Project – The service quality management on growth of hotel industry in Nigeria

A Study of Protea Hotel. Ikeja, Lagos

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CHAPTER ONE

INTRODUCTION

• Background to the Study

The service quality management in the hotel industry is a critical factor that significantly influences the growth and development of the sector. In Nigeria, the hotel industry has been experiencing a steady growth, largely attributed to the effective service quality management strategies implemented by various establishments (Ogbeide, 2012). The industry has been focusing on enhancing customer satisfaction, which is a key determinant of service quality. According to a study by Okeiyi, Finley, and Postel (1994), customer satisfaction in the hotel industry is directly linked to the quality of services provided. Therefore, the growth of the hotel industry in Nigeria can be attributed to the high level of customer satisfaction achieved through effective service quality management.

The service quality management in the Nigerian hotel industry is characterized by several key elements. These include staff training, customer feedback, and continuous improvement. Staff training is a critical aspect of service quality management, as it equips the employees with the necessary skills and knowledge to deliver high-quality services (Okeiyi, Finley, & Postel, 1994). On the other hand, customer feedback is used to identify areas of improvement and to gauge the level of customer satisfaction. Continuous improvement, which involves regularly reviewing and improving the service delivery processes, is also a key aspect of service quality management in the Nigerian hotel industry.

However, despite the significant strides made in service quality management, the Nigerian hotel industry still faces several challenges. These include inadequate infrastructure, lack of skilled personnel, and high operational costs (Ogbeide, 2012). These challenges have been hindering the full realization of the potential of service quality management in driving the growth of the hotel industry in Nigeria. Therefore, there is a need for concerted efforts to address these challenges to enhance the effectiveness of service quality management in the industry.

Several studies have been conducted to explore the impact of service quality management on the growth of the hotel industry in Nigeria. For instance, a study by Ogbeide (2012) found a positive correlation between service quality management and the growth of the hotel industry. The study recommended the adoption of effective service quality management strategies as a means of enhancing the growth of the industry. Similarly, a study by Okeiyi, Finley, and Postel (1994) highlighted the importance of staff training, customer feedback, and continuous improvement in enhancing service quality in the hotel industry.

Service quality management plays a crucial role in the growth of the hotel industry in Nigeria. The industry has been focusing on enhancing customer satisfaction through effective service quality management, which has significantly contributed to its growth. However, there are several challenges that need to be addressed to enhance the effectiveness of service quality management in the industry. Future research should focus on exploring strategies to overcome these challenges and enhance the growth of the hotel industry in Nigeria.

• Statement of the Problem

The problem of service quality management in the hotel industry in Nigeria is a multifaceted issue that has been the subject of numerous studies. The hotel industry in Nigeria, despite its potential for economic growth and job creation, has been plagued by a lack of quality service management (Ogbeide, 2012). This has resulted in customer dissatisfaction, reduced patronage, and ultimately, stunted growth in the industry.

The first aspect of the problem lies in the inadequate training of hotel staff. According to a study by Okeiyi, Finley, and Postel (1994), the lack of properly trained personnel in the Nigerian hotel industry has significantly affected the quality of service delivery. This lack of training often results in poor customer service, which in turn affects customer satisfaction and loyalty.

Another aspect of the problem is the lack of effective quality management systems in many Nigerian hotels. A study by Ogunnaike and Kehinde (2012) found that many hotels in Nigeria do not have a structured system for managing service quality. This lack of a systematic approach to quality management often results in inconsistent service delivery, which can negatively affect customer satisfaction and loyalty.

The third aspect of the problem is the lack of customer feedback mechanisms in many Nigerian hotels. According to a study by Ezeuduji, Chibe, and Nyathela (2017), many hotels in Nigeria do not have effective systems for collecting and analyzing customer feedback. This lack of customer feedback mechanisms often results in hotels not being able to identify and address service quality issues, which can lead to customer dissatisfaction and reduced patronage.

The fourth aspect of the problem is the lack of investment in service quality improvement initiatives. According to a study by Okeudo and Nnabuko (2016), many hotels in Nigeria do not invest adequately in initiatives aimed at improving service quality. This lack of investment often results in hotels not being able to keep up with global best practices in service quality management, which can negatively affect their competitiveness and growth.

The problem of service quality management in the Nigerian hotel industry is a complex issue that requires a multifaceted approach. It is clear that there is a need for more research in this area to identify effective strategies for improving service quality management in the Nigerian hotel industry.

• Aim and Objectives of the Study

The study examines the service quality management on growth of hotel industry. The specific objectives of the study are:

1. To examine the current state of service quality management in the hotel industry in Nigeria.
2. To identify the impact of service quality management on the growth of the hotel industry in Nigeria.
3. To analyze the challenges faced by the hotel industry in implementing effective service quality management.
4. To propose strategies for improving service quality management in the hotel industry.

• Research Questions

The research questions are buttressed below:

1. What is the current state of service quality management in the hotel industry in Nigeria?
2. How does service quality management impact the growth of the hotel industry in Nigeria?
3. What are the challenges faced by the hotel industry in Nigeria in implementing effective service quality management?
4. What strategies can be proposed to improve service quality management in the hotel industry in Nigeria?

• Research Hypothesis

The research hypothesis is buttressed below:

Ho:  Service quality management has no significant impact in the hotel industry in Nigeria

H₁:  Service quality management has significant impact in the hotel industry in Nigeria

• Significance of the Study

The significance of service quality management in the growth of the hotel industry in Nigeria cannot be overstated. The hotel industry is a critical component of Nigeria’s economy, contributing significantly to its GDP and providing numerous employment opportunities. Service quality management is a key factor that determines the success or failure of hotels in this competitive industry. It involves the implementation of various strategies and practices aimed at ensuring customer satisfaction, loyalty, and repeat business.

The first significant impact of service quality management is on customer satisfaction. In the hotel industry, customer satisfaction is paramount. A hotel that provides high-quality services will attract more customers, leading to increased occupancy rates and revenue. This is particularly important in Nigeria, where the hotel industry is highly competitive. By focusing on service quality management, hotels can differentiate themselves from their competitors and attract a larger share of the market.

Secondly, service quality management plays a crucial role in building customer loyalty. When customers are satisfied with the services provided by a hotel, they are more likely to return and recommend the hotel to others. This not only increases the hotel’s customer base but also reduces marketing costs, as word-of-mouth advertising is often more effective and less expensive than traditional advertising methods.

Thirdly, service quality management contributes to the overall growth of the hotel industry by promoting a positive image of the industry. When hotels in Nigeria consistently provide high-quality services, it enhances the reputation of the entire industry. This can attract more tourists to the country, boosting not only the hotel industry but also other sectors of the economy that benefit from tourism.

Moreover, service quality management can lead to the development of a more skilled workforce in the hotel industry. By investing in training and development programs, hotels can equip their employees with the skills and knowledge needed to provide high-quality services. This can lead to increased productivity and efficiency, further contributing to the growth of the industry.

Lastly, service quality management can have a positive impact on the environment. By implementing environmentally friendly practices, hotels can reduce their environmental footprint, which is increasingly important in today’s society. This can also attract eco-conscious tourists, further boosting the growth of the hotel industry in Nigeria. In conclusion, service quality management is a vital tool for the growth and development of the hotel industry in Nigeria.

• Scope of the Study

The study examines the service quality management on growth of hotel industry in Nigeria. The study is limited to Protea Hotel. Ikeja, Lagos.

• Operational Definition of Terms

Service Quality Management: This refers to the systems, processes, and procedures that organizations, such as hotels, put in place to ensure that their services meet or exceed customer expectations. It involves the identification of what customers consider to be quality, the creation of standards that align with these expectations, and the implementation of processes to deliver on these standards. In the context of the hotel industry, service quality management might include aspects such as cleanliness, promptness of service, staff behavior, and the quality of food and amenities provided.

Growth: In the context of an industry, growth refers to the increase in the industry’s size, output, or market share over time. This can be measured in various ways, such as through increases in sales, number of customers, number of employees, or market share. Growth can be the result of various factors, including increased demand, successful marketing strategies, innovation, and effective management.

Hotel Industry: The hotel industry is a sector of the broader hospitality industry that specializes in providing lodging services to travelers. It includes a wide range of establishments, from small bed and breakfasts to large hotel and resort chains. The industry is characterized by its focus on customer service and satisfaction, with a wide range of services and amenities offered to enhance the guest experience. In Nigeria, the hotel industry plays a significant role in the economy, providing employment and contributing to the country’s GDP. 

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Project – The service quality management on growth of hotel industry in Nigeria