Impact of Service Quality on Customer Satisfaction and Customer Loyalty in the Hotel Industry (original) (raw)
Related papers
This paper aims to investigate the direct and indirect effects of service quality and customer satisfaction on customer loyalty in the hotel service industry. It proposes to confirm a theoretical model which has not been identified in the literature within the spectrum of the hotel industry in Indonesia. A quantitative methodology was used in this study. 182 respondents of hotel customers in Indonesia were used to gather information about their perception of service quality, customer loyalty and satisfaction. PLS-SEM was used to analyse the collected data and to specify the Structural Equation Modelling (SEM) of the hypothesised model. The results revealed that SERVQUAL affects positively on customer satisfaction and customer loyalty. Similarly, the testing showed the positive effect of customer satisfaction on customer loyalty. A significant mediation effect of customer satisfaction was found on the relationship between SERVQUAL and customer loyalty. Therefore, the proposed model helps the hotel operator in developing their customer service development program to enhance customer's satisfaction and loyalty to increase the profitability of the industry. This research contributes to hotel service industry by confirming the proposed structural model and offering insights about the customer perception, which helps hotel operators to more successfully incorporate the service quality to build customer loyalty and achieve customer satisfaction.
Impact of Service Quality on Customer Satisfaction in Hotel Industry
Customer satisfaction means that how the customer perceives service delivery. That customer satisfaction is a function of service performance relative to the customer expectation. For this reason, it is important to understand how customer expectation is formed in order to identify the factors of service satisfaction in the hotel industry. As different customers have different expectations, based on their knowledge of a product or service . This can be implied that a customer may estimate what the service performance will be or may think what the performance ought to be. If the service performance meets or exceeds customers' expectation, the customers will be satisfied. Previous research explored customer satisfaction regarding the service quality of all areas in the hotel so that the hotel can assess the customer perception. This study identified five factors of service quality by focusing on the front office staff only, and explored the customers' expectations and perception levels of these services. The results of this quantitative assessment of service quality might provide some insights into how customers rate the service quality and assessed customers' satisfactions.
Relationship between Service Quality and Customer Satisfaction in Hotel Industry
TRJ Tourism Research Journal
In the competitive hotel industry, individual hotels find ways to be unique to make their products and services shine amongst others. Hotels do not leave any stone unturned to deliver best of the services to magnetize the customers. Therefore, the purpose of this review paper is to study whether high level of quality service actually leads to satisfied customers and makes them loyal towards a particular hotel brand. Further, the study intends to explore whether SERVQUAL model is applicable for the hotels to satisfy their customers. Papers related to service quality and customer satisfaction were reviewed from the online database. This paper contributes to the existing literature to explore the relationship between service quality and customer satisfaction and suggests that SERVQUAL method can be applied to the hotel industry to measure the customer satisfaction on the basis of five factors known as assurance, empathy, reliability, and tangibility, which will further lead the hotelie...
Impact of hotel service quality on the loyalty of customers
The hotel business is rapidly developing due to growing demand for such services as well as the growing opportunities for travel. As a result, hotels face demanding customers, since the requirements for quality grow with an increased use of hotels' services, in order to increase the competitive ability of a hotel, the issue of customer loyalty is also important. The aim of this article is to assess the impact of the quality of hotel services on the loyalty of customers. In the article the original created methodology SERQUALOYL is presented, where two methodologies were adapted: SERQUAL methodology used in the research of service quality, and the methodology for the determination of customer's loyalty level stage, applied in loyalty research. The results of research have revealed that the conformity of expected quality with the quality experienced has a significant influence on the customer's loyalty. The hotels, in order to increase the competitive ability and to obtain a higher number of loyal customers, should firstly make the expectations of customers coincide with the offered service quality.
Hotel Service Quality: The Impact of Service Quality on Customer Satisfaction in Hospitality
Hospitality industry is a billion dollars industry, which includes many activities, from which main is hotel business, tourism services, event planning and transportation. This industry is a quick growing industry, where main factors are service quality and customer satisfaction. No any hospitality industry property will not survive if they are not oriented on their consumers, notably, to meet their needs, requirements and expectations, so that the image of the company will enhance. The hospitality industry faces with different difficulties than organizations which produce products due to the dissimilar nature of service in comparison with a product. In service industry there is a greater probability to fail, rather than in product sales. Service quality has been revealed as a key factor in search for sustainable competitive advantage. Satisfying and retaining customer has been recognized as an important factor in hospitality industry. Nowadays like never before, fulfilling consumers' requests remains the greatest challenge. In the hospitality industry, the consumer is not only the part of the actual consumption process, but moreover often has preset service and quality perspectives. Today's hospitality industry customer is increasing time poor, more sophisticated and more demanding. The main purpose of this study is to reveal the impact of service quality on customer satisfaction. The findings of the study will show influence of different service quality dimensions on satisfaction level in Hotels. A quantitative method used to analyze this study. A random sampling method used to distribute and gather data. 111 participants were involved in this study. This study proved that four of service quality dimensions (empathy, responsiveness, assurance and tangible) have positive relation with customer satisfaction, except reliability had negative relation with customer satisfaction.
Measuring the Relationship Between Service Quality and Customer Satisfaction in the Hotel Industry
International Journal of Scientific and Research Publications (IJSRP), 2021
with the development of hotel sector, service quality and customer satisfaction have become the core tools for gaining a competitive advantage, since they are the prerequisites for customer loyalty and higher profitability. Therefore, this study is based on SERVQUAL scale to measure the relationship between service quality and customer satisfaction from the perception of hotel guests in Changsha city, Yuelu District. By using a convenience sampling method, the questionnaire was distributed to 200 respondents in 6 hotels. However, data was collected from 167 completed questionnaires. The data were analyzed by Statistical Package for Social Sciences (SPSS) version 25 and Smart PLS 3. Reliability and validities of latent variables were confirmed. In this study, structural equation modeling (SEM) was used to investigate the relationship between five exogenous variables namely; tangibility, reliability, responsiveness, assurance, and empathy, and an endogenous variable that is customer satisfaction. The findings revealed that all five dimensions of service quality have a positive relationship with customer satisfaction. It also showed that assurance has the most significant factor by hotel customers. This was followed by empathy and then responsiveness while tangibility and reliability as two service quality dimensions have no significant impact on customer satisfaction. This study advances our understanding of the relationship between service quality and customer satisfaction in the hotel industry. Hotel managers can gain benefits by understanding how service quality can achieve a high degree of customer satisfaction, and thus leads to hotel profitability.
Greener Journal of Business and Management Studies
In this present milieu, the need to improve service quality and customer satisfaction is considered substantial due to stiff competition between businesses. Service quality and customer satisfaction can easily define organisational success. The study scrutinises the relationship between hotel rating and the customer outcomes; service quality and customer satisfaction. In this research paper, the quantitative research approach was used. A total of 60 hotel guests were taken as respondents for each of the selected hotels. The data was collected through questionnaires with structured questions. Perceived service quality and customer satisfaction levels were recorded highest for Rainbow Hotel (5 star), followed by Holiday Inn Hotel (4 star) and then Crown Plaza Hotel (3 star). This implies a positive relationship between hotel ratings the customer outcomes. It is judicious to believe that upgrading service quality increase customer satisfaction and ultimately results in improved hotel ratings.
This study aimed at identifying the determining factors of service quality on customer satisfaction and loyalty towards hotel industry in UAE. This study has investigated the different dimensions of service quality that impact customer satisfaction and customer loyalty in UAE hotels. For this research, primary data were used to identify the dimensions of service quality that impact customer satisfaction and customer loyalty. The use of primary data enabled the researcher to measure all the dimensions. This study is significant in the sense that it will allow the understanding of the concept and framework of the impact of service quality on customer satisfaction and customer loyalty that takes into account the comparative nature with conventional business. This will also support and enrich theory and model of service quality in UAE’s business environment. Finally, this will generate greater awareness among UAE hotel industry on the importance of service quality and its effectiveness. Moreover, systematically reviewing the customers’ feedbacks, decision makers might examine all the important aspects in order to determine the most appropriate decisions and actions to satisfy the customers with an aim to retain them. Hence, the deliberate structure of the management process will force hotel employees to examine relevant variables in deciding what to do and how to do it. In conclusion No doubt UAE is one of the leading countries in hotel industry but still there is lack and gap which they need to fulfil by doing many workshop as well as by proper training to the employee which will result in achieving customer satisfaction.
Impact of Service Quality on Customer Loyalty in the Hotel Industry: An Empirical Study from Ghana
The hotel industry contributes significantly to Ghana's development. However, they face the challenge of meeting and exceeding their customers' expectations through high quality service delivery in order to ensure customer loyalty which is the bedrock of any business. The study investigates how service quality impacts customer loyalty in Golden Tulip, a 4-star hotel; Miklin Hotel, a 3-star hotel and Lizzie's Hotel, a 2-star hotel in Kumasi, a leading city in Ghana. 50 customers seeking lodging and boarding services were randomly selected and 5 staff members were purposively selected from each hotel for the study. By use of the SERVQUAL model through survey questionnaire and interviews, the study reveals that customer satisfaction is not based solely on the rankings/classification of the hotels but on service quality that gives value for money which in turn produces customer loyalty. Miklin Hotel produced most satisfied and loyal customers, followed by Golden Tulip Hotel and then Lizzie's Hotel contrary to the classification order. In addition to "responsiveness" service quality variable for Miklin, "empathy" and "assurance" variables made significant impact on customer loyalty for guests from Miklin and Golden Tulip hotels, while "reliability" accounts for the loyalty of guests from Lizzie's Hotel. This confirms the direct relationship between customer satisfaction and loyalty. "Tangibility" does not play any significant role in developing customer loyalty for all the hotels because the guests were least satisfied with it and are likely to take it for granted in their quest for change. The study recommends that hotel classification should not be based mainly on the tangible factors alone but rather on comprehensive service that provide value for money and impact on customer loyalty.