PRESENTATION REGARDING STUDY ON SERVICE QUALITY IN HOTEL INDUSTRY

7/22/2019 PRESENTATION REGARDING STUDY ON SERVICE QUALITY IN HOTEL INDUSTRY

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AN EMPIRICAL STUDY ON SERVICE QUALITY OF

HOTEL RESORTS IN KODAIKANAL, TAMIL NADU

Ph. D Synopsis Viva Voce Examination

Presented by

L. ASID AHAMED

Research Scholar in Commerce

Research Supervisor

Dr. R. KHADER MOHIDEEN

M.Com., MBA., M.Phil., Ph.D.,Head, PG and Research Department of Management Studies,

Jamal Mohamed College, Trichy – 20.



Introduction

• The development of Indian economy purely

depends upon the growth of its various sectors

such as, agriculture (15%), industry (28.5%) and

service sectors (56.5%).

• Service sector shares increased from 33.5% in

1950-51 to 56.5% in 2012-2013.

• India’s GDP Share of service sector was US

$1322.7 billion.



Service Sector

• Among top 15 countries, India ranked 9th in

overall GDP and 10th

in Service sector.

• India’s Compound Annual Growth Rate stood

at 9.2 percent was second highest share next

to china.1

• Among the sub sectors, share of trade, hotels

and restaurants as a group is the largestcontributor to GDP with 25.1% 1

• 2-Economy Survey for the financial Year 2012-2013



Service Sector• Business Services

•

Communication Services• Construction and related engineering services

• Distribution services

• Educational Services

• Environmental Services

• Financial Services

• Health related Services

• Tourism and Travel Related Services• Recreational Cultural And Sporting Services

• Transport Services

• Other Services



Tourism and Hospitality Industry

• Tourism is presently the most important civil

industry in the world.

• The hospitality industry is second only to

the global oil industry in terms of turnover.

• the largest employer and employee

generator around the world.

• 10 percent of the world's work force is in

the tourism industry, and 10 percent of the

world's GNP comes from tourism.



Tourism and Hospitality Industry• India is the country best known for its

hospitality.

• In 2006 – 2007 revenues of hotel and

restaurant industry in India was 604.32 billion

and poised to grow a faster rate and reach826.76 billion by 2012 in terms of excellent

performance in balancing the demand and

supply of the hospitality industry by adding

1,20,000 rooms across different categories

throughout the country.



Tourism and Hospitality Industry

• Foreign Tourist Arrivals (FTAs) to India

increased from 5.17 million in FY09 to 5.78million in FY13, thereby resulting in a increase

of 11.8%.

• Number of domestic tourist visits in India

during 2012 was 763.21 million as compared

to 668.80 million in 2009, with a growth rateof 18.8 %.



Tamil Nadu GDP’s Share

•

Tamil Nadu is one of the leading progressivestates of the country with better socio-

economic indicators.

• The services sector grew at the rate of 11.2%during the Eleventh plan period with 64.7%

share in the Gross State Domestic Product

(GSDP) in 2011-123.

• 3. Tourism and Culture Department Policy note 2011-2012.



Tamil Nadu Attraction

• Tourists visit Tamil Nadu for business, pleasure

group, leisure and holidays packer throughoutthe year for its bestowed beautiful tourism

products such as ancient heritage, beaches,

waterfalls, dams, zoological parks, hill resortsand etc.,

• Here, in hill stations such as Ooty, Yercaud and

Kodaikanal were attract more tourist throughits natural beauty scenic who stay for three or

more days.4

•4. www.Tourism.gov.in

http://www.tourism.gov.in/




Glimpses of Kodaikanal• “a sanatorium at the top of Kodaikanal, the

southern ridge of the Palani hills more than7,000 ft. high".

• The word is formed from the two separate

tamil words Kodai means Valli and Kanal.kāṉal means a wood on a hill-slope, a dense

forest or a closed forest.

•

Recently, tourists and locals have labeledKodaikanal "Switzerland of the East", "Set of

Southern Emeralds", "Chilled paradise among

the Hills" and "Summer Heaven".



Glimpses of Kodaiakanal

• In 1821, the first westerner to visit Kodaikanal,

a British Lieutenant, B. S. Ward, climbed upfrom his headquarters in the Kunnavan village

of Vellagavi to Kodaikanal to survey the area

on the hilly ranges of Palani. His report of ahealthy climate in beautiful hills with

accessibility from Periyakulam encouraged the

early settlers.



Glimpses of Kodaiakanal• In 1872, Lt. Coaker cut a path along the steep

south east facing ridge which commends amagnificent view of the plains below. The

1 km (.6 mi) path was named after him

as Coaker's Walk . He is often remembered as"the man who prepared the most exceptional,

the most descriptive map of Kodai".

• In 1901, The first observations werecommenced at the Kodaiakanal Observatory.



Glimpses of Kodaiakanal• In 1909, when the Guide to Kodaikanal was

published by E.M.M.L., there were 151houses, "most of them anything but small and

ugly" and a post office, churches, clubs,

schools and shops.

• In 1914, the present ghat road was

compeleted and was subsequently improved.In 1989, the total length of the roads on the

hills was more than 45 km.



Glimpses of Kodaiakanal• In April 1915, Dr. Van Allen raised funds to

construct the first unit of the hospital at theentrance of Coaker's walk. It was named after

him. Facilities got updated from time to time

and now it has an X-ray machine, well

equipped pathological lab, and an operation

theatre with blood transfusion facilities.

•

Government Hospital was a small municipalhospital until 1927. Now it has X-ray, Dental,

Maternity ward and other facilities.5

• 5. History of Kodaiakanal - Wikipedia












Government Initiates & Researcher

Attempt

• For this purpose Tamil Nadu government

support the tourism & related industry such as

road transport, travel agency and hotels which

makes the place attractive and appealing to

the tourist.

• This made the researcher to conduct study inservice sector i.e service quality of hotel

industry in the study area.



Hotel Industry

• Evidence of hotels and the hospitality industry

have been recorded as far back as biblicaltimes when Mary and Joseph arrived in

Bethlehem during the census.

• When Mohamed(PBUH) travel for his businessto syria and other places.

• Since the beginning of time, people have

traveled for commerce, religion, family,health, immigration, education and

recreation.



Hotel Industry• The word “hotel’ is derived from the French

word hotel (the root word is hote, which

means ‘host’ or ‘townhouse’) with frequent

visitors.

•

inns and hotels began catering to the pleasuretraveler in an effort to encourage visitors.

• The word ‘inn’ has been in use since about

14th century and it was not until 18th century,that ‘hotel’ became fashionable.6

• 6. A Brief History of Hospitality Industry-Jacques Levy Bonvin

H l I d



Hotel Industry• Hotels (as well as other forms of

accommodations) are generally segmented by

the services and amenities offered. These two

factors, along with location, also have a

bearing on the price range.

• Budget Hotel with simple room provide basicsof places to sleep and shower.

• Business hotel offer a high standard rooms

equipped with what business traveller expect.

• Luxury hotel with lavish décor and

extraordinary service, amenities and

accommodation designed to impress guests.

H l I d



Hotel Industry• The department of Tourism had constituted a

committee, ‘Hotel and Restaurant Approval and

Classification committee for awarding the starcategory.

• There are five such committees – the Central

committees and four regional committees. Theclassification of 4-star, 5-star and 5-star deluxe hotels

is handled by the Central committee. The

classification and reclassification of restaurants,

heritage hotel, 1-star, 2-star and 3-star hotel byregional committees.7

•7. Hotels and restaurants - www.tourism.gov.in.











Conceptual Frame work• Service quality:

Grönroos (1984) maintained that customerperceptions of service quality should be

measured based on a comparison between

expected and perceived service, and be

therefore the outcome of a comparative

evaluation process.

• Parasuraman et al. (1988) studied on

dimensions of service quality (SERVQUAL) and

the studies have provided an extremely

valuable insight on measurement of service

quality.



L i d Mit h ll (1990) id tifi d i



• Lewis and Mitchell (1990) identified service

quality as an important indicator for customer

satisfaction and business performance

measurement. Barsky and Labagh 1992; Walkerand Braunlich 1996, Service quality is

instrumental in increasing customer satisfaction,

doing more with less, reducing costs, increasingsales, and enhancing repeat purchases.

• Baker and Fesenmaier 1997; Iglesias and Guillen

2004. The hotel industry has long focused onensuring service quality at all levels as a

differentiation tool to establish competitive

positioning and to improve return on investment.



• Mohsin and Locker (2010) also assessed the

service quality perception of customers of

luxury hotels in India. They provided anopportunity to recognize, in ranking order, the

features that are considered important by the

guests staying in luxury hotels.

• Recently service quality dimensions were

extended by David Garvin. They are as followsPerformance, Features, Reliability,

Conformance, Durability, Serviceability,

Aesthetic and Perceived Quality.





Customer Satisfaction• Satisfactory experience may affect customer

attitude and his or her assessment ofperceived service quality. Thus, satisfaction

with a specific transaction may result with

positive global assessment of service quality.Other authors argue that service quality is

antecedent of customer satisfaction (Churchill

and Suprenant, 1982; Anderson et al., 1994,

Oliver, 1997; Oh, 1999; Zeithaml and Bitner,

2003; Jamali, 2007)



• Customer satisfaction is defined as the

customers’ evaluation of the serviceencounter based on their expectation and

actual performance (Tse & Wilton, 1988).

• Weiermair (2000) concludes the customersatisfaction is either achieved or fails, when

‘expectsions cannot be met, the difference

between reality and expectations have to bereconciled’ and customer satisfaction

positively affects business profitability (Luo

and Homburg 2007).

Customer Satisfaction

B h i l I i



Behavioral Intention • Direct and indirect relationships between

quality, satisfaction value and repurchase areexamined (Cronin and Taylor, 1992; Cronin,

Brady and Hult 2000).

• Service quality emerged as an importantdeterminant of customer satisfaction and

significant impact on behavioral intentions of

customers (Choi et. al. 2004), Vijayadurai(2008) indicated service quality is an driver of

customer satisfaction and behavioral

intentions.

STATEMENT OF THE PROBLEM



STATEMENT OF THE PROBLEM • Hotel industry has been focusing on

developing measures and offering servicequality to meet the customer’s expectation.

• Besides, as customer loyalty depends largely

on customer satisfaction, excellent in servicequality is a key to achieve customer loyalty.

• To achieve this, understanding the concepts of

service quality, perceived service quality,

customer satisfaction and behavioral intention

of hotel industry is essential in this

competitive environment.



STATEMENT OF THE PROBLEM • What is the objective of hotel industry?

• How do hotels offer their service to sustain

the customers?

•

What are the factors affecting and influencingthe customers of star and budget hotels?

• What are the significant predictors of service

quality and overall satisfaction?



STATEMENT OF THE PROBLEM • To address the above questions, the

researcher focuses on identifying the factorsthat enhance customer satisfaction level

which is influenced by service quality and

perceived value of Kodaikanal hotels.

• The results will provide insight for people to

understand the role of those variablesincrease satisfaction level which will, in turn,

leads to guest loyalty.



SCOPE OF THE STUDY • This study aims at finding out the guest

behavioral intention over the star and budgethotels of kodaikanal, Tamil Nadu.

• Several factors such as gender, age, education

occupation, income, and marital status whichare responsible for guest satisfaction in

selecting their preferable hotels, which can

fulfill their needs and provide them comfortand feel pleasure.



SCOPE OF THE STUDY

•

The reasonable price, staff courtesy,willingness to help, politeness, safety and

security are to be offered to sustain the

customers in the competitive environment.

• This study is an attempt to analyze the service

quality, perceived value, guest satisfaction,

and behavioral intention of clients of

kodaikanal hotels.

• Hence this study falls under service quality

assessment in hotel industry.

OBJECTIVES OF THE STUDY



OBJECTIVES OF THE STUDY • To identify the dimensions of service quality in the hotel

industry.

• To determine the relationship of service quality towards

overall guest satisfaction and behavioral intention.

•To examine the moderating role of perceived servicequality between service quality and guest satisfaction in

the hotel industry.

•

To determine the type of relationship of guestsatisfaction towards behavioral intention in hotel

industry.



HYPOTHESES • Each dimension of service quality has no

positive effect on perceived value.• Perceived value has no positive effect on guest

satisfaction.

• Perceived value has no positive effect on guestbehavioral intention.

• Guest satisfaction has no positive effect on

guest behavioral intention.



RESEARCH METHODOLOGY • This study is empirical in nature.

• To prepare questionnaire and collect the data,

pre-test of the questionnaire and pilot study

were carried out to verify face validity and

reliability of the variables.

• The main study was conducted with a

questionnaire to collect the informationregarding personal, demographical and

opinion on services rendered in hotels.



RESEARCH METHODOLOGY

• The study investigates the relationship among

variables of service quality, guest satisfactionand behavioral intentions.

• A respondent must have stayed at least onetime as guest in any one of the kodaikanl hotel

in order to become a respondent of the study.



Sampling design • The target population of this study is tourist

arrived at kodaikanl as tourists.• The sample is 720 guests who stayed from

April 2013 to September 2013 in star and

budget hotels of kodaikanal.• There are 42 listed hotels with lodging

facilities which includes one 5-star hotel, four

4-star hotels, fourteen 3-star hotels, two 2-stars, eight budget hotels, two Home-stay

hotels and remaining eleven non star hotels.



Sampling design

• Only six 3-star hotels and six budget hotels

were selected for the study.

• Finally, only 600 fully responded

questionnaires were selected for analysis by

using stratified sampling method.

• It means, the respondent rate was around

83.33 percent of total.

Data Collection



Data Collection • The study used both primary and secondary

data. Primary data were collected through the

structured questionnaire and secondary data

were gathered from refereed journals, articles,

publications, magazines and Websites.

• Perceptions of respondents were measuredon the five point Likert scale from strongly

disagree (1) to strongly agree (5).

Demographic variables such as, gender, age,education, occupation, income and marital

status were chosen and relevant information

gathered.



Pilot Study • A pilot test was undertaken to ensure the clarity of

the questionnaire.• The schedule was administrated with 50 tourist

guests.

•

The result of reliability test indicates that all of theconstructs satisfy the standards and hence, the

schedule was finalized for main survey.

• The schedule consists of eight demographic variable

queries and 38 constructs of service quality,perceived value, guest satisfaction and behavioural

intention.

•



Data Analysis Method



Data Analysis Method • Multiple Regression Analysis was applied to

determine the relationship between service

quality and overall satisfaction, behavioralintention.

• ANOVA tool was used for analyzing the

variance among the means of three or more

groups of demographic variables and service

quality. Thus all these tools were applied totest the significance of hypotheses framed in

the study.

LIMITATION



LIMITATION • The researcher selected only 600 guests as

sample size from one hill station of Tamil Nadui.e. Kodaikanal.

• The researcher does not target the guests

stayed in 2-star and 5-star hotels.• Just 46 items including, personal factors,

dimensions of service quality, perceived value,

overall satisfaction and behavioural intention

of guests were considered, there could be

some other relevant items.



LIMITATION

•

Therefore, bias may exist, so, it provides scopefor future research by considering more

factors that influence the relationship among

service quality, guest satisfaction and

behavioral intentions.



CONCLUSION

• Chi-square test exposed that, the associations

between the personal factors and service

quality are more significant. F-Test and t-Test

were used to identify the equal variancebetween demographic variables and

dimensions of service quality.



CONCLUSION

• The variance was found significant among

others. Regression analysis prove the

significant relationship between service

quality, perceived value, overall satisfactionand behavioural intention.

CHAPTER SCHEME



CHAPTER SCHEME • Chapter I:

Introduction and design of the study

Deals with prelude of hotel industry and

methodology of the research work.

• Chapter II:

Profile of hotel industry

Discusses profile of hotel industry

CHAPTER SCHEME



• Chapter III:

Service quality in hotel industry –

AConceptual Overview

It enlists the research studies previously

undertaken with Articles and Publications. Italso explains the concepts of service quality,

perceived value, customer satisfaction and

behavioural intention.

CHAPTER SCHEME

CHAPTER SCHEME



• Chapter IV:

Service quality in hotel industry – An Analytical

Overview It deals with descriptive statistics of demographic

variables and analysis of independent variables in

relation to service quality dimensions, perceived

value, customer satisfaction and behavioural

intention.

• Chapter V:

Summary of Inferences

Discusses about inferences, suggestions,

conclusion to enhance the service quality of hotel

industry.

CHAPTER SCHEME

REFERENCES



REFERENCES • Berry, L.L., Zeithaml, V.A. and Parasuraman, A. (1990):

‘Quality counts in services,too’, Business Horizons, 28

(3), 44-53.• Cronin, Jr. J. J., Brady, M. and Hult, G.T. (2000):

‘Assessing the Effects of Quality, Value and

Customer Satisfaction on Consumer BehavioralIntentions in Service Environments’, Journal of

Retailing, 76 (2), 193-218.

•

Garvin, D.A. (1983): ‘Quality on the Line’, Harvard Business Review , 61 (5), 65-79.



REFERENCES •

Gronroos, C. (1984), ‘A Service Quality Modeland Its Marketing Implications’, European

Journal of Marketing, 18 (4), 36-44.

• Vijayadurai, J. (2008): ‘Service Quality,

Customer Satisfaction and Behavioral

Intention in Hotel Industry’, Journal of

Marketing & Communication, 3 (3), 14-26.

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PRESENTATION REGARDING STUDY ON SERVICE QUALITY IN HOTEL INDUSTRY