SME Accommodation Report: Customer Satisfaction in UK Travel Sector

This report provides an executive summary on the UK travel and tourism sector, focusing on the relationship between tour packages and customer satisfaction for Small and Medium Enterprises (SMEs). It explores the challenges faced by SMEs in the travel industry and highlights the need for i...Read More

SME
ACCOMMODATION

EXECUTIVE SUMMARY
Travel and tourism sector of UK offers huge success and growth opportunities for
companies . Present report describes about link between tour packages and customer satisfaction.
SME operating in travel industry faced diverse range of issues and it becomes critical for them
that innovative services should be offered to consumers. The report mentions literature review in
which different view points presented by various authors have been mentioned. In addition to
that data analysis have been covered by making use of thematic method. Moreover conclusion of
overall project has been presented and outcomes of the study have been briefly described.
Furthermore recommendations have been explained through which tour packages offered by the
company can be improved. The project present different aspects of travel and tourism sector in
context of SME's that are operating in that industry.
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
CRITICAL LITERATURE REVIEW ............................................................................................4
RESEARCH METHODOLOGY ....................................................................................................6
DISCUSSION OF RESEARCH ETHICS ......................................................................................7
PRESENTATION AND ANALYSIS OF FINDINGS ..................................................................8
DATA ANALYSIS ...................................................................................................................10
STUDY CONCLUSION...............................................................................................................12
RECOMMENDATION ................................................................................................................13
REFLECTIVE REPORT ..............................................................................................................14
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INTRODUCTION
Travel and tourism industry of UK offers huge success and growth opportunities, large
number of companies are offering services in this industry so that needs and requirement of
clients can be fulfilled (Torres and Kline, 2013). It is imperative that strategic approaches should
be used so that profitability and revenues earned by the firm can be enhanced. Digital age creates
challenge for assessing needs and requirement of buyers and due to that difficulties are also
faced in designing services and packages of the company.
Ultimate aim for any tourism organization is to earn profit and it can be fulfilled by
understanding the preferences and requirement of the consumers can be met. There are diverse
reasons due to which profitability and performance of the company gets affected and major
reason is lack of data and information. Globalization has paved the way for making
improvements in performances of the business and it has supported for attracting more number
of consumers for selling products and services that are offered by business. Along with this
technically advanced devices such as Smartphones, laptops and mobiles have provided a
effective platform for business organizations to make the consumers aware about the different
types of services that are offered by the company. Aim and objective for the present research is
as described :-
Aim :- The main aim of the research To understand the effectiveness of tour packages in
increasing customer satisfaction :- A study of Holiday extra.
Objectives :-
 To Understand the concept of tour packages and customer satisfaction.
 To determine the link between consumer satisfaction and tour packages.
 To evaluate the ways that could be used for enhancing satisfaction level of
consumers .
 To recommend the ways through which services offered in the tour packages can
be improved.
CRITICAL LITERATURE REVIEW
According to Wang, (2013) effectiveness of tour packages supports for enhancing the
satisfaction level of consumers. More number of travel packagers can be sold by gaining loyalty
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of clients towards the services and packages that are offered by the company. Direct effect on the
performance and revenues earned by the company is observed and it aids for gaining the
satisfaction level of buyers. Law, Buhalis and Cobanoglu, (2014) has defined that travel and
tourism industry of UK is facing huge competition and due to that it has become vital that
consumers should be offered attractive packages so that more number of packages can be sold.
In addition to that strong competition in travel industry makes it essential for the existing
firms to offer superior quality so that loyalty of buyers can be gained. Along with this it has
become essential that attractive portfolio of tourism services and products should be developed
so that satisfaction level of buyers should be gained. Global competitive environment requires
that dedicated efforts should be made so that tour packages can be designed and developed for
meeting the needs and requirement of buyers.
Along with this travel organizations have opportunity for developing the travel packages
so that requirement of buyers can be met. Tour packages that are offered by the companies
includes financial charges, travel destinations, transportation services, accommodation and food
services. All these facilities are included under the tour packages that are being offered by the
firm. Similarly types of packages that differ from each other includes holiday packages, family
packages, summer packages, festival packages and some other different packages. Along with
this there are some discounts are also offered in the tour packages so their attention should be
gained in selling the packages and services that are being offered by the company. Effective
services that are offered through tour packages supports for gaining satisfaction level and loyalty
of consumers.
Other than this Altinay and et.al., (2015) has mentioned that it is critical that measures
should be taken by the business organization for making positive improvements in different
services that are being offered by them. Facilities and services that are offered in the tour
packages supports for gaining loyalty of buyers. With this satisfaction level of consumers can
also be gained so that improvements can be made in the different type of services that are being
offered by the firm. Along with this marketing dine in a structured, organized and effective way
helps for making the clients aware about the diverse range of services that are offered by the
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travel firm. It also helps for gaining the content of buyers so that they should give more
preferences for repurchasing the travel packages that are offered by the firm.
It is also critical that measures should be taken so that positive improvements can be
made in the travel packages that are offered by the firm. It has been mentioned by Brotherton.
and et.al., (2012) that if consumers are satisfied by the features of travel packages than it aids for
gaining loyalty of consumers. It has been defined by In recent times tour operation industry has
become a major pillar for economic growth and development. This sector provides the needed
services to many customers in various locations. Most of the tour operation companies have been
oriented towards customer satisfaction as well as loyalty towards them.
Mok and et.al., (2013) has mentioned that Most of the small medium enterprises involved
in providing tour packages are directed towards understanding how customer perceives the
quality of the services provided in a tour package. Visitors who travel abroad are more likely to
take part in tour packages put together if those services provided by tour operators satisfies them.
Thus, high quality service helps to generate satisfaction of customers, loyalty, and it attracts
more and more customer to enjoy tour packages which in turn improves their productivity as
well as performance.
Customer satisfaction shows the degree to which a customer believes that using services of
tourism such as enjoying tour packages etc. revokes positive feelings. When the customer
perceives positive feelings then only customer satisfaction can be achieved.
Customer satisfaction is an integral part for small medium enterprises. As SME do not have
enough funds to invest in but still they provide quality services to their customers. For them
satisfied customers are assets with high customer loyalty, low cost, low risk and higher returns.
Thus enhancing firm's overall reputation in the tourism industry.
Bharwani and Jauhari, (2013) Has defined that Various tourism business no longer
survive in tour package industry due to lack of customer demand for their packages or they were
not being able to charge enough to remain profitable business in the industry. Company should
always modify their tour packages to attract more and more new customers.
Tour packages should be created in such a way so that customer can be highly satisfied right
from the airline services, hotel, food, scenic spots etc.
6

Tourism business should understand their ideal customers who are more profitable for the
industry. Tour packages should be made taking care of their interests, what are their needs, and
what attracts them more (Kang, Lee and Yoo, 2016).
Tour packages should not involve very high cost for the customers so as to solicit new
customers. They have to take care of the competitors as well. They should charge low prices as
compared to the competitors.
Tour packages should be made focusing on the consumer direct booking. This reduces the role of
third party distributor through which customer used to book their packages.
RESEARCH METHODOLOGY
Research methodology is defined as techniques and tools that are used for presenting the
information that has been collected in the research study. Various areas that are being covered
under the research study are as mentioned :-
Research approach :- There are major two types of approaches that are being used for carrying
out the study and it includes inductive approach and deductive approach (Dinnie, 2015). In the
present study inductive approach has been used and it has hasten for assessing the link between
tour packages and customer satisfaction. Further this approach has assisted for carrying out the
general information from the theory.
Research philosophy :- Research philosophy is explained as assumption over which overall
research is being conducted (Mackey and Gass, 2015). Different types of philosophies that are
used for carrying out the research are interpretivism, pragamatic, positivism and realism. In this
study interpretivism philosophy will be used and information and data that will be collected will
be interpreted. Analysis of information will support for assessing the outcomes of the research
study in successful manner. Along with this use of researches that have been conducted by
different authors have also been taken so that concepts and topics of the research study can be
understood in successful manner.
Data collection :- It is critical that data and information that are required for performing the
study should be collected from reliable and authentic sources (Reynolds, Creemers and Teddlie,
2014). It will aid for conducting the overall research study in successful and effective manner.
Two type of data and information has been collected for performing the study and it comprise of
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primary and secondary data. Primary data have been collected by preparing questionnaire and it
has helped the researcher for gathering required data and information that is required for carrying
out the study. With this secondary information has been collected by making use of sources such
as books, journals, websites and other online sources. Details that are required for performing the
study have been collected from primary and secondary data sources.
Sampling :- In the present research study probabilistic sampling has been used and under this
method simple random sampling has been used for carrying out the study in effective manner. 50
consumers of Holiday Extra have been selected so that required information can be collected
properly. Customers who have used the services of Holiday Extras have been selected and
sample size that has been chosen for the study is sufficient for carrying out the overall study in
effective manner.
Data analysis :- It is vary important part of the research study and it aid for gaining required
outcomes of the study in successful manner. Thematic technique has been used for performing
the research in appropriate manner. In this technique use of thematic are taken so that study can
be performed with out facing much difficulties and challenges. Themes are prepared and on the
basis of that analysis and evaluation of information is done. Other than this, making use of this
conceptualization has also supported for assessing the data and information that has been
collected by the researcher.
DISCUSSION OF RESEARCH ETHICS
It is vital that ethical guidelines should be followed while carrying out the research study.
In the present study that has been performed for understanding the effectiveness of tour packages
in increasing customer satisfaction :- A study of Holiday extra. The study has been done with
following all the ethical guidelines and it has helped for carrying out the research in appropriate
manner. It is important that ethics should be followed in the research study. Along with this,
researcher has focused on involving voluntary participation of respondents in the research study.
Likewise forceful involvement of candidates have not been taken for carrying out the study and
these are major ethical consideration that have been followed while carrying out the research in
successful manner.
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Prospective research participants have been properly informed so that required objective
of the study can be achieved with out facing much difficulties. With this participants have been
fully informed about the challenges and risk that are being associated with the study.
Confidentiality of the information and data that has been provided by participants have been
maintained so that required study can be performed efficiently. Other than this ethical issues that
are being faced by the respondents have been considered and resolved properly. Good research
practices have been used and it has helped for accomplishing the required outcomes of the study.
Ethical guidelines have been applied at all the stages of research and it comprise of planning,
conducting and evaluation stages. Ethical practices have supported for designing the study in
better and effective manner and it has also helped for considering the benefit and cost of the
study in effectual way.
PRESENTATION AND ANALYSIS OF FINDINGS
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Questionnaire
Name :-
Age :-
Gender :-
Occupation :-
(1) Are you satisfied with the services and facilities offered I the tour packages that are being
offered by the firm ?
(a) Yes (b) No (c) Can's say
(2) What features are given more importance by you while purchasing tour packages ?
(a) Price (b) Quality (c) Discount offers (d) Easy availability
(3) Do you give preference for repurchasing the tour packages that are offered by Holiday Extra
?
(a) Yes (b) No (c) Can's say
(4) Do you feel that Holiday extra need to give more discount so that large number of
consumers can be attracted for selling packages ?
(a) Yes (b) No (c) Can's say
(5) Do you feel that more attributes and features needs to be added in the Tour packages that are
offered by Holiday extra?
(a) Yes (b) No (c) Can's say
(6) Will you give preferences for advising your friends and family members to purchase
packages that are offered by Holiday Extra ?
(a) Yes (b) No (c) Can's say
(7) Will you give preference for purchasing tour packages of Holiday extra if additional
discount schemes will be offered ?
(a) Yes (b) No (c) Can's say
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DATA ANALYSIS
Theme 1 : Customers are satisfied with the services and facilities offered in the tour packages
that are being offered by the firm.
Response Frequency
Yes 35
No 9
Can't say 6
Interpretation :- It can be observed from the above table that 35 are satisfied with the services
and facilities offered in the tour packages that are offered by the firm. 9 respondents have stated
their response in no and 6 respondents have stated inn Can't say.
11
Yes No Can't say
0
5
10
15
20
25
30
35
40
35
9
6
Column C

Theme 2 : Price is the features are given more importance by you while purchasing tour
packages.
Response Frequency
(a) Price 25
(b) Quality 8
(c) Discount offers 7
(d) Easy availability 10
12
(a) Price (b) Quality (c) Discount offers (d) Easy availability
0
5
10
15
20
25
30
25
8 7
10
Column C

Interpretation :- It can be stated from the above chart that 25 participants have stated that price
of the tour package is given more preferences. 8 respondents stated its quality of package, 7
respondents declared that its the discount offers and 10 participants have stated that easy
availability is given more importance.
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Theme 3 : Consumers give preference for repurchasing the tour packages that are offered by
Holiday Extra.
Response Frequency
Yes 30
No 10
Can't say 10
Interpretation :- From the above table it can be stated that 30 respondents have stated in yes
and 10 respondents have stated in NO. 10 Participants have stated their response in can't say. It
shows majority of consumers give preference for repurchasing the tour packages offered by
Holiday extra.
14
Yes No Can't say
0
5
10
15
20
25
30
35
30
10 10
Column C

Theme 4 : Consumers are feel that Holiday extra need to give more discount so that large
number of consumers can be attracted for selling packages
Response Frequency
Yes 28
No 12
Can't say 10
Interpretation :- It can be stated from the above table that 28 respondents have stated that they
feel that company needs to give more discount to attract large number of consumers. 12
respondents have stated their response in NO and 10 participants have stated their response in
Can't say.
15
Yes No Can't say
0
5
10
15
20
25
30 28
12
10
Column C

Theme 5 : Consumer feel that more attributes and features needs to be added in the Tour
packages that are offered by Holiday extra.
Response Frequency
Yes 32
No 10
Can't say 8
Interpretation :- It can be observed from the above table that 32 participants have stated that
more attributes and features needs to be added in the tour packages that are offered by Holiday
Extra.
16
Yes No Can't say
0
5
10
15
20
25
30
35
32
10
8
Column C

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Theme 6 : Consumers give preferences for advising your friends and family members to
purchase packages that are offered by Holiday Extra.
Response Frequency
Yes 38
No 4
Can't say 8
Interpretation :- It can be observed from the above table that 38 participants have stated that
they give preference for advising their friends and family members to purchase packages that are
offered by Holiday extras. 4 respondents have stated in No and 8 have stated in Can't say.
18
Yes No Can't say
0
5
10
15
20
25
30
35
40 38
4
8
Column C

Theme 7 : Consumers gives give preference for purchasing tour packages of Holiday extra if
additional discount schemes will be offered.
Response Frequency
Yes 30
No 9
Can't say 11
Interpretation :- It can be observed from the above table that 30 participants have stated that
they give preference for purchasing tour packages of holiday extra if additional discount schemes
will be offered. 9 respondents have stated in NO and 11 have stated in Can't say.
19
Yes No Can't say
0
5
10
15
20
25
30
35
30
9
11
Column C

STUDY CONCLUSION
Summing up the present research project it can be concluded that tour packages that are
offered by travel companies influence the satisfaction level of buyers. Other than this it has been
found from the research study that tour packages that are offered by the company supports for
gaining satisfaction level of buyers. From the introduction section it has been observed that
travel and tourism industry of UK is facing intense competition and it has become vital that
strategic approaches should be used by business so that competitive advantage can be gained for
business.
Other than this, it has been found that various features of travel packages including
discounts, accommodation services and food services that are offered by the client. Other than
this from literature review section it has been identified that customer satisfaction is integral part
of business and it aid for ensuring long term growth and survival of business. Customer
satisfaction is the degree to which a consumer believes that services and products offered by the
company are meeting their requirement and preferences.
There are diverse range of ways that could be used by businesses for making positive
improvements in their performances. Travel and tourism companies have options for adding
attributes and features that are added in the travel services that are being offered by the company.
Other than this, from the data analysis section it has been found that price, quality, discount
offers and easy availability are some features that gives impact on the purchasing decisions of
buyers. With this, it has also been analyzed that consumers give more preferences for purchasing
tour packages if additional discounts are being given to them.
Consumers also gives preferences for recommending their friends and family members
about the tour packages that are offered by the company if they are satisfied with the services
that are offered by the firm. It has been analyzed from the above report that there is long way to
go for the travel firms so that they can succeed in gaining competitive advantage for their
business.
RECOMMENDATION
WAYS TO IMPROVE TOUR PACKAGES TO INCREASE CUSTOMER SATISFACTION
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1. Various tourism business no longer survive in tour package industry due to lack of
customer demand for their packages or they were not being able to charge enough to
remain profitable business in the industry. Company should always modify their tour
packages to attract more and more new customers (Kwon, Bae and Blum, 2013).
2. Tour packages should be created in such a way so that customer can be highly satisfied
right from the airline services, hotel, food, scenic spots etc. Tourism business should
understand their ideal customers who are more profitable for the industry. Tour packages
should be made taking care of their interests, what are their needs, and what attracts them
more.
3. Tour packages should not involve very high cost for the customers so as to solicit new
customers. They have to take care of the competitors as well. They should charge low
prices as compared to the competitors (Kandampully, Zhang and Bilgihan, 2015).
4. Tour packages should be made focusing on the consumer direct booking. This reduces
the role of third party distributor through which customer used to book their packages.
5. To attract more and more customers in tourism industry, tour packages have to be made
as per the specifications of the customers.
6. Websites should be properly updated time to time so that customers can seek latest
information going through these websites. It should provide access to users in terms of
content, message and functionality (Choi, Kwon and Kim, 2013). It helps in interacting
with different types of customers with different attitudes and perceptions. Customers can
easily find tour packages and can stick around long enough to schedule a booking for
traveling.
7. While struggling in tough competitive environment, tourism businesses should embrace
social media. It is considered a perfect hub for providing attractive tour packages to
customers. Through social media tour packages can be easily forwarded to the interested
customers (Jones, Hillier and Comfort, 2016). It creates a community of various kinds of
people that can read testimonials related to the tour and can provide pictures of their
experience. Customers can easily gives their feedback on thees social sites to the
company on the basis of their experience which helps the company to know that which
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areas needs to be improved. Tourism businesses can be recommended to create a
facebook page so interaction becomes easier with the customers one on one or through a
group.
8. Tour packages should be created according to the category of specific customers. If
customers are of young group then tour packages should be involves lower costs as they
will spend very huge amount and also involves some thrill and adventures because they
are always ready for adventurous tasks (Sigala and et.al., 2012). On the contrary, if
customers are old then tour packages should be made according to the age group and
don't expect them to be thrill seekers. It is suggested to know about the customer's
interests and what motivates them, do they want to be relaxed, amazed or thrilled. So its
very much important to know about the audience.
9. Whenever a product or a service is provided to customers, trust is considered a very
important factor. Customers are more likely to purchase when there exists a trust.
Customer satisfaction can be increased only if tour packages are relevant and do not
indicate any ambiguity.
10. Tourism businesses should provide a quick feedback survey at the end of tour so that they
can know that improvement needs to be done in what areas.
11.It is also recommended to provide attractive discounts and promotional offers so that
customers can easily plan their trip and these discounts attract new customers which
ultimately increase sales.
REFLECTIVE REPORT
Conducting research study for understanding the effectiveness of tour packages in
increasing customer satisfaction . A study of Holiday extra. In the present research study focus
has been given for understanding different ways that could be used for carrying out the research
study in successful manner. I have identified that it is critical that aims and objectives needs to
be developed so that required study can be completed in appropriate way.
With this I have learn that conducting literature review helps for evaluating different
view points that are given by various authors. It helps for evaluating different view point that are
given by authors. Moreover, I have learn that research methodology helps for rendering effective
22

tools and techniques that could be used by business for making improvements in their
performance areas. Other than this I have collected data by making use of questionnaire method.
Use of data and information has also helped for carrying out data analysis without facing much
difficulty. Along with this i have identified different methods that could be used by business
organizations for making improvement in their performances. With this, I have learn that
questionnaire method supports for taking views of customers so that required data and
information can be collected for carrying out the research study. I have successfully completed
the research study and it has helped me in accomplishing the required outcomes of the research
study in successful manner.
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Kwon, M.J., Bae, J.I. and Blum, S.C., 2013. Mobile applications in the hospitality industry.
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Reynolds, D., Creemers, B., and Teddlie, C., 2014. Advances in school effectiveness research
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