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Services in Hospitality sector

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LITERATURE REVIEW

Significance of quality service in the hospitality sector

As per view of  Mehra and Ranganathan (2008) in the modern era due to raise in level of competition it has become difficult for every organization to sustain in the market for longer period of time and it is having adverse impact on the business performance. Further, the services offered by every hospitality organization in the market is close substitute of each other due to which every firm has to employ effective strategies so that overall performance in the market can be easily enhanced with the help of this (Mehra and Ranganathan, 2008). Moreover, every business has started to focus on quality where main stress is on delivering high quality services to the target market so that large number of customers can be attracted through this.

However Ali,  Dey and  Filieri (2015) argued that  quality plays most significant role in the entire hospitality sector and without considering this factor no consume prefers to buy the range of services being offered to them. Further, need and requirement of every customer differs from one another and for every hospitality enterprise it is necessary to understand actual requirement of target market. For enhancement of quality different tools are undertaken by companies and this directly assists in accomplishment of long term goals along with objectives (Ali, Dey and  Filieri, 2015). Apart from this, to enhance satisfaction level of target market is not at all easy for hospitality companies and it has become major issue regarding the ways which can be employed for enhancing quality level of the major services. Every customer perceives quality in different perspective and before purchasing hospitality service it is ensured by target market whether quality level is up to the mark or not.

According to Tsoukatos and  Rand (2007) by enhancing the quality in service hospitality firm provides remarkable experience to the customers and in turn they can be attracted towards range of services for longer period of time. Moreover, at the time of promoting range of services every hospitality enterprise highlights quality and through this it is represented that services of organization are capable enough of meeting with the actual requirement of the customers (Tsoukatos and  Rand, 2007). Generally quality services are offered to the customers in the form of comfortable room, convenience, friendly environment, high quality food etc. This encourages target market to purchase the hospitality services on continuous basis and in turn enhances satisfaction level of the customers which is regarded as one of the main aim of every company behind carrying out overall operations in the market. As per view of Choi and  Kim (2013) without offering appropriate quality service it is not at all possible for hospitality companies to comply with the need of its target market and in turn firm has to deal with sustainability issues in near future (Choi and  Kim, 2013). Further, to gain competitive advantage by delivering quality service is easy for firm and dealing with challenges present in the external environment becomes much easier for organization.

As compared with past perception of consumers have changed over a period of time as in past consumers does not perceive quality as significant factor but at present quality is regarded as one of the most crucial factor without which no individual purchase hospitality sector. The changing market trend is allowing more companies to indulge into the practices through which level of quality can be enhanced easily and through this business can become leader in the market (Webster and  Sundaram, 2009). Further, it is well known fact that every consumer has some sort of expectations from hospitality firm and same can be met when quality services are offered to the customers. In case if target market does not receives expected treatment then overall efficiency of business reduces through this which will adversely affect company in near future.

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However Nadiri and Tanova (2010) argued that identifying service quality dimension assist firm in understanding, measuring and gaining information regarding the need and requirement of target market (Nadiri and Tanova, 2010). When quality services are offered to target market on continuous basis then it represent that requirement of target market is kept on priority and this encourages customers to repurchase the services of hospitality organization on continuous basis. Further, to assess the quality level of the service various dimensions are present which every consumer considers such as reliability, tangibles, responsiveness, assurance, empathy etc. By considering all these dimension it becomes easy to assess the real gap between customer expectations for excellence and their perception in relation with actual services delivered to the target market. As per view of Tarí and et.al. (2010) to enhance the satisfaction level of target market service marketing plays crucial role in the hospitality sector and this has supported in attracting large number of customers towards the range of services. One of the major significance of quality is to win credibility and to get repeat customers and this objectives are accomplishment when efforts are applied by enterprise in offering acceptable quality service to the target market (Tarí and et.al., 2010).

This directly leads to positive results such as rise in sales volume of organization along with positive impact on brand image of business. Positive mouth to mouth publicity is regarded as one of the real outcome of delivering high quality service and in turn has positive impact on business. According to Markovic and Raspor (2010) services can be easily differentiated in the competitive market if they are of high quality and in case if service differentiation is not present then long term survival becomes difficult for business in the modern era. Further, company can build its unique position in the market by focusing on quality aspect and the outcomes of this are beneficial for the business in every possible manner (Markovic and Raspor, 2010). Moreover, in case if target market is having positive perception towards the services of company then it can be said that they are satisfied with the service and vice versa when customers perceive range of services negatively. Therefore, in this way enhancing quality in the level of service assist organization to grab large number of opportunities present in the market and in turn it becomes easy to deal with the major challenges present in the business environment. Apart from this, company can retain its loyal customers for longer period of time and provides ample of opportunities.

Link between quality service and customer satisfaction

Their exist direct relationship between quality service and customer satisfaction as rise in quality of service enhances customer satisfaction and vice versa. As per view of Hyun (2010) when any business enterprise applies larger efforts in delivering acceptable quality service to the target market then it has positive impact on business where majority of the customers prefer to repurchase services on continuous basis (Hyun, 2010). Further, to meet with the expectations of target market is must for business and its absence can be adversely affect performance of company in the competitive market.

In short without knowing actual requirement of customers business cannot survive in the market for longer period of time. According to Crick and Spencer (2011) the service quality dimensions are effective in every possible manner where reliability is considered as important one which involves the ability of business to perform the promised service accurately, responsiveness which is associated with providing support to customers, assurance is associated with knowledge courtesy of staff members, empathy is linked with caring individualized attention which is provided to customers and appearance is the last dimension which is associated with overall appearance of physical facilities (Crick and Spencer,  2011). All these dimension represents that how target market organize information linked with service quality in their mind.

Enhancement of quality in service provides opportunity to business to satisfy need of large number of customers and their demand can be met easily. However Chen and Hu (2010) argued that quality is regarded as most important factor in the modern era without which target market cannot be influenced to buy the range of services. Further, when customers perceive that quality of service is not up to the expected level then it has adverse impact on brand image of company. Moreover, organization has to invest large amount in enhancing quality of service but the overall benefits obtained by offering high quality service are more as compared with the overall funds allocated. On the other hand, every company applies higher effort in ensuring whether its target market is satisfied with the services offered or not (Razi and et.al., 2012). Further, the measure of success of business depends on the overall capability of business to satisfy need of target market.

This in turn acts as development tool for organization and to determine the quality level customer satisfaction is one of the most significant criteria. Moreover, satisfaction reinforces positive attitude towards the brand and it can be ensured that service of same brand will be repurchased by target market or not. Therefore, it is beneficial for organization in every possible manner and has positive impact on the brand image of business. Apart from this management of quality service in the hospitality sector is also important where time to time it is ensured by top authorities of enterprise that level of quality maintained is acceptable from customers’ point of view and in this way level of customer satisfaction can be enhanced easily by business (Cook and Marqua, 2014).

As per view of Zaibaf, Taherikia and Fakharian (2013) majority of companies in the hospitality sector as dealing with the survival issue ad sometime they does not focus on quality which leads to shut down of operations. Further, quality is considered as the ability to anticipate and satisfy the need of the target market on time and in efficient manner. Successful companies operating in the hospitality sector differentiates itself with the help of quality service and it allows them to gain competitive advantage (Salazar, Costa and Rita, 2010). Apart from this perception of customers towards hotel matters a lot in the hospitality sector and due to this reason quality as a factor is necessarily considered for the accomplishment of desired aims and objectives of the firm. At present in every hospitality organization training is provided to staff members so that they can work as per quality standards and through this need of the target market can be satisfied in efficient manner. Further, quality plan is developed on continuous basis and it assists organization in meeting with the expectations of the target market.

However Kandampully, Juwaheer and Hu (2011) argued that to provide remarkable experience to guests in the field of hospitality quality service is most important. Guest experience takes into consideration different elements which are service product, serving setting and service delivery system. Services offered by every organization are consumed on the spot and it is not possible for target market to take home the range of services offered by hospitality companies. Therefore, it is beneficial for the hospitality enterprise to know whether they are offering appropriate services to the target market or not. Due to rise in level of competition, modification in the service range is must and by considering the same long term objectives of the business can be met easily (Kandampully, Juwaheer and Hu, 2011). Further, guests arrive in specific hotel or restaurant with some sort of expectations and same can be met by business if appropriate tools for enhancement of service are employed. Apart from this consumer decision making process is complex in nature where large numbers of factors are considered by target market at the time of taking decision to purchase the particular service.

As per view of Han, Kim and Hyun (2011) one of the most important concept in service organization is the cost of quality and it represents the overall cost of delivering quality service to the target market. In case if management of the enterprise considers costs of fixing errors, lost customers, compensating guests for failure then efforts can be easily applied on delivering quality service which is above expectation level of the target market in every possible manner. Hospitality enterprise may perceive quality and value by offering a guarantee or pledge of satisfaction and in case if overall expectations of the target market are not met then business is adversely affected due to this (Han, Kim and Hyun, 2011). Further, their exist positive relationship between quality and overall cost employed in enhancing it. In case if business applies larger efforts in enhancing quality of its service then more funds have to be allocated in the same. No doubt, its benefit is highly effective for the business and has positive impact on the brand image also which is one of the main aim of enterprise.

Factors affecting customer satisfaction in hospitality sector

As per view of  Lovelock and Wirtz (2010) large number of factors are present which affects customer satisfaction in hospitality sector. Further, it is necessary for every hospitality company to focus on all the range of factors which are considered before purchasing hospitality service. Price is regarded as one o the most crucial factor affecting customer satisfaction where consumers ensure whether the service offered to them provides them value for money experience or not. In short if high prices are paid by target market for purchasing hospitality service then their expectations will be high from company (Lovelock and Wirtz, 2010). Therefore, it is necessary for business to ensure that prices are set by them keeping in view the purchasing power of the target market and through this they can enhance satisfaction level of the target market.

Other crucial factor is quality on which entire hospitality sector depends as when quality of service is kept high then more customers can be easily attracted towards the range of services. Quality level can only be judged if customers are consuming the hospitality services on continuous basis which is profitable for the organization also. However Caruana, Money and Berthon (2000) argued that taste and requirement of every consumer differs from each other but quality as a factor is considered to be most significant by every individual at the time of taking decision regarding purchase of hospitality service.

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Overall behavior of employees within the organization also influences level of customer satisfaction as in case when staff members quickly responds towards the need of target market then satisfaction level of customers enhances and they prefer to purchase services on continuous basis (Poku, Zakari and Soali, 2013). Therefore, management of every enterprise provides training to the workforce so that they can build stronger relationship with the target market and brand loyalty can be easily increased with the help of this (Caruana, Money and Berthon, 2000). Service feature is also one of the key factor which affects satisfaction level of target market. Every customer considers the feature of the service being offered and through this it is known how the service purchased is different from those of competitors in the market.

As per view of Akbar and Parvez (2009) overall layout and ambience of hotel influences customer satisfaction as when layout and internal design of hotel is unique then it assist in providing remarkable experience to the target market and business can easily become leader in the market. Due to this specific reason, every hospitality firm focuses on development of unique layout so that large number of customers can be easily attracted towards this. Without considering quality, price and other factors no company can survive in the market and it sometime leads to situation when firm has to leave market due to ignorance of actual requirement of the target market (Akbar and Parvez, 2009). Moreover, higher is the customer satisfaction then higher is the sentimental attachment of target market with specific brand or service which is being offered by company. Therefore, in this these are some of the most important factors which influences level of customer satisfaction and is fruitful for business also.

Benefits of quality service to hospitality firms

According to Al- Rousan, Ramzi and Mohammed (2010) delivering quality service to the target market provides large number of benefits to the business where rise in sales volume along with profitability level is major one. When quality level is above expected level then consumers prefer to repurchase the services on continuous basis and this has positive impact on the sales revenue of business. Rise in customer base is also one of the main advantages as when customers are satisfied with the quality level being maintained by business then it leads to brand loyalty and assist business to sustain in the competitive market for longer period of time (Al- Rousan, Ramzi and Mohammed 2010). One of the main aim of every firm is to retain its loyal customers and for the same quality as a tool is adopted and this encourages target market to allocate more funds in purchasing services of the enterprise. As per view of Markovic and Raspor (2010) benefits of enhancing quality in the hospitality sector is more as compared with cost and this is one of the main reason due to which quality improvement practices have been employed by each and every business so as to obtain long term benefits.

Positive impact on the brand image of organization is one of the main advantages of enhancing quality level and it leads to positive mouth to mouth publicity. Further, when ay organization in the market employ tools for enhancing quality level then it becomes easy for management to build its brand image in the competitive market and it acts as development tool for the entire business (Asirifi and et.al., 2014). This advantage is effective for business and assist in dealing with long term challenges present in the business environment. Apart from this, rise in market share of enterprise is also one of the main benefits of raising quality of the service where organization does not have to apply efforts in increasing its market share and this objective can be easily accomplished by focusing on the quality level of service which is delivered to target market.

According to Cook and Marqua (2014) business can become leader in the market by setting quality standards and allows to better respond towards the changing needs along with requirement of target market. Further, the rise in number of challenges in the market such as competition etc can be easily dealt by business by focusing on quality as one of the major tool. In short, through this hospitality firms can accomplishing the main objective of enhancing customer satisfaction and in turn target market will not at all prefer to buy services of other hospitality companies operating in the market (Borkar and Koranne, 2014). Moreover, it can be one of the main reasons behind success and growth of companies in the market where operations are being carried out.

REFERENCES

  • Akbar, M. M. and Parvez, N., 2009. Impact of Service Quality, Trust and Customer Satisfaction on Customer Loyalty. ABAC Journal. 29(1). pp. 24-38.
  • Al- Rousan, M., Ramzi, H. and Mohammed M., 2010. Customer Loyalty and the Impacts of Service Quality: The Case of Five Star Hotels in Jordan. International Journal of Human and Social Sciences. 5:13
  • Caruana, A., Money, A. H. and Berthon, P. R., 2000. Service Quality and Satisfaction- the Moderating Role of Value. European Journal of Marketing. 34(11/12). pp. 1338-1352.
  • Chen, P. T. and Hu, H. H., 2010. How determinant attributes of service quality influence customer-perceived value: an empirical investigation of the Australian coffee outlet industry. International Journal of Contemporary Hospitality Management. 22(4). pp.535-551.
  • Cook, R. A. and Marqua, J. J., 2014. Tourism: The Business of Hospitality and Travel. Pearson Education.
  • Crick, A. P. and Spencer, A., 2011. Hospitality quality: new directions and new challenges. International Journal of Contemporary Hospitality Management. 23(4). pp.463-478.
  • Han, H., Kim, W. and Hyun, S. S., 2011. Switching intention model development: Role of service performances, customer satisfaction, and switching barriers in the hotel industry. International Journal of Hospitality Management. 30(3). pp. 619-629.
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