THE RELATIONSHIP OF THE HOTEL RATING SYSTEM AND SERVICE QUALITY A CASE STUDY OF THE ‘THAILAND HOTELS STANDARD’ By YEAMDAO NARANGAJAVANA Bachelor of Business Administration Assumption University Bangkok, Thailand 1997 Master of Art Bournemouth University Bournemouth, United Kingdom 1999 Submitted to the Faculty of the Graduate College of the Oklahoma State University in partial fulfillment of the requirements for the degree of DOCTORAL OF PHILOSOPHY May, 2007 THE RELATIONSHIP OF THE HOTEL RATING SYSTEM AND SERVICE QUALITY A CASE STUDY OF THE ‘THAILAND HOTELS STANDARD’ Dissertation Approved: Dr. Bo Hu Dissertation Advisor Dr. Hailin Qu Dr. Jerrold Leong Dr. Ken Eastman Dr. A. Gordon Emslie Dean of the Graduate College ii ACKNOWLEDGEMENTS I am deeply appreciated my advisor, Dr. Bo Hu, who guided me throughout the dissertation process even though we are half-the-world far from each other. Thank you for your dedication, patience, friendliness, encouragement, and support. My appreciation also goes to Dr. Hailin Qu, Chairman of my dissertation committee, for understanding my limitation as an international student. Special thanks are also for other committee members, Dr. Jerrold Leong and Dr. Ken Eastman. I am greatly indebted to Walailak University, which provided a scholarship for advancing my knowledge. Also, I would like to express gratitude to Dr. Gosa Areeya, Dean of Institute of Management, and Associate Professor Somnuek Auejeerapongpan, former Dean of Institute of Management for their support and guidance. Sincerely thanks to my colleagues at Walailak University, especially Ajarn Rungrawee Jitpakdee, Ajarn Onanong Cheableam, Ajarn Sukumal Klamseangsai, Ajarn Pawit Tansakul, Mr. Narongchai Chairaksa, Miss Hataikarn Nundetch for your great support, since returning from coursework in the United States. I also thank many other colleagues whom I do not mention their name here. Additionally, I would like to thank my OSU colleagues who gave me wonderful experiences while studying at Oklahoma State University. Special thanks for Pimtong Tavitiyaman for being a close friend and all your help for running all activities while I was not at OSU. Thank you, Prapaporn Kiattikulwattana, my roommate, and other Thai iii friends from the OSU Thai Student Association. Also thank you, Dr.Shahrim Abkarim and others HRAD colleagues. Last but not least, I would like to thank my family: my parents, Yinnatee Kaosiri and Unnop Narangajavana, for giving me life, love, caring, and believing in me. My sister, Yeamduan Narangajavana Garrigos, for happiness we had in our childhood. Dr. Kanop Ketchart, thank you for your love and support. Without these people, I could have not finished all the requirements for the degree of Doctoral of Philosophy from Oklahoma State University. Thank you all. iv TABLE OF CONTENTS Chapter Page CHAPTER I. INTRODUCTION ----------------------------------------------------------------1 Background of Thai Tourism and Hospitality Industry ------------------------------1 Service Quality in Thai Tourism and Hospitality Industry --------------------------3 The Thailand Hotels Standard-----------------------------------------------------------4 Significance of the Study ----------------------------------------------------------------7 Objectives of the Study-------------------------------------------------------------------8 CHAPTER II. LITERATURE REVIEW ----------------------------------------------------- 10 Hotel Rating ----------------------------------------------------------------------------- 10 Definitions of Hotel Rating System ----------------------------------------- 10 Characteristics of Hotel Ratings Systems----------------------------------- 12 The Survey of Existing Hotel Rating Systems ----------------------------- 14 The U.S. Hotel Rating Systems ---------------------------------------------- 15 Britain’s Hotel Rating Systems----------------------------------------------- 18 China’s Hotel Rating System------------------------------------------------- 20 The Importance of Hotel Rating Systems----------------------------------- 22 Service Quality -------------------------------------------------------------------------- 23 Definition of Service-----------------------------------------------------------23 Definition of Quality-----------------------------------------------------------28 Definition of Service Quality------------------------------------------------- 33 Service Quality Measurement ------------------------------------------------ 37 Service Quality in Hospitality Industry ------------------------------------- 44 Service Quality Measurement in Hospitality Industry -------------------- 49 Hotel Rating, Service Quality, and Hotel Performance ---------------------------- 55 Conceptual Framework----------------------------------------------------------------- 57 Hypotheses------------------------------------------------------------------------------- 58 CHAPTER III. METHODOLOGY------------------------------------------------------------ 60 Research Framework ------------------------------------------------------------------- 60 Research Design------------------------------------------------------------------------- 62 Sampling Plan--------------------------------------------------------------------------- 62 Target Population -------------------------------------------------------------- 62 Sample Size--------------------------------------------------------------------- 63 v Sampling Methods ------------------------------------------------------------- 64 Survey Administration ----------------------------------------------------------------- 66 Instrument-------------------------------------------------------------------------------- 68 Pilot Study------------------------------------------------------------------------------- 70 Content Validity------------------------------------------------------------------------- 71 Reliability -------------------------------------------------------------------------------- 71 Data Analysis---------------------------------------------------------------------------- 73 Descriptive Analysis----------------------------------------------------------- 74 Independence Sample T-Test------------------------------------------------- 74 Factor Analysis----------------------------------------------------------------- 75 Analysis of Variance----------------------------------------------------------- 76 Canonical Correlation Analysis ---------------------------------------------- 77 CHAPTER IV. RESULTS---------------------------------------------------------------------- 79 Sample Description --------------------------------------------------------------------- 79 The Perceived Influences of the Hotel Rating System ----------------------------- 84 Perceptions at the Industry Level -------------------------------------------- 84 Perceptions at the Property Level -------------------------------------------- 86 Hypothesis Testing: Differences of the Perceived influences of the Thailand Hotels Standard on Hotels’ Application Status ------------------------------------------------ 88 Hypothesis Testing: Differences of the Perceived influences of the Thailand Hotels Standard on Hotels’ Certification Status ----------------------------------------------- 92 Factor Analysis of Service Quality Improvement ---------------------------------- 96 Hypothesis Testing: Service Quality Improvement and Star Rating Level -----------------------102 Hypothesis Testing: Service Quality Improvement and Hotel Chain Affiliation-----------------104 Hypothesis Testing: Service Quality Improvement and Hotel Performance Changes-----------105 Discussion of Findings ----------------------------------------------------------------113 Summary of Hypotheses Testing ----------------------------------------------------126 CHAPTER V. CONCLUSION---------------------------------------------------------------129 Summary --------------------------------------------------------------------------------129 Implications-----------------------------------------------------------------------------132 Limitations of the Study---------------------------------------------------------------141 Recommendation for Future Work --------------------------------------------------143 BIBLIOGRAPHY ------------------------------------------------------------------------------146 vi APPENDICES-----------------------------------------------------------------------------------160 Appendix A- World’s Top Tourism Earners ---------------------------------------160 Appendix B - World’s Top Tourism Destinations (absolute numbers) ---------161 Appendix C - World’s Top Tourism Destinations by Number of Rooms ------162 Appendix D - Pilot Test Questionnaire (English)----------------------------------163 Appendix E - Pilot Test Questionnaire (Thai)--------------------------------------170 Appendix F - Questionnaire (English) ----------------------------------------------177 Appendix G - Questionnaire (Thai)--------------------------------------------------184 Appendix H - IRB Approval----------------------------------------------------------191 vii LIST OF TABLES Table Page 1 Summary of Three Hotel Rating Systems -------------------------------------------------- 21 2 Understanding the Nature of the Service Act ---------------------------------------------- 24 3 The Four Major Quality Eras----------------------------------------------------------------- 31 4 Comparison of Service Quality Instruments in Hospitality Industry-------------------- 52 5 Response