Service experience through the Eyes of Budget Hotel Guests: Do factors of importance influence performance dimensions?

Abstract

The aim of this study is to test the influence of dimensions of importance (expectations) in hotel services on performance (actual experience) within the context of budget hotels in China. A theoretical model and nine hypotheses are tested to indicate whether the dimensions of importance such as room service, room comfort and reservation process, have any impact on performance dimensions such as in-room dining, front office service, room amenities and hotel access and safety. A final model is proposed which reflects the relationship between the constructs. The study uses a survey and interview technique. Findings from the analysis of 355 respondents from budget hotels in the Hainan province of China suggest statistical significances in several areas of relationship between rating of importance by the budget hotel guests and performance dimensions. Overall, the results indicate a significant difference between expectations of the guests and actual experiences, thus highlighting managerial implications. The current study cannot claim to be wholly conclusive as it is limited to a small sample size from only one province of China and there could be subjectivity in responses. From a practitioner's perspective the study provides an opportunity to recognise features that are considered important by the guests staying in budget hotels in the Hainan Province, China and to identify the areas of disparity in service and product quality. Despite decades of research and abundance of published studies service quality still remains an important issue within the lodging industry. This study provides an opportunity for budget hotel management generally and China's budget hotel management specifically to understand which factors have a significant impact on hotel guests' importance ranking and performance dimensions to assess customer satisfaction. The study investigates service quality perceptions of budget hotel guests in China, an area where research is generally sparse within the context of Asia and almost non-existent within the context of China. From this perspective the study contributes to the service quality literature in the lodging industry specifically the budget hotels.