CHALLENGES FACING TOURIST HOTELS TOWARDS PROVISION OF GOOD
Background of the Study
It is important to note that hotel business is very competitive and provision of quality
service has been seen as a determinant factor for hotel businesses survival. In the era of global competition, many service firms like hotels focus on service quality and excellence to acquire and retain a pool of loyal and profitable customers (Anantharaman, 2001).
Mbise (2012) describes that in Nigeria the development of hospitality industry started in the early 70s, but was wholly state owned, different from the usual perspective of
managing the hospitality and tourism industries, whereby it is widely known that the
industry is private sector motivated. After independence, Nigeria followed a socialist
system whereby the majority owned major means of production. Despite the fact that
Nigeria had a lot to offer to foreign tourists, the tourism industry found itself struggling
for existence. This was due to mismanagement, lack of accountability and responsibility which resulted in some properties being closed and others operated at a loss (Mbise, 2012). He continues that, it was in the early 1990s when Nigeria liberalized trade and adopted a free market economy. Most of the state owned businesses, including hospitality business were privatized. In that time, Nigeria witnessed a boom of investments in tourism enterprises, especially chain lodges and international hotels and that though these changes were important for the hospitality and tourism industry to revitalize, they did not take into account the business environment factors. He claims that the industry faced poor language proficiency, communication skills and lack of qualified employees to provide services that met international standards.
Customer satisfaction is one of the most important outcomes of firms in a market-oriented firm where the obvious need of firms is to satisfy their customers, expand their business and improve profitability (Kandampuly, 2000). Redman and Mathews (1998) argues that it is essential to invest in quality improvement if a firm wants to increase sales or market share and that the increase of sales and market share depends on how much a firm is able to attract and retain existing and potential customers.
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