Chapter 4 ANALYSIS AND FINDINGS 4.1...

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Chapter 4

ANALYSIS AND FINDINGS

4.1 Introduction

The obtained primary data was subjected to statistical analyses in the study.

The statistical analyses and findings of this two-part study concerning Alternative

Accommodation sector are presented in this chapter. Parts I dealt with the supply-

side factor of this sector while Part II dealt with the demand-side factor.

Specifically, Part I focussed on the points of differences that characterize

Alternative Accommodation establishments and Part II highlighted the service

quality attributes of Alternative Accommodation. Hypothesis testing has been

presented in separate sections and whether each hypothesis is accepted or rejected

has also been discussed. The findings and their implications have been presented

taking the study objectives in a particular order to lend clarity and linkage.

4.2 Objective 1: Alternative Accommodation characteristics and inter-

relationships

The first objective was to describe the Alternative Accommodation

establishments sampled for the purpose of this study, in terms of their

demographic characteristics, operational characteristics, marketing mix and the

inter-relationships, if any, existing therein.

4.2.1 Demographic characteristics

The demographic characteristics of hosts are provided in Table 4-1. The

table indicates that there were 46 guest houses, 1 commercial home and 3 service

apartments among the sampled Alternative Accommodation establishments. Out

of these three common types of Alternative Accommodation, guest houses were

found to be the most common. Further the table also reveals that 37 Alternative

Accommodation establishments were selected from Puducherry. Five from

Karaikal, Four from Mahe and Four Alternative Accommodation establishments

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from Yanam districts of Puducherry union territory were also included in the

study. The seeming disparity is explained by the geographical size and volume of

Tourism business in these districts. In addition the Alternative Accommodation

establishments were divided depending on the number of years in business. A

considerable majority of the establishments were owned by the operator. About 35

establishments are in the business for less than ten years and 15 establishments

have been there in the field for more than ten years. This suggests that the majority

of Alternative Accommodation establishments in Puducherry union territory are

recent in their origin spurred by the overall destination development and the

emergence of Alternative Accommodation.

Table 4-1. Demographic characteristics of Alternative Accommodation

establishments

TYPE Nos. OWNERSHIP Nos.

Guest House 46 Owned 47

Commercial Home 1 Leased 3

Service Apartment 3

LOCATION YEARS IN BUSINESS

Puducherry 37 Less than 10 years 35

Karaikal 5 More than 10 years 15

Mahe 4

Yanam 4

4.2.2 Operational characteristics

The operational characteristics of hosts are provided in Table 4-2. The table

reveals that a majority of the Alternative Accommodation establishments had

about 11-15 beds. In terms of the capacity, the next range was 6-10 beds provided

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by about 24 per cent of the establishments. Further, the table also reveals that 68

per cent of Alternative Accommodation establishments employed only 1-5 staffs.

About 30 per cent of the establishments employed 6-10 staff. Only one of the

establishments surveyed had more than 11 staff. In terms of having an online

presence – either through a website or a listing in an online directory of

Accommodation establishments, only about 46 per cent of them had any online

presence.

Table 4-2. Operational characteristics of Alternative Accommodation

establishments

Number of rooms Per cent of

establishments

1 to 5 Beds 14

6 to 10 Beds 24

11 to 15 Beds 52

16 Beds and above 10

Number of staff

1 to 5 Staffs 68

6 to 10 Staffs 30

More than 11 Staffs

and above 2

Online presence

Available 46

Not available 54

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4.2.3 Marketing mix elements

From a marketing viewpoint, traditional marketing mix elements involve

product, price, promotion and place (McCarthy, 1981). In the case of service

marketing, additional elements such as physical surroundings, participants and

processes are added to the marketing mix (Booms and Bitner, I982). Depending on

the type of business, the elements that constitute the marketing mix vary. Table 4-

3 describes the elements of marketing mix for Alternative Accommodation.

Table 4-3. Elements of marketing mix at Alternative Accommodation

establishments

7Ps of

Marketing Mix Elements comprising the Marketing Mix

P1-Product

Physical features of the establishments

Auxiliary services (such as Restaurant, Travel desk, Gym,

Forex and so on)

Branding (colour, font, design, widely used in everything)

P2-Price

Fixed Tariff

Discounts

Seasonal Tariff

Flexible pricing

Differentiation (Depending on customer type)

P3-Place

Internet booking (Direct )

Internet booking (Indirect)

Sales team (own)

Channel partners

P4-Promotion

Advertising – Offline

Personal selling (corporate)

Publicity (hoardings)

P5-People

Employees – Recruiting

Training

Rewards (motivation)

Teamwork

Orienting the customer

P6-Process

Customer’s involvement (for example, self check-in)

Standardized / customized

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P7-Physical

Evidence

Interior Design

Exterior (Frontage)

Signage

Business stationery

Employee Dress / Uniform

Tariff Cards

Promotional Literature (such as brochures)

Display of policy statements

4.2.4 Association between the characteristics and marketing mix

The first hypothesis was based on the demographic characteristics variables

of Alternative Accommodation establishments in Puducherry union territory. The

second hypothesis was based on the operational characteristics of Alternative

Accommodation establishments in Puducherry union territory. The hosts/managers

were interviewed to collect the information on marketing mix of the Alternative

Accommodation establishments. The following sections present the analyses

related to these hypotheses and the interpretations.

4.2.4.1 Association between demographic characteristics and marketing mix

The following hypothesis was formulated in order to observe the

association between the demographic characteristics of the Alternative

Accommodation sector and the elements of the marketing mix.

H1: There is a difference in the marketing mix of the Alternative

Accommodation based on their demographic characteristics

The sections below describe the demographic characteristics of Alternative

Accommodation establishments. Tables 4-4, 4-5 and 4-6 describe the results for

demographic characteristics namely, type of Accommodation (guest house,

commercial homes, and service apartments), location (Puducherry, Karaikal, Mahe

and Yanam) and years of business in comparison with the marketing mix.

Appendix –III A shows the detailed statistical outputs. There are seven parameters

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of marketing mix, namely, product, price, place, promotion, people, process and

physical evidence. They are collectively and popularly referred to as 7Ps of

marketing mix in marketing literature (Booms and Bitner, I982). Table 4-4

presents the Chi-square results for the association between the type of

Accommodation and the elements of the marketing mix of alternative

Accommodation sector. The careful scrutiny of the table reveals that there was a

significant difference in the market mix, particularly for the following aspects of

marketing mix. One aspect from Marketing Mix Place, that is, channel partners (χ²

= 24.634; p>.000).Two factors of Marketing Mix Promotion, namely Advertising

– Offline(χ² = 50.00; p>.000), and Personal selling (corporate) (χ² = 24.537;

p>.000). Four factors of Marketing Mix People, namely Training (χ² = 24.292;

p>.000), Rewards (motivation) (χ² = 28.387; p>.000), Teamwork (χ² = 18.053;

p>.006), and Orienting the customer (χ² = 18.872; p>.004). One factor of

Marketing Mix Process, namely Customer’s involvement: (for example, self

check-in) (χ² = 24.537; p>.000). Two factors of Marketing Mix, namely physical

evidence; Business stationery (χ² = 16.431; p>.012) and display of policy

statements (χ² = 50.290 p>.000). According to the present study, the maximum

influenced dimension of marketing mix as a result of type of Accommodation is

People.

Most of the other marketing mix factors, other than the one mentioned

above, did not have significant relationship with demographic characteristic – type

of Alternative Accommodation. Hence, the first hypothesis is accepted specific to

the above mentioned factors, namely channel partners, advertising – offline,

personal selling (corporate), training, rewards (motivation), teamwork, orienting

the customer, customer’s involvement, Business stationery and display of policy

statements.

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Table 4-4. Association between demographic characteristic (types of

Accommodation) and marketing mix

7Ps of

Marketing Mix Factors

Chi

square p value

P1-Product

Physical features of the establishments 0.231 .972 (NS)

Auxiliary services (such as Restaurant,

Travel desk, Gym, Forex and so on)

Branding (colour, font, design, widely

used in everything)

5.792 .447(NS)

P2-Price

Fixed Tariff 4.762 .575(NS)

Discounts 1.952 .924(NS)

Seasonal Tariff 1.567 .667(NS)

Flexible pricing 1.952 .924(NS)

Differentiation (Depending on customer

type)

1.952 .924(NS)

P3-Place

Internet booking (Direct ) 17.037 .048(NS)

Internet booking (Indirect) 8.892 .180(NS)

Sales team (own) 9.026 .172(NS)

Channel partners 24.634 .000 (S)

P4-Promotion

Advertising – Offline 50.00 .000(S)

Personal selling (corporate) 24.537 .000(S)

Publicity(hoardings) 0.113 .990(NS)

P5-People

Employees -Recruiting 0.113 .990(NS)

Training 24.292 .000(S)

Rewards (motivation) 28.387 .000(S)

Teamwork 18.053 .006(S)

Orienting the customer 18.872 .004(S)

P6-Process

Customer’s involvement(for example,

self check-in)

24.537 .000(S)

Standardized / customized 2.862 .970(NS)

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P7-Physical

Evidence

Interior Design 6.320 .707(NS)

Exterior (Frontage) 7.754 .257(NS)

Signage 7.398 .286(NS)

Business stationery 16.431 .012(S)

Employee Dress / Uniform .355 .949(NS)

Tariff Cards 12.172 .058(NS)

Promotional Literature (such as

brochures)

1.220 .748(NS)

Display of policy statements 50.290 .000(S)

[Note: NS – Non-significant association; S – Significant association]

Table 4-5 presents the Chi-square results for the association between the location

of Accommodation (districts of Puducherry union territory) and elements of the

marketing mix of Alternative Accommodation sector. A cautious examination of the table

disclosed that there was a significant difference in the marketing mix, particularly three

factors of physical evidence, namely Business stationery (χ² = 15.981; p>.014),

Employee Dress / Uniform (χ² = 11.472; p>.009), Promotional Literature (for example,

brochures) (χ² = 11.336; p>.010). Most of the other marketing mix factors, the other than

the one mentioned above, did not have significant association with demographic variable

– location of Alternative Accommodation. Therefore, the first hypothesis has been

accepted specific to the above mentioned factors, namely, Business stationery, employee

dress / uniform and promotional literature only.

Table 4-5. Association between demographic characteristic (location of Accommodation)

and marketing mix

7Ps of


Chi

square

p value

P1-Product

Physical features of the establishments 3.829 .281 (NS)




used in everything)

3.884 .692(NS)

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P2-Price





Differentiation (Depending on customer

type)

5.458 .487(NS)

P3-Place




Channel partners 1.121 .981(NS)

P4-Promotion

Advertising – Offline .359 .949(NS)

Personal selling (corporate) .732 .866(NS)

Publicity(hoardings) .359 .949(NS)

P5-People

Employees -Recruiting .359 .949(NS)

Training 6.602 .359(NS)

Rewards (motivation) 5.907 .434(NS)

Teamwork 3.229 .780(NS)

Orienting the customer 2.860 .826(NS)

P6-Process


self check-in)

.732 .866(NS)

Standardized / customized

P7-Physical

evidence

Interior Design 13.524 . 140(NS)




Employee Dress / Uniform 11.472 .009(S)



brochures)

11.336 .010(S)

Display of policy statements 1.528 .958(NS)


Table 4-6 presents the Chi-square results for the association between years

of business and the marketing mix elements of Alternative Accommodation sector.

It shows that there is a significant association for the Price factors, namely fixed

tariff (χ² = 11.429 ; p>.003), Discounts (χ² = 10.109; p>.001), Seasonal Tariff (χ² =

18.508; p>.000) and Flexible pricing (χ² = 15.476; p>.000) and People factors

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such as Employees-Recruiting (χ² = 7.193; p>.027), Rewards (motivation) (χ² =

6.811; p>.033) and Teamwork (χ² = 6.385; p>.041). Besides, a Process factor (that

is, standardized/customized, χ² = 8.234; p>.041) and a Physical Evidence factor

(that is, business stationery, χ² = 10.145; p>.001) was also found to be

significantly associated with the years of business. Therefore, in the light of the

above, first hypothesis has been accepted specific to the above mentioned factors

only and not for the other factors.

Table 4-6.Association between demographic characteristic (years in business) and

marketing mix

7Ps of

Marketing Mix

Factors Chi

square

p

value

P1-Product

Physical features of the establishments

Auxiliary services (such as

Restaurant, Travel desk, Gym, Forex

and so on)

4.119 .128(NS)


used in everything)

1.525 0.466(NS)

P2-Price

Fixed Tariff 11.429 .003(S)

Discounts 10.109 .001(S)

Seasonal Tariff 18.508 .000(S)

Flexible pricing 15.476 .000(S)

Differentiation (Depending on

customer type)

2.869 0.412(NS)

P3-Place



Sales team (own) .893 .640(NS)

Channel partners

P4-Promotion


Personal selling (corporate) .437 .508(NS)


P5-People

Employees -Recruiting 7.193 .027(S)


Rewards (motivation) 6.811 .033(S)

Teamwork 6.385 .041(S)

Orienting the customer .437 .508(NS)

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P6-Process


self check-in)

7.183 .066 (NS)

Standardized / customized 8.234 .041(S)

P7-Physical

Evidence





Employee Dress / Uniform 1.693 .429(NS)



brochures)

1.368 .242(NS)



The first hypothesis was accepted for some of the aspects of marketing mix

as they were associated with the demographic characteristics of Alternative

Accommodation establishments. Nevertheless, the first hypothesis was not

accepted for some of the factors of marketing mix. On the other hand, a clear

association could be seen as far as physical evidence (among the 7Ps) of

marketing mix is concerned with all the demographic variables of Alternative

Accommodation sector. However, in the light of the above analyses and tables,

Hypothesis 1 should be accepted for specific factors of marketing mix and not for

all in general.

4.2.4.2 Association between operational characteristics and marketing mix

The following hypothesis was formulated in order to observe the

association between the operational characteristics of the Alternative

Accommodation sector and the elements of the marketing mix.

H2: There is a difference in the marketing mix of the Alternative

Accommodation based on their operational characteristics

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The following sections describe the operational characteristics of

Alternative Accommodation establishments. The Tables from 4-7 to 4-9 show the

association between operational characteristics of Alternative Accommodation and

marketing mix. The operational characteristics of Alternative Accommodation

such as number of beds (indicating capacity), number of staff and online presence

were considered. The marketing mix elements remained the same as explained in

the previous section.

Table 4-7 shows the association between the number of staff at an

Alternative Accommodation and its marketing mix. A careful observation

indicates that there was no association for all the elements of marketing mix.

Therefore, Hypothesis 2 is not accepted for this particular operational

characteristic (namely, the number of staff) and marketing mix.

Table 4-7. Association between operational characteristic (number of staff)

and marketing mix

7Ps of


Chi

square p value

P1-Product

Physical features of the establishments .419 .811(NS)




used in everything)

2.199 .699(NS)

P2-Price



Seasonal Tariff .363 .834(NS)



customer type)

1.442 .837(NS)

P3-Place






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P4-Promotion Personal selling (corporate)


P5-People

Employees -Recruiting .480 .787(NS)

Training .705 .951(NS)

Rewards (motivation) .779 .941(NS)

Teamwork .451 .978(NS)

Orienting the customer .240 .993(NS)

P6-Process


self check-in)

.980 .613(NS)


P7-Physical

Evidence




Business stationery 1.577 .813(NS)

Employee Dress / Uniform .076 .962(NS)



brochures)

.595 .743(NS)



Table 4-8 shows the association between the number of rooms at an

Alternative Accommodation and its marketing mix. A careful observation of the

data indicated that there was no association for all the elements of marketing mix.

Table 4-8. Association between operational characteristic (number of rooms)

and marketing mix

7Ps of

Marketing Mix

Factors Chi

square

p value

P1-Product

Physical features of the establishments 2.639 .451(NS)




used in everything)

5.304 .506(NS)

P2-Price




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customer type)

11.371 .078(NS)

P3-Place





P4-Promotion

Advertising – Offline 6.268 .099(NS)

Personal selling (corporate) 4.127 .248(NS)


P5-People

Employees -Recruiting 3.231 .357(NS)


Rewards (motivation) 8.284 .218(NS)

Teamwork 1.1309 .079(NS)

Orienting the customer 8.102 .231(NS)

P6-Process


self check-in)

3.807 .283(NS)


P7-Physical

Evidence




Business stationery 7.767 .256(NS)

Employee Dress / Uniform 2.069 .558(NS)



brochures)

3.325 .344(NS)



In addition, analysis was carried out to test for an association between the

online presence of Alternative Accommodation establishments and their marketing

mix elements. Out of the 50 establishments sampled, 23 have online presence in

the form of websites or listing in online directories whereas 27 hoteliers do not

have any online presence. T-test was applied and the results were found to be non-

significant for all the elements of the marketing mix. Hence, the computational

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table is not presented as it is conventional not to place a table with insignificant

results.

The above analyses showed that the operational characteristics (such as the

number of staff, number of rooms and online presence) of Alternative

Accommodation establishments and their marketing mix elements did not have

any association. Hence, the second hypothesis was not accepted. Therefore in the

light of the above analyses, hypothesis two was accepted for a few elements of the

marketing mix only and not for all in general.

4.3 Objective 2: Points of differences between Alternative Accommodation and

Hotels

This objective intended to identify the differences in the elements of the

marketing mix of Alternative Accommodation when compared to a traditional

tourist accommodation such as a hotel. As described in chapter 3, data regarding

the marketing mix elements at hotels for comparison was obtained through a

disguised telephonic survey, followed by a validation of the data. In order to

understand the points of differences between Alternative Accommodation

establishments and hotels, the following hypothesis was formulated:

H3: There is a significant difference in the marketing mix between the

Hotels and Alternative Accommodation establishments

Table 4-9 and Figure 4-1 indicate that that there is a significant difference

between the marketing mix elements of traditional hotels and Alternative

Accommodation establishments. Appendix- III D shows the detailed statistical

outputs. The 7Ps of marketing mix are followed by traditional hotels in tune with

providing an expected product to the guests whereas in Alternative

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Accommodation, a certain degree of flexibility is exercised keeping in mind the

basic product attributes and the value proposition for the guest.

Table 4-9. T-test values for comparison of marketing mix between hotels and

Alternative Accommodation

Figure 4-1. Pyramid graph showing comparison of marketing mix between

hotels and Alternative Accommodation

4.4 Objective 3:Service Quality attributes of Alternative Accommodation

This objective intended to study the service quality attributes using the

ServQual model (Parasuraman, et. al. 1985) and look for gaps between the guests’

expectations about Alternative Accommodation and experiences at Alternative

Accommodation. This also helped assess their level of satisfaction with this

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unique accommodation product. For the purpose of this study, the generic

dimensions of ServQual, namely tangibility, reliability, responsiveness, assurance

and empathy were adapted as appearance, ability to perform, willingness to help,

knowledge and courtesy and caring individual attention respectively as explained

in Research methodology.

4.4.1 Expectation experience matrix

Mapping customer expectations can prepare the organization to take up a

competitive position based upon its ability to deliver what customers demand

(Cronin and Taylor, 1992). Systematic approach to mapping customer

expectations helps managers to know better what aspects of a service best define

its quality (Sharma and Chowdhary, 2012). One such measurement technique is

the Importance-Performance analysis (IPA) technique which emerged from the

earlier work of Martilla and James (1977). It has become a dominant framework

employed in the assessment of customer satisfaction with hospitality and tourism

services (Yüksel and Yüksel, 2001; Chaudhary and Aggarwal, 2012). Sharma and

Chowdhary (2012) explain expectation experience matrix as a variant of

importance performance analysis which is a useful management tool which can

help firms to redirect their scarce resources from low impact areas to high impact

areas (Lovelock, Patterson and Walker, 1999).

In expectation experience matrix, customers’ expectations and experiences

are plotted on a grid that is divided into 4 quadrants, formed based on the mean

scores of the expectations-experience ratings. The variables are then assessed

according to its position in the quadrant on the grid. Each quadrant suggests

different response from a strategy point of view, as shown in Figure 4-2. Variables

that are rated high in expectation and high in experience (Quadrant 1) score

suggest that service providers keep up the ‘good’ work and increase resources

directed towards these areas. In contrast, variable shaving low expectation rating

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and a low experience (Quadrant 3) rating suggest that investing resources to these

areas may offer only little advantage and should therefore be on a lower priority.

Variables that are rated high in expectation and low in experience (Quadrant 2) are

the missed opportunities and service providers need to concentrate here and pay

particular attention for improvement. Lastly, attributes rated low in expectations

and high in experience (Quadrant 4) are areas of possible overkill and therefore

service providers should reconsider the level of effort.

Figure 4-2. Expectation-Experience matrix quadrants

[Source: Prakashet al., 2011 as adapted from Evans and Chon,1989; Hemmasi et

al., 1994; Keyt et al., 1994; Martillaand James, 1977; Martin, 1995]

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4.4.2 Expectation experience gap analysis

In order to identify the gap between the tourist expectations and

experiences, the difference between the respective mean was calculated. Table 4-

10 details the gap between the tourists’ expectation and experience. Of the 21

variables studied, the variable modern amenities showed no deviation. The mean

value of the experiences of seven variables namely Host promise, Staff skilfulness,

Service on time, Service performance, Response to guests, Staff behaviour, Best

interest was higher than the mean expectations. The score of the mean

expectations on the thirteen variables namely visually appealing, smart staff,

guests problem solving, error free service, prompt service, willingness to help,

safety, courteous, knowledge to reply, individual attention, time convenient, host

attention, understand specific needs was higher than the mean experience.

Table 4-10. Expectation – Experience Gap

Variables Average

Expectations

Average

Experiences

Gap Type Of

Deviation

1.Modern amenities 4 4 0 Nil

2.Visually appealing 3.98 3.57 0.41 Negative

3.Smart staff 4.49 4.1 0.39 Negative

4.Host promise 4.06 4.94 -0.88 Positive

5.Guests’ probe solving 4.24 3.59 0.65 Negative

6.First time itself 3.94 4.45 -0.51 Positive

7.Service on time 3.92 4.02 -0.1 Positive

8.Error free service 4.02 3.37 0.65 Negative

9.Service perform 4.41 4.8 -0.39 Positive

10.Prompt service 4.63 3.31 1.32 Negative

11.Willing to help 3.82 3.55 0.27 Negative

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12.Response to guests 3.63 4.78 -1.15 Positive

13.Staff behaviour 3.86 4.12 -0.26 Positive

14.Safety 4.24 3.59 0.65 Negative

15.Courteous 4.22 3.88 0.34 Negative

16.Knowledge to reply 3.8 3.39 0.41 Negative

17.Individual attention 4 3.86 0.14 Negative

18.Time convenient 4.76 3.45 1.31 Negative

19.Host attention 4.25 4.02 0.23 Negative

20.Best interest 3.8 4.04 -0.24 Positive

21.Understand specific needs 3.96 3.47 0.49 Negative

To evaluate the gaps in tourists’ satisfaction with the Alternative

Accommodation establishments, the 21 variables were grouped under the five

ServQual dimensions namely Appearance (variables 1, 2 and 3), Ability to

perform (variables 4, 6, 7, 8 and 9), Willingness to Help (variables 5, 10, 11 and

12), Knowledge and Courtesy (variables 13, 14, 15 and 16), and Caring individual

attention (variables 17, 18, 19, 20 and 21). Table 4-11 and Figure 4-3 display the

mean scores on the ServQual dimensions.

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Table 4-11. Mean Scores on ServQual Dimensions

Attributes Mean

Appearance (Tangibles) 19.8696

Ability to perform (Reliability) 19.834

Willingness to help (Responsiveness) 20.8735

Knowledge and courtesy (Assurance) 19.0198

Caring, individualized attention (Empathy) 20.4032

Figure 4-3.Graph showing mean scores on ServQual Dimensions

Figure 4-4 shows a plot of the 21 variables in the expectation experience

matrix. As can be seen, they fall into four quadrants depending on their score. The

Low-High quadrant represents the ‘concentrate here’ quadrant and contains

variables such as modern amenities, courtesy with customers, personal attention

and specific needs for immediate action since the guest experience falls below the

guest expectation. The High-High quadrant represents ‘keep up the good work’

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quadrant and includes variables on which the guest experience matches the

expectation. Variables such as smart appearance, promise-keeping, performance

time, willingness to help, prompt service and customer interest are included here.

The Low-Low quadrant represents the ‘low priority’ quadrant and it groups

together variables such as problem-solving, time-taken, error-free performance,

safety, knowledgeable response, individual attention and operating hours on which

the guests have low expectation that is met. The High-Low quadrant represents the

‘overkill’ quadrant wherein variables that carry low expectation from the guest but

with exceeding experience are clustered together. The variables falling under this

quadrant are visual appeal, correct action, quick response and confidence-boosting

behaviour.

Based on this mapping, the Alternative Accommodation establishments

ought to focus on the variables in the ‘concentre here’ quadrant. This involves

providing modern amenities, being courteous with the guests, understanding the

specific needs of the guests and paying attention to those needs. They highlight the

need for customer-focus and orientation towards meeting their needs.

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Figure 4-4. Expectation-Experience Matrix and variable groupings

In order to understand the relationship between the expectation and

experience of service quality attributes of Alternative Accommodation

establishments, the following hypothesis was formulated and tested using

correlation analysis between the variables of interest:

H4: There is a relationship between the expectation and experience of service

quality attributes of Alternative Accommodation

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Table 4-12. Correlation coefficient of expectation and experience of the

guests at Alternative Accommodation establishments

Variable Mean S. D r P value

Expectation 3.9051 .33168 0.232 .000(S)

Experience 3.9565 .25605

The Table 4-12 shows the correlation coefficient between expectation and

experience of the guests at Alternative Accommodation establishments. Appendix-

III C shows the detailed statistical outputs. The correlation coefficient shows that

expectation and experience of guests are significantly correlated and related to

each other. It means the guests’ expectations from Alternative Accommodation are

being met. Guests were content with facilitates and services at the Alternative

Accommodation establishments. Hence, the fourth hypothesis was accepted as

there was a significant correlation between the expectation and experience of the

guests at Alternative Accommodation.

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Figure 4-5. Significant attributes for Guests in Alternative Accommodation

Further the analysis showed that the guests appreciated the attribute

‘willingness to help’ by the Alternative Accommodation establishments with

highest points, and the least appreciated attribute was ‘knowledge and courtesy’.

In the light of the above discussion, hypothesis-4 stands accepted and it is

concluded that the expectations of the guests about Alternative Accommodation

are met in terms of matching experiences.

4.5 Objective 4: Guests at Alternative Accommodation

This section describes the guests at Alternative Accommodation

establishments sampled for the purpose of this study, in terms of their profile

characteristics – both demographic and travel characteristics, and the inter-

relationships, if any, existing therein.

Appearance

19.86

Ability To

Perform

19.83

Wllingness To

Help

20.87

Knowledge And

Courtesy

19.019

Caring

Individual

Attention

20.40

0 1 2 3 4 5 6

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4.5.1 Profile characteristics

In the present study the guests staying in the Alternative Accommodation

were interviewed to assess their perception on service quality attributes and factors

of influence, and their profile characteristics were noted.

The demographic characteristics that were included in the study are presented in

the pictorial form in the following sections. Figure 4-6indicates that majority of

the tourists are first time visitors to destination Puducherry and staying in

Alternative Accommodation establishments. About a quarters of the guests have

visited more than twice to Puducherry and preferred alternative Accommodation

for stay.

Figure 4-7 shows the purpose of visit of the travellers to Puducherry. A vast

majority of the tourists have come here for spending their holidays. Apart from

this, tourists visited Puducherry for purposes such as yoga, meditation and other

wellness-related purposes.

65%

10%

25%25%

Figure 4-6. Visitor Status

First visit Second visit More than two visits

Figure 4-8 depict

in the Alternative Accommodation

the age group of 20 to 29 years.

of visitors. About a quarter of the visitors fall in the

years. These data are confined to the

the traditional and other type of

staying in Accommodation

purpose to Puducherry. This

Business

Medical tourism

95

depicts the age group of the visitors to Puducherry

Accommodation sector. About 67 per cent of the

the age group of 20 to 29 years. Destination Puducherry attracts a young segment

of visitors. About a quarter of the visitors fall in the age group between 3

are confined to the Alternative Accommodation

the traditional and other type of Accommodations. Since the majority of the

Accommodation sector are youngsters, they have come on holiday

cherry. This is supported by the findings in Figure 4

Holiday Pilgirimage/Spiritual

Medical tourism Welness tourism(Yoga) Leisure(fun)

Figure 4-7. Purpose of Visit

Puducherry and staying

of the visitors are in

Destination Puducherry attracts a young segment

between 30 and 49

Accommodation sector and not

s. Since the majority of the guests

sector are youngsters, they have come on holiday

is supported by the findings in Figure 4-7.

Pilgirimage/Spiritual

Figure 4-9 shows the

Accommodation. There are almost equal number of

college degree, post-graduate (masters) degree and

doctors and engineers). This shows that a tourist segment

qualification is readily staying in

its own reasons, which will be discussed later.

Figure 4-10 dep

Alternative Accommodation

10%

20-29 years

Figure 4

96

shows the educational level of the guests staying in

. There are almost equal number of guests with

graduate (masters) degree and professional degrees (such as

doctors and engineers). This shows that a tourist segment with higher education

readily staying in Alternative Accommodation establishments

its own reasons, which will be discussed later.

depicts the employment status of the tourists

Accommodation. More than a half of the respondents are

67%

10%

18%5%

Figure 4-8. Age Group of Visitors

29 years 30-39years 40-49years 50-59years

4%

31%

33%

32%

Figure 4-9. Education Level of Guests

S.S.L.C/H.Sc U.G P.G Professionals

staying in Alternative

with under-graduate

degrees (such as

with higher education

establishments for

tourists staying in

are businessmen

97

(such as entrepreneurs). This seems to indicate a preference from this niche

segment of tourists. Incidentally, people from other vocations also preferred to

stay in the Alternative Accommodation establishments.

Figure 4-11 shows the income level of the guests staying Alternative

Accommodation establishments. Compare to guests with lower income level, the

percentage of guests with moderately higher income level are more, as can be

inferred from the figure.

Government

21%

Private

21%

Business

54%

Others

4%

Figure 4-10. Employment Status of Guests

Less than

3,00,000

4%

3,00,001 to

5,00,000

32%

5,00,001 to

7,00,000

49%

7,00,001 and

above

15%

Figure 4-11. Income Level of Guests

Figure 4-12 shows the people who are accompanying the

Puducherry. The study found that a vast

(about 81 per cent), followed by solo travellers

travelled with families.

Figure 4-13 depicts the likely length of

Accommodation establishments

stay for about three nights and four days, followed by

opined to stay for about two nights and three nights. A

guests preferred to stay for longer lengths in the

sector.

Figure 4

Alone

98

shows the people who are accompanying the

uducherry. The study found that a vast majority of the people travel with friends

per cent), followed by solo travellers (about 11 per cent

depicts the likely length of stay by the guests

establishments. About 57 per cent of guests show

stay for about three nights and four days, followed by about 40

opined to stay for about two nights and three nights. A very small percentage of

preferred to stay for longer lengths in the Alternative Accommodation

11%

81%

6%

2%

Figure 4-12. People Travelling with the Guests

Friends Worker/Business partner Family/Relatives

shows the people who are accompanying the guests to

majority of the people travel with friends

per cent). Very few

guests in Alternative

showed intension to

40 per cent who

small percentage of

Accommodation

Family/Relatives

Figure 4-14 show

about 39 per cent of the

approximately below USD40 per night)

paying between INR3001

its own sense. Alternative

establishments that make them impressive abodes for the tourists visiting

Puducherry.

Figure 4

2N3days

3001 to 4000

32%

4001 and above

99

shows the accommodation budget of the guests

of the guests falls in the range INR1001-2000

approximately below USD40 per night). About 32 per cent of the

3001-4000 (USD40-60). This information is quite unique in

Alternative Accommodation with this kind of tariff provides various

that make them impressive abodes for the tourists visiting

40%

57%

3%

Figure 4-13. Likely length of stay by the Guests

2N3days 3N4days more than 4nights days

1001 to 2000

39%

2001 to 3000

17%

3001 to 4000

32%

4001 and above

12%

Figure 4-14. Accommodation budget

s. The budget of

2000 (which is

of the guests are

is quite unique in

provides various

that make them impressive abodes for the tourists visiting

100

Figure 4-15 shows the source of information regarding Alternative

Accommodation sector in Puducherry union territory. This is crucial because they

are small or medium -sized tourism enterprises with low or no advertising budget.

About 42 per cent of the guests came to know about specific Alternative

Accommodation establishments through print media sources such as promotional

literature, coverage in travel magazines and directories. Online sources such as

websites, online directories and forums accounted for about 40 per cent of the

guests. About 17 per cent of the guests were referred by their friends to the

Alternative Accommodation establishments. The contribution from online sources

and print media as sources of awareness about Alternative Accommodation is

more compared to other sources.

The percentage of guests who established pre-trip contact with an Alternative

Accommodation establishment is about 58. They used email, telephone and

website contact forms to establish contact.

17%

40%

42%

1%

Figure 4-15. Sources of Information regarding Alternative

Accommodation

Friends Websites Magazines Others

101

4.5.2 Inter-relationships between characteristics

This section provides the findings of the tests of association between the

profile characteristics of the guests and general experience of the guest (in terms

of variables of interest such as factors of influence and satisfaction level).The

following hypothesis was formulated for testing:

H5: The experience of the Guest differs based on profile characteristics

Table 4-13 shows the association between profile characteristics (such as

demographic and travel characteristics) and factors that influenced the decision to

choose Alternative Accommodation for stay. The table revealed that there was a

significant association between the factors and some of the demographic

characteristics, namely employment status (χ² = 14.717; p>.023), income (χ² =

22.503; p>.000), Accommodation budget (χ² = 43.746; p>.000) and establishing

pre-trip contact (χ² = 18.134; p>.000). Apart from the demographic and travel

characteristics mentioned, other characteristics did not differ significantly for the

factors that influenced decision of the guests in choosing Alternative

Accommodation. With reference to the above mentioned profile characteristics,

Hypothesis-5 can be accepted and not for other characteristics.

Table 4-13. Association between profile characteristics and

factors that influenced decision to choose Alternative Accommodation

Profile Characteristics Chi square P value

Visit status 6.401 .171(NS)

Main purpose of visiting Puducherry 18.166 .052(NS)

Age group 7.509 .276(NS)

Educational level 10.164 .118(NS)

Current employment status 14.717 .023(S)

Annual Family income group 22.503 .001(S)

Who are you travelling with 6.759 .344(NS)

102

Likely length of stay 5.670 .225(NS)

Likely budget for Accommodation per day 43.746 .000(S)

Source of awareness about this alternative

Accommodation facility

4.608 .595(NS)

Pre-trip contact established with this


18.134 .000(S)


Table 4-14 shows the association between profile characteristics (such as

demographic and travel characteristics) and satisfaction levels of Guests in

Alternative Accommodation sector. The table revealed that there was a significant

association between the satisfaction level and some of the demographic

characteristics, namely visit status (χ² = 18.020; p>.000), purpose of visit (χ² =

4.823; p>.000), age (χ² = 19.903; p>.019), family income (χ² = 18.024; p>.035),

person-travelling-with(χ² = 1.055; p>.000), Accommodation budget(χ² = 23.050;

p>.006), source of awareness (χ² = 83.682; p>.000) and establishing pre-trip

contact (χ² = 20.827; p>.000). The demographic and travel characteristics

mentioned above have contributed towards the significant association with

satisfaction level of guests staying in Alternative Accommodation establishments.

Hence, Hypothesis 5 is accepted specifically for the above mentioned

characteristics only.

Table 4-14 Association between profile characteristics and

Satisfaction levels of Guests in alternative Accommodation sector

Profile Characteristics Chi square P value

Visit status 18.020 .006(S)

Main purpose of visiting Puducherry 4.823 .000(S)

Age group 19.903 .019(S)

Educational level 13.685 .134(NS)

103

Current employment status 14.940 .093(NS)

Annual Family income group 18.024 .035(S)

Who are you travelling with 1.055 .000(S)

Likely length of stay 4.640 .591(NS)

Likely budget for Accommodation per day 23.050 .006(S)

Source of awareness about this alternative


83.682 .000(S)

Pre-trip contact established with this


20.827 .000(S)


The above analyses showed that the experience of the Guest differs based

on a few demographic characteristics. Hence, fifth hypothesis was accepted for

some of the aspects of the demographic characteristics of guests and the

experience of guests, and not for all the characteristics. Therefore, in the light of

the above analyses, hypothesis five was accepted for a few demographic

characteristics and not for all in general.

4.6 Objective 5: Factors of influence in choosing Alternative Accommodation

A sample of 253 guests at various Alternative Accommodation

establishments in the union territory of Puducherry was surveyed to determine the

factors of influence in choosing Alternative Accommodation. The list of perceived

factors of influence was compiled after a review of literature and from the value

proposition offered by Alternative Accommodation as expressed by the

Hosts/Managers.

To identify the factors that serve as influencers, a factor analysis was used.

From an exhaustive list of items generated from literature, a list of 20 items

104

relevant to the context under consideration was drawn. The chosen items are as

follows accompanied by a brief description:

1. More value for money than hotels – Alternative Accommodation provides a

better value for the money the guests spend on accommodation at a

destination. In a popular tourist destination, the traditional accommodation

in hotels is priced higher than Alternative Accommodation.

2. Gives an authentic destination experience – Staying at an Alternative

Accommodation establishment gives an authentic experience of the

destination. Since these establishments are owned and managed by the local

people, they can represent genuine destination characteristics.

3. Wanted my own space and avoid the crowd - Alternative Accommodation

establishments have small capacity in terms of number of guests who can

hosted at a time, but they offer more space per guest. As a result, the guests

may perceive privacy and comfort.

4. Readily available – Traditional Accommodation providers such as Hotels

use Information and Communication Technologies such as integrated

reservation/distribution systems. Hence pre-booking especially during the

peak season is common. On the other hand, Alternative Accommodation

establishments are less frequented, less known and with a ready supply.

5. Wanted a change – For tourists seeking a change from their routine hotel

accommodation during a tour, Alternative Accommodation establishments

provide a welcome break from the routine and the conventional.

105

6. Offers interaction with locals - Alternative Accommodation establishments,

particularly the commercial home set up such as Bed and Breakfast have

the concept of host-and-guest. This creates opportunities for interaction

with local people at a destination.

7. Flexibility during stay - Alternative Accommodation establishments

provide flexibility in their service offering. Since their supply is limited,

flexibility is not a constraint. A cordial relationship with the host can be

established as a result of contact before the trip and negotiation concerning

the guest’s needs and requirements.

8. Not exorbitantly priced like hotels– With the advent of price transparency

from online travel intermediaries, tourists are aware of hotel price ranges.

Comparatively, this price transparency does not exist in the case of

Alternative Accommodation establishments. Moreover, for price-sensitive

tourists, they hold an appeal being priced less than the hotels, except in the

case of certain boutique accommodation wherein the guest profile is

different and price is a non-issue.

9. Like the homely atmosphere – Inherent to the product characteristic, is the

home-like atmosphere in an Alternative Accommodation establishment.

The host-guest concept adds to this ‘homely’ feeling. Common access to

certain areas apart from the rooms also contributes to this.

10. Feels safer (in terms of hygiene) - Alternative Accommodation

establishments provide a home-like atmosphere and ambience wherein the

guests do not expect to come across hygiene issues that prevail in crowded

hotels

106

11. Feels secure (in terms of security issues)– Alternative Accommodation

establishments are commonly located far away from the commercial,

crime-prone areas and in more residential areas of the destination town/city.

This improves the perception of safety for the guest.

12. Feels tastier (in terms of trying out local cuisine) – Alternative

Accommodation establishments, especially those under the Commercial

Homes category provide catering by the host and a taste of local cuisine.

This leads to a perception of home-made food quality and authenticity of

cuisine.

13. Did not have a choice and just settled for this – For tourists/guests arriving

on a destination without prior reservation for accommodation, Alternative

Accommodation establishments provide a choice which they may gladly

consider under the given circumstances.

14. Friends recommendation – Owing to the unique characteristic of

Alternative Accommodation establishments, a satisfied guest may be more

inclined to recommend to his/her circle of influence through online or

offline means.

15. Online reviews – With the prevalence of travel-related consumer-generated

content on popular websites such as TripAdvisor, guests are inclined to post

their reviews on such forums for the benefit of like-minded and similar-

profiles travellers

107

16. Best way to experience local culture – By offering interaction opportunities

with the locals, host-guest relationship and genuine representation of

destination characteristics – be it in design, architecture or cuisine,

Alternative Accommodation establishments provide avenue for a cultural

immersion.

17. Just wanted to try something different – For the seasoned traveller,

Alternative Accommodation establishments provide a refreshingly different

option at a destination.

18. Personalized hospitality from the Host – Since there is more guest-host

interaction, negotiation with respect to providing for the guest’s

personalized requirements are possible and such provisions are feasible.

19. Bad experience with hotels in the past – For seasoned travellers, their past

experience with traditional accommodation at hotels may drive them to try

Alternative Accommodation to minimize their perceived risks at an

accommodation facility.

20. Local environment/ambience - Alternative Accommodation establishments

are owned and managed by locals in the non-commercial areas of the

destination. This nature facilitates the guests to experience the local

environment better.

Factor analysis (using principal component analysis) was used to identify the

factors of influence in choosing alternative accommodation. Data collected from the

sample of 253 respondents who had rated their agreement/disagreement with the 20

stated variables in the questionnaire was subject to Factor analysis. The 20 items were

108

factor analyzed using Principal Component analysis after ascertaining the

appropriateness of Factor analysis (Malhotra, 2005) using the Bartlett’s test of

sphericity (significant at 0.05 level) and Kaiser-Meyer-Olkin (KMO) statistic

(>0.6). Factors with eigen value greater than 1 and a loading of 0.5 and above

were then rotated using varimax rotation with Kaiser normalization.

In order to summarize the information contained in the original variables, a

smaller number of factors should be extracted. In this research, approaches based

on eigen values and Scree plot are used to determine the number of factors. Based

on the eigen value criterion (that is, eigen value > 1), six factors emerged. To

confirm the number of factors, a scree plot was drawn. Finally, six factors were

retained explaining 80.16 per cent of the total variance. To ensure that the

variables for each of the factors were internally related, their Cronbach’s

coefficient alpha were measured and found to have acceptable internal consistency

reliabilities, that is, greater than 0.6 (Nunnally, 1967). The summary result of the

factor analysis of all the elements and sub-elements is presented in Table 4-15 and

the detailed statistical outputs are shown in Appendix III-B. The factor analysis

yielded six dimensions that were labelled as: local touch, real experience, flexible

stay, hygiene, value for money and positive word-of-mouth.

Table 4-15. Summary results of factor analysis

FACTORS VARIABLES VARIANCE

EXPLAINED (%)

F1: Local

Touch

(N=6)

Interaction with locals 23.42

Experience local culture

Feels tastier (in terms of local cuisine)

Wanted a change

Personalized hospitality

Secure (in terms of security issues)

F2: Real

Experience

Readily available 18.27

Authenticity of destination experience

109

(N=3) Bad experience in the past

F3: Flexible

Stay

(N=3)

Own space 16.11

Flexibility during stay

Something different

F4: Hygiene

(N=2)

Safe (in terms of hygiene) 8.14

Environment/ambience

F5: Value for

Money

(N=3)

Value for money than hotels 7.33

Did not have a choice

Not exorbitantly priced

F6: Positive

Word-of-Mouth

(N=3)

Friends recommendation 6.90

homely atmosphere (Host-Guest interaction)

Online reviews

• The local touch factor is the first factor identified through factor analysis

and this factor includes six items, namely interaction with locals,

experience local culture, feels tastier (in terms of trying local cuisine),

wanted a change, personalized hospitality and a secure feeling. This factor

accounts for 23.42 per cent variance. It highlights the importance of

providing a local touch by highlighting and representing the destination’s

unique characteristics.

• The real experience factor consists of 3 items, namely ready availability,

authenticity of the destination experience and bad past experiences with hotels.

This factor accounts for 18.47 per cent variance. It highlights the need to

provide genuine hospitality characterized by readiness, authenticity and

points of differences when compared to hotels.

• The flexible stay factor comprises of items, namely own space, flexibility

and something different. This factor accounts for 16.11 per cent variance. It

highlights the flexibility desired by the guests at Alternative

Accommodation establishments in terms of privacy, suppleness in their

110

stated requirements and desire to try something different from the usual

accommodation establishments available to tourists.

• The hygiene factor contains 2 items, namely safe (in terms of hygiene) and

environment/ambience. This factor accounts for 8.14 per cent variance. It

highlights the expectation of guests at Alternative Accommodation

establishments which provide a home-like atmosphere wherein the guests

feel safe and protected from health hazards.

• The Value for money factors made up of three items, namely value for

money when compared to hotels, affordability and availability as an option.

This factor accounts for 7.33 per cent variance. It stresses the need to match

the perceived value with the experienced value so that the Value for money

proposition holds good for this category of accommodation.

• The positive word-of-mouth factor included three items namely Friends

recommendation, homely atmosphere (referring to Host-Guest interaction and

communication) and online reviews, together accounting for 6.90 per cent

variance. It highlights the importance of word of mouth and its ability to

influence guest’s decision to choose Alternative Accommodation at a

destination.

Reliability was evaluated by means of tests of internal consistency. The

reliability coefficient (referred to as Cronbach’s coefficient alpha) varies from 0 to

l and a value of 0.6 or less generally indicates unsatisfactory internal consistency.

To ensure that the variables for each of the four factors were internally related,

their Cronbach’s coefficient alpha were measured and found to have acceptable

internal consistency reliabilities (that is, >0.6). Factor analysis had thus yielded six

factors from 20 items that are able to explain 80.16 per cent of the variance.

111

4.7 Chapter conclusion

This chapter presented the findings of the study concerning Alternative

Accommodation establishments and their guests. The important findings are

summarized below.

The present study tested five hypotheses that were formulated. The

hypotheses in this study are accepted for some of the factors and not for others.

The first hypothesis which stated that there would be a difference in the marketing

mix of the Alternative Accommodation based on their demographic characteristics

was tested at length separately for demographic variables of Alternative

Accommodation, like years in business, location of Accommodation, and types of

Accommodation. There were seven marketing mix factors (7Ps) and altogether

there were 30 items describing those factors. The study found significant

association for some of the aspects of marketing mix with some of the

demographic variables of alternative Accommodation. Similarly, the second

hypothesis was aimed at finding out the association between the marketing mix of

the Alternative Accommodation and its operational characteristics. The

operational characteristics chosen in the study were capacity (in terms of number

of rooms), number of staff and online presence. Again, the hypothesis was

accepted on some of the aspects of marketing mix and not for all.

The fourth hypothesis was accepted as the overall expectation and

experience of the guests at Alternative Accommodation are related to each other.

The expectation-experience matrix highlighted areas for Alternative

Accommodation establishments to concentrate on. The fifth hypothesis stated that

variables like factors of influence and satisfaction levels of the guests differed

based on their profile characteristics. This was true for some of their demographic

and travel characteristics, and guests’ experience. Therefore, the fifth hypothesis

was true for certain profile characteristics and not for all in general.

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