Service before Sales: An evaluation of the Expedia Local Expert Service and Sales Training

By Damon Fairchild 12/11/2012

Submitted to Expedia Local Expert

Table of Contents
Summary Description Evaluation Method Results Recommendations Discussion Evaluation Cost 3 4 5 6 7 8 8

Summary
Expedia Local Expert (ELE) is a division of Expedia Inc. As it is the only division within the worlds largest online travel agency (OTA) that employs retail sales agents, Expedia Inc. has a great interest in establishing the same level of success in its offline ventures as it has enjoyed in its online tradition. Because the guest interaction is face to face and performed at concierge desks throughout Hawaii the sales agents, most commonly referred to as concierges, must first be able to provide hotel and island guests with world class service as is described in two of the companys four service aspirations: We want every guest to feel that an Expedia Local Expert concierge was the highlight of their visit We want every lodging partner to feel that an Expedia Local Expert concierge provides the best service on the property Approximately 1 year ago, Expedia Local Expert contracted a consulting firm, The Elkind Group, to design a service and sales training program to ensure that newly hired concierges and existing concierges were trained and began practicing sound principles of excellent guest service which would, in theory, lead to increased sales opportunities. The purpose of this report is to describe the level of success achieved through the new service training program and whether or not the cost associated with its design was justifiable. The report includes details of the program, a description of the evaluation method, results of the evaluation, discussion and recommendations. Conclusions on the effectiveness of the program were determined through the methods discussed briefly below as well as in more detail later in this report. The service level of a concierge can best be determined by hotel guests and other hotel staff. In order to determine guest satisfaction a measurement of Mahalos or Thank You emails was taken. Client count comparisons were made year over year to assess whether or not concierges were able to manage lines and attend to the needs of more guests than the prior year. Hotel staff was interviewed to determine the level of confidence they had in outside staff members (ELE concierges). In order to learn whether or not the concierges personally felt more prepared to address their guests needs surveys were completed. After examining the data gathered as part of the evaluation it has been determined that the service training has been effective and that goals are being met. This is not to say that improvements cannot be made or that individual concierges need not improve their skill levels but it is to say that in general the aspirations mentioned above are being met. This report will give more in depth detail of the analysis in the pages that follow.
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Description
The intended users of this program are ELE concierges. The Concierge is responsible for assessing customer needs and selling attractions and activity tickets that ensure a memorable vacation experience. The Concierge is knowledgeable about the local area and is the expert on the attractions, tours and activities that we sell. As a member of the team they uphold the Expedia Local Expert promise to delight every guest by sharing my passion and local knowledge to arrange memorable experiences. Following training Concierges will be able to effectively perform the following tasks: Greet guests with enthusiasm and aloha Maintain professional appearance and attitude Manage lines Multitask make effective use of time with guests as well as downtime Provide expert knowledge of Hotel Property and surrounding area Build and maintain strong relationships with hotel management and staff Resolve guest concerns and issues Solicit guest feedback Make appropriate recommendations by asking the right questions a. Dining b. Activities c. Tours 10. Plan a guest vacation 11. Quickly and efficiently make reservations for all items in #9 using both the telephone and the ELE point of sale software (Aldesk)
1. 2. 3. 4. 5. 6. 7. 8. 9.

In order to reach these goals, concierges participate in a 3 week service and sales training program that includes 6 total days in a classroom, 7 total days shadowing/observing model concierges, and 2 total days doing familiarization (FAM) tours. Specific assignments are given for each day of shadowing/observation, daily (formative) assessment is conducted in the form of role playing throughout the day, quizzes at the end of each day, and a (summative) final assessment is performed in three parts execution of necessary daily tasks in Aldesk, role playing, and a final written quiz. In class format is as follows. Concierges receive segmented instruction for each of above objectives. After receiving instruction, the manager models behaviors in a role play situation. Each concierge is then given the opportunity to practice with partners, observe fellow concierges, and receive and provide feedback to and from fellow concierges. Observation format is as follows. Prior to each day of observation the concierge will receive worksheets with specific information to gather, specific techniques to observe, and specific questions to ask of model concierges. The following morning details of the observation will either be reported back to the manager or a group of fellow concierges.

Familiarization tours (FAMs) are scheduled throughout the training period in order to increase firsthand knowledge of activities, restaurants, and popular locations. After completing a FAM, the concierge is required to complete a written report that requires that they accurately and concisely paint a picture of the location and to put the guest in the picture.

Evaluation Method
This evaluation is based on a combination of the Decision-Making Model and Goal Based Method in order to determine its effectiveness and whether or not to continue its use in the future. Data were gathered from the following quantitative sources to begin and were also compared with qualitative and anecdotal evidence. Client Counts Client counts are in indicator of a number of important factors. A concierge who manages lines effectively, is friendlier, asks key discovery questions, and makes appropriate recommendations has significantly higher client counts than others who do not use the best practices taught in the Elkind training. They are also an indicator as to whether or not the hotel staff trusts the concierge enough to refer guests to them when they inquire. If the trust level is high then hotel staff will confidently refer guests to the concierge desk to be attended to. While it is understood that client counts can also be affected by occupancy levels, hotel remodels, mix (origin of guests), and the global economy these factors will continually be a part of the tourism industry and the changes caused by them are accepted as being moot for this evaluation because there is no evidence of major changes in the market. Mahalos Mahalo in Hawaiian means Thank You. At the close of each transaction with a guest the concierge solicits feedback in email format. These emails are sent to mahalo@expedia.com, reviewed by the Director of Sales and Operations, and then forwarded to the respective manager of the concierge. Lodging Partner Interviews Throughout the evaluation process interviews were conducted with hotel management and staff. Initially a survey was sent out to determine satisfaction levels, but unfortunately not one of the surveys was returned. This may have just been a strange phenomenon and a coincidence because face to face interviews yielded a much different result. Participant Feedback A key piece of the evaluation is the feedback of those being trained. Over the past year nearly every concierge in the organization has completed all or at least a portion of the training.

Data gathered has been acquired from a sample of those who have completed the entire training program.

Results
Client Counts

When comparing the number of clients booked on Oahu during the same period from 2011 and 2012 we see a dramatic increase from 17,271 to 20,881. Although, as previously stated, it is understood that client counts can also be affected by occupancy levels, hotel remodels, mix (origin of guests), and the global economy, these results are viewed as extremely positive and represent about 1.3 million in additional sales. Mahalos During the period beginning September 1, 2012 and ending November 30, 2012 an average of 8 Mahalo Emails were received per week in each of 4 territories on Oahu. This number is taken as a sample of the greater state area which, of course would have yielded a higher total, but most likely a similar average. Lodging Partner Interviews As stated earlier lodging partner surveys were unanswered so interviews were conducted when possible. The general manager of the Outrigger Waikiki on the Beach stated We love your entire staff. Heather especially works very well with our front desk and they trust her so much they send everyone over to her. In addition, when asked for feedback, the Assistant General Manager at the Embassy Suites Hotel wrote the following concerning one specific ELE concierge:
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Noelani in Hawaiian means Heavenly Mists. And if youve ever experienced a July afternoon on the island, a mists of rain is exactly what youd be wishing for while youre shopping at the Aloha Flea Market. Our version of Noelani fits the Hawaiian translation to a T. Shes warm and gracious and all guests delight in conversing with her. Noelani has this gift even after she sold them 7 different activities during their 2 night stay. Noelani is a pleasure to work with and absolutely personifies her Hawaiian name.
Participant Survey Survey results from sample of concierges who completed the course: Now that you have completed the training course, please rate your level of comfort or confidence as it relates to the following topics. Your ratings will be classified as Not Confident, Confident, Very Confident. Skill Greet with Aloha! Manage Lines Manage multiple tasks simultaneously Provide expert knowledge of Hotel Property and area Build and Maintain strong relationships with hotel management and staff Resolve guest concerns and issues Solicit guest feedback Make appropriate dining and activity recommendations Plan a guests vacation Confirm reservations via telephone or Aldesk Execute essential job functions in Aldesk Not Confident 0 1 Confident 0 3 4 3 4 3 1 2 Very Confident 19 15 15 19 16 12 18 17 19 19 18

Recommendations
Recommendation 1 The first recommendation is to modify the process of gathering Mahalo emails. The task is cumbersome, time consuming, and requires that one person really be the key to sharing and initially evaluating the communication. In addition, privacy laws do not allow a company to share emails with the general public therefore the results of the thousands of positive comments and feedback emails are unknown to the public and hotel management. It is our recommendation that the guests be given a public forum based on a similar model to Trip Advisor which was initially started and owned by Expedia but eventually spun off.
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The major modification to the forum would be that guests be verifiable. In other words, posts cannot be made on the site without first gaining an access code directly from an ELE concierge. While this wont eliminate the possibility of someone getting ahold of the code and using it to make a false post, it will decrease it dramatically. Recommendation 2 Based on the results of the participant survey the number of concierges who felt very confident in resolving guest issues and concerns is noticeably lower than any other category. It is our recommendation that additional time be spent during training to address conflict resolution techniques through discussion and role playing of real life scenarios. Concierges can bring to training specific situations that they found difficult to resolve and can solicit feedback from peers as well as instructor.

Discussion
After considering the data sources, overall objectives of the course, and ultimately the revenue increases generated from the incitation of this training the evaluator can comfortably determine that the cost of the course design and management training was in line with the results achieved. Participants reported high levels of success and comfort in performing the tasks addressed in the course, lodging partners expressed happiness with service levels, and guests shared their enthusiasm through Mahalos as well as through their pocketbooks. Ultimately a sales organization has to effectively and efficiently sell their products and do so in a manner that encourages positive guest experiences and the potential for return business. The Expedia Local Expert concierges and their management team have set themselves up for success, have experienced the positive results of their training already, and can expect to even improve on that success as they put into action the recommendations above.

Evaluation Cost
Personnel Evaluator Travel None Materials Miscellaneous needs Total Cost Rate $500/day $0 $20 Number 5 $0 1 Total Cost $2500 $0 $20 $2520