Abstract
Sustainability of hotel’s performance can be determined by service quality, satisfaction and customer loyalty. The level of customer satisfaction can be increased if hotels offer good quality performance, and so it can retain customers to stay in a hotel. Thus, this research aims to identify and explain the influence of service quality for customer loyalty and test the effect of customer satisfaction mediation for the relationship between service quality and customer loyalty in the room division of the hotel. This research was conducted at hotel industries in Dili. Respondents for this research were their customers, and research instruments were questionnaires adopted from previous researches, and SMART-PLS 3.0 was used to test the hypothesis. This research shows that service quality and customer satisfaction are not significant to influence customer loyalty in the room division of hotels in Dili. Moreover, customer satisfaction does not have the effect of mediation for the relationship between service quality and customer loyalty. This research can contribute to enrich the theory and empirical about service quality, customer satisfaction, and customer loyalty. In a practical level, this research can help hotel managers to develop their strategies in order to retain their customers through good service quality. This research can also help the government to aquire data on the level of customer satisfaction for the service quality of hotels in Timor-Leste, and so can develop the policy of human capital training to improve service quality in hotels and other service industries
Highlights
Nowadays the intensity of competition in the hotel sector is increasing
T value is bigger than 1.96, and P value is smaller than 0.05. This shows that service quality influences customer satisfaction significantly
This means that the tangible dimension, reliability, responsibility, assurance and empathy have positive and significant influence for customer satisfaction which is reflected by individuals, facilities, prices and service quality in room division of the hotels
Summary
Nowadays the intensity of competition in the hotel sector is increasing. The growing number of hotels threatens the economic sustainability of the sector. Hotels can remain competitive and sustainable (Tongshinen, Alam ai and Chinyere, 2018) by improving their service quality (Gupta et al, 2019). Service quality is the difference between customers’ expectations and experience of a service (Annamdevula and Bellamkonda, 2016; Spyridou, 2017). Customer satisfaction is an evaluation from customers about a product/service according to their expectations or positive responses towards a product/service (Parasuraman, Zeithaml and Berry, 1994). Customer satisfaction becomes a key factor to increase the attainment of a product/service (Meesala and Paul, 2018) because the quality of a product and service for products/services are based on the expectations of customers (Mbama and Ezepue, 2018)
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