his model can be seen as encouraging for hotels, touse the service recovery paradox. It provides a purpose for service providersto encourage induce a service failure so that hotels can encourage customers tocomplain hence, they can deliver a response that will satisfy their customers. (Stevenson, 1991) stated that customers whocomplain are more likely to use the service in contrast to those customers whoare less likely to complain. For this reason, companies view complaints as a prospectto satisfy unhappy customers, avoid defections and negative word-of-mouthcommunications and lastly retain existing customers which is more costeffective than attracting new customers (Hess at al, 2003).
However, Oliver (1997) states that the service recovery paradox theoryhas been proven unpractical as service failure affects all customers therefore,it would be impossible to provide a service recovery for every customer andtherefore can holds financial constraints – resulting to failure. According toStone (2011) The paradox is rare, therefore can be difficult toanalyse, as the experimental sample size is quite often too small to generateaccountable results. Premier Inn,place their emphasis on convenience as opposed to luxury (Mintel, 2016). Thisreduces the level of expectations customers have off Premier Inn thus, enablesPremier Inn to exceed their service recovery far more easily. In contrast, Hilton are considered a premium,hotel chain who concentrate on luxury (Mintel, 2016). Customers who pay moremoney for a service and in return receive a lower level of service increasesthe probability of customer loyalty reducing. Therefore, an effective servicerecovery does depend on whether the company accepts their service flaws and thelevel of compensation they deliver.
Therefore,Vincent (2007) state that service recovery paradox is only advantageous tocustomers who expect an average level of service. Thissuggests, that Hilton should not ignore the importance of service recovery inenhancing customer loyalty by motivating themselves to go beyond their effortsin service recovery strategies to ensure they retain and enhance their customerloyalty (Smith & Bolton, 1998).