PurposeThis study aims to determine similarities and differences in business travellers' expectations and managers' perceptions of the service provided by guest houses.Design/methodology/approachTwo questionnaires with seven‐point Likert scales were used to measure travellers' expectations of guest house service and managers' perceptions of these expectations. Data was analysed using Statistica Version 6.1 by employing factor analysis and ANOVA tests.FindingsBusiness travellers deemed secure parking and the professionalism of staff as the most important attributes, while guest house managers thought it would be friendliness of front desk staff and efficient handling of complaints. Both groups indicated that cleanliness of rooms and services performed by staff adequately the first time, were of particular importance. The importance rating of the different service dimensions was not significantly influenced by the business travellers' gender, managerial position, nights of stay or by the guest house grading. Managers mostly overestimated guests' expectations.Research limitations/implicationsThe limitation of the study is the relatively small sample used (50 guest house managers and 300 business travellers within one city). Future research needs to examine a broader sample of guest house managers and could compare the expectations of different types of guests.Practical implicationsIt is worth noting that guest house managers had overestimated the expectations of business travellers regarding the service provided. Management should focus on service dimensions important to guests and not those based on own opinions.Originality/valueAn understanding of business travellers' expectations could lead to their needs being more closely addressed and satisfaction levels being raised.