Service recovery strategies and customer loyalty in selected hotels in Lagos State, Nigeria

Abstract

This study is focused on significant service recovery strategies and their impact on customer loyalty in the hotel industry. Related literatures were reviewed to establish conceptual and theoretical framework for the study. Data for the study were gathered through a structured questionnaire and analyses were carried out using inferential statistics, while the study hypotheses were tested using the Z-test statistical technique. The study revealed that there is significant relationship between service recovery strategy, time, customer loyalty and customer satisfaction. The study concludes that effective recovery efforts have a significant impact; hence compensation was among recovery strategies adopted by most hotels studied. Hotel establishments should adopt the concept of relationship marketing since it is practically impossible to totally avoid service failure in the service delivery process. Hotels should equally develop training programmes to sensitize employees on communication procedures, as well as develop platforms through which customers can effectively make their complaints known to the establishment.

Keywords: Service recovery, customer loyalty, service failure, customer satisfaction, hotel industry.