The Impact of Service Quality on Customer Satisfaction at 5-Star Hotels in Central Jakarta

Abstract

The challenges faced by the hospitality industry differ from those encountered by organizations producing tangible products, primarily due to the distinct nature of services compared to products. In the service industry, the risk of failure is higher than in product sales, and service quality has emerged as a critical factor in the pursuit of sustainable competitive advantage. Ensuring customer satisfaction and retention is recognized as pivotal within the hospitality sector, where meeting evolving consumer demands is an ongoing challenge. In the hospitality industry, consumers not only participate in the consumption process but often come with predetermined service and quality expectations. Today's hospitality industry customers are more discerning, and exhibit higher expectations. The primary objective of this study is to elucidate the impact of service quality on customer satisfaction, specifically within the context of hotels, we conduct a comprehensive analysis of the data to identify which service quality dimensions have the greatest and least impact, as well as to understand the nature of their influence. This research uses a quantitative method for analysis, with a non-probability sampling approach to collect and gather data from 190 participants. This research findings reveal a positive correlation between five service quality dimensions (empathy, reliability, responsiveness, assurance, and tangibility) and customer satisfaction. The analysis of respondent feedback reveals that the service quality dimension in 5-Star Hotels in Central Jakarta exerting the most significant impact on customer satisfaction is empathy. Data collection in this research utilized a Likert scale questionnaire, and analysis was conducted using SmartPLS 4.0.