Influence Of Service Quality On Customer Retention In The Hotel Industry Of United Kingdom


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  • Level: High school
  • Pages: 49 / Words 12144
  • Paper Type: Dissertation
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Question :

This assessment will cover following questions:

  • Provide the in-depth understanding of the background of the Hyatt Hotel.
  • Hyatt Hotel is a luxurious hotel chain. Generate statement of purpose and statement of problems.
  • Summarise your findings and propose the dissertation structure.
Answer :
Organization Selected : Hyatt Hotel Corporation


1.Background To The Research

Customer retention is related to keeping the customers engaged while buying the products and availing the services of the company (Mahmoud, Hinson, R.E. and Adika, M.K., 2018). When the customers are highly satisfied then the company will be able to perform much better and the company comprise of various activities which are taken by it in order to keep the customers satisfied. Majorly there are various techniques which are used to keep the customers retained. It is also essential to map the customer journey which is not an easy task to do. That is why the company to take preventive measures in order to keep the customers retained in the company.

2. Organisational Background

The company considered for the research is Hyatt Hotel Corporation which is one of the leading hotels in the hospitality industry (Han and,2019). It is an American multinational hospitality company which is situated in the Riverside Plaza area of Chicago. Moreover, the first Hyatt house was started in the year of 1954 by Hyatt Robert von Dehn and Jack Dyer Crouch. It is one of the oldest brands in the company and it tends to provide the best services to its customers.

3. Significance Of The Problem

The research will be served as a base for the understanding the influence of service quality on the customer retention level in the chosen hotel in UK. As the services offered to the customers will directly impact the operations of the hotel (Darzi and Bhat, 2018). And also, the level of trust, satisfaction and loyalty of the customers towards company. The study will demonstrate the information about the benefits of customer retention for business performance of the chosen company. In relation to this there are various issues which are to be faced by the hotel while keeping the customer’s content.

4. Statement Of Purpose

The main goal of the research is to outline the impact of the customer retention and about the service quality in the hotel industry (Hanaysha, 2018). The study will also highlight the influence of service quality on customer retention within the chosen corporation. Moreover, the term customer’s retention allows the companies to attract the customers for the longer period of time in the company. It keeps the customers engaged in the company and the hotel industry also targets on providing the customers what they want and fulfil their level of expectation. The chosen hotel needs to enhance higher productivity in order to increase profitability and output. The hotel attracts more guests as a result of its reputation and image being enhanced.

These are all important advantages of customer retention that support a hotel's general effectiveness and performance and enhance its commercial performance for successfully achieving its goals. A range of strategies, such as client retention, can help the hotel enhance its financial performance in preparation for future expansion. It helps the hotel generate more revenue by bringing in more customers to use its amenities. Keeping customers is a key idea for earning better profits and have a good image in the market.

5. Statement Of The Problem

The research problem is related to the customer retention as in any company they are to invest in customers and it is one of the compulsory things to do in nay business. As per the market, it is not easy to build a strong brand and manage the resources properly. But customer retention is significant to boost the level of sales and that come direct from the customers. In order to increase customer satisfaction and their expectations of the services and products, service quality is essential in every business or organisation (Han, Jongsik and Hyun, 2020).there are poor service standards at the hotel, this could lead to a number of problems and challenges for the establishment. In the lack of quality services, hotels may experience serious problems with client retention, satisfaction, loyalty, and trust, all of which have an impact on the hotel's overall growth. In the lack of high-quality services, Hotel faces difficulties with both employee and customer retention.

The difficulties lead to a variety of problems at the hotel, which may have an impact on profits. In addition to this, the performance and reputation of the hotel, which are its principal faults, will suffer. The negative effects on the hotel as a whole and its operations are that productivity and profitability will suffer. The hotel is unable to give guests enjoyable experiences that would motivate them to stay at the Hyatt hotel without high-quality services. All of these challenges could have a negative and considerable impact on the hotel, which would harm both its overall growth and performance and profitability.

6. Aim And Objectives


To determine the influence of service quality on Customer retention in the Hotel Industry of United Kingdom. A study of Hyatt Hotels Corporation.


  • To develop basic understanding about the service quality and customer retention in context with the UK Hotel Industry
  • To evaluate the influence of service quality on customer retention within Hyatt Hotels Corporation
  • To determine the benefits of customer retention for business performance of Hyatt Hotels Corporation
  • To examine the challenges that would be faced by Hyatt Hotels Corporation in the absence of service quality

7. Research Questions

  • What is the concept of service quality and customer retention in context with the UK Hotel Industry?
  • How service quality has influenced on customer retention within Hyatt Hotels Corporation?
  • What are the advantages of customer retention for business performance of Hyatt Hotels Corporation?
  • What are the major challenges that Hyatt Hotels Corporation would be faced in the absence of service quality?

8. Dissertation Structure (Sign-Posting)

The research must be presented systematically, and it may be effectively described as an organised evaluation of the relevant field of study. The focus of current research often centres on the specific traits that contribute to the appropriate path. The following is a list of the many chapters that will be included in the dissertation:


This section of the study is highlighted as being critical since it is crucial for examining the numerous research ideas and for creating the context for the chosen topic. The main goals and purposes of the inquiry are outlined in this particular chapter. The breadth and value of the research, as well as its purpose, are often explained in the introduction chapter. This mostly focused on how an investigator might advance via knowing about exploration issue (Kim, 2019).

Literature Review

The second portion of the study, the literature review, highlights the key findings and provides a thorough explanation of the research problem. Examining and clarifying the research concerns and effectively achieving all objectives are the key aims of the literature review. Secondary data collection techniques, such as those from the internet, books, scholars, and journals, are more advantageous for gathering the data and information for a literature review.

Research Methodology

The dissertation chapter titled "Research Methodology" explains how to do research properly and methodically. It is a crucial component of the study since it includes a number of techniques and tools that are thought to be helpful in gathering and accurately analysing the data. Additionally, it aids in growing and bringing about beneficial results in relation to the particular subject area. When choosing a technique, one tends to get a thorough analysis that helps steer a particular study in the appropriate path. In order to address these issues, the research technique chapter includes sections on the research philosophy, research approach, research strategy, data collection method, sample, research limits, and ethical considerations (Adzoyi, Blomme and Honyenuga,2021).

Data Presentation and Analysis

It is one of the most important components of the study because it is here that the information most closely related to the objectives and questions is measured. In light of this, the primary approach of data collecting for the research will be the creation of a questionnaire. And the primary goal of this strategy, according to the timetable, is time and money savings. Because of this, the data will be analysed using the thematic analysis method, which leads to the development of charts, themes, and interpretation (Anwar and,2020).

Conclusion and Recommendations

One of the core parts of the investigation under which the conclusion is created in reference to the research aim and objectives is said to be this chapter of the study. Due to the constraints of the project's findings, this chapter will reflect on a summary of the entire undertaking in an effort to address the problems. Based on the assessment, recommendations will be developed.


The definition of a literature review is a critical analysis of secondary sources on a particular topic or issue. There are a few key sources of secondary data that the researcher will find useful in gathering secondary data related to the subject of choice. The research draws on a wide range of sources, including journals, books, articles, published studies, and many more. All are important and worthwhile resources for conducting research in order to successfully complete the dissertation's objectives. Additionally, the literature review's primary goal is to identify the gaps in the previous research (Fam and,2021). The primary gap in the current search is the presence of barriers, the necessity of offering solutions to improve client retention for the company's economic growth, and the importance of these factors. It can also be claimed that numerous data points about the subject of service quality and client retention are available from earlier studies.

To Develop Basic Understanding About The Service Quality And Customer Retention In Context With The UK Hotel Industry

As stated by Nusjirwan, Regen and Nardo, (2020), the businesses nowadays are getting more competitive and that is why the companies are to take care of their customers by maintaining the quality of the services. Under this the customers are taken care of by providing best services and it is defined as the ability of the company in relation to retain more customers. It is measured by the attracting new customers and in that process proper customer retention management plays an essential role. The main target of that management is to maintain the relations with the existing customers. Such retention will elevate the level of loyalty, confidence, new customers and ROI. For that the hotels can make a roadmap for the purpose of enhancing the future relationship. In relation to that companies ask for feedbacks from the customers in order to bring better changes. As the hotel cannot improve its services without understanding their customers that is why the company can ask for the feedback for the entire team and that feedback should be used by the company with the aim of bringing future improvements.

The hotels must keep a check on the customer experience as it will build the level of trust among the customers A company's ability to deliver both products and services that match customer expectations is measured by the quality of its services (Adzoyi, Blomme and Honyenuga,2018). As a result of helping to deliver the best services to customers, which can increase their attraction to the hotel's services, service quality plays a vital part in customer retention within the Hyatt Hotel Corporation. Customers are kept coming back by customer satisfaction, customer trust, customer commitment, customer retention, customer loyalty, and a host of other benefits that are connected to and contribute to service excellence. Service quality can impact customer retention by providing clients with services that adhere to their needs and preferences. Offering top-notch services will help Hyatt Hotel win over new

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