Impactof Service Quality on Business Performance Evidence from Pakistan Hotel Industry

Abstract

This study was conducted to examine the impact of service quality on business
performance evidence from Pakistan Hotel industry. Service quality was measured based on
SERVQUAL model and the questionnaire was developed for the collection of data. A total of 650
questionnaires were distributed amongst the targeted participants and 583 questionnaires were
received back completed in all respect. Validity and reliability tests were conducted. After the
confirmation of the data reliability and validity, the CFA was applied to the data, and model
fitness was found good fitted followed by regression assumptions also found within the acceptable
range. Regression analysis was conducted to evaluate the relationship between service quality
and business performance. The result indicates service quality has a significant positive effect on
business performance. The findings of the study have found consistent with the previous study of
Shah et al., (2018). Based on study findings it is recommended that the hotel industry in Pakistan
focus on innovation and improvement in order to provide quality service to enhance business
performance. Further suggest that the hotel industry must work on reducing operating costs by
offering online booking, customer care, and cab services and train employees accordingly to
provide attentive and responsive quality services to enhance business performance. It is
suggested that a national-level research study or research project is required to be conducted on
the hotel industry consider the large scale/population and other variables.