Jul 30th, 10:15 AM - 11:15 AM


Putting the Dollar Signs to Quality: The Cost of Experienced Problems in the Hotel Industry


This work presents a calculation for the cost of problems experienced in the hotel industry. The calculation is then applied both to the cost of problems experienced and the cost of problems not reported. The calculation presents data at the brand level to illustrate the calculation. By using this formula, hotels, brands and companies can both identify and monitor the dollar cost of problems experienced to help in their cost/benefit analysis of service improvement efforts. Key words: hotels, service quality, reliability, problems experienced, cost of problems, problems reported, intent to return.