1.0 Background of study/Introduction
Hotel industries are tough competition. Customer knows what they want and what they are looking for. They have high expectation on the hotel that they wanted to stay and a place to spend their vacation and quality time. Therefore, the services that were offered must give good impression to the customers. This research will look at the outcome of loyalty program that affected by the service operation of the Hotel Management. It also investigate what makes the customer want to stay loyal and what are the preference that customer are looking for. The question is, does this loyalty program influence by the service operation and does the customer satisfied with the treatment given. Customer also aware of that they
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Customer retention statistics are typically expressed as a percentage of long term clients, and they are important to a business since satisfied retained customers tend to spend more, cost less and make valuable references to new potential customers.
1.2 Scope of study The main scope of study is about the influence service operation to the loyalty program and the outcome in the hotel management. This research will be conducted in Kuching, Sarawak area.
The hotels that I will look into are the three star hotels in Kuching. This is because, the three star hotels also has the potential on having a good loyalty program management.
The targeted respondents are mostly the hotel customer. This is because, the researcher needed to investigate the perception of the customer on the loyalty program and what are their opinion on how to improve the service quality.
1.3 Research problem
• The effect of service operation toward the outcome of loyalty program.
• Implication of loyalty program and services experiences for customer retention. 1.4 Research
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).
The aim of proposed business is to provide quality services and good experience of hotel to the large number of tourists. The business will make both the company and the client happy because the core feature of the business is to provide best and cost-effective services and products to the person who needs it. This will also help is generating a high amount of revenue, which is one of the main ...
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
There is some evidences to prove that hospitality culture is significant to the hotel organization. The First aspect, hospitality culture can improve the hotel services level and increase the turnover level. Mattila (1999) and Stauss and Mang (1999) argued that the customer estimate the service would depend on hospitality culture.The hotel has strict discipline to manage the staff, and staff must comply with the institutions during their working time. According to Martin and Lundberg(1991), Bennigan's is a America restaurant chain, it created research to find out why consumers did not come to their restaurants. The consequence is that only 15 per cent of consumers did not satisfied with the food, but 67 per cent of the consumers are dissatisfied with the staff's attitude. For instance, customers receive satisfying services, so they will remember these services and want to receive those services again next time. Although this is not enough to evaluate the results of a hotel service, it can make a good impression in customers’ minds.
The hotel’s value of the company is to maintain family and friendly environment, which is become a culture. The downside of
All five star hotels possess features and facilities that are capable of customer satisfaction. However, certain five star hotel chains have a competitive edge over their rivals. This is because they are able to differentiate themselves in a meaningful manner with their customers, leading to customer delight. For example, superior reservation systems, excellent room service and an excellent ambience. The essence of customer delight is exceeding customer requirements on a continuous basis.
Hilton is one of the top seven prefessional business hotel in U.S.A. There are two unrelated companys running Hilton brand-Hilton Hotels Coprporation(HHC) at California and Hilton International(HIC) near London in England. In 1997, the both of them agreed to launch Hilton HHonors loyalty program at their hotels for sales and marketing. In 1999, the head of Hilton HHonors, Jeff Diskin, read an article headline, “Hotels raise the Ante in Business-travel Game”. Known, the main competitor Starwood Hotel and Resorts International had raised its’ cost 50 million for advertising campaign. The competitor’s programs will help to increase and maintain more business travellers and increase whole industry cost.
Chief amongst them is the goal of delivering a first class customer experience, which you shall achieve by recruiting and developing the best hotel management/support team, to ensure your hotel runs as effectively and efficiently as possible.
In 2012, Boonying Kongarchapatara & Randall Shannon in their paper, ‘Investigating the Effectiveness of a Loyalty Program Through the Relationships of Program Design, Implementation, and Customer Loyalty’ emphasize on the factors which affect the customer loyalty programmes through their design and implementation phases.
The Hotel industry has become very important in the past years due to immense traveling and growth of international business. Hotel industry not only plays an important role in the life of people but as well as the economy of the country. Development and advancement in the Hotel industry have rapidly been taking place and especially since the rapid change in technology, it is very important for hotels to be promptly keeping up to date. When the hotel industry is spoken of, there are many famous hotels but one hotel company that has been outstanding in growth and other aspects of business, like in Leadership, Teamwork (Employee turnover), Motivation (Customer retention and satisfaction, Goals and objectives, (changing the way hotel business has worked), and Change within the company; structurally inside and physically outside, adding elements, like entertainment, gaming, and outdoor activities, is the Hilton Hotel Company.
Many researchers support causal relationship between service quality and customer satisfaction (Woodside, A. G., Frey, L. L., and Daly, R. T, (1989). Service quality is considered as the antecedents to customer satisfaction. According to the Cronin and Taylor (1992), service quality appears to be only factors contributing to the customer satisfaction judgments. Spreng and Mocoy (1996) also provide supports for service quality as an antecedent to
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
The main concept of brand loyalty has been approached from three different factors which is behavioral, attitudinal and composite loyalty. The researchers have their own assumption or known as behavioral view which they assume that the loyalty of a guest toward a brand is based on the repeat transactions occur. The study of O’Malley (1988) show that this approach provides a more realistic picture on how well the brand is performing compare to other competitors. However, this approach have been criticized because unable to differentiate between spurious loyalty and true loyalty.
To study the association among the service quality, customers’ satisfaction and customers’ loyalty in the retail industry.
Task 1: Critically evaluate the key concepts/theories on the topic of the effectiveness of loyalty programmes on customer loyalty