Investigating customer expectation and satisfaction in budget hotels

This research study focuses on investigating customer expectation and satisfaction in budget hotels, specifically through a case study of Holiday Inn Express. It explores the concept of customer expectation and satisfaction in the context of budget hotels and examines the relationship between customer care services and customer satisfaction. The study aims to develop knowledge about customer expectations, understand the factors that contribute to customer satisfaction, and identify measures that can be taken by budget hotels to improve quality and efficiency for customers.

Investigating customer
expectation and satisfaction
in budget hotels A case
study of Holiday Inn Express

Table of Contents
Abstract............................................................................................................................................4
Title of the Research........................................................................................................................1
Introduction......................................................................................................................................1
Research Aim, Objectives and Questions........................................................................................2
Literature Review.............................................................................................................................3
RESEARCH METHODOLOGY.....................................................................................................7
FINDING AND RESULTS.............................................................................................................8
Analyse of data-information..........................................................................................................10
CONCLUSION..............................................................................................................................19
RECOMMENDATIONS...............................................................................................................20
REFERENCES..............................................................................................................................21

Abstract
The effective contribution of tourism sector is mainly leads to the economic growth is
pretty important within UK, and the budget hotels also plays an imperative participation within
the tourism sector. However, the potential beginning of the budget hotel may be derived back to
the 1920s within Unites States. While the budget hotel has formulated globally and the term
‘‘budget’’ or ‘‘limited service’’ or ‘‘economy’’ are enforced rapidly throughout the hospitality
segment, there exists no standardized, widely accepted definition of this segment.

Title of the Research
Investigating customer expectation and satisfaction in budget hotels. A case study of
Holiday Inn Express.
Introduction
Background of the Research
The project initiates to evaluate the customers’ expectations and the satisfaction within
the budget hotels, therefore, tourism industry is recognized as one of the most essential players in
the development of economies in both locally and global manner within the past few decades.
Hence, it is one of the most crucial diligence within the globe or entails precise important
infrastructure with service businesses among that the most outstanding feature is the hotel
industry (Alrawadieh and Law, 2019). In addition to this, the hotel sector has been evaluated as
one of the most competitive segment mainly within the 21st century. Thus to being the most
competitive segment within market, developing buyer’s loyalty is one of the key element of
heighten competitiveness within the hospitality segment as well as ensuring organizational
continuity. In this present study the analysis is based on the study of Holiday Inn Express.
Therefore, Holiday Inn Express is a mid-priced hotel chain within the InterContinental Hotels
Group family of brands. The company is mainly established as an “express” Hotel, thus, their
major concern is to offering limited services at the reasonable prices. The company was founded
in the year of 1991 and had its operations in around 2826 locations. The primary motive of the
business is to enhance the satisfaction of the customers via fulfilling their expectation within
market. Thus, in the competitive business scenario customer’s expectation and sanctification are
the most considered aspect within the hostel industry to gain progression and advancement.
The rationale of this study is to evaluate the aspect of customer’s expectation and
satisfaction within the budget hotels. Therefore, customer’s expectation and the satisfaction is the
major considerations of the hotel industry to attain growth and advancement. Thus, the study is
imperative in providing in-sight out in relation to the specific subject and enhance individual's
recognition about the similar study. The another intention of executing the analysis is the
personal interest of the researcher as the investigator wants to explore own recognition in relation
to the similar area and develop personal as well as professional skills within business and
academic field (Filimonau and Magklaropoulou, 2020).
1

Research Aim, Objectives and Questions
This defined to be the most imperative area of an investigation as it works as the
predetermined statement which aid the investigation in right manner to generate suitable results.
The suitable aim, objectives and questions that are specific to the study are associated as below:
Research Aim
The key aim of this study is “To investigating the customer expectation and satisfaction
in budget hotels. A case study of Holiday Inn Express”.
Research Objectives
The significant objectives that are relay over the specific study are defined as below:
 To develop knowledge about the concept of customer’s expectation and the satisfaction
in the context to budget hotels.
 To understand the significant factors within service quality dimensions to know the level
of customer satisfaction.
 To investigate how customer satisfaction enhances customer loyalty.
 To examine customer care strategies implemented by Holiday Inn Express to enhance the
effective customers experience.
 To examine the relationship between customer care services and customer satisfaction
within budget hotels. To identify the measures that can be opted by budget hotels to improving the quality and
efficiency for customers.
Research Questions
The suitable questions that are interconnected to the research aim and objectives are
associated as below:
 What is the concept of customers’ expectation and the satisfaction in the context to
budget hotels?
 What are the significant factors within service quality dimensions to know the level of
customer satisfaction?
 How customer satisfaction enhances customer loyalty?
 What customer care strategies implemented by Holiday Inn Express to enhance the
effective customers experience?
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 What is the relationship between customer care services and customer satisfaction within
budget hotels?
 What measures can be opted by budget hotels to improving the quality and efficiency for
customers?
Literature Review
The customer care strategies implemented by Holiday Inn Express to enhance the effective
customers experience.
According to Cooper (2020), in the increasingly competitive business era, the key motive
of each small as well as large business enterprises is to attaining higher growth and success.
However, hotel industry is the most developing segment of hospitality sector and in this the
growth and success of the business is relay over the satisfaction of the customers. Holiday Inn
Express is a mid-priced hotel chain within the InterContinental Hotels Group family of brands,
therefore, customers expectation and satisfaction are the two important aspect to be considered
for the intention to enhancing the profitability and performance of the business. According to
Dhangal (2020), However, there are assorted strategies like implementing digital advancement,
effective team development and communication, defining business vision and mission,
recognition and rewards, empower the staff, Hire team players and get them invested in the
process, Attend to customer needs & use feedback loops, analyzing rivals strategy and
implement the best one, enhancing employees morale and so on, are implemented by Holiday
Inn Express to develop the effective customers experience. Hence, customers are the primary key
of business success and the growth and success of hotel industry are encompassing over the
satisfaction of the customers. The Holiday Inn Express is operating at a wider level and has its
major concern over fulfilling the desires of the customers and provide best possible services
according to the expectation of the customers within market to provide them higher level of
satisfaction.
The relationship between customer care services and customer satisfaction within budget
hotels.
According to Rahimi and Kozak (2015), hotel customer care services is the care provided
through the hotels to guest before, during and after their stay because the hotels mainly
encompasses over the loyal buyers and the good word of mouth marketing, hotel customers
3

training is an integral part of the hotel's customer’s services strategy. Therefore, there is a
positive relationship among the customer care services and customer’s satisfaction within the
budget hotels. Customer relation management is recognized as an imperative strategy which is
effective for the business in providing suitable customer care facilities and enhance the
satisfaction of the customers. Budget hotels are mainly working for increasing the experience of
the customers within limited cost and the hotels are offering effective facilities within the limited
cost. However, the effective customer care services are imperative in increasing the satisfaction
of the customers via rendering them the facilities according to their requirement and desires.
Thus budget hotels are mainly concern over developing the experience of the customers and
enhance the loyalty of the buyers (Thorsson, 2018). Therefore, this create positive impact over
the performance and the operations of the business. Customer care services and the satisfaction
of the customers are relay over each other as effective satisfaction of the customers may result in
increasing the satisfaction of the buyers. In the context to the budget hotels, the primary
obligation of the hotel and its management is to offering effective facilities within the lower cost
to fulfill the desires and retaining the customers for longer run of the business operations. Hence,
effective customer services has direct positive impact over the satisfaction of the customers
within hotel industry.
The measures that can be opted by budget hotels to improving the quality and efficiency for
customers.
According to Haliva (2016), a hotel which is truly striving culture will make every efforts
to enhance services standards which emphasizes exceptional services for every buyers. In the
modern and competitive business era, organizations are working for a specific motive to gain
higher competitive advantage, thus for this businesses within hospitality segment are focuses
over improvising the quality and efficiency for the customers. Hence, there are assorted ways
like provide training to their employees as the priority of the business not as an one time event,
render personalized customers services, update the technology toolbox, Take measure of your
customer service performance, utilize demand forecasting, suitable implementation of the
policies, providing offers and rewards to the customers and so on. Therefore, these are the
effective ways that can significantly be opted by the businesses to attain higher growth and
success.
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In addition to this, receiving customer’s feedback and making suitable changes is termed
to be the most effective aspect of the business which helps in developing the operations and
progression of the business (Wang and Nicolau, 2017). Businesses also requires to be focused
over creating awareness about the offerings of the business and also enhance the technological
performance to increasing the optimization over the search engines. Hence, this would be
creating benefit for the budget hotels in enhancing the recognition of the brand within market
and helps in increasing the sales and revenue within commercial center.
Literature review
It is an important section in research as it provides theoretical framework on the basis of
research objectives. Mainly, it provides detailed and in-depth evaluation that may assist in
analysing the actual issues that present in the research. Along with this, it includes various
sources such as books, journals, articles, magazines, newspaper and many more. All these are
assist in gathering detailed information towards the specified research topic and area. Literature
review is based on the research questions and objectives in which researcher gather information
as per view point of different authors. This type of information is helps investigator in drawing a
valid conclusion at the end of the investigation and also make it entire research more successful.
To develop knowledge about the concept of customer’s expectation and the satisfaction in
the context to budget hotels.
According to Kim and Kim (2018), Customers expectation and satisfaction is one of the
important part for business organization to survive in market place as it is referring to everything
that a customers expect from company or product. Mainly, it is created in customer’s mind that is
based upon their experiences that they have learned and experience. Mainly, customer’s haves
both explicit and implicit expectation related with the specified products and services that they
want to purchase from the company. Thus, it is important for budget hotel to provide quality
services to its customers as per their needs and wants. This can be improving the profitability
level of the hotel and at the same time also established its competitive image at market place.
Now a day, customers taste and preferences are continuously change as per market trends, this is
the reason that company focus on their taste and expectation in order to provide them higher
satisfaction. Satisfied customers are valuable for budget hotel to increase its sales volume and at
the same time also beneficial for improving its market share as compared to its competitors. By
understanding customer’s expectation, firm can easily improve their performance by providing
5

them best quality services. When company focus in meeting customers’ expectation then buyers
can easily have satisfied and at the same time also improve their experience. This will directly
contribute in enhancing the chances of attaining competitiveness at market place and sustain for
longer period of time.
To understand the significant factors within service quality dimensions to know the level of
customer satisfaction.
According to Rather (2018), Every business organization has one common goal to satisfy
their customers. As customer’s satisfaction is one of the important aspect that needs to be
measure by company to analyse how happy customers with company products and services. In
this regards, there are some significant factors within service quality dimension to know the level
of customer’s satisfaction. These are as follows:
 Customers understanding: At the time of providing services to its customers, it is
significant for company to understand what customers exactly wants from the firm in
relation to products and services. It includes various aspects such as multiple choices,
understand the preference, personalise the buying experience for customers towards the
company products and services.
 Service: Quality service is often determined as a polite, friendly and warm that help
company in measuring the satisfaction level of customers. By providing best quality
services to its customers as per their needs and wants, firm can improve their satisfaction.
In his company also provide convenient, intuitive customers services while provide them
services.
 Technology: It is one of the important aspects of operating day to day activities within
the company. As, it includes social media, blogs, apps, websites and many more are the
factors that give tech savvy business. By using this factor, hotel industry can easily
analyse the level of customer’s satisfaction by including accessible, easy to navigate and
load pages quickly.
To investigate how customer satisfaction enhances customer loyalty
According to Ren and et. al., (2018), Customers satisfaction and loyalty are the most
important factor for company to enhance their positive brand image. In this context, customer’s
satisfaction directly leads to customer’s loyalty. This is the reason that company focus on
providing higher satisfaction to its buyers so that they can loyal with the particular business and
6

its services as well. Basically, loyal customer is one of the powerful asset and it more likely to
generate positive brand image at market place. By these customers spend more money with the
specific company that directly contributes in increasing profitability level. A very satisfied
customer is huge changes they will make another purchase in future that may show the loyalty of
customers towards the products that company is offerings. If customers are loyal towards the
firm and its products than they start spend on one more purchase as compare to a new customer.
Thus, it is important for business to provide value services with the aim of keeping customers
loyal towards its offerings. This can be beneficial for business to increase their loyal customers
base and at the same time also established its competitive image as compare to its competitors at
wider market place.
RESEARCH METHODOLOGY
It is referring to the framework in which researcher gather data from different sources.
Mainly, it includes various techniques that applied by investigator for undertaking specific study
in order to resolve issues present in the investigation. Thus, it is important for researcher to select
an appropriate method to collect data that assist in taking right and reliable outcomes at the end
of the investigation. In order to undertaking current investigation, researcher will apply
secondary method of data collection, as it help in gathering detailed and in-depth evaluation on
the basis of specified research topic and area. With the help of this, researcher can evaluate the
entire research activities and also attain authentic results. Mainly, it includes various sources
through which information on the basis of research topic can be gathered including books,
journals, articles, newspaper, online reports and many more. In addition to this, secondary
method of data collection also beneficial in undertaking a systematic literature review that
provide views and opinion of different authors on the basis of particular area of research. The
main purpose of using this method is that it helps researcher in gathering detailed information
that assist in taking right judgement within the study. Furthermore, time limitation is also an
another reason of selecting this type of methods. This is less time consuming method as compare
to primary method of data collection. All the sources of secondary method provide reliable and
valid information through which investigator can draw a valid conclusion at the end of the
investigation and at the same time also make overall study more authentic in nature. Along with
this, researcher also use online sources for acquiring data including google scholar, SAGE,
7

research gate, academia and many more. With the use of these links researcher analyses the data
that is already used and published in another studies. One of the main advantage of using this
method is that it takes less time in gathering data about the particular research topic and area as
well.
FINDING AND RESULTS
Researcher is defined as a perspective and it is used to perform work with motive of
managing and identifying solutions that in completion of work. Their are different task
performed which is used in managing work through adopting systems. Quantitative and
qualitative are two methods and it helps to complete research in more effective manner. With
understand of organisation perspective it is identified that there are different task performed and
most of them are considered towards under of information which is effective for understanding
information.
Quantitative research- The term quantitative research refers that there are various task
performed by management and it is used to represent all information with motive of managing
work through understanding and analysing numerical perspective. Statistical and mathematical
results are identified in quantitative research. Survey and observations are two sources that is
used to collect quantitative data.
 Survey- It is conducted by organisation with the use of managing task and it aids
individual to interact with in person and phone. Along with this survey rely on question
through which task are managed by individuals for performing work according to
respondent’s behaviour.
 Observation- This includes different perspective and it aids individuals for counting the
particular phenomena for a longer period. It includes different perspective and it is used
by investigator or researcher to translate information into numbers.
Qualitative research- With the methods of qualitative research it is identified that there
are less number or numerical information is conducted. This often includes language, words,
observations and pictures through which all information is examined with use of qualitative way.
It also refers that persons prefer methods to complete work with use of investigation perspective
that aids in UK and personalise results for managing all task by undertaking aspect of qualitative
methods. Moreover, qualitative analysis results to provide rich and in-depth information for
8

completion of task with more efficiency. Interview, focus group, secondary data are some
sources which is used for performing all work in an appropriate manner.
 Interview- The term interview is a structured, unstructured and semi-structured way
which is used for completion to deal with individuals in an effective manner. The
participants respond towards issue which create problems for working in tourism
industry.
 Focus group- With the method of survey group individual involve multiple participants
and it discuss on issue related with tourism industry.
 Secondary data- Diaries, written accounts and organisation report are some effective
methods and it is used for managing research. It also results all work is completed
through performing work with motive of completing research in minimum time-period.
Quantitative Question
Q1) Is customer satisfaction important for hospitality organisation and service industry?
a) Yes
b) No
Q2) Which methods is more beneficial for Intercontinental hotel for improving the customer
satisfaction level?
a) Use of technology
b) provide training and development
c) Both
Q3) Which factors are more effective for offering and providing opportunities to attract inter-
national visitor and satisfying their needs?
a) Free transport towards hotel
b) Providing customised services
c) developing competitive-edge
Q4) What are most appropriate ways to improve customer satisfaction with low budgets?
a) Through adopting change in services
b) By managing cost of services
Q5) Is classification among room hotels is an appropriate method for hospitality organisation
for satisfying customer needs?
9

a) Yes
b) No
Q6) Which one of the follow method work as appropriate approach for understanding customer
satisfaction level?
a) By providing quality services
b) Through implementing changes according to customer feedback
Q7) Is hospitality organisation is able to offer luxury services with low cost?
a) Yes
b) No
Q8) Which way or method is used by organisation for satisfying customer needs in an accurate
manner?
a) By delegating right role to right individual
b) Through implement rules for generating participation of individuals
Qualitative question
Q9) Which issue are faced by management in low budget to satisfy the customers?
Q10) Discuss methods that aids hospitality organisation for enhance customer expiation in low
cost?
Analyse of data-information
Q1) Is customer satisfaction important for hospitality organisation and
service industry?
Frequency
a) Yes 20
b) No 10
10

Interpretation- According to the above research method it is concluded that research perform an
important role for satisfying customer need and wants. In the context of hospitality industry, it is
identified that customer satisfaction is an important perspective and this aids to complete all
work with motive of earning more profits. So with proper customer satisfaction management
increase in their sale.
Q2) Which methods is more beneficial for Intercontinental hotel to
improving the customer satisfaction level?
Frequency
a) Use of technology 10
b) provide training and development 10
c) Both 10
11
a) Yes b) No
0
2
4
6
8
10
12
14
16
18
20
20
10
Frequency

Interpretation- Their are different perspective exists and it is used for satisfying customer need
and wants by implement of right methods. With in perspective of hospitality industry training
and development as well as adoption of technology perform an important role for enhancing
customer satisfaction level in an organised manner.
Q3) Which factors are more effective for offering and providing
opportunities to attract inter-national visitor and satisfying their needs?
Frequency
a) Free transport towards hotel 12
b) Providing customised services 8
c) developing competitive-edge 10
12
a) Use of technology
b) provide training and development
c) Both
0
1
2
3
4
5
6
7
8
9
10
10 10 10
Frequency

Interpretation- According to the information it is identified by management that hospitality
organisation is focused towards improving their sales with selection of the appropriate methods.
By interpret of above information it is understand that by offering transport services such as
pickup and drop facility aids customer to feel a luxury in low budget.
Q4) What are most appropriate ways to improve customer satisfaction
with low budgets?
Frequency
a) Through adopting change in services 14
b) By managing cost of services 16
13
a) Free transport towards hotel
b) Providing customised services
c) developing competitive-edge
0
2
4
6
8
10
12
12
8
10
Frequency

Interpretation- As per the information this is understand that management perform all work
through analysing and accepting methods that are beneficial for controlling cost of operations
that are performed by hospitality business. Along with this low cost attract more individual to
consume hospitality services at bulk level.
Q5) Is classification among room hotels is an appropriate method for
hospitality organisation for satisfying customer needs?
Frequency
a) Yes 20
b) No 10
14
a) Through adopting change in services
b) By managing cost of services
13
13.5
14
14.5
15
15.5
16
14
16
Frequency

Interpretation- As per this analysis, it is identifying that through implementing changes
according to customers feedback is the best method to work as appropriate approach for
understanding customer satisfaction level because most of the respondents responded in this
option as compared to the provide quality services.
Q6) Which one of the follow method work as appropriate approach for
understanding customer satisfaction level?
Frequency
a) By providing quality services 14
b) Through implementing changes according to customer feedback 16
15
a) Yes b) No
0
2
4
6
8
10
12
14
16
18
20
20
10
Frequency

Interpretation -As per this information it is understandable that hospitality organization is able
to offer luxury services with low cost and providing quality services. Customers is everything for
every business and industry so hospitality industry providing quality services at low cost.
Q7) Is hospitality organisation is able to offer luxury services with low
cost?
Frequency
a) Yes 11
b) No 19
16
a) By providing quality services
b) Through implementing changes according to customer feedback
13
13.5
14
14.5
15
15.5
16
14
16
Frequency

Interpretation – as per this research, it is said that delegating right role to right individual is the
best method is used by the organization for satisfying customers needs in an accurate manner.
Right role for right is necessary for every productive organization. Organizational employees
productivity is playing a massive role in the growth of organization.
Q8) Which way or method is used by organisation for satisfying customer
needs in an accurate manner?
Frequency
a) By delegating right role to right individual 21
b) Through implement rules for generating participation of individuals 9
17
a) Yes b) No
0
2
4
6
8
10
12
14
16
18
20
11
19
Frequency

Q9) Which issue are faced by management in low budget to satisfy the customers?
Solution- there is less investment in the low budgeted hotel and there is high demand of the
customer with their different preferences and taste of the customer. This is very difficult for the
organisation to satisfy all the customer in less capital and resources. Hotel management can use
cost effective strategies to meet the demand of the customer and satisfy the potential customer.
Hotel face decrease in the revenue of the business with low level of sale and leads to failure of
the business in the market.
Q10) Discuss methods that aids hospitality organisation for enhance customer experience in low
cost?
Solution- there are various factors that help the hotel to enhance their customer experience in low
cost and these factors are as follows:
 Hotel should optimize labour and give them a proper training in their specific field that
makes an employee to work effective manner.
 Hotel should analyse the maintenance work in the organisation that it be the first priority
of the management.
 Hotel can also introduce cost effective resources in the organisation to save the extra cost
of the operations.
 It can perform the various utilization of all the resources so that all the operation must be
operate in effective way.
 By eliminate the over consumption of resources in the organsaiton that will to incure high
investment cost.
18
a) By delegating right role to right individual
b) Through implement rules for generating participation of individuals
0
5
10
15
20
25
21
9 Frequency

CONCLUSION
This is concluded from the above report that tourism industry has their significant role in
the market and the main aim of this report is to investigate the customer expectation and
satisfaction in the budget hotels. The objective of the report is understanding the significant
factor within service quality to know the level of satisfaction among customers and the question
is being asked in the report are, what is the satisfaction enhances customer loyalty and why
customer care strategies implemented by Holiday Inn to enhance the effective customers
experience. Literature review is conducted from Cooper (2020), that suggest that the key motive
of the small business to expand their market and grow in the market. It is the important factor
which gives theoretical frame to the report and help in understanding the theoretical aspect of the
business. The research methodology is the framework of data collection form different sources
for the evaluation of the report. This report uses the primary method of data collection for
analyzing the various aspect of the business with good research in the marketing. This is the
method through which exact analysis of the market and customer can be done and came to
understand the various choices of the customer in hotel and what type of services, they are
expectation in the hotel. Finding is done by the quantitate research this include various task
perform by the management to evaluate the numerical figures of the data and analyses the exact
scenario of the market. It also includes survey, interview focus group, secondary data and
observation. These are the various aspect of quantitate approach of analysing the data. it is
helpful in getting effective knowledge for the hotel that what are the different aspect that holyday
Inn can adopt to effective utilization of their resources.
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RECOMMENDATIONS
The report is conducted well on the basis of different aspect but I want to
recommend some point that will leads to satisfy the potential customer in low budget
hotel with limited investment. Hospitality industry can use resources that are low in
prices and easily available in near market that reduce the transportation cost. Also, It can
use various findings and getting result by effective means of findings and result. This will
helpful for the low budget hotels to effective utilization of their resources. It is
recommended that hotel should hire financial professionals which will allocate
investment that how effectively investment can be used and how much the hotel can save
their cost in the operation of the business. Hotel should optimize their labour in an
effective manner that they completely give productive result in the operation. That will
lead to easy flow of operational activities in the business and earn maximum profit within
the available resources. Hotel should focus on their maintenance work so that aal the
machines are in good condition and working their task correctly for the betterment and
satisfy the customer needs in the market with the low budgeted hotels. Hotel will give
training to their employees that how all the activities can be carried forward in the
business and how can an individual can contribute in giving good service experience that
guest can visit the Holyday Inn again. Training and development of the employees can be
done by training sessions and seminars in the organization that will help in employee
motivation and motivated employee can achieve the task in effective ads correct manner
and right use of manpower will leads to increase the share of the hotel and effective
working in the budgeted hotels.
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