Hotel rating system dimensions as determinants of Service expectations and customer satisfaction in Star-Rated Hotels in Selected Cities in Malawi

Abstract

Over the years, countries continue to introduce hotel rating systems to indicate to customers the level of comfort and service quality expected in different hotel categories. Previous studies on conventional hotel rating systems mainly focused on the structures and characteristics of the hotel rating criteria. In 2010, for instance, the Government of Malawi introduced hotel rating system as a mark of quality and an indicator of standard of services offered in hotels as compared to the international ones. However, there is paucity of information on whether customers use the ratings consistent with their expectations and satisfaction levels. Furthermore, little research has empirically investigated the underlying relationship between hotel rating system dimensions and customer satisfaction. Hence, the objective of this study was to establish the effect of the basic registration standard and grading standard as dimensions of hotel rating system on service expectations and customer satisfaction. The study was anchored on Stimuli-Organism-Response (S-O-R) and Servicescape theories. It was hypothesised that there is a relationship between hotel rating system dimensions, service expectations and customer satisfaction. Using an explanatory and descriptive survey design and pragmatist paradigm, the study focused on 11 star-rated hotels in Lilongwe and Blantyre cities in Malawi and targeted 225 hotel guests, 11 hotel managers and 8 hotel grading assessors. A total of 216 respondents comprising of 203 hotel guests, 10 hotel managers and 3 assessors, participated in the study. Multiple sampling techniques were adopted, whereby, census sampling was used to select the star rated hotels and managers, and simple random sampling and convenience sampling techniques were used to select hotel guests and the assessors respectively. Data was collected using self-administered questionnaires for the hotel guests and semi-structured interviews for managers and assessors. The data collected from the hotel guests was analysed with the help of Statistical Package for Social Sciences (SPSS 20.0) alongside Analysis of Moment Structures (AMOS 22.0). Structural Equation Modelling (SEM) was used to establish the relationships between hotel rating system dimensions, service expectations and customer satisfaction as latent variables of the hypothesised model. The underlying model factor structure was established using a unidimensionality test. Model fit indices of the structural model revealed that the model was perfect (χ 2 /df = 1.524; GFI = .958; CFI = .986; RMSEA = .043, p> 0.05). Furthermore, both the basic registration standard and the grading standard were found to significantly affect customer satisfaction (β= 0.356; t=4.000; p<0.05); (β = 0.434; t=3.280; p<0.05), respectively. Grading standard was found to significantly affect service expectations (β= 0.817; t=6.633; p<0.05). However, basic registration standard did not significantly affect service expectations (β = 0.061; t=0.471; p>0.05). Moreover, the research findings revealed both the basic registration standard and grading standard accounted for 86% (R 2 = .86) of the proportion of variance in customer satisfaction. The study concluded that both basic registration standard and grading standard are determinants of customer satisfaction in star rated hotels in Malawi; with grading standard being a more powerful determinant of both service expectations and customer satisfaction. The study provides a missing link in the presumed relationship existing between hotel rating systems, service expectations and customer satisfaction, thereby, contributing to knowledge on the importance of hotel rating systems and relationships they share with service expectations and customer satisfaction. Hence, hotel managers need to allocate adequate resources and dedicate efforts to improving hotel rating system dimensions on regular basis for they provide an array of attributes that hotels use to enhance customer satisfaction. Future research should investigate various star rated serviced accommodation countrywide to minimise generalisability concerns related to the findings.