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R.O.I. for Quality Assurance.
John R. Hendrie, CEO, Hospitality Performance
Thursday, 24th November 2005
 
During an address on Destination Development and price/value relationships; a distinguished gentleman asked whether there were figures to support an increase in Guest Traffic when an independent property invests in a Quality Assurance Program. 

In my mind, QA has been costed out by many but never related to "heads in beds" or subjected to risk/reward analysis.  It is simply the right way to conduct business.  I had no numbers for him, in response.

Perhaps I should have related the history of Hotel Chain Operations, which utilize QA to establish their reputation, creating a known product, which represents a certain level of cleanliness, safety/security, comfort, service delivery and facility condition.  Quality is an integral commitment within their philosophy, operations and performance.  Whether you are a Marriott, a Best Western franchise or even a Motel 6, attention to Quality standards is evident. 

These standards, measurement and reliable performance support the Brand, and the Consumer responds.  It follows that a lodging decision will be influenced with a known and expected experience.  The same could be said for the "formula" restaurants.  Consistency has value.  Most independents do not have this certitude, whereas the Flags do.

Perhaps I should have discussed US Manufacturing, where essentially you do not do business, unless you are certified under ISO International Quality Guidelines, designed to establish  global compliance, understood and recognized manufacturing processes and resultant quality products for the marketplace. 

Much of this history began in the 1980's with Quality Circles and Statistical Process Control (SPC), believing that we needed to improve the manufacturing process at all points, be innovative and empower the machine operator, who actually made the product.  This template should be an easy application to Hospitality, voluntarily, for we should not need International directives.  But, our product and service is uneven, especially for the independents.

Perhaps, I should have mentioned the State of Indiana, where legislators are considering some type of State requirements for Hospitality, beyond the Health Department regulations.  Perish that thought! But, are we inviting governing body interference?

The Independent operator simply has no credibility when they merely use the term Quality, because it has not been defined or certified for the Consumer.  There are many Rating Schemes and Companies out there, but most do not really help the operator in improving their business and delivery of product and service.  Mobil Travel is a Consumer Advocate.  AAA is essentially a marketing service and costly.  Michelin and Zagats use patron reviews of mostly selected cities and higher-end businesses.  But, the Consumer is attentive.  If the industry does not self-police and establish meaningful standards, someone else will fill that niche, in spite of your protestations. Hopefully, not the government.

Quality cannot be left to your whim!  To be candid, as a traveler, looking at two similar properties, one offering HBO and the other Quality Assured Rooms, most of us would select the hotel with HBO.  But, if that guest room were dirty, if the bathroom was an insult, or if the front desk clerk was surly, the HBO amenity is meaningless.  That is the bottom line.

Quality Assurance is your statement to the market that your product and services will meet the expectation of the Consumer.  To survive and flourish in a competitive marketplace, any edge, innovation or statement of beliefs will be scrutinized, embraced or dismissed.  Quality Assurance provides the norm, which is indisputable.

So, my answer to the distinguished gentleman should have been more thoughtful, recognizing that not everything can be reduced to numbers, particularly Quality and the assurance of those basic standards.  Quality should be the foundation of Hospitality, and we are inviting a significant Consumer outcry and market correction.  Industry leaders are beginning to voice similar concern, with Joe Kane, incoming Chairman of the AH&LA, stating the obvious,  that it is time to"…resurrect the spirit of Hospitality".  Wouldn't it be something for the National Association to take the lead with a Quality Assurance Program for their members.  But, that is probably a numbers game, too, for you do not want to lose members who may not make the grade.  However, that would be a significant statement and commitment to elevate the Guest Experience.
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