Abstract Satisfying the customer is a never--ending process. The aim of satisfying customers is to retain them, as customer retention directly reflects on the hospitality industry’s profit. Though most businesses have a good coordination between customer satisfaction and customer retention, the rate of retention may be influenced by high market competition, lack of differentiation among services/products, lack of interest among customers about that service-/-product and lack of involvement among customers about that service/product. Thus, going beyond customer satisfaction leads to high customer retention, otherwise called customer loyalty. The success of every organization is underscored by the satisfaction of its customers. This is especially true in the hospitality sector where the success of a company is dependent on its ability to meet its customers’ needs and expectations. This entails that all staff, to avoid trouble-causing potentials, must be well trained in areas where performance has a possibility of falling below expectations. To sustain progress in the hospitality sector, satisfying the customer in all respects must be the prime and essential focus of management. Based on a review of the literature on customer satisfaction, study discusses and examines its benefits in the hospitality industry, factors that influence customer satisfaction, major considerations for improving customer satisfaction and strategies for improved customer satisfaction. Moreover, using Kano’s model of customer satisfaction, the study examines in detail how attributes of customer satisfaction can be divided into three categories: threshold, performance and excitement attributes. These attributes play an important role in encouraging customer satisfaction and loyalty, thereby ensuring the long-term success of a business in the hospitality sector. Key Words: customers, customer satisfaction, customer loyalty, quality service, Kano’s model, threshold, performance and excitement attributes

1. CUSTOMER SATISFACTION
IN HOSPITALITY INDUSTRY
Kefalas Soteris,
Ph.D, MSc, MBA, BSBA

2. COMPONENTS OF STUDY
Introduction
Who Is the Customer?
What Is Satisfaction?
Customer Satisfaction
Customer Satisfaction’ Benefits
Factors Influencing Customer Satisfaction
Major Considerations for Improved Customer Satisfaction
Strategies for Improved Customer Satisfaction
Customer Loyalty
Customer Satisfaction Increases Customer Loyalty
Customer Satisfaction and Quality Service
Conclusion
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3. INTRODUCTION
Satisfying the customer is a never--ending
process.
The ultimate aim of satisfying customers is
to retain them, because customer
retention directly reflects on the hospitality
industry’s profit.
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4. CUSTOMER
is the person for whom all facilities and
activities have been designed and carried
out.
is the specific recipient of the hospitality
services who also acts as judge with
respect to the quality of the product and
service provided.
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5. SATISFACTION
Satisfaction is
primarily an emotional
condition
And secondly a
rational assessment
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6. SATISFACTION
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the two combined in
different proportions
to produce an amalgam
of subjective factors

7. WHAT IS CUSTOMER
SATISFACTION?
Interaction of customers’ personal
standards, education, culture experience
with the characteristics and qualities of the
product or service
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8. CUSTOMER SATISFACTION
BENEFITS
The hospitality industry strives to be conscious
about customer satisfaction because their
intention is not only to send the customer away
happy but also to have them come back and
utilize the product or service again.
Thus, satisfying the customer in all respects has
to be the prime focus of the hospitality industry
and has become highly essential to
improvement of the business.
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9. FACTORS INFLUENCING
CUSTOMER SATISFACTION
Three factors that drive guest
satisfaction and loyalty:
Trust
Transparency
Togetherness
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10. MAJOR CONSIDERATIONS FOR IMPROVED
CUSTOMER SATISFACTION
 Measuring the loyalty and satisfaction of the
customer
 Linking the goals, strategies and vision of the
company or organization, so as to be more focused on
the customer
 Authorizing and completing the improvement projects
 Setting up metrics for employee recognition and
rewards
 Managing these activities with proper program
management techniques
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11. STRATEGIES FOR IMPROVED CUSTOMER
SATISFACTION (4C’s)
1. Communication – talking to customers will help
them to express their opinions
2. Cost to satisfy needs – the additional cost spent to
acquire the satisfaction of customers is generally
not high compared to the cost of providing basic
service
3. Customer needs – guest/customer needs have to
be met and their satisfaction has to be maintained
4. Convenience – making the service more
accountable, so that the customer will voice his or
her concerns
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12. CUSTOMER LOYALTY
 Richard (1996) defines customer loyalty as “A
deeply held commitment to re-buy or re-
patronize a preferred product or service
consistently in the future despite situational
influences and marketing efforts having the
potential to cause switching behavior”.
 Customer loyalty pays the hotel industry in terms
of value, word of mouth recommendation, and
frequent visits to the hotel and price insensitive
purchase.
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13. CUSTOMER SATISFACTION
INCREASES CUSTOMER LOYALTY
 The ultimate aim of satisfying customers is to retain
them, because customer retention directly reflects on
the hospitality industry’s profit.
 The understanding of the correlation between
customer satisfaction and loyalty has led to the need
for improved service/business performance.
 Customer satisfaction is considered to be at the heart
of customer retention and hence customer
satisfaction has to be improved.
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14. FACTORS THAT AFFECT THE
LOYALTY OF CUSTOMERS
Customer satisfaction and service quality
The brand name or image of the
hospitality industry
Customer’s value towards a company
Differentiable services
Being accustomed to a hospitality industry
Competitive market conditions
Rewarding the customers
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15. CUSTOMER SATISFACTION AND
SERVICE QUALITY
Service quality and customer satisfaction play a
crucial role in the success of any business.
These concepts have been under research for
quite some time and are associated with the
behaviors of the customer, like purchase choice,
loyalty intention, spreading positive word of
mouth and, intention of complaint and referrals
(Olsen, 2002; Kang, Nobuyuki & Herbert, 2004).
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16. CONCLUSION
Due to increasing competition in the hospitality industry,
it is essential the prime focus is customer loyalty and
customer satisfaction to ensure repeat customers.
Accommodating customer’s expectations and desires
are the strongest business generators and the means to
ensure customer retention.
At a time of increased competitiveness, the hospitality
industry should be prepared to make changes that take
into consideration customer satisfaction, thereby fulfilling
customer’s needs and desires.
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17. THANK YOU