Organizational Climate, Perceived Customer Satisfaction, and Revenue per Available Room in Four- and Five-Star Australian Hotels

Organizational climate, customer satisfaction (as rated by employees), and revenue per available room (REVPAR) were investigated using 1401 employees of 14 hotels. Twenty-two percent of the variance in customer satisfaction between hotels was explained by differences in global organizational climate. Strong support was found for a model proposing seven dimensions of organizational climate to significantly affect customer satisfaction that would, in turn, significantly affect REVPAR. The dimensions of organizational climate explained 30% of the variance in customer satisfaction between hotels, and 23% of the variance in REVPAR between hotels was explained by customer satisfaction. It is argued that should employee perceptions not provide a valid measure of customer satisfaction, and are simply the result of employees in better organizational climates rating customer satisfaction more highly, one must still conclude 23% of the variation in REVPAR between hotels to be the result of variation in organizational climate.