The world of hospitality and Six Sigma

Six Sigma is traditionally a process used in business and industry. Its scope has widened greatly and is now applicable to many more domains, including the hospitality sector. Six Sigma is a set of principles used to improve business practices to reduce the number of defects or undesirable events within an organization. Undesirable events lead to poor customer service and smaller profits. Organizations that are related to the hospitality sector and want to retain customers, possess a competitive advantage, and remain profitable, should implement Six Sigma principles in an effort to maintain a certain standard.

The hospitality industry is an industry which deals with customers non-stop. By adopting Six Sigma methodology, you can create increased productivity and satisfaction in the following areas,

  1. An increase in customer loyalty
  2. A reduction in employee turnover
  3. Reduction in cost
  4. An outstanding increase in revenue
  5. Increased balance in employee’s work-life

Let’s take a look at how hospitality industry can get benefitted by using Six Sigma methodologies.

Hotels give a better customer service: A Hospitality industry needs to deal with different types of guests from gauche to timid to fussy to stubborn. Nowadays, the guests are very demanding and if don’t satisfy them with the best quality services, then they will definitely shift their interests. With the help of Six Sigma approaches, you can provide them with the necessary information in more accurately. Not only this, Six Sigma method also reduces peak time check ins and check outs, lessening in housekeeping room turnaround times and above all improve in customer loyalty.

Food and beverage industry: Food and beverage play an important role in the field of the hospitality sector. Six Sigma methodologies can also bring a positive impact in these parts also. Areas that can be improved by employing Six Sigma methodologies are,

  1. Turnaround time between an order placement and the delivery
  2. Decrease and control in inventory distribution
  3. Waste and theft product
  4. Food and beverage output

Purchasing and stores: Customer satisfaction dictates policies, procedures, sales, markdowns, and anything else associated with shopping malls, stores, department stores, delis, hotels, and restaurants. Six Sigma can make an impact in stores in the following areas,

  1. Seasonal cost-benefit analysis
  2. The decrease in inventory surplus
  3. The decrease in disbursement time to in-store departments
  4. Standardize the operating procedure of issuance to various departments

Sales & marketing and front office operations: Six Sigma plays a pivotal role in Sales & marketing and front office operations of a hotel industry. Six Sigma can improve in this areas.

  1. Eliminate billing errors
  2. Reduce no-shows
  3. Increase the occupancy rate
  4. Reduce or eliminate loss calls
  5. Increase customer delight

So, these are some areas where the hospitality industry can get benefited by implementing Six Sigma methodologies. Starwood hotels and resorts Worldwide Inc was the first hospitality company in the world which embraced Six Sigma in 2001 and since then, it extends this best practice to all properties worldwide. No matter how big or how small your business in the hospitality industry may be, all can benefit from Six Sigma and its tools, methodologies, concepts, and philosophies.