THÔNG TIN TÀI LIỆU
MINISTRY OF EDUATION AND TRAINING THUONGMAI UNIVERSITY NGUYEN MINH TUAN RESEARCH ON CUSTOMER LOYALTY IN HANOI HOTEL INDUSTRY MAJOR: Business administration CODE: 934.01.01 Summary of doctoral thesis in economics Hanoi, 2021 The work was completed at Thuongmai University Supervisor: Dr Luc Thi Thu Huong Dr Nguyen Thi Tu Reviewer 1:……………………………………………………………… ……………………………………………………………… Reviewer 2:……………………………………………………………… ……………………………………………………………… Reviewer 3:……………………………………………………………… ……………………………………………………………… The thesis will be defended before School level thesis evaluation council meeting at Thuongmai University At…… hour …… date ……… month……… year ………… The thesis can be found at: National Library of Vietnam Library of Thuongmai University INTRODUCTION Urgency of the topic In terms of practice, the market for accommodation business in Vietnam is increasingly competitive In recent years, many large corporations in the hotel industry such as Hilton, Intercontinental, Marriott, etc continue to target the Hanoi market in particular and Vietnam in general At the same time, many famous domestic corporations such as FLC, VinGroup, Mount Than also constantly upgrade and expand branches The entry of leading companies, along with the way of management, operation, and professional service has created competition among enterprises in the hotel industry which demand to change the operation method to improve service quality, increase their position, attract customers, and build customer loyalty On the other hand, scientific and technical progress especially 4.0 technology, is applied in all fields, and the hotel is no exception Domestic or international tourists tend to search for hotels, prices, and services, etc on the internet for their trip before deciding which enterprise chose to provide their services Social networks, online travel agencies, and websites are all bridges between customers and the hotel In the period from 2015 to 2019, along with the upward development of Vietnam's hotel business, the number of tourist accommodation establishments in Hanoi increased rapidly In 2015, the number of accommodation establishments in Hanoi was 2,871 accounting for about 9%, and 45,769 rooms accounted for about 10% compared to the whole country In 2019, the total number of accommodation establishments in the city is 3,546, increasing by 1.24 times compared to 2015 The number of accommodation establishments in the area accounts for a high rate compared to the whole country reached 15.2% Many 5star hotels have come into operation such as JW Marriott Hotel, Lotte Center, Grand Plaza, InterContinental Westlake, etc In addition, the demand, tastes, and quality requirements of customers are getting higher with more choices Many hotel projects in Hanoi that have been built or are nearing completion have faced stiffer competition At the same time, under the impact of the Covid-19 pandemic, the Hanoi tourism industry in general and the hotel service business, in particular, were seriously affected by the decrease in international and domestic tourism demand From this reality, what hotel managers need to to satisfy customers, and at the same time achieve sales, growth, and customer retention goals? There are many options to answer the above question, but currently, most managers not understand the real wants and needs of customers Therefore, to make tourists continue to use the products and services at the hotel, the managers need to find out the factors that affect the customer's loyalty Building customer loyalty will create many benefits to the tourism industry in general and the hotel business in particular Specifically, customer loyalty makes an important contribution to increasing the profitability of the hotels, and the cost of retaining customers is much lower than the cost of finding new customers With the loyalty of customers, enterprises will obtain high profits and reduce marketing costs (Reichained and Sasser, 1990) Theoretically, customer loyalty in the hotel industry has been studied by many domestic and foreign scientists The empirical studies on customer loyalty in the hotel system mainly focus on factors such as service quality, satisfaction, empathy, tangible means, and service capacity (Rousan et al., 2010; Xiangyu and Jarinto, 2012; Kofi et al., 2013; Galib, 2013; Saleem and Raja, 2014; Tefera and Govender, 2016) However, these studies were all conducted in cities of developed countries where have many economic and cultural differences compared to Hanoi, Vietnam On the other hand, domestic studies on customer loyalty in the hotel system in Ho Chi Minh and Vinh Long (Le Gia Bao et al 2017; Nguyen Son Tung, 2019) are also different from the hotel system in Hanoi The research on hotels in Hanoi such as the study of Nguyen Van Huy and Pham Van Hanh (2017) investigates the relationship between service quality, customer satisfaction, and loyalty The results indicate that service quality directly and positively affects customers satisfaction Moreover, the study shows that in scales of service quality, assurance and reliability play the most important role in influencing the quality of service provided by Hanoi hotels All of the above analysis shows that customer loyalty in the Hanoi hotel industry has not been studied popularly Building and developing customer loyalty is very necessary for the hotel business greatly affected by the Covid-19 pandemic Therefore, the research on customer loyalty in the Hanoi hotel industry is the topic, which meets the theoretical and practical requirements of the hotel business in Hanoi Overview and research gaps The studies on customer loyalty presented different views and definitions of customer loyalty from different fields such as tourism; online shopping; homestay service or convenient shops system at the same time, these studies also show factors affecting loyalty such as service quality; satisfaction; tourist experience; switching costs,… However, most studies have not mentioned customer loyalty in the business performance of enterprises Previous studies on customer loyalty to hotels have been conducted in developed countries such as Rousan et al (2010);Research on customer loyalty in hotels with service quality as studies of Jordan or Kofi et al (2013) about the 5-star hotel system; researching the impact of service quality on customer loyalty in the hotel sector in Ghana;In different cities in Vietnam, Phan Thanh Long (2018) researches factors affecting customer loyalty using services at 4.5-star hotels in Ho Chi Minh, in Can Tho, and Vinh Long Thus, there have not been many studies that deeply research the understanding of maintaining and developing customer loyalty for hotels in Hanoi, this is a research gap in both theoretical and practical aspects Research objectives and tasks The overall goal of the thesis is to study the theoretical issues of customer loyalty in the hotel industry and propose solutions and recommendations to build and develop customer loyalty in the Hanoi hotel industry and propose directions and solutions to build and develop customer loyalty in the hotel system in Hanoi until 2025, with a vision to 2030 To achieve the research objectives, the thesis must perform three tasks including (1) Establishing a theoretical basis for customer loyalty in the hotel system; (2) Surveying and evaluating customer loyalty in from to 5-star hotel system in Hanoi; (3) Proposing some feasible solutions for the hotel industry in Hanoi in particular and Vietnam in general Object and scope of research - Research object is customer loyalty to the hotel in Hanoi - Scope of the study: Regarding the research space, the actual data used in the thesis were surveyed from hotels rated from to 5-stars in inner-city districts of Hanoi Regarding research time, the thesis conducts research on data related to customer loyalty in the period from 2016 to 2020, proposes solutions to 2025, vision to 2030 About research content, the thesis focuses on researching and assessing customer loyalty to the hotel according to groups consisting of disloyalty; false loyalty; implicit loyalty, and loyalty Research methodology To ensure comprehensiveness, objectivity, and accuracy, the thesis used a combination of primary and secondary data collection methods Secondary data was collected from the Vietnam National Administration of Tourism, General Statistics Office, Hanoi Department of Tourism, and textbooks, books, and magazines related to the research topic Primary data was collected by two methods: 1) Survey with a sample size of 691 customers; 2) In-depth interview including hotel managers, the business and marketing department With the collected data, the thesis uses two methods of quantitative and qualitative analysis to make judgments and assessments about the status of customer loyalty to hotels in Hanoi New contributions to science and practice of the thesis 1) Regarding research methods, the thesis has combined both primary and secondary data collection methods, two qualitative and quantitative research methods, in which, the new contributions of the thesis shown in the research framework include tools to maintain and develop customer loyalty; 2) In terms of theory, the study complements and completes the theoretical framework on customer loyalty in the hotel industry through a direction of little previous research done In addition, the study gives evaluation criteria of customer loyalty 3) In practice, the thesis has analyzed and assessed objectively and reliably the status of customer loyalty to hotels in Hanoi such as vision and strategy of hotel industry; technical facilities; service quality; accommodation rates and payment terms; and loyalty program Structure of the thesis In addition to the parts such as the declaration, table of contents, list of abbreviations, list of tables and figures (8 pages), general conclusion (2 pages), list of references (9 pages), and appendix (45 pages), the thesis consists of 159 pages The structure of the thesis includes Introduction; Chapter 1: Theoretical basis of customer loyalty in the hotel industry; Chapter 2: Assessing the status of customer loyalty in Hanoi hotel industry; Chapter 3: Solutions to maintain and develop customer loyalty in Hanoi hotel industry CHAPTER THEORETICAL BASIS OF CUSTOMER LOYALTY IN THE HOTEL INDUSTRY 1.1 Overview of hotel industry and its customers 1.1.1 Concept and classification of hotel * Concept of the hotel Hotel is an accommodation establishment, with the size of ten bedrooms or more, ensuring the quality of facilities, equipment, and necessary services to serve guests staying and using The hotel is the most popular and typical type in the system of tourist accommodation establishment The hotel is built systematically, and synchronously meeting necessary quality and comfort standards to serve the needs of accommodation, meals and other needs during their stay in order to make profit * Classification of hotel Hotels are classified according to the following criteria: According to geographical location, hotels include five types such as city hotels; resort hotels; floating hotels; roadside hotels, and transit hotels About hotel size, hotels can be divided into three categories consisting of large-scale hotels; medium-sized hotels; small-sized hotels For the level of service provision, hotels are divided into four categories: High-class and luxury hotels; hotels with full services; hotel with limited service and budget hotel About the rating standard, the hotel is ranked from 1-star to 5-star according to the standard of facilities, equipment, service quality, and amusement park 1.1.2 System of providing customer service at the hotel Hotel services are regulated by the type of hotel business, the size, the location, the organizational structure and business policies in the market of the hotel The service delivery system at the hotel is divided into lines including the customer interaction line is at the top, followed by the visible line, the internal interaction line at the bottom This arrangement shows that customer satisfaction is the end result of the system Internal interaction line is the line representing the activities happening inside the hotel business to create service quality, service experience for customers including reservation and registration system Visible line separates the activities visible to the customer and the activities invisible Customer interaction line is the interaction flow between the service provider and the customer, where the customer will become a co-producer of the service experience Activities on this line will determine if guests return to use the service or not By surveying activities above the customer interaction line, hotel managers can identify important activities, which influence on customer satisfaction As a result, hotel managers will focus on these activities such as booking, check in, and check out in order to improve the service quality and experience of guests so that they return come back 1.1.3 Guests * Concept of guests Guests are customers of the hotel's products, who are not limited by the purpose, time and space of consumption * Classification of guests Hotel guests include four categories: - Pure guest is a person who makes a trip with the main purpose of rest and relaxation - Official guest is a person who makes a trip for business purposes; attends conferences, seminars, and fairs, research the market, or sign contracts Relative guest makes a trip with the main purpose of visiting relatives, resolving family and social relationships Other guests make a trip for other purposes such as attending sports events, going for medical purposes, studying, researching, etc 1.2 THEORETICAL OF CUSTOMER Loyalty 1.2.1 Theory of customer behavior According to Kotler (2006), consumer behavior is considered as the response of customers to marketing stimuli and other stimuli Kotler (2006) also uses a conscious black box model to represent consumer behavior Factors affecting customer behavior: Customer behavior is influenced by many different factors, and researchers divide the factors affecting customer behavior into four groups: (1) cultural factors; (2) social factors; (3) personal factors, and (4) psychological factors Decision-making process: A consumer decision-making process consists of five stages that actual consumers go through when purchasing a product/service In these stages, the consumer recognizes a need, gathers information, evaluates alternatives, makes a purchase decision, and evaluates post-purchase The theory was developed by Oliver (1997) and is used to study customer satisfaction with the quality of the company's services or products That theory includes two subprocesses that have an independent impact on customer satisfaction: service expectations before purchase and service perception after the experience TH1: PV = EV: Perceived value is equal to the expected value TH2: PV < EV: The perceived value is less than the expected value Customers are not satisfied with the products/services of the business TH3: PV > EV: The perceived value is greater than the expected value Customers are satisfied with the products/services of the business 1.2.2 The concept and role of loyalty 1.2.2.1 The concept of customer loyalty So far, there are many different approaches to customer loyalty in general and customer loyalty in the hotel industry in particular Within the scope of this research, the author inherited the study concept of Dick & Basu (1994); Oliver (1999); Zineldin (2000); and Caruana (2002) Then the author proposed the concept of customer loyalty as follows: "Customer loyalty is the commitment in customer behavior and attitude that emphasizes intentions or plans coming back in the future, and recommend, encourage others to use your products/services” 1.2.2.2 The role of loyalty Customer loyalty plays an important role, and hotel businesses are trying to increase their customer loyalty through retention programs, loyalty programs, experiences and marketing strategies (Hallowell, 1996) Customer loyalty is important because loyal customers bring many benefits to businesses such as reduced advertising costs, increased profits, etc 1.2.3 The level of Customer loyalty According to Dick & Basu (1994), customer loyalty is seen as the strength of the relationship between an individual's relative attitude and repeat purchases Relative perceptions, feelings, and attitudes contribute to loyalty along with cognitive and behavioral outcomes… Loyalty is classified as follows: (1) Disloyalty: A low attitude associated with Low repeat behavior indicates a lack of loyalty (2) False Loyalty: A low attitude that accompanies high repeat behavior is false loyalty characterized by disproportionate influences on behavior; (3) Latent loyalty: Relatively high attitude with low repeat patronage, reflecting latent loyalty, an important relationship for marketers Because the nonrelational market influences such as subjective norms and situational effects are at least equal if not more influential than attitudes in determining patronage behavior (4) Loyalty: the most preferred of the four conditions, indicating a favorable correspondence between relative attitude and repetitive behavior 1.2.4 Customer loyalty cycle The loyalty cycle offers a way to build customer loyalty, including processes that are building a loyalty foundation; creating loyalty value and reducing the conversion ability of customers through digital marketing programs, customer management, specifically as follows: - To build customer loyalty, hotels need to segment the market by the needs of the target market and the hotel's resources At the same time, hotels need to select customers in line with their core values and ensure service quality for customers - To create a bond between the customer and the hotel, through customer reward programs such as financial rewards, financial fees at the same time, it is necessary to provide additional services and package selection services for customers The hotel wants customers to use its products/services without switching to competitors, customer managers take actions to reduce the likelihood of customers converting such as handling complaints 1.3 MAINTENANCE, DEVELOPMENT TOOLS, AND CRITERIA FOR ASSESSING CUSTOMERS LOYALTY To HOTEL 1.3.1 Tools to maintain and develop customer loyalty 1.3.1.1 Service quality Service quality creates an impact on the development of customer loyalty Service quality considers as one of the most frequently analyzed factors that determine customer loyalty The tangible and intangible nature of service quality is very important in assessing the customer's view of the service provider or the customer's trust in the business Five criteria to evaluate service quality are listed in order of relative importance to customers, which are: 1) Reliability: Reliability is the ability to provide service as promised reliably and accurately Reliable service performance is one of the basic expectations of customers; 2) Responsibility: The willingness to actively help customers and provide service with enthusiasm In the event of service failure, the ability to recover quickly can create a positive perception of quality 3) Assurance: Is performing service politely and respectfully to customers, communicating effectively with customers, genuinely caring, and keeping them confidential 4) Empathy: Shows attentive care, individual attention to customers Empathy includes the ability to reach out and make an effort to understand the needs of the customer 5) Tangibility is the presence of working conditions, equipment, people, and media 1.3.1.2 Price and terms of payment Hotel businesses can charge as many different rates as they want, but if customers perceive the hotel's price policy and payment method as not suitable for customers, this will affect their satisfaction, and they will not return to the hotel in the future Hotel businesses not just set a single price, but must develop a pricing structure that reflects changes in demand and costs according to market requirements, seasonality, and product/service volume ordering, and other factors Methods of determining rates in hotels, in particular: Based on the cost of the hotel; Discounts; Promotional rates; Distinguished rates according to the list of products/services the hotel provides to customers 1.3.1.3 Loyalty program Loyalty program is a marketing plan designed to increase customer loyalty by providing customer promotions with added benefits Most loyalty programs are designed with types: (1) the gift card with the lowest purchase price; (2) is a customer discount card (including gift cards, special discounts for members, great benefits programs for members); 11 positioning strategies in hospitality businesses have been identified such as: 1) Product features or special attributes; 2) Price/quality; 3) Customer's benefits; and 4) Product purpose 1.4.3.2 The hotel's physical and technical facilities Facilities are the provision of physical facilities to provide convenience to customers in performing actions or activities to be able to meet their needs Facilities are the physical resources available that support the existence of a business for goods or services Therefore, many aspects of the facility are considered by owners in their business operations Starting from the completion of facilities, the attractiveness of interiors, and exteriors design to the hygiene of facilities in the hotel business Empirical studies show that consumers consider the availability of facilities in making purchase and service decisions Facilities have a significant influence on purchasing decisions, customer behavior such as customer commitment, customer experience, and also influence retention and development of customer loyalty (quality of service, loyalty program, price and payment terms, which means that if the hotel has good facilities, customers will be interested in using the product/service and creating trust, good experience for customers 1.4.3.3 Hotel resources The resources of the hotel business are divided into tangible, intangible and human resources In particular, tangible resources include tangible assets of business that can bring advantage in production costs such as size, location, flexibility of equipment and input materials Intangible resources include technology, brand, and culture of hotel business In which, technological resources include intellectual property, patents…Human resources include relational, management and organization resources in the hotel business 1.4.4 Macro environment The thesis has synthesized macro-environmental factors affecting customer loyalty, including: Economy, politics - law; technology; sociocultural CHAPTER ASSESSMENT OF THE STATUS OF CUSTOMER LOYALTY IN THE HANOI HOTEL INDUSTRY 2.1 OVERVIEW OF THE HOTEL INDUSTRY IN HANOI 2.1.1 Overview of Hanoi city and the role of the hotel industry 2.1.1.1 Overview of Hanoi city Hanoi city is the capital, the economic - political - social center of Vietnam Therefore, the tourism - hotel industry in Hanoi not only attracts tourists but also diplomatic and 12 business guests participating in economic - political - social events Hanoi has great potential for tourism-hotel with hundreds of scenic spots, historical and cultural relics, traditional craft villages, and festivals 2.1.1.2 The role of the Hanoi hotel industry The hotel business plays a significant position in the socio-economic development in general and the hotel industry in particular In fact, operating revenue of the hotel business accounts for a large proportion in the tourism industry about 50 to 70% that reflects the importance of hotel service Thus, the hotel system cannot be separated from tourism industry, where has major contribution to the economy and employment In 2019, the hotel industry contributed 12.54% GDP of Hanoi city, of which the direct contribution of 5.16% and the indirect of 7.38%; at the same time, supplied 151,823 workers, accounting for 24.9% of the total workforce in the tourism industry 2.1.2 Overview of the hotel industry in Hanoi 2.1.2.1 Number of accommodation service establishments in Hanoi In Hanoi, there are currently 3,578 accommodation establishments with 64,887 rooms and apartments, bringing the total number of rated accommodation establishments to 576 hotels with 23,676 rooms, accounting for 16.3% There are 76 hotels/apartments rated from 3-5 stars with 11,863 rooms, reaching 13.19%) Specifically, 5-star hotels consist of 16 hotels with 5,153 rooms accounting for 2.78%; 4-star hotels have 19 hotels with 2,784 rooms, accounting for 3.30%; 3-star hotels include 33 hotels with 2,392 rooms, accounting for 3.73% 2.1.2.2 Average occupancy of hotels in Hanoi In 2016, the average occupancy of hotel rooms in Hanoi reached 59.02% In 2017, the average occupancy of hotel rooms attained 62.28%; and in 2018, the rate was 64.86% In 2019, the average capacity accounted for 67.9% higher than 0.13% in 2018 International guests stay mainly including Korea, China, and Japan In the first eight months of 2020, the average hotel occupancy estimated at 29.6%, decrease 40.8% over the same period in 2019 2.1.2.3 Revenue from accommodation activities Total revenue from accommodation services was VND 18,182 billion, of which VND 10,400 billion from international guests, accounting for 57.2% and from domestic tourists by VND 7,782 billion, accounting for 42.8% At the same time, the proportion of accommodation services gain 25.98% of the total revenue from tourists in Hanoi 2.1.3 Market and customer characteristics of hotels in Hanoi 13 2.1.3.1 Market characteristics of hotels The hotel's guest market is mainly Korea; China; Japan; America; Taiwan; British; France; Australia; Malaysia and Germany In which, the tourist market in Korea took the lead with 789,243 arrivals, an increase of 90,269 arrivals compared to 2018; followed by the Chinese market in 2019 with 699,752 arrivals, down from 69,973 arrivals in 2018, and the Japanese market in 2019 reached 338,945 arrivals, up from 35,299 arrivals in 2018 2.1.3.2 Number and structure of guests From 2016 to 2019, the number of tourists to Hanoi increased quickly and stably that the following year was higher than the previous year with the average increase reached 10.1%/year, specifically: In 2016, tourists to Ha Noi reached 21.83 million, in 2017 reached 23.83 million, in 2018 reached 26.30 million and in 2019 reached 28,945 million visitors The average growth rate of tourists reached 10.1%/year, exceeding the target of 8-10%/year average growth rate Regarding the total number of tourists, until to 2019, the rate has reached 96.49% compared to the set target in 2020 However, due to the impact of the Covid-19 epidemic, the number of tourists to Hanoi in 2020 is estimated at 8.65 million visitors, bringing the average growth rate of the whole period of decline (-6.0%) 2.1.3.3 Guest features In general, guests staying at hotels mainly come for pure tourism purposes (international guests: 83.5% and domestic guests: 48%) (1) International visitors: Coming to Hanoi to combine conferences and seminars accounted for 5.2%; trade accounted for 5.9%; festivals and beliefs accounted for 1.6%; other purposes accounted for 1.5%; visiting relatives accounted for 1.2%; press information accounted for 1.1% (2) Domestic visitors: Coming to Hanoi for commercial purposes accounted for 14.1%; visiting relatives accounted for 12.1%; conferences, seminars, training, short-term study accounted for 8.3%; medical treatment accounted for 6.3%; festivals and beliefs accounted for 4.6%; other purposes accounted for 4.5% and press information accounted for 2.1% 2.2 ASSESSMENT OF FACTORS AFFECTING CUSTOMERS’ LOYALTY TO HOTELS IN HANOI 2.2.1 Influence of customer behavior 2.2.1.1 Demographic characteristics 14 Guests staying in the hotel system in Hanoi are very diverse This is shown through criteria such as: Regarding gender, the proportion of men accounts for about 53% of the proportion of women; Occupation: Customers of the hotel system in Hanoi have the most occupations as public service guests, business accounted for 24.6% and office staff accounted for 19% These are customers with stable income, so they have conditions to combine work with sightseeing; Regarding nationality: The majority of international guests staying at the hotel system in Hanoi are Korean nationals, accounting for about 22.5%, Chinese guests accounting for about 15.5% and Japanese guests accounting for about 12 , 6% At the same time, the thesis also tested the difference between gender, age, job and nationality on customer loyalty, the results are as follows: 1) Gender variable: Sig Levene's Test is equal to 0.857 > 0.05 shows that the variances of the two sexes are the same; 2) Age variable: Sig Levene's Test equals 0.162>0.05 loyalty is higher in the age group from 46-50; over 55 and from 51-55, the lowest is the age group from 21-30 years old; 3) Job variable: Sig Levene's Test is 0.237 > 0.05, loyalty is higher in other occupational groups, researchers and business, the lowest is management 2.2.1.2 Customer experience Customers are quite satisfied with their experiences at hotels with an average value from 3.32 points to 3.57 points In which, 15.9% of guests rated level as completely agreeing with the level of the guest experience as positive when staying at hotels in Hanoi and 13.1% of customers rated it Customer's stay is well taken care of, polite and comfortable when staying at the hotel, and 12.9% of customers agree to have beautiful and memorable experiences when staying at the hotel For the group of 3-star hotels, some criteria are not satisfied by customers with a relatively low score such as that the customer has no good and memorable memories with 2.73 points and has positive experiences at the hotel with 2.84 points Meanwhile, these criteria are highly appreciated in the group of to 5-star hotels with 3.9 points and 4.55 points, respectively 2.2.1.3 Customer commitment The average value of customer commitment in the Hanoi hotel industry ranges from 3.13 points to 3.87 points This is a fairly high level of customer commitment In which, 16.8% of customers rated level completely agree that they like to stay at hotels in Hanoi and 15.6% of customers commit that they will not change their place of stay when they arrive In Hanoi, at the same time, 14.4% of customers pledged not to change hotels For the group of 3-star hotels, the average score was only 3.12 points, and for the group of 4- to 5star hotels, it was 4.11 points 15 2.2.2 The influence of competitors In the period from 2016-2020, along with the upward development of Vietnam's tourism industry, the number of tourist accommodation establishments of localities increased rapidly, including Hanoi, from which many appeared businesses in the hotel industry At the same time, in the era of technology 4.0, the application of technology and sharing economy has had a significant impact on hotel business such as room-sharing service and cross-border online travel service Booking.com, Agoda or Traveloka attracts a lot of attention from tourists 2.2.3 Internal influence of the hotel 2.2.3.1 Vision and strategy of the hotel industry in Hanoi The strategy of developing a system of hotels in Hanoi was issued by the Hanoi Party Committee in Resolution No 06 - NQ/TU in 2016 that is not to develop small-scale motels with less than 10 rooms, prioritize the development of high-class accommodation establishments of stars or more and the type of homestay tourism in tourist clusters that are: 1) Focus on building a system of accommodation establishments in core pool – Center of Hanoi; 2) Developing accommodation system along the development axes of satellite cities; 3) Developing a system of accommodation establishments associated with ecology along with the green belts; 4) Develop a system of accommodation establishments located in different regions 2.2.3.2 Actual situation of material and technical facilities of hotels in Hanoi As of the end of August 2020, the number of 3-5 star accommodation establishments in Hanoi ranked 4th nationwide, after Ho Chi Minh City, Da Nang, Khanh Hoa, while Hanoi ranked 2nd in terms of accommodation attract international visitors Facilities have an average value of 3.73 In which, the observation variable full and convenient utility services and the hotel rooms that are always ready and fully equipped are rated the highest (mean is 3.75 and 3.74, respectively), the observed variable is 3.75 and 3.74, respectively has the lowest rate is convenient hotel location is 3.70 At the same time, 36.3% of guests rated level as completely agree with full and convenient services when staying at hotels in Hanoi and 32.3% rated at level 5 with beautiful and attractive landscapes when staying at the hotel, and at the same time, 21% of customers agree that the hotel's location is convenient during travel and sightseeing while staying at the hotel 2.2.3.3 Current status of labor resources Labor in the field of hotels, restaurants (the sets of tables, rooms, bars, kitchens, receptionists) account for about 80% of the total number of employees in the tourism - hotel 16 industry, according to the results of a sociological survey on tourism human resources High-quality hotel of Hanoi Department of Tourism: the number of employees with high qualifications (university degree) in the hotel industry accounts for 37.8%, of which 23.5% of the employees have specialized university degrees otherwise, only about 14.3% of the employees working in the hotel system are trained in the right major 2.2.4 The influence of the macro environment Groups of external environmental factors affecting customer loyalty include: 1) Political environment, including the degree of political stability; attitude of State agencies and support policies of the State towards hotel businesses; 2) Economic environment, including economic growth; investment and development capital in Hanoi; 3) Technology environment, in which technology is applied to the actual experience at the hotel 2.3 THE STATUS OF CUSTOMERS’ FOR HOTELS IN HANOI 2.3.1 A tool to maintain and develop customer loyalty to hotels in Hanoi 2.3.1.1 Status of service quality of hotels in Hanoi Service quality has an average value of 3.93 compared to the base of hotel selection of 3.67 In which, the observation variable of fast and clean room service is rated the highest with 4.22 points, the second most appreciated criterion is the simple, accurate and easy booking process with a score of average is 4.12; The criterion with the lowest level is that the front desk department works quickly and professionally with only 3.74 points At the same time, 32.3% of the respondents completely agree and are satisfied with the complete and clear instructions of the hotel, making it convenient for customers during their stay at the hotel and 30.4% of Respondents completely agree and are satisfied with the quality of quick and clean room/room service when staying at the hotel, and 29.7% of the surveyed customers agree and are satisfied with the problems , my love is quickly and effectively resolved by the hotel staff and with that attitude, the careful and sincere care and responsibility of the staff at the hotel are also highly appreciated by customers with 29, 2% of the respondents completely agree and are satisfied with the attitude of the hotel staff during and after their stay 2.3.1.2 Status of prices and payment conditions of hotels in Hanoi The price and payment conditions of the customer with 3.93 points compared to the hotel option is 3.89 points, specifically: according to the customer's assessment, the most appreciated and satisfied criterion is the customer's amount The cost is worth the quality of service received with 4.17 points, followed by the price of additional services during the stay at the hotel in accordance with the needs of the customer with a score of 4.00 However, 17 some customers are not satisfied with the price of the room compared to their needs, so in this criterion, the customer only rated it with 3.74 points compared to the hotel selection base of 4.02 point At the same time, the percentage of customers rated with a 5-point scale in the criteria of price and payment conditions at the hotel, specifically: with 31.8% of customers being satisfied with the costs they spent to use the hotel Using products/services at the hotel, with 28.2% of customers satisfied with the price of additional services received, while the price of a room/room that is suitable for customers' needs is only rated at with a rate of 14.6% 2.3.1.3 Current status of loyalty program of customers in Hanoi The loyalty program is evaluated with 3.91 points, AND the satisfaction level ranges from 3.85 to 4.04 points, specifically The variable which customers appreciate and satisfied the most is “the loyalty programs that accumulate clear points: with 4.04 points, followed by specific and valid incentives for services at the hotel when returning to the hotel becoming a loyal customer is 3.96 points At the same time, the percentage of customers rated with a 5point scale in the criteria of loyalty programs at the hotel, specifically as follows: with 30.0% of customers completely satisfied with loyalty programs, and 23.2% of customers showed that loyalty program has clear benefits and is unique 2.3.2 Customer satisfaction Guests' evaluations of some service types in Hanoi are as follows: 1) For international visitors: The survey results of the Hanoi Department of Tourism show that accommodation services are 4.3 and have a high level, followed by food service with 4.2 points; entertainment services with 3.9 points; shopping service with 3.8 points; the lowest satisfaction level is transportation with 3.6 points; 2) For domestic tourists: The highest rating is accommodation service with 4.23 points; followed sightseeing and entertainment services with 4.14 points; food service with 4.09 points; shopping service with 4.09 points; The lowest satisfaction level is transportation with 3.9 points 2.3.3 Customer loyalty Loyalty is assessed through several criteria as follows: 1) Customer's length of stay, specifically international guests with an average length of stay in Hanoi of 3.7 days, an increase of 0.8% compared to 2018 and domestic tourists stay 2.4 days, up 3.4% compared to 2018; 2) Average spending level, specifically, the average spending of international guests with stay is nearly 2.8 million VND/day, an increase of nearly 6.7% compared to 2018; domestic guests staying at nearly 1.96 million VND/day, up quite 12% compared to 2018; 3) Spending number of stays and rate of returning guests, specifically, only 31.4% of customers 18 asked to return to times, 25.6% of customers to return from to times and 7.7% of customers return to stay at the hotel more than times and customer loyalty has an average value of 3.88 With a score ranging from 2.59 points to 4.09 points, specifically: the highest loyalty level is 4.09 points, which means that customers will not switch to another hotel when they need to stay in Hanoi, Next is that customers not care about marketing activities of other hotels when they have a need to stay and customers will say positive things about the hotel to everyone with a score of 3.97, followed by customer criteria committed not to move to another hotel when needing to stay in Hanoi with a score of 3.86 points 2.4 THE STATUS OF CUSTOMER LOYALTY AT SOME HOTELS IN HANOI 2.4.1 Current status of customer loyalty at JW Mariott Hanoi hotel 2.4.1.1 Introduction about JW Mariott Hanoi Hotel Hotel name: JW Marriott Hanoi; Address: No Do Duc Duc, Me Tri, Hanoi JW Marriott Hanoi Hotel, with a total area of meeting and conference rooms up to 5000 m2 JW Marriott Hanoi Hotel has floors including 450 rooms 2.4.1.2 Environmental factors affecting customer loyalty at JW Mariott Hanoi hotel Internal environmental factors include: 1) Vision and strategy of the hotel, JM Marriott hotel: “Become a favorite hotel in the world”; 2) Model of organization and management; 3) Material and technical facilities; 4) Human resources of the hotel External environmental factors affecting customer loyalty are competitors such as Wyndham Destinations Group, Intercontinental Hotels, Hilton Worldwide, Hyatt Hotels, Four Seasons Hotels and Resorts, Millennium & Copthorne specifically, direct competitors with JW Marriott Hanoi hotel include Intercontinental Hotel Group; Hanoi Landmark 72; Crowne Plaza West Hanoi; Hanoi Westlake, etc 2.4.1.3 Status of tools to maintain and develop customer loyalty at JM Mariott Hanoi hotel a Service quality Service quality has an average value of 3.89 In general, customers highly appreciate the service quality factor In which, the variables observed “the staff takes care carefully and sincerely, the room service is prompt and clean, and the instructions of the hotel are complete and clear” are rated the highest (mean 4.09) The lowest rating is the variables observed “the simple, accurate and easy booking process and good restaurant service and extensive menus” at 3.64 b Accommodation rates and payment terms 19 Accommodation rates and payment terms have an average value of 3.68 In general, customers appreciate the price and payment conditions of the hotel In which, the observed variable “the amount of money spent is worthy of the service received and the form of payment is quick and convenient” highest rates with mean equals 3.87 and 3.82, respectively The observed variable “the room price in line with demand” is the lowest of 3.36 c Loyalty program The loyalty program has an average value of 3.67 In general, customers appreciate the \ loyalty program factor In which, the observed variable “obvious benefits and unique properties (LOP4)” and “clear rules and fast registration process (LOP5)” were rated the highest (means equal to 3.78 and 3.71), respectively The observed variable with the lowest level is “the attractive offer of room/service price (LOP1)” of 3.55 2.4.1.4 Evaluation of customer satisfaction and loyalty about JM Mariott Hanoi hotel a Customer satisfaction The commitment to the hotel and the customer satisfaction with the hotel are rated the highest (means 4.02 and 4.19), respectively The observed variable with the lowest level is “the hotel in accordance with the needs and styles of customers” by 3.76 Meanwhile, the general assessment of customer satisfaction with the group of to star hotels is 3.75 points of JW Marriott hotel, showing service quality, price, and customer care program is highly appreciated by the staying guests b Customer loyalty Customer loyalty at JW Marriott hotels has an average value of 3.66 In which, the observed variable “Customer will continue to stay at the hotel even though the customer knows this is not the best choice” reaches of 3.98 points, because the number of guests are mostly business guests, hence the hotel has signed contracts with companies and groups The criterion of customer commitment to the hotel when needing to stay in Hanoi is 4.09 points compared to the overall commitment of guests assessed for the hotel group to stars is very high However, among the respondents, there are also several customers who are not satisfied and not choose the hotel for the next stay with 2.04 points 2.4.1.5 The results of hotels The guest market of JW Marriott in 2019 compared to 2018 increased by 30,228 visitors, corresponding to an increase of 14.89%, which includes: international guest market, we can see the number of European guests Europe increased by 3,832 turns, equivalent to 18.66%; The number of Korean, Japanese and other international arrivals increased 20 specifically: Korean visitors increased by 23,904, representative to an increase of 33.03% Japanese visitors increased by 2,731 turns, equivalent to 4.85% Other international markets such as Japan, British increased by 1,097 turns, equivalent to 11.84% As a result of the hotel's recent revenue, total revenue in 2019 increased by VND 185,280 million, equivalent to 31.93%, of which food and beverage sales increased faster than revenue of accommodation and other services Specifically, accommodation revenue increased by 37,930 million VND, equivalent to 116.1%, food service revenue increased by 115,100 million VND, equivalent to 44.54%, other service revenue was 14,380 million VND, equivalent to 29.76% 2.4.2 Status of customer loyalty at Spring Flower Hotel 2.4.2.1 About Spring Flower Hotel Spring Flower Hanoi Hotel is at 45 Hang Bo, Hoan Kiem District of Hanoi The hotel was built at the end of 2012 and officially came into operation in October 2014 with a total of 50 rooms 2.4.2.2 Environmental factors affecting customer loyalty at Spring Flower Hotel Internal factors of the hotel include 1) Perspectives and goals; 2) Model of organization and management; 3) Physical and technical facilities, including accommodation products and services, food service products and complimentary services; 4) Human resources of the hotel The external factor of the hotel is that its main competitors are other restaurants and hotels in Hanoi 2.4.2.3 The status of tools to build and develop customer loyalty at Spring Flower Hotel a Service quality Service quality has an average value of 3.01 In which, the variable “room service is clean and fast” has the highest mean value of 3.20, followed by the variable “the complete and clear hotel indications” of 3.08; “Staff solves customer's request quickly” by 3.12 and the variable with the lowest average value is “good restaurant service and rich menu” of 2.65 b Accommodation rates and payment terms Accommodation rates and payment terms have an average value of 3.22 In which, the highest rated observed variable is “the detailed and clear payment invoice” by 3.61, followed by “the customer's assessment of the amount of money spent worthy of the service received” of 3.60 and “fast and convenient payment method” is rated the lowest with a mean of 2.93 c Loyalty program 21 The loyalty program has an average value of 2.87 Of which, the observed variable with the highest mean value is “the clear points program and rules, the fast registration process” of 3.01 and the observed variable with the lowest level is “the attractive offers for room/service price” by 2.65 2.4.2.4 Customer reviews about Spring Flower Hotel a Customer satisfaction Customers are relatively satisfied when staying at Spring Flower Hotel Specifically, the criterion with the highest average value of 3.09 is “The hotel matches the customer's needs and styles”, then the criterion “the hotel meets the customer's needs well” with mean value of 3.12 b Customer loyalty Customers are loyal to the hotel chosen, ranging from 2.67 points to 3.36 points In which, the observed variable “Customer will continue to stay at the hotel even though it is known that this is not the best choice” rates the highest points by 3.36, because most of the customers asked are public, office or business guests staying during this time The observed variable “Customers will not choose a hotel when they need to stay in Hanoi” has the lowest reaching 2.67 points 2.4.2.5 The hotel's results The market of the hotel industry is developed from 2018 to 2019 when attracts a large number of tourists to Vietnam As a result, the number of visitors to the hotel also increased significantly Especially, international visitors increased faster than In 2020, witnessing a decline in the visitor market, due to Covid19, the total number of visitors stay at the hotel decreased by 53.02% compared to 2019, in which, international visitors by 77.55% and domestic visitors by 13.81% Due to the impact of the Covid19 pandemic, business results of the hotels in 2020 witnessed a decrease in total revenue compared to 2019 by 19.45%, of which accommodation revenue decreased by 50.45% followed by food service of 53.06% 2.5 ASSESSMENT OF THE CUSTOMER LOYALTY IN HANOI HOTEL INDUSTRY 2.5.1 Challenge and opportunity With the complicated developments of the domestic and international Covid-19 pandemic, the domestic economy is still facing many difficulties, and the tourism industry in general and the hotel business in particular face potential risks and wisdom Meanwhile, the competition is getting tougher among hotel industry, requiring more efforts to retain 22 customers and seek to new markets At the same time, the 4th industrial revolution opens up new business opportunities in the tourism - hotel industry 2.5.2 Convenience and success Receiving great attention from the State with facilitating policies for the development of the accommodation system in Hanoi, living standards are improving, and demand for resort services and tourist attractions is increasing Hotel businesses in Hanoi have gradually applied digital technology solutions and standardized services Room-sharing services such as Airbnb and cross-border online travel services such as Booking.com, Agoda, and Traveloka attract a lot of attention from tourists 2.5.3 Limited and causes 1) The hotel system in Hanoi still faces many difficulties in building trust, and satisfaction for customers 2) Most of the scale in the hotel enterprises is small, the competitiveness is not high, the quality is limited, and the proportion of quality establishments that meet the standards of to stars is not high 3) Entertainment services lack in quantity, and quality, which has not met the needs of customers 4) Tourism technical facilities such as accommodation establishments, tourist service establishments are not synchronous as well as the uneven quantity, quality 5) The quality and quantity of human resources in hotel services have not kept pace with the rapid development of city tourism, and the lack of a professional workforce CHAPTER SOLUTIONS TO MAINTAIN AND DEVELOP CUSTOMER LOYALTY IN HANOI HOTEL INDUSTRY 3.1 ENVIRONMENTAL FORECAST AND HOTEL MARKET IN HANOI 3.1.1 Forecast of macro-environmental impacts on hotels in Hanoi Forecasts of macro-environmental impacts on hotels in Hanoi include: 1) Economic environment such as economic growth rate (GDP), inflation, unemployment, exchange rate, bank interest rate, per capita income, spending structure, income differentiation; 2) Technology environment where more customers are searching for accommodation via social networks, the internet or mobile applications; 3) Political - legal environment including legal system, sub-law documents, and 23 policy tools of the state; 4) Socio-cultural environment includes social institutions, social values, traditions, religion, and attitudes of society 3.1.2 Forecast of the hotel market in Hanoi For forecasting the demand for accommodation development in Hanoi in the period of 2021-2025 with a vision to 2030, the number of tourists coming to Hanoi in 2020 can reach of 23,200,000, and the total number of rooms is 58,100 for tourist accommodation facilities For the hotel market supply in Hanoi, the city has decided on investment policy and adjusted investment policy in 40 luxury hotels, and apartment projects (from 3-5 stars) The projects concentrated in South Tu Liem (10 projects), Cau Giay (10 projects), Tay Ho (14 projects), Ba Dinh (11 projects), Hoan Kiem (7 projects), Dong Da (06 projects), Hai Ba Trung (02 projects), Long Bien (03 projects), Thanh Xuan (04 projects), Hoang Mai district (01 project), and Ha Dong (02 projects) 3.2 VIEWPOINTS AND ORIENTATIONS FOR THE DEVELOPMENT OF THE HANOI HOTEL INDUSTRY The viewpoints and orientations are to develop a hotel system with high quality, efficiency and competitiveness, and at the same time actively grasp the development trend and international integration using advanced and modern science, technology and highquality human resources as breakthrough factors to develop the tourism industry in general and the hotel industry em in particular 3.3 SOLUTIONS TO MAINTAIN AND DEVELOP LOYALTY CUSTOMER Loyalty 3.3.1 Completing research on customer loyalty Objectives of completing the research are: 1) New research was carried out in Hanoi; 2) The study only surveyed customers staying at hotels in Hanoi, but not related subjects such as businesses, and state management agencies 3.3.2 Innovating technical facilities Objectives of the solution are: 1) Increasing investment in upgrading existing technical foundations, applying scientific and technical advances (modernization, computerization) to business activities; 2) Strengthening the diversity and characterization of products and services, creating a unique national culture to make a difference in products, maintaining the prestige and creating a brand for the establishment; 3) Training and fostering a contingent of officials and employees according to new technologies, suitable to their qualifications; 4) Strengthening security, safety, fire prevention and fighting, food hygiene and safety 24 3.3.3 Improving the service quality of the hotel Objectives of the solution: 1) Improve the quality of human resources including managers and employees; 2) Diversify types of training and retraining; training and fostering human resources in the tourism industry in general and the hotel industry in particular; 3) Build a reasonable human resource structure which links training with using on the basis of meeting the requirements of the accommodation system 3.3.4 Completing the price policy and payment conditions The goal of the solution: Hotel industry needs to come up with a fair and flexible pricing policy in line with their business operations Fair price in using products/services in the hotel positively affects perceived value and satisfaction and thereby creates positive emotions and behaviors of customers 3.3.5 Developing loyalty programs The goal of the solution: Developing a loyalty program plays an extremely important role in hotel business Attracting new customers in the hotel industry is important, but retaining customers to increase the number of returning customers is even more important through loyalty programs, which are: 1) Issuing loyalty cards; 2) Categorizing customers by frequency of stay and points accumulated by customer groups 3.3.6 Increasing positive customer experience The goals of the solution which include increasing positive customer experience and optimizing operating costs are the necessary requirements in hotel management The new trend of increasing customer experience are: 1) Personalizing customer experience; 2) Augmenting virtual reality interaction; 3) Experiencing artificial intelligence 3.3.7 Increasing customer commitment The goal of the solution: Hotel businesses that want to increase customer commitment to their hotel need to (1) understand what the real needs of customers are; 2) increase the level of customer satisfaction by improving the quality as well as the interaction between the customer and the hotel 3.3.8 Reducing customer conversions In order to reduce the conversion of customers, the hotel industry needs to implement the following solutions consisting of finding out wish of customer (1); Being consistent in quality of products and services in the hotel (2); and (erforming)? customer care service carefully and attentively (3) 3.3.9 Other solutions The objective of the solution is to develop tourist accommodation establishments with the number, grade and type suitable for each group of customer The development of 25 accommodation establishments must be consistent with the plans and orientations about local socio-economic development 3.4 MAJOR RECOMMENDATIONS This section discusses the recommendations to create favorable conditions for the development of the hotel industry in Hanoi These recommendations are related to: 1) Improving the legal framework, mechanisms and policies related to the hotel industry; 2) Encouraging cooperation and investment in the hotel industry; 3) Building mechanisms and policies to support tourism-hotel businesses to overcome difficulties caused by the Covid-19 epidemic; 4) Raising stakeholder awareness on maintaining and developing customer loyalty ... customer loyalty at JW Mariott Hanoi hotel 2.4.1.1 Introduction about JW Mariott Hanoi Hotel Hotel name: JW Marriott Hanoi; Address: No Do Duc Duc, Me Tri, Hanoi JW Marriott Hanoi Hotel, with a total... operation such as JW Marriott Hotel, Lotte Center, Grand Plaza, InterContinental Westlake, etc In addition, the demand, tastes, and quality requirements of customers are getting higher with more... classified as follows: (1) Disloyalty: A low attitude associated with Low repeat behavior indicates a lack of loyalty (2) False Loyalty: A low attitude that accompanies high repeat behavior is
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