The Ritz-Carlton Hotel Company is a chain of luxury hotels around the world. They have proved their worth in the luxury hotel industry, with Ritz-Carlton receiving the top spot in the Business Travel News Hotel Survey for six consecutive years since 1999 (Eisen, 2006). Their success primarily comes from their focus on customer satisfaction by providing their patrons with the highest standards of quality service. Ritz-Carlton has put focus on developing a wide chain of personalized hotels with the main goal of realizing product dominance and high profits in the market.
In order to achieve this goal, the company has formulated a philosophy which has been heralded as the company’s “gold standard” in their operations (Columbia Business School, 1998). The Ritz-Carlton credo states the company’s focus on giving their customers care and comfort, and this permeates into the hotel design and employee attitude. Ritz-Carlton hotels are created and designed with the credo in mind, providing customers with a full range of facilities.
The company also focuses on their employee attitude, which is seen in the company motto of “We are ladies and gentlemen serving ladies and gentlemen.
” Employees are trained to be professional service providers, and not servants. This allows the company to maintain their image of class and professionalism (Columbia Business School, 1998). Management at Ritz-Carlton understands that the company culture must be instilled in the employees in order to implement these values in the whole company. Employees undergo a meticulous selection process and continuous training to ensure that the high standards at Ritz-Carlton are maintained.
Ritz-Carlton believes that in order to make significant improvements in service quality and efficiency, the management must first concentrate its efforts in creating systems and structures which enable and motivate a commitment throughout the organization. Managers at Ritz-Carlton lead by example and often confer with guests and employees to pinpoint possible improvements for the company. In addition to quality improvement, the company has also put focus on improving process management and control.
Each hotel in the Ritz-Carlton franchise has their own quality department to measure the hotel’s success and to identify and eliminate problems or hindrances (Columbia Business School, 1998). With the company’s large focus on customer satisfaction, they have developed a system for gathering and tracking defect data. These are compiled into a weekly report called the Daily Quality Production Report (DQPR) which lists all the service problems found in the previous week (Columbia Business School, 1998).
Majority of the DQPR comes from employee feedback, rather than customer complaints. Employees are also encouraged to act upon these defects as soon as they discover them, which allow Ritz-Carlton to maintain top performance always. Ritz-Carlton relies on customer feedback and customer evaluation of the level and quality of service at Ritz-Carlton, as a measure of success in customer satisfaction. Their focus on giving customers a quality experience and the way they achieve this has provided them success in the luxury hotel market.
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