International Journal of Contemporary Hospitality Management

Evaluating service quality in a UK hotel chain: a case study

Jiju Antony Frenie Jiju Antony Sid Ghosh
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Jiju Antony Frenie Jiju Antony Sid Ghosh, (2004),"Evaluating service quality in a UK hotel chain: a case study", International
Journal of Contemporary Hospitality Management, Vol. 16 Iss 6 pp. 380 - 384
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Research in brief
Evaluating service
quality in a UK hotel
chain: a case study
Jiju Antony
Frenie Jiju Antony and
Sid Ghosh
Downloaded by FLINDERS UNIVERSITY OF SOUTH AUSTRALIA At 22:41 30 January 2016 (PT)
The authors
Jiju Antony is Senior Lecturer and Frenie Jiju Antony is a
part-time Lecturer, both in the Division of Management,
Caledonian Business School, Glasgow, UK.
Sid Ghosh is Senior Lecturer in the Centre for Organisational
Effectiveness, The Business School, Bournemouth University,
Bournemouth, UK.
Keywords
Customer services quality, Hotel and catering industry,
Case studies, SERVQUAL, United Kingdom
Abstract
Service quality is a growing concern for many service firms in the
UK. Today service firms are paying more attention than ever to
the needs and expectations of the customers by consistently
improving the quality of service provided to their customers. This
paper briefly explores the relation between service quality and
business performance followed by an assessment of service
quality as a framework. The case study focuses on a hotel group
in UK, where service quality was measured at six different
locations. The findings from the research unveiled that there
were significant variations for service quality between the six
hotels.
Electronic access
The Emerald Research Register for this journal is
available at
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www.emeraldinsight.com/0959-6119.htm
International Journal of Contemporary Hospitality Management
Volume 16 · Number 6 · 2004 · pp. 380-384
q Emerald Group Publishing Limited · ISSN 0959-6119
DOI 10.1108/09596110410550833
380
Introduction
Service quality incorporates the concept of
meeting and exceeding the expectations of the
customer and this has been growing in popularity
since its inception in the late 1970s. Service quality
has been derived from the field of marketing which
values the human interaction between a business
and its customers. Service quality is so intangible
that objective measurement is impossible; the
challenge lies mostly in managing appearances and
perceptions (Harvey, 1998). The majority of the
literature on service quality in the 1970s and 1980s
reveals four main attributes: intangibility,
heterogeneity, perishability and inseparability.
Intangibility is an attribute often cited as having no
tangible quality. Customers cannot evaluate a
service prior to consumption, during consumption
and cannot store the service after consumption
(Zeithaml, 1981; Shostack, 1984). Heterogeneity
relates to the potential variability in the actual
performance of services and is supported by
Booms and Bitner (1981) and Looy et al. (1998).
The third attribute perishability is grounded in the
theory that services cannot be saved or inventoried
for future use. The last attribute is the
inseparability of production and consumption.
When services are sold to customers, both
production and consumption occur
simultaneously.
This paper will explore the link between service
quality and business performance through a case
study that illustrates the evaluation of service
quality in the hotel industry in UK. It utilises the
five dimensions developed by Zeithaml et al.
(1990) for evaluating service quality in a UK hotel
group at six different locations. These five
dimensions are:
(1) tangibles – refers to physical facilities,
equipment, appearance of personnel, etc.;
(2) reliability – ability to perform the promised
service dependably and accurately;
(3) responsiveness – willingness to help customers
and provide prompt service;
(4) assurance – knowledge and courtesy of
employees and their ability to convey trust and
confidence; and
(5) empathy – caring, individualised attention
provided to customer.
Service quality and business performance
Business performance can be broadly judged by
several attributes such as profitability, growth,
market share, company image and repeat business
due to customer loyalty. These attributes are all
measured financially or statistically and provide an
indication on the performance of the business. The
 Evaluating service quality in a UK hotel chain: a case study
Jiju Antony, Frenie Jiju Antony and Sid Ghosh
business performance can be affected by two key
variables; the market conditions and the results of
strategic decisions.
Service quality is linked to customer satisfaction
and customer loyalty. Heskett et al. (1994)
considered customer satisfaction and loyalty as
behaviour for increasing the profits and growth of a
business. A satisfied customer will be loyal to the
company and this loyalty is measured through
customer retention which eventually is a measure
for business performance.
The relationship between service quality and
business performance in the service industries has
been highlighted through many examples. One
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great example is by Gummesson (1987) in the
turnaround of the Scandinavian Airlines System
(SAS) by its CEO Jan Carlson in the early 1980s.
By treating service quality as a major factor for
achieving commercial success, Carlson turned
around the $8 million a year loss making airline
into a $71 million a year profitable business. In
other words, it is fair to say that service quality
does have a significant impact on the business
performance and those companies that adopt a
customer oriented approach are far more likely to
gain market share and be successful than those
who don’t.
Case study
In a hotel group, service quality is very important
due to the high level of customer contact. The
objective of this case study was to measure and
analyse service quality, and identify which
attributes of service quality are most important to
the business. The hotel group considered for this
study are primarily in the middle market range of
three star hotels and cater for a variety of guests
from commercial guests to leisure guests, of all age
ranges. After the initial meeting with the guest
relations manager, some of the problems identified
were:
.
complaints in the food and beverage section
within the hotel;
.
staff motivation and attitude;
.
housekeeping problems;
.
inadequate communication between
management and front-line staff members;
.
inadequate communication between
management and customers; and
. slow service at various times.
To evaluate service quality within the hotel group,
a survey of the guests and interviews with
management were chosen. The reasons were: first,
the survey would allow a direct response from the
guests on the five dimensions of service quality
381
International Journal of Contemporary Hospitality Management
Volume 16 · Number 6 · 2004 · 380-384
promulgated by Zeithaml et al. (1990); second, the
interviews with management would allow the
analysis of the service quality gaps. The data were
collected from six hotels over a period of four to
five weeks and a total of 62 guests have
participated in the study.
Webster and Hung (1994) used an adapted
version of the SERVQUAL instrument and this
adapted questionnaire was chosen due to the
following reasons:
.
SERVQUAL takes the responses of the guests
before and after the visit. This can cause
discomfort to the guests who might be too
busy checking in at the reception, and,
moreover if the guest is not available, the data
for perceived service becomes invalid. The
adapted questionnaire is designed in such a
way that guests can fill them in either during
or at the end of their stay.
.
The adapted questionnaires have fewer
questions (only 17) and hence it is quicker to
complete. Therefore the response rate can be
increased for the study.
For this study, the data collection strategy was to
stay in each of the six hotels and personally ask the
guests to complete the questionnaire. The hotels
will be referred to as (hotel C, hotel S, hotel B,
hotel W, hotel H, and hotel D). The questions used
in the study are based on a similar study carried
out in Northern Ireland and the fact that it has
been used and tested highlights the validity of the
questionnaire. The reliability of the five
dimensions across the hotel chain was verified
using Cronbach’s alpha (a) test (Nunnally, 1978).
The alpha coefficient for all five dimensions
(varying from 0.64 to 0.82) was considered
adequate (Black and Porter, 1996).
It was also felt important to compare the mean
score of each dimension across the six hotels. Each
individual hotel runs their business slightly
differently, even though there are measures of
uniform standards in place. Therefore the
response from the guests for each dimension might
be affected. In order to compare the mean score of
each dimension across the hotels, it was decided to
use a powerful technique called analysis of
variance (ANOVA). The results of the analysis
have indicated that the dimension Tangibles is
uniform across the hotels. All other dimensions
vary significantly across the hotels.
Analysis of dimensions most important to
the guests
The second part of the study was to determine the
most important dimension and the least important
 Evaluating service quality in a UK hotel chain: a case study
Jiju Antony, Frenie Jiju Antony and Sid Ghosh
dimension to the customers. The customers were
asked to allocate 100 points amongst the five
dimensions. Responsiveness was perceived to be
the most important dimension as opposed to
reliability from published literature (Zeithaml et al.,
1990). Reliability was perceived to be the second
most important dimension and the least important
dimension was considered to be empathy. The
analysis of the data revealed that slow service was
often a problem within this hotel chain and this
was attributed to the lack of understanding the
staff had towards the expectations and needs of the
customers. Moreover, some of the staff found it
difficult to empathise with the guests. This
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explains why the mean score of empathy was low
across the six hotels considered for the study. The
variation in the mean score of responsiveness
across the hotels is huge compared to other
dimensions. One of the hotels (hotel C) has
excellent responsiveness score and this was
found to be because of the way the management
ran the hotel and the highly empowered front-line
staff.
The high variability in the mean score of the
four dimensions (reliability, responsiveness,
assurance and empathy) across the hotels were due
to the following reasons:
.
the procedures of the service quality standards
are not being followed consistently across the
hotels;
.
each general manager has a strong degree of
autonomy in the way the hotel is run;
. non-standardisation of the recruitment
process of staff; and
.
very limited training being given to front-line
staff in service quality and its importance to
customers.
Analysis of service quality gaps and key
findings
This section presents the results of the analysis
from the management questionnaire and draws
conclusions based on the findings. The purpose of
this questionnaire was to understand how the four
gaps within the gap model affected the business
performance (Zeithaml et al., 1990). The
management questionnaire was adapted from a
previous study in Northern Ireland hotel industry
(Gabbie and O’Neill, 1996).
Gap 1: the gap between customer
expectations and management perceptions of
those expectations
The questions in this part are focused on the
following five areas:
382
International Journal of Contemporary Hospitality Management
Volume 16 · Number 6 · 2004 · 380-384
(1) methods to ascertain customer satisfaction;
(2) improvement decisions based on customer
feedback;
(3) effective management structure;
(4) management style that is practised; and
(5) decision-making process – how much input
employees have on the decision making
process?
The data on gap 1 reveals clear differences among
the hotels in the way management perceive
customer expectations. The methods for
ascertaining customer satisfaction were customer
care cards, duty log books and comment books. All
the hotels had made various efforts to make
decisions based on customer feedback. This
ranged from implementing tablecloths at
weekends for leisure guests, to extending breakfast
meal times for the commercial guests.
There is variation in the management styles and
structures among the hotels. For example, one of
the hotels ran a democratic system with autocratic
elements where quick and unpopular decisions
were required. What was apparent in most of the
hotels was the fact that it was mainly the heads of
departments who made the decisions.
Gap 1 evaluation
The gap between what customers expect and what
management perceives is evident in most of the
hotels with one hotel (hotel C) being an exception.
The reason why this hotel appears to have the
smallest gap is because the general manager seems
to have the maximum level of contact with the
guests and the hotel also appears to have the most
employee input in the decision making process.
Hotel C is an example of how Gap 1 can be
bridged and business performance improved
leading to increased customer retention and
goodwill.
Gap 2: the gap between management
perception of customer expectations and
service quality specifications
The key questions in this area relate to:
.
the biggest hindrance to service quality;
.
commitment to service quality; and
.
the standardisation of tasks in the hotel
departments.
The main hindrances to service quality across the
hotels identified as follows:
.
budget;
.
unsociable hours;
.
staff understanding of guests;
.
lack of training; and
.
staff behaviour and attitude towards service.
Hotels S and W, both identified budget constraints
as factors preventing their commitment to service
 Evaluating service quality in a UK hotel chain: a case study
Jiju Antony, Frenie Jiju Antony and Sid Ghosh
quality as well as the bureaucratic process of
implementing changes. There are in fact
standardised procedures dictated from the head
office that govern many processes within the
hotels. However the highest number of complaints
relate to the food and beverage section where
different type of customers had different level of
expectation.
Gap 2 evaluation
From the interviews, many of the hotels reported
difficulties with the implemented changes. For
instance, at hotel W, hotel S and hotel B, the
temporary kitchen caused much slower service
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than usual. However, hotel H reported that the
transition from traditional to modern look has had
a positive effect on most of the guests and staff
working there as the surroundings were much
nicer.
Gap 3: the service performance gap: the gap
between service equality specifications and
service delivery
The questions asked for this gap relate to:
.
the training structure;
.
communication with employees regarding
their job performance;
.
service quality and role conflict;
.
characteristics sought in employees;
.
interview procedure; and
.
employee empowerment.
There are centralised training programmes
available within the hotel group and part of this
includes a shared personnel training manager. The
decisions for employees to go on external training
course are made by the general manager, and there
are varying degrees of on the job training
depending on the position. Although all the hotels
practice a system of appraisal, job charts and
employees’ performance reviews frequency varies
from one hotel to another. For example, hotel B
had appraisals of every three months whereas
hotels S and W carry out appraisals every six
months. The issue of role conflict and compromise
of service quality was not apparent in hotels B, W
and S. However, in hotels C and H, there have
been instances of role conflict where service quality
was compromised. From the interview at hotel H,
the general manager admitted that this situation
could arise from the fact that staff had to work their
full contractual hours, rotating on different jobs.
With respect to the personal characteristics, the
following key features were identified across the
hotels:
.
honesty;
.
friendliness;
.
willingness to help and learn;
.
smart appearance;
383
International Journal of Contemporary Hospitality Management
Volume 16 · Number 6 · 2004 · 380-384
.
behavioural skills;
.
understanding of service; and
. stability.
Employee empowerment varied significantly
across the hotels. In hotel B, the level of
empowerment is decided during the staff training,
and at hotel C, employees are empowered to give
discounts of up to £10 after which a higher level of
authorisation is required. The general manager at
hotel W prefers to personally become involved in
any complaints though heads of departments do
have the authority to settle many complaints. At
hotels H and S, the manager of the department
decided and compensated guests.
Gap 3 evaluation
The service performance gap is evident in many of
the hotels as often the wrong employee is assigned
to the wrong job or function. Friendliness and
understanding the needs of the customers were
mentioned as the key characteristics from many of
the interviews. Staff appraisals are important for
the management to communicate with their staff
on their progress and what is expected of them.
The recruitment process varies in different hotels
and it was observed during the interview that the
larger the hotel, the less involvement there is from
the general manager in the recruitment process. At
the interview stage, what is expected of employees
must be clearly stated and during the training and
induction, meeting the expectations of the
customer has to be strongly emphasised.
Gap 4: the gap between service delivery and
external communications
Promises and delivery depend on the
communication and efficiency of the hotel
departments. How does this relate to service
quality? If the hotel fails to deliver what is being
promised to the customer, then they will measure
poorly against reliability, assurance and
responsiveness. Hotel C emphasised that there
could never be enough communication between
departments and hotels S, W and H all claimed
that communication was adequate with weekly
meetings for all the heads of departments.
Gap 4 evaluation
The larger hotels like hotel B have more
communication problems between departments
and thus the promises-delivery gap was inevitably
large. This problem can be tackled by settings
standards or goals for service quality outcomes
that are visible to customers.
 Evaluating service quality in a UK hotel chain: a case study
Jiju Antony, Frenie Jiju Antony and Sid Ghosh
Key recommendations to improve service
quality
The recommendations are based on the results
generated from the qualitative and quantitative
analyses. The key recommendations are
summarised below:
.
The management need to have more
interaction with the hotel guests to understand
their needs and expectations.
.
The management need to delegate more
responsibility to the staff across the hotels so
that they can make sensible decisions with the
guests (hotels H and C are good examples of
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this).
.
Staff need formal training in service quality to
deal with different types of guests and their
needs. This recommendation relates directly
to empathy and the low mean scores from the
analysis supports this.
.
Communication between departments at the
weekly meetings should adequately represent
the views and concerns of the front-line staff.
.
The present standardised procedures are not
being consistently followed. More spot checks
must be carried out to get rid of cleanliness
problems within rooms in these hotels.
.
Complaints and compliments must be
circulated among the hotels so that staff are
aware of problems and merits.
.
There should always a member of staff at
reception and in the restaurant to respond to
the needs of the guest.
.
Recruitment process should be standardised.
Conclusion
Service quality is an exciting and growing concept
within the UK hotel industry. The purpose of this
paper is to demonstrate the evaluation of service
quality in a UK Hotel chain using the adapted
SERVQUAL instrument. The customers were
asked to rate the five dimensions of service quality.
Responsiveness was perceived to be the most
384
International Journal of Contemporary Hospitality Management
Volume 16 · Number 6 · 2004 · 380-384
important dimension and empathy the least
important dimension. A series of interviews with
the management was also conducted to identify
the service quality gaps. An evaluation of these
gaps identified various areas of improvement. One
of the ideas was to benchmark the service quality
practice with other three star hotel groups for
having a greater understanding of the strengths
and weaknesses of the business.
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