case study global analysis

Topics: Hotel, Service system, Dimension Pages: 72 (13602 words) Published: April 26, 2014
Working Paper Series
Measuring and Managing the Quality of Service in Hotels in Cyprus Professor Christine A Hope
Leontios Filotheou
Working Paper No 07/26
July 2007

The working papers are produced by the Bradford University School of Management and are to be circulated for discussion purposes only. Their contents should be considered to be preliminary. The papers are expected to be published in due course, in a revised form and should not be quoted without the author’s permission.

W O R K I N G PA P E R S E R I E S

MEASURING AND MANAGING THE QUALITY
OF SERVICE IN HOTELS IN CYPRUS
Professor Christine A Hope
Bradford University School of Management
Emm Lane
Bradford
West Yorkshire
BD9 4JL
UK
+44(0)1274 234358
c.a.hope@bradford.ac.uk
Leontios Filotheou
36 Parthenonos Street, Apt 203
Strovolos
2021 Nicosia
Cyprus
+357 99 611079
Leontios.philotheou@cytanet.com.cy
Paper presented at the 2007 POMS College of
Service Operations

ABSTRACT

In this paper, the results of a study using an
adapted version of Parasuraman et al’s (1988)
SERVQUAL questionnaire, administered in three,
4* hotels in Cyprus to samples of both guests and
hotel staff, will be presented. The aims of the
survey were to identify shortcomings in the service
provided so that it might be improved; identify
discrepancies in managements’ and guests’
perceptions of the service provided; and, in one of
the hotels, to compare expectations and
perceptions of service of Russian and British
guests. Two hundred questionnaires in each hotel
were distributed by housekeeping staff. Response
rates of 46.8%, 55.5% and 67.5% were achieved.
The hotel that clearly outperformed the other two
hotels was distinguished by the fact that there
were no statistically significant differences
between staff and guest responses to the
SERVQUAL questionnaire. Comparison of Russian
and British guests indicated statistically
significant differences between the two.

3

W O R K I N G PA P E R S E R I E S

1. INTRODUCTION

Tourism is an important source of income for
Cyprus with the hotel and restaurants sector
contributing 7.3% of GDP and accounting for
9.9% of the total gainfully employed population
in 2005 (CYSTAT, 2007). In 2006 2.4 million
tourists visited the island, but with increasing
competition from other destinations, both in the
Mediterranean and further afield, it is important
that Cyprus does not lose market share to
competitors.
Although there has been a fairly extensive debate
as to whether or not meeting customer
expectations is actually quality or satisfaction,
(Oliver 1993, Patterson and Johnson, 1993, Taylor
and Baker 1994, Zeithaml et al 1993) there is
evidence that meeting customer expectations
leads to customer loyalty, (Alexandris et al 2002,
Anderson et al 1994, Boulding et al 1993,
Buchanan and Gillies 1990, Zeithaml et al 1996),
and enhanced business performance (Aaker and
Jacobson 1994, Bolton 1998). It has also been
argued that improving systems to provide a
quality service can decrease costs (Crosby 1972,
Oakland 1989, Neely et al 2005). Goodman et al
(2000, p.47) goes further and states:
“First, quality and service improvements
can be directly and logically linked to
enhanced revenue within one’s company;
and secondly, higher quality allows
companies to obtain higher margins.”
Not meeting customer expectations leads to
problems and as Dale (2003) points out problems
can decrease customer loyalty by 15 to 30
percent; 50 percent of individual consumers and
25 percent of business customers who have
problems never complain to anyone at the
company; solving a problem usually gets for the
company an increase in loyalty of 50 percentage
points; and one potential customer will be lost for
every 50 who hear someone complain about a
product or service. Thus is it important that
managers know whether or not they are meeting
customer expectations.
There is a growing body of...


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