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analyse the benefits of branding and brand loyalty
the evolution of the hospitality industry
hotel employee loyalty and customer loyalty
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I. Statement of Problem
Hospitality and tourism have evolved into truly global industries are dispersed worldwide. Due to changes in lifestyle, the services offered by hospitality businesses are now considered to be necessities. Consequently, during the past decade, there has been an exponential growth in hospitality businesses to meet the demands of the growing market. Today, hospitality organizations are faced with intense competition. Hence, in the scheme of business, it has become apparent that the ultimate goal of any organization in a hyper- competitive market, is to maintain a loyal customer base. It is essential for any hospitality organization to seek opportunities to gain a competitive advantage by adopting various strategies.Thus, hospitality firms should develop proactive strategies to gain customer loyalty, as opposed to relying on pricing strategies to attract new customers. Customer-supplier relationship, and the resulting loyalty of the customer, can be assumed to be necessary prerequisites for any firm to prosper in the competitive market. Management thinker Peter Drucker (1973:79) wrote, “to satisfy the customer is the mission and purpose of every business.” Thus, for many years, business organizations have focused on customer satisfaction programs (Bhote, 1996). It is now becoming apparent that it is no longer customer satisfaction, but customer loyalty, that constitutes the dominant factor in the success of a business organization. The increasing sophistication of customers’ demands also poses a challenge to the development of customer loyalty in the service industry (Kirwin, 1992). Modern consumers demand high-quality products and services and exhibit a low tolerance for products and services of mediocre qual...
... middle of paper ...
...al Journal of Contemporary Hospitality Management, 19,
296–308.
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Myongjee, Y., & Bai, B. (2003). Value Creation: The Impact of Strategic Alliance on Customer Loyalty. Journal of Quality Assurance in Hospitality & Tourism, 8 (2), 45-65.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York, NY: McGraw-Hill, Inc.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), pp. 12-40.
The Gaps Model of Service Quality was originally developed for application in the financial service sector. The model was designed to measure components of customer satisfaction by using five dimensions of real or potential gaps in service quality of a hotel (Saleh & Ryan, 1991). The model has been applied to hotels, as well as a number of service agencies, including banking, hotels, restaurants, and healthcare. Even though the services differ greatly, the model is easily adapted to any service industry (Parasuraman, Zeithaml, & Berry, 1985).
Purchase behavioural helps companies to develop an effective strategy for their products. Figure 4 categorises the purchase behavioural with profitability. Furthermore, attitudinal loyalty is a significant factor for the future profits of companies. They want to know exactly which customers have high relative attitude and other crucial facts. The customers’ attitude analysis is presented on figure 5. Companies are using CLV (customer lifetime value) as it is a method, which can combine all elements and data of customers’ loyalty, behaviour, attitude and help them to increase their profitability (Kumar and Shah, 2004). Gregg is a model o business which loyal and returning customers is vital part of its stability and future development. However, Greggs is a hospitality brand, which has specific characteristics as far as sales and customers’ range are concerned. It has more than 1600 brunches on high street and urban areas. The majority of the brunches are aiming to serve local and tourist customers. Thus, they want returning customers for the local scale operations and for the tourist they are interested more for big and success brand advertisement for
The hotel industry performs within a saturated market, driven by customer loyalty and competitive pricing to stand-out. This competitive nature makes it extremely important to capitalise on strengths while improving on
Furthermore, as Holjevac et al (2011) says, customer satisfaction may have the direct and indirect impact on business outcome, which means the business profitability will affect by the customer satisfaction (Anderson et al, 1994, Yeung et al, 2002 and Luo and Homburg, 2007, cited in Holjevac et al, 2011). Thus, it is very important to meet customer expectation to satisfy the customer. Wu and Liang (2009, cited in Markovic et al, 2010) claims that the service quality in the restaurant consists of three main elements, environmental elements like lighting, materials, design; employees, knowledgeable, professional; and customers, inter...
There is much truth to the above statement; therefore achieving customer satisfaction is an important basis to any business organisation, especially hotels.
As tourism industry has been increasing dramatically during the last two decades, hotel industry is at war. In global competition, hotel chains are required to offer not only standardized facilities, but also standardized services. To meet the different needs of customers in each individual country while maintaining the same standards of services, global marketing strategy plays a critical role. Being a leader in upscale hotel chain industry, The Ritz-Carlton Hotel took a unique path to compete with its rivals.
... level. Factors such as the quality of customer service and customer loyalty have gained much importance over the last decade and have become amongst the most important factors to the success of retail organisations. Major retailers are constantly striving to identify new schemes to maximise customer loyalty and new ways to identify customer’s desires. This paper has provided a critical analysis specifically aim at explaining factors such as customer loyalty and how it could be maximised and how the quality of customer service could be maximised. From my research its evident that quality control is critical in achieving the best customer service possible in turn leading to customer satisfaction which leads to customer loyalty. Consistent appraisal of customer service quality is something what should be done to maintain & improve the customer service quality levels.
Traditionally, customer loyalty is divided into two components; the first component is based on behavior and the other on attitudes (Time varying effects in the analysis of customer loyalty, 2011). It is considered as a crucial point for many business organizations (Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program, 2009). Customer oriented companies will attract and develop loyal customers (Chang & Chen, 2007), since it is a vital element for the existence of operating companies (Chen & Hu, 2010). The success of companies their revenues are guaranteed by customer loyalty, which can be influenced by the style in management (Customer retention, loyalty, and satisfaction in the telecommuncation market, 2001).
Because, internet today is enabling web-based suppliers an opportunity to meet a choice of different types of customers (Schoenbachler&Gordon, 2002) and has evolved as a feasible distribution channel for the firms that wish to expand their market penetration (Frazier, 1999; Frazier & Antia, 1995), reduce costs (Payne & Frow, 2004), increase revenues ( Kotler, 2000), spread risks, and strengthen customer loyalty (Kelly, 2002) through its use (Hobmeier, 2001).now most of the hotels are using the multiple channel strategy where they are in partnership more than one sales and distribution channel to serve the same target market and this has grown in the recent years. This is creating higher complexity for the hotel management as the data are coming from different partners. As customers, today are using multiple channels, it is almost certain that the future will remain to contain a mixture of even more complex channels (Balasubramanian , Raghunathan, & Mahajan, 2005). Since now, it is obvious that why hoteliers employing multiple channels including electronic ones, is no different; to maximise customer awareness and market share and reduce costs, this increasingly widespread trend to cooperate with new channels rather than stick to
Businesses that have been successful retaining the business of their loyal clients have shown in time to consistently increase profits from their client data base. The impact of customer loyalty is impossible to lose. This white paper will analyse not only the meaning of customer satisfaction, but also some of the things that businesses need to consider in order to clearly define, measure, and merge this concept into ...
... never achieve a good customer relationship in addition to raise revenue at the same time while doing help other management teams in order to gain their company maximum revenue over different periods of time. The essay makes it simple to understand that while revenue management specializes in short-run revenue maximization along with taking care of very good customer relationship will probably gain within extended revenue maximization, they might both move in hand. The truth is, taking on in order to revenue management techniques in a hotel makes it easier regarding hotels to understand their particular dedicated along with trustworthy customers that will create extended revenue and so permit hotels to provide a lot more focus on these within serving their particular customers correct without lacking incomplete on the providers offered to various other guests.
Many businesses now comprehend the fact that satisfying customers with constancy and loyalty is not sufficient to make customers stick to their product and services but rather delight and please them which is only achievable when the customer is totally satisfied (Blackwell, Miniard, and Engel, 2006).
This report describes the term known as Corporate Hospitality, identifies and describes its role and function within the market. The purpose of the report is to evaluate and explain possible benefits and issues, businesses may face when operate within the industry.
We recommend Vikram to use service quality framework (SERVQUAL) as a scale to measure and manage hotel guest’s perception of service quality in terms of five dimensions (session2 slide#45), which are (i) Reliability – OV employee’s ability to dependably and accurately perform the promised service to consistently delight its guests (ii) Assurance – Knowledge and courtesy of OV employees, and their ability to convey trust and confidence. (iii) Empathy – OV’s individualized attention and customized care it offers to its guests and understanding the customer to anticipate guest needs, wants and desires to enlighten the service. (iv)Tangibles – Refers to OV’s lavish tents and other physical facilities, equipment, pleasant appearance of OV personal, etc. (v) Responsiveness – OV’s willingness to help customers and provide prompt
As the marketing consultant for a hospitality management company, it is often my responsibility to define target markets for various restaurants and hotels. In fact, I have been tasked with creating a fictional hospitality operation, to utilize as an illustration to define a marketing strategy and target market. In addition, I must identify and analyze the product life cycle of an organization that has been in business for a minimum of twenty-five years.