RMIT International University Vietnam

Course Code BUSM 4569

Course Name Service Quality Management

Location where you study Saigon South Campus

Assignment 1 - Individual Service Quality
Title of Assignment
Assessment
File(s) submitted Nguyen Pham My Tin_S3802817

Student Name Nguyen Pham My Tin

Student e-mail address S3802817@rmit.edu.vn

Learning Facilitator in charge Olivier de Chauliac

Assignment due date August 1, 2021

Date of submission July 30, 2021

Number of pages including this one 24

Word Count 1845 (exclude in-text citation)

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Table of Contents
I. Introduction: 3
II. Employee satisfaction: 3
III. Guest satisfaction: 4
IV. The relationship between these challenges and its long-term consequences: 5
V. Impacts of Covid-19 on the situation: 6
VI. Recommendations: 7
A. Training opportunities and mental well-being 7
B. Facilities enhancement and environmental protection practices 8

VII. Conclusion 10
VIII. References: 11

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I. Introduction:
As Vietnam starting to show several advantages such as long history of culture and
suitable geographic characteristics for tourism boom, the future of this sector is promising (Le
2020). Although Vietnam tourism has harvested multiple recognition worldwide for tourism
activities, there are still many drawbacks with this fast-growing sector. One of the issues is about
the unqualified human resource (Tran et al. 2020). The service quality is considered as low
regarding competitiveness in region as well as trust amongst travelers due to many difficulties in
human resources (Nguyen, Ho & Nguyen 2020). Sub-problems inside human resources that
resulted in current low performance of Vietnam tourism and hospitality include guest satisfaction
and employee satisfaction. It is reported that customer satisfaction and dissatisfaction in
the business are influenced by employee engagement and dissatisfaction (Mai & Ung 2020).
Base on this acknowledgement, this report aims to provide evidences of importance of employee
satisfaction and guest satisfaction along with discovering their relationship to illustrate their
influence on the industries and their potential long-term consequences to the sector. This report
also looks into the impacts of Covid-19 towards these challenges and providing
recommendations for Vietnam industries to improve their service quality in human resource
dimensions.

II. Employee satisfaction:

A study about critical factors affecting employee satisfaction in Vietnam hotel industry
suggested rewards, work-life balance and career progression are significant for commitment and
pursuit of employee (Hoang, Vu & Ngo 2020). While hospitality working environment is a
service industry that has strict working hours and expects personnel to be available at all times,
disproportion between work and life is unavoidable (Mai & Ung 2020). This may cause some
level of stress and dissatisfaction amongst employees and consequently lead to the leave of many
Vietnamese worker despite being trained for the industry (Kieu & Hoang 2020). As researches
has agreed with the positive connection between job satisfaction, employee loyalty and
performance (Tran & Tran 2020), this means the performance of employees may also affected.
Training programs are said to benefits individuals with better adjustment for working condition
and enhancing career (Rasheed et al. 2020). Experts expressed that training procedure could
bring professionalism to Vietnamese hospitality industry and benefits staff with feelings of being
care, therefore seeing high job security (Linh Pham 2020), and overall improve the satisfaction
with the organization. Regarding compensation, Vietnam hospitality workers are assessed to
receive unclear and unspecific benefits and salary, which has caused frustration at work,
therefore hotels suffer difficulties in attract and retain quality workforce in a long run (Kieu &
Hoang 2020). According to Salary Explorer (2021), average salaries of employees working in
hospitality in 2021 is approximately 11,500,000 VND monthly with variation from 4,360,000
VND to 32,000,000 VND, which is 33% less than average salaries of other professions. It is also
reported that Vietnam hospitality worker bonus is considered at low rate because of the
overwhelming lack of involvement in direct income generating (Salary Explorer 2021). As a
result, high level of employee turnover rate is acknowledged in this sector with considerable

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number of graduates leaving the industry despite being trained for the sector and workers joining
the industry not considering this as long-term career (Kieu & Hoang 2020).

Picture 1: Percentage of Food/Hospitality/Tourism/Catering Picture 2: Average salary of Food/Hospitality/Tourism/Catering

employee receiving bonuses and bonus rate (Salary Explorer employee compare to jobs of other sectors (Salary Explorer 2021)
2021)

III. Guest satisfaction:

Through the use of SERVQUAL model, a study showed that tangibles are one of the
main factors have strong direct and indirect influence on international tourists travel to Vietnam
(Nguyen et al. 2020). Another study also pointed out that destination image was the most
important factor to the satisfaction of international travelers (Khuong, Nguyen & Nguyen 2020).
This result is reflected in two other research about customer demands for hotels in Thanh Hoa
regarding better service facilities and destination image affecting tourist’s perception negatively
in Ho Chi Minh city case (Le, Nguyen & Le 2020; Mai, Nguyen & Nguyen 2020). Although
tourism infrastructure in Vietnam is noted to have significant improvements and investment over
the past decades, many problems arise (Vietnam Plus 2020). In the case of Sapa, while many
tourists attracted to this area, the number of accommodations in 2019 is reported at around 700,
offers nearly 7,000 rooms, but most of them are 1-2 stars and “not ranked” hotels. Furthermore,
tourist routes and inner-city highways are being repaired and upgraded, which is having a
significant influence on local economic growth (Nguyen & Do 2021). Regarding destination
image, sustainability practice and environmental protection is determined to improve the
destination image (Do et al. 2020; Nguyen & Le 2020). Unfortunately, environmental problems
are common in Vietnam with the example of coastal and marine cities, which are tourist
destinations, generated 0.5 million tons of solid waste annually, causing tourism attractiveness to
decrease gradually (Tsai et al. 2021). These evidences illustrate more concerns should be
considered for facilities and destination image of Vietnam or many consequences could affect
negatively. As tourist satisfaction have positive connection with tourist loyalty (Nguyen et al.
2020), the above issues may cause bad perception of tourist about Vietnam and never return,
which impact the sustainability of this sector. In fact, it is reported that roughly half of Thailand's
visitors return, but Vietnam's revisit rate is only 10% (Asia Highlights 2021).

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 Picture 3: Statistics of Accommodation in Sapa from 2017 to 2019 (Nguyen & Do 2021)

IV. The relationship between these challenges and its long-term

consequences:
Theoretically, many evidences show the direct connection between employee satisfaction
and customer satisfaction as employees have direct interactions with the customers that could
influence their experience (Kurdi, Alshurideh & Alnaser 2020; Son, Kim & Kim 2021).
Corelating towards tourism, this means employee dissatisfaction is potential harms to businesses
and create long-term consequences. Firstly, while customer satisfaction has strong impacts on
revisit intention (Nguyen et al. 2020), foreign tourists after disappointed with Vietnam may
choose other countries to travel, which affect the sustainability and potential profitability of this
sector in the long run, illustrated by the large gap between revisit intention between Thailand and
Vietnam (Asia Highlights 2021) and low return rate of European tourist in Nha Trang city (Le
2021). Furthermore, low return rate means costs involve attracting and retaining tourists
(marketing and promotion) increase, make the country lose cost advantages that impact on the
quality of visitor experiences, create a repeated cycle (Abbasi et al. 2021). Besides, evidence of
tourist’s satisfaction and recommendation to friends and relatives is discovered which suggests
negative impacts of customer dissatisfaction (Mohammad 2020). Nguyen, Nguyen & Le (2021)
noted that bad word-of-mouth message outnumbered the good one by a factor of three (3:1).
When customers are dissatisfied with a product or service, they are more likely to spread the
news, which has greater impact than positive messages. Finally, as workforce shortage in both
quantity and quality (Tran et al. 2020), employee dissatisfaction cause people to leave the
industry cause heavier burden on the scarcity and potentially increase job loss rate as
characteristics of tourism industry are different compare to other sectors and employees may not
adapt, create economic and social burdens in long term (Kieu & Hoang 2020; Mulder 2020).

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Picture 4: Framework of interrelation of various factors, guest Picture 5: Framework of relationship amongst stress, employee
satisfaction and revisit attention (Nguyen et al. 2020) motivation, satisfaction and loyalty (Mai & Ung 2020)

V. Impacts of Covid-19 on the situation:

Covid-19 pandemic significantly impacts not only on the sector but also the whole world.
Due to its severity, employee and tourist satisfaction are affected during this period. While
Covid-19 leads to lower organization trust, job satisfaction, and self-esteem, but it has increased
the organizational commitment (Kang et al. 2021). It is explained by difficulties that businesses
faced during this pandemic forced the employees to concern more about job security and
organizational well-being which encourage them to engage more business activities (Vo et al.
2020). However, due to many adjustments from the organization to adapt with the pandemic and
new requirements for training, several managers and workers still encountered difficulties in
adjusting to their new responsibilities, performing extra duties, or becoming acquainted with new
practices (Hoang, Truong & Nguyen 2021). However, this situation seems to be temporary since
a study conducted during this period evaluating guest satisfaction through online review showed
that 72.7% of reviews shows satisfaction from guests (Nguyen & Crociata 2020). In the case of
Tra Que agro-tourism during covid-19 which also show sufficient level of satisfaction of
Vietnamese tourist (Ha & Simaraks 2021). However, as this high performance is based on fear of
job insecurities, it may become unsustainable and pose potential threats in long term. Previous
research has found that sentiments of job insecurity correspond with greater emotional and
physical weariness, indicating that long-term exposure can deplete individual resources, causing
depression and negative well-being (Darvishmortevali & Ali 2020).

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Picture 6: Satisfaction and dissatisfaction rate of guest for hotel Picture 7: Rate of satisfaction-dissatisfaction criteria in reviews
Vietnam (Nguyen & Crociata 2020) (Nguyen & Crociata 2020)

VI. Recommendations:
A. Training opportunities and mental well-being

As mentioned above, benefits and salary are vague in many hospitality organizations.
This require better consideration and changes for what employees going to receive and ensure
the transparency of new guidelines. As pay and benefits are the greatest expenditure for
hospitality businesses, and organizations are frequently unable to raise them, thus increasing
wages and benefits is not always a viable option. (Jolly et al. 2021). One study of small and
medium enterprises shows that advancement training is the most important factor, higher than
wages (Nguyen 2021). One of recommended approach is job enrichment strategies. Job
enrichment is a combination of job diagnosis, combining tasks and task teams which allows
employees to engage in other departments and aspects of hotels as much as possible (Vulpen
2020). Although there are drawbacks of this approach, but this method would bring most
significant personal growth and career development. Covid-19 is recoded to impacts on
employee mental health which cause high level of depression and anxiety (Khan et al. 2020).
Business managers should encourage employees to have better lifestyle along with break spaces
or psychotherapy sessions for the personnel were required to be established in attempt to lessen
their tension (Yu, Park & Huyn 2021). For quarantine hoteliers, employees should have adequate
training for the virus with prevention and symptoms along with open two-way communication so
employee can express their concerns for managers, which allows a positive working environment
and atmosphere as they are successful psychosocial alteration (Ten, Wu & Lin 2020).

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 Picture 8: Hackman & Oldham’s job characteristics model

B. Facilities enhancement and environmental protection practices

Above studies of both Thanh Hoa hotel and Sapa case illustrate the problems in
improving the facilities, assessing and controlling service quality and recommendations for
enhancing facilities are made (Le, Nguyen & Le 2020; Nguyen & Do 2021). To support this, Per
Anker Jensen (2019) developed a set of guidelines with detailed phases combined into a process
of analysis and considerations that facilities managers could rely on and determine the best
decisions relating five typical challenges: Strategy development, Organizational design, Space
planning Building projects and Optimization. This enable businesses to develop sustainable
strategies and monitor throughout the project. Regarding destination image, interventions for
environmental damages is necessary for both tourism organizations and government. According
IUCN document, stakeholders such as hotels and tourism agencies should have proper solid
waste management and recycling methods. Stakeholders should consider engaging with private
sectors and NGOs for environmental activities to preserve cleanliness at local areas. IUCN also
suggest government has to publish a legal instrument to create a legal guideline strong enough to
avoid, minimize, and manage solid/plastic waste pollution. Creating and disseminating a system
to stimulate community initiative and creativity along with promoting indigenous knowledge
linked with local culture in the management and mitigation of solid/plastic waste (Nguyen & Bui
2020). As Covid-19 prevent tourists from travelling, this period provides opportunities for
businesses to restore and improve and plan for future (Romashko 2020).

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Picture 9: Tools for strategy development and the process phases Picture 10: Tools for organizational design and the process phases

Picture 11: Tools for space planning and the process phases Picture 12: Tools for building project and the process phases

Picture 13: Tools for optimization and process phases

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VII. Conclusion
Employee and guest satisfaction are two components that directly contribute to the
successful service quality. These two elements are proved to be interrelated and the concerns of
managers should be distributed for both elements or long-term consequences could occur and
leave heavy damages to the industries. However, there are many problems that still exist in
Vietnam tourism and hospitality sector. Regarding employee satisfaction, mental issues due to
the characteristics of the sectors along with unclear benefits and career path are influencing the
working capability of hotel workers. On the guest satisfaction aspect, low quality facilities and
environmental issues resulted in negative experience of tourists that leads toward many
consequences. The examination of Covid-19 also provide insights about pandemic related stress,
anxiety and unsustainable performance of employees during this pandemic. Recommendations
are made base on trainings, mental well-being, facilities and environmental protection through
the implication of job enrichment strategies, Jensen’s facilities management framework,
psychological treatment encouragement and collaboration of various stakeholders on negating
and reducing harmful environment impacts. These approaches will improve the service quality of
Vietnam in many aspects and one step closer to sustainability goals.

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