Importance of Customer Satisfaction in Hospitality Industry

Research Project

Abstract
Customers play an important role in the success of business which means that they must
be highly satisfied by the company goods and services so that company sales can increase. It is
also important that the quality of services given to customers are continually improved so that
high customer value can be created which help in increasing profits of company. In this report
the role of customer satisfaction in the success and growth of hospitality industry is discussed.

Table of Contents
Abstract............................................................................................................................................2
Research Topic.................................................................................................................................4
Chapter 1-Introduction.....................................................................................................................4
Aims and objectives...............................................................................................................4
Research rationale..................................................................................................................5
Chapter 2-Literature Review............................................................................................................5
Chapter 3-Research Methodology...................................................................................................6
Chapter 4-Analysis and Findings...................................................................................................13
Chapter 5-Critical appraisal, Recommendations & Suggestions...................................................20
Chapter 6- Conclusion...................................................................................................................21
REFERENCES..............................................................................................................................22

Research Topic
“To determine the importance of customer satisfaction in the growth and success of
hospitality industry”. A study on Holiday Inn Hotel Candem Town London.
Chapter 1-Introduction
Hospitality industry basically deals in providing hospitable services to customers so that they can
feel welcomed and home like when they are away from their home. The industry include sub
sectors like lodging service, events, tourism and travel, food and beverages etc. so that high
customer satisfaction can be achieved through recreational activities that can support their well
being. Customer satisfaction is thus the core of hospitality industry and all the businesses
indulged in this industry must try to enhance the quality of their products and services so that
maximum customer satisfaction can be achieved (Collings, Mellahi and Cascio, 2017). In this
report Holiday Inn Hotel Candem Town London is taken so that a research can be done on the
importance of satisfying customers so as to grow and succeed in market. Holiday Inn is a British
owned American brand of hotels which were initially founded as a US motel chain. The
headquarters of this hotel chain is located in Buckinghamshire, UK. In this report small scale
research will be conducted and various research tools and techniques will be used so that
effective results can be found.
Aims and objectives
Research aim
“To determine the importance of customer satisfaction in the growth and success of
hospitality industry”. A study on Holiday Inn Hotel Candem Town London.
Research objectives
 To understand customer satisfaction in the context of business.
 To determine the importance of satisfying customers for Holiday Inn.
 To analyse the impact of customer satisfaction on the success and growth of Holiday Inn.
Research questions
 What do you understand by customer satisfaction?
 What is the importance of customer satisfaction for Holiday Inn?
 How does customer satisfaction impact on the success and growth of Holiday Inn?

Research rationale
The rationale behind conducting research on this topic is that it will help the researcher in
developing knowledge about customer satisfaction and its importance in hospitality industry.
This research can help the researcher in understanding about various aspects related to business
and how they achieve customer satisfaction for their sustainability (Tafti, Mahmoudsalehi and
Amiri, 2017). The research can help in the career development of researcher along with personal
and professional growth. The research will also develop a deep understanding about how the
results so obtained can be effectively applied in company which can help it in achieving its
objectives in an efficient manner.
Chapter 2-Literature Review
Concept of customer satisfaction
According to Sophia, 2019, customer satisfaction is a metric which help in measuring the
amount of happiness a customer receives by using the products and services offered by a
company. It can be measured by the way of surveys and feedbacks from the customers of
company so that they can answer certain structured questions which help businesses in knowing
about their capability of satisfying customers. More the customers are happy with the company
more their loyalty towards the company can increase (Kim and Johnson, 2016). It also help in
increasing number of potential customers for company by the way of referrals which are given
by already existing customers. It also help in spreading good word about the company which is
important in building its brand reputation which can help it in gaining a competitive advantage in
market. It also help the company in retaining its best performing employees who are efficient in
achieving high customer satisfaction by providing them with goods and services that they want.
By satisfying the customers in an efficient manner improvement in company products and
services can also be brought which help it in attracting a large number of customers thereby
increasing the sales and profits of business.
Importance of satisfying customers for hotels
As per the views of Lynda, 2019, the type and quality of service the customer receive in
hospitality industry plays an important role in building a positive image in the minds of customer
so that they can be attracted towards the same company again. This thus helps in retaining

customers and also in spreading a positive image about the company so that more number of
customers can be attracted. As hospitality is a service industry it is important that better customer
experience is created by the way of being proactive, addressing the demands of customers on
time and in a satisfactory manner, taking feedbacks from customers, improving the quality of
services and products offered, improving the behaviour of staff towards the customers etc. All
these can help in improving the quality of services which are given to customers which also help
in reducing the costs which are involved in regaining the trust of customers (Pucci and Zanni,
2019). Increase in loyalty of customers is also beneficial as it help in reducing the marketing cost
of company as the brand become renowned in market by the spread of good words about
company. Thus in hospitality industry customer satisfaction is important as it help the company
in building a strong customer base which is essential in increasing the competitiveness of
company.
Impact of customer satisfaction on the success of business
According to Sarah, 2019, customer satisfaction plays an important role in the success
and growth of business as it not just help in attracting more number of customers and increasing
its sales but also play an important role in increasing the employee retention and boosting up
their morale. With customer satisfaction as the core goal of a business it generally indulges in
ethical activities so that decisions that can help in maximising the interest of all its stakeholders
can be taken. Building customer relationships require that the business have a workforce which
is satisfied with their jobs so that their performance can be improved which can help in
effectively dealing with customer demands (Han and Hyun, 2015). This will help in increasing
the happiness of both the customers and employees and also in increasing sales of company.
Company can also achieve a competitive edge in market by the way of efficiently fulfilling the
needs and wants of customers so that a strong brand image can be built in market. With the
increase in competition in hospitality industry it is important that brand reputation of company
gets enhanced which can help in increasing the sales of company and help in its growth and
success.
Chapter 3-Research Methodology
Research methodology chosen by researcher directs the path and progress of research by
selecting the appropriate methods that can help in the completion of research n time so that
effective results can be achieved. The methodology chosen by researcher determines the way in