Service Quality Dimensions and Their Influence on Customer Satisfaction in Mid-Level Hotels (3 Stars): Evidence from Arusha, Tanzania

Abstract

This study examined the relationship between service quality and customer satisfaction in selected three-star hotels in Arusha City, Tanzania. Guided by the SERVQUAL model, the study explored five key dimensions of service quality: tangibility, reliability, responsiveness, assurance, and empathy to determine their influence on customer satisfaction. A quantitative research approach was adopted, involving a structured questionnaire administered to a sample of 81 hotel guests. Descriptive statistics, correlation analysis, and factor analysis were used to analyze the data. The findings revealed that customers generally perceived service quality in Arusha’s 3-star hotels positively, with tangibility scoring the highest mean, indicating strong appreciation for visual and physical aspects of service delivery. However, correlation results showed that responsiveness (r = 0.876), empathy (r = 0.866), and assurance (r = 0.862) had the strongest and most significant relationships with customer satisfaction (p < 0.01), suggesting that interpersonal and emotional service components are the most influential in shaping guest experiences. Factor analysis confirmed that all five SERVQUAL dimensions load onto a single component, accounting for 69.78% of the total variance, supporting the concept that customers perceive service quality holistically. The study concludes that in order to enhance customer satisfaction, hotel managers must not only maintain high-quality physical facilities but also prioritize staff responsiveness, personalized attention, and trust-building behaviors. Recommendations include targeted employee training, improved service accessibility for disabled guests, and strengthening of complaint handling systems. The study contributes to the existing literature by addressing a contextual gap in East African hospitality research, specifically within mid-tier hotels.