UK-Based Hospitality Organisations in Increasing Customer Satisfaction - Essay Example

Literature review Table of Contents Table of Contents 2 Introduction 3 Research strategy 4 Literature review of theories and models: 6 Conclusion 8 Reference list 10 Appendix 13 Research question: How E-commerce is helping the UK based hospitality organisations in increasing customer satisfaction and loyalty? Introduction Moutinho (2011) stated that hospitality and tourism is the largest revenue generating industry in the UK economy. UK is one of the economically developed countries with huge potentials of hospitality business as number of travellers and tourists arrivals increasing. The country has many leading hospitality organisations like Hilton hotels, Marriott international, Intercontinental and many other four or five stars hotels, serving the international and domestic travellers with higher quality and support. It has been observed that the firms are providing almost same type of service to the national and international clients. Bothma (2010) opined that customers are requiring in-depth information on different service segments, price tags and availability of the booking policies. Customers will be able to select proper service as per their need and requirements which will increase rate of satisfaction of the customers. E-commerce is most emerging technology trend which helps hospitality firms in sharing information; create provisions for online segment and collecting feedback. Hotels are able to check the rate of occupancy of their room and other service segments. In the current study, two peer reviewed journals Beldona, Morrison and O’Leary (2008) and Jeong, Oh and Gregoire (2011) and second and third chapters in the book Fuchs, Ricci and Cantoni (2012) are used to outline impacts of the social media and electronic commerce portals. These sources will be helping the researcher in obtaining the insight on the impacts of E-commerce on the customer satisfaction and loyalty of the UK based hospitality segment. Research strategy Fuchs, Ricci and Cantoni (2012) in their study have used various research strategies. The key information and statistics are collected to emphasise that E-commerce policies are helping the UK hotel industry client satisfaction and devotion. Moreover, the research aimed to outline impacts of the E-commerce policies on the consumer behaviours (Fuchs, Ricci and Cantoni, 2012). In the research, different philosophy, approaches, design, data collection sources and data techniques are used to obtain most relevant facts on impacts of the E-commerce strategy in increasing the rate satisfaction of the hospitality customers like tourists and business travellers. UK based hospitality is selected by Fuchs, Ricci and Cantoni (2012) to cite the statistics regarding the change in the customer arrivals due to the E-commerce policy. While conducting the research Fuchs, Ricci and Cantoni (2012) observed that there are three types of options like positivism, interpretive and realism. In their research, positivism philosophy is selected to gain the insight on the E-commerce strategies adopted by the UK based hospitality sectors and its impact on developing customer satisfaction. Such philosophy helps to cite evidence and information on the question developed. However, other two types of philosophy interpretive and realism are least effective in contrasting existing theories and concepts of E-commerce strategies with the authentic hospitality market circumstance (Beldona, Morrison and O’Leary, 2008). The researchers are going for the positivism philosophy as it will increase the knowledge regarding the impacts of e-commerce in developing customer’s satisfaction and loyalty. Such approach contrasts the topic with existing and newly developed theories. Inductive and deductive approaches can be used while conducting any research. Deductive approach was adopted by Beldona, Morrison and O’Leary (2008) to develop critical review of the theories on the E-commerce strategies and customer satisfaction and cite evidence on the interrelation among the two factors. They were able to develop conceptualised idea on online booking, check out and cancellation of order process of the hospitality firms (Berg and Eliassen, 2010). Any research can be conducted with the help of the three different designs like exploratory, explanatory and descriptive. However, Jeong, Oh and Gregoire (2011) selected descriptive design to identify various E-commerce policies used by the hospitality organisations. Such design helped them to cite significant evidence on the impacts of online portals on customer satisfactions and loyalty development. Exploratory and explanatory designs of the research are unable to contrast the two main factors of the topic E-commerce and customer satisfaction (Costa and Buhalis, 2012). Sampling Techniques Beldona, Morrison and O’Leary (2008) opined that primary and secondary are the options for collecting relevant data materials on the concerned topic. Primary data sources helped them to collect raw and most contemporary data on the E-commerce policies of the UK based hospitality firms. Moreover, such technique will help the researcher in gaining most unbiased response from the customers. Researchers can communicate with the hospitality customers directly. Primary data is providing the experience of the customers regarding the usage of E-commerce websites of the hospitality firms. They used direct communication technique among 90 customers of the UK based hospitality industry during the month of June and July of 2007. This process helped them to gain an insight on level of satisfaction among customers developed by using online seat booking, advance booking and payment of room rents (Ratchford, Talukdar and Lee, 2009). Fuchs, Ricci and Cantoni (2012) used secondary sources like different books, newspaper articles, journals, empirical researches, and weblogs to obtain relevant facts regarding current topic. In the current research, mainly books, journals and website of VisitBritain are used as the secondary sources. Such resources helped in obtaining several theories, models, and concepts regarding the E-commerce and customers satisfactions. Fuchs, Ricci and Cantoni (2012) also stated that they were having quantitative and qualitative data techniques for their research. Quantitative data techniques helped them to gain in-depth idea on the E-commerce strategies and the impacts of the strategies on developing customer satisfaction development policies. They have used mixed approach of qualitative and quantitative techniques to evaluate the collected data. Primary and secondary sources used to collect relevant data. Quantitative technique helped the researcher in displaying the change in sales and room occupancy, foreign tourist arrival can be contrasted with the E-commerce outcomes (Buhalis, 2008). Primary and qualitative data are collected from online social media survey. Close ended questionnaires are spread among the customers of the UK based hospitality industry. On the contrary, Beldona, Morrison and O’Leary (2008) have used qualitative data collected from conducting telephonic interviews among the employees of hospitality firms like Hilton, Marriott. Comprised qualitative and quantitative data helped the researchers in gaining more insight on the customers satisfaction factors and E-commerce effects. Jeong, Oh and Gregoire (2011) have described the population of the study as the stakeholders of the UK based hospitality industries. Mainly, the customers and employees are selected as the population. On the other hand, 200 customers are selected as the quantitative sample and online questionnaire survey (Brotherton, 2008). Close ended questions will be used to gain the impacts of E-commerce systems in developing the customer satisfaction and loyalty for the hospitality brands. Quantitative sampling helped the researchers in gaining unbiased data from the customers. On the contrary, social media sampling helps in collecting data in low cost and time. Literature review of theories and models: In the current section, various theories, models and concepts of customer satisfaction and E-commerce are outlined. Fuchs, Ricci and Cantoni (2012) opined that E-commerce is helping hospitality firms in developing consumer satisfaction. They have identified four major factors of developing satisfaction among the hospitality clients. Assimilation, Contrast, Assimilation-Contrast and Negativity are the major factors that influence the customer satisfaction and loyalty in the hospitality industry (Fuchs, Ricci and Cantoni, 2012). According to Knowles, Diamantis and ElMourhabi (2010), assimilation factor refers to the disagreement rate among the expectation and perception. Gretzel, Law and Fuchs (2010) identified that hospitality industry consumers develop cognitive contrast of their expectations of the service quality of hospitality firms and perceived service quality in the hotels. Assimilation factors helped them to identify that the hospitality customers are reporting post usage assessment in terms of developing positive satisfaction. According to Fuchs, Ricci and Cantoni (2012), if the perception of customers and actual service experience has lower deviation then level of satisfaction will be higher. However, Gratton (2007) criticised that the theory has limitations like it assumes level of satisfaction depends on the performance of hospitality staff and services. Deresky (2009) refers that UK based hospitality firms are providing mainly three types of services like accommodation, restaurants and bars set up and travel and tourism services. Major hospitality firms are having several service segments like hostels, hotels, motel support; they are also providing accommodation service like resorts and apartments (Jeong, Oh and Gregoire, 2011). In the study Beldona, Morrison and O’Leary (2008) identified that satisfaction of the customers are depending on contrasting service factors, assimilation-contrast and negativity factors. Cornelissen (2009) opined that contrast theory of consumer satisfaction outlines that the post-usage assessment process will critically contrast expectation of the customers and actual experience from using the hospitality services. Beldona, Morrison and O’Leary (2008) outlined that there are conflicting relation between the expectations and satisfaction. According to Johnson, Scholes and Whittington (2011), the theory hospitality customers will be developing level of satisfaction on the behalf of distinction in the anticipation and performance. Beldona, Morrison and O’Leary (2008) outlined that major limitation of their literature is, it considers that only negative relation exits between the customer satisfaction and actual perception (Arendt, Ravichandran and Brown, 2007). Pizam (2010) cited that assimilation-contrast theory demonstrates the level of satisfaction among the customers by involving the assimilation and contrast theory. This theory suggests that the service performance judgement is quite complex to compare with the expectations of people. Baloglu and Pekcan (2009) criticised that perception of hospitality customers sometimes dominates the post usage assessment. Assimilation-contrast theory states that, if the service falls in range of acceptance customer’s level of satisfaction will be higher. Any sort of discrepancy will lead to refusal of the service (Bowie and Buttle, 2012). Stacey (2011) opined that this theory reports that inconsistency in service delivery performance will affect expectations and perception of employees. Individual beliefs and values will be facing the challenge of the ‘negative energy’ factors. Hans (2010) argued that negative theory is based on the disconfirmation practises and factors of the customers. Global customers are developing their level of satisfaction based on contrast of expectations, perceptions and actual service experience in hotels and other hospitality industry (Downey and Deveau, 2009). Jeong, Oh and Gregoire (2011) identified the strategic benefits of using E-commerce in hospitality segment. Ayeh (2007) stated that E-commerce strategies are used by hospitality firms in meeting global customers more effectively. These strategies are having certain strategic benefits which will help hospitality firms in increasing the reach, growth and sustainability. Bharwani and Butt (2012) argued that E-commerce strategies are used in developing compatibility in the globalised economy. In the UK hospitality, firms like Hilton Hotels, Marriott International, Intercontinental and many other leading five or four star hotels are facing huge challenge from each other (Chathoth, 2007). Geographical reach: Jeong, Oh and Gregoire (2011) cited that E-commerce portals of hotels and other hospitality firms can be accessed from any geographical regions. Thus, reaching potential customers is easy for hospitality firms. Speed: Online communication increases the speed of information transaction, order placing and booking seats. E-commerce also brings higher speed in the online payment and order cancellation (Gertner, Berger and Gertner, 2010). Productivity: E-commerce portals of hospitality organisations are offering customers with a range of services. Customers’ selection will lie within range of service so employees will be redefining service capabilities to increase the quality (Evans, 2009). Information sharing: Jeong, Oh and Gregoire (2011) referred that sharing the information of hospitality services, timing, rate or charges is easy by the use of E-commerce portals. Moreover, firms are able to develop new and innovative features of their service, reducing operational costs and developing competitive advantage (Brotherton, 2012). Conclusion UK based hospitality industry is using the E-commerce technologies in terms of meeting the global customers. E-commerce websites and portals are helping the firms to provide the service like online sea booking, service features, providing the catalogue of services provided by the firms, online payment of charges and advance booking. These policies are helping hospitality firms in increasing the level of satisfaction among the customers. Customers will be able to use the services of various hotels quite easily. In the current study, an in depth analysis of the UK based hospitality segment is done in order to gain an insight on the concept that E-commerce is increasing consumer satisfaction level. It has been observed that the industry increased profitability potentials with the help of online portals. International visits increased by 6.7% during the year 2014 than the visits of the year 2013. More than 35,000,000 visits recorded during the year. In addition, UK hospitality industry reported with an increase of £2.4 billion during the year 2014 which amounted to £23 billion. It is observed that the E-commerce portals are helping the hospitality firms in meeting the international customers. In the time of the London Olympic, organisations are able to collect international tourist booking with the help of online commerce strategies. At that time, overnight stay of the international tourist increased a lot. In addition, E-commerce portals of the UK based hospitality firms are offering highly secured financial or money transaction. Money transfer security is the key issues of the online commercial portals. Customer satisfaction level increases as they are able to access information on the service segments, promotional offers, make payment via online, and book seats via the E-commerce portals. Henceforth, it can be said that the E-commerce ease up the transactional process and availing services of Hotels and hospitality firms which increases the level of satisfaction among the customers. Satisfied customers remain loyal to the organisation making word of mouth promotion. Reference list Anwar, S. and Hamilton, J., 2010. Tourism into the Future – Towards 2020, and Beyond, Tourism Recreation Research, 30(3):77-85. Ret Arendt, S. W., Ravichandran, S. and Brown, E., 2007. Hospitality and Tourism Journal Matrix. Journal of Hospitality & Tourism Education, 19(2), 44-50. Ayeh, J. K., 2007. Determinants of Internet Usage in Ghanaian Hotels: The Case of the Greater Accra Region (GAR). Journal of Hospitality & Leisure Marketing, 15(3), 87-109. Baloglu, S. and Pekcan, Y. A., 2009. The Website Design and Internet Site Marketing Practices of Upscale and Luxury Hotels in Turkey. Tourism Management, 27(1), 171-176. Beldona, S., Morrison, A. M. and O’Leary, J., 2008. Online Shopping Motivations and Pleasure Travel Products: A Correspondence Analysis. Tourism Management, 26(4), 561-570. Berg, P., and Eliassen, S., 2010. Hospitality and Tourism Management. 4th ed. New York: Nova Publication. Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR perspective, Worldwide Hospitality and Tourism Themes, 4(2), pp.150 – 162 Bothma, J., 2010. Managing E-Commerce in Business. 3rd ed. New York: Free Press. Bowie, D. and Buttle, F., 2012. Hospitality Marketing: an introduction - Page 346, 4th ed. Burlington: Elsevier Butterworth-Heinemann Brotherton, B., 2008. International Hospitality Industry. 5th ed. Oxford: Butterworth-Heinemann. Brotherton, B., 2012. Introduction to the UK Hospitality Industry: A Comparative Approach, 4th ed. London: Routledge Buhalis, D., 2008. Strategic use of information technologies in the tourism industry, Tourism Management, 19(5), 409-421 Chathoth, P. K., 2007. The Impact of Information Technology on Hotel Operations, Service Management and Transaction Costs: A Conceptual Framework for Full-Service Hotel Firms. International Journal of Hospitality Management, 26(2), 395-408. Cornelissen, S., 2009. The Global Tourism System. 4th ed. Aldershot: Ashgate. Costa, C. and Buhalis, D., 2012. Tourism Management Dynamics - Page 2, 5th ed. London: Prentice Hall. Deresky, H., 2009. International Management: Managing Across Borders and Cultures. 3rd ed. London: Prentice Hall. Downey, J. F. and Deveau, L. T., 2009. A Computer Software Approach to Teaching Hospitality Financial Accounting. Journal of Hospitality Financial Management, 13(1), 89-97. Evans, N., 2009. Alliances in the International Travel Industry: Sustainable Strategic Options? International Journal of Hospitality & Tourism Administration 2(1): 9-16. Fuchs, M., Ricci, F. and Cantoni, L., 2012. Information and Communication Technologies in Tourism 2012, Germany: Springer Gertner, R. K., Berger, K. A. and Gertner, D., 2010. Country-Dot-Com: Marketing and Branding Destinations Online. Journal of Travel & Tourism Marketing, 21(2/3), 105-116. Gratton, L., 2007. Living Strategy: Putting People at the Heart of Corporate Purpose. 2nd. Ed. London, New York: Financial Times: Prentice Hall. Gretzel, U., Law, R. and Fuchs, M., 2010. Information and Communication Technologies in Tourism 2010. 3rd ed. London: Routledge Hans, V. B., 2010. Tourism Development in India – Challenges in the New Millennium, Journal of Global Economy, 2(1): 55-71. Jeong, M., Oh, H. and Gregoire, M., 2011. The Role of Website Quality in Online Hotel Reservations. Information Technology in Hospitality, 4(1), 3-13. Johnson, G., Scholes, K. and Whittington, R., 2011. Exploring Corporate Strategy: Text & Cases. 9th ed. Harlow: Pearson Education Limited. Knowles, T., Diamantis, D. and ElMourhabi, J. B., 2010. The Globalization of Tourism and Hospitality: A Strategic Perspective. 4th ed. London: Continuum. Moutinho, L., 2011. Strategic Management in Tourism - Page 19, 6th ed. Harlow: Prentice Hall Companion. Pizam, A., 2010. International Encyclopedia of Hospitality Management. 6th ed. London: Routledge. Ratchford, B. T., Talukdar, D. and Lee, M., 2009. A model of consumer choice of the Internet as an information source, International Journal of Electronic Commerce (5:3), pp. 7-21 Stacey, R., 2011. Strategic Management and Organisational Dynamics: The Challenge of Complexity to Ways of Thinking about Organisations. 6th ed. Harlow, England, New York: Financial Times Prentice Hall. Appendix 1. Purpose of author 2. Discipline of author 3. Methods 4. Conclusions 5. The source that led me to the reference 6. Insights for me 7. Points I agree with 8. Points I disagree with 9. Quotations I may wish to use. 1. 1 Purpose of author [aims of the paper] Beldona, S., Morrison, A. M. and O’Leary, J., 2008. Online Shopping Motivations and Pleasure Travel Products: A Correspondence Analysis. Tourism Management, 26(4), 561-570. 2 Discipline / affiliation of author Professors of marketing 3 Methods [full details] Both qualitative and quantitative data 4 Conclusions Customer satisfaction impacted by the web based shopping portals. 5 The source that led me to the reference [include how you found it using literature search web sites] Google scholar 6 Insights for me [what is interesting] Quantitative method 7 Points I agree with Favourable survey with reasonable number of the respondents 8 Points I disagree with. Justify points you disagree with by considering how the choice and implementation of methods may have affected the results. Absence of the hotel based reviews 9 Quotations I may wish to use in my review 1 Purpose of author [aims of the paper] Jeong, M., Oh, H. and Gregoire, M., 2011. The Role of Website Quality in Online Hotel Reservations. Information Technology in Hospitality, 4(1), 3-13. 2 Discipline / affiliation of author Hospitality and tourism industry researchers and 3 Methods [full details] Quantitative data, statistics and fluctuation of the trends 4 Conclusions E-commerce and online booking impacted the level of satisfaction with person of interest 5 The source that led me to the reference [include how you found it using literature search web sites] Google scholar 6 Insights for me [what is interesting] Feasible statistics 7 Points I agree with In depth empirical research 8 Points I disagree with. Justify points you disagree with by considering how the choice and implementation of methods may have affected the results. Cultural traits 9 Quotations I may wish to use in my review Read More