Lean Six Sigma in Travel & Leisure Industry
As per the industry classification benchmark, this industry sector includes the following subsectors –
Airlines – Companies providing primarily passenger air transport.
Gambling – Providers of gambling and casino facilities. Includes online casinos, racetracks and the manufacturers of pachinko machines and casino and lottery equipment.
Hotels – Operators and managers of hotels, motels, lodges, resorts, spas and campgrounds.
Recreational Services – Providers of leisure facilities and services, including fitness centres, cruise lines, movie theatres and sports teams Restaurants & Bars – Operators of restaurants, fast-food facilities, coffee shops and bars. Includes integrated brewery companies and catering companies.
Travel & Tourism – Companies providing travel and tourism related services, including travel agents, online travel reservation services, automobile rental firms and companies that primarily provide passenger transportation, such as buses, taxis, passenger rail and ferry companies.
Applications in Hotel Industry
- Enhance Customer Loyalty
- Reduce Employee attrition
- Productivity/Efficiency Improvement
- Improve Work-life balance
- Reduce Billing errors/losses
- Developing better performance measures/ metrics
- Increase Revenue
- Reduce Cost
Front Office Operations/ Sales & Marketing
- Reduce wait time during peak check-in time
- Reduce wait time during peak check-out time
- Eliminate billing errors and improve accuracy
- Reduce No shows
- Increase Occupancy
- Optimal utilisation of the current product mix (rooms) to increase revenue
- Increase customer delight at the Executive Club
- Reduce/eliminate loss calls (Operators area)
- Accuracy of information
Food and Beverage Service / Production
- To maintain optimal inventory
- Minimize wastage/pilferage
- Standardized output of Food and Beverage
- Reduce the time from order to service
- Optimal utilization of current product mix (F&B/Outlets) to increase revenue
Accommodation Operation (Housekeeping)
- Reduce the turnaround time of making/turning down a room
- Standardization of cleanliness across areas
- Reduce Inventory surplus
- Cost Benefit Analysis between cost of inventory and cost of storage of products where prices vary seasonally
- Standardize the operating procedure of issuance to various departments
- Reduce the turnaround time of issuance to various departments
Human Resources/ Personnel
- Accuracy of payroll
- Documentation managementReduce the turnaround time of recruitment
- Reduce the turnaround time of relieving
- Increase the employee satisfaction rate
Kush Kapoor (Leela Kempinski) shares his Six Sigma journey so far and the recent award his team won.
- Case Study Description
- A visa application service provider found that applicant’s feedback regarding the quality of service experienced is extremely critical to the business. This helps in proactively eliminating problem areas and increase the customer satisfaction index which in turn would help in future business. Based on the data, only 7% of the population provided feedback. A project was taken up to increase this % to more than 25. The team ended up with an average feedback of 43% by the end of a successful project.
- One of the recent projects in a hotel was called Banquets Revenue Maximisation (BRM). Since space was always there with the property, the team wanted to exploit it as much as it could. Under this project of BRM, a matrix of activities was planned. The data analysis showed the need for periodic client engagement. Using experimental combinations, one final solution was implemented. All couples who were married in our banquet were sent an invitation for a discounted lunch a month later to build loyalty.
- Lapsed users (6 months or older) were sent periodic communiqués. If we were unable to give our banquets to a guest due to availability reasons, we sent them an apology along with flowers and seek an opportunity to serve them in future. This way we started keeping our guests engaged even when there was no event. The result, quantified, was an increase of 8 to 10 lakh INR in 4 months of BRM.
- Voice Reservation System of a large hotel had two problems – low scores on audits and less yield (conversion percentage of query calls on the dedicated reservation line). The analysis showed need for flexibility and empowerment. As a solution, the team organised more flexibility and empowerment to reservation team and arranged Voice and Accent Training for them. This led to increased conversions and better revenues.
Feedback from participants
To get perfection, course like six sigma is must for any organization as well as individual.
-Alexander V, Banquet Manager, GRT Grand
Extremely enlightening program that changes the way one perceives business challenges.
-Sunil Menon Senior Manager Ezeego One Travel & Tours Ltd.
This course definitely helped me to become a better leader and to know the pro’s and con’s of the business and environment. With the help of six sigma techniques I am confident that I can overcome any situation in business and my organization.
-Prince George, Sr. Executive, KLM Royal Dutch Airline
-Lakshmi Anand, Director Sales, Hyatt Regency
Every employee and the company will benefit if the employees goes through the six sigma training program.
-Vijay Pai, Team Lead, BCD Travel Pvt. Ltd.
Six sigma is way of building an eye for future business. I must quote: “Knowing is not enough, you must apply; willing is not enough, you must do”
-Ravish Jhala, Systems Manager, Trident Hotels