Customer Behaviors: Understanding Expectations in the Hospitality Industry

This report analyzes the different elements of change in organizational offerings through understanding customer expectations in the hospitality industry, using Hyatt Regency as an example. It examines service standards, retention strategies, and managing customer expectations. The report aims to study the variable characteristics of customer expectations and how it can help businesses optimize operations.

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Executive summary
The report aims at exemplifying the different elements of change in the organizational offerings
through the understanding of the expectations of the customers. In this connection, Hyatt
Regency, is considered for assessing the manner in which the organization classifies its service
offerings, customer expectations and the different service standards. It has helped in
understanding the different policies and steps that might be considered by the business that might
assist in optimizing the operations. The purpose of undertaking the research is to study the
variable characteristics of customer expectations and the manner in which it might help the
business in maintaining the smooth functioning of the same.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Classifying the Service Process...................................................................................................3
3. Managing Customer Expectations...............................................................................................5
4. Service Standards and Retention Strategies................................................................................6
5. Conclusion...................................................................................................................................7
References........................................................................................................................................8

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1. Introduction
The development of organizations is dependent on the identification of the needs of the
customers. The satisfaction of the customers is dependent on the quality and the utility derived
from the products and the services that are designed by the business (Kao, Tsaur and Wu
2016). Therefore, organizations formulated different strategies through which the customer
satisfaction can be maximized by assessing the expectations of the clients relating the quality and
different standards that are set by the same. The product and service proposition of businesses
exemplifies a thorough study of the expectations of the customers as per the market propositions.
In this context, the report will be focusing on the studying the service offerings of Hyatt
Regency, Sydney, in conjunction with the customer expectations. The different strategies that
are undertaken by the Hyatt Regency have contributed to the competitive advantage of the same
while maintaining their standards as per the needs of the customers.
The purpose for undertaking the research is to identify the different service offerings of
the concerned Hyatt Regency in the hospitality industry and thereby define different standards
relating to the expectations of the customers. It will be helping to understand the diverse
customer retention strategies that might be undertaken by the business while operating in the
globalized market scenario.
2. Classifying the Service Process
Degree of simultaneity of the operations that are undertaken by the business are mostly
dependent on the identification of the needs of the customers. The services that are offered by the
Hyatt Regency relating to 24-hour Room Service, Business Centre, Conference rooms, Free Wi-

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Fi setup, Executive Lounge and the like. The likelihood of co- occurrence of the events at the
same time is predefined as per the needs of the customers (Manhas and Tukamushaba 2015).
Hyatt Regency’s understanding of scheduling the services will be based on the assessment of the
expectations of the customers. It will be helping the business in adhering to the interests and the
expectations of the clients.
The different services that are offered by the Hyatt Regency, Hyatt Regency, Sydney, are
based on the assessment of the expectation of the customers. The operations and service
offerings of the business is categorized under the different propositions of the business like
rooms, area attractions, dining and the special events (Lu et al. 2015). The categorization of the
services provided by the Hyatt Regency depends on the assessment of the customer demand. The
tangible propositions of the business are related to the quality of the foods and beverages, room
ambience and the smoke free zones helps in enhancing the experience of the clients. On the other
hand, the intangible nature of the services relating to the behavior of the hotel staff and the 24-
hour room service along with free WiFi and other amendments adds to the value that is being
proposed by the business as per the expectations of the clients. It has helped the Hyatt Regency
in retaining the valued customers of the business (Horng et al. 2016).
The continuous improvement in the services that are proposed by the Hyatt Regency aims
at undertaking customization of the services as per the needs of the customers while operating on
the expectations of the clients. It has helped the business in retaining the customer base of the
business. The people and possession processing of the business is dependent on the assessment
of the diverse needs of the customers (Bruns-Smith et al. 2015). Customization of the offerings
of the business and standardization of the processes as per the global and the customer set
attributes has helped the business in maintaining their competitive edge while operating in the

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globalized markets. The implementation of hi- tech information systems in the business has
helped in enhancing the operations through a detailed study of the customer expectations.
3. Managing Customer Expectations
Critical incidents play a major role in framing the organizational support systems as it
influences the brand image of the business. The management of customer expectations are based
on establishing proper communication with the clients, which will be helping the business in
maintaining their standards as per the objectives of retaining the valued customers.
Implementation of the Script theory in the organizational context emphasizes on the
understanding of the MTRANS and PTRANS, which exemplifies mental and physical
transitions (Pizam, Shapoval and Ellis 2016). The suitable performance of the business
systems assists in understanding the needs of the customers and thereby retains the same through
exposition of relevant strategies relating to the promises and the amendments that are offered by
the business (Dedeoğlu and Demirer 2015). The coordinative actions that are undertaken by the
internal and the external departments of the business clearly focus on the different key elements
of change in the organizational model. The management of competencies while developing on
the capabilities assists the businesses in maintaining the standards while operating in the
organizational context. Identification of different psychological factors of the customers guides
the organizational performance as per the expectations of the customers (Langvinienė and
Daunoravičiūtė 2015).
The delivery process that is devised by the Hyatt Regency is mostly customer oriented
which refers to the proposition of the different services through the range of hotels under the
group (Radojevic, Stanisic and Stanic 2015). The proper functioning of the business and

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implementation of the information system assists the business in maintaining the smooth
operations while recording the feedbacks from the customers. Allocation of the resources and the
manner in which the propositions are designed has helped the business in retaining the customers
through customizing the value that is proposed by the venture. On the other hand, healthy
relation with the stakeholders like the suppliers and marketers has helped the business in
undertaking smooth operations.
4. Service Standards and Retention Strategies
The enumeration of the Customer-defined service standards like timeliness, accuracy and
appropriateness of the services has helped the business in upholding the efficacy of operations.
The retention of the customers will be facilitated through the enumeration of different strategies
that will comply with the customer- defined standards, which will be helping the Hyatt Regency
in designing the services as per the expectations (Kim, Vogt and Knutson 2015). The
identification of the specific behaviors of the customers and thereby undertaking relevant actions
in order to meet the expectations of the customers will be helping the business in retaining the
huge customer base of the same.
Strategies that might be undertaken by the Hyatt Regency for retaining the customers are:
 Receiving feedbacks from the customers through survey
 Analysis of the survey findings and interpretation of the findings
 Developing the design of the product and service offerings of the business

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5. Conclusion
Therefore, from the above analysis it can be concluded that the different key elements of
the consumer retention in service sector industry or the hospitality sector is based on the
capability of the business to cope up with the expectations of the same. The value proposition of
the businesses is dependent on the identification of the customer needs. The concerned company,
Hyatt Regency, has taken steps to develop their service offerings based on the identification of
the expectation of the customers, which has added to the competitive advantage of the business.
Managing the customer expectations helps in maintaining the efficacy of the functions while
operating as per the objectives of the business operations.

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References
Bruns-Smith, A., Choy, V., Chong Ph D, H. and Verma Ph D, R., 2015. Environmental
sustainability in the hospitality industry: Best practices, guest participation, and customer
satisfaction.
Dedeoğlu, B.B. and Demirer, H., 2015. Differences in service quality perceptions of stakeholders
in the hotel industry. International Journal of Contemporary Hospitality Management, 27(1),
pp.130-146.
Horng, J.S., Wang, C.J., Liu, C.H., Chou, S.F. and Tsai, C.Y., 2016. The role of sustainable
service innovation in crafting the vision of the hospitality industry. Sustainability, 8(3), p.223.
Kao, C.Y., Tsaur, S.H. and Wu, T.C.E., 2016. Organizational culture on customer delight in the
hospitality industry. International Journal of Hospitality Management, 56, pp.98-108.
Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
Research, 39(2), pp.170-197.
Langvinienė, N. and Daunoravičiūtė, I., 2015. Factors influencing the success of business model
in the hospitality service industry. Procedia-Social and Behavioral Sciences, 213, pp.902-910.
Lu, C., Berchoux, C., Marek, M.W. and Chen, B., 2015. Service quality and customer
satisfaction: qualitative research implications for luxury hotels. International Journal of Culture,
Tourism and Hospitality Research, 9(2), pp.168-182.

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Manhas, P.S. and Tukamushaba, E.K., 2015. Understanding service experience and its impact on
brand image in hospitality sector. International Journal of Hospitality Management, 45, pp.77-
87.
Pizam, A., Shapoval, V. and Ellis, T., 2016. Customer satisfaction and its measurement in
hospitality enterprises: a revisit and update. International Journal of Contemporary Hospitality
Management, 28(1), pp.2-35.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management, 51, pp.13-21.