European Journal of Management and Marketing Studies ISSN: 2501 - 9988 ISSN-L: 2501 - 9988 Available on-line at: http://www.oapub.org/soc Volume 2 │ Issue 4 │ 2017 doi: 10.5281/zenodo.1066572 SERVICE QUALITY, CUSTOMER SATISFACTION AND CUSTOMER LOYALTY OF THE HOTEL INDUSTRY IN UNITED ARAB EMIRATES (UAE): A MEASUREMENT MODEL Hassan Abbas Dost Mohamadi, Mohd Shukri Ab Yazid, Ali Khatibi, S. M. Ferdous Azam Graduate School of Management, Faculty of Business Management and Professional Studies, Management and Science University (MSU), Section 13, 40100 Shah Alam, Selangor, Malaysia Abstract: This study aimed at identifying the determining factors of service quality on customer satisfaction and loyalty towards hotel industry in UAE. This study has investigated the different dimensions of service quality that impact customer satisfaction and customer loyalty in UAE hotels. For this research, primary data were used to identify the dimensions of service quality that impact customer satisfaction and customer loyalty. The use of primary data enabled the researcher to measure all the dimensions. This study is significant in the sense that it will allow the understanding of the concept and framework of the impact of service quality on customer satisfaction and customer loyalty that takes into account the comparative nature with conventional business. This will also support and enrich theory and model of service quality in UAE’s business environment. Finally, this will generate greater awareness among UAE hotel industry on the importance of service quality and its effectiveness. Moreover, systematically reviewing the customers’ feedbacks, decision makers might examine all the important aspects in order to determine the most appropriate decisions and actions to satisfy the customers with an aim to retain them. Hence, the deliberate structure of the management process will force hotel employees to examine relevant variables in Copyright © The Author(s). All Rights Reserved. © 2015 – 2017 Open Access Publishing Group 1 Hassan Abbas Dost Mohamad, Mohd Shukri Ab Yazid, Ali Khatibi, S. M. Ferdous Azam SERVICE QUALITY, CUSTOMER SATISFACTION AND CUSTOMER LOYALTY OF THE HOTEL INDUSTRY IN UNITED ARAB EMIRATES (UAE): A MEASUREMENT MODEL deciding what to do and how to do it. In conclusion No doubt UAE is one of the leading countries in hotel industry but still there is lack and gap which they need to fulfil by doing many workshop as well as by proper training to the employee which will result in achieving customer satisfaction. Keywords: tangible, reliability, responsiveness, assurance, empathy, service quality, customer satisfaction, customer loyalty, UAE 1. Introduction In the past decade, tourism has contributed significantly to the economic development of a large number of Asian countries including UAE, Singapore, Indonesia, Thailand, Hong Kong, Vietnam, Cambodia, Philippines, India, UAE, and Middle East. Due to this growth in the tourism industry, the need for development of adequate hotels and infrastructure has also increased (Wu, Liao, Hung & Ho, 2012). On the other hand, service quality has been gathering a lot attention from the researchers because it is very important for a firm’s bottom line. Although they a number of service quality models, the SERVQUAL is by far the most popular and most tested model. Many researchers agree that customers have expectations and they use their expectations to evaluate the performance of a service. However, not all researchers agree that expectations should be included as a determinant of service quality. This disagreement resulted in two conflicting school of taught (Robledo, 2001). The study of service quality has gained much interest among the researchers in recent decades (Parasuraman, Zeithaml & Berry, 1988; Zeithaml, Berry & Parasuraman, 1996; Baker & Crompton, 2000; Huseyin, Salime-Smachi & Turan, 2005). Though, there are a good number of studies on customer satisfaction and service quality can be found in the academic literature (e.g. Allred & Adams, 2000; Al-Tamimi & Al-Amiri, 2003; Fornell, 1992; Gilbert, Veloutsou, Goode & Moutinho, 2014; Hossain, 2010; Mohsan, Nawaz & Khan, 2011; Oliva, Oliver & McMillan, 1992; Spreng & Mackoy, 1996), however, most of these studies are on the overall service industry. Hence, studies on the hotel industry which is also a part of the service industry have remained limited (e.g. Al Khattab & Aldehayyat, 2011; Andaleeb & Conway, 2006; Briggsa, Sutherlanda & Drummond, 2007; Crick & Spencer, 2011; Getty & Getty, 2003; Maria & Serrat, 2011; Mohsin & Lockyer, 2010). Therefore, this study aimed at identifying the determining factors of service quality on customer satisfaction and loyalty towards hotel industry in UAE. European Journal of Management and Marketing Studies - Volume 2 │ Issue 4 │ 2017 2 Hassan Abbas Dost Mohamad, Mohd Shukri Ab Yazid, Ali Khatibi, S. M. Ferdous Azam SERVICE QUALITY, CUSTOMER SATISFACTION AND CUSTOMER LOYALTY OF THE HOTEL INDUSTRY IN UNITED ARAB EMIRATES (UAE): A MEASUREMENT MODEL Hotels of all types and sizes continually face changing situations (Boon-itt & Rompho, 2012). These changes may be minor or significant, but there is an urgent need to cope with changes. Being able to cope effectively with these uncertainties in the external and internal environments and achieve expected levels of performance is a real challenge. By systematically reviewing the customers’ feedbacks, decision makers might examine all the important aspects in order to determine the most appropriate decisions and actions to satisfy the customers with an aim to retain them. Hence, the deliberate structure of the management process forces hotel employees to examine relevant variables in deciding what to do and how to do it. Thus, based on the problem statement and the background of the research, this study will examine the impact of service quality on customer satisfaction and customer loyalty in the UAE hotel industry. This study is designed to investigate the different dimensions of service quality that impact customer satisfaction and customer loyalty in UAE hotels. This study is important from several aspects of academic, governmental; society and the business sector themselves. Academically, this study will contribute towards increased knowledge. The findings from this study will also draw the basis and as starting point of reference to other researcher or be practiced by organizations. From the government perspective, since the UAE government aimed to improve the economic from the hospitality sector, this study will help to achieve UAE’s development plans in increasing management and employee’s commitment and performance in UAE hotel industry sector and other UAE organizations. For viewing / downloading the full article, please access the following link: https://oapub.org/soc/index.php/EJMMS/article/view/264 . European Journal of Management and Marketing Studies - Volume 2 │ Issue 4 │ 2017 3