Sustainability in Accommodation Service Industry: The Role of Quality and Value

Abstract

Hotel industry as a provider of tourist accommodation is an essential pillar of the tourism industry. This study is designed to identify how non-star budget accommodation industry sustain its business, through providing service that enables to satisfy and make loyal their customers. Referring to the existing literature, three predictors included in the model of developing guest loyalty, i.e. service quality, service value, and customer satisfaction. Data were collected from 298 domestic tourists in five tourism destinations in West Java; there are Cianjur, Cirebon, Bandung, Sukabumi, and Ciamis. The findings indicate that tourists tend not loyal to budget accommodation because of the service quality that they received does not meet their expectations. Similarly, tourists’ perception on the perceived value and level of satisfaction are not as customer expected. In terms of how domestic tourist develop loyalty, the result confirms that service quality and perceived value are important determinants of tourist satisfaction and loyalty. Thus, it is suggested that creating a high service quality and value are imperative for the non-star hotel industry to develop its sustainable business.