Academic journal article International Research Journal of Arts and Humanities

Domestic or International Hotels: The Frontrunner of Service Innovation and Customer Choice in Pakistan

Academic journal article International Research Journal of Arts and Humanities

Domestic or International Hotels: The Frontrunner of Service Innovation and Customer Choice in Pakistan

Article excerpt

1. Introduction

Today, the era of intense competition creates a need for manufacturing as well as service organizations to cope with the hyper competitive business environment. The field of hospitality management also stipulates the hotels and restaurants to be more service innovator in order to create a center of attention for a larger share of its customers. Tourism and hotel service industry go side by side. A country having a larger number of tourists must have such type of hotels and restaurants which offer what exactly travelers want. Go and Heung (1995) point out the major and growing role of Asia Pacific in the world's economy. They further identify that this newly created prosperous travel market is expected to offer many opportunities in tourism.

Nature has gifted Pakistan with a bundle of tourist assets. These include mountains, deserts. Archeological sites etc. There is a great opportunity for Pakistan to fully utilize all these potentials by promoting tourism along with apposite accommodation facilities as well. Ministry of tourism Pakistan (2006-7) in a report provides the definition of hotel. "Hotel is an establishment engaged in providing lodging or both lodging and boarding facilities on hire". For five star hotels the definition is as: "There shall be at least 60 bedrooms. At least 20% of the bedrooms shall be single and 5% shall be suites.

Clean linen and curtains of high quality, together with pillows, bedding, blankets and bedcovers shall be supplied to each new guest otherwise change daily. There shall be a well equipped and furnished lounge or lobby, with a space proportionate to the number of the bedrooms, there shall be a well equipped and well stocked bar. A chemically treated swimming pool within the hotel premises with a filtration plant to serve the pool. There shall be at lease two restaurants, a dinning room and a round the clock coffee shop. There shall be sufficient parking space for at least 100 cars".

Hotel is one of building block of service sector which can tailor customized service by keeping itself more competitive in its respective industry. Salomon (1994) predicted the expulsion ofthat hotel which is not able to understand and congregate its customer' service standard, within the period of seven to nine year. The knack to satisfy the customers by providing a dining experience, comprising of both tangible and intangible elements and able to meet or exceed their expectations contain the secret of triumph of any food and beverage establishment (Parasuraman et al., 1985).

Customers are the more influential constituent of a society. They can be regarded as key driver of an economy. Barlow (1996) informed about the vital role of customer choice for hotels in the generation of revenues. By looking into customer perspective, it can be observed that they are also frequently bombarded with the offer of variety of products and services. It is very difficult to choose one best alternative, where every company is in the effort of grasping them by making believable or some times unbelievable claims. Customers never believe in claims, instead they believe in the actions of seller companies. It is the innovation which can hypnotize the customers by its magical influence.

The role of innovation in service is not a hidden aspect and is now overriding the other business sectors. However it cannot be denied that analysis in service innovation research is not enough in contrast with product innovation research (Chesbrough, 2004). By keeping this in mind it can be said that the changing business environment of world has implied the need for hotels to search for new ways to survive and succeed. A little competition can be a healthy thing. It can also be both lavish and appalling if a hotel is not up to par with is competitors or industry changing trends. In light of the existing discussion, this study investigates the choices made by customers regarding hotel selection.

On the basis of customer responses about the attributes of their host hotels the study also finds the service innovator between the two categories of hotels, international and domestic hotel category. …

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