SERVICE QUALITY STANDARDS AND THEIR IMPACT ON CUSTOMER SATISFACTION AND LOYALTY IN THE HOSPITALITY INDUSTRY

PDF (Українська)

Keywords

quality
satisfaction
loyalty
satisfaction index
hotel
restaurant

How to Cite

Sherstiuk, R., Stoyko, I., & Sheveliuk, M. (2025). SERVICE QUALITY STANDARDS AND THEIR IMPACT ON CUSTOMER SATISFACTION AND LOYALTY IN THE HOSPITALITY INDUSTRY. Tourism and Hospitality Industry in Central and Eastern Europe, (13), 62-71. https://doi.org/10.32782/tourismhospcee-13-9

Abstract

The purpose of this study was to determine the impact of service quality, hotel or restaurant image, and customer-perceived values on customer satisfaction and loyalty to the establishment. Guests have a wide choice of services in different locations, and competition among hospitality establishments is increasing. The article explores and outlines a sequence of service delivery events that are largely interconnected and include service quality, guest satisfaction with these services, which in turn affect consumer loyalty, and appealing to customer loyalty is key to increasing profits and the survival of a hotel in this highly competitive environment. So, the question arises: how exactly does high service quality increase customer satisfaction and loyalty? That is, how does a business's concern for service quality really affect customer satisfaction and loyalty? Separate studies by scientists, business professionals, and consulting companies on this topic are analyzed. It was established that if the quality of service proportionally affects customer satisfaction, then the impact of quality on customer loyalty can have a certain correlation effect, very dependent on the business itself, industry, region of relations, etc. The study adapted an empirical method for analyzing a hotel and restaurant complex using the A. Parasuraman, V.A. Zeithaml, L.L. Berry model and its five main aspects (tangibility, reliability, responsiveness, confidence and empathy), using the SERVQUAL and RATER methods and justifications based on the CSAT, NPS, CES indices. The conducted qualitative research includes 1825 customer reviews of the Avalon Palace hotel and restaurant complex, a new hotel and restaurant complex located in the heart of Ternopil and its business life. The analysis of 25 elements (parameters) that characterize the services provided by this complex confirms that there is no direct correlation between customer satisfaction and their loyalty and provides an opportunity to take timely measures to improve the user experience and reduce customer churn.

https://doi.org/10.32782/tourismhospcee-13-9
PDF (Українська)

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