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Quality of Service in Hotel Industry by Fuzzy MCDM

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Increasing customer satisfaction is the primary objective of companies to survive in the current competitive market. Tourism is called as one of the fastest growing industry over the past decades with no signs of slowing down in the 21st Century. But hospitality and tourism industry has been reframed in the recent years. The presence of accommodation sharing, home-exchange, and hospitality exchange have weakened hotel services around the world. For instance, Airbnb is an accommodation sharing website that provides a platform to rent rooms or apartments offering over 3 million lodging listing, while the company does not own any lodging. As a consequence, although the profit of tourism industry has been soared, it does not necessarily increase the profit of hotels and hostels. In order to increase the attractiveness of hotels in comparison to other lodgings formats, the quality of service in hotels should be significantly better than their adversaries. High service quality is increasingly recognized as a critical factor in the success of travel and tourism industry.

Service quality has shown to have influences on customer loyalty, satisfaction, and business performance. Travelers’ satisfaction in hotel service industry cannot be maximized unless managers understand travelers’ expectations from a provided service and measure the quality of provided services accordingly. However, measuring service quality is difficult for many reasons. First, quality of service is evaluated voluntarily and is highly associated with respondent judgment or biases. Individuals usually have wide range of perceptions toward quality of service, depending on their own experience, preferences, and beliefs. Ignoring the variability in perception, many of previous research utilized conventional cardinal or ordinal scales to measure service quality. In such scale based measurement system, scores do not necessarily represent user preferences. This is because respondents have to internally convert preference to ordinal scales and the conversion may introduce distortion of the preference being captured. Second, service comprises of both tangible and intangible/subjective attributes that complicates the accuracy of measurements.

Examples of unmeasurable aspect of services are the safety and comfort of a service. Additionally, some services are perishable, inseparable, or heterogeneous that would increase the hardship of true measurement of service quality. For instance, the airline industry provides heterogeneous services to passengers in same flight, based on the class categories of passenger’s ticket. While many studies have introduced toolboxes to quantify the quality of services, yet non-of-them are generalizable to all service industry. Choosing an appropriate tool that fits with the needs and attributes of the hotel service industry is essential for accurate service assessment. For this purpose, this research modifies SERVQUAL method to fully adapt with services provided in hotels. Also, Fuzzy set theory is used to decrease the impact of judgmental preferences to express the perception ranges through the judgments of persons. Integrating AHP, Analytical Hierarchy Process, with Fuzzy set theory, this research searches for the most important criteria in hotel service quality. Finally, using the weights of the criteria that are obtained by AHP, a ranking between two types of hotels in cities with historic sites are assessed using TOPSIS, a well-structured multi-criteria decision making method. The rest of this study is structured as follows: Section 2 describes important aspects for the assessment of service quality of hotel Industry and presents the evaluation framework and methodology which is used in this study. Section 3 discusses the procedure and results of empirical study by evaluating and ranking of service quality in hotel industry in Yazd, Iran. The final results of the empirical study are presented and discussed in the Section 4 followed by implications and recommendations for future research.

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"Quality of Service in Hotel Industry by Fuzzy MCDM." GradesFixer, 10 Apr. 2019, https://gradesfixer.com/free-essay-examples/quality-of-service-in-hotel-industry-by-fuzzy-mcdm/. Accessed 29 March 2020.
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