A Project Report

On
“A Study on Service Quality of Hotel Industry in Rourkela ”

Submitted in partial fulfillment of the requirements for the degree

of Master of Business Administration (MBA)

By

JIM MAHADEV
313SM1003

Faculty Advisor
Prof.S.H Uzma
Assistant Professor
School of Management
NIT Rourkela

SCHOOL OF MANAGEMENT
NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA
April, 2015
 DECLARATION

I do here by declare that this project report entitled ― “A Study on

Service Quality of Hotel Industry in Rourkela” under the guidance of
Professor S.H. Uzma is my genuine work & is not submitted to anywhere else
before. I have done this project for the partial fulfillment of requirement of
my course curriculum of Master of Business Administration in Marketing
from School Of Management, NIT Rourkela.

Place: Rourkela
Jim Mahadev

Date:
 CERTIFICATE
This to certify that the project entitled ― “A Study on Service Quality of
Hotel Industry in Rourkela” submitted by Jim Mahadev bearing roll
number 313sm1003 for the partial fulfillment of the requirements for the
degree of Master of Business Administration embodies the genuine work
done under his supervision.

Place: Rourkela Signature of the Guide

Date:
 ACKNOWLEDGEMENT
Successful completion of any project is incomplete without the
mention of those whose continuous support and help was always needed
to complete the project. At the very outset I take this opportunity to

convey my heartfelt gratitude to those persons whose cooperation,

suggestions and support helped me to accomplish the project successfully.

An in-depth study of the project topic chosen requires continued interest

and persistent guidance from the project guide. I take immense pleasure in
showing my deep gratitude, sincerest thanks
& indebtedness towards Prof S.H.Uzma for her kind attention and keen
interest throughout the course of this work by providing valuable guidance
and continuous support that helped a lot in completion of this project.

Last, but not the least I would like to thank all the employees of different
hotels of Rourkela for their cooperative nature and supportive behaviour
throughout this project and also my parents, friends whose valuable
guidance, motivation, encouragement and trust made me to complete this
project.
 Summary

This project attempts to study the service quality of hotel industry in Rourkela. Service
quality is the degree and direction of discrepancy between consumers' perceptions and
expectations in terms of different but relatively important dimensions of service
quality. A 26-question SERVQUAL scale measuring five basic dimensions i.e.,
Tangibles, Reliability, Responsiveness, Assurance and Empathy of service quality was
used to understand the service quality of hotel industry. Population for the study
consisted of customers of 15 Hotels of Rourkela. In all 230 customers were
surveyed.The findings were very surprising as. The important finding of our study is
that ,in case of realibility,the customers are satisfied the maximum considering the five
factors of service quality model, but in case of assurance customers are least
satisfied.The sequence of satisfaction is reliability,responsiveness then tangibles then
empathy finally assurance.From these findings we conclude that in terms of realiability
the hotels of Rourkela are in a good position when customer satisfaction is
concerned.Hotels of Rourkela have to concentrate on empathy as well as on assuranve
because in terms of assurance all the hotels of Rourkela have a poor rating. On the
whole the industry did not match the expectations of customers.To minimize this gap
between customers' perceptions and expectations customers suggested introduction of
wi-fi, entertainment facilities, swimming pool, trained reliable staff, better equipment,
better food, prompt service etc.
ENTS

TOPIC PAGE-NO
CHAPTER 1:INTRODUCTION 1

CHAPTER 2:COMPANY AND PRODUCT PROFILE 5

CHAPTER 3:LITERATURE REVIEW 19

CHAPTER 4:OBJECTIVE AND SCOPE 26

CHAPTER 5:RESEARCH METHODOLOGY 28

CHAPTER 6: DATA ANALYSIS AND INTERPRETATION 32

CHAPTER 7: FINDINGS AND SUGGESTION 40

CHAPTER 8:CONCLUSION 43

QUESTIONNAIRE 45

REFERENCE 48
 CHAPTER 1

INTRODUCTION

1
 INTRODUCTION
All administration associations attempt and give the best conceivable and brilliant
administrations to their clients yet they frequently miss the mark regarding the
clients' desires following the clients have gotten to be more mindful of their
prerequisites and interest higher principles of administrations. Their observations
and desires are constantly advancing, making it troublesome for the administration
suppliers to gauge and deal with the administrations successfully. The idea of
administration quality has been investigated by numerous scientists however
because of its tricky, undefined and dynamic nature it had been hard to delimit and
measure it. Thus just a modest bunch of analysts have operationalized the idea like
Gronroos in 1984, Parasuraman, Zeithaml and Berry in 1988, Brown and Swartz in
1989, Carman in 1990 and Cronin and Taylor in 1992. Administration quality in its
least complex structure is a result of the exertion that each individual from the
association puts resources into fulfilling its clients. It additionally alludes to the
conveyance of amazing or better administration relative than client
expectations.Zeithaml et al in 1988 characterized administration quality as the
degree and heading of error between shoppers' discernments and desires regarding
diverse however moderately critical measurements of administration quality, which
can influence their future conduct. Parasuraman, Zeithaml and Berry's (1988)
conceptualization of five measurements: tangibles, reliability, responsiveness,
assurance and empathy, in the long run prompted the advancement of SERVQUAL,
a model for measuring administration quality.

SERVQUAL

SERVQUAL is an administration quality appraisal apparatus. Since the

advancement of SERVQUAL, it has been widely connected in an assortment of
organizations or better plans of action. SERVQUAL is the most supported
instrument for measuring administration quality (Robinson,1999). Parasuraman et al
(1988) reasoned that shoppers see quality by contrasting desires to execution and
assess the nature of the administration in distinctive measurements. A 22-inquiry
(thing) scale measuring five fundamental measurements recorded as takes after was
created:

2
Tangibles: The presence of the physical facilities,equipment, correspondence
material and work force.
Reliability: The capacity to perform a guaranteed administration constantly and
precisely.
Responsiveness: The ability to help clients and to give brief administrations.
Assurance: The learning and obligingness of representatives and their capacity
to move trust and trust in the clients.
Empathy: The minding, individualized consideration a firm gives its clients.

SERVQUAL has been generally utilized by the scientists as a part of an assortment

of modern and business settings like tire retailing (Carman, 1990), Hotels (Saleh and
Ryan,1992), travel and tourism (Fick and Ritchie, 1991), carservicing (Bouman and
Van der Wiele, 1992), business schools (Rigotti and Pitt, 1992), data administrations
(Pitt et al, 1995), advanced education (McElwee and Redman, 1993), health
awareness applications (Babakus and Mangold, 1992) and numerous more. The
present study utilizes Parasuraman, Zeithaml and Berry's 22-thing scale and five-
measurement structure of administration quality for inspecting the exploration issue
i.e. the nature of administrations offered by lodgings in Rourkela.

HOTEL INDUSTRY IN INDIA

Lodgings assume the part of giving visitors a home far from home. Furthermore, it
is this office that encourages the further fascination of visitors towards a spot in
light of the fact that it makes their visit more helpful. An inn alludes to a business
foundation giving cabin and dinners on makeshift premise to its clients. In 1902 the
"Indian inns organization" was consolidated by the organizer of the Tata bunch Mr.
Jamshedji Nusserwanji Tata and the organization opened up its first property The
Taj Mahal Palace and Tower, Mumbai. After this there was an upsurge in the Indian
lodging industry the same number of other Indians took after the strides of Mr. Tata
like Mr. Mohan Singh Oberoi who began by taking once again the excellent inn
Calcutta and extended his business. Later organizations like ITC and Air India
likewise wandered into this field. In the most recent couple of years the inn business
has changed and grown extensively as far as the administrations it gives. India is an
appealing destination for visitors on account of its rich legacy, which incorporates

3
the well known Taj Mahal, different sanctuaries and caverns and numerous different
popular landmarks. Likewise there are a ton of representatives and authorities who
visit India for business purposes on account of the exchange relations that our nation
has with the world. Additionally inside our nation likewise there are individuals who
make a trip starting with one state then onto the next or starting with one city then
onto the next for business or recreation. Ludhiana otherwise called the Manchester
of India is additionally a major mechanical city with commercial enterprises like
hosiery, materials, bike and bike parts, hand devices and so forth. It is home to some
huge organizations like Hero Cycles, Oswal, Trident, Vardhaman and so forth. Due
to it being a mechanical city it has a great deal of business explorers from
everywhere throughout the world. Also, hence it requires a decent number of inns as
well as great quality lodgings to oblige these

explorers (Thapar, 2007). All these inns shift in the kind and degree of
administrations they give like convenience, sustenance and refreshment
administrations, stimulation, entertainment, correspondence, transportation, room
administration, clothing administration, gathering and meeting game plans,
emergency treatment, and so forth.
Taking a gander at the significance that Rourkela has as a modern city it is vital to
know where its hotel industry remains as far as its administration quality.

4
 CHAPTER 2

COMPANY AND PRODUCT PROFILE

5
HISTORY OF HOTEL INDUSTRY
The hotel industry is a mature industry marked by intense competition. Market share
increases typically comes at a competitor‟s expense. Industry-wide, most growth
occurs in the international, rather than the domestic, arena.Common American hotel
classifications are as follows:
Commercial Hotels cater mainly to business clients and usually offer room service,
coffee-shop, dining room, cocktail lounge, laundry and valet service as well as
access to computers and fax services.
Airport Hotels are located near airports and are a conveniently located to provide
any level of service from just a clean room to room service and they may provide
bus or limousine service to the air lines.
Conference Centers are designed to specifically provide meeting space from
groups; they provide all services and equipment necessary to handle conventions.
Economy Hotels provide a limited service and are known for clean rooms at low
prices meeting just the basic needs of travelers.
Suite or All-Suite Hotels are hotels which offer spacious layout and design.
Business people like the setting which provides space to work and entertain separate
from the bedroom.
Residential Hotels used to be very popular. The typical residential hotel offers long
term accommodations.
Casino Hotels are often quite luxurious. Their main purpose is in support of the
gambling operation. Casino hotels often offer top name entertainment and excellent
restaurants.
Resort Hotels are the planned destination of guests, usually vacationers. This is
because resorts are located at the ocean or in the mountains away from inner cities.
Resort hotels may offer any form of entertainment to keep their guests happy and
busy.

A summary of key events in the history of the industry would include the following:

While the practice of renting space to travelers stretches back to antiquity, what
could be considered the modern concept of a hotel derives from 1794, when the City
Hotel opened in New York City. While the practice of renting space was not new,

6
the City Hotel was purported to be the first building devoted exclusively to hotel
operations. For it‟s time, the building was quite large and possessed 73 rooms.
Similar operations soon appeared in such nearby cities as Baltimore, Boston and
Philadelphia. Interestingly, New York City‟s first skyscraper was a hotel - the six
story Adelphi Hotel.

Hotels took a distinct step up in style and class when the Tremont House opened in
Boston in 1829. This hotel was considered by many to be the beginning of what was
regarded as first class service. With 170 rooms, the Tremont House was a large
facility. In addition, the hotel offered features which, for the time, were amazing.
Private single and double rooms were available, which offered not only privacy, but
also security. In addition to water pitchers and a washing bowl, free soap was
provided in each room. The Tremont House offered French cuisine and, reportedly,
was the first hotel to have a Bellboy.

In 1908, the Buffalo Statler opened, marking the beginning of the modern
commercial hotel era. Many services now considered standard were introduced by
the Statler, including such amenities as a light switch next to the door, private bathe,
ice water and a morning newspaper. The Statler set the standard of the day by being
clean, comfortable and affordable. The Statler served as the pattern for hotel design
and operation for many years.

In the 1920‟s, hotel building entered a boom phase and many famous hotels were
opened, including the Waldorf Astoria, New York‟s Hotel Pennsylvania, and the
Chicago Hilton and Towers, which was originally named the Stevens.

Motels began to replace roadside cabins as use of the automobile spread

throughout society. Offering clean rooms with adjacent parking, motels enjoyed
great popularity with the traveling public.

In the 1950‟s and 1960‟s, the practice of franchising appeared within the industry.
Franchising enabled entrepreneurs to expand their operations without the use of
substantial capital.

7
For much of their history, hotels were owned and operated by individuals. However,
as franchises and chains began to appear, individually owned hotels found
themselves increasingly at a competitive disadvantage. By the 1960‟s, independent
prospects began to improve as the result referral organizations such as Quality
Courts, Best Western, Master Host and Best Eastern. From the 1980‟s forward,
mergers and acquisitions became common within the industry, and brands become
hotly traded commodities.Recently, use of management companies has entered the
mainstream. As a result, many chains are more involved in management than in
ownership. These chains realize a much more predictable and steady income stream
than had normally been yielded by ownership.

TRENDS
In the 1980's there was extensive merger and acquisition activity between hotel
and non-hotel companies. Many companies are now selling specific brands in an
effort to get back to their core business.

Another trend in the hotel and beverage industry is paperless inventory systems.
Improvements in scanning equipment have made this possible. In many instances,
ordering, delivery, payment and stocking are all initiated and accomplished by
software prompted by information captured by scanning equipment with very little
human involvement.Some chains have sold ownership in their hotels to foreign
investors while still maintaining control. This provided the capital that was needed
for further expansion.REIT‟s (Real Estate Investment Trusts) have been created to
allow smaller investors to participate in mortgages and equities.Product
segmentation has become more popular. Luxury and first class hotels have created
more amenities and products for their customers while economy and budget motels
have cut back services in order to maintain lower prices. Also specialized extended
stay and suite hotels have become more popular. Hotels with indoor water parks are
one of the newest trends. Timeshares is another segment that many hotel companies
are involved with recently. The development, sale, and management of timeshares
have become particularly popular with the large chains. Franchising continues to
flourish in the hotel industry.

8
 Audit issues cover a variety of areas, as would be expected. In addition to matters
such as cost segregation, which impact numerous industries, hotel companies have
undertaken such activities as donating used bedding as they upgrade their
equipment, using trusts to defer income, delaying recognition of last day of the year
receipts, franchising, condo conversion, and so forth.Several years ago, customers
generally called a toll-free number to make room reservations. In 2006, about 50%
of hotel rooms were booked through the internet. The number of domestic hotel
rooms reserved for smokers is declining as major hotel chains are beginning to
decrease their total number of smoking rooms or becoming non-smoking facilities
altogether. Other recent trends in the industry include luxury mattresses,
complimentary breakfast, high definition TV, high speed internet access, Wi-Fi
(wireless internet access), and room suites.A recent 2006 trend is hotels re-imaging
their lobbies to destination places. For example part of the lobby may be used for a
breakfast area in the morning and a bar at night. This may include sliding walls,
decorative lighting, and music. One reason for this is to generate more income per
square foot. A July 2005 article from Knight Ridder Newspapers highlights what the
major chains are upgrading in the sleep department. The article provided the
following information:
 Marriott International has been replacing mattresses at its Marriott and Renaissance
hotels for several years and is adding new bedding at its 2,400 hotels, including
higher thread count sheets, down comforters and duvet covers at a cost of $190
million.
 Hilton Hotels is introducing new bedding across its brand, including Hilton,
Doubletree and Embassy Suites. There will be higher thread count sheets, plush top
mattresses, extra pillows and user friendly clocks.
 Crown Plaza replaced some 50,000 beds and bedding in 2004, hired a sleep doctor for
advice on relaxation, and tossed in a sleep kit for guests.
 Radisson in 2004 began moving in custom-designed Sleep Number beds at 230 of its
hotels and resorts, with most of its 90,000 beds to be replaced by 2006. New
bedding is also included in the makeover.
 Hyatt recently rolled out its Grand Bed, a 13 ½ inch pillow-top mattress, and added
more luxurious linens and decorative pillows.
 Starwood Hotels announced the debut of a new bed at its moderately priced brand,
Four Points by Sheraton. The Four Comfort Bed, a $13 million investment, joins
the Heavenly Bed and Sheraton Hotel‟s Sweet Sleeper Bed in Starwood‟s lineup.
9
 Red Roof Inns will offer pillow top mattress pads, 230 thread count sheets and
hypoallergenic pillows at select hotels

Industry Term Definition or Explanation

ADJOINING Guestrooms located side by side without a
ROOMS connecting door between them.
AFFILIATE A hotel chain's reservation system in which all
RESERVATION participating properties are contractually related.
SYSTEM Each property is represented in the computer
system database and is required to provide room
availability data to the reservation center on a
timely basis.
AFFILIATED A hotel that is a member of a chain, franchise, or
HOTEL referral system. Membership provides special
advantages, particularly a national reservation
system.
AMENITY Service or item offered to guests or placed in
guestrooms for the comfort and convenience of
guests, and at no extra cost. Examples are various
guest services (such as in-room entertainment
systems, automatic check-out, free parking,
concierge services, and multilingual staff) in
addition to an array of personal bathroom items
offered by most hotels and motels. Amenities are
designed to increase a hotel's appeal, enhance a
guest's stay, and encourage guests to return.
ATRIUM A guestroom floor configuration in which rooms
are laid out off a single-loaded corridor encircling
a multistory lobby space; also the multistory
lobby space, usually with a skylight.
AVERAGE A ratio that shows the average number of paid
OCCUPANCY PER guests for each room sold. Calculated by dividing
ROOM number of paid room guests by number of rooms

10
 Industry Term Definition or Explanation
sold. Measures management's ability to use the
lodging facilities.
AVERAGE ROOM A ratio that indicates average room rate, and to
RATE what extent rooms are being up-sold or
discounted; calculated by dividing rooms‟
revenue by number of rooms sold. Also called
average daily rate or ADR.
BANQUET A meal prepared for a particular group, for which
the number of guests and the menu are
predetermined. Most properties offering banquet
service have special facilities for banquet food
production and service.
BARTER The trading of merchandise instead of paying
cash. (e.g. advertising)
BED & A small inn or lodge that provides a room and a
BREAKFAST (B&B) breakfast. Often a B&B is in a residential home
setting and/or a historic building converted to a
quaint lodging facility.
BILLING CLERK The person responsible for charging to hotel
guests all vouchers representing food, beverages,
room service, and merchandise purchases.
CALL A system that is part of the telephone equipment
ACCOUNTING that prices telephone calls made by hotel guests
SYSTEM and sends the information to the property
management system (PMS) for billing.
CASINO HOTEL A hotel that features legal gambling, with the
hotel operation subordinate to the gambling
operation.
CENTRAL Part of an affiliate reservation network. A central
RESERVATION reservation office typically deals directly with the
OFFICE public, advertises a central (usually toll-free)
telephone number, provides participating
properties with necessary communications

11
 Industry Term Definition or Explanation
equipment, and bills properties for handling their
reservations.
CHAIN A firm that operates several properties, such as
OPERATING Holiday Inn Worldwide or Hilton Hotels
COMPANY Corporation. Such an operator provides both a
trademark and a reservation system as an integral
part of the management of its managed
properties.
CHECK-IN The procedures for a guest's arrival and
registration.
CHECK-OUT (1) The procedures for a guest's departure and the
settling of his or her account.
(2) A room status term indicating that the guest
has settled his or her account, returned the room
keys, and left the property.
COMMERCIAL A property, usually located in a downtown or
HOTEL business district, that caters primarily to business
clients.
COMPLIMENT- A complimentary or "comp" room is an occupied
ARY ROOM room for which the guest is not charged. A hotel
may offer comp rooms to a group in ratio to the
total number of rooms the group occupies. One
comp room may be offered for each fifty rooms
occupied, for example.
CONDOMINIUM A hotel in which an investor takes title to a
HOTEL specific hotel room, which remains in the pool to
be rented to transient guests whenever the
investor is not using the room. The investor
expects to receive a gain from the increase in
value of the hotel over time, as well as receive
ongoing income from the rental of his or her
room.
Cooperative Any arrangement by which a product or service

12
 Industry Term Definition or Explanation
advertising is brought to public notice over the names of both
the supplier and any intermediary who comes
between that supplier and the ultimate purchaser.
The intermediary may be a retailer who buys a
product for resale, a distributor who sells to
retailers or other form of intermediaries. This
arrangement results in consumer advertising as
well as other forms of promotion. The cost of
the promotion may be shared by the supplier and
the intermediary, or the supplier may pay all
costs. The process commonly involves
reimbursing retailers for advertising they create
and place.
CORPORATE Hotel organization that has its own brand or
HOTEL CHAIN brands, which may be managed by the corporate
chain or by a conglomerate.
GENERAL The chief operating officer of a hotel.
MANAGER
HOSPITALITY Lodging and food service businesses that provide
INDUSTRY short-term or transitional lodging and/or food.
HOTEL A large lodging facility, generally a hotel is full
service and a multi-story building with interior
entrance guest rooms.
INDEPENDENT A hotel with no chain or franchise affiliation. It
HOTEL may be owned by an individual proprietor or a
group of investors.
LATE CHARGE Charged purchase made by a guest that is posted
to the guest's folio after the guest has settled his
or her account.
MID-PRICE/ Hotel that caters mostly to persons who must be
EXTENDED-STAY in an area for a week or longer. The guestrooms
HOTELS of mid-price/extended-stay hotels have more
living space than regular hotel guestrooms, and

13
 Industry Term Definition or Explanation
may also have cooking facilities. Guestrooms in
these hotels tend to be less expensive than
guestrooms in full-service or all-suite hotels.
Occupancy The percentage of available rooms occupied for a
given period.
POINT OF SALE Computerized systems that retail outlets such as
SYSTEM (POS) restaurants, gift shops, etc, enter orders and
maintain various accounting information. The
POS generally interfaces with the property
management system (PMS).
PROPERTY A computerized front desk system that manages
MANAGEMENT hotel room inventory, guest billing and interfaces
SYSTEM (PMS) with various other systems such as telephone, call
accounting, point of sale (POS), entertainment,
etc.
PROPRIETARY A internet reservation system that is owned and
BOOKING ENGINE operated by an individual hotel or group of hotels
to allow them to take reservation on their own
website without paying a fee to the GDS, third
party booking engines or franchise reservation
systems.
RACK RATE The current public rate quoted for each
accommodation as established by the property's
management. However, most rooms are
discounted. (i.e. rented at less than the rate rack)
RESERVATIONS A guestroom that being held under an individual
or business' name at a particular hotel for a
specific date or range of dates.
RESORT HOTEL A hotel, usually located in a desirable vacation
spot, that offers fine dining, exceptional service,
activities unavailable at most other properties,
and many amenities.
ROOM A device that uses infrared light or ultrasonic

14
 Industry Term Definition or Explanation
OCCUPANCY sound waves to sense the physical occupancy of a
SENSOR room. Sensors have the ability to turn on devices
and appliances such as lights, air conditioning,
and heating whenever a guest enters a space, and
to turn these devices and appliances off when the
guest leaves.
ROOM RACK A card index system that is constantly updated to
reflect occupied and vacant rooms. In the
evening, the room rack contains forms for only
those registered guests remaining for the night
who are to be charged for rooms. A daily room
report can be prepared from the room rack.
ROOMS A front office application of a computer-based
MANAGEMENT property management system. The module (a)
MODULE maintains up-to-date information on the status of
rooms, (b) assists in the assignment of rooms
during registration, and (c) helps coordinate
various guest services.
SERVICE CHARGE A percentage of the bill (usually 15% to 20%)
added to the guest charge for distribution to
service employees in lieu of direct tipping.
THIRD PARTY An internet site that provides a booking engine
BOOKING where a traveler can search a large number of
ENGINE lodging facilities for availability and reserve a
room. The lodging facilities are not affiliated
with the site and pay a fee for the business that
the third party site generates. Examples of third
party sites include: hotels.com, priceline.com.
Transient Occupancy City or County tax added to the price of a hotel
Tax room.
WATERPARK A hotel that offers large recreational water
HOTEL elements such large pools, multiple pools, slides
or other water related venues.

15
ACCOUNTING PRINCIPLES
The lodging industry was reportedly one of the first industries to develop “definitive
standards to provide specific guidance to accountants and operators. The standards
evolved because uniformity of layout and presentation were, and are, still not
stressed under U.S.Generally Accepted Accounting Principles (GAAP).”; Those
standards were and are contained in the Uniform System of Accounts for the
Lodging Industry (USALI), which is published by the American Hotel and Motel
.
Association While the accounting profession may not have seen fit to develop
GAAP standards specifically applicable to the lodging industry, the USALI has
been widely adopted within the industry. Although there is no requirement that a
lodging operator use the USALI, the degree of compliance with this time-tested,
turnkey system is substantial. The primary reason for widespread adoption of the
USALI has been comparability. Lodging operators tend to use financial statement
data generated by competitors as a benchmark against which to measure their own
operations. If comparability is lacking, then there are no benchmarks.Additionally,
while the system was developed for use within the United States, many hotel
operators around the world have adopted the USALI. Financial statements prepared
for external users, are based on GAAP. In addition to other items commonly found
in most financial statements, lodging industry financials are likely to report on such
items as China, Glassware, Silver, Linen, and Uniforms (CGSLU), and the House
Bank.The USALI is a highly departmentalized system of accounting, and includes
Departmental Statements of Income. There are two main department classifications
in a hotel: operating and overhead. The operating (revenue-producing) departments
include rooms, food and beverage, telecommunications, and similar departments.
The overhead departments include administrative and general, data processing,
human resources, transportation, marketing, guest entertainment, energy costs, and
property operation and maintenance.

TYPE OF HOTEL INDUSTRY

There are two ways to categorize hotels: by functions or by star ratings
By functions, hotel has been classified into several types as follows:

16
• Commercial Hotel
• Airport Hotel
• Conference Center
• Economy Hotel
• Suite or All-Suite Hotel
• Residential Hotel or Apartment Hotel
• Casino Hotel
• Resort Hotel
Commercial Hotel:
A chain of hotels which have standardized service and amenity structures
Airport Hotel:
Hotel near the airport but it does not have to be connected or adjacent to the airport
(although some are); it could be located up to five miles away. Most airport hotels
have a shuttle to and from the terminals (Charlyn Keating Chisholm, about.com.
guide)
Conference Center:
A specialized hotel (usually in a less busy but easily accessible location) designed
and built almost exclusively to host conferences, exhibitions, large meetings,
seminars, training sessions, etc. A conference center often also provides office
facilities and a range of leisure activities
Economy Hotel:
A hotel offering few amenities (J.K. Krishan, “Dictionary of Tourism”, Gyan
Books, 2005)
Suite or All-Suite Hotel:
A hotel in which every rooms has an attached living room and/or kitchen
Residential Hotel or Apartment Hotel:
A serviced apartment complex uses a hotel-style booking system. It is similar to
renting an apartment, but with no fixed contracts and occupants can 'check-out'
whenever they wish.
Casino Hotel:
A business establishment combines a casino and a hotel or a building that houses
both a hotel and a casino.
Resort Hotel:
A hotel caters primarily to vacationers and tourist and typically offers more
recreational amenities and services in a more aesthetically pleasing setting, than
17
other hotels. These hotels are located in attractive and natural tourism destinations
and their clientele are groups and couples that like adventure with sophistication and
comfort. The attractions vary depending on the region and some might offer golf,
tennis, scuba diving and, depending on the natural surroundings, may also arrange
other recreational activities.

By Star Ratings, hotel has been classified into several types as follows:
• Five Star Hotel
• Four Star Hotel
• Three Star Hotel
• Two Star Hotel
• One Star Hotel
• No Category Hotels

Five Star Hotel:

Luxury hotels; most expensive hotels/resorts in the world; numerous extras to
enhance the quality of the client's stay, for example, some have private golf courses
and even a small private airport. (“Hotel Glossary of Terms”, Marsh)
Four Star Hotel:
First class hotels; expensive (by middle-class standards); has all of the previously
mentioned services; has many "luxury" services, for example, massages or a health
spa.
Three Star Hotel:
Middle class hotels; moderately priced; has daily maid service, room service, and
may have dry-cleaning, internet access and a swimming pool. (“Hotel Glossary of
Terms”, Marsh)
Two Star Hotel:
Budget hotels; slightly more expensive; usually has maid service daily. (“Hotel
Glossary of Terms”, Marsh)
One Star Hotel:
Low budget hotels; inexpensive; may not have maid service or room service.
(“Hotel Glossary of Terms”, Marsh)

18
 CHAPTER 3

LITERATURE REVIEW

19
LITERATURE REVIEW

Friendliness administrations are a congruous mixture of three components material

items, conduct and state of mind of workers and the earth (Reuland et al, 1985). E l
Farra in 1996 found that cost was the most essential component which impacts the
support of medium estimated inns by clients. Numerous studies have been led on the
administration quality issues of inns, yet not very many have been led in India.
Thomson and Thomson in 1995 led a study on quality issues of nine inns in
Wellington, New Zealand and Juwaheer in 2004 examined the key significance of
administration quality in lodgings of Mauritius. Shergill (2004) analyzed voyagers'
discernments when assessing the administration nature of lodgings in New
Zealandand recognized elements considered critical to clients utilizing element
examination. Davidson (2003 a) contended that there was a causal connection
between great authoritative atmosphere and the level of administration quality in an
inn. In another study Davidson (2003 b) inspected the administration quality in inns
furthermore joined consumer loyalty in authoritative society and atmosphere.
SERVQUAL was thought to be the most proper instrument to quantify
administration nature of inns (Fernandez, 2005). Knutson et al (1991) utilized
SERVQUAL to make a cabin particular instrument called LODGSERV which is a
26 thing record intended to quantify shopper desires for the administration quality In
the lodging knowledge.From the audit of writing on quality, it has been discovered
that early research endeavors focused on characterizing and measuring the quality in
the assembling part. Despite the fact that orderly quality endeavors began in the
assembling area in the 1920s, exploration in administrations began to develop in the
late 1970s in a few sections of the world (Gummesson, 1991). Since, particularly in
the industrialized countries, in the course of recent decades, the administration part
has turned into the predominant component of the economy, and the studies
uncovered that administration quality is an essential for achievement and survival in
today's focused surroundings, the enthusiasm for administration quality has
expanded perceptibly (Ghobadian et al., 1994). Exploration demonstrates that
administration quality prompts client reliability and fascination of new clients,
positive informal, representative fulfillment and responsibility, improved corporate
picture, diminished expenses, and expanded business execution (Berry et al., 1989).
The experimental examination directed by the Strategic Planning Institute has

20
uncovered the positive relationship between saw quality and an association's
budgetary execution (Berry, 1991). The extraordinary Profit Impact of Marketing
Strategy project of the foundation has reasoned that organizations with saw amazing
merchandise and administrations regularly had higher piece of the pie, higher
quantifiable profit and resource turnover than organizations with saw low quality.
This prompted the conclusion that in the long haul, the most imperative element
influencing business execution is the nature of merchandise and administrations
offered by the association, in respect to its rivals (Juran and Gryna, 1993).
Regardless of the expanding significance of the administration part and of the
criticalness of value as a focused variable, administration quality ideas are not all
around created (Ghobadian et al., 1994). Since administration quality is a slippery
idea, there is extensive level headed discussion in the pertinent writing about how
best to conceptualize this sensation. In spite of the fact that an allembracing
meaning of administration quality is unrealistic yet, meanings of administration
quality proposed via scientists spin around the thought that it is the aftereffect of the
examination clients make between their desires about an administration and their
view of the way the administration has been performed (Lewis and Booms, 1983;
Gro¨ nroos, 1984; Parasuraman et al., 1985, 1988). This imparted point achieves a
wide agreement that administration quality must be characterized from the client's
viewpoint. In this manner, an awesome greater part of examination spotlights on the
topic of how administration quality saw by clients and how seen administration
quality can be measured (Stauss and Weinlich, 1997). Administration quality can't
be impartially measured as can produced merchandise and thusly it remains a
moderately subtle and theoretical build (Zeithaml et al., 1990). The assessment of
value for administrations is more unpredictable than for items as a result of their
inborn nature of heterogeneity, intertwined state of creation and utilization,
perishability and impalpability (Frochot and Hughes, 2000). These recognizing
qualities of administrations make it hard to characterize and measure administration
quality. In the lodging business, different traits, for example, uncertain gauges, short
dispersion channel,dependability and consistency, up close and personal cooperation
and data trade, and fluctuating interest have been distinguished and further confuse
the assignment of characterizing, conveying and measuring administration quality.
In addition, interest for administration in the inn business is for the most part
bunched around crest times of the day, week or year, for example, registration,
registration times or Christmas season and these top periods make a situation which
21
makes it hard to give reliable administration quality (Barrington and Olsen, 1987;
Mei et al., 1999).

As rivalry is expanding and enhancing the nature of administrations offered is

getting to be more imperative for the inn business, it is vital to have the capacity to
characterize the administration quality, distinguish the measurements of the
administration quality and their relative significance for clients (Fick and Ritchie,
1991). Having learning about these regions could help administrators in the test of
enhancing the administration quality in the inn business (Asubonteng et al., 1996)

2. Measuring administration quality in the inn business Accessible writing gives a

lot of administration quality estimation systems proposed by different specialists
(Erto and Vanacore, 2002; Parasuraman et al., 1985; Philip and Hazlett, 1997;
Cronin and Taylor, 1992; Franceschini and Rossetto, 1997; Teas, 1994;
Schvaneveldt et al., 1991). These strategies can be extensively classified in two
gatherings, as occurrence based alternately trait based administration quality
estimation routines (Stauss and Weinlich, 1997). The occurrence based routines use
the occurrences that clients involvement in administration contact circumstances.
Characteristic based routines exist in a wide range of variations. Among these
variations, the SERVQUAL instrument has pulled in the best consideration as a
consequence of its claim of having the capacity to quantify the pertinent
measurements of the seen administration quality, paying little respect to which
benefit industry is being viewed as (Gilbert also, Wong, 2002; Tsang and Qu, 2000;
Brown and Swartz, 1989; Carman, 1990; Parasuraman et al., 1988, 1991, 1994a).
The SERVQUAL instrument still proceeds to speak to both scholastics and
professionals in spite of various reactions pointed at the scale (Caruana et al., 2000).
As of late, various studies have concentrated on administration quality in the
lodging business (e.g., Juwaheer, 2004; Ekinci et al., 2003; Tsang and Qu, 2000;
Mei et al., 1999). The results of these studies have delivered a few commitments in
connection to comprehension the dimensional structure of administration nature of
inns. In the meantime, these studies have demonstrated that there power have been
diverse quality measurements to manage for the inns that serve to distinctive
markets and along these lines fall into diverse fragments of the lodging business for
example, resort lodgings, motels, airplane terminal inns, tradition inns, and so forth
which all have recognizing qualities. These studies have likewise demonstrated that,
in lodging setting, some of quality measurements were not quite the same as the five
22
measurements portrayed by the first SERVQUAL specialists. Akan (1995) arranged
a poll adjusted from the SERVQUAL instrument and researched the use of the
SERVQUAL instrument in a global situation. The creator expected to look at the
measurements of the SERVQUAL and measure the level of significance of the
measurements for the clients of Turkish four- and five-star inns. The study
recognized seven measurements, named as ''graciousness and ability of the staff'',
''correspondence and exchanges'', ''tangibles'', ''knowing and comprehension the
client'', ''precision and velocity of administration'', ''answers for issues'', and
''exactness of lodging reservations''. Among these, ''obligingness also, ability of
lodging work force'' was the most vital property affecting the impression of value.
Mei et al. (1999) inspected the measurements of administration quality in the inn
business in Australia. They utilized the SERVQUAL instrument as an establishment
and built up another scale called HOLSERV scale, another instrument to gauge
administration quality in the inn industry. As the key discoveries of their study, the
creators reasoned that administration quality was spoken to by three measurements
in the lodging business, identifying with ''representatives'', ""tangibles"" what's
more, ''unwavering quality'', and the best indicator of general administration quality
was the measurement alluded to as ''workers''. Saleh and Ryan (1992) directed a
study in the inn business what's more, distinguished five measurements of
administration quality. On the other hand, the measurements they found were
''gaiety'', ''tangibles'', ''consolation'', ''maintain a strategic distance from mockery''
and ''compassion'', and they varied from those in SERVQUAL instrument. Their
study likewise uncovered that the ""gaiety"" measurement represented the vast
majority of the difference. Knutson et al. (1990), utilizing SERVQUAL as an
establishment, created LODGSERV, an instrument intended to measure
administration quality in the lodging business. In their study, five administration
quality measurements risen, among them ""dependability"" positioned first in
pecking order of significance for assessing the administration quality, took after by
''affirmation'', ''responsiveness'', ''tangibles'', and ''sympathy''. Patton et al. (1994)
made an interpretation of LODGSERV into Japanese and Chinese and directed the
instrument in Japan, Taiwan, Hong Kong, Australia and the UK. Their discoveries
mirrored that LODGSERV holds its dependability when controlled in societies
outside the US. Oberoi and Hales (1990) built up a scale to gauge administration
quality in meeting lodgings in UK. As per this study, impression of administration
quality was twodimensional, what's more, comprised of ""tangibles"" and
23
''intangibles''. Ekinci et al. (1998) tried the SERVQUAL instrument in two coastline
Turkish resorts. Their study did not affirm the measurements in unique
SERVQUAL scale. The consequences of this study have additionally suggested a
two-dimensional structure, named as ""tangibles"" and ""intangibles"" for resort inn
setting. Webster and Hung (1994) added to a simple to-utilize survey for measuring
administration quality in inn industry. The poll was taking into account the
SERVQUAL instrument. The creators field-tried the adjusted instrument and
inferred that their instrument was substantial, dependable and practicable, and offer
a few points of interest when contrasted and SERVQUAL. The adjusted instrument
comprised of eight measurements: ''tangibles'', ''unwavering quality'',
''correspondence'', ''responsiveness'', ''security'', ''understanding'', furthermore,
''comfort''. Caruana et al. (2000) researched the handiness of the threecolumn design
SERVQUAL instrument proposed by Parasuraman et al. in 1994. The discoveries
showed that the recognition battery was the remarkable part, raising new concerns in
regards to the handiness of the changed desires scale in administration quality
estimation. The consequences of the study created a three-dimensional structure:
''unwavering quality'', ''tangibles'', while ''responsiveness'', ""affirmation"" and
""sympathy"" merging into a solitary element. Fick and Ritchie (1991) inspected
both the operation of the SERVQUAL scale and its administration ramifications in
four noteworthy parts of the travel and tourism industry: carrier, inn, eatery, and ski
zone administrations. They found that the most critical desires concerning
administration were ""unwavering quality"" and ""affirmation"" for every one of the
four segments. The consequences of their exploration affirmed the fivedimensional
structure and showed the value of the SERVQUAL instrument, however they
likewise recognized various concerns and inadequacies. The creators reasoned that
while the issues and confinements of the instrument did not nullify its handiness,
consideration must be taken in the elucidation of results got from its surviving
definition. They likewise presumed that SERVQUAL, and any adjustment of it, was
best when contrasting firms inside a typical administration portion instead of
crosswise over portions. Philip and Hazlett (1997) if an audit of the SERVQUAL
instrument and clarified the dangerous territories connected with the instrument. The
creators accepted that its five measurements did not satisfactorily address a portion
of the more basic issues connected with the appraisal of individual administrations.
general structure for evaluating the administration nature of any administration part.
Armstrong et al. (1997), utilizing the SERVQUAL instrument, analyzed the effect
24
of ""desires"" on administration quality discernments in the Hong Kong inn industry
which included multifaceted tests. They inferred that critical ""desires"" contrasts
exist between social gatherings and that ""desires"" did not enhance the legitimacy
of SERVQUAL. Their discoveries suggested that for inn administrations desires of
administration varied from society to society. The consequences of the past studies
found in applicable writing refered to above showed that alert must be taken in
endeavors for enhancing administration quality in the inn business, since in inn
setting some of value measurements were not the same as the five measurements
depicted by the first SERVQUAL analysts, administration quality measurements
vary from one fragment of inn industry to another, and for inn administrations client
desires of administration contrast from society

25
 CHAPTER 4

OBJECTIVE AND SCOPE

26
OBJECTIVE AND SCOPE

Hotels play the role of providing guests a home away from home. And it is this
facility that facilitates the further attraction of guests towards a place because it
makes their visit more convenient. A hotel refers to a commercial establishment
providing lodging and meals on temporary basis to its customers. In 1902 the
"Indian hotels company" was incorporated by the founder of the Tata group Mr.
Jamshedji Nusserwanji Tata and the company opened up its first property The Taj
Mahal Palace and Tower, Mumbai. After this there was an upsurge in the Indian
hotel industry as many otherIndians followed the footsteps of Mr. Tata like Mr.
Mohan Singh Oberoi who started by taking over the grand hotel Calcutta and
expanded his business. Later companies like ITC and Air India also ventured into
this field. In the last few years the hotel industry has changed and developed
considerably in terms of the services it provides.India is an attractive destination for
tourists because of its rich heritage, which includes the famous Taj Mahal, various
temples and caves and many other famous monuments. Also there are a lot of
businessmen and officials who visit India for business purposes because of the trade
relations that our country has with the world. Similarly within our country also there
are people who travel from one state to another or from one city to another for
business or leisure. Rourkela also known as the steel city. It is home to some
bigcompanies like RSP, Adhunik Metals, L&T etc. Because of it being an industrial
city it has a lot of business travelers from all over the world.And thus it requires not
only a good number of hotels but also good quality hotels to accommodate these
travelers (Thapar, 2007). All these hotels vary in the kind and extent of services they
provide like accommodation, food and beverage services, entertainment, recreation,
communication, transportation, room service, laundry service, conference and
meeting arrangements, first aid, etc. Looking at the importance that Ludhiana has as
an industrial city it is important to know where its hotel industry stands in terms of
its service quality. The present study was aimed at achieving the following specific
objectives:
1 To find the importance of service quality dimensions of hotel services.
2 To find customers' satisfaction w.r.t hotel services.
3 suggest various measures for minimizing gaps between customers' perceptions
and expectations.

27
 CHAPTER 5

RESEARCH METHODOLOGY

28
RESEARCH METHODOLOGY

The research design of the study is descriptive in nature. The target population
consists of the customers of those hotels of Rourkela. There are 15 hotels given in
the list. All the hotels in the list were placed for a better result. So a total of 15
hotels were selected on the basis of single room rent. The customers from these
selected hotels were selected on the basis of convenience sampling. Out of all the
selected hotels in each category fifteen customers from every hotel i.e., 230
customers in all were selected. Primary data was collected using the structured and
non-disguised questionnaire which was administered personally. In all 230
customers who had availed the services of these hotels were asked to fill the
questionnaire on the tangibility, reliability, responsiveness, assurance and empathy
parameters. These parameters have been derived from the SERVQUAL model
suggested by Parasuraman, Ziethaml and Berry (1988).The statements in the model
were adapted as per the hotel industry. The respondents were first asked to give
weightage to the service quality dimensions like tangibility, reliability,
responsiveness, assurance and empathy based on how important each of these
factors was to them.

HYPOTHESIS

H1: There is significant impact of service quality dimensions on

customer satisfaction with respect to Hotel Industry.
H0:There is no significant impact of service quality dimension on
customer satisfaction with respect to Hotel Industry.

Overview of approach
A questionnaire for the hotel guests has been developed based on the components of
the service quality in the hotel industry. Moreover, it is supported by the marketing
elements SERQUAL (Parasuraman, 1988) approach has been the most popular
method for choosing because it is quite complete measure for all the service

29
industry. It covers all ten factors of quality of the hotel services. Therefore, the
LODGING QUALITY INDEX (Getty and Thompson, 1994) has been chosen to
develop the questionnaire. LODGING QUALITY INDEX not only solved some
weakness of SERQUAL but also very specific for the hotel industry.The
questionnaire is a complete survey of 26 questions . At the end of questionnaire are
the questions about likeness of the service and suggestions from the customers.

Characteristic of survey
Sample size 230,Method of information gathering Personal interview,Online survey.
In order to identify important quality attributes for the hotel services and the
different expectation of customers, a total 230 respondents were asked to participate.
. Most of respondents have had experiences with the
hotel services, they would provide an evaluable respond regarding to the services.
Moreover, the response rate was quite high, so this survey method was chosen.
The participants answered the questionnaire. Then the results was gathered from the
all survey and computed for interpretation.

A self-administered questionnaire, an adapted/modified version of SERVQUAL,

was used in this study to analyze the service quality expectations and perceptions of
the hotel‟s guests. The relevant literature, survey instruments developed by past
studies, and information derived from experts (academia and industry) provided the
basis for developing the the questionnaire. After a review of the literature and
interviews with experts, 26 service quality attributes were developed in the
questionnaire.SERVQUAL instrument served as a foundation for development of
questionnaire. Some attributes were reworded to make them more applicable to
hotel setting and additional attributes were added to capture specific aspects of the
hotel industry. The attributes were listed into fivepoint scales. This layout
deviates from the SERVQUAL instrument, but, it overcomes boredom and
confusion caused by two administrations in SERVQUAL. Customers were asked to
rate the attributes on a five-point scale, (1) indicating „„strongly disagree‟‟ and (5)
„„strongly agree‟‟. The fivepoint scale was also different from SERVQUAL which
had seven-point scales. The respondents‟ assessment of overall service quality was

30
measured using the following question: „„Overall, how would you rate the quality
of service you received in this hotel?‟‟
A test was undertaken to assess the reliability of the attributes, and to ensure that the
wordings of the questionnaire were clear. Twenty six questionnaires were completed
by the guests in accompaniment of researcher. Some problems were identified with
the wordings and implications of some questions, so some minor revisions were
made to avoid confusion. Reliability analysis was also applied to test the internal
consistency of each of the expectation and perception attributes.
Hotel guests who checked-out from the hotel and about to leave were approached.
The Software Package for the research which was used was spss used to analyze the
data. Descriptive statistics analysis was used to measure guests‟ expectation and
perception scores. To explore the dimensionality of the 29-attribute scale, a
factor analysis was performed. Validity tests how well an instrument that I
developed measures the particular concept it is supposed to measure. Reliability of a
scale on the other hand indicates the stability and consistency with which the
instrument measures the concept and helps to assess the goodness of a measure
(Sekaran, 2000). To have an idea on the internal consistency among the items and
on the convergent validity of the overall scale, a reliability analysis was employed.
Within-scale factor analyses were used to ensure that all indicators in the scale
measure the same construct. This process is known as construct validity (Flynn et
al., 1995). To test the internal consistency of each factor, a reliability analysis was
employed. Based on the new factors derived from the factor analysis, a multiple
regression analysis was used to identify the relative importance of the factors in
predicting the overall customer satisfaction with the service quality provided.

LIMITATIONS OF THE STUDY

Although, the scope of study is vast in nature, but limited persons interviewed on
random sampling basis and in some cases, selective persons interviewed as per the
requirement. However, such study is completed within a specified period of time and
many points might have been omitted for the scope of study in advertently. Adequate
precautions have been adopted to make the study work free from bias and prejudices
as far as possible.

31
 CHAPTER 6

ANALYSIS AND INTERPRETATION

32
 DATA ANALYSIS & INTERPRETATION

Reliability statistics
It has been found that Cronbach's alpha is 0.924, which indicates strong internal
consistency among factors. This means that 92% of the variability in composite score is
considered to be internally reliable variance. The result shows that the alpha value is
which suggests the internal validity of the instrument is highly satisfactory.

Reliability Statistics

Cronbach's Alpha N of Items

.924 26

FACTOR ANALYSIS

Factor analysis of responses was used for data reduction in order to identify correlations
among variables in complex sets of data (Mitchel more and Rowley, 2013) used to
gauge the industrial relations. Cronbach alpha was found to be 0.924, which was well
above the acceptable value of 0.70 for demonstrating internal consistency of the
established scale (Nunnally, 1988). Kaiser-Meyer-Olkin (KMO>0.6) and Bartlett‟s test
of sphericity (p<0.05) were used to test empirically whether the data were likely to
factor well (Bikker and Thompson, 2006; Kaiser, 1974; Kline, 1994).In this study KMO
measure was 0.885 indicating that the data was adequate for factor analysis. Also,
Bartlett‟s test of sphericity (sig. = 0.000) indicated the significance of the study,
thereby showing the validity and suitability of the responses collected . Therefore, the
statistical test showed that the dimensions of instruments were likely to factor well and
the questionnaire was multidimensional.

33
KMO and Bartlett's Test
Kaiser- .885
Meyer-Olkin
Measure of
Sampling
Adequacy.
Ba Ap 30
rtl pr 47
ett' ox .2
s . 44
Te Ch
st i-
of Sq
Sp ua
he re
ric
ity
Df 435
Sig. .000

The data gathered from the main survey were analyzed through principal
components factor analysis followed by varimax rotation. It basically partitions the
total variance of all original variables by finding the first linear combination of
variables that accounts for the maximum variance. The communalities represent the
total amount of variance an original variable shares with all other variables included
in the analysis. The purpose of viewing communalities is to assess whether the
variables meet acceptable levels of explanation.6 out of 30 variables had
communalities less than 0.50 indicating they didn‟t have sufficient explanation and
hence were not considered for further analysis. Below table shows the information
regarding the remaining variables and their relative explanatory powers. The six
factors extracted captures 70.317 %., which can be deemed sufficient in terms of

34
explained total variance. The six extracted factors were named
reliability,responsiveness,empathy,tangibles,assurance.

Next, varimax rotational method was employed to achieve simpler and theoretically
more meaningful factor solutions. This orthogonal rotation tries to maximize the
variance of each of the factors in such a way that the total amount of variance
accounted for is redistributed over the six extracted factors. Table exhibits the factor
loadings of the extracted factors after varimax rotation.

35
36
Regression
A stepwise multiple regression analysis was conducted to determine the “A Study
on Service Quality of Hotel Industry in Rourkela”. The five variables as
reliability,responsiveness,empathy,tangibles,assurance were specified as the
independent variable. with output as the dependent variable. Preliminary analyses
were conducted to examine the assumptions underlying a regression model.

37
 Model Summary

Model R R Square Adjusted R Square Std. Error of the

Estimate

a
1 .749 .561 .551 .45392
a. Predictors: (Constant), assurance, empathy, reliability, tangibles, responsiveness

ANOVA

a
ANOVA

Model Sum of Squares df Mean Square F Sig.

b
Regression 58.923 5 11.785 57.195 .000

1 Residual 46.154 224 .206

Total 105.077 229

a. Dependent Variable: output

b. Predictors: (Constant), assurance, empathy, reliability, tangibles, responsiveness

38
Coefficients

a
Coefficients

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

(Constant) .138 .242 .573 .567

reliability .417 .061 .373 6.857 .000

responsiveness .318 .072 .321 4.429 .000
1
tangibles .188 .049 .237 3.807 .000

empathy .166 .048 .211 2.191 .049

assurance .128 .059 .209 2.483 .030

a. Dependent Variable: output

Therefore the estimated model is as below:

CUSTOMERSATISFACTION=

Constant(.138)+reliability(.417)+responsiveness(.318)+tangibles(.188)+empathy(.0
09)+assurance(.028)

39
 CHAPTER 7
FINDINGS & SUGGESTIONS

40
Finding of the Study

It has been found that Cronbach's alpha is 0.924.

Preliminary analyses were conducted to examine the assumptions underlying a regression model.
Test of Durbin-Watson valued to 1.788, as it lies within an acceptable range of 1.5 to 2.5, it was
assumed that multi co linearity considerations were met and we could analyze the data using
regression. The value of KMO and Bartlett‟s Test is .885
F-statistics (57.19) and the corresponding p-value which is highly significant (0.000) or lower than
the alpha value of 0.05. This indicates that the slope of the estimated linear regression model line is
not equal to zero confirming that there is linear relationship between the five predictor variables
reliability,responsiveness,assurance,empathy and tangibles in respect to customer satisfaction.

The important finding of our study is that ,in case of realibility,the customers are satisfied the
maximum considering the five factors of service quality model where beta value is maximum ie-
.373 but in case of assurance customers are least satisfied as the beta value is .209.The sequence of
satisfaction is responsiveness then tangibles then empathy.

Suggestions of the customers for improvement

• Some of the high category hotels don't have wi-fiwhich is a very important
facility today. So this must be introduced especially in the high category hotels.
• All the hotels in this category are not providing very good entertainment
services therefore these should be introduced. E.g. indoor games like pool, table
tennis, video games etc. and outdoor games like badminton, basketball etc.
• The high category hotels must introduce swimming pool and health club.
• The food should be paid special attention to by selecting good cooks and
having efficiently trained kitchen staff.
• Staff should smile and be polite while serving.
• Privilege discount card should be introduced.
The hotels should have reliable and dependable staff that is honest and diligent.
• More entertainment facilities should be introduced.
• The hotels must make promises which it knows it can easily achieve and
must perform all its services at the promised time.
• Some hotels lack in terms of the privacy they provide. Care should be taken
to make sure that the guests don't get disturbed and are given proper privacy.

41
• The staff should be kept aware about the latest developments in and around
the hotel so that they have enough knowledge to be able to answer their
guests' queries.
• The hotel staff should be regularly made to realize what the hotel's main aim is.
They must be told about the importance a customer holds for their hotel so that
the staff is more willing to serve the guests well.
• The food should be improved Care must be taken to avoid unnecessary delays
in delivering a service.
• The staff should be encouraged to serve with a smile and be polite with
the customers.
• The staff should be kept aware about the latest developments in and around the hotel
so that they have enough knowledge to be able to answer their guests' queries.

• The hotel should try and focus on the specific demands of its customers. This
will help it to differentiate itself from the others and will provide customers with
better satisfaction.
• More variety should be introduced in the food items

42
CHAPTER 8
CONCLUSION

43
CONCLUSION
The study concludes that the hotel industry of Rourkelais not performing as per the
customers' expectations on any of the service quality dimensions. There is a lot more that
the customers expect from the hotels. Since Rourkela is a major industrial city therefore it
must have good quality hotels. To improve their performance, the hotels need to focus
more on tangibles e.g. they must introduce wi-fi facility which is a necessity today,
swimming pool, health club, more entertainment facilities etc. Also they must have well
trained, groomed and reliable staff. This will help the hotels to to focus better on the other
dimensions. The hotel industry is witnessing a boom in Odisha in both the five star and
budget hotels. The state has emerged as a favourite

destination for visitors. Rourkela is emerging as one of the most preferred cities for the
hospitality industry. The arrival of big-ticket hotel brands (both luxury and budget) could
yield a slew of spin-off benefits for the city's hospitality fortunes, by improving the service
quality. And this may further spark a chain reaction for the present hospitality players to
improve upon their service quality. The important finding of our study is that ,in case of
realibility,the customers are satisfied the maximum considering the five factors of service
quality model where beta value is maximum ie-.373 but in case of assurance customers are
least satisfied as the beta value is .209.The sequence of satisfaction is responsiveness then
tangibles then empathy.From these findings we conclude that in terms of realiability the
hotels of Rourkela are in a good position when customer satisfaction is concerned.Hotels
of Rourkela have to concentrate on empathy as well as on assuranve because in terms of
assurance all the hotels of Rourkela have a poor rating.

44
 QUESTIONNAIRE

This survey is part of the research on the Service quality and customer satisfaction in the
hotel industry. Through this survey I wish to analyze these determinants from a customer’s
perspective. The survey is anonymous and all the information provided will be kept
confidential and will not be shared with any other party in any case. I greatly appreciated
your help for completing the survey!
DIMENSION QUESTIONS Strongly Agree Neutral Disagree Strongly
agree Disagree
5 4 3 2 1

Tangible The front desk was

visually appealing
The employees had
clean, neat uniforms
The restaurant‟s
atmosphere was
inviting
The hotel‟s interior
and exterior were
well maintained
The outdoor
surroundings were
visually attractive
Reliability My reservation was
handled efficiently
My guest room was
ready as promised
TV, radio, A/C,
lights, and other
mechanical
equipment worked
properly
I got what I paid for
The hotel provided a
safe environment

45
Responsive Employees responded
ness promptly to my
requests
Informative literature
about the hotel was
provided
Employees were
willing to answer my
questions
Employees responded
quickly to solve my
problems
Room service was
prompt
Assurance Employees knew
about local places of
interest
Employees treated me
with respect
Employees were
polite when
answering my
questions
The facilities were
conveniently located

Empathy Charges on my
account were clearly
explained
I received undivided
attention at the front
desk
Reservationists tried
to find out my

46
 particular needs
Employees
anticipated my needs
Overall I am satisfied with the
Aspect service quality

Suggestions:

47
LIST OF HOTELS IN ROURKELA USED FOR SURVEY PURPOSE

Mayfair Hotel

Hotel Anurag

Hotel Brindaban

Hotel Radhika regency

Hotel Regency Inn

Hotel Shubham

Hotel MN International

The Central Park

Hotel Aastha

Paantha Nivas

Hotel Solace

Hotel Sukhsagar

Hotel Steel City

Hotel Mantra Palace

Hotel Disha

48
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