Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Importance of service quality in hospitality
customer loyalty and relationships
Importance of service quality in hospitality
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Importance of service quality in hospitality
Introduction Customer loyalty has been an aspect within the hospitality sector that has been talked much about, with indications showing some of the benefits it has brought to such a sector. The much talked about aspect has been described as being the solution towards many of the mishaps that come about within the hospitality sector, with lack of clients being the main problem, and building loyalty within them being the major solution (Han & Back, 2008). This paper will aim to explore the influence of customer loyalty within the hotel industry. The paper will then proceed to identify some of the aspects that ensure customer loyalty within given customer segments as identified by the hospitality companies is maintained, with focus on the; service quality, levels of satisfaction and some of the strategies of attracting more customers. Such a concept to be investigated is one that is important to the hospitality industry, with the underlying facts of the importance customer loyalty has on their growth. Literature Review Various authors have argued that customer loyalty is an aspect within the hospitality industry that cannot be measured or in any way identified. Various dimensions have however been mentioned with attitudinal and behavioral aspects being the major concepts that can best describe the customer loyalty degrees in the hospitality industry (Han & Back, 2008). Various researchers have aimed to use the two dimensions of attitudinal and behavioral to best describe the customer loyalty aspects, with focus on such attributes of the way they react to services and satisfaction levels. Mainly categorization has been the main strategy within the two dimensions, with authors aiming to intentionally state the reasons as to why custom... ... middle of paper ... ...ithin the hotel industry, as used by many companies within the industry it has been one that has played an instrumental role in terms of consumer’s purchasing choice (DeWitt, Nguyen & Marshall, 2008). With customer satisfaction also playing an instrumental role towards ensuring hotels brand loyalty is maintained. Conclusion It’s clear that customer loyalty indeed to some extent has an influence towards the hotel industry, with the aspects such as the quality of service and customer satisfaction being the main factors which ensure an hospitality company maintains loyalty within its customers. The enticing customer’s strategies have well been laid out, with physical environment and fair prices and communication being the main attributes towards customer loyalty and ensuring the hotel industry are positively influenced by the increased customer loyalty levels.
When a customer is loyal he or she will definitely repeat purchase and even advertise your organization through word of mouth. Customer loyalty is the act of customers buying repeatedly as opposed to choosing those of competitors (Wyse, 2012). The impact of customer satisfaction on customer loyalty was showed in a study conducted by Mitchell (2004) who revealed a positive relationship between customer satisfaction and loyalty. Customer loyalty requires that firms or organizations meet their customers’ needs and demands in order to maintain a long lasting relationship (Campton, 2004). Coldburn (2013) also showed that satisfaction and loyalty goes together. The author indicated in his/her study that as far as customers expectation of a products or services are met, they remain loyal to the organization. An increase in satisfaction then lead to an increase in a company’s profits (Cacioappo, 2000).Eckert emphasizes that loyal customers according to are more likely to purchase or to recommend the purchase of a company’s products and services to someone else. The opposite is also true. Dissatisfied customers are likely to tell others the experiences they had with firms. Firms therefore will need to improve their customer satisfaction in order to grow loyalty and attract new customers (Agarwal,
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
Further recent study have also indicated that almost 64% of the effect of customer satisfaction on Malaysian hotel customer loyalty is derived through corporate image whilst only 34% of the effect on customer loyalty is influenced directly via customer satisfaction (Cheng and Md Zabid 2013). This is in line with the relationship significance in this finding which revealed a relationship of 43.8% between customer satisfaction and customer loyalty in terms of the Malaysian hotel
Noone, B. & Kimes, S. & Renaghan, L. (2003) “Integrating customer relationship management and revenue management: a hotel perspective”: Cornell University, Journal for Hospitality Research.
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.
The luxury hotel industry has become a significant segment of the general hospitality industry and is undergoing expeditious expansions. Hilton’s goal is to create value for its constituents, customers, owners and shareholders, employees, strategic partners, and the communities where each hotel is located-by delivering a consistent value
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...
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
This proposal is a case study about the causes of consumerism in hotel business in Australia. Case study will use interviews to gather data about consumer’s attitude and establish how hotels lure customers
... 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.
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.
Thanks to these factors, pricing becomes one of the primary uses with which hotels attract customers. However, due to customers’ independent nature, there influence over industry players is limited. In the high-end segment of hotels, price influence becomes even less as hotels find it easier to differentiate themselves from the competition and customers become less price sensitive coming to expect higher prices as a symbolism of superior quality and services. Lastly, corporate business and tour operators can exert more influence due to their large purchases but this affect is of a limited nature and does not extend across the whole
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
There are many description and theory of customer loyalty. We should research and compare which theory is suitable for our business.