SAGE HILL INN ABOVE ONION CREEK: FOCUSING
ON SERVICE PROCESS and QUALITY
Teaching Notes
Synopsis and Purpose
This case helps students’ improve their understanding of the service process and quality by
having them describe consumer expectations and factors that influence them. It also helps them
understand research methods used to measure and monitor consumer satisfaction and
perceptions as well as identify potential service failure points. The case draws on the Five
Dimensions of Service Quality, SERVQUAL and the Service Blueprinting flowchart.
Sage Hill Inn is an existing hotel located in Kyle, Texas. The case is based on information from
discussions between the author (Michael W. Pass, Sam Houston State University) and Amy
Dolan, innkeeper of Sage Hill Inn Above Onion Creek. In addition to the case, the website
www.sagehill.com should be accessed by students and the instructor for information.
Sage Hill Inn Above Onion Creek is located 25 miles south of Austin, Texas and a few hours
drive from San Antonio and Dallas. Formerly known as the Inn Above Onion Creek, the
property was purchased in 2012 by Eric Goldreyer, founder of bedandbreakfast.com, and John
Banczak, former president of the firm. Features and services have been enhanced in order to
attract new guests while continuing to appeal to guests that stayed there when it was known as
the Inn Above Onion Creek. A conversation between Amy Dolan, the innkeeper, and a
consultant indicates three needs: (1) the need to understand guests’ expectations, (2) the need to
determine and monitor guests’ perceptions, and (3) the need to identify potential service failure
points.
This is a comprehensive case on services. The discussion questions work the students through an
analysis of the hotel processes used to deliver service and the quality of service. Students use the
service blueprint in their analysis and apply concepts of the service-product bundle, service
expectations, service failure points, self-service, customer contact, service guarantees and service
recovery.
Discussion Questions
1. Define the service-product bundle that is being provided for guests, including the tangible
services, the intangible services and the facilitating goods. Do you see any missing elements
or areas of possible improvement?
2. Using the service blueprint, make a list of all the key service failure points and the associated
customer expectations. For example a service failure point with expectations is: check-in
should be fast and hassle free. You should find 10 to 15 service failure points.
3. For each service failure point in question 2 is it self-service or provided by the hotel, and is it
high contact or low contact service? Does this indicate any possibilities for improvement?
4. There are five dimensions to SERVQUAL: responsiveness, assurance, tangibles, empathy,
and reliability. What dimensions of service quality do you think are important for the hotel?
Feel free to define your own dimensions or use SERVQUAL. Then for each of these
dimensions construct 2 questions that could be used in a questionnaire when measuring
customer satisfaction at some of the service failure points from question 2.
5. How should the hotel handle service recovery and service guarantees? Suggest some options
they could implement.
Analysis
Question 1: The service-product bundle consists of
Tangible Services: Staff checks-in the customer, answers questions, makes appointments,
Question 2: Below is a sample of service failure points and related customer expectations.
Students will, no doubt, find other points or different expectations.
Service Failure Point: Expectation
(The notation GL, SH, etc. is for the next question, 3.)
Guest’s First Day
Question 3: For each service failure above is it self service or provided by hotel staff, and is it
high contact or low contact service?
See the codes on the side of the above services. G=self-service by guest, S= staff service . H=
High Contact, L= low contact
Possible areas for improvement.
1. Meet guests at the curb whenever possible, and offer help with their luggage. Provide a
missing towels in the room, noisy rooms or hallways, cold water shower, etc.
Question 4: SERVQUAL questions.
Student should feel free to deviate from the SERVQUAL dimensions. But, we use them here for
illustration. These definitions appear in Chapter 8. Two questions appear under each dimension.
Responsiveness: Willingness to provide service that is prompt and helpful to customers.
Q1: How was the dinner service at your table?
Q2: Was the check-out service prompt and helpful?
Assurance: Knowledge and courtesy exhibited by service employees
Q1: Was the Innkeeper knowledgeable and courteous during your stay?
Q2: Were you given useful information about attractions to visit?
Empathy: The caring, individualized attention provided to customers.
Q1: Did you receive individualized service that was above your expectations?
Q2: Were the employees helpful in meeting your requests?
Question 5: Service Recovery and Service Guarantees.
There are many opportunities to provide service recovery. When a service failure occurs, the
recovery should correct the problem in a way that the guest is completely satisfied. Here are
some examples.
1. If soup is spilled on the customers lap, service recovery is an apology, the offer to
5. If a room is next to the elevator and too noisy, service recovery is an apology and an offer
to help the customer’s move their luggage to another room.
A Service Guarantee is an offer to compensate the customer when the guarantee is not met. Here
are some examples:
1. We guarantee you a satisfactory stay at our hotel. If you are not satisfied with your stay,
we will offer you a free night at a future date. (Note: we do not offer a money back