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This study was set out to investigate Customer Relationship Management and
Hospitality Industry in Nigeria, Le Meridien Hotel Limited (Ogeyi Place), Port Harcourt
was used as the case study. Quantitative and qualitative data were generated from 565
respondents comprising 214 Employees (General), 246 Customers and 105 Management
Staff. The study employed SPSS statistical software packages in the analyses. The
finding reveals that, Relationship Building exists as a moderating variable in the CRMBP relationships of the Nigerian hotel industry companies. This study is equally an
attempt to explain the Customer Relationship Management and Hospitality Industry in
Nigeria with the help of the gap model available in literature which suggests that gaps
in service occur at various instances. The study explains that the gap model is a useful
tool to explain the militating factors partly. There is more to the militating factors like
privacy issues, unwillingness of customers to build a relationship with the service
provider and changing tastes and preferences of the customer. Using Le Meridien Hotel
Limited (Ogeyi Place), Port Harcourt as a classic example of superior service quality to
the customers is appropriate in this study. Some simple measures to reduce the militating
factors have been mentioned, which addresses the third research question. The relevant
existing theory has been reviewed and the subject has been explored, using the gap
model (Parasuraman et al 1998) mainly. Based on the research findings and analysis,
recommendations have been given to reduce the militating factors at Le Meridien Hotel
Limited (Ogeyi Place) and luxury hotels in general. The study recommends that hotel
industry companies in todays business environment must be technologically compliant
in order to have competitive edge and build a meaningful and lasting relationship with
their customers.
1. 1
Introduction
1.2
(ii)
(iii)
(iv)
Is there more to the militating factor of CRM than what is explained in the gap
model?
(v)
2.
2.1
integrates internal processes and functions, and external networks, to create and deliver
value to targeted customers at a profit. It is grounded on high-quality customer data and
enabled by IT (Buttle, 2004). CRM is a business strategy to identify, cultivate, and
maintain long-term profitable customer relationships. It requires developing a method to
select your most profitable customer relationships (or those with the most potential) and
working to provide those customers with service quality that exceeds their expectations.
(McDonald, 2002)
An organizations survival depends largely on harmonious relationships with its
stakeholders in the market. Customers provide the life-blood to the organization in
2
Rowley & Dawes, 2000). Recent developments in Internet technology have given the
Internet a new role to facilitate the link between CRM and customer loyalty (Body and
Limayem, 2004). It is common knowledge that a dissatisfied and unhappy customer will
share his unfortunate experience more than a satisfied customer. It is also observed that a
fraction of unhappy customers choose to complain while others simply switch their
loyalty to others service providers. Loss of customer is loss of business along with the
opportunity for business growth and profitability. Feedback collection from the customer
is essential for the supplier to ascertain customer satisfaction and scope for improvisation
(Sugandhi, 2002).
2.2
customer satisfaction and driving up customer loyalty (see figure 1). There is a
compelling logic to the model, which has been dubbed the satisfaction-profit chain
(Anderson and Mittal, 2000). Satisfaction increases because customer insight allows
companies to understand their customers better, and create improved customer value
propositions. As customer satisfaction rises, so does customer repurchase intention
(Anderson, 1994). This in turn influences actual purchasing behaviour, which has a
significant impact on business performance.
Customer
Satisfaction
Understanding
customer requirements
Meet customer
expectations
Customer
Loyalty
Business
Performance
Behavioural loyalty
Revenue growth
Attitudinal loyalty
Share of
customer
Customer tenure
Deliver customer
value
(Buttle, 2004)
Customer satisfaction has been the subject of considerable research and has been
defined and measured in various ways (Oliver, 1997). Customer satisfaction may be
defined as the customers fulfillment response to a consumption experience, or some part
of it. Customer satisfaction I a pleasurable fulfillment response while dissatisfaction is an
unpleasurable one (Buttle, 2004). Satisfaction and dissatisfaction are two ends of a
continuum, where the location is defined by a comparison between expectations and
outcome. Customers would be satisfied if the outcome of the service meets expectations.
When the service quality exceeds the expectations, the service provider has won a
delighted customer. Dissatisfaction will occur when the perceived overall service quality
does not meet expectations (Looy, Gemmel & Dierdonck, 2003). Sometimes customers
expectations are met, yet the customer is not satisfied. This occurs when the expectations
are low (Buttle, 2005).
Customer loyalty can be defines as customer behavior characterized by a
positive buying pattern during an extended period (measured by means of repeat
purchase, frequency of purchase, wallet share or other indicators) and driven by a
positive attitude towards the company and its products or services (Looy, Gemmel &
Dierdonck, 2003).
2.3
service quality emerged in 1970s. Ever since, the topic has attracted substantial attention
among researchers and practitioners (Gronroos, 2001). Service quality is a form of
attitude representing a long-run, overall, evaluation, which is different from customer
satisfaction, a more short term, transaction specific judgment. The level of customer
satisfaction is a result of the customers comparison of the service quality expected in a
given service encounter with perceived service quality. This implies that satisfaction
assessments require customer experiences while quality does not (Caruana, Money and
Berthon, 2000).
2.3.1
quality as perceived by the customer may differ from the quality of the service actually
delivered. Services are subjectively experienced processes where production and
consumption activities take place simultaneously. Interactions, including a series of
moments of truth between the customer and the service provider occur. Such buyer-seller
interactions or service encounters have a critical impact on the perceived service. The
Nordic Model, originated by Christian Gronroos and developed by others, adopts a
disconfirmation of expectations approach. This claims that customers have certain
expectations of service performance with which they compare their actual experience. If
the expectations are met, this is confirmation; if they are over performed, this is positive
disconfirmation; if they are underperformed this is negative disconfirmation. According
to Gronroos (1984), the quality of service as perceived by customers has two dimensions;
a technical or outcome dimension and a functional or process-related dimension.
What customers receive in their interaction with a firm is clearly important to
them and their quality evaluation. This is one quality dimension, the Technical Quality of
the outcome of the service production process. Interestingly, other customers
simultaneously consuming the same or similar services may influence the way in which
customers will perceive a service. Thus, the consumer is also influenced by how he
receives the service and how he experiences the simultaneous production and
consumption process. This is the second quality dimension, the Functional Quality of the
process, closely related to how the moments of truth of the service encounters themselves
and are taken care of and how the service provider functions. Illustrated in figure 2, there
are the two basic quality dimensions, namely, What the customer receives and How the
customer receives it; the technical result or outcome of the process (technical quality) and
the functional dimension of the process (functional quality. on customers buying
behaviour).
Total
Quality
Technical quality of
Functional quality
of the process:
HOW
concept of Perceived Service Quality and the model of Total Perceived Service Quality.
This approach is based on research into consumer behavior and the effects of
expectations concerning goods performance on post-consumption evaluations.
In
previous sections, the two basic quality dimensions (the what and the how) in the minds
of the customers has been discussed. However, the quality perception process is more
complicated. It is not the experiences of the quality dimensions alone that determine
whether quality is perceived as good, neutral or bad. d. As illustrated in figure 3, the
expected quality is a function of factors, namely, marketing communication, word of
mouth,
company/local image,
price,
customer
needs
and
values.
Marketing
Image
Expected
quality
Experienced
quality
Image
Marketing
communication
Sales
Image
Word of mouth
Public relations
Customer needs
and values
Technical
quality:
WHAT
Functional
quality:
HOW
In an attempt to explain such gap, Parasuraman et al (1985), came up with a gap model
which is intended to be used for analyzing sources of quality problems and help managers
understand how service quality can be improved. The model is illustrated in figure 4.
10
Word of mouth
communications
Personal needs
Past experience
Customer
Expected service
Gap 5
Perceived service
External communications to
consumers
Gap 4
Translation of perception into
Service delivery (including pre
service quality specifications
and post contacts)
Company
Gap 1
External communications to
consumers
Gap
3
Management
perceptions of
customer expectations
Translation of perception into
service quality specifications
Gap 2
Management perceptions of
customer expectations
11
Firstly, the model demonstrates how service emerges. The upper portion of the model
includes phenomena related to customers, while the lower portion includes phenomena
related to the service provider. The expected service is a function of the customers past
experience and personal needs and of word of mouth communication. It is also influenced
by the market communication activities of the firm. The service experienced, which in
this model is termed as perceived service, is the outcome of a series of internal decisions
and activities. Management perceptions of customer expectations guide decisions
regarding service quality specifications to be followed by the company when service
delivery (i.e. the execution of the service express) occurs. The customer experiences the
service delivery and production process as a process-related quality component and the
technical solution received by the process as an outcome-related quality component. As
illustrated, marketing communication can influence the perceived service and also the
expected service. This basic model demonstrates the steps that have to be considered
during analyzing and planning service quality. The five discrepancies (so-called quality
gaps) between the various elements of the structure are a result of inconsistencies in the
quality management process. The ultimate gap (Gap 5) i.e. the gap between expected and
perceived (experienced) service is a function of other gaps that possibly occurred in the
process. The five gaps are discussed below:
1. The Management Perception Gap (Gap1): This gap occurs when the
management perceives the quality expectations inaccurately due to inaccurate
information from market research and demand analyses, inaccurately interpreted
information about expectations, nonexistent demand analysis, bad or nonexistent
upward information from the firms interface with its customers to management
12
and numerous organizational layers which stop or change the information that
may flow upward from those directly involved in customer contacts. Necessary
action to open up or improve the various internal information channels has to be
taken in such situations.
2. The Quality Specification Gap ( Gap 2): This gap signifies that service quality
specifications are not consistent with management perceptions of quality
expectations due to planning errors or insufficient planning procedures, bad
management of planning, lack of clear goal-setting in the company and
insufficient support for planning service quality from top management. The
planning related problems vary depending on the size of the first gap. However,
even if there is sufficient accurate information on customer expectations, planning
of quality specifications may fail due to lack of real commitment to service
quality among top management. Commitment, dedication and devotion to service
quality among management as well as service providers are of highest importance
and priority in closing the Quality Specification Gap.
3. The Service Delivery Gap (Gap 3): This gap means that quality specifications
are not met by performance in the service production and delivery process due to
specifications which are too complicated and/or too rigid, employees not agreeing
with the specifications and therefore not fulfilling them, specifications not being
in line with the existing corporate culture, bad management of service operations,
lacking or insufficient internal marketing and technology and systems not
facilitating performance according to specifications. The possible problems here
are many and varied and usually the reasons for the existence of a Service
13
Delivery Gap are complicated and so are the cures. The reason for this gap can be
divided into three categories: management supervision, employee perception of
specifications
and
rules/customer
needs
and
wishes,
and
lack
of
technological/operational support.
4. The Perceived Service Quality Gap (Gap 5): This gap signifies that the
perceived or experienced service is not consistent with the expected service
resulting in negatively confirmed (bad) quality and a quality problem, bad word
of mouth, a negative impact on corporate or local image and lost business.
However, this gap may also be positive, which leads either to a positively
confirmed quality or over-quality. If a Perceived Service Quality Gap occurs, the
reason could be any one or a combination of those discussed above or other
additional reasons. Addressing these gaps could be a basis for developing service
processes in which expectations and experience consistently meet and a good
perceived service quality will enhance.
2.4
Recognition: A customer may feel more valued and important when recognized
and addressed by name
14
Status: For example, customers may feel that their status is enhanced by a
relationship with an organization, say, the Hilton.
Affiliation: peoples social needs can be met through relationships. For example,
many people join particular forums or associations to be a part of a community.
2.5
and consumers spread around the world. The use of hotel facilities such as: room,
restaurant, bar, nightclub or health club; are no longer considered a luxury. For many
people these services have become an integral component of lifestyle. Moreover, in the
last two decades, demand for and supply of hospitality services beyond that of the
traditional services intended for travelers have escalated the growth of the hospitality
15
industry globally, leading to intense competition in the market-place. One of the greatest
challenges facing hotel organizations today is the ever-growing volume and pace of
competition. Competition has had major implications for the customer, providing
increased choice, greater value for money and augmented levels of service.
In the hotel industry, Customer relationship management (CRM) is more than the
practice of collecting guest-centric data. Its the art of using historical, personal, and
experiential information to personalize a guests stay while generating incremental
revenue opportunities. For instance, knowing a traveler is an avid sports fan creates the
opportunity to market tickets to a game; knowing a guest had a less-than-memorable
experience in the hotel restaurant gives you a chance to win them back the next time they
are in town. With the latest offerings in CRM, hoteliers can develop comprehensive guest
profiles from reservation information and demonstrate to guests that the property is in
touch with their needs, drive guest-centric data down to the transaction level, allowing
employees and guest-facing technology to deliver greater value to the guest, generate a
realistic profile on the spending and stay patterns of guests, allowing the property to
create guest-centric marketing for increased loyalty and spending, etc.(Microsoft, 2006).
2.6
to stick with a brand above and beyond the objective and subjective assessments
(Sorce, 2002:10). Customers have considered the inadequacies of the classical/traditional
approach (marketing mix) in determining emerging marketing management phenomena
from the service marketing perspective. Customer retention appears to offer significant
benefits to organisations in saturated markets. Dawes and Swailes, (1999:36) posits that
successful customer retention circumvents the costs of seeking new and potentially risky
16
customers, and allows organisations to focus more accurately on the needs of their
existing customers by building relationships.
2.7
Market Share
As expressed by Ekelund,. (2009), sales figures do not necessarily indicate how a
firm is performing relative to its competitors. Rather, changes in sales simply may reflect
changes in the market size or changes in economic conditions. The firms performance
relative to competitors can be measured by the proportion of the market that the firm is
able to capture (Neely, 1998:5). Market share according to the hospitality Relationship
Building group, is the percentage or proportion of the total available market or market
segment that is being serviced by a company.
Mack (1996:32) stated that there are three steps to follow while retaining the
customers and increase market share; tailor products, prices and packaging for major
customer segments; the management structure of the organisation must change so that
regional executives play a larger role in responding to local markets and major customer
segments; And separate brand families while distribution models are deployed to serve
specific segments of the markets. Market share as an organisational performance
indicator is achieved only through customer satisfaction, retention and relationship
profitability.
2.8
Cost Reduction
Datta et al (2007:6) argued that, the longer customers are retained by an
organisation, the more obvious benefits will accrue. Most especially, as Reichheld and
Kenny (1990:20) observed that, it could cost five times more to obtain a new customer
than to keep an existing one. The costs of retention and this inequality are particularly in
17
evidence in the service sector (Ennew and Binks, 1996 and Reichheld and Sasser, 1990).
Meanwhile, IBM (2004:4) observed that hotel industry companies are facing ever-greater
competitive threats from foreign entrants. Hotel industry companies are therefore
compelled to actively seek out new revenue streams while defensively adopting a
renewed focus on efficiency and costs through Relationship Marketing Orientation.
In order to attain maximum efficiency and reduced costs in all its ramifications,
six business drivers for core systems agenda were introduced (IBM 2004:5). These are;
Operational efficiency (doing more with less); flexibility to deliver the fast time-timemarket demanded for new and innovative products (bringing differentiated new products
to market rapidly and efficiently is essential); an integrated, real-time view of the
customer i.e. cross-selling and up-selling are very important for hotel industry companies
seeking to reduce costs (customer centricity through database); Low-cost product
manufacturing, processing and distribution required by transaction-intensive retail hotel
industry companies.
3.
Methodology
The study employed survey method in the choice of 565 respondents. Since the
level of analysis was the individual workers and the customers of Le Meridien Hotel
Limited (Ogeyi Place), Port Harcourt the study worked with a sample size of 565, using
the Krejcie and Morgan (1970) sampling determination method. Stratified random
sampling method was also used to select the respondents and structured questionnaire
employed to generate quantitative data. The usable returned questionnaire was 409
(72%); See table1 below for details.
Table 3.1: Questionnaire Distribution and Retrieval
18
Company staff
No Administered
Employees (General)
214
163
161
28
Customers
246
177
173
31
Management Staff
105
82
75
13
Total
565
422
409
72%
4. Data Analysis
A. Quantitative Analysis
Scale reliability Analysis: Table 4.1, reports the reliability of the scales of the constructs
under study based on Cronbachs Coefficient Alpha (Nunnally, 1978 and Ahiauzu, 2006).
Cronbachs Alpha
.868
.752
.771
Table 2 reveals an overall Cronbachs Alpha Coefficient of 0.9 for C RM, 0.8 for
BP and 0.8 for relationship building as a contextual factor and were all higher than the
0.7 set standards. Also considering the reliability coefficient of the six sub-scales, they
are positive (Table 4).
Validity Test: The validity analysis was carried out through the SPSS software package,
using the Confirmatory Factor Analysis to test for the Multicollinearity, construct and
19
contents validity of the data. Table 3, revealed that there was no Multicollinearity,
because no variable correlated too high. The study determinants of CRM, BP and OF is
greater than 0.0001 and none of the correlation matrix value is greater than 0.8, thus no
need for elimination. The result revealed a very high KMO which is more than 0.50 to 1
and as such, we are confident that our sample is appropriate for this study and the data
adequate (Kaiser, 1974).
Table 4.2: Confirmatory results of factor analysis on CRM and BP
Extraction
Test
of
Dimensions of RMO
Initial
(Coefficient) Eigenvalues KMO Determinant Sphericity
Trust
1
0.515
3.159
0.829 0.142
0.000
-52.65%
Bonding
1
0.633
Communication
1
0.708
Shared value
1
0.567
Empathy
1
0.531
Reciprocity
1
0.605
Dimensions of BP
Market share
Initial
1
Customer retention
Costs reduction
1
1
Dimensions CF
Initial
Customer Building
Extraction
Test
of
(Coefficient) Eigenvalues KMO Determinant Sphericity
0.703
1.726
0.542 0.595
0.000
-57.55%
0.767
0.556
Extraction
Test
of
(Coefficient) Eigenvalues KMO Determinant Sphericity
1.266
0.633
(63.296%)
0.5
0.929
0.000
there was positive and significant association between the two main constructs, also,
there was evidence of convergent validity in the C RM and BP scale as the scales showed
correlation among them and converge on the common constructs.
The analysis of the frequencies on our organizational factor which is represented
by Relationship Building with its item questions showed very high impact of moderation.
Electronic and telephone hotel industry as well as, computerization of services are
claimed to have greater influence as confirmed with a mean score of 4.56. Also,
Customer Building most especially, communication and information greatly influence
the relationships as supported by a weighted mean score of 4.53. This therefore implies
that Relationship Building is highly influential when practicing C RM in the hotel
industry sector in other to achieve business performance.
Table 4.3: Results of Contextual Factor (Relationship Building) Influence on CRM and
BP
Variables
Statistical index
Technology (Ho)
Zero
order
partial
CRM
correlation
BP
0.642
Control
0.602
BP
Control
Source: survey data and SPSS output window version 15.0
Note: It is significant at 2-tail level.
0.184
0.271
21
implied that Relationship Building is a mediating variable that partly explains the
correlation between C RM and BP.
Cost reduction
.121**
.417*
.376**
.383**
.188**
.269**
B. Qualitative Analysis
4.2.1
service company. A customer expects a certain level of service quality from the luxury
hotel, which may not be duly met. This would be regarded as a gap in service quality.
The researcher tried to highlight the militating factors of CRM considering the gaps in
service quality as one of the main militating factors to CRM. The members of the focus
groups pointed out that there are loopholes in every system which can also be called as
gaps in the system. For the luxury segment hotels, the main constituent of the militating
factors to CRM is the gaps in service quality. The focus group members felt that it was
essential for the hotel to enquire about customer needs. The group members felt that the
hotel should know what they want and must make all efforts to know what they expect.
22
The customers expect a certain type of service quality from the luxury hotels for which
they are willing to pay a certain price. If the customers are not satisfied with the level of
service quality provided then they would undoubtedly demand an explanation from the
hotel. As one of the members of the focus group said,
To summarize, the hotel cannot afford to have service gaps in the long run for any
reason whatsoever because then it will simply run out of business.
4.2.2
Is there more to the militating factor of CRM than what is explained in the
gap model?
The focus groups conducted helped the researcher confirm that the gaps model
well explain the militating factors to CRM. However, there is more to the militating
factors of CRM than simply service gaps. The two other main constituents of the
militating factors are privacy issues and changing tastes and personal preferences of
customers.
From the discussions of members in the focus group, the researcher was able to
realise two other components to the militating factor of CRM which is mentioned above.
The members of the focus group were of the opinion that customers do not like intrusion
into their privacy at any cost, especially when they are paying for comfort. The luxury
hotels record all possible data bout the customers in order to know them well. This
according to some members could be a case of intrusion into a customers privacy and
personal space. The customers stay at the hotel for a few days to attain comfort and
relaxation not irritation. As one member commented, I would not pay a dime to get
irritated by the hotel who notes each and every interaction they have with me. This
23
shows that all customers may not prefer to allow the hotel to know them in-depth by
recording interactions.
To summarize, the researcher realises that service gaps, privacy issues, customer
preferences and the customers unwillingness to build a relationship with the hotel put
together can be called the militating factors to CRM. The hotels must know what their
customers want and not simply do what the hotel wants to do to keep the customers
happy.
4.2.3
exists mainly due to gaps in service, customers unwillingness to build relationships with
the hotel, the customers preferences changing over time and privacy issues. In general,
when there is a problem there needs to be a solution. If the problem is not solved, it
grows in size and ultimately causes complete failure of the organization.
In the hotel industry, the militating factors to CRM need to be addressed. The
focus group members were of the opinion that service gaps can be reduced by providing
efficient service quality of a standard which shall be accepted by a wide range of
customers. The hotel must well understand the needs of individual customers and cater to
them accordingly. They must not assume about the customers which leads to a gap in
service quality. To reduce the gap, the hotel must enquire instead of assuming. The
privacy issues must be taken care of in order to reduce the militating factors. As one
member said, I dont want the hotel to peep into my pants and say that Sir, we are
simply trying to know what is in your pants. This statement well explains that customers
24
dislike their privacy being invaded into and hampered as it completely disturbs and
annoys some customers.
To summarize, the hotel cannot afford to have service gaps in the long run for any
reason whatsoever because then it will simply run out of business.
5.
Discussion of Findings
This study revealed that electronic internet, telephone hotel industry and
25
26
because none of the members interviewed mentioned any sort of misusage of information
the hotel has about them. One customer said that the Le Meridien Hotel Limited (Ogeyi
Place) provides comfortable service to its customers but sometimes, they note too much
about the customers and it could make the customers feel insecure about their private
information being in records at a hotel.Le Meridien Hotel Limited (Ogeyi Place) notes all
possible information to serve the customers better, but it must know if the customers are
comfortable with having personal information in their records.
Another aspect of the militating factor of CRM is that tastes and preferences of
the customers change over time. It is not necessary that a customers wants will remain
uniform throughout.Le Meridien Hotel Limited (Ogeyi Place) customers said that the
hotel puts in serious effort to know what the current or updated preferences of the
customers are so that they can serve them better and meet their expectations.
The militating factor is small in case of Le Meridien Hotel Limited (Ogeyi Place),
but the militating factors in the hotel sector at large is not that small. The case of Le
Meridien Hotel Limited (Ogeyi Place) is one which should educate the other players to
follow their footsteps to help achieve better customer satisfaction. The following section
is the inference for the industry.
6. Conclusion and Recommendations
The research objective of explaining the militating factors of CRM in the hotel
sector with the help of the gap model was successfully accomplished. The gap model
does not fully explain the militating factors of CRM in luxury hotels and there is more to
the militating factors than only service gaps. Privacy issues are a major concern among
customers today. Luxury hotels must ensure that customer privacy is safeguarded. The
27
changing tastes and preferences of customers must be tracked and recorded to improve
service quality. Relationships once established must be maintained living up to the
expectations of the customers. One focus group member commented, The relationship
must be a genuine one meeting our level of expectations.
The study concludes that, to enhance desired value from both quality products and
quality services of the Nigerian hotel industry companies, relationship building is needed
to offer improve quality services to customers in order to meet their needs and put smiles
on their faces.
The hotel sector can deliver the service the customers want to avoid discrepancies
in service. However, if there is any service failure and the customers choose to
complain, the hotel sector can reduce the militating factors of CRM by simple
measures. Some of the possible ways to reduce the militating factors are as follows.
1. Accurate knowledge of what the customers want, need and expect
2. Once the management knows what the customers expect, relevant instruction
should be passed down to the members of staff to cater to the customers
expectations accordingly
3. The members of staff must carry out their tasks to fulfill the customers
expectations whole-heartedly. This helps in adding the extra personal touch.
4. The members of staff must maintain a cordial and warm relationship with the
customers, keeping in mind their individual preferences and fulfilling the same.
5. In case of service failure or dispute, the employees must act immediately to
resolve the situation and leave the customer pleased. The hotel sectormust
empower the staff to take immediate action and give them monetary allowance to
28
resolve the situation quickly without wasting time to consult senior management
like they do at Le Meridien Hotel Limited (Ogeyi Place).
6. The hotel sector can deliver the service the customers want to avoid discrepancies
in service. However, if there is any service failure and the customers choose to
complain, the hotels should consider this as a golden opportunity to restore
service quality. Literature available (mentioned earlier) suggests that only a small
percentage of the customers choose to complain. Efficient complaint handling
shall prove beneficial and advantageous to the hotel sector for its profitable
future.
7. Customers must be treated with highest regards, respect and dignity even if they
are rude. This shall prevent the situation from getting worse and service recovery
might be possible.
8. The service gaps must be closed by efficient management and supervision. The
staff should be carefully recruited and trained. Literature available confirmed by
employee interviews show that employees at Le Meridien Hotel Limited (Ogeyi
Place) undergo rigorous and detailed training to tackle situations and deliver top
class service quality. The hotels must select and recruit staff carefully and train
them to deliver remarkable service quality
29
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