Factors Affecting Customer Satisfaction in the Hotel Industry.

Factors Affecting Customer Satisfaction in the Hotel Industry. A Case Study of Panari Hotel, Nairobi, Kenya

By Gichuru Golda Ngend’o (AF/HPM-2-0051-12) & John Kahuthu Gitau

It is vital for all organizations especially those in the service sector to realize that without customers, their establishments would not be able to continue existing. The hotel industry which is a service industry has become globally competitive due to destination growth. Due to the stiff competition, it is therefore important to create awareness of the products offered at the destinations and deliver promises so as to keep customers happy and satisfied. This is because happy customers are likely to come back for more services and even more likely to bring potential customers to the establishments. Therefore it is important that hotel organizations satisfy current customers by understanding their needs as this may act as a costless strategy for generating new business. The current study sought to determine factors affecting customer satisfaction in the hospitality industry and specifically the effects of service quality on customer satisfaction. In line with this, the study examines employee service recovery affecting customer trust and determines the effect customer satisfaction has on customer loyalty. The study adopts a descriptive research design approach targets the hotel customers. Employing stratified sampling technique and using questionnaires, data were collected and analyzed using descriptive statistics. The findings of the study trust and satisfaction between the customers and the organization improves loyalty levels and enlarges customer base. It is apparent from the study findings that communication is the major factor that loads heavily on customer loyalty and therefore have a significant influence on loyalty. In the light of these findings, the study recommends that management need to invest heavily in developing appropriate core values and facilitate trainings that can help include honesty and professionalism. There is need to implement processes and systems that enhance the quality of customer service as well handle their complaints efficiently.