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The impact of service failure and service recovery on consumers' satisfaction updating

process in the lodging industry.

Consumers constantly revise their satisfaction judgments as they gain new service experience.
While some researchers found that consumers weigh their prior cumulative experience more
heavily than their most current individual service encounters when updating their cumulative
overall satisfaction, others found the opposite result. Following the development of the
literature, this study investigated customers' satisfaction updating process in the context of
service failure and service recovery in the hotel industry. Three different types of satisfaction
judgments were included in the updating process; they are prior cumulative overall satisfaction,
current service encounter satisfaction, and new cumulative overall satisfaction.
An experimental design was involved. Hypothetical scenarios were used to manipulate service
failure and service recovery. Service failure and service recovery were manipulated at two
levels, high and low. A survey was conducted at California State University, Chico.
Questionnaires were sent to all faculty and staff members of the university. A total of 652
usable questionnaires were collected. The response rate was 31.50%.

The results of the data analysis show that service failure and recovery did have a significant
impact on current service encounter satisfaction. For both high and low severity of failure
situations, the more service recovery that was offered, the higher the current service encounter
satisfaction was. When updating overall satisfaction, participants weighed their current service
encounter satisfaction more heavily than prior cumulative overall satisfaction, regardless of
different levels of service failure and service recovery. When the effect of frequency of visit was
included in the updating model, similar results were found; current service encounter
satisfaction had a stronger influence on new cumulative overall satisfaction than did prior
cumulative overall satisfaction.

The findings of this research suggest that service failure and recovery can have considerable
negative influences on hotel guests' cumulative overall satisfaction. Once customers experience
service problems, it is difficult to bring customers' satisfaction level back to where it was. Hotels
should strive to prevent service breakdowns from happening in the first place.

Author Fu, Yao-Yi

Publication year 2003
Degree date 2003
School code 0176
Source DAI-A 64/09, Dissertation Abstracts International
The importance of customer satisfaction and delight on loyalty in the tourism and hospitality
Customer satisfaction has been a focus of researchers and marketers as an important antecedent of
customer loyalty. Research has proven that satisfied customers show loyalty by purchasing more
products or services, recommending products to others, and being less price sensitive (Anderson,
Fornell, and Mazvancheryls, 2004; Homburg, Koschate, and Hoyer, 2005). Recent studies propose
customer delight as a new variable of interest in satisfaction research and are anticipated to possibly
produce greater customer loyalty than satisfaction (Hicks, Page, Behe, Dennis, and Fernandez, 2005).
Like customer satisfaction, customer loyalty is also considered crucial to the success of a business
organization because loyal customers are less expensive to retain than to find and develop new
customers (Reichheld and Sasser, 1990). In recent years interest has also grown in understanding the
multi-phases of loyalty as a useful way to segment customers with differential strategies (Knox and
Walker, 2001; McMullan and Gilmore, 2002; Palmer, McMahon-Beattie, and Beggs, 2000).

The problem of this research is to examine the impact of customer satisfaction and delight on loyalty by
empirically testing a model. Furthermore, the study aims to better understand four phases of loyalty
development: cognitive, affective, conative, and action loyalties. Data were collected from guests who
stayed at a Midwestern resort during a peak summer vacation time using an online and a paper survey
(1,573 subjects from an online survey, 87 subjects from a paper survey). The model was tested applying
structural equation modeling (SEM) to estimate the relationship between customer satisfaction, delight,
and loyalty in a tourism and hospitality context.

The findings support the proposed model and suggest that (1) customer satisfaction has a direct and
positive influence on cognitive and affective loyalty; (2) customer delight has a direct and positive
influence on cognitive and affective loyalty; (3) customer satisfaction has a greater influence on
cognitive loyalty than on customer delight; (4) customer delight has a greater influence on affective
loyalty than on customer satisfaction; (5) cognitive and affective loyalties have a direct and positive
influence on conative loyalty; and (6) conative loyalty has a direct and positive influence on action

This study is one of few empirical studies on customer satisfaction, delight, and loyalty and tests a more
comprehensive model than previous research efforts. This study will contribute to the body of
knowledge on customer satisfaction, delight, and loyalty and provide important theoretical and applied
suggestions for the tourism and hospitality industry. Future studies should replicate the findings and test
the model with different samples such as types of accommodations (e.g., motel, business hotel, bed and
breakfast), places (e.g., other states, other countries), and service industries (e.g., restaurant, airline,
cruise). With attitudinal research, validating the accuracy of action loyalty or intended future behaviors
should be validated with actual measures of future returns to the business and recommendations of the
business to others.

Author Kim, Mi Ran

Publication year 2010
Degree date 2010
Document URL
Fundamentals of mountain resort base village design: A critical review of existing resort
developments with recommendations for future development practices

Harding, Bryan P.. Utah State University, ProQuest Dissertations Publishing, 2009. 1462154.


The North American ski industry has grown over the past century from a small, family-owned and -
operated industry, to a multi-billion dollar industry dominated by corporate management organizations.
The rise of corporate resort ownership has led to the trend of the construction base village
developments at ski resorts around the country to attract guests, and therefore revenue, to their
resorts. Though many base villages have been very successful in attracting skiers, examples of poor
landscape architectural design practices abound in the industry. This study examines several design
elements considered to be the "fundamental elements of designed space," applies these elements to
base village design throughout the country, critically examines their implementation in built examples,
and presents suggestions and recommendations for future mountain resort base village design

Document URL

Destination resort operational techniques, marketing trends, and consumer characteristics
The purpose of this dissertation is to explore three autonomous but interrelated areas of the
destination resort industry. The initial study provided insight into the scholarly support
available to industry professionals by conducting a comprehensive meta-analysis of destination
resort literature. The second study's purpose was to explore operational and marketing
techniques used in a sample of large properties located in the Upper Midwest of the United
States (Michigan, Minnesota, and Wisconsin). The third study sampled 3,000 previous resort
guests to examine which resort attributes are most important in the selection of a resort. For
each of these studies, theoretical and practical considerations, along with future research
needs, are addressed.

The first study examined current destination resort research via meta-analysis. Using this
methodology provided nine functional classifications for existent literature including:
employees/human resources, financial/asset management, bionetwork, government/legalities,
physical structure/development, industry analysis/synopsis, consumers, adjacent
community/region, and operations/management. In the second study, current operational
techniques and marketing trends in resorts located in the Upper Midwest were examined. From
this qualitatively based study, 21 areas of operational interest and 19 areas of marketing
interest emerged. Overall these resorts are very homogenous with the family/team concept
driving operations and technology having significant impacts on marketing. The third study then
examined consumers perceptions on which factors are most important in selecting a resort.
From this study three underlying factors of resort selection were found including passive, active
and business. In addition, situational and sociodemographic variables influence the importance
placed on these three factors.

Author Brey, Eric T.

Publication year 2006
Source DAI-A 68/02, Dissertation Abstracts International
Document URL
Positive & Negative Effects of Ecotourism

Author Brenna Swanston, Leaf Group Updated November 01, 2017

One of the greatest joys of traveling is experiencing the unique beauty of natural environments all over
the world. Unfortunately, when those fragile areas start to receive a lot of traffic from tourists, it can
negatively impact their ecosystems. Ecotourism developed to create an environmentally responsible
way to visit natural areas. On ecotours, visitors can experience and learn about endangered
environments while promoting their conservation. However, this sector of travel has both pros and

Positive Impacts

The main idea behind ecotourism is to educate tourists about conservation efforts and research
developments in fragile natural areas, while also offering travelers a chance to experience those areas
firsthand. Ideally, the efforts work for both the travelers and the environments they visit. Ecotourists
gain knowledge of ecosystems, biology and geology of specific natural locations, which in turn informs
their conservation efforts. Some of the money that goes into ecotourism also goes to conservation
efforts, such as repopulating endangered species and reforestation.Many of the world’s most beautiful
natural sites also happen to exist in impoverished countries, such as Ecuador, Nepal and Madagascar.
Ecotourism efforts in these countries help provide economic growth there – even more than typical
tourism. Where regular tourism efforts return about 20 percent of revenue to local communities, almost
all the revenue generated by ecotourism programs goes back into those communities.

Negative Impacts

Tourism inevitably leads to development – even in ecotourism efforts. When natural areas become
popular in the travel industry, they usually become the site of hotels, excavations and other tourist
industry activities. These activities sometimes displace indigenous groups and local people from their
homelands, which not only damages the integrity of those local communities, but prevents its members
from benefiting from the economic benefits of a growing tourism industry.On top of ecotourism’s
potential impacts on locals, the industry can also take a toll on surrounding wildlife.

It’s ironic, given that ecotourism aims to educate ecotourists and promote the conservation of natural
habitats, but, for some species, the increased presence of humans may by default negatively impact
their natural behaviors. Increased foot traffic can also affect soil quality and plant life in general,
damaging the area’s overall ecosystem.Finally, not all travel organizations that market themselves as
ecotourist programs are actually environmentally friendly. These organizations know ecotourism is
growing in popularity and may take advantage of that fact by parading as ecotouristic when in reality
they ignore eco-friendly practices. For that reason, it’s important that would-be ecotourists do their
homework before giving an organization their business.

How to Be an Eco-Tourist
If you want to contribute to the ecotourism industry while having as little negative impact on the
environment and local communities as possible, you should take some precautions. The most important
is to only give your money to genuine ecotourism programs, which should adhere to the following
Commitment to protecting ecosystems’ biodiversity

Support for the basic rights of local communities while contributing to their economies
Respect for local cultures and a commitment to educate tourists on those cultures
To help your search, look into member programs of the International Ecotourism Society (TIES). TIES
partners with ecotourism organizations to help promote travel options that conserve the environment,
protect cultural diversity and spur community development. You can find TIES members on the
organization's website, under the "Find Members" tab, which allows you to search by region and
organization category.

Also make sure to research your accommodation options to choose one that practices environmentally
friendly policies, and recycle whenever you can. Reuse towels, water bottles and silverware as often as
possible, and pack toiletries that won’t harm the environment. Finally, read up on the rules and
regulations of the natural environments you visit, and make sure to adhere to those rules.
The economic benefits of Sustainable Tourism
Posted on October 6, 2016 by Isabel Gaval

Sustainable Tourism not only benefits the environment and the local communities: it has also economic
advantages. Let’s go to discover why choose eco-friendly accommodations is so important today.
Sustainable Tourism is of primary importance to our planet and its future. Even the UN has dedicated
the year 2017 the International Year of Sustainable Tourism. Let’s go to find out what are the benefits of
sustainable tourism which are not only environmental and social, but also economic.

Contributing 80% of GDP and 12% of employment creation, Tourism is the third economic activity in
Europe, according to data from EU. Every year a billion people travel throughout the world (one in
nearly six people) and continue to grow. The forecast maintain that, in 2030, the number of tourists will
increase to 1.8 million, doubling the number of a few years ago. In a period of fundamental questions
about sustainability for our development model, we are also asking what the environmental, economic
and social impacts will be.

Tourism and environmental pollution

On the one hand, tourism represents one of the biggest economy sectors in the world, which makes it
an important growth opportunity for the least developed countries. On the other hand, tourism is one
of the major causes of pollution and carbon dioxide production. For example, EU data tells us that
tourism is one of the first causes of the carbon dioxide production in Europe, and that over 20% of
polluting emissions are associated with accommodations (hotels, etc). The growing awareness of the
issue of environmental limits of the tourism development is leading us to experiment alternative
methods of tourism and accommodations that are environmentally safe and benefit places and local

How is the demand for sustainable tourism increasing?

“Green is no longer just a trend. It’s a way of life” (Fran Brasseux, Executive Director, Hotel Sales and
Marketing, Association International (HSMAI) Foundation).
Sustainability is no longer just a trend, it’s a lifestyle. Awareness is increasing of environmental and
climatic problems in the same way that knowledge grows of how much each one of us could contribute
to solutions to global problems by modifying our way of life.
The number of people choosing vegetarian food, using public transport and buying in a responsible
manner grows.
A survey prepared a few years ago indicates that two thirds (66%) of consumers over the world prefer to
buy products and services to conscious businesses and 46% are willing to pay an extra for products or
services from socially responsible companies (Nielsen Wire, 2012).
The results of the Observatory SANA-ICE 2016 “All Bio’s numbers”, report increased biologicals
purchases in Italy. The Italian families as high as 7 out of 10, prefer organic products at least once a year.


How are the demand for eco-friendly accommodation increasing?

Those who travel is more aware of environmental problems and seek to play his part choosing an eco-
friendly accommodation.
According to a survey from many years ago by Travelzoo, more than 90% of interviewed american
travellers prefer an eco-friendly hotel, for the same price and services that once no eco-friendly
(Travelzoo 2010).

According to the CMIGreen Traveler Study Report, the “eco-aware” customers travel more frequently
than average customers. In the 2009 the 75,6% spent at least two time away from home and the 22%
spent from 5 to 8 times away. The same report of 2010 asked to responsible travellers how the global
economic crisis has affected on their travel programmes. The 54% answered that they spent a green-
travel in the last 12 months. The 43% of interviewed are prepared to spend until a 5% more to reduce
his ecological footprint in the next travel.

Other survey by World Tourism Organization (UNWTO) tells us that a percentage between 10 and 15%
of travellers are looking for the unusual and unique. The growth of this type of tourist is much higher
than traditional customer segments. These new tourists are described as people “well educated,
matures, wealthy, with travel experience, environment-aware and sensitive to social issues and
traditional culture, system and costumes of travel destinations” (UNTWO, Responsible Travel).

Three (3) good reasons to aim to sustainability:

As we have observed, the demand of sustainability tourism is growing up. So, many tourist activities are
implementing good environmental and social practices and choosing ecological certifications and
Invest in sustainability is not only necessary, but it is also beneficial. Make eco-friendly choices in a
tourist accommodation is useful for three reasons at least:

 It is created an added value for the guests more interested in this issue.
 It is reduced the costs and consumptions (energy, water and wasted in general), the CO2
 Attention for the environment is contagious and allow to do network. It’s a positive energy to be
able to innovate our business.
Advantages of Ecotourism
Author Jenny Green, Leaf Group Updated April 13, 2018

A vacation at an ecotourism site can give a warm, fuzzy feeling. Ecotourists learn about the ecosystems,
traditions and cultures of their destination without missing out on adventure, excitement and
relaxation. For local communities, it's a win-win experience. Ecotourism provides support through
employment and other means, but not at the expense of the local environment. Search listings at
reputable websites before booking a vacation to avoid unscrupulous companies that don't offer genuine
ecotourism opportunities.

Ecotourism and the Environment

Ecotourism helps protect natural habitats and pristine environments. The wealth of poorer countries is
often tied up in natural resources like forests, minerals and land that could be used for agriculture.
Exploiting these resources often means altering or destroying wildlife habitats and beautiful natural
landscapes. Ecotourism allows countries and communities to build their economies without harming the
environment, which means that local wildlife can thrive and visitors can enjoy untouched destinations.
To check that vacation accommodation is environmentally friendly, check the accommodation's website
for policies on waste management, recycling, renewable energy use and energy efficiency.

Economic Benefits of Ecotourism

Local jobs are only one of the economic benefits of ecotourism. As well as providing an income for staff
who work at ecotourism sites, ecotourism allows them the opportunity to receive training in skills that
can transfer to other areas of employment and even nutrition when they receive meals at work. Surplus
income allows workers or their family members to start up small businesses or to pass on the money to
other community members by buying local goods and paying for child care and other services.
Ecotourism companies can also help give back to the community by offering training in useful skills.

Ecotourism and Travelers

The advantages that ecotourism offer travelers are personal, but their effects are widespread. Through
visiting areas of stunning natural beauty, seeing animals in their native habitats and meeting members
of local communities, travelers can increase their awareness of the importance of conserving resources
and avoiding waste. They're encouraged to live more sustainably at home, and they can also increase
their understanding of and sensitivity toward other cultures. Additionally, travelers learn how to help
support other communities, not by handing out free gifts like toys and stationery, but by buying local
produce and goods. When ecotourists return home, they spread the message to their families, friends
and coworkers.

Characteristics of Ecotourism
Unfortunately, abuse of the ecotourism label does exist, but tourists can judge the validity of a
destination by looking at several factors. Good ecotourism conserves local cultural and biological
diversity, promotes the sustainable use of resources and supports local economies through employment
and the use of local services. Other factors to look for include empowerment of the local community by
shared participation in management, cultural and environmental awareness and minimal impact of
tourist activities on local natural resources. To find genuine ecotourism opportunities, search the
directories of reputable organizations such as The International Ecotourism Society and Responsible
Eco-Friendly Amenities: A Practical Approach to a Greener Living
November 26, 2014 by Nicoleta Iudean

Going green is no longer just a vague urban trend for developers, property owners and managers of
apartment buildings. It has become a double responsibility: to develop green projects (or transition
existing ones to green) and to tune in to renters’ eco-conscious mind-set by nurturing and educating
green communities.
Environmentally friendly living is just as much a global matter, as it is (or should be) a corporate
endeavor, and last but not least an individual concern. World population, cities, neighborhoods and
buildings continue to grow rapidly at an alarming pace.

Going green is no longer just a vague urban trend for developers, property owners and managers of
apartment buildings. It has become a double responsibility: to develop green projects (or transition
existing ones to green) and to tune in to renters’ eco-conscious mind-set by nurturing and educating
green communities.

Popular Green Amenities

The additional effort of implementing sustainable design and eco-friendly apartment amenities may well
pay-off by attracting and retaining a rising number of green-minded renters. Studies conducted by Strata
Research in 2013 shows that 77 percent of renters believe it is important that their apartment is green,
and 72 percent are willing to trade off an important apartment feature (such as extra storage space or
high ceilings) for ‘green’ features.

Are you keeping up with the green trends in your community? We’ve put together a comprehensive list
of popular green amenities (both apartment and community oriented), that we’ve assembled by
analyzing all the rental property descriptions from our nationwide rentals listing portal, RENTCafé:

On-Site Recycling Program. The 3R’s: Reuse, Reduce, Recycle are more important than ever. Starting a
comprehensive recycling program in your community, either with the help of local authorities or by
contracting a private waste & recycling company , will be appreciated and may increase the community-
mindedness of other residents. A robust recycling program will save you money when compared to the
costs of trash disposal. In addition, this can become a strong selling point for you property! Some other
related green trends are hazardous waste disposal systems and composting areas. Have you ever
considered them?

Green spaces. Do as much tasteful landscaping as your property enables you to. Renters appreciate
anything that provides them with a little urban escape, such as dreamy green meadows, friendly pet
walking areas, blooming trees, colorful flowers, and decorative plants displayed along sidewalks or bike
paths. Another green landscaping amenity that’s trending is a rooftop garden (‘green rooftop’), which
will improve air quality and reduce pollution. More importantly, it will increase energy conservation,
since the plants provide natural insulation, while diminishing the flood risks.

Energy efficiency improvements. Energy use in multi-family buildings with 5 or more residential units
can be reduced significantly and upgrades can result in utility cost savings of 15-30%, according to a
report released in 2012 by CNT Energy and ACEEE. Here are some of the improvements most frequently
implemented: programmable thermostats, energy efficient heat pumps / windows / patio doors, energy
saving light fixtures (LED technology), Energy Star stainless steel appliances, highly efficient washers and
dryers in the laundry room, and even heat reflective ceilings.
Water efficiency. Property managers can make their contribution to reducing water consumption by
installing low-flow sink and bathtub faucets, showerheads and toilets, which can reduce indoor water
use by 30-40%. Also some HVAC (Heating, Ventilation and Air Conditioning) measures can be taken,
depending on each particular system. Last but not least, landscaping around buildings needs a
reassessment: automatic irrigation systems with electronic controllers, soil moisture sensors, and low
volume distribution devices are recommended. You should even consider planting drought-resistant
species that require less humidity.

Alternative means of transportation. One way to encourage residents to travel less by car (or even not
to buy a car) is to provide bike rentals, bicycle storage facilities, and even designated paths for those
who favor this activity. Also, more and more people are purchasing electronic vehicles that require
charging batteries, so a charging station at the property is a great incentive for residents. Another idea
to diminish the need for privately-owned cars is the Zipcar service that some properties seem to have
already implemented successfully.

Smoke-free communities. It may seem a harsh thing for smokers, but the fact is local comprehensive
smoke-free laws have already impacted on hundreds of communities nationwide. We will not debate
the dangers of second-hand smoking here. It only takes time, will, and careful planning to educate your
communities about this new health measure. Luckily, there are many NGOs and even state laws that
support such work and can facilitate the provision of materials.

Solar panels. Is your roof providing anything else for your residents other than shelter? By investing in
solar systems, managers can turn them into property income. Solar energy is the easiest way to heat up
water, and it works in partnership with other existing water heating systems. In time, the investment
will pay for itself.

The use of recycled and non-toxic materials. We are more than privileged to be living in times when the
diversity of products on the market is huge. You can make green choices about what to buy for your
property: use non-toxic products for general cleaning and maintenance, use recycled materials to build
certain amenities (such as playgrounds and common area facilities), paint the walls with low or zero VOC
paint, and the list goes on and on.
Benefits of Ecotourism
By SJ Stratford

Ecotourism can do a lot to preserve a local environment

There are many benefits of ecotourism when it is created and managed by local communities, kept
under close regulation and understood that its purpose is solely for the local environment's health and
the promotion of a genuine understanding of its structure and needs. The hope is that as more
ecotourists gain knowledge of a variety of environments, the cause of environmentalism worldwide will
gain further traction.

Common Benefits of Ecotourism

One of the biggest benefits of ecotourism is that, with no negative impact being made upon the
environment, the communities are reaping the financial rewards without having to shoulder any burden
of stress upon the land. Tourism has been good for many economies, but often at a high price to the
environment and those people who are dependent upon it.
Another of the benefits of ecotourism that is harder to measure is the opportunity it provides to
educate tourists in a unique, hands-on capacity. People who live in cities and suburbs may be
sympathetic to the needs of various rural communities worldwide, but it's a very different thing to look
at pictures or film versus actually going to a place and experiencing its effects in person. Not only will
they spend the money to get that experience, they will encourage others to do the same and many will
even be prompted to get more politically involved. If fragile ecosystems are given more support at the
governmental level, they are far more likely to survive and thrive for generations to come.

A Chance to Reduce Poverty

It is easy to criticize ecotourism as little more than an opportunity to encourage a kind of voyeurism
among the rich. There are also valid concerns that it can still do a level of harm that should be avoided.
However, more studies indicate that the benefits are far outweighing potential, or real, drawbacks.
Where ecotourism has a stronghold, development is kept at bay, and development is what can kill an
ecosystem and drive local or indigenous people into poverty. In fact, studies are showing that
ecotourism is reducing poverty and doing more to protect local environments and even improve their
conditions. Because people who travel to such far-reaching places want to see something as pristine as
possible, the drive is on to reclaim any land that had started to degrade. One concrete example of the
improvement possible was seen in Fiji, where ecotourism encouraged the protection of a fishery. The
fish population had collapsed, but when ecotourism created jobs, such as diving guides, and the
protected area gave the populations a chance to recover, local incomes doubled over five years. When
the local community can be active in determining its best course and is given proper assistance from the
government - in this case, policing of the fishing zones to prevent sea poaching by outsiders - everyone
can benefit.

Looking Forward
Ultimately, good conservation requires a concerted and ongoing effort by everyone from locals to
government to international policymakers. It takes small steps like establishing ecotourism as an
industry to help everyone see what's necessary and what is possible. Many people become easily
discouraged by the excess of development and environmental degradation such as deforestation. Efforts
like ecotourism show locals and governments alike that land can be reclaimed and is worth conserving
for generations to come.