INTRODUCTION
Background of the Problem
In China, foreign and domestic hotels are one the country’s important economic source. People from all parts of the world visit China in order to see its famous foreign and domestic hotels and dine in its fine restaurants. In spite of the increasing popularity of China as an urban tourist destination, certain hotel business issues affect the influx of tourist and the revenue acquired from this business. The problem on competition for example, is one of the growing concerns of the foreign and domestic hotel business in China. In addition, customer satisfaction is one of the highly significant priorities in the business. Being the major source of tourism revenue, foreign and domestic hotel business owners in China are applying various strategies that will enhance the experience of visitors coming to the city (2005).
One of the main issues relevant to the need of assessing service quality is the significant transitions that the foreign and domestic hotel business in China must undergo. One of the recognized changes in the hotel business of China was the transformation of its domestic and foreign hotels, where the once conventional hotels were converted into modernized ones. This transition implies the apparent increase of small firms providing tourism services at present, while the foreign and domestic hotel business used to be dominated by a few producers. In other words, the hotel owners in China now have a number of accesses to strategies and factors that amplify business competition. While this tendency has in many ways improved the overall state of foreign and domestic hotel business of the country, hotel owners also encounter difficulties to operate their businesses successfully, making the evaluation of service quality all the more essential ( 2005).
They have also stated that the competition in the domestic and foreign hotel business in China is augmented by new strategies introduced and implemented by various hotels. With the introduction of information and communication technology (ICT) as well as other technological facilities, tourists have more options and control over they type of hotels they want to stay. Hence, with the present advancements, foreign and domestic hotel businesses in China are giving more importance to specialized and enhanced forms of services for tourists, especially the service quality of the restaurants in these hotels.
Another issue that is related to the need for evaluating service quality is the tendency of consumer behavior to change drastically. This has been observed by several researchers. According to these researchers, the changes in the consumers’ cultural values are among the most influential factors that affect the foreign and domestic hotel business in China. The difference on how consumer responds to products or services given to them is significantly dependent on their cultural origins and values, which naturally affects visitor experience ( 2002).
There are a number of interconnected issues that falls under the foreign and domestic hotel businesses in China. Competition, new strategies and changing consumer trends are among these issues. The main focus however, is on the comparison of the service quality of the foreign and domestic hotels in China. One way of doing so is by means of assessing the visitors’ expectation and satisfaction. Enhancing the quality of foreign and domestic hotel services given to the customer or tourists naturally leads to satisfaction. This essential business element is highly significant in combating the problems and issues cited. Hence, consumer studies in the foreign and domestic hotel business of China are very important ( 2002).
By means of evaluating service quality and visitor satisfaction, developing new strategies for tourist hotel facilities that will augment customer satisfaction in China can be done. China is a popular tourist destination. Nonetheless, tourism issues affect this industry in one way or another. The local government should then adopt strategies and methods that will prepare the country for tourism. The comparison of China’s foreign and domestic hotels’ service quality and visitor satisfaction will facilitate the achievement of this objective.
In this proposal, focus will be given on the tourists’ expectation and satisfaction upon staying in the foreign and domestic hotels in China. Specifically, this proposed study will evaluate the different hotel features offered by the foreign and domestic hotels in China and determine the level of satisfaction among randomly selected tourists within the vicinity. In order to evaluate the service quality, the survey and interview method will be used. This particular study will be of significant value to the foreign and domestic hotel businesses in China as it will provide an overview of the current status of the foreign and domestic hotel industry in China as well as ways on how its foreign and domestic hotels may be enhanced.
Statement of the Problem
The foreign and domestic hotel industry in China is placed in a highly competitive business environment. Various strategies and marketing means must then be employed by entrepreneurs in order to enhance the services they provide. China is among the most popular tourist destinations in the world. With the abundance of historical tourist spots and archaeological sites, China is one of the countries in the world with the highest number of visitors. Nonetheless, considering the changing consumer trends as well other tourism-related issues, China must apply ways on how to enhance its foreign and domestic hotel industry and increase tourists’ satisfactory experience. Studying service quality is then necessary for this issue. This study will then attempt to answer the following inquiries:
REVIEW OF RELATED LITERATURE
The domestic and foreign hotel business is among the fastest growing economic sectors in China. In fact, the domestic and foreign hotel business by itself is recognized as multi-million dollar and still a progressing business in China. The domestic and foreign hotel business is among the major economic forces in the country as its enables growth and creation of job opportunities. According to and associates (2005), the domestic and foreign hotel business has employed over a million workers who were distributed within various hotel establishments, totaling to revenue generation of billions of dollars. From these records, the domestic and foreign hotel business has indeed become one of the most competitive businesses in the world.
Important changes in the understanding and management of the service quality of most domestic and foreign hotels have been developed in the past 10 to 15 years. Various researchers, practitioners and policymakers now acknowledge that service quality can be conceptualized from a functional perspective and that appropriate interventions involve the development of alternative measures to cope up. It was also noted that the establishment of a conducive restaurant environment for tourists to enjoy and relax have served effectively in lowering the prevalence of un-satisfaction among tourists. At present, this philosophical shift has extended to various settings, including China. Domestic and foreign hotel owners and entrepreneurs here have recognized that some tourists do not appreciate so much the quality of service that their hotels and restaurants offer. Hence, these tourists may have the tendency to shy away from visiting China and its other great cities because of this bad impression they have ( 2005).
For decades, researchers have tried to discover the elements of service quality among tourist establishments such as foreign and domestic hotels and restaurants. And while they might have been able to identify certain essential elements of service quality, they have yet to determine the elements that common tourists pay particular attention to. However, it has been shown that negligence of service quality produces consequences that foster bad impressions from tourists. Strong evidence suggests that service quality and its negligence engage in a reciprocal relationship that has a short and long term effect on the tourist’s future opinion regarding the service quality of tourist establishments. One of the criteria for identifying if a tourist establishment such as hotels is of high service quality is whether it has an impressive environment with fully operational facilities meant for the relaxation and enjoyment of the tourists and visitors. A deficit in basic services, as well as skills related to making the tourists and guests fully accommodated, significantly impairs a hotel’s ability to encourage more and more tourists to come over to their place. When compared to high quality serviced foreign and domestic hotels, low quality serviced foreign and domestic hotels have lower performance rates, lower income and are less likely to be known all over the place. As a consequence, low quality serviced hotels often experience a lifetime of problems in employment and publicity, and they are likely to become bankrupted even at a developmental stage (2005).
Take for instance the various foreign and domestic hotel establishments in China having difficulty in adapting to the modern standards of service quality. At present, foreign and domestic hotel owners in China are facing an alarming acceleration in the occurrence of disruptive and challenging behaviors among tourists that seriously impede the performance and credibility of their hotels. Also, there has been a rapid increase in percentage of tourists who have failed to be impressed by the hotel and restaurant services of some domestic and foreign Chinese hotels. Unfortunately, many of today’s foreign and domestic hotels all over the world have both problems. Behaviors and tourist impressions such as lack of sanitation, boring environment and unfair tourist price accommodation rates have all been rampant nowadays. True enough, these problems are counterproductive towards the effective performance of foreign and domestic hotels. Serious impressions of tourists such as aggression, argumentativeness, and defiance are even more of a threat to these poorly serviced foreign and domestic hotels, yet common in countries which cannot afford to establish 5 star quality foreign and domestic hotels. Impressions and evaluations of tourists, both positive and negative, affect performance outcomes of hotels at the employee and management level ( 2005).
From a tourist perspective, tourists who displayed their un-satisfaction remarks in staying in poorly serviced foreign and domestic hotels had a 90% chance of not going back or staying again to the same hotel. They reported that such tourists begin to actively dislike the place itself and actually visit less that particular place. Continuing over years, these tourists are not likely to change their minds after a terrible experience staying on a poorly serviced hotel. Similarly, tourists exhibiting ongoing, serious bad impressions well even after so many years of that terrible experience are increasing.
Service Quality
Service quality generally pertains to a tourist’s perception over a certain area or destination’s quality of services being offered. According to (1989), people of tourists tend to interpret the services in their surroundings without realizing it. This interpretation is based on the visitors’ needs and preferences that will allow them to function more efficiently. This makes up the visitor’s overall experience or perception. More recently, (2000) noted that service quality suggests awareness but not conscious awareness. The service quality is naturally enhanced when tourists could identify with specific environmental characteristics that they need or are important to them. Thus, the perception or experience in terms of service quality of the visitor is significantly related to the environment they wanted to be in.
Service quality pertains to the degree of efficiency and effectiveness of the implementation of the policies and tasks necessary to satisfy a firm’s customers, employees, and management. Service quality focuses on the careful management of the processes involved in the production and distribution of products and services (1998).
More often than not, small firms and business establishments such as hotels and restaurants don’t really have the capabilities to directly determine the quality of their services to their clients or customers. Instead, they engage in activities that various schools of management typically associate with service quality management. These activities include the inspection of their products, service development, production and distribution ( 2004).
However, service quality deals with all operations done within companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often related with service quality. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, service quality includes the analysis and management of internal processes ( 2000).
With the increasing competition in the industry as well as the changes observed among consumers, studying service quality is essential not only to keep the industry successful and productive but most importantly to satisfy and meet the needs of the tourists. Specifically, most firms in the industry are applying various strategies on how to improve their services and enhance service quality. Several technologies are being applied by operators so as to take over with some of the businesses’ main activities. Computerized reservation systems for instance, are one of the known advancements in tourism. This in turn, helps in enhancing service quality as it offers them more options and allows a faster access to information (2002).
While there are numerous efforts done to enhance service quality, researchers concluded that there are also several factors that influence service quality. According to and associates (2006), the preferences, attitudes and perceptions of the visitors in terms of service quality are some of the important factors affecting service quality. Other researchers such as (2006) also concluded that the perception on service impacts is also an influential factor of service quality. In general, the researchers noted that the satisfaction and un-satisfaction that tourists experience while using the services in various destinations affect their overall experience. Hence, he stated that this makes this factor a significant dictator or basis for developing standards of service or product quality.
China and Hotel Improvement Efforts
China has long been an ancient destination of many tourists from all over the world, who are very eager to see the city’s famed museums and historical sites, especially the Great Wall. During the early times however, a number of problems in tourism has been encountered by China. Pollution, overcrowding and poor domestic and foreign hotel infrastructures are among the country’s major concerns that affected its image among tourists.
Since the beginning of the 20th century, the social amenities and hotel infrastructures in China have gone through significant changes. Funds and financial support from both UK and the European Union have made it possible for the nation to establish foreign and domestic hotels such as Beijing hotel and the Grand Hyatt Beijing hotel. The Metro system was also expanded massively. Other private investments also led to the great expansion of hotels and other tourist sites.
One of the major developments that China had gone through in terms of tourism was the remodeling of their foreign and domestic hotels. In addition, a great pedestrian area was also constructed. These pedestrian areas are highly beneficial for tourists as these allow them to appreciate the country’s hotel infrastructures while walking calmly along paths of trees.
Aside from the developments done for China’s foreign and domestic hotels, some of its major theatres and art galleries that house the world’s most precious artworks have also been renovated. Other famous tourist destinations in the country, including the Great Wall and the Forbidden City, have also been extensively transformed to resemble their original state for the pleasure and satisfaction of their tourists and visitors worldwide
China and Service Quality
It appears that most of the country’s efforts for service quality development had led to great results based on the number of tourists that visited the country during the past couple of years. In one article, China has been described as a country that is busier than ever. Yet, in spite of the crowd, the newly-built foreign and domestic hotels have been helpful in accommodating the great number of visitors that came to the city. As a result, overcrowding of tourists has been prevented during this time, benefiting both Chinese residents and visitors. The article also stated that the energy perceived in the country is good and amazing. This perhaps is attributable to the fact that every tourist in the country felt that they are part of a family; hence, every tourist encountered is genuinely happy to be in China.
Some write ups however had commented on China’s spot security personnel on some foreign and domestic hotels and described the hotels as an army camp. The article author pointed out that in spite of their number, the security personnel do not really hinder tourists or visitors from appreciating the country. In addition, China at that time was without a doubt a country of hope and joy; it has definitely been a worthwhile experience for visitors from all over.
In an article written by (2001), the author described his experiences in China’s tourist destinations. In general, the author saw China as a historical country edging towards contemporary backgrounds. Though China and its significant foreign and domestic hotels are important tourist destinations, the pollution and overcrowding appear to be a disadvantage. In spite of these problems, trekking through the country’s remarkable foreign and domestic hotels was truly a worthwhile experience. Staying at the foreign and domestic hotels for instance was an exciting experience for the author as it was just like visiting the downtown sceneries. Though hotels offer different scenic views and environment, the impression of excellence can be perceived. According to the author, staying at the foreign and domestic hotels resulted to excellent visitor experience; some facilities offer less elegance, while others are interesting and influential.
(1999) described how his trip to the foreign and domestic hotels in China was similar to the foreign and domestic hotels in America. The area was very busy and going to this place was tiring. However, once the author reached the hotels, the trip was all worth it. noted that the foreign and domestic hotels in China were different from all others found within America as it highlighted modern facilities in designated rooms. The artworks inside the hotels were more than a place displaying antiquities as treasure of great tastes were exhibited and made available for inspection. The foreign and domestic hotels were also an inviting tourist location with its great sights, food and shops. This, according to McHenry, was one of the main reasons for tourists to come visit China over and over again.
During the author’s visit to China, the country was busy preparing itself for hosting the coming Olympic Games in 2008. Thus, he was able to witness the considerable effort China had done to enhance the country’s hotels, transport systems and roadways. Through this experience, the author no longer doubted how China was greatly spearheaded by tourism. There have been literatures describing visitor experience regarding service quality to various tourist destinations. However, studies of service quality in China are apparently insufficient. This further stresses the need to evaluate the perception of the country’s visitors so as to help enhance its existing foreign and domestic hotels and overcome various tourism issues.
Service Quality in relation to Customer Satisfaction and Needs
Gone are the days when employees work on their desks for eight hours a day. Today’s employees want to become as productive as possible while in their offices and interact with different individuals and groups in different settings. The technological advancement in wireless technologies has allowed workers and employees to access communication tools in new settings. Because of this rigorous and hectic schedule of employees, it became imperative for them to indulge in relaxing products and services to help them ease the pressure after every day’s work ( 2001).
Foreign and Domestic Hotel Service Quality
Service quality among foreign and domestic hotels can be subdivided into three main categories. These are:
A. Convenience
A particular foreign and domestic hotel’s dedication to service quality can easily lead to the satisfaction of its customers in whatever place it is located. Making a particular foreign and domestic hotel convenient to its customers and visitors is not an easy task, and credit must be given to the management who always pursue the best service quality and craftsmanship in the name of convenience ( 2000).
B. Health / Safety / Sanitation
The raw materials and ingredients that are used in the production of beverages and other delicacies must be able to meet the high quality standards and specifications. Even the packaging materials must be also subjected to strict quality standards. In line to the hotel’s policies in food and product safety, appropriate measures must be taken in the preparation of all food and drinks to prevent the possible contamination. Hotels must also implement the principles of the HACCP (Hazard Analysis and Critical Control Points) system in order to show their testament to their dedication to service quality. The food and beverages that their customers eat and drink must be prepared using nothing but the original and unparalleled recipes. To achieve a sweet taste, fresh aroma, bright color and clarity, only the purest ingredients must be used ( 2002).
C. Affordability of Services
Normally, foreign and domestic hotels base their pricing strategies on several key trends that continuously shape the global marketplace of the foreign and domestic hotel industry. One particular trend is labeled as “premium-tization”. This phenomenon causes the polarization of different markets. This would then trigger the consumers to demand and pay much higher prices for perceived service quality. However, discounting in prices is also simultaneously taking place, therefore squeezing out the middle range. More often than not, hotels and restaurants undergo internationalization which leads to a tighter squeeze for shelf space. This will in turn leave them as winners. It is for this reason why most foreign and domestic hotels value the “premise sector” so much because this would allow consumers can to try their services at low risk and price ( 2005).
MEASURING SERVICE QUALITY
A. “Consumer Understanding”
The occurrence of consumer research to determine service quality within the economy reflects the growing difficulty in the management of foreign and domestic hotels that require the effective use of valuable resources such as money, materials, equipments, and people. This is the reason why consumer research is being done by most foreign and domestic hotels in order to determine the most effective ways to coordinate these resources through the application of analytical methods derived from fields of studies such as mathematics, science, and engineering.
Through this process, problems are solved in different ways and alternative solutions are then relayed to the hotel’s management. The management then selects the appropriate course of action in line with their goals. More often than not, consumer research analysis in foreign and domestic hotels are concerned with complicated issues such as top-level strategy in attracting more customers, hotel resource allocation, designing of hotel facilities and systems, pricing and the analysis of goods and services ( 2004).
B. Balanced Scorecard
The balanced scorecard is a strategic management system that allows foreign and domestic hotels to clearly establish and follow their goals and business strategies and put them into action. This approach also enables the foreign and domestic hotels to issue feedbacks around both the internal business processes and external outcomes, and this undoubtedly will help the hotels on their drive to continuously improve in terms of its strategic performance and results. When appropriately implemented, the balanced scorecard will be able to develop strategic planning into the brains of the hotels (2005).
The balanced scorecard approach is based on integral concepts of past management ideas such as Total Quality Management (TQM) and measurement-based management and feedback. The balanced scorecard integrates feedback within internal business process outputs, just like in TQM. The only difference is the existence of an additional feedback loop around the results of business strategies.
C. Customer Satisfaction
A major factor involved in the improvement of foreign and domestic hotels involves the establishment and utilization of performance measures or indicators that in turn measure their customer’s satisfaction. These measures or indicators are measurable characteristics of products and services that foreign and domestic hotels typically utilize in order to study and improve their performance. The indicators that will be chosen should be able to represent the essential factors that are crucial to the improvement of operational and financial performance. Through the analysis of accurate information brought about by the tracking processes, the measures or indicators themselves can possibly be analyzed and improved to support such goals ( 2002).
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