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Quality Cost at Hotel Escargo

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Can you help me answer these three questions with the scenario listed below

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?


Hotel Escargo Mission Statement: Serve the business and pleasure travelers by making customer satisfaction priority number one through top quality service, amenities, comfortable surroundings, and friendly employees.

Problem Statement : Upon the annual review of the Hotel Escargo chain, it was discovered that there was room for improvement with the check-in and check-out system implemented by the Rooms Division Department. In addition, there are many areas that the hotel can improve to raise the overall quality and customer satisfaction.

The current process used to check guests in and out of the hotel is inefficient for both the customer and the hotel and a new process must be developed that provides a convenient and efficient experience for the customer, as well as one that makes the best use of the hotel's resources.

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Solution Summary

Discusses cost of quality at Hotel Escargo.

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1. How would you go about determining the cost of quality for Hotel Escargo?

The cost of quality for Hotel Escargo can be determined by evaluating various areas, such as cost incurred on rework or duplication of efforts due to quality issues, cost incurred on quality planning and routine quality efforts such as implementation of control mechanisms and checks for ensuring quality standard, cost incurred on refunds or discounts issued to customers for poor quality of service. Examples of such costs would include labor or staffing costs incurred on implementing quality efforts, material costs incurred on rework of services or products, etc. The company will have to ...

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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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