CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

The swift of world markets has diverted noticeably from agricultural to service markets. Every service businesses are putting their best to enhance their service quality so as to make customers satisfied with the services rendered, mainly the hotel industry. Hotel managers now focus more on the service quality standards in order to achieve the primary needs and expectations of the customers. Once customers and requirements are clearly noticed and understood, hotel workers are more likely to anticipate and realize their customers & needs and wants (Juwaheer & Ross, 2014). The more fulfilled the customers are, the more likely they are to come back or enlongate their hotel stay (Choi & Chu, 2010).  At present, hotel visitors seem to have high standards and demands for excellent service. The hotels have increased their standards and now instead of having only a nice room to draw customers in, they offer - high quality staff as an amenity as well. Revenue generation is the highest priority for owners and managers competing with hundreds of others, and personal service is at the top of the travellers and list of the most important things when considering a hotel to stay in (Wipoosattaya, 2010). Revenue generation is the manner in which a company sells itself and its products to make money. Revenue generation is not simply sales or marketing; it's an operating strategy that touches every part of an organization. It's a plan that allows a business, in this case a hotel, to utilize strategies and tactics that allow for increased revenue. In the hotel industry, hotel staff is ranging from top management staff to front line staff (i.e. house keepers, receptionists, front cashiers). Front office staffs are considered as a supporting factor in determining customer satisfaction when deciding to return, to recommend the hotel, or in demonstrating loyalty to a particular hotel (Kandampully & Suhartanto, 2010). Dealing directly with customers, hotel staffs are interacting with guests in various manners, from receiving room reservation, check-in, check-out, to handling guest’s complaints, public relations, and so on (Lewis Perry 2008). Front office staff is of great importance in caring about reservation-related issues and making good impression to guests from the first moment they enter the hotel lobby. In another word, front office adds value to hotel by interacting directly with customers that affect sales revenue of the hotel (Lewis Perry 2008, 27). As a component of Front office, front-desk service requires constant improvement because front-desk employees bear the first touch with guests. Front-desk representatives implement tasks including using equipment such as computer or printer, handling check-in and check-out procedure, serving guests during their stay. Those assignments require them sufficient qualifications to be able to accomplish such tasks. Therefore, improvement of front-desk employee, in another word, influence their performance particularly, and quality of hotel in general, especially at high-class hotels which demand high improvement and performance from front-desk staffs. Therefore, the study examines the improvement of front desk service: a strategy for increased revenue generation in hotels in Onelga L.G.A of Rivers State.

1.2.    STATEMENT OF PROBLEM

Hotel Visitors seems to have high standards and demands for excellent service. Front desk service quality is perceived differently by tourists in different parts of the world. Hotel operators are paying more attention than ever to the needs and expectations of the customers by consistently improving the quality of the service offered to the customers. Researches proved that front desk service quality is an important element for revenue generation in the hotel services. Despite the significance of the front desk service to the overall organization, no study is devoted to the improvement of front desk service to strategy for increased revenue generation in hotels.

AIMS OF THE STUDY

The major aim of the study is to examine the improvement of front desk service: a strategy for increased revenue generation in hotels in Onelga L.G.A of Rivers State. Other specific objectives of the study include;

1.  To examine the strategy for improvement of front-desk service so as to increase revenue generation in Hotels

2.  To examine the characteristics of front desk service providers in the Hotel

3.  To examine the impact of front desk service improvement on increased revenue generation in Hotels

4.  To examine the factors affecting the front desk service quality and revenue generation in Hotels

5.  To examine the relationship between improvement of front desk service and strategy for increased revenue generation in Hotels

6.  To examine the roles of front – desk services in Hotels

1.4 RESEARCH QUESTIONS

1       What is the strategy for improvement of front-desk service so as to increase revenue generation in Hotels?

2       What are the characteristics of front desk service providers in the Hotel?

3       What is the impact of front desk service improvement on increased revenue generation in Hotels?

4       What are the factors affecting the front desk service quality and revenue generation in Hotels?

5       What is the relationship between improvement of front desk service and strategy for increased revenue generation in Hotels?

6       What are the roles of front – desk services in Hotels?

1.5      RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no significant impact of front desk service improvement on increased revenue generation in Hotels.

H1: there is a significant impact of front desk service improvement on increased revenue generation in Hotels.

Hypothesis 2

H0: there is no significant relationship between improvement of front desk service and strategy for increased revenue generation in Hotels.

H1: there is a significant relationship between improvement of front desk service and strategy for increased revenue generation in Hotels.

1.6      SIGNIFICANCE OF THE STUDY

This study will be as a practical guideline for the hotel management, especially the front office department. The outcome of this study will develop the front desk service quality of the front office staff in order to meet their customers ‘needs and wants. This study would also be of immense benefit to students and scholars who are interested in developing further studies on the subject matter.

1.7      SCOPE AND LIMITATION OF THE STUDY

The study is restricted to improvement of front desk service: a strategy for increased revenue generation in hotels in Onelga L.G.A of Rivers State.

1.8      LIMITATION OF THE STUDY

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9      DEFINITION OF TERMS

Revenue: Revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees. 

Revenue generation: Revenue generation is complete amount of money that is generated during a specific time period. The money is used to calculate business profits. Media houses make their money through direct payment and indirect payment. Direct payment is the money a consumer pays the media house in exchange for a good or service.

Front desk service: The front office or reception is an area where visitors arrive and first encounter a staff at a place of business. Front office staff will deal with whatever question the visitor has and put them in contact with a relevant person at the company.