Jumeirah Hotel London: Guest Satisfaction and Business Profitability

This project proposal outlines a comprehensive study on the impact of guest satisfaction on the profitability of Jumeirah Hotel London. The introduction establishes the background, aims, objectives, and research hypothesis, emphasizing the crucial role of customer satisfaction in business success. The methodology section details the chosen quantitative research approach, including primary and secondary data collection methods through questionnaires and literature review. The literature review explores the concept of guest satisfaction, its significance, and its relationship with profitability, drawing on various scholarly sources. The project aims to analyze the relationship between guest satisfaction and profitability, recommending strategies for Jumeirah Hotel London to enhance guest satisfaction and, consequently, improve its financial performance. The proposal also details the research strategy, data collection methods, population, and sampling techniques to ensure a robust and reliable analysis.

HOSPITALITY
MANAGEMENT
CONSULTANCY PROJECT-
PROPOSAL

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Background.................................................................................................................................3
Aim of research...........................................................................................................................3
Objectives of research.................................................................................................................3
Research hypothesis....................................................................................................................4
Rationale.....................................................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................4
LITERATURE REVIEW................................................................................................................7
REFERENCES..............................................................................................................................11

Title- Effects of guest satisfaction on business profitability: a case study of Jumeirah hotel
London.
INTRODUCTION
Background
Guest satisfaction or customer satisfaction is referred to as measurement of the fact that
how much happy is consumer with product and services of company. For any business to be
successful most essential aspect is to keep its consumer happy and satisfied. The reason
underlying this is that is consumer will not be happy then they will not purchase product and
services of company. Hence, this will result in decrease in profitability of company as consumer
will not buy its goods and services. For the success of business, it is essential that profitability of
company is high and this will be high in case sales are high. For sales to be high the most crucial
thing is that consumer are satisfied with product and services of company.
The current report is based on Jumeirah hotel and resort which was founded in 1997 and
is headquartered in Dubai, UAE. The present research will outline the effects of guest
satisfaction over the profitability of company. For this the reason pertaining to this is that in case
consumer are not satisfied with operations and strategies of hotel then they will not come to the
place again. Thus, this will result in decrease in sales of company which eventually will result in
decrease in profitability of company. Further the present report will develop a detailed
understanding relating to the guest satisfaction and its relation with profitability of company.
Further the report will also highlight the different methods and strategies that will be used to
complete the research in successful manner.
Aim of research
“To analyse the impact of guest satisfaction over the profitability of business. A study on
Jumeirah hotel London”.
Objectives of research
 To develop understanding relating to the concept of guest satisfaction and its
significance.
 To critically evaluate different strategies through which guest satisfaction can be
improved by Jumeirah hotel London.

 To examine the relationship between guest satisfaction and the profitability of Jumeirah
hotel London.
 To recommend some of the strategies with which Jumeirah hotel London can improve
guest satisfaction.
Research hypothesis
H0- There is no significant relationship between guest satisfaction and profitability of company.
H1- There is significant relationship present among guest satisfaction and business’s
profitability.
Rationale
In the current competitive environment there are many hotels and resorts operating in
global marketplace. Hence, the only thing which can cause differentiation among these
companies is the satisfaction of consumer and profitability of companies. This is the major
reason behind conducting the research over effect of guest satisfaction on profitability of
business. Hence, this research will assist in developing knowledge of company that what is the
relation between guest satisfaction and profitability of hotel. This will assist the company in
improving its strategies with aim of attracting consumer and enhance their satisfaction within the
business. in addition to this there is also personal and academic interest of researcher within the
research topic of guest satisfaction and its effect on profitability.
RESEARCH METHODOLOGY
Research strategy
The research strategy is defined as the method or the steps through which the research is
being completed in successful and effective manner. For any research the most important thing is
to decide for the fact that how the research will be completed and aim will be attained. For
conducting the research there are two major strategies that is qualitative and quantitative
research. The qualitative approach of research is the one under which the research is based on
values and attributes and not on the factual data (Stokes, 2017). On the other side the quantitative
research approach is the one which involves collecting and analysing numeric facts and figures
relating to research topic. Both the strategies are good and effective in conducting and
completing the research in proper manner. But for researching on effect of guest satisfaction over
profitability of business, quantitative approach will be selected. The major reason underlying

selection of quantitative approach is that this research undertakes quantitative and numeric
information and this provides more accurate and logical reasoning and outcomes for research.
Primary/ secondary research
For the completion of the research there are many different methods but the most
common type of method for completion of research is the primary and secondary research (Chu
and Ke, 2017). The primary research method is the method in which the information is being
gathered by conducting research on their own. Under this type of method, the researcher collects
themselves all the data relevant to the research. Under this methodology the data is being
collected for the first time and is being used in the research for the first time only. In this type of
method, the researcher with help of different types of methods like questionnaire, survey,
interview and other methods the data is being collected directly from the respondent with help of
these methods. This data will be used in the research and this data is not being used in any of the
research earlier.
On the other side another major type of research is secondary method wherein the
researcher tries to collect and gather data from the books, articles, journals and other published
sources of data. This is also a good source of information and completing research as under this
method second hand information is being used. This means that the data which is being used in
research is already used in some other researches as well. This is also a good method of
conducting research as this involves the already used data and this ensures that the data is valid
and authentic as has already being used in some prior research and studies.
In addition to this the combination of the both primary and secondary data will be better
in order to complete the study and research in proper and effective manner. Hence, in order to
complete research on analysing effect of guest satisfaction over the profitability of business is
that the combination of both primary and secondary will be used.
Sources of data
The whole research is being based over the data collected and gathered relating to the
topic of research. If the data will not be valid and accurate then research will not work in proper
and effective manner. For the research to be completed in effective and correct manner the most
essential requirement is proper data which can be collected from the proper source only (Esser
and Vliegenthart, 2017). As discussed above there are two sources of data that is primary and
secondary source of data. For the present study over the effects of guest satisfaction on the

profitability of business both primary and secondary source of data will be used. For primary
source with help of questionnaire the data will be collected. Along with this for the secondary
sources, the primary responses will be supported by the views of different authors with help of
articles, journals, books and other published sources of data.
Population and sampling
The population is defined as the total number of people or the entire group of people on
which the study need to be conducted (Liamputtong, ed., 2019). For a research to be undertaken
there is a large population which need to be analysed and data need to be gathered from these
people only. But it is not necessary that the researcher is in position to collect data from a large
population size. Hence, in case if the population is high then it might not be possible for
researcher to gather and collect data from all respondent. In addition to this if the researchers
have less time then they will not be in position to apply test or collect data on all the participant
present in the population. Hence, for this the sampling is used wherein some of the samples out
of all the population are being selected and then data is being collected from them and test is also
applied on those particular set of sample only. The population on which the research will focus
on is the managers of Morrison. The reason underlying this fact is that managers only know that
what impact does the customer satisfaction and retention has over the profitability of company.
Hence, for the present research on effect of guest satisfaction over the profitability of the
company is 20 managers of Morrison.
Data collection methods
The data is the most important thing in the success of the research. The major reason for
this is that when the data will not be valid and relevant then this will create problem and issues in
the successful completion of the research. With this it can be stated that the whole research is
based over the data collected only. For this reason, the data collection is the most important and
crucial stage of research. For this there are different types of methods through which data can be
gathered and analysed. The different types of method for data collection are like questionnaire,
interview, survey, observations and many other different types of data (Cypress, 2018). The
questionnaire is a method wherein researcher prepares a list of questions and circulates among
respondent and ask them to fill the answers. On the other side interview is a method wherein
researcher conducts a face to face interaction with the respondent and records their responses on
their own. In against of this survey is a type of method wherein the researcher conducts survey

for a particular group only and not anyone else. In order to conduct the present research over the
analysing of effect of guest satisfaction over profitability of company is the use of questionnaire.
Under this researcher will make a questionnaire relating to objective of study and collect data
from the selected respondent which is 20 managers of Morrison.
LITERATURE REVIEW
Theme 1- Concept of guest satisfaction and its significance
As per the views of Assaker, O’Connor and El-Haddad (2020) in the present competitive
and global working environment the most essential thing for companies is to focus on the
providing of satisfaction to consumers. This is particularly essential for the reason that if the
consumer will not be happy and satisfied with the services and product of company then this will
affect the working to a great extent. For the measurement of success of company, the most
essential criteria are the number of consumer and whether they are satisfied with the product and
services of the company. if the consumer of the hotel is satisfied with the company then this will
improve the profitability of the company. The reason underlying this fact is that if guest will not
be satisfied with services of hotel then they will not come to the hotel. In addition to this they
will also not suggest other people to go to that place and this will reduce the sales of the hotel to
a great extent.
On the other side Mohanty (2019) argued that if the hotel will not focus on working and
the guest satisfaction of the consumer then this will not result in creating a good image of the
company in market. This is pertaining to the fact that if the consumers are not coming to the
place then this will reduce market share and profitability to a great extent. In addition to this
Moise and et.al., (2019) stated that the major importance of focusing on guest satisfaction is that
this increases the customer retention and loyalty with the company. this is particularly because of
the reason that when the company will not be having satisfied consumer then this means that
they will be switching over to other places and will not be loyal to a particular hotel.
Along with this as per the opinion of Top 10 benefits and importance of customer
satisfaction, (2021) another major importance of managing guest satisfaction is that a higher
guest satisfaction provides a competitive advantage to the company. this is particularly because
of the reason that when the large number of consumers are satisfied with the hotel then they will
not go to any other place and will be coming to the same place. Thus, this will provide a
competitive advantage to the company.

Theme 2- Evaluation of different strategies which assist in improvement in guest satisfaction.
As per the views of Yang, Mao and Tang (2018) guest satisfaction is one of the
prominent factors for ensuring the success of the hotel business. In order to achieve the guest
satisfaction various effectual strategies are to be designed. Providing the visitors with the
personalized and customized services as proposed by them is the best way to maximize their
satisfaction level and also influence them to retain with the brand in future as well. In the central
reservation system of the hotel, the guest can specify any events, occasions or any other special
requirements which are fulfilled by the hotel by the time they arrive. Herstein and et.al., (2018)
on the contrary believes that my meeting the paid requirements of the visitor is not that big deal,
rather complimentary services, freebies, offers etc. would be more attractive and will ensure
boosting the satisfaction level of the customers.
In the opinion of Aakash and Gupta Aggarwal (2020) there are different ways to improve
the experience of the guests with the hotel and maintaining their loyalty with the organization.
One of which could be maintaining the organizational structure such that timely and efficient
services could be provided to the guests. By avoiding unnecessary delays, standing in long
queues, waiting for the arrangements and unavailability of the resources. Any of these reasons
would be sufficient to degrade the satisfaction level of the employees.
De Pelsmacker, Van Tilburg and Holthof (2018) contradicted that timeliness should not
mean that the quality of the service is being degraded by the staff of the hotel. In the hurry to
reserve or book the room for the guest the housekeeping department does not prepare the room
efficiently. Such actions will lead to dissatisfaction and further spoil the brand image of the
hotel. Bi and et.al., (2020) evaluated that one of the most effective strategies to influence the
selection decision of the hotel of the visitors is through the up-gradation of the technology.
Technologically sound premises with in-room technologies, optimized websites for prior
bookings, online payment system and quick grievance redressal system are the factors
contributing to the enhancement of the guest experience.
Moise, Gil and Ruiz (2018) presented that for increasing the level of satisfaction that is
experienced by the tourists of the hotel, it must have a very proactive presence on the social
media sites. This presence shall strongly market the brand as well as shall maintain a close
contact of the hotel with its prospective customers. An optimized website of the hotel shall help
it address to the problems that are faced by its customers and also they can receive feedbacks

over the services that are provided by them. With the help of these feedbacks and opinions the
workforce can improve their operations which shall ultimately lead to a better stay of the guests
at the hotel.
Against the opinion Noor and et.al., (2017) mentioned that the digital marketing channel
also has fake reviews, negative opinions, dislikes which unnecessarily causes negative publicity
of the brand. Many a times based on these negativities customer takes the decision and poorly
rate the experience at the hotel. This creates negative impact on the profitability of the hospitality
industry.
Theme 3- Relationship among guest satisfaction and profitability of company.
Simons, McLean Parks and Tomlinson (2018) analysed that there is a direct relationship
between the two crucial factors of the hospitality industry which are the level of guest
satisfaction and the profitability of the business. The direct proportion can be analysed by the
fact that with the increase in one of the factors there is a simultaneous change in the other factor.
It has been evidently proved that the maximization of the customer satisfaction leads to a
positive impact on the profitability of the business. Singh and et.al., (2017) criticizes that in the
process of maximizing the satisfaction level or the experience with the hotel, sometimes the hotel
tends to incur lot of costs unnecessarily which affects the profitability of the business in negative
way. Alternatively, it can also be that the increased cost for improvising the stay shall be
demoralizing the customer and tend to shift their preference in the selection of the hotel.
Susskind, Kacmar and Borchgrevink (2018) believes that the practice of generating
positive experience of the visitor creates value for their money which they are paying to acquire
the services of the hotel. The value for their money enhances their spending capacity which
means that the customer is ready to pay more for the services. This ultimately shall be increasing
the profitability of the business. Zemke and et.al., (2017) against the motion clarifies that the
relationship that is shared between both the factors is not quantifiable and so it cannot be judged
that what level of guest satisfaction is sufficient to bring profitability to the business. The
comparison of a quantitative and a qualitative factor is not easy and needs high level of expertise
by the management of the company.
Padma and Ahn (2020) interprets that the various strategies that are formulated in order
to gain the satisfaction of the customers is very essential for the long term profitability and
survival of the business. The enhanced experience of stay at the hotel shall be responsible for

generating competitive advantage for the business. The edge over competitors shall divert the
traffic to the hotel which is an important reason for the maximization of the profitability in the
hotels.
On the contrary Kumar, Lahiri and Dogan (2018) believed that time of the realization of
guest satisfaction and profitability are very different. It means that time at which the costs for
maximizing the satisfaction are incurred is not similar to the realization of the profits. The
benefit generated is in the long term for which the costs are incurred in the short term. This leads
to the non- matching of the revenues with the expenditure of the hotel. In the opinion of
Lombardi and et.al., (2020) customer loyalty is responsible for generation of revenues for the
company. And the loyalty of the customers is attained by the enhanced guest satisfaction. So it
can be ascertained that various other factors also play key role in the profit maximization of the
company.

REFERENCES
Books and Journals
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Moise, M., Gil, I. and Ruiz, M., 2018. Effects of green practices on guest satisfaction and
loyalty. European Journal of Tourism Research. 20(20). pp.92-104.
Moise, M.S., and et.al., 2019. Influence of environmental practices on brand equity, satisfaction
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Noor, N. M. and et.al., 2017. Factors that influence frontline employee behavior towards guest
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Simons, T., McLean Parks, J. and Tomlinson, E. C., 2018. The benefits of walking your talk:
Aggregate effects of behavioral integrity on guest satisfaction, turnover, and hotel
profitability. Cornell Hospitality Quarterly. 59(3). pp.257-274.
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customer satisfaction, service quality, and profitability in luxury hotels in Kuala
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Yang, Y., Mao, Z. and Tang, J., 2018. Understanding guest satisfaction with urban hotel
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Zemke, D.M.V., Chen, Y.S., Raab, C. and Zhong, Y., 2017. Hotel design, guest satisfaction, and
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Online
Top 10 benefits and importance of customer satisfaction. 2021. [Online]. Available through: <
https://www.questionpro.com/blog/importance-and-benefits-of-customer-satisfaction/>