Service delivery in the luxury hotel industry in Dubai:

A hoteliers’ perspective

Veronique Gregorec, Prakash Vel, Collins Brobbey

Presented By Dr. Prakash Vel

1. Introduction

Dubai serves over 75% of UAE visitors.

Dubai hotel industry projected to reach long term growth peak by period marking EXPO 2020.

About 40 hotels and 52 upscale luxury properties.

Year Hotels Room Capacity

2015 612 85,000

2016 752 115,000

2. Literature Review In service marketing a stronger held notion is:

“Customer need not always be right. Let the seller beware”.

Factors influencing service process in Luxury Hotels: Customer Service Expectations (Hall and Millburn, 2007;

Vigneron and Johnson, 1999) Service Delivery (Heskett, 1987; Ponsignon et al., 2011) Service Failure and Customer Complaining Behavior (Ekiz

et al., 2012; Lewis and McCainn, 2004) Service Recovery Strategies (Lewis and McCann, 2004;

Susskind and Viccari, 2011)

3. Research Methodology Data Collection Strategy: In-depth Interview

discussions.

Sample Respondents: 16 CEOs/ Hoteliers in the luxury hotel industry in Dubai.

Instrument Used: Discussion Guide.

Analysis: NVivo Data Analysis Software.

3. Research Methodology Definition of Luxury Hotel

Luxury hotels are traditionally associated with superior facilities and services (Presbury et al., 2005). Luxury is defined by a “wow factor” and is significantly different

from “effective functional hotel service delivery”.

Luxury Hotels offer a special “treat”, optimum service quality, luxury brand image, self indulgence and help

clients achieve optimum social satisfaction (Millbum and Hall, 2007).

4. Customer Expectations Customers look out of “the exceptional experience”

as the factor that defines luxury. This exceptional factor is usually superfluous and wasteful.

Service quality criteria are a constant in luxury service delivery in addition to location and personalized service.

Cultural background of customer have some association with customer expectations.

5. Service Process Location, technology, and physical aesthetics have

become a norm in the entire hotel service industry and is default in luxury service offerings.

Luxury service processes are dominated by “treats” usually taking the form of individualized roles played by the people element of the service mix.

The process is allowed room for customization.

6. Complaining BehaviorAccording to hoteliers, complaints are classified into

technical and behavioral aspects.

In order of severity, accidents, internet, service delays, and behavioral issues are most challenging to recover in that particular order

Arabs complained the more; complaints may also be depend on facility location and purpose of visit to hotel eg leisure or business trip

7. Service Recovery ProcessBehavioral issues are more difficult to recover than

technical issues as it is quite impossible to control the role played by “people”.

Customized, immediate and generous recovery measures are usually granted.

Recovery measures are influenced by gender, time of complaint, cultural background, and the capacity of service to address problem.

8. Future ResearchA study will be conducted with the consumers of

luxury hotels on the four main areas of:Customer ExpectationsService ProcessComplaining BehaviorService Recovery Process

The findings from the perspective of customers would be contrasted with that of the hoteliers to identify gaps between service providers and customer perceptions.

9. ReferencesEkiz et al., 2012; Hall and Millburn, 2007; Heskett, 1987; Johnson, 1999; Lewis and McCainn, 2004Marieke de Mooij, 2011Millbum and Hall, 2007Ponsignon et al., 2011Presbury et al., 2005 Susskind and Viccari, 2011)