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List of table 
Table 1: Global performance ....................................................................................................................... 6
 
Table 2: Performance of key countries in June 2010.................................................................................... 7
 
Table 3: Performance of key countries in June............................................................................................. 9
 
Table 4: Modifications of the SERVQUAL scale........................................................................................... 21
 
Table 5: Lodging quality index 26‐items ..................................................................................................... 24
 
Table 6: Measuring SATISFY based on recommendation of property, experiencing a problem, and 
handling ...................................................................................................................................................... 25
 
Table 7: Characteristic of survey................................................................................................................. 43
 
Table 8: Important levels of hotel service by gender ................................................................................. 57
 
Table 9: Important levels of hotel service in Europe and Asia ................................................................... 58
 
Table 10: Important hotel service attributes.............................................................................................. 74
 
Table 11: Differences between men and women expectations and perceptions ...................................... 77
 
 

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1
CHAPTER 1: LITERATURE REVIEW ON HOTEL INDUSTRY 
 
This chapter outlines the concept of hotel industry. It presents the overview of hotel industry, its 
history and it also discusses about the growth and trend of the hotel industry nowadays. When 
most of the tourists plan their trips, one of first steps is to look for the hotel and book the room at 
or near the place where they want to visit. These days, hotel is not as simple as the building; it 
becomes an industry that employs many people, especially the female.  
 
1.1
 
What is hotel industry? 
 
 Food, accommodation and dress are the three most essential things of human. Hotel or hotel 
industry alone provides two basic things: food and accommodation. So, what is hotel or hotel 
industry? 
Hotel is a part of the hospitality industry which is an umbrella term for a broad variety of service 
industries including, but not limited to, hotels, restaurants and casinos. Hotel is often referred as 
a “Home away from home”. If we consider meaning of hotel in the dictionary, a hotel is a 
building where you pay to have a room to sleep in and where you can eat meals (Cambridge 
dictionary) or a hotel is an establishment that provides paid lodging on a short-term basis 
(Wikipedia) 
According to A.M. Sheela, the author of the book “Economics of Hotel Management”, hotel is 
the place where the tourist stops being the traveler and become a guest. Hotel usually offer a full 
range of accommodations and services, which may includes suites, public dinning, banquet 
facilities, lounges and entertainment facilities. It is considered as an industry whose main aim is 
also to make profits for the hoteliers, though this may change at times.  
Hence a hotel should provide food, beverage and lodging to travelers on payment and has in turn 
the right to refuse if the traveler is drunk, not follow the rule of hotels or not pay the service fee. 
Traditional hotels provide rooms, banquets and restaurants. Additional hotels get revenues also 
from telephone call services, laundry services, travel services, internet services and recreational, 
entertainment activities in the hotels. 
 
 

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2
1.2 History of hotel industry 
 
The hotel is maybe one of the oldest industries in the world. The history of hotels is connected 
closely to civilizations of mankind.  
According to some documents, the first inn was appeared in the sixth century B.C when some 
couples provide large halls for travelers to drink and the entire service was done by owners. To 
other documents, since early biblical times, the Greeks developed thermal baths in villages for 
rest. Later, the Romans built mansions to provide accommodation for the government business. 
The first thermal baths in England, Switzerland and the Middle East were developed by the 
Romans. In the Middle Ages, religious built inns to cater for their colleagues on the move. 
At the beginning, inns did not offer meals. They only provided shelter and allowed horses to be 
changed more easily. Travelling became popular and the impact of the industrial revolution in 
England spread widely that led to the change from social or governmental travel to business 
travel. The need for quick and clean service all the time was emerged. 
 
 
The birth of hotel industry took place in Europe. At the beginning of the fifteenth century, in 
France, the first time, there was a law required that hotels keep a register. During this period, the 
first guide books for travelers were also published. English rules for inns also introduced at that 
time. At the same time, around 1500 thermal spas were developed in Carlsbad and Marienbad.  
However, the real growth of the modern hotel industry took place in the USA by the opening of 
the City Hotel in New York in the year 1794.  It emerged the wave of hotel building activity in 
different cities. Some of the best hotels of the USA were built in this era, but the real boom came 
in the early of 20th century. This period also saw a beginning of chain operations under the 
guidance of E.M Sattler which would spread into all the continents. It involved big investments, 
big profits and trained professionals to manage the hotel business. 
Nowadays, architects, designers, developers, engineers, managers, etc realize that taste of guests 
could be different, according to their wishes or needs. Therefore, they have to catch new trends, 
define better criteria, present modern standards in order to improve quality of life in hotels. 
 
 

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