Answer the following questions based on the article "Palapa Politics" from your course packet. (Page limit: 2 typed, Cambria 12pts.) (a) (25 points) What issues described in the case are the most concerning and why? (b) (10 points) How would you propose to fix the problem with Palapas that the resort is facing? (c) (15 points) How can a hotel (not necessarily a resort) implement lean methods and leverage its customers to improve operations and profitability? Try to be as specific as possible in your recommendations. Relations made to topics covered in class will receive a higher credit.Answer the following questions based on the article "Palapa Politics" from your course packet. (Page limit: 2 typed, Cambria 12pts.) (a) (25 points) What issues described in the case are the most concerning and why? (b) (10 points) How would you propose to fix the problem with Palapas that the resort is facing? (c) (15 points) How can a hotel (not necessarily a resort) implement lean methods and leverage its customers to improve operations and profitability? Try to be as specific as possible in your recommendations. Relations made to topics covered in class will receive a higher credit.
Operation Service
There are several primary concerns in this case that require Maria's attention, and the end goal of developing a more effective policy and system for reserving or renting the palapas to hotel guests (or simply letting guests wander up and occupy palapas without any hotel involvement) is only one of them. A definite problem in balancing revenue maximization with customer satisfaction is apparent, but there are other problems that are only semi-related as well as even deeper organizational issues that exacerbate the palapas problems. First, there is a lack of true operational understanding and planning when it comes to any of the palapa reservation/rental techniques, without any staffing changes to accommodate the repeated changes in policy -- no real training, apparently, and certainly no designation of a specific person or team charged with handling the palapa issue. That the people distributing towels are now also responsible for reservation and rental systems and for dealing with customer complaints regarding these policies and systems is wholly inadequate, and whatever method is selected as a way forward must include an actual change in the way service is provided at the staff level, and not merely as a new top-down policy change given as a set of instructions but not discussed or explained.
Other problems that need to be addressed include a lack of real assessment regarding profitability, and an issue with the overall customer orientation at the resort. Developing real figures based on the various pricing levels of the palapas is needed in order to determine if a rental scheme is truly worthwhile. The resort also needs to accept the fact that it will not be able to make all of its guests happy all of the time, and thus there should be a consideration of the number and direction of complaints. People will clearly complain regardless of the palapas rental/reservation/claiming system that is put in place, so the resort needs to simply minimize rather than attempt to eliminate complaints.
b)
Given the added consternation to staff and the real potential for decreased customer satisfaction when a rental r official reservation policy is put in place, it is recommended that the resort simply go back to a first-come, first-served basis for the palapas, perhaps with guidelines established for leaving the palapas (e.g., guests who leave a palapa unoccupied for more than an hour forfeit their claim to the palapa, even if they leave their belongings there). This will ensure a greater availability of palapas by making day-long holdings more rare (people that pay to rent them for a full day will likely not relinquish them) and provides a clear and fair means for access to the palapas. There will still be complaints, but as the resort will not be involved in assigning palapas customer satisfaction with the resort should increase overall.
c)
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