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Importance of services
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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 competition in the hospitality industry is increasing. Hilton and Intercontinental Hotels are of same class, offering same quality services; this is making each hotel to face very high threats of substitute products. For model, in the absents of Hilton, Intercontinental will satisfy the customers’ needs perfectively and the same time, if Intercontinental is absent, Hilton will satisfy the needs of the customers perfectly.
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.
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
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
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
Customer retention refers to the activities and actions companies and organizations take to reduce the number of customer defections. The goal of customer retention programs is to help companies retain as many customers as possible, often through customer loyalty and brand loyalty initiatives. It is important to remember that customer retention begins with the first contact a customer has with a company and continues throughout the entire lifetime of the relationship.
Hotel uniform “personalization, on a basis of the hotel as a whole”, may be the future trend of the hotels which aim to have distinct market position and segmentation in a way of impressing the guests (Ariffin, Nameghi, & Soon, 2015, p. 780) with localized stay experience. Competition between multinational luxury hotels, especially in Hong Kong, a small but well-developed region with stable society, high public security and social prosperity where being a renowned and popular destination for business and leisure guests, is fierce. Most of the global hotel brands can be found in Hong Kong, The Ritz-Carlton, The Grand Hyatt, Shangri-la as well as JW Marriott, to name but a few. To be remarkable and impressive among the competitors, intangible uniqueness appears to be more prominent to thrill the guests (Osman, Hemmington, & Bowie, 2009).
One of the principal functions of any act of Hospitality industry is to consists of the front office, resorts, motels, inns, gusts house ,membership clubs, car rental, convention s, attractions, special events, and other services for travelers and tourists’ .in addition hospitality is regarding by serving the guests to supply them qualified services. accommodation divided in to two dimensions: services accommodation consists where meals are provided such as hotels and gusts house and self catering accommodation that consist of apartments where the occupants provide their own foods .The first and the important occupation of hospitality industry is to establish a relationship otherwise to encourage exchange of the goods and services , between those who give hospitality (hosts) and those who receive it (guests) ( Faulkner& Russell 2000) .
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 definition of customer retention is the number of customers doing business with a firm at the end of a financial year expressed as percentage of those who were active customers at the beginning of the year. Besides, for customer development is the process of growing the value of retained customers.
The hotels are small to medium sized and offer more facilities than a one star hotel. They also include some business hotels where one can expect comfortable and well-equipped accommodation with bath/shower room in all guest rooms. Reception and other staff are more professionalized than a one star hotel. They offer a wide range of services inclusing food and drink.
The research has been carried out using the research method discuss in chapter 3 methodology. The research method is interviewing the manager of the fine dining restaurant to find out how is service quality used in the restaurant and what are the point of view of the restaurant manager. The data show how restaurant manager deal with the delivery of service quality, all the data has been manually transcribed by the researcher and arrange what the manager think about service quality, why customer value is very important in the any business.
In the hotel industry with a certain service satisfy to customer needs. It was different and includes the different of customers as well. It is based on the theories of Maslow. That divides the different needs of people, from basic needs to the highest demands. This, in the hotel industry had been variety of services that reflect the level of customer needs. In each hotel have a wide variety of structures and designs vary. In order to meet the needs of customers. This will include a safety and convenience for the customers. The main aim of every person is a basic need be to stay and sleep. But there will be an increase in the level of demand. Some people want to stay for activities such as staying in exclusive resorts. In some people want to come for business travel. And their position in society as an individual, their want to stay in type of room differently.
There are many description and theory of customer loyalty. We should research and compare which theory is suitable for our business.