Bachelors thesis

2.4 Significance of service levels with increasing hotel profitability
Hotel industry managers consider that business can make their profits by satisfying customers. Most of the empirical evidence showed that only customer satisfaction does not guarantee you that satisfied customer will retained with you or will avail your services again. It is only the buyer loyalty that is significantly vital than customer satisfaction for business success. Whereas the business image is also an imperative consideration that may be optimistically or negatively influence the marketing activities. Zeithaml and Bitner (1996) explained brand image, the ability to persuade the customer's perception of the goods or services offered. The brand image of the hotel industry is independent of the traveler's market, that's why the hotel image is placed as an important factor among customer loyalty (Heung et al., 1996). For this reason, this point to that good image directed to customer satisfaction and unfavorable image leads to dissatisfaction.
High levels of profitability, sales, and market share are all indicators of a business's success, and these metrics are always predicated on the loyalty of its customers, which comes from their high levels of happiness, which suggests that the service has exceeded their expectations. In other words, the only method to achieve business success in the competitive market is to provide outstanding service quality that exceeds the expectations of the customers ( Zaharia et al., 2014).
According to Semant Singh Chauhan, (Dec 4, 2022) relation between Service quality and Profitability: Better service quality leads to higher profitability as it will lead to better consumer loyalty, better company image, and more business from consumers.
According to Luchin N.A., high-quality provision of services and, as a result, the efficient functioning of the hospitality sector, its improvement is the key to the development of the modern economy.
2.5 Methods for assessing the quality of service
According to L.S. Morozov and Zemsky A.A. ( 2017), the quality of service at the enterprises of the hospitality industry is a set of consumer properties provided by hotel services, which reflects the satisfaction of the personal needs of customers both in the service process and in the production of this service.The following human and technological factors influencing customer satisfaction have been identified by analyzing the operation of hotel-type enterprises and the experience of world-class hotels, which are depicted in the Ishikawa Cause-and-Effect Diagram (Fig. 1).


Figure 1- Diagram of Ishikawa. Factors affecting customer satisfaction.
Source: Morozova Lubov, Zemskova Anastasiya, (2017).