INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 9, ISSUE 02, FEBRUARY 2020 ISSN 2277-8616
2957
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Attributes Building Business Excellence For
Different Class Of Star Rated Hotels Using Fuzzy
Logic AHP Approach
Deepali Anand, Dr. Alka Munjal, Dr. George Thomas
Abstract: The purpose of this paper is to analyze the factors of business excellence that are important in formulation of strategy for different categories
of hotels based on Baldrige Model of Business Excellence. Survey using questionnaire was conducted and data collected from top and middle
management employees of different star-rated hotels of Delhi NCR region. Questionnaire was administered personally and the sample size was 80
respondents. AHP as a statistical tool has been used to identify important criterion of business excellence based on Baldrige Model of Business
Excellence. The study revealed that only those hotels can expect better financial outcomes, long term relationship with customers, channel partners and
employees, efficient operating performance and a positive image in the society when there is effective leadership, clearly specifying hotel’s goals, plans
and strategic planning. All this can be realized through implementation of business excellence model. However different star rated hotels have different
areas on which they focus while attaining excellence. All of these defined processes should lead to enhanced customer satisfaction. Important factors of
Business Excellence for different categories of star rated hotel have been identified. If these parameters are considered while formulating strategies it
can lead to competitive advantage for the hotel.
Index Terms: Analytical Hierarchy Process (AHP), Budget Hotels, Consistency Index (CI), Consistency Ratio (CR), Indian Hotel Industry, Luxury
Hotels, Tourism Sector.
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1. INTRODUCTION
HOSPITALITY industry has a wide range and categories of
hotels servicing different segment of customers with diverse
needs. Each category of hotel wants to give best of service to
its clientele and build long-term relationship with them, this can
be achieved through application of business excellence model
that will help in strategizing for creating a winning situation.
One important question that needs to be addressed before
developing business excellence model is whether or not the
criteria for achieving business excellence is same across
different categories of hotels or they must focus on their strong
attributes? This paper made an effort in identifying the
attributes building business excellence for different class of
hotels. Focusing on such attributes will help in achieving
business excellence that can lead to competitive advantage.
The discussion is based on results of AHP fuzzy logic
approach applied on responses collected from selected
experts from the industry. Different class of customers have
different needs and hence there is an array of services being
offered by different categories of hotels. Product mix offered
by the hoteliers is no longer restricted to lodging (although it is
still a major source of revenue), they are into organizing
weddings, parties, conferences, meetings etc. Competition has
made the environment hostile and turbulent; Customers
nowadays are more aware, knowledgeable and demanding
making competition more intense and sophisticated. Marketer
will have to identify innovative ways of providing service while
remaining profitable. The heart of all improvement in process,
quality and excellence lies in the art of partnering with people
through the process of continuous improvement and makeover
of business processes art of partnering with people through
the process of continuous improvement and makeover of
business processes (―Assessing Business Excellence‖ Porter
and Tanner; 2003). In order to assess business excellence
people must be involved in the process of self-assessment
enabling an organization to recognize its strengths that can be
utilized to explore an opportunity for further progress.
Excellence programs must be monitored in a systematic way.
Researcher has tried to establish role of excellence in tourism
and hospitality industry. Indian tourism industry is growing and
has led to the growth of hospitality sector as well. Various
formats from luxury hotels to Bed and Breakfast have evolved
over the years giving customers a wide variety of choice
depending upon objective of vacation. With increase in foreign
tourist arrival and domestic travel average occupancy ratios
and room rates have increased. The Indian Hospitality industry
is a promising sector due to increase in leisure travelers, ever
expanding middle class, growth of millennials and DINKS
(Double income no kids) who have higher disposable income
than previous generations, are more informed and technology
savvy. Hence there is a huge demand by both domestic and
foreign traveler creating a gap in between demand and supply.
Due to these factors international companies are also
increasingly looking to setup more hotels in India. With such a
wide variety of offerings, customers bargaining power has
increased manifold times and has forced the marketer to
provide best of service at most competitive price. Several
government initiatives are being taken in order to ensure
growth of the hospitality industry.
Investment glimpses in the Hospitality Industry
―Keys Hotels‖ a subsidiary of Berggruen Hotels is planning to
increase its capacity by adding 20 properties in India; by year
ending 2021, Hilton Group plans to open 18 more properties
pan India; Radisson Group plans to reach to the mark of 200
properties by the end of 2022; Louvre Hotels currently has
approximately 7% market share in India. It plans to increase its
business to 10-15% by 2021. Louvre Hotels group is the fifth
largest group in the world. Foris (2014) in her study defined
―hotel classification‖ as the process of providing information to
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Author, Deepali Anand is currently pursuing Ph. D program in Strategic
Marketing in Amity University, India, PH-9891450129. E-mail:
dachopra@amity.edu
Co-Author, Dr. Alka Munjal is Dean (Student Academic Affairs and
Support Services) in Amity University, India, PH-9810702680. E-mail:
amunjal@amity.edu
Co- Author, Dr. George Thomas is Director, Shri Vaishnav Institute of
Management, India, Ph-9425900016. E-mail:
georgethomas7169@gmail.com