Table of Contents

1. Introduction ......................................................................................................................................... 2
2. Literature Review: .............................................................................................................................. 3
3. Customer Service: ............................................................................................................................... 4
3.1 Services: ....................................................................................................................................... 4
3.2 Customers: ................................................................................................................................... 6
4. Quality of Customers Services: .......................................................................................................... 6
4.1 Quality of Service:....................................................................................................................... 7
4.2 Expectations of Customer: ......................................................................................................... 7
5. Approach: ............................................................................................................................................ 8
References:................................................................................................................................................... 9
Appendix: .................................................................................................................................................. 13
Table 1: .................................................................................................................................................. 13
Table 2: .................................................................................................................................................. 14
Table 3: .................................................................................................................................................. 14
Table 4: .................................................................................................................................................. 14
Table 5: .................................................................................................................................................. 15
Table 6: .................................................................................................................................................. 15
Table 7: .................................................................................................................................................. 15
Table 8: .................................................................................................................................................. 16
 1. Introduction:
The competition in hotel industry is getting hard as it has developed much from the last few
decades. There are different forms of competition in the hotel industry but thethe UKmain focus
is on providing best customer services. Of course providing good quality rooms and food matters
a lot in the success of hotel industry but as the competition is getting tougher, the main focus of
hotels is on the overall satisfaction of their customer. In this study we are going to find out how
much a customer satisfaction affects the overall hotel experience and how poor customer services
can lead to poor hotel experience of the customer. Customer satisfaction is a very critical factor in
the success of any type of business (Gronoos, 1990; Parasuraman el al., 1988). Valdani (2009) also
says that the existence of enterprises is only because they have a customer to take care of. Therefore
the only way to succeed is to provide a good quality service in order to satisfy the customers
(Shemwell et al, 1998). Both customer satisfaction and service quality play a very important role
in order for an organization to retain its customer. To achieve customer satisfaction it is very
important that you take care of all the customer needs. The organizations that closely monitors and
fulfills the customer needs quickly achieve greater profits in comparison to the organizations that
are unable to fulfill the requirements of their customers (Barsky & Nash, 2003). It is not easy to
attract new customers and even if the new customers are attracted, its cost is higher than to retain
the existing customers. It is the duty of managers to take such measures that help to keep the
existing customers, and that is only possible if the managers ensure the satisfaction of the
customers.
Maintaining the customer satisfaction is not as easy, as it looks and sometimes it is hard to fulfill
all the desires of the customer. This is because of the reason that the quality of services and
products is increasing in the tourism industry and it is becoming more professional (Lam & Zhang,
1999; Yen & Su, 2004). One way to increase the return rate of the customers is to maintain the
guest relationship. Nowadays it is becoming very important to retain long-term relationship with
the customer and hotel because it increases the satisfaction levels of the customers.
All the major Hotel chains have now realized the importance of the customer satisfaction and
therefore have increased their investments in this particular area. It is because of the reason that
the customer satisfaction leads to the loyalty and good relationships between hotels and customers.
The hotel industry in the UK is blooming and lots, of new hotels, are coming in business.
Obviously, we cannot focus on each and every one of them. Our focus will remain on the Mandarin
Oriental Hyde Park Hotel present in UK. Mandarin Oriental Hyde Park Hotel is part of the
Mandarin Oriental Hotel Group which was established in Hong Kong in 1963. Mandarin Oriental
Hotel Group. We will analyze the factors of customer satisfaction by using a qualitative
methodology in the scenario of Mandarin Oriental Hyde Park Hotel UK. As it is one of the UKs
finest and top hotel, we will look forward to seeing how they achieve maximum customer
satisfaction and how their hotel makes a long-term relationship with the customers. We will use
the techniques of semi-structured and structured interviews that will provide us insights into both
customers and hotel management. This study focuses on the different interviewing methodology
that will revolve around the customer influenced business philosophy. We will also highlight the
gaps that are present in managers to evaluate a customer expectation for any kind of specific
service that the hotel is providing to them. At the end of this research, we will give the results of
our findings and will give suggestions in order to improve the customer satisfaction level in hotel
industry.

2. Literature Review:
In old times, it was believed that tourism is only an outcome of a countrys natural environment
and its cultural resources. Therefore it was not considered that there is any influence present in
providing high-quality services to the customers but it was just a game of limited supply of
essential services to the tourists. According to Le Blanc & Nguyen (1996), it was suggested that
the efforts of marketing should only be used to natural environmental characteristics of a location
that will alone attract new customers to that location. However the increase in the demands of
tourists services and search for high standards by the tourists has forced the hospitality suppliers
to increase the standards of their services otherwise some rival hospitality supplier will acquire
their customer.
In this case, the provision of good quality services to the customers and raising the customer
satisfaction are both considered the fundamental factors that are involved in the success of the
tourism and hotel industry (Barsky & Labagh, 1992; Le Blanc, 1992, Opermann, 1998). The hotels
that provide good quality services will definitely earn more profits (Oh & Parks, 1997). In the case
of a competitive hotel industry, each of the hotels must provide better services to their customers
and must raise their level of satisfaction in order to capture more customers (Choi & Chou, 2001).
In order to obtain loyal customers and to beat their competitors, hotel providers need to get the
highest levels of the satisfaction of their customers. Different studies highlight the tourist's
preferences. The degree to which the customers find hotel facilities and services critical are defined
by a researcher (Wuest et al. 1996). These attributes are price, security, cleanliness, physical
attractiveness, relaxation opportunities, service standards, reputation as perceived by travelers,
personal service (Knutson, 1988; McCleary et al., 1993; Wilensky & Buttle, 1988).
Barsky & Nash carried out a survey in 2006. The survey was about the major chains of hotels from
all over the world. The survey was done from 2002 to 2005. According to the survey, the
introduction of the loyalty program by hotels increased the stay of the customers from 32% to
34%.
Tourists are always in search of a new location to travel but many studies show that there are some
customers who want to repeat the destination of their holidays. Doing this shows some loyalty
(Oppermann, 1988; Fyall et al., 2003). There are five main factors that have some impact on the
repetition of going to the same place again:
1. There is a chance that they will meet same persons again, with whom they spent good time
and memories
2. The emotional attachment to a specific place
3. The fear of making a mistake while visiting a new or alternative location
4. To explore the place in a better and broader way
5. The desire to guide the people about that place
Hotel owners must know have to know the factors that are most important and influence the
customers choice more than any other factors (Richard & Sundaram, 1993). If customer
satisfaction practices are executed perfectly, it helps to identify the most important elements that
affect the customer's experience of before and after the purchase of a product or a service and can
also get the benefit of the word of mouth (WOM) publicity. If a customer is satisfied with the
services he will give positive WOM without any type of cost for the organization. This publicity
has much larger impact than other types of publicities. Nowadays customers can give reviews on
the internet about the services and quality of any hotel in the form of reviews or comments. The
customer also gets to choose the level of satisfaction that he acquired while making use of a
particular service of a hotel.
To build the loyalty of the customer, most important factor is customer satisfaction which results
in a long-term relationship between the customer and the hotel. This also improves the overall
corporate image of the organization. This also has to be kept in mind the unsatisfied and angry
customer is very dangerous of an organization and can generate negative WOM that can even
result in the contribution of more than 1000 people. A study has shown that a mere 4% of the
unsatisfied customer lodge complains against the organization that results in the generation of
more negative WOM.
Therefore it is important to look for a single attribute which has the highest important in view of
the customer in the selection of hotel and also to remain updated about the satisfaction levels of
the customer, both are very important. Meanwhile, research must also be done to the satisfaction
of the customer on whether they are going to return to the same hotel again for their stay or whether
they are going to recommend the hotel to other tourists as well is important in order to succeed in
the hotel business. In case if these attributes are somehow neglected, it is imperative that customers
will give negative reviews for the hotel.

3. Customer Service:
To understand the Customer Service. First we need to understand the customer. A customer is a
person who is visiting us and it is not correct that a customer is dependent on us. Rather we are
dependent on the customer. A customer is not someone who interrupts us in doing our job. Because
of him, we have a job. A customer is not outside the scope of our business, in-fact he is the most
important part of our business. There is no favor being given to the customer by serving him. In
reality he is giving us a favor by letting us server him. All these words came from a great man
Mahatma Gandhi, decades ago. This describes a customer and a person who is there to serve him.
In this section we are going to figure out what a customer service really means and how can be
achieve a good customer service.

3.1 Services:
Services have some unique features that makes them different from physical goods. According to
Christian Gronroos: There are three most important and main features that a service contain. One
is that service is a process. A process contains different activities in which different resource has
to be used. These resources contains physical resources, humans and the system for the direct
involvement of the customer. A service tries to provide a solution for a customers problem. There
are also some parts in a service that are not visible to the end customers. But here the most
important parts of the service are those that are visible to the customers (Gronroos, 2009).
Gronroos also describe about another unique feature of services. According to him, services are
something that are produced and consumed at the same time. As the services are produced and are
then consumed at the same time, therefore it is not possible to regulate the quality of the service
before they are bought. It has to be kept in mind that a consumer will first analyze the parts of the
service that are visible to him in depth. The invisible parts of the process can only be analyzed by
looking at the final results in detail. Different service providers, provides services simultaneously
and have different ratio of service production and consumption. The third feature is that consumer
is not only consuming the service but is also a part of system that is being used for the production
of the services. Therefore he has a direct role in service production and delivery. That is why we
can say that the customer is not only the participant for creation of the services but also its co-
producer.
Though these three features are main features that separates goods from the services. But there are
other features present too that make services distinctive from physical goods. According to
Gronroos, services cannot be stored in a place. We can take the example of an airplane that left the
airport and is at its half capacity. The seats which have no customers are those that were lost on
that day and those seats cannot be saved for another time or day. Services are intangible too. They
can also not be checked before you actually use them for the first time. Though services are
intangible but still they are perceived in a subjective manner. Services are intangible but there are
some features of a service that are very much tangible. For example the hotel bed and the food
served in a restaurant. But still you cannot just touch these services. You are only just touching
something that is a part of service but not the service itself. The intangible character of service
makes them hard for the customers to evaluate. There is also another feature of a service, which is
that a service can neither be provided exactly the same to different customers.
 Figure 1. Important Characteristics of Service

3.2 Customers:
In a traditional environment, customer are generally assumed to be outsiders and therefore they
are called as extern customers (C.Gronroos, 2009). Another definition of customers is that they
are organizations or people due to which a company performs its activities. There is also another
way to describe a customer. Customer are those because of which company or organization is
providing services. This makes it very clear that without the presence of customers, a company
does not exist. In every organization there is always a customer present for which the company is
doing its work. In this way company tries of earn maximum profit and the customer wants to get
the services he wants. If there are no organizations, there will be no customers and vice versa.

4. Quality of Customers Services:

Every enterprise want to retain its customers and the only thing they can do to make it sure is by
serving their customers in the best possible way. As all the organizations know that it is essential
to give good customer services to make more profit therefore most of the time the quality of the
customer services provided are either average or good. But the top organization have to give
extraordinary services in order for them to stand out from the rest of the organizations. Here the
most important thing is to find out how we can achieve highest quality of the customer service.
4.1 Quality of Service:
The main concern of all the organizations is to provide good quality services and only in that
case they can move forwards to achieve outstanding customer service. There comes a problem
when the service providers suggestion may not be according to the customers perception.
According to Gronroos, the quality of the service must be according to the customers
expectations. The organization may think that it is doing the right thing and providing quality
services but the organization must understand that it is the customer who has to decide whether
the quality is good enough for him and if its not than what are the changes that are required in
the provided services.
The services are perceived as subjectively. These are the process in which both the production
of services and their consumption is happening at the same time. The process contains the most
important factor that is known as moment of truth. This factor has the most important role
in the perception of the services in the minds of the customers. There are two ways to measure
the quality of the service according to Gronroos. One is technical quality and the other is its
functional quality. The technical quality focuses on what part while the functional quality
works on how part. It is also to be kept in mind that the experiences from the past also have
an effect on the quality perceived.

Figure 2: Service Quality Model

4.2 Expectations of Customer:

If an organization want to be on the top. It has to know what customers expects them to do
and what kind of services customers want from them. It has to be kept in mind that the
expectations of the customers are linked to the previous experience they had. Customer
always compare their own experiences with what they had expected. In case if the customers
expectations gets high and organization fulfills it. The expectations will go higher. If the
organization does not focus on the expectations of the customer. Their expectations will not
fulfill and in that case the organization may lose its customer.
 To become successful the person giving the service must always give something extra to the
customer so that they feel that they are important to the hotel and also feel about the better
services provided by the hotel.

4.3 Moment of Truth:

If we talk about the customer service provision, there are some areas that are more important
than other areas. Moment of truth is one of that area. The quality of the service must be
determined or judged according to the person to which the service is currently being
provided. This is called moment of truth.

5. Approach:
It is important to measure the customer satisfaction level correctly in the hotel industry so that we
can take suggestions from the customer. It is important to know that every customer has his own
expectations about the services provided by the hotel. Therefore it is very important to not only
know the aggregated expectations of customers but also know their expectations individually. The
hotel management should take input from customers about their services and on the basis of their
input should determine the expectations of customers clearly. It is also essential to determine the
needs and the requests made by the customers, so that they can be served in a better way. The gap
between the services provided by the hotel and the expected services by the customers must have
to be narrowed down. Hotel management must run the hotel like with proper system in place.
The loyalty of customers can be easily measured with the help of their behavior and attitude. These
variables must have to be monitored carefully.
For the analysis part, we performed a survey of the Oriental Hyde Park Hotel that is present in UK.
In this survey we used both the methodologies of desk and field research.
First of all we began with the desk analysis and performed a survey of customers and hotel
managers. The information obtained from both managers and customers was cross checked after
that. Following steps were performed after that:
We visited the official webpage of the hotel and analyzed the information present on it. To make
sure that the hotel is providing right information to the customers.
Interviews were done with the hotel managerial staff in order to confirm that the management has
a customer oriented philosophy.
About 100 customers from the Hotel were given questionnaires by using the approach of Critical
Incident (Hayes, 2008)
The focus of the Critical Incident Approach is to extract information from the customers regarding
the goods and services they used in the past. This is an approach that can be used for both staff and
customers.
We used a semi-structured interview and submitted to the customers. An interview guide was also
prepared using the desk research that was done with the help of the official website of the company
and its promotional campaign.
In a semi-structured interview, the methodology of flexible interview is used. This methodology
allows us to add questions at the time of the interview in addition to the predefined questions.
These questions are added in response to the interview answers. This enables the flexibility in the
interview and it is helpful to focus on a particular requirements of a customer. This requirement
may not have been discovered by the hotel management at all. Common word incidents are then
grouped together and are later used in the incident statement. All of these elements are applied to
detect the most important customer requirements regarding the quality.
We interviewed about 100 customers using the Critical Incident Approach with the help of semi-
structured interviews and the customers were asked about 5 positive and 5 negative things or
aspects of the services that were offered to them at the Hotel. On the basis of the result we find
out that the five positive aspects of the hotel are: Great Room Service, spacious rooms, clean
bedsheets and comfortable beds, family like atmosphere, quality of food served. The five
negative aspects that were found are: high prices, disturbance because of ongoing maintenance,
additional charges for extra services, less staff and transport service quality.
After performing the survey we used the semi-structured interview and we asked for the quality
of each of the service that was offered to the customers and we did this with the help of same
customers. On the basis of it we identified about 50 expression that the customers used to explain
about the services they received. (appendix table 1). We used this information in order to
measure the customer satisfaction level for all the services that were provided to the customers.
In order to confirm the approach of the hotel management and see if they are using a real
customer oriented approach we compared each service that the hotel is providing with the
perception of quality the customer has in mind and the services the customer requires. This
information of customer preferences is already obtained through the interviews and
questionnaire.

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Appendix:

Table 1:
Quality of Services
General Transference Reception Hotel Room Restaurant Tours Entertainment
1. 11. good 15. 18. not 24. 30. Some tour 44. Staff is very
Good overall transfer Good enough Excellent food prices are high good 6)
experience service (68) service at space for 4 quality & (9)
arrival (54) people (3) service (21)

2. There is a 12. Very 16. 19. Room is 25. Cafeteria 31. Tour 45. Many
place good hotel Reception bit facilities are facilities are entertaining
specially for transfer service at expensive good (5) good (37) activities are
kids (24) service (21) arrival is (28) present (3)
very
good(32)
3. Various 13. 17. Good 20. Overall 26. Huge 32. Tours are 46.
services are Transference staff room is good variety of food very well There are lots of
offered (19) facilities are present at (11) items available arranged (66) choices present for
satisfactory reception (24) Entertainment stuff
(12) (44) (23)
Location of 14. 21. 27. 33. Expensive 47.
the hotel is Transport Managerial Restaurant tours (3) Good entertainment
Answers
ideal (28) services are staff at standards are (69)
costly (23) reception are up to the mark
helpful (5) (12)

Suitable for 22. Shortage 28. 34. Tours are 48.

families of staff of Very well wonderful (3) Good quality
(21) room service management of entertainment
(42) restaurant (67) present (31)
Some 23. 29. 35. Tours are 49.
rooms are Everything is Buffet dinner is started very early Entertainment
small (11) perfect (12) good(19) (21) personal are very
good (25)
Expensive 36. I dont 50. Entertainment
travelling like to go on for kids is good (29)
services a trip (35)
(16)
Room 51. Disco facilities
cleaning is are good too (5)
done nicely
(9)
 Room 52. Hotel
are management cares
equipped for the kids (9)
with
necessar
y sockets
(4)

Table 2:
OVERALL QUALITY OF SERVICES

Conclusion Excellent Average/ Poor

Good
Customer 2,4,5 1,3 6,7,8,9,10
Expressions
Total Answers 73 27 42

Table 3:
TRANSFERERENCE SERVICE PROVISION

To Hotel From Hotel

Conclusion Excellent Average Poor Excellent Average Poor

/Good /Good
Customer 12 11,13 14
Expressions
Total Answers 21 80 23

Table 4:
SERVICES AT RECEPTION

Conclusion Excellent Average/ Poor

Good
Customer 16 15,17
Expressions
Total Answers 32 98
Table 5:
QUALITY OF ROOM

Quality of Room Services Comfortability

Level
Conclusion Excellent Average Poor Excellent Averag Poor
/ Good e/ Good

Customer 19,21,22 20 18
Expressions

Total Answers 75 11 3

Table 6:
SERVICES PROVISION AT RESTURANT

Conclusion Excellent Average/ Good Poor

Customer 24,27 25,26,28,29

Expressions
Total Answers 33 115

Table 7:
TOURS AND OTHER LUXURY SERVICES

Conclusion Excellent Average/ Poor

Good
Customer 34 31,32, 30,33,35
Expressions
Total Answers 3 103 33
Table 8:
ENTERTAINMENT

General entertainment Kids' club

Conclusion Excellent Average/ Poor Conclusion Excellent Average/ Good

Good
expressions 47,48,49,51 45,46 44 50,52

N of answers 130 26 6 38