Determinants of Customer Satisfaction toward Hotel Industry in Europe: Interaction effect of Demographic Characteristics

Abstract

Research Question: The study investigates the factors influencing customer satisfaction in the European hotel industry. Moreover, the study will investigate the interaction effects of satisfaction toward different hotel attributes and demographic characteristics on overall satisfaction in the hotel industry. Motivation: Most studies conducted on visitor satisfaction in the hotel industry of Europe have not focused on the interaction effects of satisfaction toward specific hotel attributes and demographic characteristics of the tourists on overall hotel satisfaction. Pragmatic managerial implications are possible with the findings of such interaction effects. Idea: The core idea is to examine factors influencing customer satisfaction in Europe's hotel industry. The impact of interaction effects between factors related to hotel and demographic characteristics of the customers on customer satisfaction will also be investigated. Data: Secondary data have been collected from the Kaggle website consisting of 100 thousand customer data on hotel satisfaction. Tools: Logistic regression analysis, VIF testing, and descriptive statistics were conducted using R software. Findings: The results of the study confirm that Common Room Entertainment, Stay Comfort, Check-in and Check-out services, Cleanliness, and Departure/Arrival Convenience can make significant positive contributions to customer satisfaction. Hotel location has a significant positive effect on tourist satisfaction in the male tourist segment. The hotel location also positively affects tourist satisfaction when the tourists make personal travelling rather than group travelling. Contribution: This study has been conducted on a large sample to generalize the findings related to factors that contribute to visitor satisfaction in the European hotel industry. The interaction effects of demographic characteristics of the visitors have also been investigated.