THE EFFECT OF SERVICE QUALITY ON CUSTOMER SATISFACTION (IN SELECTED FOUR STAR HOTELS IN ADDIS ABABA)

Abstract

The Tourism and hospitality industry investment is rapidly increasing in Ethiopia. A reflection is the establishment of many modern Hotels, Lodges, Resorts, Safaris and other recreational spots had grownon vast amount in the capital of Addis Ababa, Ethiopia. Pursuing this progress the number of tourists, business colleagues and different international customers’ traveling to Ethiopia. The effect of hotel service quality on customer satisfaction needs to examine. The main objective of this research is to examine the effect of service quality and customer satisfaction of four star hotels in Addis Ababa. To achieve this objective, descriptive study design were used to analyze the data collected through questionnaire from a sample of 384 hotel guests. These respondents were selected using Convenience sampling method and hotels were selected purposively. The data collected through a questionnaire were analyzed using statistical tools such as mean, standard deviation, correlation and regression analysis by applying a modified version of the LQI (LODGING QUALITY INDEX) model. The major finding of the study indicates that the hotel guests’ were not satisfied on the provided service by four star hotels in Addis Ababa. Based on the findings of the study, the researcher recommended that the owners and to level managements like operation and human resource managers are advised to implement and apply the standard operation procedures {SOP} guide lines to improve the quality service to be provided by the hotel. So the operation and human resource managers should give attention on the SOP guideline by giving training and giving the guidelines to the employees, because employees are the first contact personnel with the customer to provide a service so the top level managers should emphasize on the guidelines weather applied or not because it’s a blue print for providing a quality service and a means of giving customer satisfaction. In addition, the top level managers are recommended to provide continuous training to the employees on major keys like Responsiveness, Reliable, Confidence and communication skills while dealing with customers is of immense importance.