SERVICE QUALITY AND
CUSTOMER SATISFACTION
IN HOTEL INDUSTRY
Prepared by: Mr. Joshua B. Laxa
Introduction
•Satisfying the customer is a never ending
process.
•The ultimate aim of satisfying customer
is to retain them, because customer
retention directly reflects on the
hospitality industry profit.
Who is customer?
•Is the person for whom all facilities and
activities have been designed and carried
out.
•Is the specific recipient of the hospitality
services who also acts as judge with respect
to the quality of the product and service
provided.
Satisfaction
• Satisfaction is primarily an emotional condition.
• And secondly a rational assessment.
What is customer satisfaction?
•Interaction of customers’ personal
standards, education, culture
experience with the characteristics
and qualities of the product or
service.
Customer satisfaction benefits
• The hospitality industry strives to be conscious about
customer satisfaction because their intention is not only
to send the customer away happy but also to have them
come back and utilize the product or service again.
• Thus,satisfying the customer in all respects has to be
the prime focus of the hospitality industry and has
become highly essential to improvement of the
business.
Factors influencing customer
satisfaction
•Three factors that drive guest
satisfaction and loyalty;
1. Trust
2. Transparency
3. Togetherness
Major considerations for improved
customer satisfaction
• Measuring the loyalty and satisfaction of the customer
• Linking
the goals, strategies and vision of the company
or organization, so as to be more focused on the
customer
• Authorizing and completing the improvement projects
• Setting up metrics for employee recognition and rewards
• Managingthese activities with proper program
management techniques
Strategies for improved customer
satisfaction (4c’s)
1. Communication – talking to customers will help them to
express their opinions.
2. Cost to satisfy needs – the additional cost spent to acquire the
satisfaction of customers generally not high compared to the
cost of providing basic service.
3. Customer needs – guest/customer needs have to be met and
their satisfaction has to be maintained.
4. Convenience – making the service more accountable, so that
the customer will voice his or her concerns.
Customer loyalty
• Richard (1996) defines customer loyalty as “A deeply
held commitment to re-buy or re-patronize a
preferred product or service consistently in the future
despite situational influences and marketing efforts
having the potential to cause switching behavior”.
• Customer loyalty pays the hotel industry in terms of
value, word of mouth recommendation, and frequent
visits to hotel and price insensitive purchase.
Customer satisfaction increases
customer loyalty
• The ultimate aim of satisfying customers is to retain them,
because customer retention directly reflects on the
hospitality industry profit.
• The understanding of the correlation between customer
satisfaction and loyalty has led to the need for improved
service/business performance.
• Customer satisfaction is considered to be at the heart of
customer retention and hence customer satisfaction has to
be improved.
Factors that affect the loyalty of
customers
• Customer satisfaction and service quality
• The brand name or image of the hospitality industry
• Customer value towards a company
• Differentiable services
• Being accustomed to a hospitality industry
• Competitive market conditions
• Rewarding customers
Conclusion
• Due to increasing competition in the hospitality industry, it is
essential the prime focus is customer loyalty and customer
satisfaction to ensure repeat customers.
• Accommodating customers expectation and desires are the
strongest business generators and the means to ensure customer
retention
• Ata time of increased competitiveness, the hospitality industry
should be prepared to make changes that take into consideration
customer satisfaction, thereby fulfilling customers needs and
desires.
