The Impact of Hotel Service Encounters on Behavioral Outcomes: The Moderating Effect of Hotel Star Rating

Abstract

This study investigates the impact of hotel service encounters on guests’ behavioral outcomes in 5 and 4-star hotels. It also examines the mediating effect of perceived value and satisfaction on the relationship between service encounters and guests’ loyalty. In addition, it investigates the moderating effect of hotel star ratings on the relationship between the study constructs. The study reveals that hotel service encounters significantly impact perceived value but not satisfaction. The hotel staff rather than the atmospherics is an antecedent of loyalty. At the same time, the perceived value of a hotel is an antecedent of satisfaction and loyalty. Meanwhile, it confirms the mediation of perceived value and satisfaction and a hotel’s star rating as a moderator. It finds that the hotel star rating moderates the impact of hotel staff on perceived value, satisfaction, and loyalty as it is more robust for 5-star hotels than for 4-star. The theoretical and managerial implications of these findings have also been discussed.

Keywords: Service encounters, atmospherics perceived, value hotels, satisfaction, loyalty