1.1 Introduction
Service management refers to the approach of designing, managing, and improving service processes to deliver value to customers. in the context of the hospitality industry, it involves managing guest services, ensuring high-quality experiences, and continuously improving customer interaction processes (Fitzsimmons & Fitzsimmons, 2014). Service management plays a central role in the hospitality industry, where customer satisfaction, service delivery, and operational efficiency are crucial to business success. In hospitality, service management encompasses all activities, processes, and strategies used to ensure high-quality service delivery, from front-line interactions with guests to back-end operations (Kandampully, Zhang, & Bilgihan, 2015).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Service management in hospitality began as a straightforward effort to meet the basic needs of travelers, providing a place to stay and meals along their journey. In ancient times, inns and guesthouses served as simple accommodations, often with limited amenities and modest service (Jones & Lockwood, 2004). However, as societies and economies developed, so did expectations for service quality, prompting shifts in how hospitality services were managed (Brotherton, 2012). By the late 19th and early 20th centuries, the hospitality industry began to formalize standards of service and comfort, spurred by advances in transportation that made travel more accessible and led to increased demand for hotels and resorts (Lashley & Morrison, 2013). During this period, prominent hotel chains like Hilton and Marriott emerged, pioneering concepts such as brand consistency and standardized service across locations. These innovations allowed customers to expect a certain level of quality regardless of the hotel's location, laying the foundation for modern service management practices (Lashley, 2000).
The post-World War II era brought further advances as economic growth led to an expansion of tourism and business travel. This growth encouraged the hospitality industry to adopt more refined service models that emphasized customer satisfaction and operational efficiency (Pizam, 2005). Additionally, the development of marketing and customer relationship management (CRM) concepts during the late 20th century redefined how services were managed, with a focus on building long-term relationships with customers through consistent service quality and personalized experiences (Kotler, Bowen, & Makens, 2014).
In the 21st century, technology has played a transformative role in service management within the hospitality industry. Digital booking systems, online reviews, and social media have altered customer expectations, making service transparency and responsiveness essential (Xiang & Gretzel, 2010). Today, the integration of data analytics and CRM technologies allows hospitality managers to gain insights into customer preferences and enhance the guest experience by offering tailored services (Gretzel, Sigala, Xiang, & Koo, 2015). Moreover, sustainability has become a key factor in modern service management, as many customers now prioritize eco-friendly practices when choosing accommodations, prompting the industry to adopt sustainable service models (Jones, Hillier, & Comfort, 2016).
The hospitality industry is a dynamic and customer-driven sector that significantly contributes to global economic development and job creation (Kandampully, Zhang, & Bilgihan, 2015). As one of the largest sectors within the service economy, hospitality covers a broad range of services including lodging, food and beverage, travel, and event management. Service management, a critical component of this industry, encompasses the planning, coordination, and execution of services aimed at creating value and enhancing customer satisfaction (Zeithaml, Bitner, & Gremler, 2013). Its role has become increasingly significant as customer expectations for high-quality and personalized service experiences continue to grow, driving organizations to adopt innovative and customer-centered approaches (Kotler, Bowen, & Makens, 2014).
Historically, service management in the hospitality industry was largely reactive, focusing on addressing customer needs as they arose (Ottenbacher, Harrington, & Parsa, 2009). However, as the industry has matured, there has been a shift towards proactive strategies that emphasize understanding customer behavior, anticipating service needs, and delivering experiences that exceed expectations (Grönroos, 2007). Advances in technology, such as data analytics and customer relationship management systems, have facilitated this shift by providing insights into customer preferences and enabling personalized service offerings (Gretzel, Sigala, Xiang, & Koo, 2015).
Studies show that service quality directly impacts customer satisfaction, loyalty, and repeat business, which are essential for sustained growth and competitiveness (Tsaur, Chang, & Wu, 2004). With the rise of social media and online reviews, the visibility of service quality has increased, making service management a critical determinant of a hospitality business's reputation and success (Xiang & Gretzel, 2010).
In recent years, the importance of employee engagement in service management has also gained recognition. Engaged employees are more likely to provide attentive, empathetic service, which enhances the overall customer experience (Lovelock & Wirtz, 2011). Consequently, hospitality businesses now invest significantly in training and development programs to equip employees with the skills needed for effective service delivery (Kandampully et al., 2015). Service management in hospitality also involves balancing operational efficiency with customer experience, which requires a deep understanding of both employee engagement and customer expectations (Grönroos & Voima, 2013). Effective service management practices help improve operational workflows, reduce wait times, and enhance overall service quality, benefiting both the customers and the organization (Lovelock & Wirtz, 2011).
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the role of service management in the hospitality industry.
1.3 Statement of Problems
Investigation revealed that the role of service management in the hospitality industry is critical, yet it presents numerous challenges that affect both customer satisfaction and business profitability. A significant problem is the difficulty in maintaining consistent service quality across various locations, especially for large hotel chains or franchise-based operations. Service consistency is vital for customer retention, as inconsistencies often lead to dissatisfaction and negative reviews, which are easily amplified in today's digital landscape (Lovelock & Wirtz, 2016).
Additionally, the hospitality industry is heavily impacted by external economic, social, and environmental factors. Economic downturns or global health crises reveal how fragile service operations are, as occupancy rates drop and revenue decreases, leading to service cutbacks that further diminish customer satisfaction (Sigala, 2020).
Furthermore, environmental sustainability is another growing concern, as there is increasing pressure on hospitality businesses to adopt eco-friendly practices in their operations. While sustainable service management practices are important for attracting environmentally conscious consumers, implementing these changes is complex and costly, often requiring a restructuring of traditional service models (Jones et al., 2016).
1.4 Aim and Objectives of Study
The aim of the study is to examine the role of service management in the hospitality industry. In achieving this aim, the following specific objectives were laid out as follows:
- To explore the various service management practices employed by hospitality businesses to improve service quality and operational efficiency.
- To investigate the role of employee training and development in achieving high standards of service management in the hospitality sector.
- To examine the impact of service management on customer satisfaction and loyalty within the hospitality industry.
- To identify the challenges and barriers to implementing effective service management in hospitality organizations.
- To assess the influence of service management on customer retention and competitive positioning in the hospitality market.
- To provide recommendations for optimizing service management strategies to enhance overall performance in the hospitality industry.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Does service management impact customer satisfaction and loyalty in the hospitality industry?
- What service management practices are commonly used in the hospitality industry to improve service quality and operational efficiency?
- What role does employee training and development play in achieving effective service management in hospitality?
- What are the main challenges and barriers to implementing effective service management in the hospitality sector?
- How does service management influence customer retention and competitive advantage for hospitality businesses?
- What strategies can be recommended to optimize service management for improved performance in the hospitality industry?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H01: There is no significant relationship between service management practices and customer satisfaction in the hospitality industry.
- H02: Effective service management positively influences customer satisfaction and loyalty in the hospitality industry.
- H03: Training and development of employees significantly enhance the quality of service management in hospitality.
- H04: Service management practices contribute to operational efficiency and improve customer retention in the hospitality industry.
1.7 Significance of Study
The outcome of the research findings will inform hospitality managers about best practices for managing customer interactions and improving service quality, ultimately leading to higher customer retention rates. Also, this study will benefit employees by highlighting the importance of service training and professional development, which will improve their job performance and satisfaction.
Furthermore, it will serve as a resource for academic researchers seeking to understand the impacts of service management on operational efficiency and profitability.
1.8 Scope and Limitation of Study
The scope of the research is focused on the role of service management in the hospitality industry. Throughout the course of this research, several challenges arose that acted as constraints on the study. These limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.9 Definition of Terms
Service Management: Service management refers to the approach of designing, managing, and improving service processes to deliver value to customers. It focuses on service delivery efficiency, customer satisfaction, and operational effectiveness. in the context of the hospitality industry, it involves managing guest services, ensuring high-quality experiences, and continuously improving customer interaction processes (Fitzsimmons & Fitzsimmons, 2014).
Hospitality Industry: The hospitality industry includes a range of services that provide accommodations, food and beverages, travel, tourism, and entertainment to individuals. This sector is dedicated to customer satisfaction and encompasses businesses such as hotels, restaurants, resorts, event venues, and travel agencies (Kandampully, 2013).
Customer Satisfaction: Customer satisfaction is a measure of how well the services provided by a business meet or exceed customer expectations. in the hospitality industry, this can refer to the overall experience of guests, including accommodation quality, staff interactions, and dining services, all of which influence repeat business and brand loyalty (Oliver, 2010).
Quality Management: Quality management in the hospitality sector involves monitoring and controlling the various service components to ensure that the service delivered meets the required standards of quality. This includes staff training, cleanliness, service speed, and other operational factors that contribute to a customer's overall satisfaction (Zeithaml, Bitner, & Gremler, 2013).
Service Excellence: Service excellence is the practice of providing exceptional customer service through consistent quality, attention to detail, and exceeding customer expectations. In hospitality, this term encapsulates the industry's drive to create memorable and seamless experiences for guests (Heskett, 2008).
