Current Issues in Tourism Red Palm: exploring service quality and ...

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Current Issues in Tourism

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Red Palm: exploring service quality and servicescape of the best backpacker hostel in Asia Ghazali Musaa; Thinaranjeney Thirumoorthia a Marketing and Information Systems, University of Malaya, Kuala Lumpur, Malaysia First published on: 11 February 2010

To cite this Article Musa, Ghazali and Thirumoorthi, Thinaranjeney(2011) 'Red Palm: exploring service quality and

servicescape of the best backpacker hostel in Asia', Current Issues in Tourism, 14: 2, 103 — 120, First published on: 11 February 2010 (iFirst) To link to this Article: DOI: 10.1080/13683500903511125 URL: http://dx.doi.org/10.1080/13683500903511125

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Current Issues in Tourism Vol. 14, No. 2, March 2011, 103 –120

Red Palm: exploring service quality and servicescape of the best backpacker hostel in Asia Ghazali Musa and Thinaranjeney Thirumoorthi Marketing and Information Systems, University of Malaya, Kuala Lumpur, 59,200, Malaysia

Downloaded By: [Thirumoorthi, Thinaranjeney] At: 04:50 2 February 2011

(Received 30 July 2008; final version received 22 November 2009) The Red Palm was voted the best backpacker’s hostel in Asia for 2006. This study explores the reasons behind this phenomenal achievement by examining service quality and servicescape of the establishment. Using NVIVO software, data from 192 website comments and eighteen in-depth interviews were content-analysed. The results show that the most important dimension of service quality experience with the Red Palm is tangibles, followed by empathy and assurance. The most important tangible elements of the Red Palm are facilities and equipment, location and the atmosphere of friendliness, welcome and homeliness, and cleanliness. The excellent staff elements include their courtesy, individualised attention and willingness to help. The paper also presents the illustration of Bitner’s [(1992). Servicescapes: The impact of physical surroundings on customers and employees. The Journal of Marketing, 56(2), 57 –71] servicescape framework in relation to the Red Palm. Keywords: backpacker; service quality; servicescape; qualitative

Introduction Backpacker tourism is now considered as one of the most important tourist markets to be targeted in Malaysia. According to the Ministry of Tourism (2008), backpackers in Malaysia stay considerably longer (27.6 nights) compared with the average 6.3 nights of all tourists. The spending patterns which largely benefit small local enterprises, in economically deprived areas, produce a more desirable economic multiplier effect. Researchers have looked into many aspects of economic development of backpacker tourism in the less developed countries (Hampton, 1998; Hamzah, 1997; Jarvis, 2004; Riley, 1988; Scheyvens, 2002; Spreitzhofer, 2002; Visser, 2004). However, there is limited knowledge available currently in the aspect of service quality and servicescape of backpacker accommodation. The success of backpacker accommodation depends on the steady streams of backpackers patronising the establishment. The decision to stay, to return and to recommend to others is largely a function of excellent service quality and the provision of the servicescape which fulfil the needs and desires of backpackers. Delighted customers, according to Schneider and Bowen (1999) and Patterson (1997) are more likely to return, become loyal and they eventually contribute to more profitable

Corresponding author. Email: [email protected]

ISSN 1368-3500 print/ISSN 1747-7603 online # 2011 Taylor & Francis DOI: 10.1080/13683500903511125 http://www.informaworld.com

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operations. This paper explores service quality and servicescape of the best backpacker hostel in Asia for 2006: the Red Palm. The results of this study could shed useful insights into providing a delightful experience for backpackers in small budget accommodation. The paper begins with reviewing the literature in the areas of backpacker tourism, service quality and servicescape. This is followed by methodology which briefly includes the description of the case study (the Red Palm). Results and discussion will be presented before drawing out the final conclusion.


Literature review Backpacker tourism Backpackers are defined by Loker-Murphy and Pearce (1995) as young and budget-minded tourists who exhibit a preference for inexpensive accommodation, an emphasis on meeting other people, an independently organised flexible itinerary, longer rather than brief vacations and an emphasis on informal and participatory recreational activities. Their journeys are often to multiple destinations and aided by guidebooks and the internet (Sorensen, 2003). The social interaction among them is erratic and impromptu (Sorensen, 2003), and long travel period necessitates the backpackers to stay budget (Hampton, 1998). Sorensen (2003) added that often their long holidays are spurred by the need to escape from the dull and monotonous daily routine, their jobs, making decisions about careers, and the desire to delay or postpone work, marriage, and other responsibilities. Anderskov (2002) argued that even though experiencing a new culture is one of the most sought after motives among backpackers, the actual interaction with the local population is often limited to those who are working in the tourism industry. The majority of backpackers are from Western origins such as North America, Australia, New Zealand, and Western Europe (Hampton, 1998). Backpackers are normally within the 18– 33 year age bracket. In the past, the market was largely ignored by government development planners and international agencies due to its association with ‘hippies’ or ‘drifters’ (Hampton, 1998). Today, there is an emergence of the ‘backpacker-plus’ market, who are educated, future leaders of society, or professionals on temporary leave but with clear intentions to return to their ‘normal’ life (Hampton, 1998). South East Asia is widely regarded as the birthplace of mass backpacking (Spreitzhofer, 2002). Malaysia, along with Thailand, Singapore and Indonesia are long established destinations for many backpackers. The backpacking activity is enhanced further by the current proliferation of low cost airlines such as Air Asia and Firefly which enable a greater mobility among backpackers in Malaysia and the ASEAN region at budget rates (Lee & Musa, 2008). In Malaysia, the interest in backpackers as a tourism market is evidenced by a study commissioned by the Ministry of Tourism in 2008. The study examined the contribution and potential of backpacker tourism in Malaysia. Using questionnaire survey and convenience sampling, a total of 839 backpackers were interviewed at all main backpackers’ enclaves in Malaysia. Backpackers were almost equal in gender. The average age of backpackers was 28.7 years. Europeans form the bulk of backpackers (77.2%), largely from the United Kingdom, Germany, the Netherlands and Australia. The Asian market (mostly Japanese and Korean) is relatively small (5.9%). In terms of backpacker typology, the majority (41.2%) were young backpackers (students on summer vacation or having a year’s gap). This was followed by 30.1% backpackers Plus (mature, wealthier professionals



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who prefer more comfortable hostel) and 17.7% Flashpackers (mature, wealthier professionals who seek luxury). Drifters (travelling as a lifestyle) constituted only 11.0% of backpackers in Malaysia. The main motivations of backpackers visiting Malaysia were ‘to enjoy natural environment’ and ‘to experience local culture’. Average expenditure per day for accommodation and food was RM57.64 (a total of RM1, 590.90 for visit). On the basis that an estimated 10% of tourists who come to Malaysia are backpackers (Lee & Musa, 2008), the market may have contributed RM605 million to the economy of Malaysia. In Kuala Lumpur, specifically the main activities carried out by backpackers were visiting historical sites, shopping, sightseeing and relaxing. In luring this travel market, the provision of their enclaves which are cheap, fun, comfortable and providing value for money is pertinent (Murphy, 2000). The backpacker accommodation should also provide excellent service quality that will stimulate positive word-of-mouth and encourage them to return or recommend to others. The following section will examine the literature on service quality. Service quality Service quality is defined as a global judgment or attitude relating to the overall excellence or superiority of the service (Parasuraman, Zeithaml, & Berry, 1985). It is conceptualised as a gap between consumers’ expectations and perceptions. Gro¨nroos (1984) stated that before measuring service quality, an organisation must first identify what constitutes quality to those whom it serves. The most widely cited measurement of service quality is SERVQUAL which was introduced by Parasuraman et al. (1985). The SERVQUAL model contains five dimensions of service quality, namely tangibles, reliability, responsiveness, assurance and empathy. Tangibles are defined as the appearance of physical facilities, equipment, personnel and communication materials. The importance of tangibles reduces as one shifts from services targeted at people to services targeted at possessions (Chowdhary & Prakash, 2007). They added that services focused on possessions of the customers will require more reliability. Reliability refers to the ability to perform the promised service both dependably and accurately. Responsiveness is the willingness to help customers and provide prompt service. Assurance is the knowledge and courtesy of employees as well as their ability to convey trust and confidence. Empathy is the provision of caring and individualised attention to customers. Parasuraman, Berry, and Zeithaml (1991) differentiated service quality dimensions into two: outcome aspect (reliability) and process aspect (tangibles, responsiveness, assurance and empathy). Studies on a wide array of service types revealed reliability is the most important, while empathy is the least important (Parasuraman, Zeithaml, & Berry, 1988). In Australia, Mei, Dean, and White (1999) found that the best predictors for overall service quality are responsiveness, assurance and empathy. Akbaba (2006), however, found that the tangible dimension has emerged as the best predictor to overall service quality and individualised attention attributes (empathy dimension) received the least expectation mean score. Price has been proposed by Chowdhary and Prakash (2007) as a crucial dimension to be added in service quality. Achieving the recognition as the best backpacker’s hostel in Asia for 2006 may indicate that the Red Palm has not just managed to satisfy its guests. It may have delighted them. Customers’ delight is an expression of very high satisfaction resulting from surprisingly good performance (Chandler, 1999; Oliver, 1997; Patterson, 1997). Schneider and Bowen (1999) predicted that more businesses will be concerned with achieving customers’ delight because satisfying customers is not enough to retain them. Customers’ delight


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induces customer loyalty and positive word-of-mouth; and these eventually lead to profitable operations (Oliver, Rust, & Varki, 1997; Torres & Kline, 2006). Delight requires businesses to have a greater understanding of consumer behaviour and the needs of their guests (Fuller & Matzler, 2007; Torres & Kline, 2006). For instance, Ritz-Carlton is well known for satisfying their guests’ higher needs which are ‘providing personal touch’, ‘going the extra mile’ and ‘dealing well with problems and queries’ (Bacon & Pugh, 2004). In addition to these needs, Johnston (2004) added that excellent services should also comprise ‘deliver the promise’. Johnston (2004), however, warned that the strategy of delighting customers may not be appropriate for all organisations. If perceived quality to be achieved is too high, the cost of its production is likely to be unnecessarily high. Thus, the target may not be justified economically. Even Rust and Oliver (2000) themselves questioned whether delighting customers is a suitable goal as there is a possibility of future heightened expectations which would result in the increase of the cost associated with delivering the service. Another important aspect which needs to be considered in delighting customers is the provision of attractive servicescape. Servicescape Services are generally purchased and consumed simultaneously, and typically require customers and employees to interact with each other within the organisation’s physical facility. Thus, the organisation’s environment should support the needs and preferences of both service employees and customers simultaneously (Bitner, 1992). In many services organisations, the servicescape provides the first impression. It serves as an important element that customers use to guide their beliefs, attitude, and expectations of a service provider (Lin, 2004). Bitner (1992) defined servicescape as ‘built environment or man-made physical surroundings as opposed to the natural or social environment’. Bitner (1992) also proposed a holistic framework of the impact of physical surroundings on customers and employees. Referring to Figure 1, the framework consists of environmental dimensions, holistic environment, moderators, internal responses and behaviour. Environmental dimensions (servicescape) comprise ambient conditions, space/function and signs, symbols and artefacts. It is argued that people respond to their environment holistically. The combination of the three environmental dimensions forms the perceived servicescape. The perceived servicescape invokes internal responses among employees and customers in terms of the cognitive, emotion and physiology. The perceived servicescape is also found to influence the behaviour of both customers and employees. Both, the internal responses and behaviours of customers and employees could either be negative or positive. The internal responses also influence the interactions between and among customers and employees. In the nature of social interaction, we have group interaction, friendship formation, aggression and withdrawal. The perceived servicescape does not directly affect the behaviour. The strength of this relationship is moderated by personal and situational factors. Personality traits are believed to influence one’s reaction to physical surroundings (Bitner, 1992). Situational factors such as mood and physical state also have some bearing over the internal state and behaviour of the customers and employees. Satisfaction and intention to return among consumers of leisure services are strongly influenced by perceptions of the servicescape (Wakafield & Blodgett, 1996). In Switzerland, Reimer and Kuehn (2005) found that the servicescape is not only an indicator of



Figure 1.

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The illustration of Bitner’s (1992) servicescape framework in relation to the Red Plam.

service quality, but also influences the evaluation of the intangible dimensions. Harris and Ezeh (2008) expanded further the servicescape aspect to include the staff elements which are staff behaviour and staff image. Thus, it could be argued that the customer elements may also play roles in shaping servicescape, as many customers frequent an establishment simply because of the type of customers who patronise the place. Referring specifically to backpackers’ preferences in accommodation, a study in Canada by Hecht and Martin (2006) discovered that the hostel size is not a significant factor among tourists when choosing accommodation. The top five service preferences are cleanliness, location, personal service, security, and hostel services such as internet and laundry facilities. Ryan and Mohsin (2001) found that amenities such as air-conditioning, laundry facilities, swimming pool and transfer are rated as the most important services. Among factors which encourage positive word-of-mouth are friendly and helpful staff, good service, making sure the clients have fun and memorable times, value for money, good and clean facilities and the availability of social activities with good atmosphere (Murphy, 2000). In summary, backpacker is an emerging tourism market which has achieved greater significance in Malaysia. Other than studying its economic potential to the country, it is also pertinent to examine aspects of satisfaction, particularly service quality and servicescape. Even though many studies have been carried out in these areas by tourism researchers, little knowledge is known pertaining to budget accommodation. This study intends to contribute to the further expansion of knowledge in the area of service quality and servicescape with reference to backpacker accommodation. Studies on service quality are largely carried out quantitatively. Johnson, Tsiros, and Lancioni (1995) suggested that the managers of hotels should supplement this method with additional qualitative research such as indepth interview or focus group discussion. A different method creates better opportunity to identify the reasons of the results. The following section presents the methodology employed for this study.

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Research methodology Case study: the Red Palm The Red Palm is situated in Jalan Tong Shin which is one of the three main backpackers’ enclaves in Kuala Lumpur. The hostel is centrally located within walking distance to the main attractions in Kuala Lumpur such as historical sites, shopping complexes, restaurants and entertainment centres. The Red Palm began its small budget hostel operation in 2004 and by 2006 the establishment gained recognition as ‘Number One in Asia’ by www. hostelworld.com which is an organisation dealing with on-line booking for over 15,000 hostels worldwide (Hostelworld, 2008). As earlier stated, being the best provides an excellent case study in the exploration of what constitutes service quality and servicescape of the operation. The hostel is a double story bungalow which was re-furbished to accommodate thirteen beds (Red Palm, 2008). The cost for a night stay with breakfast in the hostel is USD 5. Among facilities in the hostel are computers, kitchen, showers, air-conditioned section, TV, DVD, magazines, books and many others. Perhaps the most interesting part of the hostel is the lounge which is spacious, and tastefully decorated to encourage socialisation among the guests and hosts. An interview with the owner was carried out in August 2009 in order to elicit the structure, strategy and human resource policy of the Red Palm. The hostel is owned by two close friends. They do not have any clear written strategy for the business. The main reason why they started the operation was because they ‘love to talk to and help tourists’. At the moment, the Red Palm has two full-time and three part-time employees. ‘Loving what they do’ is the single most important criterion used when choosing the staff to work in the Red Palm. They must be dedicated, and perform all their duties diligently and well. There are two main parameters for the quality services according to the owners. First, the staff must have good personal relationship skills and possess adequate knowledge about Malaysia. Second, cleanliness is an absolute necessity which cannot be compromised.

Research objectives As stated by Fuller and Matzler (2007), the strategy to delight customers requires a greater understanding of the needs and behaviours of the guests. The exploration of their highest order of needs in the service delivery is mandatory (Torres & Kline, 2006). Quantitative research as has been used in many service quality studies may not be able to reveal the true reasons behind the needs and behaviours (Johnson et al., 1995). For this very reason, this study used qualitative method in fulfilling the study objectives. There are three main objectives of the study. (1) To identify the most frequently expressed service quality dimension in the Red Palm based on SERVQUAL. (2) To explore how services quality dimensions are expressed by the backpackers based on SERVQUAL. (3) To present the illustration of the servicescape framework developed by Bitner (1992) in relation to the Red Palm. The first objective intends to measure quantitatively the qualitative statements stated in both data sets (website comments and in-depth interviews) using NVIVO software. The most frequently mentioned statements will be regarded as the most important service quality dimension. In the second objective, the authors explore how these statements are


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expressed in the website comments and in-depth interviews. These expressions are often rich and providing greater depth in explaining the reasons behind the preferences (Johnson et al., 1995). The final objective of this study seeks to illustrate the servicescape framework developed by Bitner (1992) in relation to the Red Palm. This illustration sets out a diagrammatic explanation of how servicescape influences its hosts and the guests during the delivery of service. The following section details research methods employed in this study.


Research method In exploring the most frequently expressed service quality dimension with the Red Palm, two methods were used. The first method was based on the analysis of website comments written by 192 backpackers who stayed in the Red Palm during the period of October 2004 to March 2009. The comments were written on www.hostelworld.com. As earlier stated, the www.hostelworld.com is an organisation which provides on-line booking for over 15,000 hostels worldwide. There are two criteria used for the selection of the voters. First, voters must book to stay at the Red Palm with www.hostelworld.com. Second, they must have stayed in the Red Palm at least one night. After the stay at any hotel marketed by www. hostelworld.com, customers are invited to evaluate the hostel’s services online using the five point Likert Scale on six service dimensions: staff, cleanliness, character, fun, location and security. Respondents are also encouraged to provide comments on the website. Since the organisation is the representative of an on-line booking for over 15,000 hostels worldwide, and the evaluation was carried out by the customers themselves, the results can be seen as having its own merit. According to the owners of the Red Palm, roughly 20% of those who stayed in the establishment evaluate and write comments on the website. In order to verify further the findings from the above method, in-depth interviews were carried out on 18 participants among those who were staying in the Red Palm over the period of December 2007 to August 2009. The interviews selection was carried out using convenience sampling. The owners informed the guests regarding the interviews, and those interested to volunteer were requested to write their names down. The interview dates were then assigned. The interviews were carried out individually, recorded and later transcribed into MS-word. Table 1 shows the abbreviations used to describe the participants by nationality, age and gender. To supplement the information from website comments and in-depth interviews, interviews with owners as well as observation of the hostel’s servicescape were also carried out on several occasions by the researchers. Red Palm was chosen as the case study solely for the fact of it has won the accolade of the best backpackers’ hostel in Asia. The exploration of service quality and servicescape are guided by more established theories such SERVQUAL (Parasuraman et al., 1985) and servicescape framework (Bitner, 1992). The SERVQUAL model was used because it is the most widely applied theory in measuring service quality. Bitner’s (1992) servicescape framework was chosen as it is holistic, delineating the impacts of physical surroundings on both customers and employees. For service quality, the frequency of each element within the dimension was calculated in order to determine which aspect of the service quality dimensions is the most frequently expressed. In this study, the most frequently expressed service dimension is used as surrogate evidence to the important service dimension. Content analysis was carried out using NVIVO in order to explore the patterns in answers and group them within dimensions which are representative of the dimensions of service quality and servicescape. The software searches for meaning in the text, discovering patterns, identifying themes, gleaning insights and ultimately delivering robust

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Table 1. In-depth interview participants by nationality, age and gender.


Abbreviation Participant B_24_F Participant G_35_M Participant B_25_M Participant M_48_M Participant B_32_M Participant H_24_M Participant B_26_F Participant V_25_F Participant B_23_F Participant_I_35_F Participant_S_21_M Partcipant_J_23_F Particpant_U_34_M Participant_SA_F_26 Participant_B_M_28 Participant_F_33_M Participant_C_29_F Partcipant_SW_26_M

Nationality

Age (years)

Gender

British Germany British Malaysian British Holland Belgium Vietnam British Irish Scotland Japan USA South Africa British France Canada Sweden

24 35 25 48 32 24 26 25 23 35 21 23 34 26 28 33 29 26

Female Male Male Male Male Male Female Female Female Female Male Female Male Female Male Male Female Male

findings. The coding was carried out guided by the five SERVQUAL dimensions introduced by Parasuraman et al. (1985) and Bitner’s (1992) servicescape framework. The main themes in the dimensions were identified in the form of tree nodes. Within the tree nodes, coding of the nodes representing each theme were carried out using the principle of content analysis. The related statements within a specific theme which described the dimension were recalled by searching the related themes or nodes. In order to develop the servicescape framework for the Red Palm, the servicescape framework introduced by Bitner (1992) was adapted. The items in all the dimensions of the framework were derived from both website comments and in-depth interviews. The completion of the holistic servicescape framework illustration of the Red Palm was also guided by interviews with owners and the observation of the hostel’s servicescape. The next section presents research findings. Results Demographic profile Out of 192 respondents who commented on the service experience with the Red Palm on the www.hostelworld.com, 55.7% were male, while 44.3% female. Respondents were from 34 different nationalities with biggest representations from England (21.9%), USA (15.1%) and Australia (12.0%). Regional wise, the majority of backpackers were from Europe (46.4%), America (17.2%) and Australia and New Zealand (14.1%). Backpackers from Asia and ASEAN regions were relatively small (21.3%). The majority of backpackers who commented on their stay in the Red Palm were young (41.1% between 18 and 24 years and 39.6% between 25 and 30 years). Backpackers aged 41 years and above constituted only 5.2% of the respondents. Their average age was 27.4 years. The rest of the results will be presented according to research objectives. Objective 1: To identify the most frequently expressed service quality dimension of the Red Palm based on SERVQUAL.



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Table 2 presents the most frequently expressed service quality dimensions in website comments and in-depth interviews. Referring to the website comments, the most frequently expressed service quality dimension were the tangible components (52.8%). This is followed by 24.3% assurance and 13.5% empathy. The most important elements of tangibles are facilities and equipment ( f ¼ 60), central location (f ¼ 54), friendly and welcoming atmosphere ( f ¼ 54), cleanliness (f ¼ 45) and feel like home ( f ¼ 41). The important staff elements are the courtesy of employee (f ¼ 97), the provision of caring and individualised attention (f ¼ 56) and the willingness to help customers ( f ¼ 50). The results from in-depth interviews also show almost similar findings in the website comments. Again the most important service dimension expressed is tangibles (53.2%). However, compared with website comments – where assurance is the second most important – empathy (19.0%) appeared to be the second most important dimension in in-depth interviews, followed by assurance (17.6%) and responsiveness (9.7%). Among the important-tangible elements are friendly and welcoming atmosphere ( f ¼ 49), equipment and Table 2. The most frequently expressed service quality dimensions in website comments and indepth interviews. Website comments Dimensions Tangibles (total) Facilities and equipment Central location Friendly and welcoming atmosphere Cleanliness Feel like home Cozy atmosphere Noise Security Physical atmosphere Well organised Assurance (total) Courtesy of the employee Politeness and respect for the customers Effective communication with the customers Competence to perform the service Knowledge of employee General attitude that server has the customers best interest at heart Employee’s ability to convey trust and confidence Empathy (total) The provision of caring and individualised attention Sensitivity and effort to understand customers’ needs Responsiveness (total) Willingness to help customers Ability to recover service failure quickly Provide prompt services Reliability (total) Ability to perform the promised service (dependably and accurately) Service is accomplished on time Service is accomplished without errors every time

In-depth interviews

Frequency

%

Frequency

%

304 60 54 54 45 41 28 10 5 4 3 141 97 22 10 7 2 2

52.8

209 45 5 49 22 27 15 21 11 12 2 69 33 2 6 3 18 5

53.2

1 78 56 22 50 50 0 0 4 2 2 0

24.3

13.5 8.7

0.7

2 75 56 19 38 34 1 3 2 1 1 0

17.6

19.0 9.7

0.5

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facilities ( f ¼ 45), feel like home ( f ¼ 27) and cleanliness ( f ¼ 22). The important staff elements are the provision of caring and individualised attention ( f ¼ 56), courtesy of employee ( f ¼ 33) and willingness to help customers ( f ¼ 34). Objective 2: To explore how these services quality dimensions are expressed by the backpackers based on SERVQUAL.


The majority of comments posted by the respondents on the website are in the form of abstracts and cannot be probed. Thus in achieving objective 2, only information from fifteen in-depth interviews will be used. Tangibles With a total of 209 phrases, tangibles are the highest recorded dimension. Its importance is duplicated in the result of website comments (304 phrases). The dimension is further classified into elements of friendly and welcoming atmosphere, facilities and equipment, feel like home, cleanliness, cosy atmosphere, security, physical atmosphere, centrally located and well organised. Since tangibles are the dimension of servicescape, it will be elaborated in objective 3. Empathy In an in-depth interview, the empathy dimension is the second highest that is recorded. The provision of caring, individualised attention, sensitivity and effort to understand customer’s needs all represented at high frequencies within the dimension. Effortlessly, the staff personalised the guests by calling them with their names. But, it does not stop by just knowing the names. . . .the most important thing about the Red Palm is the staffs are so personal. Not only they know your name, they also know what you are doing and where you are going. (Participant H_24_M)

Another special character among the staff is their genuine interest towards the guests. The Participant B_24_F explained how the owner had read all the blog information written by her that would have taken at least five hours to read; and this could only be carried out if someone is genuinely interested in you. The example of sensitivity and effort to understand customers’ needs is explained by Participant B_32_M. at one time I had my relationship broke down and I came down to Kuala Lumpur and I stayed here for two weeks and I was in a really bad way and they really listened, they looked after me like a family.

The sensitivity and effort to understand customers’ needs by the host sometimes produces action which could be seen as going the extra mile. The participant B_23_F recalled the very first day of her practical training at a university hospital. She was not allowed to be in the hospital for not having a lab coat. Back in the hostel she expressed her stress and the feeling of being rejected to the owner. The owner empathised with the situation and ended up spending the whole day going around Kuala Lumpur looking for a lab coat. Participant B_23_F recalled when the hostel was fully booked, not only the staff arranged for her to stay in another place nearby, but they also walked her there.


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Assurance Assurance is the second most frequently expressed service experience in the website comments page and the third most important in in-depth interviews. Most of the phrases recorded relate to the courtesy and knowledge of the hosts. They are regarded as polite and friendly people. Questions are always answered with honesty, calmness and eagerness to help. The staff also possess excellent knowledge of the locality, and this enhances their ability to help and satisfy the needs of the guests. Staff know a lot about the city. They are like an information mine. I am a vegetarian and they guided me exactly to the place where I could enjoy vegetarian food. (Participant B_26_F)


Staff are extremely friendly and very helpful in answering my questions. Actually most of the time I don’t need to ask, I just say where I want to go and I will be given maps, bus numbers, costs etc., it is like having tourist information in my hostel! (Participant C_29_F)

Responsiveness Responsiveness is the fourth most frequently expressed dimension by the backpackers in the Red Palm. This is vividly expressed by the following guest. Before I came to the Red Palm, I e-mailed several hostels in Kuala Lumpur. I wrote my intention to stay for my medical elective posting in a hospital. I asked them is it easy to go to the hospital from there, and is it possible to have any discounts and what can be arranged. The Red Palm emailed me back at once. They wrote the whole story how I could go to the hospital and maybe they can arrange some discounts because I plan to stay for three to four weeks, and it is like they want you to come and some of the other hostels, I have not heard anything from them. That is important. They answered my questions, what I wanted to know. (Participant H_24_M)

Within the hostel the staff appear vigilant but not intrusive. They always seem to be there in the background, but they never make you to feel uncomfortable, and whenever they sense that you need something, they always offer help. (Participant B_24_F)

Reliability The aspect of reliability is not recorded as an important service experience by the guests in the in-depth interview. It is also minimally stated in the website comments page. This may signify that reliability is not an important service experience among the guests in the Red Palm. Objective 3: To present the illustration of servicescape framework developed by Bitner (1992) in relation to the Red Palm.

The importance of tangibles as a service quality dimension has already been proven in objective 1. Objective 3 attempts to illustrate the servicescape framework proposed by Bitner (1992) in relation to the Red Palm. Among the elements discussed in the framework are environmental dimensions (servicescape), holistic environment (perceived servicescape), moderators, internal responses and behaviour (Figure 1). As stated earlier servicescape can be divided into three: ambience conditions, space/ function and signs, symbols and artefacts. The following quotation highlights precisely the summary of servicescape in the Red Palm.

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This place is fantastic. I can’t rate it high enough. The atmosphere is just so cool, everyone seems to want to have a good time and always up for few beers out in the garden. The rooms are all clean and airy, and the bathroom is importantly, very clean as well. The communal area downstairs is very cosy, with hundreds of DVDs to watch on a rainy day. The staff are so friendly and helpful, just a quick example of this, while we were staying here, it was an Irish girl’s birthday (always an excuse for a party), but the staff cooked all the guests dinner, and made her a cake. So it’s truly was a fantastic night. I know this is all very gushing and a wee bit cheesy, but there really is nothing bad to say about this place, ohh actually there is . . . it’s always fully booked so book in advance if you can, I urge anyone going to Kuala Lumpur to stay here. (Participant B_M_28)

In terms of ambience, the Red Palm with its colonial design is centrally located within the backpacker enclave and easily reachable to all activities that could be carried out in the city. The inside of the house is painted with many different fresh colours. The hostel looks tidy and clean at all times. A participant stated the smell of the place (fresh flower smell) as the reason of the first good impression (Participant B_24_F). The combination of friendly and helpful staff and their willingness to socialise among tourists provide a friendly and welcoming atmosphere in the hostel. The close intimacy between hosts and guests brings about the perception that the Red Palm is ‘like home’. As you arrived in the Red Palm, immediately you don’t feel like you have been traveling for ages. You feel you can relax because everything is laid for you out in a way that you can feel relax. (Participant B_24_F) Sometimes during sightseeing in Kuala Lumpur, I can’t wait to go back to the hostel early, as it is a nice hostel to go back to (Participant B_25_M). It is definitely my second home because here I can really feel so myself. (Participant G_35_M)

The aspect of security appeared in several interviews. Most of the time, the gate to the Red Palm is closed. They don’t simply let local people come in, the majority of people staying here are foreigners and they need to feel safe. When a stranger comes, they ask who are you and what you want. (Participant M_48_M)

In terms of space and function, the lounge is perhaps the centre stage of service experience. ‘This is more like a social gathering place’ (Participant G_35_M). In the lounge, ‘the great thing is they create an atmosphere that guests get together and be friends’ (Japan, F, 23). The lounge has comfortable cushions lying neatly and cosily on the floor. There are two computers situated directly on the opposite wall from a television set. Around the lounge there several cabinets full of DVDs, music and a books stand. The reception itself is situated at the corner edge of the lounge; allows easy access for enquiries. The kitchen has also immediate access from the lounge. It is neatly arranged and immaculately clean. Guests could help themselves with drinks and even cooking. Directly opposite the reception table is the main door to the hostel, which allows constant scrutiny of any passerby or the arrival of new guests. This heightens the sense of safety and security. There are not many signs, symbols or artefacts in the hostel. However, there are paintings and maps of Malaysia and Kuala Lumpur hanging on the wall and even toilets. The combination of all dimensions of servicescape form the perceived servicescape both in the mind of employees and guests. To them the Red Palm is a centrally located hostel which is safe, clean and offers a lot of amenities. The staff are friendly, helpful and welcoming. The guests are of ‘their kind’ who seek fun and love socialising.



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The perceived servicescape evokes internal responses in both employees and customers. The staff, according to Participant B_26_F, ‘. . . are full of energy; and we know they must be enjoying their job’. An interview with one of the staff revealed that cognitively, they are aware that the Red Palm is the best backpacker’s hostel in Asia and this creates an expectation from the guests. The perceived servicescape also evokes internal responses within the customers. Similar to the staff, the majority of the guests are aware of the hostel’s achievement and read its many positive recommendations in the website. Emotionally, the guests express how enjoyable is their stay, how the Red Palm provides them with the sense of ‘home’ and perhaps value for money. The guests feel that their stays are comfortable, secure, and their needs are well attended. Some express the sense of belonging to the place and being emotionally pampered. However, the negative physiological responses in the form of noise from thin walls as well the restaurant beside the hostel were also recorded. Internal responses to the perceived servicescape also results in certain behaviour displayed by both employees and customers. Among positive behaviours displayed by the staff are being friendly, courteous, helpful, going extra miles, personalised and always be there for the guests. There is no negative behaviour recorded by the guests either in website comments or in-depth interviews. Internal responses to the perceived servicescape also produce certain behaviour among the guests. Positive behaviour displayed by the guests are mainly in the form of respect for the rules of the hostel (e.g. drinking outside, not making a noise and flushing the toilet) and extending the stay. ‘I booked one night hoping to pass through Kuala Lumpur and ended up staying three days’ (Participant SA_26_F). Some participants show the family spirit by becoming a mentor to new guests in the form of being helpful themselves or simply being friendly which contributes to the positive social servicescape of the Red Palm. Some guests have a clear intention to return as well as to recommend the Red Palm to others. There is no negative behaviour elicited from the guests. Well my time in Malaysia was great and it got better when I stayed at the Red Palm. If I were to ever go back to Malaysia there is no doubt, I would stay there. My heart says if there is no bed I will still sleep outside until the room is available. (Participant S_21_M) Staff were incredibly helpful. I think they actually knew everything not only Kuala Lumpur, but about the whole of Malaysia! Staying in this hostel was just like staying at second home! I would recommend this hostel a hundred times over! (Participant I_35_F)

Internal responses to the servicescape also result in certain social interactions between customers and employees. Among the behaviours recorded are the sharing of experience and knowledge, personal interaction, helping each other and the formation of friendship. The host plays an important part in the interaction with the guests and among the guests. The staff try to connect people, bring them together, and introduce everybody to everyone. The way they introduced you is very special, they talk about you and really want you to be involved, they know what we need and match your interests with other guests. (Participant G_35_M)

The host frequently provides food at the dinner table for everyone. At the table they share a lot of experiences especially related to travel. It is not uncommon among them to share something very personal. It’s the first time in my life that I have dinner with the owners of the guesthouse I stay in. That makes all the difference. If you’re cool you’ll feel just like being at home. This place has a

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much better value than a 4 star. Because human friendliness, exchanges, smiles, are more important than a dryer in your bathroom. So even when I’m billionaire I will continue to come here. (France, M, 33) The staff introduced me to a family from London. They watch a movie with me, and we start talking and laughing. We exchange numbers and later talk about our personal lives. (Participant V_25_F)


The interaction between the perceived servicescape with internal responses and the behaviour of the employees and customers are moderated by their personality traits and situational factors. The host is described by the guests as helpful, friendly and always look happy (positive mood). The guests on the other hand described themselves as people who are open minded, extrovert, attention seekers and love to socialise. I chose to stay in a backpacker hostel primarily to meet people, hear their stories, help and learn from one another. (Participant B_26_F) Two years ago I didn’t even know this is a way to know people. Once you have experienced it, you will be addicted, and you will always want to stay in this type of accommodation. (Participant G_35_M)

Discussion and conclusion The excellent achievement gained by the Red Palm provides a good case study for the authors to explore the service quality and servicescape, which delight the backpackers. The hostel may have fulfilled ‘higher needs’ of customers as suggested by Torres and Kline (2006) and Fuller and Matzler (2007). As earlier observed by Hampton (1998), the backpacker market in this study remains largely European. However, the globalisation of culture as a result of education, trade and media gradually sees the emergence of Asian backpackers. In this study, they constitute 21.3% which is considerably higher than 5.9% recorded by the Ministry of Tourism (2008). The big discrepancy could be explained by the fact that this is a case study. Due to relatively little experience, Asian backpackers may have preferred to travel to big cities such as Kuala Lumpur. The involvement in backpacking activities is slightly higher among males compared with females. The majority of backpackers are young with the average age of 27.4 years. All these statements corroborate the claims of Hampton (1998). As mentioned earlier, this study uses the frequency of items within SERVQUAL dimensions commented in the websites and in-depth interviews as a measure of service quality. The most frequently expressed dimension of service quality recorded in both methods is tangibles. The importance of tangibles in service quality of the Red Palm duplicates the finding of Akbaba (2006) in Turkey. It also reflects Chowdhary and Prakash (2007) who stated the increasing importance of tangibles in service quality as the service moves from possession to people. The Red Palm services are highly on people. However, the finding differs from Mei et al. (1999) who only found employees’ elements of responsiveness, assurance and empathy as important determinants of service quality. Within the tangibles dimension, the most satisfactory elements that are revealed in the website comments are facilities and equipment, central location, and friendly, welcoming and home-like atmosphere. From the in-depth interviews, in addition to previously stated elements, cleanliness is also featured as a very satisfactory experience. Within the assurance dimension, the elements which are highly praised are courtesy of the employees and



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politeness, respect and effective communication with the customers. The element of knowledge is also featured highly in the in-depth interview. Elements of effective communication and knowledge among staff reflect the two main parameters for the quality services set by the owners (refer case study section). Within the empathy dimension, the two most important elements are the provision of caring and individualised attention and sensitivity and effort to understand customers’ needs. For the dimension of responsiveness, the most important element is willingness to help customers. The finding of the importance of individualised attention and the willingness to help customers with courtesy coincide with Bacon and Pugh (2004) and Johnston (2004) on the aspects which could contribute to customers delight. The results revealed that reliability is almost non-existent as a service quality dimension. This could be explained by the fact that the Red Palm service is largely carried out for people and minimally for their possessions. Chowdhary and Prakash (2007) stated that the reliability dimension is more important when the service is provided for people’s possessions. Reliability is also the outcome of service quality as mentioned by Parasuraman et al. (1991). An opinion on reliability could only be made following repeated patronising of a service. Many of the guests in the Red Palm are first timers. The cost for one night stay in the Red Palm with breakfast is only USD5.00. One aspect that appeared in the results that cannot be easily placed in any service quality dimension is generosity. The Participant B_32_M was so impressed at how generous the hosts were towards him. One of the main things is they don’t seem to be interested in making any money (laughing). They don’t have any interest in that, it seems to me. There is always food available, there is coffee, and fridge is full of things. They buy food for you; often they buy me dinner and just not expecting anything in return. When I use the internet for 25 hours and want to pay, they say no no, just pay 10 hours. The business is like almost the secondary thing. It looks like they are running the business as a hobby and if they are rich they let us stay for free. (Participant B_32_M)

The over-generousness displayed in the caption above made one wonder whether the Red Palm operation is in fact profitable. As warned earlier by Johnston (2004), the strategy of delighting customers may not be suitable for every organisation. If the perceived quality to be achieved is too high, the cost of its production is likely to be unnecessarily high (Rust & Oliver, 2000). Thus the indicator of success for the Red Palm may not only be from the aspect of monetary gain. When asked about whether the owners makes money out of the business, they said, ‘No, we are not making money, but we are not losing money either, we make enough for our simple life and live the lives that we enjoy living’. The servicescape framework of the Red Palm is adapted from the work of Bitner (1992). The Red Palm is small with only 13 beds. From personal conversation with the hosts, the hostel has no problem in filling up the beds due its high rating on the website and positive word-of-mouth. This supports the statement by Hecht and Martin (2006) who claimed that the hostel size is not a significant factor among tourists when choosing an accommodation. The delivery of the service in the Red Palm occurs in a small house which is greatly enhanced by the physical ambience created in the establishment. As mentioned earlier, the presence of both hosts and guests create a special atmosphere which is described as cosy, friendly and home-like. The tourists are eager to know each other and the staff are always willing to deliver the best possible service to the guests. The backpacker strong emphasis on meeting people and socialising either with the hosts and other guests was also indicated by Loker-Murphy and Pearce (1995). The positive elements of cleanliness,


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location and security in this study duplicate the excellent service requirement of backpackers mentioned by Hecht and Martin (2006). The Red Palm also has all the aspects which Murphy (2000) explained as the necessary ingredients to encourage positive word-ofmouth: friendly and helpful staff, good service, making sure the clients have fun and memorable times, value for money, good and clean facilities and the availability of social activities with good atmosphere. As stated by Wakafield and Blodgett (1996), satisfaction and intention to return among consumers to leisure services are strongly influenced by the perception of a servicescape. Some backpackers expressed their intention to return and to recommend to others. Bitner’s (1992) definition of the servicescape reflects only the physical aspect of an establishment. However, in this study, the ambience of a servicescape could be divided into two: physical and social (refer Figure 1). Physical ambience relates to elements such as equipment and facilities, cleanliness, central location and other physical ambience. However social ambience includes elements of friendly, welcoming and homelike atmosphere. This atmosphere is created not only by the physical aspect of the establishment, but also the social aspect created by both hosts and guests. Thus, the definition of servicescape should be revised as the service atmosphere created by the combination of man-made physical surroundings and the social atmosphere created in the presence of both hosts and guests. This could be argued along the claim of Harris and Ezeh (2008) who emphasised the importance of the staff elements – staff behaviour and staff image – in shaping a servicescape. If this holds true, guest elements-guest behaviour and guest image-must also be included in the description of servicescape as many customers frequent certain service establishments simply because of the type of people who patronise the place. Despite this comment on the definition, Bitner’s framework is superior in describing how servicescape influences both guests and the hosts in terms of their internal responses, interaction and behaviour, all of which are moderated by personal and situational elements. The weakness of this study relates to its being a case study which is based only on a single backpacker hostel. The result of this study cannot be generalised as a representation of all the backpacker’s hostels which delights the customers. Future study may need to include greater numbers of such establishments to increase the reliability and the validity of the results. The other weakness is the use of comments’ frequency as a surrogate to the important dimension of service quality. Normally the degree of importance is measured quantitatively using the Likert Scale. Future study could employ quantitative survey in exploring service quality of budget hostels which achieved excellence. Exploration of the personality and the motivation of the hosts among the hostels of similar category could be useful, especially in the shedding of light on the future recruitment of human resources for similar orientation of accommodation. In conclusion, the result of this study provides useful knowledge and direction for accommodation managers, in order to achieve service excellence or delight. In creating the best servicescape for a small backpacker accommodation, the most important tangible elements that should be featured are facilities and equipment, central location, friendly, welcoming and homelike atmosphere and cleanliness. The human resource aspects that need to be emphasised through recruitment and training is to provide employees who could deliver services with courtesy, individualised attention, willingness to help and relevant knowledge.

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