ARBAMINCH UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMIC

DEPARTMENT OF TOURISM AND HOTEL MANAGEMENTA

TITLE; AN ASSESSMENT OF SERVICE QUALITY AND IT'S IMPACTS ON THE

PERFORMANCE OF TOURIST RECOMMENDED HOTELS IN ARBA MINCH CITY

THE PROPOSAL FOR SENIOR ESSAY WILL BE SUBMITTED TO DEPARTMENT

OF TOURISM AND HOTEL MANAGEMENT FOR THE PARTIAL FULFILLMENT
OF BACHLOR OF ARTS DEGREE IN TOURISM MANAGEMENT

By: Wazifa Aba Mecha

Advisor: Mr.Tefera Solomon

FEBRUARY, 2024

ARBA MINCH, GAMO ETHIOPIA

 CHAPTER ONE
1. INTRODUCTION
1.1 Background

Hotels are commercial establishments providing lodging; meals and other guest service. It also
provides a number of additional guest services such as recreation facilities, laundry, swimming
pool, childcare, etc. Some hotels have conference and meeting rooms to encourage groups to
conduct convention function and meeting at their location (Walker, 1999).

Over the last 30 years, substantial changes have taken place in the global business environment.
Emerging service sector are now dominating economies that were once known their industrial
manufacturing strength. Coinciding with the tremendous growth in the global service economy,
the demand for individuals who command service marketing expertise also greatly expanding.
Practitioners in the service field have quickly learned that traditional marketing strategy and
managerial model (Haffman and Bateson, 2001).

The successful development of hospitality industry can be farther moved by positive progress of
the hotel. However the contribution and development of a hotel is a paramount importance. It
might be influence by various factors such as peace and stability of the area, location,
government involvement and good administration, economic level, attitude of people and service
quality are among the main influence (Denny .G, 2001).

The importance of quality service to positive guest experience has long been recognized and
many techniques for improving service quality have been developed. However not as much
effort has been put in to techniques for measuring service quality. In the mid-1980s based up on
the research conducted by parasurman, zeithemal and berry a, techniques known as SERVQUAL
was developed (Morrison, 2001).

One of the major ways that service firm can differentiate itself is by delivering consistency
higher quality than its competitors. Like manufacturer before them many service industries and
hotels now joined the total quality movement. Many hotels finding that outstanding service
quality can give them a potent competitive advantage that leads to superior sales and profit
performance. The service provider needs to identify the expectations of target customer
concerning service quality. Unfortunately service quality is harder to define and judge than
product quality, although greater service quality results in greater customer satisfaction it also
results in high cost. Whatever the level of service provided, it is important that the service
provider clearly define and communicate that level so its employee knows what they must
deliver and customer knows what they will get (Kotler, 2003.)

1.2 Statement of the Problem

Service quality is an important topic in the service delivering industry including in the hotel and
catering service (Davidson, 2003). As stated by Sit, Ooi, Lin, and Chong (2009), to get highly
satisfied customers, organizations throughout the world are striving to produce products and
services of superior quality. Thus, to achieve this any organizations in the world work towards
service quality to meet customer’s expectation. The higher satisfactions and meeting customer’s
expectation in the hospitality industry in turn generate numerous benefits to the nstitutions
including positive image towards the institution, employee satisfaction, customer’s satisfaction
(Hailu Fentaye Kasa and NigatuTesfaye Fentaw, 2015; Gunderson & et al, 1996).

As some researches find out, the service quality and the satisfaction of customers with the
service delivery are low in Ethiopia (Rajasekhara&Awgichew, 2010 as cited in Mehariw Belay,
2012). Some studies worked in the assessment of service quality in the hotel industry.

Unfortunately, not always the quality service offered can meet the needs, requirements and
expectations of the consumer. This is the main reason of choosing the topic is the problem of
insufficient levels of service quality based on the comments of different guests in hotels
generally and particularly in Hotel. The researcher always complain about the service quality of
the hotels in Arba Minch city in our personal experience. Thus, different visitors and customers
expect delivery of quality service in hotels that can enhance their satisfaction. As a result, it is
timely issue to discuss and assess the quality of services in these hotels in order to address the
quality concern of the hotels and to increase the satisfaction level of the customers as well as
improve the performance of the Hotels. Therefore, this study assesses service quality in Arba
Minch town in case of Haile Resort, Paradise Lodge and Arba Minch Touristl hotel in Southern
Ethiopia Regional State, Gamo Zone, Arba Minch city
1.3 Objective of the Study
1.2.1General objective
The main objective of the study will be to assess the service quality and its determinants
among tourist recommended hotels in Arba Minch city.
1.3.2 Specific Objective
To assess the level of service quality in tourist recommended hotels in Arba Minch city.
To identify the Impacts of service quality on the performance of tourist recommended
hotels in Arba Minch city.
To assess the possible ways of improve service quality in tourist recommended hotels in
the study area
1.4 Research Questions
Our research will answer the following essential questions in detail

What are the levels of service quality in tourist recommended hotels in the Arba minch
city?
What are the Impacts of service quality in tourist recommended hotels in study area?

What the possible ways of improve service quality in tourist recommended hotels in
Arba Minch city?

1.5 Significance of the Study

The study findings help to build on the body of the existing literature and knowledge. This will
help to provide reference for future researchers and they will be able to carry out research with
ease since this study will provide secondary data to the researchers.

The study will also create awareness about the provision of quality service and make visible the
factors that affect quality service to all hospitality workers and the public. This will help the
hospitality industry workers to identify and knowing the method of improving service quality in
tourist recommended hotels in Arba Minch city
Generally our study will have the following importance:-

Helps to identifying the major factors in providing service quality.

Helps to pick possible measure that should be radiate the poor service quality.
Providing information to users about service quality.
1.6 Scope of the study
This study will be conducted in Southern Ethiopia Regional State in Arba Minch city city tourist
recommended hotels. To get brief and broad information the study will involve three major
tourist recommended hotels, namely Haile Resort, Paradise Lodge and Arba Minch Tourist
Hotel in Arba Minch city will be the specific study areas of the research.

1.7 Limitation of the Study

The following certain constraints will be the limitations of study while the researcher conduct the
study;

Unable to get us the accurate information.

Involuntary of respondents to give information.

Lack of written document about service quality.

Absence of research made about service quality before.

Lack of access like computer Insufficient time and money will the limitations of the research
study.

1.8 Operational Definition of Key Terms

Service; - A type of activity that is intangible is not stored and does not result in
ownership. A service is consumed at the point of sale. Services are one of the two key
components of economics, the other being goods.
 Quality; - is a perceptual, conditional, and somewhat subjective attribute and may be
understood differently by different people.
Customer;- customer is an individual a company or other entity which purchase goods
and services produced by a hotel, restaurant or other lodging establishments on regular
base.
Hotel: - a commercial establishment offering lodging to travelers and sometimes to
permanent residents, and often having restaurants, meeting rooms, stores, etc., that are
available to the general public.
Satisfaction: - Satisfaction is the act of fulfilling a need, desire, or appetite, or the
feeling gained from such fulfillment.

1.9 Organization of the study

This research will contain five chapters with their main and sub topic and provides detail
information accordingly the study.
Chapter I will deal in detail on introduction, statement of the problem, objectives of the study,
delimitation, limitations and significance of the study and the organization of the study.

Chapter II will include the review of related literature related to service quality and it's Impacts
on performance of hotel Industry.
Chapter III will be the methodology and research design to collect data for the research.

Chapter IV will provide the details about the result and discussions from the analysis of the
collected data by the researcher.

Chapter V will be the final part of the study, consists the conclusions and recommendations
based on the result and findings of the study.
 CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
This chapter reviews the existing literature put forward by different scholars and personalities
about service quality customer and its determinants as well as the relationship between the
variables.
2.1 Service Quality
Service quality refers to comparison of expectation will level performance service. This
implies that organization must test abolished requirement and specifications. Customers evaluate
the quality of service also mean conforming to customer expiation on consistent basis. This
assessment of quality is making during service delivery process, which is usually occurs within
an encounter between customer and service contact person.(A.FITZSIMONS 1998,PP270).

Service quality affects customer satisfaction by providing performance (real benefits). For
example, if consumers believe they have entered the McDonald's restaurant, they will get food,
service, high quality everywhere the same, no matter the location of the restaurant, put forward
by Milled M.1995)

2.2. Measurement of Service Quality in the Hotel Industry

A number of scholars have carried out several studies with an aim of developing models of
measurement that would help service organizations determine their services extent to which
are effective. That means measuring of service quality is an important aspect in the quality
improvement process because it provides feedback about the type of service provided and the
extent to which it meets customers’ needs (Mwangi et al., 2009). According to Johns and
Howard (1998), quality measurements only have operational value if they are able to indicate
the ways in which service was or was not satisfactory. For service providers, the assessment of
service quality is made during the actual delivery of the service. Much current research on
service quality is rooted in expectancy–disconfirmation theory, which holds that customers
perceive service quality as the difference between when the actual service performances
exceeds expectations and negative when the opposite is the case. Parker and Mathews (2001)
found that many studies supported the disconfirmation paradigm, but Churchill and Surprenant
(1982) found that neither disconfirmation nor expectations had any effect on customer
satisfaction with durable products. No matter how much effort is placed into producing quality
service, the true test lies in the perception of customers (Getty and Getty, 2003).

The important role of service quality in promoting the success of a hotel business cannot be
ignored. It is crucial to every hotel manager to have a good understanding about what exactly
their customers are looking for. Identify and analyze customers’ expectation, recognize the
attributes and dimensions of service quality and their relative importance to customers in each
segment of the hotel industry could definitely help managers in the challenge of service quality
improvement in their hotels.

Numerous studies in the hotel management field have specifically identified the main attributes
and dimensions of service quality perceived by clients (e.g., Knutson et al., 1990; Ekinci et al.,
1998; Mei et al., 1999; Getty and Getty, 2003; Dolnicar and Otter, 2003; Juwaheer, 2004;
Akbaba,
A., 2006; Campos and Marodin, 2012; Mbuthia, et al., 2013; Kim and Perdue, 2013). The results
of these studies have given an enormous contribution through the understanding of the
relevant service quality attributes and dimensions that matters to the various segments of the
hotel industry, which are somehow different from those existent in the others service sector
business.

2.3 Dimension of Service Quality

2.3.1 Reliability
Reliability is the ability to perform services dependably and accurately in a consistent manner.

Reliability is a very important determinant of product quality besides good personal service, staff
attitude, knowledge, and skills (Walker, 1990).Berry and Parasuraman (1991) reported that
reliable service is the outcome of continuous improvement. Similarly, in another study, it found
that service reliability is the service “core” to most customers. So managers should use every
opportunity to build a “do-it-right-first” attitude (Berry, 1990).
2.3.2 Tangibility
This dimension shows the physical aspects of the services as physical facilities, the appearance
of personnel, and tools used for the provision of services. It translates to the restaurant’s
interiors, The appearance and condition of the cutlery, tableware, and uniform of the staff, the
appearance and design of the menu, restaurant signage and advertisements. Firms to convey
image and signal quality (Zeithaml et al., 2006) use tangibles.
2.3.3 Responsiveness
This dimension reflects the willingness or readiness of employees to provide quick services to
customers. Customers are very keen on employees' behavior in the services industry, especially
in the hotel industry. It reported that customers are very sensitive to employees' working
environment in service organizations (Brown and Mitchell, 1993). The correct match between
staff skills and customers' expectation result in better service quality towards customers. Service
recovery and problem -solving have been recognized as important parts of services quality
(Nelson and Chan, 2005).
2.3.4 Assurance
This dimension indicates the employees' knowledge, courtesy, and their ability to convey trust
and confidence. Service quality also linked to customer satisfaction as to how employees use
their knowledge & courtesy and their ability to incorporate trust and confidence.
Parasuramanetal. (1988) reported assurance as an essential dimension of service quality after
reliability and responsiveness towards satisfaction. It found that a hotel can create customer
satisfaction by ensuring trustworthy behavior and reflection of genuine commitments to service
provision (Nelson and Chan, 2005). Trust and commitment are important factors for customer
satisfaction regarding relationship quality (Nelson, 2006).

2.3.5 Empathy

This dimension shows the magnitude of caring and individual attention given to customers. In
the hotel sector, customer care and individual attention are indispensable for better performance
due to stiff competition. The employees' commitment to deliver quality services, skillfully
handling of conflicts, and efficient delivery of services resulted in satisfied customers for long-
term benefits (Nelson and Chan, 2005). Malhotra, (2005) examined the difference in perceptions
of service quality dimensions between developing and developed countries. They found that in
developing countries like India.

2.4 Service Quality Gap Model

Gap theory or the Service Quality Gap model was proposed by Parasuraman, Zeithaml, and
Berry in 1985. This models identifies the different sources of gaps or differences between

the service quality that a customer expect to receive from a service provider and the

customer perception of the service actually received.

Gap1: Knowledge Gap

The knowledge gap is the difference between the customer’s expectations of the service

and thecompany’s provision of that service. This gap arises because management

doesn’t know exactly what customers expect, lack of management and customer

interaction and Failure to listen to customer complaints.

Gap 2: The Policy Gap

The policy gap is the difference between management understands of the customer

needs and the translation of that understanding into service delivery policies and

standards. This happened withcustomer service standards, failure to regularly update

service level standards.

Gap 3: The Delivery Gap

The delivery gap is the difference between service delivery policies and standards and the
actualdelivery of the service. It will see by deficiencies in human resources policies, failure to
match supply to demand employee lack of knowledge of the product, lack of cohesive teamwork
to deliver the product or service.
Gap 4: The Communication Gap
The communication gap is the gap between what gets promised from previous brand standard
tocustomers through their earlier experience, advertising and what gets delivered to customers.
Gap 5: The Customer Gap
The customer gap is the difference between customer expectations and customer perceptions.

CHAPTER THREE
3. RESEARCH METHODOLOGY
3.1 Description of the Study Area
Arba Minch city is a popular tourist destination located in the Southern Ethiopia Region of
Ethiopia. The city is known for its stunning natural beauty, with attractions such as Lake Chamo,
Lake Abaya, and the Nechisar National Park drawing visitors from around the world. Arba
Minch is also home to a number of hotels that cater to tourists, providing accommodation and
services to enhance their stay in the city. It is the home of two Ethiopia’s largest rift valley
lakes ( Abaya and Chamo), beautiful landscape (God’s Bridge), Forty (40) springs Nechisar
National Park, Crocodile ranches, Crocodiles market and the highland of Dorze village on its
doorstep. The city is also used as a gateway to the Omo valley and Konso on the Southern
circuit. It is one of the best destinations in Ethiopia. Since the study area will be limited to some
recommend Tourist Hotels in Arba Minch city. These are Haile Resort, Arba Minch Tourist
Hotel and Paradise Lodge will be the study area of the research. Haile Resort is a luxurious hotel
located in Arba Minch city, offering a range of amenities and services to its guests. The resort is
situated in a picturesque setting, with views of the surrounding lakes and mountains. Haile
Resort is known for its high-quality service and comfortable accommodations, making it a
popular choice for tourists visiting Arba Minch. Arba Minch Tourist Hotel is another prominent
hotel in the city, catering to the needs of travelers seeking a comfortable and convenient place to
stay. The hotel offers a variety of rooms and facilities, including restaurants, swimming pools,
and conference rooms. Arba Minch Tourist Hotel prides itself on providing excellent service to
its guests, ensuring a pleasant and memorable stay.Paradise Lodge is a unique accommodation
option in Arba Minch city, offering guests a chance to experience nature up close. The lodge is
located on the edge of Nechisar National Park, providing stunning views of the park's wildlife
and landscapes. Paradise Lodge is known for its eco-friendly practices and commitment to
sustainable tourism, making it a popular choice for environmentally conscious travelers.

3.2 Research Design

In order to do our research the researcher uses descriptive research method because it is
suitable and effective method to describe the service quality of hotel industry and it's Impacts. In
addition the researcher employes qualitative and quantitative approaches (mixed approaches) but
the researcher will more focus on qualitative approaches because to counter balance both the

advantage and disadvantage of these approaches.

3.3 population of the Study Area

When the researcher conducts the research the participant of the study will be domestic peoples
and hotel guests that arrive on our study area. In addition hotel employees, general manager of
the hotel, different department managers, lower employers of the hotel and domestic and foreign
customer will be respondants of the study and the researcher also will expect to gather helpful
information from foreign tourists about service quality.

3.4 Sample and Sampling Procedure

Sampling Method
 To addressed the assessment of service quality and its Impacts on performance of tourist
recommended hotels in Arba city the researcher will use non probability sampling method from
this the select convenience/ incidental sampling because the researcher will depend up on the
most available samples.(simply take the nearest individual for our study)
Sampling Size
Veal (1997, p.207) states that it's the absolute size that is important not its size relative to the
population. Therefore the researcher will conduct on 3 tourist recommended hotels from these
hotels the researchers will take 3 managers, 15 lower employees and 15 customers totally 33
respondents will be participated in our research. This 36 respondents will be taken from this
three tourist recommended hotels but the researcher will take depend on the availability.

To make clear the above explanation the researcher takes 1 manager, 5 employees and 5
customers from each three hotels which will be selected for the area.

3.5 Data Collection Instruments

In order to collect target full information from sample the researcher will use both types of
sources i.e. primary and secondary sources.

Primary sources

Questionnaires
Interview
Secondary sources

Internet

Written documents about service quality

Data Collection Method

To collect the important information from the respondents the researcher will use different
methods as listed below:-

Interview
The researcher will collect necessary information by asking and understanding the internal
feeling of managers and the overall view of service quality by face to face contact. Totally the
researcher will interview 3 managers from three tourist recommended hotels in Arba Minch city
and these respondants for interview because they are expected to have full information about the
service quality of their hotel.

Questionnaires
The questionnaires will be prepared and distributed for 15 guests and 15 hotel employees and
which have two parts each and will be distributed randomly. The first part will be demographic
information of respondents like sex, age and level of education. The second part will be all about
the basic research questions.

The questionnaires will contain both open ended and close ended questions related to service
quality.

The researcher will use questionnaire as a major tool of data gathering because of access to get
deep information from respondent , give freedom for respondents and they may have sufficient
time to give reliable information

3.6 Method of Data Analysis

The collected data or raw data gathered from the questionnaires and interview will be analyzed
by using quantitative and qualitative data analysis method.

Quantitative Method

The researcher will use the quantitative data analysis method for the study to collect numerical
data.

The data collection mechanism will be questionnaires including open ended or close ended will
be expressed in terms of percentage and tabular or graphical representation and the researcher
will conduct data analysis manually.

Qualitative Method
The researcher will also use this qualitative method in order to get clear understanding on service
quality and to collect non-numerical data. And also to analyze observable data, facts and the
answer which will be gathered from the selected samples will be expressed by using qualitative
data.

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