Impacts of Service Quality on Customer Satisfaction in the Hotel Sector: A Case Study of Hotels in Sydney, Australia

Customer Satisfaction In Hotels 1
Impacts of Service Quality on Customer Satisfaction in the Hotel Sector: A Case Study of
Hotels in Sydney, Australia.
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Customer Satisfaction In Hotels 2
Table of Contents
Background................................................................................................................................3
The significance of the Study.....................................................................................................4
The scope of the Research..........................................................................................................4
Problem Statement and Objectives............................................................................................5
Literature Review.......................................................................................................................6
References..................................................................................................................................9

Customer Satisfaction In Hotels 3
Background
Market globalization is the most recent development that has received much attention from
all sectors. Its effect on business operations, processes, entities, and partners are vivid
globally noticeable. It disputes traditional customs and conduct and necessitates the need for
different approaches (Steger, 2010).
Globalization of markets comprises the increasing interdependency amongst global
economies; investment activities, international sourcing, production and trading; the upsurge
in overseas transactions and financing; and stiff competition at multinational levels. This
scenario has been fostered by technological advances in transport and communication, the
emergence of world economic and wealth development, the elimination of trade barriers, and
the creation of regional trade blocs. The globalization of markets has also been promoted by
the emergence of new technologies and the propagation of new products (Miu, 2016).
The hospitality industry, which is significantly impacted by the tourism sector, is amongst the
sectors that have substantially been affected by globalization. The development in
international and domestic tourism presents an excellent opportunity for Australia to increase
its market share of the tourism sector and thus increase its GDP (Forsyth et al., 2014).
However, in the research by Jensen and Petersen (2014) the authors observe that global
demand for services and products have shifted with time and change of events and thus it
doesn’t occur naturally but has to be initiated.
With the increasing significance of tourism regarding its significant contribution to a
country’s foreign exchange, the Australian government and primary stakeholders have
embarked on marketing Australia has the best tourist attraction nation of choice. The impact
of travel and Tourism in the Australian economy is evidenced by the total contribution of
10.09% of the Gross Domestic Product (GDP) (Forsyth et al., 2014).