Customer Satisfaction in Budget Hotels: Holiday Inn Express Case Study

This report investigates customer expectations and satisfaction within the budget hotel sector, focusing on Holiday Inn Express as a case study. It explores the importance of customer satisfaction for business growth, examining factors influencing service quality and its impact on customer loyalty. The study delves into Holiday Inn Express's customer care strategies, analyzing their effectiveness in enhancing customer experience and identifying measures budget hotels can implement to improve service quality and efficiency. The research employs a literature review to provide a theoretical framework, examining concepts like customer expectations, service quality dimensions, and the relationship between customer care services and satisfaction. Findings from various sources, including books, journals, and articles, are synthesized to offer a comprehensive understanding of the subject, aiming to provide valuable insights for the hotel industry. The report also identifies key strategies for enhancing customer satisfaction and loyalty, offering practical recommendations for budget hotels seeking to improve their operations and competitiveness.

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).
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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
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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
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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
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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,
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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
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