How do quality management systems impact on revenue in the hospitality industry

It has been prophesied time and again by various scholars through various studies what Roberts found in 1996 “businesses who know and understand customers’ priorities for quality improvements can achieve a threefold increase in profitability” (Dale, 2003).This study has been carried out from the revenue generation context of quality systems implementation for hospitality industry. How the various elements of quality help in achieving the increased profitability needs to be analyzed. It is also important to see whether the concepts that help achieve visible improvements in manufacturing sector also produce profitability improvement worth the effort they involve in the hospitality sector or not. 2. RESEARCH QUESTIONS, AIMS AND OBJECTIVES 2.1. Research questions identified The major questions which this research aims to answer are – What is the impact of implementing quality management systems in hospitality industry? How do these systems impact the revenues? What are the efforts involved in implementing these systems and are the resources required to implement quality systems justified by the value of the revenues generated? 2.2. Research Aims and Research Objectives The aim of this study is to see how quality management systems impact revenue in the hospitality industry. Study objectives are as follows: 1. To study how quality management systems are implemented in hospitality industry – a general study of the companies. 2. To understand how the quality management systems impacted the parameters of financial performance (a study of the various parameters they impact as well as the means of this impact). 3. To measure the impact…
This research paper shows that quality management systems have positive impact on revenues of hospitality industry. It has been observed that this has been achieved by improved market share, brand image, ROI and competitive positioning. However, some concerns regarding the impact of these systems on overall performance of the firms have been highlighted. One of the concerns is the sincerity of implementation of quality management systems within the firms. The industry leaders need to understand that they are the main drivers of change which these systems propose to bring about. Hence, a commitment of words or even documented commitment is not sufficient. The leadership team needs to be thoroughly involved in its implementation. They need to have a quality vision to help firms achieve both revenue and cost benefits. Half hearted efforts, especially in the industry of our study, have found to have a negative impact on operational performance. Our literature review has analyzed all the aspects related to the questions set out in the beginning of our study. Hospitality organizations implement quality management systems by applying for certifications like ISO 9000, etc. or by internal process improvement programs. Some companies in this sector were seen to implement Six Sigma methodologies to reap revenue benefits. Most of the successful organizations in this sector have implemented full computerization which helps the management in analyzing revenue versus cost factors.