Chapter 6 CONCLUSION 6.1 Introduction Accommodation is an integral part of a tourist's visit to a destination and the services experienced by the tourist can make the visit memorable. Given the growth in tourist arrivals, there is a need for capacity addition in terms of rooms and the types of accommodation (HVS, 2011). Subsequently, the Ministry of Tourism, Government of India has promoted the concept of Alternative Accommodation as part of its globally acclaimed Incredible India campaign to help bridge the demand-supply gap and cater to specific target segments (GOI, 2010). In this context, this study has focussed on Alternative Accommodation establishments in the Union Territory of Puducherry covering all the four constituent districts. This study considered supply and demand -side perspectives. Both hosts/managers and guests at Alternative Accommodation establishments were surveyed on a range of issues such as points of differences when compared with traditional accommodation such as hotels, factors of influence in choosing Alternative Accommodation and the satisfaction level, apart from registering the profile characteristics. This chapter presents the main findings and analytical conclusions that have been drawn from this study. The marketing implications of these findings are discussed. Studies in this area have been few and in order to fill this void, suggestions have been made for further research on this unique accommodation product. Finally, the significance of the study in highlighted. 128
6.2 Main findings of the study This was a two-part descriptive study. Part I focussed on the supply-side (host-side) marketing practices of Alternative Accommodation establishments. Part II addressed the demand-side (guest-side) perspectives such as the factors influencing the decision making of guests and their experience on service quality attributes. 6.2.1. Host-side findings and conclusions Among the types of Alternative Accommodation establishments, Guest Houses were found to be the most common in the union territory of Puducherry. They were more concentrated in the Puducherry district than the other three districts in the union territory. An overwhelming majority of them were owned rather than leased and also have been in business for less than 10 years. This indicates that they are serious players in the sector having invested in the business and keeping it operational for more than a decade. Almost most all of the surveyed establishments qualify as small and medium tourism enterprises given their capacity in terms of number of beds and number of staff employed. Majority of them did not have any sort of online presence. The association between their demographic and operational characteristics, and marketing mix elements was probed. A clear association was observed as far as physical evidence (among the 7Ps) of marketing mix was concerned with all the demographic characteristics of Alternative Accommodation sector. However there was no association between the operational characteristics and the marketing mix elements of Alternative Accommodation sector. While comparing the marketing mix between hotels and Alternative Accommodation establishments, a significant difference was observed indicating the presence of points of differences maintained by the Alternative 129
Accommodation establishments. This is to sustain the unique product attributes of Alternative Accommodation and to appeal to a niche segment of customers. 6.2.2. Guest-side findings and conclusions Based on the demographic and travel characteristics of the guests surveyed at Alternative Accommodation establishments, it may be concluded that the guest profile would be a relatively young (age 20-29 years), educated, engaged in business, earning USD10000-14000, first-time visitor to the destination on a 3-4 days holiday with friends and having first-time experience in an Alternative Accommodation establishment with friends as the primary source of information and awareness about this type of accommodation. The correlation coefficient shows that expectation and experience of guests are significantly correlated and related to each other indicating that the guests expectations from Alternative Accommodation establishments are being met. However expectation-experience mapping highlighted certain variables, such as providing modern amenities, being courteous with the guests, understanding the specific needs of the guests and paying attention to those needs as priority areas since they were rated lower in experience when compared to expectation. This finding highlights the need for customer-focus and orientation towards meeting the guests needs. The expectation-experience matrix identified the areas where these establishments need to concentrate, need not concentrate, maintain the current status and optimize on the resources. 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) indicated that an association existed between only some of their demographic and travel characteristics, and guests experience. There was a significant association for profile characteristics such as employment status, income, budget for accommodation and pre-trip contact with the factors of 130
influence in choosing Alternative Accommodation. There was a significant association between the satisfaction level and some of the profile characteristics such as visit status, purpose of visit, age, family income, traveling with whom, budget for accommodation, source of awareness and pre-trip contact. In order to identify the factors that influence the decision to choose Alternative Accommodation, a factor analysis was performance and the results yielded six dimensions that were labeled as: local touch, real experience, flexible stay, hygiene, value for money and positive word-of-mouth. The local touch dimension implied experiencing the local culture in a personalized manner. The real experience dimension referred to having an authentic experience of the culture and the portrayed image of the destination. The flexible stay dimension implied privacy and flexibility at the establishment. The hygiene dimension referred to a hygienic environment and ambience. The value for money dimension implied the affordable pricing and affordability of Alternative Accommodation establishments. Lastly, the positive word of mouth dimension highlighted the role of interactions with the hosts, recommendation from friends and online reviews in influencing a guest to choose Alternative Accommodation at a destination. 6.3 Implications for Alternative Hoteliers This study brings to light a definite opportunity to promote Alternative Accommodation in Puducherry as well other districts of the union territory. The present study has helped to understand the supply and demand sides of Alternative Accommodation sector. This understanding can be extended to other similar tourist destinations in India. An important point to be noted is the severe dearth of scientific studies pertaining to this sector. The Alternative Accommodation sector is slowly being regulated and it has to be brought under the umbrella of rules and regulations governing tourist accommodation facilities. 131
An important implication of this study is the highlighted need for training and skill development for the staff and managers/hosts of the Alternative Accommodation establishments. The study revealed low rating by guests to factors such as courtesy and conduct of the service providers. Improvements in these aspects will facelift the Alternative Accommodation sector in Puducherry. The Government therefore, should bring a regulatory control mechanism to take care of various issues that were raised in this research. This study provides several useful inputs for policy formulation on Alternative Accommodation sector. This sector can very well be utilized to eradicate poverty, unemployment and other economical problems of poor by encouraging the Self Help Groups (SHGs) to start Alternative Accommodation establishments with minimum budget. The governments can also encourage such initiatives by providing financial support and training to hone the skills needed to run such establishments. Women entrepreneurs also should be encouraged to take up such ventures. An implication for Alternative Hoteliers is to create and sustain points of differences so that Alternative Accommodation establishments are perceived and experienced differently by the guests. Another implication is to address the priority areas highlighted by the expectation-experience gap. The Alternative Hoteliers also have to consider the factors that motivate guests to consider staying at an Alternative Accommodation establishment during a holiday at a destination. 6.4 Suggestions for further research This research paves the way for a detailed study of marketing and customer experience elements in the Alternative Accommodation sector. Several aspects related to product differentiation can be explored further since this study looked at the differentiation issue predominantly from a marketing mix perspective only. A 132
comprehensive study that captures a wider range of constructs can improve upon the relevance of the prevailing findings of this study. From the experience of this study, the following suggestions/directions for further research can be made: 1. Alternative methodologies: The scale items for host and guest surveys although subjected to pilot evaluation, were developed from items and constructs reported in literature and alpha reliability was considered acceptable. Further validation using alternative research designs can lend robustness to the scale and validity to the findings. 2. Category generalization and comparison: The study may be replicated in other comparable research settings. This could either strengthen generalization or provide rich data for comparison that could be useful in formulating destination-specific marketing strategies. 3. Comparison across categories: It has to be tested whether the factors of influence in the guest s decision to stay at an Alternative Accommodation facility would indeed differ for the three categories of Alternative Accommodation, namely Guest houses, Commercial homes and Service apartments. Comparison may be made across these categories in order to facilitate better product design and appeal for niche guest segments. 4. Comparison across segments: Different tourist segments may be compared for their preference for Alternative Accommodation. Existing studies (as described in Sections 2.6.2 and 2.6.3) highlight the consumer behavior of specific segments only and hence scope for comparative studies exists. 133
5. Match with destination image: The destination chosen for this study benefits from a heritage positioning with unique attractions, and historical and socio-cultural background. Several studies (Norman, 1988, Warnick and Klar, 1991; Emerick and Emerick, 1994; Morrison et al, 1996; Upchurch, 1996; Ingram, 2002; Gunasekaran and Anandkumar, 2012) concerning Alternative Accommodation have suggested that this sector inherits and portrays local culture, thereby offering an authentic destination experience. It will be interesting to study the relationship between Destination image or type of tourism featured and the performance of Alternative Accommodation sector. 6.5 Significance of the study This research assumes significance in being a pioneering study on Alternative Accommodation in India and a relevant study carried out with an industry orientation and not academic or research orientation alone. At the conceptual level, this research has highlighted the existence of a niche accommodation product in the chosen destination, the unique value proposition it offers to guests and factors of influence that differ from that of traditional accommodation like hotels. The findings can be extended to develop a marketing model for Alternative Accommodation sector by incorporating some of the findings and practices identified in this study. At the research level, this study represents a worthy addition to the existing knowledgebase of Tourism research by filling many research gaps as discussed in Chapter 2. Drawing from previous studies, it has demonstrated the utility of analytical frameworks such as the experience-expectation matrix in Tourism research. It has compiled a useful collection of elements that represent the marketing mix construct at Alternative Accommodation. 134
At the implementation level, the findings from this study can go a long way in the design of this unique accommodation product as wells in marketing it. The guest characteristics and their factors of influence identified through this study help in describing the profile of guests and further, the marketing activities can be prioritized and streamlined to appeal and cater to this target segment. At the policy level, this study can aid the Destination Marketing Organization and Regional Tourism Organizations to provide institutional direction and marketing support for Alternative Accommodation establishments. They can help to ensure a right fit between the destination image and positioning, and the overall value proposition offered by this niche product category. The study has provided some important insights about the Alternative Accommodation sector both from supply side and demand side. The study has investigated the hosts/managers of Alternative Accommodation establishments to understand their characteristics and marketing mix. On the other hand, the guests decision to choose Alternative Accommodation and perception about this product were also analyzed in the present study. Therefore, the study was significant in its own way and contributed to useful information about the Alternative Accommodation sector. 6.6 Chapter conclusion The accommodation sector in India is faced opportunities with Government directive for capacity addition and innovation through providing Alternative Accommodation options to discerning tourists. With such institutional support and growing demand, Alternative Accommodation establishments will be better 135
prepared to receive guests who perceive a difference with this type of accommodation and also experience the difference. At the same breadth, these establishments ought to establish points of differences and sustaining those differentiating features. This study provides a picture of the profile characteristics of Alternative Accommodation establishments and their customers (guests). The relationship between the elements of their market mix and profile characteristics has been ascertained. The service quality attributes were used to study the gap between expectation and experience of the guests. The identification of the factors of influence in choosing Alternative Accommodation brings to light the key variables in the customer s decision-making framework. This study should be useful to Alternative hoteliers in formulating their marketing strategies in order to capitalize on the growth of tourist arrivals and development of tourist preferences for different accommodation products. In unifying the findings about Alternative Accommodation establishments and their customers (guests), this study highlights the implications of these findings and significance of this study to Regional Tourism Organizations, Destination Marketing Organizations and Alternative Accommodation sector. This chapter thus concludes with suggestions for further research in this unique sector of accommodation. 136