THE IMPORTANCE OF CUSTOMER SATISFACTION AND SUPREME SERVICE PROVISION IN THE HOTEL INDUSTRY: A CASE STUDY OF SURABAYA PLAZA HOTEL
Summary: Surabaya Plaza Hotel (SPH) has been very well received by its existing clients, but guests have a lot to complain about. The overall picture of SPH is very positive. SPH also offers superior quality and service. Providing guests with satisfactory services and experiences is the key to success in the hospitality industry. To achieve the highest level of customer satisfaction, guest opinions and ideas must be incorporated into ongoing TQM processes.
Key words: hospitality, services, customer satisfaction, improvement, competition, total quality management, six sigma.
Customer service is the ability of an organization to satisfy the wants and needs of its customers (Ward, 2007, p. 1). A buyer is defined as any person who receives something of value produced by an individual or organization. Customer expectations are constantly rising. Brand loyalty is a thing of the past. Consumers are looking for products and manufacturers that can best meet their needs. The product does not necessarily have to receive the highest rating from buyers in all respects, but only from those who consider it important (Kotelnikov, 2007, p. 1).
Customer satisfaction is an important component of profitability. Exceptional customer service leads to greater customer loyalty, which in turn leads to increased profitability. Customer retention is the main driver of sustainable profit growth. To be successful, you must make excellent customer service second nature to your organization. Full integration of all components of the service value chain (employee satisfaction, value creation, customer satisfaction, customer loyalty, profit and growth) links all critical dynamics of excellent customer service. Unfortunately, mature companies often forget or abandon what made them successful in the first place: a customer-centric business model. They lose focus on the customer and start focusing on the bottom line and quarterly results. They look for ways to cut costs or increase revenue, often at the expense of the client. They forgot that customer satisfaction and constant innovation is the only way to sustainable growth. This creates opportunities for new, smaller companies to mimic and improve on what allowed their larger competitors to win in the first place and steal their customers (page 1).
In general, the hospitality industry can be described as very saturated as travelers become more aware and knowledgeable. Therefore, it is a very competitive environment. Implementing a service quality or customer satisfaction management program to provide hotel guests with highly satisfying services and experiences has become an industry standard over the past three decades. High quality service and customer satisfaction have been proven to lead to higher customer returns.
Recognizing this prerequisite for success, the main objectives of this study are 1). Gain an understanding of customer satisfaction concepts in the hospitality industry; and 2). Studying the needs and desires of the guests of the Surabaya Plaza hotel to identify opportunities available to the hotel management to improve the quality of service for existing guests and increase the competitiveness in attracting new customers.
Surabaya Plaza Hotel (SPH) is a leader in the hospitality industry in the tourism sector, offering accommodation, food and beverages. In addition, SPH Hotel is also the top 4-star hotel in Surabaya in terms of occupancy or income per room (Rev.PAR) as shown in Table 1-3.
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Key words: hospitality, services, customer satisfaction, improvement, competition, total quality management, six sigma.
Customer service is the ability of an organization to satisfy the wants and needs of its customers (Ward, 2007, p. 1). A buyer is defined as any person who receives something of value produced by an individual or organization. Customer expectations are constantly rising. Brand loyalty is a thing of the past. Consumers are looking for products and manufacturers that can best meet their needs. The product does not necessarily have to receive the highest rating from buyers in all respects, but only from those who consider it important (Kotelnikov, 2007, p. 1).
Customer satisfaction is an important component of profitability. Exceptional customer service leads to greater customer loyalty, which in turn leads to increased profitability. Customer retention is the main driver of sustainable profit growth. To be successful, you must make excellent customer service second nature to your organization. Full integration of all components of the service value chain (employee satisfaction, value creation, customer satisfaction, customer loyalty, profit and growth) links all critical dynamics of excellent customer service. Unfortunately, mature companies often forget or abandon what made them successful in the first place: a customer-centric business model. They lose focus on the customer and start focusing on the bottom line and quarterly results. They look for ways to cut costs or increase revenue, often at the expense of the client. They forgot that customer satisfaction and constant innovation is the only way to sustainable growth. This creates opportunities for new, smaller companies to mimic and improve on what allowed their larger competitors to win in the first place and steal their customers (page 1).
In general, the hospitality industry can be described as very saturated as travelers become more aware and knowledgeable. Therefore, it is a very competitive environment. Implementing a service quality or customer satisfaction management program to provide hotel guests with highly satisfying services and experiences has become an industry standard over the past three decades. High quality service and customer satisfaction have been proven to lead to higher customer returns.
Recognizing this prerequisite for success, the main objectives of this study are 1). Gain an understanding of customer satisfaction concepts in the hospitality industry; and 2). Studying the needs and desires of the guests of the Surabaya Plaza hotel to identify opportunities available to the hotel management to improve the quality of service for existing guests and increase the competitiveness in attracting new customers.
Surabaya Plaza Hotel (SPH) is a leader in the hospitality industry in the tourism sector, offering accommodation, food and beverages. In addition, SPH Hotel is also the top 4-star hotel in Surabaya in terms of occupancy or income per room (Rev.PAR) as shown in Table 1-3.
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