EXPLORING HOW GUESTS’ SATISFACTION AND COMPLAINTS EFFECT ON HOTEL PERFORMANCE

Chieh-Heng Ko

Dept. of Hospitality Management, Da Yeh University, Taiwan, R.O.C.

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Abstract

This paper investigates the effects of two critical customer voice variables on hotel performance. Specifically, the research provides a customer equity model in which the influences of both customer satisfaction and complaints are considered. The impact of the customer voice variables on hotel performance is investigated while considering the potential for moderating effects by hotel size and star rating. We use a more robust approach to measure firm performance than is traditionally used in satisfaction- performance studies. Finally the paper reports on the results of these investigations and outlines implications for both theory and practice.

Keywords: Hotel performance, Customer satisfaction, Customer complaints, Equity model

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