Research on Impact of Economy Hotel Service Quality on Customer Satisfaction and Customer Loyalty

With the development of tourism, the competition between hotels is becoming fierce. For economy hotels, they need to improve service quality to form a recognizable social reputation for long-term development. Thus, we establish a model to evaluate the impact of economy hotel service quality on customer satisfaction and customer loyalty. The research result shows that the tangibility, reliability, responsiveness, assurance, empathy, and compensation of service quality have a significant positive impact on customer satisfaction and customer loyalty. Reliability has the greatest impact on customer satisfaction and assurance has the greatest impact on customer loyalty. Customer satisfaction has a significant positive impact on customer loyalty. Based on the research results, a series of suggestions are proposed to improve the service of economy hotels, including the innovative design of guest rooms, strengthening employees’ service awareness, and the hotel service recovery to continuously attract customers.