Boosting Customer Satisfaction in the Hotel Industry of Thailand: An Examination of Strategies

An Examination of strategies
boosting customer satisfaction
in the hotel industry of Thailand

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1 Research background ............................................................................................................5
1.2 Economic trend......................................................................................................................5
1.3 Technologies and innovations trend .....................................................................................6
1.4 Tourism and Hospitality relationship.....................................................................................7
1.5 The importance of customer satisfaction...............................................................................9
1.6 Aim and Objective...............................................................................................................10
Research Structure.....................................................................................................................11
CHAPTER 2: LITERATURE REVIEW.......................................................................................12
2.1 Research concept.................................................................................................................12
2.2 Competitive hotel industry...................................................................................................12
2.3 Effective strategy for hotels.................................................................................................15
2.4 Growth of hotel competition in Thailand.............................................................................17
2.5 Total Quality Management (TQM)......................................................................................19
2.6 Service Quality (SERVQUAL) ..........................................................................................21
2.7 Customer Satisfaction..........................................................................................................23
2.8 Conceptual framework ........................................................................................................26
Conclusion ................................................................................................................................27
Chapter 3: Methodology................................................................................................................28
3.1 Overall methodology...........................................................................................................28
3.2 Research approach...............................................................................................................28
3.3 Research question................................................................................................................29
3.4 Research method: Qualitative research................................................................................29
3.5 Reliability and Validity........................................................................................................30
3.6 Data collection ....................................................................................................................31
3.7 Sampling procedures and Respondents ..............................................................................34
3.8 Data Analysis ......................................................................................................................35
3.9 Research Ethics ...................................................................................................................36
CHAPTER 4: DATA ANALYSIS ANF FINDINGS....................................................................36
4.1 Introduction .........................................................................................................................36

4.2 Thematic analysis.................................................................................................................36
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................47
5.1 Conclusion...........................................................................................................................47
5.2 Recommendation.................................................................................................................49
REFERENCES..............................................................................................................................52
APPENDIX....................................................................................................................................64
Statement of Confidentiality
The undersigned reader of the research work acknowledges that all the information stated
in it is completely confidential and disclosure of it will be permissible only after the written
consent of the owner.
Further, it is acknowledged that the information other than that which is available at
public domain can be accessed without prior permission. Otherwise, the reader will come under
the periphery of illegal access of data.
_________________
Acknowledgements
The research would not have reached to its conclusion without the guidance and
encouragement of certain people whom I would like to acknowledge in this section. A heartiest
thanks to professor ______, who introduced me to this topic and took me towards the light of
knowledge. I got to learn various new aspects of the topic through you help.
Special thanks to my parents who always encouraged me to complete any task effectively.
There support helped me in competing the project in specific time frame. Further, a heartfelt

thanks to my friend _____, who helped me in understanding various aspects of research and
finding out the best method for the present study.
In the end, I would like to thank all the people who have made tangible or intangible
contribution in making this research a successful one.
Abstract
Customer satisfaction is an important aspect for the growth of an organization. The
present research aims at analysing the hotel strategies In Thailand. The evaluation criteria of the
hotels’ strategies need to generate for acquiring people attractiveness and be imperative with
customer satisfaction to further creating brand royalty. In the present research qualitative type
of data analysis has been used where themes have been formulated. The data has been collected
from 15 tourists in the interview format.
It can be concluded from the research that; greater delivery of service quality can help in
better achievement of customer satisfaction. Application of TQM and SERVQUAL can help in
providing better services. Fulfilling of basic demand such as, ambience of the hotel, smooth
check in and check out process, installation of self-check in process etc. can help in better
delivering of services.
In the end, it can be recommended that hotels in Thailand must involve in Training the
employees and staff members at every day basis, Upgradation in technology toolkit, Setting up
effective communication channel, etc. It will help in better delivery of services.
Glossary
TQM: Total quality management
SERVQUAL: Service Qualit

CHAPTER 1: INTRODUCTION
1.1 Research background
This study extends the existing research on strategies used in the hotel which is concerned
to create customer satisfaction. Also, this research divides introduction into two parts. For
explaining this research, it would be focused on hotel industry trends and the importance of
customers’ satisfaction. Nowadays, global hotel industry’s demands are defined by the
economics, increasing of domestic trend and travelling. Besides this, the World Travel and
Tourism Council (WTTC), travel and tourism business are gradually growing at the same time.
As results of fact, they have gained and grown broadly with GDP which is around 10 percent of
global GDP (Best hospitality degrees, 2017) (IHG, 2017). Moreover, the report from Deloitte,
2017 highlights that “The world of travel and hospitality has entered a new era of growth and
transformation. Global business travel spending to hit a record-breaking $1.2 trillion in 2015,
up five percent from the previous year.” It means that hotel business or industry and hotel trend
is globally acceptable, people interests travelling, and the hotel business or industry becomes
more competitive because the effect of growth. This study will induce everyone to see the bigger
picture of the hotel trends which is the main effects of competition in hotel business in the
present time. Competition can be also created within the growth country as China which is
development of economics and political systems (Guillet, Zhang, and Gao, 2011). Moreover,
high rate of fluctuation towards customer household spending from good to service and
experiences directly effects sustainability of the growth rate in leisure travel, eventually leading
to high gross domestic product (GDP) (Pigram and Wahab, 2005).
1.2 Economic trend
Beginning with economy, as the main impact of hotel trends, it can be said that hospitality
and other travel segments need to follow the hotel trend to cope with the flows of economic
conditions for gaining the competitive advantage in hotel segments. For example, economics
recession effects the consumers budget to decrease travelling (Ivanov, and Webster ,2007). In the
big picture, hotel industry has many kinds of aspects as hotel industry have been changing and
modifying. The economic shifts in hotel industry can have impact on employment and education
as well. At the same time, hotel companies will increase employees’ salaries for retaining the
existing staff. Besides this, hotel staff will be more selective in hiring the staff who have
5

something unique will have priority. Owners of the hotels have concerned towards continuing
and incorporating genuine sustainability of the business. It is the most important element when
customer choose hotel to stay. Trend in changing of the economies reflects that hotel business
must adapt and find the way to compete in the market on the basis of demand and supply within
the hospitality industry.
1.3 Technologies and innovations trend
Another trend in the market is the technology and innovations which helps in operating the
hotel business smoothly. Creative hotels and staffs seem to be practically important to hotel in
nowadays, such as implementation, cost, and strategies. The technologies and innovations are the
main elements to achieve in competitive hotel market as new design of properties and hotel
operation. Hotel operation should be supported by new technology to change trend with the aim
of creating balance of the hotel including hotel concepts to attract customers and gain
competitive advantage in hotel industry. Using the advantage of shift toward hotel trends to
operate, many environmental segments such as economy, customer need, and other elements
which effects to hotel’s operations (Sheldon, 1983). Furthermore, new technologies and
innovations has dominated hospitality industry and adjust demand become fluctuating. For
example, wireless technologies on communication system such as voice, text, and data
communication toward staffs, managers, department and customer who contact to the hotels is
now adapt to be comfortable in communication via the hotels. Beside this, there are many
intelligent innovative systems that hotels can comfortably use to operate such as software and
lightweight, hands-free or handheld communication devices to deliver the best customer service
to customer as it can become the strong strategy of the hotel, evaluate with good service can
achieve competitive advantage. The wireless become more necessary in delivery service of the
hotel in types of communication such as ordering food and drink, reservation (check-in and
check-out), customer service, credit card, and operator within the company (Kim, Lee, and Law,
2008). Technologies come with use of tablet makes it easier for customer to order food and drink
which also make for room service when problem occurred, and enable to use with facilities
within the hotel room. It can reduce number of staff or lead the staff having more time to treat
customer in specific way. New technologies and innovations create the new position in the hotel
such as in Hong Kong have person who is responsible for designing, producing and
6

implementing the electronic systems for the hotels. Therefore, advantages of technologies and
innovations are one of the most important element which is necessary in the hotels for creating in
various way of service and using it to build different concepts for uniqueness to achieve aims and
competitive advantage in hotel market (Bilgihan, Okumus, Nusair, and Joon-Wuk Kwun, 2011)
(Sheldon, P. J., 1983).
1.4 Tourism and Hospitality relationship
Tourism industry sector is the one of the world’s largest and fastest growing industry in the
world of economy. In many countries, tourism and hospitality are primary factors for the
country’s economic development as it can stimulate new economic activities and creates the
internal competition, eventually, performing the strategy for customers (Creaco and Querini,
2003).
For Instance, UNWTO (United Nations World Trade Organization) has gained members over
one billion has been registered worldwide in 2012 (Kester, 2013). However, hospitality is not
effective as same as tourism department because of economic problem, developed technology
and innovation, also high unemployment level occurred. These fact effects hotel and travel
industry directly and stimulate two departments to launch and develop new strategies. As
mention above, new strategies, and technologies and innovations can increase the diversity of the
properties in the hotel market.
Another main problem is contradictory situation in which people have less money but they prefer
to travel regularly. Otherwise, people will choose the destination where they can acquire special
experiences. Moreover, uniqueness is important strategy of the hotel trend which is so much
needed in hotel business industry and they also grow along with financial crisis. This problem
can create variety of the hotel trends to be fluctuating for many years ago. So, you can see that
the hotel trend changes following the environment aspects, economic situation, new technologies
and innovations, and customers’ behavior (Lafferty, and van Fossen, 2001).
Refer to Hotel industry which is recognized as global industry with many types of producer and
customer around the world. The hotel facilities which is regularly used for hotel industries such
as room, dining or restaurant, bar and club, nightclub and health club are not defined as luxury.
These services defined as specific components of lifestyle to capture some group of people who
prefer to have these special things. However, especially, the growth of hotel industry in global is
7

the main reasons for strategy which is growing along with travel industry, the strategy inclusive
of innovation and technology that hotel uses to attract people and achieve people satisfaction
(Kim and Mauborgne, 1997)
In case of strategy, it can make hotel successfully achieving by using strategy to generate the
revenue, competitive advantage and to create brand awareness (Porter, 1996). In addition to this,
there are two sides market can be emphasized where one side is travelers who prefer to spend
less on travelling, eat cheap food, and low-cost budget with accommodation. On the other hand,
travelers who would like to travel with luxury and high-end hotel such as theatres, night club, bar
shopping place, theme park, casinos, and special restaurant in the hotel.
However, there is space and gap toward hospitality business that could be competitive with hotel
market, it is number of small boutique hotels with some attractive properties, unique building,
and importantly low-cost budget. This is a good choice for customer who are concerned with the
price (Bojanic, 1996). Especially, this type of hotels are trendy and it can generate most group of
people more than huge hotels. There are many different types of hotels that are made for
different type of customers. Various trends are launched many types of hotel accommodation
because some of people prefer to choose something smaller and different such as high quality of
bed‐and‐breakfast type of hotels.
Still, the need for personal service and specific environment are increasing to explain the
renowned nature of the smaller hotels, new trend hotels. For example, ”Widespread hotel” is the
unique huge quality place hotel with specific building and unique concept to use. People who
would like nature and private hotel will choose because the guest can be familiar with the nature
and being a part of local life. This type of hotel is becoming so much popular in Switzerland,
Croatia, Corsica etc. A lot of hotels are located in historic building to create the hotel’s story of
uniqueness and awareness, also provide complete facilities such as central reception, coffee
shop, and restaurant. The new models of hotel can be concluded as another new step of hotel
business to shift the trends of market and these made to be competitive towards the market (Hill,
2012)(Quattrociocchi, and Montella, 2014)
8