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Managing Quality in Hospitality, Tourism and Events

University: ARU London

  • Unit No: 11
  • Level: High school
  • Pages: 11 / Words 2773
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 261
Question :

This sample will let you know about:

  • What is Quality Management?
  • Define Effective Total Quality Management.
  • Discuss advantages and disadvantages of KPI's.
Answer :
Organization Selected : Airbnb

INTRODUCTION

Quality Management refers to the process of overseeing task as well as activities of an association in order to ensure that goods and services which is offered in market is consistent and of high quality. This concept assist an organisation to maintain quality level which in turn builds good brand image of a company in market (Altinay, Paraskevas and Jang, 2015). In the present report, Airbnb is chosen as a base company.

The company was established by Brian Chesky and Joe Gebbia in the year 2008. Airbnb  is an online marketplace that offers tourism, home stays as well as lodging services to the customers. The present report covers the concept of quality management along with the evolution of quality management. It also discuss about the issues that Airbnb experience currently and the affect of techniques that is adopted by them in order to deliver effective and good quality to customers at marketplace. At last, various recommendations is given so that company can improve its quality in a proper manner. 

Concept of Quality Management

Quality management is  the process of visual perception related to  various activities and tasks inside organisation. The company provides good accommodation and home stays services to  customers where quality management could help them in satisfying need of customers. Also, it helps in accomplishing goal or objectives within an organisation premises.

It involves  various activities and tasks that a company  to do while  manufacturing  and  delivering  quality product and services to customer at  suitable cost. It also ensures that goods are delivered on  right time. Main advantage of using a quality management by Airbnb organisation  is to provides accommodation and lodging services  to customer at appropriate cost thus it helps company to build customer loyalty and retain them (Dredge, Airey and Gross, 2015). Get Assignment Examples.Talk to our Experts!

Evolution of Total Quality Management

1920s

Few of basic seeds of quality management were constituted through U.S. Industry. In late 1920s, Hawthorne experiments described  how productivity of worker affected by their participation.

1930s

In 1930s, Walter Shewhart established procedure and methods of quality  control and statistical analyses.

1950s

In year 1950s, W. Edwards Deming taught procedure of controlling quality and statistical analysis thus it can be described as origin of TQM whereas Philip B. Crosby emphasised on improvement in quality by reducing defect in many organization.

1968

In 1968s, the term total quality management develops as well as Kaoru Ishikawal's established philosophy  related to Japan's dominance as a quality leader.

Today

ISO 9000 series of quality standard define principal, rules, policies and procedures that comprises  Total Quality Management.

When a company look back at the concise history of improvement of quality management, there are different phases from quality control to total quality management which is mentioned below:

Quality control:It can be described as a process in which examining, testing, measuring and verifying quality of project deliverables that meet expectation of  stakeholder. In context of Airbnb, the management team focuses on providing best accommodation and lodging  services to  its customer at affordable price for satisfaction of customer (Evans, 2015). For example: The Airbnb Guest refundable policy states that customers will not be provided full refund if their experience is not good enough. This limits Airbnb to develop trust and loyalty among customers

Quality Assurance : Hereby, the supervisor emphasised on overall project life cycle to verify performance of work as well as provide satisfaction to stakeholder regarding quality of  accommodation and tourism services. Airbnb is  well established company focuses on whole project planning, taking continual reviews and audits to check that  work is performed  as per the policy and regulations of the organisation. It provided services such as cleaning ,washing and sponging room so that customer can enjoy their home stays.

Total Quality Control:Herein, Manager concentrate on accelerating overall quality of tourism  services provided to customer at appropriate price. As per Airbnb,  the main purpose of manager is to increase profitability of organisation through offering  quality and accommodation services, home stays to customers. The main focus of company is to increase whole efficiency of company.

Total Quality Management :  It uses information, strategy as well as helps in effectively communicating quality discipline within an organisation. In reference to Airbnb, the management team focuses on  satisfaction of customer by offering best services through providing training to employees of company  and achieving goal or objective of organisation.Get USA's leading online assignment help!

Different Issues experienced by Airbnb

Airbnb faces a lot of issues and challenges that affect adversely on its brand image as well as on its market share. The issues that is experienced by Airbnb is defined below:

  • One of the issue faced by company is when it cancelled down the bookings of more than a million people in the last minute of their journey. It affect adversely on the mindset of people as it is not easy for them to search home stays in unfamiliar cities. This declines the level of trust people have towards the services of Airbnb. Along with this, sales of its home sharing business decline that affect on the market share of Airbnb in a negative manner.
  • The other problem experienced by Airbnb is data scam. The company's personal information, customer information and account details is hacked in May, 2019. The hackers used its website and sent money to scam accounts due to which company faced financial issues that affect negatively on the business activities.
  • The other problem that is considered is legal issues faced by Airbnb. As customers are not sure that the property that is rented to them is legal or illegal. The highest market share of company is gained from the city New York and its government resist against rental service. The government of New York is not allowed to rent a room in someone's apartment or house as they prefer to give housing to its local residents. Due to this problem, the sales of Airbnb get decreases that directly affect on the profitability and revenue of company in a negative manner.

Along with this, the other issue that is experienced by Airbnb is Customer service. The  company get negative ratings on one of the website named by Trust pilot about its bookings, customer service and other aspects of service-quality. Nowadays, people check the reviews online before consuming any kind of service and then take decisions whtake services or not. Appalling ratings about Airbnb decreases sales and market reputation of company as it develops negative mind-set of customers towards company. All this issues impact on the productivity as well as efficiency level of Airbnb which in turn decline the sales as well as profitability level of company.

Read Also: Unit 2 Assignment on Globalisation Higher National Diploma in Hospitality Management

Dimensions of Service Quality: For measuring the service quality, a number of dimensions can be taken which involves five dimensions that determines how an organisation perceived its customers & make improvements in order to satisfy customer expectations. These dimension are mentioned below with relation to the Airbnb:

Reliability: It is defined as the ability of an association to give on time and consistently service to customers. In context to Airbnb, the company did not meet this requirement as it cancelled down more than millions of bookings at the last minute that arise a number of issues in front of passengers to stay in unfamiliar city.

Responsiveness: It is referred as the ability as well as willingness of a company to give quick response to its customers. It builds negative perception when an organisation make customer waiting or did not respond to them in a proper manner. If it is talked about Airbnb, it is analysed that company was failed and unhelpful to respond customers and to solve their problems. This affect on the brand image and market share of Airbnb in a negative manner.

Assurance: This dimension is based on the willingness of staff members of a company to develop trust with the customers. It is totally depended on the knowledge as well as communication skills of employees prevailing in the organisation. In relation to Airbnb, it has been analysed that company have talented and effective employees who maintained good relation with customers and communicate with them in an effective manner. This need is fulfilled by Airbnb as company give training sessions to all the subordinates in order to enhance their knowledge level which guides them regarding how to communicate and maintain good relation with its customers.

Empathy: This dimension relies on the willingness of subordinates to concern & convey care to the customer. It generates empathy in customer towards the brand due to which they prefer to consume their services only. In context to Airbnb, the company is not able to fulfil this requirement  because in 2017, it has left customers on streets in unfamiliar cities that shows they did not care and concerned towards them. 

Tangibles: It includes the services that is given by companies that is equipment, physical facilities, communication medium, employees and so on. With reference to Airbnb, the home stays provided by the company involves good ambience that affect positively on its customers. Along with this, its customers get clean rooms and good facilities which states Airbnb is able to meet this requirement in a proper manner.

In order to maintain quality and gain competitive advantage at marketplace, the higher authorities of Airbnb used a technique that is key performance Indicators. This technique affect positively on the performance and productivity of company in an effective manner. The techniques along with its benefits and disadvantages is discuss in detail below:

Impact of KPI Over delivering consistent & effective quality management

KPI: it is a way of evaluating and measuring the effectiveness of a company towards attainment of their desired gaols. Along with this, it is a quantifiable technique that is used by an organisation in order to measure their productivity as well as performance level over time. It is determined that to measure the relevancy of performance indicators, companies can adopt SMART criteria. It signifies that objective should be smart, measurable, attainable, relevant and time bound as well. This technique helps an organisation to analyse current performance level that leads to attainment of goals within specified time frame. Airbnb adopted this technique so that they can make improvements in their services and delivers effect quality management. The advantages and disadvantages of Key Performance Indicators are defined below:

Advantages of KPI:

Measurable Results: The main objective of Key Performance Indicators is to measure progress of an organisation. It carries out results that is in metrics and number form. By the assistance of this, it is easy for Airbnb to track as well as measure progress of their setting objective. Along with this, it helps them to understand which part of task required to be focused by the company. Moreover, it will assist higher authorities of Airbnb to measure performance of employees according to their set objectives so that improvements can be done at initial stage which in turn affect positively on the performance and productivity of company.

Future Plan of action: By the assistance of this technique, an organisation have the opportunity to modify as well as redesign strategies that is rely on their past performances. It help managers of Airbnb to understand productivity, performance and capability of everyone prevailing in the organisation that leads to development of goals in an effective manner.

Rewards & Benefits: Herein, each and every staff member of an organisation gets chance to help the higher authorities in seeing the progress of objectives. Moreover, it assist subordinates to track and measure their efficiency level and then make improvements. This will affect positively on the performance and productivity of employees due to which they earn rewards and bonuses. By the assistance of this, employees of Airbnb get encouraged and work with full potential towards the attainment of organisational goals.

Disadvantages of KPI:

Short-term focused: This technique help companies to achieve as well as fulfil short term goals. In addition to this, this tool is not beneficial for the company to attain long term goals as it focuses on single area that might affect negatively on the overall performance of company. 

Decline in Quality: Key Performance Indicators emphasise on short term objectives which arises the possibility of decline in  quality work by employees. In context to Airbnb, acquisition of this technique may achieve financial goals but affect negatively on the authenticity and quality of task (Robinson and et. al., 2016).

Standardization: KPI is a result oriented technique that declines creativity of all the staff members of an organisation. If it is talked about Airbnb, the employees were using traditional methods in order to achieve task rapidly. This discourage subordinates to bring out and implement innovative idea in the organisation. Take Cheap Assignment Help at affordable prices!

Recommendations

  • It is recommended to the company that they can change their pricing strategy and set it according to the locations so that they can generate higher profits. The company need to identify requirements of customer and then divide its market so that right customers should be targeted that leads to raise in sales as well as profit level of Airbnb.
  • It is suggested that company should focus on content marketing in order to expand their business activities as it assist Airbnb to attract large number of audiences and increase its market presence (Smit and Melissen, 2018). This will also affect positively on market reputation as well as market share of company.
  • In addition to this, it is recommended that company should capture stories and experience of travellers and then post it to social media applications and on their own website. This will build strong relationship with customers and leads to positive word of mouth in market. In addition to this, it increases brand awareness due to which company have the opportunity increase sales and gain higher profits.
  • Total Quality Management concept can be adopted by company as it help in retaining customers for longer time frame and leads to raise in number of loyal customers of Airbnb. This concept involves four stages that is plan, Do, Check and Act. This process ensures higher growth and long term success of company within the marketplace (Theodorakis, Kaplanidou and Karabaxoglou,  2015).

CONCLUSION

From the above study, it has been analysed that Quality management plays an essential role in ever organisation as it help them to serve consistent and high quality to customers. In order to gain success at market place it is important for companies to meet with the requirements of service quality dimensions. Moreover, Key Performance Indicator technique help company in delivering consistent quality management.

Read Also- Managing Entrepreneurship Innovation and Creativity Report

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