Customer Service at Ritz-Carlton

            
 
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Case Details:

Case Code : MKTG310
Case Length :13 pages
Period :2000-2013
Pub Date : 2013
Teaching Note :Not Available
Organization :Ritz Carltonr
Industry :Hospitality
Countries :US; Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

Ritz-Carlton's Customer Service

L. Aruna Dhir, a corporate communications specialist, PR strategist, and writer, defined luxury in the hospitality industry by listing the top ten things that luxury guests needed at their hotel – recognition from the staff, perfect brand ambassadors delivering perfect service, personalization, superior level of technology, dining delight, privacy and security, awesomeness of the product, place and amenities, the wow factor, value for money, and timeliness. These expectations if unmet became hindrances and kept customers from coming back.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The Key Elements Of Ritz's Service

There were many elements in the consistent and high quality service provided by Ritz-Carlton. The first of them that kept Ritz-Carlton ahead of others in terms of service was that it had a well-defined corporate culture of service, which was built upon its mission and vision statements; its Gold Standards which included the Credo, The Motto, Three Steps of Service, The Service Values, and The Employee Promise. Before 2006, there were the key success factors or the Twenty Basics which were revised and refined each year (Refer to Exhibit III for the Ritz's Twenty Basics). However, the 20 Basics were later replaced by the 12 Service Values included in the Gold Standards (Refer to Exhibit IV for the Ritz's Gold Standards).....

Quality Management

Ritz-Carlton had been known for high quality since its beginnings. However, a systematic approach toward quality management began after Schulze took up the responsibilities as Vice President Operations at Ritz-Carlton in the late 1980s. By then, the company was already receiving honors from consumer forums and travel groups, but Schulze was of the opinion that the customer service at Ritz was erratic and employees lacked clarity of their expectations in terms of service. Therefore, he began standardizing the service processes and employee behavior to improve guest experience.. ...

Customer Service Issues

The hotel was considered a benchmark for its hospitality and customer service. The customers themselves agreed that the hotel had many positive aspects and praised its services. But even the best of the best services face customer service issues once in a while and problems crept in at some Ritz locations.. ...

Addressing Customer Service Issues

The company believed that the responsibility given to the employee to solve customer issues would automatically improve the quality of service offered by the employee. In addition to this, the company also empowered its employees to use $2000 per day per guest to solve any customer issues. This was not just to solve regular customer issues but also to provide an excellent service experience to its guests. The employee did not need to take permission from the supervisor or the manager to use the $2000 for customer service issues. . ...

Looking Ahead

On December 12, 2012, Chris Gabaldon, chief marketing and sales officer, announced that in the year 2013, the company would open its first Reserve property in the US, the Dorado Beach, which would also include a restaurant 'Mi Case' by chef Jose Andres. He also announced that the hotel would partner with Mercedes-Benz to offer a suite when Mercedes-Benz owners booked a Club level room at any of the Ritz-Carlton's Chinese properties. During the first three quarters of 2013, the company opened three properties — once each in Puerto Rico, Abu Dhabi, and Vienna.. ...

Exhibits

Exhibit I: Total Lodging and Timeshare Products (2012)
Exhibit II: Marriott International, Inc. Consolidated Statements of Income (2010-2012)
Exhibit III: The Twenty Basics
Exhibit IV: The Ritz-Carlton Gold Standards


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