Oberoi Group Hotel Case Study

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In spite of having numerous structures in place to ensure a luxurious guest experience, the Oberoi Vanayvilas (OV) failed to provide a quality service to its hotel guest. To recover from this service failure, we recommend OV to sincerely apologize and ‘offer refund for the third night and a credit for the two nights for a future stay with additional hotel perks tobe used at OV within a year’ to the impacted guest. Main drivers for our recommendation are to convey a message that Oberoi sincerely cares about the customer inconvenience and wants its guest to revisit the hotel to win over the customer by its exemplary quality service.
Suggested two night hotel credit can be used at any Oberoi Group hotel, but additional discounts such as meal voucher …show more content…

We recommend Vikram to use service quality framework (SERVQUAL) as a scale to measure and manage hotel guest’s perception of service quality in terms of five dimensions (session2 slide#45), which are (i) Reliability – OV employee’s ability to dependably and accurately perform the promised service to consistently delight its guests (ii) Assurance – Knowledge and courtesy of OV employees, and their ability to convey trust and confidence. (iii) Empathy – OV’s individualized attention and customized care it offers to its guests and understanding the customer to anticipate guest needs, wants and desires to enlighten the service. (iv)Tangibles – Refers to OV’s lavish tents and other physical facilities, equipment, pleasant appearance of OV personal, etc. (v) Responsiveness – OV’s willingness to help customers and provide prompt …show more content…

The offering of a refund for the guest’s entire stay is an option; however, if OV decided to do so, OV should carefully deliver a message focusing more on the value that the hotel wanted to deliver with the luxurious tent setting. With this option, guest could take the refund amount and use it to go to another hotel and Oberoi would never have the opportunity to delight guest with its improved quality services, nor will it receive valuable customer feedback on the corrective improvements. Customer could mistakenly think that OV’s trying to delight customers with the refund versus its hospitality quality service, which is detrimental to OV’s luxury hotel brand. Although Oberoi takes pride in delivering luxury services and its guest experience matters most to Oberoi, the management should not get emotionally invested in the complaint by giving a full refund and should avoid this risky option. Alternatively, OV could offer a credit for one free night to use in the future at the OV or at another location of the Oberoi Group hotel. This is less risky option and it somewhat preserves Oberoi reputation and guest might visit Oberoi group hotel, but again Vanayvilas will not have an opportunity to change the negative customer perceptions into the positive one via its flaw-less quality

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