An Empirical Study On The Factors Influencing Customers' Satisfaction And Experience In Budget Hotel

This research has been conducted for analysing the impact of 4Ps of marketing on satisfaction and experience of customers in budget hotels. In order to conduct the research, quantitative research method has been used. In case of quantitative research method, questionnaires were used to collect data from respondents. The respondents in current study are 100 customers of 10 budget hotels in China. The study has found that there is a significant positive impact of product, price, place and promotion on satisfaction and experience of customers in budget hotels. In order to increase satisfaction level of customers and for making their experience positive, budget hotels have to focus on products, price, place and promotional activities of organisation. In the end of this study, limitations and directions for future research have also been provided.

CHAPTER 1: INTRODUCTION

1.1.Background

With the enhancement and progress in the economy of China and the advancement of material conditions of China citisen, the China has greater requirements for the quality of living. They expect the open scope of vision and to sustain with the rate of times (Li et al, 2013). Therefore, tourism consumption turns out to be a significant way for the people of China to relax, to gain new knowledge, and to know people all around the world in their spare time. However, the fast progress of domestic facilities of traffic in the recent times has largely contributed in reducing the time to travel from one destination to another. The traffic facilities have also contributed a lot in making outbound and domestic tourism more effective and convenient (Amin et al, 2013).

The budget hotel was formed back in 1920s in United States. While the budget hotel has its outlets all around the world and the terms ‘budget’ or ‘economy’ are often involved throughout the sector of hospitality, there is not any standard definition which is accepted worldwide of this segment. The rapid progress in the economy of tourism and the consistent alteration in the demand of market depict that budget hotel has turned out to be the hottest fields in the sector of hospitality (Grissemann et al, 2013). The large potential of tourism and the dynamic growth of small and medium sized enterprise performances lead to the fast progress in the economy of China, also the continued growth of the disposable income of the citizens of China. More spare time because of two-day long weekend implemented by the government of China and the modification of the public holiday has also contributed to achieve that large-scale image of tourism at domestic level has started to form and the citizen of China become the focus of mass leisure tourism consumption. High quality and low cost are on first priority when selecting a place to lodge, so cheap and clean, can give primary needs and fundamental services for the facilities of lodging for tourists, and all of these requirements make the budget hotel unique out of rests (Ye et al, 2014).

In the year 2009, with the recovery of domestic economy, the industry of tourism hotel started to progress, and the industry of budget hotel make their way towards the stage of rapid recovery. By the end of year 2009, the total number of chain brands of budget hotel was 303, and the total number of budget hotel itself was 3757. This number has increased by 952 hotels with 33.94 percent increase when contrasted with same time frame in 2008 (Vetitnev et al, 2013).

Budget hotel has got a lot of potential to grow, particularly personified in the viable growth potential. Budget hotel comes under the young growth group of hotel industry of China. Advantages from booming progress of business travel market and leisure tourism, and budget hotel of China has a vivid prospect (Prayag et al, 2013).

1.2.Problem Statement

According to Liat et al (2014) with the consistency in the growth of economy of China, the activities of business between enterprises turn out to be more and more regularly and as well as the market of tourism in China turns out to be more and more lively. State-budget hotel is a new hotel serving to the demands of new customers, it likely to have great ability for growth, which becomes one of the investment’s hot spot. Due to high contest between budget hotels and the rationale to achieve viable competitive advantage, a violent encounter for customer resource opened. The stress of such competition significantly falls on ‘customers’, the budget hotel which is responsible for satisfying all of their customers and won trust of customers, it has had useful weapons to make them victorious in this smokeless battle.

It is stated by Walls (2013) as the competitive setting turns out to be more five unstable, the most significant problem faced by sellers is not to give good quality and excellent services or pro