Revue Finance & marchés
Volume 13, Numéro 1, Pages 63-83
2026-03-21
Impact Of Service Quality On Customer Retention: A Study Of Hotels In Algiers
Authors : Ould Said Mohammed . Al-romeedy Bassam Samir .
Abstract
Abstract: This study examines the impact of hotel service quality dimensions on customer loyalty in Algiers, Algeria. Using a stratified random sampling approach, 320 respondents from three-, four-, and five-star hotels were surveyed (response rate: 64%). The questionnaire measured five dimensions of service quality (responsiveness, empathy, tangibles, reliability, and assurance) and four dimensions of customer loyalty (word-of-mouth, repurchase intention, price tolerance, and complaint behavior). Multiple linear regression analysis revealed that service quality dimensions collectively explain 74.2% of the variance in customer loyalty (R² = 0.742, F = 182.93, p < 0.001). Tangible aspects emerged as the strongest predictor (β = 0.823, p < 0.001), followed by reliability (β = 0.445), security (β = 0.419), responsiveness (β = 0.324), and empathy (β = 0.250). All dimensions had statistically significant effects (p < 0.05). These findings suggest that hotels in Algiers should prioritize physical environment improvements, consistency, and security measures to enhance customer loyalty.
Keywords
Quality ; hotel service ; service quality ; customer loyalty
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