Globalization of the Hospitality Industry the Operational Essay

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Globalization of the Hospitality Industry

The operational aspects of expansion are often the easiest for any hospitality provider to plan and execute, regardless of the global location of their latest hotel, resort or expansion property. The cultural and experiential factors however are far more difficult to manage and excel within the context of, and are often what challenges the growth of even the most highly-0regarded brands over time (Pei, Abdolali, Yong, 2005). Within the last decade hospitality providers are increasingly relying on advanced techniques for determining how they can anticipate and respond appropriately to cultural and customer-centric expectations and needs. In the peer-reviewed research presented in Service Quality: A Study of the Luxury Hotels in Malaysia (Pei, Abdolali, Yong, 2005) the researchers use the Service Quality (SERVQUAL) index to measure the variation between customer expectations and experience. Using this framework, the researchers provide a detailed analysis of the contributors and detractors to guest satisfaction with luxury resorts throughout Malaysia. SERVQUAL is pervasively used throughout hospitality, healthcare and many other services industries as the intangibles of customer service from the customers' perspective can be quantified through attitudinal measurement (Parasuraman, Zeithaml, Berry, 1988). The five classification of elements that comprise the foundation of the SERVQUAL framework include reliability, assurance, tangibles, empathy and responsiveness. Measuring all of these factors in a consolidated set of metrics provides a unique, 360-degree view of a service business that is not available through more qualitative and often imprecise research methods. The outcomes of SERVQUAL analysis provide international hospitality providers with a nuanced and focused view of how each of their properties are perceived by current and future guests.

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The research process to capture SERVQUAL data is also often interval or ratio-based in terms of scaling attributes, which provides a measure of orthogonally-based reliability to the results (Parasuraman, Zeithaml, Berry, 1988). These foundational elements of SERVQUAL have also led to this technique being combined with Six Sigma and DMAIC-based methodologies for understanding regional variations in service quality for internationally-based chains.

Analyzing the Influence of Globalization on the Hospitality Industry

The cultural and experiential differences between regions of the world and within nations need to be taken into account in any expansion strategy for it to succeed. Globalization requires a nuanced and much focused series of strategies to align a given hospitality providers' services and facilities mix to the precise needs of a given location. While globalization is often criticized as the homogenization of a given industry, in fact the most successful luxury hotels prosper when they take a very local, culturally-aware approach to planning and executing their overall strategies. The research that forms the foundation of Service Quality: A study of the Luxury Hotels in Malaysia (Pei, Abdolali, Yong, 2005) illustrates this point through the use of the SERVQUAL methodology.

The study examined the gaps in performance across five service quality dimensions including reliability, responsiveness, assurance, empathy and tangibility, which are the five foundational elements of the SERVQUAL methodology today (Parasuraman, Zeithaml, Berry, 1988). The findings illustrate how difficult it is for a globally-based hospitality provider to expand into Malaysia and orchestrate services well enough across all five dimensions, delivering excellent, above-expectation service in the process (Pei, Abdolali, Yong, 2005). The study also sought to.....

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