ACCENT HOTEL GROUP

Contemporary Issues in Administration and Management

Contemporary Issues in Administration and Management

Part A

Effective Administration

This part of the paper focuses on how Accent Hotel group can ensure effective administration practices in their organization in order to maintain their commitment to excellence.

Consumer Satisfactions, Service Quality and Pricing

Customer satisfaction leads to profitability of the service sector (Cardozo, 1965, 244-249). Satisfied customers create loyal customers in the hotel industry. Service quality has a positive impact on the performance and competitiveness of the hotel. Customer satisfaction is influenced by items such as culture, social class, personal influence and family, and other individual differences (motivation and involvement, knowledge, attitude, lifestyle, personality and demographics). Research studies have linked customer satisfaction with product attributes, instead of the product itself.

Product attributes may be measured either objectively (for example, through presence of facilities, number of rooms, etc.) or perceptually (e.g., cleanliness of hotel, staff's helpfulness and efficiency, etc.). Gundersen et al. (1996: 81) suggested that Linear Structural Relations (LISREL) model can be used to examine hotel customer satisfaction among business travellers. Gundersen et al. (1996:81) mentioned that tangible and intangible dimensions of three departments (reception, housekeeping, and food and beverage) tend to customer satisfaction. Tangible aspects of the housekeeping and intangible aspects of reception are most important factors of customer satisfaction.

The occupancy level and average direct costs also have positive impact on management efficiency and competitiveness (Campos-Soria et al., 2005:100). Hotel room price has a significant effect on the demand for rooms. Demand for the hotel room is positively related to the consumer price index (CPI). According to Parasuraman et al. (1991:45), hotel customers expect to receive a higher level of service when they pay more for that service. If a hotel fails to satisfy the customers' needs, the hotel will tend to lose its customers.

Technologies and Innovation

Advent of new technologies can improve the productivity of a hotel. But the hotel industry is a supplier driven sector which is not having internal research and development (R&D) activities (Orfila-Sintes et al. 2005, 851-865). Technological innovation leads to better strategic planning of hotel management which improves competitiveness (Orfila-Sintes et al., 2005, 851-865). Technology investments can improve the total productivity. Accent Hotel Group need to provide proper training and other human resource investments in response to innovations.

Technology in the service industry is knowledge, because the employees carry the knowledge that is needed in the hotel business. The technology transfer in the hotel industry and also acknowledged the importance of human capital. Information Technology (IT) is one of the crucial technology investments that are often made by Accent Hotel Group to improve performance. Furthermore, IT will improve the strategic decisions of hotel management which can improve the competitive advantage.

Improving Management Performance

One important component is the application of common standards for a complete set of hotels, financial management, document management, customer service, personnel management and improving his skills. In addition, the financial statements are the hotel should be transparent to the investor. It is also important legal support to the hotel at all stages ...