Impact of Service Quality on Customer Satisfaction in Hotel Industry of Pakistan

Abstract

The hotel industry in Pakistan is in the growth stage whereas domestic tourists have the tendency to move across the country more often. With increase local tourists, hotel managements are striving to sustain growing competition. To survive, hotel managers across the country try to provide high quality services to the guests for a better service experience and customer satisfaction. The research explores the impact of service quality on customer satisfaction in the hotel industry of Pakistan. It is quite unique in nature since not much research is done on hotel industry of Pakistan in this context. From previous studies it is found that service quality is further expanded into different using SERVQUAL and LQI models. The five service dimensions are tangibility, reliability, responsiveness, confidence and communication which are statistically tested on gauging customer satisfaction which is found from the responses taken from five different cities of Pakistan including Islamabad, Karachi, Lahore, Peshawar and Quetta. The research findings are derived from using SPSS tool in correlation and regression analysis is done to gauge the impact of each of the service dimensions as well as overall service quality on customer satisfaction. It was found that service quality does impact customer satisfaction and each of the dimensions were found to be positively impacting customer satisfaction whereas reliability effected more than other service dimensions. In the end conclusions, recommendations and limitations are derived after analyzing the research outcomes.