• Restaurant Guests Take Major Complaints to Management
• Paul Brown of Expedia Joins Center's Advisory Board
• Center Advisory Board Member donates $15 Million to School
• Research Fellows and Staff at Industry Events
• Featured Corporate Partner- HVS International

Many View Letters as Equal to Face-to-Face Complaints

Alex Susskind, Ph.D.

Communication theory says that people are most likely to complain in person when a restaurant has made a major service error. However, a new study from the Cornell Center for Hospitality Research found that many guests might write a letter to the manager in the case of a major service failure, rather than complain on the spot.

The report, “An Examination of Guest Complaints and Complaint Communication Channels: The Medium Does Matter!,” by Cornell University Professor Alex Susskind, Ph.D., surveyed how 504 respondents handled the most recent service failure that they had experienced at a casual dining restaurant. As expected, the respondents said that face-to-face communication ranked above written communication for service failures overall. But those guests wanted a manager to address major service failures, while they addressed minor complaints to servers. The report is available at no charge from the Center's website, http://www.hotelschool.cornell.edu/research/chr/pubs/reports/.

“The guests mentally divided service failures into two groups,” said Susskind. “When they had a problem that could quickly be resolved on the spot, they informed the server, usually face-to-face. However, when the problem needed a larger solution, the guests quickly refocused on management for redress. The unusual finding here is that many of my respondents seemed to rate a letter to the management as a stronger method of communication than face-to-face with a server.”

In contrast, communication theory suggests that face-to-face communication is “richer” than written approaches, with the implication that the most serious complaints will be made in person, whether to managers or to line employees. Therefore, Susskind suggests that restaurant managers—and, indeed, managers of all service businesses, treat complaint letters in the same way as though the complaint had been made in person.

“Guests who contact management are looking for an information exchange, so managers should make sure that they contact those guests,” he concluded. Ironically, even though managers should call guests who have complained, none of the respondents themselves would make a telephone call to communicate their issues.

All Cornell Hospitality Reports and Tools are available from the Center's web site, www.chr.cornell.edu. Thanks to the support of the partners listed below, all Reports and Tools are made available free of charge.

Paul Brown

The Center is pleased to announce that Paul Brown, President of the Expedia, Inc. Partner Services Group and Expedia® North America has joined the Center’s Advisory Board. As President of the global Partner Services Group, Brown is responsible for managing airline, hotel, car and tour-operator supplier relationships across all global points of sale for Expedia, Inc. As President of Expedia North America, Brown oversees Expedia.com®, Expedia.ca™, Worldwide Travel Exchange® (Expedia's private label business), Destination Services and the Expedia business operations group. Expedia has also become a new corporate partner with Cornell’s Center for Hospitality Research.

“We look forward to working with the Cornell Hotel School’s world class faculty to explore new ways to refine the practice of hospitality management,” said Brown. “Expedia has tapped into the pipeline of talented Cornell Hotel School graduates who are leaders in the hospitality industry, and partnering with the Center for Hospitality Research further advances the relationship between Expedia and Cornell.”

“We are delighted that Paul Brown will be joining the Advisory Board of Cornell’s Center for Hospitality Research,” said Joe Strodel Jr., director of corporate relations at the School. “As the largest online travel agency in the world, Expedia will help us explore key strategic issues facing our industry and we look forward to a long and productive relationship.”

Gift to Benefit Hotel School’s Institute for Hospitality Entrepreneurship

Leland “Lee” Pillsbury and his wife, Mary, have announced plans to donate $15 million to the Cornell University School of Hotel Administration in what will be the largest single gift ever made to the school and one of the largest ever in hospitality education. The gift will be used to support the Institute for Hospitality Entrepreneurship, providing students with the skills and ability to think like entrepreneurs. Pillsbury's companies, Thayer Lodging Group, TIG Global and EMC Venues, are corporate partners of the Center for Hospitality Research.

Lee and Mary Pillsbury

“I am very pleased to be able to give back to the school that has meant so much to me. It was through my professors and my fellow students that I was able to develop as a businessman and an entrepreneur,” Lee Pillsbury said. “Entrepreneurship and innovation have been crucial to the evolution of the hospitality industry and will continue to be. Through this gift, Mary and I endeavor to help the school guide and inspire future generations of entrepreneurs who will find their own creative ways to move the industry forward.”

“The Cornell Hotel School has long had an entrepreneurial component to its teaching and has produced many entrepreneurs successful in new ventures, family businesses and corporations,” said Mary Pillsbury. “Lee and I are delighted to help the school build on this successful record and elevate this commitment to a new level.”

To read more, please visit http://www.hotelschool.cornell.edu/about/pubs/news/newsdetails.html?id=386&file=.pdf

Cornell's Center for Hospitality Research will also participate in The Americas Lodging Investment Summit (ALIS) on January 22-24, 2007, at the Hyatt Regency Century Plaza in Los Angeles, California. ALIS is “the” annual meeting place for hotel executives, investors, lenders, developers and the professional advisory community in the hotel and tourism industry. It is an event that brings together leading experts and investors to discuss important trends and to identify new opportunities. For more information, please visit: http://www.alisconference.com/.

TheCenter is also a co-sponsor of the Cornell Reception at ALIS to be held on Tuesday, January 23, 2007 from 7:00 - 9:00 p.m. at The Peninsula Beverly Hills Hotel. To join learn more about this reception, or to participate as a corporate sponsor, please contact Joseph Strodel, Jr. at 607-255-4646 or js343@cornell.edu

HR in Hospitality Conference & Expo, March 4 – 7, 2007 at the Wynn Resort in Las Vegas. Keynote addresses from industry leaders to include Steven Heyer, CEO, Starwood Hotels and Resorts, and Arte Nathan ’72, SVP, Chief HR Officer, Wynn Resorts, Ltd. Panel discussions, seminars and sessions by distinguished Cornell faculty and top industry executives on topics that include Attracting and Retaining the Industry’s Future Leaders, Weaving Diversity Into Your Corporate Culture, Comparing and Contrasting Wage Surveys, and much more! For full event details, visit www.hrinhospitality.com or call 1-800-727-1227.

Produced by Human Resource Executive® Conferences in collaboration with Cornell’s School of Hotel Administration and ILR School, this will be the premier event for human resource management, employment law and labor relations in the hospitality industry.

Center for Hospitality Research Subscribers receive a $450 discount using promotional code HHCORNELL.

Established in 1980 by Stephen Rushmore, HVS International is a global consulting and services organization focused on the hotel, restaurant, timeshare, gaming and leisure industries. The firm has provided financial and valuation consulting services for over 8,000 hotels in all 50 states and more than 60 foreign countries. With 20 offices in 10 countries and more than 200 consultants worldwide, HVS International performs more than 1,500 assignments per year for virtually every major industry participant. For more information, visit www.hvs.com.