Service Reliability Impact on Business with Reference to „Three Star Hotels‟ in Hyderabad

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International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
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Service Reliability Impact on Business with Reference to „Three Star
Hotels‟ in Hyderabad
A.Satish Kumar1 and Dr. J.Uma Maheswara Reddy2
1Research Scholar, Department of Management, Rayala Seema University, Kurnool, Andhra Pradesh, INDIA
2Professor & Principle, Department of Management, Holy Mary Institute of Technology & Management, Hyderabad,
Telangana, INDIA
1Corresponding Author: asatishkumarmba@gmail.com
ABSTRACT
Reliability and trustworthiness are the most vital
success factors in any business to sustain, survive and
succeed, this tag line also applicable for service industries
like Hotels. Customer satisfaction is a collective outcome of
perception, evaluation, and psychological reaction to the
Service quality. Due to the increasing competition of Hotel
business and the high demand of the customers, service
quality is the fundamental factor to measure customer‟s
satisfaction within such business. The primarily purpose of
this study is to determine the influence of reliability
dimension of „Three Star Hotels „customers satisfaction.
Required data was collected through customers‟ survey. For
conducting customers‟ survey likert scale based
questionnaire was developed after review of literature.
However, customers were selected by random sampling
method and a sample size of 100 has been taken. The
reliability of construct was tested by using Cronbach‟s alpha
test, using SPSS 20. Cronbach‟s alpha coefficients were
calculated 0.788 for the questionnaire survey. The findings
show that there is a very strong relationship between quality
of service (Reliability) and customer satisfaction. On the
basis of the conclusion made, Reliability in Hotel business
was representing the ability of the web site to fulfil customer
requirement correctly, deliver promptly, and keep
belongings secure.
Keywords—Business, Hotel, Industry, Hyderabad
I. INTRODUCTION
The reliability in services depends on customer
satisfaction level with reference to expected service to
perceived service in Hotels. This present research
explores how to built reliability among customers mind
with reference to service quality and how to change
problem contained hotel to problem free hotel, hence
customers may visit repetitively and which will increase
overall satisfaction on a Hotel service. The study focusing
on reliability with reference to employee dedicate
towards service delivery to facilities provided as per
expectations.
The research also provides insights of reliability
factors which have much impact on service reliability
where customers can treat those factors are highly
preferable and measurable with reference to reliability. It
may start from check in of customer to check out of
person followed by all associated services.
II. HYDERABAD HOTEL INDUSTRY
OVERVIEW
Hyderabad is known for better tourist spot and
also hub for IT/ITeS services. In this regard daily
thousands of visitors visit the city for tourism and
business purpose and most of the time they opt premium
hotels to stay depend on their financial capability and
sometimes corporate provide free stay for their employee
who are arriving on business trip to the city. The daily /
weekly6 bookings are for various business purposes by
customers.

International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
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Table: Existing Hotel Beds/ Supply in Major Cities in India
Source: Industry Source & Hotelivate Research,2018
II. LITERATURE
Gupta Sachin (2007) in his research paper titles
“Guest Satisfaction in restaurant performance” adopted
some mathematical model to estimate their satisfaction
level which are mostly used for predicting customer
satisfaction factor in hotel industry. The researcher
adopted two different models and the main theme of
those models are, first one measuring satisfaction with
reference to food quality and dining experience based on
some pre designed attributes and the second one is used
to measure service quality and estimation of revisit
probability by same guest. The study revealed that,
repetitive visitors are contributing more profits by opting
other associated services like travel assistance , shopping
assistance and spa and other luxury services for their
relax in hotel by trusting the hotel series a lot.
Salve Jessica (2009 ) authored a book titles
“Brand Management in Hotel Industry and its potential
for Achieving Customer Loyalty” identified a strong
correlation between brand name and customer loyalty.
The author decided to measure these relations with the
help of 10 top hotels in the Bombay city and designed
structured questionnaire with the help of 15 contents
which are supporting for brand related elements and
customer perception factors and these contents also
included some of the Europe and Greece cultural related
factors , because the intercontinental visitors opinions
also contribute valid point. In her study the author
identified the branding is acting as power to attract
visitors and tourist and mouth reference also playing vital
role in this regard.
To sum up, the relationship between reliability
and satisfaction is complex. Some authors have described
it as Siamese twins (Danaher and Mattsson, 1994; Jamali,
2007). Even though, the studies left out with many
unanswered questions and there is a need to identify link
between reliability and customer turnover ratio.
III. METHODOLOGY
Objectives
1) To examine the Service Reliability impact on Hotels
performance.
2) To study various reliability factors, those are influence
Hotel reputation.
3) To determine most influencing reliability factors in
hotel sector. .
Hypothesis
H01: There is no significant association between Luggage
safety and their opinions on Service reliability.
H02: There is no significant association between enough
general items in rooms and their opinions on reliability.
H03: There is no significant association between
equipments working efficiency in room and their
opinions on service reliability.
Sample Reputed 10 „Three Star Hotels‟ in Hyderabad
which are in hospitality service from last 15 years are
considered as sample for the proposed study, hotels like
Best Western Ashoka and Katriya Hotels are name a few
are considered as sample.

International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
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List of Surveyed “Three Star Hotels” in Hyderabad
Sl.No
Hotel Name & Address
1.
Best Western Ashoka Lakdikapul
2.
Katriya Hotel Somajiguda
3.
Minerva Grand Kondapur
4.
Taj Mahal Hotel Narayanaguda
5.
Park Continental Hotel
6.
FabHotel Prowell Crown Hitech City
7.
Hotel Mint Ebony Banjara Hills
8.
At Home Apartment Hotel Kondapur
9.
Dhola-ri-Dhani Kompally
10.
Hotel Olympia Inn Sivarampalli.
Source: Primary Data
Sample Size
A sample of 100 Hotel customers opinion was
considered for data collection with the help of
questionnaire in various above listed Hotels in
Hyderabad.
Sampling Technique
Random Sampling technique was adopted for
the data collection process by visiting reputed 10 „Three
Star Hotels‟ in Hyderabad city.
IV. DATA ANALYSIS
Reliability
Reliability Statistics
Cronbach's Alpha
N of Items
.788
9
Inference
Cronbach‟s alpha has been run for to check their
reliability dimension of Reliability. The above table
displays some of the results obtained. The alphas for the
all items are 0.788 > 0.7 indicates very good internal
consistency among the given items.
Factor Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.683
Bartlett's Test of Sphericity
Approx. Chi-Square
326.310
df
36
Sig.
.000
Factor Analysis is a data reduction technique. It
also helps in structure detection among the variables and
further helps in studying the underlying crucial factors
that cause the maximum variation. Before we proceed for
factor analysis first the researcher tested the eligibility of
the data by checking KMO- Bartlett's test which is a
measure of sampling adequacy. The KMO value is 0.683
> 0.5 (accept for sampling adequacy)
Bartlett's Test of Sphericity indicates a measure
of the multivariate normality of set of variables (Sig.
value is less than 0.05 indicates multivariate normal and
acceptable for factor analysis).
Total Variance Explained
Comp
onent
Initial Eigenvalues
Extraction Sums of Squared Loadings
Rotation Sums of Squared Loadings
Total
% of
Variance
Cumulative
%
Total
% of
Variance
Cumulative
%
Total
% of
Variance
Cumulative
%
1
3.625
40.276
40.276
3.625
40.276
40.276
3.098
34.424
34.424
2
1.174
13.042
53.318
1.174
13.042
53.318
1.467
16.299
50.723
3
1.136
12.622
65.940
1.136
12.622
65.940
1.370
15.218
65.940
4
.977
10.857
76.797
5
.769
8.539
85.337
6
.539
5.992
91.329
7
.374
4.152
95.481

International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
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8
.216
2.405
97.886
9
.190
2.114
100.000
Extraction Method: Principal Component Analysis.
The PRINCIPAL COMPONENT MATRIX
gives the component matrix which is rotated using the
VARIMAX rotation technique which gives the
ROTATED COMPONENT MATRIX. Rotation of
factors helps in the better interpretation of factors. Since
the first factor in the ROTATED COMPONENT
MATRIX is heavily loaded with Safety for Luggage and
valuable belongings and meeting arrangements were
carried out as planned. The factor loading values are
0.894 and 0.822 respectively. The first factor represents
Safety for Luggage and valuable belongings and meeting
arrangements were carried out as planned.
The second factor is heavily loaded with the
Room service was prompt & consistent (0.764) and
customers reservation was handled efficiently (0.714).
The final list of 03 factors which collectively account for
65.94 % of the variance in the data is shown below.
SI.
NO.
Factor Name
Common Factor
Name
Factor
loading value
1
Safety for Luggage and valuable belongings
0.894
meeting arrangements were carried out as planned
0.822
2
Room service was prompt & consistent
0.764
customers reservation was handled efficiently
0.714
3
As per request, customer have received the required room
0.762
The employees did what they said they would do
0.724
Hypothesis Testing
H01: There is no significant association between Luggage safety and their opinions on Service reliability.
Chi-Square Tests
Value
df
Asymp. Sig. (2-sided)
Pearson Chi-Square
20.750a
12
.054
Rotated Component Matrixa
Component
1
2
3
11.Room service was prompt & consistent
.082
.764
.176
12.My reservation was handled efficiently
.144
.714
.041
13.Enough towels, soap, etc ., were found in m y room
.779
.250
.102
14.Wake -u p calls were received as promised
.589
.452
-.330
15.TV, A/C, lights, and other mechanical equipment worked properly
.747
.126
.265
16.Safety for Luggage and valuable belongings
.894
.033
.158
17.Meeting arrangements were carried out as planned
.822
.062
.130
18.The employees did what they said they would do
.065
.289
.724
19.As per my request, I have received the type of room as per my
requirement
.282
-.053
.762
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.

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Likelihood Ratio
20.047
12
.066
Linear-by-Linear Association
2.870
1
.090
N of Valid Cases
100
a. 13 cells (65.0%) have expected count less than 5. The minimum expected count is 1.20.
The above chi square value is greater than 0.05
( 0.054 >0.05) , hence the null hypothesis is accepted,
hence there is a significant relationship between luggage
safety and Service reliability in „ Three Star Hotels‟
which means customers are more concern about safety of
their belongings to decide service reliability.
H02: There is no significant association between enough general items in rooms and their opinions on reliability.
Chi-Square Tests
Value
df
Asymp. Sig. (2-sided)
Pearson Chi-Square
15.380a
12
.221
Likelihood Ratio
17.210
12
.142
Linear-by-Linear Association
1.622
1
.203
N of Valid Cases
100
a. 14 cells (70.0%) have expected count less than 5. The minimum expected count is 1.20.
The above chi square value is greater than 0.05
( 0.221 >0.05) , hence the null hypothesis is accepted,
hence there is a significant relationship essential items in
room and Service reliability in „ Three Star Hotels‟, items
like soap, towels and shampoos are deciding factors for
service reliability.
H03: There is no significant association between equipments working efficiency in room and their opinions on service
reliability.
Chi-Square Tests
Value
df
Asymp. Sig. (2-sided)
Pearson Chi-Square
19.484a
12
.017
Likelihood Ratio
20.855
12
.053
Linear-by-Linear Association
2.284
1
.131
N of Valid Cases
100
a. 11 cells (55.0%) have expected count less than 5. The minimum expected count is 1.30.
The above chi square value is less than 0.05 (
0.17 <0.05), hence the null hypothesis is rejected, hence
there is no significant relationship between equipment
working and reliability in „Three Star Hotels‟, which
means some equipments are ignorable, if those are not
essential like TV, Fridge etc..
Chi-Square Test Results
Null Hypotheses
Sig. Value
Result
H01: There is no significant association between Luggage safety and their
opinions on Service reliability.
0.054
Accepted
H02: There is no significant association between enough general items in rooms
and their opinions on reliability.
0.221
Accepted
H03: There is no significant association between equipments working efficiency
in room and their opinions on service reliability.
0.017
Rejected
V. CONCLUSION & DISCUSSION OF
RESULTS
The study revealed regarding service reliability
with reference to Hotel sector indicating that, most of the
three star hotels are fail to regain the existing customers
and unable to hold the customer for longer period. It may

International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
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due to customer budget problems or may be service
deficiency, where the visitor are not receiving expected
service form them. Therefore the Hotel industry in
Hyderabad need to Reengineer their reposition and
marketing strategies and customer delight strategies
which will have long term impact. The Customer taste
and preferences are honoured according to their culture
and same need to be resembled with service executives
while delivering service. The Hotel managers need to be
trained properly in adopting new culture and taste
preference of consumer‟s day to day basis. The
management also redesign their Hotel environment lie a
amusement park, so the customers and their family
members with kids and old aged people can feel homely
environment followed by children‟s and elderly care by
executives.
The study also expressed the main conclusions
based on factors influencing reliability in hotel industry.
Researcher found that cultural tourism has been emerging
in new dimensions and creative tourism is one of its parts,
which has offered possibilities of self development in
tourists. Author described various demand and supply
challenges in cultural tourism and agreed that present
economic, social and environmental changes of the world
economy are going to affect the consumer behavior in
Hospitality industry and managers should study these
factors to gain competitive advantages. The authors
achieved their objectives by conducting a survey using
structured questionnaires.100 respondents were selected
for the study and it was found that innovation came out to
be one of the important factors which influenced the
consumer‟s decision positively to purchase hotel services.
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