An Examination of Customer Satisfaction and Loyalty in Star Rated Hotels of Delhi

The hotel industry in Delhi is experiencing rapid growth, driven by an increase in tourist activities and supportive government policies aimed at boosting tourism for both economic and cultural benefits. New hotels and international chains are actively competing for a larger share of the market. Given the highly competitive nature of the industry, hotels must employ innovative strategies to remain competitive. Since hotels provide both tangible and intangible services, managers need to focus on enhancing the service environment the intangible aspects of hotel service delivery to differentiate their offerings from competitors, ensuring customer loyalty and sustained competitiveness. This study examines customer satisfaction and loyalty towards hotels in Delhi. Utilizing a cross-sectional survey design and convenient sampling techniques, questionnaires were distributed to 275 customers of 3 to 5 star hotels in Delhi. Data were analysed using descriptive statistics and regression analysis. The findings revealed high scores for equipment, services, and lighting elements of the service environment, while lower scores were observed for entertainment and music, furnishing, weather and hygiene cleanliness, and customer service. Additionally, the study established a strong relationship between customer satisfaction and customer loyalty.