Customer Expectations vs. Perceptions of Service Quality in Arusha’s Three-Star Hotels: A Quantitative SERVQUAL Analysis

The quality of service in the hospitality industry is central to customer satisfaction, loyalty, and long-term competitiveness. This study assessed the gap between guest expectations and perceptions of service quality in selected three-star hotels in Arusha City, Tanzania, using the SERVQUAL model. As a key tourism and diplomatic hub, Arusha attracts diverse clientele, making service delivery critical for hotel success. Cross-sectional design was employed, involving 57 guests from ten three-star hotels. Data were gathered through a structured questionnaire with 22 paired items across five service dimensions: tangibility, reliability, responsiveness, assurance, and empathy. The tool demonstrated high internal reliability (Cronbach’s alpha = 0.868). Results indicated a negative gap across all dimensions, with the largest shortfalls in tangibility (-0.22), assurance (-0.16), and responsiveness (-0.14). The overall average SERVQUAL gap was -0.13, reflecting moderate underperformance. Empathy recorded the smallest gap (-0.02), suggesting stronger delivery in personalized service. The demographic profile revealed a predominantly male, well-educated clientele, mostly under 45 years of age. The study concludes that service quality in Arusha’s three-star hotels falls short of guest expectations, particularly in facilities, staff competence, and responsiveness. Targeted investment in infrastructure, training, and operational consistency is recommended to enhance satisfaction and competitiveness.