Influence of Service Quality on Customer Retention in the Hotel Industry of United Kingdom

This dissertation explores the impact of service quality on customer retention in the UK hotel industry, with a focus on Hyatt Hotels Corporation. It examines the benefits of customer retention for business performance and the challenges faced in the absence of service quality. The study aims to develop a basic understanding of service quality and customer retention in the UK hotel industry, evaluate the influence of service quality on customer retention within Hyatt Hotels Corporation, determine the benefits of customer retention for business performance of Hyatt Hotels Corporation, and examine the challenges that would be faced by Hyatt Hotels Corporation in the absence of service quality. The dissertation is structured into chapters that cover the introduction, literature review, research methodology, discussion, conclusion, and recommendations.

Dissertation
(Influence of service quality on Customer retention
in the Hotel Industry of United Kingdom)

Table of Contents
CHAPTER ONE- INTRODUCTION..............................................................................................3
1.Background to the Research................................................................................................3
2. Organisational Background................................................................................................3
3. Significance of the Problem...............................................................................................3
4. Statement of Purpose..........................................................................................................3
5. Statement of the Problem...................................................................................................4
6. Aim and Objectives............................................................................................................4
7. Research Questions............................................................................................................5
8. Dissertation structure (sign-posting)..................................................................................5
CHAPTER TWO- THE LITERATURE REVIEW.........................................................................7
To develop basic understanding about the service quality and customer retention in context
with the UK Hotel Industry....................................................................................................7
How service quality has influenced on customer retention within Hyatt Hotels Corporation?
................................................................................................................................................9
What are the advantages of customer retention for business performance of Hyatt Hotels
Corporation?.........................................................................................................................11
What are the major challenges that Hyatt Hotels Corporation would be faced in the absence of
service quality?.....................................................................................................................13
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................15
CHAPTER 4: DISCUSSION.........................................................................................................19
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS............................................24
Conclusion............................................................................................................................24
REFERENCES..............................................................................................................................28

CHAPTER ONE- INTRODUCTION
1.Background to the Research
Customer retention is related to keeping the customers engaged while buying the products and
availing the services of the company (Mahmoud, Hinson, R.E. and Adika, M.K., 2018). When
the customers are highly satisfied then the company will be able to perform much better and the
company comprise of various activities which are taken by it in order to keep the customers
satisfied. Majorly there are various techniques which are used to keep the customers retained. It
is also essential to map the customer journey which is not an easy task to do. That is why the
company to take preventive measures in order to keep the customers retained in the company.
2. Organisational Background
The company considered for the research is Hyatt Hotel Corporation which is one of the leading
hotels in the hospitality industry (Han and et.al.,2019). It is an American multinational
hospitality company which is situated in the Riverside Plaza area of Chicago. Moreover, the first
Hyatt house was started in the year of 1954 by Hyatt Robert von Dehn and Jack Dyer Crouch. It
is one of the oldest brands in the company and it tends to provide the best services to its
customers.
3. Significance of the Problem
The research will be served as a base for the understanding the influence of service quality on the
customer retention level in the chosen hotel in UK. As the services offered to the customers will
directly impact the operations of the hotel (Darzi and Bhat, 2018). And also, the level of trust,
satisfaction and loyalty of the customers towards company. The study will demonstrate the
information about the benefits of customer retention for business performance of the chosen
company. In relation to this there are various issues which are to be faced by the hotel while
keeping the customer’s content.
4. Statement of Purpose
The main goal of the research is to outline the impact of the customer retention and about the
service quality in the hotel industry (Hanaysha, 2018). The study will also highlight the influence
of service quality on customer retention within the chosen corporation. Moreover, the term
customer’s retention allows the companies to attract the customers for the longer period of time
in the company. It keeps the customers engaged in the company and the hotel industry also

targets on providing the customers what they want and fulfil their level of expectation. The
chosen hotel needs to enhance higher productivity in order to increase profitability and output.
The hotel attracts more guests as a result of its reputation and image being enhanced. These are
all important advantages of customer retention that support a hotel's general effectiveness and
performance and enhance its commercial performance for successfully achieving its goals. A
range of strategies, such as client retention, can help the hotel enhance its financial performance
in preparation for future expansion. It helps the hotel generate more revenue by bringing in more
customers to use its amenities. Keeping customers is a key idea for earning better profits and
have a good image in the market.
5. Statement of the Problem
The research problem is related to the customer retention as in any company they are to invest in
customers and it is one of the compulsory things to do in nay business. As per the market, it is
not easy to build a strong brand and manage the resources properly. But customer retention is
significant to boost the level of sales and that come direct from the customers. In order to
increase customer satisfaction and their expectations of the services and products, service quality
is essential in every business or organisation (Han, Jongsik and Hyun, 2020). there are poor
service standards at the hotel, this could lead to a number of problems and challenges for the
establishment. In the lack of quality services, hotels may experience serious problems with client
retention, satisfaction, loyalty, and trust, all of which have an impact on the hotel's overall
growth. In the lack of high-quality services, Hotel faces difficulties with both employee and
customer retention. The difficulties lead to a variety of problems at the hotel, which may have an
impact on profits. In addition to this, the performance and reputation of the hotel, which are its
principal faults, will suffer. The negative effects on the hotel as a whole and its operations are
that productivity and profitability will suffer. The hotel is unable to give guests enjoyable
experiences that would motivate them to stay at the Hyatt hotel without high-quality services. All
of these challenges could have a negative and considerable impact on the hotel, which would
harm both its overall growth and performance and profitability.
6. Aim and Objectives
Aim
To determine the influence of service quality on Customer retention in the Hotel Industry of
United Kingdom. A study of Hyatt Hotels Corporation.

Objectives
 To develop basic understanding about the service quality and customer retention in
context with the UK Hotel Industry
 To evaluate the influence of service quality on customer retention within Hyatt Hotels
Corporation
 To determine the benefits of customer retention for business performance of Hyatt Hotels
Corporation
 To examine the challenges that would be faced by Hyatt Hotels Corporation in the
absence of service quality
7. Research Questions
 What is the concept of service quality and customer retention in context with the UK
Hotel Industry?
 How service quality has influenced on customer retention within Hyatt Hotels
Corporation?
 What are the advantages of customer retention for business performance of Hyatt Hotels
Corporation?
 What are the major challenges that Hyatt Hotels Corporation would be faced in the
absence of service quality?
8. Dissertation structure (sign-posting)
The research must be presented systematically, and it may be effectively described as an
organised evaluation of the relevant field of study. The focus of current research often centres on
the specific traits that contribute to the appropriate path. The following is a list of the many
chapters that will be included in the dissertation:
Introduction
This section of the study is highlighted as being critical since it is crucial for examining the
numerous research ideas and for creating the context for the chosen topic. The main goals and
purposes of the inquiry are outlined in this particular chapter. The breadth and value of the
research, as well as its purpose, are often explained in the introduction chapter. This mostly
focused on how an investigator might advance via knowing about exploration issue (Kim,
2019).
Literature Review

The second portion of the study, the literature review, highlights the key findings and provides a
thorough explanation of the research problem. Examining and clarifying the research concerns
and effectively achieving all objectives are the key aims of the literature review. Secondary data
collection techniques, such as those from the internet, books, scholars, and journals, are more
advantageous for gathering the data and information for a literature review.
Research Methodology
The dissertation chapter titled "Research Methodology" explains how to do research properly
and methodically. It is a crucial component of the study since it includes a number of techniques
and tools that are thought to be helpful in gathering and accurately analysing the data.
Additionally, it aids in growing and bringing about beneficial results in relation to the particular
subject area. When choosing a technique, one tends to get a thorough analysis that helps steer a
particular study in the appropriate path. In order to address these issues, the research technique
chapter includes sections on the research philosophy, research approach, research strategy, data
collection method, sample, research limits, and ethical considerations (Adzoyi, Blomme and
Honyenuga,2021).
Data Presentation and Analysis
It is one of the most important components of the study because it is here that the information
most closely related to the objectives and questions is measured. In light of this, the approach of
data collecting for the research will be the creation is by the help qualitative research method.
And the main goal of this strategy, according to the timetable, is time and money savings.
Because of this, the data will be analysed using the thematic analysis method, which leads to the
development of themes and discussion of research objectives (Anwar and et.al.,2020).
Conclusion and Recommendations
One of the core parts of the investigation under which the conclusion is created in reference to
the research aim and objectives is said to be this chapter of the study. Due to the constraints of
the project's findings, this chapter will reflect on a summary of the entire undertaking in an effort
to address the problems. Based on the assessment, recommendations will be developed.

CHAPTER TWO- THE LITERATURE REVIEW
The definition of a literature review is a critical analysis of secondary sources on a particular
topic or issue. There are a few key sources of secondary data that the researcher will find useful
in gathering secondary data related to the subject of choice. The research draws on a wide range
of sources, including journals, books, articles, published studies, and many more. All are
important and worthwhile resources for conducting research in order to successfully complete
the dissertation's objectives. Additionally, the literature review's primary goal is to identify the
gaps in the previous research (Fam and et.al.,2021). The primary gap in the current search is the
presence of barriers, the necessity of offering solutions to improve client retention for the
company's economic growth, and the importance of these factors. It can also be claimed that
numerous data points about the subject of service quality and client retention are available from
earlier studies.
To develop basic understanding about the service quality and customer retention in context with
the UK Hotel Industry
As stated by Nusjirwan, Regen and Nardo, (2020), the businesses nowadays are getting
more competitive and that is why the companies are to take care of their customers by
maintaining the quality of the services. Under this the customers are taken care of by providing
best services and it is defined as the ability of the company in relation to retain more customers.
It is measured by the attracting new customers and in that process proper customer retention
management plays an essential role. The main target of that management is to maintain the
relations with the existing customers. Such retention will elevate the level of loyalty, confidence,
new customers and ROI. For that the hotels can make a roadmap for the purpose of enhancing
the future relationship. In relation to that companies ask for feedbacks from the customers in
order to bring better changes. As the hotel cannot improve its services without understanding
their customers that is why the company can ask for the feedback for the entire team and that
feedback should be used by the company with the aim of bringing future improvements. The
hotels must keep a check on the customer experience as it will build the level of trust among the
customers A company's ability to deliver both products and services that match customer
expectations is measured by the quality of its services (Adzoyi, Blomme and Honyenuga,2018).
As a result of helping to deliver the best services to customers, which can increase their

attraction to the hotel's services, service quality plays a vital part in customer retention within the
Hyatt Hotel Corporation. Customers are kept coming back by customer satisfaction, customer
trust, customer commitment, customer retention, customer loyalty, and a host of other benefits
that are connected to and contribute to service excellence. Service quality can impact customer
retention by providing clients with services that adhere to their needs and preferences. Offering
top-notch services will help Hyatt Hotel win over new customers.
According to Lee and et.al., (2020), in the hotel industry the customer’s retention which
allows the company to attract the customers for the longer period of time. The hotel industry
focusses on providing the customers what they want and fulfil their level of expectation. It can
also be seen that hotels are taking help of the customer relationship marketing strategy and
keeping the record of the past communication or any issues. When the company take cares of the
employees then the sales will rise whenever the customers made a purchase. Some companies ae
following up the customers after serving them and that is why they switch to other companies.
Such follow ups will directly increase the level of involvement of the customers and it also
increase the value of the current sales (Park and et.al.,2020). The ultimate goal of customer
retention strategies is to retain as many customers as possible. Almost all the companies are
focusing on the customer acquisition as it is one of the effective ways to enhance the level of
revenue faster. Along with it, customer retention is linked and related to keeping the customers
satisfied and engaged. During the process of buying the products and availing the services of the
chosen company. It is fact that when the customers are highly satisfied then the company will be
able to perform much better and the company comprise of various activities which are taken by it
in order to keep the customers satisfied. Majorly there are various techniques which are used to
keep the customers retained. It is also essential to map the customer journey which is not an easy
task to do. That is why the company to take preventive measures in order to keep the customers
retained in the company. The feedback from guests is what Hyatt hotels utilise to gauge their
performance. Customers want high-quality services since they can impact their positive reviews.
When products and services are delivered in accordance with customers' wants, both customer
happiness and expectations for the services can increase. Customer retention is one of the most
important ideas in any company or organisation, and it only depends on the services that the firm
provides to keep clients. The quality of the services may have an impact on customer retention
by drawing attention to the good comments and reviews of the hotel. Businesses can affect

customer retention by improving their output, general performance, and service quality. Effect of
service excellence.
Now a day’s customer or tourist opt for those hotel which provide best service as per their
expectation and the price they pay to avail the experience. It is observed that company whose
quality of service is best hold the customer for longer time period as well as also helps in
attracting new buyers for the hotel. Quality of service affect the hospitality industry in large
manner they not only help in customer retention but also aid in building the buyers trust and
loyalty. Customer trust has direct impact on the retention rate of the company as well as also
assist the company to acquire more quality service within the organisation. Thus, service quality
largely influences the rate of customer retention in hospitality industry.
How service quality has influenced on customer retention within Hyatt Hotels Corporation?
According to the point of view of Luiten (2020) services quality referring to the
measurement of how a company delivering their product & services as compared to customer
expectations. In relation to customer retention within Hyatt Hotel corporation, services quality
play a important role because services quality is helps to give the best services to the customers
which can increase the customer attraction towards the hotel's services. Services quality provide
many benefits to retaining the customers such as customer satisfaction, customer trust, customer
commitment, customer retention, customer loyalty and many more these all factors are related
with each other which is the part of services quality. Services quality can influence the customer
retention by providing the services according to their needs and wants. Hyatt Hotel can influence
their customers by providing the best services to the customers which is linked with the services
quality of hotel. Services quality of Hyatt Hotel helps to increase the number of customers within
the hotel. Customer retention in any industry or organisation only depended on the services
quality because a customer is attract towards the company only because of their service. Services
quality is the important term for the influencing the customer and their attention towards the
hotel that is helps in more profitability and productivity (Yoon, Kim, and Fu, 2020). services
quality of Hyatt hotel corporation helps to increase the customer experience and expectation as
well because the services of hotel is providing the best services to their customers and guest
where the hotel efforts to give the best services for their customer retention. The services of
Hyatt aims to protect their customer which increases the customer retention towards the hotel's
services. Services quality is one of the most important term to retaining the customers which

affects on their satisfaction, quality, trust and commitment. Customer retention can be improved
by giving the services what customers wants and build a goof relation with customers. It is
necessary for Hyatt hotel to improve their services quality to retain more customers which can be
attract by the high quality services. Services quality provide two factors to the customers such as
commitment and satisfaction that is helps in improved the customer retention within the Hyatt
hotels corporation. Services quality can influence the the customers by giving the services
according to their expectation and needs which helps in retaining the customers.
In the opinion to Park and Lehto (2021) services quality is the term that is giving to the
customer for improving their satisfaction, loyalty, retention towards the company or
organisation. It is defined as the term to measure that how the company or organisation is
delivering the services to their customers as comparing the customers expectation. In relation to
Hyatt hotel, their services quality influencing on the customer retention by providing the better
services comparison to other hotel's services, it can be influence by providing the good services
according to their customer's needs and wants. It can be influencing the customer retention by
increasing the productivity and performance of the hotel. It can be influencing the customer
retention by understand their needs and wants and provide the services according to them. It can
be influence by increasing the good services within the hotel such as using the digital
technologies, good food quality, hygiene services and many more. These factors can improve the
services quality to influence the customers. Hyatt hotel feedback is depending on the customer
which they can measure by the services of the hotel. Customers wants high level services which
impact on their positive feedback. Providing product & services according to the customers
needs can helps to increase their satisfaction and increase their expectation towards the services
(Wang, and Feng, 2022). Customer retention is one of the most important term in any company
or organisation which is only depend on the services which is produce by the company in order
to increase their retention. Services quality can influence the customer retention by showing the
good reviews and feedback of hotel. Services quality influence the customers retention by
improving their production and overall performance and increase their quality of services.
Services quality impact on the customers retention by increasing the hygiene services to the
customers. Services quality influence the customers by serving the best products and services.
Good quality services can easily retain a customers towards the hotel which will helps to

increase the profitability and production of the hotel. A good services quality increases the
customers satisfaction by providing the best services to the customers. A good service can
influence the customers by attracting them towards the hotel comparing to other. A good service
can influence the customers by improving the services comparing to other competitor's services.
It is influence on the customer’s retention by introduce the new services such as use of digital
technologies, smart rooms, online bookings, smart services, pre-booking services etc. It also
helps the company to gain competitive advantage as compared to the rivalry of the company.
Their customer base increases which helps them to gain more market share of the hotel in the
market. Thus, it is identified that service quality of the hotel positively influenced the customer
retention rate in hospitality sector.
What are the advantages of customer retention for business performance of Hyatt Hotels
Corporation?
As per the point of view of Bhattacharya and Gandhi (2020) services quality is the
important term that creates many advantages in customers retention within the Hyatt hotel
corporation in their business performance. By increasing the services quality within the Hyatt
hotel helps to improve the customers satisfaction because every customers and guest wants high
level services which is help in customer retention. There are many advantages of customers
retention for business performance of Hyatt Hotel which includes it is helps to increase the profit
and productivity of the hotel, it is improving the hotel's reputation and image as well, it is
improving the overall productivity of the hotel, it is helps to increase and attract more customers
towards the hotel, it is help to get the positive feedback from the customer. It is helps to increase
the quality of services that is the benefits for retaining more customers towards the hotel and its
services (Visser, 2020). it is also increasing the growth of the hotel, it is increasing the customers
loyalty and satisfaction towards the services. It is helps to improve the relation between
customers and hotel. It is help the hotel to understand the customer's and their needs and wants
and provide services according to them. It is helps to increase the higher productivity of the hotel
and as well as increasing the profitability. Customer retention is is important because it is
increasing the services demand comparing to other competitor's services. It is helps to increase
the overall business performance of the company which is the big advantages of the hotel.
Customer retention is helps in attracting new customers towards the hotel and its services by
influencing the customers by telling about the hotel's services. It is helping the hotel by

increasing the production and performance of the hotel which will help in future growth. It is
helps to increase the customer loyalty and satisfaction which is the most important part for the
hotel because customer satisfaction and loyalty is play a vital role to increasing the business
performance of any company or industry. Customer retention provide many factors to the hotel
to increasing their business performance which will helps to retain more customers towards the
hotel and its services. Customer retention affects on the marketing strategy which is help to
become the brand ambassadors.
According to the view of Uğurlu (2020) customer retention is referring to the activity of
organisations and company which they take to reduce the customer defection or dissatisfaction
form the company. It is the program which aims to retain more customer as possible for the
company. It is the program that helps to attain more customers towards the product and services.
In relation to Hyatt hotel corporation, there are many advantages of customer retention which is
help the hotel to increase their business performance for the future goals. Customer retention is
helps the hotel to increase more profit by increasing the number of customers towards the hotel.
It is also helps in increasing the revenue by increasing the customer acquisition. It is also helps to
increase the sale which is the advantage for the hotel. It is also helps to improve the services and
productivity of hotel which is the benefits for the future growth. It is build the good relation
between hotel and customers that is the benefits in understand the customers and their needs and
wants that is helps to increase the profit of the hotel. It is improving the higher productivity of
the hotel that is help in increasing the profitability and productivity of hotel (Decker, 2021). it is
increasing the hotel's reputation and image as well that is helps in attracting more customers
towards the hotel. These all importance and advantages of the customer retention that is helps to
improve the overall productivity and performance of the hotel and increase their business
performance for achieving the goals with effectiveness. Customer retention is provide many
factors to the hotel to improve their business performance for the future growth of the hotel. It is
helping the hotel to earn more profit by retaining the new customers towards the hotel and its
services. Customer retention is one of the important term for the Hyatt hotel which is provide
many advantages for business performance of Hyatt hotel corporation. One of the greatest
advantage that hotel received by providing service quality to the employee is gaining customer
loyalty. Having the loyal customer increase the reputation and goodwill of the company in the
market. The rate of return received by the company having the loyal customer is more as they do

not need to incurred more expensive on acquisition of new buyers. Loyal customer themselves
attract new buyers for the company. Another greatest advantage that company receive with
service quality is company stand out of the crowd. They get their market image with the quality
service they receive (Bharwani and Mathews, 2021). Thus, it is seen that it is very necessary for
the company to have service quality in their business operation as they can various benefits with
them. Their business performance improves in large manner while having the quality of service
in their workplace as well as the customer retention rate will also improve in effective manner.
What are the major challenges that Hyatt Hotels Corporation would be faced in the absence of
service quality?
According to the point of view of Curtin (2022) services quality in any company or
organisation is necessary because it is helps in improve the customer satisfaction and their
expectation towards the services and product. In relation to Hyatt hotel, if there is no services
quality within the hotel, then it may create many challenges and issues which can be faced by the
hotel. In the absence of services quality hotel can faces major issues such as in customers
retention, satisfaction, loyalty, trust and many more which is affect the overall growth of the
hotel. The challenges for Hyatt hotel in the absence of services quality can faced the customer
retention as well as employee retention. The challenges create the many issues within the Hyatt
hotel which can impact on the profit. In the absence of the services quality, it will affect the
productivity and performance of the hotel as well because hotel will faced that there is no more
guest within the hotel because of poor services. In the absence of services quality, it will
decrease the growth of the hotel because if there is no customers retention then there is no
growth for the company. It will also reduce the profitability of the hotel because of lack number
of customers (Han, Yu, and Hyun, 2020). in the absence of services quality, it will impact on the
customers because every customer or guest wants the best services and wants the services
according to them but if there is no good services within the hotel it will decrease the number of
customers. In the absence of services quality, it will reduce the customer satisfaction as well
because customers are not able to attain the services which they want. It will reduce the hotel's
reputation and performance which is the biggest disadvantages for the hotel. It will have reduced
the hotel's productivity and profitability that is the disadvantages for the overall hotel and its
operation. In the absence of services quality, there is no good services within the hotel which can
be given to the customers to attract their retention towards the Hyatt hotel. These all challenges

can make the heavy and negative impact on the hotel which will affect the overall performance
and growth of the hotel and reduce its profitability as well. Some of the challenges which hotels
faced in absence of service quality in the organisation are:
Lack of customer retention rate: The foremost issue faced by the hotel in absence of
service quality is lack of customer retention in the company. The rate of customer holding in the
business for longer time period will be low. As in recent time customer wants quality service
they need best experience when they are booking the hotel. If service quality is not available,
they feel dissatisfied which decrease the retention rate of the hotel in large manner. Having low
customer for the company decreases the overall business performance of the hotel (Yu and et. al,
2020).
Decrease in revenue and profitability: One of the major challenge which will be faced
by the hospitality sector in the absence of service quality in their business is low revenue and
profit. Because in recent time customer are the king in the market. They want best service in
according to the price they are paying to avail the service. In absence of quality in the hotel
company cannot attract tourist and buyers for their brand which will reduce their sale. This
reduction in the sale margin of the company will directly impact the revenue and profit margin of
the organisation. The trust and loyalty cannot be created by the company which will impact their
sal as no other buyer availed the poor service of the hotel (Bharwani and Mathews, 2021).
Lack of market image: Next major problem faced by the hotel is low market image. In
today’s era having the good market image of the hotel is very necessary. This is because it
creates a good perception of the company in customer mind. Quality provide by the service
directly influence the reputation and goodwill of the hotel in the market. In the absence of this
hotel has low market image. They are not able to attract customer for the company which impact
their business performance and productivity to a great extent (Yang, Cheung and Li, 2022).
There are some other issues as well that brand face in absence of servce quality that is lack of
brand awareness, low customer base, lack of competitive advantage and many more.
Summary of the literature review
It has been concluded from the above literature review that developing an understanding
about the quality service and focusing on customers retention is important within the UK
hospitality industry. In this particular chapter all the research objectives are properly addressed
for carrying out the research in an effective manner. Good quality of service helps in retaining

customers towards the business in purchasing the following products and services. Customers
retention is important for the business as this helps in increasing the growth level and success in
the competitive business market. The company also faces several challenges in the absence of
good service quality by the business in the market and results in decreased profitability and
productivity.

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is one of the significant chapter in a dissertation which helps in
accumulating and measuring data in systematic manner. This is the section which helps in
determining the right kind of data to carry out the investigation in effective and efficient manner.
It is the scientific procedure which uses various stages to identify, analyse and interpret data in
scientific way (Bauer and et. al, 2021). Research methodology extract out the right method and
technique for collecting and evaluating data so that aims and objective can be attained in
appropriate way. The major reason for accumulating the data for the study is to maintaining the
validity and reliability of the investigation. The various stages of research methodology are as:
Research philosophy: The first stage in the research methodology is research philosophy
which deals in development, nature and source in order to acquire knowledge and skills.
Research philosophy are of two type which helps in understanding the social world in effective
way. Interpretivism, positivism and realism are the three kind of research philosophies. As per
the current investigation, researcher has selected interpretivism philosophy (Hodge, 2020). Using
this philosophy, the data is gathered and analysed in subjective way so that society can be
understood easily. This also helps in knowing the pattern that is prevailing in the society about
the quality of service in hospitality industry.
Research approach: The second layer in the research methodology is approach part which
developed those general plan for carrying the investigation in systematic manner. Research
problem can be address using two research approaches which are deductive and inductive.
Deductive approach is used when quantitative data is there and inductive approach is used when
qualitative information is there. As per the existing investigation researcher has chosen inductive
approach (Kurten and et. al, 2022). This is because using inductive plan research problem is
addressed with the help of making new hypothesis about the topic. It also helps in identifying the
relationship between customer retention and service quality within hospitality sector. Apart from
this one of the major advantage that is gained by the researcher is that it helps in attaining more
detailed information about the topic.
Research strategy: The third layer in the research methodology is research strategy which
provide step by step guidance to the investigator for gathering information. This is that layer in
the methodology which guide the investigator to take right path for collecting information for the
subject. Survey, action research, case study, experimental research and many more are some

types of research strategies. As per the current investigation, investigator has chosen systematic
literature review research strategy (Powell, 2020). One of the biggest advantage that is gained
using this strategy is data is gathered in in-depth information about the topic. As well as this
strategy also covers different sources for collecting authentic information. This is method is best
suitable for the current investigation because it collects qualitative data in ease manner.
Research design: Research design is the method which assist in collecting, analysing,
evaluating and examining the information. Research design is identified into three categories
which are descriptive research design, experimental research design and exploratory research
design. As per the present research study examiner has chosen exploratory research design. The
main purpose for choosing this is that it helps in assembling and examining qualitative data for
the investigation (Haas and Hadjar, 2020). With assistance of this design subjective information
can be obtained in effective way. This is one of the suitable research design for meeting aim and
objective of the research subject in effective and efficient way.
Research choice: It is the method which helps in opting the method that helps in attaining
aim and objective in right way. It is the method which aid in collecting and analysing the right
type of data to meet the research goal. It is mainly divided into two parts which are defined as
quantitative and qualitative methods. For carrying out the present investigation, the researcher
has selected qualitative research. The reason for selecting qualitative research is that it helps in
gathering and analysing reliable and authentic information from the sources such as articles,
magazines and so on.
Time horizon: Tine horizon is the time framework in the investigation. This is that part in
the investigation which tells about the point of time for gathering information. Time horizon is
classified into two parts which are cross sectional and longitudinal. Cross sectional the name
says short time period and longitudinal means longer time duration. In the present investigation,
researcher has chosen cross sectional time horizon (Velte and Stawinoga, 2020). The main
benefit to use this method is data is collected single time for the investigation. This provide more
appropriate information for investigation. This method also observes multiple variables and
constant in shorter time period.
Data collection: Data collection is the process to gather and measure data for the chosen
dependent and independent variable of the study. The main motive for collecting data is to make
an effective relationship between the variables. There are two vital data collection source which

are primary and secondary source. As per the current investigation combination of secondary
data is used to carry out the research in depth manner (Ortega-Morán and et. al,2020). Primary
data is the first hand data and secondary data is second hand information. Source for secondary
data collection method is books, journal, articles, website and others.
Data collection instrument: Data collection instrument are the tools and equipment through
which data for the study is obtained. There are various data collection instrument such as
questionnaire, interview, experiments, case study etc. In the current investigation the data
collection source for secondary it is government sites, books and articles. With the help of these
instrument second hand data is collected better information can be gathered(Godwin, 2020).
Data analysis: Data analysis is the process of inspecting, measuring, cleaning and
evaluating the raw data for the investigation. Data is being evaluated by the researcher so that
they can acquired useful data for the investigation. There are various data analysis technique
which are frequency distribution method, thematic analysis, content analysis etc. As per the
existing investigation, investigator of the study used thematic analysis (Park and et. al, 2020).
The main purpose to use this method is that qualitative data can be easily inspected. The
subjective information of the study is also represented into discussion format so that readers can
easily read out the information.
Ethical consideration: Ethics are the morale and values which is important to be followed
while carrying out the research. They are obeyed by the investigator so that they are collect
information form the society in ethical manner. In the current research ethics which are followed
is informed consent form, voluntarily participants, confidentiality, credibility, openness and
transparency. This all helps in reducing the vicious conduct while conducting the investigation
(Varbanova and Beutels, 2020).
Validity and reliability: The current research is valid because the researcher used
questionnaire in order to collect information related to the research topic. The questionnaire
involves close ended questions that help researcher to collect valid information from target
audience for the research. The current research is reliable because the researcher selects
respondents through random sampling in gather information. These respondents are managers of
the company that provide accurate and reliable information related to the research topic for
attaining research aim and objectives. The information help research solves the problem that is
found in the research.

Research limitation: There are many factors that described as limitation in the current
research. It involves limited time, minimum cost and resources. The researcher had limited time
to collect and analyse the data for the current research for dealing with this researcher used Gantt
Chart. The Gantt chart classify the different tasks around its deadlines that encourage researcher
to complete the research within time framed. The researcher had minimum cost for completing
the whole research for dealing with this, the researcher used questionnaire to collect information
related to research topic. The researcher also had limited resources to gather information for
dealing with this researcher used secondary sources such as books, journals and scholarly articles
for gathering data (Ewing and Park, 2020).

CHAPTER 4: DISCUSSION
Secondary data is utilised to save time and effort as it is one of the easiest way to collect data. As
this data has already been collected for different reason. It is said to be the second hand
information which is found on various sources that is reports, internet and libraries. On the other
hand, sometimes it is not specific for the desired needs as it is not possible to have control over
the quality of the data.
Theme 1: Understanding about the service quality and customer retention in context with the
UK Hotel Industry
From the above analysis, it can be understood that keeping customers retained is the main goal of
the companies in the hotel industry. Customers play an essential role in the overall success of the
company (Alshamsi and et.al., 2020). Without them the business cannot survive in the market.
That is why the customer retention is one of the essential element in order to maintain both old
customers and attract new ones. It is one of the complex issue for the hotels to retain the
customers and there are various ways which are used to retain the customers. As the hotel
industry is dynamic in nature and its getting change every day. That is why the main way to
attract the customers is by targeting the them with the help of offering the quality services. It can
also be seen that most of the customers are attracted towards different packages and service
offering. As per the market the hotel industry is contributing a major portion in the economy that
too in the form of services. That is why service quality is linked with customer retention as it is
the main element in attracting more customers. Furthermore, customer retention takes place
when the customer buys a product or avail a service over an extended period of time. There are
various activities which are involved in the hospitality industry in order to target and attract the
customers. It can also be understood from the above information that customers are essential
whereas keeping customers satisfied is more important. As various trends are seen in the market
and the company must keep up with trends for a long term loyalty. When the customer loyalty
increases then the profitability will also increase. Along with it, customer satisfaction, loyalty
and quality services have the power to impact the purchase intention of the customers. That is
why the chosen company is making use of technology in order to help the customers in getting in
touch with the team. It is correct to say that various businesses are getting competitive in nature
due to which they are required to take care of their customers by giving them best quality of
products or services (Larsson and Broström, 2019). furthermore, it can be said that chosen

company has adopted the changes and modifications as per the need of the customers. The
company makes sure to provide the best possible experience to its guests. It is also essential to
keep getting the reviews from the customers as it will be utilised for websites and various
platforms in order to attract more customers. That is why the chosen company is creating best
experience for the guests which will directly elevate the level of customer loyalty. In addition to
this, sustaining the customers is good for business as well as it is one of the cost effective
method. In order to keep the customers happy, it is must to understand the needs and preference
of the guests. In that process service quality is known to impact on the customer retention by
providing customers with services that follow their needs and favourites. Due to which offering
top-notch services has helped the chosen hotel win over new customers.
Theme 2 Influence of service quality on customer retention within Hyatt Hotels Corporation
As per the information projected above it can be understood that customer retention is the main
element in the success of the company. In the process of customer retention, the quality
maintenance has become the main aspect. Nowadays customers are becoming quality conscious
that is why the demands of the customers have increased in relation to higher quality services. It
can also be said that quality is the essential element in the real life and it is considered as an
essential tool in the company. It can also be said that service quality is known to lead towards
higher level of customer satisfaction. When the chosen company targets on the quality then its
probability of customer satisfaction will also elevate. In the hospitality industry the customer
retention has received utmost acknowledgment. That is why the term quality is known to
separate the company from other companies. Due to which the main goal of the companies in the
hospitality industry is to keep the customers satisfied (Han and et.al., 2019). It can also be
noticed that when the customers are happy and satisfied then they will share their experience
with other people (Jang, Bae and Kim, 2021). It will directly lead to attract more customers in
the business and the company is also offering right offers to its customers. This is the main
reason company makes use of various strategies because it allows the company to stand out from
the other companies. In that process the value to each sale will elevate when the customers make
decision to purchase. It can be understood that it takes a lot to earn customer’s loyalty for that the
company has proper customer feedback loop under which the company gets to know about the
customer’s feel. It has become easy for the company to deal with the customer’s likes and
dislikes by making use of feedback. With the help of customer retention, the company is able to

measure the customer loyalty over the time. Furthermore, the customer retention is known to be
the main term in any company or organisation (Darzi and Bhat, 2018). Services quality can
impact the customer retention by showing the reviews or feedback of hotel as compared to other
companies. In addition to that the services quality has the power to influence the behvaiour of the
customers. That retention will lead to improve the level of production and overall performance of
the operations of the company. Along with it, the quality of the services creates a major impact
on the customer’s retention. Such as the main focus is given to increase the hygiene related
services to the customers. Good quality services tend to easily retain more customers towards the
hotel which will benefit in order to increase the profitability and production of the hotel.
Theme 3: Advantages of customer retention for business performance of Hyatt Hotels
Corporation
As per the above discussion from the above gathered information from the literature
review is that providing quality service to customers is important for the business organisation
because this helps in retaining them for long period of time. Customers are the main source of
income for every company and it becomes essential to provide effective and good quality of
service to them so that they always choose them (Chandrasekaran, Pathak and Yano, 2020).
Customer retention is the ability of the company to convert customers into repeat buyers for a
service or product and protect them from switching to other competitor companies. This helps in
checking whether the provided product or service delivered by the company is liked by the
customers or not. There are several advantages of retaining customers within Hyatt hotels
corporation for improved performance of business. Customer retention plays a very important
role in the business as it helps in increasing the overall profitability and productivity in the
competitive business market in an effective manner. Giving better quality of services to
customers is an advantage for Hyatt hotel because this results in developing their brand image in
their mind. More customers means more share in the market which helps in knowing about their
needs and wants in a more effective and efficient manner in the business. Improved performance
of business is the major advantage as with better quality of service more customers gets attracted
for availing the services of Hyatt hotel. Customers are mainly attracted to those businesses that
have a good ambience and that offers and supports their views. With the help of customer
retention the business can get positive and true feedback from the customers about their services
that they provide and this results in gaining great presence in the market. Attracting more and

more customers for availing the services of the hotel is another advantage that results in
improving the reliability and brand name in the market (Gorondutse and Hilman, 2019). Hotel is
mainly known for its services and food quality that they provide to their customers so it is
important for Hyatt hotel to provide best services. Better relations with customers is also
considered to be on e of the benefit of retaining customers within the business for long period of
time. Good relations with customers helps in providing them with extra privilege like pre-
booking of comfort room, providing them discounts and taking care of them while they visit the
hotel for staying. Loyal customers are more fruitful for the business as they do not switch to the
particular brand easily and stick to the services and quality of the Hyatt hotel. It also results in
improving the services and productivity of the hotel so that they deal with the competition
prevailing in the market in an effective manner (Szentesi and et. al., 2021). It helps in building
good and effective relations with the customers as they are the main asset of the business and are
valuable in the long run as they visit hotel for staying purpose the time of travelling.
Theme 4: Major challenges that Hyatt Hotels Corporation would be faced in the absence of
service quality
As per the above gathered information from the literature review is that service quality is
important for hotel business to maintain in a proper manner in order to deal with the expectations
of customers in a proper manner. Having no quality service in the business results in creating
difficulty fr the hotel business to delivering best services to the customers. Customers are the
most important value of the hotel business for whom they make efforts so that they feel
comfortable at the time of staying. Hyatt hotel faces different challenges in the absence of
service quality within the business organisation which results in decreasing the level of
profitability in the market (Yu and et. al., 2020). Less growth in the market is a major challenge
that results in reducing the number of customers for the business in the competitive market. No
good quality of service results in decreasing the overall sales of the hotel business and this
impacts the employees working in a negative manner. Lack of customer retention rate is also a
challenge for the company that results in reducing the number of customers for availing the
services of the hotel business. Bad service quality results in making customers feels dissatisfied
while staying in the hotel for a certain period of time. Having less amount of customers in the
business generally results in decreasing the overall productivity of the business in the highly
competitive business market. Bad image in the market is also a challenge that Hyatt might face

with the absence of service quality which reduces the number of customers as they do not find it
worth it to receive services from the particular hotel. Quality services provide more value to the
business as customers feel attracted towards the business and in availing their services that they
offer to the customer at the time of staying. Decrease in the overall revenue and profitability of
the business in also considered to be a challenge for the hotel business as there are less number
of customers who are interested in planning their stay (Graziano, 2021). Understanding the
expectations of customers is a challenge for the company because fulfilling their needs is
prominent and important. Handling angry customers is a major challenge for employees of the
hotel business as this requires more patience and calmness to deal with them and to address their
issues in a proper manner. Selecting the right channel for marketing is one of the challenge that
company face at the tine of providing best quality of service to customers. Right channel helps in
targetting the right customer base in the market and in providing them with best services and
quality food that they deserve at the time of their stay in the hotel (Tabatadze and Chachkhiani,
2021). It is necessary for the business manager to deal with the challenges in a proper manner
because this helps in increasing the number of customers and the share in the market for more
profitability.

CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS
Findings from data analysis
Conclusion
Out of the above-report it is analysed that service quality plays an important role in terms
of improving the overall customer satisfaction. Improving the service quality is imperative to
gain the attention of more and more customers in significant manner. If a company offers better
quality of services, it is easy to attract ample number of new consumers significantly. In context
of hospitality business, service quality plays an important role in terms of gaining higher level of
customer satisfaction to earn substantial amount of profit. In the hotel industry the customer’s
retention which allows the company to attract the customers for the longer period of time. The
hotel industry focuses on providing the customers what they want and fulfil their level of
expectation. It can also be seen that hotels are taking help of the customer relationship marketing
strategy and keeping the record of the past communication or any issues. When the company
take cares of the employees then the sales will rise whenever the customers made a purchase.
Further, it is monitored that service quality plays an important role in retaining the buyers for
longer duration. If a company offers better quality of services, more and more customers are
likely to visit to the particular hotel to avail their services which will uplift the overall sales &
revenue of the organization. In addition to this, service quality also includes offering the best
possible facilities to the buyers so that they stick to the entity for longer duration. It allows the
business organization to enjoy long-term sustainability in the competitive environment. In the
present era, there is extensive competition in the hotel Industry. In this situation, it is quite
complex to retain the existing customers and attract new ones. Through effective service quality,
the respective hospitality organization is able to attract ample number of new buyers. Also, they
can retain the existing set of customers that will help in creating positive image of brand in
competitive market place.
Summary of research findings
After going through with above-mentioned data, it is found that services quality is the
important term that creates many advantages in customers retention within the Hyatt hotel
corporation in their business performance. By increasing the services quality within the Hyatt
hotel it is possible to improve the customers satisfaction because every customers and guest

wants high level services which is help in customer retention. Moreover, customer retention is
important because it increases the services demand comparing to other competitor's services. It
also helps to increase the overall business performance of the company which is the big
advantages of the hotel. There is also discussion regarding the challenges faced the respective
hospitality organization in terms of maintaining superior quality of services. Due to the poor
service quality, they face issues of lower customer satisfaction. While visiting to a hotel, buyers
have expectations to get superior quality of services. If they do not receive the perceive quality
of services, they get disappointed. It puts a negative impact on the overall customer satisfaction
that further creates negative image of the organization among target buyers. Also, the poor
quality of services put a major impact on the overall productivity and performance of the
respective entity. If the organization is not able to offer better quality of services, this might
affect their overall productivity negatively. It is monitored that the other major challenge of
service quality is related to less employee satisfaction that will also affect the overall growth &
progress of the entity in adverse manner.
Recommendations:
Through the above-report, it is analysed that service quality is an important aspect. It is highly
imperative to maintain superior quality of services to gain higher level of customer satisfaction.
However, the respective company is facing issues in terms of maintaining superior quality of
services within organization that creates a direct impact on their overall brand reputation. In this
regard, the necessary recommendations to improve the overall service quality are mentioned
below:
 It is suggested that the Hyatt Hotel needs to maintain proper communication across the
organization so that they can easily implement the strategies and practices across the
organization. This will help in maintaining proper flow of information among different
individuals within the company so that appropriate results can be received in future
period of time. By maintaining proper communication, managers can easily make the
employees familiar with organizational policies & practices. Further, this also helps in
getting support of employees in terms of implementing the suitable practices to improve
the overall quality of services efficiently. This will make the entity enable in terms of

improving their service quality that will further prove helpful in attracting ample number
of customers significantly.
 In the present competitive environment, it is important to maintain superior quality of
services. Here, employees play an important role in enhancing the overall service quality.
In this regard, Hyatt needs to arrange suitable training & development programs for
workers with an aim to improve their overall efficiency significantly. For this purpose,
they can adopt a suitable training strategies such as off-the-job training or on-the-job
training. These training sessions will help in enhancing the overall proficiency of
workforce so that they can contribute in enhancement in the service quality of the
organization. Improving service quality will make the entity enable in maintaining
significant competitive positioning of the entity in market place.
 Motivation is an important strategy to keep the employees motivated. To make use of
full potential of workers, it is imperative to keep them motivated constantly. Here, ample
of strategies can be followed to enhance the morale of workforce. In context of Hyatt
Hotel, they are required to follow suitable monetary & non-monetary practices with an
aim to increase overall confidence level of workers. They are required to offer incentives,
bonus and other monetary benefits to workers. Along with the monetary benefits, there is
also requirement to offer non-monetary benefits such as appreciation, appraisal,
promotion to the employees. If employees are motivated, they are likely to work
significantly to improve the overall service quality. Also, motivated workers perform
assigned tasks efficiently that will eventually lead the company towards progress and
future growth.
 In the present competitive environment, Hyatt Hotel needs to follow updated and
effective technologies to improve the overall service quality. For this purpose, they need
to follow recent techniques like robotics, artificial intelligence and more. In context of
hotel industry, AI is important to provide better check-in & check-out experience to the
buyers. Further, robotics is also important in order to provide effective experience to
clients. These technologies are important with an aim to offer the best possible
experience to the visitors. Here, enhancing the technology will not only improve the
brand reputation of the company but also improve their overall quality of services with an
aim to drive higher customer retention.

 Customers are important part in the hospitality industry as they affect the sales & revenue
of the company in direct manner. Here, feedback given by the visitors is also important to
improve the overall customer experience. Before providing the review, customers are
likely to analyse the services of the company significantly. For Hyatt Hotel, it is
important to consider feedbacks of the buyers so that they can improve the overall quality
of services efficiently. They need to gather the feedbacks, reviews, response of the
buyers as it will provide them scope to make further improvements in the overall service
quality. To gather feedback, they can use different social media platforms such as
FaceBook, Instagram, Twitter and more. By collecting the feedbacks from such
platforms, they can easily improve overall quality of services efficiently. It will enhance
the customer satisfaction that will also contribute in future success of the entity.
The above-mentioned recommendations are based on the issues that are being faced by the
company in terms of their service quality. There is recommendation in terms of arranging
training & development sessions, motivating workforce, implementing advance technologies and
more. Apart from this, the respective hotel is also suggested to gather the feedback of buyers
that can be used further to make improvements in the overall quality of services. By
implementing the above-recommendations effectively, the respective organization can easily
deal with the issues related to service quality. These recommendations will make the company
enable to enhance the overall service level with an aim to get higher customer satisfaction
significantly.

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