An Analytical Study of Customer Satisfaction in Singapore's 5 Star Hotel: Case Study - Mandarin Oriental Hotel

1.0 Introduction

Customers are one of the important factors that contribute to the success of an organization, as they are the source of money that makes the profit for a firm. There is importance to undertake a feasibility study on a potential market and identify needs that customers have then produce goods and services that will derive satisfaction to the clients (Albayrak and Caber, 2013 p37). This helps create a high level of satisfaction among customers and increases the preference rate of a companys products and services from clients. The presence of many hotels offering the same type of services means that an organization needs to take special care so that they can provide special amenities that will make customers prefer demanding their services both in the short-term and in the long-term (Boella and Goss-Turner, 2013 p59). The idea is designing products that will attract the attention of clients while retaining it to engage in a long-term relationship that derives loyalty from the customers.

Singapore is among the most attractive tourist destinations in Asia where millions of people visit per year to have an experience of the services offered by the country (Ashrafi et al., 2013 p99). It has a functional hospitality industry that helps attract the attention of visitors who visit the nation due to the high level of services extended to clients. Management of every hotel understands that the key to having regular clients in each year in satisfying the demands and preferences of customers while making improvements to remain ahead of competitors. Rating of hotels in Singapore depends on the value, cost, and services offered to the public. The level of five-star hotels is one of the preferred services local and international customers prefer when visiting Singapore due to the high-level services they extend to their customers. It means that management of each hotel must engage with customers so that they can satisfy their expectations and if possible, surpass what they want (Karatepe and Demir, 2014 p42). It helps create a long-term relationship between a hotel and its customers.

Employees in a hotel are the main contact with customers and must understand that the service they extend to customers builds or breaks the potential relationship that would exist between clients and an organization (Ashrafi et al., 2013 p100). Understanding what customers need and deserve means that an organization is willing to go beyond their comfort and extend some convenience services and goods to the clients. On the other hand, maintaining high-quality services in five-star hotels is paramount as customers are optimistic about the management team as well as the employees who provide services to them. Every organization understands that treatment to customers is paramount as the clients communicate with their family, business partners, and friends on the quality of services they access from a hotel (Boella and Goss-Turner, 2013 p1). The management team in a hotel understands that word of mouth sells or breaks the reputation of a hotel affecting the number of customers that seek services of the firm. Hence, building on the customer services and improving quality enables a hotel to increase the probability of having a positive image in public. Customers must be comfortable, and their needs met so that they can leave a hotel satisfied. They can recommend the services to other people.

1.1 Background of Study

Various organizations engage in the provision of customer services to the public with the aim of creating the highest level of satisfaction and maintaining a professional relationship with the clients (Ashrafi et al., 2013 p108). The tourist industry is one of the sectors in the world that focus on customer service with the aim of creating an experience for clients who use the services of a hotel every tourist destination must have services that will help a customer feel they got the kind of treatment they expected in the beginning. Therefore, the management of an organization must be willing and ready to provide services to customers within the parameters that exist in the firm. Further, the scramble for customers in one local and regional market makes sure that hotels in different parts of the world are willing and able to go far so that they can attract and maintain customers within the organization (Boella and Goss-Turner, 2013 p66). This creates a high level of competition among hotels, as they need to make profits from the number of customers who visit the firm. Maintaining the relationship takes work from the management and employees in a firm, they must be willing to listen to the needs and preferences of customers so that they can design products and services that have high levels of satisfaction (Albayrak and Caber, 2013 p57). Singapore has various five-star hotels, which attract customers from different destinations in the world. It means that provision of services in the hotels is high as demand for services from the hotels are higher than the neighbouring countries. Competition from five-star hotels in the country has accounted for the improvement of services in various five-star hotels. The government and other stakeholders work with the management of five-star hotels in ways they can improve the quality services to customers and create a long-term relationship between the clients and an organization. The demand of services from Singapore's five-star hotels from both the region and other countries in the world means that the industry needs to improve the type of services they extend their customers (Ashrafi et al., 2013 p19). Reasons that address the customer satisfaction in a hotel include the experience created, quality of services offered, the response received after making complaints, pricing, and value, amongst others. Combines, these reasons help create brand loyalty and connection between employees and a hotel.

1.2 Significance: Theoretical

Different scholars have had interest in the topic of customer satisfaction derived from hotels in Singapore. This is not the first research study conducted in the country. Initial review of past literature reveals that the last study was conducted in 2016 and there is a gap between that year and the current one (Karatepe and Demir, 2014 p49). Therefore, gaps created by the research will be fulfilled by this research study.

1.3 Purpose of Study

As a researcher, one has high interests in understanding the prevalence of customer satisfaction among Singapore's five-star hotels and the extent to which this factor affects the reception from the potential public. The hospitality industry in Singapore has thrived in the past decade due to the high level of services hotels offer the public (Albayrak and Caber, 2013 p77). This means that the management team of an organization is willing and able to go a step further so that they can assure customers of commitment towards the improvement of services. Five-star operations have increased their clientele based due to the improvement of customer service in different firms. It has seen an increase in the number of customers visiting the five-star hotels each year while increasing the profits and sales realized from the industry (Boella and Goss-Turner, 2013 p88). Globalization has also motivated the Singapore five start hotels to improve the type of services they extend their customers since clients come from different nations in the world and have high expectations. Ease of travel across nations has made it possible for firms to target international clients. Maintaining interest of a client requires providing them with high-quality products and services (Law, Qi, and Buhalis, 2010 p84).

The study also seeks to understand the driving factors that lead customers to use the services of five-star hotels as opposed to other levels (Ashrafi et al., 2013 p19). For instance, having an understating of how customers fulfil their needs and how they can choose Singapore, as a destination will make it easy to comprehend the type of services extended to clients. Most probably, a narration of description of customer expectations when they seek services from five-star hotels in Singapore will offer more light (Boella and Goss-Turner, 2013 p9). It will make it easy to understand the power of choice that customers have and the effect on their preferences. Some of the factors and virtues that drive customers to seek services from Singapore's five-star hotels include quality of services and goods, customer service, value, and pricing. Some of the policies that guide the hotels include safety, honesty, and integrity. This is one of the marketing tools and objectives used by five-star hotels in the country (Law, Qi, and Buhalis, 2010 p86). Local and international customers prefer Singapore's five-star hotels due to the reception they receive from the firms and the ability to get value for their money.

1.4 Aims and Objectives

The aims and objectives provide the guiding basis for the researcher to attain at the end of the study. They highlight the important aspects of the study and enable the researcher to remain within the right parameters and framework. At the end of the study, the research reaches the set objectives satisfactorily. The following are the aims and objectives of the study respectively. This research aims to establish the level of customer satisfaction in Singapore's five-star hotels and find out the impact and implications on the tourist industry. So, the specific objectives of the study are:

To find out why most local and international visitors prefer using Singapore's five-star hotels

To investigate the type of services that derive high satisfaction levels among customers

1.4.1 Research Questions

The following research questions will guide the study, as their answers will provide the body of the paper:

Why do local and regional tourists prefer using services from Singapore's five-star hotels

What services derive satisfaction in Singapore's five-star hotels

What role do management and employees play in assuring satisfaction in five-star hotels?

1.5 Problem Statement

In the recent past, the hospitality industry in Singapore has gone through a transformation that has affected the number of customers streaming in the different level of hotels in the country (Albayrak and Caber, 2013 56). This has attracted the attention of the government and stakeholders in the industry that needs the information and data that justifies the positive developments. Understanding the positive changes that have taken place in the nation will enable the management of different hotels to adjust so that customers can continue using services from Singapore's five-star hotels. One of the problems that arise when defining customer satisfaction is defining the factors and activities that bring satisfaction to customers as well as their reception towards the services extended to them (Karatepe and Demir, 2014 p44).

1.6 Rationale and Justification of the Study

The reasons for carrying out this study include the need to establish the role that Singapore five star hotels play in the hospitality industry, as well as the convenience and satisfaction tourists, are based on the type of services they receive from the providers. There is also the use of incentives to attract customers, which most firms use as a marketing tool (Law, Qi, and Buhalis, 2010 p87). It will highlight the success of Singapore's five-star hotels. Singapore's five-star hotels penetration in the international market and the ability to maintain the lead among different hospitality industries in the world is made possible by its ability to p...