Service Quality, Satisfaction, and Loyalty in Homestays in Da Lat City, Vietnam

Abstract

This empirical study aims to identify and evaluate the crucial factors that influence customer satisfaction and loyalty in homestays in Da Lat City. The research utilizes the SERVQUAL framework, and related research suggests seven factors: responsiveness, assurance, empathy, tangibles, satisfaction, and loyalty. A PLS-SEM structural model is used to test hypotheses by evaluating data from 250 residents of Ho Chi Minh City. The finding points out that adolescents’ loyalty to homestay services in Da Lat is stimulated directly by empathy and satisfaction and indirectly by responsiveness and assurance. Meanwhile, young people’s satisfaction with homestay service is affected by 4 out of 5 factors: responsiveness, assurance, empathy, and tangibles. This study provides insights into homestay services and the key elements influencing young customers’ satisfaction levels toward loyalty to the homestay. Homestay managers should use this model approach to restructure and improve their homestay services to meet the demands and desires of their target clients in a competitive marketplace.