ANALYSIS OF CUSTOMER'S SATISFACTION TOWARDS SERVICE QUALITY OF HOTEL INDUSTRY IN NEPAL

Meen Bahadur Karki1*, Meetakshi Belwal Bhatt2, Indrajit Ghosal3

1,2School of Management & Commerce, PoornimaUniversity, Jaipur, India

3School of Computer Science and Engineering, Poornima University, Jaipur

*Corresponding Author’s Email: 2020phdevenmeen9162@poornima.edu.in

ABSTRACT

The reason to conduct this study is to recognize the influence of service dimension on consumer loyalties on the lodgings and hotels business of Nepal by applying SERVQUAL model. Populace is considered as the deferent lodgings in Kathmandu, Nepal. The discovery of the exploration shows that service quality variables like real service tangibility; reliability, responsiveness; assurance and empathy impact real consumer loyalty. The outcome clarified that the substantial variable is given more noteworthy significance than other helping characteristics aspect by the clients. This examination study reveals that there exists critical positive connection among real and expected others quality elements and consumer loyalty. The review thought about that inn clients experience is the vital element in the cordiality business.

Keywords: Hotel Service; SERVQUAL Model; Consumer Satisfaction

INTRODUCTION

In Nepal, inns are belittled by the umbrella association of hotels named as Hotel Association of Nepal (HAN) and it is the main driving agent association in the lodging business, addressing more than 300 enrolled inns, resorts, and guesthouses of Nepal. HAN is the authority voice of Nepal's hoteliers, and it protects their legal advantages and advances solidarity and co-activity among its part inns.

For over 53 years, HAN has helped inn individuals fill in their business by keeping a prominent with legislatures, creating key and imaginative advertising programs, making organizations, raising the part voices, and furnishing its accomplice individuals with current industry data and assets they require. In 1951, Nepal was authoritatively opened for Tourism and "Nepal Hotel" was the primary lodging in Nepal, which was set up in Patan, Lalitpur, the nearby southern city to Kathmandu.

Hotel Soaltee was the initial five-star inn of Nepal. Established in 1965 and initiated by the then His Majesty the ruler Mahendra Bir Bikram Shah Dev in 1966 at Tahachal, Kathmandu Spread more than 12 sections of land (5 hectares) of land and is the spearheading lavish lodging that carried the name and acclaim to the inn business in Nepal making a splendid history.

Different inns then, at that point, appeared consistently step by step. A portion of the great positioning lodgings in Nepal are Radisson Hotel, Yak and Yeti, Babar Mahal Vilas, Aloft Kathmandu Thamel, Dwarika's Resort Dhulikhel, Hyatt Regency Kathmandu, Kathmandu Marriott Hotel, The Everest Hotel, Gokarna Forest Resort, Sangri-La Hotel Kathmandu, The Dwarika's Hotel and Hyatt Palace Kathmandu. There are around 1289 Hotel units in Nepal. The quantity of five-star lodgings in Nepal currently have arrived at 12.

The travel industry is Nepal's fourth biggest industry by work as shown by the scientific review. The travel industry area utilizes 371,140 individuals, addressing 11.5 percent of people occupied with all businesses in Nepal. Indeed, even the star lodgings in Nepal are not completely mindful of the consumer loyalty and administration factors that are required by the travelers showed up from everywhere the world.

Nepal has a gigantic probability of the travel industry due to its topographical dissemination gazing from the Terai to High Picked Snow-covered mountaineering range including the Mount Everest, the most elevated pinnacle (8488 meters) on the planet, biodiversity, social and language limits, and others varying elements. The normal duration of stay of unfamiliar vacationers in Nepal in 2018 dropped to 12.4 days from 12.6 days in 2017. Master say that we can't make this industry feasible and practical except if the normal traveler's residency in Nepal is expanded to 15 days. For this reason, to accomplish, the consumer loyalties and the help factors are to be given a due significance. Along these lines, this is the motivation to concentrate on that how the Nepalese inn can be profited from the travel industry area by expanding the assistance elements to live up to vacationer's desires, needs, needs, taste, decisions, and inclinations.

As per the World Travel and Tourism Council's (WTTC) yearly examination report, Nepal's travel industry area created income of NPR 240.7 billion and upheld over 1.05 million positions straightforwardly and by implication in 2018.

The association mentions that the nation's movement and the travel industry added to 7.9 percent of its GDP last year up from 3.6 percent. The complete commitment of country’s movement and the travel industry area to its GDP was NPR 195 billion.

These insights put focus on the measure of monetary movement produced by enterprises like carriers, travel services, other transportation administrations, inns, relaxation businesses and cafés. As per the Travel and Tourism Economic Impact 2019 report delivered in April 2019, Nepal's travel industry is relied upon to make more than 1.35 million positions straightforwardly and in a roundabout way by 2029.

By and large, Nepal’s travel and tourism industry area developed at 3.9 percent; contributing to the record of USD 8.8 trillion and 319 million positions to the world economy in 2018. This development rate is imperative as it is higher than the world total national output development rate, for the eight years in the column.

According to the report, domestic sightseers added to 56 percent of the absolute income of NPR 240.7 billion was created by the travel industry in 2018. Nepal Tourism Board CEO Deepak Raj Joshi said that domestic tourists began visiting Nepal after the 2015 seismic tremor and there is huge traveler development.

The general purpose of the study is to analyze the influence of service dimensions of Hotel Industry in Nepal on customer's satisfaction. Further the researcher wants to identify the most impacting factor on consumer satisfaction in the hotel sector business in Nepal.

LITERATURE REVIEW

A developing assemblage of writing accessible as of late proposes that giving consumer loyalty prompts a company's prosperity (Gronroos, 1990; Eriksson & Vaghult, 2000). In an expansive setting, consumer loyalty is dictated by creating models of customer fulfillment. Premium service quality is considered as a key to acquire an upper hand in administrations industry. The fulfillment level of clients is reliant upon their view of administration quality and the confidence in specialist co-op (Ismail et al. 2006; Aydin & Özer, 2005; Parasuraman, Zeithaml & Berry, 1985).

Lockwood (2005), in his depiction of the administration of inn action, guarantees that service can't be shown and portrayed ahead of time. Plus, the evaluation of clients in this regard is emotional, thusly he proposes zeroing in on tangible proof of each activity, i.e., the inside of a room, correspondence with a visitor, and so on. Nonetheless, Vengriene (2006) takes note of that the exploration shows that clients like the polished methodology and expertise of lodgings workers. This conversation shows two main gatherings of components, the nature of which ought to be overseen by the proprietor of an inn. Be that as it may, some inn specialists propose considering what is more valued by a client (Kinderis, Žalys & Žalienė, 2011).

The SERVQUAL approach of Parasuraman, Zeithaml & Berry (1985) proposed a five dimensional develop of perceived assistance quality- tangibility, reliability, responsiveness, assurance, and empathy. SERVQUAL was created to quantify the assistance quality build as characterized by the help quality model and the drawn-out assistance mode. SERVQUAL model is utilized to gauge buyers' and specialist organizations' assumptions and discernments. This methodology empowers the exemptions and discernments holes to be surveyed, while giving a proportion of the assistance quality gap and the help conveyance gap (Babakus & Mangold, 1989). Yilmaz (2009) examined the service quality and clients’ assumptions for Turkish 25-star inns. The examination results have shown that there is no huge gap between the expected and received quality. The best standards of clients at Turkish inns were identified with the rules of reliability, assurance and responsiveness, marginally lower assumptions were identified with material qualities and compassion. The most reduced gap among expected and experienced not set in stone for the model of empathy, and the most not really settled for the quality basis of material qualities.

Ghosal & Prasad (2020a) carried out a study on perception of cancer patients towards the service quality of the healthcare industry and found out that factors like amenability, trustworthiness, competency of staff, treatment facility and timeliness have significant influence on the perception of the patients towards service delivered by the hospitals. Again, a study by Ghosal & Prasad (2020b) described a study that is an expedient approach created pragmatically to measure the patients' perceptions of the service quality offered by PHC's. The service availability has been assessed. Kotler (2001) characterized consumer loyalty as the degree to which an item's perceived exhibition coordinates with a purchaser's assumptions. Inability to meet these assumptions prompts disappointment. These definitions consider fulfillment as a general post buy assessment by the client. Woodruff (1997) characterized consumer loyalty as the evaluative response to how specific item performed when contrasted with how the individual in question expected that it would perform.

Conceptual Framework

For this current study, five service quality dimensions as independent variables (Service Quality Factors) from the SERVQUAL model have been selected. The five dimensions for the study are Reliability, Responsiveness, Assurance, Empathy and Tangibility. The theoretical framework was made with the help from marketing study guide website.

Definition of Variables:

• Reliability might be characterized as the company's capacity to make provision of the guaranteed services precisely and constantly for the inn customers. It incorporates given as guaranteed, tackling the issue, offering opportune types of assistance and so forth. Reliability also shows the capacity to offer types of assistance, with perfect timing, and soundly (Parasuraman, Zeithaml & Berry, 1985).

• Responsiveness is, in another hand, the company's eagerness to help client and offer brief assistance at every moment as and when spot needed by the customers. This model estimates the capacity to tackle the issue quick, manage client's grumbling viably and the readiness to assist clients with willing meet the client's prerequisites (Parasuraman, Zeithaml & Berry, 1985).

• Assurance suggests information and kindness of workers and their capacity to motivate, trust and trust in the clients. This component makes validity and trust for clients, which is considered through proficient services, magnificent, specialized information, mentality of civility, and great relational abilities so clients can have confidence in company’s services provided.

• Empathy is mindful and customized consideration paid to clients. Empathy is the mindful, thought, and the best groundwork for clients, so they can feel as visitors of the firm and are consistently wanted on any occasions, anyplace.

• Tangible alludes to actual offices, gear, and presence of faculty. Tangibles are the pictures of the offices, hardware, machines, mentality of staffs, materials, manuals, and data frameworks of the organizations. These are the physical evidence show to the visitors as a standard and decors.

These all dimensions if fulfilled as expected leads to customer’s satisfaction.

Figure 1: Theoretical Framework

Hypothesis

H01: Reliability has no significant influence on customer’ satisfaction. H02: Responsiveness has nosignificant influence on customer’s satisfaction. H03: Assurance has no significant influence on customer’s satisfaction.

H04: Empathy has no significant influence on customer’s satisfaction. H05: Tangibles has no significant influence on customer’s satisfaction.

RESEARCH METHODOLOGY

Research Design

The research configuration embraced in this review is descriptive research plan. The review depended on exploratory examination plan too as the review attempts to look at the connection between service nature of inn ventures and consumer satisfaction.

Population and Sample

The population for the study were the people (hotel guests) visiting the hotels of Kathmandu. The sample for the study was collected from 124 respondents visiting different hotels which were selected through convenient sampling method. The sample size is relatively small because of short span of time available to the researcher.

Sources of Data

This study was predominantly confined on primary data collection using the structured questionnaires through online survey as well as secondary data for literature review, hypothesis, and questionnaires. The variables have been measured from analyzing the questionnaire of SERVQUAL Model. The questionnaire was distributed through Google Docs.

Data Analysis Tools

SERVQUAL model is used. Regression analysis model has been used to compute the association between independent variables/ dimensions (service quality factors) and dependent variable (customers' satisfaction) using Statistical Package for Social Scientists (SPSS) software.

RESULTS & DISCUSSION

Alpha Test

Alpha Testing is a client testing on the application to comprehend the client conduct and experience on the application or utilization of services. It is finished by quality confirmation group or examination researchers. The Alpha Test Value above 0.6 is considered as great measure (Singh et al. 2021). This worth higher than 0.95 isn’t considered as good describer.

Table 1: Cronbach Alpha Test

The study used Cronbach’s Alpha to test the reliability. The result of Cronbach’s Alpha test is valid and reliable and is being used frequently in scientific research.

Respondent's Profile

Table 2 shows the respondent's profile. The table shows that out of 124 respondents, the male respondents were 55 comprising 44.35 percent and the female respondents were 69 comprising 55.65 percent. 90 of the respondents were from the age class of 16-25 comprising

72.58 percent, 28 respondents were from the age gathering of 26-35 comprising of 22.58 percent, 4 respondents were from age gathering of 36-45 comprising of 3.23 percent and 2 respondents were from over 45 age bunch comprising of 1.61 percent. The quantity of respondents from business were 8 comprising 6.45 percent, students were 92 comprising of 74.19 percent, servicer were 18 comprising of 14.52 percent, and others were 6 comprising of

4.84 percent.

Table 2: Respondent's Profile

Descriptive Analysis

Table 3 shows the descriptive insights of reliability aspects of service quality. Mean of all statements are above 3. The assertion “The hotel insists on error-free records” has the most elevated mean 3.70, the divergence being 0.937, while the assertion, “The services is not delayed” has the least mean 3.06 with the deviation being 1.117. The average mean of all statements of reliability is 3.356 with the divergence being 1.003. Thus, in all cases the average score is more than three which means reliability is seen good and acceptable.

Table 3: Descriptive Analysis of Reliability

Table 4 shows the descriptive insights of responsiveness aspects of service quality. The mean of all statements is 3. The assertion "Information are made effectively accessible to the customers" has the most elevated mean 3.46 with 0.923 divergence, while the assertion, "Employees are never too occupied to react customer's requests" has the least mean 3.12 with 1.166 divergence. The average mean of all assertion of responsiveness is 3.30 with 1.053 divergence. Thus, the average score is more than three which means responsiveness is seen good and acceptable.

Table 4: Descriptive analysis of Responsiveness

Table 5 states the descriptive insights of assurance aspects of service quality. The mean of all assertions is above 3. The assertion "Customers have a sense of security while transacting with the hotel" has the most elevated mean 3.70 with 0.954 divergence, while the statement, "Conduct of service provider instill confidence in customers" & "Employees are polite to the customers" has the least mean 3.48 with 1.008 and 0.992 of divergence respectively. The average mean of all statements of assurance is 3.56 with standard deviation of 0.982. Thus, the average score is more than three which means assurance is seen good and acceptable.

Table 5: Descriptive Statistics of Assurance

Table 6 shows the descriptive insights of empathy aspects of service quality. The mean of all assertions is over 3. The assertion "Employees of hotels comprehend the requirement of their consumers" has the most elevated mean 3.31 with 1.015 of divergence, while the assertion, "The employees of hotel give individualized focus to the consumers" has the least mean 3.15 with 1.041 of divergence. The normal average of all assertions of empathy is 3.26 with standard deviation of 1.010. Hence the normal score is standard which implies empathy shown is seen acceptable and good.

Table 6: Descriptive Statistics of Empathy

Table 7 describes the descriptive insights of tangible aspects of service quality. The mean of all assertions is above 3. The assertion "Employees are properly dressed and seem perfect" has the most elevated mean 3.49 with 1.000 of divergence, while the statement, "Facilities of the hotels are engaging" has the least mean 3.21 with 1.038 of divergence. The average of tangible is 3.37 with divergence of 0.994. Thus, the average score is more than 3 which means tangible is seen good and acceptable.

Table 7: Descriptive Statistics of Tangibles

Independent T-Test and Correlation

From table 8, we can see that the significance level is greater than 0.05. Hence, there is no significant mean difference between gender and customers satisfaction. Regarding satisfaction, it can be understood that male and female do not have different ways for getting their satisfaction level.

Table 8: Independent Sample T-Test between Gender and Customer's Satisfaction

Table 9 shows the aftereffect of the Pearson's correlation coefficient between consumer satisfaction (Dependent Variable) and Service Qualities (Independent Variables). This expresses that there is huge connection between independent variable and dependent variable.

Table 9: Correlation Analysis of Customers Satisfaction and Independent Variables

The most elevated relationship of consumer satisfaction can be seen as 0.559 with Tangible variable. It implies that expansion in tangible quality of service will improve the consumer satisfaction in contrast with different other factors. Additionally, rather, different factors are also equally strong and no one factor can be overlooked.

In this way, one might say that tangible variable has the most grounded positive relationship with consumer satisfaction (r= 0.559), trailed by reliability of inn services (r=0.557), assurance (r=0.526), responsiveness (r=0.504) and empathy (r=0.470).

Regression Analysis

Table 10 shows the regression model summary. The R square for this model is 0.400 which means 40 percent of the difference in dependent variable can be described by independent variables.

Table 10: Multiple Regression Analysis

In Table 11, the fitness of the model is stated significant at F- value of 15.729. The significant F – Statistics value provides the best fit of the model.

Table 11: ANOVA Table of Regression

The aftereffect of the regression examination provides that tangible has P value less than alpha at 5% significance level. Thus, it can be presumed that the tangible variable has a positive and significant influence on the customer’s satisfaction. However, reliability, responsiveness, assurance, and empathy have P value alpha at more than 5% significance level, so it is considered insignificant, which means that there is no significant influence of these variables on the customer’s satisfaction. Thus, the hypothesis H01, H02, H03, and H04 are accepted and H05 is rejected as there is significant relationship between the SERVQUAL factors and Tangible on consumer’s satisfaction.

Table 12: Regression Coefficients

DISCUSSION

The above research work shows that clients were happy with various service characteristics served by the hoteliers in Nepal. Tangible variable was found as the major significant component for the consumer satisfaction (Ismail et al. 2006). Likewise, from the independent t-test, it is perceived that there are no distinctions in the way of getting satisfaction so far as male and female customers are concerned (Eriksson & Vaghult, 2000).

The discoveries of this review uncover solid positive and huge connection between the blend of apparent service quality aspect that is among tangible and consumer satisfaction (Ghosal & Prasad, 2020a). This suggests that the component of service quality: tangible prompted higher consumer satisfaction. Tangible aspect with altogether aspects affects consumer satisfaction. Subsequently, the main indicator of consumer loyalty, in this review, is tangible aspect. The other aspect like reliability, responsiveness, assurance and empathy do not much affect consumer satisfaction as compared to tangibles (Parasuraman, Zeithaml & Berry, 1985).

CONCLUSION

The review was done to break down the consumer satisfaction towards the service nature of various inns of Nepal. The study used descriptive research design to depict the research discoveries. A SERVQUAL model was utilized to shape the survey with respect to the service characteristics. The service dimensions included were five primary variables as reliability, responsiveness, assurance, empathy and tangible as independent variables and the Customer Satisfaction was taken as dependent variable.

The finding shows that among the five elements- tangible variable/services altogether affected consumer satisfaction. The outcome additionally shows that the service characteristics delivered by the various lodgings of Nepal are acceptable and palatable and clients were found happy with these services.

Future Scope

Through this study, the impact of service quality of different hotels on customer's satisfaction will be understood by the concerned hoteliers of Nepal and all hotel professionals in general. The hoteliers will also be benefitted in future from the finding that the tangible factor is given greater importance than other service qualities dimension. It would be best if the hotels start to further improve their service in terms of tangible dimension. Hotels should focus on updated equipment and technology along with these services to further upgrade the consumers’ satisfactory level.

Similarly, a larger sample covering more areas can be taken for the future studies by the upcoming scholars to know and find more about whether other factors or dimensions or even the newer ones are more important to hike the customer's satisfaction towards the different hotels’ services of Nepal for future implication therein.

Limitation of the study

Convenient sampling has been used with sample size of 124 respondents. Sample size is small because of the short time frame available for the research. So, generalization cannot be done. The findings but can be taken as reference for standardizing service factors to meet the clients’ needs and expectations.

Conflict of Interests

The authors declare that they have no conflict of interests.

Acknowledgement

The authors are thankful to the institutional authority for completion of the work.

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