Introduction/ Rationale

Customer trueness is the chief signifier of success for all merchandise and service oriented concerns.

Without the client ‘s grantee ingestion of the goods and services, the long term success of the organisation is unsure. Hotel direction ‘s chief precedence is to accomplish client satisfaction by offering first-class service quality ; thereby client trueness can be achieved. Understanding client trueness and how to pull and prolong the bing clients is of import for the hotel in the long tally.ABC Hotel ‘s chief advantage is its location in the societal and commercial hub of Sri Lanka. Its chief attractive forces are for concern every bit good as touristry. The hotel has earned a 4 star evaluation due to its first-class merchandises and service quality offered.

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The hotel services offers assortment of services, activities and eating houses. Their client base was as followsaˆ¦Tourists ‘ reachings to Sri Lanka increased by 9 % this April in comparing to last twelvemonth ‘s April.Beginning: LankaNewspapers, 2005The month recorded 69,591 tourers geting in the state compared to the 63,835 arrived in April 2011.

Tourist reachings to Sri Lanka by state of Residence

Figure 1


% alteration




North America4276517721.1Western Europe326273649711.

9Eastern Europe5659695923.0Africa18634585.5Middle East2253387471.9East Asia7269928927.8South Asia17900192097.3Australasia388942138.

3Beginning: SL Tourism Development Authority, 2012TOTAL




The importance of turn toing this tropic is because at the terminal of the civil war in Sri Lanka, the per centum of tourer reachings is expected to increase with investings in the country of touristry and leisure. As a consequence, it is of important importance for the hotel direction to set their system to suit the lifting invitee reachings. Not merely that, they must besides place their demands and supply them so that their outlooks are fulfilled. If their demands are met, it is really likely that they would use the services of the hotel once more and moreover, urge the hotel to their household and friends. This signifier of viva-voce recommendation is most effectual manner of marketing the hotel.Previously the direction conducted a invitee study. Despite the positive consequences saying that the invitees were satisfied, the direction is still non convinced.

When asked what aspects they are satisfied or unsated, bulk of the invitees failed to supply feedback on that facet that picturing that the invitees want to project a positive feedback merely out of courtesy. This signifier of study is unequal as the direction needs to happen out what the invitees expect and their degree of outlooks. If they cater to this degree of sensed outlook, merely so the invitees will be satisfied and making this over clip will take to client trueness for the hotel.In add-on, the hotel ‘s direction failed to place the degree of loyal client every bit good as to what factors they are attached to the hotel.

It is critical for the direction to instantly place their current degree of frequent frequenters and compare the consequences over clip to make up one’s mind whether loyal client base has increased or decreased. If the client base has declined, the direction must carry on immediate stairss to place the jobs and supply an immediate solution to the job at manus. Furthermore, hotel ‘s direction must concentrate on edifice client dealingss. Bettering client dealingss will assist the hotel to increase gross revenues grosss by increasing the use degrees. Besides it helps to make a bond between the hotel and the invitee. This bond is invulnerable to rivals ‘ advertisement and fluctuations in procedure as they are loyal to the hotel trade name name and image.

Problem Statement

Investigating the causes for Lack of Customer Loyalty ; A Case Study on ABC Hotel, Sri Lanka.


To critically reexamine theoretical analysis about client trueness, client satisfaction, and service quality.To critically look into the causes for the deficiency of client trueness at ABC Hotel.To urge methods of prolonging and farther developing client trueness for the Hotel.

Overview of Literature

“ Both physical and service qualities of a hotel have positive impact on client satisfaction ” ( Ekinci et al. , 2008, cited in Ramanathan and Ramanathan, 2011, p.9 ) . Quality service must transcend client outlooks in order to be globally competitory ( Abdullah and Rozario, 2009 ) . Achieving first-class service quality and achieving client satisfaction are cardinal elements to be competitory in a service industry.

Variety of clients have different perceptual experiences on service quality, depending on the experiences and feelings they have gained to organize a judgement ( Abdullah and Rozario, 2009 ) . “ Quality plays a important function in finding and act uponing client satisfaction ( Abdullah and Rozario, 2009, p.185 ) .

Several properties such as “ cleanliness, security, value for money and courtesy from staff which will find client satisfaction ” ( Holjevac, Markovic and Raspor, no day of the month, no page ) . An betterment in the service quality will vouch client satisfaction. This alteration may run from the physical visual aspect of staff ( uniforms ) , suites and eating houses and installations available. But pulling clients is non sufficient to be successful in a competitory market such as the cordial reception industry.

Hotel directions must be able to foretell client demands and provide them in order to accomplish highest satisfaction. Dominici and Guzzo ( 2010 ) province that the usage of effectual policies on client satisfaction and trueness will enable the company to retain its bing clients. An addition in client trueness will take to an betterment of the company ‘s image ( Dominici and Guzzo, 2010 ) . A strong determiner of client satisfactions is service quality. Satisfaction degrees will depend on the quality of service offered to the invitees. Sidin, Rashid, Zainal ( 2001, p.

72 ) explains that “ hotel companies are progressively cognizant of the importance of quality and clearly use it in their advertizement and publicity to clients and in the criterions of public presentation set for their employees ” .Bowen and Chen ( 2001, p213 ) province that “ it is normally known that there is a positive relationship between client trueness and profitableness ” . This statement can be supported as a success of the organisation is based on the ability to pull and retain its clients ( Ramanathan and Ramanathan, 2011 ) . “ Customer trueness requires a strong desire by the clients for a merchandise and handiness of several merchandise sellers to take the merchandise based on his/her penchants ( Dick and Basu, 1994 ; Otim and Grover, 2006 cited in Ramanathan and Ramanathan, 2011, p.

7 ) . Ramanathan and Ramanathan ( 2011, p.7 ) describes positions on Nunes and Spelman ( 2008, citied in Ramanathan and Ramanathan, 2011, p.7 ) that since many people visit different topographic points and besides remain, these factors can be applied to the hotel industry. Management can place the clients who are attached to the hotel by the degree of services utilised and figure of merchandises purchased ( Rowley, 2008, p.

574 ) . Therefore “ client satisfaction and service quality are requirements of trueness ” ( Gremler and Brown, 1997, citied in Lee, Barker and Kandampully, 2003, p.424 ) . The hotel ‘s image will better when client satisfaction additions since it is the initial boot off to construct client trueness in a long term relationship ( Dominici and Guzzo, 2010 ) . Rowley ( 2005, p.574 ) states “ Lower client monetary value medium, decrease selling techniques in pulling new clients and improved organisational profitableness ” are some of the benefits organisations will accomplish one time they achieve client trueness.

Outlines of Methodology

The research attack been a instance survey while the research type been an exploratory survey. The writer expects to garner qualitative informations by agencies ofaˆ¦Primary data- Individual semi-structured interviewsSecondary data- Company one-year studies, books, diary articles, e-journal articles and web sitesThe writer ‘s trying attack will be the bing regular invitees who patronize the hotel as the information gather would be more precise and relevant to the research. The sampling technique would be non-probability and been purposive sampling.

The writer has decided a trying size of 10 invitees.