Analyzing Customer Satisfaction and Loyalty in UK Hotels Industry

This project analyzes the impact of customer satisfaction and customer loyalty within the UK hotel industry. It examines factors influencing guest experiences and brand loyalty, based on TripAdvisor data from three 5-star hotels. The research investigates the relationship between service quality, customer satisfaction, and customer loyalty. The study employs a mixed-methods approach, including document analysis and thematic analysis of online customer reviews. The findings reveal that service quality significantly influences customer satisfaction, which in turn, positively impacts customer loyalty. Recommendations include focusing on attentive service, understanding guest needs, and providing feedback mechanisms to enhance customer satisfaction and loyalty. The project also discusses the importance of employee training and building personal relationships with guests to improve customer retention. The study concludes with recommendations for the hotel industry to enhance customer loyalty and improve service quality by addressing customer complaints effectively and building relationships with new and loyal guests.

To Analyse the Impact of Customer Satisfaction and
Customer Loyalty Within Hotels Industry of UK

Table of Contents
CHAPTER 1 – INTRODUCTION..................................................................................................1
1.0 Type of management project.................................................................................................1
1.3 Rationale of the study............................................................................................................1
1.4 Discussing theoretical or conceptual framework..................................................................2
1.5 Main terms of the study.........................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
2.1 Introduction...........................................................................................................................5
Background literature..................................................................................................................5
2.2 Concept of customer satisfaction and customer loyalty........................................................5
2.3 Identifying different factors affecting customer satisfaction and customer loyalty within
Hotels Industry UK.....................................................................................................................7
2.4 Determining the impact of customer satisfaction and customer loyalty in hospitality
industry of UK...........................................................................................................................10
1.5 Focal literature ........................................................................................................................12
1.6 Identifying the research questions.......................................................................................15
CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY..................................................17
3.0 An introduction to the chapter.............................................................................................17
3.1 Design Approach.................................................................................................................18
3.2 Data Collection method.......................................................................................................19
3.2.1 Document analysis...........................................................................................................20
3.2.2 Triangulation:...................................................................................................................21
3.3 Data Analysis......................................................................................................................21
3.3.1 Content analysis...............................................................................................................23
3.3.2 Thematic analysis: ...........................................................................................................23
3.4 Evaluation...........................................................................................................................23
CHAPTER 4: PRESENTATION OF FINDINGS.........................................................................25
4.0 An introduction of the chapter............................................................................................25
4.1 Service quality leads to increase customer satisfaction......................................................25
4.1.1 Being attentive to customer’s needs.................................................................................25

4.1.2 Paying attention to the customers....................................................................................26
4.1.3: Need of provisioning quality services to value customer’s money and avoid the
existence of dissatisfied customers paying high for worthless services...................................27
..................................................................................................................................................27
4.2: Customer Satisfaction is positively associated with customer loyalty..............................29
4.2.1: Affective commitment and loyalty reward....................................................................30
4.2.2: Personal relationship ......................................................................................................31
4.2.3: Increase in customer complaints ....................................................................................32
4.3: Recommendations from customers about improving loyalty and service.........................33
4.3.1: Asking for feedback........................................................................................................33
4.3.2: Understand the needs of guest and loyal customers.......................................................34
CHAPTER 5: DISCUSSION.........................................................................................................36
5.0 An introduction to the chapter.............................................................................................36
5.1 What are the different factors affecting customer satisfaction and customer loyalty within
Hotels Industry UK...................................................................................................................36
5.2 What is the impact of customer satisfaction and customer loyalty a within Hotels Industry
UK.............................................................................................................................................38
5.3 What advice and policies are recommended to increase customer loyalty through an
increased level of satisfaction...................................................................................................40
5.3.1 Asking for feedback.........................................................................................................40
5.3.2 Understanding the needs of the guests ............................................................................40
5.3.3 Focussing on training the employees ..............................................................................41
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS...................................................42
6.0 An introduction to the chapter.............................................................................................42
6.1 Conclusion...........................................................................................................................42
6.2 Recommendations...............................................................................................................44
REFERENCES..............................................................................................................................48
APPENDIX...............................................................................................................................51
Open and Axial Coding Table:.................................................................................................51

ACKNOWLEDGEMENT
For the accomplishment of the present dissertation, I would like to sincerely express sincere
gratitude to my mentor who has provided me sufficient knowledge and greater support. Further, I
would like to thank my friends, colleagues and family members who have guided me at every
stage while conducting dissertation. Through their support, I was able to complete my thesis with
effectiveness and in an accurate manner. Lastly, in the series, I would also like to state special
thanks to my team members who have provided me with assistance in collecting data and in
analysing it further.
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ABSTRACT
Aim: To Analyse the impact of customer satisfaction and customer loyalty within the
hotel industry in the UK.
Methodology: To undertake an effective research, it is crucial to gather information and
data which is highly diversified and authentic (Taylor, Bogdanand DeVault, 2015).
Another key consideration is the using of social media reports, TripAdvisor of customer
reviews discussing customer satisfaction and loyalty were obtained to evaluating what
the customers like and dislike about the hospitality or tourism industry in the United
Kingdom. Further, thematic analysis is one of the most widely used measure for
conducting studies based on qualitative method of analysis. It is one of the most suited
method that can be even applied by novice investigators who are not very familiar to
any complex procedures of research.
Results: Hotel can increase the customer loyalty through providing them some gifts'
voucher at the time of check out. Further they can together focus upon listening to the
problems of customers and duly resolve them for avoiding the formation of any negative
image of the hotel in those customers mind whose issues are still unresolved after
several complains. Further, hospitality industry is all about getting connected to the
clients for a clear understanding of their actual requirements and fulfil the same on a
due period of time. For this purpose, it is essential to build relationship with new guests
as well as the co-workers where personal relationships can be built only if the
management is vigilant about customer’s and believes in resolving them on time.
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CHAPTER 1 – INTRODUCTION
1.0 Type of management project
The management project illustrates the determinants of customer satisfaction
and customer loyalty within the hotels' industry in the United Kingdom. The researcher
has been using data from social media website through TripAdvisor. Covering three
major 5 stars hotels in the UK in order to analyse and compare online customers
reviews. The research study is conducted effectively among TripAdvisor reviews
analysis of each hotel. This, to better understand the positive and negative opinions of
hotels customers and discuss on how the guests become more loyal towards a brand.
1.1 Aim: To Analyse the impact of customer satisfaction and customer loyalty within the
hotel industry in the UK.
1.2 Objectives:
The objectives of the present dissertation are explained as follows:
1- To understand the concept and different factors affecting customer satisfaction
and customer loyalty within the Hotels Industry UK.
2- To determine the impact of customer satisfaction and customer loyalty within the
Hotels Industry UK.
3- To recommend ways to increase customer loyalty through increasing the level of
customer satisfaction.
1.3 Rationale of the study
Assessing the impact of customer satisfaction on loyalty, is very important as it
helps corporation to increase their revenue by applying different ways to grab the
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attention of buyers. The concept of customer satisfaction and loyalty are considered as
the most prominent aspect for the growth and development of business. As this serves
as the basis to increase sales turnover and expand business at international
marketplace (Bowen and Chen, 2001). At present business face issue related to
customer retention which take place as a result of inability firms have in meeting the
expectations of buyers. In some cases, firms do not understand the need of buyers, in
turn fail to provide the right product or services. This research area is interested in the
reason behind maintaining a competitive edge of the business in the marketplace. Thus,
it is important to conduct this particular study to learn about weaknesses and strengths
of the firm along with assessment of all its competitors. Furthermore, the study under
investigation would be effective to allocate the resources in an optimal manner, to meet
the expectations of all related consumers. Moreover, the study aims to understand the
reasoning behind customer dissatisfaction and consider areas of improvement. Finally,
appropriate systems to maintain the higher level of customer satisfaction are selected
and applied on the basis of outcome of the investigation so as to maintain the loyalty of
buyers.
1.4 Discussing theoretical or conceptual framework
The conceptual framework of current study is based on vivid insights which is
developed with the help of use of appropriate source of information. The research shed
light on different models applied to understand the consumer satisfaction along with
research on getting insight related to their need and preferences. First of all, the
concept of customer satisfaction and loyalty is made clear with the application of
suitable customer satisfaction model. Here, it has been found that when customers are
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provided the services and product in accordance with their requirement at the time their
level of satisfaction increased (Bowen and Chen, 2001). The model of customer
satisfaction shed light on getting the information related to expectations or requirement
of buyers and then accordingly take appropriate decision to increase the market share
of the business. This results in increasing the profitability and thus meet the
expectations of buyers effectively.
Similarly, customer metrics will be used to get the information related to their
satisfaction, expectations and brand preferences etc. This provides additional
information in supporting current to develop in-depth understanding about the topic.
At the same time, decision to stick to particular brand is taken by the buyers.
Furthermore, different factors such as quality, price and variety of services are
considered under the most important aspect through which brand loyalty can be
ensured. At the same time, suitable mode of communication is also effective which in
turn firm effective establish better relationship. Apart from this, customer
recommendation, share of wallet and trend in spending are some the factors which will
be considered for increasing their level of satisfaction and thus its impact on brand
loyalty. Moreover, customer brand relationship model will be applied for better
understanding about impact of customer satisfaction on brand image of the business. In
this manner, factors leading dissatisfaction or satisfaction are identified so as to assess
its direct relevance with brand loyalty. It proves to be effective for hospitality sector to
explore different areas which requirement improvement in their service quality. Hence,
conceptual frame would ascertain varied factors leading satisfaction to consumers and
the consequent development of loyalty towards a particular brand. In this manner,
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structured procedure will be adopted under which at first concept of customer
satisfaction and loyally will be understood. It would be followed by factors through which
brand image of firm is created and how it links to satisfaction level of users. Apart from
this, at last research shed light on impact of brand image on users’ loyalty.
1.5 Main terms of the study
There are different terms applied in the current dissertation which are defined as
follows-
 Customer loyalty- The term customer loyalty refers to the likelihood of buyers to
purchase a specific brand on repeated basis in accordance with some specific
terms like variety, quality, price or others.
 Customer satisfaction- It is the marketing term used by business in context of
particular product or service that whether it is meeting expectations of buyers or
not. The term customer satisfaction assists business to focus on lacking areas in
order to retain buyers for longer time span.
 Brand image- The term brand image refers to impression of particular service or
product held by potential or real customer. The brand image of an organization is
developed with the passage of time via advertisement and communication
strategies.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is the most important chapter which consists of different
secondary data for the purpose of developing deep understanding. It would be effective
for scholar to collect large amount of information and draw valid outcome. It involves
varied studies whereby related concepts of customer satisfaction and customer loyalty
is clarified. The current literature review is based on assessing the impact of customer
satisfaction on loyalty, themes are prepared. These themes are helpful for the purpose
of presenting the collected data in an effectual manner. The first theme is about
understanding the concept of customer satisfaction that how it is derived and how it
proves to be effective to reach the outcome. Therefore, factors affecting the customer
satisfaction and loyalty are identified so that accordingly impact of the same can be
seen on retention of buyers in hospitality industry.
Background literature
2.2 Concept of customer satisfaction and customer loyalty
According to Comegys, Hannula, M and Vaisanen, (2006) customer satisfaction
serves as the most important objective in the field of marketing. Here, organizations put
efforts to increase the level of satisfaction so as to predict their purchase intention
towards a particular brand. Though, is consider overall behaviour of buyers in term of
brand choice, purchase intention, repurchase and switching behaviour. All these factors
are considered with the help of implementation of right kind of marketing strategies.
Devaraj, Fan and Kohli (2006) reviewed that customer satisfaction begins with the
overall evaluation of after purchase decision. It reflects that fulfilment response of
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consumers. Similarly, Eskildsen and Kristensen (2007) defined that satisfaction of
buyers is the feeling of disappointment or pleasure related to the particular brand in
relation to their expectations. Earlier the issue related to dis-confirmation of buyers’
expectations affecting the performance of the business. However, it was based on three
outcome of consumer brand evaluation under which actual performance is compared
with the certain standards. Here, the first one shows confirmation under which
performance of product and services matches with the standards set by the consumers
which tend to bring neutral feelings. On the other hand, positive disconfirmation tends to
derive satisfaction under which performance of product or service go beyond the
standard.
In addition to this, negative disconfirmation reflects that performance of services
worse than set standard that bring forth outcome as dissatisfaction among consumers.
Owing to this, decision related to satisfaction and dissatisfaction is taken on the basis of
comparison made between performance of the product and services in accordance with
the standard. There are some factors which influence customer loyalty that impact the
customer loyalty such as discount offer and promotional code which help in encouraging
customer to buy product and services. It organization take feedback from its customer
and make improvement in the product which help in increasing customer loyalty. Along
with this digital also help in building customer loyalty because it helps; in making
interaction with customer. Along with this it also helps in removing barrier between
customer and other company. Firm can conduct research for identifying their needs and
wants, so that it can make product according to the needs and wants of customer.
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Another method for influencing the customer loyalty that is social media it plays
significant role in making strong relationship with customer. There are different social
networking sites which help in increasing sale of product and services. Further it is easy
way to find out what people think about their company. From the research is has been
identified that more than seventy percent of people state that information finds out that
social sites influence their buying decision. He further highlighted that online customer
services also influence the loyalty of customer. Face to face interaction help in getting
more information what people think about company which help in modifying product and
services. If customer problem listened organization then satisfied the customer.
Customer want high quality product and services so company need to focus on
improving services so that it can easily increase satisfaction level of customer.
2.3 Identifying different factors affecting customer satisfaction and customer loyalty
within Hotels Industry UK
According to Hsu (2008) customer satisfaction is gained with the help of different
factors such as offering them services on right time and meeting their expectations
effectively. This aspect enables customers to shed light quality of services that whether
they are getting right kind of services or not. For this purpose, Harn and Adeline (2008)
asserted that varied factors such as friendly workforce along with their helpful nature
and quick services. It is significant for business to identify different factors that helps in
affecting customer satisfaction and loyalty. Therefore, it is essential for business to
adopt effective strategies so that loyal customers could be retained within firm for long
term. There are different methods such as employees focusing upon developing
effective working environment and maintaining effective relationship with clients helps in
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