MKT 540: SERVICES MARKETING 1

GROUP ASSIGNMENT: DELTA HOTEL

1.0 INTRODUCTION

Founded on May 13, 1999 is a 100% Bumiputra company. Led by the En. Tarmizi Hj Mohd
Samsi (Managing Director) and a Manager, Executive 5 and 10 full-time workers. Available
with name, company initially began by offering services that include maintenance work, clean
water distribution system / plumbing, electrical wiring and air conditioning. Based on the
company's vision to become a stronger entity, competitive and able to compete in the
market, now DMS is involved in the wider business scope of hotel accommodations and
services, providing training and seminars, catering, student hostel and the cleaning and
building maintenance or regions. Company (DMS) has rented a Council owned premises in
Section 9 Shah Alam, Shah Alam and made administrative headquarters of DMS. Given the
vast business potential, companies have plans to add capital and expand the business scope
of existing service contracts get larger, improve the quality of service, and continue to
enhance the viability of various companies, including lease and purchase of assets /
apartments strategic in the Klang Valley. There are several branches of DMS, located in the
vicinity of Shah Alam. Consists of Delta Hostel in Section 20, Delta Hostel in Section 3 and
Section 16 of Smart Apartments. Unit also provided the Delta Hotel Inn at Section 3 and
Commuter Raya in Section 19 and Delta Hotels in section 7. In addition, the house guest
(Guest House) is also available at Home Series Section 13 and terraced two storey house in
Section24.

2.0 DELTA HOTEL TARGET MARKET

The target market of Delta Hotel can be divided into three groups which include the foreign
travelers, locals’ travelers, family, and drop-in customers. In our opinions, we had an
experience towards the service provided by the Delta Hotel, however we will recommend
Delta Hotel to certain people such as young group, backpackers, tourist, students,
employees who had seminars and tourist.

3.0 COMPETITIVE POSITIONING

Hotel managers need to understand how their firm can achieve competitive advantages over
their competitors although in positioning the hotel. Adding values for customers, employees,
and owners has become a central theme in strategic management for hospitality companies.
To create values for these stakeholders, a firm should achieve a competitive advantage over
its competitors by adapting itself to the uncertain industry environment, understanding the
changing needs of customers, and responding to new market entries. Managers have
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GROUP ASSIGNMENT: DELTA HOTEL

pondered why some organizations have been able to secure an advantageous competitive
position, while others have not. Without achieving competitive advantages, a firm will have
few economic reasons for existing and finally will wither away.

Competitive positioning is about defining how the managers of the hotel differentiate their
offering and create value for market. It is about carving out a spot in the competitive
landscape and focusing company to deliver on that strategy.

Delta Hotel focuses on limited service concept, which is holding house including two toilets,
and three rooms for its customers. The average price is about RM200 for one day. The
competitive advantage of the hotel is the location in section 7 is the hotel is located in the
busy area that is near with UiTM, UNISEL, restaurant, police station, supermarket and so on.
It is the strategic area because section 7 area is full of people such as UiTM’s student,s
UNISEL’s students, the working people and so on.

The room of the hotel always full of customer because the hotel have their own regular
customer such as Pos Malaysia and JPA. The regular customers always use Delta Hotel
because the hotel also provides the training and seminar room for those who want to do
seminar and training. Delta Hotel also takes a reservation call from their customer.The trends
of the hotel also strategic because it is near the Federal Highway, which is, exit to Kuala
Lumpur, Shah Alam and so on.

Delta Hotel also has a good reputation. Customers never complain about the service at the
hotel. Delta Hotel also gets positive feedback from their customer. The feedback includes the
service of the hotel such as the receptionist, the environment of the room, the housekeeping
service and so on.

Delta Hotel competitors are the 4-5 stars hotel, which are Concorde Hotel, Quality Hotel and
Bluewave Hotel. Delta Hotel has been very profitable in recent years. For many months of
the years, it was sold out on weekdays. This shows that it was popular with people. The
strength of this hotel is the hotel is an apartment hotel which is its suitable for family and
customers in large group.
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GROUP ASSIGNMENT: DELTA HOTEL

4.0 BLUEPRINTING AT DELTA HOTEL FOR ONE NIGHT STAY

The existing blueprinting that has been provided by Delta Hotel

There are four components of a typical service blueprint which are physical evidence,
customer actions, contact person (visible actions), contact person (invisible actions) and
support processes. From the figure 1, it’s show the services blueprinting in Delta Hotel. For
the first, the physical evidence involve is phone call from the customer. Customer will make
reservation through phone call and the same time the receptionist will make reservation for
the guest in the reservation system. For the reservation, customer must bank in the deposit
to the Delta Hotel’s account. For the evidence, the customer must email or fax the deposit
slip to the Delta Hotel. The confirmation of reservation will make after Delta Hotel receive the
deposit.

After make the reservation, the customer will arrive at the hotel later. Customer will go to the
desk registration for check in at the hotel. The receptionist will check the reservation that
make by the customer before. If the payment of reservation has been made, the registration
will be proceeded to give the room to the customer.

Customer will go to the room and make the inspection of the room. Before the customer
inspect the room, the cleaner must load cart of the room with supplies like shampoo, towel,
soap and others. If the customer have a problem with things supplies, customer can request
the things from the cleaner.
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GROUP ASSIGNMENT: DELTA HOTEL

At the night, customer may do their own activity. They can shower themselves and then
sleep. For the next day, customer may check out to leaves the hotel. Customer will do the
process checkout which give the room key and make the balance payment at the lobby.
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GROUP ASSIGNMENT: DELTA HOTEL

5.0 OBSERVATION
5.1 FLOWER OF SERVICES

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From the information we had generated from variety source, we analyzed the core and
supplemntary service provided by Delta Hotel through The Flower of Service model. The
figure shows the flower of service is divided into two categories. The first categories
named facilitating service which includes information, order taking, billing and payment.
The second categories named as enhancing services which includes consultation,
hospitality, safekeeping and exception.

1- Facilitating service

a) Information
The relevent information is needed for the customer know about the service provider
and to add value of the service. Especially for the new customer, they not really
familiar with the company, so that company have to provident the information for their
customer. Delta Hotel provide the broachures to their customer. They also use the
front-line employee in order to give the information to their customer. Customer aslo
can get the information by their own by the Delta Hotel website. In the website they
can get the information about the direction to the hotel, price and other.
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GROUP ASSIGNMENT: DELTA HOTEL

b) Order taking
Application, orders and reservations come into play once the customers decided to
rent a room. The process of order taking must be fast, polite and accurately so that
customers do not waste and endure unnecessary mental or physical effort. For Delta
Hotel, the advance booking system took place under the order taking process.
Customers can make a house reservation Delta Hotel phone.

c) Billing
Billing is common to almost all service. This is the one of the most vital aspect to a
business. Thus, customers usually expect bill to be clear, informative and accurate.
For Delta Hotel, the billing service is provided in detailed and accurately. Delta Hotel
will ensure that the billing is timely in order to encourage the customer to make
payment faster.

d) Payment
For the payment, customer are expected it will be easy and convenient for them.
There are 3 type of payment which is self-service, direct to payee or intermediary and
automatic deduction from financial deposit. Delta Hotel only accept cash from their
customer.

2- Enhancing services

a) Consultation
To enhance the value of the service, Delta Hotel will give the consultation to their
customer. Consultation is needed when the customer have a problem regarding to
their service. The service provider will develop the solution that suite to the need of
the customer. An effective consultation requires an understanding of each customer’s
current situation. In the Delta Hotel, the front line staffs play important roles as a
consultant to the customers. If customers face any difficulties or problem, they may
just approach the front-line well trained staff to ask for help. For the example, all room
at the Delta Hotel are full and it will give a problem to the customer, so the staff will
give a solution by ask the customer go to their others branch such as at section 13.
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b) Hospitality
Delta Hotel is a limited services concept hotel. Therefore, not everything will be
provided. However, the hotel provides some of the hospitality-related services such
as a charming greeting, clean toilets, comfortable waiting area and setting, air-
conditioned environment, magazines, and security. Delta Hotel only recruit employee
who are naturally warm, welcoming, and considerate helps to create a hospitable
atmosphera.

c) Safekeeping
Delta Hotel stresses on its customers safety and enhance its security level. Therefore,
a secure keylock system, CCTV is located throughout the hotel with 24 hours
surveillance. Besides, Delta Hotel also provides a space for customers to keep their
luggage.

d) Exception
Exception involves supplementary services that fall outside the routine of normal
service. Delta Hotel always handles customer’s exception in a positive way and in a
good manner. The staff deserved a good acknowledgement. The staff will not appear
helpless and surprised when customers ask for special assistance. Employee will
respond promptly and effectively to the unexpected situation.

5.2 APPEARANCE OF SERVICE PERSONNEL

Appearance of service personnel is very important and also can give an impact to the
customer perception. Delta Hotel provide a uniform for each of their employees. If their staffs
no wear their uniform, they will be fined by the management. Delta Hotel also always make
sure that their staff in a good appearance and tidy during their job.

5.3 SERVICE ENVIRONMENT

Service environment is important and it take a lot of time and effort, and can be expensive to
implement. Service environment also called servicescapes. The servicescape is important
because it can influence the customers’ experience and their behavior. It also support the
company image and be part of the value proposition. We were observe the Delta Hotel
environment through by 3 main of demension. Which are:
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 Ambient condition.
Ambient conditions refer to characteristics of the environment that relate to our five
senses. The ambient condition includes lighting and color schemes, scents or smells,
sound, size, and air quality. The air quality at Delta Hotel is good. They put the air-
conditioner at their entire apartment. The color that they use for their building is white.
It will help the space look bigger. But, the one of the weaknesses for the Delta Hotel
is their lighting not really good. During our interview with the staff the lighting not
really bright and the light is flickering.

 Spatial layout and functionality

Spatial layout refers to the floor plan, size and shape of furnishing, counters, and the
ways in which they are arranged. Functionality refers to the ability of those items to
make the performance of service easier. The lobby is small and the sofa is too close
with the receptionist table. We cannot observe the room because at that time all
apartments are full. So, we do not know the actual layout of the apartment. For the
functionality, all the equipment at their apartment is function well.

 Signs, symbols, and artifacts.

Sign, symbol or artifact help the customers find their way and let them know the
service script. Delta Hotel uses the sign which can be used for giving directions such
as entrance, exit, and toilet. They also use they sign as a label for behavioral rule
such as no smoking area. Delta Hotel only use the symbol or sign that customer
understands.

5.4 SERVICE RECOVERY

Service recovery is a systematic effort by firm after a service failure to correct a problem and
retain a customer’s goodwill. The goal of service recovery is to identify customers with
issues and then to address those issues to the customers' satisfaction to promote customer
retention. It is a systematic business process that must be designed properly and
implemented in an organization. One way to think about service recovery is that it is a
positive approach to complaint handling. Delta Hotel will ensure that they will act fast if there
are any complaint that made by the customer. They also trained their employee to do not
argue with their customer. The employee will make a solution for the customers problem that
is accepted by the Delta Hotel and the customers. Delta Hotel also always make self-check
the system and improve it. They will use every complaint to improve their performance.
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6.0 RECOMMENDATION

6.1 SERVICE BLUEPRINTING FOR ONE NIGHT STAY

The recommendation of blueprinting in Delta Hotel

Figure 2 shows the new blueprinting after make a recommendation. For the recommendation
of blueprinting, Delta Hotel should add extra service which is food serving in the blueprinting.
Usually, the customers who come to the hotel are family, grouping and the students. So,
Delta Hotel must provide the foods to the customers. They can outsource the foods from the
caterer. The catering can make a package to the customer especially to the grouping. The
catering can serve the foods to the customer follow the time like the breakfast, lunch or the
dinner.

For the family that stays at the hotel, they can order by call the room service. The
receptionist will take the food order and then prepare the food. The foods already made by
the caterer, so if customer order they just the food to the customer. The room service will
deliver the food to the customer. They will eat after receive the foods.
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6.2 SERVICE ENVIRONMENT

It is recommend that the lighting of reception need more too bright rather than
flickering. It is because, as the customers they want to see clearly with the suitable
lighting for the night. It is can affect the visual from their customers during their needs.

Delta Hotel need to give the guideline and provide some rules and policies that
protecting the customers during they stay in the apartment. The limitation for the
customers is they can not cook independently even Delta Hotel provide the kitchen.

Delta Hotel need to show the sign of zone smoking that can be uses for the
customers. It is very important because its can give bad impact if did not place the
sign of smoking area.

6.3 FLOWER OF SERVICES

This is the recommendation for the flower of services which included facilitating and
enhancing services. For the first recommendation, divided the facilitating services
which is refers information, order taking, billing and payment. The second
recommendation, divided the enhancing services which is refers consultation,
hospitality, housekeeping and exception.

1- Facilitating services
a) Information

Delta Hotel should promote through the networking system which is easier
medium such as Facebook that customer able to reach the information about the
achievements or improvements rapidly and efficiency. The customers can share
all information that Delta Hotel provides with their friends and this is the way to get
the easy feedback from their regular customers and also for the new customers.

b) Order taking

For the branch at section 7, Delta Hotel did not have online reservations but just
only through phone reservation. So, it will be recommend that Delta Hotel need to
upgrade their website that can be link straight away to their branch at section 7
and the monitored by headquarters. So, the customers will save their time and
cost in order to stay in their apartment. With the website, the customers also can
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GROUP ASSIGNMENT: DELTA HOTEL

update their status to better schedule their time management without any
interruptions.

c) Payment

Now, Delta Hotel only accepts cash from their customer. It will be recommend that
Delta Hotel should be able accept payment from card credit and internet banking.
So, it is showed that Delta Hotel gives the convenience for their customer whether
they pay through cash or credit.

2- Enhancing services
a) Consultation
Delta Hotel apply the consultation for their customers regarding their problem
through front line staff. So, the recommend is Delta Hotel should have special
service customers counter in order to facilitate the services more smoothing
and high satisfaction from their customers. With the service customers
counter, the customers can complaint and give the suggestion for the hotel to
continuous improving their services for the future.
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7.0 CONCLUSION

Delta Hotel has been putting much effort in implementing the hotel concept and cultivating
such culture into our population. Therefore, as a market leader in the limited service hotel,
Delta Hotel is said to be sustaining such concept in surviving in the market with strategies
implemented with through researchers while maintaining the level of customer’s expectation
and satisfaction. Delta Hotel follows a path which is different from other hotel where it
focused on two (2) basic necessities, sleep and shower. Based on these aspects, they
develop strategies which provide a comfortable bed and power system. After all, they claim
that travelers or family need is a good night sleep coupled with refreshing shower. Besides,
they focus on convenience and security as well to protect customers from any possible
danger. The major contributor to the success of the hotel is the pricing strategy which
reasonable price. The manipulative pricing managed to attract a great deal of travelers,
students, employees and family even locals as well to protect customers from any possible
danger. We believe that Delta Hotel managed to pull it off in its own way in providing such
limited service to a large market segment. Thought it just started operating less than 2 years,
its positive cash flow begins to signal its potential in coming years. Through experiences and
researches on customer’s feedback and behavior, these will act as an upper hand for Delta
Hotel to continue to strive on improving its weaknesses and to upgrade the customer
satisfaction.
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APPENDIX