Factors Affecting Customer Satisfaction in New Zealand Hotel Industry

This research report investigates the factors undermining customer satisfaction within the New Zealand hotel industry. It begins with an introduction and background, highlighting the importance of customer loyalty and the competitive landscape of the hotel sector. The report outlines the research aim, which is to evaluate the factors that generate satisfaction within the customers to improve service, and poses several research questions addressing factors affecting customer satisfaction. A literature review examines service quality and its impact on customer loyalty. The methodology includes a cross-sectional research design with surveys and interviews. Data collection involves surveys of customers and interviews with hotel managers, with data analysis focusing on identifying key satisfaction drivers and areas for improvement. The report also addresses ethical considerations, a timeline for the research, and references. Appendices include survey questions and interview questions used to gather data on customer experiences and management strategies. The report concludes by analyzing the factors affecting the customer satisfaction rate within the Hotels existing in New Zealand.

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Reasons undermining the customer satisfaction in New Zealand hotel industry
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Name of University
Author’s Note

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Table of Contents
1. Introduction and Background:................................................................................................2
Research Aim:............................................................................................................................4
2. Research Questions:...............................................................................................................4
3. Literature Review:..................................................................................................................4
4. Research Methodology:.........................................................................................................5
Research Design:....................................................................................................................5
Process of Data Collection:....................................................................................................6
Data Analysis:........................................................................................................................6
Limitations:.............................................................................................................................6
5. Ethics:.....................................................................................................................................7
6. Timeline:................................................................................................................................7
References:.................................................................................................................................8
Appendices:................................................................................................................................9
Questions for Survey:.............................................................................................................9
Questions for the Interview..................................................................................................10

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1. Introduction and Background:
Over the last decade, hotels have been competitive. The loyalty of the customers is the
most crucial factor that attracts clientele and promotes competition in the lodging industry
alongside contributing to the business industry (Pizam et al., 2016). For this purpose,
enhancement of the loyalty of the customers is stated to be one of the significant aspects of
attracting competitiveness within the industry along with ensuring of business stability. The
research conducted by Kim, Vogt & Knutson (2015) shows that it is the responsibility of the
hotel management in ensuring the happiness of the consumers for maintaining of the
reputation.
This present research study is being aimed towards exploring the customer
satisfaction rate within the Hotels existing in New Zealand. Under the present circumstances,
one of the biggest issues facing the managers within the hotel industry is to offer and
maintain satisfaction of the consumers. Customer prerequisites for the quality service and
products in the industry of tourism have increasingly become apparent to the professionals.
Guests’ relationship is being stated as the strategic asset of the company or hotels along with
the satisfaction of customers, which is the starting point in defining the objectives of
business. Hotels have been increasing their investments in developing the quality of service
along with the professed value of guests for attaining better satisfaction of customers and
loyalty factor. The following image illustrates the fact that New Zealand has remained a
favorite tourist destination for global tourists as its hotel industry has played major part in
staying competitive and delivering quality service. This paper would consider the factors that
have been affecting the customer satisfaction of New Zealand’s hotel industry.

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Figure 1. Satisfaction Index of New Zealand Tourism
The above image states the fact that foreign tourists have been highly satisfied with
New Zealand tourism over the years in which the hotel industry has played a major part. The
satisfaction rate has been stable over the period with very few people being not satisfied with
the facilities they have received in the country (Pizam et al., 2016). The proportion of people
who are likely to recommend New Zealand has remained very high, which is 96-97% stating
the hotel industry does a good job related to satisfaction.
Figure 2: Satisfaction percentage with New Zealand Hotels
The above graph is also an indication of the fact that New Zealand hotels have played
their part in satisfying the customers with 65% of the foreign tourists agreeing to the fact that

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they have been well taken care of by the hotels and satisfied them as per their needs and
desires (Liat, Mansori & Huei, 2014). However, there lies room for improvement for them as
22% still believes they have been not up to the desired mark.
Research Aim:
The main aim of this research study is in evaluating the factors that generates
satisfaction within the customers, which can be applied by the Hotels for improving their
service. It is important for the hotel industry in focusing on the factors of customer
satisfaction for retaining the existing ones and attracting the new.
2. Research Questions:
The research would be based on certain research questions that would channel this research
study into correct paths.
a. What are the factors affecting the hotel industry as per an individual customer?
b. Why do these factors affect the hotel industry in NZ?
c. What is being compromised when it comes to customer service standards in the hotel
industry of New Zealand?
d. What can improve the customer satisfaction rate in areas that are highly required as per the
client?
3. Literature Review:
The literature review would be dealing with the satisfaction rate of the customers
within the hospitality industry based on the service quality that is generally been offered by
the hotels. The main focus would be on the factors that are most likely to affect the customer
satisfaction or customer care within the hotel industry and the issues associated to it (Kim,

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Vogt & Knutson, 2015). In cases where customers are contented with the brands or the
products, they in all probabilities would be becoming loyal customers and keep distributing
good word about the hotel (Rahimi & Kozak, 2017). If customers are disappointed, they are
likely to switch brands and talk bad about that particular hotel to diverse customers. The hotel
brand is an indispensable factor that ardently influences the exercises of advertising and the
hotel goodwill and image that generates good intuition. High competition rate within this
industry has resulted in augmented demand having significant impact on the service quality
offered to their customers by the hotels.
One of the key issues faced by the hotels in gaining competitive advantage is
providing their service at lower rates to the customers (Liat, Mansori & Huei, 2014). This
generally takes its toll on the service quality offered by the hotels. There exists a strong
relationship between the service quality offered and the customer loyalty extent depicted by
the customers. This is important in helping to develop the value of the brand of the industry
of hotels.
4. Research Methodology:
Research Design:
The primary design of the research would be cross-sectional in nature signifying the
fact that the plan of the research would be as per collected information over specific time
period. The study aim towards identification of the factors that plays major part in satisfying
the tourists paying visit to New Zealand and staying in hotels. The survey would be done on
25 customers along with 5 managers across various hotels in New Zealand. It is important to
understand the desire and needs of the customers when they book hotels and the factors they
give emphasis on while staying in a particular hotel.

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Process of Data Collection:
Researchers are in the habit of gathering two kinds of data. One being the primary
one, gathered from primary sources inclusive of survey and interviews and the other being
secondary, mainly based on previous relevant journals and magazines within the same
domain (Zaibaf, Taherikia & Fakharian, 2013). The primary research takes in a relevant
sample size for the research.
For this particular research work, the researcher would be gathering data from the
survey of the customers visiting and staying at the hotels in New Zealand. The researcher
would be going for a sample size of 25 customers along with 5 managers and they would be
chosen on random basis, visiting the hotel at various times across the year.
Data Analysis:
The research is based on gathering relevant data from the literature review and the
data collected from the secondary sources. The gathering of data is done keeping in mind the
aspects required for conducting the research in a proper manner. The significance of the data
can be identified by analysing the responses of the people and the managers.
Limitations:
In case of major limitations that might be a concern for this research is the time factor
in collecting the data from the overall size of the sample selected for the research. Adding to
that would be the limited cost factor allotted for the conducting of the study. This research
would generally be a cross-sectional one and would be studying the customer satisfaction
factors over a period of 3 years after which the results might vary as policies change after
certain time period which plays a role in satisfaction of customers.

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5. Ethics:
In this research, the relevant ethical factors will be considered. Private or financial
information related to the hotel or the people participating in this research study should be
leaked out during any point and complete secrecy is to be maintained. Once the evidence of
interview and questionnaire is being shown to the researcher, it would be destroyed in due
time. The data would be stored in Microsoft excel for future references and would be kept
secretly by the researcher conducting the study.
6. Timeline:
The timeline for this particular research would be 3 months starting from 10th
September 2017 until 10th December 2017. The timeline would be segregated for each month
in keeping the work of the research on track. During the initial first months chapter would be
developed followed by chapter 2 containing the literature review. Chapter 3 would be dealt
with in October and Chapter 4 containing data analysis and discussions to be followed the
next month. The third month would witness development of chapter 6 and chapter 7.
Weeks
0 1 2 3 4 5 6 7 8 9 10 11 12
Timeline of Research
Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Finalisation

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Gantt Chart
References:
Kim, M., Vogt, C. A., & Knutson, B. J. (2015). Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
Research, 39(2), 170-197.
Liat, C. B., Mansori, S., & Huei, C. T. (2014). The associations between service quality,
corporate image, customer satisfaction, and loyalty: Evidence from the Malaysian
hotel industry. Journal of Hospitality Marketing & Management, 23(3), 314-326.
N. Torres, E., & Kline, S. (2013). From customer satisfaction to customer delight: Creating a
new standard of service for the hotel industry. International Journal of Contemporary
Hospitality Management, 25(5), 642-659.
Pizam, A., Pizam, A., Shapoval, V., Shapoval, V., Ellis, T., & Ellis, T. (2016). Customer
satisfaction and its measurement in hospitality enterprises: a revisit and
update. International Journal of Contemporary Hospitality Management, 28(1), 2-35.
Rahimi, R., & Kozak, M. (2017). Impact of customer relationship management on customer
satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism
Marketing, 34(1), 40-51.
Zaibaf, M., Taherikia, F., & Fakharian, M. (2013). Effect of perceived service quality on
customer satisfaction in hospitality industry: Gronroos’ service quality model
development. Journal of Hospitality Marketing & Management, 22(5), 490-504.

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Appendices:
Questions for Survey:
 How are you fulfilled with the eminence of Service that is offered by the hotel?
a) Highly- Satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Strongly Dissatisfied
 Are you likely to stopover again in this hotel?
a) Definitely
b) Possibly
c) Definitely not
 Will you suggest this hotel to your friends and relative?
d) Definitely
e) Possibly
f) Definitely not
 How are you satisfied with the location of the hotel?
a) Highly- Satisfied
b) Satisfied
c) Neutral
d) Dissatisfied

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e) Strongly Dissatisfied
 How are you content with quality of food and beverage?
a) Highly- Satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Strongly Dissatisfied
Questions for the Interview
 What are the accessible strategies that the hotel has executed in order to develop upon
customer service?
 What proposal have the hotel taken in order to recognize the issues that is causing
Low customer contentment?
 What are your future plans that you would like to execute in order to progress upon
the customer contentment?
 6. What is one thing the clients prefer when it comes to service at hotel or a food and
beverage outlet?
 7. What is one possible mistake the hospitality personnel make in a lodging in food
and beverage industry?
 8.What is one possible solution recommended by the clients in terms to improving the
standards of customer service provision in the hotel industry of New Zealand