Perception of Tourists with Budget Hotels

The intense competition in the hotel industries has increased intensively (Greger & Peterson, 2000). Hence, rivalry could bring about extended capacities in the market environment. In addition, the management of the hotel industries are being challenges in line with the different issues and factors that must be given attention such as liquidity troubles, costs, deterioration of commercial and leisure travels, and other business factors (McMahon-Beattie et al., 1999). In this regard, the productivity and the existence of budget hotels can be affected. Hence, it is important to understand the factors that can affect the performance of the budget hotels in China and determine the manners on how the budget hotels management should be able to manage these factors. One of the factors that must be considered is the manners that the budget hotels provide their services to consider repeat service purchase.

In a study by Maxwell and his colleagues (2004), they have noted that the service quality of hotel industry depends on the management and the employees, specifically those who are directly interacting and communicating with the tourists. in this study, the authors have noted that the context of service quality is relative to the attitude of the staff and the entire environment of the hotel which encourages the customers to avail the service of the hotels again. The context of quality services for tourists or guests are multi-faceted specifically for hospitality industries like Budget hotels. To be able to combine the aspect of quality with the provision of service, it is essential that the management should have the right capabilities, values as well as resources. As the service quality for tourists is impacted by different elements, the participation of both the management of the hotels as well as the employees should always be visible. In this study, it can be noted that budget hotels are facing a lot of challenges and market environment pressures and compromising the quality of the service will not provide any help for sustaining the competitive advantage of this small scale hotels.