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.comshould 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.

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.