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Covid 19: Resilience-Building Strategies for Elevating Customer Satisfaction in the Luxury Hotel Industry

Covid 19: Resilience-Building Strategies for Elevating Customer Satisfaction in the Luxury Hotel Industry

Dr. Sara Sarwari, Tanvir Ahmed Minar

Department of Business Administration, Stamford University Bangladesh

DOI: https://dx.doi.org/10.47772/IJRISS.2024.804070

Received: 15 March 2024; Accepted: 06 April 2024; Published: 06 May 2024

ABSTRACT

The purpose of this study is to investigate the post-COVID-19 expectations of luxury hotel customers and identify the strategies that focused on customer satisfaction and evaluate the resiliency of the luxury hotels. The study utilized SurveyMonkey and email as the primary means of gathering responses. A total of 400 participants were chosen from the sample population for the purpose of conducting the final research, by using the structural equation modeling. The paper conducting an examination into the enduring effects of strategies on customer satisfaction and resilience of luxury hotels might yield new insights that enhance the strategic planning and decision-making processes within the luxury hotel category. The findings from the research pertaining to the influence of room amenities, staff performance, and common space facilities on customer satisfaction, as well as their subsequent implications for hotel resilience in luxury establishments following the COVID-19 pandemic, unveil a number of noteworthy observations.

Key Words: Covid 19, Luxury Hotels, Hotel Resilience, Customer Satisfaction.

INTRODUCTION

The coronavirus (COVID-19) pandemic has had a profound impact on personal and social life, as well as the global landscape, making it one of the most significant events of this century (Zenker and Kock, 2020). The epidemic has affected several industries, including the hotel sector, where both the economy and luxury categories have seen similar levels of effect. According to Andersen (2022), projections indicate that the tourism and travel sector is expected to expand into a market valued at $1.7 trillion by the year 2023. However, rather of capitalizing on the projected robust growth in the hotel industry, hoteliers find themselves confronted with the most challenging period in the business history. In accordance with the given information, it is an urgent problem for all hotels and employees to maintain survival and seek development in crisis and adversity (Xie et al., 2023). Luxury hotels, also has been significantly affected by the COVID-19 pandemic (Karatepe et al., 2021; Hall et al., 2021). The outbreak of the pandemic resulted in the temporary and permanent closure of several luxury hotels. Moreover, the hotels that chose to remain operational were obligated to implement additional health and safety measures to safeguard the welfare of both its guests and employees. (Donthu and Gustafsson, 2020).  The Hilton Hotel Times Square ceased its operations in October 2020, while the New York Marriott Eastside also shuttered as a result of the COVID-19 pandemic (Rotondo, 2021). According to a business report from Marriott in 2020, around 25% of the company’s global portfolio of 7,300 hotels experienced temporary closures due to the travel implications resulting from the coronavirus outbreak (Today, 2020). Based on the assumption of a three to six-month duration for the epidemic, it has been reported that Hilton has taken the decision to temporarily close 150 of its properties in China as a result of the coronavirus (Miller, 2020). The Hyatt Regency Mumbai, Rochester, Radisson Blu Nairobi Upper Hill, and St Julian’s hotels saw temporary closures as a result of the global epidemic (Chaturvedi ,2021; Chronicle ,2020; Malta Independent, 2020; Alushula 2020). Many individuals are embracing a hybrid work style in the aftermath of the pandemic. According to Expedia, 76% of scheduled business visits are prolonged and some even transition into vacations. Hotels cater to this demographic by providing a well-equipped work desk, a suitable laptop arrangement, writing supplies, and coffee or tea available in a pleasant hotel setting (How Luxury Hotels Are Adapting to Post-pandemic Travellers in 2023 – SilverKris, 2023). Despite ongoing efforts to recover, hotels are nevertheless facing persistent challenges across many sectors (Sinclair, 2023). Given the immense economic significance of the hotel industry, it was crucial to develop specific strategies that might successfully mitigate the negative impacts of the pandemic. The primary purpose of these strategies is to facilitate the restoration of hotel operations and mitigate the adverse consequences resulting from the crisis (Rodríguez-Antón and Alonso-Almeida, 2020). Empirical research plays a crucial role in the industry by facilitating the development of accurate strategies that may effectively handle the prevailing epidemic and luxury hotels for the predicted resurgence (Herédia-Colaço and Rodrigues, 2021, Lai and Wong, 2020).  The purpose of the study is to examine what luxury hotel guests should expect in the wake of COVID-19 and what efforts hotels can take to live up to those expectations and make the customer satisfy. Moreover, in an era defined by uncertainty, assessing the long-term resilience of luxury hotels, guided by guest satisfaction-driven strategies, is essential (Melián-Alzola et al., 2020). The research delves into the intricate dynamics between room amenities, staff performance, common space facilities, customer satisfaction, and the resilience of luxury hotels in the post-pandemic era.

Customers would expect hotels to embrace new room amenities in the post-pandemic era, such as contactless delivery and improved cleaning techniques (Hassan, 2020). The emphasis on health and safety has been another most fundamental improvement in what customers demand from luxury hotels (Berry et al., 2020). In addition to health and safety measures, in the post-pandemic world, customers would expect hotel staff to have a thorough understanding of health and safety protocols, to be knowledgeable about local regulations and restrictions, and to be able to provide clear and accurate information to guests (WHO,2020). Furthermore, expectation for hotels to implement new policies for the usage of communal spaces in the post-pandemic world, including improved cleaning and disinfection practices, social distancing measures, and restrictions on the number of visitors using the facilities at once should be also considered (Bonfanti et al., 2021). In order to decrease the necessity for physical interaction, guests expect hotels to offer contactless payment methods like smartphone payments or digital wallets (Rajamani,2023). The majority of existing research mostly concentrates on the immediate consequences, so leaving a knowledge vacuum on the enduring implications of customer satisfaction on hotel resilience in the aftermath of the COVID-19 pandemic. There remains a research gap in a comprehensive study of the interaction and combined impact of the factors on customer satisfaction and subsequently, the resilience of hotels. Added to that, the measurement and definition of “hotel resilience” in the post-COVID-19 setting is an area of research that lacks quantitative analysis, despite its significance as an indication of customer satisfaction. The research can contribute in post pandemic situation by providing valuable insights that can help the luxury hotels to adapt and remain viable in a constantly changing and challenging hospitality environment. These strategies emphasize the importance of a customer-centric approach, operational flexibility, and long-term sustainability.

The following research questions might be investigated in this paper:

  • In luxury hotels, how the modifications in room amenities impact on customer satisfaction?
  • What is the correlation between staff performance, and customer satisfaction that explores the impact on repeat visits?
  • In what extent common space facilities influences on customer satisfaction with their overall hotel experience in a post-pandemic setting?
  • What are the potential resilience strategies that hotels might formulate by analyzing the interplay between these factors and customer satisfaction?

LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT

The field of hospitality studies has historically placed less emphasis on the concept of resilience compared to the field of tourism. However, there is an increasing interest in exploring resilience within the hospitality industry (Ritchie and Jiang, 2021). The COVID-19 pandemic has undeniably served as a significant catalyst for study pertaining to resilience within the hospitality industry. The notion of resilience has become widely recognized as a crucial factor for businesses, organizations, customers, and communities within the hospitality and tourist sector to effectively respond, adapt, and endure both external and internal changes (Pocinho et al., 2022). The extent to which an organization can maintain resilience during the COVID-19 crisis is heavily influenced by its capacity to comprehend the dynamics of the changing circumstances. This understanding is necessary to identify the essential factors that will influence the long-term viability of a hotel and to establish a plan that promotes resilience (Melián-Alzola et al., 2020).  However, despite the widespread acceptance of resilience as a crucial aspect in maintaining organizational stability during times of crisis (Bhamra, et al., 2011), there exists a noticeable gap in the overall resilience of hotels (Chowdhury, 2018). Multiple scholars, including Jian et al. (2020), have posited that the COVID-19 pandemic has instigated a series of unparalleled transformations inside the hotel industry. Numerous investigations have been undertaken throughout the preceding three years to examine the effects of COVID-19 on the hotel sector. An illustrative instance is the qualitative study undertaken by Guillet and Chu (2021), whereby revenue managers at hotels in Asia were interviewed. The study revealed a decline in hotel demand, irrespective of the use of revenue management measures. According to the study conducted by Ozdemir et al. (2021), it was seen that jurisdictions with more rigorous travel and gathering limitations had a decline in demand.

In order to address the research questions, luxury hotels can effectively prioritize customer satisfaction while simultaneously building resilience to efficiently manage challenges posed by calamities such as the COVID-19 pandemic. This can be achieved by implementing the following strategies (Figure 1):

Figure 1. Research Framework

  • Strategies to satisfy customers by providing supplementary room amenities to customers

In response to the COVID-19 pandemic luxury hotels have included additional amenities within their hotel rooms to enhance visitor safety and overall comfort. Luxuries include air purifiers, UV-C sanitizing wands, and disposable slippers. UV-C sanitizing wands can be employed by hotels to efficiently clean high-touch surfaces, including remote controls, light switches, and door knobs (CNBC, 2020). In addition to hotel accommodations, many hotels also provide guests with hygiene kits with essential items such as hand sanitizer, masks, and disinfection wipes (Hsieh et al., 2021; Kim & Han, 2022). These additional amenities not only enhance the overall satisfaction of the guests but also contribute to their sense of security and tranquility. In the post-COVID-19 era, luxury hotels provide air purifiers as part of their in-room amenities (Bonfanti et al., 2021). Air purifiers aid in the cleaning of the air by removing allergies, dust, and pollutants (Sublett et al., 2010). In the era after the COVID-19 pandemic, these hotels have also begun providing guests with disposable slippers. (Eidukynaite, 2022). These goods are frequently fabricated using non-woven textile or paper materials and are designed for single-use purposes alone (Why Are Hotel Disposable Slippers Not Household Slippers, n.d.). The provision of disposable slippers serves as a strategy to meet customer satisfaction by minimizing contact with frequently touched surfaces within the room and provide a sense of reassurance among guests that they are not sharing slippers with previous occupants thereby reducing the risk of transmission. A satisfied customer is more likely to engage in repeat visits to the hotel, provide positive reviews, and recommend it to others, so improving its reputation and ensuring a consistent stream of revenue. Following this review of the literature, the subsequent research hypothesis is formulated:

H1: Room amenities have positive influence on customer satisfaction

  • Strategies aimed at meeting customer satisfaction through staff performance

The concept of staff performance may be seen as the results or contributions of employees in relation to the achievement of pre-established goals (Viswesvaran & Ones, 2000). Gibson (2012) defined Staff performance as the results or contributions of employees in connection to the achievement of established goals. It encompasses the evaluation of employee morale, as well as the effective and efficient fulfillment of mutually agreed-upon responsibilities. Lee et al. (1999) provided a comprehensive overview of the performance of staff members in terms of quality, efficiency, and effectiveness. The global pandemic has resulted in significant disruptions within the hotel business, manifesting as shifts in client preferences and alterations to workforce needs.  Following the occurrence of a pandemic, it is anticipated that customers will hold the expectation that hotel staff were provided with sufficient training about COVID-19 safety protocols exhibited enhanced self-assurance in their capacity to uphold hygiene standards and were more proficient in addressing guests’ concerns pertaining to the pandemic (Salem et al., 2021). The professionalism and strict attention to safety protocols exhibited by the staff contribute to heightened visitor pleasure, resulting in favorable evaluations, increased patronage, and the establishment of a loyal customer base. In order to uphold superior service quality and ensure guest satisfaction, luxury hotels must exhibit flexibility and adaptability in their operational strategies and procedures (Andersen, 2022). The first line of defense against the transmission of the virus consists of staff members who have received comprehensive training and possess appropriate equipment, while also adhering to stringent safety and hygiene regulations (Rawal et al.,2020). Staff members who are empowered and prioritize safety are a crucial resource in satisfying customers and establishing a resilient hotel capable of enduring the uncertainties and interruptions associated with the pandemic and other emergencies. The literature review supports the formulation of the following study hypothesis:

H2: Staff performance has positive impact on customer satisfaction

  • Providing common space amenities as a customer satisfaction strategy

The provision of common area amenities by luxury hotels plays a crucial part in enticing customers, since these facilities offer a diverse array of services and amenities that seek to enhance the overall quality of visitors’ stays. These locations often have facilities such as swimming pools, fitness centers, wellness centers, and dining establishments. Empirical research has demonstrated that consumers place considerable significance on specific amenities when selecting a hotel (Cró & Martins, 2017). The study conducted by Ali et al. (2021) revealed a substantial correlation between the quality of a hotel’s amenities and the level of client satisfaction with their stay. Similarly, Rasoolimanesh et al. (2023) was shown that consumers’ desire to revisit a hotel and promote it to others is influenced by their impressions of the hotel’s services. The inclusion of shared facilities is essential not just for guaranteeing customer satisfaction but also for enhancing the long-term viability of hotels in the post-COVID-19 age. Given the importance of common amenities in boosting visitor pleasure, hotels are obligated to develop strategies that allow for the ongoing supply of these services, while also addressing health and safety concerns in the aftermath of the COVID-19 pandemic. Hotels have implemented several strategies to ensure the safety of guests in shared areas within the continuing epidemic. The authors Shin and Kang (2020) have highlighted the considerable focus on implementing improved cleaning and disinfection practices. Hotels utilize electrostatic sprayers for the purpose of sanitizing surfaces and equipment, while also including air purifiers to improve the interior air quality (Chen & O’Keeffe, 2020). Davras and Durgun (2022) have proposed an alternate strategy including the use of social distancing measures inside public areas. Furthermore, there have been implemented mechanisms to limit the occupancy of the elevator to a specific number of individuals at any given moment. In a similar vein, restaurants may employ staggered eating schedules as a strategy to alleviate issues related to excessive crowding (Humagain & Singleton, 2021). Moreover, there has been a significant rise in the use of contactless check-in and payment technology within the hotel business. The progress made in this area has led to a decrease in the need for individuals to actively interact with hotel personnel and reduce their physical contact with frequently touched surfaces (Iqbal & Campbell, 2021). Numerous alterations have been executed across the brand’s diverse establishments, encompassing the deployment of hand sanitizer stations, the installation of plexiglass barriers at the reception area, the enforcement of mask mandates, the implementation of more stringent cleaning procedures utilizing hospital-grade materials and electrostatic sprayers, as well as the adoption of contactless payment alternatives(Bagnera, Dalton, Szende & Legg, 2022);.  Several hotels have made changes to their food and beverage operations, choosing to provide alternatives like room service or takeaway choices in place of conventional sit-down dinners.  The research is now underway to assess the effects of these initiatives on customer satisfaction (Liang et al., 2021).  Given this assumption, we put up the subsequent research hypothesis:

H3: Common space facilities has positive impact on customer satisfaction

  • Effects of customer satisfaction strategies on hotel resilience

According to, the domain of customer satisfaction holds significant importance inside every organization. The importance of customer satisfaction is paramount within the service sector, namely within the realm of the hotel business (Edvardsson, Johnson, Gustafsson & Strandvik, 2000).

The impact of the COVID-19 epidemic has heightened the significance of customer satisfaction as a crucial determinant of hotel resilience. The epidemic has had a significant and far-reaching effect on the hospitality sector, leading to extensive disruptions and necessitating hotels to swiftly adjust to an evolving landscape. The impact of customer satisfaction on a hotel’s resiliency is undoubtedly noteworthy. Following COVID-19, The concept of hotel customer satisfaction encompasses a range of factors that revolve on the aspects of health and safety, in addition to the holistic visitor experience (Srivastava & Kumar,2021). Guests exhibit a heightened level of worry over their health and safety, hence necessitating hotels to implement suitable measures to safeguard their overall well-being. This is expected to be complemented by a tailored experience, the integration of contactless technologies, efficient communication, and diverse food and beverage offerings (Pillai, Haldorai, Seo & Kim, 2021). In addition, it is expected that customers desire hotels to provide a satisfactory and enjoyable experience throughout their stay (Padma & Ahn, 2020). Hotels that place a high priority on these qualities and demonstrate adaptability to evolving tourist expectations are more inclined to achieve higher levels of satisfaction and foster repeat patronage. The phenomenon of repeat business and positive word-of-mouth may play a crucial role in sustaining a consistent flow of money, especially in the face of adversities (Tepeci, 1999). Hotels that place a high emphasis on cleanliness, sanitation, and guest safety, and successfully convey these measures to their guests, have the potential to restore confidence and enhance guest satisfaction ( Bagnera, Dalton, Szende & Legg, 2022). It is more probable that guests will exhibit a higher tendency to revisit and endorse a hotel if they possess a sense of confidence in relation to the establishment’s health and safety measures. This underscores the crucial role of customer satisfaction in effectively addressing the persistent issues encountered by the hospitality sector. Based on this literature review, we propose the following study hypothesis:

H4: Customer satisfaction has positive impact on hotel resilience.

METHODS

  • Research Design

The research has employed a descriptive design, facilitating the description, explanation, and validation of the research findings (Siedlecki, 2020). When prioritizing cause-effect relationships, researchers may adopt a causal method to clarify the precise factors that contribute to certain outcomes (Yin, 1994). The study’s stated purpose and research questions indicate that the major emphasis of this research was to offer a descriptive and causal analysis. The researcher performed a study with the purpose of investigating a specific research question by employing survey methodology to gather and analyze relevant data. The objective of this study is to investigate the causal association between a set of independent factors, specifically room amenities, personnel precautions, and common area facilities, and two dependent variables, namely customer satisfaction and hotel resilience. This particular investigation employed quantitative research methodologies. The utilization of a quantitative methodology facilitates the clarification of existing circumstances or the exploration of the correlation between variables (Creswell, 2013; Firestone, 1987; Scandura & Williams, 2000). The survey research design is utilized to address research inquiries and evaluate the research hypothesis (Burns, 1997; De Vaus, 2002). Prior to data collection, a pretest was conducted to ascertain the clarity of the questions and to guarantee that their language was devoid of any ambiguity. During this phase, the refinement of the data collecting instrument led to an improvement in the overall quality of the instrument and therefore, an enhancement in the internal validity of the obtained results (Bonfanti et al., 2021). This study examines the correlation between several techniques that luxury hotels might employ in the aftermath of a pandemic to enhance customer satisfaction and eventually bolster hotel resilience.

  • Sampling and Data Collection Procedure

The study employs purposive and snowball sampling, a technique utilized to choose individuals who are expected to provide significant and pertinent data. The optimization of scarce research resources is achieved via the utilization of this approach, as outlined by Palinkas et al. (2013). The target sample for this study consisted of customers who had stayed at five-star hotels in different parts of the world. To ensure the attainment of a representative sample for the study, the researchers established communication with prospective clients who met the three predetermined criteria: 1. The sample comprises persons who have previously patronized a luxury hotel with a rating of five stars or above. 2. The aforementioned people have a predilection for revisiting the same hotel later to the COVID-19 pandemic. 3. The sample exhibits diversity with respect to gender, educational background, purpose of travel, and geographic area. As a result of the limitations presented by the global epidemic, participants were questioned using SurveyMonkey and email as a method of contact. In several instances, researchers (Hewson et, al., 2016) choose to conduct asynchronous online interviews as a means of accommodating time limitations during this challenging period. The approach employed aligns with contemporary studies in the field of hospitality management, as shown by Hight et al. (2019).  The study, thus, centered on the analysis of data obtained throughout three discrete timeframes: June to November 2021, August to November 2022, and March to June 2023. Each interview session had an approximate duration of four minutes. A total of 424 questionnaires were gathered, out of which 400 were selected for study purposes. The questionnaire was developed in alignment with the previously mentioned studies(Salem et al., 2021 ; Bonfanti et al., 2021; Hsieh et al., 2021; Chen & O’Keeffe, 2020; Kim & Han, 2022; Suhaimi et al., 2022; Davras and Durgun 2022). The assessment of all variables in this study was performed utilizing a 7-point Likert scale, where a score of 7 denoted strong agreement and a score of 1 denoted strong disagreement (7= strongly agree, 6= agree, 5= somewhat agree, 4 neither/nor, 3= somewhat disagree, 2= disagree, 1= strongly disagree) (Vagias,2006). According to the data presented in Table 2, the researchers employed a set of 6 items to assess the quality of room amenities, a set of 5 items was utilized to evaluate staff performance, common space facilities, and hotel resilience and set of 4 items was employed to measure customer satisfaction.

Other than Likert scale, a number of demographic questions were also included in the questionnaire. Table 1 and Figure 2 presents the demographic characteristics of the respondents.

Table 1. Demographic Characteristics of the Respondents

Characteristics Frequency Percentage (%)
Gender
Female 226 53.30%
Male 198 46.70%
Age
Less than 25 42 9.91%
25-34 85 20.05%
35-44 187 44.10%
45-54 80 18.87%
55 and above 30 7.08%
Hotels Visited Before Pandemic
Marriott 88 20.75%
Hilton 151 35.61%
Hyatt 37 8.73%
InterContinental 53 12.50%
Radisson 26 6.13%
Carlton  8 1.89%
Other 61 14.39%
Satisfaction about the Hotel Services Before Pandemic
Yes 408 96.23%
No 16 3.77%
Purpose of the Visit
Business 88 20.75%
Conference/ Seminar 43  10.14%
Leisure 280  66.04%
Sports 9 2.12%
Education 4  0.94%
Revisited the Hotel
Yes 370 87.26%
No 54 12.74%

RESULT

  • Data Analysis

Prior to doing the analysis on the structural model, the measurement models were examined in accordance with the methodology established by Anderson and Gerbing (1988). This step was taken to verify the reliability and validity of the measurement scales employed, as well as to enhance the overall goodness-of-fit of the model(Hsieh and Hiang, 2004). The assessment of convergent validity involves determining the significance of each indicator’s predicted pattern coefficient for its hypothesized underlying concept ( Holmes-Smith et al., 2006). The measurement utilized in this investigation were found to be within acceptable values, therefore providing evidence for the dependability of the constructs (Bagozzi, 1980). As seen by the data presented in Table 2, the majority of the variables exhibited substantial loadings over .50 (room amenities- .51, staff performance- .50, common space facilities- .51, customer satisfaction – .52, hotel resilience- .52) and were found to be statistically significant at a significance level of P<0.001. Several of the factor loadings associated with the item fell below the threshold of .50, leading to their exclusion from the

measurement model due to their potential impact that’s why RA2, RA4 and SPF4 were excluded from the analysis. The CR values, which indicate how well the instrument items explain the instrument, were found to be higher than the acceptable level of 0.7(room amenities-.81, staff performance- .80, common space facilities-.84, customer satisfaction- .81, hotel resilience-.84). This suggests that there is sufficient internal consistency (Hair et al., 2016). During the experiment, the researchers calculated the average variance extracted (AVE) and composite reliability (CR) after excluding items with low factor loadings, while keeping the measurement model same. In the measurement model, the goodness-of-fit indices, indicate that the model satisfactorily fits the data. Here chi-square value is (λ = 393.951, df = 140, P = .000, N = 400), whereas Goodness of Fit Index (GFI) = 0.909, Adjusted Goodness of Fit Index (AGFI) = 0.877, Comparative Fit Index (CFI) = 0.902, Normed Fit Index (NFI) = 0.857, Tucker-Lewis Index (TLI) = 0.880, Root Mean Square Error of Approximation (RMSEA) = 0.067, and the ratio of lambda to degrees of freedom (λ /df) = 2.814. The findings derived from the goodness-of-fit indices indicate that the model properly fits the data, notwithstanding the statistical significance of the chi-square test.

  • Structural Model (Testing the Hypotheses)

After confirming the validity of all constructs in the measurement model during stage one, as well as achieving a good fit as shown by previous studies (Hair et al., 2006), the second step commences. According to Albright and Park (2009), the structural model refers to the component of the model that delineates the interrelationships between latent variables.  The primary aim of the structural model is to precisely determine the latent constructs that have a direct or indirect impact on the values of other latent constructs within the model (Byrne and Johnson-Laird, 1989).  The utilization of structural equation modeling with the maximum likelihood (ML) approach was employed to examine the association between the constructs, as demonstrated by this model. Here in this study, the hypothesis centered around examining the correlations among room amenities, staff precautions, common space facilities, customer satisfaction and hotel resiliency. The statistical significance, standard estimates and predicted direction of hypotheses H1, H2, H3, and H4 were determined to be statistically significant (ß = .53, .12, .13, and .78, respectively). As a result, these assumptions were found to be validated. The associations depicted in the model were seen and documented in Table 3 and Figure 3.

Figure 2. Demographic Characteristics of the Respondents

Figure 2.a.  Male – 47%, Female- 53%

Figure 2.b. Age Limit of the Respondents

Figure 2. c. Hotels Visited Before Pandemic

Figure 2. d. Purpose of the Visit

Figure 2. e.  Revisited the Hotel- Yes- 87%, No- 13%

Figure 2.f. Satisfaction about the Hotel Services Before Pandemic

Table 2. Measures of the constructs and descriptive statistics

Items Standardized Loading CR AVE Deleted Items
Room Amenities:  
  RA1      .70 .81 .51  
RA2 .23 RA2
RA3 .62  
RA4 .45  RA4
 RA5   .80  
RA6 .73  
Staff Performance:  
SPF1 .72 .80 .50  
SPF2 .63  
 SPF3 .78  
SPF4 .53 SPF4
SPF5 .70  
Common Space Facilities:  
CSFC1  .67 .84 .51  
CSFC2  .70  
CSFC3 .83  
CSFC4 .70  
CSFC5 .64  
Customer Satisfaction:  
STFC1                  .75 .81 .52  
STFC2 .64  
STFC3   .67  
STFC4 .82  
Hotel Resilience:  
HR1                 .69 .84 .52  
HR2    .68  
HR3 .75  
HR4 .70  
HR5 .78      

Table 3. Testing Hypotheses Using Standardized Estimates

Hypothesis Relationship Estimate β t Value P
H1 Room Amenities → Customer Satisfaction .532 12.384 .000**
H2 Staff Performance → Customer Satisfaction .118 2.955 .003**
H3 Common Space Facilities → Customer Satisfaction .131 3.081 .002**
H4 Customer Satisfaction → Hotel Resilience .777 24.642 .000**

Notes: * indicates P >.05, ** indicates P<.05

Figure 3. The Hypothesized Structural Model

Note: (ASPF- Aggregate Staff Performance, ARA- Aggregate Room Amenities, ACSFC- Aggregate Common Space Facilities, ASTFC-Aggregate Satisfaction, AHR- Aggregate hotel Resilience)

DISCUSSION

The research findings pertaining to the influence of room amenities, employee performance, and common space facilities on customer satisfaction and hotel resilience in luxury hotels during the COVID-19 pandemic highlight many important aspects:

  • Room amenities are strategically designed to enhance customer satisfaction

As indicated by the statistical analysis conducted in this study, specifically in accordance with Hypothesis 1 (β = 0.53, t = 12.384, p < 0.000), the primary emphasis of a luxury hotel is in the provision of high-quality room amenities. This finding is presented in Table 3. This application serves as the ultimate means for customers visiting hotels of this nature to express their preferences and evaluate their level of satisfaction.

In the post-pandemic landscape, room amenities in luxury hotels have emerged as critical elements that significantly impact customer satisfaction. The global pandemic has precipitated alterations in visitor preferences and expectations, particularly with regard to matters of health, safety, and hygiene. There is an increased awareness among guests regarding sanitation and hygiene (Yang et al., 2023). Accommodations that previously boasted about their high-quality furnishing and sophisticated decorations now emphasize their meticulous cleaning procedures. It is now an obligation rather than a decision; it is a dedication to ensuring the safety and welfare of each and every guest (Yigit, 2023).

The implementation of significantly improved cleaning methods, like as hand sanitizers and disinfection wipes, and clear communication of cleaning rules can contribute to visitors’ perception of safety and overall satisfaction (Bagnera, Dalton, Szende & Legg, 2022). By modifying the facilities provided in hotel rooms to correspond with the evolving tastes and concerns of guests in the aftermath of the COVID-19 pandemic, hotels have the potential to enhance visitor satisfaction and generate lasting impressions, resulting in favorable evaluations, customer loyalty, and good word-of-mouth referrals. Placing an emphasis on satisfied customers while adapting to changing trends and prioritizing safety not only improves the immediate guest experience but also fortifies the hotel’s capacity to navigate obstacles and sustain a resilient position within the industry.

  • Reorganization of staff activities

The findings from Table 3 indicate a statistically significant positive connection (β = .12, t = 2.93, p < 0.003) between staff performance during the COVID-19 pandemic and customer satisfaction, hence giving support for Hypothesis 2.

Following the epidemic, the significance of staff performance in luxury hotels has emerged as an important factor impacting customer satisfaction. The increased emphasis on health, safety, and customized service has highlighted the significance of highly skilled and attentive staff in providing outstanding experiences for customers.

The implementation of staff safeguards in hotels following the COVID-19 pandemic has the potential to make a substantial contribution to both customer satisfaction and ultimately the resilience of the hotel industry. In contemporary times, hotel guests exhibit more awareness about health and safety protocols, and they exhibit gratitude towards establishments that demonstrate proactive efforts in safeguarding their welfare (How Hotel Staff Responsibilities Will Change in a Post Covid, n.d.). Customers must be able to perceive that the hotels they typically visit are actively adjusting to the highest standards. In this context of adjustment, the significance of the staff members who directly interact with guests is particularly crucial. The concierge, preferably a member of Clefs d’Or, the manager responsible for guest relations, the front office staff, the room service staff, the bar and restaurant staff, each will have a crucial role in educating and demonstrating empathy towards guests in order to facilitate the implementation of new health safety standards, which will undoubtedly become the new norm in luxury hospitality (Vanden-Hole, 2020). The presence of adequately educated and polite staff members who effectively communicate safety precautions and provide assistance to guests, along with customers’ observation of hotel personnel adhering to rigorous safety standards, fosters a favorable perception and enhances visitor satisfaction. This strategy not only improves the immediate experiences of guests, but also boosts the hotel’s resilience via the establishment of a loyal customer base, favorable reputation, and the capacity to effectively respond to evolving conditions.

  • The allocation of funds towards the development and maintenance of common facilities

The findings indicate a statistically significant positive connection (β = 0.13, p < 0.002) between the common space facilities offered by luxury hotels and customer satisfaction, as presented in Table 3. This supports Hypothesis 3.

Hotels may enhance their resilience and visitor satisfaction by adapting common areas to meet the evolving expectations of guests in terms of safety and well-being. As the preferences of visitors have undergone changes to prioritize safety and cleanliness, the process of rethinking and upgrading common areas has the potential to provide favorable guest experiences and heightened levels of customer satisfaction.  To ensure safety and comfort while travel in the aftermath of the epidemic, the use of digital technology has become deeply embedded like digital payments (Kapur, 2023). The strategic investment in adapting common area facilities has the potential to provide several benefits, including greater guest loyalty, positive word-of-mouth, more reservations, and enhanced overall resilience. The check-in desk, previously a lively center of activity, has been replaced by a more discreet and efficient alternative: contactless check-in. This modest change demonstrates the industry’s adaptability to meet the contactless demands today’s travelers. It encompasses more than just convenience; it focuses on reducing risk while maximizing the overall experience (Yigit, 2023).

  • Maintenance of hotel resilience can be achieved through the satisfaction of customers

The correlation coefficient between customer satisfaction and hotel resilience was found to be considerably positive (β = .78, t = 24.642, p < 0.000), as indicated in Table 3. This finding provides empirical support for Hypothesis 4. The significance of client satisfaction within the context of luxury hotels has assumed heightened relevance subsequent to the occurrence of the COVID-19 epidemic. The global pandemic has significantly altered the expectations and objectives of guests, resulting in a greater focus on health, safety, and tailored experiences (Hu et al., 2021). In the realm of luxury hotels, the provision of excellent customer satisfaction serves as both a defining characteristic of their brand and a crucial element in fostering resilience within a post-pandemic environment. The resilience of luxury hotels is significantly influenced by the implementation of excellent customer satisfaction measures in the aftermath of the epidemic. These tactics not only contribute in the recovery of the hotel industry but also play a crucial role in guaranteeing the enduring prosperity and flexibility of luxury hotels amidst persistent uncertainties. Hotels that prioritize customer satisfaction methods exhibit a dedication to fulfilling the changing requirements and expectations of discriminating customers (Li et al., 2020). In the aftermath of the pandemic, ensuring safety, providing personalized service, and delivering smooth guest experiences have been of the utmost importance in the hotel industry. Hotels that effectively include these aspects into their strategies not only strengthen their ability to withstand challenges but also foster customer loyalty. By implementing rigorous health and safety regulations and ensuring clear and open communication about these measures, guests develop a strong sense of trust and confidence (Lee & Li, 2021). Luxurious hotels that exceed expectations in guaranteeing a safe atmosphere not only address immediate concerns but also establish a favorable reputation that enhances long-term resilience.

The aforementioned findings underscore the need of attending to the preferences of guests and guaranteeing elevated levels of satisfaction in order to strengthen the resilience of luxury hotels in the period following the COVID-19 pandemic.

IMPLICATIONS

  • Theoretical Implications

This research presents new ideas in the fields of hotel management, marketing, and organizational behavior by investigating the impacts of the Covid-19 pandemic on the hotel industry ( Seyitoğlu and Ivanov, 2020; Shin and Kang, 2020). This study provides a conceptual contribution to the existing body of literature on client satisfaction and hotel resilience within the hospitality sector. This is accomplished by suggesting strategic methodologies that may be employed to modify regular organizational practices in order to efficiently address the difficulties presented by the COVID-19 epidemic. Furthermore, the research would make a valuable contribution to the current academic literature on luxury hotel management by identifying common patterns of successful strategies implemented by hotels to efficiently tackle obstacles, enhance customer satisfaction, and bolster organizational resilience.

The construction of the questionnaire was guided by theoretical reviews of the literature on customer satisfaction and hotel resilience, recognizing the significance of extracting insights from past experiences. The research examines the tactics implemented by luxury hotels to efficiently handle client expectations, hence enhancing customer satisfaction and resilience.

Furthermore, the findings provide hotel managers with useful insights into the importance of prioritizing health and safety. This underscores the need for the adoption of complete standards that effectively safeguard the well-being of both guests and employees. The adoption of health and safety measures in the luxury hospitality business is in line with the broader trend of sustainability and environmentally conscious tourism. This highlights the importance of hotels prioritizing the well-being and safety of both its guests and staff members. A number of the strategies offered for recovery in this study primarily target the hotel industry. However, these strategies may be effectively modified and applied in other sectors of the hospitality industry, such as restaurants and transportation businesses, to address the present situation and bolster organizational resilience (Melián-Alzola et al., 2020).

  • Practical Implications

It is advisable to allocate resources towards implementing stringent cleaning and sanitization processes for room amenities, common spaces, and staff safety measures. Ensuring visible cleanliness and strict adherence to safety requirements are of utmost importance in order to achieve customer satisfaction. Regularly examine the room amenities to guarantee their alignment with the health, safety, and comfort requirements of guests in the post-pandemic era. It is recommended to incorporate facilities that foster well-being and tranquility, such as air filtration systems, premium bedding, and exercise equipment inside the confines of the guest rooms.

Moreover, it is important to provide comprehensive training to staff members in order to ensure their proficiency in health and safety measures as well as interaction with guests’ processes. To enhance safety protocols for staff, use of visible measures such as the utilization of masks, conducting temperature checks, and establishing hand sanitizing stations can be used.

Modification of shared areas in order to adhere to physical distance protocols, all while preserving an extravagant and inviting ambiance. Furthermore, to enhance safety and provide pleasurable experiences, resources are needed to allocate towards the development of outdoor seating areas, private dining spaces, and open-air event sites. Employ technology to provide contactless services, such as the implementation of mobile check-in/check-out systems and digital menus, within shared areas.

Formulate a comprehensive resilience strategy that outlines measures for many eventualities, encompassing economic downturns, prospective pandemics, and natural calamities. It is important to engage in ongoing evaluation and revision of the strategy in order to maintain readiness for unanticipated obstacles.

CONCLUSION

The identification of key strategies for recovery to be implemented in the long term is of utmost importance for the hotel business in the post pandemic. Drawing upon existing research on customer satisfaction and hotel resiliency, this study aims to contribute to the field by proposing and validating a set of strategies that may be employed to restore economic activity in the aftermath of the COVID-19 interruption.

The findings of this study ensured that consumer satisfaction and retaining a competitive edge in the premium hospitality sector heavily relies on room amenities that prioritize safety, technology, and personalized experiences. The hotels can manage the obstacles of the post-pandemic era and enhance visitor experiences by modifying and enhancing their services. In addition, the study also focused on the significant influence of staff performance on customer satisfaction in luxury hotels following the pandemic. The hotel staff’s capacity to establish a safe and tailored atmosphere significantly influences the overall customer experience, guaranteeing that these hotels continue to be beacons of unparalleled service in a world after the epidemic.

Moreover, according to this research, common spaces can play a crucial role in influencing the atmosphere, guest experience, and overall perception of a high-end hotel. In the changing world of hospitality, these hotels can be benefited from well-designed and well-maintained common spaces, as tourists increasingly prioritize a combination of safety, luxury, and opportunities for shared experiences.

Findings also explain that these strategies enable hotels to flourish throughout persistent obstacles by cultivating customer satisfaction as a key element to establish resilience and achieve long-term success in the fiercely competitive hospitality market.

It is essential to acknowledge the importance of recognizing the limitations involved with this research. Due to the limited sample sizes in the study, potential ramifications may arise about the generalizability of research findings to the greater luxury hotel industry. Moreover, in light of the COVID-19 pandemic, the collection of data from consumers of luxury hotels has predominantly relied on online platforms rather than in-person interactions. However, these limitations might possibly open avenues for future academic research, including longitudinal studies conducted through face-to-face interviews, sophisticated analytical methodologies, cross-regional comparative assessments, and a more comprehensive examination of employee viewpoints and technology progress. The examination of lessons derived from cross-industries and the influence of increasing legislation contribute to the depth of possible future study, eventually providing a more holistic comprehension of the intricate dynamics within the luxury hotel sector in the aftermath of the epidemic.

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APPENDIX

Appendix 1. Indirect Relationship Between Exogenous and Endogenous Factors

Relationship Estimate β t Value P
Room Amenities → Hotel Resilience .249 6.493 .000**
Staff Performance → Hotel Resilience .074 2.422 .015**
Common Space Facilities → Hotel Resilience .048 1.480 .139*

  Notes: * indicates P >.05, ** indicates P<.05

Appendix 2. The Structural Model (Direct and Indirect Relationship)

Note: (ASPF- Aggregate Staff Performance, ARA- Aggregate Room Amenities, ACSFC- Aggregate Common Space Facilities,

ASTFC-Aggregate Satisfaction, AHR- Aggregate hotel Resilience)

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