Project Classique

I. iiib1
PROJECT REPORT
On
CUSTOMER SATISFACTION SURVEY
Of
HOTEL CLASSIQUE
Prepared by:
DHORDA KRUPALY BIPINCHANDRA
Registration number:
201314955
Under guidance of:
Jay Jagnani
Managing Director (Hotel Classique)
SYMBIOSIS CENTRE FOR DISTANCE LEARNING
(SCDL)
Academic year:
2013

2
INTRODUCTION
TO
CUSTOMER SATISFACTION

3
Chapter 1
INTRODUCTION
Chapter one is an introduction to the thesis. Under this chapter, background, problem
statement and motivation are presented, as followings.
Background
Customer satisfaction and expectation are altering in today‟s world, in the hotel industry.
Many of the hotel industries have lost track of the true needs and wants of their customer.
Some hotels think about customer needs from their perspective so their immediate focus is on
cost reduction in driving hotel product and keeping customer at the least priority. But in fact
customer should not be ignored. The hotel business must aim at fulfilling the individual
customer needs or even reaching beyond these.
The goal of Service Company including service industries is to develop services which attract
and keep customers who are satisfied. It should be observed that retention of the existing
customer is much cheaper to acquire a new customer. Organization and companies should also
notice that they will be more successful if they concentrate on acquiring and sustaining a share
of each customer rather than a share of the entire market.
This research therefore aimed at studying customer satisfaction on hotel services of Classique
hotel, Rajkot, Gujarat as a survey on customer satisfaction.

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Problem statement
Particularity of a business services is differing from general goods production. Because,
services are intangibility, abstract, invisible, no appearance and intangible then the risk
buying.
Variability and heterogeneity depends on efficiency of employee service. The way for
servicing and placing for customer are inseparability production and consume that would be
offered for sale, then production and consume will be happened in time. Therefore business
services are differing from general goods for sale. Hotel industries are one of the most critical
service companies. Focusing at hotel Classique, the research is conducted because the hotel is
suffering from intense competition on its local market.
Motivation
I believe we all are customer, customer of hundreds and thousands of businesses, but we
usually have only one business. We deal with many different kind of business, to provide our
needs and wants; it could be buying mineral water bottle from supermarket to pleasure
services which may not be a necessity in our daily life. Facing all the above business
frequently or occasionally we, as a customer, want to be satisfied from the products delivered
or services offered, also hotel industry is no exception.
I had observed that Hotel Classique, a three star hotel; where I had been taken training, had
ever lost market share when having high competition with other three star hotels in Rajkot.
Especially, the competition was heavily taken place in hotel services. The customer might not
satisfy on our services. It was, therefore, motivated me to study in customers‟ satisfaction on
hotel services by using Hotel Classique as survey study

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Introduction to Hotel Classique
Hotel profile:
1. NAME OF UNIT : Viral Hospitality Pvt. Ltd.
2. ESTABLISHMENT YEAR : 2012
3. TOTAL NO OF EMPLOYEES : 20
4. ACCOUNTING YEAR : April to March
5. WORKING HOURS : 10.00 A.M. to 12.00 A.M.
6. NAME OF PROMOTER : Mr Raj Bhalodiya
7. ADDRESS : 7th
floor, Sudarshan Commercial
Centre, limda chowk,
Rajkot -360001,
Gujarat.
8. WEBSITE : www.hotelclassique.in
9. PHONE NO. : +91-281-2450392, 2450393
10. SIGN :
11. COMPETITORS : Hotel Jayson, Hotel Grandson
12. FORM OF THE ORGNISATION : Partnership firm

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13. LOCATION & LOCATION CHART
Selection of location is very important factor for any business unit, because once it has been
selected, it cannot be change easily. The business in suitable area or a production in
“commercial Estate” is very useful tool for producers or industry to increase profitability or
decrease cost of production.
One of the expert in this field remarks, “The location of plant should be field in such a manner
that people interested in this success, can sell goods most profitability and manufacture with
least expenditure.”
Conveniently located on Rajkot‟s busy commercial hub, Hotel Classique is one of the most
euphonious hotel of Rajkot which makes ideal choice for businessmen and for business trip
tourists. It is located only 2 kilometres from domestic airport, 2 kilometres from railway
station and 1 kilometre from state transportation station. Location chart is as follows:

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14. ENTRANCE GATE
15. COMMERCIAL COMPLEX

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16. ROOMS
Comfort
9 comfort rooms with 14 x 12 sq. ft. in stylish decoration and well furnished. Each room
features with luxurious attached bathroom.
Semi Deluxe
8 semi deluxe rooms with 18 x 16 sq. ft. with stylish decoration and well furnished. Each
room features with large luggage desk, luxurious bathroom, DVD player and awesome views
from top floor.
Deluxe
9 super deluxe rooms with 18 x 16 sq. ft. In unique style interior , plus features from semi
and comfort rooms are working desk, super city views from top most floor and comfortable
armchair.
Clubs
5 honeymoon suits (club) with 20 x 20 sq.
ft. with well furnished. Each room plus
features from the above mentioned types of
rooms are large king size bed with full
amenities and is an ideal choice with superior
romantic ambience.

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17. FACALITIES AND SERVICES IN ROOM AMENITIES
1. Two double size (4.5‟) beds or one king size(6.5‟) bed
2. Self control air-conditioning.
3. Private IDD telephone.
4. Flat screen TV with UBC and satellite with international channels.
5. Complimentary safety box.
6. Complimentary commercial meeting kits.
7. 24 hours room service
8. Bathroom with separate walk in shower.
9. Full bathroom amenities

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18. HOTEL SERVICES
 Dining
Swad Sangam Restuarant offers all day dining experience for breakfast, lunch, dinner and
deserts. Swad Sangam lets you create your experience by choosing your own combination of
ambience & flavors.
You can decide your menu from the large variety of local and continental dishes and
selection offers an impressive assortment mouth-watering gastronomy in a refined and
appetizing manner. It offers you best of the both the worlds as they are serving authentic
Gujarati thali for lunch and delicious multi cuisine dishes for dinners.

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Other services offered by hotel are mentioned below:
1. Board room
2. Meeting facilities
3. Business centre
4. Laundry service
5. Medical service on calling
6. Travel assistance
7. Well appointed air-conditioned guest rooms
8. Waiting lounge with tranquil environment
9. Round the clock room service
10.Covered car parking
11.Sitting area on top most floor with 180 degree excellent
city view
12.Overhead projector
13.Slide projector
14.Laser pointer
15.White board
16.Conference kits (pad, pencil, pen)

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19. PROJECT COST
Liabilities Assets
Particulars Rs. Particulars Rs.
Capital 1,00,000 Land & Building 8,12,55,000
Reserves &
Surplus
10,96,19,138
Furniture &
Fixtures
1,25,65,450
Computer &
Peripherals
1,52,000
Current
Liabilities
2,95,568
Other
Equipments
1,56,25,000
Vehicles 62,000
Current Assets 3,55,256
Total 11,00,14,706 Total 11,00,14,706
Table 1 showing project cost of hotel

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CChhaapptteerr 22
OBJECTIVES
The general objective of this research is to study the customers‟ satisfaction on hotel services
of Classique which is fundamental notion of CRM. The specific objectives are as followings:
 To study and increase customer satisfaction percentage.
 For better utilization of resources.
 To maintain customer loyalty.
 To know customer retention.
 To know the customers‟ decision on service provided.
 To increase profitability ratio.
 To understand human resource performance.
 To identify comparative pricing.
We shall understand below mention objectives in detail:
1. To study customer relationship management
2. To improve performance appraisal system
3. To asses customers‟ expectation and perception level towards service
quality.
4. To understand zone of tolerance of service expectations
5. Understanding the essence of emotional intelligence
6. Realize the importance of interpersonal skills

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1.To Study Customer Relationship Management
First objective is to get study importance of customer relationship management. Customer
Relationship Management is the process of carefully managing details information about the
individual consumer and all customer Touch-Points to maximize customer loyalty. A
customer touch point is any occasion on which a customer encounters the brand and product
from actual experience to the personal or mass communication to casual observation. For a
hotel, the touch points include reservation, check-in and check-out; frequently stay programs,
room services, business services, Landry services.etc.
CRM is a disciplined business strategy to create and sustain long-term, profitable customer
relationships. CRM means different things to different people, even three letter abbreviation
CRM has not a unique clarification and understanding , must know CRM as the abbreviation
for customer relationship management come as customer relationship marketing, and other
believe that all customers don‟t want a relationship management ,while another group might
use the term relationship marketing. Based on their opinion whatever the CRM abbreviation is
expressed it is clear customer focus business practice (buttle 2004;park &kim 2003).
There are three stages in the evolution of CRM. The first two stages are based on person- to-
person view point of CRM; the third stage which is based on the person-to-organization view
point is called ubiquitous organization. A iniquitous organization has two attributes; first, time
and location independence and second, immediacy or being instantaneous
The emphasis in the first two stages is primarily on service design and more specifically on
service customization (personalization) and differential pricing, while in the third stage it is
organization and process design to offer the customer ubiquitous access and immediacy. Here
the CRM evolutions stages at are discussed as follows:

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Stage 1: Known as 100 percent focus on customer. (Figure 1) The core idea is that information
and communication technology should be used first to customize the relationship with the
customer and then expand the organizational response to customer needs. The adequate result
of implementing the first stage of CRM is that it expands the scopes of attention to customer.
Figure 1 core CRM concept 100% focus on the customer
Stage 2: known as 360 degrees view of customer. (Figure 2)The core behind this model is that
superior market performance is the result of superior skills in understanding the customer.
This stage is enhancement of the first stage by including technologies supporting customer
buying patterns and price differentiation. Differentiation in service allows for differentiation in
prices which increase the profit margin.
CustomerDepartment 1
Department 2
Department 3
Department 4
Department 5

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Figure 2 core CRM concept 360 degree view of customer
Stage 3: will help us to understand about how companies and organization ensures that the
services are relevant to the customer, solved in a timely manner, and on demand.
These three stages indicated the importance of customer and this is how the suggestion given
by those from questionnaire were taken into consideration.
Customer
At 360
Degree
View
Department
1
Department
2
Department
3
Department
4
Department
5

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2.To Improve Performance Appraisal System
Second objective is to understand how to improve the performance appraisal system
Performance appraisal means person‟s performance in the company. Once the employees have
been selected trained and motivated, he is then appraisal for his performance. Performance
appraisal is the step were the management finds out how effective it has been at hiring and
placing employee.
A performance appraisal consists of evaluating an employee‟s performance of job in terms of
a job and in terms of its recruitment. HOTEL CLASSIQUE considers its employees as its
most valuable and therefore it believes in perfect and accurate performance appraisal system.
They believe that employee‟s efficiency, productivity and great performance is a ladder to
success. With the help of survey questionnaire and the answer received by respondents‟,
analysing the performance appraisal system became easy.
If it has been found below expectation then necessary improvement and changes can be made
to reach towards expected performance from customer view point. Thus the view point given
by respondent for welcome gestures and friendliness of hotel employees can be known which
also helps in understanding performance appraisal system.

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3.To Assess Customers’ Expectation And Perception Level
towards service quality
Third objective helps in assessing the customers‟ expectation level towards the service offered
by the hotel industries and hereby helps in acquiring the perception level from the respondent.
In this study “Expectation” is termed as the main determinants of satisfaction. Expectation
have been found to directly affect satisfaction ( Reisig & Chandek 2001 )
Different customers have different expectation, based on the customer knowledge of the
service, a customer may estimate what the performance will be or may think what the
performance ought to be. It identifies personal needs, past experience, word of mouth
communication, recommendations and perception of the alternative services that are available
to customer, as a significant determinants of service expectation. Another potential
determinant is situation factors which are if course beyond the service provider‟s control.
The awareness of customers to situational factors will make them more understanding of the
factors that are indirectly affecting the service quality and performance and thus will widen
their expectations zone of tolerance. This is one of the main aspect that should be considered
to study service quality and performance in the hotel industry of Classique which many
situational factors like political, social, cultural government regulations are affecting the
service industry.
(McQuity, Finn and Wiley 2000) discuss an interesting topic that has rarely been studied in the
marketing literature. They argue that expectations may vary. The degree which customer adjust
their expectation to meet the perceived performance of the service can be influenced by the
variability of the service performance, the degree of involvement with the service and the
perfection and accuracy of the information that forms expectations. Figure 3 shows how
customer satisfaction is based on the quality of the performance in hotel service cost of the

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service with the value of money and their delivery service reflects their satisfaction level
through survey.
Figure 3 showing relationship of customer satisfaction
on quality, delivery & cost

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4.To Understand Zone Of Tolerance Of Service Expectations
From the above mentioned objective, we came to know the importance of customer
expectation and related to that topic zone of tolerance also relate to the service expectation.
(Parasuaman) Customer have range of expectations rather than having a single ideal level of
expectation. Parasuraman names this level the “zone of tolerance” which is bounded by the
service level that customers believe that should and can be delivered (desired service) and the
service level which customers are ready to accept(adequate service).
If the perceived performance of the service falls within the zone, customer will be satisfied. If
the service is better than their desired service level, customers will perceive the service s
excellently good and will be delighted. On the other hand if the service falls below the
adequate level of the zone of tolerance, customer will be dissatisfied and consequently will
look elsewhere for the same service
As mentioned previously in this section different customers have different expectation, thus
zone of tolerance may vary across customer which means reflection different priorities in their
service expectations and also across occasions or overall situations which means reflecting
different potential drivers of expectation at performance. In this way survey can take
important part in identifying expectation level of different customer.

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5.Understanding The Essence Of Emotional Intelligence
After understanding expectations levels and satisfaction levels, next objective confronted is to
understand the essence of emotional intelligence. We can come to know the interaction level
between the customer and staff members in the hotel industry. We may look at the visit of a
customer to the hotel as a project i.e. it is unique, temporary, and evolving.
Emotional Intelligence (EI) is a key determinant in guarantying a project‟s success. In such an
environment, it is not surprising to see that the hotel personnel with higher EI easily surpass
many of their senior Colleagues. Also, in the hotel environment, the total experience of the
customer is directly affected by the team work of all concerned. To repeat, people skills are at
the heart of customer satisfaction.
The journey of EI commences with discovering more about ourselves, understanding emotions
of others, and realizing their impact in the work environment. Organizational success is
heavily dependent on ability to create an Emotionally Intelligent work environment. In era of
rapid change and high competition, Emotionally Intelligent workforce is the most valuable
asset of any organization.

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6.Realize The Importance Of Interpersonal Skills through training
and development
On the basis of survey conducted in hotel industry, satisfaction level highlights the weakness
in the performance of providing services. Interpersonal Skills used by hotel industries may not
be sufficient to fulfil the expected level of satisfaction of their customer. Training can be
offered as and when require which ultimately helps in rectifying the points which proved to be
unsuccessful in satisfying needs of the customer.
Training is short term process utilizing a systematic and organized procedure by which non-
managerial personnel learn technical knowledge and skills for a definite purpose and on the
other hand Development is a long term educational process utilizing a systematic and
organized procedure by which managerial personnel learn conceptual and theoretical
knowledge for general purpose.
The managing the training and development programme for improvement in interpersonal
skill reflects dynamic life giving element in hotel industry. The calibre and performance of the
manager will largely determine the success of any service industry.
Scopes
1. How to Satisfy the Customer‟s needs?
2. How to hold the customers & retain them?
3. How to maintain the Customer loyalty?

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THEORETICAL
PERSPECTIVE
Disconfirmation theory
Decribing satisfaction formation
Systematiclly varying customer satisfaction

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Chapter 3
THEORETICAL PERSPECTIVE
In this section the theory which is based on disconfirmation theory, describing satisfaction
formation and systematically varying customer satisfaction.
3.1. Disconfirmation Theory
In marketing literature the process of satisfaction formation has been examined using
behavioral theories, initially based on expectation disconfirmation, which focused on customer
satisfaction with physical products and services. In recent studies besides expectation
disconfirmation, desired disconfirmation was taken into consideration too.
Disconfirmation theory declares that satisfaction is mainly defined by the gap between
perceived performance, expectations and desire which is promising approach to explain
satisfaction. As mentioned above, earlier studies expectation as the only determinant of
disconfirmation but recent studies also look into desires.
This theory proposes that satisfaction is affected by the intensity (or size) and direction
(positive or negative) of the gap (disconfirmation) between expectations and perceived
performance.

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Figure 4 showing expectation disconfirmation theory
Satisfaction
Perceived
Performance
Expectation
Disconfirmation

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3.2 Describing Satisfaction Formation
The dominant model of customer satisfaction formation is the expectation disconfirmation
theory. Customer satisfaction is “the collective outcome of the customer‟s perception,
evaluation, and psychological reaction to the consumption experience with the product or
service “. It leads to repeat purchase, loyalty, positive word of mouth, and increased long term
profitability for the organization.
Expectations are formed by personal experience and understanding of environment, taking
into account practical feasibility based on expectancy theory. Perceived performance is a
relatively less influenced estimation of the performance based on objective judgments rather
than emotional reaction.
Expectation disconfirmation occurs in three forms:
1. Positive disconfirmation: occurs when perceived performance exceeds expectation.
2. Confirmation : occurs when perceived performance meets expectation
3. Negative disconfirmation: occurs when perceived performance does not meet and is
less than the expectation.
It is more probable for customer to be satisfied if the service performance meets
(confirmation) or exceeds (positive disconfirmation) their expectations. On the contrary
customers are more likely to be dissatisfied if the service performance is less than what
they expected ( negative confirmation).
(khalifa & liu 2003) discuss that taking expectation disconfirmation as the only
determinant of satisfaction; this theory does not cause the fact that if high expectation are
confirmed, it would much more lead to satisfaction than confirmation of low expectation.
To resolve drawback perceived performance is included as an additional determinant of
satisfaction. In other words the only way to really ensure satisfaction is to empirically
create disconfirmation by manipulation expectations and performance

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3.3 Systematically Varying Customer Satisfaction
(McQuity, finn and wiley 2000) declare that if the best predictor for customer satisfaction is
the gap between expectations and perceived performance, then as this gap reduces over
repeated product or services consumption a customers‟ satisfaction should change
respectively.
If the gap does not decrease over repeated consumption, then it would imply that the customer
has not learned anything from previous experience. When a gap exists between expectation
and perceived performance of the customer satisfaction may change with the amount of
product or service experiences in a predictable behavior.
Researcher should consider the systematically variation of customer satisfaction over time.
The most important implication is that systematic variations in customer satisfaction can help
explain changes in product or services choice, based on an initial degree of satisfaction and its
rage of change.
“Such explanatory power provides a powerful tool for those interested in employing customer
satisfaction as a predictor or profit, choice, repurchase behavior or market share”. Satisfaction
may change over time: the concept that the degree of disconfirmation felt by a customer
should reduce over time recognizes that customer will learn as they gain experience and
become familiar with the product or service and should modify the expectations respectively.
Service companies with excellent service delivery have customers with very high expectations
and raising demands, which can put considerable pressure on the service company, in the case
of hotel companies the pressure is mostly on the operation staff.

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METHODOLOGY
AND
PROCEDURE OF WORK

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Chapter 4
METHODOLOGY AND PROCEDURE OF WORK
This chapter discusses the research methodology including explanation about survey,
population and sample, research instrument, statistics applied in analyzing the data.

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Research design
This research is quantitative research that will be done by the survey of customer satisfaction
on the Hotel Classique, Rajkot, Gujarat.
In order to obtain data for the calculation of explicit and implicit importance, as well as the
level of customer satisfaction this study used questionnaires as a tool to get responses from the
subjects. The questionnaires were sent to their room upon arrivals, or sometimes personal visit
to hotel to get exact data, to rate the performance of the proposed quality attribute after their
make use of the services in hotel, and also rating, in multiple items.
Population and sample
It was estimated that the Hotel Classique had about 100 persons of monthly customers.
Therefore, this about of customer was considered as a population of the research. Therefore
only 55 questionnaires were randomly as sample of this research.
Data collection
Primary Data:
It consists of information collected for the specific purpose, survey research was used and all
the details of hotel customers were contacted. Survey research is the approached gathering
description and information.

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Secondary Data:
The secondary data consists of information that already existing somewhere having been
collected for another purpose. Any researcher begins the research work by first going through
secondary data. Secondary data includes the information available with company. It may be the
findings of research previously done in the field. Secondary data can also be collected from the
magazines, news papers, internet other service conducted by researchers.
Research instrument
This research used the questionnaires as an instrument in studying the customers‟ satisfaction.
The study includes in it the data collected through primary sources. Primary data is collected
with the help of structured questionnaire and personal meeting. Questionnaire is administered
on the sample respondents. However there were certain cases where personal interactive
method is followed with customers to find the satisfaction level.
These Questionnaires comprised total 11 questions, out of which 8th
question is of multiple
choice question with four options and last question is open ended option in which respondent
have to specify something of their choice from the options given to them, 10th
question is of
Multiple choice question, 11th
question comprises of free response category of open ended
question on suggestion given by the customers who answered the questionnaire and rest of the
questions were close ended question.
Measurement
Level of customers’ satisfaction has been measured by 1-3 level:
1. Excellent
2. Average
3. Poor

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Whereas, average of rating score had given below:
 Average mean score between 1.00-2.50 excellent
 Average mean score between 2.50-4.00 good
 Average mean score between 4.00-5.50 fair
Statistical analysis
There are two sections of statistical analysis.
 Chi-square test
 Hypotheses test

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ANALYSIS
OF
DATA
Data Presentation
Statistical Analysis

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Chapter 5
ANALYSIS OF DATA
Presentation of data
1. Welcome Gesture of Hotel Classique:
Table 2 showing data collected on welcome gesture of Hotel Classique and presented in
graphical form as follows:
Reponses No. of customers In percentage %
Excellent 27 49.1
Average 28 51.9
Poor 0 0.00
Total 55 100
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Excellent Average Poor
49.1% 50.9% 0.00%

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2. Ambience of Hotel Classique:
Table 3 showing data collected on ambience of Hotel Classique and presented in graphical
form is as follows:
Reponses No. of customers In percentage form
Excellent 34 61.82
Average 19 34.54
Poor 02 03.64
Total 55 100
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
Excellent
Average
Poor
61.82%
34.54%
3.64%

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3. Employee interaction in Hotel Classique.
Table 4 showing data collected on employee interaction with customer in Hotel Classique and
presented in graphical form as follows:
Excellent 29 52.73
Average 25 45.45
Poor 01 1.82
Total 55 100
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
Excellent
Average
Poor
52.73%
45.45%
1.82%

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4. Cuisine and dining experience:
Table 5 showing data collected on cuisine served and dining services offered by Hotel
Classique and presented in graphical form as follows:
Excellent 28 50.91
Average 25 45.45
Poor 02 3.64
Total 55 100
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%
Excellent
Average
Poor
50.91%
45.45%
3.63%

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5. Service standards:
Table 6 showing data collected on service standards of hotel classique and presented in
graphical form as follows:
Excellent 31 56.36
Average 22 40
Poor 02 3.64
Total 55 100
56.36%
40.00%
3.64%
Excellent
Average
Poor

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6. Comparative value for money:
Table 7 showing data collected on comparative value of money for the service offered by
Hotel Classique is presented in graphical form as follows:
Excellent 12 21.82
Average 40 72.73
Poor 03 5.45
Total 55 100
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Excellent Average Poor
21.82%
72.73%
5.45%

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7. Board room and sitting lounge experience:
Table 8 showing data collected on survey done on experience of board room and sitting lounge
in Hotel Classique and presented in graphical form as follows:
Excellent 11 20
Average 11 20
Poor 03 5.45
Not visited 30 54.55
Total 55 100
20.00%
20.00%
5.45%
54.54%
Excellent
Average
Poor
Non visited

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8. Overall experience:
Table 9 showing data collected on overall experience of customer in Hotel Classique and
presented in graphical form as follows:
Excellent 22 40
Average 33 60
Poor 00 00
Total 55 100
Series1
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Excellent
Average
Poor
40.00%
60.00%
0.00%

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9. Why do you prefer hotel Classique than any other hotel in Rajkot?
Table 10 showing data collected on based on the opinion given by customer in compared with
other hotel and presented in graphical form as follows:
Ambience 06 10.09
Cuisine 06 10.09
Family experience 16 29.90
All of the above 27 49.90
Total 55 100
0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
Ambiance
Cusine
Experience
All of Above
10.90%
10.90%
29.09%
49.09%

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10. What do you believe should more importance be given to?
Table 11 data collected on importance given by customers from the categories given in
questionnaire about Hotel Classique and presented in graphical form are as follows:
Ambience 09 16.36
Cuisine 36 65.45
Pricing 08 14.55
Other 02 3.64
Total 55 100
16.36%
65.45%
14.55%
3.64%
Ambience
Cusine
Pricing
Other

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SATISTICAL ANALYSIS / HYPOTHESIS TESTING
Chi-square test:
Chi-square Test is applied to test the goodness of fit, to verify the distribution of observed data
with assumed theoretical distribution. Therefore it is a measure to study the divergence of
actual and expected frequencies: Karl Pearson‟s has developed a method to test the difference
between the theoretical (hypothesis) and observed value.
Hypothesis Test for Chi-Square Test
1. State the null and alternative hypotheses and the level of significance
Ho (Null) : Customer is not satisfied with Hotel Classique
Ha (Alternate) : Customer is satisfied with Hotel Classique
2. State and check the assumptions for the hypothesis test
A. A random sample is taken.
B. The expected frequencies, E, will be calculated.
3. Find the test statistic
Finding the test statistic involves several steps. First the data is collected and
Counted, and then it is organized into a table. These values are known as the observed
frequencies, which the symbol for an Observed frequency is O. Each table is made up of rows
and columns. Then each Row is totaled to give a row total and each column is totaled to give a
column Total.

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Chi square
Observed Expected
Ex. -
Ob. square Sq./Ex.
Welcome
Gesture
Excellent 27 25.75 -1.250 1.563 0.061
Average 28 27.875 -0.125 0.016 0.001
Poor 0 1.375 1.375 1.891 1.375
Ambience
Excellent 34 25.75 -8.250 68.063 2.643
Average 19 27.875 8.875 78.766 2.826
Poor 2 1.375 -0.625 0.391 0.284
Entertainment
Excellent 23 25.75 2.750 7.563 0.294
Average 31 27.875 -3.125 9.766 0.350
Poor 1 1.375 0.375 0.141 0.102
Employee
interaction
Excellent 29 25.75 -3.250 10.563 0.410
Average 25 27.875 2.875 8.266 0.297
Poor 1 1.375 0.375 0.141 0.102
Cuisine
Excellent 28 25.75 -2.250 5.063 0.197
Average 25 27.875 2.875 8.266 0.297
Poor 2 1.375 -0.625 0.391 0.284
Service
Excellent 31 25.75 -5.250 27.563 1.070
Average 22 27.875 5.875 34.516 1.238
Poor 2 1.375 -0.625 0.391 0.284
Price
Excellent 12 25.75 13.750 189.063 7.342
Average 40 27.875 -12.125 147.016 5.274
Poor 3 1.375 -1.625 2.641 1.920
Overall
Experience
Excellent 22 25.75 3.750 14.063 0.546
Average 33 27.875 -5.125 26.266 0.942
Poor 0 1.375 1.375 1.891 1.375
29.515

47
First find the Differences between the observed and expected frequencies. Because some of
these differences will be positive and some will be negative, you need to square these
differences. These squares could be large just because the frequencies are Large; you need to
divide by the expected frequencies to scale them. Then finally add up all of these fractional
values. This is the test statistic.
Test Statistic:
The symbol for Chi-Square is χ 2
Χ 2 = (O – E) 2
Where O is the observed frequency and E is the expected frequency
4. Solution:
From the table 12, Chi-Square Test, X2
= (Oij – Eij)2
/ Eij
Degree of freedom, df = (r – 1) (c -1)
Where,
Oij = Observed Frequency;
Eij = Expected Frequency;
R = Number of Rows;
C = Number of Columns;

48
Observed Frequency:
We can find out Expected Frequency using the formula of Eij,
Eij = Row Total *Column Total
Grand Total
For e.g. here,
Eij for Excellent = (206*55) / 440 = 25.75
Eij for Average = (223*55) / 440 = 27.875
Eij for Poor = (11*55) / 440 = 1.375
Expected Frequency:
X2
(cal) = 29.51459
df = (r – 1)(c – 1)
= (8-1)(3-1)
= 14
df = 14 and @ 5% significance level, X2
(tab) = 26.296
X2
(cal) >X2
(tab)
5. Conclusion
Therefore, Hypothesis is rejected. So the result is that, customer are satisfied with HOTEL
CLASSIQUE.

49
LIMITATION
PERTAINING
TO
WORK

50
Chapter 6
LIMITATIONS
The limitation in the research study can be understood through following points given below:
1. It was not possible to take reviews of each and every customer of Hotel Classique.
2. As I had to take recommendation from some of the customers, I had to keep one
authorised person with me. Because of which I couldn‟t get satisfactory response.
3. As it is a hospitality industry, I also had to stay till late.
4. The respondents in this study included 55 customers. If it was possible to draw more
than 60 respondents from other hotels in Rajkot, then the result would have been more
generalized.
5. When few questionnaires were distributed to the respondents, it was difficult to collect
the data in time.
6. Some customers refused to participate in this survey. Moreover, some did not return
the questionnaires to the front desk in time.
7. If the respondents were more willing to offer feedback, the results would have been
useful for improving hotel service.

51
FINDING,
INFERENCES
AND
RECOMMENDATION

52
Chapter 6
FINDING, INFERENCES AND RECOMMENDATION
Findings and inferences
Various analytical and statistical tools help in explaining the raw data. The very first step in
the research study was to set the objectives for customer satisfaction survey in the hotel
industry. Then we have prepared questionnaire according to the objectives mentioned in
chapter 2. After preparing questionnaire, it was presented to authorized person of the hotel.
When editing is done in the questionnaire, the same was given to customers in the hotels. With
the help of Data collected, analysis had been done which can help us to draw some conclusion.
This is a step which throws light on the understanding of the conclusions and the
recommendations.
The following tables which make it easy to understand the data through the rank order scale.
There were 55 respondents, I have divided it into 5 parts on which ranks has been given are as
follows;
No. of customers Ranking scales
1-11 5
11-22 4
22-33 3
33-44 2
44-55 1

53
Conclusion
Higher the average of ranking scale of a particular question: Less the satisfactory
level
Lower the average of ranking scale of a particular question: More the satisfactory
level
Table 13 showing the first question which is welcome gesture of the hotel classique;
Responses No. of customer Ranking
Excellent 27 3
Average 28 3
poor 0
Total 55 6
Average mean 3
Welcome gesture is the first impression of the hotel. Welcome Gesture in the hotel is
satisfactory as there were 27 customers who were highly satisfied with that service, 28
customers were also satisfied and nobody disliked the service.
On an average the welcome gesture of the hotel classique is satisfactory as the average
calculated for the same results in 3. It can be understood that it is excellent as mean here is
neither so high nor Low.

54
Table 14 showing the second question which reflects ambience of the Hotel Classique;
Excellent 34 2
Average 19 4
Poor 02 1
Total 55 7
Average mean 2.3
It can be said that customer really liked the Ambience of the hotel rooms as there were 34
customers were highly satisfied with that service, 19 customers were also satisfied and there
were least number of customer who were not satisfied.
On an average the ambience of the hotel classique is highly satisfactory as the average
calculated for the same results in 2.3. It can be understood that when it is low that is equal to
high satisfaction level. Here the level of satisfaction can be termed as excellent.

55
Table 15 showing the third question which reflects level of employee interaction of the Hotel
Classique:
Excellent 29 3
Average 25 3
Poor 01 5
Total 55 11
Average mean 3.7
Employee interaction requires skilled employee who can understand the communication skills.
From the survey done in this hotel, came to the point that there were 29 customers were highly
satisfied with communication skills of employees, 25 customers were also satisfied and only
one customer was not satisfied.
On an average employee interaction of the Hotel Classique is satisfactory as the average
calculated for the same results in 3.7. It can be understood that it is neither high nor low.
Therefore level of satisfaction is termed as good.

56
Table 16 showing the fourth question which is cuisine experienced by the customer in the
Hotel Classique;
Excellent 28 3
Average 25 3
Poor 02 5
Total 55 11
Average mean 3.7
“Stomach is direct route to reach to person‟s heart”. Well known proverb for food proves the
importance of food. There were 28 customers who were highly satisfied with that cuisine, 25
customers also liked it and only two customers were there who didn‟t like the cuisine served
by the hotel.
On an average the cuisine served by the Hotel Classique is satisfactory as the average
calculated for the same results in 3.7. It can be understood that it is neither high nor low and
therefore the level of satisfaction is good.

57
Table 17 showing the fifth question which reflects service standards of the Hotel Classique;
Excellent 31 3
Average 22 3
Poor 02 5
Total 55 11
Average mean 3.7
Service standard is termed as one of the most important point in the hotel industries.
According to data, 31 customers were highly satisfied with the service standards, 22 customers
liked the service standard and only two customers were not satisfied with the service standards
of the hotel.
On an average, it can be said that service standards were according to the expectation of
customers. The average calculated for the same results in 3.7 which is good. Therefore It can
be understood that service standards were satisfactory.

58
Table 18 showing the sixth question which is on comparative value of money in the Hotel
Classique;
Excellent 12 4
Average 40 2
Poor 03 5
Total 55 11
Average mean 3.7
Here only 12 customers find the comparative value of money excellent which is less compared
to the other services. But on a contrary 40 customers were satisfied with price paid by them to
hotel for rendering the service. And three customers find it poor. But then also relatively
comparative price are balancing to the service and facilities offered by them.
On an average the tariffs and prices of the food served by restaurant can be according to the
expectation of authorized person. Thus comparative price of money in Hotel Classique is
satisfactory as the average calculated for the same results in 3.7 which is proper. Therefore it
can be understood that it is satisfactory.

59
Table 19 showing the seventh question which is reflecting the data on customers‟ experience
on board room and sitting lounge:
Excellent 11 5
Average 11 5
Poor 03 5
Not visited 30 3
Total 55
Average 4.5
As this hotel is commercial hotel and surrounded by the busiest commercial area, they are
providing service of board room for commercial and business meeting for tourists as well as
for the local people. But the data which has been collected through the survey shows that this
service has not been much in use for every customer. So it can be said that the most of the
customers are staying there for holiday trips with the family.
On an average, board room service offered for businessmen and for commercial people is
satisfactory as general but not satisfactory compared to the other service as the mean
calculated is 4.5 which is comparatively high. Therefore the satisfaction level here is average.

60
Table 20 showing the eighth question which is overall experience on the Hotel Classique:
Excellent 22 4
Average 33 3
Poor 00
Total 55 7
Average mean 3.5
Overall experience can be understood by the services like room cleaning service, cleanliness
in hotel & in room as well, room service on call, delivery service on call, complimentary
breakfast menu and their quantity, and many other services. From the data collected through
questionnaire, a researcher can drawn conclusion about the overall satisfaction level of
customer from the particular hotel.
Here, there were 22 customer find the overall service as excellent and 33 customer said that it
is good and the most importantly there is not a single customer who dislike the service. So that
can be taken as a positive mark for this survey.
On an average, overall service is not highly satisfactory but it can be said as satisfactory as the
average mean is 3.5 which is between high and low. Therefore it comes under satisfactory
level which is good.

61
Table 21 showing the ninth question which is all about asking customers to give reason on
preference to the Hotel Classique:
Ambience 6 5
Cuisine 5 5
Family experience 16 4
All of the above 27 3
Total 55 17
This can be understood on basis of practicability and not on statistical basis. Here customers
are asked for giving reason about why would they like give importance to this hotel as
compared to the other hotels. But low rank is giving to single aspect like only on ambience or
on cuisine. But family experience got average rank compared to ambience and cuisine.
Likewise, there were 27 customers who find all the service satisfactory. But if we look at
options majority of people are satisfactory by the services. But overall it can be said that
preference given to this hotel is taken as average and satisfactory level.

62
Table 22 showing last question which is about knowing the importance given by customer to
aspects mentioned below:
Ambience 9 5
Cuisine 36 2
Pricing 8 5
Other 2 5
Total 55 17
From the customer satisfaction survey on the hotel industry, it became very necessary to know
that which aspect is more important from the customer view point. Ambience is also very
introductory aspect which attract customer to stay in a particular hotel. Cuisine on the way is
utmost important. Pricing is matter of spending power.
From the table shown, it is clear that the importance given to cuisine is most as compared to
the other services like ambience or pricing. If the customers are happy with the food and if
they are fit and healthy with the food served to them they will able to enjoy the other service.
Therefore, from this data gathered it can be noted that cuisine served is most importance for
customers in Rajkot.

63
Recommendation
This research had found several problems in using Hotel Classique services of the
customers which were mentioned earlier. This research would like to recommend on the basis
of this research findings. Further study should be undertaken to apply the results of this study.
1. Recommendation on the improvement of hotel classique services.
1.1 In analyzing the level of customers‟ satisfaction, it was that level of customers‟ satisfaction
as a whole was falling in “excellent”, but board room and sitting lounge were falling in “fair”.
Hotel Classique needs to make recreation in this and should be improved through
advertisement.
1.2 From the finding of this research it was found that the customers‟ satisfaction is the most
important. There are influences towards customer feeling about overall quality of services in
Hotel Classique. There were mostly positive relationships from customers‟ satisfaction with
the hotel services of Classique. Based on the findings on the customer satisfaction of Classique
hotel needs to improve customers‟ satisfaction. The objective being to which more emphasis
on customer relationship management is guidelines in improving the hotel services of
Classique.
1 Most customer are moderately satisfied with the friendliness and courtesy of hotel
staffs, feel they sincerity through their friendly and polite, use an appropriate tone of voice,
and follow up guest requests in timely. In some situations, the customers felt that staff worked
with many customers and treated them badly or no one smiled. The staff did not take care they
come in. This situation ought to eyes contact to signal them understanding in attention.
2 In one instance, a guest requested a fruit basket to have in his room, but it was not
delivered until the day he checked out. This is a negative thinking to be happened must be

64
avoid and immediately provide for them with their request. The staff has to meet customers‟
expectations. They must be treated in a professional manner.
3 Expectations have been found to directly affect satisfaction. In situation with guest
complain the staff has to ask questions to help and ask the guest to describe the problem in
much detail necessary, which revealed that nonverbal behavior then significantly associated
with verbal interaction scores to increase satisfaction. Moreover, when speaking to guest staff
should be eyes contact with the person they are speaking to show interest.
4 The recreation should provide more activities in sitting lounge such as music system
and also some game zone in that area could change customers and sale up the facility. Finally,
this research also found that there are most positive relationships between customers‟
satisfaction with front desk, housekeeping, and food in hotel Classique. All of these services
qualities should be strictly maintained.
22.. Recommendation on further research..
CRM initiatives can be a good solution to overcome low service performance especially
responsiveness the following recommendation can be given:
2.1 Focus on true customer expectations, not that what management think customers
expect.
2.2 An important it just one factor influencing customers‟ satisfaction but CRM can be
implemented and customers‟ satisfaction achieved.
2.3 Management should consider CRM as a critical and essential aspect, as a competitive
in the hotel market, and not just think of cost management as the only factor of
business profit.
2.4 Creating long-term relationship with customer as hotel for they come back in the
future.

65
CONCLUSION
AND
SUGGESTION
FOR THE IMPROVEMENT IN
HOTEL INDUSTRY

66
Chapter 8
CONCLUSION AND SUGGESTION FOR
IMPROVEMENT
Conclusion
The 'Customer is the king!‟. And, if we believe this time tested and accepted philosophy, then
we also know as to how difficult it is to make the 'King' happy. The new age customer is
highly demanding as far as expectations of hospitality services from hotels. Human interaction
is an important part of managing all facets hotel operations. Each interaction between the
customer and the hotel staff plays an important role in customer‟s unique experience at the
hotel. Therefore, human interaction is the key to making a customer feel like a king.
Service businesses have been growing rapidly in recent decades, while customer demand for
high quality service is increasing. To remain competitive, the hotel needs to analyze
customers‟ expectation and perception towards the service quality of its office staff.
Data collected from a questionnaire were distributed to 55 customers who stayed at the Hotel
Classique in Rajkot between July 1 to July 10 2015.The questionnaires aimed to determine the
level of customers‟ expectation and perception towards the service quality of office staff. This
study focused further on the gap between customers‟ expectation and their perception of
service quality was higher than expectation
Hence, customers were satisfied with all dimensions of service quality. In this study, the
findings showed that most respondents identified tangibility as the most important factor in
determining satisfaction. Moreover, their perception of service exceeded their expectation.

67
On the basis of findings, SWOT analysis have been prepared to understand strengths which
can be the plus point of the hotel, weakness minus point of the hotel with the help of which
improvement can be made, opportunities helping in developing future achievement and threats
which can be taken as alert area in success of the hotel industry.
SWOT ANALYSIS
 STRENGTHS :
1. Huge, Capable & Efficient Staff.
2. Varieties of Cuisine
3. Relationship with their Customers
4. Strong Market Presence
5. Continuous Innovations [invent, invent & invent....]
6. Revolving Stage for marriage ceremony
7. Co-ordination among senior managers & employees
8. Daily charts prepared for allocating work to each and every employees
 WEAKNESSES :
1. Cleanliness should be taken care off.
2. Entertainment need to be incremented.
3. Hotel Classique‟s Hoardings need to be highlighted.
4. Relaxation Programme for employees

68
 OPPORTUNITIES :
Rapid and Continuous Growth in the market with new innovations & craving all the
opportunities and challenges.
 THREATS :
Highly Competitive market against other three star hotel industries.
Suggestion for the improvement
From the above SWOT analysis, we came to know the weak points of hotel classique. Taking
that point into the consideration, following points reflects suggestion to overcome the
weakness by little improvements.
 Hygiene is the most important thing for any customer. As mentioned earlier, if they are fit
they can enjoy the other services and most importantly food. Cleanliness should be
maintained. Regular and accurate room cleaning services should be the prime factor for the
cleaning staff. Hotel surrounding should be free of unwanted garbage and other waste
material. Restaurant kitchen should also follow every hygienic factor while making food.
 Entertainment facility should be improved in sitting area. And there should be instrumental
music in corridor and lobby area to make ambience more attractive.

69
 Services and amenities provided by Hotel Classique is the best as compared to other three
star hotels. But there are many people who are not familiar with the hotel. Reason for that
can be the hoarding of the hotel. That has to be the important improvement for hotel name.
Marketing is the prime factor for promoting any product or service.
 Employees are the blood of the any industries. Employee should be treated in well versed
manner. Internal interaction plays an important part in working processes. It is the prime
duty for the CEO to maintain cordial relationships between all the levels of the
management.
For that they can be entertained with sports activity in any prescribed schedule time or day
once in a week. „Work, work and work‟ should not be the only motive for the success of
any service industry.

71
Chapter 10
SUMMARY OF THE PROJECT
This report aims to highlight at all the major findings of the survey done on “CUSTOMER
SATISFACTION OF CLASSIQUE, RAJKOT”. So, that any person interested can get the
whole idea of the topic with reference to the company. All attempts have been made to make
the report simple, precise and flexible. It covers up all the major activities and analysis done in
the survey. The report begins with a briefing of the “Introduction to the hotel facility and its
services”.
Then the objectives of the study have been explained in a prescribed way to understand the
aim of the research and the meaning of each and every question mentioned in the
questionnaire. There were three theories which throw light on perceived performance,
expectation and satisfaction. Many factors took place in the research study like research
design, population & sample, research instrument and statistical analysis. Based on research
design, data collected, analysed and result had been found out to draw conclusion and
recommendation.
The project deals with various factors related to the satisfaction and dissatisfaction of the
customers in HOTEL CLASSIQUE. As the it is one of the fastest growing and providing the
best hospitality services, customers are demanding new innovations and thus to maintain the
satisfaction level of customers has become a key area for hotel. Thus through report I have
tried to discover the factors that are most significant in deriving the satisfaction level of the
customers.

73
Chapter 10
ANNERXURES
I. Questionnaire
Name: _______________________________________________________
Contact No: ___________________________________________________
1.The co-cordial way, Hotel Classique welcomes you.
(a) Excellent (b) Good (c) Poor
2.Traditional & Typical Village Outlook of the Hotel Classique makes you feel.
3.Helpfulness & Friendliness of Staff members.
4.Dining Hall of the Hotel Classique.
5.Quality of Food of the Hotel Classique
6.Delivery Service of the food ordered.

74
7.Comparative Food Pricing of the Hotel Classique.
8.What do you believe should more importance be given to?
(a) Quality or varieties of Food
(b) Hospitality or Service
(c) Food Pricing
(d) Ambience
(e) Other __________________________________________.
9. Board room and sitting lounge Service you have ever received from the Hotel Classique.
10.Why do you prefer Hotel Classique than any other place in Rajkot?
(a) Food Quality
(b) Service
(c) Family experience
(d) All the Above
11. Would you like to give any suggestion and overall experience at the Hotel Classique?
_________________________________________________________________________
_________________________________________________________________________.

75
II. Bibliography
Buttle,francis, customer satisfaction management. Elsevier: n.p.,2004,
Parasuraman, A. “Assessing and improving service performance for maximum impact;insights
from a two- decade-long research journey”.
Kahlifa mohammed, and Vanessa liu. “determinant of satisfaction”
Reisig Michael D., and Meghan stroshine chandek. “the effects of expectancy disconfirmation
on outcome satisfaction”
www.wikipedia.com
www.india-report.com

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