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INTRODUCTION OF THE STUDY
CHAPTER -I
SCOPE OF THE STUDY
RESEARCH METHODOLOGY
CHAPTER-III PROFILE
INDUSTRY PROFILE
COMPANY PROFILE
FINDING
SUGGESSION
CONCLUSION
The 'Customer is the king!'. And, if we believe this timetested and accepted philosophy, then
we also know as to how difficult it is to make the 'King' happy. The newage customer is ighly
demanding as far as expectations of hospitality services from hotels. Human interaction is an
important part of managing all facets hotel operations. Each interaction between the customer
and the hotel staff plays an important role in customer’s unique experience at the hotel.
Therefore, human interaction is the key to making a customer feel like a king.
Young, highly qualified and globally exposed General knowledge and social conscio
usness is high .
Expectations of quality of service and hygiene are very high.
More and more women are also the potential customers
Work life involves long working hours
Customer come from diversified national and cultural backgrounds .
Modes of interaction have dramatically increased ‘
Voice response applications are replacing human responders .
We may look at the visit of a customer to the hotel as a project i.e. it is unique, temporary,
and evolving. Research indicates that Emotional Intelligence (EI) is a key determinant in
guarantying a project’s success. In such an environment, it is not surprising to see that the
hotel personnel with higher EI easily surpass many of their senior colleagues. Also, in the
hotel environment, the total experience of the customer is directly affected by the team work
of all concerned. Thus, individual contributions merit lesser significance than the ability of
people to work with ALL
stakeholders. To repeat, people skills are at the heart of customer satisfaction. The journey of
EI commences with discovering more about ourselves, understanding emotions of others, and
realizing their impact in the work environment. Organizational success is heavily dependent
on ability to create an Emotionally Intelligent work environment. In era of rapid change and
high competition, Emotionally Intelligent workforce is the most
valuable asset of any organization.
A two day programe titled “Customer Satisfaction in Hotel Industry : Role of Emotional
Intelligence” is being organized for the Managers of Hotels, under the aegis of Continuing
Education and Quality Improvement Programe of the Indian
Institute of Technology Bombay, Mumbai.
Customer satisfaction is a business philosophy which tends to the creation of value for
customers, anticipating and managing their expectations, and demonstrating ability and
responsibility to satisfy their needs. Quality of service and customer satisfaction are critical
factors for success of any business (Gronoos, 1990; Parasuraman et al., 1988). As Valdani
(2009) points out: enterprises exist because they have a customer to serve. The key to achieve
sustainable advantage lies in delivering high quality service that results in satisfied customers
(Shemwell et al, 1998). Service quality and customer satisfaction are key factors in the battle
to obtain competitive advantage and customer retention. Customer satisfaction is the outcome
of customer’s perception of the value received in a transaction or relationship, where value
equals perceived service quality, compared to the value expected from transactions or
relationships with competing vendors (Blanchard & Galloway, 1994; Heskett et al., 1990;
Zeithaml et al., 1990). In order to achieve customer satisfaction, it is important to recognize
and to anticipate customers' needs and to be able to satisfy them. Enterprises which are able
to rapidly understand and satisfy customers' needs, make greater profits than those which fail
to understand and satisfy them (Barsky & Nash, 2003). Since the cost of attracting new
customers is higher than the cost of retaining the existing ones, in order to be successful
managers must concentrate on retaining existing customers implementing effective policies
of customer satisfaction and loyalty. This is especially true in the hotel industry. Nowadays
one of the biggest challenges for managers in the hotel industry is to provide and sustain
customer
satisfaction. Customer requirements for quality products and service in the tourism industry
has become increasingly evident to professionals (Lam & Zhang, 1999; Yen & Su, 2004).
Guest relationships are a strategic asset of the organization (Gruen et al., 2000) and customer
satisfaction is the starting point to define business objectives. In this context, positive
relationships can create customer’s higher commitment and increase their return rate. Long-
term and reciprocally advantageous relationships between customers and the hotel is
becoming progressively important because of the highly positive correlation between guests'
overall satisfaction levels and the probability of their return to the same hotel (Choi & Chu,
2001). Hotels are increasing their investments to improve service quality and the perceived
value for guests so as to achieve better customer satisfaction and loyalty, thus resulting in
better relationships with each customer (Jones et al., 2007). Relationship quality has a
remarkable positive effect on hotel guests’ behavior: it creates positive word of mouth
(WOM) and increments repeated guest rates (Kim et al., 2001). In this paper, after a review
of the main literature on customer satisfaction and retention in the hotel industry, we confront
a real case (Hotel Sporting Club of Cefalù, Sicily, Italy) and analyze, using a qualitative
methodology, whether there is a positive correlation between the customer oriented business
philosophy, adopted by the management of Sporting Club, and the achievements obtained in
terms of customer satisfaction. We study the case of Sporting Club Hotel using the critical
incident approach (Hayes, 2008) with semi-structured and unstructured interviews (Lindlof &
Taylor, 2002), that we performed to both management and customers. Our empirical study
gathers information by the combined use of different interview methodologies in order to
evaluate the influence of customer oriented business philosophy on customer satisfaction. We
analyze the results to highlight eventual gaps among managers' expectation and results and to
evaluate the overall customer satisfaction level for the hotel and the specific one for each
service supplied. We conclude discussing the results and proposing improvements in
customer satisfaction management for the hotel.
OBJECTIVE OF THE STUDY
This program will help the hotel managements in enhancing customer satisfaction
through development of an Emotionally Intelligent work environment.
Objectives of this program are:
A study only covers the BANANA leaf (namakkal)city for our survey. customer satisfaction
is the most common objective in the study. The study is related only to the customer
satisfication.And also this study only applicable for BANANA leaf hotel. Through this study
the hotel will be able to improve their service,quality,customer response, and employee
satisfaction according to customers expects .
LIMITATION OF THE STUDY
The time period was limited and the study has to be conducted within a short span
As employee perception keeps changing, the findings of the study may not hold good
in tne long run
Respondents are not answering truly another limitation of the study.
Data was collected only through questioners, so personal bias on involved in this
study
RESEARCH METHODOLOGY
In order to verify the relationship between the independent and dependent variables, four
hypotheses were developed. The framework for the study was adopted and modified from the
empirical study by kannan.
(2002) depicted below illustrates the relationship between career development, compensation
& rewards, job security and working environment
Research implies the study & exploring knowledge to get the new ideas. Research
methodology is a way of solving the research problem systematically. Research Method &
Research Methodology, these are two different but related terms. Research Method is a part
of Research methodology. The scope of Research
“When we talk of research methodology, we not only talk of research methods but also
consider the logic behind the methods we use in the context of our research study. We
should explain why we are using a particular method or technique and why we are not
using others so that research results are capable of being evaluated either by the
researcher himself or by others.”
This says that the research design depends upon some common design questions like what to
study, why to study, where to study & what type of data is required. The need is to follow the
systematic step-by-step approach to solve a research problem.
As pointed out by Rozakis that “ Before you begin your research, I recommend that you
draft a working outline”.
Every research must start with a predefined & clear-cut objective. This requires that research
objective should be defined clearly & planning should be done to get the answers to what,
why & where type questions. Chapter 3 : Research Methodology
LITERATURE REVIEW
In the past, tourism has been often considered as the natural outcome of environmental and
cultural resources of a specific territory. In this view, the role of hospitality enterprises
cannot influence demand levels and is merely limited to the supply of services to tourists. Le
Blanc & Nguyen (1996) suggest that marketing efforts should be directed to highlight the
environmental characteristics of the location in order to attract new customers. The constant
increase of demand of touristic services, and the request for higher standards by the guests,
has enforced the competition among hospitality suppliers and highlighted how the attractivity
of the touristic destination is influenced by the standards of the services provided by the local
hotels. In this scenario, providing high quality services and improving customer satisfaction
are widely recognized as fundamental factors boosting the performances of companies in the
hotel and tourism industry (Barsky & Labagh, 1992; Le Blanc, 1992,; Le Blanc et al., 1996;
Stevens et al., 1995, Opermann, 1998). Hotels with good service quality will ultimately
improve their profitability (Oh & Parks, 1997). In a competitive hospitality industry which
offers homogeneous services, individual hoteliers must be able to satisfy costumers better then
their counterparts (Choi & Chou, 2001). To obtain loyalty and to outweigh other competitors,
hotel providers must be able to obtain high levels of customer satisfaction for the service
supplied. There are several studies that analyze the needs and the desires of tourists. A
research by Wuest et al. (1996) defined the perception of hotel attributes as the degree to
which guests may find various services and facilities critical for their stay in a hotel. Hotel's
attributes such as cleanliness, price, location, security, personal service, physical
attractiveness, opportunities for relaxation, standard of services, appealing image, and
reputation are recognized as decisive by travelers to assess the quality of the hotel
(Atkinsons, 1988; Ananth et al., 1992; Barsky & Labagh, 1992; Cadotte & Turgeon, 1988;
Knutson, 1988; McCleary et al., 1993; Rivers et al., 1991; Wilensky & Buttle, 1988).
According to a survey carried out by Barsky & Nash in 2006, regarding the main hotel chains
worldwide, between 2002 and 2005, the importance of loyalty programs for guest's decision
on where to stay increased from 32% to 34%. Although the search for new locations is
certainly the most important factor for many tourists, several studies highlighted that there is
a good portion of customers that chose to repeat their holidays' destination, showing a
certain degree of loyalty (Oppermann, 1998; Fyall et al., 2003). These studies on tourists'
loyalty indicate five
Main factors which affect the repetition of the trip to the same tourist place:
The Desire To Reduce The Risk Of Making A Mistake When Choosing An
Alternative Destination;
The Chance To Meet The Same People Again ;
The Emotional Affection To A Specific Place;
The Possibility To Explore The Place Better ;
The Desire To Show The Place To Other People.
Hoteliers need to fully acknowledge which service attributes are most likely to influence
customers’ choice intentions (Richard & Sundaram, 1993). Customer satisfaction practices
can help them to identify the crucial.
CHAPTER –III
INDUSTRY PROFILE
INTRODUCTION
Hotels that provide higher salaries, strong reputation, and benefit-in-kind can easily retain
their employees because the employee satisfaction is achieved. Employee satisfaction is the
employees who enjoying their positions and feels rewarded for their efforts will ultimately be
the most successful, as well as the most beneficial to their companies. Employee satisfaction
is also used to describe the employees’ happiness, contented, fulfilling their desires and needs
at work. Employee satisfaction is a factor in employee motivation, employee goal
achievement, and employee morale in the workplace. A mediocre employee would like to
stay in the organization if the employee satisfied with the workplace environment. Moreover,
the longer an employee works for a company, the more valuable they are becoming,
especially in the service industry. Heskett et al. (1997) as cited in Abdullah (2011) stated that,
staff training programs can helps to create the employees satisfaction and loyalty. Besides,
according to Sturgeon (2006) also agrees that training is one of the main drivers of
employees’ satisfaction. From here, researchers also know that an industry which offers
training programme to their employees may increase their employee satisfaction.
The employee satisfaction will directly affects the employee loyalty in hotel industry.
Employee loyalty can be described in terms of a process, where certain attitudes give rise to
certain behaviors. Loyalty has two dimensions which is internal and external. Loyalty is a
fundamentally of an emotional attachment. The internal dimension is the emotional
components. It includes the feelings of caring, of affiliation and of commitment. Employer
must understand their employees feeling and the employees who are facing any problem can
consult with counselors that provide by the employer. This can increase the employees’
loyalty to the employer by reducing the turnover rate. Next, external dimension has to do
with the way loyalty to manifests itself. This dimension is comprised of the behaviors that
display the emotional component and is the part of loyalty that changes the most. According
to Rider (1998) as cited in Mehta et al. (2010) found that trust, loyalty and related norms may
have a crucial economic role to play and it does not follow that regulation should be used to
foster their development. In addition, according to Cunha et al. (2002) state that the
relationships of the interplay between culture, structure and leadership which are managed to
build employee loyalty. These processes are effective because the employees reinforce with
one another. Finally, according to Heskett et al (1997) as cited in Abdullah (2011) stated that
the model chain of relationships between profits and growth are linked to the customer
loyalty while customer loyalty is linked to customer satisfaction, in turn, customer
satisfaction is linked to service value while service value is linked to employee productivity,
whereas employee productivity is linked to employee loyalty, employee loyalty is in turn
linkedto employee satisfaction, and employee satisfaction is linked to internal quality of work
life.
The precursor to the modern hotel was the inn of medieval Europe. For a period of about 200
years from the mid-17th century, coaching inns served as a place for lodging for coach
travelers. Inns began to cater to richer clients in the mid-18th century. One of the first hotels
in a modern sense was opened in Exeter in 1768. Hotels proliferated throughout Western
Europe and North America in the early19th century, and luxury hotels began to spring up in
the later part of the 19th century.
Hotel operations vary in size, function, and cost. Most hotels and major hospitality companies
have set industry standards to classify hotel types. An upscale full-service hotel facility offers
luxury amenities, full service accommodations, on-site restaurant(s), and the highest level of
personalized service, such as a concierge, room service and clothes pressing staff. Full
service hotels often contain upscale full-service facilities with a large number of full service
accommodations, on-site full service restaurant(s), and a variety of on-site amenities.
Boutique hotels are smaller independent, non-branded hotels that often contain upscale
facilities. Small to medium-sized hotel establishments offer a limited amount of on-site
amenities. Economy hotels are small to medium-sized hotel establishments that offer basic
accommodations with little to no services. Extended stay hotels are small to medium-sized
hotels that offer longer-term full service accommodations compared to a traditional hotel.
Timeshare and Destination clubs are a form of property ownership involving ownership of an
individual unit of accommodation for seasonal usage. A motel is a small-sized low-rise
lodging with direct access to individual rooms from the car park. Boutique hotels are
typically hotels with a unique environment or intimate setting. A number of hotels have
entered the public consciousness through popular culture, such as the Ritz Hotel in London.
Some hotels are built specifically as a destination in itself, for example at casinos and holiday
resorts.
Most hotel establishments are run by a General Manager who serves as the head executive
(often referred to as the "Hotel Manager"), department heads who oversee various
departments within a hotel (e.g., food service), middle managers, administrative staff, and
line-level supervisors. The organizational chart and volume of job positions and hierarchy
varies by hotel size, function and class, and is often determined by hotel ownership and
managing companies.
In Mumbai, the hotel industry has been recognized as a potential prospect in the
growth of the service industry. Mumbai government’s determination is to tap the potential of
the tourism industry. For 2007, the number of foreign tourists who visited Mumbai exceeded
the 20 million target set by the government. In terms of revenue, this industry earned RM46.1
billion which surpassed the targeted revenue of RM44.5 billion1. As part of the tourism
industry, the hotel sector is entrusted with a significant role to continuously assist the
Mumbai government in realizing the economic potential of the industry (Kasim & Minai,
2009).
The labor force in hotel and restaurant industry is about 800,500 (“Guna Tenaga
Employment, 2009). In addition, based on the statistics by Mumbai Association of Hotels
(2011) from 2007 to 2010 the number of tourist arrival has increased from 20.9 million to
23.6 million and this was followed by the increment in the number of hotels and motels from
1567 to 2005. However, the growth is impeded by the high turnover rates of employees in the
hotel industry. Many organizations in the hotel industry face difficulties in retaining
employees since the organization unable to identify the factors which contribute to employee
satisfaction and the resultant loyalty.
Retention experts said that hotels spend thousands dollar to train for each new employee to
replace a seasoned worker who leaves every year. It is no longer a startling fact that the cost
of losing an employee is between half and one-and-a-half times their annual salary (CHA
International, 2009). So, recruiting new staff is a time consuming and expensive exercise that
directly affects the organization’s bottom line.
The hotel industry has higher turnover rate issue from the loyalty of employees towards the
company. This may linked with the employees’ Employee satisfication that the company
given. Therefore, organizations should be concerned about their employees’ level of
Employee satisfication because employees’ satisfaction increases employee retention. Robert
Habeeb who is president of First Hospitality Group in 2001 says that, “If you treat your
employees more like hotel guests, you will reduce turnover. Then employees will treat hotel
guests better, which spreads good buzz, encourages repeat visits and voila, makes the
business more profitable” (Mcconnell & Huba, 2001).
however employee loyalty is a dependent variable in this research. In this research,
researchers have extracted few factors of employee satisfaction which affects employee
loyalty from previous research as independent variables in this research. Researchers aim to
ensure that the relationship of the factors in the employee satisfaction and employee loyalty
in Hotel Industry. Therefore, the specific objectives of this research are to find out the
relationship of those factors of employee satisfaction and employee loyalty in hotel industry.
The factors of employee satisfaction extracted from previous research are career
development, compensation and benefits, job security and workplace environment.
COMPANY PROFILE
Komala Vilas extends its 74 years legacy of delivering authentic complete South Indian
experience in Kolkata, India. Banana Leaf, a venture of Komala Vilas, presently a 110 seat
restaurant on a sprawling spread of 3500 sq feet of comfortable seating was started in 2002
with the concept of “south Indian food … served fresh”.
Banana Leaf delivers hygienic, fresh authentic south Indian cuisine. The Kitchen at Banana
Leaf is a spacious automated unit – which has been very careful designed and detailed to
meet Health & Food standards. The accomplishments used are amongst the best available in
the market to deliver quality and healthy food to its customers. The Chefs at banana leaf are
from South India – to deliver unadulterated authentic South Indian cuisine.
Apt restaurant temperature, ambient lighting conditions, pleasant décor, comfortable seating
arrangement and backed by a dedicated team of workers, chef and management who are
working around the clock striving to take care of every intricate needs to provide its
customers with the complete pleasurable experience.
The menu at banana leaf – extends beyond idly, vada and dosas – the generic purview at large
about South Indian cuisine. The cuisine with the evolving world has evolved and married
varied different accomplishments, style of preparation, cooking and serving methodology.
The menu includes a vast variety of authentic taste as well as the evolved variations of South
Indian cuisine mixed with regional delicacies and the evolution of south Indian cuisine as a
whole. We invite you to a pleasurable, affordable, hygienic, fresh food experience at banana
leaf.
CHAPTER –IV
DATA ANALYSIS AND
INTERPRETATION
TABLE NO 1
TABLE
AGE
Cumulative
Frequency Percent Valid Percent Percent
Valid MALE 19 76.0 76.0 76.0
FEMALE 6 24.0 24.0 100.0
Total 25 100.0 100.0
INTERPRETATION :
From the above table ,it depicts that 76% of the responents are male &
24% of the respondents are female
CHART
TABLE NO 2
TABLE
OCCUPATION
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 32% of the responents are student &
36% of the respondents are self employee&20% of the responents are
professional&12% of the respondents are house wife
CHART
TABLE NO 3
TABLE
MARITAL STATUS
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 64% of the responents are married &
36% of the respondents are unmarried
CHART
TABLE NO 4
TABLE
SERVICE, FOOD&ATOMOSPHERE
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 32% of the responents are excellent
& 28% of the respondents are good&24% of the responents are average&16%
of the respondents are poor
CHART
TABLE NO 5
TABLE
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 48% of the responents are monthly&
32% of the respondents are weekly&20% of the responents are rarely
CHART
TABLE NO 6
TABLE
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 28% of the responents are veg&
32% of the respondents are non veg&40% of the responents are both
CHART
TABLE NO 7
TABLE
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 32% of the responents are bill
boart& 40% of the respondents are news paper&16% of the responents are
friently&12%% of the responents are others
CHART
TABLE NO 8
TABLE
Cumulative
Frequency Percent Valid Percent Percent
VARIETY OF PRODUCT
9 36.0 36.0 100.0
VARIOUS
INTERPRETATION :
From the above table ,it depicts that 36% of the responents are low
price& 28% of the respondents are better taste&36% of the responents are
variety of product various&12%% of the responents are brand others specify
CHART
TABLE NO 9
TABLE
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 48% of the responents are yes&
20% of the respondents are no&16% of the responents are not money&16% of
the responents are none
CHART
TABLE NO 10
TABLE
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 52% of the responents are its free
space& 20% of the respondents are not free space&16% of the responents are
small space&12% of the responents are congested
CHART
TABLE NO 11
TABLE
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 44% of the responents are yes
clearly intimating& 20% of the respondents are no clearly intimating &12% of
the responents are yes intimation at all &24% of the responents are some only
intimating
CHART
TABLE NO 12
TABLE
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 48% of the responents are fast
service& 36% of the respondents are slow service &8% of the responents are
not sufficient service&8% of the responents are not good service
CHART
TABLE NO 13
TABLE
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 48% of the responents are yes
season wise service& 52% of the respondents are no special offer
CHART NO 13
CHART SHOWING WILL RESTAURANT OFFER ANY SPECIAL
DISCOUNT ON PRICES OF RESPONENTS
CHART
TABLE NO 14
TABLE SHOWING ARE YOU WAITING FOR LONG TIME ALL THE
BILLING SECTION AT RESTAURANT OF RESPONENTS
TABLE
ARE YOU WAITNIG FOR LONG TIME ALL THE BILLING SECTION AT
RESTAURANT
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 72% of the responents are yes&
28% of the respondents are no
CHART NO 14
CHART SHOWING ARE YOU WAITING FOR LONG TIME ALL THE
BILLING SECTION AT RESTAURANT OF RESPONENTS
CHART
TABLE NO 15
TABLE SHOWING HAVE YOU WANT ANY FOODS AT
RESTAURANT JUST BY VISITING FIRST TIME OF RESPONENTS
TABLE
HAVE YOU WANT ANY FOODS AT RESTAURANT JUST BY VISITING 1ST TIME
Cumulative
Frequency Percent Valid Percent Percent
CHART :
TABLE NO 16
TABLE :
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 52% of the responents are low
price & 12% of the respondents are no & 12% of the respondents product
quality & 8% of the respondents are said more than seasonal offers &
16% of the respondents are said ambience
Thus the most of the respondents are low price
CHART NO 16
CHART :
TABLE NO 17
TABLE :
INTERPRETATION :
From the above table ,it depicts that 24% of the respondents are
good & 36% of the respondents are normal & 24% of the respondents
product quality & 16% of the respondents are said poor
Thus the most of the respondents are normal
CHART NO 17
CHART :
TABLE NO 18
TABLE :
Cumulative
Frequency Percent Valid Percent Percent
INTERPRETATION :
From the above table ,it depicts that 44% of the respondents are go
led very satisfied & 28% of the respondents are satisfied & 28% of the
respondents not satisfied & 16% of the respondents are said poor
Thus the most of the respondents are normal
CHART NO 18
CHART :