CHAPTER ONE
INTRODUCTION
- BACKGROUND OF STUDY
The hotel industry is experiencing increased competitive pressures as a consequence of the combined effects of the worldwide economic and technological advancement, and globalization. The heightened competitive atmosphere in hotel operations has modified the service delivery ethos and intensified the need for research on service quality management that has the most significant strategic differentiation potential for achieving a sustainable competitive advantage. Furthermore, the increasingly knowledgeable and discerning guests are more eager than ever before to switch their allegiance to other companies perceived as providers of quality products and services (O’Neil 2001). As a result of competitive pressure, service quality management has emerged as a fundamental organizational strategy for survival. This provides the impetus and justification for current investment in service quality improvement initiatives (Hellstand, 2010).
Hotel is an establishment that provides paid lodging and feeding on a short term basis. The provision of a basic accommodation in time past consisted of only rooms, with modern facilities including a bedroom suit and air conditioning or climate control. Additional common features found in hotel room are a telephone, an alarm clock, a television and internet connectivity. Snacks, food and drinks are supplied in a mini bar and facilities for making hot drink available.
Service quality touches on all aspects of hotel operations including but not limited to; design and layout, menu planning, purchasing, furnishing, production and processing, packaging and delivery. Service quality has therefore emerged as one concept that has aroused increased interest both in the business world and in the academia. This has become increasingly in the hospitality sector where the goods and services offered are strikingly the same, thereby making service quality the only differentiating factor (Hellstand, 2010). Some of the characteristics of successful business organizations include presentation and constant improvement of qualitative services as well as formulation and implementation of new strategies that will aid its progression, and meet the expectations of customers (Zeithaml, Bitner, and Gremler , 2009); Bello and Majebi, 2018. Quality itself is conformance to specification, which would mean that positive quality is achieved when a product/service specific quality meets or exceeds preset standards or promises (Ekinci and Sirakaya, 2004). Service quality assessment is dependent on consumer needs and expectations, and it remains indispensable in the marketing of services.
The choice of hotels has become an issue among actual and potential lodgers on account of the premium they place on service quality. Since there are many hotels in the market providing the same or similar services, it is essential not only to attract, but also to keep the customer (Presbury, Fitzgerald, and Chapman, 2005). To maintain the position held and remain competitive in the future, quality services to retain old customers, and attract new customers need to be provided.
With an increasing dynamism and competitive nature of the business environment, it has become imperative for hotel organizations to pay attention to service quality and its improvement cues. Studies have shown that customer satisfaction, and loyalty are derivatives of service quality (Kamdampully and Hu, 2007; Chang, 2008, Belo, 2017). Thus, achieving customer satisfaction and loyalty can only come through continuous and sustained improvement in quality service delivery. The satisfaction and loyalty of customers have both direct and indirect impacts on the hotel industry (Kandampully and Hu, 2007). The loyalty of existing customers is paramount, given that the attraction of new customers is much more expensive than the retention of existing ones (Wong and Sohal, 2002; Jasinskas, Reklaitiene, and Svagzdiene, 2013; Balciunas, Jasinskas, and Koisova, 2014; Dabija, Dinu, Tăchiciu, and Pop, 2014).
Different strategies are formulated to retain the customer and the key of it is to increase the service quality level. Parasuraman et. al (1985) and Zeithaml et., al (1990) observed that the key strategy for the success and survival of any business organization is the ability to deliver quality services to customers. The quality of services offered will determine customer satisfaction and long term loyalty (Naik et al. 2010).
- STATEMENT OF THE PROBLEM
Some researchers have examined the quality of services offered in the hotel industry vis-a-vis the relative importance of various attributes to customers. Such attributes act as determinant factors for the hotel selection and preference and customers’ judgment upon service quality (Nadiri and Hussain, 2005). In Nigeria, there is limited documented evidence (Belo, 2017) of such a study, particularly in hotel operations.
The most central factor to sustainable competitive advantage is to provide the best possible service quality which will result in improved customer satisfaction, customer retention, and profitability Research has shown that dissatisfied customers will proclaim negative word-of mouth publication of his/her experience to eight to ten people about his/her experience. A service provider which does not deliver to meet the demands of its customers is likely to experience low patronage. It is therefore essential that service quality assessment which according to Codwell and Farrance is a means through which customers existing perceptions, expectations and priorities can be determined in order to improve on service delivery.
From all indications, it is evident that quality service delivery is very fundamental especially for the sustenance, growth and development of service sector business organisations (Rahaman et al, 2011). It works as a factor of customer satisfaction (Boshoff 2004). However, service quality has not been given the adequate importance it deserves in the hospitality industry in Nigeria.
Similarly, research findings have shown for instance that customer characteristics might influence service quality perception (Balciunas et al., 2014; Dabija et al., 2014). This means that customer characteristics might be defined or influenced by geographical location. Therefore, it is in an attempt to narrow these gaps that this study is carried out to determine strategies for optimizing service quality in hotel operations in Nasarawa State.
- AIMS AND OBJECTIVES
The main aim of the study is to examine the strategies for sustainable quality services delivery of hotels in Nasarawa. Other specific objectives include:
1. to examine the impact of strategies towards sustainable quality service delivery of hotels in Nasarawa State.
2. to identify ways hotels can improve on quality service delivery.
3. to assess guests expectation and perception level towards the hotel`s service quality in Nasarawa State.
4. to examine the effect quality service delivery has on hotel patronage and customer retention in Nasarawa State.
5. to identify the challenges towards achieving sustainable quality services delivery of hotels in Nasarawa State.
6. to proffer solution to the challenges towards achieving sustainable quality services delivery of hotels in Nasarawa State.
- RESEARCH QUESTION
1. what is the impact of strategies towards sustainable quality service delivery of hotels in Nasarawa State?
2. what are ways can hotels improve on quality service delivery?
3. what are guests expectation and perception level towards the hotel`s service quality in Nasarawa State?
4. what effect has service delivery on hotel patronage and customer retention in Nasarawa State?
5. what are the challenges towards achieving sustainable quality services delivery of hotels in Nasarawa State?
6. what is solution to the challenges towards achieving sustainable quality services delivery of hotels in Nasarawa State?
- STATEMENT OF RESEARCH HYPOTHESIS
1. H0: there is no significant relationship between strategies and sustainable quality services delivery of hotels in Nasarawa.
2. H1: there is a significant relationship between strategies and sustainable quality services delivery of hotels in Nasarawa.
- SIGNIFICANCE OF STUDY
It is an established fact that service quality has a significant relationship with sustainability just as having well formulated; articulated and feasible strategies can have a great positive impact on sustainable quality service delivery of hotels.
So therefore the performance of hotels depends heavily on how effective and qualitative there services are. This study will expose hotels’ management to the importance of using and maintaining effective and qualitative service delivery so as to improve their performance as well as formulating good strategies that help in sustainable quality service delivery.
In addition, this study would be significant as it will make employees of hospitality industry become conversant with the specific determinants of quality service delivery that will enhance the hotel’s performance in all areas and treatment of their customers.
Generally, this study would be important to hotels management and policy makers by providing insight and knowledge into the best ways of enhancing service quality as this study will expose them to areas of strength and weaknesses of the quality service dimensions. Also, hotels management will appreciate the fact that the right training of employees in terms of Service Quality dimensions will increase the commitment of hotel staffs which will be reflected in the service delivery to each customer that patronize the hotel and the outcome will also be customer satisfaction as well as improvement in the profitability and overall performance of the hotel. Hence, the outcome of the study will expose hotels management to the importance of delivering and maintaining superior service quality that will have considerable influence on financial performance of their organizations.
- SCOPE OF STUDY
The scope of study will cover strategies for sustainable quality services delivery of hotels in Nasararwa state (a case study of Karu LGA)
- LIMITATION OF STUDY
1. Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
2. Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
- DEFINITION OF TERMS
Strategies: Strategy is an action that managers take to attain one or more of the organization's goals. Strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future. Strategy results from the detailed strategic planning process”.
Sustainable: able to be maintained at a certain rate or level.
Quality Services: Service quality, in its contemporary conceptualization, is a comparison of perceived expectations of a service with perceived performance. Quality service is dealing with clients and customers in a respectful and helpful way
Hotels: an establishment providing accommodation, meals, and other services for travellers and tourists.
