How Should Hotels Respond to the Sharing Economy?

Factors of Complaint and Delight Reflected in Customer Online Reviews Master Thesis submitted in fulfillment of the Degree Master of Science in International Tourism Management Submitted to PD Dr. Astrid Dickinger Aleksandra Tanackovic BBA 0711530 Vienna, 21. January 2013   AFFIDAVIT I hereby affirm that this MasterÕs Thesis represents my own written work and that I have used no sources and aids other than those indicated. All passages quoted from publications or paraphrased from these sources are properly cited and attributed. The thesis was not submitted in the same or in a substantially similar version, not even partially, to another examination board and was not published elsewhere. Date Signature  ABSTRACT The knowledge and understanding of quality standards of guests helps hotel managers improve the quality of hotel services and increase guestsÕ satisfaction with the hotel stay. Different aspects of a hotel offer participate in the guestsÕ evaluation of the hotel experience. The factors that influence guestsÕ satisfaction level are also named Òhotel attributesÓ. There exist a large number of factors that influence guestsÕ impressions, but certainly not all of them have the same level of importance for guests. In order to be aware of the strengths and weaknesses of their businesses, hotel management has to identify which improvements in the hotel operations can bring additional value to their guests. One of the most reliable information sources for gaining customer knowledge is undoubtedly the feedback provided directly from customers. If analyzed properly, it can be exploited for the purpose of improving the hotel operations and raising profits. The environment in which hospitality businesses operate nowadays has become radically connected to the use of the Internet. An increase in the usage of Social Media triggered extreme changes in the information channels that hotel guests use in order to make booking decisions. Hence, the hotel management should be aware that travel information websites present a valuable source of information about customer preferences. They offer service providers a possibility to have an insight into the reasons for satisfaction or disappointment of their guests. The aim of this thesis is to examine the relationship between different hotel attributes and the guestsÕ overall satisfaction with the hotel stay. It tries to uncover the most influential hotel attributes for the formation of guestsÕ satisfaction. For this purpose, a content analysis of hotel reviews available from TripAdvisor was used. The results of this research indicate that the attribute ÒserviceÓ has the greatest influence on customer satisfaction with the hotel stay. In addition, it is suggested that the way a service is provided has more influence on the satisfaction than some physical aspects of the hotel stay. Moreover, the value received for the price paid is perceived as a factor that influences the satisfaction of guests, regardless of the star category of a hotel.   ACKNOWLEDGEMENTS I would like to especially thank my supervisor Dr. Astrid Dickinger for her support and recommendations. I am grateful to my family for the love, support and encouragement they provided me throughout my whole education.   TABLE OF CONTENTS Affidavit .......................................................................................................................................... I Abstract ........................................................................................................................................ III Acknowledgements .................................................................................................................... V List of Figures............................................................................................................................ XII 1 Introduction ........................................................................................................................ 1 1.1 Context and Previous Research ..................................................................................... 1 1.2 Relevance of Customer Satisfaction for Hotel Businesses ........................................ 3 1.3 Research Aims and Objectives ....................................................................................... 5 2 Literature review ................................................................................................................ 6 2.1 Hotel Businesses as Service Businesses ..................................................................... 6 2.2 Useful Models for explaining the Customer Satisfaction Concept............................. 7 2.2.1 Gršnroos Model ............................................................................................................................ 8 2.2.2 SERVQUAL: A Multiple Item Scale for Measuring Customer Perceptions of Service Quality ............................................................................................................................................ 9 2.2.3 SERVPERF: Performance -only Measurement of Service Quality .................................... 12 2.2.4 Kano Model of Customer Satisfaction ..................................................................................... 13 2.3 Customer Satisfaction ....................................................................................................15 2.3.1 The Interrelationship between Customer Satisfaction and Service Quality ...................... 15 2.3.2 The Interrelationship between Customer Satisfaction, Loyalty and Profits ....................... 16 2.3.3 Drivers of Customer Retention and Loyalty ........................................................................... 17 2.3.4 The Importance of Discovering the Triggers of Customer Satisfaction ............................. 19 2.4 Customer Dissatisfaction and Complaint Handling ....................................................20 2.4.1 Reasons for Service Failures in Hotels and Disadvantages for Hotel Businesses .......... 21 2.4.2 Service Recovery ....................................................................................................................... 22 2.4.3 The Role of the Customer Feedback for Achieving High Service Quality Levels ............ 24 2.4.4 Learning from Customer Complaints ...................................................................................... 26 3 Online Tourism and Hospitality Platforms ...................................................................27 3.1 Shift in Travel Information Sources: From Travel Agencies to Online Reviews .................27 3.2 Social Media and Travel Information Websites as the Main Influencers of the Traveler Booking Behavior ............................................................................................28