Report on SERVQUAL of Vugol Holidays.

Report on SERVQUAL of Vugol Holidays

(a travel agency)

SERVQUAL report of Vugol Holidays (a travel agency)

Prepared for

Mirza Md. Didarul Alam

Assistant Professor

School Of Business

Prepared By

Name ID Serial No.Hasan Al Banna 111 111 100 06

Thayef Ahmed Sunny 111 121 031 24Aminul Islam Sohag 111 121 191Fatema Begum Rimi 111 121 239 29

UNITED INTERNATIONAL UNIVERSITY

April 29, 2013

Letter of Transmittal

May 05, 2015

Mirza Md Didarul Alam

Assistant Professor

United International University

House#80, Road #8/A

Dhanmondi, Dhaka

Dear Sir:

Subject: Request to Accept the Report

It has been a great pleasure for us to submit the report “SERVQUAL of Vugol Holidays (a travel agency)”. We have prepared this report as a requirement of the course “Service Marketing” (course code: MKT - 4120)

We have worked hard to gather all the valid information for preparing the report perfectly. In this report we have tried to show the service quality of Vugol Holidays. We have learnt a lot while preparing this report which would help us in our future life.

We will be obliged, if you kindly accept this report. We are prepared and we will be glad to answer questions, if you have any.

Sincerely,

Hasan Al Banna (111 111 100)

On behalf of the group

Section: C

Department: BBA

Semester: Spring-2015

Acknowledgement

We would like to thank our course instructor Mirza Md. Didarul Alam for giving us proper guidelines and suggestions for preparing this report. We have tried our level best to complete the report as our instructor has instructed. We would like to thank United International University for providing us the space where we have prepared our report and also for the computer lab which helped us to browse internet and gather information.

We would like to thank specially our Almighty Allah, for providing us with the patience and knowledge to prepare the report and also our family members and friends who supported throughout the whole report.

Executive Summary

The report starts with the introduction of VUGOL HOLIDAYS its background with history of the agency and with the history of the travel agency sector of Bangladesh.. VUGOL HOLIDAYS started its operation in Bangladesh in 2014. As we have done this report of travel agency sector, we have also put some information of the travel agency sector in Bangladesh.

Then we have introduced VUGOL HOLIDAYS’s products, services and its operations. The travel agency sector in Bangladesh is creating a good help in the economy of the country and through this, many educated person are getting good jobs. No matter what degree one achieves, he/she can definitely do a job in any agency. So travel agency sector has decreased the unemployment rate of Bangladesh.

The report ends with the recommendation and conclusion part where we have suggested VUGOL HOLIDAYS to do some social work and serve the society to get to the hearts of Bangladeshi people.

Table of ContentsExecutive Summary

CHAPTER 1

1.1 Introduction

1.2 Background of the study

1.3 Methodology of the study

1.4 Objective of the study

CHAPTER 2

2.1 Brief description about the Company:

2.2 Mission & Vision

CHAPTER 3

LITERATURE REVIEW

CHAPTER 4

4.1 T-Test

4.2 Gap Analysis

4.3 Correlation between the Dimensions

4.4 Regression Analysis

CHAPTER 5

Analysis

References

List of Figures

FIGURE 1.1 T-Test...............................................................................................13-15

FIGURE 1.2 Gap Analysis.........................................................................................15

FIGURE 1.3 Co-relation between the Dimensions....................................................16

FIGURE 1.4 Regression Analysis..............................................................................17

CHAPTER 1

1.1 IntroductionThis introduction presents and overviews the focus of this research as well as why this research is will investigate and study in terms of service quality of travel agency. This part is therefore separated into three major sub-topics which represent the background of study, service quality of travel agency and significant of study. These main five components is really a key for measure the service quality of the travel agency named Vugol Holidays.

1.2 Background of the studySERVQUAL scale instrument has been use widely to measure in general service industry, mainly in travel agency and its industry. The target place to test SERVQUAL is in Bangladesh. In Bangladesh, several travel agencies got broader development and represent an important intermediary within the travel industry. The services of travel agent include a sales outlet of air carriers, hotels, car rental firms, major attractions, event organizers and other travel suppliers; in addition providing travel information, organizing tour packages, serving as middle men for hotel booking, issuing air tickets and arranging car rental services (Sharpley, Travel and Tourism, 2006).

Recent changes within the travel industry of Bangladesh have resulted in travel agency business becoming increasingly competitive among the travel agencies. Due to the fact that the shift is toward information technology, the travel agent’s traditional roles as an intermediary has come under severe pressure and is currently challenged to its existence. In addition, travel agents have faced difficult time in recent years due to the increasing customer’s demands and internal competitions are our research scope which we give questionnaire to their customers who experienced with the service the particular travel agency provide because those travel agencies got high customers demand and have lot of competitive advantages. The user based view (customer perspective) of quality has been appealing in trying to define quality in services. Both user based view of quality and service quality connected each other because of the nature of service delivery itself. First the increase of intangibility of service delivery mean that people or customer cannot touch services but only can feel, remember in their minds. This measuring the quality of services delivery as perception of the user is particular need for assessing the quality of services (Schneider & White, 2004). The user based view has therefore become the main approach to assessing quality in the services literature. In travel agency service quality is must and with the high service quality of travel agency can improve their market share and profitability (Todd & Rice, 2005).However service quality level of existing services must be measured on customer perspective and expectation by reliable and valid measurement tool.

Several studies have been conducted in an effort to clarify customer expectation and preconception of product performance affect to clarify how customer expectation and preconception of product performance affect the subsequent level of customer satisfaction or dissatisfaction with actual performance (Kandampully, 2007)

SERVQUAL is instruments that develop by Parasuraman (1988) to measure service quality in service organization. According to SERVQUAL service can be measure by identifying gap between customer expectation toward the services and their perception on service performance that given by services provider. If expectation met or exceeded service quality will perceived to be satisfactory. This SERVQUAL is initially based on ten dimension of service quality (Parasuraman, 1988)

These dimension were further collapsed in five generic dimensions, they were tangibles, reliability, responsive, assurance and empathy (Parasuraman, 1988). Basically SERVQUAL is more focus on customer expectation. Customer expectation is belief on service delivery that serves as standard of reference point against which performance is judged. Knowing what the customer expects is the first and possibly most critical step in delivering quality service. Being wrong about what customer want and need can be fatal by losing a customer loyalty and cant surviving in a fiercely competitive market. (Zeithaml, Bitner, & Gremler, 2009).

1.3 Methodology of the studyTypes and sources of data:

The type of information is mainly the secondary data. The primary sources of the data are different websites and also the official website of Vugol Holidays (http://Vugol.com.bd/ ). We also gathered information from newspapers and journals. We have worked hard to provide the latest news.

Data collection plan:

We have collected the data about SERVQUAL of Vugol Holidays by conducting a survey. Our target customers were different people who travelled through Vugol Holidays. Our sample size was 50. We designed a simple questioner.

Analysis plan:

We have analyzed the survey results by doing T-test using SPSS software.

1.4 Objective of the stydy Broad objective : SERVQUAL report of Vugol Holidays (a travel agency)

Specific objective:

➢ To measure the customer expectation of the study

➢ To measure the customer perception of the study➢ To find out the gap between customer expectation and customer perception➢ To measure the correlation among the dimension of the SERVQUAL model➢ To find out the relationship among the dimensions and the customer

satisfaction (RA)➢ To provide service guideline/suggestion/recommendation

CHAPTER 2

2.1 Brief description about the Company:

Management Team

An interesting feature of the management team of Vugol Holidays is their passion to travel. All the team members have already finished discovering most parts of Bangladesh, the most beautiful country of the world.

The Management of Vugol Holidays is advised by our honourable advisor Md. Behroj Jalil Assistant Professor and Deputy Director, BBA Program (SoBE)

The Working Team Is Leaded by Mohammad Touhid Irfan with the Supporting of Jubayer Hossain and Hosney Tonmoy Sunny at the major part.

Mohammad Touhid Irfan

Managing Partner & CEO

M: 01793 007 482

E: [email protected]

Jubayer Hossain

Managing Partner & Head of Business Development

M: 01793 007 481


Hosney Tonmoy Sunny

Managing Partner & Head of Operations

M: 01793 007 483


Md. Imran Hossain

In-Charge, Online Marketing


Rabeya Islam

Senior Executive, Client Service


Parisa Parveen Poroma

Senior Executive, Finance & Accounts


Farzana Rahman

In-Charge, Vugol Store


All the team members are very much dedicated and they try their best to satisfy the clients and make their trip a memorable one.

The First Project:

‘A Team’ organized it’s maiden program “First Year Celebration of Sugandha Campus” in 24 February of 2011.

It was a daylong program with the participation of 230 students in the auditorium of the campus. It was a great success and the starting path of the ‘A Team’. The program was guided by the “Gurus” of ‘A Team’. The event got a lot of praise from UIU authorities.

Cox’s Bazar & St. Martin’s Island Trip in 2013

This trip was a huge success. Total number of participants were 90 including faculties and their families. Managing a large group was a cumbersome task but we did it in grand style. It was an awesome, fun-filled trip for all. The Gurus helped to manage the whole trip by direct supervision and with ideas.

After completing the event, one of our Gurus Mr. Mohammad Behroz Jalil named the team as “The A Team”. We then decided that we are going to move into tourism business and started to plan. This trip marked the conceptual birth of Vugol Holidays.

Darjeeling and Kalimpong Tour 2014

For the first time in UIU’s history a group of students travelled outside Bangladesh. A total of 54 participants joined the trip and the experience and enjoyment they got

were simply out of this world. Most participants later told us that it was the most memorable trip of their life. This trip gave us more confidence to offer trips outside of Bangladesh as well.

After the event we began to think about giving Vugol a professional structure. In the long span of four years journey many of the ‘A Team’ members had become busy in their professional and personal life. They could no longer manage time and effort on a regular basis. On the other hand few new members began to work with The ‘A Team’.

Finally in September 2014 Vugol Holidays was formed by three people:

Jubayer Hossain

Hosney Tonmoy Sunny

Mohammad Touhid Irfan

Mohammad Touhid Irfan was an Assistant Registrar of United International University. He has a passion for travel and event management. He is the CEO of Vugol Holidays.

Mohammad Behroz Jalil is the Honorary Advisor of Vugol Holidays.

A ‘Trade License’ was issued by the appropriate Government authority in favor of Vugol Holidays to operate in the Tourism sector. In February 2015 Vugol Holidays took rent of its office space in ‘Haque Chamber’ at Panthapath, Dhaka and started its official journey.

2.2 Mission & Vision

Mission:

Vugol Holidays want to provide you a truly awesome and unforgettable holiday experience. We’ll make sure that you will want to be on a Vugol Holiday trip again and again.

Vision:

To become one of the top ten tour operators in Bangladesh.

CHAPTER 3

LITERATURE REVIEWProblem statement two discuss approach and retrieval achieved of earlier research from either within and overseas study that is being carried out. Besides that, problem of study, objective of the study and research questions also would be performed in this end of the chapter. In this chapter two bodies of literature are reviewed as background for the two empirical studies presented in later chapters. The literature on travel agency and its industry is explored first. This is followed by a discussion of the service quality and SERVQUAL. The goal is to integrate these two domains to examine what determines to measuring service quality of travel agency. Finally, the literature on effort, the focal concept of this project is reviewed.

Every customer has their own perspective on the travel agents around the state or country. To go further and based on the fact that customers value Bangladesh as a travel destination but only on an importance of travel agency in the satisfaction process. Furthermore due to travel agencies in Bangladesh background, much evidences founded in tours of customers especially to go to travel is grounded on high customer need. Finally from above reasons, to understand service quality issues as well as understand customer perspective has intensified as a key success factor for improving service quality. Understanding exactly what customers expect and what customer’s perceived are the most crucial step in defining and delivering high-quality service (Parasuraman,1988). Travel agencies in Bangladesh are recognizes the quality as the business objective. The overall aim of this thesis is thus to focus on quality in a service company as a case of travel agency in Bangladesh. The problem statement is established in this research in terms of “measuring service quality of travel agency in Bangladesh” from understanding of customers‟ perspective. The better understanding of these phenomenon in tourism service’s encounter as well as company itself are particularly important and will permit the industry to better perform in high competitive market.

The integration of technology into our daily lives is transforming consumers' behavior and social practices. The travel industry has seen this impact the business. Once, the travel agent was the mediator between the consumer and travel suppliers such as airlines and hotels, the travel consumer can now access these services directly from a single laptop or mobile device or any other alternative media mass and electronic source. The way the game is played has changed.

Each customer perspective toward service quality toward travel agencies is different, is depend on how the travel agents serve it customer base on facilities and customer service to please their customer. Basically in SERVQUAL there got 5 dimensions to measure the service quality in travel agencies in Bangladesh they were tangible, assurance, responsive, empathy and reliability. In this study we will try to prove

either the SERVQUAL can be reliable and valid tool to measure service quality in hotel industry. Therefore, travel agents must understand what factor causes customer to revisit and buy again then travel agents can act to build or enhanced customer satisfaction. In additions, here want to study that to what extent customers satisfaction had been practice in Bangladesh travel industry and how they measuring service quality through customers perceptions, expectation.

CHAPTER 4

4.1 T-TestGroup Statistics

RESULT

N MeanStd.

DeviationStd. Error

MeanStatus

The agency provides services at the time it

promises

1 50 4.3400 .62629 .08857 Significant

2 50 3.9800 .76904 .10876 Significant

The agency has availability of sufficient

staffs

1 50 4.2600 .92162 .13034 Significant

2 50 3.8000 .98974 .13997 Significant

Employees have the ability to inspire trust and

confidence in you

1 50 4.3600 .77618 .10977 Significant

2 50 3.6400 .96384 .13631 Significant

The agency staffs have the reliability in handling

the your problem and need

1 50 4.2400 .91607 .12955 Significant

2 50 3.7600 .95959 .13571 Significant

The procedures such for admissions are faster and

easier

1 50 4.1200 .91785 .12980 Significant

2 50 3.1600 .99714 .14102 Significant

The agency providing a prompt service without an

appointment

1 50 4.4600 .86213 .12192 Significant

2 50 4.0000 .92582 .13093 Significant

You are given adequate information about your needed information on

travelling area

1 50 3.9400 .91272 .12908 Significant

2 50 3.4800 .86284 .12202 Significant

The employees are sympathetic and also

reassuring

1 50 4.5400 .73429 .10384 Significant

2 50 3.9800 1.02000 .14425 Significant

The agency providing 1 50 4.0600 .97750 .13824 Significant

emphasized travel packages and prices

2 50 3.4600 1.14660 .16215 Significant

The staffs perform the service right on the time

1 50 4.3600 .63116 .08926 Significant2 50 3.8400 .86567 .12242 Significant

The staffs are ensuring the maintenance of client

confidentiality

1 50 4.3800 1.02798 .14538 Significant

2 50 4.4600 .83812 .11853 Significant

You are feel confidence and trust in the

information given by the agent

1 50 3.9000 1.01519 .14357 Significant

2 50 3.7000 .93131 .13171 Significant

You feel safe in interacting with

employees

1 50 4.0800 .85332 .12068 Significant

2 50 3.3200 1.01900 .14411 Significant

The staffs are never hesitating to give personal attention

1 50 4.2400 .77090 .10902 Significant

2 50 3.7400 .80331 .11361 Significant

The staffs are consistently courteous


The staffs respond to requests without any

excuses

1 50 3.9800 .93656 .13245 Significant

2 50 3.3800 1.04764 .14816 Significant

The staffs have your best interest in heart

1 50 4.2200 .86402 .12219 Significant2 50 3.3800 1.17612 .16633 Significant

The staffs understand your specific needs


The agency staffs such as receptionist are

disciplined

1 50 4.4200 .75835 .10725 Significant

2 50 3.9200 1.02698 .14524 Significant

The materials and brochures are visually

appealing in the agency

1 50 4.3800 .60238 .08519 Significant

2 50 3.7800 .76372 .10801 Significant

The materials and brochures are visually

appealing in the agency

1 50 4.1000 .93131 .13171 Significant

2 50 3.8200 .87342 .12352 Significant

The physical facilities are visually attractive &

comfortable

1 50 4.3200 .68333 .09664 Significant

2 50 3.9400 .91272 .12908 Significant

Overall Satisfaction 1 50 . . . Significant

2 50 4.0600 .73983 .10463 Significant

GENDER1 8 1.2500 .46291 .16366 Significant2 42 1.3095 .46790 .07220 Significant

AGE1 8 2.2500 .46291 .16366 Significant2 42 2.0714 .26066 .04022 Significant

EDUCATION 1 8 1.5000 .92582 .32733 Significant2 42 1.3571 .61768 .09531 Significant

OCCUPATION1 8 2.5000 .92582 .32733 Significant2 42 2.1429 .60773 .09378 Significant

FIGURE 1.1 T-Test

4.2 Gap Analysis

Serial No.

DimensionPerception

Expectation

Gap

01 RELIABILITY 3.668 4.264-0.596

02RESPONSIVENESS

3.73 4.25 -0.52

03 ASSURANCE 3.83 4.18 -0.35

04 EMPATHY 3.612 4.156-0.544

05 TANGIBILITY 3.865 4.305 -0.44

FIGURE 1.2 Gap Analysis

In here we can see, the most gap is in the reliability dimension which is -0.596. The second most gap is in the empathy dimension which is -0.544. The third most gap is in the responsiveness dimension that is -0.52. The fourth most gap is in the tangibility dimension which is -0.44. And the dimension with the least gap is assurance and the gap is -0.35

4.3 Co-relation between the Dimensions

Rel Res Ass Emp Tan

Pearson Correlation

1 .628** .696** .309* .345*

Sig. (2-tailed) .000 .000 .029 .014

N 50 50 50 50 50

Pearson Correlation

.628** 1 .793** .252 .093

Sig. (2-tailed) .000 .000 .077 .520

N 50 50 50 50 50

Pearson Correlation

.696** .793** 1 .454** .318*

Sig. (2-tailed) .000 .000 .001 .024

N 50 50 50 50 50

Pearson Correlation

.309* .252 .454** 1 .408**

Sig. (2-tailed) .029 .077 .001 .003

N 50 50 50 50 50

Pearson Correlation

.345* .093 .318* .408** 1

Sig. (2-tailed) .014 .520 .024 .003

N 50 50 50 50 50

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

FIGURE 1.3 Co-relation between the Dimensions

4.4 Regression Analysis

Coefficientsa

Model

Unstandardized CoefficientsStandardized Coefficients t Sig.

B Std. Error Beta

1 (Constant) 1.234 .665 1.854 .070

Rel .431 .166 .420 2.598 .013

Res .095 .193 .096 .491 .626

Ass -.417 .239 -.385 -1.744 .088

Emp .029 .171 .022 .168 .868

Tan .617 .143 .561 4.302 .000

a. Dependent Variable: Overall Satisfaction

FIGURE 1.4 Regression Analysis

CHAPTER 5

AnalysisThe above regression analysis represents how the independent variables (Constant) affect the dependent variable, which is overall satisfaction. From the table it can be seen that Reliability (β = .420, 0.13) and tangibility (β = .561, .000) are the only two variable which are accepted as their significance value is lower compared to the significant level of 5% (0.05). Therefore it can be suggested that reliability and tangibility effect the overall satisfaction. The positive beta value further suggests that there is a positive relation between the independent and dependent variables. In

other words consumers who find Vugol Holidays to be reliable and tangible, those consumers will tend to have a higher level of overall satisfaction.

References1. Sharpley, Travel and Tourism, 20062. http://Vugol.com.bd/ 3. Todd & Rice, 20054. Kandampully, 20075. Parasuraman, 19886. Zeithaml, Bitner, & Gremler, 20097. Schneider & White, 2004

Report on SERVQUAL of Vugol Holidays.

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