Analysis of the current situation
The employees are trained in such a manner which will help them in upholding the culture in an effective way. The levels of engagement of the employees is a major part of the ways by which culture of the hotel can be maintained. The ways by which employees need to perform within the organization are then provided to the employees. The development of strategic plans also plays a major part in the growth and further maintenance of the hotel (Solnet, Kralj & Baum, 2015).
The employee motivation based activities play an significant role in the growth of proper and loyal employees who will be able to provide effective services to the employees. The empowerment of employees is also important for the proper operations of Ritz Carlton hotel in the hospitality industry. The major concept that is able to support the organization is based on the employee empowerment based activities that are undertaken by the management in an effective manner. Ritz Carlton has thereby taken major steps in the ways by which the organization can train the employees in an effective manner. The training which is provided to the employees has played a key role in the development of a loyal employee base (Tsai, Dev & Chintagunta, 2015).
The analysis of the operations and training based activities of the Ritz Carlton Hotel has been able to depict that the company has been able to create an effective position in the hospitality industry. The employees and customers have thereby played a major role in the ways by which revenues of Ritz Carlton can be increased in the industry. The customers base of the organization has been created with the help of proper employee engagement based strategies. The employees of the company have provided services to the customers in such a manner which can help Ritz Carlton to operate in the industry in a profitable manner. The organization can thereby be recommended to increase its engagement based activities in such a manner which can develop a huge customer base and employee base as well. Ritz Carlton will thereby be able to operate in the hospitality industry in such a manner which can help in increasing the revenues of the company as well. The customer engagement based activities of the organization need to be improved in order to develop the customer base effectively. The employees need to be provided with the effective amounts of training so that they are able to become an effective part of the culture and further uphold the culture as well.
References
Dzhandzhugazova, E. A., Blinova, E. A., Orlova, L. N., & Romanova, M. M. (2016). Innovations in hospitality industry. International Journal of Environmental and Science Education, 11(17), 10387-10400.
Fraj, E., Matute, J., & Melero, I. (2015). Environmental strategies and organizational competitiveness in the hotel industry: The role of learning and innovation as determinants of environmental success. Tourism Management, 46, 30-42.
Jauhari, V., & Bharwani, S. (2017). An exploratory study of competencies required to cocreate memorable customer experiences in the hospitality industry. In Hospitality Marketing and Consumer Behavior (pp. 159-185). Apple Academic Press.
Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), 36-67.
Kandampully, J., Zhang, T., & Bilgihan, A. (2015). Customer loyalty: a review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management, 27(3), 379-414.
Kim, M., Vogt, C. A., & Knutson, B. J. (2015). Relationships among customer satisfaction, delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism Research, 39(2), 170-197.
Lu, C., & Kandampully, J. (2016). What drives customers to use access-based sharing options in the hospitality industry?. Research in Hospitality Management, 6(2), 119-126.
Luxury Hotels & Resorts | The Ritz-Carlton. (2018). Retrieved from https://www.ritzcarlton.com/
Neirotti, P., Raguseo, E., & Paolucci, E. (2016). Are customers’ reviews creating value in the hospitality industry? Exploring the moderating effects of market positioning. International Journal of Information Management, 36(6), 1133-1143.
Nieves, J., & Segarra-Ciprés, M. (2015). Management innovation in the hotel industry. Tourism Management, 46, 51-58.
Radojevic, T., Stanisic, N., & Stanic, N. (2015). Ensuring positive feedback: Factors that influence customer satisfaction in the contemporary hospitality industry. Tourism Management, 51, 13-21.
Shani, A., Uriely, N., Reichel, A., & Ginsburg, L. (2014). Emotional labor in the hospitality industry: The influence of contextual factors. International Journal of Hospitality Management, 37, 150-158.
Solnet, D., Kralj, A., & Baum, T. (2015). 360 degrees of pressure: The changing role of the HR professional in the hospitality industry. Journal of Hospitality & Tourism Research, 39(2), 271-292.
Tsai, Y. L., Dev, C. S., & Chintagunta, P. (2015). What’s in a brand name? Assessing the impact of rebranding in the hospitality industry. Journal of Marketing Research, 52(6), 865-878.
Wang, C. J. (2016). Does leader-member exchange enhance performance in the hospitality industry? The mediating roles of task motivation and creativity. International Journal of Contemporary Hospitality Management, 28(5), 969-987.
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