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IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN HOTEL INDUSTRY
Dr. R.R.Bhardwaj
1, Ved Prakash
21
Research Supervisor,
2Research Scholar, Mewar University, Rajasthan
ABSTRACT
The business reality of nowadays and tomorrow is that the guests have many choices and they are exercising their options aggressively, that’s a reason why companies are investing into loyalty programmes and improving their service quality.The aim of this research paper was to determine whether 5 star hotel managers and customers have the same understanding of service quality and satisfaction and whether there is a disparity between services offered by luxury hotels and the way customers actually experience them.
I. INTRODUCTION
Customer satisfaction means that how the customer perceives service delivery. That customer satisfaction is a function of service performance relative to the customer expectation. For this reason, it is important to understand how customer expectation is formed in order to identify the factors of service satisfaction in the hotel industry. As different customers have different expectations, based on their knowledge of a product or service.
This can be implied that a customer may estimate what the service performance will be or may think what the performance ought to be. If the service performance meets or exceeds customers‟ expectation, the customers will be satisfied.
The main focus of the study is to figure out the satisfaction of the guests which are segmented into normal consumers and not businessmen, what are their expectations in regards to the service quality of hotels in India and how it may add to the repeat purchase of services i.e. guest loyalty. When a guest goes to a hotel, what are the factors that attract him besides the core benefits.
This project investigates through the primary research, the service delivery expectations, service quality, guest expectation, guest satisfaction, and repeat purchase within the hotels and if the overall satisfaction leads to the repeat purchase. Hotels in New Delhi, India have shown a constant growth in the sector of hotels as more and more hotels are coming out in the market with more advanced facilities to please guests.
This study identified factors of service quality by focusing on the front office staff only, and explored the customers‟ expectations and perception levels of these services. The results of this quantitative assessment of service quality might provide some insights into how customers rate the service quality and assessed customers‟
satisfactions.
II. OBJECTIVE OF STUDY
The basic aim of study is to find out the influence of service quality on customer satisfaction. The sub objectives are:
To examine the impact of service quality on customer satisfaction in hotel industry of India.
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To compare service quality measures adopted by major start hotels
To find out the opportunities and future available for hotel industry in India.
III. LITERATURE REVIEW
According to Kandampully (2013) the poor state of quality in services has been primarily due to lack of clarity and consensus on the issue of what it exactly means. Quality is especially difficult to define, describe, and measure in services. While quality and quality control measures have long existed for tangible goods, few such measures have traditionally existed for services. In essence quality is determined by imprecise individual factors – perceptions, expectations, and experiences of customers and providers, and, in some cases, additional parties such as public officials.
In the year 2015, a study was conducted by Debasish & Dey on customer perception about the service quality providedby the luxury hotel in Odisha. The main purpose of was toanalyze the gap between the expectation and perception ofcustomers in the selected hotels Odisha. In this study bothprimary and secondary data were used.
The questionnairewas based on SERVQUAL method. 8 luxury hotels (3 star,4 star and 5 star) were selected under the study. Total 194respondents were selected as sample on the basis ofconvenience sampling. This was an empirical study. T-testand factor analysis were used in the study. They found thatmanagers of the hotels should know what customer want ifthey don‟t know then they can‟t meet and surpass thecustomers‟
expectations.
In the year 2014, a work done by the Mazumder & Hasan on the topic of service quality and customer satisfaction on the National Bangladeshi guest‟s and international guest‟s. The main aim of the paper was to find out the difference between perception and expectation of Bangladeshi guest‟s and international guests. Service quality model SERVQUAL applied in the study. Both primary and secondary data were used under the study.
Questionnaire divided into four parts in the study first part about the expectation of the guest, second part about the perception of guest, third part about the service quality affects on customer satisfaction and four part about the demographic and travelling characteristics of the customer‟s. Total hotel were 124 from big cities to small towns. Total 200respondents were selected as sample on the basis ofsystematic random sampling. Mean, standard deviation andt-test were used to analyze the data. They found thatBangladeshi customers give lowest score to responsivenessand international customer give lowest score to assurance.Both Bangladeshi and international customer give highestscore to the empathy dimension. Perception and expectationof Bangladeshi customers were higher than the internationalcustomers.
Borkar & Koranne (2014) studied the title “servicequality management in hotel industry”. Descriptive cumexploratory research design were followed in the study. Themain purpose of the paper was to find out the service qualityinfluence on customer satisfaction. Both primary andsecondary data were used in the study. For the purpose ofprimary data collection questionnaire and observationmethod were used. Hoteliers, front office staff andmanagement executive was respondent. Total sample sizewas 30 selected from the purposive sampling method. Datawas presented in the forms of tables. They found that everycustomer who visits to hotel was different so it was difficultfor the hotel to measure customer perception Batra (2014) in his study analyzed service quality of fivestar hotels in national capital region from customerviewpoint conducted research on 3 five star hotels namedhotel park in New Delhi, Country Inn in Ghaziabad, andLeela in Gurgaon. Total 600
1142 | P a g e customers were taken assample, 200 from each hotel. Sample was selected onrandom basis. Service parameters in this study was servicebonding, service security, service impressiveness, servicecustomization, service scape, service competence, servicecommunication, service recovery, service standardization,service accessibility, service competence, service timelinessetc. They found that service scape; service impressivenessand service competence was able to satisfied theircustomers. Service bonding, service timeliness, servicecommunication and service availability was not able tosatisfied customers.
Shafiq, Shafiq, Din & Cheema (2014) studied about theservice quality impact on customer satisfaction. This studywas performed in the Faisalabad, Pakistan. The main aim ofthe paper was to find out the service quality impact oncustomer satisfaction. They applied SERVERF model ofservice quality for the measurement and questionnairedevelopment. The sample selection basis was nonprobabilityconvenience method. Total sample size of therespondents was 100. Primary data collected throughquestionnaire. Questionnaire was divided into two parts firstpart included demographic information of the respondentsand second part included questions about service quality andsatisfaction of customers. Likert scale (strongly disagree tostrongly agree) were used.
Descriptive statistics, standarddeviation and mean were used to analyze the data. Theyfound that customers are dissatisfied with the empathy andtangible factors. Customers are satisfied withresponsiveness, assurance and reliability dimensions.
Banga, Kumar & Goyal (2013) studied about thecustomer relationship management in the hotel industry ofIndia. The main aim of the paper was to evaluate the howcustomer relationship management in hotel industry affectscustomer satisfaction and customer loyalty. All hotels inLudhiana were the population under the study.
Total 10hotels were selected 5 hotels were high/medium tariff and 5 hotels were low tariff on the basis of random sampling. Therespondent in the study was managers of the hotels.Structured, non-disguised questionnaire were used for thepurpose of data collection. Percentage, mean and two meant-tests were used to analyze the collect data. They found thatall managers know about the customer relationshipmanagement and high/medium tariff hotel contributed a lotfor the satisfaction of the customers in the other side lowtariff hotel contributed according to their convenience. Theyconcluded that with customer relationship managementhotels can leads to customer satisfaction. Customersatisfaction leads to customer‟s loyalty and retention. Thisresults in high profit and large market share for the hotels.
Purohit & Purohit (2013) studied about the customersatisfaction to customer delight in hotel industry. This papercovers how customer satisfaction concept changed in thiscompetitive market due to globalization and becomescustomer delight. Customer loyalty was vital for the everyorganization for success and customer loyalty can only beachieved when the customer delight. Customer can bedelighted when they get something extra what they expectedthen this will leads to the positivity of the hotel industry.
Abukhalifeh & Son (2012) studied about the servicequality management. This study was done on food andbeverage (F&B) department of hotels. The main aim of thepaper was to review service quality managementeffectiveness, service quality model and process forachieving customer satisfaction. This paper was based onsecondary data. They concluded that when customers aresatisfied with 5 dimension of service quality (tangibility,responsiveness, empathy, assurance and reliability) thencustomers are satisfied and become loyal for the hotel.
1143 | P a g e IV. FINDINGS
Service quality in Indian hotel Industry ITC HOTELS
At ITC, the management has identified „data capture vehicles‟ or „touch points‟ (as they call it) - like loyalty programs, reservation systems and call centers to maintain a data bank of their customers and to access the information as and when needed. This helps in providing quicker and more customized solution to queries and complaints, if any and also helps in building a rapport between the hotel executives and the customer which goes a long way in satisfying and retaining the customers, building a superior brand image and turning them into loyal patrons. Ultimately, this leads to measurable & substantial returns to the hotel.Other benefits extended to the loyal clients of ITC include Welcome Award, Welcomlink, Sheretonplus which are aimed at rewarding the regular clientele of their patronage and building a better relationship with them.
THE OBEROI
The brand value that The Oberoi has created for itself is a result of its consistent delivery of exceptional services to its customers. Traditionally, at The Oberoi, CRM and relationship management has been considered to be a single function, but to maintain its market share and fight the competitive situation, the marketing department at The Oberoi is now focusing on building co-operative and collaborative relationships with the customers with the result that they have a loyal patronage from their guests, and are, thus, able to charge a premium for the value given to the customers.The CRM programs at the Oberoi include The Oberoi Plus for the customers and also for the Bookers to motivate them.The Oberoi also organizes Food Festivals regularly and sends invitations to its regular clientele and the top CEOs, MDs and business people to further enhance the CRM functions‟
effectiveness.
THE TAJ
The Taj Group is also investing heavily on CRM systems to maintain customer databank with their profiles to give a quicker and personalized service to their loyal clientele. The Taj gives high priority to guest satisfaction.They even have an SMS service to keep track of lost/missed calls by the customers while they are away.They have employed applications like PMS, CRS and CIS to keep track of customers‟ profiles which includes information such as their spending patterns and their special needs also. They employ data mining technique to get and act on data and also give credit to the employees who get compliments from the guests.Other reward programs include Taj Inner Circle and the Epicure plan to give the customers a host of privileges as silver and gold card holders.
The challenge is to balance between the long-term goals and short-turn gains. Some key learnings are :
Long turn, profitable relationships can be built when both, the service provider and the customer, rise above the 'transaction' approach, and work in an atmosphere of mutuality and trust.
Relationships, like real life, goes through ups and downs, and it takes a great amount of maturity and courage to handle the 'lows'.
Relationships provide 'security'. Strategic bundling of services is a useful methodology in this context.
Top management must be committed to the relationship, as their example is followed throughout the organization.1144 | P a g e
Cross functional teams are required to meet the goals, especially where quick responses are required.V. CONCLUSION
A deep insight of the Hotel reveals that it is a business. It being a budget Hotel is in the growth stage is getting diversified in the areas of Hotel industry with a motto of being "Yours among friends" maintains a homely to the guest. In service industry like Hotel industry everything depends on the work force. Create differentiation at every point whenever products and services come in contract with the customer. By capturing the right requirements organizations can avoid failure of their relations to the customer. There in however no golden formula, the focus should be on capturing the right requirements.
In conclusion there is a positive relation between the service quality and customer satisfaction. If hotel meets or surpass the customer expectation about quality provided to them they fell satisfied. If there is positive gap between the perception and expectation of the customers for hotel it means hotel is doing well, but if there is negative gap between the perception and expectation of the customers for hotel it means there is a need of improvement in the service quality level. There are two types of services tangible and intangible. Almost all hotels are similar in tangible services according to their rating but the service which can win the heart of the customers is intangible services. If a customer fell special in the hotel then this thing contributes a lot in the satisfaction of the customer. Hotels should try to provide customized services to their customers.
REFERENCES
[1.] Baron, S. Davies, B., Gear, T. & Read, M. (2010) Measuring and managing service quality. Marketing Intelligence &Planning, pp. 1 33–40
[2.] Debasish DSS, Dey M. Customer Perception of Service Quality Towards Luxury Hotels in Odisha Using Servqual Model, International Journal of Research in Business Studies and Management. 2015; 2(9) [3.] Kandampully, J. A. (2013), Services Management – The New Paradigm in Hospitality, Pearson Education.
[4.] Mazumder S, Hasan ABMR. Measuring Service Quality and Customer Satisfaction of Hotels in Bangladesh: A Study on National and International hotel Guest, Journal of Tourism and Hospitality Management. 2014; 2(1)
[5.] Borkar S, Koranne S. Study of Service Quality Management in Hotel Industry, Pacific Business Review International. 2014; 6(9):21-25.
[6.] Batra M. Analysis Service Quality of Five Star Hotels in National Capital Region from Customer Perspective, Journal of Management Science and Technology. 2014;
[7.] Banga G, Kumar B, Goyal H. Customer Relationship Management in Hotel Industry, Pacific Business Review International. 2013; 5(12):71-81.
[8.] Purohit D, Purohit G. From Customer Satisfaction to Customer Delight: A New Trend in Hospitality Industry, Global Journal of Business and Management Studies. 2013
