Total quality management and business excellence in services: the implications of all-inclusive pricing system on internal pricing system on internal and external customer satisfaction in the Turkish tourism market

Abstract

This study explores the influence of an all-inclusive pricing system on Total Quality Management and Business Excellence in the Turkish tourism market, from both employee and customer satisfaction perspectives, within the framework of the Business Excellence (Kanji, 1998) and SERVQUAL (Parasuraman et al., 1988) models. Based on key informant interviews with tour operators and hotel managers, as well as surveys of employees and interviews with customers at four- and five-star hotels, this study establishes that, if not wisely administered, the adoption of an all-inclusive pricing system may lead to a decline in employee satisfaction, customer perception of overall service quality, and finally, in customer satisfaction.