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Cost of Quality - Hotel Escargo

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Given the scenario outlined in the case study:
1. How would you go about determining the cost of quality for Hotel Escargo?

2. Provide cost of quality examples in the hotel industry for:
- Appraisal costs
- Prevention costs
- Internal failure costs
- External failure costs

3. Based on the information in the case study, which of these costs do you feel are relevant to Hotel Escargo and why?
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The response addresses the queries posted in 536 words with references.

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The response addresses the queries posted in 536 words with references.

// Cost of quality is important for the achievement of overall improved service quality in context to hotels because of several issues in providing efficient and effective services to the customers. Costs of quality mainly involve four costs, namely internal failure costs, external failure costs, prevention costs, and appraisal costs. In this reference, there will be a discussion on the costs of quality in hotel services in order to improve the overall service quality.//

The costs of quality in case of Hotel Escargo will consider costs related to improvement in check-in and check-out system activities. The costs regarding improvement in check-in and check-out will contribute the increased costs to the hotel because the main focus in on improving the quality of services regarding these two aspects. The costs of the activities will be incurred for ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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