Service Quality and Customer Satisfaction in UK Hospitality Sector

This report delves into the critical relationship between service quality and customer satisfaction within the UK hospitality sector, with a specific focus on Air BNB. The study explores the impact of service quality on customer loyalty and satisfaction, analyzing factors such as room quality, location, booking ease, and customer service efficiency. Through literature review, research methods, and data analysis, the report identifies the importance of service quality in ensuring customer retention and positive business outcomes. The research addresses gaps in existing literature by investigating how service quality influences customer footfall at accommodation providers like Air BNB in the UK. Findings are discussed and analyzed, leading to recommendations for hospitality businesses, including Air BNB, to enhance service quality and improve customer satisfaction and loyalty. The report highlights how businesses can meet customer expectations and ensure long-term success.

Running head: SERVICE QUALITY AND CUSTOMER SATISFACTION
Service Quality and Customer Satisfaction
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Chapter 1 - Introduction...........................................................................................................2
1.1. Background Overview: About Service Quality and Customer Satisfaction in the
Hospitality Sector in the UK........................................................................................................3
1.2. Problem Statement............................................................................................................5
1.3. Research Aims and Objectives.........................................................................................5
1.4. Research Questions...........................................................................................................6
1.5. Research Hypothesis.........................................................................................................6
2. Review of Literature.................................................................................................................8
2.1. Gaps in the Review of Literature....................................................................................14
3. Chapter 3 – Research Methods...............................................................................................15
3.1. Research Philosophy.......................................................................................................15
3.2. Research Design..............................................................................................................16
3.3. Data Collection...............................................................................................................16
3.4. Analysis of the Data........................................................................................................17
3.5. Sample Size and Sampling Technique............................................................................17
3.6. Ethical Factors for Consideration...................................................................................17
3.7. Limitations of the Study..................................................................................................19
3.8. Purpose of the Study.......................................................................................................19
4. Chapter 4 – Discussion and Analysis.....................................................................................20

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4.1. Findings of the Study......................................................................................................20
4.2. Discussion.......................................................................................................................28
4.3. Analysis...........................................................................................................................30
4.3.1. Service Quality has a Positive Impact on Customer Loyalty and Satisfaction...........30
4.3.2. Importance of Service Quality for Customer Loyalty and Satisfaction in the
Hospitality Industry...................................................................................................................31
4.3.3. Service Quality impacts Customer Satisfaction and Loyalty for Air BNB Customers
in the UK....................................................................................................................................32
4.3.3.1. Good Quality of the Rooms.....................................................................................32
4.3.3.2. Strategic Location of the Air BNB Homes and Apartments...................................33
4.3.3.3. Easy Booking Facilities...........................................................................................34
4.3.3.4. Efficient Customer Care Services............................................................................34
5. Chapter 5 – Conclusion and Recommendations.....................................................................36
5.1. Recommendations...........................................................................................................37
References and Bibliography.........................................................................................................41

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1. Chapter 1 - Introduction
Ensuring customer satisfaction is paramount for any business enterprise, if it seeks to
ensure customer retention and that too, over the long term (Nunkoo et al. 2019). It is the goal and
objective of every business, be it a large-scale business or a small or medium sized enterprise, to
ensure that customers are fully satisfied and content with the products or services that they have
been sold, as this can ensure that the customers will return again in the future to purchase those
same or related products as offered by that business or at the very least, recommend the business
and its products and services to people they know (Myo et al. 2019). One of the most crucial
ways by which businesses seek to ensure that their customers are as satisfied as possible with the
services they are provided or the products that they are sold is to look into the quality of such
items (Gerdt et al. 2019). Customers are likely to make a repeated purchase of an item if the
quality of the same meets the necessary standards and helps the customer to meet the objectives
or purpose for which that product or service had been procured in the first place. In the
hospitality industry in particular, ensuring service quality is of the utmost importance as this is
what really decides whether or not clients or customers are likely to endorse a certain hotel,
restaurant or guest house, or whether they are likely to criticize it to the extent that it would make
existing and prospective customers never want to have anything to do with that business again
(Thaw and Zulkiffi 2019). Hospitality entrepreneurs and managers need to go out of their way to
make sure that customers are happy with the services that they provided so that they may
generate positive feedback about the same, ensuring good reputation and good business for the
concerned enterprises for a long span of time (Gerdt et al. 2019). This assignment investigates
how service quality plays an important role in ensuring customer satisfaction in the hospitality

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industry with special reference to Air BNB in the UK. The research objectives and aims as well
as the research questions are quite clearly stated, existing literature on the subject of hospitality
and customer satisfaction has been reviewed, the research methods are aptly described, the
findings of the study are discussed and analyzed and the project report concludes with a number
of important recommendations that hospitality enterprises including Air BNB can take into
consideration to ensure service quality and customer satisfaction in the most effective way
possible.
1.1. Background Overview: About Service Quality and Customer
Satisfaction in the Hospitality Sector in the UK
The extent to which customers derive happiness from an existing product or service
depends a lot on the quality of this product or service. A product or service of high quality is
generally something that is free of defects and which is guaranteed to ensure long lasting service
or which can be used over a long period of time without showing any wear or tear or issue
(Nunkoo et al. 2019). When it comes to services in particular, high quality services are generally
those that are rendered in a timely manner, ensuring comfort and relaxation and convenience for
the person who is availing the service. The hospitality industry is one that is based on the
provision of comfort services to customers be it in the form of food, accommodation, taxi or cab
service or all the three put together (Eshetie et al. 2016). People working in the hospitality
industry have to ensure that customers are not given the scope to complain about the services that
they are provided with, as if this does turn out to be the case, the concerned customer may
generate a negative review or comment about the service quality of the hospitality business,
publishing this on platforms that are likely to be accessed by people around the world, and
resulting in negative publicity about the business (Eshetie et al. 2016). In most cases, the

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dissatisfaction of a customer when seen to arise in the domain of hospitality is compensated for
through the provision of deals and discounts on future services or by providing customers with
an outright refund for the inconvenience caused, which in turn leads to a lot of financial loss for
the hospitality business. Hence to ensure customer satisfaction through the provision of high
quality services is something that is imperative for all enterprises, especially those that are seen
to function in the hospitality sector (Myo et al. 2019).
The hospitality industry or sector has been undergoing an immense transformation in
recent years, all over the year, and the United Kingdom is no exception. The hospitality scene is
characterized by revolutionary changes, with hotels and guest houses and even hostels for that
matter, not being of the same type and design that they were before (Gerdt et al. 2019). The
hospitality sector today is also characterized by the emergence of novel forms of
accommodation, a well-known example in this respect being that of Air BNB. Air BNB is a
business that allows customers to avail home stays, putting them up at lavishly decorated and
furnished homes or apartments, and charging them a fee that is far less than what customers
would have to pay had they put up at a regular hotel or a guest house (Thaw and Zulkiffi 2019).
There is a catch here of course. Air BNB does not provide the same services that a hotel does. It
does not offer house-keeping facilities, nor does it offer room service or in room dining or
wakeup call services for that matter. Customers simply get to book the accommodation, and are
provide with certain rooms, or an entire house or apartment for their stay, depending on their
accommodation needs and requirements (Myo et al. 2019). The fact that Air BNB allows
customers to avail comfortable, clean and well-furnished accommodation at cost-effective rates
has led travelers around the world to make more extensive use of Air BNB services in the place
of hotels and guest houses, especially budget travelers and backpackers (Myo et al. 2019).

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Air BNB has been functioning in the United Kingdom for quite some time now and has
managed to acquire a name for itself over here. The United Kingdom is one of the most popular
travel destinations in the world and it receives travelers from all corners of the globe, all around
the year, for business and for leisure (Gerdt et al. 2019). Air BNB is seen to run its operations
across the length and breadth of all the three countries that fall within the purview of the United
Kingdom be it England, Wales or Scotland, with customer footfall being quite high in the
summer months, the summer being a peak business season for the travel, tourism and hospitality
industry (Gerdt et al. 2019).
1.2. Problem Statement
Existing literature on the subject of service quality has a lot to say about how service
quality is vital for all businesses, and how it needs to be ensured at all cost. The literature does
not however point out to the ways by which service quality can specifically influence or have an
impact on the satisfaction that is experienced by customers and that too in the hospitality
industry in the UK. Neither does the literature mention anything about how service quality
maybe influencing customer footfall, if at all, at accommodation destinations like Air BNB in the
UK. This gap in the literature will be adequately addressed in the current investigation that is
being undertaken on the subject.
1.3. Research Aims and Objectives
The main objectives and aims of this project happen to be as follows -
 To assess the importance of service quality in ensuring customer satisfaction and loyalty
 To understand how service quality influences customer loyalty and satisfaction in the
hospitality industry

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 To determine the ways by which service quality impacts customer loyalty and customer
satisfaction for customers who avail Air BNB services in the UK
 To recommend the ways by which Air BNB and other hospitality businesses in the UK
can look into the matter of service quality, to ensure customer satisfaction and loyalty
over the long term
1.4. Research Questions
The primary questions that are to be addressed by this study are as follows –
RQ 1 – What is the important role that is played by service quality in ensuring customer
satisfaction and loyalty?
RQ 2 – How does service quality influence customer satisfaction and loyalty in the hospitality
industry?
RQ 3 – What are the ways by which service quality can have an impact on customer loyalty and
customer satisfaction for customers who are seen to avail Air BNB services in the UK?
RQ 4- What are the measures that can be taken by Air BNB and other hospitality businesses in
the UK for looking into the matter of service quality in order to ensure customer satisfaction and
customer loyalty in the long term?
1.5. Research Hypothesis
The research hypothesis for testing is as follows –
Hypothesis 1 – Service quality has an impact on customer satisfaction and customer loyalty in
the hospitality sector in the UK

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Hypothesis 2 – Service quality has no impact on customer satisfaction and customer loyalty in
the hospitality sector in the UK

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2. Review of Literature
Oh and Kim (2017) have undertaken research on the subject of service quality and customer
satisfaction, arguing that the provision of quality services can have a serious and definite impact
on how happy customers are with the services they are provided. The research has been
undertaken in the context of the tourism industry, and an attempt has been made on the part of
the researchers to compare customers who have not received quality services with those who
have. In the process of doing so, the researchers have pointed out to the crucial important of
service quality and the need to look into this aspect by businesses. In the view of Oh and Kim
(2017) a business has to make the concerted effort that is necessary to engage in the retention of
customers and this in their opinion is by no means an easy job to perform. The tastes and
expectations of customers are seen to vary quite greatly depending on the age of the customer
and the nature of the travel that they appear to be undertaking. According to Oh and Kim (2017)
with respect to the tourism industry in particular, preferences and needs are evolving on a
continuous basis and it is necessary for businesses to keep up with the latest trends. Only then, as
argued by Oh and Kim (2017) can businesses do a successful job of meeting the needs and
requirements of customers and in the process, ensure customer satisfaction and even loyalty.
Minh et al. (2016) have studied the relationship that is seen to exist between customer
satisfaction, customer loyalty and service quality with the study being carried out in the context
of the retail banking sector in the country of Vietnam. Service quality as argued by Minh et al.
(2016) is something that businesses definitely need to look into if they want to establish
competitive advantage or a competitive edge over their rivals in the industry. It is stated by the
researchers that aspects such as the quick and timely turnaround of customer requests and

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demands and the provision of accurate services are what can go a long way in ensuring customer
satisfaction with services that are provided in the retail banking sector. This in turn is something
that will mediate the level of customer loyalty that is shown to the services that are offered by the
retail banking sector in Vietnam. According to Minh et al. (2016), the more satisfied customers
are, the more likely will they be to make use of banking services. Dissatisfied customers may
refrain from patronizing the bank any further and in the worst case scenario they may decide to
close their accounts with the bank. This is not something that any bank or financial institution
can afford, especially on a large scale, which is why argue Minh et al. (2016), it necessary for
banking officials to ensure the provision of quality and timely services for the benefit of
customers. This will have a deciding role to play in ensuring customer loyalty and customer
retention by the bank.
Farooq et al. (2017) have conducted detailed and systematic research on the impact that
service quality can have on the matter of customer satisfaction with special reference to
Malaysian Airlines, the national carrier of the country of Malaysia. It is quantitative research that
has been carried out on the part of the researchers with a number of structural models being used
to assess and investigate the subject matter. The results of the study reveal that performance of
airline staff and the rendition of airline services in general have an invariable impact on how
happy and satisfied that the customers are with the services that they are offered. Most of the
respondents who were subjected to analysis demonstrated that their level of satisfaction with
services offered by Malaysian Airlines were based on how timely the flights were, and the
quality of the inflight services that were made available to them. In conclusion, it is argued by
Farooq et al. (2017) that Airline officials have to take all the steps that are necessary to look into
the wellbeing of passengers not only when they are inside of the aircraft and when the flight is in

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progress but also at the time that they are waiting to board a flight, in the airport, or when they
have landed at their desired destination and are waiting for their baggage and other essentials to
arrive. They also state that the varied dimensions or aspects of service quality need to be taken
note of by airlines officials in order for them to be able to address the matter in the best possible
way.
Hapsari et al. (2016) have conducted research on the mediating role that can be played by
perceived value when it comes to the relationship that is seen to exist between customer
satisfaction and service quality. The study has been undertaken with reference to the case of
Indonesian Airlines. It is argued by Hapsari et al. (2016), that the airline industry in the
Southeast Asian region as a whole is one that is characterized by a great deal of competition.
There is plenty of rivalry in this domain and airline companies need to keep up with the latest
trends in customer satisfaction and care in order to be ahead in the game and the same holds true
for an airline company as well-known as Indonesian Airlines. According to Hapsari et al. (2016),
it is imperative for a company like Indonesian Airlines to look into the matter of service quality,
so that customers are fully content and satisfied with the onboard and off-board services that they
are offered by the company. By making sure of the fact that customers are served their meals and
other essential items on board at the right time, by ensuring that the flights are comfortable and
relaxing and that they take off on time as well, the company can go a long way in keeping its
clients happy and ensuring their satisfaction for as long as possible.
The behavioral intentions of transit passenger and the extent to which this is influenced
by the services that are offered by airlines companies has been researched upon by Ona et al.
(2015). In the view of the researchers, transit passengers are capable of behavior well or
abominably during the course of their transit and both service quality as well as customer

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satisfaction come to exercise quite a significant influence on the transit behavior of passengers.
According to Ona et al. (2015), airline companies that are seen to play a role in ensuring
customer satisfaction and which actively go out of their way to look into their wellbeing are
companies that are likely to influence positive behavior among customers while they are seen to
wait in transit. Such passengers are not likely to complain too much and they are also likely to be
quite well behaved in the entire course of the transit. On the other hand, airline companies that
do not make any attempt to look into the wellbeing of their customers and which keep their
customers waiting for a long time in order to get their queries resolved and their questions
answered, are likely to invite aggressive and bad behavior from their customers while the transit
period is in progress. It is therefore crucial as argued by Ona et al. (2015), for customers to be
appeased by airline companies, that is, companies that offer long distance travel, and whose
customers are expected to remain in transit for a considerable period of time, be it for a few
hours or a whole day.
The role that service quality has to play in ensuring customer satisfaction with respect to the
hospitality industry in particular is something that has been researched upon by Eshetie et al.
(2016). The study has been undertaken in the context of a few hotels that are located in a place
known as Jimma Town in the African country of Ethiopia. It is argued by Eshetie et al. (2016)
that the hotel industry in Jimma Town is highly competitive and hotels and guest houses really
need to go out of their way here to make their services stand out in comparison to those that are
offered by their rivals and competitors. It has been found by the researchers that hotels which are
able to offer timely and quality services, hotels where breakfast and lunch and dinner are served
on time, where the food quality is good and where amenities like fitness centers and wireless
internet are available, are hotels that are doing far better than those who do not offer such

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amenities or who do offer these amenities but are not able to maintain the standard of the same.
It is thus concluded by Eshetie et al. (2016) that hotels must ensure service quality in order to
ensure in turn, the satisfaction of customers, which in turn will help them to retain customers for
as long a period as possible.
Nunkoo et al. (2016) have conducted research on how the star ratings of hotels can serve
as an indicator of the quality of services that they have to offer and the impact that services
offered at such hotels can have on the satisfaction levels as experienced by their customers. The
type of quality standards that have to be adhered to by the owners and managers of hotels is
something that is influenced to a considerable extent by the star ratings of that particular hotel.
For instance, it is argued by Nunkoo et al. (2016) that star ratings of hotels dictate the type of
amenities and services that the hotels are to offer. Three star hotels for instance are expected to
look into the safety and security of customers at the very least, in addition to providing basic
food and lodging services. Hotels that come with four star and five star ratings are those that are
expected to provide their customers with a wide range of amenities. The level of customer
satisfaction is definitely influenced by the star rating of the hotel as argued by Nunkoo et al.
(2016). Customers staying in a five star hotel will not expect anything less than whatever it is
that a five star hotel is to provide them with. On the other hand, customers who put up at a three
star hotel are likely to expect only the minimum in order to be satisfied and will not expect the
quality standards that have to be adhered to by a five star hotel.
Myo et al. (2019) have undertaken detailed research on how customer loyalty and customer
satisfaction can both be influenced by service quality, with the research being carried out in the
context of Myanmar. A number of customer loyalty theories have been put to the test on the part
of the researchers, and it has been discovered that customer loyalty is significantly influenced by

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the level and type of service that is meted out to customers by the owners of a business. With
respect to the hospitality business in Myanmar, it is argued by the researchers that hotel operators
in particular have to play a leading role in order to get their businesses to tick. It is the operators
or the managers who have to ensure that the hotel in question is one that is able to provide all the
quality services that are necessary in order for customers to be duly and completely satisfied with
their stay at these hotels. It is only by looking into the care and happiness of customers on a one
to one basis and by ensuring that provisions are made for their stay to be as comfortable as
possible, that a business can do the job of ensuring customer satisfaction and in the bargain they
can influence customer loyalty at the same time. According to Myo et al. (2019) customers who
are happy and content are far likelier to endorse a particular hotel and its services regularly,
compared to customers who are not.
Falindah et al. (2016) have researched specifically on the ways by which hotels can look into
the subject of customer satisfaction, by providing them with access to services and amenities that
can ensure their happiness and contentment in the long run and also in the short term. In the view
of Falindah et al. (2016) the services that are offered by hotels tend to be very different from the
services that are made available by guest houses and other types of boarding and lodging.
Through the provision of timely and quality facilities such as wireless internet, wakeup call
service, in room dining and well-furnished rooms, hotels can have a significant impact on
customer satisfaction and happiness and in the process can influence customer loyalty as well. In
the view of Falindah et al. (2016), the most satisfied customers are those who have truly enjoyed
their stay at the hotel.
Gerdt et al. (2019) have undertaken research to see the role that can be played by
sustainability in ensuring the matter of customer satisfaction. Customers these days tend to

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endorse enterprises that look into the matter of sustainability when conducting business
operations and the hospitality business is no different in this respect. Owing to the general
concern that is seen to prevail around environmental conservation and preservation, it is
necessary for businesses and hotel businesses at that to address the matter of environmental
sustainability in the fullest possible way through the use of right types of furniture and other
arrangements. Only then, as argued by Gerdt et al. (2019) can the hospitality industry do a
suitable job of looking into the wellbeing of its customers, as customers are going to feel
positively inclined in staying at a hotel where environmental conservation is considered to be a
top most priority.
2.1. Gaps in the Review of Literature
The review of literature has shown that plenty of research already exists on how service
quality can have an impact on customer satisfaction as well as on the subject of customer loyalty.
The review also shows that service quality is something that is very important for ensuring
customer satisfaction in certain types of industry such as the aviation industry, as well as in the
hospitality industry, with a lot of examples being provided in this respect from a wide range of
countries around the world, in the Southeast Asian and African continents in particular. The
review of literature has however not addressed the matter of how service quality can influence
customer satisfaction as well as customer loyalty in the hospitality sector of the UK and the case
of Air BNB in particular is not something that has been raised in any of the research works that
have been reviewed. This study will address this gap in the literature by looking at how service
quality and customer satisfaction proves to be important for the hospitality sector in the UK and
how Air BNB and related enterprises can play a role in improving the stay of customers,
ensuring customer satisfaction and loyalty in the process.

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3. Chapter 3 – Research Methods
3.1. Research Philosophy
Research philosophy is a term that describes the theoretical framework using which
research work is undertaken. It specifically designates the concepts and theories that are utilized
to a great extent in order to investigate and analyze the subject matter of study. Research
philosophy is known to be of three types, as used by investigators in various parts of the world,
namely, positivist research philosophy, interpretivist research philosophy and the research
philosophy of realism (Edmonds and Kennedy 2016). Positivist research philosophy is the
theoretical framework that is most commonly used by investigators all over the world and entails
the analysis of available figures, facts and other information on the subject of study.
Interpretivism is a theoretical framework that makes it possible for the person who is undertaking
the investigation to assess and to interpret the many different elements that are unique to the
subject of the investigation. Realism is a theoretical framework that concerns itself mostly with
getting to the root of all the underlying causes behind a certain problem or issue or even
phenomena for that matter that is being researched upon (Edmonds and Kennedy 2016). For this
study on service quality and customer satisfaction in the hospitality industry in the UK, it is
the positivist research philosophy that has been selected as it has allowed the researcher to
analyze in an in-depth manner, all available details or data on the given situation.

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3.2. Research Design
Research design is the scientific outlay or framework that is adopted for undertaking a
study. It is also known to be of three essential types namely, the analytical research design,
known also as the descriptive research design, the exploratory research design and the much
known explanatory research design (Edmonds and Kennedy 2016). The exploratory research
design involves analyzing and investigating a subject matter using a wide array of concepts and
theories that can explain the type of phenomena that is seen to be taking place. The explanatory
research design helps the person undertaking an investigation to understand the many different
variables or the few variables that are being considered for study and it helps the researcher to
understand the specific relationship between the two types of variables (Leavy 2017). The
analytical or descriptive research design is the one that is utilized the most by researchers and it
helps the researcher to analyze and assess the subject of the study from many different angles, in
a descriptive and detailed way, using factual information (Leavy 2017). For this study
therefore, it is the descriptive or analytical research design that has been made use of as it
has helped the researcher to investigate, scrutinize and analyze all the information and
details on the subject of the study in a descriptive and comprehensive way.
3.3. Data Collection
The data for this project has been collected using a mixed research method. The primary
research method of an online survey has been used to collect details about customer feedback
with respect to Air BNB services in the UK. The information that has been collected through the
online survey has been supplemented with secondary information, by referring to quite a few
relevant books and journal articles, that is, articles published in peer reviewed journals, on the
subject of service quality, hospitality and customer satisfaction, in the UK and beyond. The

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secondary sources of study were selected by using popular search engines online such as Google
Scholar and Pro-Quest. The search for articles was carried out first using a number of important
keywords, after which at least 30 articles were chosen, and then these were narrowed down to the
ten or twelve most relevant articles on the subject of the study, reading which could help to
answer many of the questions that have been raised in this research.
3.4. Analysis of the Data
The analysis of data that has been retrieved from the online survey has been first
converted into figures, graphs and diagrams, after which the data has been discussed and
analyzed and put together with the information that has been acquired through the secondary
research. The analysis of the entire data as a whole has been carried out in thematic fashion and
all the key themes that were chosen for analysis are those which are based on the key research
questions that have been mentioned explicitly in Chapter 1 of this dissertation.
3.5. Sample Size and Sampling Technique
The sampling technique used was the convenient and non-probabilistic sampling
technique, with research participants being selected based on how convenient and easy it was to
access them (Levitt et al. 2018). The sample size for this dissertation is made up of 20
participants, with all of the participants having been recent guests at Air BNB homes in London.
The concerned Air BNB authorities were reached out to for facilitating access to the respondent
population.
3.6. Ethical Factors for Consideration
There are quite a few ethical guidelines that have been followed when undertaking this
particular research project, and they are as follows –

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 The online questionnaire was circulated among the members of the respondent
population at a time that was convenient for them (Edmonds and Kennedy 2016).
 The participation was kept voluntary and no attempt was made to coerce the respondent
population into answering the questionnaire. They had the option to do so at a time and
place that was convenient for them and if they did not want to participate, they had the
freedom to opt out (Ibid)
 The outcome or purpose of the study, that is, the reason why it has been conducted and
the ulterior motive that it is going to serve is something that was made known to all the
participants in the study, right at the outset, so that they were in the clear about what was
being done and why it was being done. Every effort has been made by the researcher to
be as open and transparent with the respondent population as possible when it came to
informing them about the scope and purpose of the study and the reasons why their
participation was being sought (Ibid).
 All the questions that have been listed in the online questionnaire are those that are quite
easy to answer. The questions are also all based on the subject of the study and are fully
impersonal in their nature. Questions of a personal nature have been kept out of the
survey altogether (Leavy 2017).
 No attempt has been made by the researcher to politicize the survey. The matter of
personal bias is missing from the survey and every attempt was made to ensure that the
questions posed here are as rational and as objective as possible (Ibid)
 Since there are many secondary sources which have been utilized for writing this
dissertation, the researcher has made sure of the fact that these are all properly cited.

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Duplication of content is an offense, and all steps have been taken to ensure that
duplication of content does not occur at all (Levitt et al. 2018).
 The matter of data protection was looked into in the initial phases of the data collection
process itself. All information acquired through primary and secondary methods, were
stored in a laptop computer, in a separate folder, and a backup of this data was kept in a
USB stick or pen drive (Levitt et al. 2018).
3.7. Limitations of the Study
The study that has been undertaken on the matter of service quality and its impact on
customer satisfaction and customer retention in the hospitality sector in the UK has been faced
with a few restrictions, that have kept this study from being carried out in as foolproof a manner
as desired. The time period allocated for the study was quite limited and neither were there
resources in the form of funding, available for doing the research. It is hoped that with more time
at the disposal of the researcher and with more access to sources of funding, better research can
be undertaken on the subject that will help to address many of the shortcoming that the present
study may be characterized by and which the researcher is apologetic for.
3.8. Purpose of the Study
The purpose of this study is to arrive at an understanding of the many different ways by
which service quality can have an impact on ensuring customer satisfaction and the important
aspect of customer retention in hospitality affairs. It is hoped that the findings of the study will
provide hospitality businesses in the UK, including the likes of Air BNB with a firm
understanding of the role that service quality can play in helping them to retain their customers
and the steps that they need to go about in order to ensure satisfaction of customers at all times.
In the process, it is hoped that the findings of the study will position hospitality businesses in the

21SERVICE QUALITY AND CUSTOMER SATISFACTION
UK with a better understanding about the ways by which customer needs and requirements are
to be adhered to so as to ensure good business growth and development over the long term.
4. Chapter 4 – Discussion and Analysis
4.1. Findings of the Study
The findings of the online questionnaire as circulated among the respondent population,
are indicated below.
The data above shows that a significant portion respondent population tends to prefer Air
BNB as accommodation option when they travel to a certain destination, be it for business or for

22SERVICE QUALITY AND CUSTOMER SATISFACTION
leisure. As much as thirty percent of the participants have indicated through their respondents
that they usually opt to stay at Air BNB when traveling to a place. However, another thirty
percent have indicated through their responses that they rarely stay at Air BNB, indicating,
possibly that their experience with Air BNB is new, and not something that they are accustomed
to. Some of the participants state that they always stay at Air BNB a few have stayed at Air BNB
sometimes, while some of the respondents have never stayed at Air BNB prior to their stay at the
Air BNB in London, from where their details were gathered.
The majority of the respondent population has indicated via their respondents that they
believe that staying at an Air BNB room or home or apartment is far better than staying in a
hotel. This shows that in some or the other way, the guests are very happy with their stay at Air
BNB to the extent that they prefer this over a hotel.

23SERVICE QUALITY AND CUSTOMER SATISFACTION
The above data shows that most of the respondents prefer staying at Air BNB compared
to staying at a guest house, while a significant portion of the respondent population are not sure
about the same. There are some who believe that Air BNB does not match up to the experience
that is offered by a guest house.

24SERVICE QUALITY AND CUSTOMER SATISFACTION
The results above indicate that most of the guests are content with their stay at the Air
BNB’s they put up at in London and what they liked most about their stay was the quality of the
rooms. Around forty percent of the respondent population however states that strategic location
is what made them enjoy their stay with Air BNB while fifteen percent of the participants found
the cost of service to suit their budget, enabling them to enjoy their stay with Air BNB.

25SERVICE QUALITY AND CUSTOMER SATISFACTION
The above responses show that most of the respondents are quite happy with their stay at
Air BNB in London. Some are exceedingly happy and very few are of the opinion that their stay
with Air BNB recently was not something that was up to the mark.

26SERVICE QUALITY AND CUSTOMER SATISFACTION
The data above goes to show that majority of the participants found it easy to book for a
room with Air BNB. Few experienced difficulties in this respect.

27SERVICE QUALITY AND CUSTOMER SATISFACTION
Most of the survey responses also go to show that deals, discounts and offers are indeed
offered by the Air BNB in London and that they were availed by majority of the respondent
population.
The above data clearly shows that most participants in the survey are happy with the
customer support services that are offered by Air BNB, while some are not so sure about this,
and only a few are discontent with the customer support offered by Air BNB.

28SERVICE QUALITY AND CUSTOMER SATISFACTION
The above data has shown that cancelling an Air BNB booking request after placing one
is not a difficult affair. Only a few found the process inconvenient. The major portion of the
respondent population found it easy to cancel a booking.

29SERVICE QUALITY AND CUSTOMER SATISFACTION
The above data is indicative of the fact that most of the research participants, that is,
about sixty percent of the respondent population, is likely to use Air BNB in the future. Around
thirty percent don’t want to stay with Air BNB again while around twenty percent are undecided
about this.
4.2. Discussion
The findings of this study show that Air BNB is a business that is fairly well known among
travelers in London and it is the type of accommodation that is usually opted for by people
looking for boarding and lodging in the city. The results of this study have also shown that there
are many advantages of staying at an Air BNB that leads people to choose this over the
experience of staying at a hotel. To begin with, customers are quite happy with the quality of
rooms that are offered by Air BNB and the cost of service and strategic location of such

30SERVICE QUALITY AND CUSTOMER SATISFACTION
accommodation options are also very well received by the Air BNB customers. The results of the
study also indicating that booking a room with Air BNB and cancelling a booking request can
both be carried out in quite a hassle free manner. The responses that have been provided serve as
an indication of the fact that the booking system that is operated by Air BNB is one that is quite
easy for customers to use and to navigate, and in the event that they want to cancel a reservation,
they are able to do so without trouble, for the most part. The results of the study have shown
additionally that customer services or support services offered by Air BNB are of a good
standard and are approved of and appreciated by the customers of Air BNB. The responses to the
survey questions show that customer support services are up to the mark where Air BNB is
concerned and there are very few who have issues with the customer care executives who are
working on behalf of Air BNB. Furthermore, the results of the study reveal that there are deals
and discounts that are offered by Air BNB, enabling customers to save money on their
accommodation, and which in turn is something that is always likely to be well received by
customers. Finally, the results of this study have shown that customers of Air BNB in London
are most likely to be using the services provided by Air BNB again in the future. Majority of the
respondents have indicated that they will likely use Air BNB again, which shows that they are
pleased overall with their stay and it also shows that the service quality of Air BNB such as room
quality, strategic location, cost effective services, discounts, easy booking services and customer
support all have to play a role in them feeling this way.

31SERVICE QUALITY AND CUSTOMER SATISFACTION
4.3. Analysis
4.3.1. Service Quality has a Positive Impact on Customer Loyalty and
Satisfaction
The results of this study have demonstrated how service quality is something that can
suitably influence the loyalty and the satisfaction that is shown by customers towards a product
or a service. The responses to the questionnaire indicate that the primary reason why people like
using Air BNB services in the UK are because of the quality of the rooms that such places are
seen to offer them. Factors pertaining to service quality such as the strategic location of the
homes and apartments and also the fact that such services are made available at cost effective
rates also appear to be major influencers where customer satisfaction and loyalty are concerned.
The Air BNB customers who were surveyed for this study have indicated through their responses
that they want to come back and perhaps use the Air BNB services again in the future and that
they approve of the quality of the services offered by Air BNB including the customer support
facilities that are provided by this business. That service quality is essential for customer loyalty
and satisfaction is also proven by the fact that the respondent population for the most part, is
quite content with the booking facilities that they were provided with. They found it easy and
convenient to book the Air BNB rooms and there were no difficulties that they were seen to
experience when cancelling rooms either. Customer support services, booking provisions, room
quality and strategic location were also factors that had an impact on the customer satisfaction at
Air BNB and at the end of the survey the majority of the respondent population has stated that
they are likely to use the Air BNB services again in the future. Thus, customer satisfaction is
indeed something that can be looked into when a business ensures the provision of quality
services. If a business goes out of its way to make sure of the fact that the services that are

32SERVICE QUALITY AND CUSTOMER SATISFACTION
provided to a customer are rendered in a timely manner, and in an effective and efficient way,
without any compromise being made in the area of quality, then this is a business that will be
able to retain its customers over the long term instead of short term. Customers are likely to
make their way back to a business and are likely to engage in the purchase of products and
services offered by a business if they are satisfied and content with the quality of the service that
they have been given. Had the room quality of Air BNB accommodation not been up to the
mark, had the rooms not been located so strategically and had the customer support services and
booking options, including the option to cancel a reservation not been as convenient as it turned
out to be, customers may not have been as willing to use Air BNB services again.
4.3.2. Importance of Service Quality for Customer Loyalty and Satisfaction
in the Hospitality Industry
The hospitality industry is one that is seen to stand out from all other industries and as
such caters to the wellbeing of customers in the way that no other business is seen to do. The
hospitality industry is aimed at providing its customers with comfort and relaxation through the
services that they offer. Customer satisfaction is especially important for managers and business
owners operating in the hospitality industry if they want their customers to keep coming back to
them. Every effort needs to be taken by the owners of a hospitality business, be it a restaurant, or
a hotel or a guest house, or an Air BNB franchise holder for that matter, to ensure that customer
needs and requirements are looked into and to make sure of the fact that the food that they have
been served and the rooms that they have been provided for accommodation are comfortable,
and has helped them to get the rest, and happiness that they came for. Room quality and strategic
location of hotels and guest houses is something that is especially important for customer
satisfaction and customer loyalty in the hospitality industry as guests are always going to prefer

33SERVICE QUALITY AND CUSTOMER SATISFACTION
staying at a place where the rooms are well furnished, comfortable and of a high standard and
which are also located in a part of the city or town, which is strategic and which helps them to
navigate back and forth with ease. The customer support that is meted out to customers and the
convenience and the ease that they are offered when it comes to making room reservations or
cancelling a room reservation at the very last minute, also have an impact on how happy and
content customers are with services that they are provided with in the hospitality industry.
The responses that have been provided to the survey questions indicate that Air BNB
services in the UK cater to all of the above which is perhaps why at the end of the survey,
customers indicate that they will be likely to use the Air BNB services again, in the future. The
rooms that they have stayed at have been up to the mark and the customer services and booking
facilities have also been of a top notch standard. The responses have also indicated that effective
pricing and the strategic location of the Air BNB homes have contributed to why they liked
staying at that particular Air BNB. Hence service quality is something that is indeed essential for
businesses that are seen to function in the hospitality sector of any country, including in the
United Kingdom. This is a destination that receives travelers of every budget and category all
around the year, for leisure and for business, hence it is imperative that service quality be looked
into by hospitality businesses here, if they want to satisfy their customers and win their loyalty.
4.3.3. Service Quality impacts Customer Satisfaction and Loyalty for Air
BNB Customers in the UK
4.3.3.1. Good Quality of the Rooms
Service quality is something that is seen to certainly impact customer loyalty and
customer satisfaction for Air BNB customers in the UK as indicated through the various

34SERVICE QUALITY AND CUSTOMER SATISFACTION
responses that have been provided in the survey. For the most part, Air BNB customers are
happy with the quality of the rooms that they have been given at the Air BNB they decided to put
up at. The standard of the rooms has been up to the mark, leading customers to state that they
would prefer staying at an Air BNB in the place of a hotel or a guest house. It has been pointed
out at the start of this dissertation that Air BNB does not cater to its customers in the way that
hospitality businesses like hotels and guest houses are traditionally seen to do. There is no room
service or in-room dining or housekeeping for that matter. Customers are responsible for the
wellbeing and upkeep of the apartments for as long as they stay here. However, the quality of the
rooms, that is, how well furnished these are and how spacious, are looked into by the Air BNB
home owners. The responses provided in the survey indicate that Air BNB homes in the UK are
doing a good job of providing customers with quality rooms at cost effective rates, leading
customers to find contentment with the services that they have been offered,
4.3.3.2. Strategic Location of the Air BNB Homes and Apartments
The strategic location of the Air BNB homes in London as indicated through the responses to
the survey questions have also induced customer satisfaction and loyalty. The customers find the
Air BNB homes to be well located and strategically located at that, which is why they enjoyed
staying at the Air BNB homes in London. Strategic location as mentioned in the previous section
is especially important for the hospitality industry as customers need to be able to stay in a place
that allows them to commute across different parts of the town or city and which helps them to
back again to their rooms, in one peace. Strategic location implies that the accommodation
destinations are well connected by transportation options be it buses, taxis, the subway or the city
railways as these are commonly known.

35SERVICE QUALITY AND CUSTOMER SATISFACTION
4.3.3.3. Easy Booking Facilities
That Air BNB provides good booking facilities is something that is well received by the
customers of Air BNB in the UK at least, if the responses provided to the survey questions are
anything to go by. The customers of Air BNB services in London are quite happy with the fact
that they did not have any difficulty in placing a booking request for rooms and they are also
equally happy that cancellation was done with ease. The fact that Air BNB in the UK with
respect to the city of London in particular, makes this so convenient for customers is something
that contributes to their satisfaction and induces in them a feeling of loyalty, or a desire to
patronize the Air BNB services once again.
4.3.3.4. Efficient Customer Care Services
The survey responses have shown that customers are content with the support services
that have been made available to them by the Air BNB authorities. If a business and that too a
hospitality business has to look into the wellbeing of its customers, then it needs to ensure that
there is a proper customer network that is in place for clients to reach out to in the event of any
difficulty or in the event that they are faced with queries that they would like to get resolved
immediately. Timely and effective customer services can go a long way in getting a client to be
favorably disposed to the business whose services that it has decided to avail. In the context of
Air BNB services in the UK, with reference to the city of London, it can be said that customer
support services are up to the mark and the fact that these are is something that is well received
by the customers of Air BNB in London. They are happy and content with the support services
that they have been provided with and the fact that they have indicated towards the end of the
survey that they are likely to use Air BNB facilities again in the future, implies that this has had

36SERVICE QUALITY AND CUSTOMER SATISFACTION
an influence on their decision to feel this way, over and above factors such as room quality,
strategic location, cost effective pricing, and easy booking and cancellation facilities.
In the final analysis it is the first hypothesis that can be confirmed or validated and that is,
that service quality does indeed have an impact on customer satisfaction and customer loyalty in
the hospitality industry in the UK. Customers are always likely to be well disposed towards a
business if the business goes out of its way to make sure that customers are enjoying the services
that they are provided with. When customers are able to enjoy their services, if they find
comfort, relaxation as well as convenience upon using such services and if they are given the
scope to enjoy services at rates which are highly affordable, then they will certainly endorse that
business for as long as they can. Service quality if of a top notch standard will want to make
customers avail the services of a business regardless of the price, and if the customer support
services in particular and technical aspects of hospitality such as booking or placing reservations
requests and the cancellation of reservation requests, are made easy and convenient for
customers, they are all the more likely to return and endorse that business again, at least one
more time. Indeed the best way to look into the interest of the customers and to have an impact
on their loyalty and patronage is to provide them with services of the best quality, especially in
an industry like the hospitality industry, in the UK which is growing and developing with each
passing day.

37SERVICE QUALITY AND CUSTOMER SATISFACTION
5. Chapter 5 – Conclusion and Recommendations
In conclusion, it may be argued that service quality does indeed have an impact on
customer satisfaction and customer loyalty for a particular enterprise, and this is something that
is seen to hold true for the hospitality sector as well. Customer satisfaction as the results of the
study have shown, as well as the matter of customer loyalty can both be ensured when service
quality is an area that is looked into. Customers are likely to endorse a business and to show
loyalty to a business if they are happy and content with the services that they have availed. The
responses generated to the survey questions show that what customers really enjoyed about
staying at Air BNB in the UK was the fact that the quality of the rooms was of a good standard,
the accommodation destinations were situated in strategic locations and the facility of placing a
booking request for accommodation was something that could be carried out in an easy, efficient
as well as hassle free manner. The study results show that cancelling a booking reservation is
also something that can be done conveniently by customers of Air BNB services in the UK,
notably for those in London and this again is something that makes customers quite pleased with
such services, making them want to avail the same again, in the near or in the distant future.
With regard to Air BNB in particular, it can be stated that the business is doing well in
the UK and that it is doing a good job of meeting the requests and needs of customers. Air BNB
is popular among travelers around the world for a variety of reasons, and in the UK it appears
that customers are willing to endorse Air BNB because of their room quality, proper locations,
good customer support and convenient booking options, over and above the fact that
accommodation can be availed at the most cost effective rates. The results of the study have
shown that customers prefer Air BNB to a hotel and a guest house and that they are mostly

38SERVICE QUALITY AND CUSTOMER SATISFACTION
satisfied with their recent stay with Air BNB in London, the most important factor for their
satisfaction and contentment being room quality and strategic location of the rooms. This along
with the fact that customer support services are of a high standard and the fact that customers can
book a room and cancellation a reservation in a way that is convenient for them goes to show
that Air BNB is doing a good job of keeping its customers happy, making them feel that they
may just endorse the business again in the future. Service quality is thus indeed seen to have a
positive impact on customer satisfaction and customer loyalty in the hospitality sector in the UK,
as evident from the case of Air BNB in the UK.
5.1. Recommendations
There are a number of ways by which Air BNB and related hospitality enterprises in the
UK can ensure better service quality for customers down the line, and position themselves better
in the process to ensure customer satisfaction and loyalty. These are as follows –
 Customers of Air BNB services in the UK should be ensured good security in the homes
and the apartments that they put up at, be it in a metropolitan location like London or
somewhere out in the English countryside (Oh and Kim 2017). Security provisions in the
form of functional CCTV cameras and other types of surveillance measures that can look
into the wellbeing of the guests while they stay at any one of the Air BNB homes and
apartments in the UK, is something that is likely to be well received by customers as
everyone wants to feel safe and secure during their travels. Efforts therefore need to be
made on the part of the Air BNB authorities to step up the security arrangements in
homes and apartments so that customers and their belongings are secure and so that the
possibility of a theft or break-in does not ever arise for Air BNB customers (Felix et al.
2019).

39SERVICE QUALITY AND CUSTOMER SATISFACTION
 Home and apartment owners need to be made more accountable for the wellbeing of
guests, if Air BNB in the UK is to improve upon its service quality. Home and apartment
owners, who lease out their property to Air BNB for business, are people who walk away
with the lion’s share of the profit, and it is expected therefore that such people will look
into the wellbeing of their guests for the length of their stay. However, Air BNB home
owners are seldom seen to be accountable for guest welfare and rarely even engage with
guests during their stay. The accommodation service fee has to be paid at the time of
placing a booking request itself, hence once this is done, Air BNB home owners tend to
not bother much about when their guests arrive and how the quality of their stay turns out
to be. This needs to change and although Air BNB is doing well in the area of quality,
more accountability on the part of home and apartment owners who are a part of the Air
BNB set up can leader to greater levels of customer satisfaction and customer loyalty in
turn, down the line.
 Offering complimentary amenities for guests upon their arrival in the Air BNB homes
and apartments is an effective way by which Air BNB in the UK can improve service
quality and ensure customer satisfaction. For instance, both convenience and value can be
added to the Air BNB service through the provision of free toiletries as well as bathroom
essentials. Guests who travel over long distances will feel especially grateful for the
provision of such essentials as it will enable them to relax and to unwind in the manner
that is needed once they check into their rooms.
 Welcome packs can be designed to look into the needs and requirements of Air BNB
guests in the UK in the best possible way. The welcome pack could contain all the
essential items that guests are likely to be on the lookout for once they check into their

40SERVICE QUALITY AND CUSTOMER SATISFACTION
rooms It could contain delicious snacks, some complimentary chocolates and other useful
items that can enhance their accommodation experience with Air BNB. The best way for
Air BNB to understand what customers would expect in such welcome packs, is to first
determine the requirements and expectations of guests by engaging with them further
through social media (Gong & Yi, 2018).
 Offering entertainment as part of the Air BNB setup is also another way by which service
quality can be improved upon by Air BNB business owners and managers. Those who
put up at the Air BNB homes in the UK would welcome the inclusion of a television set
in their rooms and a music system or DVD player as well, that will allow them to get
entertained. The more entertained guests are, the more likely it is that they are going to
enjoy their stay with Air BNB, regardless of the length of their stay (Kiran and Diljit
2017).
 Customer refunds are an area that needs to be better looked into by the Air BNB officials
in the UK. While the results of this study have shown that customers are indeed quite
content with the cancellation and booking facilities that are offered by Air BNB, ensuring
a shorter turnaround time for customer refunds will position the business to attract the
loyalty of its customers more easily. If customers are granted a quick refund upon a
cancellation, there will prevail a tendency among them to place a booking for the Air
BNB services again in the future, and the near future perhaps (Slack and Singh 2020).
 The type of hosts that are being selected for Air BNB business should be subjected to
greater scrutiny by the Air BNB authorities. While hosts definitely have to be more
accountable for the wellbeing of their guests, care must be taken by Air BNB to ensure
that guests are staying at homes and apartments that are owned by people who do not

41SERVICE QUALITY AND CUSTOMER SATISFACTION
have a criminal record, who have not got into any tiff with the law, and who have the
financial and other resources to provide for guests, ensuring that they are relaxed,
comfortable and happy during their stay with Air BNB. The house quality and apartment
quality should also be subjected to greater scrutiny so that customers can enjoy a truly
rewarding experience when they stay with Air BNB (Nunkoo et al. 2019).
 The problem of guests getting locked out is something that is seen to arise with Air BNB
guests every now and then and it is a matter that is worthy of immediate attention. Efforts
should be made to allow for provisions that will give guests access to a duplicate key
should they not be able to get in touch with their hosts in the situation of a lockout
emergency (Prentice et al. 2020).

42SERVICE QUALITY AND CUSTOMER SATISFACTION
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