SERVICE QUALITY AND CUSTOMER SATISFACTION: THE CASE OF FIVE STAR HOTELS IN ADDIS ABABA, ETHIOPIA

Simachew Alemneh; Hailemariam Gebremichael

Volume : VII, Issue : VIII, August - 2018

SERVICE QUALITY AND CUSTOMER SATISFACTION: THE CASE OF FIVE STAR HOTELS IN ADDIS ABABA, ETHIOPIA

Simachew Alemneh, Hailemariam Gebremichael

Abstract :

Service Quality is the cornerstone for success of any business and perceived as a key factor in acquiring and sustaining competitive advantage.This study attempts to measure service quality and customer satisfaction of five star hotels in Ethiopia. A 26–items Lodging Quality Index scale measuring of five basic dimensions, i.e., tangibility, reliability, responsiveness, confidence and communication of service quality was used to understand the service quality of five star hotels in Ethiopia.Descriptive research design was used to analyze the data collected through questionnaire from a sample of 330 international and local customers. Respondents were selected using simple random sampling technique and hotels were selected purposively. Data collected through questionnaire were analyzed using statistical tools such as range, mean, frequency and standard deviation.The major finding of the study indicates that the hotel customers’ perception with regard to five service quality dimensions is below customer expectations.On average, the performance gaps of the hotels with regard to tangibility, reliability, responsiveness, confidence and communication features are 0.25, 0.26, 0.47, 0.22, and 0.20 respectively. The overall satisfaction of customers in the hotel’s service is found to be above a moderate level (3.85) of satisfaction. Based on the findings of the study, the researcher recommended that the top management needs to improve quality services so as to meet customer’s expectations, and should hire self–motivated, enthusiastic employees who will like to deal with customer and would try to solve customer complaints and other issues in an effective manner. All stakeholders (government body, customers, employee, hotel owners, suppliers and others) should work together for better service quality and customer satisfaction.Conclusively, the study proves that all five star hotels in Ethiopia under the present study found are providing their services below their customer expectations.