TOU3020 Customer Service Management in Hospitality & Tourism Assignment Sample

Strategizing Customer Service: XYZ Company's Approach & Focus Areas

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Introduction of (TOU3020) Customer Service Management in Hospitality & Tourism

Customer service management refers to the planning or coordination of tasks among customer service, customers, or another group to rapidly resolve problems or requests. The service profit chain plays a vital role in achieving an effective profitable customer provider in the company's operational area(1). This helps the company to innovate new and trend measurement techniques which measures employee loyalty, productivity, and satisfaction(Juanamasta, 2019). The aim of this report is to provide knowledge of customer management services for the newly innovated company performing its functions in the hospitality and tourism industry(2) The report includes the XYZ Company’s robust customer service strategy discussion that how, and when the company can develop its relatable strategy. In this study, the understanding of why and where the chosen company should develop the customer service industry is developed (3).

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Overview of the Company and sector in relation to customer service

(4) XYZ Company is UK based chain that mainly focuses on tours and travel work which significantly diversifies the hospitality and tourism industry within the scope of a tour operator.As the company is providing its services in almost 20 countries in the world, its number of employees is around 20 thousand. There are 540 locations of the company in different countries through which the company gets more revenue. The company has multi-sites of its operating locations across the world. The company majorly served its services in UK, America, Africa, the Middle East, and Asia-Pacific.A case company has multi-sites in various countries around the globe (5).

The corporate structure of the case company is a hierarchal structure. Hierarchy is an approach that provides a company with a systematic structure business. In this, the company that adopts this structure has a standardized format to operate its business in the market. The case company has different departments to effectively manage its functions in the operative markets(Chao, 2020). The departments include by the company are such as human resources, finance, sales and marketing, and many more. The services provided by the company contain lodging, meetings, food services, timeshares, and conventions.

The chosen company wants to make an effective customer service strategy to attract more new customers to the company's services. This is a very essential part for the case company to expand in the future and for a more profitable business. If the company is using the customer service part better, then it will get an impressive position in the consumer market which help the company to beat its competitors and gain a competitive advantage. (6) The case company wants to choose a strategy that will positively impact its customers and encourage them to use more of the company's services (Johnson, 2018). The company provides its services to the customers in such a way, that if any person wants to travel or plan for holidays, the company comes into the customer's mind first.

The relevance of the Service Profit Chain for customer service

The service profit chain explains how all the employees of a company get satisfactions which affects the satisfaction of the company's customers (Ivanov, 2019). (7) It states that if the company's employees are satisfied then the company's customers may also be happy (Kurdi, et. al. 2020). As obvious an employee represents the company in front of its customer.

The key elements that pillared a service profit chain are discussed below:

Employee’s satisfaction (8) - Employee satisfaction plays a significant role in improving retention rates. Employees employed in the company with the high retention rate mentioned job satisfaction or healthy relations with their managers and colleagues as key reasons for those continuing at their current jobs (9). It is essential for the company to pay attention to its close key elements that will drive its profitability criteria in the service program. In this case, a company should pay attention to its employees so that if they have any problem the company should immediately solve it.

Customer links - The second element of the service profit chain represents all customers and their connections with the chosen company. If the company provides services to its customers effectively then the customer stays with the company's services. Consumers may be more likely to use a service of the company if they obtain high-qualitygoods or services that producemore profit for the corporation(Zhang, and Parker, 2019). The first link is an exterior value facility. This is the quality of products or services the consumers collectthat result in customer satisfaction.Customer satisfaction is the aim for most firms that they accomplish through worker satisfaction.The last link is consumer loyalty which could mean client retention, repetitive business, and referrals.

Profitability and revenue - Profitability or revenue are the results of a service profit chain. When the staffs feel pleased, they may generate higher-quality products or services that lead to a happier consumer (Buil, 2019). A chosen company can earn customers' loyalty through this service profit chain. This results in company profitability and revenue development. Additional revenue can allow abusiness to deliver more for its workers.

These above points all means investing in the company's people, investing in those technologies which support frontline workers, investing in recruitment or training program, and investing in the compensation system which is linked to the performance of the employees at each level. The second point of customer loyalty stimulates the company’s profit and growth in the future market, the company's loyalty reflects as a direct result of customer satisfaction. Satisfaction is impacted by the value of services offered to the customers by the company. A company's value is created in front of the customers by the loyal, productive, and satisfied employees in the company. Employees of the company may also be satisfied with the high-quality support policies and services. The high-quality support policies or services of the company enable its employees to provide better results to their customers(Goodman, 2019).

Every company should follow the proper flow of its structure to provide better services to its customers. The service profit chain plays an important role in achieving the XYZ Company’s goals and objectives (Walters, 2019). From the above report, it is recommended to (10) XYZ company that it should adopt the strategy of a service profit chain to effectively reach out to its existing and new customersthrough its impressive products and services (12).

The systematic flow chart to recommend the customer service plan to a chosen company is explained in figure 1 gives detail analyses by separating the 3 steps plan which is employee satisfaction, customer satisfaction and profitability and revenue. The employee satisfaction involves the basic concepts which recommend that the chosen company should satisfy its employees, The Company must try to solve its employees problems immediately, the company should hear the voice and suggestions of its employees and lastly the company should make employee happy, so that they can impressively handle the issues of the company's customers (Koc, 2019).

Figure 2: Service Profit Chain

(Source: Alchetron, 2021)

A service-profit chain is built on the 7 links, with each link interrelatingalong with a rest of the chain overinfluence andcause. These seven links are lined-upasemployee care or enabling rules, worker satisfaction, creative employees, facility value, consumer satisfaction, consumerloyalty, and at last income or profit.

Customer satisfaction should be improved through the following suggestions that the case company needs to enhance its services to reach out large customer base.To satisfy its customers the company requires adapting timely new techniques.It is recommended to the company that it can provide online bookings with fast replies on their queries to save their time and make a booking process simple (Iglesias, 2020).The company must make their customers comfortable through effective communication and the company should always appoint an active attainder who always there to solve problems of the customers.

Figure 3: Customer service process flow chart

The last step includes profitability and revenue for this it is necessary for the chosen company to balance its employee satisfaction and customer services to bring more profits in the business. The case company can earn higher profits when it gains customer loyalty.


It is concluded from the above report that the company has already effective services through which the customers easily attract to the company. But it is also considered that the company should have improved its skills while doing the job in the same profession. The case company has various options to develop its customer service strategy. The best suitable strategy for the company to improve its customer service criteria is the service profit chain. This strategy will give the proper direction to the company toward its desired position in the consumer and competitive market. The chosen company for this report has an effective market reach and a large customer base which already signifies the company's effective position in the market. It is also concluded that if the company wants to expand its business in other different countries then it have to satisfy its customers as well as its employees.


Alchetron, 2021. Service–profit chain (online). <> (accessed on 27 December 2022).

Buil, I., Martínez, E. and Matute, J., 2019. Transformational leadership and employee performance: The role of identification, engagement and proactive personality. International journal of hospitality management, 77, pp.64-75.

Chao, E., 2020. Leadership and Customer Service. In Customer Service Management in Africa (pp. 161-175). Productivity Press.

Goodman, J., 2019. Strategic customer service: Managing the customer experience to increase positive word of mouth, build loyalty, and maximize profits. Amacom.

Iglesias, O., Markovic, S., Bagherzadeh, M. and Singh, J.J., 2020. Co-creation: A key link between corporate social responsibility, customer trust, and customer loyalty. Journal of Business Ethics, 163(1), pp.151-166.

Ivanov, S., Gretzel, U., Berezina, K., Sigala, M. and Webster, C., 2019. Progress on robotics in hospitality and tourism: a review of the literature. Journal of Hospitality and Tourism Technology.

Johnson, A., Nguyen, H., Groth, M. and White, L., 2018. Workplace aggression and organisational effectiveness: The mediating role of employee engagement. Australian Journal of Management, 43(4), pp.614-631.

Juanamasta, I.G., Wati, N.M.N., Hendrawati, E., Wahyuni, W., Pramudianti, M., Wisnujati, N.S., Setiawati, A.P., Susetyorini, S., Elan, U., Rusdiyanto, R. and Astanto, D., 2019. The role of customer service through customer relationship management (Crm) to increase customer loyalty and good image. International Journal of Scientific and Technology Research, 8(10), pp.2004-2007.

Koc, E., 2019. Service failures and recovery in hospitality and tourism: A review of literature and recommendations for future research. Journal of Hospitality Marketing & Management, 28(5), pp.513-537.

Kurdi, B., Alshurideh, M. and Alnaser, A., 2020. The impact of employee satisfaction on customer satisfaction: Theoretical and empirical underpinning. Management Science Letters, 10(15), pp.3561-3570.

Walters, R., 2019. Reevaluating the Service Profit Chain Model: with Special Consideration to the HRT Segment.

Zhang, F. and Parker, S.K., 2019. Reorienting job crafting research: A hierarchical structure of job crafting concepts and integrative review. Journal of organizational behavior, 40(2), pp.126-146.

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