Abstract
In the service industry, one of the main challenges is to provide customer satisfaction. Though the number of budget hotel in Bangladesh is increasing, but customer satisfaction of these hotels are still ignored. The aim of the study is to identify the determinants that satisfy the customers in these hotels. The research targeted a total of 350 selected respondents from different budget hotels in Bangladesh. The descriptive analyses were conducted by using Amos SPSS 24. Findings reveal that price is the ultimate preference for budget hotels along with products and service quality for satisfying customers. Customers are unconcerned with the services provided by the hotel staff and the location of the hotel as well.
Highlights
Tourism has emerged as a major contributor to the economy of the nation, as many new destinations have opened, and investment in tourism development has resulted in socioeconomic progress, job creation and infrastructure development
Several methods can be applied for measuring convergent and discriminant validity: factor analysis, correlation, and confirmatory factor analysis (CFA) (Confirmatory Factor Analysis) existing in SEM (Structural Equation Modelling)
H1: The results show that the correlation between the product or accommodation in a budget hotel and the customer satisfaction was significantly positive (0. 11; 2.54, p < 0.011), providing support for H1
Summary
Tourism has emerged as a major contributor to the economy of the nation, as many new destinations have opened, and investment in tourism development has resulted in socioeconomic progress, job creation and infrastructure development. There is a shift in concentration in the last several years from luxury to midmarket budget hotels with respect to service quality and customer loyalty. This trend has created a new opportunity for the development of the hospitality industry (Hospitality India, 2014). Travel and Tourism’s contribution to total national investment will rise from 1.5% in 2014 to 1.6% in 2024 (Sanjay & Mallika, 2015)
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