2. SERVQUAL report of Vugol Holidays (a travel agency)
Prepared for
Mirza Md. Didarul Alam
Assistant Professor
School Of Business
Prepared By
Name ID Serial No.
Hasan Al Banna 111 111 100 06
Thayef Ahmed Sunny 111 121 031 24
Aminul Islam Sohag 111 121 191
Fatema Begum Rimi 111 121 239 29
UNITED INTERNATIONAL UNIVERSITY
3. April 29, 2013
Letter of Transmittal
May 05, 2015
Mirza Md Didarul Alam
Assistant Professor
United International University
House#80, Road #8/A
Dhanmondi, Dhaka
Dear Sir:
Subject: Request to Accept the Report
It has been a great pleasure for us to submit the report “SERVQUAL of Vugol
Holidays (a travel agency)”. We have prepared this report as a requirement of the
course “Service Marketing” (course code: MKT - 4120)
We have worked hard to gather all the valid information for preparing the report
perfectly. In this report we have tried to show the service quality of Vugol Holidays.
We have learnt a lot while preparing this report which would help us in our future life.
We will be obliged, if you kindly accept this report. We are prepared and we will be
glad to answer questions, if you have any.
Sincerely,
Hasan Al Banna (111 111 100)
On behalf of the group
Section: C
Department: BBA
Semester: Spring-2015
4.
5. Acknowledgement
We would like to thank our course instructor Mirza Md. Didarul Alam for giving us
proper guidelines and suggestions for preparing this report. We have tried our level
best to complete the report as our instructor has instructed. We would like to thank
United International University for providing us the space where we have prepared
our report and also for the computer lab which helped us to browse internet and
gather information.
We would like to thank specially our Almighty Allah, for providing us with the
patience and knowledge to prepare the report and also our family members and
friends who supported throughout the whole report.
6. ExecutiveSummary
The report starts with the introduction of VUGOL HOLIDAYS its background with
history of the agency and with the history of the travel agency sector of Bangladesh..
VUGOL HOLIDAYS started its operation in Bangladesh in 2014. As we have done
this report of travel agency sector, we have also put some information of the travel
agency sector in Bangladesh.
Then we have introduced VUGOL HOLIDAYS’s products, services and its
operations. The travel agency sector in Bangladesh is creating a good help in the
economy of the country and through this, many educated person are getting good
jobs. No matter what degree one achieves, he/she can definitely do a job in any
agency. So travel agency sector has decreased the unemployment rate of
Bangladesh.
The report ends with the recommendation and conclusion part where we have
suggested VUGOL HOLIDAYS to do some social work and serve the society to get
to the hearts of Bangladeshi people.
7. Table of Contents
Executive Summary
CHAPTER 1
1.1 Introduction
1.2 Background of the study
1.3 Methodology of the study
1.4 Objective of the study
CHAPTER 2
2.1 Brief description about the Company:
2.2 Mission & Vision
CHAPTER 3
LITERATURE REVIEW
CHAPTER 4
4.1 T-Test
4.2 Gap Analysis
4.3 Correlation between the Dimensions
4.4 Regression Analysis
CHAPTER 5
Analysis
References
List of Figures
FIGURE 1.1 T-Test...............................................................................................13-15
FIGURE 1.2 Gap Analysis.........................................................................................15
FIGURE 1.3 Co-relation between the Dimensions....................................................16
FIGURE 1.4 Regression Analysis..............................................................................17
8. CHAPTER 1
1.1 Introduction
This introduction presents and overviews the focus of this research as well as why
this research is will investigate and study in terms of service quality of travel
agency. This part is therefore separated into three major sub-topics which represent
the background of study, service quality of travel agency and significant of study.
These main five components is really a key for measure the service quality of the
travel agency named Vugol Holidays.
1.2 Background of the study
SERVQUAL scale instrument has been use widely to measure in general service
industry, mainly in travel agency and its industry. The target place to
test SERVQUAL is in Bangladesh. In Bangladesh, several travel agencies got
broader development and represent an important intermediary within the travel
industry. The services of travel agent include a sales outlet of air carriers, hotels, car
rental firms, major attractions, event organizers and other travel suppliers; in addition
providing travel information, organizing tour packages, serving as middle men for
hotel booking, issuing air tickets and arranging car rental services (Sharpley, Travel
and Tourism, 2006).
Recent changes within the travel industry of Bangladesh have resulted in travel
agency business becoming increasingly competitive among the travel
agencies. Due to the fact that the shift is toward information technology, the travel
agent’s traditional roles as an intermediary has come under severe pressure and is
currently challenged to its existence. In addition, travel agents have faced difficult
time in recent years due to the increasing customer’s demands and internal
competitions are our research scope which we give questionnaire to their customers
who experienced with the service the particular travel agency provide because those
travel agencies got high customers demand and have lot of competitive advantages.
The user based view (customer perspective) of quality has been appealing in trying
to define quality in services. Both user based view of quality and service quality
connected each other because of the nature of service delivery itself. First the
increase of intangibility of service delivery mean that people or customer cannot
touch services but only can feel, remember in their minds. This measuring the quality
of services delivery as perception of the user is particular need for assessing the
quality of services (Schneider & White, 2004). The user based view has therefore
become the main approach to assessing quality in the services literature. In travel
agency service quality is must and with the high service quality of travel agency can
improve their market share and profitability (Todd & Rice, 2005).However service
quality level of existing services must be measured on customer perspective and
expectation by reliable and valid measurement tool.
9. Several studies have been conducted in an effort to clarify customer expectation and
preconception of product performance affect to clarify how customer expectation and
preconception of product performance affect the subsequent level of customer
satisfaction or dissatisfaction with actual performance (Kandampully, 2007)
SERVQUAL is instruments that develop by Parasuraman (1988) to measure service
quality in service organization. According to SERVQUAL service can be measure by
identifying gap between customer expectation toward the services and their
perception on service performance that given by services provider. If
expectation met or exceeded service quality will perceived to be satisfactory. This
SERVQUAL is initially based on ten dimension of service quality (Parasuraman,
1988)
These dimension were further collapsed in five generic dimensions, they were
tangibles, reliability, responsive, assurance and empathy (Parasuraman,
1988). Basically SERVQUAL is more focus on customer expectation. Customer
expectation is belief on service delivery that serves as standard of reference point
against which performance is judged. Knowing what the customer expects is the
first and possibly most critical step in delivering quality service. Being wrong about
what customer want and need can be fatal by losing a customer loyalty and cant
surviving in a fiercely competitive market. (Zeithaml, Bitner, & Gremler, 2009).
1.3 Methodology of the study
Types and sources of data:
The type of information is mainly the secondary data. The primary sources of the
data are different websites and also the official website of Vugol Holidays
(http://Vugol.com.bd/ ). We also gathered information from newspapers and journals.
We have worked hard to provide the latest news.
Data collection plan:
We have collected the data about SERVQUAL of Vugol Holidays by conducting a
survey. Our target customers were different people who travelled through Vugol
Holidays. Our sample size was 50. We designed a simple questioner.
Analysis plan:
We have analyzed the survey results by doing T-test using SPSS software.
1.4 Objective of the stydy
Broad objective : SERVQUAL report of Vugol Holidays (a travel agency)
Specific objective:
➢ To measure the customer expectation of the study
10. ➢ To measure the customer perception of the study
➢ To find out the gap between customer expectation and customer perception
➢ To measure the correlation among the dimension of the SERVQUAL model
➢ To find out the relationship among the dimensions and the customer
satisfaction (RA)
➢ To provide service guideline/suggestion/recommendation
CHAPTER 2
2.1 Brief description about the Company:
Management Team
An interesting feature of the management team of Vugol Holidays is their passion to
travel. All the team members have already finished discovering most parts of
Bangladesh, the most beautiful country of the world.
The Management of Vugol Holidays is advised by our honourable advisor Md.
Behroj Jalil Assistant Professor and Deputy Director, BBA Program (SoBE)
The Working Team Is Leaded by Mohammad Touhid Irfan with the Supporting of
Jubayer Hossain and Hosney Tonmoy Sunny at the major part.
Mohammad Touhid Irfan
Managing Partner & CEO
M: 01793 007 482
E: Irfan@Vugol.com.bd
Jubayer Hossain
Managing Partner & Head of Business Development
M: 01793 007 481
E: jubayer@Vugol.com.bd
Hosney Tonmoy Sunny
Managing Partner & Head of Operations
M: 01793 007 483
E: tonmoy@Vugol.com.bd
Md. Imran Hossain
11. In-Charge, Online Marketing
E: imran@Vugol.com.bd
Rabeya Islam
Senior Executive, Client Service
E: rabeya@Vugol.com.bd
Parisa Parveen Poroma
Senior Executive, Finance & Accounts
E: parisa@Vugol.com.bd
Farzana Rahman
In-Charge, Vugol Store
E: farzana@Vugol.com.bd
All the team members are very much dedicated and they try their best to satisfy the
clients and make their trip a memorable one.
The First Project:
‘A Team’ organized it’s maiden program “First Year Celebration of Sugandha
Campus” in 24 February of 2011.
It was a daylong program with the participation of 230 students in the auditorium of
the campus. It was a great success and the starting path of the ‘A Team’. The
program was guided by the “Gurus” of ‘A Team’. The event got a lot of praise from
UIU authorities.
Cox’s Bazar & St. Martin’s Island Trip in 2013
This trip was a huge success. Total number of participants were 90 including
faculties and their families. Managing a large group was a cumbersome task but we
did it in grand style. It was an awesome, fun-filled trip for all. The Gurus helped to
manage the whole trip by direct supervision and with ideas.
After completing the event, one of our Gurus Mr. Mohammad Behroz Jalil named the
team as “The A Team”. We then decided that we are going to move into tourism
business and started to plan. This trip marked the conceptual birth of Vugol Holidays.
Darjeeling and Kalimpong Tour 2014
For the first time in UIU’s history a group of students travelled outside Bangladesh. A
total of 54 participants joined the trip and the experience and enjoyment they got
12. were simply out of this world. Most participants later told us that it was the most
memorable trip of their life. This trip gave us more confidence to offer trips outside of
Bangladesh as well.
After the event we began to think about giving Vugol a professional structure. In the
long span of four years journey many of the ‘A Team’ members had become busy in
their professional and personal life. They could no longer manage time and effort on
a regular basis. On the other hand few new members began to work with The ‘A
Team’.
Finally in September 2014 Vugol Holidays was formed by three people:
Jubayer Hossain
Hosney Tonmoy Sunny
Mohammad Touhid Irfan
Mohammad Touhid Irfan was an Assistant Registrar of United International
University. He has a passion for travel and event management. He is the CEO of
Vugol Holidays.
Mohammad Behroz Jalil is the Honorary Advisor of Vugol Holidays.
A ‘Trade License’ was issued by the appropriate Government authority in favor of
Vugol Holidays to operate in the Tourism sector. In February 2015 Vugol Holidays
took rent of its office space in ‘Haque Chamber’ at Panthapath, Dhaka and started its
official journey.
2.2 Mission & Vision
Mission:
Vugol Holidays want to provide you a truly awesome and unforgettable holiday
experience. We’ll make sure that you will want to be on a Vugol Holiday trip again
and again.
Vision:
To become one of the top ten tour operators in Bangladesh.
13. CHAPTER 3
LITERATURE REVIEW
Problem statement two discuss approach and retrieval achieved of earlier research
from either within and overseas study that is being carried out. Besides that, problem
of study, objective of the study and research questions also would be performed
in this end of the chapter. In this chapter two bodies of literature are reviewed as
background for the two empirical studies presented in later chapters. The literature
on travel agency and its industry is explored first. This is followed by a discussion of
the service quality and SERVQUAL. The goal is to integrate these two domains to
examine what determines to measuring service quality of travel agency. Finally, the
literature on effort, the focal concept of this project is reviewed.
Every customer has their own perspective on the travel agents around the state or
country. To go further and based on the fact that customers value Bangladesh as a
travel destination but only on an importance of travel agency in the
satisfaction process. Furthermore due to travel agencies in Bangladesh background,
much evidences founded in tours of customers especially to go to travel is grounded
on high customer need. Finally from above reasons, to understand service quality
issues as well as understand customer perspective has intensified as a key success
factor for improving service quality. Understanding exactly what customers expect
and what customer’s perceived are the most crucial step in defining and delivering
high-quality service (Parasuraman,1988). Travel agencies in Bangladesh are
recognizes the quality as the business objective. The overall aim of this thesis is thus
to focus on quality in a service company as a case of travel agency in
Bangladesh. The problem statement is established in this research in terms of
“measuring service quality of travel agency in Bangladesh” from understanding of
customers‟ perspective. The better understanding of these phenomenon in tourism
service’s encounter as well as company itself are particularly important and will
permit the industry to better perform in high competitive market.
The integration of technology into our daily lives is transforming consumers' behavior
and social practices. The travel industry has seen this impact the business. Once,
the travel agent was the mediator between the consumer and travel suppliers such
as airlines and hotels, the travel consumer can now access these services directly
from a single laptop or mobile device or any other alternative media mass and
electronic source. The way the game is played has changed.
Each customer perspective toward service quality toward travel agencies is different,
is depend on how the travel agents serve it customer base on facilities and customer
service to please their customer. Basically in SERVQUAL there got 5 dimensions to
measure the service quality in travel agencies in Bangladesh they were tangible,
assurance, responsive, empathy and reliability. In this study we will try to prove
14. either the SERVQUAL can be reliable and valid tool to measure service quality in
hotel industry. Therefore, travel agents must understand what factor causes
customer to revisit and buy again then travel agents can act to build or enhanced
customer satisfaction. In additions, here want to study that to what extent customers
satisfaction had been practice in Bangladesh travel industry and how they measuring
service quality through customers perceptions, expectation.
CHAPTER 4
4.1 T-Test
Group Statistics
RES
ULT
N Mean
Std.
Deviation
Std. Error
Mean
Status
The agency provides
services at the time it
promises
1 50 4.3400 .62629 .08857 Significant
2 50 3.9800 .76904 .10876 Significant
The agency has
availability of sufficient
staffs
1 50 4.2600 .92162 .13034 Significant
2 50 3.8000 .98974 .13997 Significant
Employees have the
ability to inspire trust and
confidence in you
1 50 4.3600 .77618 .10977 Significant
2 50 3.6400 .96384 .13631 Significant
The agency staffs have
the reliability in handling
the your problem and
need
1 50 4.2400 .91607 .12955 Significant
2 50 3.7600 .95959 .13571 Significant
The procedures such for
admissions are faster and
easier
1 50 4.1200 .91785 .12980 Significant
2 50 3.1600 .99714 .14102 Significant
The agency providing a
prompt service without an
appointment
1 50 4.4600 .86213 .12192 Significant
2 50 4.0000 .92582 .13093 Significant
You are given adequate
information about your
needed information on
travelling area
1 50 3.9400 .91272 .12908 Significant
2 50 3.4800 .86284 .12202 Significant
The employees are
sympathetic and also
reassuring
1 50 4.5400 .73429 .10384 Significant
2 50 3.9800 1.02000 .14425 Significant
The agency providing 1 50 4.0600 .97750 .13824 Significant
15. emphasized travel
packages and prices
2 50 3.4600 1.14660 .16215 Significant
The staffs perform the
service right on the time
1 50 4.3600 .63116 .08926 Significant
2 50 3.8400 .86567 .12242 Significant
The staffs are ensuring
the maintenance of client
confidentiality
1 50 4.3800 1.02798 .14538 Significant
2 50 4.4600 .83812 .11853 Significant
You are feel confidence
and trust in the
information given by the
agent
1 50 3.9000 1.01519 .14357 Significant
2 50 3.7000 .93131 .13171 Significant
You feel safe in
interacting with
employees
1 50 4.0800 .85332 .12068 Significant
2 50 3.3200 1.01900 .14411 Significant
The staffs are never
hesitating to give
personal attention
1 50 4.2400 .77090 .10902 Significant
2 50 3.7400 .80331 .11361 Significant
The staffs are
consistently courteous
1 50 4.1400 .83324 .11784 Significant
2 50 3.7200 .90441 .12790 Significant
The staffs respond to
requests without any
excuses
1 50 3.9800 .93656 .13245 Significant
2 50 3.3800 1.04764 .14816 Significant
The staffs have your best
interest in heart
1 50 4.2200 .86402 .12219 Significant
2 50 3.3800 1.17612 .16633 Significant
The staffs understand
your specific needs
1 50 4.2000 .83299 .11780 Significant
2 50 3.8400 .61809 .08741 Significant
The agency staffs such
as receptionist are
disciplined
1 50 4.4200 .75835 .10725 Significant
2 50 3.9200 1.02698 .14524 Significant
The materials and
brochures are visually
appealing in the agency
1 50 4.3800 .60238 .08519 Significant
2 50 3.7800 .76372 .10801 Significant
The materials and
brochures are visually
appealing in the agency
1 50 4.1000 .93131 .13171 Significant
2 50 3.8200 .87342 .12352 Significant
The physical facilities are
visually attractive &
comfortable
1 50 4.3200 .68333 .09664 Significant
2 50 3.9400 .91272 .12908 Significant
16. Overall Satisfaction
1 50 . . . Significant
2 50 4.0600 .73983 .10463 Significant
GENDER
1 8 1.2500 .46291 .16366 Significant
2 42 1.3095 .46790 .07220 Significant
AGE
1 8 2.2500 .46291 .16366 Significant
2 42 2.0714 .26066 .04022 Significant
EDUCATION
1 8 1.5000 .92582 .32733 Significant
2 42 1.3571 .61768 .09531 Significant
OCCUPATION
1 8 2.5000 .92582 .32733 Significant
2 42 2.1429 .60773 .09378 Significant
FIGURE 1.1 T-Test
4.2 Gap Analysis
Serial
No.
Dimension
Perceptio
n
Expectatio
n
Gap
01 RELIABILITY 3.668
4.264
-
0.596
02
RESPONSIVENES
S
3.73 4.25 -0.52
03 ASSURANCE 3.83 4.18 -0.35
04 EMPATHY 3.612 4.156
-
0.544
05 TANGIBILITY 3.865 4.305 -0.44
FIGURE 1.2 Gap Analysis
In here we can see, the most gap is in the reliability dimension which is -0.596. The
second most gap is in the empathy dimension which is -0.544. The third most gap is
in the responsiveness dimension that is -0.52. The fourth most gap is in the
tangibility dimension which is -0.44. And the dimension with the least gap is
assurance and the gap is -0.35
17. 4.3 Co-relation between the Dimensions
Rel Res Ass Emp Tan
Pearson
Correlation
1 .628** .696** .309* .345*
Sig. (2-tailed) .000 .000 .029 .014
N 50 50 50 50 50
Pearson
Correlation
.628** 1 .793** .252 .093
Sig. (2-tailed) .000 .000 .077 .520
N 50 50 50 50 50
Pearson
Correlation
.696** .793** 1 .454** .318*
Sig. (2-tailed) .000 .000 .001 .024
N 50 50 50 50 50
Pearson
Correlation
.309* .252 .454** 1 .408**
Sig. (2-tailed) .029 .077 .001 .003
N 50 50 50 50 50
Pearson
Correlation
.345* .093 .318* .408** 1
Sig. (2-tailed) .014 .520 .024 .003
N 50 50 50 50 50
**. Correlation is significant at the 0.01 level (2-
tailed).
18. *. Correlation is significant at the 0.05 level (2-
tailed).
FIGURE 1.3 Co-relation between the Dimensions
4.4 Regression Analysis
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients t Sig.
B Std. Error Beta
1 (Constant) 1.234 .665 1.854 .070
Rel .431 .166 .420 2.598 .013
Res .095 .193 .096 .491 .626
Ass -.417 .239 -.385 -1.744 .088
Emp .029 .171 .022 .168 .868
Tan .617 .143 .561 4.302 .000
a. Dependent Variable: Overall Satisfaction
FIGURE 1.4 Regression Analysis
CHAPTER 5
Analysis
The above regression analysis represents how the independent variables (Constant)
affect the dependent variable, which is overall satisfaction. From the table it can be
seen that Reliability (β = .420, 0.13) and tangibility (β = .561, .000) are the only two
variable which are accepted as their significance value is lower compared to the
significant level of 5% (0.05). Therefore it can be suggested that reliability and
tangibility effect the overall satisfaction. The positive beta value further suggests that
there is a positive relation between the independent and dependent variables. In
19. other words consumers who find Vugol Holidays to be reliable and tangible, those
consumers will tend to have a higher level of overall satisfaction.
References
1. Sharpley, Travel and Tourism, 2006
2. http://Vugol.com.bd/
3. Todd & Rice, 2005
4. Kandampully, 2007
5. Parasuraman, 1988
6. Zeithaml, Bitner, & Gremler, 2009
7. Schneider & White, 2004
